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13600.0
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2023-09-18 00:00:00 UTC
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Markets Today: Stocks Remain Under Pressure Ahead of FOMC Meeting
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AAPL
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https://www.nasdaq.com/articles/markets-today%3A-stocks-remain-under-pressure-ahead-of-fomc-meeting
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nan
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nan
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Morning Markets
December E-Mini S&P 500 futures (ESZ23) this morning are down -0.09%, and Dec Nasdaq 100 E-Mini futures (NQZ23) are down -0.21%.
Stock index futures this morning are trading mildly lower. Stocks continue to be undercut by the UAW strike, the possibility of a U.S. government shutdown on September 30, and mildly higher global bond yields.
Stocks are also trading lower on a cautious note 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 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 15% 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.
Global bond yields this morning are mildly higher. The 10-year T-note yield is up +0.6 bp at 4.339%. The 10-year German bund yield is up +1.8 bp at 2.694%. The 10-year UK gilt yield is up +3.1 bp at 4.389%.
October WTI crude oil prices this morning are up +0.45 (+0.50%) at $91.22 per barrel, posting a new 11-month high. Oil prices have rallied sharply in the past two months on a tight supply situation through year-end and on announcements by Saudi Arabia and Russia that they will extend their production cuts through year-end. The continued rally in oil prices is putting upward pressure on inflation expectations.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.94%. China’s Shanghai Composite Index closed +0.26%. Japan was closed today for a national holiday.
Pre-Market U.S. Stock Movers
Apple (AAPL) is up +0.1% in pre-market trading on optimism about strong pre-orders for the company’s latest iPhone 15.
Micron (MU) is up +1.5% in pre-market trading on an upgrade to buy from hold by Deutsche Bank on the basis that DRAM chip prices are rising faster than expected. The news is supportive of other chipmakers.
Tesla (TSLA) is down -0.7% in pre-market trading despite a Wall Street Journal report that Tesla is in talks to open a factory in Saudi Arabia.
Disney (DIS) and Warner Bros Discovery (WBD) are both trading higher in pre-market trading after Raymond James initiated research coverage with an outperform recommendation on both stocks. Raymond James initiated coverage on Paramount Global (PARA) with a market perform.
L3Harris Technologies (LHX) is up +1.0% in pre-market trading on an upgrade to overweight from equal-weight by Wells Fargo due to an improved risk-reward.
Alteryx (AYX) is up +3.9% in pre-market trading on an upgrade to overweight from equal-weight by Morgan Stanley on the view of an attractive valuation versus its growth and profit potential.
PayPal Holdings (PYPL) is down -1.3% in pre-market trading on a downgrade to market-perform from outperform by MoffettNathanson as the analyst expected weak profit growth due to increased competition.
NetApp (NTAP) is down -2.5% in pre-market trading on a downgrade by William Blair to market-perform from outperform.
Carvana (CVNA) is up +1.1% in pre-market trading on an upgrade by Wedbush to neutral
from underperform.
Clorox (CLX) is down -1.5% in pre-market trading 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.
(9/18/2023)
Stitch Fix Inc (SFIX), Veradigm Inc (MDRX).
More Stock Market News from Barchart
How to Start a Side Hustle? Plus 3 Ideas to Get You Going
Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180
Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting
Shielding Your Portfolio: Spinoff Stocks As A Risk-Resilient Strategy
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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Pre-Market U.S. Stock Movers Apple (AAPL) is up +0.1% in pre-market trading on optimism about strong pre-orders for the company’s latest iPhone 15. Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting Shielding Your Portfolio: Spinoff Stocks As A Risk-Resilient Strategy On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. Alteryx (AYX) is up +3.9% in pre-market trading 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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Pre-Market U.S. Stock Movers Apple (AAPL) is up +0.1% in pre-market trading on optimism about strong pre-orders for the company’s latest iPhone 15. Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting Shielding Your Portfolio: Spinoff Stocks As A Risk-Resilient Strategy On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. Stock index futures this morning are trading mildly lower.
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Pre-Market U.S. Stock Movers Apple (AAPL) is up +0.1% in pre-market trading on optimism about strong pre-orders for the company’s latest iPhone 15. Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting Shielding Your Portfolio: Spinoff Stocks As A Risk-Resilient Strategy On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. However, 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 15% chance for that 25 bp rate hike at the following meeting on December 13.
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Pre-Market U.S. Stock Movers Apple (AAPL) is up +0.1% in pre-market trading on optimism about strong pre-orders for the company’s latest iPhone 15. Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting Shielding Your Portfolio: Spinoff Stocks As A Risk-Resilient Strategy On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. Stock index futures this morning are trading mildly lower.
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13601.0
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2023-09-18 00:00:00 UTC
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Want Income? These 3 Stocks Boosting Their Dividend Payouts
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AAPL
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https://www.nasdaq.com/articles/want-income-these-3-stocks-boosting-their-dividend-payouts
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nan
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nan
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Here’s an investing scenario that sounds like a winner: Buy undervalued stocks that are increasing their dividends.
If that sounds appealing, then you may want to take a look at General Mills Inc. (NYSE: GIS), Bank of America Co. (NYSE: BAC) and Skyworks Solutions Inc. (NASDAQ: SWKS), all stocks meeting that description.
That investment strategy can be a winner. Undervalued stocks that increase dividends offer a lower entry point, giving investors an opportunity to buy income-producing assets at a discount.
Dividend growth reflects a company's financial health and management's confidence in its future prospects. The combination of income and potential capital appreciation can be a significant boost to portfolio returns.
Additionally, dividend-paying stocks are often more stable because they deliver consistent income, financial health and investor confidence. That’s particularly appealing in uncertain markets.
General Mills
Before making any decision about General Mills, keep in mind: The maker of Cheerios, Cocoa Puffs, Bisquick and the Annie’s and Betty Crocker brands, among other packaged foods, reports earnings on September 20.
If you’re primarily an income investor, and not seeking price appreciation as your main objective, you may not be looking to the earnings report as a catalyst for big gains.
General Mills hasn’t been following a recipe for success, in terms of stock performance. Shares are down 19.48% this year, trading at June 2022 levels.
MarketBeat’s General Mills dividend data shows a yield of 3.58%. It’s increased its dividend for two years in a row.
Despite the big stock slide, revenue has been growing and Wall Street expects yearly net income to increase by 4% this year and 5% next year.
Consumer staples stocks as a whole have been out of favor this year, after faring better in 2022 as safe havens versus riskier assets such as computer and technology stocks. As techs went back into rally mode and higher interest rates became an alternative to dividends, consumer staples were sold off.
Nonetheless, those looking for longer-term dividend stocks trading at attractive valuations might look to General Mills and its sector peers.
Bank of America
Finance stocks as a group are reliable dividend payers due to their stable cash flows and consistent profitability. For example, the Energy Select Sector SPDR Fund (NYSEARCA: XLF) has a dividend yield of 1.9%.
Bank of America, the fifth most heavily weighted stock in the sector, has a dividend yield of 3.33%. MarketBeat’s Bank of America dividend data shows a three-year track record of increasing its payout.
The stock is down 10.87% year-to-date.
If you have any doubts about Bank of America’s status as a promising value stock, look no further than one of its biggest shareholders, Berkshire Hathaway Inc. (NYSE: BRK.B), which takes a long view and seeks value.
Bank of America suffered recently along with other bank stocks as bond ratings agency Fitch said it may downgrade several banks.
MarketBeat’s Bank of America analyst ratings show a consensus view of “hold” with a price target of $35.98, an upside of 24.77%.
Morningstar analyst Eric Compton says Bank of America “has one of the best retail branch networks and overall retail franchises in the United States.” Compton sites the bank’s various revenue streams, including credit cards, commercial banking, and its Merrill Lynch franchise which includes a brokerage and advisory business.
Skyworks Solutions
Semiconductor manufacturers haven’t gotten the same love this year as chip designers like Nvidia Corp. (NASDAQ: NVDA).
In the case of Skyworks, there’s some good reason for that. Revenue and earnings declined in the past three quarters, and Wall Street expects net income to fall 34% this year and another 1% next year.
There’s one chief culprit behind Skyworks’ sales and revenue declines: In fiscal 2022, 2021, and 2020, sales to Apple Inc. (NASDAQ: AAPL) accounted for 58%, 59%, and 56% of the company’s net revenue, respectively.
If you take a look at the revenue column on MarketBeat’s Apple earnings page, you can spot year-over-year declines in the past three quarters as global smartphone sales slow.
Skyworks Solutions’ dividend yield is 2.77%; the company boosted its shareholder payout in each of the past nine years.
The stock’s share price has fallen 9.75% in the past three months but is still holding on to a 9.88% year-to-date gain. It’s been forming a base below a February 7 high of $123.69.
Investors don’t typically think of tech stocks as dividend payers, as it’s traditionally been a growth-oriented industry. That’s why it’s important for investors to cast the net wide when looking for income-generating stocks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There’s one chief culprit behind Skyworks’ sales and revenue declines: In fiscal 2022, 2021, and 2020, sales to Apple Inc. (NASDAQ: AAPL) accounted for 58%, 59%, and 56% of the company’s net revenue, respectively. Undervalued stocks that increase dividends offer a lower entry point, giving investors an opportunity to buy income-producing assets at a discount. If you have any doubts about Bank of America’s status as a promising value stock, look no further than one of its biggest shareholders, Berkshire Hathaway Inc. (NYSE: BRK.B), which takes a long view and seeks value.
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There’s one chief culprit behind Skyworks’ sales and revenue declines: In fiscal 2022, 2021, and 2020, sales to Apple Inc. (NASDAQ: AAPL) accounted for 58%, 59%, and 56% of the company’s net revenue, respectively. If that sounds appealing, then you may want to take a look at General Mills Inc. (NYSE: GIS), Bank of America Co. (NYSE: BAC) and Skyworks Solutions Inc. (NASDAQ: SWKS), all stocks meeting that description. Revenue and earnings declined in the past three quarters, and Wall Street expects net income to fall 34% this year and another 1% next year.
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There’s one chief culprit behind Skyworks’ sales and revenue declines: In fiscal 2022, 2021, and 2020, sales to Apple Inc. (NASDAQ: AAPL) accounted for 58%, 59%, and 56% of the company’s net revenue, respectively. If that sounds appealing, then you may want to take a look at General Mills Inc. (NYSE: GIS), Bank of America Co. (NYSE: BAC) and Skyworks Solutions Inc. (NASDAQ: SWKS), all stocks meeting that description. Despite the big stock slide, revenue has been growing and Wall Street expects yearly net income to increase by 4% this year and 5% next year.
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There’s one chief culprit behind Skyworks’ sales and revenue declines: In fiscal 2022, 2021, and 2020, sales to Apple Inc. (NASDAQ: AAPL) accounted for 58%, 59%, and 56% of the company’s net revenue, respectively. If that sounds appealing, then you may want to take a look at General Mills Inc. (NYSE: GIS), Bank of America Co. (NYSE: BAC) and Skyworks Solutions Inc. (NASDAQ: SWKS), all stocks meeting that description. MarketBeat’s General Mills dividend data shows a yield of 3.58%.
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13602.0
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2023-09-18 00:00:00 UTC
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Best Leveraged ETF Areas of Last Week
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AAPL
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https://www.nasdaq.com/articles/best-leveraged-etf-areas-of-last-week-2
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nan
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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 leveraged ETFs of last week.
ETFs in Focus
Leveraged Tesla
GraniteShares 1.75x Long TSLA Daily ETF (TSLR) – Up 17.9%
Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL) – Up 15.5%
Tesla has been gaining in share price due to back-to-back constructive developmental news. There was a news last week that Morgan Stanley analyst, Adam Jonas, said that the supercomputer used to train AI models for automatic cars could give Tesla the world’s largest electric vehicle (EV) manufacturer, an “asymmetric advantage”, resulting in 76% growth in market value, as quoted on Reuters. Then there was a news in the middle of the week that Tesla has combined several innovations in halving production costs (read: Manufacturing Advancements to Boost Tesla: ETFs in Focus).
Leveraged Gold Miners
MicroSectors Gold Miners 3X Leveraged ETN (GDXU) – Up 14.6%
Direxion Daily Junior Gold Miners Index Bull 2x Shares (JNUG) – Up 10.2%
Gold prices added about 1% last week. Since mining companies, often act as a leveraged play of the underlying metal, gold mining ETFs like GDXU and JNUG surged last week.
Leveraged Marijuana
AdvisorShares MSOS 2x Daily ETF (MSOX) – Up 13.1%
In a significant development, the Department of Health and Human Services (HHS) has recently initiated a review of marijuana's classification under the Controlled Substances Act. This move has the potential to impact the burgeoning marijuana industry, which has faced federal restrictions despite state-level legalization efforts.
Since the 1970s, marijuana has been categorized as a Schedule I drug, alongside substances like heroin and LSD. But The Drug Enforcement Agency (DEA) will consider reclassifying marijuana as a Schedule III drug, placing it alongside substances like ketamine, anabolic steroids, and testosterone (read: Behind the Recent Surge in Marijuana ETFs).
Leveraged Brazil
ProShares Ultra MSCI Brazil Capped (UBR) – Up 11.3%
Direxion Daily MSCI Brazil Bull 2X Shares (BRZU) – Up 10.9%
The Brazilian GDP expanded by 0.9% in the second quarter of 2023, way higher than market expectations of a 0.3% growth rate. China’s industrial and retail indicators fared better in August, boosting hopes of resource purchases especially with recent cut in the PBoC’s reserve requirement ratio. Investors should note that China is Brazil’s largest trading partner. Not only this, Brazil’s central bank reduced its key Selic rate to 13.25% last month from 13.75%, after raising it to that level in August 2022. The market expects a 50-basis point cut in Selic next Wednesday to 12.75%.
Leveraged Utilities
Direxion Daily Utilities Bull 3X Shares (UTSL) – Up 7.9%
Although the current yield environment isn't favorable for the sector, its essential nature still provides substantial support to utilities sector. Historically, the second half of September through the first week of October has been a particularly challenging period to own stocks. Probably, this is why, investors binged on this safe sector last week. The valuation of the sector is also decent at 17.85X, in line with the S&P 500.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Direxion Daily MSCI Brazil Bull 2X Shares (BRZU): ETF Research Reports
Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG): ETF Research Reports
ProShares Ultra MSCI Brazil Capped (UBR): ETF Research Reports
Direxion Daily Utilities Bull 3X Shares (UTSL): ETF Research Reports
MicroSectors Gold Miners 3X Leveraged ETNs (GDXU): ETF Research Reports
Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports
AdvisorShares MSOS 2x Daily ETF (MSOX): ETF Research Reports
GraniteShares 1.75x Long TSLA Daily ETF (TSLR): 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 Direxion Daily MSCI Brazil Bull 2X Shares (BRZU): ETF Research Reports Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG): ETF Research Reports ProShares Ultra MSCI Brazil Capped (UBR): ETF Research Reports Direxion Daily Utilities Bull 3X Shares (UTSL): ETF Research Reports MicroSectors Gold Miners 3X Leveraged ETNs (GDXU): ETF Research Reports Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports AdvisorShares MSOS 2x Daily ETF (MSOX): ETF Research Reports GraniteShares 1.75x Long TSLA Daily ETF (TSLR): ETF Research Reports To read this article on Zacks.com click here. 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?).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Direxion Daily MSCI Brazil Bull 2X Shares (BRZU): ETF Research Reports Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG): ETF Research Reports ProShares Ultra MSCI Brazil Capped (UBR): ETF Research Reports Direxion Daily Utilities Bull 3X Shares (UTSL): ETF Research Reports MicroSectors Gold Miners 3X Leveraged ETNs (GDXU): ETF Research Reports Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports AdvisorShares MSOS 2x Daily ETF (MSOX): ETF Research Reports GraniteShares 1.75x Long TSLA Daily ETF (TSLR): 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 Leveraged Tesla GraniteShares 1.75x Long TSLA Daily ETF (TSLR) – Up 17.9% Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL) – Up 15.5% Tesla has been gaining in share price due to back-to-back constructive developmental news.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Direxion Daily MSCI Brazil Bull 2X Shares (BRZU): ETF Research Reports Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG): ETF Research Reports ProShares Ultra MSCI Brazil Capped (UBR): ETF Research Reports Direxion Daily Utilities Bull 3X Shares (UTSL): ETF Research Reports MicroSectors Gold Miners 3X Leveraged ETNs (GDXU): ETF Research Reports Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports AdvisorShares MSOS 2x Daily ETF (MSOX): ETF Research Reports GraniteShares 1.75x Long TSLA Daily ETF (TSLR): 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 Leveraged Tesla GraniteShares 1.75x Long TSLA Daily ETF (TSLR) – Up 17.9% Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL) – Up 15.5% Tesla has been gaining in share price due to back-to-back constructive developmental news.
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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 Direxion Daily MSCI Brazil Bull 2X Shares (BRZU): ETF Research Reports Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG): ETF Research Reports ProShares Ultra MSCI Brazil Capped (UBR): ETF Research Reports Direxion Daily Utilities Bull 3X Shares (UTSL): ETF Research Reports MicroSectors Gold Miners 3X Leveraged ETNs (GDXU): ETF Research Reports Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports AdvisorShares MSOS 2x Daily ETF (MSOX): ETF Research Reports GraniteShares 1.75x Long TSLA Daily ETF (TSLR): 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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13603.0
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2023-09-18 00:00:00 UTC
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Apple's iPhone 15 Probably Won't Spark Sales Growth. That's Starting to Become a Problem for the Stock.
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AAPL
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https://www.nasdaq.com/articles/apples-iphone-15-probably-wont-spark-sales-growth.-thats-starting-to-become-a-problem-for
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nan
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The 15th iteration of the iPhone has been officially unveiled. And it's not bad. While it's not leaps and bounds more powerful than the iPhone 14, an improved camera and the addition of USB-C ports certainly have their appeal. The starting price of $799 is palatable enough, too, in line with the prices of other recent iPhones.
If you think the upcoming availability of its smartphone is a reason to buy Apple's (NASDAQ: AAPL) stock, though, you may want to reconsider. iPhone unit sales have been mostly dwindling since 2016, rekindling their downtrend after 2020's short-lived surge. Total iPhone revenue appears to have peaked in 2021. In the absence of a new game-changing feature for the phone, there's no reason to expect the iPhone 15 to dramatically reverse this weakness; several analysts aren't expecting it anyway.
And that's a problem for Apple stock since more than half of its revenue still comes from iPhone sales. Now, companywide revenue is starting to stagnate.
Are we at -- or even past -- the iPhone's peak?
Current Apple shareholders don't need to panic. This is still the world's biggest and most profitable company. It'll survive.
There's no denying, however, that the iPhone-specific headwind dents the growth-based thesis for owning the stock. The chart below of the iPhone's total deliveries going back to late 2014 tells part of the tale. Despite the launch of several new iPhones during this stretch, total unit sales have spent more of this time falling rather than rising.
Much of 2020's strength can be chalked up to the circumstances of the COVID-19 pandemic although at least some of that demand had been building since 2019. Either way, the unit numbers have been sliding since that surge, marked by a dramatic dip since the last quarter of last year.
Data source: IDC. Figures are in millions.
For a short while, Apple was able to offset slumping sales of the iPhone with higher prices. That's not the case any longer. The device's best-ever quarter -- in terms of revenue -- for the iPhone was the final calendar quarter of 2021. Since then, it's been stagnant and even in decline for the past three quarters.
Data source: Apple Inc. Figures are in millions.
Now, overlay that data with the entirety of Apple's top lines for the same time frame. With a little more than half of Apple's revenue still being driven by sales of the popular smartphone, the company's total sales have also been falling since early 2022.
Data source: Apple Inc. Figures are in millions.
Connect the dots. As much as Apple may be trying to shift its dependence away from iPhone sales and toward profit centers like services, this is still mostly an iPhone company. If that particular device is struggling, so is Apple as a whole. And the device is still ultimately on the defensive, according to more than a handful of analysts.
CCS Insight's chief analyst Ben Wood is one of these doubters, commenting, "The lack of headline-grabbing updates will disappoint some, but isn't a surprise given the maturity of the iPhone and Watch." He adds, "It reflects just how refined the iPhone and Watch devices are and how tough it has become to deliver truly disruptive updates every year."
Evercore ISI analyst Amit Daryanani writes, "Overall, we view the event as mildly disappointing, given that bulls were looking for a price increase on the iPhone Pro model as well as blood pressure monitoring functionality for the Watch."
Rosenblatt Securities analyst Barton Crockett echoed both sentiments, explaining, "The meh stock reaction reflects a lack of wow in the feature set and lack of meaningful price hike."
Time to start asking tough questions
For the record, not every observer is a doubter. Wedbush Securities analyst Daniel Ives notes, "Apple's iPhone 15 launch event was overall an impressive event, which in our opinion lays the groundwork for a major upgrade cycle over the next year that will surprise the Street to the upside."
Deepwater Asset Management's managing partner Gene Munster agrees, arguing, "While most of these updates were incremental, they're enough to attract the 400m iPhone owners with phones more than four years old, which should return Apple to revenue growth in the December quarter."
Both Munster and Ives make good points. However, neither of these Apple bulls addresses the overarching concern here. That is, current iPhone owners are holding onto their devices for longer and longer, lengthening the upgrade cycle. At the same time, all smartphone makers, including Apple, are running out of new consumers to sell their products to now.
It stands to reason that the sweeping refresh Munster is talking about for the final quarter of this year will leave the company in the same position it's been in for the better part of the past decade once that upgrade swell has run its course, with weakening unit sales and diminishing pricing power.
If you're a current or prospective Apple shareholder, it wouldn't be unfair to start -- or continue -- asking tough questions about how the company is addressing increasingly inconsistent iPhone sales. It's such a big profit center that it's now dragging down companywide revenue.
10 stocks we like better than Apple
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you think the upcoming availability of its smartphone is a reason to buy Apple's (NASDAQ: AAPL) stock, though, you may want to reconsider. CCS Insight's chief analyst Ben Wood is one of these doubters, commenting, "The lack of headline-grabbing updates will disappoint some, but isn't a surprise given the maturity of the iPhone and Watch." Evercore ISI analyst Amit Daryanani writes, "Overall, we view the event as mildly disappointing, given that bulls were looking for a price increase on the iPhone Pro model as well as blood pressure monitoring functionality for the Watch."
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If you think the upcoming availability of its smartphone is a reason to buy Apple's (NASDAQ: AAPL) stock, though, you may want to reconsider. Wedbush Securities analyst Daniel Ives notes, "Apple's iPhone 15 launch event was overall an impressive event, which in our opinion lays the groundwork for a major upgrade cycle over the next year that will surprise the Street to the upside." If you're a current or prospective Apple shareholder, it wouldn't be unfair to start -- or continue -- asking tough questions about how the company is addressing increasingly inconsistent iPhone sales.
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If you think the upcoming availability of its smartphone is a reason to buy Apple's (NASDAQ: AAPL) stock, though, you may want to reconsider. And that's a problem for Apple stock since more than half of its revenue still comes from iPhone sales. As much as Apple may be trying to shift its dependence away from iPhone sales and toward profit centers like services, this is still mostly an iPhone company.
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If you think the upcoming availability of its smartphone is a reason to buy Apple's (NASDAQ: AAPL) stock, though, you may want to reconsider. Total iPhone revenue appears to have peaked in 2021. The device's best-ever quarter -- in terms of revenue -- for the iPhone was the final calendar quarter of 2021.
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13604.0
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2023-09-18 00:00:00 UTC
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Stocks Mixed on Caution Ahead of Tue/Wed FOMC Meeting
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AAPL
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https://www.nasdaq.com/articles/stocks-mixed-on-caution-ahead-of-tue-wed-fomc-meeting
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.09%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.13%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.12%.
Bearish factors include the UAW strike, the possibility of a U.S. government shutdown on September 30, and mildly higher global bond yields. A +1.2% rally in Apple is supporting tech stocks.
Today’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 are being undercut 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 13% 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.
Global bond yields are steady to higher. The 10-year T-note yield is little changed at 4.333%. The 10-year German bund yield is up +3.0 bp at 2.705%. The 10-year UK gilt yield is up +3.2 bp at 4.390%.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -1.09%. China’s Shanghai Composite Index closed +0.26%. Japan was closed today for a national holiday.
Today’s stock movers…
Apple (AAPL) is up +1.1% on optimism about strong pre-orders for the company’s latest iPhone 15.
Micron (MU) is up +1.3% on an upgrade to buy from hold by Deutsche Bank on the basis that DRAM chip prices are rising faster than expected. The news is supportive of other chipmakers.
Leading losers in the Nasdaq 100 today include Moderna (MRNA), Tesla (TSLA), AstraZeneca (AZN).
L3Harris Technologies (LHX) is up +0.7% on an upgrade to overweight from equal-weight by Wells Fargo due to an improved risk-reward.
Alteryx (AYX) is up +3.8% on an upgrade to overweight from equal-weight by Morgan Stanley on the view of an attractive valuation versus its growth and profit potential.
PayPal Holdings (PYPL) is down -1.9% on a downgrade to market-perform from outperform by MoffettNathanson as the analyst expected weak profit growth due to increased competition.
NetApp (NTAP) is down -2.9% on a downgrade by William Blair to market-perform from outperform.
Carvana (CVNA) is up +4.9% on an upgrade by Wedbush to neutral from underperform.
Clorox (CLX) is down -1.2% 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) today are down -3 ticks, and the 10-year T-note yield is little changed at 4.333%. T-notes are under pressure today as oil prices continue higher and put upward pressure on inflation expectations. The 10-year breakeven inflation expectations rate today is up +0.3 bp at 2.353%. T-notes received support today from the -5 point drop in the NAHB housing market index.
The dollar index (DXY00) today is little changed. The dollar is seeing some underlying support from expectations for a mildly hawkish FOMC meeting outcome on Wednesday. Meanwhile, EUR/USD (^EURUSD) is little changed, and USD/JPY (^USDJPY) is down -0.09%. The Japanese markets were closed today but are looking forward to the Bank of Japan’s policy meeting on Friday.
October gold (GCV3) today is up +1.2 (+0.06%), and Dec silver (SIZ23) is down -0.036 (-0.15%). Gold is seeing support today from increased safe-haven demand with the weakness in stocks. However, silver is being undercut by higher global bond yields and fears of weaker global economic growth. Gold continues to be pressured by the liquidation pressures after long gold holdings in ETFs fell to a 3-1/3 year low last Thursday.
More Stock Market News from Barchart
Markets Today: Stocks Remain Under Pressure Ahead of FOMC Meeting
How to Start a Side Hustle? Plus 3 Ideas to Get You Going
Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180
Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting
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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Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. Today’s stock movers… Apple (AAPL) is up +1.1% on optimism about strong pre-orders for the company’s latest iPhone 15. PayPal Holdings (PYPL) is down -1.9% on a downgrade to market-perform from outperform by MoffettNathanson as the analyst expected weak profit growth due to increased competition.
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Today’s stock movers… Apple (AAPL) is up +1.1% on optimism about strong pre-orders for the company’s latest iPhone 15. Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. Today’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.
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Today’s stock movers… Apple (AAPL) is up +1.1% on optimism about strong pre-orders for the company’s latest iPhone 15. Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. Today’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.
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Today’s stock movers… Apple (AAPL) is up +1.1% on optimism about strong pre-orders for the company’s latest iPhone 15. Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. The 10-year T-note yield is little changed at 4.333%.
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13605.0
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2023-09-18 00:00:00 UTC
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Should You Follow Warren Buffett's Lead and Sell HPQ Stock?
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AAPL
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https://www.nasdaq.com/articles/should-you-follow-warren-buffetts-lead-and-sell-hpq-stock
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Berkshire Hathaway (BRK.B) - the conglomerate led by legendary value investor Warren Buffett - sold almost 5.5 million shares of HP (HPQ) last week. The announcement took the market by surprise, just as the initial news of Berkshire buying a stake in HP did last year.
Buffett has largely shied away from tech stocks - and while Apple (AAPL) is Berkshire’s biggest holding, the “Oracle of Omaha” considers it a consumer company rather than a tech company.
As for HP, the stock tumbled after Berkshire revealed in its filings that it had sold some shares. So, should you follow suit with Buffett and dump the stock?
HP Stock Falls after Berkshire Trims Stake
It is not unusual for stocks to drop when a major fund sells a stake, just as they tend to rise when a fund announces a new position - thereby affirming their faith in the company. HP, meanwhile, wasn’t a profitable position for Berkshire. The stock lost almost a fifth of its value between April 2022 when Berkshire revealed its position and the announcement of the partial stake sale last week.
While Buffett’s favorite holding period is officially “forever,” he has made quite a few exceptions to this rule. Before HP, Berkshire has sold stakes in tech companies like Oracle (ORCL) and pharma names like Pfizer (PFE), AbbVie (ABBV), Bristol-Myers Squibb (BMY), and Merck (MRK) quite quickly – and while a different investment manager at Berkshire might have made some of these decisions, Buffett himself certainly made the Oracle investment.
Berkshire is still the largest shareholder of HP despite last week's stake sale, but we can be reasonably sure that the conglomerate will continue to sell more shares, in the typical Buffett way. So, with Buffett’s company giving up on HP stock, should you also sell the shares - or is the personal computer (PC) giant a buy instead?
HP Stock Has Underperformed Markets
While we don’t typically associate “underperformance” with Buffett, who has a healthy track record of beating the S&P 500 Index ($SPX) over the long term, HP is among the names in Berkshire’s portfolio that have lagged the markets. After the recent sell-off, HP shares are up just about 4.7% for the year, while the SPX is up 16% over the period.
www.barchart.com
HP’s underperformance can be explained by both macro and company-specific factors. First, global PC sales have slumped over the last few quarters, and the industry is grappling with the worst slowdowns ever. Also, the printing industry is facing structural headwinds as demand continues to taper down.
The company's fiscal Q3 earnings were also disappointing, as HP missed revenue estimates while providing tepid guidance. Rival Dell (DELL), however, soared over 20% after its most recent earnings release, and had its best day since its 2018 relisting as it posted better-than-expected earnings.
HPQ Forecast
After HP’s earnings release, multiple brokerages - including Barclays, Citigroup, JPMorgan, and Bank of America - lowered the stock’s target price. Its mean target price of $29.05 is now only about 6% higher than the current price levels.
Overall, Wall Street is not too bullish on HPQ, and it has received a consensus rating of Hold from analysts. Of the 11 analysts that cover the shares, only 1 has rated them as a Strong Buy. Two rate it as a Strong Sell, while 1 rates it as a Moderate Buy, and 7 analysts rate the PC giant a Hold.
www.barchart.com
While Buffett’s views are often at odds with analysts, at least in HP’s case, they seem to be in consensus.
Why HP Stock Might Remain Weak in the Near Term
The PC industry’s slump might continue for some time. In its August report, IDC said that it expects PC sales to fall 13.7% YoY in 2023. Jitesh Ubrani, research manager for IDC Mobility and Consumer Device Trackers said, “Consumer demand for PCs also faces challenges from other devices including smartphones, consoles, tablets, and more, marking 2023 as the year with the greatest annual decline in consumer PC shipments since the category's inception.”
Also, with the global economy continuing to slow and discretionary consumer spending remaining tepid, the near-term outlook for PC stocks does not look very promising.
HPQ Might See Better Days in 2024
That said, HP stock might see better days in 2024 for the following reasons:
The PC market is expected to recover in 2024, with IDC forecasting a 3.7% YoY increase in shipments. We should start to see replacement demand for PCs bought between 2020 and 2021, which should help drive demand in the coming years.
The PC industry’s inventory overhang should also get better in the coming quarters, providing support for average selling prices (ASPs) - which have sagged in recent quarters.
HP is tightening its belt and is optimistic of delivering at least $560 million in structural annualized cost savings by the end of this year, and $1.4 billion by the end of the next fiscal year.
Structural cost savings and an expected rebound in PC sales should help HP’s business next year. Also, artificial intelligence (AI) could be a boon for PC sales in the coming years, as AI-enabled PCs could turbocharge the industry’s growth.
From a valuation perspective, HP stock trades at a next-12-month price-to-earnings multiple of 8.42x, which is below its historical averages. The dividend yield of 3.8% looks attractive, too, for investors looking for high-dividend paying stocks.
All said, I believe that while HP stock is currently out of favor with markets - and even Buffett’s company is giving up after the recent underperformance - the stock should see better days next year.
On the date of publication, Mohit Oberoi had a position in: BRK.B , AAPL . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Buffett has largely shied away from tech stocks - and while Apple (AAPL) is Berkshire’s biggest holding, the “Oracle of Omaha” considers it a consumer company rather than a tech company. On the date of publication, Mohit Oberoi had a position in: BRK.B , AAPL . Berkshire Hathaway (BRK.B) - the conglomerate led by legendary value investor Warren Buffett - sold almost 5.5 million shares of HP (HPQ) last week.
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Buffett has largely shied away from tech stocks - and while Apple (AAPL) is Berkshire’s biggest holding, the “Oracle of Omaha” considers it a consumer company rather than a tech company. On the date of publication, Mohit Oberoi had a position in: BRK.B , AAPL . Berkshire Hathaway (BRK.B) - the conglomerate led by legendary value investor Warren Buffett - sold almost 5.5 million shares of HP (HPQ) last week.
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Buffett has largely shied away from tech stocks - and while Apple (AAPL) is Berkshire’s biggest holding, the “Oracle of Omaha” considers it a consumer company rather than a tech company. On the date of publication, Mohit Oberoi had a position in: BRK.B , AAPL . HP Stock Falls after Berkshire Trims Stake It is not unusual for stocks to drop when a major fund sells a stake, just as they tend to rise when a fund announces a new position - thereby affirming their faith in the company.
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Buffett has largely shied away from tech stocks - and while Apple (AAPL) is Berkshire’s biggest holding, the “Oracle of Omaha” considers it a consumer company rather than a tech company. On the date of publication, Mohit Oberoi had a position in: BRK.B , AAPL . So, with Buffett’s company giving up on HP stock, should you also sell the shares - or is the personal computer (PC) giant a buy instead?
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13606.0
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2023-09-18 00:00:00 UTC
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Pre-Market Most Active for Sep 18, 2023 : SQQQ, TQQQ, MMP, TSLA, ARM, CNHI, NVDA, AAPL, PLTR, NIO, IONQ, JOBY
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-sep-18-2023-%3A-sqqq-tqqq-mmp-tsla-arm-cnhi-nvda-aapl-pltr-nio
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The NASDAQ 100 Pre-Market Indicator is down -36.68 to 15,165.72. The total Pre-Market volume is currently 48,236,284 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is +0.13 at $18.95, with 2,764,970 shares traded. This represents a 15.69% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -0.3 at $39.45, with 2,504,629 shares traded. This represents a 145.03% increase from its 52 Week Low.
Magellan Midstream Partners L.P. (MMP) is -0.13 at $68.10, with 1,650,472 shares traded. MMP's current last sale is 108.1% of the target price of $63.
Tesla, Inc. (TSLA) is -2.67 at $271.72, with 1,440,233 shares traded. TSLA's current last sale is 102.54% of the target price of $265.
Arm Holdings plc (ARM) is -2.44 at $58.31, with 1,114,496 shares traded.
CNH Industrial N.V. (CNHI) is +0.05 at $13.53, with 1,063,627 shares traded. As reported by Zacks, the current mean recommendation for CNHI is in the "buy range".
NVIDIA Corporation (NVDA) is -9.0482 at $429.95, with 785,008 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 $2.99. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Apple Inc. (AAPL) is +0.23 at $175.24, with 761,855 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".
Palantir Technologies Inc. (PLTR) is -0.21 at $15.12, with 679,493 shares traded. PLTR's current last sale is 120.96% of the target price of $12.5.
NIO Inc. (NIO) is -0.06 at $10.37, with 383,583 shares traded. NIO's current last sale is 81.33% of the target price of $12.75.
IonQ, Inc. (IONQ) is -0.1445 at $16.94, with 308,517 shares traded. IONQ's current last sale is 94.09% of the target price of $18.
Joby Aviation, Inc. (JOBY) is +0.11 at $6.65, with 205,760 shares traded. JOBY's current last sale is 83.13% of the target price of $8.
The views and 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 +0.23 at $175.24, with 761,855 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is +0.13 at $18.95, with 2,764,970 shares traded.
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Apple Inc. (AAPL) is +0.23 at $175.24, with 761,855 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 CNHI is in the "buy range".
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Apple Inc. (AAPL) is +0.23 at $175.24, with 761,855 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 48,236,284 shares traded.
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Apple Inc. (AAPL) is +0.23 at $175.24, with 761,855 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is down -36.68 to 15,165.72.
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13607.0
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2023-09-17 00:00:00 UTC
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2 Under-the-Radar Gaming Stocks You Can Buy and Hold for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/2-under-the-radar-gaming-stocks-you-can-buy-and-hold-for-the-next-decade-10
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The video game market has been one of the most reliable growth areas in tech for decades. Consistent consumer interest and demand for new games keep the industry expanding over the long term. Data from Omdia shows the sector was valued at $236 billion in 2022 and is projected to grow by 36% and hit $321 billion in 2026. So it could be worth adding a gaming stock to your portfolio to profit from the market's consistent rise.
While titans of the industry like Microsoft and Sony might look like the obvious choices, some smaller players are also profiting massively from their gaming businesses. Here are two under-the-radar gaming stocks you can buy and hold for the next decade.
1. Apple
Apple (NASDAQ: AAPL) isn't usually the first company to come to mind in a discussion about gaming. However, the company is the world's third-largest video game company, just after Tencent and Sony, because of the success of its App Store. The company charges a 30% fee for apps and in-app purchases, which allows it to significantly profit from mobile games and microtransactions.
Games are by far the most popular category of apps on the App Store, making up about 13% of all applications available (per Statista). For reference, business and education are the second- and third-largest categories, with each hovering around 10%.
Apple announced in May that the App Store generated $1 trillion in billings and sales in 2022, most of which went to developers. However, the platform is an increasingly lucrative business for Apple as well. The tech giant's services segment, which includes income from the App Store, has quickly become its second-highest-earning segment after the iPhone, and is outpacing the smartphone's growth. Services revenue rose 14% year over year in fiscal 2022 -- double the growth of the iPhone.
Then, in the third quarter of 2023, macroeconomic headwinds caused iPhone revenue to slip 4%. Meanwhile, services revenue increased by 7% year over year. The digital business has diversified and strengthened Apple's business even during uncertain times.
Apple is mainly profiting from mobile games for now. However, the 2024 launch of its first virtual/augmented reality headset could become a new avenue for the company to expand in video games.
2. Nvidia
Nvidia (NASDAQ: NVDA) has captured Wall Street's attention this year by climbing to the top of artificial intelligence (AI). The company has become the primary supplier of graphics processing units (GPUs) to many companies venturing into AI. However, before this year, Nvidia was best known for its dominance in the PC gaming market.
The company almost singlehandedly grew the consumer GPU market to what it is today by convincing gamers to build custom PCs and play titles at much higher settings than is possible on a console. Nvidia's gaming segment was the highest earning part of its business for years, driving its revenue to rise from $5 billion to $17 billion between 2015 and 2021. Economic hurdles and the rise in AI have allowed data centers to surpass Nvidia's gaming segment. However, it remains a lucrative business once the PC market bounces back.
In addition to PC gaming, Nvidia has a solid role in consoles as the primary provider of chips for the Nintendo Switch. The hybrid gaming machine is the third-best-selling console of all time, reaching 129 million units sold since its launch. Rumors have swirled that a sequel to the Switch might launch as early as 2024, which would provide Nvidia with a nice boost to revenue if it retains its position as the console's chip supplier.
While Nvidia is an AI-first company now, it owes much of its past success to gaming and doesn't appear to be slowing down in the market any time soon. Once economic challenges improve and PC market spending recovers, the company could be home to a lucrative AI business and a solid revenue stream from gaming. As a result, Nvidia is an attractive gaming stock right now that could provide major gains over the long term.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 11, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Tencent. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) isn't usually the first company to come to mind in a discussion about gaming. The company almost singlehandedly grew the consumer GPU market to what it is today by convincing gamers to build custom PCs and play titles at much higher settings than is possible on a console. Rumors have swirled that a sequel to the Switch might launch as early as 2024, which would provide Nvidia with a nice boost to revenue if it retains its position as the console's chip supplier.
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Apple Apple (NASDAQ: AAPL) isn't usually the first company to come to mind in a discussion about gaming. However, the company is the world's third-largest video game company, just after Tencent and Sony, because of the success of its App Store. In addition to PC gaming, Nvidia has a solid role in consoles as the primary provider of chips for the Nintendo Switch.
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Apple Apple (NASDAQ: AAPL) isn't usually the first company to come to mind in a discussion about gaming. Nvidia's gaming segment was the highest earning part of its business for years, driving its revenue to rise from $5 billion to $17 billion between 2015 and 2021. Once economic challenges improve and PC market spending recovers, the company could be home to a lucrative AI business and a solid revenue stream from gaming.
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Apple Apple (NASDAQ: AAPL) isn't usually the first company to come to mind in a discussion about gaming. However, the company is the world's third-largest video game company, just after Tencent and Sony, because of the success of its App Store. However, before this year, Nvidia was best known for its dominance in the PC gaming market.
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13608.0
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2023-09-17 00:00:00 UTC
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If You Invested $5,000 in Broadcom In 2009, This Is How Much You Would Have Today
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AAPL
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https://www.nasdaq.com/articles/if-you-invested-%245000-in-broadcom-in-2009-this-is-how-much-you-would-have-today
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nan
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nan
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Broadcom (NASDAQ: AVGO) is one of the lesser-understood mega-caps in the semiconductor industry. As a B2B provider of semiconductors and enterprise software, it receives little exposure from the general public.
However, its success has taken its stock 5,100% higher since launching its IPO in 2009. And with demand for semiconductors and enterprise software increasing, it is likely to continue delivering significant returns for investors.
Broadcom's share price growth
Broadcom launched its IPO at an opportune time. The company, then known as Avago Technologies, debuted almost a year after the global financial crisis when stocks had begun a recovery from one of the most notable declines in history.
When it debuted, it sold for $15 per share, meaning an investor with $5,000 would have bought 333 shares. Today, the value of that investment would have grown to more than $283,000.
AVGO data by YCharts
Even better, that figure does not include dividend payments, which began in 2010. The payout has increased at least once annually since that time. Today, the annual dividend stands at $18.40 per share, a dividend yield of around 2.1%.
But that yield applies to new shareholders. Those who bought on the IPO day and held the shares will earn a cash return of $6,127 this year. That amounts to a 123% yearly return without selling a single share!
How it grew
The company now known as Broadcom began in Singapore as a semiconductor provider for businesses. Its strategy involved employing engineers near its largest customers. This way, the company would collaboratively design chips that met the needs of its clients.
Consumers typically do not interact with these products directly. However, one of its better-known chips supports the personal hotspot on Apple's iPhone.
It would also increase its capabilities by acquiring other companies, it applies to this day. Hence, its most notable purchase to date was likely the former Broadcom, which allowed the company to later adopt that name. With this move, it also would eventually move its headquarters from Singapore to San Jose.
Moreover, with the natural cyclicality of the chip industry affecting financials, Broadcom pivoted into the enterprise software industry with key acquisitions in 2018 and 2019.
Additionally, it has sought to grow this segment further by acquiring VMWare. If successful, this acquisition will mean software makes up approximately 40% of its revenue, up from just over 22% now. That purchase gives Broadcom considerable diversification away from semiconductors.
Broadcom's future
The good news is both its segments, semiconductor solutions and infrastructure software, should stay on a growth path. Fortune Business Insights forecasts a compound annual growth rate (CAGR) of 12% through 2029 for the chip industry. Also, Grand View Research predicts a CAGR for the enterprise software industry of 12% through 2030.
The company's growth has posted revenue growth consistent with those predictions. Although the chip industry has experienced a downturn, the $27 billion in revenue Broadcom reported in the first nine months of fiscal 2023 (ended July 30) rose 9% versus the same period in 2022.
Furthermore, slower growth in operating expenses resulted in a net income of nearly $11 billion during the period, rising 33% versus one year ago.
These increases have helped take Broadcom's market cap to more than $350 billion, a level making another 5,100% increase in the stock price unlikely to occur. Nonetheless, that long-term trend should continue to bolster both the semiconductor stock and the dividend. That means shareholders should continue to profit as Broadcom serves more business clients.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Broadcom and VMware. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company, then known as Avago Technologies, debuted almost a year after the global financial crisis when stocks had begun a recovery from one of the most notable declines in history. Although the chip industry has experienced a downturn, the $27 billion in revenue Broadcom reported in the first nine months of fiscal 2023 (ended July 30) rose 9% versus the same period in 2022. Furthermore, slower growth in operating expenses resulted in a net income of nearly $11 billion during the period, rising 33% versus one year ago.
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Broadcom's share price growth Broadcom launched its IPO at an opportune time. Moreover, with the natural cyclicality of the chip industry affecting financials, Broadcom pivoted into the enterprise software industry with key acquisitions in 2018 and 2019. The Motley Fool recommends Broadcom and VMware.
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Broadcom's share price growth Broadcom launched its IPO at an opportune time. These increases have helped take Broadcom's market cap to more than $350 billion, a level making another 5,100% increase in the stock price unlikely to occur. See the 10 stocks *Stock Advisor returns as of September 11, 2023 Will Healy has no position in any of the stocks mentioned.
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Today, the annual dividend stands at $18.40 per share, a dividend yield of around 2.1%. How it grew The company now known as Broadcom began in Singapore as a semiconductor provider for businesses. Moreover, with the natural cyclicality of the chip industry affecting financials, Broadcom pivoted into the enterprise software industry with key acquisitions in 2018 and 2019.
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13609.0
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2023-09-17 00:00:00 UTC
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California governor says he will sign climate bill
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https://www.nasdaq.com/articles/california-governor-says-he-will-sign-climate-bill
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By Isla Binnie
NEW YORK, Sept 17 (Reuters) - California Governor Gavin Newsom said on Sunday he would sign legislation that would require large companies to disclose their carbon footprints, potentially putting the state ahead of federal regulators on managing corporate climate risks.
The State senate approved the bill mandating greenhouse gas emissions disclosure last week, leaving Newsom with the final say.
Asked at the start of "Climate Week" in New York, a week of events coinciding with the U.N. General Assembly, whether he would sign the bill, Newsom replied: "Of course I will sign that bill."
"We have some cleanup on some little language," he added, without giving details.
Newsom acknowledged there had been "a lot of opposition" to the bill which would require companies earning more than $1 billion a year and operating in the state to measure categories of emissions including a complex category linked to supply chains and end-users, known as Scope 3.
The Securities and Exchange Commission is yet to issue its own guidance.
Multinational companies including Apple AAPL.Oand Microsoft MSFT.Ohave voiced support for the bill, but the California Chamber of Commerce said it would increase costs and paperwork for firms.
Measures aimed at managing environmental, social and governance (ESG)factors have created controversy among U.S. politicians in recent years. Lawyers have said the new California legislation could still be challenged in court.
Last week, California sued major oil companies, alleging they had played down the risks posed by fossil fuels.
(Reporting by Isla Binnie; editing by Diane Craft)
((isla.binnie@thomsonreuters.com; Reuters Messaging: isla.binnie.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Multinational companies including Apple AAPL.Oand Microsoft MSFT.Ohave voiced support for the bill, but the California Chamber of Commerce said it would increase costs and paperwork for firms. By Isla Binnie NEW YORK, Sept 17 (Reuters) - California Governor Gavin Newsom said on Sunday he would sign legislation that would require large companies to disclose their carbon footprints, potentially putting the state ahead of federal regulators on managing corporate climate risks. The State senate approved the bill mandating greenhouse gas emissions disclosure last week, leaving Newsom with the final say.
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Multinational companies including Apple AAPL.Oand Microsoft MSFT.Ohave voiced support for the bill, but the California Chamber of Commerce said it would increase costs and paperwork for firms. By Isla Binnie NEW YORK, Sept 17 (Reuters) - California Governor Gavin Newsom said on Sunday he would sign legislation that would require large companies to disclose their carbon footprints, potentially putting the state ahead of federal regulators on managing corporate climate risks. Asked at the start of "Climate Week" in New York, a week of events coinciding with the U.N. General Assembly, whether he would sign the bill, Newsom replied: "Of course I will sign that bill."
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Multinational companies including Apple AAPL.Oand Microsoft MSFT.Ohave voiced support for the bill, but the California Chamber of Commerce said it would increase costs and paperwork for firms. By Isla Binnie NEW YORK, Sept 17 (Reuters) - California Governor Gavin Newsom said on Sunday he would sign legislation that would require large companies to disclose their carbon footprints, potentially putting the state ahead of federal regulators on managing corporate climate risks. Asked at the start of "Climate Week" in New York, a week of events coinciding with the U.N. General Assembly, whether he would sign the bill, Newsom replied: "Of course I will sign that bill."
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Multinational companies including Apple AAPL.Oand Microsoft MSFT.Ohave voiced support for the bill, but the California Chamber of Commerce said it would increase costs and paperwork for firms. Asked at the start of "Climate Week" in New York, a week of events coinciding with the U.N. General Assembly, whether he would sign the bill, Newsom replied: "Of course I will sign that bill." "We have some cleanup on some little language," he added, without giving details.
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13610.0
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2023-09-17 00:00:00 UTC
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If You Invested $3,000 in Qualcomm in 2021, This Is How Much You Would Have Today
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https://www.nasdaq.com/articles/if-you-invested-%243000-in-qualcomm-in-2021-this-is-how-much-you-would-have-today-0
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Qualcomm (NASDAQ: QCOM), one of the largest mobile chipmakers in the world, saw its stock close at a record-high price of $181.67 on Dec. 15, 2021. The price had more than doubled over the previous two years as new 5G smartphones hit the market. It also expanded beyond smartphones with new automotive and Internet of Things (IoT) chips.
But today, Qualcomm's stock trades at about $113 a share. A $3,000 investment in the chipmaker at its all-time high would be worth less than $1,900 today. Let's see why the bulls retreated from Qualcomm -- and if it might bounce back in the near future.
Image source: Getty Images.
Why did Qualcomm's stock collapse?
Qualcomm's revenue rose 55% in fiscal 2021 (which ended in September 2021) and 32% in fiscal 2022. However, analysts expect its revenue to decline 25% in fiscal 2023.
Qualcomm's growth cooled off as the 5G upgrade cycle ended. The macro headwinds exacerbated that slowdown by curbing the market's appetite for new smartphones, while MediaTek -- which overtook Qualcomm as the world's top producer of mobile system-on-chips (SoCs) in late 2020 -- remained a tough competitor in the lower-end market.
Qualcomm generates most of its revenue from its Snapdragon SoCs, but its smaller licensing business -- which leverages its massive portfolio of wireless patents to take a cut of each smartphone sold worldwide (even if they don't use Qualcomm's chips) -- generates revenue at much higher margins than its chip-making business. But as the following table illustrates, the year-over-year growth of both its chipmaking (QCT) and licensing (QTL) segments decelerated over the past year.
METRIC
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
QCT Revenue Growth (YOY)
45%
28%
(11%)
(17%)
(24%)
QTL Revenue Growth (YOY)
2%
(8%)
(16%)
(18%)
(29%)
Total Revenue Growth (YOY)
37%
22%
(12%)
(17%)
(23%)
Data source: Qualcomm. YOY = Year over year.
Qualcomm expects its revenue to decline another 22% to 29% year over year in the fourth quarter -- which strongly suggests it hasn't reached the trough of its cyclical downturn yet. To make matters worse, Qualcomm's top customer, Apple, -- which regularly buys its baseband modems and accounted for over 10% of its revenue in fiscal 2022 -- plans to start producing its own baseband modems by 2026.
To reduce its dependence on Apple and the broader smartphone market, Qualcomm has been rolling out new IoT and automotive chips. But in its latest quarter, those two smaller divisions only accounted for 27% of its chipmaking revenue. It also faces stiff competition from other chipmakers like Mobileye, Ambarella, and Nvidia in the automotive chip market.
Is Qualcomm's stock ready to rebound?
At its all-time high, Qualcomm still seemed reasonably valued at 14 times the adjusted EPS it went on to generate in fiscal 2022. However, analysts expect its adjusted EPS to drop 38% in fiscal 2023 as its smartphone SoC business stalls out.
At $113, Qualcomm stock still seems cheap at 15 times that forecast -- but value-seeking investors probably won't bite until its profits start rising again. Yet longer-term investors should realize that recovery might be just around the corner.
According to IDC, global smartphone shipments will likely decline 1.1% in calendar 2023 as the soft macro environment curbs the market's appetite for new devices, but rise 5.9% in 2024 as those headwinds finally dissipate.
Until that happens, Qualcomm plans to rein in its spending on smartphone chips, invest in the growth of its automotive and IoT businesses, and keep plowing its cash into big buybacks and dividend hikes. Qualcomm has already bought back over a third of its shares over the past decade, and it's raised its dividend annually for over two decades. Its forward yield of 2.9% should limit its downside potential, and its insiders actually bought more shares than they sold over the past 12 months.
However, I don't expect the bulls to rush back to Qualcomm until its chipmaking and licensing businesses stabilize. In other words, Qualcomm isn't in serious trouble -- but it could be a very long time before it revisits and surpasses its all-time high.
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*Stock Advisor returns as of September 11, 2023
Leo Sun has positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Apple, Nvidia, and Qualcomm. The Motley Fool recommends Mobileye Global. 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 $113, Qualcomm stock still seems cheap at 15 times that forecast -- but value-seeking investors probably won't bite until its profits start rising again. According to IDC, global smartphone shipments will likely decline 1.1% in calendar 2023 as the soft macro environment curbs the market's appetite for new devices, but rise 5.9% in 2024 as those headwinds finally dissipate. Until that happens, Qualcomm plans to rein in its spending on smartphone chips, invest in the growth of its automotive and IoT businesses, and keep plowing its cash into big buybacks and dividend hikes.
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QCT Revenue Growth (YOY) 45% 28% (11%) (17%) (24%) QTL Revenue Growth (YOY) 2% (8%) (16%) (18%) (29%) Total Revenue Growth (YOY) 37% 22% (12%) (17%) (23%) Data source: Qualcomm. However, analysts expect its adjusted EPS to drop 38% in fiscal 2023 as its smartphone SoC business stalls out. The Motley Fool recommends Mobileye Global.
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Qualcomm generates most of its revenue from its Snapdragon SoCs, but its smaller licensing business -- which leverages its massive portfolio of wireless patents to take a cut of each smartphone sold worldwide (even if they don't use Qualcomm's chips) -- generates revenue at much higher margins than its chip-making business. QCT Revenue Growth (YOY) 45% 28% (11%) (17%) (24%) QTL Revenue Growth (YOY) 2% (8%) (16%) (18%) (29%) Total Revenue Growth (YOY) 37% 22% (12%) (17%) (23%) Data source: Qualcomm. Qualcomm expects its revenue to decline another 22% to 29% year over year in the fourth quarter -- which strongly suggests it hasn't reached the trough of its cyclical downturn yet.
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But today, Qualcomm's stock trades at about $113 a share. However, analysts expect its revenue to decline 25% in fiscal 2023. QCT Revenue Growth (YOY) 45% 28% (11%) (17%) (24%) QTL Revenue Growth (YOY) 2% (8%) (16%) (18%) (29%) Total Revenue Growth (YOY) 37% 22% (12%) (17%) (23%) Data source: Qualcomm.
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13611.0
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2023-09-17 00:00:00 UTC
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My Take: 4 Strong Growth Stocks to Buy This Week
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https://www.nasdaq.com/articles/my-take%3A-4-strong-growth-stocks-to-buy-this-week-9
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This has been an excellent year for growth stocks, with many enjoying significant rises after their sell-offs in 2022. The combination of high inflation and the Federal Reserve's interest rate hikes in response triggered a bear market that took the tech-heavy Nasdaq Composite index down by 33% last year. In 2023, however, booming markets like artificial intelligence (AI) and improvements in inflation have made investors bullish again.
The performances of many growth stocks over the past few years serve to highlight how crucial it is to hold over the long term, even in uncertain times. Stockholders who sold last year amid macroeconomic headwinds would not have benefited from the correction in 2023. So it's not a bad idea to dedicate a large portion of your portfolio to stocks with a history of consistent long-term gains, and to plan on holding on to them for five to 10 years, minimum.
With that idea in mind, here are four growth stocks I see as smart buys this week.
1. Amazon
Amazon (NASDAQ: AMZN) is on a roll this year, with its stock up 67% year to date. That rise brought it the majority of the way back from its 50% tumble in 2022. The company is winning over investors with a recovering e-commerce business and growing potential in AI.
The second-quarter report the tech giant posted on Aug. 4 proved it was back on a growth path. Its North American e-commerce segment hit over $3 billion in operating income after reporting $627 million in losses in the year-ago period.
That growth came thanks to Amazon's quick reactions amid poor economic conditions last year. Management implemented restructuring moves such as sunsetting unprofitable platforms, closing warehouses, and laying off workers. A solid recovery in Amazon's retail business proves its worth as a reliable growth stock, able to successfully overcome external challenges.
Despite the rally, Amazon's stock remains down 25% from the high it hit in July 2021. It still has plenty of room for growth as e-commerce profits continue to rise and it expands its AI offerings on Amazon Web Services.
2. Apple
It's not often that Apple's (NASDAQ: AAPL) stock goes on sale, but its tumble of 10% since the start of August has made it a more attractive buy. After outperforming the Nasdaq last year, inflation hikes finally caught up with the company. In Q3 2023, Apple suffered revenue declines in three of its four business segments. As a result, total revenue fell for the third consecutive quarter, decreasing by 1% year over year.
Despite those recent declines, Apple remains a behemoth in the tech industry. It has leading market shares in multiple product categories and benefits from the immense brand loyalty of its core customers. The company has much to gain from easing inflation, making its stock an excellent long-term buy.
Alongside a booming services business and expanding AI division, Apple shares are worth considering after their recent dip.
3. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) is another company that is looking like a buy after a tumble in its share price. The tech giant's stock has fallen by 20% in the last three months though it is still up 57% year to date. The company posted dismal second-quarter earnings in August, with revenue down 18% year over year. The company has suffered due to weakness in PC sales and has yet to see a return on its significant investments in AI.
However, AMD could come back strong in the coming years as it works to develop AI chips that match the power of Nvidia's best. AMD expects to begin shipping the newest chip in its MI300 lineup, which it calls its most powerful graphics processing unit (GPU) ever. Meanwhile, last month, AMD acquired AI software firm Mipsology, which specializes in AI interface software.
AMD is a long-term buy. However, it's ramping up to play a major role in the future of AI, making its stock too good to pass up.
4. Microsoft
Microsoft's (NASDAQ: MSFT) stock has climbed by 38% this year, yet it remains one of the best ways to invest in AI. Microsoft's forward price-to-earnings (P/E) ratio is currently the lowest among some of the biggest names in AI despite its massive potential in the sector. With a forward P/E of 31, Microsoft isn't exactly a bargain, but by that metric, its stock still offers more value than any of the other tech companies in the chart below.
Data by YCharts.
Microsoft expanded its stake in ChatGPT developer OpenAI to 49% this year by investing $10 billion in the start-up on top of its previous investment of $1 billion. Its partnership with the smaller company has granted Microsoft exclusive licenses to several of OpenAI's AI models, which it has used to bring AI upgrades to many of its services. Azure, Word, Excel, and Bing all offer AI tools now, and the company is likely to become the go-to choice for businesses and consumers seeking to boost productivity with the help of AI.
Microsoft has the vast resources and brand recognition to go far in AI. Its collaboration with OpenAI has given it an edge in the market and made its stock worth buying this week.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple It's not often that Apple's (NASDAQ: AAPL) stock goes on sale, but its tumble of 10% since the start of August has made it a more attractive buy. The combination of high inflation and the Federal Reserve's interest rate hikes in response triggered a bear market that took the tech-heavy Nasdaq Composite index down by 33% last year. So it's not a bad idea to dedicate a large portion of your portfolio to stocks with a history of consistent long-term gains, and to plan on holding on to them for five to 10 years, minimum.
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Apple It's not often that Apple's (NASDAQ: AAPL) stock goes on sale, but its tumble of 10% since the start of August has made it a more attractive buy. Alongside a booming services business and expanding AI division, Apple shares are worth considering after their recent dip. Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) is another company that is looking like a buy after a tumble in its share price.
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Apple It's not often that Apple's (NASDAQ: AAPL) stock goes on sale, but its tumble of 10% since the start of August has made it a more attractive buy. Amazon Amazon (NASDAQ: AMZN) is on a roll this year, with its stock up 67% year to date. Microsoft Microsoft's (NASDAQ: MSFT) stock has climbed by 38% this year, yet it remains one of the best ways to invest in AI.
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Apple It's not often that Apple's (NASDAQ: AAPL) stock goes on sale, but its tumble of 10% since the start of August has made it a more attractive buy. Amazon Amazon (NASDAQ: AMZN) is on a roll this year, with its stock up 67% year to date. AMD is a long-term buy.
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13612.0
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2023-09-17 00:00:00 UTC
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Analyst: Apple Stock Could Soar to $240
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https://www.nasdaq.com/articles/analyst%3A-apple-stock-could-soar-to-%24240
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Following Apple's (NASDAQ: AAPL) iPhone launch event last week, Wall Street analysts shared some insightful thoughts on the new products and their potential to help the tech giant's business. In general, analysts seem quite bullish after watching Apple's latest product announcements. Several analysts even raised their 12-month price targets for the stock.
Among the most optimistic analysts was one from Wedbush Securities. The firm's managing director of equity research, Dan Ives, said he thinks the stock could soar about 38% from its current level over the next 12 months. Given the substantial upside Ives expects from the stock, it's worth taking a look at the reasoning behind his bullishness to see if the reasoning is sound.
The path to $240
Ives raised his target for the stock to $240, up from $230 previously. To explain his high target and his "outperform" rating on the stock, he said his iPhone supply chain checks pointed to a healthy supply chain for the iPhone. This, of course, would support robust sales levels. In addition, he thinks mobile phone carrier promotions will be aggressive, serving as "a major catalyst for upgrades into the holiday season." Finally, the analyst pointed to China, where he thinks the tech company has "incredible momentum."
The analyst had previously said he expected the latest iPhone Pro model to drive a "mini super cycle" in terms of sales. Based on his note following the event, the launch apparently didn't disappoint Ives.
At its Sept. 12 event, Apple unveiled the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, iPhone 15 Pro Max, Apple Watch Series 9, Apple Watch Ultra 2, and upgraded second-generation AirPods Pro. Customers can get their hands on these products as early as Friday, Sept. 22. Ives seems particularly bullish on Apple's new iPhone Pro, which features a new titanium design, an A17 Pro chip, a new action button that replaces the single-function switch for silent mode, and more.
Interestingly, a more recent analyst note corroborates with Ives' projection for strong iPhone 15 demand this year. Credit Suisse's Shannon Cross pointed out that estimated delivery dates for new orders of the new iPhone 15 Pro Max are already substantially longer than they were following the launch of new iPhone models last year. Specifically, the longer lead times imply higher demand for this year's iPhone 15 Pro Max over last year's iPhone 14 Pro Max, Cross suggests. The analyst, who has a $220 price target on the stock, thinks aggressive discounting from carriers and a large number of customers with three-year-old iPhones is helping drive outsize demand for the new device.
Why iPhone can move the needle for Apple
While there's no way to know yet if Ives' optimism for the iPhone is on point, one thing is clear: if the iPhone does do well, it will likely be good news for Apple shareholders. Why? Apple's iPhone remains the company's biggest segment by far. Of the Cupertino-based company's $394 billion in fiscal 2022 revenue, more than $205 billion came from iPhone sales. Even more, Apple has indicated that its iPhone business is its most profitable hardware segment, so it has an outsize impact on profit.
While we'll have to wait until Apple announces its fiscal fourth-quarter results to know for sure whether iPhone 15 is off to a better start than iPhone 14 was, Ives' supply chain channel checks combined with the fact that iPhone Pro Max delivery estimates are already pushing into November do offer some clues; the iPhone 15 and 15 Pro lineup is probably going to be a hit.
Find out why Apple is one of the 10 best stocks to buy now
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Following Apple's (NASDAQ: AAPL) iPhone launch event last week, Wall Street analysts shared some insightful thoughts on the new products and their potential to help the tech giant's business. The analyst had previously said he expected the latest iPhone Pro model to drive a "mini super cycle" in terms of sales. The analyst, who has a $220 price target on the stock, thinks aggressive discounting from carriers and a large number of customers with three-year-old iPhones is helping drive outsize demand for the new device.
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Following Apple's (NASDAQ: AAPL) iPhone launch event last week, Wall Street analysts shared some insightful thoughts on the new products and their potential to help the tech giant's business. At its Sept. 12 event, Apple unveiled the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, iPhone 15 Pro Max, Apple Watch Series 9, Apple Watch Ultra 2, and upgraded second-generation AirPods Pro. Specifically, the longer lead times imply higher demand for this year's iPhone 15 Pro Max over last year's iPhone 14 Pro Max, Cross suggests.
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Following Apple's (NASDAQ: AAPL) iPhone launch event last week, Wall Street analysts shared some insightful thoughts on the new products and their potential to help the tech giant's business. At its Sept. 12 event, Apple unveiled the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, iPhone 15 Pro Max, Apple Watch Series 9, Apple Watch Ultra 2, and upgraded second-generation AirPods Pro. Why iPhone can move the needle for Apple While there's no way to know yet if Ives' optimism for the iPhone is on point, one thing is clear: if the iPhone does do well, it will likely be good news for Apple shareholders.
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Following Apple's (NASDAQ: AAPL) iPhone launch event last week, Wall Street analysts shared some insightful thoughts on the new products and their potential to help the tech giant's business. At its Sept. 12 event, Apple unveiled the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, iPhone 15 Pro Max, Apple Watch Series 9, Apple Watch Ultra 2, and upgraded second-generation AirPods Pro. While we'll have to wait until Apple announces its fiscal fourth-quarter results to know for sure whether iPhone 15 is off to a better start than iPhone 14 was, Ives' supply chain channel checks combined with the fact that iPhone Pro Max delivery estimates are already pushing into November do offer some clues; the iPhone 15 and 15 Pro lineup is probably going to be a hit.
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13613.0
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2023-09-17 00:00:00 UTC
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FOMC, Energy and Other Key Things to Watch This Week
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https://www.nasdaq.com/articles/fomc-energy-and-other-key-things-to-watch-this-week
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Last week we received some disappointing news on the inflation front. Both PPI and CPI came in a little hotter than expected, and fears were stoked that inflation could be coming back. Up until Friday most names were up pretty well on the week. Tesla (TSLA) shot up out of the gate on Monday and had a very tradable week. Apple (AAPL) had the opposite issue this week, it has slowly trended down the majority of the week on continued fears of the China news and a disappointing iPhone 15 launch. All of these culminated in the S&P 500 ($SPX) (SPY) ending the week down nearly 1%.
This week looks to be an exciting one, in addition to the normal news in the cycle we also have the FOMC/Fed Funds and then the press conference that follows. Here are 5 things to watch this week in the market.
Building Permits
Housing is still firmly in the news cycle as the strangeness continues. In some private data released last week, existing home sales looked to be at record low levels whereas new homes were still selling as fast as they could be built. This, in addition to existing home sales later this week, will either confirm or counter what was asserted in that private data from Realtors. Watching building permits could be a great way to gauge if builders are racing to meet the excess demand in the market. If they are it could mean that housing prices will eventually begin to subside as supply continues to increase. If this comes in lower, then the opposite could be assumed and this housing issue could be here to stay.
Fed Funds/FOMC
This is the big day everyone has been waiting for recently, with reports starting to show inflation is creeping back up and energy becoming an issue again going into the fall. What happens to the Fed Funds is anyone's guess. The market appears to be pricing in a “no change” decision, and this is what the estimates are across many financial outlets. With housing still an issue, energy starting to push inflation up again, and some other supply chain issues rearing their heads, it's possible Powell will hold firm and not take future hikes off the table. If this is the case, it's possible the market start to sell on renewed fears of hikes. On the other hand, if he pauses and or cuts, It's possible we rally on the assumption the worst is behind us.
Existing Home Sales
Similar to the Building Permits above, Existing home sales have been falling month over month and have been getting revised down in the most recent months. We are looking for an increase in existing home sales to help potentially show that housing is starting to unlock and that prices could start to come down.
Flash PMI
Both Flash Manufacturing and Services PMI are due Friday morning at 9:45. These are typically leading indicators for economic health as they show the impact on forecasted purchasing for both sectors. Usually, a beat would be a positive and would be something we would want to see. As of recently though the “good news is Bad News” seems to be the market paradigm. So it's possible that a miss would be seen as beneficial for the markets as everything seems to still be revolving around interest rates. It's also possible that FOMC impacts how this report is taken by the markets. If a pause or cut is anticipated next, it could help the market to start to look at these reports “normally” again.
Energy
Energy is still in the news and could still be a factor in the markets. This poses more of a macro risk, but as diesel and gas prices continue to rise so will the prices of the goods that need to be transported. It's possible that this fear continues to play into both rate decisions and consumer habits as the prices at the pump continue to increase.
Best of luck this week and don’t forget to check out my daily options article.
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2 Buy-Rated Dividend Stocks to Scoop Up Now
Stocks Slump as Tech Stock Weakness Weighs on the Overall Market
Nike: Is This Underperforming Growth Stock a "Value Buy" Right Now?
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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Apple (AAPL) had the opposite issue this week, it has slowly trended down the majority of the week on continued fears of the China news and a disappointing iPhone 15 launch. This, in addition to existing home sales later this week, will either confirm or counter what was asserted in that private data from Realtors. Watching building permits could be a great way to gauge if builders are racing to meet the excess demand in the market.
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Apple (AAPL) had the opposite issue this week, it has slowly trended down the majority of the week on continued fears of the China news and a disappointing iPhone 15 launch. In some private data released last week, existing home sales looked to be at record low levels whereas new homes were still selling as fast as they could be built. Fed Funds/FOMC This is the big day everyone has been waiting for recently, with reports starting to show inflation is creeping back up and energy becoming an issue again going into the fall.
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Apple (AAPL) had the opposite issue this week, it has slowly trended down the majority of the week on continued fears of the China news and a disappointing iPhone 15 launch. We are looking for an increase in existing home sales to help potentially show that housing is starting to unlock and that prices could start to come down. More Stock Market News from Barchart Soybean Prices Poised to Decline Further Into Their October Seasonal Lows 2 Buy-Rated Dividend Stocks to Scoop Up Now Stocks Slump as Tech Stock Weakness Weighs on the Overall Market Nike: Is This Underperforming Growth Stock a "Value Buy" Right Now?
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Apple (AAPL) had the opposite issue this week, it has slowly trended down the majority of the week on continued fears of the China news and a disappointing iPhone 15 launch. Fed Funds/FOMC This is the big day everyone has been waiting for recently, with reports starting to show inflation is creeping back up and energy becoming an issue again going into the fall. We are looking for an increase in existing home sales to help potentially show that housing is starting to unlock and that prices could start to come down.
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13614.0
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2023-09-17 00:00:00 UTC
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Can Bitcoin Reach $100,000?
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AAPL
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https://www.nasdaq.com/articles/can-bitcoin-reach-%24100000-9
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nan
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nan
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Bitcoin (CRYPTO: BTC) has been a winning investment this year, with its price up almost 60% in 2023 (as of Sept. 15). Interest from investors is growing after a tumultuous 2022 that saw digital asset prices tank as major businesses in the industry blew up. But it might be a good idea to set your eyes on a new price target, even after the huge gain this year.
In November 2021, Bitcoin hit an all-time high of nearly $69,000. And while it's 62% off that peak right now, I believe that the world's top cryptocurrency can reach $100,000 within the next five years. By looking at the quantitative and qualitative factors, I think other investors would tend to agree with this forecast.
Running the numbers
As of this writing, Bitcoin's price is roughly $26,000, and its market cap is just over $500 billion. To keep the calculation nice and simple, if the crypto hits $100,000, it would translate to a gain of 300% in the next five years, good for an annualized increase of 32%. That return would surely crush the rise of the S&P 500 or the Nasdaq Composite, but it would match Bitcoin's trailing-five-year return.
In five years, Bitcoin's market cap would total $2 trillion. That might seem like a lot, but consider that the total value of all the gold on Earth is about $12.5 trillion. As Bitcoin becomes a more legitimized and widely accepted store of value, it should steadily creep up on the total market cap of the popular precious metal. But even in our scenario, Bitcoin would only be worth 16% of gold, a penetration rate that might seem conservative to some bulls.
At a roughly $2 trillion market cap, Bitcoin would still be less valuable than Apple, which is currently worth $2.7 trillion, and Microsoft, with a value of $2.5 trillion. So while a $100,000 price target might seem like a lofty expectation at first glance, it still leaves Bitcoin trailing some of the most successful businesses of all time, a completely reasonable outlook.
Why should demand rise?
Those calculations make sense and aren't a stretch of the imagination to believe, but the ultimate question remains why more individuals, institutions, or governments would even want to own Bitcoin in greater quantities in the years ahead. It's illuminating to focus on this asset's qualitative characteristics.
According to bitinfocharts.com, Bitcoin can only process less than six transactions per second (TPS). This pales in comparison to Visa, the card payments giant, which can theoretically handle 65,000 TPS. Consequently, Bitcoin hasn't shown much promise as a medium of exchange in day-to-day payments. In fact, in developed countries, the existing payments infrastructure works pretty well.
However, I believe that Bitcoin's key thesis centers on more parties using it to store their wealth. From a basic supply-and-demand perspective, owning an asset of which there will only ever be 21 million coins seems like a smart decision. As demand rises combined with a fixed supply cap, the price is set to continue climbing higher over time, even though it won't be a smooth ride.
Besides the promise of huge financial returns, Bitcoin can be a worthy store of value when compared to fiat currency. Government-backed money has been devalued over the past century thanks to enormous amounts of money creation, particularly in the past decade or so. This has resulted in the U.S., a country viewed as the world's economic powerhouse, having a whopping $33 trillion in debt outstanding, a figure that has expanded over time and that doesn't include underfunded liabilities like Medicare and Social Security.
I think more market participants, whether individual or institutional investors, corporations, or even governments, are starting to look at Bitcoin as a hedge against something breaking with the traditional financial and monetary system. As more learn about this cryptocurrency, it's not crazy to believe that its price should approach the $100,000 mark. I wouldn't be surprised to see this milestone reached by the end of 2028.
10 stocks we like better than Bitcoin
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 Bitcoin 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
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bitcoin, Microsoft, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those calculations make sense and aren't a stretch of the imagination to believe, but the ultimate question remains why more individuals, institutions, or governments would even want to own Bitcoin in greater quantities in the years ahead. As demand rises combined with a fixed supply cap, the price is set to continue climbing higher over time, even though it won't be a smooth ride. This has resulted in the U.S., a country viewed as the world's economic powerhouse, having a whopping $33 trillion in debt outstanding, a figure that has expanded over time and that doesn't include underfunded liabilities like Medicare and Social Security.
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In five years, Bitcoin's market cap would total $2 trillion. At a roughly $2 trillion market cap, Bitcoin would still be less valuable than Apple, which is currently worth $2.7 trillion, and Microsoft, with a value of $2.5 trillion. Besides the promise of huge financial returns, Bitcoin can be a worthy store of value when compared to fiat currency.
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In five years, Bitcoin's market cap would total $2 trillion. At a roughly $2 trillion market cap, Bitcoin would still be less valuable than Apple, which is currently worth $2.7 trillion, and Microsoft, with a value of $2.5 trillion. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Bitcoin wasn't one of them!
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But it might be a good idea to set your eyes on a new price target, even after the huge gain this year. In five years, Bitcoin's market cap would total $2 trillion. At a roughly $2 trillion market cap, Bitcoin would still be less valuable than Apple, which is currently worth $2.7 trillion, and Microsoft, with a value of $2.5 trillion.
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13615.0
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2023-09-17 00:00:00 UTC
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Foxconn aims to double jobs, investment in India over next 12 months
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AAPL
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https://www.nasdaq.com/articles/foxconn-aims-to-double-jobs-investment-in-india-over-next-12-months
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nan
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Sept 17 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW aims to double its workforce and investment in India by next year, a company executive said on Sunday.
Taiwan-based Foxconn, the world's largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China.
V Lee, Foxconn's representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi's 73rd birthday, said the company was "aiming for another doubling of employment, FDI (foreign direct investment), and business size in India" by this time next year.
He did not give more details.
Foxconn already has an iPhone factory in the state of Tamil Nadu, which employs 40,000 people.
In August, the state of Karnataka said Foxconn will invest $600 million for two projects in the state to make casing components for iPhones and chip-making equipment.
The company's Chairman Liu Young-way said in an earnings briefing last month that he sees a lot of potential in India, adding: "several billion dollars in investment is only a beginning".
(Reporting by Shivani Tanna in Bengaluru; Editing by Susan Fenton)
((ShivaniJayesh.Tanna@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sept 17 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW aims to double its workforce and investment in India by next year, a company executive said on Sunday. V Lee, Foxconn's representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi's 73rd birthday, said the company was "aiming for another doubling of employment, FDI (foreign direct investment), and business size in India" by this time next year. The company's Chairman Liu Young-way said in an earnings briefing last month that he sees a lot of potential in India, adding: "several billion dollars in investment is only a beginning".
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Sept 17 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW aims to double its workforce and investment in India by next year, a company executive said on Sunday. Taiwan-based Foxconn, the world's largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China. V Lee, Foxconn's representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi's 73rd birthday, said the company was "aiming for another doubling of employment, FDI (foreign direct investment), and business size in India" by this time next year.
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Sept 17 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW aims to double its workforce and investment in India by next year, a company executive said on Sunday. Taiwan-based Foxconn, the world's largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China. V Lee, Foxconn's representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi's 73rd birthday, said the company was "aiming for another doubling of employment, FDI (foreign direct investment), and business size in India" by this time next year.
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Sept 17 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW aims to double its workforce and investment in India by next year, a company executive said on Sunday. Taiwan-based Foxconn, the world's largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China. V Lee, Foxconn's representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi's 73rd birthday, said the company was "aiming for another doubling of employment, FDI (foreign direct investment), and business size in India" by this time next year.
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13616.0
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2023-09-17 00:00:00 UTC
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If You Invested $3,000 in Qualcomm in 2021, This Is How Much You Would Have Today
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AAPL
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https://www.nasdaq.com/articles/if-you-invested-%243000-in-qualcomm-in-2021-this-is-how-much-you-would-have-today
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nan
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nan
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Qualcomm (NASDAQ: QCOM), one of the largest mobile chipmakers in the world, saw its stock close at a record-high price of $181.67 on Dec. 15, 2021. The price had more than doubled over the previous two years as new 5G smartphones hit the market. It also expanded beyond smartphones with new automotive and Internet of Things (IoT) chips.
But today, Qualcomm's stock trades at about $113 a share. A $3,000 investment in the chipmaker at its all-time high would be worth less than $1,900 today. Let's see why the bulls retreated from Qualcomm -- and if it might bounce back in the near future.
Image source: Getty Images.
Why did Qualcomm's stock collapse?
Qualcomm's revenue rose 55% in fiscal 2021 (which ended in September 2021) and 32% in fiscal 2022. However, analysts expect its revenue to decline 25% in fiscal 2023.
Qualcomm's growth cooled off as the 5G upgrade cycle ended. The macro headwinds exacerbated that slowdown by curbing the market's appetite for new smartphones, while MediaTek -- which overtook Qualcomm as the world's top producer of mobile system-on-chips (SoCs) in late 2020 -- remained a tough competitor in the lower-end market.
Qualcomm generates most of its revenue from its Snapdragon SoCs, but its smaller licensing business -- which leverages its massive portfolio of wireless patents to take a cut of each smartphone sold worldwide (even if they don't use Qualcomm's chips) -- generates revenue at much higher margins than its chip-making business. But as the following table illustrates, the year-over-year growth of both its chipmaking (QCT) and licensing (QTL) segments decelerated over the past year.
METRIC
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
QCT Revenue Growth (YOY)
45%
28%
(11%)
(17%)
(24%)
QTL Revenue Growth (YOY)
2%
(8%)
(16%)
(18%)
(29%)
Total Revenue Growth (YOY)
37%
22%
(12%)
(17%)
(23%)
Data source: Qualcomm. YOY = Year over year.
Qualcomm expects its revenue to decline another 22% to 29% year over year in the fourth quarter -- which strongly suggests it hasn't reached the trough of its cyclical downturn yet. To make matters worse, Qualcomm's top customer, Apple, -- which regularly buys its baseband modems and accounted for over 10% of its revenue in fiscal 2022 -- plans to start producing its own baseband modems by 2026.
To reduce its dependence on Apple and the broader smartphone market, Qualcomm has been rolling out new IoT and automotive chips. But in its latest quarter, those two smaller divisions only accounted for 27% of its chipmaking revenue. It also faces stiff competition from other chipmakers like Mobileye, Ambarella, and Nvidia in the automotive chip market.
Is Qualcomm's stock ready to rebound?
At its all-time high, Qualcomm still seemed reasonably valued at 14 times the adjusted EPS it went on to generate in fiscal 2022. However, analysts expect its adjusted EPS to drop 38% in fiscal 2023 as its smartphone SoC business stalls out.
At $113, Qualcomm stock still seems cheap at 15 times that forecast -- but value-seeking investors probably won't bite until its profits start rising again. Yet longer-term investors should realize that recovery might be just around the corner.
According to IDC, global smartphone shipments will likely decline 1.1% in calendar 2023 as the soft macro environment curbs the market's appetite for new devices, but rise 5.9% in 2024 as those headwinds finally dissipate.
Until that happens, Qualcomm plans to rein in its spending on smartphone chips, invest in the growth of its automotive and IoT businesses, and keep plowing its cash into big buybacks and dividend hikes. Qualcomm has already bought back over a third of its shares over the past decade, and it's raised its dividend annually for over two decades. Its forward yield of 2.9% should limit its downside potential, and its insiders actually bought more shares than they sold over the past 12 months.
However, I don't expect the bulls to rush back to Qualcomm until its chipmaking and licensing businesses stabilize. In other words, Qualcomm isn't in serious trouble -- but it could be a very long time before it revisits and surpasses its all-time high.
10 stocks we like better than Qualcomm
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 Qualcomm 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
Leo Sun has positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Apple, Nvidia, and Qualcomm. The Motley Fool recommends Mobileye Global. 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 $113, Qualcomm stock still seems cheap at 15 times that forecast -- but value-seeking investors probably won't bite until its profits start rising again. According to IDC, global smartphone shipments will likely decline 1.1% in calendar 2023 as the soft macro environment curbs the market's appetite for new devices, but rise 5.9% in 2024 as those headwinds finally dissipate. Until that happens, Qualcomm plans to rein in its spending on smartphone chips, invest in the growth of its automotive and IoT businesses, and keep plowing its cash into big buybacks and dividend hikes.
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QCT Revenue Growth (YOY) 45% 28% (11%) (17%) (24%) QTL Revenue Growth (YOY) 2% (8%) (16%) (18%) (29%) Total Revenue Growth (YOY) 37% 22% (12%) (17%) (23%) Data source: Qualcomm. However, analysts expect its adjusted EPS to drop 38% in fiscal 2023 as its smartphone SoC business stalls out. The Motley Fool recommends Mobileye Global.
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Qualcomm generates most of its revenue from its Snapdragon SoCs, but its smaller licensing business -- which leverages its massive portfolio of wireless patents to take a cut of each smartphone sold worldwide (even if they don't use Qualcomm's chips) -- generates revenue at much higher margins than its chip-making business. QCT Revenue Growth (YOY) 45% 28% (11%) (17%) (24%) QTL Revenue Growth (YOY) 2% (8%) (16%) (18%) (29%) Total Revenue Growth (YOY) 37% 22% (12%) (17%) (23%) Data source: Qualcomm. Qualcomm expects its revenue to decline another 22% to 29% year over year in the fourth quarter -- which strongly suggests it hasn't reached the trough of its cyclical downturn yet.
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But today, Qualcomm's stock trades at about $113 a share. However, analysts expect its revenue to decline 25% in fiscal 2023. QCT Revenue Growth (YOY) 45% 28% (11%) (17%) (24%) QTL Revenue Growth (YOY) 2% (8%) (16%) (18%) (29%) Total Revenue Growth (YOY) 37% 22% (12%) (17%) (23%) Data source: Qualcomm.
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13617.0
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2023-09-17 00:00:00 UTC
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Warren Buffett's AI Bets: 46.1% of Berkshire Hathaway's $353 Billion Stock Portfolio Is Held in These 2 Artificial Intelligence (AI) Growth Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-ai-bets%3A-46.1-of-berkshire-hathaways-%24353-billion-stock-portfolio-is-held
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nan
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nan
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Berkshire Hathaway CEO Warren Buffett is most famous for his legendary success as a value investor. On the other hand, 46.1% of his company's $353 billion stock portfolio is actually held in just two artificial intelligence (AI) growth stocks right now.
To shed some light on how the Oracle of Omaha's current bets on AI are positioned, two Motley Fool contributors have profiled a top AI stock in the investment conglomerate's portfolio. Read on for a look at one AI company that Berkshire has placed an absolutely massive bet on -- and another smaller bet that's also poised to be a long-term winner.
Apple has proven it can harness the power of new technology
Parkev Tatevosian: Warren Buffett's Berkshire Hathaway portfolio may not have invested in Apple (NASDAQ: AAPL) stock because of AI, but Apple could be one of the prime beneficiaries of the technological breakthrough. Apple's iPhones, iPads, computers, and more could all benefit from the infusion of AI. One such example is the voice assistance Siri. In its current form, Siri is not nearly as intuitive as it could be. Still, people can download the ChatGPT app on the iPhone, which makes the device more valuable to users.
Moreover, AI is still in the very early stages of development. It would be reasonable to assume that Apple will incorporate more nascent technology in its devices and services over the next several years. Already, Apple has grown to $394 billion in revenue in 2022. It has achieved this feat by relentless innovation. Warren Buffett is not one to get excited about a company after only one or two successes. Instead, The Oracle of Omaha is more interested in companies that have demonstrated that skill over several iterations.
Notably, Apple turns innovation into profits. There have been many remarkable inventions in our history. Fewer still have turned into successful businesses. Apple has achieved both great innovation and profits. Indeed, Apple's operating income in 2022 surpassed $119 billion. Looking at these achievements, it's no surprise that 45.7% of Berkshire Hathaway's portfolio is invested in Apple stock.
Amazon will score AI wins on multiple fronts
Keith Noonan: Beyond Apple, large Berkshire Hathaway holdings including Bank of America and American Express will likely see some significant tailwinds related to artificial intelligence. But you actually have to go much further down the investment conglomerate's weighted stock portfolio list to find a company that would commonly be considered an "AI stock."
Coming in at just 0.4% of Berkshire's total stock holdings, Amazon (NASDAQ: AMZN) stands as just the 23rd largest position in the conglomerate's portfolio. But while Buffett's exposure to the stock remains relatively small, the e-commerce and cloud computing giant has a good chance of being one of the AI revolution's biggest winners.
In the short term, the impact of artificial intelligence will be most visible in the company's Amazon Web Services (AWS) cloud-infrastructure business. Amazon remains the world's leading provider of cloud services, and the company's infrastructure stands to see rising demand as a growing number of AI applications are launched and scaled.
But AWS isn't the only business segment that will benefit from AI. While the transformative potential will likely take longer to materialize, artificial intelligence will likely make Amazon's e-commerce business far more profitable.
Amazon still generated most of its revenue from online retail, but the business has historically been relatively low margin. As AI paves the way for improved automation at warehouses and makes high-performance self-driving delivery vehicles possible, operating costs for the company's e-commerce business should fall. In turn, the company's largest source of sales stands to become far more profitable.
Apple and Amazon look like long-term AI winners
Thanks to their technology advantages, funding strength, and other competitive edges, large tech companies will likely be the AI revolution's biggest winners. Apple and Amazon each enjoy huge platform and infrastructure advantages that will be very difficult for competitors to disrupt, and these strengths position each company to push artificial intelligence forward and reap the benefits. For long-term investors looking to capitalize on today's hottest tech trend, building positions in both stocks would be a smart move.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of 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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Noonan has no position in any of the stocks mentioned. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple has proven it can harness the power of new technology Parkev Tatevosian: Warren Buffett's Berkshire Hathaway portfolio may not have invested in Apple (NASDAQ: AAPL) stock because of AI, but Apple could be one of the prime beneficiaries of the technological breakthrough. Amazon will score AI wins on multiple fronts Keith Noonan: Beyond Apple, large Berkshire Hathaway holdings including Bank of America and American Express will likely see some significant tailwinds related to artificial intelligence. Amazon remains the world's leading provider of cloud services, and the company's infrastructure stands to see rising demand as a growing number of AI applications are launched and scaled.
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Apple has proven it can harness the power of new technology Parkev Tatevosian: Warren Buffett's Berkshire Hathaway portfolio may not have invested in Apple (NASDAQ: AAPL) stock because of AI, but Apple could be one of the prime beneficiaries of the technological breakthrough. Amazon will score AI wins on multiple fronts Keith Noonan: Beyond Apple, large Berkshire Hathaway holdings including Bank of America and American Express will likely see some significant tailwinds related to artificial intelligence. Coming in at just 0.4% of Berkshire's total stock holdings, Amazon (NASDAQ: AMZN) stands as just the 23rd largest position in the conglomerate's portfolio.
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Apple has proven it can harness the power of new technology Parkev Tatevosian: Warren Buffett's Berkshire Hathaway portfolio may not have invested in Apple (NASDAQ: AAPL) stock because of AI, but Apple could be one of the prime beneficiaries of the technological breakthrough. To shed some light on how the Oracle of Omaha's current bets on AI are positioned, two Motley Fool contributors have profiled a top AI stock in the investment conglomerate's portfolio. Apple and Amazon look like long-term AI winners Thanks to their technology advantages, funding strength, and other competitive edges, large tech companies will likely be the AI revolution's biggest winners.
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Apple has proven it can harness the power of new technology Parkev Tatevosian: Warren Buffett's Berkshire Hathaway portfolio may not have invested in Apple (NASDAQ: AAPL) stock because of AI, but Apple could be one of the prime beneficiaries of the technological breakthrough. On the other hand, 46.1% of his company's $353 billion stock portfolio is actually held in just two artificial intelligence (AI) growth stocks right now. To shed some light on how the Oracle of Omaha's current bets on AI are positioned, two Motley Fool contributors have profiled a top AI stock in the investment conglomerate's portfolio.
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13618.0
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2023-09-17 00:00:00 UTC
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Can Bitcoin Reach $100,000?
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AAPL
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https://www.nasdaq.com/articles/can-bitcoin-reach-%24100000-8
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nan
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nan
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Bitcoin (CRYPTO: BTC) has been a winning investment this year, with its price up almost 60% in 2023 (as of Sept. 15). Interest from investors is growing after a tumultuous 2022 that saw digital asset prices tank as major businesses in the industry blew up. But it might be a good idea to set your eyes on a new price target, even after the huge gain this year.
In November 2021, Bitcoin hit an all-time high of nearly $69,000. And while it's 62% off that peak right now, I believe that the world's top cryptocurrency can reach $100,000 within the next five years. By looking at the quantitative and qualitative factors, I think other investors would tend to agree with this forecast.
Running the numbers
As of this writing, Bitcoin's price is roughly $26,000, and its market cap is just over $500 billion. To keep the calculation nice and simple, if the crypto hits $100,000, it would translate to a gain of 300% in the next five years, good for an annualized increase of 32%. That return would surely crush the rise of the S&P 500 or the Nasdaq Composite, but it would match Bitcoin's trailing-five-year return.
In five years, Bitcoin's market cap would total $2 trillion. That might seem like a lot, but consider that the total value of all the gold on Earth is about $12.5 trillion. As Bitcoin becomes a more legitimized and widely accepted store of value, it should steadily creep up on the total market cap of the popular precious metal. But even in our scenario, Bitcoin would only be worth 16% of gold, a penetration rate that might seem conservative to some bulls.
At a roughly $2 trillion market cap, Bitcoin would still be less valuable than Apple, which is currently worth $2.7 trillion, and Microsoft, with a value of $2.5 trillion. So while a $100,000 price target might seem like a lofty expectation at first glance, it still leaves Bitcoin trailing some of the most successful businesses of all time, a completely reasonable outlook.
Why should demand rise?
Those calculations make sense and aren't a stretch of the imagination to believe, but the ultimate question remains why more individuals, institutions, or governments would even want to own Bitcoin in greater quantities in the years ahead. It's illuminating to focus on this asset's qualitative characteristics.
According to bitinfocharts.com, Bitcoin can only process less than six transactions per second (TPS). This pales in comparison to Visa, the card payments giant, which can theoretically handle 65,000 TPS. Consequently, Bitcoin hasn't shown much promise as a medium of exchange in day-to-day payments. In fact, in developed countries, the existing payments infrastructure works pretty well.
However, I believe that Bitcoin's key thesis centers on more parties using it to store their wealth. From a basic supply-and-demand perspective, owning an asset of which there will only ever be 21 million coins seems like a smart decision. As demand rises combined with a fixed supply cap, the price is set to continue climbing higher over time, even though it won't be a smooth ride.
Besides the promise of huge financial returns, Bitcoin can be a worthy store of value when compared to fiat currency. Government-backed money has been devalued over the past century thanks to enormous amounts of money creation, particularly in the past decade or so. This has resulted in the U.S., a country viewed as the world's economic powerhouse, having a whopping $33 trillion in debt outstanding, a figure that has expanded over time and that doesn't include underfunded liabilities like Medicare and Social Security.
I think more market participants, whether individual or institutional investors, corporations, or even governments, are starting to look at Bitcoin as a hedge against something breaking with the traditional financial and monetary system. As more learn about this cryptocurrency, it's not crazy to believe that its price should approach the $100,000 mark. I wouldn't be surprised to see this milestone reached by the end of 2028.
10 stocks we like better than Bitcoin
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 Bitcoin 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
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bitcoin, Microsoft, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those calculations make sense and aren't a stretch of the imagination to believe, but the ultimate question remains why more individuals, institutions, or governments would even want to own Bitcoin in greater quantities in the years ahead. As demand rises combined with a fixed supply cap, the price is set to continue climbing higher over time, even though it won't be a smooth ride. This has resulted in the U.S., a country viewed as the world's economic powerhouse, having a whopping $33 trillion in debt outstanding, a figure that has expanded over time and that doesn't include underfunded liabilities like Medicare and Social Security.
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In five years, Bitcoin's market cap would total $2 trillion. At a roughly $2 trillion market cap, Bitcoin would still be less valuable than Apple, which is currently worth $2.7 trillion, and Microsoft, with a value of $2.5 trillion. Besides the promise of huge financial returns, Bitcoin can be a worthy store of value when compared to fiat currency.
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In five years, Bitcoin's market cap would total $2 trillion. At a roughly $2 trillion market cap, Bitcoin would still be less valuable than Apple, which is currently worth $2.7 trillion, and Microsoft, with a value of $2.5 trillion. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Bitcoin wasn't one of them!
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But it might be a good idea to set your eyes on a new price target, even after the huge gain this year. In five years, Bitcoin's market cap would total $2 trillion. At a roughly $2 trillion market cap, Bitcoin would still be less valuable than Apple, which is currently worth $2.7 trillion, and Microsoft, with a value of $2.5 trillion.
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13619.0
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2023-09-16 00:00:00 UTC
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MarketBeat Week in Review – 9/11 - 9/15
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https://www.nasdaq.com/articles/marketbeat-week-in-review-9-11-9-15
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Markets continue to trade in a defined range, with the S&P 500 moving between support around 4330 and resistance at 4540. And despite the latest data showing inflation is increasing oil prices, equities are holding steady in that range.
Some analysts believe something has to change, but in which direction? The next clue may come when the Federal Reserve meets next week. The consensus is that the Fed will hold interest rates steady, but investors will hang on any word or phrase that hints at a hike later this year.
In the meantime, investors have to weigh how much significance to give to lagging (somewhat bullish) versus leading (mostly bearish) indicators. That's where MarketBeat can help. There are opportunities in every market. Our analysts genuinely love discovering those opportunities so you can build wealth regardless of what's happening in the broader economy. Here are some of our most popular articles this week.
Articles by Jea Yu
Investors continue to pile into artificial intelligence (AI) stocks. This week, Jea Yu made a case for six small-cap AI stocks for investors to consider. Small-cap stocks carry more risk but also give investors a chance for market-beating gains.
Investor money has been shifting into the energy sector in anticipation of the higher oil prices that we're now seeing. Enbridge, Inc. (NYSE: ENB) has been left out of the rally. But Yu explains why ENB stock may be a safe choice at its current price.
One of the week's big stories was the news that Airbnb Inc. (NASDAQ: ABNB) will join the S&P 500 index on September 18, 2023. The announcement boosted ABNB stock by 7%, but is there still room to chase the stock higher? That's the question that Jea Yu helps you answer in his analysis of ABNB stock.
Articles by Thomas Hughes
Our most popular articles give us an idea of subscriber sentiment. And it seems many MarketBeat subscribers are considering dividend stocks. This week, Thomas Hughes pointed investors to six Dividend Kings that offer some of the highest yields in this elite category of stocks.
Sticking with high-yield dividend stocks, Hughes analyzed three low-beta stocks offering high yields. Low-beta stocks tend to be less volatile, which may lead to muted gains in bull markets and less risk when the market moves to the downside.
And one market-moving earnings report came from Oracle Corporation (NYSE: ORCL). The stock moved sharply lower despite a solid earnings report. However, when investors are looking for something spectacular, solid wasn't enough. But Hughes notes the overreaction to an otherwise solid report could be a chance for opportunistic investors to cash in.
Articles by Sam Quirke
Apple, Inc. (NASDAQ: AAPL) is down 1.3% for the week and over 2% in the last month. The company's Launch Day did little to take the focus off concerns about slowing demand for the company's signature iPhones. Sam Quirke analyzed the situation and offered reasons why the dip in AAPL stock may be temporary.
Quirke also acknowledged why some investors may be reluctant to chase Tesla, Inc. (NASDAQ: TSLA) stock higher after its 200% increase in 2023. If you fit into that category, Quirke offers up two electric vehicle (EV) stocks that investors can still get at a discount.
Investors also know that inflation is taking a bite out of many restaurant stocks. However, there are exceptions in every sector. Investors may want to consider one of the three fast food stocks that stand out in the sector.
Articles by Kate Stalter
This week, Kate Stalter had one stock pick each for growth and income investors. On the growth side, Stalter analyzed Las Vegas Sands Corp. (NYSE: LVS). Analysts are bullish on the stock and give it an upside that's greater than 2023 darling Nvidia Corporation (NASDAQ; NVDA).
For income-oriented investors, Stalter offers up Shell plc (NYSE: SHEL) with its 4.12% dividend yield as an energy stock that offers investors plenty of upside at its current level. The company recently confirmed its commitment to increase shareholder value by announcing a dividend increase and a share buyback program.
Of course, there are two sides to the energy trade. This week, Stalter also helped investors understand how rising oil prices are affecting the airline industry. Several airlines lowered their earnings estimates this week, citing the effect of higher jet fuel prices.
Articles by Ryan Hasson
Is it 2023, 2021, or even 2018? Investors might be confused because Ryan Hasson was writing about meme stocks and cannabis stocks. WeWork Inc. (NYSE: WE) is not part of the original meme stock club. However, price volume this week had investors dreaming of a short squeeze akin to GameStop, Inc. (NYSE: GME) in 2021. However, Hasson explains why the conditions surrounding WE stock are different from the GME squeeze in 2021.
And it's not 2018, but cannabis stocks are showing signs of growth after what has been a multi-year winter for the sector. Recent legislative advances are providing optimism that the industry may be able to clear two regulatory hurdles that have been holding the sector back. If the sector is ready to grow, Hasson gives investors three cannabis stocks to consider.
Staying grounded in 2023, Hasson analyzed two aerospace and defense stocks, outperforming the sector and the broader market.
Articles by Gabriel Osorio-Mazilli
Investing in China in 2023 is tricky; some investors simply avoid China stocks altogether. But as Gabriel Osorio-Mazilli points out, that's not true of all investors, including Ray Dalio. Dalio's former firm, Bridgewater Associates, recently made significant purchases of several Chinese stocks.
Osorio-Mazilli was also writing extensively on the weakening housing market. Specifically, he analyzed some critical real estate investment trusts that should be on investors' radars. One stock Osorio-Mazilli highlighted was Realty Income, Inc. (NYSE: O), which has several catalysts and a compelling dividend yield.
He continued the theme by providing three additional REITs with intriguing portfolios that are likely to buck the current downward trend in the sector.
Articles by MarketBeat Staff
Exchange-traded funds (ETFs) can be great investments for many investors. But the largest of the ETFs, such as the SPDR S&P 500 ETF (SPY), the largest ETF in terms of assets under management (AUM), is showing negative reverse flows for the year that is keeping a lid on gains. The MarketBeat staff points out three low-cost ETFs that are outperforming the SPY.
The last quarter has been rough on retail stocks. The consumer continues to spend, but they are increasingly sticking to staples, and retail theft is a problem without an easy solution. Dollar stores have not been immune to the correction, but the problems are not limited to a specific country or category. With that in mind, our staff explains why Dollar General (NYSE: DG) is well-positioned to thrive when the economy does turn around.
And you may be headed to the movies this week. But as our staff reminds you, there's no reason to buy AMC Entertainment Holdings, Inc. (NYSE: AMC) stock. Don't tell that to the dedicated AMC shareholders. They keep buying the stock. However, as the MarketBeat staff writes, this looks increasingly like a horror movie with a scary ending.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Articles by Sam Quirke Apple, Inc. (NASDAQ: AAPL) is down 1.3% for the week and over 2% in the last month. Sam Quirke analyzed the situation and offered reasons why the dip in AAPL stock may be temporary. The consensus is that the Fed will hold interest rates steady, but investors will hang on any word or phrase that hints at a hike later this year.
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Articles by Sam Quirke Apple, Inc. (NASDAQ: AAPL) is down 1.3% for the week and over 2% in the last month. Sam Quirke analyzed the situation and offered reasons why the dip in AAPL stock may be temporary. Sticking with high-yield dividend stocks, Hughes analyzed three low-beta stocks offering high yields.
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Articles by Sam Quirke Apple, Inc. (NASDAQ: AAPL) is down 1.3% for the week and over 2% in the last month. Sam Quirke analyzed the situation and offered reasons why the dip in AAPL stock may be temporary. Articles by Kate Stalter This week, Kate Stalter had one stock pick each for growth and income investors.
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Articles by Sam Quirke Apple, Inc. (NASDAQ: AAPL) is down 1.3% for the week and over 2% in the last month. Sam Quirke analyzed the situation and offered reasons why the dip in AAPL stock may be temporary. And despite the latest data showing inflation is increasing oil prices, equities are holding steady in that range.
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2023-09-16 00:00:00 UTC
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1 Growth ETF That Could Make You a Stock Market Millionaire With Next to No Effort
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AAPL
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https://www.nasdaq.com/articles/1-growth-etf-that-could-make-you-a-stock-market-millionaire-with-next-to-no-effort
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Building wealth in the stock market isn't always easy, but the right investments can take you from $0 to $1 million over time.
Not all investments will be the right fit for all investors. But if you're looking for a low-maintenance option that can help you make a lot of money with little effort, a growth ETF could be a smart choice.
An ETF is a basket of securities bundled together into a single investment, and a growth ETF, specifically, includes stocks with the potential for above-average earnings.
While all growth ETFs have pros and cons, there's one that could help limit your risk while maximizing your returns: the Vanguard Growth ETF (NYSEMKT: VUG).
Why invest in the Vanguard Growth ETF?
The Vanguard Growth ETF contains 235 stocks from a mix of industries, though around half of the fund is made up of stocks in the tech sector.
One of the biggest advantages of this particular growth ETF is that it effectively balances risk and reward.
The fund's top 10 holdings make up around half of the entire composition, and these are blue chip stocks from behemoth corporations -- including Amazon, Apple, NVIDIA, Visa, and Alphabet. The other half of the fund, then, is comprised of dozens of smaller stocks with the potential for explosive growth.
This mix of blue chip and up-and-coming stocks means this investment has the potential for significant earnings while still remaining relatively stable. While all growth ETFs will carry more risk than their broad-market counterparts (such as an S&P 500 ETF), this one is safer than many of the other options.
Reaching $1 million or more
First, it's important to note that there are never any guarantees when investing, and this is especially true with growth ETFs. Although this fund is designed to beat the market, it may not always achieve that goal. And in the short term, it can be more volatile than some other ETFs.
That said, over the past 10 years, the Vanguard Growth ETF has earned an average annual return of just under 15% per year -- higher than the market's historic average of around 10% per year.
To play it safe, though, let's assume this investment only earns a 12% average annual return over the long haul. Here's what it would take to reach $1 million, depending on how many years you consistently invest:
NUMBER OF YEARS AMOUNT INVESTED PER MONTH TOTAL SAVINGS
20 $1,200 $1.038 million
25 $650 $1.040 million
30 $350 $1.014 million
35 $200 $1.036 million
40 $110 $1.013 million
Data source: Author's calculations via Investor.gov
The more time you have to let your money grow, the less you'll need to invest each month to reach $1 million or more. Get started early, and building long-term wealth will be almost effortless.
Two important downsides to consider
No investment is perfect, so it's also important to think about the potential disadvantages of this ETF before you buy.
For one, as with all ETFs, you cannot choose which stocks are included in the fund. When you buy one share of this ETF, you'll instantly own a stake in all 235 stocks within it. If there are certain companies you'd rather not buy (or if you simply want more control over your portfolio), investing in individual stocks may be a better approach.
Also, it may be a good idea to ensure you have a healthy mix of other investments in your portfolio in addition to this ETF. While this fund is lower-risk for a growth ETF, it's still heavily focused on stocks in the tech industry. Not only does that limit your diversification, but the tech sector tends to be especially volatile.
The right investment for you will depend on your goals, preferences, and risk tolerance. If you're looking for a hands-off investment and are willing to take on slightly more risk for the chance at earning above-average returns, the Vanguard Growth ETF could be a great fit for your portfolio.
10 stocks we like better than Vanguard Growth ETF
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 Vanguard Growth ETF 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
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. Katie Brockman has positions in Vanguard Growth ETF. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Nvidia, Vanguard Growth ETF, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fund's top 10 holdings make up around half of the entire composition, and these are blue chip stocks from behemoth corporations -- including Amazon, Apple, NVIDIA, Visa, and Alphabet. This mix of blue chip and up-and-coming stocks means this investment has the potential for significant earnings while still remaining relatively stable. If you're looking for a hands-off investment and are willing to take on slightly more risk for the chance at earning above-average returns, the Vanguard Growth ETF could be a great fit for your portfolio.
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The fund's top 10 holdings make up around half of the entire composition, and these are blue chip stocks from behemoth corporations -- including Amazon, Apple, NVIDIA, Visa, and Alphabet. That said, over the past 10 years, the Vanguard Growth ETF has earned an average annual return of just under 15% per year -- higher than the market's historic average of around 10% per year. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Nvidia, Vanguard Growth ETF, and Visa.
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An ETF is a basket of securities bundled together into a single investment, and a growth ETF, specifically, includes stocks with the potential for above-average earnings. While all growth ETFs have pros and cons, there's one that could help limit your risk while maximizing your returns: the Vanguard Growth ETF (NYSEMKT: VUG). The Vanguard Growth ETF contains 235 stocks from a mix of industries, though around half of the fund is made up of stocks in the tech sector.
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Why invest in the Vanguard Growth ETF? The Vanguard Growth ETF contains 235 stocks from a mix of industries, though around half of the fund is made up of stocks in the tech sector. If you're looking for a hands-off investment and are willing to take on slightly more risk for the chance at earning above-average returns, the Vanguard Growth ETF could be a great fit for your portfolio.
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13621.0
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2023-09-16 00:00:00 UTC
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The 3 Most Undervalued AI Stocks to Buy in September 2023
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https://www.nasdaq.com/articles/the-3-most-undervalued-ai-stocks-to-buy-in-september-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Although artificial intelligence has garnered tremendous interest for good reason, investors may want to focus more of their attention on undervalued AI stocks to buy. Don’t get me wrong – some of the hottest trades right now continue to impress, most noticeably Nvidia (NASDAQ:NVDA). However, these ideas are simply too hot to touch for most investors.
For those that are concerned about holding the bag should market sentiment suddenly go sour, the undervalued AI stocks make more sense. To be sure, no endeavor in the capital market operates without risk. Still, with the enterprises enjoying the machine learning spotlight carrying wildly aggressive multiples, it’s time to consider a discounted route. If that’s you, below are the less-appreciated but still power AI stocks to buy.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
While Qualcomm (NASDAQ:QCOM) hasn’t enjoyed the best outing this year – only gaining a bit more than 6% since the January opener – it’s worth putting on your radar for undervalued AI stocks to buy. No, it’s not just because of its poor chart performance. For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist.
Of course, it’s not clear how long such an arrangement will last. After all, Apple has long indicated that it wants to build its own modem chips for its flagship iPhone. Apparently, though, that’s easier said than done. Plus, even if Apple eventually separates from third-party suppliers, Qualcomm commands acumen that’s difficult to ignore. Plus, QCOM is one of the most attractively valued AI stocks. Right now, it trades at 12.41x forward earnings. In contrast, the sector median is 20.96x. Finally, analysts peg QCOM as a consensus moderate buy with a $135.82 price target, implying over 19% upside.
Teradyne (TER)
Source: Michael Vi / Shutterstock.com
An automatic test equipment designer and manufacturer, Teradyne (NASDAQ:TER) features many high-profile customers, including Qualcomm. While an important player in the broader tech ecosystem, Teradyne isn’t exactly a pure-play example of AI stocks to buy. However, it’s part of the semiconductor industry supply chain, which has benefitted from a post-pandemic demand surge.
Moving forward, Teradyne should play an increasingly important role in digital intelligence. As chip capacities increase, demand for various testing services and electronic equipment should rise. In addition, Teradyne sells robotic systems to customers in the manufacturing sector, according to Reuters.
On a financial basis, TER benefits from a stout balance sheet and excellent profit margins. Even with its superior bottom-line performance, TER trades at 16.44x forward earnings. Again, this rates much lower than the chip sector’s median 20.96x. Lastly, analysts peg TER as a moderate buy with a $119.15 price target, implying nearly 22% growth.
Baidu (BIDU)
Source: monticello / Shutterstock.com
A Chinese multinational technology firm, Baidu (NASDAQ:BIDU) is an interesting case because of the ongoing U.S.-China chip war. With tensions rising between the two biggest economies in the world, Baidu inherently presents risks. At the same time, acquiring AI stocks that trade at over 100x trailing earnings is another form of risk that many investors simply don’t want to take.
Fortunately, Baidu offers some enticing exposure for the adventurous. For example, another Reuters report noted that more than 70 large AI language models with over 1 billion parameters have been release in China. What’s more, Baidu is one of several Chinese companies that have launched AI chatbots recently following regulatory approval for mass market releases.
What makes BIDU stand out is its value proposition. Right now, the market prices shares at a forward earnings multiple of 13.88x. This compares favorably to the interactive media industry’s median value of 18.04x.
In closing, analysts peg BIDU as a consensus strong buy with a $185.07 price target, implying 35% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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The post The 3 Most Undervalued AI Stocks to Buy in September 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. Finally, analysts peg QCOM as a consensus moderate buy with a $135.82 price target, implying over 19% upside. Teradyne (TER) Source: Michael Vi / Shutterstock.com An automatic test equipment designer and manufacturer, Teradyne (NASDAQ:TER) features many high-profile customers, including Qualcomm.
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For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Although artificial intelligence has garnered tremendous interest for good reason, investors may want to focus more of their attention on undervalued AI stocks to buy. Qualcomm (QCOM) Source: Akshdeep Kaur Raked / Shutterstock.com While Qualcomm (NASDAQ:QCOM) hasn’t enjoyed the best outing this year – only gaining a bit more than 6% since the January opener – it’s worth putting on your radar for undervalued AI stocks to buy.
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For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. As chip capacities increase, demand for various testing services and electronic equipment should rise. Baidu (BIDU) Source: monticello / Shutterstock.com A Chinese multinational technology firm, Baidu (NASDAQ:BIDU) is an interesting case because of the ongoing U.S.-China chip war.
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13622.0
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2023-09-16 00:00:00 UTC
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3 Things About Apple That Smart Investors Know
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https://www.nasdaq.com/articles/3-things-about-apple-that-smart-investors-know-9
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Apple (NASDAQ: AAPL) held its annual September event this week, unveiling the iPhone 15, the next generation of Apple Watch Ultra, and an update to AirPods Pro. The company's shares slipped roughly 2% in the hours after the presentation, a common occurrence on the day following the yearly event.
The day's biggest news was the long-anticipated switch in iPhone charging ports from Lightning to USB-C. The company was forced to make the change by European regulators as it will reduce waste, allowing consumers to use fewer cables. While there weren't many other earth-shattering product updates, small changes in software throughout Apple's lineup could suggest bigger things to come.
The company is gradually adding artificial intelligence (AI) tools to its devices and introducing features that call attention to its coming virtual/augmented reality (VR/AR) headset, the Vision Pro. Apple is a company on a growth path, so here are three things smart investors know about its dominating business.
1. Apple is gradually upgrading its products with AI
A Bloomberg report in July revealed Apple had built a custom framework for developing AI models and produced its own version of OpenAI's ChatGPT, which engineers call Apple GPT. Then, last month, the company's third quarter of 2023 earnings report showed its research and development spending had hit close to $23 billion, an increase of about $3 billion from the year before. CEO Tim Cook disclosed in an interview with Reuters that the jump was mainly driven by increased research on generative AI technologies.
While companies like Microsoft and Amazon have been quick to share their ventures into AI, Apple has been quieter on the subject. Rather than speaking directly about the technology, it is slowly introducing AI-enabled features to its devices. And with leading market shares in several product categories, Apple could easily become the biggest growth driver of the public's adoption of AI.
The company's September event saw it using AI to improve several features of its devices, building on AI upgrades it introduced earlier this year. Apple's virtual assistant Siri is now 25% more accurate with the help of AI. Meanwhile, Apple Watch wearers will soon be able to use a simple finger tap to answer calls, pause music, or launch information like weather. AI is helping Apple enhance usability in its products, which could boost sales over the long term and steal market share from the competition.
2. It's using the iPhone to bring attention to the Vision Pro
Apple's first-ever VR/AR headset, the Vision Pro, is on track for release in 2024. With the new device, the company is entering a market worth roughly $17 billion, expected to develop at a compound annual growth rate of 45% through 2029. Apple's past success of entering new industries and quickly rising to a position of dominance bodes well for its potential in the VR/AR market.
However, the Vision Pro's launch price of $3,499 will lock out most consumers, with this iteration of the device reserved for enthusiasts and early adopters. Future generations of the headset will likely reduce the cost and make the technology more accessible to consumers. As a result, it's promising to see the company laying the groundwork for attracting shoppers to VR/AR.
The company's September event revealed a new feature that will allow the iPhone 15 to work together with the Vision Pro to provide a unique experience to users. The new iPhone will be able to film spatial video, which can be watched directly on the Vision Pro. The feature will be akin to filming a day at the beach with your family and being able to feel like you're in the memory rather than watching from afar.
This is a small step, but it shows Apple strategically using its most popular product to call attention to the coming headset. More collaboration between devices could be a useful tool in building the Vision Pro's user base.
3. It's trading at one of its lowest prices in months
Apple's stock has tumbled 5% since June, hitting one of its lowest price points in three months. Dismal Q3 2023 earnings triggered the small sell-off, with revenue declines in three of its product categories. Macroeconomic headwinds have caught up with the company and could affect sales for the rest of the year.
However, Apple's stock slump is an excellent time to make a long-term investment in the company. As its share price has fallen, its value has climbed. The chart below shows Apple's price-to-earnings ratio (P/E) is one of the lowest among the "big five" of tech.
Data by YCharts
The figures above indicate Apple's stock offers more value than Amazon, Meta Platforms, or Microsoft, with only Alphabet offering a slightly better P/E.
Poor economic conditions won't last forever, with the company's developing positions in AI and VR/AR strengthening its long-term prospects. Alongside a recent stock dip, Apple is a screaming buy this month for anyone looking for a long-term growth stock.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of 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. 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, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) held its annual September event this week, unveiling the iPhone 15, the next generation of Apple Watch Ultra, and an update to AirPods Pro. The company is gradually adding artificial intelligence (AI) tools to its devices and introducing features that call attention to its coming virtual/augmented reality (VR/AR) headset, the Vision Pro. AI is helping Apple enhance usability in its products, which could boost sales over the long term and steal market share from the competition.
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Apple (NASDAQ: AAPL) held its annual September event this week, unveiling the iPhone 15, the next generation of Apple Watch Ultra, and an update to AirPods Pro. The company is gradually adding artificial intelligence (AI) tools to its devices and introducing features that call attention to its coming virtual/augmented reality (VR/AR) headset, the Vision Pro. Data by YCharts The figures above indicate Apple's stock offers more value than Amazon, Meta Platforms, or Microsoft, with only Alphabet offering a slightly better P/E.
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Apple (NASDAQ: AAPL) held its annual September event this week, unveiling the iPhone 15, the next generation of Apple Watch Ultra, and an update to AirPods Pro. Apple is gradually upgrading its products with AI A Bloomberg report in July revealed Apple had built a custom framework for developing AI models and produced its own version of OpenAI's ChatGPT, which engineers call Apple GPT. 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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Apple (NASDAQ: AAPL) held its annual September event this week, unveiling the iPhone 15, the next generation of Apple Watch Ultra, and an update to AirPods Pro. The new iPhone will be able to film spatial video, which can be watched directly on the Vision Pro. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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2023-09-16 00:00:00 UTC
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The Next Apple? 3 Tech Stocks That Can Hand You 10X Returns
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https://www.nasdaq.com/articles/the-next-apple-3-tech-stocks-that-can-hand-you-10x-returns
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) represents the pinnacle of success for tech stocks with its revolutionary products and multi-trillion-dollar market cap. While the odds of another nascent tech company reaching those lofty heights are slim, plenty possess the potential to generate substantial returns.
Many of today’s market-leading tech stocks were once small, speculative companies themselves. Had you invested $10,000 in Amazon’s (NASDAQ:AMZN) 1997 IPO, it would be worth over $14 million today. Of course, unearthing 1,000%+ returns in the volatile tech sector requires patience and ignoring short-term volatility.
Admittedly, accurately predicting which tech stocks will become the next Apple or Amazon is impossible. The tech sector sees endless disruption, with today’s high-flyers often usurped by upstarts. Instead, we’ll identify innovators with large addressable markets and favorable competitive positions to raise the odds of multibagger returns.
With that in mind, here are three such tech stocks that could conceivably hand you Apple-like returns down the road.
Turtle Beach (HEAR)
Source: Merla / Shutterstock.com
Gaming headset maker Turtle Beach (NASDAQ:HEAR) offers substantial upside potential for investors seeking emerging trends in tech stocks. This $180 million tech company dominates the console gaming headphones niche, commanding over 40% market share on the latest generation consoles.
While Turtle Beach currently relies heavily on its core console headset tech segment, the company has ample avenues to drive growth in the years ahead, as gaming continues growing into a $62 billion market by 2032. The industry as a whole is expected to be worth $665 billion by 2030.
I admit that headphones are a small portion of that. Still, the company is expanding its tech offerings and moving into adjacent gaming accessories categories like keyboards, mice, and controllers, to become a broader provider. These massive accessory tech markets are several times larger than gaming headsets. Turtle Beach has already grabbed over 20% share in some of these segments.
Turtle Beach’s recent tech forays into gaming simulation controllers and maintenance services further leverage its gaming DNA. As gaming becomes more immersive and complex, substantial cross-selling tech opportunities are arising.
Even though it missed its earnings expectations recently, I remain optimistic on this stock. Turtle Beach is expected to deliver double-digit revenue growth this year and for the foreseeable future, and it is also likely to turn profitable next year. Trading at just 0.66-times sales, HEAR stock trades at a substantial discount to tech peers, giving it room to run as the company executes on becoming a global gaming tech accessory powerhouse.
Synaptics (SYNA)
Source: Shutterstock
Though Synaptics (NASDAQ:SYNA) slid into the red with the recent tech downturn, substantial upside potential awaits as the company returns to growth.
Synaptics provides the touch, display, and wireless chips that enable intuitive interaction with today’s sleek tech gadgets. The company counts Apple, Samsung, Tesla (NASDAQ:TSLA), and other giants as customers across mobile, PC, auto, IoT, and smart home tech categories.
While analysts expect the company to shrink in 2023 (company fiscal 2024) due to the tech inventory correction, Synaptics is expected to bounce back strongly in 2025. I’d also note that it outperformed Wall Street expectations by a fair margin in its latest quarterly report. Analysts now project 23.5% revenue growth next year, driving its earnings per share above $7 compared to an estimated $3 this year.
Synaptics continues seeing robust tech design win momentum, particularly in automotive displays. The company’s human presence detection and wireless connectivity tech chips also drive future growth. Sure, it does look a little pricey right now, but if we consider 2024 earnings, the forward price-earnings ratio on this stock drops to just 12.2-times. SYNA stock appears significantly undervalued, with that in mind.
Xiaomi (XIACY)
Source: zhu difeng / ShutterStock.com
Chinese electronics giant Xiaomi (OTCMKTS:XIACY) offers compelling value if you’re looking for more contrarian tech stocks. While this tech giant has faced economic and geopolitical headwinds, its long-term opportunity remains very attractive. Xiaomi operates a hardware, software, and services tech ecosystem focused on consumer electronics and smart home products. The company currently services nearly 600 million active users, but this fact is rarely mentioned due to its focus on developing markets.
Indeed, Xiaomi’s expansion in Western markets faces obstacles, but the company continues firing on all cylinders within China and other developing markets as a tech leader. Xiaomi grew smartphone shipments by 8.3% last quarter, gaining a substantial share in Europe and the Middle East. Profitability also improved substantially amid better cost controls.
Trading at only 1-times forward sales, and with double-digit revenue growth expected for the next two years, XIACY stock appears significantly undervalued. That said, I’m putting this at the bottom of the list due to geopolitical conditions. But for those with the willingness to accept this risk, this is a stock with big upside potential worth considering.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
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The post The Next Apple? 3 Tech Stocks That Can Hand You 10X Returns appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) represents the pinnacle of success for tech stocks with its revolutionary products and multi-trillion-dollar market cap. While Turtle Beach currently relies heavily on its core console headset tech segment, the company has ample avenues to drive growth in the years ahead, as gaming continues growing into a $62 billion market by 2032. The company counts Apple, Samsung, Tesla (NASDAQ:TSLA), and other giants as customers across mobile, PC, auto, IoT, and smart home tech categories.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) represents the pinnacle of success for tech stocks with its revolutionary products and multi-trillion-dollar market cap. Turtle Beach (HEAR) Source: Merla / Shutterstock.com Gaming headset maker Turtle Beach (NASDAQ:HEAR) offers substantial upside potential for investors seeking emerging trends in tech stocks. This $180 million tech company dominates the console gaming headphones niche, commanding over 40% market share on the latest generation consoles.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) represents the pinnacle of success for tech stocks with its revolutionary products and multi-trillion-dollar market cap. Turtle Beach (HEAR) Source: Merla / Shutterstock.com Gaming headset maker Turtle Beach (NASDAQ:HEAR) offers substantial upside potential for investors seeking emerging trends in tech stocks. Trading at just 0.66-times sales, HEAR stock trades at a substantial discount to tech peers, giving it room to run as the company executes on becoming a global gaming tech accessory powerhouse.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) represents the pinnacle of success for tech stocks with its revolutionary products and multi-trillion-dollar market cap. Turtle Beach (HEAR) Source: Merla / Shutterstock.com Gaming headset maker Turtle Beach (NASDAQ:HEAR) offers substantial upside potential for investors seeking emerging trends in tech stocks. While Turtle Beach currently relies heavily on its core console headset tech segment, the company has ample avenues to drive growth in the years ahead, as gaming continues growing into a $62 billion market by 2032.
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13624.0
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2023-09-16 00:00:00 UTC
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5 Reasons Apple's New Phone Moves the Needle: 5 That It Won't
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AAPL
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https://www.nasdaq.com/articles/5-reasons-apples-new-phone-moves-the-needle%3A-5-that-it-wont
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Apple's (NASDAQ: AAPL) iPhone 15 event has come and passed, leaving the market with several updates to ponder. The event included updates to the iPhone, the Watch, Airbuds, and other Apple products and should help drive the next upgrade cycle. The question is if the coming cycle will be enough to move the needle and drive the stock to a new high. As good as the event was, there are reasons to believe the stock will head lower before it moves higher again.
Apple Looks to Emerging Markets for Growth
Among the many updates to the iPhone 15 is an increase in prices for critical markets. The iPhone 15 price will remain the same as the iPhone 14 price for U.S. customers, but those in China, Japan, and India face price hikes. The two critical focus areas are China and India, which account for the lion's share of emerging market GDP and growth. For most models, prices for base versions are the same as last year, but customers will pay higher prices for memory upgrades and the most-premium phones, such as the iPhone 15 Pro Max.
This shift is notable given the outlook for emerging market growth over the next few years. Emerging markets are expected to double the GDP of their developed counterparts at least, and nations like India will more than double by 2030. India is driven by a rapidly improving consumer outlook and a growing number of high-end shoppers.
Meanwhile, US markets are expected to grow, but there is an increasing risk of inflation and FOMC interest rate hikes to pressure consumers.
Apple Updates the iPhone to USB-C Charging
The update with the most positive response is the update to USB-C charging. The update ends Apple's long run with the Lightning cable and provides universal charging across Apple devices. Now, there is no more keeping track of numerous cables and various charging cubes; all can be charged with a single cable. It sounds like a good move and could help drive the upgrade cycle, but there is a downside. Apple was already moving in that direction because of an EU mandate setting USB-C as a standard for 2024; the takeaway is that this good news was expected and already priced into the market.
Apple's New Chip Not Focused on AI Applications
Apple's chips and products include multiple forms of AI, and there are enhancements to their newest chip, but there is a catch. The GPUs in the new iPhone are focused on gaming rather than AI applications, which is a telling indicator of where the technology stands. When AI applications become the focus of Apple chips, it will be a sign the next wave of AI is upon us.
Until then, games sell iPhones in this regard and will continue to support the market. Apple's primary play on AI is the Neural Engine. It is a machine-learning, energy-efficient component of Apple's chips. The Neural Engine is based on the transformer model aiding iPhone functions.
The Analysts Yawn, Nothing to See Here Folks
The analysts were not impressed enough with Apple's new lineup to take the time and revise their targets. The single analyst update to show up on Marketbeat's tracking tools is a reiterated Neutral rating with a price target aligned with the all-time high. The trend in sentiment is just as neutral and includes several lowered price targets and a few downgrades over the past 3 months.
The consensus price also aligns with the all-time high and has stopped trending higher. Consensus has been flat over the last month and may not move higher without a solid earnings report for Q3. As it is, the analysts expect revenue to be flat compared to the previous year and for modest margin expansion.
Apple Price Action is Topping
The charts are among the more telling signs the iPhone 15 event will not move the needle for shareholders now. The market for Apple stock hit a top in July and then confirmed resistance at a lower level in August that is still in play. The iPhone 15 event did not catalyze a rally and left the market lower at the end of the day. This market is on the brink of moving below the 150-day EMA, which could result in another 10% to 15% decline.
The views and 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) iPhone 15 event has come and passed, leaving the market with several updates to ponder. Apple was already moving in that direction because of an EU mandate setting USB-C as a standard for 2024; the takeaway is that this good news was expected and already priced into the market. The single analyst update to show up on Marketbeat's tracking tools is a reiterated Neutral rating with a price target aligned with the all-time high.
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Apple's (NASDAQ: AAPL) iPhone 15 event has come and passed, leaving the market with several updates to ponder. Apple Looks to Emerging Markets for Growth Among the many updates to the iPhone 15 is an increase in prices for critical markets. Apple's New Chip Not Focused on AI Applications Apple's chips and products include multiple forms of AI, and there are enhancements to their newest chip, but there is a catch.
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Apple's (NASDAQ: AAPL) iPhone 15 event has come and passed, leaving the market with several updates to ponder. Apple Looks to Emerging Markets for Growth Among the many updates to the iPhone 15 is an increase in prices for critical markets. The iPhone 15 price will remain the same as the iPhone 14 price for U.S. customers, but those in China, Japan, and India face price hikes.
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Apple's (NASDAQ: AAPL) iPhone 15 event has come and passed, leaving the market with several updates to ponder. As good as the event was, there are reasons to believe the stock will head lower before it moves higher again. Apple Looks to Emerging Markets for Growth Among the many updates to the iPhone 15 is an increase in prices for critical markets.
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13625.0
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2023-09-15 00:00:00 UTC
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Apple delays high-end iPhone 15 models in China in sign of strong orders
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https://www.nasdaq.com/articles/apple-delays-high-end-iphone-15-models-in-china-in-sign-of-strong-orders
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By Brenda Goh
Sept 15 (Reuters) - Buyers of Apple's new iPhone 15 Pro Max in China will need to wait for 4-5 weeks before receiving the smartphone, the company's website showed on Friday as it started taking pre-orders in an early sign of strong demand.
The wait is slightly shorter for iPhone 15 Pro at 2-3 weeks, while the company said it could deliver iPhone 15 by Sept. 22, the day the phone goes on sale in stores.
For the iPhone 15 Plus, the wait in China is 8 working days.
Meanwhile, more than 3.4 million reservations were placed on JD.com in total for the four models in the run-up to the e-commerce platform opening orders on Friday evening.
Ivan Lam, senior analyst at Counterpoint, said it was reasonable to expect such volumes on JD.com, one of Apple's biggest sale channels in China.
"Since the decline of Huawei, the iPhone has been able to attract a massive number of consumers in the more than $600 segment. The new iPhone 15 series, especially the Pro series, will be a good choice for the installed base who are using iPhone 11/12 and looking for an update replacement," he said.
"However, there's no doubt that the new Mate 60 series will be a challenge to the iPhone this year."
How the iPhone 15 series will fare in China, its third largest market, is being closely watched after former rival Huawei Technologies HWT.UL launched a new smartphone with an advanced chip late last month.
Huawei's Mate 60 series could mark a comeback for the Chinese tech firm, which was once the world's biggest smartphone maker before its business was decimated by U.S. export controls, analysts said.
State media reported this week that better-than-expected sales had prompted Huawei to raise its second-half shipment target for its Mate 60 series smartphone by 20% and its forecast for overall new smartphone shipments in 2023 to at least 40 million units.
Huawei's Mate 60 launch was unusual in that Huawei did not carry out any pre-marketing or organise a glitzy event. The company is set to hold an event on Sept. 25, where it is expected to discuss its new smartphone.
(Reporting by Brenda Goh in Shanghai and Yuvraj Malik in Bengaluru; Editing by Arun Koyyur)
((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 Brenda Goh Sept 15 (Reuters) - Buyers of Apple's new iPhone 15 Pro Max in China will need to wait for 4-5 weeks before receiving the smartphone, the company's website showed on Friday as it started taking pre-orders in an early sign of strong demand. How the iPhone 15 series will fare in China, its third largest market, is being closely watched after former rival Huawei Technologies HWT.UL launched a new smartphone with an advanced chip late last month. Huawei's Mate 60 series could mark a comeback for the Chinese tech firm, which was once the world's biggest smartphone maker before its business was decimated by U.S. export controls, analysts said.
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By Brenda Goh Sept 15 (Reuters) - Buyers of Apple's new iPhone 15 Pro Max in China will need to wait for 4-5 weeks before receiving the smartphone, the company's website showed on Friday as it started taking pre-orders in an early sign of strong demand. Huawei's Mate 60 series could mark a comeback for the Chinese tech firm, which was once the world's biggest smartphone maker before its business was decimated by U.S. export controls, analysts said. Huawei's Mate 60 launch was unusual in that Huawei did not carry out any pre-marketing or organise a glitzy event.
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By Brenda Goh Sept 15 (Reuters) - Buyers of Apple's new iPhone 15 Pro Max in China will need to wait for 4-5 weeks before receiving the smartphone, the company's website showed on Friday as it started taking pre-orders in an early sign of strong demand. How the iPhone 15 series will fare in China, its third largest market, is being closely watched after former rival Huawei Technologies HWT.UL launched a new smartphone with an advanced chip late last month. State media reported this week that better-than-expected sales had prompted Huawei to raise its second-half shipment target for its Mate 60 series smartphone by 20% and its forecast for overall new smartphone shipments in 2023 to at least 40 million units.
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By Brenda Goh Sept 15 (Reuters) - Buyers of Apple's new iPhone 15 Pro Max in China will need to wait for 4-5 weeks before receiving the smartphone, the company's website showed on Friday as it started taking pre-orders in an early sign of strong demand. The wait is slightly shorter for iPhone 15 Pro at 2-3 weeks, while the company said it could deliver iPhone 15 by Sept. 22, the day the phone goes on sale in stores. Huawei's Mate 60 launch was unusual in that Huawei did not carry out any pre-marketing or organise a glitzy event.
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13626.0
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2023-09-15 00:00:00 UTC
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Should Schwab Fundamental U.S. Large Company Index ETF (FNDX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-fundamental-u.s.-large-company-index-etf-fndx-be-on-your-investing-radar-10
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a passively managed exchange traded fund launched on 08/13/2013.
The fund is sponsored by Charles Schwab. It has amassed assets over $11.98 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.90%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 18.50% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.77% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB).
The top 10 holdings account for about 20.85% of total assets under management.
Performance and Risk
FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses. The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
The ETF has gained about 10.75% so far this year and is up about 13.15% in the last one year (as of 09/15/2023). In the past 52-week period, it has traded between $47.76 and $59.78.
The ETF has a beta of 1.01 and standard deviation of 16.96% for the trailing three-year period, making it a medium risk choice in the space. With about 733 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FNDX is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.97 billion in assets, Vanguard Value ETF has $102.27 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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.
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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 Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.77% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $11.98 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.77% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a passively managed exchange traded fund launched on 08/13/2013.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.77% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Alternatives Schwab Fundamental U.S. Large Company Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.77% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a passively managed exchange traded fund launched on 08/13/2013.
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13627.0
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2023-09-15 00:00:00 UTC
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Should You Invest in the First Trust NASDAQ-100-Technology Sector ETF (QTEC)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-first-trust-nasdaq-100-technology-sector-etf-qtec-2
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nan
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Launched on 04/19/2006, the First Trust NASDAQ-100-Technology Sector ETF (QTEC) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
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.
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 8, placing it in top 50%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $2.83 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. QTEC seeks to match the performance of the NASDAQ-100 Technology Sector Index before fees and expenses.
The NASDAQ-100 Technology Sector Index is an equal-weighted index based on the securities of the NASDAQ-100 Index that are classified as technology.
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 0.57%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.20%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 90.90% of the portfolio.
Looking at individual holdings, Meta Platforms Inc. (class A) (META) accounts for about 2.86% of total assets, followed by Palo Alto Networks, Inc. (PANW) and Apple Inc. (AAPL).
The top 10 holdings account for about 28.16% of total assets under management.
Performance and Risk
Year-to-date, the First Trust NASDAQ-100-Technology Sector ETF has added roughly 44.67% so far, and was up about 30.03% over the last 12 months (as of 09/15/2023). QTEC has traded between $98.17 and $157.31 in this past 52-week period.
The ETF has a beta of 1.17 and standard deviation of 31.07% for the trailing three-year period, making it a high risk choice in the space. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust NASDAQ-100-Technology Sector 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, QTEC 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.
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 $50.14 billion in assets, Vanguard Information Technology ETF has $52.38 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Meta Platforms Inc. (class A) (META) accounts for about 2.86% of total assets, followed by Palo Alto Networks, Inc. (PANW) and Apple Inc. (AAPL). Click to get this free report First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report 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 First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at individual holdings, Meta Platforms Inc. (class A) (META) accounts for about 2.86% of total assets, followed by Palo Alto Networks, Inc. (PANW) and Apple Inc. (AAPL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Click to get this free report First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at individual holdings, Meta Platforms Inc. (class A) (META) accounts for about 2.86% of total assets, followed by Palo Alto Networks, Inc. (PANW) and Apple Inc. (AAPL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Meta Platforms Inc. (class A) (META) accounts for about 2.86% of total assets, followed by Palo Alto Networks, Inc. (PANW) and Apple Inc. (AAPL). Click to get this free report First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Launched on 04/19/2006, the First Trust NASDAQ-100-Technology Sector ETF (QTEC) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
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13628.0
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2023-09-15 00:00:00 UTC
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1 Stock-Split AI Growth Stock With More Upside Than Apple or Tesla to Buy Now, According to Wall Street
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AAPL
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https://www.nasdaq.com/articles/1-stock-split-ai-growth-stock-with-more-upside-than-apple-or-tesla-to-buy-now-according-to
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Stocks splits have no direct impact on a business aside from reducing its share price, but they can still be a useful indicator for investors. Stock splits are only necessary following substantial and lasting share price appreciation, which itself tends to correlate with strong financial results.
Several companies that have split their stocks recently have also outperformed the broader S&P 500 (SNPINDEX: ^GSPC) over the last five years, including:
Apple (NASDAQ: AAPL): 4-for-1 split in August 2020
Nvidia (NASDAQ: NVDA): 4-for-1 split July 2021
Tesla (NASDAQ: TSLA): 3-for-1 split in August 2022
Wall Street sees Nvidia as the best buy of the bunch. Apple's median 12-month price target of $202 per share implies 15% upside from its current price, and Tesla's median 12-month price target of $275.10 per share implies just 3% upside. But Nvidia's median 12-month price target of $622.50 per share implies 39% upside from its current price.
Here's what investors should know about this artificial intelligence stock.
Nvidia is the gold standard in AI infrastructure
The Nvidia brand is synonymous with accelerated computing. Its invention of the graphics processing unit (GPU) in 1999 initially brought cutting-edge visuals to the PC gaming market, but its chips have since become integral to data center infrastructure because they offer the throughput required by complex workloads like artificial intelligence (AI) and graphics applications.
Nvidia systems are the gold standard in both cases. The company holds more than 90% market share in supercomputer accelerators and workstation graphics. It also holds 95% market share in machine learning processors, and its compute platforms have consistently achieved top results at the MLPerf benchmarks, standardized tests that compare the performance of AI products from different vendors.
In 2019, Nvidia extended its data center footprint by branching into high-performance networking with its acquisition of Mellanox. Nvidia has since supercharged the acquired intellectual property with its own chips, and that portion of its business has grown sevenfold in the last three years. Investors can expect that momentum to continue. Nvidia's InfiniBand networking platform is tailormade for AI.
More recently, Nvidia has taken additional steps to cement its AI leadership by branching into subscription software and cloud services. For instance, DGX Cloud allows businesses to provision supercomputing infrastructure, software, and frameworks needed to build AI applications across a range of disciplines, from recommender systems in retail to autonomous robots in manufacturing.
Nvidia is also leaning into generative AI with NeMo and Picasso, cloud services that provide access to pretrained models that can be customized with company-specific data. NeMo supports language-based generative AI applications and Picasso supports image- and video-based generative AI applications. Both are available through DGX Cloud.
Nvidia is growing like wildfire amid strong demand for AI products
Nvidia reported phenomenal financial results in the second quarter. Revenue soared 101% to $13.5 billion on record data center sales, and non-GAAP earnings skyrocketed 429% to $2.70 per diluted share. CFO Colette Kress attributed the strong results to "tremendous demand for Nvidia accelerated computing and AI platforms" and CEO Jensen Huang mentioned generative AI specifically.
Management expects those tailwinds to intensify in the near term. Third-quarter guidance implies a sequential acceleration in revenue growth to 170%, and it calls for an 18-percentage-point expansion in gross profit margin that points to even faster earnings growth.
Yet Nvidia has hardly dented what management says is a $1 trillion opportunity across enterprise software, data center infrastructure, automotive computing, and gaming graphics. So the company is well positioned to maintain its momentum into the future.
Nvidia stock looks expensive
Nvidia is a wonderful business with a durable competitive advantage and strong growth prospects, but investors should carefully consider valuation. The stock currently trades at 34.1 times sales, a premium to its three-year average of 22.9 times sales. That metric is not as unreasonable as its recent high of 45.8 times sales, but it is still quite pricey.
Wall Street may see 39% upside in the next 12 months, but there is no guarantee those returns will materialize. With that in mind, investors that buy Nvidia stock today should be prepared for volatility in the future -- and, more importantly, they should start with a very small position.
10 stocks we like better than Nvidia
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 Nvidia 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
Trevor Jennewine has positions in Nvidia and Tesla. The Motley Fool has positions in and recommends Apple, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Several companies that have split their stocks recently have also outperformed the broader S&P 500 (SNPINDEX: ^GSPC) over the last five years, including: Apple (NASDAQ: AAPL): 4-for-1 split in August 2020 Nvidia (NASDAQ: NVDA): 4-for-1 split July 2021 Tesla (NASDAQ: TSLA): 3-for-1 split in August 2022 Wall Street sees Nvidia as the best buy of the bunch. It also holds 95% market share in machine learning processors, and its compute platforms have consistently achieved top results at the MLPerf benchmarks, standardized tests that compare the performance of AI products from different vendors. For instance, DGX Cloud allows businesses to provision supercomputing infrastructure, software, and frameworks needed to build AI applications across a range of disciplines, from recommender systems in retail to autonomous robots in manufacturing.
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Several companies that have split their stocks recently have also outperformed the broader S&P 500 (SNPINDEX: ^GSPC) over the last five years, including: Apple (NASDAQ: AAPL): 4-for-1 split in August 2020 Nvidia (NASDAQ: NVDA): 4-for-1 split July 2021 Tesla (NASDAQ: TSLA): 3-for-1 split in August 2022 Wall Street sees Nvidia as the best buy of the bunch. Apple's median 12-month price target of $202 per share implies 15% upside from its current price, and Tesla's median 12-month price target of $275.10 per share implies just 3% upside. NeMo supports language-based generative AI applications and Picasso supports image- and video-based generative AI applications.
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Several companies that have split their stocks recently have also outperformed the broader S&P 500 (SNPINDEX: ^GSPC) over the last five years, including: Apple (NASDAQ: AAPL): 4-for-1 split in August 2020 Nvidia (NASDAQ: NVDA): 4-for-1 split July 2021 Tesla (NASDAQ: TSLA): 3-for-1 split in August 2022 Wall Street sees Nvidia as the best buy of the bunch. Nvidia is the gold standard in AI infrastructure The Nvidia brand is synonymous with accelerated computing. Nvidia stock looks expensive Nvidia is a wonderful business with a durable competitive advantage and strong growth prospects, but investors should carefully consider valuation.
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Several companies that have split their stocks recently have also outperformed the broader S&P 500 (SNPINDEX: ^GSPC) over the last five years, including: Apple (NASDAQ: AAPL): 4-for-1 split in August 2020 Nvidia (NASDAQ: NVDA): 4-for-1 split July 2021 Tesla (NASDAQ: TSLA): 3-for-1 split in August 2022 Wall Street sees Nvidia as the best buy of the bunch. Here's what investors should know about this artificial intelligence stock. See the 10 stocks *Stock Advisor returns as of September 11, 2023 Trevor Jennewine has positions in Nvidia and Tesla.
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13629.0
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2023-09-15 00:00:00 UTC
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Dividend Yield: Why it Matters
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AAPL
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https://www.nasdaq.com/articles/dividend-yield%3A-why-it-matters
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Dividend yield is frequently the first metric you will use when considering buying one or more dividend stocks.
A common strategy for investors interested in maximizing the benefits of dividend stocks is to buy the dividend stocks that return the highest yield.
In many cases, dividends with a high yield equate to financially stable companies with the ability and willingness to increase their dividend over time. These companies typically have strong balance sheets that hold up in both good and bad financial conditions. That stability means the companies are more likely to maintain or increase their dividend over time. Companies that have increased their dividends the most are known as Dividend Aristocrats or Dividend Kings.
However, there are exceptions to this theory, which is why it’s important to understand the factors that go into a dividend yield. This article will review the significance of a stock’s dividend yield for investors.
What is Dividend Yield?
A dividend yield is an expression of a company’s dividend expressed as a percentage of its stock price. The formula for calculating dividend yield is:
Dividend yield = Current annual dividend (per share)/Current stock price
Let’s look at two examples:
Verizon Communications Inc. (NYSE: VZ) pays an annual dividend of $2.61 per share. If Verizon’s stock price is $35.48 on the day it declares its dividend (the declaration date) you could calculate the dividend yield would as follows:
2.61/35.48 = 0.07356 or 7.36%
Procter & Gamble Co. (NYSE: PG) pays an annual dividend of $3.76. The PG stock share price on the declaration date is $145.06. The dividend yield is:
3.76/145.06 = 0.0259 or 2.59%
Now, let's look at what that would mean if you bought $5,000 of each company's stock.
If you bought $5,000 of VZ stock at $35.48 per share, you would own 140.9 shares. Since Verizon pays its dividend quarterly, you would receive $0.6525 per share (2.61/4). Your payout would be:
140.9 x 0.6525 = 91.94
That means you would receive $91.94 as a cash payout or to reinvest in VZ stock.
Now let's look at Procter & Gamble. If you bought $5,000 of PG stock at $145.06, you would own 34.4 shares of PG stock. Procter & Gamble also pays its dividend quarterly, so you would receive 0.94 per share (3.76/4) for every share you owned. Your payout would be:
34.4 x 0.94 = 32.34
That means you would receive $32.34 as a cash payout or to reinvest in PG stock.
Benefits of Dividend Yield
Income-oriented investors choose dividend stocks because they are counting on the income they receive from dividends to supplement their retirement savings. Therefore, stocks with a higher yield become attractive because, for the same amount of money invested, these stocks increase the payout you receive.
If you don't need the income for immediate expenses, a major benefit of owning dividend stocks is the benefit of compounding. You receive this benefit by reinvesting your dividends into a dividend reinvestment plan (DRIP). Because dividends pay out on a regular schedule, usually quarterly, you'll continue to buy shares regularly.
This, in turn, allows you to buy more or fractional shares, which increases the size of your next payout. Over time this is a proven way to build wealth over time.
What is a Good Dividend Yield?
What constitutes a good dividend yield will depend on many factors. However, many analysts suggest that a good dividend yield is a yield that is higher than a corresponding index.
For example, as of March 31, 2023, the average dividend yield of stocks included in the S&P 500 Index was 1.66%. However, historically, the index has had an average yield between 3% and 5%, so any stock with a dividend yield within that range is said to be a high-yielding dividend stock.
How to Evaluate Dividend Yield
Because dividend yield is based on the company’s current stock price, it will change daily and even several times throughout a trading session. This makes it an imperfect standalone metric for evaluating dividend stocks.
Therefore, investors need other ways to evaluate if a company’s dividend yield is a green light or a caution signal. Here are some factors to consider when evaluating a dividend yield.
Consider the Yield to Other Stocks in the Company’s Sector
When many investors think about dividend stocks, they may think about the blue-chip stocks their grandparents or parents owned. These companies, such as The Coca-Cola Company (NYSE: KO), grow consistently over time. Still, the real benefit to owning these stocks is the ability to collect a regular dividend over time. That’s one reason Warren Buffett likes KO stock.
However, Mr. Buffett also has an affinity for Apple Inc. (NASDAQ: AAPL). The tech giant is the definition of a growth stock consistently using its profits to branch into new areas. However, it also generates so much cash that it does manage to pay a small dividend.
Is the Dividend Sustainable?
Many dividend investors have suffered hefty losses after falling into a yield trap, which occurs when the company has an appealing dividend yield not supported with a strong balance sheet. That’s why investors must perform some basic fundamental analysis to understand how healthy a company is.
Are they growing earnings? Do they carry too much debt? Some companies can get away with borrowing money to pay a dividend. But over time, that’s not a sustainable strategy.
Look at the Company’s Dividend Payout Ratio
Next to dividend yield, a company’s dividend payout ratio (DPR) is probably the second most important metric to consider. The DPR measures how much profit a company uses to pay its dividend measured as a percentage. Any number above 60% is generally considered unsustainable, but that is sector and company-specific. For example, real estate investment trusts (REITs) and master limited partnerships (MLPs) must pay at least 90% of their profits through dividends.
Look For a History of Increasing Dividends
The best dividend stocks are companies with a proven history of increasing their dividends over time. The best of the best are considered dividend aristocrats and dividend kings. These companies have increased their dividends for at least 25 and 50 consecutive years, respectively. While past increases do not guarantee future increases, companies that commit dividend increases will tend to prioritize the dividend because they know that investors see it as a compelling reason to own the stock.
Dividend Yield isn’t Perfect, but it’s a Good Start
One of the many benefits of dividend investing is the annual dividend yield, typically paid out quarterly. For income-oriented investors, reliable and predictable regular income from dividends can make a difference in the quality of life in their retirement.
The dividend yield formula is: Dividend yield = Current annual dividend (per share)/Current stock price
So, a company that pays a total annual dividend of 80 cents per share with a stock price of $20 will have a dividend yield of 4%. Although there is no perfect answer to "What is considered an acceptable dividend yield?" most investors consider a 3%-4% annual dividend yield a good target, particularly if they plan to reinvest their dividends.
A limitation of using the dividend yield as a metric for investors is that it can misrepresent a company's financial health based on its stock price. For example, a company with increased revenue and earnings per share that falls short of analysts’ recommendations may see its stock price —and therefore its dividend yield — decline even though they are operating a healthy business. Conversely, there are times when a company may proactively announce a reduction in its dividend to take care of some pressing financial issues. However, if analysts perceive this action as one that can help the company's long-term health, they may increase its stock price.
The views and 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, Mr. Buffett also has an affinity for Apple Inc. (NASDAQ: AAPL). For example, real estate investment trusts (REITs) and master limited partnerships (MLPs) must pay at least 90% of their profits through dividends. A limitation of using the dividend yield as a metric for investors is that it can misrepresent a company's financial health based on its stock price.
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However, Mr. Buffett also has an affinity for Apple Inc. (NASDAQ: AAPL). The formula for calculating dividend yield is: Dividend yield = Current annual dividend (per share)/Current stock price Let’s look at two examples: Verizon Communications Inc. (NYSE: VZ) pays an annual dividend of $2.61 per share. Look at the Company’s Dividend Payout Ratio Next to dividend yield, a company’s dividend payout ratio (DPR) is probably the second most important metric to consider.
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However, Mr. Buffett also has an affinity for Apple Inc. (NASDAQ: AAPL). The formula for calculating dividend yield is: Dividend yield = Current annual dividend (per share)/Current stock price Let’s look at two examples: Verizon Communications Inc. (NYSE: VZ) pays an annual dividend of $2.61 per share. Look For a History of Increasing Dividends The best dividend stocks are companies with a proven history of increasing their dividends over time.
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However, Mr. Buffett also has an affinity for Apple Inc. (NASDAQ: AAPL). What is Dividend Yield? Since Verizon pays its dividend quarterly, you would receive $0.6525 per share (2.61/4).
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13630.0
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2023-09-15 00:00:00 UTC
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61% of Warren Buffett's $353 Billion Portfolio Is Invested in Just 3 Stocks
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AAPL
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https://www.nasdaq.com/articles/61-of-warren-buffetts-%24353-billion-portfolio-is-invested-in-just-3-stocks
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If you've ever wondered why Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is so revered on Wall Street, just take a closer look at his track record.
Though the Oracle of Omaha, as he's come to be known, is fallible just like every other investor on the planet, he's been able to double up the annualized total return, including dividends, of the benchmark S&P 500 since 1965. On an aggregate basis, Berkshire's Class A shares (BRK.A) have gained 4,455,573% under Buffett's watch, through the closing bell on Sept. 9, 2023.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett's formula for success involves no fancy charting software or algorithms. Rather, he seeks out well-run, profitable businesses with sustainable moats/competitive advantages, and he hangs onto these investments for years, if not decades.
But perhaps most important in Warren Buffett's moneymaking recipe is his penchant for portfolio concentration. Even though Berkshire Hathaway holds stakes in more than 50 securities, a little over 61% ($216.3 billion) of the $353.3 billion portfolio Buffett and his team oversee is invested in just three stocks.
Apple: $163,134,548,865 market value (46.2% of invested assets)
The Oracle of Omaha has long held the belief that his and his investment teams' top ideas should account for a significant portion of Berkshire Hathaway's invested assets. It's pretty apparent that no investment idea ranks higher than tech stock Apple (NASDAQ: AAPL). As of the closing bell on Sept. 8, 2023, it accounted for more than 46% of Berkshire's investment portfolio.
During his company's annual shareholder meeting in May 2023, Buffett described Apple as "a better business than any we own." It's a strong statement considering that Berkshire Hathaway outright owns railroad BNSF and insurance company GEICO, among roughly five dozen other businesses.
One reason Buffett likely feels this way is the loyalty of Apple's customer base. Apple is often viewed as one of the most valuable and most recognized brands in the world. When new products hit retail stores, it typically doesn't have to worry about demand.
In terms of moat, Apple has pretty consistently led the way in U.S. smartphone sales. Since a 5G-capable version of its iPhone hit sales floors during the fourth quarter of 2020, Apple has accounted for around a 50% (if not greater) share of the U.S. smartphone market.
Apple's ability to evolve as a company has to be pleasing the Oracle of Omaha as well. CEO Tim Cook is spearheading a multiyear shift that's refocused Apple on subscription services. Though it's not abandoning the physical products that endeared the company to consumers, it is evolving into a platforms company. Emphasizing subscription services should be a positive for the company's operating margin, and it can help smooth out the revenue lumpiness often observed during iPhone replacement cycles.
But it might be Apple's capital-return program that has Warren Buffett hooked. Apple is paying one of the largest nominal-dollar dividends each year ($15 billion), and it's repurchased around $600 billion worth of its common stock since it kicked off its buyback program in 2013. Berkshire's stake in Apple is steadily climbing as a result of Apple's mammoth buybacks.
Bank of America: $29,291,682,890 market value (8.3% of invested assets)
Although it sits a veritable mile behind top-holding Apple, there's no doubt that Bank of America (NYSE: BAC) (commonly known as "BofA") is a favorite of Warren Buffett and his investing team. Berkshire holds more than 1 billion shares of BofA stock, which equates to a market value of almost $29.3 billion as of Sept. 8.
Interestingly enough, the Oracle of Omaha appears to favor bank stocks because they're cyclical. Though banks tend to struggle with rising loan losses and credit charge-offs during recessions, the fact is that recessions don't last very long. Since World War II ended, all 12 U.S. recessions have lasted just two to 18 months.
In comparison, economic expansions usually last multiple years, if not a full decade. Rather than foolishly trying to time when economic downturns will occur, Buffett buys financial stocks (with an emphasis on banks) to take advantage of the natural growth of the U.S. economy over long periods.
Perhaps the greatest lure for Buffett with Bank of America is its interest-rate sensitivity. In general, most bank stocks are going to benefit from a rising-rate environment. Banks with outstanding variable-rate loans should see their net-interest income climb in lockstep with interest rates. BofA just happens to be the most sensitive of the big banks when it comes to interest rate movements. The most aggressive rate-hiking cycle in four decades has added billions of dollars in net-interest income to BofA's coffers each quarter. Best of all, the Fed doesn't appear as if it'll be easing its federal funds target rate anytime soon.
As I've stated previously, Bank of America's investments in technology are also paying off. While it's never going to be considered a cutting-edge financial company, BofA's digitization efforts have led to a more-than-doubling in Zelle transactions since June 2020 (79 million in Q2 2020 vs. 197 million in Q2 2023), as well as a 74% household digital banking adoption rate. Online and mobile transactions are considerably cheaper for Bank of America than in-person interactions. In other words, the company's technological investments should improve its operating efficiency.
Image source: American Express.
American Express: $23,868,072,501 (6.8% of invested assets)
The third stock that makes up just over 61% of Warren Buffett's $353 billion portfolio, when aggregated with Apple and Bank of America, is credit-services provider American Express (NYSE: AXP). AmEx, as American Express is also known, is the second-longest tenured holding in Berkshire Hathaway's portfolio (since 1993).
The macrothesis with American Express is very similar to BofA. While recessions and contractions are a normal part of the economic cycle, expansions and bull markets last disproportionately longer. For a long-term-minded investor like Buffett, it's a simple numbers game that works to his advantage.
Two factors have made AmEx an undeniable winner over the long run: its ability to play both sides of the aisle during a transaction and the type of customer it tends to court.
As of 2021, American Express securely held the No. 3 spot in the U.S. with regard to credit card network purchase volume. Being responsible for nearly 20% of all credit card network purchase volume in the No. 1 market for consumption globally is an envious position to be in.
But in addition to collecting fees from merchants, American Express also acts as a lender to consumers and businesses. While this does expose AmEx to potential loan losses and credit delinquencies during downturns, AmEx benefits as a whole because periods of expansion last substantially longer. Being able to "double-dip" and hit both sides of a transaction has really lifted AmEx's ceiling.
Furthermore, American Express has a lengthy history of attracting affluent clientele. High-earning cardholders are less likely to alter their spending habits or fail to pay their bill during modest disruptions in the U.S. and global economy. In theory, this should allow AmEx to weather downturns better than most lending institutions.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 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, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's pretty apparent that no investment idea ranks higher than tech stock Apple (NASDAQ: AAPL). It's a strong statement considering that Berkshire Hathaway outright owns railroad BNSF and insurance company GEICO, among roughly five dozen other businesses. Rather than foolishly trying to time when economic downturns will occur, Buffett buys financial stocks (with an emphasis on banks) to take advantage of the natural growth of the U.S. economy over long periods.
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It's pretty apparent that no investment idea ranks higher than tech stock Apple (NASDAQ: AAPL). If you've ever wondered why Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is so revered on Wall Street, just take a closer look at his track record. Even though Berkshire Hathaway holds stakes in more than 50 securities, a little over 61% ($216.3 billion) of the $353.3 billion portfolio Buffett and his team oversee is invested in just three stocks.
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It's pretty apparent that no investment idea ranks higher than tech stock Apple (NASDAQ: AAPL). Bank of America: $29,291,682,890 market value (8.3% of invested assets) Although it sits a veritable mile behind top-holding Apple, there's no doubt that Bank of America (NYSE: BAC) (commonly known as "BofA") is a favorite of Warren Buffett and his investing team. American Express: $23,868,072,501 (6.8% of invested assets) The third stock that makes up just over 61% of Warren Buffett's $353 billion portfolio, when aggregated with Apple and Bank of America, is credit-services provider American Express (NYSE: AXP).
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It's pretty apparent that no investment idea ranks higher than tech stock Apple (NASDAQ: AAPL). Berkshire Hathaway CEO Warren Buffett. American Express: $23,868,072,501 (6.8% of invested assets) The third stock that makes up just over 61% of Warren Buffett's $353 billion portfolio, when aggregated with Apple and Bank of America, is credit-services provider American Express (NYSE: AXP).
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13631.0
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2023-09-15 00:00:00 UTC
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3 Robinhood Stocks To Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-robinhood-stocks-to-buy-right-now-10
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nan
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Robinhood Markets (NASDAQ: HOOD) may not have the buzz it did during the height of the pandemic, but the app-based brokerage still wields a lot of influence in the investing world.
The company has more than 23 million funded accounts and nearly 11 million monthly active users as of its most recent quarter, and its user base skews young, estimated at an average age of 31.
That means Robinhood offers insight into how millennials are investing, and it also publishes a list of the 100 most popular stocks on the platform. Keep reading to see three top stocks to buy from that list.
Image source: Getty Images.
1. Airbnb
The Robinhood top 100 list tends to skew toward tech stocks so it shouldn't be a surprise to find Airbnb (NASDAQ: ABNB) among the ranks. The home-sharing platform has become one of the most popular ways to travel, especially with millennials who appreciate the flexibility toward budgets and locations that Airbnb allows, not to mention the ability to earn money hosting on the platform.
Airbnb stock has soared this year along with much of the rest of the tech sector, but the company still has plenty of upside potential over the long term.
Growth remains strong with revenue up 18% to $2.5 billion in the second quarter, and the company is highly profitable as its adjusted earnings before interest depreciation and amortization (EBITDA) margin was 33%.
Despite concerns about a regulatory crackdown, the company continues to increase supply, which may be the most important factor driving its long-term growth. In fact, the company said that in every quarter since its 2020 IPO, growth in total active listings has accelerated. Supply increased 19% in the second quarter, and the company now has more than 7 million listings on its platform.
Airbnb's brand, network effects, and market leadership give it a strong set of competitive advantages, and over the long term CEO Brian Chesky aims to expand the brand beyond the core, launching new products and services. That could make the stock much more valuable than it is today.
2. PayPal
While much of the tech sector has soared this year with the Nasdaq Composite Index up 32%, PayPal (NASDAQ: PYPL) has missed the boat, down 12% year-to-date and plunging nearly 80% from its peak in in 2021.
There are legitimate reasons for its underperformance, including emerging competition from Apple, slowing growth in branded payments, and difficult comparisons in digital payments following the boom during the pandemic.
However, the sell-off offers a buying opportunity as PayPal stock is trading at a good value, is still growing, and delivering strong margins. PayPal is currently valued at a price-to-earnings ratio of just 13.5, a valuation generally reserved for slow-growth stocks. However, the company reported 7% revenue growth in its second quarter with adjusted earnings per share up 24% to $1.16. For the full year, it expects adjusted EPS to increase 20% to $4.95 and is also targeting $5 billion in share repurchases, which would reduce shares outstanding by 7% at its current market cap.
The company could also be energized by the arrival of a new CEO at the end of the month as Alex Chriss, who formerly led Intuit's small business and self-employed group, will take over.
Investor expectations for the stock are clearly low, which could help support a rebound.
3. Realty Income
A Real Estate Investment Trust (REIT) might seem like an odd fit for the Robinhood crowd, but Realty Income (NYSE: O), a steady dividend payer, makes the top 100 list.
Realty Income manages mostly stand-alone retail properties and operates through triple-net leases, a low-risk strategy in which the tenant is responsible for insurance, maintenance, and property taxes.
That approach to real estate management has been a winning strategy for Realty Income, which currently offers a juicy dividend yield at 5.6% and is popular among dividend investors because it pays a monthly dividend.
Revenue in the second quarter increased 26% to $1.02 billion as it's rapidly expanding its property base, now holding more than 13,000 properties with 1,303 clients. Its occupancy rate was 99%, and its top tenants include Dollar General, Walgreen's, and Dollar Tree.
Realty Income's business model makes it a good bet to ride out any macroeconomic volatility, and its dividend should continue to reward investors. If you're looking for a steady dividend stock to buy, Realty Income is hard to beat.
Find out why Airbnb is one of the 10 best stocks to buy now
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*Stock Advisor returns as of September 11, 2023
Jeremy Bowman has positions in Airbnb and PayPal. The Motley Fool has positions in and recommends Airbnb, Apple, Intuit, and PayPal. The Motley Fool recommends Realty Income and recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Robinhood Markets (NASDAQ: HOOD) may not have the buzz it did during the height of the pandemic, but the app-based brokerage still wields a lot of influence in the investing world. Growth remains strong with revenue up 18% to $2.5 billion in the second quarter, and the company is highly profitable as its adjusted earnings before interest depreciation and amortization (EBITDA) margin was 33%. Realty Income's business model makes it a good bet to ride out any macroeconomic volatility, and its dividend should continue to reward investors.
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Its occupancy rate was 99%, and its top tenants include Dollar General, Walgreen's, and Dollar Tree. The Motley Fool has positions in and recommends Airbnb, Apple, Intuit, and PayPal. The Motley Fool recommends Realty Income and recommends the following options: short December 2023 $67.50 puts on PayPal.
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Airbnb The Robinhood top 100 list tends to skew toward tech stocks so it shouldn't be a surprise to find Airbnb (NASDAQ: ABNB) among the ranks. Realty Income A Real Estate Investment Trust (REIT) might seem like an odd fit for the Robinhood crowd, but Realty Income (NYSE: O), a steady dividend payer, makes the top 100 list. That approach to real estate management has been a winning strategy for Realty Income, which currently offers a juicy dividend yield at 5.6% and is popular among dividend investors because it pays a monthly dividend.
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Supply increased 19% in the second quarter, and the company now has more than 7 million listings on its platform. However, the company reported 7% revenue growth in its second quarter with adjusted earnings per share up 24% to $1.16. The Motley Fool has positions in and recommends Airbnb, Apple, Intuit, and PayPal.
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13632.0
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2023-09-15 00:00:00 UTC
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EXCLUSIVE-TSMC tells vendors to delay chip equipment deliveries -sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-tsmc-tells-vendors-to-delay-chip-equipment-deliveries-sources
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By Sam Nussey, Fanny Potkin and Toby Sterling
TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said.
The instruction by TSMC, which is grappling with delays at its $40 billion chip factory in Arizona, is aimed at controlling costs and reflects the company's growing caution about the outlook for demand, the sources said.
Suppliers currently expect the delay to be short-term, the sources said, declining to be named as the information is not public.
TSMC said it does not comment on "market rumour".
The company referred Reuters to comments by CEO C.C. Wei in July that weaker economic conditions, slower recovery in China and softer end-market demand is making customers more cautious and more mindful of controlling inventory.
Companies affected by the instruction to delay include Dutch firm ASML ASML.AS, which makes lithography equipment essential for high-end chipmaking, the sources said.
In an interview with Reuters last week, ASML CEO Peter Wennink said some orders for its high-end tools have been pushed back, without naming customers, and that he expected it would be a "short-term management" issue.
ASML is operating at maximum capacity and overall sales are forecast to grow 30% this year.
"We've had several (news) reports about fab readiness. Not only in Arizona ... but also in Taiwan," Wennink told Reuters, referring to preparations for chip manufacturing.
TSMC has been forced to push back production at the Arizona plant by a year to 2025, as it struggled to recruit workers and faced pushback from unions on efforts to bring in workers from Taiwan.
"If you ship a lot of people from Taiwan to help build a factory in Arizona, they're not working somewhere else. So this is kind of a double whammy," Wennink said.
TSMC Chairman Mark Liu said last week there had been "tremendous" improvement at the Arizona site in the last five months.
CHIP CYCLE WORRIES
The Taiwanese chip giant is not alone in worrying a bounce back in demand may take longer than expected.
Apple, a key TSMC customer, launched a this week that included a faster chip, but it did not raise prices, reflecting the global smartphone slump.
Media reports that Beijing has ordered some government employees to stop using iPhones at work, and the launch by tech firm Huawei of a flagship phone using Chinese-made chips, is causing further unease at TSMC, one of the sources said.
TSMC used to make chips for Huawei but suspended supplies after Washington imposed sanctions on the Chinese firm. Analysts have found Huawei worked with Chinese contract chipmaker Semiconductor Manufacturing International Corp (SMIC) 0981.HK to manufacture an advanced chip for its latest smartphone.
TSMC forecast in July a 10% slide in 2023 sales and as much as a 4% point drop in operating margin this quarter from the previous quarter, citing weak demand for smartphones and PCs and uncertainty about the market for artificial intelligence.
The chipmaker is also facing elevated capital expenditure, which increased 21% to $36 billion last year, from expansion plans put in place during the pandemic-driven chips boom.
It estimated in July that investment spending for this year would be at the lower end of a previous forecast of $32 billion to $36 billion, and said it expected a slower increase in the next few years.
(Reporting by Sam Nussey in Tokyo, Fanny Potkin in Singapore and Toby Sterling in Amsterdam; Editing by Miyoung Kim and Stephen Coates)
((sam.nussey@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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The instruction by TSMC, which is grappling with delays at its $40 billion chip factory in Arizona, is aimed at controlling costs and reflects the company's growing caution about the outlook for demand, the sources said. In an interview with Reuters last week, ASML CEO Peter Wennink said some orders for its high-end tools have been pushed back, without naming customers, and that he expected it would be a "short-term management" issue. Media reports that Beijing has ordered some government employees to stop using iPhones at work, and the launch by tech firm Huawei of a flagship phone using Chinese-made chips, is causing further unease at TSMC, one of the sources said.
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By Sam Nussey, Fanny Potkin and Toby Sterling TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said. Companies affected by the instruction to delay include Dutch firm ASML ASML.AS, which makes lithography equipment essential for high-end chipmaking, the sources said. In an interview with Reuters last week, ASML CEO Peter Wennink said some orders for its high-end tools have been pushed back, without naming customers, and that he expected it would be a "short-term management" issue.
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By Sam Nussey, Fanny Potkin and Toby Sterling TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said. The instruction by TSMC, which is grappling with delays at its $40 billion chip factory in Arizona, is aimed at controlling costs and reflects the company's growing caution about the outlook for demand, the sources said. Media reports that Beijing has ordered some government employees to stop using iPhones at work, and the launch by tech firm Huawei of a flagship phone using Chinese-made chips, is causing further unease at TSMC, one of the sources said.
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By Sam Nussey, Fanny Potkin and Toby Sterling TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said. In an interview with Reuters last week, ASML CEO Peter Wennink said some orders for its high-end tools have been pushed back, without naming customers, and that he expected it would be a "short-term management" issue. Not only in Arizona ... but also in Taiwan," Wennink told Reuters, referring to preparations for chip manufacturing.
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13633.0
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2023-09-15 00:00:00 UTC
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Apple to provide iPhone 12 software update in France to settle radiation row
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AAPL
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https://www.nasdaq.com/articles/apple-to-provide-iphone-12-software-update-in-france-to-settle-radiation-row
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nan
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By Elizabeth Pineau
PARIS, Sept 15 (Reuters) - Apple said on Friday it would issue a software update for iPhone 12 users in France, in what seemed to offer a way out of a row with French regulators which had ordered the suspension of the phone's sale due to breaches of radiation exposure limits.
"We will issue a software update for users in France to accommodate the protocol used by French regulators. We look forward to iPhone 12 continuing to be available in France," Apple said in a statement.
"This is related to a specific testing protocol used by French regulators and not a safety concern," it said.
The French ANFR regulator is preparing to rapidly test this software update, which would eventually bring the model into compliance with European standards applied in France, and lift the marketing withdrawal, French Digital Affairs Minister Jean Noel Barrot's ministry said in a statement.
(Reporting by Elizabeth Pineau, Writing by Dominique Vidalon, Ingrid Melander, editing by Tassio Hummel)
((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Elizabeth Pineau PARIS, Sept 15 (Reuters) - Apple said on Friday it would issue a software update for iPhone 12 users in France, in what seemed to offer a way out of a row with French regulators which had ordered the suspension of the phone's sale due to breaches of radiation exposure limits. The French ANFR regulator is preparing to rapidly test this software update, which would eventually bring the model into compliance with European standards applied in France, and lift the marketing withdrawal, French Digital Affairs Minister Jean Noel Barrot's ministry said in a statement. (Reporting by Elizabeth Pineau, Writing by Dominique Vidalon, Ingrid Melander, editing by Tassio Hummel) ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Elizabeth Pineau PARIS, Sept 15 (Reuters) - Apple said on Friday it would issue a software update for iPhone 12 users in France, in what seemed to offer a way out of a row with French regulators which had ordered the suspension of the phone's sale due to breaches of radiation exposure limits. "We will issue a software update for users in France to accommodate the protocol used by French regulators. "This is related to a specific testing protocol used by French regulators and not a safety concern," it said.
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By Elizabeth Pineau PARIS, Sept 15 (Reuters) - Apple said on Friday it would issue a software update for iPhone 12 users in France, in what seemed to offer a way out of a row with French regulators which had ordered the suspension of the phone's sale due to breaches of radiation exposure limits. "We will issue a software update for users in France to accommodate the protocol used by French regulators. The French ANFR regulator is preparing to rapidly test this software update, which would eventually bring the model into compliance with European standards applied in France, and lift the marketing withdrawal, French Digital Affairs Minister Jean Noel Barrot's ministry said in a statement.
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By Elizabeth Pineau PARIS, Sept 15 (Reuters) - Apple said on Friday it would issue a software update for iPhone 12 users in France, in what seemed to offer a way out of a row with French regulators which had ordered the suspension of the phone's sale due to breaches of radiation exposure limits. "We will issue a software update for users in France to accommodate the protocol used by French regulators. The French ANFR regulator is preparing to rapidly test this software update, which would eventually bring the model into compliance with European standards applied in France, and lift the marketing withdrawal, French Digital Affairs Minister Jean Noel Barrot's ministry said in a statement.
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13634.0
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2023-09-15 00:00:00 UTC
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Apple to implement iPhone 12 update in next few days in France - Minister
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AAPL
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https://www.nasdaq.com/articles/apple-to-implement-iphone-12-update-in-next-few-days-in-france-minister
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nan
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nan
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PARIS, Sept 15 (Reuters) - French Digital Affairs Minister Jean Noel Barrot on Friday said Apple told him that it will implement an update for its iPhone 12 model in the next few days to fix radiation issues which earlier this week triggered a sales halt in France.
The French ANFR regulator is preparing to rapidly test this update, which would eventually bring the model into compliance with European standards applied in France, and lift the marketing withdrawal, Barrot's ministry said in a statement.
(Reporting by Elizabeth Pineau, Writing by Dominique Vidalon)
((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Sept 15 (Reuters) - French Digital Affairs Minister Jean Noel Barrot on Friday said Apple told him that it will implement an update for its iPhone 12 model in the next few days to fix radiation issues which earlier this week triggered a sales halt in France. The French ANFR regulator is preparing to rapidly test this update, which would eventually bring the model into compliance with European standards applied in France, and lift the marketing withdrawal, Barrot's ministry said in a statement. (Reporting by Elizabeth Pineau, Writing by Dominique Vidalon) ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Sept 15 (Reuters) - French Digital Affairs Minister Jean Noel Barrot on Friday said Apple told him that it will implement an update for its iPhone 12 model in the next few days to fix radiation issues which earlier this week triggered a sales halt in France. The French ANFR regulator is preparing to rapidly test this update, which would eventually bring the model into compliance with European standards applied in France, and lift the marketing withdrawal, Barrot's ministry said in a statement. (Reporting by Elizabeth Pineau, Writing by Dominique Vidalon) ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Sept 15 (Reuters) - French Digital Affairs Minister Jean Noel Barrot on Friday said Apple told him that it will implement an update for its iPhone 12 model in the next few days to fix radiation issues which earlier this week triggered a sales halt in France. The French ANFR regulator is preparing to rapidly test this update, which would eventually bring the model into compliance with European standards applied in France, and lift the marketing withdrawal, Barrot's ministry said in a statement. (Reporting by Elizabeth Pineau, Writing by Dominique Vidalon) ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Sept 15 (Reuters) - French Digital Affairs Minister Jean Noel Barrot on Friday said Apple told him that it will implement an update for its iPhone 12 model in the next few days to fix radiation issues which earlier this week triggered a sales halt in France. The French ANFR regulator is preparing to rapidly test this update, which would eventually bring the model into compliance with European standards applied in France, and lift the marketing withdrawal, Barrot's ministry said in a statement. (Reporting by Elizabeth Pineau, Writing by Dominique Vidalon) ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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13635.0
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2023-09-15 00:00:00 UTC
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2 Stocks to Invest in Virtual Reality (VR)
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AAPL
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https://www.nasdaq.com/articles/2-stocks-to-invest-in-virtual-reality-vr
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nan
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All eyes have been on artificial intelligence (AI) this year, with recent advances in chips elevating what is possible with the technology. However, many industries require the same hardware used for AI, with new chips similarly providing a boost to other sectors.
Markets such as virtual reality (VR) are benefiting from more powerful chips and have become attractive growth areas for tech companies. As a result, the industry is expected to expand at a compound annual growth rate of 45% through 2029 (per GlobeNewswire). VR has shown up in various devices for decades but has had trouble garnering mass interest from consumers. However, that could change as the technology expands and has more utility for various activities.
With it still relatively early days for VR, it's not a bad idea to invest in this technology of the future. So, here are two VR stocks to buy this September.
1. Apple
Technically, Apple (NASDAQ: AAPL) hasn't quite entered the VR market yet. However, the company unveiled its first virtual/augmented reality (AR) headset at its Worldwide Developer Conference this past June, with a release date set for 2024.
The long-anticipated device, called the Vision Pro, was rumored for years as Apple made related acquisitions and filed patents. However, it has exceeded expectations by taking leaps in innovation. Rather than a VR/AR headset, the Vision Pro is better labeled as a spatial computer.
It will utilize the same chip as the current MacBook Air, allowing consumers to complete almost any computing task in VR or AR form. Activities such as web browsing, video calling, editing, word processing, and more will be available through the device. Various hand gestures and eye tracking eliminate the need for controllers, often used in competing headsets.
Apple has grown into a position of dominance in consumer tech, snapping up significant market shares in multiple product categories. The company has done this by creating an interconnected ecosystem for its products and offering popular Apple-exclusive apps like Messages and FaceTime. The Vision Pro will have an edge over the competition by similarly offering these features.
Meanwhile, the company is strategically enabling its most popular product, the iPhone, to work with the headset to provide a unique experience. The iPhone 15 will be released on Sept. 22 and will receive an update that allows users to film spatial video to be viewed with the Vision Pro. It's an early step, but it illustrates how Apple will use its other products to attract consumers to the Vision Pro.
Apple's headset will launch at $3,499, pricing out many consumers. However, future generations of the device will likely bring the cost down, making Apple an attractive VR stock for long-term-minded investors
2. Microsoft
While companies like Apple and Sony focus on the consumer side of VR, Microsoft (NASDAQ: MSFT) uniquely targets businesses with its headsets. The company calls its device HoloLens and describes it as "An ergonomic, untethered self-contained holographic device with enterprise-ready applications to increase user accuracy and output."
Examples of applications that Microsoft provides for the headset include manufacturing, engineering and construction, healthcare, and education. The company seeks to boost productivity in various industries with its HoloLens. Microsoft promises to increase efficiency by 90% in manufacturing, decrease ward time in hospitals by 30% with remote consultations, and save an estimated $4 million year in construction costs.
Microsoft offers over 200 partner apps for the HoloLens and boasts clientele such as Volkswagen's Audi, L'Oréal, Mercedes, and more. However, the biggest reason to invest in Microsoft's VR business is its growing position in AI. The company has exclusive access to several of ChatGPT developer OpenAI's AI models, with its 49% stake in the start-up. AI will likely be crucial for producing useful programs for VR headsets, giving Microsoft an edge in the market.
Microsoft shares have climbed nearly 200% over the last five years thanks to consistent revenue gains and ventures into high-growth markets like AI. The company has a solid position in VR, serving the enterprise side of the sector. Its history of growth and unique role in the industry makes its stock an excellent way to invest in the VR market.
10 stocks we like better than Apple
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*Stock Advisor returns as of September 11, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Volkswagen Ag. 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 Technically, Apple (NASDAQ: AAPL) hasn't quite entered the VR market yet. However, the company unveiled its first virtual/augmented reality (AR) headset at its Worldwide Developer Conference this past June, with a release date set for 2024. It will utilize the same chip as the current MacBook Air, allowing consumers to complete almost any computing task in VR or AR form.
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Apple Technically, Apple (NASDAQ: AAPL) hasn't quite entered the VR market yet. However, future generations of the device will likely bring the cost down, making Apple an attractive VR stock for long-term-minded investors 2. Microsoft While companies like Apple and Sony focus on the consumer side of VR, Microsoft (NASDAQ: MSFT) uniquely targets businesses with its headsets.
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Apple Technically, Apple (NASDAQ: AAPL) hasn't quite entered the VR market yet. However, future generations of the device will likely bring the cost down, making Apple an attractive VR stock for long-term-minded investors 2. Microsoft While companies like Apple and Sony focus on the consumer side of VR, Microsoft (NASDAQ: MSFT) uniquely targets businesses with its headsets.
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Apple Technically, Apple (NASDAQ: AAPL) hasn't quite entered the VR market yet. It's an early step, but it illustrates how Apple will use its other products to attract consumers to the Vision Pro. Microsoft While companies like Apple and Sony focus on the consumer side of VR, Microsoft (NASDAQ: MSFT) uniquely targets businesses with its headsets.
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13636.0
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2023-09-15 00:00:00 UTC
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Equal Weight ETF EQL Hits Key Buy Signal
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AAPL
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https://www.nasdaq.com/articles/equal-weight-etf-eql-hits-key-buy-signal
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nan
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nan
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Looking for a strategy that can mitigate some of the big risks impacting the S&P 500? The equal weight ETF EQL may offer one intriguing tool to do so. With concentration risk and particularly risk to tech investing looming over the stock market, a strategy like the Alps Equal Sector Weight ETF (EQL) offers diversification and the potential to perform relative to peer strategies.
Let’s start with concentration risk. Investors with 401(k)s, for example, may feel disturbed that more than 80% of the year’s gains stem from just 10 firms. Such top-heavy performance from the mega-cap space adds concerning vulnerability to the overall S&P 500 and many portfolios. Overweighting to those firms means bad news for, say, Apple (AAPL) or Nvidia (NVDA), and could significantly damage many portfolios.
See more: Equal Sector Weight ETF EQL Hits $300 Million
Tech’s significant representation in those 10 firms deserves examination. Tech stocks may be overvalued, which may impact future earnings drops. Many companies may currently be benefiting from having locked-in debt deals and loans at great rates. Bank walks and the lagging impact of rate hikes on the credit market, however, may threaten tech stocks in the near-to-medium term.
Digging Into Equal Weight ETF EQL
These and other factors may add to the case for an equal weight ETF like EQL. The fund tracks the NYSE Select Sector Equal Weight Index, which assigns an equal weight to each sector and then equal weights stocks therein. EQL charges 26 basis points (bps) and has returned 12% YTD, outperforming both its ETF Database Category and FactSet Segment averages.
In doing so, the strategy also hit a key buy signal per its tech chart on YCharts. EQL’s price rose above its 50-day simple moving average (SMA) of $105.3 as of Friday, often considered a buy signal by market watchers. While it remains to be seen whether it will continue to rise in price, EQL presents an intriguing option for those looking to mitigate concentration risk or benefit from upswings in less popular sectors.
[caption id="attachment_536441" align="aligncenter" width="621"] Equal weight ETF EQL hit a key buy signal recently.[/caption]
For more news, information, and analysis, visit the ETF Building Blocks Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Overweighting to those firms means bad news for, say, Apple (AAPL) or Nvidia (NVDA), and could significantly damage many portfolios. Bank walks and the lagging impact of rate hikes on the credit market, however, may threaten tech stocks in the near-to-medium term. EQL charges 26 basis points (bps) and has returned 12% YTD, outperforming both its ETF Database Category and FactSet Segment averages.
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Overweighting to those firms means bad news for, say, Apple (AAPL) or Nvidia (NVDA), and could significantly damage many portfolios. With concentration risk and particularly risk to tech investing looming over the stock market, a strategy like the Alps Equal Sector Weight ETF (EQL) offers diversification and the potential to perform relative to peer strategies. See more: Equal Sector Weight ETF EQL Hits $300 Million Tech’s significant representation in those 10 firms deserves examination.
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Overweighting to those firms means bad news for, say, Apple (AAPL) or Nvidia (NVDA), and could significantly damage many portfolios. With concentration risk and particularly risk to tech investing looming over the stock market, a strategy like the Alps Equal Sector Weight ETF (EQL) offers diversification and the potential to perform relative to peer strategies. Digging Into Equal Weight ETF EQL These and other factors may add to the case for an equal weight ETF like EQL.
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Overweighting to those firms means bad news for, say, Apple (AAPL) or Nvidia (NVDA), and could significantly damage many portfolios. With concentration risk and particularly risk to tech investing looming over the stock market, a strategy like the Alps Equal Sector Weight ETF (EQL) offers diversification and the potential to perform relative to peer strategies. See more: Equal Sector Weight ETF EQL Hits $300 Million Tech’s significant representation in those 10 firms deserves examination.
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13637.0
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2023-09-15 00:00:00 UTC
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Apple Could Jump 20% According to This Wall Street Analyst. Time to Buy?
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AAPL
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https://www.nasdaq.com/articles/apple-could-jump-20-according-to-this-wall-street-analyst.-time-to-buy
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nan
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Apple's (NASDAQ: AAPL) latest iPhones are ready to start shipping.
As Apple watchers know well, the tech giant releases a new model of its trademark smartphone each September, ahead of the peak holiday selling season, and expectations are high coming into the release of the iPhone 15.
Apple stock has risen roughly 40% this year on a broader recovery in tech stocks, excitement over AI, and anticipation of the upcoming launch of its Vision Pro spatial computing headset, which it unveiled back in June. It is expected to go on sale early next year.
However, Apple's recent results haven't packed much punch and show why the company could use a win from the latest round of iPhones.
Revenue fell 1.4% in its latest quarter due to macroeconomic challenges and difficult comparisons with the pandemic era when sales of Macs and iPads surged. Revenue is down 3.4% through the first three quarters of the fiscal year, and profits have fallen as well this year as the company has ramped up spending on research and development. As a result, the stock is trading at a price-to-earnings ratio of 30, even though the company isn't even growing currently.
However, one analyst thinks that the iPhone 15 launch could be just the catalyst the tech giant needs to spark another rally, carrying the stock up 20%. Wedbush's Dan Ives predicted that the iPhone 15 would set off a mini super-cycle for Apple, sparking a new round of iPhone buying. Let's take a closer look at what he had to say.
Image source: Getty Images.
Can the iPhone do it again?
Ives noted that 25% of the iPhone installed base have not upgraded their phones in four years and sees the recent concerns in China as mostly noise -- Beijing banned the use of iPhones by government officials, favoring local company Huawei. Ives said the ban is a non-factor, saying that government employees make up less than 500,000 of the 45 million iPhones likely to be sold in the country. The Wedbush analyst noted that Apple has continued to gain market share in China, with momentum likely to build from the newest iPhone launch.
Finally, Ives also sees strength in services continuing to build, which he valued at $1.4 trillion to $1.5 trillion.
A potential price ceiling
Apple stopped sharing data on iPhone unit sales years ago but has reported continued sales growth from its flagship smartphone, which appears to have come mostly from price increases.
Global smartphone shipments actually peaked in 2016 at 1.473 billion, according to IDC, and have declined since then, with 1.15 billion expected to be sold this year. Nonetheless, the market has expanded thanks to steady price hikes. The average smartphone selling price increased 11% annually in the U.S. from $409 in 2016 to $735 in 2022, with much of that increase driven by the iPhone. Apple's most expensive phone has increased by $550 between the launch of the iPhone X in 2017 and the iPhone 14 release last year.
There are plenty of headwinds to consumer spending in the U.S., including rising interest rates, inflation, and the restart of student loans, and the Chinese economy is still struggling to rebound following the impact of COVID-19 and a crackdown on the tech sector.
Apple raised prices by $100 on its most expensive model, the new iPhone 15 Pro Max with the release of the iPhone 15, and that's likely to coax more spending out of its least price-sensitive customers, but Apple could encounter more resistance from the middle of the market even as it held prices flat on its other phones as the smartphone market is as weak as it's been in a long time.
The calls for an upgrade cycle from Ives make sense because iPhone 12 sales spiked, meaning many of its customers are now holding three-year-old phones, but struggling telecoms are also likely to push back on promotions that have led them to subsidize an increasing portion of the iPhone price.
Is Apple stock a buy?
Whether a mini super-cycle plays out remains to be seen, but Apple stock already seems priced to perfection given its sluggish growth. Its price-to-earnings ratio of 30 is greater than the S&P 500's at 25.5, and growth expectations remain modest, with analysts expecting 8% earnings-per-share growth in fiscal 2024.
Without double-digit growth from its trademark smartphone or a breakout performance from the Vision Pro, Apple seems unlikely to hit Ives' target of $230, which implies a 30% jump, in the next year.
Investors are better off waiting for a better price on Apple stock. The broader macroeconomic pressure and declining smartphone sales seem likely to put a ceiling on the stock price, and even Apple seems to understand that it's the wrong time to raise prices on the majority of iPhone customers.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) latest iPhones are ready to start shipping. Revenue fell 1.4% in its latest quarter due to macroeconomic challenges and difficult comparisons with the pandemic era when sales of Macs and iPads surged. There are plenty of headwinds to consumer spending in the U.S., including rising interest rates, inflation, and the restart of student loans, and the Chinese economy is still struggling to rebound following the impact of COVID-19 and a crackdown on the tech sector.
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Apple's (NASDAQ: AAPL) latest iPhones are ready to start shipping. As Apple watchers know well, the tech giant releases a new model of its trademark smartphone each September, ahead of the peak holiday selling season, and expectations are high coming into the release of the iPhone 15. Wedbush's Dan Ives predicted that the iPhone 15 would set off a mini super-cycle for Apple, sparking a new round of iPhone buying.
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Apple's (NASDAQ: AAPL) latest iPhones are ready to start shipping. A potential price ceiling Apple stopped sharing data on iPhone unit sales years ago but has reported continued sales growth from its flagship smartphone, which appears to have come mostly from price increases. Apple raised prices by $100 on its most expensive model, the new iPhone 15 Pro Max with the release of the iPhone 15, and that's likely to coax more spending out of its least price-sensitive customers, but Apple could encounter more resistance from the middle of the market even as it held prices flat on its other phones as the smartphone market is as weak as it's been in a long time.
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Apple's (NASDAQ: AAPL) latest iPhones are ready to start shipping. Can the iPhone do it again? The Wedbush analyst noted that Apple has continued to gain market share in China, with momentum likely to build from the newest iPhone launch.
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2023-09-15 00:00:00 UTC
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VTI ETF: This Diversified Powerhouse Owns Over 3,800 Stocks
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AAPL
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https://www.nasdaq.com/articles/vti-etf%3A-this-diversified-powerhouse-owns-over-3800-stocks
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If you’re looking to create a diversified portfolio of equities, it’s hard to beat the Vanguard Total Stock Market ETF (NYSEARCA:VTI) as a starting point. This all-encompassing fund holds positions in over 3,800 stocks. Below, we’ll discuss this popular ETF and the many advantages it offers to investors.
What is VTI ETF’s Strategy?
While there are S&P 500 (SPX) ETFs that invest in the 500 stocks that make up the S&P 500 (essentially 500 of the largest companies listed on U.S. exchanges), VTI takes things a step further. It invests in all of the stocks trading on U.S. exchanges, including large-, mid-, and small-cap stocks. This offers investors unparalleled diversification and exposure to the power of the entire U.S. economy and reduces single-stock and single-sector risk.
This passively-managed index fund is one of the most popular ETFs in the market. With a massive $315 billion in assets under management (AUM), VTI is the fourth-largest ETF in the world.
VTI's Portfolio
VTI holds 3,818 positions. Even better, its top 10 holdings account for just 26% of assets, meaning that there isn't much concentration risk here. Below, you’ll find an overview of VTI’s top 10 holdings using TipRanks’ holdings tool.
As you can see, VTI’s top 10 holdings are made up of the mega-cap tech stocks that dominate the U.S. market, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA) and Meta Platforms (NASDAQ:META).
Technology is the largest sector of the U.S. stock market, so it’s unsurprising that these tech giants occupy such prominent positions within the fund. Altogether, the technology sector has a 30.1% weighting within the ETF, but there is plenty more to VTI beyond tech. Other substantial segments include the consumer discretionary sector at 14.4%, the industrial sector with a 13.0% share, followed closely by the healthcare sector at 12.6%, and finally, the financial sector accounts for a 10.5% weighting.
Outside of the technology sector, other prominent holdings include the likes of Warren Buffett's Berkshire Hathaway (NYSE:BRK.B), health insurer UnitedHealth Group (NYSE:UNH), energy majors like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), and pharmaceutical giants like Johnson & Johnson (NYSE:JNJ), Eli Lilly (NYSE:LLY), Merck (NYSE:MRK), and AbbVie (NYSE:ABBV).
Six of VTI's top 10 holdings feature Smart Scores of 8 or above. Meanwhile, VTI earns an Outperform-equivalent ETF Smart Score of 8. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating.
In addition to this strong Smart Score, VTI also enjoys relatively favorable ratings from the analyst community, as you’ll see below.
Is VTI Stock a Buy, According to Analysts?
Turning to Wall Street, VTI earns a Moderate Buy consensus rating based on 2,423 Buys, 1,285 Holds, and 110 Sell ratings assigned in the past three months. The average VTI stock price target of $258.72 implies 17.1% upside potential.
Looking at Its Long-Term Performance
VTI’s comprehensive approach has helped it build up a solid track record of performance over time. VTI has returned 18.1% year-to-date and 14.8% over the past year. Over the past three years, the fund has returned a respectable 9.7% on an annualized basis.
Further out, VTI has posted double-digit total returns over the past five and 10 years on an annualized basis, with an impressive five-year annualized return of 10.2% and an even better 10-year annualized return of 12.2%.
Since its inception over 20 years ago in 2001, VTI has returned 8.1% on an annualized basis, making this fund a consistent long-term performer.
Looking at these returns on a cumulative basis illustrates the power of investing in a fund like VTI and letting the results compound over the long haul. VTI’s cumulative return over the past 10 years is 215.8%, and its cumulative return since its inception is 465.2%, meaning that an investor who put $100,000 into VTI 10 years ago would have $215,800 today and an investor who put the same amount into VTI when it started in 2001 would have $465,200 today.
Minuscule Fees
Vanguard is the firm that pioneered the idea of low-cost index funds, and VTI is another great example of this tradition. Its miniscule expense ratio of just 0.03% is among the lowest out there and means that an investor allocating $10,000 into VTI today will pay just $3 in fees over the course of the year.
Assuming that the expense ratio remains at 0.03% and VTI returns 5% per year going forward, this investor would pay just $10 in fees after three years, $17 after five years, and $39 after 10 years. These low fees help investors to keep more of the gains they make over time.
This 0.03% expense ratio is also dramatically cheaper than the average expense ratio for similar funds, which stands at 0.79%. Over the course of 10 years, an investor putting the same amount into a fund with a 0.79% expense ratio would pay a whopping $1,184 in fees. This massive difference in total costs over time illustrates why it’s important not to overlook expense ratios when choosing investments and why it’s beneficial to invest in low-cost funds like VTI.
Dividend Track Record
VTI's dividend yield stands at just 1.5%, so most investors aren't buying it for the income. However, this yield is roughly in line with that of the S&P 500, and it helps add to total returns over time. Additionally, VTI has been a reliable dividend payer for many years, with 21 years of consecutive dividend payments under its belt.
Investor Takeaway
VTI’s long-term track record and its broad and comprehensive group of holdings make it a great building block for an investor who is just starting out. The ETF can also be a solid option for longtime investors who simply want to add instant diversification to their portfolios.
The popular ETF’s simple strategy of investing in all stocks listed on U.S. exchanges regardless of size or sector has worked for a long time, and it’s hard to argue with the results. Furthermore, VTI’s minimal fees make it even more attractive.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you can see, VTI’s top 10 holdings are made up of the mega-cap tech stocks that dominate the U.S. market, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA) and Meta Platforms (NASDAQ:META). If you’re looking to create a diversified portfolio of equities, it’s hard to beat the Vanguard Total Stock Market ETF (NYSEARCA:VTI) as a starting point. While there are S&P 500 (SPX) ETFs that invest in the 500 stocks that make up the S&P 500 (essentially 500 of the largest companies listed on U.S. exchanges), VTI takes things a step further.
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As you can see, VTI’s top 10 holdings are made up of the mega-cap tech stocks that dominate the U.S. market, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA) and Meta Platforms (NASDAQ:META). Looking at Its Long-Term Performance VTI’s comprehensive approach has helped it build up a solid track record of performance over time. VTI’s cumulative return over the past 10 years is 215.8%, and its cumulative return since its inception is 465.2%, meaning that an investor who put $100,000 into VTI 10 years ago would have $215,800 today and an investor who put the same amount into VTI when it started in 2001 would have $465,200 today.
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As you can see, VTI’s top 10 holdings are made up of the mega-cap tech stocks that dominate the U.S. market, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA) and Meta Platforms (NASDAQ:META). VTI’s cumulative return over the past 10 years is 215.8%, and its cumulative return since its inception is 465.2%, meaning that an investor who put $100,000 into VTI 10 years ago would have $215,800 today and an investor who put the same amount into VTI when it started in 2001 would have $465,200 today. Assuming that the expense ratio remains at 0.03% and VTI returns 5% per year going forward, this investor would pay just $10 in fees after three years, $17 after five years, and $39 after 10 years.
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As you can see, VTI’s top 10 holdings are made up of the mega-cap tech stocks that dominate the U.S. market, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA) and Meta Platforms (NASDAQ:META). Since its inception over 20 years ago in 2001, VTI has returned 8.1% on an annualized basis, making this fund a consistent long-term performer. Assuming that the expense ratio remains at 0.03% and VTI returns 5% per year going forward, this investor would pay just $10 in fees after three years, $17 after five years, and $39 after 10 years.
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13639.0
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2023-09-15 00:00:00 UTC
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Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-fidelity-high-dividend-etf-fdvv-a-strong-etf-right-now-7
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Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Fidelity High Dividend ETF (FDVV) is a smart beta exchange traded fund launched on 09/12/2016.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Fidelity, and has been able to amass over $1.75 billion, which makes it one of the largest ETFs in the Style Box - All Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the Fidelity Core Dividend Index.
The Fidelity High Dividend Index reflects the performance of stocks of large and mid-capitalization high-dividend-paying companies that are expected to continue to pay and grow their dividends.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.29%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.52%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Information Technology sector - about 25.10% of the portfolio. Financials and Energy round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 6.37% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
Performance and Risk
The ETF has added about 11.57% and was up about 12.97% so far this year and in the past one year (as of 09/15/2023), respectively. FDVV has traded between $33.02 and $41.54 during this last 52-week period.
FDVV has a beta of 1.01 and standard deviation of 16.58% for the trailing three-year period. With about 108 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $8.44 billion in assets, iShares Core S&P U.S. Value ETF has $14.16 billion. DFAT has an expense ratio of 0.28% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Fidelity High Dividend ETF (FDVV): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 6.37% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Fidelity High Dividend ETF (FDVV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Fidelity High Dividend ETF (FDVV) is a smart beta exchange traded fund launched on 09/12/2016.
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Click to get this free report Fidelity High Dividend ETF (FDVV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. When you look at individual holdings, Apple Inc (AAPL) accounts for about 6.37% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Fidelity High Dividend ETF (FDVV) is a smart beta exchange traded fund launched on 09/12/2016.
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Click to get this free report Fidelity High Dividend ETF (FDVV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. When you look at individual holdings, Apple Inc (AAPL) accounts for about 6.37% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Fidelity High Dividend ETF (FDVV) is a smart beta exchange traded fund launched on 09/12/2016.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 6.37% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Fidelity High Dividend ETF (FDVV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Fidelity High Dividend ETF (FDVV) is a smart beta exchange traded fund launched on 09/12/2016.
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13640.0
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2023-09-15 00:00:00 UTC
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EXCLUSIVE-TSMC tells vendors to delay chip equipment deliveries -sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-tsmc-tells-vendors-to-delay-chip-equipment-deliveries-sources-0
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By Sam Nussey, Fanny Potkin and Toby Sterling
TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said.
The instruction by TSMC, which is grappling with delays at its $40 billion chip factory in Arizona, is aimed at controlling costs and reflects the company's growing caution about the outlook for demand, the sources said.
Suppliers currently expect the delay to be short-term, the sources said, declining to be named as the information is not public.
TSMC said it does not comment on "market rumour".
The company referred Reuters to comments by CEO C.C. Wei in July that weaker economic conditions, slower recovery in China and softer end-market demand is making customers more cautious and more mindful of controlling inventory.
Companies affected by the instruction to delay include Dutch firm ASML ASML.AS, which makes lithography equipment essential for high-end chipmaking, one of the sources said.
In an interview with Reuters last week, ASML CEO Peter Wennink said some orders for its high-end tools have been pushed back, without naming customers, and that he expected it would be a "short-term management" issue.
ASML, Europe's most valuable tech listed company, is operating at maximum capacity and overall sales are forecast to grow 30% this year.
"We've had several (news) reports about fab readiness. Not only in Arizona ... but also in Taiwan," Wennink told Reuters, referring to preparations for chip manufacturing.
Shares in ASML declined 2.2% with the company the worst performer among the euro zone STOXXE50 .STOXX50E index.
ASM International ASMI.AS, a smaller equipment firm that is also a supplier to TSMC, fell 4.2% with BE Semiconductor BESI.AS, a packaging equipment firm, down 2.4%.
TSMC has been forced to push back production at the Arizona plant by a year to 2025, as it struggled to recruit workers and faced pushback from unions on efforts to bring in workers from Taiwan.
"If you ship a lot of people from Taiwan to help build a factory in Arizona, they're not working somewhere else. So this is kind of a double whammy," Wennink said.
TSMC Chairman Mark Liu said last week there had been "tremendous" improvement at the Arizona site in the last five months.
CHIP CYCLE WORRIES
The Taiwanese chip giant is not alone in worrying a bounce back in demand may take longer than expected.
Apple, a key TSMC customer, launched a this week that included a faster chip, but it did not raise prices, reflecting the global smartphone slump.
Media reports that Beijing has ordered some government employees to stop using iPhones at work, and the launch by tech firm Huawei of a flagship phone using Chinese-made chips, is causing further unease at TSMC, one of the sources said.
TSMC used to make chips for Huawei but suspended supplies after Washington imposed sanctions on the Chinese firm. Analysts have found Huawei worked with Chinese contract chipmaker Semiconductor Manufacturing International Corp (SMIC) 0981.HK to manufacture an advanced chip for its latest smartphone.
TSMC forecast in July a 10% slide in 2023 sales and as much as a 4% point drop in operating margin this quarter from the previous quarter, citing weak demand for smartphones and PCs and uncertainty about the market for artificial intelligence.
The chipmaker is also facing elevated capital expenditure, which increased 21% to $36 billion last year, from expansion plans put in place during the pandemic-driven chips boom.
It estimated in July that investment spending for this year would be at the lower end of a previous forecast of $32 billion to $36 billion, and said it expected a slower increase in the next few years.
(Reporting by Sam Nussey in Tokyo, Fanny Potkin in Singapore and Toby Sterling in Amsterdam; Editing by Miyoung Kim and Stephen Coates)
((sam.nussey@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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The instruction by TSMC, which is grappling with delays at its $40 billion chip factory in Arizona, is aimed at controlling costs and reflects the company's growing caution about the outlook for demand, the sources said. In an interview with Reuters last week, ASML CEO Peter Wennink said some orders for its high-end tools have been pushed back, without naming customers, and that he expected it would be a "short-term management" issue. Media reports that Beijing has ordered some government employees to stop using iPhones at work, and the launch by tech firm Huawei of a flagship phone using Chinese-made chips, is causing further unease at TSMC, one of the sources said.
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By Sam Nussey, Fanny Potkin and Toby Sterling TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said. In an interview with Reuters last week, ASML CEO Peter Wennink said some orders for its high-end tools have been pushed back, without naming customers, and that he expected it would be a "short-term management" issue. Analysts have found Huawei worked with Chinese contract chipmaker Semiconductor Manufacturing International Corp (SMIC) 0981.HK to manufacture an advanced chip for its latest smartphone.
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By Sam Nussey, Fanny Potkin and Toby Sterling TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said. The instruction by TSMC, which is grappling with delays at its $40 billion chip factory in Arizona, is aimed at controlling costs and reflects the company's growing caution about the outlook for demand, the sources said. Media reports that Beijing has ordered some government employees to stop using iPhones at work, and the launch by tech firm Huawei of a flagship phone using Chinese-made chips, is causing further unease at TSMC, one of the sources said.
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By Sam Nussey, Fanny Potkin and Toby Sterling TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said. Not only in Arizona ... but also in Taiwan," Wennink told Reuters, referring to preparations for chip manufacturing. It estimated in July that investment spending for this year would be at the lower end of a previous forecast of $32 billion to $36 billion, and said it expected a slower increase in the next few years.
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13641.0
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2023-09-15 00:00:00 UTC
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Credit Suisse Reiterates Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/credit-suisse-reiterates-apple-aapl-outperform-recommendation
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Fintel reports that on September 15, 2023, Credit Suisse reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 16.48% 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 16.48% from its latest reported closing price of 175.74.
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 6411 funds or institutions reporting positions in Apple. This is an increase of 22 owner(s) or 0.34% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.83%. Total shares owned by institutions increased in the last three months by 0.28% to 9,941,882K 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.
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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 15, 2023, Credit Suisse 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 8.83%. The put/call ratio of AAPL is 0.85, indicating a bullish outlook.
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Fintel reports that on September 15, 2023, Credit Suisse 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 8.83%. The put/call ratio of AAPL is 0.85, indicating a bullish outlook.
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Fintel reports that on September 15, 2023, Credit Suisse 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 8.83%. The put/call ratio of AAPL is 0.85, indicating a bullish outlook.
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Fintel reports that on September 15, 2023, Credit Suisse 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 8.83%. The put/call ratio of AAPL is 0.85, indicating a bullish outlook.
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2023-09-15 00:00:00 UTC
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EXCLUSIVE-TSMC tells vendors to delay chip equipment deliveries - sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-tsmc-tells-vendors-to-delay-chip-equipment-deliveries-sources-1
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By Sam Nussey, Fanny Potkin and Toby Sterling
TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said.
Shares in TSMC suppliers including Dutch-based ASML ASML.AS declined following the Reuters report.
The instruction by TSMC, which is grappling with delays at its $40 billion chip factory in Arizona, is aimed at controlling costs and reflects the company's growing caution about the outlook for demand, the sources said.
Suppliers currently expect the delay to be short-term, the sources said, declining to be named as the information is not public.
TSMC said it does not comment on what it called "market rumour".
The company referred Reuters to comments by CEO C.C. Wei in July that weaker economic conditions, a slower recovery in China and softer end-market demand is making customers more cautious and more mindful of controlling inventory.
Companies affected by the instruction to delay include ASML, which makes lithography equipment essential for high-end chipmaking, one of the sources said.
In an interview with Reuters last week, ASML CEO Peter Wennink said some orders for its high-end tools have been pushed back, without saying who by, and that he expected it would be a "short-term management" issue.
ASML, Europe's most valuable tech listed company, is operating at maximum capacity and overall sales are forecast to grow 30% this year.
"We've had several (news) reports about fab readiness. Not only in Arizona ... but also in Taiwan," Wennink told Reuters, referring to preparations for chip manufacturing.
Shares in ASML declined 2.5%, making the company the biggest loser in the euro zone STOXXE50 .STOXX50E index.
ASM International ASMI.AS, a smaller equipment firm that is also a supplier to TSMC, fell 5.6%, with BE Semiconductor BESI.AS, a packaging equipment firm, down 3.3%.
Major U.S. semiconductor firms Applied Materials AMAT.O , KLA Corp KLAC.O and Lam Research LRCX.O were all down between 2.2% and 2.6% in premarket trading.
Analyst Michael Roeg of Degroof Petercam said he was not surprised by the selloff.
"There has been a lot of excitement about artificial intelligence and the implications for the semiconductor industry," he said, adding that AI was positive for TSMC, which makes chips for NVIDIA NVDA.O.
"However the strength in demand for AI chips is not strong enough to compensate (for) what is happening in other segments."
He cited mobile phone, laptop, industrial and more recently automotive chips as problem areas. "That's a lot of end markets that are sluggish," he said.
DOUBLE WHAMMY
TSMC has been forced to push back production at the Arizona plant by a year to 2025, as it struggled to recruit workers and faced pushback from unions on efforts to bring in workers from Taiwan.
"If you ship a lot of people from Taiwan to help build a factory in Arizona, they're not working somewhere else. So this is kind of a double whammy," Wennink said.
TSMC Chairman Mark Liu said last week there had been "tremendous" improvement at the Arizona site in the last five months.
The Taiwanese chip giant is not alone in worrying a bounceback in demand may take longer than expected.
Apple AAPL.O, a key TSMC customer, launched a this week that included a faster chip, but it did not raise prices, reflecting the global smartphone slump.
Media reports that Beijing has ordered some government employees to stop using iPhones at work, and the launch by tech firm Huawei of a flagship phone using Chinese-made chips, is causing further unease at TSMC, one of the sources said.
TSMC used to make chips for Huawei but suspended supplies after Washington imposed sanctions on the Chinese firm. Analysts have found Huawei worked with Chinese contract chipmaker Semiconductor Manufacturing International Corp (SMIC) 0981.HK to manufacture an advanced chip for its latest smartphone.
TSMC forecast in July a 10% slide in 2023 sales and as much as a 4% point drop in operating margin this quarter from the previous quarter, citing weak demand for smartphones and PCs and uncertainty about the market for artificial intelligence.
The chipmaker is also facing elevated capital expenditure, which increased 21% to $36 billion last year, from expansion plans put in place during the pandemic-driven chips boom.
It estimated in July that investment spending for this year would be at the lower end of a previous forecast of $32 billion to $36 billion, and said it expected a slower increase in the next few years.
(Reporting by Sam Nussey in Tokyo, Fanny Potkin in Singapore and Toby Sterling in Amsterdam; Editing by Miyoung Kim and Stephen Coates)
((sam.nussey@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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Apple AAPL.O, a key TSMC customer, launched a this week that included a faster chip, but it did not raise prices, reflecting the global smartphone slump. The instruction by TSMC, which is grappling with delays at its $40 billion chip factory in Arizona, is aimed at controlling costs and reflects the company's growing caution about the outlook for demand, the sources said. Wei in July that weaker economic conditions, a slower recovery in China and softer end-market demand is making customers more cautious and more mindful of controlling inventory.
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Apple AAPL.O, a key TSMC customer, launched a this week that included a faster chip, but it did not raise prices, reflecting the global smartphone slump. By Sam Nussey, Fanny Potkin and Toby Sterling TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said. Shares in TSMC suppliers including Dutch-based ASML ASML.AS declined following the Reuters report.
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Apple AAPL.O, a key TSMC customer, launched a this week that included a faster chip, but it did not raise prices, reflecting the global smartphone slump. By Sam Nussey, Fanny Potkin and Toby Sterling TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC 2330.TW has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said. The instruction by TSMC, which is grappling with delays at its $40 billion chip factory in Arizona, is aimed at controlling costs and reflects the company's growing caution about the outlook for demand, the sources said.
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Apple AAPL.O, a key TSMC customer, launched a this week that included a faster chip, but it did not raise prices, reflecting the global smartphone slump. Shares in TSMC suppliers including Dutch-based ASML ASML.AS declined following the Reuters report. Not only in Arizona ... but also in Taiwan," Wennink told Reuters, referring to preparations for chip manufacturing.
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2023-09-15 00:00:00 UTC
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Netflix (NFLX) Expands India Presence With YRF Partnership
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-expands-india-presence-with-yrf-partnership
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nan
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Netflix NFLX is keeping no stone unturned to strengthen its position in India. The streaming giant recently entered into a multi-year partnership with a popular production house — Yash Raj Films (YRF) — to create films and series for audiences in India and across the world.
Netflix-YRF’s first project is the four-part series — The Railway Men — starring R. Madhavan, Kay Kay Menon, Divyendu Sharma and Babil Khan, directed by debutant director Shiv Rawail.
The second film, Maharaj, marks the debut of actor Junaid Khan and also stars Jaideep Ahlawat, Sharvari & Shalini Pandey and is directed by Siddharth P. Malhotra, who is well-known for Hichki.
Partnerships to Aid India Expansion
YRF expands the list of partners Netflix has added to its content creator base in recent times. The company recently inked a creative partnership with acclaimed director Neeraj Pandey’s Friday Storytellers LLP, the digital content production arm of Friday Filmworks.
Netflix and Neeraj Pandey have already collaborated for Khakee: The Bihar Chapter, a cop-thriller that was one of India’s Top ten TV shows for more than five months and became one of the longest-trending shows on Netflix in India. Khakee’s second season will be the first series to be released through the latest collaboration.
Netflix’s focus on developing regional content has been a key catalyst in attracting new subscribers. In terms of Indian audience, apart from Khakee: The Bihar Chapter, it has released a plethora of new shows including Friday Night Plan, Guns & Gulaabs, The Hunt for Veerappan, Choona, Kohrra, Lust Stories 2, Scoop, Rana Naidu, Class, Mission Majnu and more.
Upcoming content includes Khufiya, which stars well-known actress Tabu and is directed by acclaimed director Vishal Bhardwaj. Other content includes JAANE JAAN (Sep 21), starring Kareena Kapoor Khan and directed by Sujoy Ghosh, well-known for his thriller movies. The much-anticipated movie, The Archies, is now set to launch on Dec 7.
Netflix’s Prospects Bright in 2023
Netflix’s shares have risen 35.8% year to date, outperforming the Zacks Consumer Discretionary sector’s return of 8.6%. It also outperformed Apple AAPL and Disney DIS but underperformed Amazon AMZN.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Shares of Apple and Amazon have returned 35.3% and 72.3%, respectively, on a year-to-date basis. Disney 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, particularly in India and Korea. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix now expects revenue growth to accelerate in the second half of 2023, driven by the launch of paid sharing initiative in addition to 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 also on a forex-neutral basis.
The Zacks Consensus Estimate for Netflix’s third-quarter revenues is pegged at $8.53 billion, indicating 7.6% year-over-year growth. The consensus mark for earnings is pegged at $3.49 per share, up 1.7% over the past 30 days.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It also outperformed Apple AAPL and Disney DIS but underperformed Amazon AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The second film, Maharaj, marks the debut of actor Junaid Khan and also stars Jaideep Ahlawat, Sharvari & Shalini Pandey and is directed by Siddharth P. Malhotra, who is well-known for Hichki.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. It also outperformed Apple AAPL and Disney DIS but underperformed Amazon AMZN. The company recently inked a creative partnership with acclaimed director Neeraj Pandey’s Friday Storytellers LLP, the digital content production arm of Friday Filmworks.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. It also outperformed Apple AAPL and Disney DIS but underperformed Amazon AMZN. Netflix and Neeraj Pandey have already collaborated for Khakee: The Bihar Chapter, a cop-thriller that was one of India’s Top ten TV shows for more than five months and became one of the longest-trending shows on Netflix in India.
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It also outperformed Apple AAPL and Disney DIS but underperformed Amazon AMZN. 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. Total revenues are anticipated to be $8.52 billion, suggesting growth of 7% year over year and also on a forex-neutral basis.
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13644.0
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2023-09-15 00:00:00 UTC
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Prediction: 2 Artificial Intelligence (AI) Growth Stocks That Will Join Apple and Microsoft in the $2 Trillion Club by 2033
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AAPL
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https://www.nasdaq.com/articles/prediction%3A-2-artificial-intelligence-ai-growth-stocks-that-will-join-apple-and-microsoft
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One of the biggest shifts seen in the stock market over the past 20 years is the increasing supremacy of technology stocks. Roughly two decades ago, General Electric and ExxonMobil were the pinnacle of market caps, valued at $319 billion and $283 billion, respectively.
Now, the current market leaders help illustrate the ongoing secular shift. Technology leaders Apple and Microsoft are the top dogs, with market caps of $2.76 trillion and $2.47 trillion, respectively, at this writing. Additional evidence abounds, as six of the 10 largest market caps belong to industry-leading technology companies.
Advances in artificial intelligence (AI) have been the primary catalysts driving the stock market higher so far this year and will likely fuel the next cohort of "trillionaires." Here are my predictions for two AI growth stocks that will be swept up by this secular tailwind and join this exclusive society over the next 10 years -- and maybe much sooner.
Image source: Getty Images.
1. Amazon
Amazon (NASDAQ: AMZN) currently has a market cap of $1.46 trillion, and many believe it's just a matter of time before the e-commerce giant joins the $2 trillion club. To reach that benchmark, the stock would need to increase by roughly 37% from Tuesday's closing price. That works out to about 4% gains annually over the coming decade, a bar it should clear with ease.
It's worth noting that the company nearly achieved this in July 2021, with a market cap of roughly $1.9 trillion, before economic headwinds took a toll. Amazon then earned the dubious distinction of becoming the first company in U.S. history to lose more than $1 trillion in market cap over the next 18 months.
Yet there are numerous catalysts that could fuel its growth. Weakening consumer spending in the midst of a historic downturn slowed its online retail growth to a crawl. There are signs the economy has finally turned the corner, which could, in turn, boost the company's e-commerce sales. Cooling inflation will likely spark additional consumer spending.
Last year, Amazon represented roughly 38% of e-commerce sales in the U.S., more than its next 14 competitors combined. As the leading provider of online retail, it is well positioned to profit from the recovery.
Then there's the matter of cloud computing. Amazon Web Services (AWS) is the worldwide leader in cloud infrastructure services, controlling about 30% of the market, according to data compiled by market analyst firm Canalys.
Many businesses reined in cloud spending in response to the recent economic unpleasantness, but if the worst is over (and many believe it is), spending will resume, profiting Amazon along the way.
The emergence of generative AI earlier this year, which promises vast gains in productivity, has sparked a mad dash to adopt this next-generation technology. But the cost to create these systems and the large language models that power them is prohibitive to all but the most well-funded companies.
Cloud providers, including AWS, were quick to recognize the opportunity and are scrambling to make generative AI available on their platforms. There will no doubt be a commensurate uptick in cloud spending to access these AI algorithms, boosting Amazon's fortunes.
While estimates vary, even conservative forecasts suggest there are trillions of dollars at stake. Analysts at Morgan Stanley suggest generative AI represents a $6 trillion opportunity, while Goldman Sachs pegs the market at almost $7 trillion. Whatever the case, accelerating adoption of AI will no doubt result in a commensurate uptick in cloud spending, which will be a boon to Amazon.
The rebound in digital retail along with the recovery of cloud spending (with a boost from AI) should give Amazon all the traction it needs to join the $2 trillion club, once and for all.
2. Meta Platforms
Meta Platforms (NASDAQ: META) currently has a market cap of $776 billion, and while some believe the stock will inevitably join the $2 trillion club, not everyone is in agreement.
The stock would need to increase by roughly 258% from Tuesday's closing price to reach that mark, which amounts to approximately 10% gains annually over the next 10 years. Given the stock price increase of 570% over the past decade, that's certainly within the realm of possibility.
One of the biggest hurdles is Meta's recent price spike, with the stock gaining more than 150% so far this year (as of this writing). Driving those gains are Meta's ambitious AI plans.
The company is working to develop an advanced generative AI system to rival that of OpenAI's ChatGPT, according to a report in The Wall Street Journal. Meta is using Nvidia's H-100 AI processors, and CEO Mark Zuckerberg's goal is for the system to be open source. Making the model free to all users would encourage collaboration, which could, in turn, supercharge development in the space.
Meta Platforms has a long history of employing AI technology to leverage the capabilities of its social media platforms. Its uses include targeted advertising, identifying subjects in photos, and surfacing the most-relevant content for users, among other functions.
Even without the AI connection, it's likely Meta Platforms would make its way into the $2 trillion club, based on the dominance of its social media platforms. More than 3 billion people visit one of Meta's quintet of apps each day: Facebook, Instagram, WhatsApp, Messenger, and Threads. This consistent audience fuels the company's digital advertising business, which generated revenue of roughly $114 billion last year, despite the worst downturn in more than a decade.
Meta's expanding social media empire and the rebound in digital ad revenue should provide plenty of resources to help the company achieve its AI ambitions, giving it the fuel it needs to join the $2 trillion club.
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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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Danny Vena has positions in Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Amazon.com, Apple, Goldman Sachs Group, Meta Platforms, 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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The emergence of generative AI earlier this year, which promises vast gains in productivity, has sparked a mad dash to adopt this next-generation technology. This consistent audience fuels the company's digital advertising business, which generated revenue of roughly $114 billion last year, despite the worst downturn in more than a decade. Meta's expanding social media empire and the rebound in digital ad revenue should provide plenty of resources to help the company achieve its AI ambitions, giving it the fuel it needs to join the $2 trillion club.
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This consistent audience fuels the company's digital advertising business, which generated revenue of roughly $114 billion last year, despite the worst downturn in more than a decade. 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. The Motley Fool has positions in and recommends Amazon.com, Apple, Goldman Sachs Group, Meta Platforms, Microsoft, and Nvidia.
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Amazon Amazon (NASDAQ: AMZN) currently has a market cap of $1.46 trillion, and many believe it's just a matter of time before the e-commerce giant joins the $2 trillion club. Meta Platforms Meta Platforms (NASDAQ: META) currently has a market cap of $776 billion, and while some believe the stock will inevitably join the $2 trillion club, not everyone is in agreement. 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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One of the biggest shifts seen in the stock market over the past 20 years is the increasing supremacy of technology stocks. Meta Platforms Meta Platforms (NASDAQ: META) currently has a market cap of $776 billion, and while some believe the stock will inevitably join the $2 trillion club, not everyone is in agreement. The Motley Fool has positions in and recommends Amazon.com, Apple, Goldman Sachs Group, Meta Platforms, Microsoft, and Nvidia.
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13645.0
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2023-09-15 00:00:00 UTC
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Arm IPO: Should Investors Buy Into the Hype?
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AAPL
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https://www.nasdaq.com/articles/arm-ipo%3A-should-investors-buy-into-the-hype
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nan
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nan
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Undoubtedly one of this week’s biggest developments, chip designer Arm Holdings ARM debuted on the Nasdaq on Thursday. Shares had a strong showing, soaring more than 20% in yesterday’s session, listed initially at $51 per share.
It’s an exciting time for investors, especially following a barren 2022 landscape for IPOs. SoftBank, the controller of Arm Holdings (90% stake), took the company private back in 2016. But given the hype, what is there to know about the company? Let’s take a closer look.
Arm Holdings Overview
Arm Holdings constructs, develops, and licenses high-performance, low-cost, energy-efficient IP solutions for CPUs, GPUs, NPUs, and other interconnected technologies.
The company’s product portfolio is relied upon among many high-profile semiconductor companies and other original equipment manufacturers (OEMs). Breaking down the business in simpler terms, Arm licenses instruction sets for modern chips to partners who utilize it for their preferred applications.
Tech Heavyweights Are Interested
Many technology heavyweights, a list that includes Advanced Micro Devices AMD, Apple AAPL, Alphabet GOOGL, and NVIDIA NVDA, all expressed interest in ARM shares, further stating the excitement surrounding the IPO.
These heavyweights have led the market’s rebound in 2023, as we can see below.
Image Source: Zacks Investment Research
Just in early September, Arm unveiled it struck a new long-term agreement with Apple extending beyond 2040, continuing an already long-standing relationship. Apple has and continues to use Arm architecture extensively within the iPhone, iPad, and Macs.
And in a recent SEC filing, Arm Holdings revealed that more than 260 companies reported shipping Arm-based chips in the fiscal year ended March 31st, 2023, a list that includes NVIDIA, Advanced Micro Devices, and Qualcomm QCOM.
We’re all familiar with the AI hype surrounding NVIDIA in 2023, causing shares to soar. Interestingly, Arm Holdings is already working with NVIDIA to deploy technology to run AI workloads. Arm’s CPUs presently run AI and ML (machine learning) workloads in billions of devices.
Analysts have become notably bullish on NVDA’s outlook amid the artificial intelligence hype, helping land it into the highly-coveted Zacks Rank #1 (Strong Buy). As we can see below, the revisions trends have been potent across all timeframes, and analysts have been in full agreement.
Image Source: Zacks Investment Research
Bottom Line
With all of the attention surrounding Arm Holdings’ ARM IPO, it’s worthwhile to take a quick look under the hood of the company to understand the hype better.
And it’s easier to understand the excitement when seeing which companies have also shown interest, a list that includes the likes of many investor-favorite technology heavyweights.
It’s more than reasonable to assume the excitement surrounding shares will last some time, especially following Wall Street’s obsession with its new shiny toy, artificial intelligence.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
ARM Holdings PLC (ARM): Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech Heavyweights Are Interested Many technology heavyweights, a list that includes Advanced Micro Devices AMD, Apple AAPL, Alphabet GOOGL, and NVIDIA NVDA, all expressed interest in ARM shares, further stating the excitement surrounding the IPO. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ARM Holdings PLC (ARM): Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Just in early September, Arm unveiled it struck a new long-term agreement with Apple extending beyond 2040, continuing an already long-standing relationship.
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Tech Heavyweights Are Interested Many technology heavyweights, a list that includes Advanced Micro Devices AMD, Apple AAPL, Alphabet GOOGL, and NVIDIA NVDA, all expressed interest in ARM shares, further stating the excitement surrounding the IPO. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ARM Holdings PLC (ARM): Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. And in a recent SEC filing, Arm Holdings revealed that more than 260 companies reported shipping Arm-based chips in the fiscal year ended March 31st, 2023, a list that includes NVIDIA, Advanced Micro Devices, and Qualcomm QCOM.
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Tech Heavyweights Are Interested Many technology heavyweights, a list that includes Advanced Micro Devices AMD, Apple AAPL, Alphabet GOOGL, and NVIDIA NVDA, all expressed interest in ARM shares, further stating the excitement surrounding the IPO. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ARM Holdings PLC (ARM): Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Bottom Line With all of the attention surrounding Arm Holdings’ ARM IPO, it’s worthwhile to take a quick look under the hood of the company to understand the hype better.
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Tech Heavyweights Are Interested Many technology heavyweights, a list that includes Advanced Micro Devices AMD, Apple AAPL, Alphabet GOOGL, and NVIDIA NVDA, all expressed interest in ARM shares, further stating the excitement surrounding the IPO. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ARM Holdings PLC (ARM): Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. But given the hype, what is there to know about the company?
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13646.0
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2023-09-14 00:00:00 UTC
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What TSMC, ARM, AMD, Apple, and Nvidia Stock Investors Should Know About Recent Chip Updates
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AAPL
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https://www.nasdaq.com/articles/what-tsmc-arm-amd-apple-and-nvidia-stock-investors-should-know-about-recent-chip-updates
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nan
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nan
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In today's video, I discuss various semiconductor stocks and recent updates. Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of Sept. 14, 2023. The video was published on Sept. 14, 2023.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Jose Najarro 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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Check out the short video to learn more, consider subscribing, and click the special offer link below. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing.
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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 11, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing.
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10 stocks we like better than Taiwan Semiconductor Manufacturing When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of September 11, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! See the 10 stocks *Stock Advisor returns as of September 11, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
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13647.0
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2023-09-14 00:00:00 UTC
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SoftBank's Arm set to debut on Nasdaq after biggest IPO since 2021
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AAPL
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https://www.nasdaq.com/articles/softbanks-arm-set-to-debut-on-nasdaq-after-biggest-ipo-since-2021
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nan
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Adds analyst comment on IPO enthusiasm in paragraph 7, chip stock movement in paragraph 8, background throughout
Sept 14 (Reuters) - SoftBank's chip designer Arm Holdings ARM.O is set to debut on the Nasdaq on Thursday, in what is expected to be the biggest test for the U.S. IPO market after a listing drought that lasted for nearly 16 months.
The company on Wednesday priced its offering of 95.5 million American Depositary shares at $51 apiece, fetching $4.87 billion for SoftBank at a valuation of $54.5 billion, with participation from cornerstone investors including Apple AAPL.O, Intel INTC.O and Alphabet GOOGL.O.
Arm will be back as a publicly traded firm after seven years. Its shares used to trade on the London Stock Exchange and the Nasdaq from 1998 until 2016 when it was taken private by SoftBank in a $32 billion deal.
Hopes of a revival in the IPO market largely depend on the success of the high-profile listings of Arm and other marquee startups, including grocery delivery firm Instacart and marketing firm Klaviyo.
Investors have over the last year begun to pay more attention to profitability, shunning cash-burning startups that had in 2021 fetched lofty valuations on the back of a record year for deals.
Arm has positioned itself as indispensable in the tech hardware ecosystem as its chip designs power nearly every smartphone in the world, from Apple's iPhones to Samsung's 005930.KS Android-based devices.
"Despite some concerns about the company's exposure to numerous risks in China, it's not stopped a juggernaut of enthusiasm, with the IPO oversubscribed multiple times," said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
In the run-up to Arm's debut, chip stocks including Nvidia NVDA.O, Intel INTC.O, Advanced Micro Devices AMD.O, Broadcom AVGO.O, Qualcomm QCOM.O and Micron Technology MU.O were up between 0.6% and 1.2% in premarket trading.
Arm told potential investors in New York last Thursday that the cloud computing market, of which it has only a 10% share and therefore more room to expand, could grow at an annual rate of 17% through 2025, mainly due to advances in artificial intelligence.
The global automotive market, of which it commands 41%, is expected to expand by 16%, compared with just 6% growth for the mobile market.
Arm also told investors its royalty fees, which account for most of its revenue, were accumulating since it started collecting them in the early 1990s.
Royalty revenue came in at $1.68 billion at the latest fiscal year, up from $1.56 billion a year ago.
Barclays BARC.L, Goldman Sachs GS.N, JPMorgan Chase JPM.N and Mizuho Financial Group 8411.T are the lead underwriters.
(Reporting by Manya Saini and Niket Nishant in Bengaluru; Editing by Arun Koyyur)
((Niket.Nishant@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 company on Wednesday priced its offering of 95.5 million American Depositary shares at $51 apiece, fetching $4.87 billion for SoftBank at a valuation of $54.5 billion, with participation from cornerstone investors including Apple AAPL.O, Intel INTC.O and Alphabet GOOGL.O. "Despite some concerns about the company's exposure to numerous risks in China, it's not stopped a juggernaut of enthusiasm, with the IPO oversubscribed multiple times," said Susannah Streeter, head of money and markets, Hargreaves Lansdown. In the run-up to Arm's debut, chip stocks including Nvidia NVDA.O, Intel INTC.O, Advanced Micro Devices AMD.O, Broadcom AVGO.O, Qualcomm QCOM.O and Micron Technology MU.O were up between 0.6% and 1.2% in premarket trading.
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The company on Wednesday priced its offering of 95.5 million American Depositary shares at $51 apiece, fetching $4.87 billion for SoftBank at a valuation of $54.5 billion, with participation from cornerstone investors including Apple AAPL.O, Intel INTC.O and Alphabet GOOGL.O. Adds analyst comment on IPO enthusiasm in paragraph 7, chip stock movement in paragraph 8, background throughout Sept 14 (Reuters) - SoftBank's chip designer Arm Holdings ARM.O is set to debut on the Nasdaq on Thursday, in what is expected to be the biggest test for the U.S. IPO market after a listing drought that lasted for nearly 16 months. In the run-up to Arm's debut, chip stocks including Nvidia NVDA.O, Intel INTC.O, Advanced Micro Devices AMD.O, Broadcom AVGO.O, Qualcomm QCOM.O and Micron Technology MU.O were up between 0.6% and 1.2% in premarket trading.
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The company on Wednesday priced its offering of 95.5 million American Depositary shares at $51 apiece, fetching $4.87 billion for SoftBank at a valuation of $54.5 billion, with participation from cornerstone investors including Apple AAPL.O, Intel INTC.O and Alphabet GOOGL.O. Adds analyst comment on IPO enthusiasm in paragraph 7, chip stock movement in paragraph 8, background throughout Sept 14 (Reuters) - SoftBank's chip designer Arm Holdings ARM.O is set to debut on the Nasdaq on Thursday, in what is expected to be the biggest test for the U.S. IPO market after a listing drought that lasted for nearly 16 months. Hopes of a revival in the IPO market largely depend on the success of the high-profile listings of Arm and other marquee startups, including grocery delivery firm Instacart and marketing firm Klaviyo.
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The company on Wednesday priced its offering of 95.5 million American Depositary shares at $51 apiece, fetching $4.87 billion for SoftBank at a valuation of $54.5 billion, with participation from cornerstone investors including Apple AAPL.O, Intel INTC.O and Alphabet GOOGL.O. Adds analyst comment on IPO enthusiasm in paragraph 7, chip stock movement in paragraph 8, background throughout Sept 14 (Reuters) - SoftBank's chip designer Arm Holdings ARM.O is set to debut on the Nasdaq on Thursday, in what is expected to be the biggest test for the U.S. IPO market after a listing drought that lasted for nearly 16 months. Arm will be back as a publicly traded firm after seven years.
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13648.0
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2023-09-14 00:00:00 UTC
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Company News for Sep 14, 2023
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AAPL
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https://www.nasdaq.com/articles/company-news-for-sep-14-2023
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nan
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nan
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Shares of 3M Company MMM slumped 5.7% and became the biggest drag on the Dow Jones index, after the company warned of a slow growth environment in 2024 and gave a bleak forecast for its consumer and electronics segments for the rest of 2023.
Shares of Cracker Barrel Old Country Store, Inc. CBRL fell 3% after reporting fourth-quarter 2023 revenues of $836.7 million, missing the Zacks Consensus Estimate of $842.6 million.
American Electric Power Company, Inc.’s AEP shares jumped 1.9%, with utilities emerging as the biggest gainers of the day.
Shares of Apple Inc. AAPL slid a further 1.2%, continuing to fall for a second consecutive day after unveiling new iPhone models while not increasing the price range.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. AAPL slid a further 1.2%, continuing to fall for a second consecutive day after unveiling new iPhone models while not increasing the price range. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report To read this article on Zacks.com click here. American Electric Power Company, Inc.’s AEP shares jumped 1.9%, with utilities emerging as the biggest gainers of the day.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL slid a further 1.2%, continuing to fall for a second consecutive day after unveiling new iPhone models while not increasing the price range. Shares of Cracker Barrel Old Country Store, Inc. CBRL fell 3% after reporting fourth-quarter 2023 revenues of $836.7 million, missing the Zacks Consensus Estimate of $842.6 million.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL slid a further 1.2%, continuing to fall for a second consecutive day after unveiling new iPhone models while not increasing the price range. Shares of Cracker Barrel Old Country Store, Inc. CBRL fell 3% after reporting fourth-quarter 2023 revenues of $836.7 million, missing the Zacks Consensus Estimate of $842.6 million.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL slid a further 1.2%, continuing to fall for a second consecutive day after unveiling new iPhone models while not increasing the price range. American Electric Power Company, Inc.’s AEP shares jumped 1.9%, with utilities emerging as the biggest gainers of the day.
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13649.0
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2023-09-14 00:00:00 UTC
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Time to Buy Apple Stock on This Dip? Why China's Ban on Government iPhone Use Actually Means Very Little
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AAPL
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https://www.nasdaq.com/articles/time-to-buy-apple-stock-on-this-dip-why-chinas-ban-on-government-iphone-use-actually-means
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nan
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nan
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The headlines certainly sound daunting. The iPhone is Apple's ((NASDAQ: AAPL) single biggest source of revenue, and China is the company's single biggest market -- well, at least based on population. That's why The Wall Street Journal's recent report that Beijing is moving to bar China's government officials from using the iPhone for work purposes seems problematic. And that's why Apple shares are down to the tune of 8% from last week's high.
Don't be too quick to jump on the rhetoric's bandwagon, though. For now anyway, China's ban only applies to government employees' work phones. Chinese government employees don't account for a large percentage of the world's iPhone users.
Not enough to matter
How many of China's government workers currently use iPhones to help them do their jobs? Nobody knows the exact number. There are a couple of educated guesses, though. Wedbush analyst Dan Ives estimates the total is somewhere around 500,000, and while Bernstein analyst Toni Sacconaghi doesn't offer a specific number, he does say the governmental ban could reduce China's iPhone sales by as much as 5%. But that's just China.
No matter how you slice it, these just aren't meaningful numbers when compared to the rest of the world. Apple CEO Tim Cook's most recently disclosed figure was 1 billion actively used iPhones although that's a number from early 2021. More recent third-party estimates put the figure closer to 1.5 billion now. So this isn't devastating news.
It could get worse. While Beijing's ban on the use of iPhones is currently limited to government employees' governmental work, the initiative could be broadened to encourage Chinese consumers to purchase phones made there.
That kind of thing has certainly happened before. Just ask Apple. Back in 2014, China's state-owned news media called Apple's iPhone a threat to national security, souring what had been fast-growing sales of the device in the nascent market. Athletic apparel giant Nike and coffeehouse chain Starbucks have also been on the receiving end of Beijing's ire. Both companies obviously survived in the important market, but both were also rattled by the seemingly targeted efforts to support home-grown rivals.
Even so, the long-term risk here is minimal.
Even an expanded ban wouldn't be catastrophic
The graphic below puts things in perspective, illustrating where in the world Apple's revenue comes from and how much each product accounts for in the total. Greater China accounts for only about 20% of Apple's top line, while the iPhone makes up a little more than half of Apple's business.
Data source: Apple. Chart by author. Data for the first three quarters of the fiscal year ending in September.
Taking all of China's iPhone sales out of the mix threatens only about 10% of Apple's top line. A loss of that size would certainly be felt, but it would be far from fatal. Indeed, losing all business in China would be tough, yet still not catastrophic.
Then there's the data the charts above don't show. That's the relatively small smartphone market share Apple currently enjoys in China. Counterpoint Research notes the iPhone has accounted for only about one-fifth of the country's recent smartphone shipments since early 2022, versus more than a 50% market share within the United States and 30% in Europe.
In other words, China's iPhone business isn't the same kind of profit center it is in most other parts of the world. And government officials make up only a fraction of this small share of China's smartphone market.
Or look at it from the other direction. While Apple's share of China's smartphone market isn't enormous, it's still the phone of choice for roughly one-fifth of the 1 billion people in China who presently own a smartphone, according to consumer research company Toluna. That would put China's consumer/citizen iPhone usage in the ballpark of 200 million. That's a far cry from Wedbush's estimate of half a million government officials currently using the Apple-made device.
And for the record, iPhone users are just as fanatic about their devices in China as in most other parts of the world. Taking them away altogether could prove to be very (and needlessly) politically unpopular.
Must have been a slow news day
Thefinancial newsmedia clearly took this ball and ran with it, with too few of them asking if there was a good reason to do so.
But there's far more bark than bite with China's ban on governmental use of the iPhone. Or, as Morgan Stanley analyst Erik Woodring put it, "We'd conclude Apple's recent stock move is indeed overdone as it implies Apple loses 70% of its iPhone shipments in China, a highly draconian and unlikely scenario."
If this is the only thing preventing you from stepping into a position -- or if it prompted you out of one -- don't be afraid to buy Apple or buy it back. This company is still the same juggernaut it was just a week ago.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 2023
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Nike, and Starbucks. The Motley Fool recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The iPhone is Apple's ((NASDAQ: AAPL) single biggest source of revenue, and China is the company's single biggest market -- well, at least based on population. While Beijing's ban on the use of iPhones is currently limited to government employees' governmental work, the initiative could be broadened to encourage Chinese consumers to purchase phones made there. Back in 2014, China's state-owned news media called Apple's iPhone a threat to national security, souring what had been fast-growing sales of the device in the nascent market.
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The iPhone is Apple's ((NASDAQ: AAPL) single biggest source of revenue, and China is the company's single biggest market -- well, at least based on population. While Apple's share of China's smartphone market isn't enormous, it's still the phone of choice for roughly one-fifth of the 1 billion people in China who presently own a smartphone, according to consumer research company Toluna. That's a far cry from Wedbush's estimate of half a million government officials currently using the Apple-made device.
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The iPhone is Apple's ((NASDAQ: AAPL) single biggest source of revenue, and China is the company's single biggest market -- well, at least based on population. Greater China accounts for only about 20% of Apple's top line, while the iPhone makes up a little more than half of Apple's business. While Apple's share of China's smartphone market isn't enormous, it's still the phone of choice for roughly one-fifth of the 1 billion people in China who presently own a smartphone, according to consumer research company Toluna.
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The iPhone is Apple's ((NASDAQ: AAPL) single biggest source of revenue, and China is the company's single biggest market -- well, at least based on population. But that's just China. Just ask Apple.
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13650.0
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2023-09-14 00:00:00 UTC
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Keybanc Reiterates Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/keybanc-reiterates-apple-aapl-overweight-recommendation
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nan
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nan
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Fintel reports that on September 14, 2023, Keybanc reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 17.50% 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 17.50% from its latest reported closing price of 174.21.
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 6410 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 4.13%, an increase of 8.79%. Total shares owned by institutions increased in the last three months by 0.28% to 9,941,866K shares.
The put/call ratio of AAPL is 0.88, 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 14, 2023, Keybanc reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.79%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on September 14, 2023, Keybanc reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.79%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on September 14, 2023, Keybanc reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.79%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on September 14, 2023, Keybanc reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.79%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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13651.0
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2023-09-14 00:00:00 UTC
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US alleges Google got rich because people stick with search defaults
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AAPL
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https://www.nasdaq.com/articles/us-alleges-google-got-rich-because-people-stick-with-search-defaults
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nan
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nan
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By Diane Bartz
WASHINGTON, Sept 14 (Reuters) - The Justice Department will press its argument Thursday that Google sought to strike agreements with mobile carriers to win powerful default positions on smartphones to dominate search in an antitrust trial that could change the future of the internet.
The government will wrap up questioning Thursday of Antonio Rangel, who teaches behavioral biology at the California Institute of Technology. Other witnesses will be James Kolotouros, for Google, and Brian Higgins, from Verizon Communications VZ.N.
The government says the Alphabet Inc GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to fend off rivals and keep its search engine market share near 90%.
The government has also alleged that Google illegally took steps to protect communications about the payments.
The government called witnesses on Tuesday and Wednesday to show that Google, as far back as the mid-2000s, sought to attract a large number of search queries by winning default status on mobile devices. Another witness, Rangel, discussed how powerful default status was, although data he used to show this was largely redacted.
Google's clout in search, the government alleges, has helped Google build monopolies in some aspects of online search advertising. Search is free so Google makes money through advertising.
Google attorney John Schmidtlein said in opening arguments on Tuesday that the government was wrong to say that Google broke the law to hold onto its massive market share, suggesting that its search engine was wildly popular because of its quality and that the payments were fair compensation for partners.
If Google is found to have broken the law, U.S. District Judge Amit Mehta, who is deciding the case, will then decide how best to resolve it. He may decide simply to order Google to stop practices he has found to be illegal or he may order Google to sell assets.
The fight has major implications for Big Tech, which has been accused of buying or strangling small rivals but has defended itself by emphasizing that its services are free, as in the case of Google, or inexpensive, as in the case of Amazon.com AMZN.O.
Previous major antitrust trials include Microsoft MSFT.O, filed in 1998, and AT&T, filed in 1974. The AT&T breakup in 1982 is credited with paving the way for the modern cell phone industry, while the fight with Microsoft is credited with opening space for Google and others on the internet.
(Reporting by Diane Bartz Editing by Mark Potter)
((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 says the Alphabet Inc GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to fend off rivals and keep its search engine market share near 90%. By Diane Bartz WASHINGTON, Sept 14 (Reuters) - The Justice Department will press its argument Thursday that Google sought to strike agreements with mobile carriers to win powerful default positions on smartphones to dominate search in an antitrust trial that could change the future of the internet. The government will wrap up questioning Thursday of Antonio Rangel, who teaches behavioral biology at the California Institute of Technology.
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The government says the Alphabet Inc GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to fend off rivals and keep its search engine market share near 90%. The government called witnesses on Tuesday and Wednesday to show that Google, as far back as the mid-2000s, sought to attract a large number of search queries by winning default status on mobile devices. Another witness, Rangel, discussed how powerful default status was, although data he used to show this was largely redacted.
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The government says the Alphabet Inc GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to fend off rivals and keep its search engine market share near 90%. By Diane Bartz WASHINGTON, Sept 14 (Reuters) - The Justice Department will press its argument Thursday that Google sought to strike agreements with mobile carriers to win powerful default positions on smartphones to dominate search in an antitrust trial that could change the future of the internet. Google's clout in search, the government alleges, has helped Google build monopolies in some aspects of online search advertising.
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The government says the Alphabet Inc GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to fend off rivals and keep its search engine market share near 90%. The government has also alleged that Google illegally took steps to protect communications about the payments. The government called witnesses on Tuesday and Wednesday to show that Google, as far back as the mid-2000s, sought to attract a large number of search queries by winning default status on mobile devices.
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13652.0
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2023-09-14 00:00:00 UTC
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Should You Sell Amazon Stock Now?
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AAPL
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https://www.nasdaq.com/articles/should-you-sell-amazon-stock-now
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nan
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nan
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Tech giant Amazon (NASDAQ: AMZN) has faced its share of headwinds recently. Last year, the company reported a rare net loss as it dealt with economic-related issues. Some investors may also be wary that its legendary founder, Jeff Bezos, is no longer the company's CEO. However, Amazon could now face a potentially more pressing matter: the ire of regulators. The U.S. Federal Trade Commission (FTC) -- whose job is to ensure a healthy and competitive market -- is rumored to be close to formally launching a lawsuit against Amazon. How should investors react to these developments?
Why is the FTC coming after Amazon?
The FTC's actions against Amazon date back to the so-called tech probe that began under the administration of former U.S. President Trump. The government decided to investigate several tech giants for alleged anticompetitive practices. The list included Amazon, Meta Platforms, Apple, and Alphabet. Regulators hoped to remedy these tech giants' alleged monopoly powers by breaking them into smaller businesses.
Turning to Amazon specifically, the FTC claims (among other things) that the company enrolled consumers into its Prime paid subscription program without their knowledge and made it difficult for them to cancel it, coerced or forced merchants to enroll in its logistics program, and blocked lower prices on competing e-commerce platforms. We don't yet know the precise details of the lawsuit, but whatever they are, the allegations against Amazon are serious and could lead to severe consequences for the company if it loses the case.
What should investors do?
We are still some ways away from Amazon being broken down into smaller companies (if that ever happens at all). In fact, at this point, there is no good reason to believe it will happen. Note that earlier this year, the tech giant agreed to pay $30 million (a pretty small sum for Amazon) to settle an FTC lawsuit regarding its voice assistant, Alexa, which allegedly violated users' privacy rights.
The upcoming lawsuit is a different matter. But the point is that it is often easier and cheaper for companies to settle these lawsuits without enduring a potentially long and financially draining legal process. It is worth keeping a close eye on how things evolve, but I remain unapologetically bullish on Amazon for now. The company is a leader in two industries with excellent growth prospects: e-commerce and cloud computing.
Amazon benefits from a competitive edge from multiple sources across both segments. Within e-commerce, Amazon's strong brand power (it is one of the most visited websites in the world), network effect, and established logistics business that allows it to offer free and fast shipping on plenty of items are all incredible strengths that keep consumers coming back.
The company's cloud computing segment arguably benefits from high switching costs. It is also a high-margin business that should improve the bottom line over the long run as it becomes a larger part of Amazon's total sales. Elsewhere, Amazon also has a hand in video and music streaming -- and unlike many of the pure-play leaders in these niches, the company can afford to grab market share by operating its music streaming service at a loss because the rest of its business will pick up the slack.
Amazon's long-term prospects are excellent and should look like the company's past.
AMZN Revenue (Quarterly) data by YCharts
Of course, none of this will matter if the FTC does prevail and the worst happens. But until there are good reasons to think regulators will get their way, it's not time to give up on Amazon stock just yet. That's why, as a shareholder, I am not even considering selling my shares of Amazon. If the company's stock falls once the lawsuit officially launches, that may create a decent entry point for opportunistic investors instead.
10 stocks we like better than Amazon.com
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 Amazon.com 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
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. Prosper Junior Bakiny has positions in Amazon.com and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S. Federal Trade Commission (FTC) -- whose job is to ensure a healthy and competitive market -- is rumored to be close to formally launching a lawsuit against Amazon. Note that earlier this year, the tech giant agreed to pay $30 million (a pretty small sum for Amazon) to settle an FTC lawsuit regarding its voice assistant, Alexa, which allegedly violated users' privacy rights. Within e-commerce, Amazon's strong brand power (it is one of the most visited websites in the world), network effect, and established logistics business that allows it to offer free and fast shipping on plenty of items are all incredible strengths that keep consumers coming back.
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Tech giant Amazon (NASDAQ: AMZN) has faced its share of headwinds recently. The list included Amazon, Meta Platforms, Apple, 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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Turning to Amazon specifically, the FTC claims (among other things) that the company enrolled consumers into its Prime paid subscription program without their knowledge and made it difficult for them to cancel it, coerced or forced merchants to enroll in its logistics program, and blocked lower prices on competing e-commerce platforms. Note that earlier this year, the tech giant agreed to pay $30 million (a pretty small sum for Amazon) to settle an FTC lawsuit regarding its voice assistant, Alexa, which allegedly violated users' privacy rights. 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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Why is the FTC coming after Amazon? Regulators hoped to remedy these tech giants' alleged monopoly powers by breaking them into smaller businesses. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them!
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2023-09-14 00:00:00 UTC
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3 Millionaire-Maker Growth Stocks to Buy in September
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AAPL
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https://www.nasdaq.com/articles/3-millionaire-maker-growth-stocks-to-buy-in-september
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the fast-paced world of technology, there are promising stocks with substantial growth potential. From artificial intelligence (AI) to clean energy, tech offers various opportunities. In a vast sea of stocks, only a handful consistently outperform, making them attractive for long-term investors. However, not all growth stocks are equal.
Here are three millionaire-maker undervalued tech stocks with explosive growth potential for investors to consider.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Meta Platforms (NASDAQ:META) advertising business, once a cash cow, faced a setback in 2022 with declining revenue and profits, causing a stock dip. In response, Meta initiated layoffs and refocused on its core ad business, showing early signs of recovery.
Meta’s Q1 2023 showed a 3% revenue growth turnaround from a negative 4% in Q4 2022. In Q2 2023, advertising revenue grew by 11%, with net income up 16%. Daily user engagement also improved, hinting at Meta’s recovery and future growth potential, including increased monetization in regions like Asia-Pacific.
Meta is heavily investing in its Reality Labs division, focused on the metaverse, despite incurring a $3.7 billion operating loss in the second quarter. This investment aligns with the potential of the metaverse, which could reshape various aspects of life, offering a potential $1 trillion industry.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Apple (NASDAQ:AAPL) is a top retirement stock. It boasts brand loyalty, a strong market position and a 39% year-to-date stock increase. With robust free cash flow and a growing services segment, it’s a resilient choice for retirement portfolios.
Services revenue surged 8%, reaching $21.2 billion. With Q3 earnings per share at $1.26 and a $24 billion return to shareholders, Apple’s financial strength is evident. Institutional investors acquired 229 million shares.
Investors remain confident in Apple due to its consistent growth, high margins and loyal customer base. In fact, Warren Buffett is a strong supporter of Apple, as noted by his long-term ownership in the world’s largest company. While Apple’s recent product reveal did leave some investors wanting (given the stock’s 2% decline immediately thereafter), Apple has shown its ability to innovate its way to growth in the past.
Apple faces some pressure as its second-quarter results showed declining sales across all devices, but AAPL stock rose substantially this year and over 200% over the last five years. People value their iPhones and Apple services, making the stock a blue-chip investment to hold.
Baidu (BIDU)
Baidu (NASDAQ:BIDU), a major player in China’s tech landscape, leads in search engines, AI and quantum computing, offering its quantum software — Qian Shi. It delivers Quantum as a Service with access to its 10-qubit quantum computer, enabling diverse applications, including lithium battery research and medical image analysis. Baidu’s Liang Xi platform expands quantum services through private, cloud and hardware channels, fostering compatibility with third-party quantum computers.
Baidu boosts its services with ERNIE and ERNIE Bot, enhancing Baidu Search for better user satisfaction. Innovations, like AI assistants and generative AI marketing, aim to retain users and improve ad effectiveness, driving revenue growth. Investing in BIDU has merits beyond AI. Baidu is China’s Google, dominating searches with a 76% market share.
Indeed, for investors looking for Google-like stability and profitability with the growth engine of AI and the backdrop of more than a billion consumers, BIDU stock is the place to be right now.
On the date of publication, Chris MacDonald has a long position in META, AAPL and BIDU. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
More From InvestorPlace
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The post 3 Millionaire-Maker Growth Stocks to Buy in 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: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is a top retirement stock. Apple faces some pressure as its second-quarter results showed declining sales across all devices, but AAPL stock rose substantially this year and over 200% over the last five years. On the date of publication, Chris MacDonald has a long position in META, AAPL and BIDU.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is a top retirement stock. Apple faces some pressure as its second-quarter results showed declining sales across all devices, but AAPL stock rose substantially this year and over 200% over the last five years. On the date of publication, Chris MacDonald has a long position in META, AAPL and BIDU.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is a top retirement stock. Apple faces some pressure as its second-quarter results showed declining sales across all devices, but AAPL stock rose substantially this year and over 200% over the last five years. On the date of publication, Chris MacDonald has a long position in META, AAPL and BIDU.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is a top retirement stock. Apple faces some pressure as its second-quarter results showed declining sales across all devices, but AAPL stock rose substantially this year and over 200% over the last five years. On the date of publication, Chris MacDonald has a long position in META, AAPL and BIDU.
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13654.0
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2023-09-14 00:00:00 UTC
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US alleges Google got rich because people stick with search defaults
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AAPL
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https://www.nasdaq.com/articles/us-alleges-google-got-rich-because-people-stick-with-search-defaults-0
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nan
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nan
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By Diane Bartz
WASHINGTON, Sept 14 (Reuters) - The Justice Department pressed its argument on Thursday that Google sought to strike agreements with mobile carriers to win powerful default positions on smartphones to dominate search in an antitrust trial that could change the future of the internet.
The government wrapped up questioning of Antonio Rangel, who teaches behavioral biology at the California Institute of Technology on Thursday morning. Rangel discussed how consumers were likely to stick with browsers on computers and mobile phones that were pre-installed as the default application.
The government says the Alphabet GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to be the default search engine on devices tofend off rivals and keep its search engine market share near 90%.
John Schmidtlein, a lawyer for Google, during cross-examination of Rangel, pointed out that a significant number of user search queries went to Google even when another search engine was the default.
A major part of Google's defense is that the government is wrong to say that Google broke the law to hold onto its massive market share because its search engine is wildly popular because of its quality, and that any payments to wireless companies or others were fair compensation for partners.
The fight has major implications for Big Tech, which has been accused of buying or strangling small rivals but has defended itself by emphasizing that its services are free, as in the case of Google, or inexpensive, as in the case of Amazon.com AMZN.O.
The government called witnesses on Tuesday and Wednesday to show that Google, as far back as the mid-2000s, sought to attract a large number of search queries by winning default status on mobile devices.
Google's clout in search, the government alleges, has helped Google build monopolies in some aspects of online search advertising. Search is free, so Google makes money through advertising.
The government has also alleged that Google illegally took steps to protect communications about the payments.
If Google is found to have broken the law, U.S. District Judge Amit Mehta, who is deciding the case, will then decide how to resolve it. He may order Google to stop practices he has found to be illegal or to sell assets.
Previous major antitrust trials include Microsoft MSFT.O, filed in 1998, and AT&T, filed in 1974. The AT&T breakup in 1982 is credited with paving the way for the modern cell phone industry, while the fight with Microsoft is credited with opening space for Google and others on the internet.
(Reporting by Diane Bartz Editing by Mark Potter and Richard Chang)
((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 says the Alphabet GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to be the default search engine on devices tofend off rivals and keep its search engine market share near 90%. By Diane Bartz WASHINGTON, Sept 14 (Reuters) - The Justice Department pressed its argument on Thursday that Google sought to strike agreements with mobile carriers to win powerful default positions on smartphones to dominate search in an antitrust trial that could change the future of the internet. The government wrapped up questioning of Antonio Rangel, who teaches behavioral biology at the California Institute of Technology on Thursday morning.
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The government says the Alphabet GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to be the default search engine on devices tofend off rivals and keep its search engine market share near 90%. The government called witnesses on Tuesday and Wednesday to show that Google, as far back as the mid-2000s, sought to attract a large number of search queries by winning default status on mobile devices. Previous major antitrust trials include Microsoft MSFT.O, filed in 1998, and AT&T, filed in 1974.
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The government says the Alphabet GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to be the default search engine on devices tofend off rivals and keep its search engine market share near 90%. John Schmidtlein, a lawyer for Google, during cross-examination of Rangel, pointed out that a significant number of user search queries went to Google even when another search engine was the default. A major part of Google's defense is that the government is wrong to say that Google broke the law to hold onto its massive market share because its search engine is wildly popular because of its quality, and that any payments to wireless companies or others were fair compensation for partners.
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The government says the Alphabet GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to be the default search engine on devices tofend off rivals and keep its search engine market share near 90%. The government called witnesses on Tuesday and Wednesday to show that Google, as far back as the mid-2000s, sought to attract a large number of search queries by winning default status on mobile devices. Google's clout in search, the government alleges, has helped Google build monopolies in some aspects of online search advertising.
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13655.0
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2023-09-14 00:00:00 UTC
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Is History Repeating Itself? 3 Growth Stocks to Buy for the Coming Bull Market
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AAPL
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https://www.nasdaq.com/articles/is-history-repeating-itself-3-growth-stocks-to-buy-for-the-coming-bull-market
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The thing about bear markets is they are so short-lived. Since 1928, the average bear market lasted just 15 months. A bull market, on the other hand, would go on for years. They last for three years on average.
Even better, since 1970, the typical bull market has raged for six years! The one that started in March 2009 after the Great Recession rampaged for 11 years. It was only stopped because of the pandemic and governments shutting down global economies. Even so, it was still the longest running bull market in history.
Investors are disappointed the current run-up in the Standards and Practices (S&P) 500 has yet to surpass its all-time high. That’s a necessary precursor to being officially declared a bull market. Yet that provides investors a great opportunity to buy in now.
What follows are three must-own growth stocks you’ll kick yourself for not buying for the next bull market.
Growth Stocks to Buy for the Coming Bull Market: Warner Bros Discovery (WBD)
Source: Ingus Kruklitis / Shutterstock.com
Movie and TV studio giant Warner Bros Discovery (NASDAQ:WBD) is a sleeper stock many investors are missing. The result of a spin off from AT&T (NYSE:T) and merger with Discovery, this is a major entertainment company with substantial growth prospects.
Despite a string of abject failures at the box office with its DC Comics superhero movies. Warner Bros scored big with Barbie this summer. This was the hit of the year, raking in $1.4 billion globally on an estimated production budget of $145 million.
The studio has to cut a lot of the profits from the film with participants, but Barbie made up for the disasters like The Flash.
Investors, though, should also be excited by Warner Bros streaming business. While I question the decision to rebrand HBO Max to just Max, ruining a lot of brand equity built up over decades, the business is strengthening.
The direct-to-consumer business enjoyed breakeven EBITDA this past quarter, performing better than expected. There was certainly churn experienced from the overlapping subscriber base between Max and discovery+. Yet it was far less than anticipated and provides two platforms for the future. Warner Bros smartly changed from pursuing simple subscriber growth to one that maximizes average revenue per user (ARPU) growth. ARPU was up 4% year over year in the second quarter and 5% sequentially. There are nearly 96 million subscribers globally, a near 4-million increase from last year.
Warner Bros Discovery stock is bargain basement cheap. It trades at a fraction of its sales and book value, and at a deeply discounted nine times free cash flow.
Broadcom (AVGO)
Source: Sasima / Shutterstock.com
Apple (NASDAQ:AAPL) is unveiling its 17th generation iPhone as I write this, amid concerns the smartphone market is in decline. Because model enhancements have become less dramatic, or as one analyst put it, “incrementally incremental,” consumers are upgrading their phones less often. It should still be a significant milestone for telecom chipmaker Broadcom (NASDAQ:AVGO).
Earlier this year, Apple announced a new multiyear, multibillion-dollar agreement with Broadcom to produce 5G radio frequency components for Apple products. Because telecoms are rolling out and building out their 5G infrastructure, it represents the most significant upgrade to the networks in more than a decade.
The increase in download speeds from 5G will spur customers to consume greater amounts of data, some of the most profitable business telecoms generate. Apple sees it growing worldwide.
Broadcom is also fully embracing widespread usage of artificial intelligence (AI). It forecasts revenue from AI could exceed $1 billion in the third quarter and account for 25% of total revenue next year. The chipmaker estimates the revenue opportunity from AI is about 15% of its chip business.
As a bonus, Broadcom investors receive a lucrative dividend yielding 2.1% annually. The chipmaker is constructing a legacy of dividend increases running 13 straight years so far. Throughout the last three years, Broadcom increased the payout by almost 15% a year.
LVMH Moet Hennessy Louis Vuitton (LVMUY)
Source: Vietnam stock photos / Shutterstock
Luxury goods house LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) is living the good life. Shares are up 30% in 2023 and are more than 140% higher throughout the last five years. In contrast, the S&P 500 is up 10% and 55%, respectively.
It’s no secret the rich are the ones hit last in any downturn. The market volatility witnessed this year didn’t cause the well-heeled to blink an eye. LVMH’s chairman and CEO Bernard Arnault ought to know. He is the world’s second richest person in the world behind Elon Musk, with a reported net worth of $173 billion as of September.
With the stock market rising and signaling the next bull market may be here, catering to their many whims ought to benefit LVMH handsomely. It owns 75 “houses” comprising 60 separate brands ranging from fashion and perfumes to watches, jewelry, and wine and spirits.
After peaking at around $200 per share in April, LVMH stock lost 20% of its value in the subsequent months. Arnault has been a big buyer of the stock. Beginning on Aug. 3 and continuing every few days since, the CEO bought large tranches of stock. Last week he purchased 8 million euros worth in one go. Earlier that week he bought 2 million euros worth.
Investing legend Peter Lynch once noted insiders can sell there stock for any number of reasons, they tend to buy them for only one: they think the stock is going up. Investors may want to take note and do likewise.
On the date of publication, Rich Duprey held a LONG position in T and WBD stock. 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.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
It doesn’t matter if you have $500 or $5 million. Do this now.
The post Is History Repeating Itself? 3 Growth Stocks to Buy for the Coming Bull Market appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Broadcom (AVGO) Source: Sasima / Shutterstock.com Apple (NASDAQ:AAPL) is unveiling its 17th generation iPhone as I write this, amid concerns the smartphone market is in decline. The increase in download speeds from 5G will spur customers to consume greater amounts of data, some of the most profitable business telecoms generate. It owns 75 “houses” comprising 60 separate brands ranging from fashion and perfumes to watches, jewelry, and wine and spirits.
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Broadcom (AVGO) Source: Sasima / Shutterstock.com Apple (NASDAQ:AAPL) is unveiling its 17th generation iPhone as I write this, amid concerns the smartphone market is in decline. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The thing about bear markets is they are so short-lived. Growth Stocks to Buy for the Coming Bull Market: Warner Bros Discovery (WBD) Source: Ingus Kruklitis / Shutterstock.com Movie and TV studio giant Warner Bros Discovery (NASDAQ:WBD) is a sleeper stock many investors are missing.
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Broadcom (AVGO) Source: Sasima / Shutterstock.com Apple (NASDAQ:AAPL) is unveiling its 17th generation iPhone as I write this, amid concerns the smartphone market is in decline. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The thing about bear markets is they are so short-lived. Growth Stocks to Buy for the Coming Bull Market: Warner Bros Discovery (WBD) Source: Ingus Kruklitis / Shutterstock.com Movie and TV studio giant Warner Bros Discovery (NASDAQ:WBD) is a sleeper stock many investors are missing.
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Broadcom (AVGO) Source: Sasima / Shutterstock.com Apple (NASDAQ:AAPL) is unveiling its 17th generation iPhone as I write this, amid concerns the smartphone market is in decline. There are nearly 96 million subscribers globally, a near 4-million increase from last year. Throughout the last three years, Broadcom increased the payout by almost 15% a year.
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13656.0
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2023-09-14 00:00:00 UTC
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Is Franklin U.S. Large Cap Multifactor Index ETF (FLQL) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-franklin-u.s.-large-cap-multifactor-index-etf-flql-a-strong-etf-right-now-4
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nan
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nan
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Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a smart beta exchange traded fund launched on 04/26/2017.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Franklin Templeton Investments, and has been able to amass over $900.08 million, which makes it one of the larger ETFs in the Style Box - Large Cap Blend. This particular fund seeks to match the performance of the LibertyQ US Large Cap Equity Index before fees and expenses.
The LibertyQ US Large Cap Equity Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.15% for this ETF, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 1.88%.
Sector Exposure and Top Holdings
ETFs offer 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.
Representing 34.30% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Consumer Discretionary round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.91% of the fund's total assets, followed by Microsoft Corp (MSFT) and Eli Lilly + Co (LLY).
Its top 10 holdings account for approximately 29.35% of FLQL's total assets under management.
Performance and Risk
The ETF has added about 15.06% so far this year and was up about 15.31% in the last one year (as of 09/14/2023). In the past 52-week period, it has traded between $36.61 and $45.68.
FLQL has a beta of 0.92 and standard deviation of 16.03% for the trailing three-year period. With about 215 holdings, it effectively diversifies company-specific risk.
Alternatives
Franklin U.S. Large Cap Multifactor Index ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $350.48 billion in assets, SPDR S&P 500 ETF has $416.16 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.91% of the fund's total assets, followed by Microsoft Corp (MSFT) and Eli Lilly + Co (LLY). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.91% of the fund's total assets, followed by Microsoft Corp (MSFT) and Eli Lilly + Co (LLY). Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a smart beta exchange traded fund launched on 04/26/2017.
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Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.91% of the fund's total assets, followed by Microsoft Corp (MSFT) and Eli Lilly + Co (LLY). Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a smart beta exchange traded fund launched on 04/26/2017.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.91% of the fund's total assets, followed by Microsoft Corp (MSFT) and Eli Lilly + Co (LLY). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a smart beta exchange traded fund launched on 04/26/2017.
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13657.0
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2023-09-14 00:00:00 UTC
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Pre-Market Most Active for Sep 14, 2023 : AMC, SQQQ, TQQQ, PCG, DELL, TSLA, AAPL, NIO, NVDA, TSLL, PFE, PLTR
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-sep-14-2023-%3A-amc-sqqq-tqqq-pcg-dell-tsla-aapl-nio-nvda-tsll
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The NASDAQ 100 Pre-Market Indicator is up 43.32 to 15,391.85. The total Pre-Market volume is currently 28,050,138 shares traded.
The following are the most active stocks for the pre-market session:
AMC Entertainment Holdings, Inc. (AMC) is +0.43 at $8.67, with 3,433,338 shares traded. AMC's current last sale is 50.26% of the target price of $17.25.
ProShares UltraPro Short QQQ (SQQQ) is -0.2492 at $18.05, with 3,054,626 shares traded. This represents a 10.2% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is +0.58 at $41.52, with 1,844,957 shares traded. This represents a 157.89% increase from its 52 Week Low.
Pacific Gas & Electric Co. (PCG) is +0.03 at $17.10, with 1,299,789 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
Dell Technologies Inc. (DELL) is +0.29 at $70.74, with 1,139,595 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023. The consensus EPS forecast is $1.23. As reported by Zacks, the current mean recommendation for DELL is in the "buy range".
Tesla, Inc. (TSLA) is +1.66 at $272.96, with 1,006,968 shares traded. TSLA's current last sale is 103% of the target price of $265.
Apple Inc. (AAPL) is +0.51 at $174.72, with 694,202 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
NIO Inc. (NIO) is +0.13 at $10.20, with 642,574 shares traded. NIO's current last sale is 80% of the target price of $12.75.
NVIDIA Corporation (NVDA) is +5.03 at $459.88, with 632,366 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 $2.99. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Direxion Daily TSLA Bull 1.5X Shares (TSLL) is +0.14 at $17.81, with 628,111 shares traded. This represents a 283.84% increase from its 52 Week Low.
Pfizer, Inc. (PFE) is +0.07 at $34.15, with 627,614 shares traded. PFE's current last sale is 76.74% of the target price of $44.5.
Palantir Technologies Inc. (PLTR) is +0.13 at $15.73, with 263,948 shares traded. PLTR's current last sale is 125.84% of the target price of $12.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.51 at $174.72, with 694,202 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is -0.2492 at $18.05, with 3,054,626 shares traded.
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Apple Inc. (AAPL) is +0.51 at $174.72, with 694,202 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 PCG is in the "buy range".
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Apple Inc. (AAPL) is +0.51 at $174.72, with 694,202 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 28,050,138 shares traded.
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Apple Inc. (AAPL) is +0.51 at $174.72, with 694,202 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 43.32 to 15,391.85.
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13658.0
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2023-09-14 00:00:00 UTC
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SoftBank's Arm set to debut on Nasdaq after blockbuster IPO
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AAPL
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https://www.nasdaq.com/articles/softbanks-arm-set-to-debut-on-nasdaq-after-blockbuster-ipo
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nan
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nan
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Sept 14 (Reuters) - SoftBank's chip designer Arm Holdings ARM.O is set to debut on the Nasdaq on Thursday, in what is expected to be the biggest test for the U.S. IPO market after a drought that lasted for nearly 16 months.
Arm priced its offering of 95.5 million American Depositary shares at $51 apiece, fetching $4.87 billion for SoftBank at a valuation of $54.5 billion, with participation from cornerstone investors including Apple AAPL.O, Intel INTC.O and Alphabet GOOGL.O. Hopes of a revival in the IPO market largely depend on the success of the high-profile listings of Arm and other marquee startups, including grocery delivery firm Instacart and marketing firm Klaviyo.
Barclays BARC.L, Goldman Sachs GS.N, JPMorgan Chase JPM.N and Mizuho Financial Group 8411.T are the lead underwriters.
(Reporting by Niket Nishant and Manya Saini in Bengaluru; Editing by Arun Koyyur)
((Niket.Nishant@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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Arm priced its offering of 95.5 million American Depositary shares at $51 apiece, fetching $4.87 billion for SoftBank at a valuation of $54.5 billion, with participation from cornerstone investors including Apple AAPL.O, Intel INTC.O and Alphabet GOOGL.O. Sept 14 (Reuters) - SoftBank's chip designer Arm Holdings ARM.O is set to debut on the Nasdaq on Thursday, in what is expected to be the biggest test for the U.S. IPO market after a drought that lasted for nearly 16 months. Hopes of a revival in the IPO market largely depend on the success of the high-profile listings of Arm and other marquee startups, including grocery delivery firm Instacart and marketing firm Klaviyo.
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Arm priced its offering of 95.5 million American Depositary shares at $51 apiece, fetching $4.87 billion for SoftBank at a valuation of $54.5 billion, with participation from cornerstone investors including Apple AAPL.O, Intel INTC.O and Alphabet GOOGL.O. Sept 14 (Reuters) - SoftBank's chip designer Arm Holdings ARM.O is set to debut on the Nasdaq on Thursday, in what is expected to be the biggest test for the U.S. IPO market after a drought that lasted for nearly 16 months. Hopes of a revival in the IPO market largely depend on the success of the high-profile listings of Arm and other marquee startups, including grocery delivery firm Instacart and marketing firm Klaviyo.
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Arm priced its offering of 95.5 million American Depositary shares at $51 apiece, fetching $4.87 billion for SoftBank at a valuation of $54.5 billion, with participation from cornerstone investors including Apple AAPL.O, Intel INTC.O and Alphabet GOOGL.O. Sept 14 (Reuters) - SoftBank's chip designer Arm Holdings ARM.O is set to debut on the Nasdaq on Thursday, in what is expected to be the biggest test for the U.S. IPO market after a drought that lasted for nearly 16 months. Hopes of a revival in the IPO market largely depend on the success of the high-profile listings of Arm and other marquee startups, including grocery delivery firm Instacart and marketing firm Klaviyo.
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Arm priced its offering of 95.5 million American Depositary shares at $51 apiece, fetching $4.87 billion for SoftBank at a valuation of $54.5 billion, with participation from cornerstone investors including Apple AAPL.O, Intel INTC.O and Alphabet GOOGL.O. Sept 14 (Reuters) - SoftBank's chip designer Arm Holdings ARM.O is set to debut on the Nasdaq on Thursday, in what is expected to be the biggest test for the U.S. IPO market after a drought that lasted for nearly 16 months. Hopes of a revival in the IPO market largely depend on the success of the high-profile listings of Arm and other marquee startups, including grocery delivery firm Instacart and marketing firm Klaviyo.
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13659.0
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2023-09-14 00:00:00 UTC
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After Hours Most Active for Sep 14, 2023 : BAC, ET, QQQ, T, PFE, MPLX, ARM, CSCO, AAPL, WFC, HBAN, GT
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-14-2023-%3A-bac-et-qqq-t-pfe-mplx-arm-csco-aapl-wfc-hban-gt
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nan
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The NASDAQ 100 After Hours Indicator is up 3.34 to 15,477.23. The total After hours volume is currently 70,358,516 shares traded.
The following are the most active stocks for the after hours session:
Bank of America Corporation (BAC) is unchanged at $29.20, with 7,490,328 shares traded. BAC's current last sale is 83.43% of the target price of $35.
Energy Transfer L.P. (ET) is unchanged at $13.57, with 4,874,203 shares traded. ET's current last sale is 79.82% of the target price of $17.
Invesco QQQ Trust, Series 1 (QQQ) is +0.54 at $377.81, with 3,382,168 shares traded. This represents a 48.59% increase from its 52 Week Low.
AT&T Inc. (T) is unchanged at $15.06, with 2,616,668 shares traded. T's current last sale is 75.3% of the target price of $20.
Pfizer, Inc. (PFE) is unchanged at $34.15, with 2,376,439 shares traded. PFE's current last sale is 76.74% of the target price of $44.5.
MPLX LP (MPLX) is unchanged at $34.92, with 2,117,233 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.91. MPLX's current last sale is 87.3% of the target price of $40.
Arm Holdings plc (ARM) is +0.56 at $64.15, with 2,027,974 shares traded.
Cisco Systems, Inc. (CSCO) is -0.02 at $56.35, with 1,928,194 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023. The consensus EPS forecast is $0.91. CSCO's current last sale is 97.16% of the target price of $58.
Apple Inc. (AAPL) is +0.02 at $175.76, with 1,840,481 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Wells Fargo & Company (WFC) is unchanged at $43.05, with 1,698,904 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Huntington Bancshares Incorporated (HBAN) is +0.02 at $10.88, with 1,582,717 shares traded. HBAN's current last sale is 83.69% of the target price of $13.
The Goodyear Tire & Rubber Company (GT) is -0.01 at $12.70, with 1,431,598 shares traded. GT's current last sale is 97.69% of the target price of $13.
The views and 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 +0.02 at $175.76, with 1,840,481 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.02 at $175.76, with 1,840,481 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is +0.02 at $175.76, with 1,840,481 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is unchanged at $15.06, with 2,616,668 shares traded.
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Apple Inc. (AAPL) is +0.02 at $175.76, with 1,840,481 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 3.34 to 15,477.23.
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13660.0
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2023-09-14 00:00:00 UTC
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Will New iPhones Help Apple Stock Offset A China Slump?
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AAPL
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https://www.nasdaq.com/articles/will-new-iphones-help-apple-stock-offset-a-china-slump
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nan
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nan
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Apple (NASDAQ:AAPL) released its new iPhone 15 devices at a special event on Tuesday, offering incremental upgrades over last year’s models. There were no big surprises on the product front, and Apple didn’t boost prices across the Pro lineup as Wall Street had been anticipating, causing the stock to fall by almost 2%.
Notably, AAPL stock had a Sharpe Ratio of 0.9 since early 2017, which is better than the figure of 0.6 for the S&P 500 Index over the same period. Compare this with the Sharpe of 1.2 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
The flagship Pro and Pro Max models are now built with titanium casings and offer the usual upgrades relating to imaging and processing power. The basic iPhone 15 and 15 Plus models sport largely similar designs to last year, although they offer better processors, and cameras and sport the dynamic island notch notifications system, which was previously limited to the Pro. The iPhone 15 starts at the same $800, while the Pro model begins at $1,000 – marking the seventh consecutive year Apple has held on to the price point for its flagships. That said, the Pro Max model now omits a 128 gigabytes model and starts with 256 GB of storage, meaning that base model prices are up by $100 versus last year.
So how are the new devices expected to impact Apple’s financials? Despite the lack of price increases, Apple could see average selling prices trend higher, as the pricier Pro devices now appear more appealing with exclusive features such as higher refresh rate screens, the latest processors, and camera tech, as well as more premium casing materials. That said, volume growth could remain muted through this upgrade cycle, given the saturation in the broader smartphone market and headwinds in China following the government’s move to ban the use of iPhones and other foreign cellphones among central government workers. However, Apple has done a good job with managing its margins in recent years, despite holding prices flat driven by a more favorable sales mix and potentially improving supply of semiconductor components. Q3 FY’23, the most recent quarter, reported 35.4% product gross margin, compared to 34.5% in the year-ago quarter. We largely expect margins to hold up with the new launches as well.
Apple stock has declined by about 6% over the last five trading days, due to concerns about the Chinese market and a lackluster reception to the new iPhone launch. However, we think the stock is still overvalued at current levels of about $176 per share. Apple currently trades at over 28x forward earnings, which is high relative to historical levels. Moreover, Apple’s earnings are poised to contract this year per consensus estimates, with revenue growth projected to remain slow over the next year as well. We value Apple at about $168 per share, about 6% below the market price. See our analysis of Apple Valuation for more details on what’s driving our price estimate for Apple and how it compares with peers.
Returns Sep 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAPL Return -6% 36% 509%
S&P 500 Return -1% 16% 99%
Trefis Reinforced Value Portfolio -2% 28% 559%
[1] Month-to-date and year-to-date as of 9/13/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) released its new iPhone 15 devices at a special event on Tuesday, offering incremental upgrades over last year’s models. Notably, AAPL stock had a Sharpe Ratio of 0.9 since early 2017, which is better than the figure of 0.6 for the S&P 500 Index over the same period. Total [2] AAPL Return -6% 36% 509% S&P 500 Return -1% 16% 99% Trefis Reinforced Value Portfolio -2% 28% 559% [1] Month-to-date and year-to-date as of 9/13/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Total [2] AAPL Return -6% 36% 509% S&P 500 Return -1% 16% 99% Trefis Reinforced Value Portfolio -2% 28% 559% [1] Month-to-date and year-to-date as of 9/13/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple (NASDAQ:AAPL) released its new iPhone 15 devices at a special event on Tuesday, offering incremental upgrades over last year’s models. Notably, AAPL stock had a Sharpe Ratio of 0.9 since early 2017, which is better than the figure of 0.6 for the S&P 500 Index over the same period.
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Total [2] AAPL Return -6% 36% 509% S&P 500 Return -1% 16% 99% Trefis Reinforced Value Portfolio -2% 28% 559% [1] Month-to-date and year-to-date as of 9/13/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple (NASDAQ:AAPL) released its new iPhone 15 devices at a special event on Tuesday, offering incremental upgrades over last year’s models. Notably, AAPL stock had a Sharpe Ratio of 0.9 since early 2017, which is better than the figure of 0.6 for the S&P 500 Index over the same period.
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Apple (NASDAQ:AAPL) released its new iPhone 15 devices at a special event on Tuesday, offering incremental upgrades over last year’s models. Notably, AAPL stock had a Sharpe Ratio of 0.9 since early 2017, which is better than the figure of 0.6 for the S&P 500 Index over the same period. Total [2] AAPL Return -6% 36% 509% S&P 500 Return -1% 16% 99% Trefis Reinforced Value Portfolio -2% 28% 559% [1] Month-to-date and year-to-date as of 9/13/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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13661.0
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2023-09-14 00:00:00 UTC
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Meta Platforms Stock (NASDAQ:META): The WhatsApp Opportunity May be Overlooked
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-stock-nasdaq%3Ameta%3A-the-whatsapp-opportunity-may-be-overlooked
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nan
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nan
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Shares of Meta Platforms (NASDAQ:META) have been scorching hot so far this year, now up more than 144% year-to-date. Indeed, the generative artificial intelligence (AI) boom has been a major contributor to Meta's explosive relief rally, but it's the WhatsApp opportunity that may be one of the company's next big drivers as AI hype begins to taper off a bit. Therefore, I'm staying bullish on META alongside a vast majority of Wall Street analysts covering the company.
In recent weeks, a lot of enthusiasm has surrounded META stock for its improving position in the AI race. The company's Llama (Large Language Model Meta AI) 2 AI model is an open-source system that could be the firm's secret weapon to pull ahead in its battle against competing LLMs like ChatGPT. Undoubtedly, the fact that it's available open source, even for commercial use, sets Meta's AI strategy apart from peers, including Microsoft (NASDAQ:MSFT).
Although I'm sure more AI news could keep the momentum going strong over at Meta, it's the monetization potential behind the messaging app WhatsApp that could help power shares toward all-time highs of around $380 and change. Further, introducing AI chatbots into the popular messaging app could take its growth to the next level.
WhatsApp's $19 Billion Price Tag Could Prove Too Low
Since acquiring the app back in 2014 for a lofty $19 billion, Meta hasn't really been able to turn it into any sort of meaningful cash cow. This could change moving forward as the firm looks to drive the profitability of the massive network that may have flown under the radar of investors and analysts for years. What's the catalyst? Generative AI tech.
Back in 2014, WhatsApp's price tag seemed just a bit absurd, especially given the free app wasn't exactly packed full of features, nor was it raking in the dough. What the app did have, though, is a massive userbase. Currently, WhatsApp is estimated to have as many as 2.8 billion active users. For a front-row seat to such a sizeable portion of the world population, $19 billion may prove a bargain for Meta, a firm that's made some very smart and bold M&A moves in its lifetime.
As Meta's AI capabilities (Llama 2 and beyond) improve, WhatsApp could be the medium of choice for users to interact with a broad range of LLMs. Imagine using a ChatGPT-like service on WhatsApp, the same place you interact with the everyday people in your life. In many ways, it seems like Meta could be turning WhatsApp from a simple, free messaging platform into a super app that features a broad range of services, encompassing payments and customer service.
WhatsApp: The Next Big Super App?
Undoubtedly, the concept of super apps (one app that covers a broad and differing range of services) has been mostly limited to China. Looking ahead, Meta could be in a unique and enviable position to bring super apps into their prime in the U.S., Canada, and other parts of the globe.
Indeed, firms like Apple (NASDAQ:AAPL) could stand in the way of such super apps, insisting that Meta have different apps for payments and other services tied to WhatsApp. In any case, I'd keep a close watch on WhatsApp over the next two years as the company increases the pace of new feature rollouts.
Most recently, Meta brought WhatsApp Channels to over 150 countries. WhatsApp Channels allow the app to offer Telegram-like messages from influential people and other organizations. The new feature bolsters WhatsApp's social capabilities and could help it take B2C (business-to-consumer) interactions to the next level.
What is a Fair Price for META Stock?
On TipRanks, META stock comes in as a Strong Buy. Out of 43 analyst ratings, there are 41 Buys and two Holds. The average Meta Platforms price target is $376.19, implying upside potential of 20.7%. Analyst price targets range from a low of $285.00 per share to a high of $435.00 per share.
The Bottom Line on META Stock and WhatApp's Potential
WhatsApp is getting more capable, and it's doing so at an increasing pace. I think it's just a matter of time before WhatsApp becomes so packed full of new features that its billions of users begin spending even more of their time in the app. Up ahead, look for WhatsApp to take a page right out of the playbook of super apps like China's WeChat as it looks to expand its WhatsApp Payments service.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Indeed, firms like Apple (NASDAQ:AAPL) could stand in the way of such super apps, insisting that Meta have different apps for payments and other services tied to WhatsApp. Undoubtedly, the fact that it's available open source, even for commercial use, sets Meta's AI strategy apart from peers, including Microsoft (NASDAQ:MSFT). Although I'm sure more AI news could keep the momentum going strong over at Meta, it's the monetization potential behind the messaging app WhatsApp that could help power shares toward all-time highs of around $380 and change.
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Indeed, firms like Apple (NASDAQ:AAPL) could stand in the way of such super apps, insisting that Meta have different apps for payments and other services tied to WhatsApp. The company's Llama (Large Language Model Meta AI) 2 AI model is an open-source system that could be the firm's secret weapon to pull ahead in its battle against competing LLMs like ChatGPT. WhatsApp's $19 Billion Price Tag Could Prove Too Low Since acquiring the app back in 2014 for a lofty $19 billion, Meta hasn't really been able to turn it into any sort of meaningful cash cow.
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Indeed, firms like Apple (NASDAQ:AAPL) could stand in the way of such super apps, insisting that Meta have different apps for payments and other services tied to WhatsApp. Although I'm sure more AI news could keep the momentum going strong over at Meta, it's the monetization potential behind the messaging app WhatsApp that could help power shares toward all-time highs of around $380 and change. In many ways, it seems like Meta could be turning WhatsApp from a simple, free messaging platform into a super app that features a broad range of services, encompassing payments and customer service.
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Indeed, firms like Apple (NASDAQ:AAPL) could stand in the way of such super apps, insisting that Meta have different apps for payments and other services tied to WhatsApp. As Meta's AI capabilities (Llama 2 and beyond) improve, WhatsApp could be the medium of choice for users to interact with a broad range of LLMs. Analyst price targets range from a low of $285.00 per share to a high of $435.00 per share.
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13662.0
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2023-09-14 00:00:00 UTC
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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-outpaces-stock-market-gains%3A-what-you-should-know-19
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nan
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nan
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In the latest trading session, Apple (AAPL) closed at $175.74, marking a +0.88% move from the previous day. This move outpaced the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 1.34% over the past month, lagging the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 0.19% in that time.
Apple will be looking to display strength as it nears its next earnings release. 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.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.66 billion. These results would represent year-over-year changes of -0.98% and -2.96%, respectively.
Any recent changes to analyst estimates for Apple should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Apple is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 28.82. This represents a premium compared to its industry's average Forward P/E of 11.65.
We can also see that AAPL currently has a PEG ratio of 2.54. 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 was holding an average PEG ratio of 2.54 at yesterday's closing price.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
4 Oil Stocks with Massive Upsides
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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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In the latest trading session, Apple (AAPL) closed at $175.74, marking a +0.88% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.66 billion. We can also see that AAPL currently has a PEG ratio of 2.54.
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In the latest trading session, Apple (AAPL) closed at $175.74, marking a +0.88% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.66 billion. We can also see that AAPL currently has a PEG ratio of 2.54.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Apple (AAPL) closed at $175.74, marking a +0.88% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.66 billion.
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In the latest trading session, Apple (AAPL) closed at $175.74, marking a +0.88% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.66 billion. We can also see that AAPL currently has a PEG ratio of 2.54.
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13663.0
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2023-09-14 00:00:00 UTC
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US STOCKS-Futures climb on Fed rate-pause hopes; investors await Arm debut
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-climb-on-fed-rate-pause-hopes-investors-await-arm-debut
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nan
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nan
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By Ankika Biswas and Shristi Achar A
Sept 14 (Reuters) - Wall Street futures rose on Thursday over expectations the Federal Reserve could pause interest rate hikes in September, while investors awaited Arm Holdings' stock market debut after its IPO turned out to be the biggest since 2021.
Shares of Arm Holdings ARM.O will make their widely anticipated debut on the Nasdaq after the chip designer notched a $54.5 billion valuation in its offering, priced at $51 per share, on Wednesday.
Chipmakers including Nvidia NVDA.O, Micron Technology MU.O and Advanced Micro Devices AMD.O added between 0.7% and 1.2% before the bell.
Both the Nasdaq .IXIC and the S&P 500 .SPX gained on Wednesday following data that showed the annual rise in core consumer prices, excluding volatile items like food and energy, was the smallest in nearly two years.
Rising oil prices, however, could keep inflation at elevated levels, analysts said. Higher gasoline prices pushed the headline inflation to a 14-month high, while stickiness in growth of prices of services kept alive the prospects of a November hike.
"The Fed may latch on to energy prices as a reason to strike a relatively hawkish tone at next week's FOMC meeting as it looks to ensure financial conditions remain relatively tight to continue making progress on core inflation," said Emin Hajiyev, senior economist at Insight Investment.
"We are at or very close to the top of the hiking cycle but see one additional rate hike into year-end as a possibility."
Traders see a 97% chance of the Fed holding rates in September and a near 60% likelihood of a November pause, according to the CME FedWatch Tool.
Citigroup also expects the Fed to hike interest rates by 25-basis points in November, compared with its previous forecast of a September hike.
All eyes will be on producer prices data and retail sales for August and weekly jobless claims at 8:30 a.m. ET for further clues on the trajectory for U.S. interest rates ahead of the Federal Reserve's policy meeting next week.
Major growth stocks, including Apple AAPL.O, Google GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O edged up between 0.4% and 0.7%, with the two-year U.S. Treasury yield US2YT=RR, which best reflects short-term interest rate expectations, trading below the 5% mark.
Meanwhile, investors largely expect another European Central Bank rate hike later in the day, which will take interest rates to a record high, amid sticky inflation and a deteriorating economy.
At 7:02 a.m. ET, Dow e-minis 1YMcv1 were up 109 points, or 0.32%, S&P 500 e-minis EScv1 were up 19.5 points, or 0.43%, and Nasdaq 100 e-minis NQcv1 were up 71.5 points, or 0.46%.
Among individual stock moves, Vital Energy VTLE.N dropped 8.5% premarket after it signed deals valued at about $1.17 billion to expand its acreage in the Permian Basin.
HP HPQ.N fell 1.5% after Warren Buffett's Berkshire Hathaway BRKa.Nsold about 5.5 million shares of the company.
VisaV.N slipped 2.0% after the payment processing giant said it was engaging with Class B shareholders on a proposal to convert their shares to Class C or Class A.
(Reporting by Ankika Biswas and Shristi Achar A in Bengaluru; Editing by Saumyadeb Chakrabarty 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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Major growth stocks, including Apple AAPL.O, Google GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O edged up between 0.4% and 0.7%, with the two-year U.S. Treasury yield US2YT=RR, which best reflects short-term interest rate expectations, trading below the 5% mark. By Ankika Biswas and Shristi Achar A Sept 14 (Reuters) - Wall Street futures rose on Thursday over expectations the Federal Reserve could pause interest rate hikes in September, while investors awaited Arm Holdings' stock market debut after its IPO turned out to be the biggest since 2021. "The Fed may latch on to energy prices as a reason to strike a relatively hawkish tone at next week's FOMC meeting as it looks to ensure financial conditions remain relatively tight to continue making progress on core inflation," said Emin Hajiyev, senior economist at Insight Investment.
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Major growth stocks, including Apple AAPL.O, Google GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O edged up between 0.4% and 0.7%, with the two-year U.S. Treasury yield US2YT=RR, which best reflects short-term interest rate expectations, trading below the 5% mark. By Ankika Biswas and Shristi Achar A Sept 14 (Reuters) - Wall Street futures rose on Thursday over expectations the Federal Reserve could pause interest rate hikes in September, while investors awaited Arm Holdings' stock market debut after its IPO turned out to be the biggest since 2021. Citigroup also expects the Fed to hike interest rates by 25-basis points in November, compared with its previous forecast of a September hike.
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Major growth stocks, including Apple AAPL.O, Google GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O edged up between 0.4% and 0.7%, with the two-year U.S. Treasury yield US2YT=RR, which best reflects short-term interest rate expectations, trading below the 5% mark. By Ankika Biswas and Shristi Achar A Sept 14 (Reuters) - Wall Street futures rose on Thursday over expectations the Federal Reserve could pause interest rate hikes in September, while investors awaited Arm Holdings' stock market debut after its IPO turned out to be the biggest since 2021. Citigroup also expects the Fed to hike interest rates by 25-basis points in November, compared with its previous forecast of a September hike.
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Major growth stocks, including Apple AAPL.O, Google GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O edged up between 0.4% and 0.7%, with the two-year U.S. Treasury yield US2YT=RR, which best reflects short-term interest rate expectations, trading below the 5% mark. By Ankika Biswas and Shristi Achar A Sept 14 (Reuters) - Wall Street futures rose on Thursday over expectations the Federal Reserve could pause interest rate hikes in September, while investors awaited Arm Holdings' stock market debut after its IPO turned out to be the biggest since 2021. Higher gasoline prices pushed the headline inflation to a 14-month high, while stickiness in growth of prices of services kept alive the prospects of a November hike.
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13664.0
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2023-09-14 00:00:00 UTC
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3 Overlooked Cryptos to Buy for Massive Returns Over the Next 5 Years
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AAPL
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https://www.nasdaq.com/articles/3-overlooked-cryptos-to-buy-for-massive-returns-over-the-next-5-years
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The crypto market appears to be trading in a range-bound nature in mid-2023. Of course, this comes following an impressive rally earlier this year that was residual from 2022 lows. Accordingly, long-term investors looking to diversify into digital assets have plenty of overlooked cryptos to buy that still appear to be relatively attractive.
Indeed, plenty of high-priced, speculative cryptocurrencies exist for investors to lose money on. It’s my view that only a small fraction of the thousands of cryptos to buy that exist today will be around a decade from now. Accordingly, quality matters more than quantity when it comes to picking up tokens that appear to be cheap or overlooked in this environment.
With that said, here are three tokens I think could provide investors with massive returns over the next five years. These projects provide real utility and attract interest from both retail and institutional investors. Let’s dive in.
Basic Attention Token (BAT-USD)
Source: Stanslavs / Shutterstock
Basic Attention Token (BAT-USD), integrated with Brave browser, offers users privacy, rewards for viewing ads in BAT tokens and direct payments to content creators. BAT’s advertising network extends beyond Brave, engaging more web users and revolutionizing online ads by empowering users and reducing costs.
BAT tokens offer incentives for users, creating a unique earning opportunity for those who surf the net. The Brave browser offers a unique way to earn with its BAT token – By replacing traditional ads with BAT-rewarding ones, users can earn while browsing, making it ideal for frequent computer users. BAT isn’t just another cryptocurrency; it has the potential to revolutionize online advertising, empowering users and eliminating intermediaries.
Despite lower popularity, Brave has 50M+ users, making BAT a standout crypto. Its potential to reshape online ads, improve privacy and provide user control is appealing. While speculative, BAT’s growth potential in 2023 is noteworthy, making it a compelling choice for those seeking high upside potential.
Render Token (RNDR-USD)
Source: Maurice NORBERT / Shutterstock.com
Render Token (RNDR-USD) has gained attention as a blockchain-powered graphics solution for GPU computing in various industries. It democratizes rendering with smart contracts and RNDR tokens.
Render Token is a decentralized crypto linking artists, studios and miners, meeting rising GPU demand in gaming, VR, AI and medical imaging. With the global GPU market projected to reach $400 billion by 2032, Render offers decentralized GPU power rental via blockchain and smart contracts, rewarding users with RNDR tokens.
Render Network holds promise in a chip-demanding world, especially for artists and researchers. Its recent Apple (NASDAQ:AAPL) partnership adds credibility. Render Token taps into the growth of gaming, graphics, film and AI, making it one of the cryptos to buy for enthusiasts.
Chainlink (LINK-USD)
Source: Stanslavs / Shutterstock.com
Chainlink (LINK-USD) revolutionizes smart contracts by enabling efficient data capacity and linking real-world data with decentralized systems. Chainlink drives Web 3.0 development, optimizing smart contracts by bridging on-chain and off-chain data sources, with potential for growth.
Recent LINK news reveals significant accumulation by Chainlink whales after a successful joint blockchain experiment with Swift. In the past 10 days, Chainlink whales bought over 4 million LINK tokens worth $24 million, following the successful blockchain experiment conducted in collaboration with Swift. This experiment involved moving tokenized value across various private and public blockchains.
Chainlink is currently developing data feeds, payments and events, focusing on utility and functionality. Appreciation for its importance may come when a critical mass is achieved, driven by connectivity and usefulness, which Chainlink offers.
On the date of publication, Chris MacDonald has a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 Overlooked Cryptos to Buy for Massive Returns Over the Next 5 Years appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its recent Apple (NASDAQ:AAPL) partnership adds credibility. On the date of publication, Chris MacDonald has a LONG position in AAPL. Render Token is a decentralized crypto linking artists, studios and miners, meeting rising GPU demand in gaming, VR, AI and medical imaging.
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Its recent Apple (NASDAQ:AAPL) partnership adds credibility. On the date of publication, Chris MacDonald has a LONG position in AAPL. Basic Attention Token (BAT-USD) Source: Stanslavs / Shutterstock Basic Attention Token (BAT-USD), integrated with Brave browser, offers users privacy, rewards for viewing ads in BAT tokens and direct payments to content creators.
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Its recent Apple (NASDAQ:AAPL) partnership adds credibility. On the date of publication, Chris MacDonald has a LONG position in AAPL. Basic Attention Token (BAT-USD) Source: Stanslavs / Shutterstock Basic Attention Token (BAT-USD), integrated with Brave browser, offers users privacy, rewards for viewing ads in BAT tokens and direct payments to content creators.
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On the date of publication, Chris MacDonald has a LONG position in AAPL. Its recent Apple (NASDAQ:AAPL) partnership adds credibility. With that said, here are three tokens I think could provide investors with massive returns over the next five years.
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13665.0
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2023-09-14 00:00:00 UTC
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3 Low-Cost ETFs That Are Crushing SPY
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AAPL
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https://www.nasdaq.com/articles/3-low-cost-etfs-that-are-crushing-spy
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nan
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nan
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Resilient American consumers. Below normal valuations. Moderating inflation. Artificial intelligence. They're all adding up to a fantastic 2023 for U.S. equities.
Interestingly, this year’s rally has been a bit of a self-fulfilling prophecy. Rising stock prices are prompting investors to pour more money into individual stocks, mutual funds and exchange traded funds (ETFs). In the second quarter of 2023, domestic equity ETFs hauled in $96 billion compared to just $28 billion in the first quarter. Since fund inflows are synonymous with buying, they helped push the market to new highs at the end of Q2.
This begs the question — are recent fund flows consistent with improved market fundamentals? Or is it a performance-chasing phenomenon at hand?
With much uncertainty around prices and the path of interest rates, it’s difficult to say which is more likely. Those who subscribe to the efficient market hypothesis would say the market has priced stocks appropriately. A glance at lofty tech stock valuations reminiscent of the dot com bubble suggests otherwise.
What we do know is that money is flowing into a wider range of funds than in years past. The continuous launch of new ETFs is giving investors more choices than ever before. In turn, the biggest funds aren’t necessarily getting bigger.
Take the popular SPDR S&P 500 ETF, better known as SPY. While it boasts more assets under management (AUM) than any other ETF, net flows are actually down $1.8 billion this year. If flows were positive, the fund’s 18% year-to-date return may be even higher.
Instead, investors are discovering other sub-asset classes and specialty funds in which to allocate their money. As a result of this and other market divergences, these three ETFs are significantly outperforming SPY in 2023.
#1 - SCHG (+39%)
The Schwab U.S. Large-Cap Growth ETF (NYSEARCA: SCHG) is killing it this year mainly because the growth style of investing is vastly outperforming its value counterpart. To the fund’s credit though, it is capitalizing on the disparity better than most peers. Up 39% year-to-date, SCHG is a top decile performer among nearly 1,200 U.S. large-cap growth funds. In contrast to SPY’s 2023 net outflows, SCHG's net flows are a positive $1.0 billion.
Granted, more than doubling the return of the S&P 500 has much to do with sector and stock representation. Technology, this year’s best-performing economic group, accounts for roughly 45% of SCHG compared to 29% for SPY. Apple and Microsoft, both of which are up more than 35% this year, have a combined 25% weighting in SCHG versus 14% in SPY. Higher weights in Amazon, Alphabet and the S&P 500’s biggest winner, NVIDIA, are also responsible for the outperformance — and ensuing investor interest.
#2 - FLJH (+33%)
Looking outside the U.S., The Franklin FTSE Japan Hedged ETF (NYSEARCA:FLJH) is quietly having an excellent year. The Japan-focused equity fund is up 31%, on pace for its best calendar year yet after launching in 2018. The country’s primary index, the Nikkei 225, has surged past the 30,000 mark for the first time in 33 years thanks to structural changes years in the making. Japanese corporations are becoming more employee- and shareholder-friendly by implementing worker raises, forming more diverse boards and buying back stock. These moves are making for a healthier economy and attracting investors to an asset class long perceived as too risky.
And yet, with the Nikkei still about 15% below its 1989 record high, it may not be too late to hop on the bandwagon. A good vehicle for doing so is FLJH because of 1) its five-year outperformance in the Japanese stock category and 2) its ability to minimize the impact of Yen-U.S. dollar exchange rate volatility through hedging mechanisms. The diversified fund’s low 0.09% expense ratio is more reason to venture out east.
#3 - ESGV (+21%)
Those who thought environmental, social and governance (ESG) investing was a 2019 fad should check out The Vanguard ESG U.S. Stock ETF (BATS: ESGV). The fund is up 21% this year and closing on a new all-time high. It is not only outpacing SPY but also 90% of all U.S. large-cap funds. Its 0.09% expense ratio matches that of SPY, but it has a lower forward dividend yield (1.1% versus 1.5%).
What’s compelling about ESGV is that it includes a mix of large, mid and small cap companies, whereas SPY is exclusively large cap. Companies that meet various ESG criteria as defined by the United National Global Compact Principles make their way into the fund while the rest are screened out. The result is an approximately 1,500 stock portfolio that, interestingly, has a higher technology weighting (35%) than SPY, hence the outperformance. This makes ESGV a unique way to gain exposure to three times as many domestic stocks and ESG dynamics while having a significant tech bet all at the same time.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Japanese corporations are becoming more employee- and shareholder-friendly by implementing worker raises, forming more diverse boards and buying back stock. A good vehicle for doing so is FLJH because of 1) its five-year outperformance in the Japanese stock category and 2) its ability to minimize the impact of Yen-U.S. dollar exchange rate volatility through hedging mechanisms. Companies that meet various ESG criteria as defined by the United National Global Compact Principles make their way into the fund while the rest are screened out.
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Rising stock prices are prompting investors to pour more money into individual stocks, mutual funds and exchange traded funds (ETFs). The Schwab U.S. Large-Cap Growth ETF (NYSEARCA: SCHG) is killing it this year mainly because the growth style of investing is vastly outperforming its value counterpart. In contrast to SPY’s 2023 net outflows, SCHG's net flows are a positive $1.0 billion.
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Rising stock prices are prompting investors to pour more money into individual stocks, mutual funds and exchange traded funds (ETFs). What we do know is that money is flowing into a wider range of funds than in years past. The Schwab U.S. Large-Cap Growth ETF (NYSEARCA: SCHG) is killing it this year mainly because the growth style of investing is vastly outperforming its value counterpart.
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Those who subscribe to the efficient market hypothesis would say the market has priced stocks appropriately. What we do know is that money is flowing into a wider range of funds than in years past. If flows were positive, the fund’s 18% year-to-date return may be even higher.
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13666.0
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2023-09-14 00:00:00 UTC
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Apple Stock (NASDAQ:AAPL): The iPhone 15 Will Prove a Flourishing Successor
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AAPL
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https://www.nasdaq.com/articles/apple-stock-nasdaq%3Aaapl%3A-the-iphone-15-will-prove-a-flourishing-successor
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nan
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nan
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Apple (NASDAQ:AAPL) unveiled the iPhone 15 on Tuesday, which, in my view, is going to be a flourishing successor for the tech giant. Despite the usual mixed reactions following major Apple announcements, I see this event as a resounding success. Apple has once again harnessed its unique formula -- seamlessly blending innovation with familiarity, a combination that consistently appeals to both consumers and investors. While market noise may bring short-term volatility to Apple's stock, I maintain a bullish outlook.
Is Apple's iPhone 15 More of the Same?
The unveiling of Apple's iPhone 15 has stirred the familiar refrain: "It's more of the same." However, let's delve deeper into this assertion, for it carries significant weight. You see, the iPhone is not just any product in Apple's arsenal. It stands as the flagship and is responsible for almost half (48% in fiscal Q3) of the tech giant's sales. Thus, any iteration of this iconic device is nothing short of momentous.
So, is it accurate to claim that the iPhone 15 treads familiar ground? To a certain extent, yes, but should we perceive this continuity as a negative? Absolutely not. In fact, it's a testament to Apple's remarkable understanding of its consumer base. What the faithful patrons of Apple consistently desire is a harmonious blend of the familiar and the novel.
Of course, innovation is essential, as it serves as the spark that ignites excitement and motivates individuals to upgrade their devices. However, beyond these incremental advancements, there exists little rationale for altering an already exceptional product. The iPhone 15, like its predecessors, serves as a refined embodiment of this philosophy. It gracefully maintains the aspects that users cherish while judiciously integrating innovations to enhance the overall experience.
Demand for iPhone 15 Should Remain Very Strong
In my view, the demand for the iPhone 15 will be very strong, driven by the same enduring reasons that have consistently fueled interest in each preceding model -- the allure of a new design, merely for the sake of novelty, but mostly the desire for a device that seamlessly enhances our daily lives. What iPhone users (myself included) want is the continuation of that same exquisite phone they've come to adore but with added features that elevate their experience. This is where the iPhone 15 shines.
The introduction of the Action Button in the iPhone 15 embodies this philosophy perfectly. It doesn't overhaul the appearance. Instead, it enhances functionality, enabling improved multitasking capabilities and quicker navigation. It's a subtle change that carries profound implications for users' daily interactions with the device.
Now, for creators and power users who have witnessed the remarkable performance of the iPhone 13 and 14, the marginal improvements in the iPhone 15 Pro's A17 Bionic chip may not raise eyebrows. That's totally fine. Its predecessors already delivered processing and rendering prowess par excellence.
Where the iPhone 15 truly leaves a mark is in its main camera, including quadrupling the MP (megapixels) to 48. Here, Apple knows that tangible improvements where it actually matters can deliver great value, particularly benefiting the ever-expanding community of creators.
In essence, Apple's approach to iPhone evolution may appear incremental, but it's precisely these incremental adjustments that have a significant impact on these otherwise beloved devices. Thus, the same can be said for the incremental improvements in Airpods and the Apple Watch.
Apple's Valuation Combined with Uncertainty May Cause Volatility Ahead
Despite my confidence in Apple's iPhone and upgrades regarding Airpods and the Apple Watch, I can see Apple stock being subject to some shorter-term volatility. This could be attributed to the combination of market noise and speculative activity that typically follows such events, compounded by the stock's hefty valuation. At nearly 30 times this year's projected earnings, Apple's valuation doesn't provide any margin of safety against wild stock wings.
That said, I believe that Apple is a stock to own, not one to trade. The company has consistently proven that it can grow its earnings into its valuation. Thus, while the current multiple is a premium one, I believe it shouldn't really matter over the long run. The fact that Apple stock has consistently reached new all-time highs after every speculative period in its history is a testament to this notion.
What are Analysts Saying About AAPL?
Turning to Wall Street, Apple features a Moderate Buy consensus rating despite its elevated valuation. This is based on 22 Buys and eight Holds assigned in the past three months. At $207.46, the average Apple stock forecast suggests 18.2% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell AAPL stock, the most accurate analyst covering the stock (on a one-year timeframe) is Krish Sankar from TD Cowen, with an average return of 93% per rating and a 49.16% success rate. Click on the image below to learn more.
The Takeaway
Overall, the iPhone 15's blend of familiarity and innovation reflects Apple's profound understanding of its user base. Demand for the iPhone and, therefore, Apple's overall ecosystem should remain very strong. Short-term stock volatility may occur, influenced by market noise and Apple's relatively expensive valuation. Nevertheless, for long-term investors, this is a stock to own, not to trade. In that regard, there is no significant reason for Apple bulls not to remain bullish.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) unveiled the iPhone 15 on Tuesday, which, in my view, is going to be a flourishing successor for the tech giant. What are Analysts Saying About AAPL? If you’re wondering which analyst you should follow if you want to buy and sell AAPL stock, the most accurate analyst covering the stock (on a one-year timeframe) is Krish Sankar from TD Cowen, with an average return of 93% per rating and a 49.16% success rate.
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Apple (NASDAQ:AAPL) unveiled the iPhone 15 on Tuesday, which, in my view, is going to be a flourishing successor for the tech giant. What are Analysts Saying About AAPL? If you’re wondering which analyst you should follow if you want to buy and sell AAPL stock, the most accurate analyst covering the stock (on a one-year timeframe) is Krish Sankar from TD Cowen, with an average return of 93% per rating and a 49.16% success rate.
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Apple (NASDAQ:AAPL) unveiled the iPhone 15 on Tuesday, which, in my view, is going to be a flourishing successor for the tech giant. What are Analysts Saying About AAPL? If you’re wondering which analyst you should follow if you want to buy and sell AAPL stock, the most accurate analyst covering the stock (on a one-year timeframe) is Krish Sankar from TD Cowen, with an average return of 93% per rating and a 49.16% success rate.
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Apple (NASDAQ:AAPL) unveiled the iPhone 15 on Tuesday, which, in my view, is going to be a flourishing successor for the tech giant. What are Analysts Saying About AAPL? If you’re wondering which analyst you should follow if you want to buy and sell AAPL stock, the most accurate analyst covering the stock (on a one-year timeframe) is Krish Sankar from TD Cowen, with an average return of 93% per rating and a 49.16% success rate.
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13667.0
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2023-09-14 00:00:00 UTC
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Warren Buffett Owns a Lot of Stocks -- Here's the One I'm Most Excited About
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-owns-a-lot-of-stocks-heres-the-one-im-most-excited-about-6
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nan
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nan
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Berkshire Hathaway, the conglomerate headed by famed investor Warren Buffett, has a huge public equities portfolio currently valued at more than $350 billion. Investors analyze this list of companies to find worthwhile investment opportunities, which seems like a good idea given the Oracle of Omaha's stellar track record.
But of the dozens of stocks that Warren Buffett owns, I'm most excited about Mastercard (NYSE: MA), which makes up just a tiny 0.5% fraction of Berkshire's overall portfolio.
Strong financials
Anyone who follows Buffett would know that he has a liking for companies that are in favorable financial positions. Just look at Apple, which is Berkshire's largest holding by far. The tech behemoth generated more $110 billion of free cash flow (FCF) last fiscal year and currently has $57 billion of net cash on the balance sheet. The benefit of this is that the business has virtually no chance of running into any financial troubles.
However, even the iPhone maker doesn't have the lofty profitability metrics that Mastercard does. During the latest quarter, the card payments giant posted an operating margin of 58.3%, which is just outstanding and compared favorably to Apple's 29.2% as of the end of June. And Mastercard's FCF generation of $4 billion in the first six months of 2023 equated to 33% of revenue during the period.
The latest financial results are also impressive, especially when you consider the uncertain economic environment we are in. Mastercard's revenue and diluted earnings per share (EPS) jumped 14% and 28%, respectively, year over year. The key to this was momentum in cross-border payments, which were up 24% from Q2 2022, thanks to robust travel demand.
But this strong performance is nothing new, as Mastercard has a long history of financial success. In the 10-year period between 2012 and 2022, sales rose at a compound annual rate of 11.6%, and diluted earnings per share increased at an annualized clip of 16.7%. It's no wonder the stock has climbed 540% in the past 10 years (as of Sept. 11).
Diversifying revenues
Mastercard's chief business line is processing electronic payments, collecting fees anytime one of its 2.8 billion cards is swiped at tens of millions of merchants around the world. In fact, in the past three months, the business handled $2.3 trillion of payments volume, second only to Visa. This model of running an asset-light payments network has clearly been lucrative, as I noted earlier regarding the financial picture.
And the added benefit is that Mastercard's revenue is essentially hedged against inflationary pressures. This means that if cardholders have to pay more for things in their daily lives, like gas, groceries, or travel and entertainment, Mastercard gains with the promise of higher revenue potential. I'm sure Buffett appreciates this.
In recent years, Mastercard has been expanding its segment called "value-added services and solutions," which includes offerings like cyber and intelligence, data and services, and processing and gateway solutions. All of these are geared toward providing financial institutions, merchants, and governments with the tools and capabilities necessary to better operate in a world that is only going to become increasingly digital. Revenue in this segment totaled $2.2 billion in the most recent quarter (35% of Mastercard's total), up 17% year over year -- faster than the growth of the overall company.
A reason to be cautious
It's not all good news, however. Perhaps the most obvious reason that Berkshire and Buffett don't own much more of Mastercard is its current valuation. The shares trade at a steep price-to-earnings ratio of 39. While a business of this caliber certainly deserves to sell at an above-average multiple, the current valuation is still more expensive than the trailing-10-year average for the stock.
Mastercard is no doubt an outstanding company, but maybe it's best for investors to wait for a better entry price, or even follow in Buffett's footsteps and initiate just a tiny position to start.
10 stocks we like better than Mastercard
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Mastercard wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 11, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors analyze this list of companies to find worthwhile investment opportunities, which seems like a good idea given the Oracle of Omaha's stellar track record. Diversifying revenues Mastercard's chief business line is processing electronic payments, collecting fees anytime one of its 2.8 billion cards is swiped at tens of millions of merchants around the world. This means that if cardholders have to pay more for things in their daily lives, like gas, groceries, or travel and entertainment, Mastercard gains with the promise of higher revenue potential.
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Revenue in this segment totaled $2.2 billion in the most recent quarter (35% of Mastercard's total), up 17% year over year -- faster than the growth of the overall company. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard.
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Diversifying revenues Mastercard's chief business line is processing electronic payments, collecting fees anytime one of its 2.8 billion cards is swiped at tens of millions of merchants around the world. Revenue in this segment totaled $2.2 billion in the most recent quarter (35% of Mastercard's total), up 17% year over year -- faster than the growth of the overall company. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard.
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Strong financials Anyone who follows Buffett would know that he has a liking for companies that are in favorable financial positions. Perhaps the most obvious reason that Berkshire and Buffett don't own much more of Mastercard is its current valuation. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa.
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13668.0
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2023-09-14 00:00:00 UTC
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Belgium reviews Apple's iPhone 12 after France halts sales over radiation
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AAPL
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https://www.nasdaq.com/articles/belgium-reviews-apples-iphone-12-after-france-halts-sales-over-radiation
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nan
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nan
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By Marine Strauss and Tassilo Hummel
PARIS, Sept 14 (Reuters) - Belgium said on Thursday it would review the potential health risks linked to Apple's APPL.O iPhone 12, becoming the latest European country to react after France ordered a halt to sales citing breaches of radiation exposure limits.
Apple on Wednesday said the iPhone 12, launched in 2020, was certified by multiple international bodies as compliant with radiation standards and that it was contesting France's findings.
But Paris' move to halt iPhone 12 sales until Apple fixes the radiation issues detected in two tests raised the prospect of further bans in Europe.
Researchers have conducted a vast number of studies over the last two decades to assess health risks resulting from mobile phones. According to the World Health Organisation, no adverse health effects have been established as being caused by mobile phone use.
"It is my duty to make sure all citizens ... are safe", Mathieu Michel, Belgium's state secretary for digitalisation, said in a statement emailed to Reuters.
"I have rapidly reached out to the IBPT-BIPT (regulator) to ask for an analysis about the potential danger of the product", Michel said, adding he had also asked the regulator to review all Apple smartphones, as well as devices made by other producers, at a later stage.
Germany's network regulator BNetzA reiterated that the work in France could act as a guide for Europe as a whole and that it would examine the issue for the German market if the process in France had progressed sufficiently.
The Dutch digital watchdog also said it was looking into the matter and would ask the U.S. firm for an explanation, while stressing there was "no acute safety risk".
The Italian industry ministry said it was monitoring the situation but not taking any action for now.
Apple doesn't break out its sales by country or model. Its revenues totalled about $95 billion in Europe last year, making the region its second biggest behind the Americas. Some estimates say it sold over 50 million iPhones last year in Europe. The company launched the iPhone 15 on Tuesday.
EXPLAINER: Why has France banned sales of Apple's iPhone 12?
(Reporting by Marine Strauss in Brussels and Tassilo Hummel in Paris Additional reporting by Giuseppe Fonte in Rome Editing by Ingrid Melander and Mark Potter)
((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;))
The views and 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 Marine Strauss and Tassilo Hummel PARIS, Sept 14 (Reuters) - Belgium said on Thursday it would review the potential health risks linked to Apple's APPL.O iPhone 12, becoming the latest European country to react after France ordered a halt to sales citing breaches of radiation exposure limits. Apple on Wednesday said the iPhone 12, launched in 2020, was certified by multiple international bodies as compliant with radiation standards and that it was contesting France's findings. But Paris' move to halt iPhone 12 sales until Apple fixes the radiation issues detected in two tests raised the prospect of further bans in Europe.
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By Marine Strauss and Tassilo Hummel PARIS, Sept 14 (Reuters) - Belgium said on Thursday it would review the potential health risks linked to Apple's APPL.O iPhone 12, becoming the latest European country to react after France ordered a halt to sales citing breaches of radiation exposure limits. But Paris' move to halt iPhone 12 sales until Apple fixes the radiation issues detected in two tests raised the prospect of further bans in Europe. EXPLAINER: Why has France banned sales of Apple's iPhone 12?
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By Marine Strauss and Tassilo Hummel PARIS, Sept 14 (Reuters) - Belgium said on Thursday it would review the potential health risks linked to Apple's APPL.O iPhone 12, becoming the latest European country to react after France ordered a halt to sales citing breaches of radiation exposure limits. Apple on Wednesday said the iPhone 12, launched in 2020, was certified by multiple international bodies as compliant with radiation standards and that it was contesting France's findings. But Paris' move to halt iPhone 12 sales until Apple fixes the radiation issues detected in two tests raised the prospect of further bans in Europe.
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By Marine Strauss and Tassilo Hummel PARIS, Sept 14 (Reuters) - Belgium said on Thursday it would review the potential health risks linked to Apple's APPL.O iPhone 12, becoming the latest European country to react after France ordered a halt to sales citing breaches of radiation exposure limits. Apple on Wednesday said the iPhone 12, launched in 2020, was certified by multiple international bodies as compliant with radiation standards and that it was contesting France's findings. EXPLAINER: Why has France banned sales of Apple's iPhone 12?
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13669.0
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2023-09-14 00:00:00 UTC
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Investors Flee Mega-Cap Tech Stocks with China Exposure
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AAPL
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https://www.nasdaq.com/articles/investors-flee-mega-cap-tech-stocks-with-china-exposure
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nan
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nan
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The resurgence in geopolitical tensions between China and other countries has prompted some investors to shift their asset allocations away from companies exposed to China. The latest challenges include the Chinese government’s position on Apple (AAPL) and the news that the European Union was investigating Chinese subsidies for electric vehicles.
The concerns about China have investors fleeing some mega-cap technology stocks with major exposure to China, such as Apple and Nvidia (NVDA), and moving into other mega-cap technology stocks without China exposure, such as Alphabet (GOOGL) and Meta Platforms (META), both of which are blocked from operating in China. Also, Amazon.com (AMZN), which exited China, should benefit.
Fiduciary Trust Company said, “We are significantly underweight stocks with China exposure, driven by concerns over investor protections, the country’s economic competition with the West, and the simple reality that China is not the growth engine it once was.”
Other investment managers are beginning to diversify some of their assets away from mega-cap technology stocks with significant exposure to China. Winslow Capital Management said China’s move to restrict the use of Apple products in state-owned companies and other government agencies “suggests things could become incrementally more difficult for Apple or other companies with large chunks of China revenue.” Winslow Capital Management, which owns both Apple and Tesla in its portfolio, said it is underweight the pair relative to their size in the Russell 1000 Growth Index.
A recent Bank of America global fund manager survey shows that due to broader concerns about China’s struggling economy, investors have shifted their equity allocations toward the U.S. and away from China, saying the “avoid China” theme has become one of the biggest convictions among its surveyed investors. According to the survey, emerging markets asset allocation fell to a net 9% overweight in September from 34%, the lowest reading since November 2022. In contrast, allocation to U.S. equities rose 29 percentage points to a net 7% overweight, the first overweight reading since August of last year.
Other mega-cap technology companies besides Apple, which received 19% of its revenue from China last year, have significant revenue exposure to China. Tesla (TSLA) and Nvidia get more than 20% of their annual revenue from China. Also, Broadcom’s (AVGO) China revenue exposure is 35%, and Qualcomm’s (QCOM) revenue exceeds 60%.
According to Fiduciary Trust Company, revenues taking a hit, or the potential exposure of having to reconfigure supply chains should tensions mount, could weigh on the stocks of companies with significant China exposure. “Neither are very encouraging for any company with exposure to China. This issue is hanging over all of them, and it has to be priced accordingly.”
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The latest challenges include the Chinese government’s position on Apple (AAPL) and the news that the European Union was investigating Chinese subsidies for electric vehicles. Winslow Capital Management said China’s move to restrict the use of Apple products in state-owned companies and other government agencies “suggests things could become incrementally more difficult for Apple or other companies with large chunks of China revenue.” Winslow Capital Management, which owns both Apple and Tesla in its portfolio, said it is underweight the pair relative to their size in the Russell 1000 Growth Index. According to the survey, emerging markets asset allocation fell to a net 9% overweight in September from 34%, the lowest reading since November 2022.
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The latest challenges include the Chinese government’s position on Apple (AAPL) and the news that the European Union was investigating Chinese subsidies for electric vehicles. The concerns about China have investors fleeing some mega-cap technology stocks with major exposure to China, such as Apple and Nvidia (NVDA), and moving into other mega-cap technology stocks without China exposure, such as Alphabet (GOOGL) and Meta Platforms (META), both of which are blocked from operating in China. Fiduciary Trust Company said, “We are significantly underweight stocks with China exposure, driven by concerns over investor protections, the country’s economic competition with the West, and the simple reality that China is not the growth engine it once was.” Other investment managers are beginning to diversify some of their assets away from mega-cap technology stocks with significant exposure to China.
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The latest challenges include the Chinese government’s position on Apple (AAPL) and the news that the European Union was investigating Chinese subsidies for electric vehicles. The concerns about China have investors fleeing some mega-cap technology stocks with major exposure to China, such as Apple and Nvidia (NVDA), and moving into other mega-cap technology stocks without China exposure, such as Alphabet (GOOGL) and Meta Platforms (META), both of which are blocked from operating in China. Fiduciary Trust Company said, “We are significantly underweight stocks with China exposure, driven by concerns over investor protections, the country’s economic competition with the West, and the simple reality that China is not the growth engine it once was.” Other investment managers are beginning to diversify some of their assets away from mega-cap technology stocks with significant exposure to China.
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The latest challenges include the Chinese government’s position on Apple (AAPL) and the news that the European Union was investigating Chinese subsidies for electric vehicles. Fiduciary Trust Company said, “We are significantly underweight stocks with China exposure, driven by concerns over investor protections, the country’s economic competition with the West, and the simple reality that China is not the growth engine it once was.” Other investment managers are beginning to diversify some of their assets away from mega-cap technology stocks with significant exposure to China. According to the survey, emerging markets asset allocation fell to a net 9% overweight in September from 34%, the lowest reading since November 2022.
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13670.0
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2023-09-14 00:00:00 UTC
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1 Undervalued Stock to Buy Near 52-Week Lows
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AAPL
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https://www.nasdaq.com/articles/1-undervalued-stock-to-buy-near-52-week-lows
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nan
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nan
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Despite the sharp rise in broader U.S. equity markets in 2023, Teladoc Health (TDOC) shares have sagged and are down more than 7% for the year. The stock is now hovering near its 52-week lows, extending its dismal performance of the last couple of years. TDOC peaked at around $295 in February 2021, and has been sliding ever since – including a 74% fall in 2022.
www.barchart.com
To be sure, it wouldn't be prudent to single out the shares on this basis alone, as many other former “stay-at-home” winners from the COVID-19 era peaked at around the same time and have since fallen significantly. Growth stocks – especially the perennially loss-making names, like Teladoc Health – have had a horrid run over the last couple of years as the Fed has consistently hiked rates, and many now trade at a fraction of their all-time highs.
That said, while Teladoc Health stock is currently out of favor with markets, I believe it makes sense to buy this beaten-down stock. Here's why.
1. The Telehealth Market Holds a Lot of Promise
I believe that the healthcare market hasn’t yet been disrupted by digitization, unlike many other industries. It's no wonder, then, that tech giants like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) have all made forays into healthcare.
Market research firm Research Ocean estimates the telehealth market to reach $70.19 billion in 2026, up from $26.4 billion in 2020 – a CAGR of 17.7%. A separate survey conducted by Teladoc Health this year revealed that “three out of every four employers expect to spend more on virtual care over the next three years.” The survey also showed that more than half of the employers were planning to implement a whole-person virtual care strategy – a key focus area for Teladoc Health.
2. Teladoc Health Has Built a Strong Ecosystem
Teladoc Health has built a strong ecosystem of 12,000 clients and around 86 million members. While the membership growth has tapered down, the vast base represents a massive cross-sell opportunity for Teladoc Health. Along with integrated care, Teladoc also offers mental healthcare through its BetterHelp platform – which, incidentally, has better margins.
Weight management services could be another growth driver for TDOC in the coming quarters, along with international operations and global expansion.
3. Teladoc Health’s Growth is Stabilizing
The COVID-19 pandemic helped drive sales of companies like Teladoc Health, and its revenues rose 98% and 85.8% in 2020 and 2021, respectively. Last year, sales growth fell to 18.4%, and analysts expect continuing contraction, with revenue growth estimated at 9.4% in 2023 and 8% in 2024.
www.barchart.com
While Teladoc Health might not recover to the near triple-digit revenue growth it enjoyed during the pandemic, its growth is nonetheless stabilizing, and I believe there is an upside to these estimates as the company expands internationally and looks for more cross-sell opportunities - plus, expands to a weight-loss segment.
Also, while TDOC is currently posting net losses, analysts expect these deficits to narrow in the coming years.
4. TDOC Looks Undervalued
Notably, despite perennial losses, Teladoc Health boasts of strong cash flows and raised its 2023 free cash flow guidance to $150 million. It also has around $1 billion cash on its balance sheet, which the company counts among its competitive advantages. In fact, during the Q2 2023earnings call Teladoc Health’s CEO Jason Gorevic said that some of the clients the company speaks to have concerns about the financial strength and viability of their partners – which is where Teladoc Health stands out, with its strong balance sheet and free cash flow generation.
From a valuation perspective, Teladoc Health trades at an NTM (next-12 months) price-to-sales multiple of 1.32x, which is the cheapest ever – and while they might not rise to the kind of astronomical levels that we saw in 2020 and 2021, the stock nonetheless looks quite cheap at these levels. The NTM enterprise value-to-earnings before interest, tax, depreciation, and amortization of 12.8x also looks quite reasonable.
TDOC Analyst Ratings
Wall Street analysts rate TDOC as a Moderate Buy. Of the 20 analysts covering the stock, 5 rate it as a Strong Buy while 1 calls it a Moderate Buy. The remaining 14 analysts rate the stock as a Hold.
Its mean target price of $31 is 41% above current prices. Incidentally, TDOC trades even below its Street-low target price of $23.
www.barchart.com
Overall, I believe that a reasonably strong growth outlook, improving financials, and attractive valuations make Teladoc Health stock a good buy at these prices - even as the stock remains out of favor with most investors.
On the date of publication, Mohit Oberoi had a position in: TDOC , AAPL , MSFT , GOOG , AMZN . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's no wonder, then, that tech giants like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) have all made forays into healthcare. On the date of publication, Mohit Oberoi had a position in: TDOC , AAPL , MSFT , GOOG , AMZN . Growth stocks – especially the perennially loss-making names, like Teladoc Health – have had a horrid run over the last couple of years as the Fed has consistently hiked rates, and many now trade at a fraction of their all-time highs.
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It's no wonder, then, that tech giants like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) have all made forays into healthcare. On the date of publication, Mohit Oberoi had a position in: TDOC , AAPL , MSFT , GOOG , AMZN . Teladoc Health Has Built a Strong Ecosystem Teladoc Health has built a strong ecosystem of 12,000 clients and around 86 million members.
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It's no wonder, then, that tech giants like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) have all made forays into healthcare. On the date of publication, Mohit Oberoi had a position in: TDOC , AAPL , MSFT , GOOG , AMZN . Last year, sales growth fell to 18.4%, and analysts expect continuing contraction, with revenue growth estimated at 9.4% in 2023 and 8% in 2024. www.barchart.com While Teladoc Health might not recover to the near triple-digit revenue growth it enjoyed during the pandemic, its growth is nonetheless stabilizing, and I believe there is an upside to these estimates as the company expands internationally and looks for more cross-sell opportunities - plus, expands to a weight-loss segment.
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It's no wonder, then, that tech giants like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) have all made forays into healthcare. On the date of publication, Mohit Oberoi had a position in: TDOC , AAPL , MSFT , GOOG , AMZN . Last year, sales growth fell to 18.4%, and analysts expect continuing contraction, with revenue growth estimated at 9.4% in 2023 and 8% in 2024. www.barchart.com While Teladoc Health might not recover to the near triple-digit revenue growth it enjoyed during the pandemic, its growth is nonetheless stabilizing, and I believe there is an upside to these estimates as the company expands internationally and looks for more cross-sell opportunities - plus, expands to a weight-loss segment.
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13671.0
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2023-09-14 00:00:00 UTC
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The 7 Most Undervalued Growth Stocks to Buy in September 2023
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AAPL
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https://www.nasdaq.com/articles/the-7-most-undervalued-growth-stocks-to-buy-in-september-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Many well-known, undervalued growth stocks can be bought now at cheaper prices. The key is for investors to know where to look to snap up these very growth stocks that can give their portfolio a shot in the arm. And provide them with consistent, long-term gains. In fact, here are seven to strongly consider.
Undervalued Growth Stocks: Applied Materials (AMAT)
Source: michelmond / Shutterstock.com
Applied Materials (NASDAQ:AMAT) continues to be an indispensable part of the global chip and semiconductor sector, supplying the equipment, services, and software needed to manufacture the semiconductors and microchips that are found in computers, smartphones, TVs, and other electronics.
Year to date, the AMAT stock rocketed about 51% higher this year and is up 275% over five years. However, the valuation of Applied Materials’ stock still looks reasonable at 19 times forward earnings estimates. Compare that to the price-earnings (P/E) ratio of microchip and semiconductor company Nvidia (NASDAQ:NVDA). which is currently at 110. A mature company, Applied Materials is also one of the few chip companies to pay its shareholders a dividend. Currently, AMAT stock offers a quarterly payout of 32 cents a share for a yield of 0.87%. Not huge, but better than nothing, which is what most chip stocks pay.
Apple (AAPL)
Source: askarim / Shutterstock
Apple (NASDAQ:AAPL) has taken some knocks lately, creating a buying opportunity. Granted, the stock did decline on news the Chinese government is banning government workers from using iPhones. However, Apple remains a top growth stock and technology company that investors should buy and hold for the long haul. After all, it’s been through far worse.
The company’s market capitalization surpassed $3 trillion earlier this year, its earnings remain strong as it aggressively grows service offerings that include Apple Pay and Apple TV. It’s also cash-rich, enabling the company to buy back more of its own stock. With a new augmented reality headset coming to market and a loyal customer base, Apple remains a winner. AAPL stock has increased 40% this year and is up 214% over five years.
Undervalued Growth Stocks: Oracle (ORCL)
Source: Jer123 / Shutterstock.com
Oracle (NYSE:ORCL) fell more than 10% after the company’s second-quarter financial results. While its earnings per share (EPS) of $1.19 was ahead of expectations for $1.15, revenue came in at $12.45 billion. That was below the $12.47 billion that was expected by analysts. The real problem though was the forward guidance that Oracle provided, though.
Oracle now expects to see $1.30 to $1.34 per share. and 5% to 7% revenue growth in its third quarter. Analysts had expected $1.33 in EPS and $13.28 billion in revenue, which implies 8% revenue growth. Management said earnings continue to be impacted by the integration of Cerner, the electronic health records software company that Oracle acquired last year. Also, Oracle’s cloud business continues to grow by leaps and bounds, where revenues grew about 66% year over year.
Helping, the company pays a quarterly dividend of 40 cents a share, for a yield of 1.43%.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
Qualcomm (NASDAQ:QCOM) just announced a new deal that will see it supply fifth-generation (5G) wireless Internet microchips to Apple. In fact, the new deal replaces one that Qualcomm had in place with Apple since 2019 that was due to expire by year’s end.
We should add that the new deal with Apple was a welcome relief to QCOM shareholders and was applauded by analysts. Hopefully, the new contract with Apple will ignite a spark in Qualcomm’s share price. Over the last 12 months, the stock has decreased by 10%. Even better, Qualcomm pays a quarterly dividend of 80 cents a share, which gives it a hefty yield of 2.82%. Qualcomm is another undervalued growth stock to buy.
Undervalued Growth Stocks: Lululemon (LULU)
Source: lentamart / Shutterstock
Not all growth stocks are in technology. Take, for example, Lululemon (NASDAQ:LULU), the popular athletic apparel retailer. The company’s share price has increased 155% over the last five years, though it has only gained about 16% in the past 12 months. LULU stock is also currently trading nearly 20% below the all-time high it reached in November 2021 when the broader stock market reached its zenith. The company’s yoga pants and other workout clothes became extremely popular during the pandemic as people worked from home.
Lululemon continues to post strong earnings. Most recently, it reported its fiscal second-quarter profit rose 18% from a year earlier amid robust sales in China. Specifically, the company said its revenue in China rose 61% year-over-year in fiscal Q2. Lululemon is now forecasting sales of between $9.51 billion and $9.57 billion, up from a previous range of $9.44 billion to $9.51 billion. Profits for the current fiscal year are expected to be between $12.02 and $12.17 per share, also up from previous guidance.
McDonald’s (MCD)
Source: Tama2u / Shutterstock
Fast food giant McDonald’s (NYSE:MCD) has traditionally been a reliable growth stock. Trading at 26 times future earnings estimates and offering a dividend of $1.52 per share for a yield of 2.15%, there are still plenty of reasons to invest. MCD stock recently caught an analyst upgrade from Wells Fargo (NYSE:WFC), with a price target of $310 per share.
McDonald’s also reported better-than-expected second-quarter earnings. In addition, given its comparatively low prices and popular dollar menu, McDonald’s is the type of company where sales remain strong in any economic environment. Like Lululemon, McDonald’s says its recent earnings outperformance was given a boost by strong sales in China, where same-store sales rose 14% from a year earlier. The company also continues to gain traction from promotions, particularly ones aimed at kids such as its popular “Grimace Birthday Meal.”
Salesforce (CRM)
We’ll end where we began with technology and cloud computing giant Salesforce (NYSE:CRM). After enduring poor earnings, executive departures, and challenges from activist shareholders, Salesforce looks to be back on track. The company recently reported Q2 financial results that crushed Wall Street forecasts, sending its stock up 6%. Salesforce reported EPS of $2.12 versus $1.90 that had been penciled in by analysts. Revenue totaled $8.60 billion compared to $8.53 billion that was anticipated. The company’s revenue increased 11% from a year earlier.
Salesforce said it saw growth in all five of its product categories during Q2 and added that it sees further expansion through artificial intelligence (AI), which was music to the ears of analysts and investors. The company also announced an AI cloud computing product that will include tools for marketing and data analytics, which was also roundly applauded. Looking forward, the company expects EPS of $2.05 to $2.06 on $8.7 billion to $8.72 billion in revenue for Q3. While CRM stock has gained more than 60% this year, it is only up 40% over the past five years and is 30% below its all-time high.
On the date of publication, Joel Baglole held long positions in AMAT, NVDA and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post The 7 Most Undervalued Growth Stocks to Buy in September 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) has taken some knocks lately, creating a buying opportunity. AAPL stock has increased 40% this year and is up 214% over five years. On the date of publication, Joel Baglole held long positions in AMAT, NVDA and AAPL.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) has taken some knocks lately, creating a buying opportunity. AAPL stock has increased 40% this year and is up 214% over five years. On the date of publication, Joel Baglole held long positions in AMAT, NVDA and AAPL.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) has taken some knocks lately, creating a buying opportunity. AAPL stock has increased 40% this year and is up 214% over five years. On the date of publication, Joel Baglole held long positions in AMAT, NVDA and AAPL.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) has taken some knocks lately, creating a buying opportunity. AAPL stock has increased 40% this year and is up 214% over five years. On the date of publication, Joel Baglole held long positions in AMAT, NVDA and AAPL.
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2023-09-14 00:00:00 UTC
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Fox (FOXA) Nation to Premiere Dahmer Family Tapes Docuseries
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https://www.nasdaq.com/articles/fox-foxa-nation-to-premiere-dahmer-family-tapes-docuseries
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Fox FOXA is set to release a new docuseries, My Son Jeffrey: The Dahmer Family Tapes, on Sep 18.
This four-part limited series includes unheard conversations between the notorious serial killer and cannibal Jeffrey Dahmer and his father Lionel, along with exclusive videos from the Dahmer family. The series provides fresh perspectives on one of the world’s most infamous string of crimes, which resulted in Jeffrey Dahmer receiving a 957-year prison sentence in Wisconsin.
Interviewees for the series comprise various individuals, such as a high school friend of Dahmer, Mike Kukral; retired Lieutenants Kenneth Meuler and Michael Dubis from the Milwaukee Police Department, who were at the crime scene during Dahmer's arrest and played central roles in the case. Other interviewees include a retired FBI profiler Dan Craft, who interviewed and profiled Dahmer for the FBI on three separate occasions; Michael Prochaska, Dahmer's college roommate; and survivor Ronald Flowers, who escaped after enduring four days of captivity and sexual abuse by Dahmer.
Fox Corporation Price and Consensus
Fox Corporation price-consensus-chart | Fox Corporation Quote
Fox Nation’s Recent Shows to Aid Top-Line Growth
Fox Nation’s new shows that released recently have been well received by the audience. These shows include titles like Life of Luxury, The Killer Interview and The Fall of The House of Murdaugh. These shows are expected to boost the company’s top line in the upcoming quarter.
The Zacks Consensus Estimate for FOXA’s first-quarter fiscal 2024 revenues is pegged at $3.19 billion, indicating a year-over-year decline of 0.14%. The Zacks Consensus Estimate for earnings is pegged at a profit of $1 per share, indicating a year-over-year decline of 17.36%.
FOX Nation has launched a new show, Life of Luxury, with Judge Jeanine on Sep 12. In the first season of the series, Judge Jeanine Pirro explores some of America's most luxurious and extravagant hotels. Accompanied by special guests, she provides access to remarkable mountain vistas and stunning turquoise waters.
The Killer Interview with Piers Morgan also premiered on Tuesday, Sep 12. This eight-episode series, produced in collaboration with Plum Pictures and Wake Up Productions, focuses on some of the highly debated murder cases in the United States. During each episode, convicted killers will have chance to argue their innocence.
FOX Nation premiered a new three-part docuseries, The Fall of the House of Murdaugh, on Aug 31. This limited series provides exclusive access to the family, friends and legal defense team of Alex Murdaugh, a formerly prominent South Carolina attorney who was convicted earlier this year because of murdering his wife and son.
Shares of this Zacks Rank #3 (Hold) company have gained 3.3% year to date compared with the Zacks Consumer & Discretionary sector’s rise of 8.5% over the same time frame due to tough competition from players like Apple AAPL, Netflix NFLX and Amazon AMZN.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple TV Plus is known for its affordability among premium streaming services and offers an ad-free experience. It stands out by exclusively providing original content with upcoming releases like Invasion, Camp Snoopy and Super Models.
Netflix is a well-renowned leader in the streaming industry. It is famous because of its highly acclaimed original shows. Its upcoming original shows are Lift, Bodies and Choona.
Amazon Prime, a major player in the online streaming sector, is preparing to launch exciting projects, such as The Boys 2, DOM and Citadel 2, which are anticipated to perform strongly and attract a large number of viewers.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of this Zacks Rank #3 (Hold) company have gained 3.3% year to date compared with the Zacks Consumer & Discretionary sector’s rise of 8.5% over the same time frame due to tough competition from players like Apple AAPL, Netflix NFLX and Amazon AMZN. 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 Fox Corporation (FOXA) : Free Stock Analysis Report To read this article on Zacks.com click here. The series provides fresh perspectives on one of the world’s most infamous string of crimes, which resulted in Jeffrey Dahmer receiving a 957-year prison sentence in Wisconsin.
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Shares of this Zacks Rank #3 (Hold) company have gained 3.3% year to date compared with the Zacks Consumer & Discretionary sector’s rise of 8.5% over the same time frame due to tough competition from players like Apple AAPL, Netflix NFLX and Amazon AMZN. 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 Fox Corporation (FOXA) : Free Stock Analysis Report To read this article on Zacks.com click here. Fox Corporation Price and Consensus Fox Corporation price-consensus-chart | Fox Corporation Quote Fox Nation’s Recent Shows to Aid Top-Line Growth Fox Nation’s new shows that released recently have been well received by the audience.
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Shares of this Zacks Rank #3 (Hold) company have gained 3.3% year to date compared with the Zacks Consumer & Discretionary sector’s rise of 8.5% over the same time frame due to tough competition from players like Apple AAPL, Netflix NFLX and Amazon AMZN. 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 Fox Corporation (FOXA) : Free Stock Analysis Report To read this article on Zacks.com click here. Fox Corporation Price and Consensus Fox Corporation price-consensus-chart | Fox Corporation Quote Fox Nation’s Recent Shows to Aid Top-Line Growth Fox Nation’s new shows that released recently have been well received by the audience.
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Shares of this Zacks Rank #3 (Hold) company have gained 3.3% year to date compared with the Zacks Consumer & Discretionary sector’s rise of 8.5% over the same time frame due to tough competition from players like Apple AAPL, Netflix NFLX and Amazon AMZN. 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 Fox Corporation (FOXA) : Free Stock Analysis Report To read this article on Zacks.com click here. This four-part limited series includes unheard conversations between the notorious serial killer and cannibal Jeffrey Dahmer and his father Lionel, along with exclusive videos from the Dahmer family.
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13673.0
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2023-09-14 00:00:00 UTC
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The Best & Worst Performing Warren Buffett Stocks So Far in 2023
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https://www.nasdaq.com/articles/the-best-worst-performing-warren-buffett-stocks-so-far-in-2023
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Celebrated business magnate and Berkshire Hathaway (BRK.B) boss Warren Buffett has been a stock market ace for decades. The Oracle of Omaha is a staunch advocate of a value-based investing style, which involves buying stocks trading below intrinsic value with considerable defensive moats around their businesses.
Thanks to his outsized investing success, Buffett's methodology has attracted a legion of dedicated followers across the globe. Berkshire Hathaway's annual meeting is a major investing event, and quarterly filings that reveal Berkshire's latest buys and sells are dissected carefully in the financial media for clues about the investor's next big bet.
But with artificial intelligence (AI) driving so much of the stock market's gains in 2023, it's worth taking a look at Buffett's holdings right now to see which stocks are the leaders - and laggards - in the famously consumer-oriented portfolio.
Is tech giant Apple (AAPL) Berkshire's best performer as well as its largest holding? Or - with oil prices rocketing to new 2023 highs - maybe it's Buffett's current favorite energy play, Occidental Petroleum (OXY) that's leading the pack? And given widespread turmoil in the banking sector, did Bank of America (BAC) emerge as the worst performer?
As it turns out, none of the usual suspects mentioned above are the standouts in Buffett's portfolio right now. Instead, it's a Brazil-based banking stock that leads the pack, while a struggling streaming name is bringing up the rear. Here's a look at this year's best and worst-performing Buffett stocks so far.
Nu Holdings
The best-performing stock in Warren Buffett's portfolio this year, in terms of price action, has been the Brazil-focused digital bank Nu Holdings (NU).
Founded in 2013, shares of Nu have jumped a whopping 85% on a YTD basis, comfortably outpacing the S&P 500 Index's ($SPX) rise of 17% over the same period. The next best performer in the Buffett portfolio is Amazon (AMZN) - which NU has outpaced by 12 percentage points, on a YTD basis.
www.barchart.com
Nu is currently the largest digital bank in Latin America, with over 80 million customers in Brazil, Mexico and Colombia. The fintech company has a market cap of $35.45 billion and offers a variety of financial products and services, including checking and savings accounts, credit cards, loans, and investment products.
Notably, Nu is Buffett's largest holding outside the U.S., with 107.1 million shares in Berkshire's portfolio.
Nu's latest results for the second quarter were quite impressive, as the company reported a beat on both revenue and earnings. EPS for the quarter came in at $0.05, topped the consensus estimate of $0.04 and reversing a small loss in the year-ago period. Total revenues for the quarter stood at $1.87 billion, up 61.4% year-over-year.
Healthy growth in Nu's customer base (83.7 million in Q2 2023, up 28.2% YoY) and monthly average revenue per active customer ($9.3 in Q2 2023, up 19.2% YoY), along with prudent cost management measures, aided the top-line growth, as well as the bank's swing to profitability.
With consistent growth in critical banking metrics like net interest income ($1.05 billion in Q2 2023, up 134.8% YoY) and net interest margin (18.3% in Q2 2023 vs. 9.7% in Q2 2022), Nu has shown strength in core banking operations, too.
Looking ahead, analysts are forecasting stellar earnings growth for Nu in the near future. In the current quarter, analysts are expecting bottom-line growth of 400%, while for FY 2023, the consensus estimate is pegged at 325%.
www.barchart.com
Overall, analysts have given out a “Moderate Buy” rating on the stock, with a mean target price of $8.21. This indicates upside potential of about 8.5% from current levels. Out of 7 analysts covering the stock, 4 have a “Strong Buy” rating and 3 have a “Hold” rating.
www.barchart.com
Paramount Global
The worst-performing stock in Buffett's portfolio in 2023 has been Paramount Global (PARA), the media and entertainment conglomerate formed through the merger of Viacom and CBS in 2019.
Paramount Global stock has slipped 16.8% on a YTD basis - just a shade worse than Kraft Heinz (KHC), which is also weighing on the Berkshire portfolio with a 14.6% YTD slide.
www.barchart.com
Paramount currently commands a market cap of $8.7 billion, and offers a dividend yield of 5.76%. However, the company's long-term debt of $15.6 billion exceeds its total market cap, which is a cause of concern.
Buffett currently holds 93.7 million shares of Paramount Global's Class B shares.
With stubbornly high inflation levels continuing to hit the pockets of consumers, discretionary spending on entertainment has taken a hit. Moreover, its Paramount+ streaming platform is competing against established players such as Netflix (NFLX), Amazon's (AMZN) Prime Video, and Disney (DIS). Plus, the ongoing strikes in Hollywood have only complicated matters.
These operational challenges were reflected in the company's latest quarterly earnings, where Paramount reported a yearly decline in both revenue and earnings. Revenues for the second quarter stood at $7.62 billion, down 2% from the prior year on weakness in the TV Media and Filmed Entertainment segments. On the other hand, the Paramount+ streaming platform recorded growth in both revenue ($990 million, up 47.3% YoY) and subscribers (60.7 million, up 40.2% YoY), which offset the decline in legacy media revenues somewhat.
EPS, meanwhile, tumbled 84% from the prior year to $0.10. In fact, EPS at Paramount has dropped year-over-year in each of the past five quarters, and the company has beaten analysts' bottom-line expectations only once in this time frame.
That said, the company's content is finding some traction among key audiences. For instance, CBS claimed the #1 Spot in broadcast for the 15th straight season, and produced eight of the top 10 most watched series - including the top four. However, its major film releases in 2023 haven't fared as well, with Mission: Impossible - Dead Reckoning Part One requiring an insurance settlement to push it over the top towards profitability.
Taking all this into account, analysts have a soft earnings forecast for Paramount Global. For the current quarter, earnings are expected to drop by 74.4%.
www.barchart.com
Overall, analysts have handed out a “Hold” rating on the stock, with a mean target price of $19.12 - indicating upside potential of nearly 40% from current levels. Out of 21 analysts covering the stock, 4 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, 5 have a “Hold” rating and 10 have a “Strong Sell” rating.
www.barchart.com
Final Takeaway
While an under-the-radar Brazilian bank might not be the most obvious stock pick in the current climate, Nu certainly looks compelling at current levels. In light of its solid balance sheet, operational efficiencies, upbeat analyst estimates and optimistic growth forecasts, it's no surprise to find this name quietly leading the pack of Buffett stocks. Conversely, the mammoth debt levels and industry-specific troubles weighing on Paramount Global make this one streaming stock to avoid.
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Is tech giant Apple (AAPL) Berkshire's best performer as well as its largest holding? The Oracle of Omaha is a staunch advocate of a value-based investing style, which involves buying stocks trading below intrinsic value with considerable defensive moats around their businesses. However, its major film releases in 2023 haven't fared as well, with Mission: Impossible - Dead Reckoning Part One requiring an insurance settlement to push it over the top towards profitability.
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Is tech giant Apple (AAPL) Berkshire's best performer as well as its largest holding? Buffett currently holds 93.7 million shares of Paramount Global's Class B shares. These operational challenges were reflected in the company's latest quarterly earnings, where Paramount reported a yearly decline in both revenue and earnings.
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Is tech giant Apple (AAPL) Berkshire's best performer as well as its largest holding? Nu Holdings The best-performing stock in Warren Buffett's portfolio this year, in terms of price action, has been the Brazil-focused digital bank Nu Holdings (NU). www.barchart.com Paramount Global The worst-performing stock in Buffett's portfolio in 2023 has been Paramount Global (PARA), the media and entertainment conglomerate formed through the merger of Viacom and CBS in 2019.
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Is tech giant Apple (AAPL) Berkshire's best performer as well as its largest holding? Nu Holdings The best-performing stock in Warren Buffett's portfolio this year, in terms of price action, has been the Brazil-focused digital bank Nu Holdings (NU). Notably, Nu is Buffett's largest holding outside the U.S., with 107.1 million shares in Berkshire's portfolio.
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2023-09-14 00:00:00 UTC
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3 Metaverse Stocks to Invest in for Big-Time, Long-Term Gains
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https://www.nasdaq.com/articles/3-metaverse-stocks-to-invest-in-for-big-time-long-term-gains
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As the digital frontier expands, the allure of metaverse stocks to buy and hold becomes difficult to ignore for savvy investors. Positioned at the confluence of technology and immersive experiences, these stocks represent the future of interaction, commerce, virtual reality and other industries. Hence, for those seeking promising investment avenues offering both innovation and longevity, metaverse stocks to buy and hold could be your gateway.
Industry giants and budding innovators are all clamoring to stake their claim, propelling a surge of metaverse stocks primed to reshape portfolios potentially. Analysts are bullish, forecasting a radiant future for metaverse investments. While Contrive Datum Insights pegs the market at a staggering $1.3 trillion by 2030, Adecco Group’s projections soar to an astronomical $5 trillion. As this digital universe expands, three pioneering metaverse trailblazers are worth watching.
Roblox (RBLX)
Source: Miguel Lagoa / Shutterstock.com
Roblox (NYSE:RBLX), a pioneering metaverse platform developer, shines brilliantly as it navigates a rather challenging market environment. Though its bookings dropped post-pandemic, its recent results narrate a tale of ambition, with its second-quarter revenues at an impressive $680.8 million, marking a 15% year-on-year (YoY) bump. Moreover, bookings amplified to a robust $780.7 million, reflecting a 22% annual surge. Yet, amidst this growth, a net loss of $282.8 million nudges for attention.
Meanwhile, active engagement remains Roblox’s bedrock, with whooping 65.5 million daily users, up 25% annually, clocking in an astounding 14 billion hours on the platform. Yet, the spotlight now shifts to the Roblox Partner Program, a groundbreaking initiative heralding a new age of self-advertising within the platform, inviting a diverse pool from developers to global marketers. This initiative facilitates newer brands in effective advertising on the Roblox platform. Notable partners include Dubit, Playwire, Dentsu (OTCMKTS:DNTUF) and others. These collaborations aim to redefine immersive 3D content and innovative advertising, setting the stage for a brighter metaverse future.
Qualcomm (QCOM)
Source: Qualcomm
Qualcomm (NASDAQ:QCOM), a global semiconductor leader, stands poised in the metaverse, partnering with luminaries like Mercedes-Benz (OTCMKTS:MBGYY), BMW (OTCMKTS:BMWYY), and Amazon’s (NASDAQ:AMZN) AWS. Most recently, Qualcomm’s stock surged by over 8% on the back of news that Apple (NASDAQ:AAPL) extended its chip supply agreement until 2026, further solidifying its position in the market.
Furthermore, the imminent launch of the Mixed Reality Toolkit (MRTK), a synergistic endeavor involving Qualcomm, Microsoft (NASDAQ:MSFT), and Magic Leap, promises to reshape perceptions. Qualcomm’s audacious $100 million metaverse investment fund also targets creators and visionaries immersed in AR, mixed reality and VR, further solidifying its position in the sphere.
Moreover, Chief Executive Officer (CEO) Cristiano Amon envisions a future where the industrial applications of the metaverse overshadow the realms of social media and gaming. With TipRanks analysts suggesting a Moderate Buy, projecting a 20% bump from current price levels, this development signals a seismic shift in the digital landscape, hinting at a robust economic transformation.
Verizon (VZ)
Source: Shutterstock
Telecom titan Verizon (NYSE: VZ) carves an indispensable niche in the metaverse tapestry. Though a secondary play, Verizon’s bandwidth offerings are crucial to powering AR and VR wonders. Its infrastructure backbone ensures that every dive into the virtual world is crisp and lag-free, elevating Verizon’s clout.
Moreover, Verizon’s financial prowess takes center stage. Flaunting an impressive 8% annual dividend yield, intriguing murmurs of ESPN partnerships, and a stellar $18 billion operational cash flow in the first half are a testament to its solid positioning. As the 5G Ultra-Wideband Network takes shape, Verizon is on the cusp of revolutionizing virtual spaces.
Furthermore, its partnership with Meta (NASDAQ: META) is a pivotal cornerstone in shaping the metaverse landscape. After all, its Meta platforms spearheading the metaverse revolution. With stock valuations at historical lows and a trajectory set for a strong 16% upside as predicted by the TipRanks analysts, Verizon’s ascent seems inevitable.
On the date of publication, Muslim Farooque 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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post 3 Metaverse Stocks to Invest in for Big-Time, Long-Term Gains 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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Most recently, Qualcomm’s stock surged by over 8% on the back of news that Apple (NASDAQ:AAPL) extended its chip supply agreement until 2026, further solidifying its position in the market. Furthermore, the imminent launch of the Mixed Reality Toolkit (MRTK), a synergistic endeavor involving Qualcomm, Microsoft (NASDAQ:MSFT), and Magic Leap, promises to reshape perceptions. With TipRanks analysts suggesting a Moderate Buy, projecting a 20% bump from current price levels, this development signals a seismic shift in the digital landscape, hinting at a robust economic transformation.
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Most recently, Qualcomm’s stock surged by over 8% on the back of news that Apple (NASDAQ:AAPL) extended its chip supply agreement until 2026, further solidifying its position in the market. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As the digital frontier expands, the allure of metaverse stocks to buy and hold becomes difficult to ignore for savvy investors. Roblox (RBLX) Source: Miguel Lagoa / Shutterstock.com Roblox (NYSE:RBLX), a pioneering metaverse platform developer, shines brilliantly as it navigates a rather challenging market environment.
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Most recently, Qualcomm’s stock surged by over 8% on the back of news that Apple (NASDAQ:AAPL) extended its chip supply agreement until 2026, further solidifying its position in the market. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As the digital frontier expands, the allure of metaverse stocks to buy and hold becomes difficult to ignore for savvy investors. Qualcomm (QCOM) Source: Qualcomm Qualcomm (NASDAQ:QCOM), a global semiconductor leader, stands poised in the metaverse, partnering with luminaries like Mercedes-Benz (OTCMKTS:MBGYY), BMW (OTCMKTS:BMWYY), and Amazon’s (NASDAQ:AMZN) AWS.
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Most recently, Qualcomm’s stock surged by over 8% on the back of news that Apple (NASDAQ:AAPL) extended its chip supply agreement until 2026, further solidifying its position in the market. Moreover, bookings amplified to a robust $780.7 million, reflecting a 22% annual surge. Qualcomm’s audacious $100 million metaverse investment fund also targets creators and visionaries immersed in AR, mixed reality and VR, further solidifying its position in the sphere.
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13675.0
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2023-09-14 00:00:00 UTC
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Arm, Instacart: 3 Hot IPOs to Watch in Q3 2023
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https://www.nasdaq.com/articles/arm-instacart%3A-3-hot-ipos-to-watch-in-q3-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The U.S. IPO market was brutal last year, only generating a very lackluster $7.7 billion of funds for the entire 12 months. That was “the worst year on record” for IPOs, according to Kiplinger. But now multiple, large IPOs are on the way. Among the huge names whose shares are going to be listed soon are grocery delivery service Instacart and computer chip designer ARM Holdings (NASDAQ:ARM). Also noteworthy, Goldman Sachs (NYSE:GS) Chief Executive Officer (CEO) David Solomon reported that his firm was working on a number of large IPOs, which were in good shape.
Also upbeat about the IPO market was investment bank Renaissance Capital. In July, Renaissance wrote, “We believe the summer IPO market is poised to capitalize on several positive developments from the past quarter: The pause in rate hikes, the pickup in larger deals at quarter end, and improving returns, with the Renaissance IPO Index up 32% year-to-date.”
For investors looking to profit from the much-improved IPO market, here are three upcoming, hot IPOs to watch.
Instacart
Source: Burdun Iliya / Shutterstock
U.S. grocery delivery service Instacart is seeking to raise as much as $616 million and achieve a valuation of as much as $9.3 billion. The firm expects its shares to initially sell for $26 to $28 each.
Encouragingly, a number of Instacart’s largest investors have agreed to purchase “up to $400 million worth of shares sold in the offering,” Reuters reported. That indicates the largest investors in the company, likely very well-versed in its current performance and outlook, have decided to buy much more of its stock through its IPO. Of course, the investors’ enthusiasm bodes well for the future performance of Instacart and its shares. Moreover, their purchases of a high percentage of the shares available should put upward pressure on the share price in the wake of the IPO.
All of these factors certainly make Instacart, whose shares are expected to begin trading next week, one of the hot IPOs to watch.
ARM Holdings (ARM)
Source: T. Schneider / Shutterstock.com
Chip designer ARM Holdings launched its IPO on Sept. 13, and its shares are slated to begin trading today. Japanese investment bank SoftBank Group (OTCMKTS:SFTBY), which owns ARM, “priced its IPO at $51 per share, at the top of its indicated range,” Reuters reported. The company obtained $4.87 billion from the deal, which values ARM at $54.5 billion.
According to Reuters, several of Arm’s top customers, including Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), have agreed to buy significant amounts of the stock. Their willingness to buy the company’s shares validates its offerings and the outlook of ARM stock.
Impressively, Arm predicted its top line will increase 11% this year and about 25% next year, driven by the proliferation of artificial intelligence (AI) and data centers.
Klaviyo
Source: Shutterstock
Klaviyo developed a marketing automation platform. The company seeks to attain a valuation of $8 billion and a share price of $25 to $27, with an aim to raise as much as $518.4 million. Its shares are expected to debut next week.
Klaviyo’s founder and CEO, Andrew Bialecki, currently has a 38% stake in the company, so he’s certainly very well incentivized to work hard to boost the share price, assuming he holds onto a significant amount of his holdings following the IPO. Another major investor in Klaviyo is Shopify (NYSE:SHOP), the e-commerce giant.
Klaviyo should be able to utilize AI to greatly enhance the performance of its marketing platform.
On the date of publication, Larry Ramer 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.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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The post Arm, Instacart: 3 Hot IPOs to Watch in Q3 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to Reuters, several of Arm’s top customers, including Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), have agreed to buy significant amounts of the stock. Also noteworthy, Goldman Sachs (NYSE:GS) Chief Executive Officer (CEO) David Solomon reported that his firm was working on a number of large IPOs, which were in good shape. Encouragingly, a number of Instacart’s largest investors have agreed to purchase “up to $400 million worth of shares sold in the offering,” Reuters reported.
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According to Reuters, several of Arm’s top customers, including Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), have agreed to buy significant amounts of the stock. Among the huge names whose shares are going to be listed soon are grocery delivery service Instacart and computer chip designer ARM Holdings (NASDAQ:ARM). Instacart Source: Burdun Iliya / Shutterstock U.S. grocery delivery service Instacart is seeking to raise as much as $616 million and achieve a valuation of as much as $9.3 billion.
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According to Reuters, several of Arm’s top customers, including Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), have agreed to buy significant amounts of the stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The U.S. IPO market was brutal last year, only generating a very lackluster $7.7 billion of funds for the entire 12 months. In July, Renaissance wrote, “We believe the summer IPO market is poised to capitalize on several positive developments from the past quarter: The pause in rate hikes, the pickup in larger deals at quarter end, and improving returns, with the Renaissance IPO Index up 32% year-to-date.” For investors looking to profit from the much-improved IPO market, here are three upcoming, hot IPOs to watch.
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According to Reuters, several of Arm’s top customers, including Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), have agreed to buy significant amounts of the stock. Encouragingly, a number of Instacart’s largest investors have agreed to purchase “up to $400 million worth of shares sold in the offering,” Reuters reported. All of these factors certainly make Instacart, whose shares are expected to begin trading next week, one of the hot IPOs to watch.
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2023-09-14 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, MSCI Information Technology Index ETF and iShares US Technology ETF
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-technology-select-sector-spdr-fund-vanguard
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For Immediate Release
Chicago, IL – September 14, 2023 – Zacks.com announces the list of stocks and ETFs 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 and ETFs recently featured in the blog include: Apple AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW.
Here are highlights from Wednesday’s Analyst Blog:
Apple ETFs in Focus Post-iPhone 15 Launch
At its annual California launch event, Apple revealed a suite of devices, catching the eye of its vast consumer base and the global tech community. 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.
The event came just a few days after China imposed a ban on government officials using iPhones at work, leading to a sharp drop in Apple's market value by almost $200 billion. While Chinese pressure on Apple is a concern, it is expected to have a limited impact (read: What Lies Ahead for Apple ETFs After iPhone Use Ban?).
Given this, ETFs having the largest allocation to the tech giant are in focus. Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, MSCI Information Technology Index ETF and iShares US Technology ETF have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Insights Into the Features of the New Devices
iPhone 15 Series: Apple introduced its latest range of smartphones, including iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max. The new set of iPhones is available in pink, yellow, green, blue, and black color options with 6.1 and 6.7-inch displays. The standout feature of this series is the shift to USB-C charging ports, adhering to new European Union regulations aimed at reducing e-waste. The revamped AirPods Pro will also sport this USB-C port.
iPhone 15 features a Super Retina XDR display and A16 Bionic chip, while iPhone 15 Pro introduces titanium construction and an A17 Pro chip. iPhone 15 starts at $799, with the iPhone 15 Plus slightly pricier at $899. For those seeking premium features, iPhone 15 Pro and Pro Max are priced at $999 and $1,199, respectively. Customers can start preordering from Sep 15, with the official release slated for Sep 22 (see:all the Technology ETFs here).
Apple Watch Innovations: The Apple Watch family saw new additions, including the Apple Watch Series 9 and the upscale Apple Watch Ultra 2. Both are available for pre-order now. While Apple Watch SE is available at a competitive rate of $249, Series 9 is priced at $399. Ultra 2 starts at $799.
The Apple Watch Series 9 boasts significant improvements, featuring the new S9 chip that Apple claims is 60% faster, coupled with a 30% faster GPU. Notably, new features include health data access with Siri, Name Drop for sharing information with nearby users, and Double Tap for watch control. In a move toward sustainability, Apple declared the Apple Watch Series 9 as its pioneer carbon-neutral product, showcasing the company’s commitment to the environment.
ETFs in Focus
Technology Select Sector SPDR Fund
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 65 securities in its basket, with Apple making up 21.8% share. Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $50.3 billion and an average daily volume of 6 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF
Vanguard Information Technology ETF manages about $52.5 billion in its asset base and provides exposure to 323 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 22.7% share. Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 541,000 shares (read: Don't Fear Higher Rates: Tech ETFs to Rule on Nvidia & Allies).
MSCI Information Technology Index ETF
MSCI Information Technology Index ETF is home to 311 technology stocks with AUM of $7.2 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 22.3% allocation. MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 226,000 shares a day.
iShares US Technology ETF
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 135 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 17.5% of the assets. iShares Dow Jones US Technology ETF has AUM of $11.2 billion and charges 40 bps in fees and expenses. Volume is good as it exchanges 912,000 shares a day.
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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.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks and ETFs recently featured in the blog include: Apple AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The event came just a few days after China imposed a ban on government officials using iPhones at work, leading to a sharp drop in Apple's market value by almost $200 billion.
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Stocks and ETFs recently featured in the blog include: Apple AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, MSCI Information Technology Index ETF and iShares US Technology ETF have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
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Stocks and ETFs recently featured in the blog include: Apple AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, MSCI Information Technology Index ETF and iShares US Technology ETF have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
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Stocks and ETFs recently featured in the blog include: Apple AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Watch Innovations: The Apple Watch family saw new additions, including the Apple Watch Series 9 and the upscale Apple Watch Ultra 2.
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2023-09-14 00:00:00 UTC
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Nearly Half of Warren Buffett's $354 Billion Portfolio Is Invested in Just 1 Stock
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AAPL
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https://www.nasdaq.com/articles/nearly-half-of-warren-buffetts-%24354-billion-portfolio-is-invested-in-just-1-stock
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I don't think many investors out there question that Apple (NASDAQ: AAPL) is one of the best companies in the world. Its incredible track record of innovation has resulted in tremendous financial success, leading to a current market cap of $2.8 trillion.
Berkshire Hathaway, led by legendary investor Warren Buffett, first purchased shares of the tech giant in the first quarter of 2016, a decision that has proved to be remarkably lucrative. Since the start of that year to Sept. 8 of 2023, Apple's stock has soared 577%. This gain beats the Nasdaq Composite Index's 175% rise during the same time. Today, Berkshire holds a $164 billion stake, so the iPhone maker represents 46% of its entire public equities portfolio.
Let's look at some possible reasons why Buffett was probably first interested in this FAANG stock and consider whether investors should buy in right now.
Loyal customers
Take a peek at Berkshire's portfolio, and it's easy to see that he loves companies that possess a strong brand. Some of the top holdings are American Express, Coca-Cola, and Kraft Heinz. But perhaps no business has as powerful of a brand as Apple. According to Interbrand, Apple's brand is the world's most valuable, worth $482 billion.
Selling incredibly popular hardware products, most notably the iPhone, and combining them with easy-to-use software, has created a sticky ecosystem that leads to customer loyalty and high switching costs. Even Buffett understands this dynamic. He recently posited that if someone was offered $10,000 to never use an iPhone again, they would turn down this deal.
Strong financials
Finding companies that are in great financial shape is also important for Warren Buffett. It's not hard to see why this is a top priority. Just look at the past couple of years. The macroeconomic situation is entirely unpredictable, so it's smart to own businesses that can handle whatever happens with interest rates or inflation.
Apple generated $277 billion of free cash flow in the three-year period between fiscal 2020 and 2022. And the company currently has a net-cash position of $57 billion on its balance sheet. This kind of financial strength, which adds peace of mind to one's portfolio, is what investors should look for.
Cheap valuation
Buffett likes to own great businesses but only if the price is right. Even the best companies, those with wide economic moats and solid growth prospects, can make for terrible investments if the valuation at purchase is excessive. Therefore, it's always a good idea to seek a margin of safety.
Apple fell squarely in this category in early 2016. During the first quarter of that year, the tech stock's average trailing-price-to-earnings (P/E) ratio was just 10.6, so the market wasn't too optimistic about the business at the time. That is a ridiculously low valuation to pay for such a dominant company.
Is Apple a good investment right now?
While buying Apple stock in early 2016 has clearly proved to be a smart decision for Buffett and Berkshire Hathaway, the question today centers on if this is a good investment to make right now. There are two primary reasons to hesitate before rushing to add this tech behemoth to your portfolio.
The first is that Apple is already a gargantuan enterprise. Its trailing-12-month revenue totaled close to a staggering $400 billion. Additionally, there are more than 2 billion active Apple devices in the world, according to CFO Luca Maestri. I believe it's totally reasonable to wonder how much growth this business has left in the tank as we look toward the next five to 10 years. In fact, in each of the past three quarters, revenue dropped on a year-over-year basis.
It's also worth closely looking at the current valuation. Apple trades at a trailing-P/E ratio of 30 today. That's about three times more expensive than when Buffett first got in. With decelerating growth on the horizon, it's easy to get discouraged when thinking about where the market-beating returns could come from.
While Buffett's Berkshire Hathaway remains a large shareholder, investors who are on the sidelines need to think twice before taking a bite out of Apple stock today.
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American Express is an advertising partner of The Ascent, a Motley Fool company. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Kraft Heinz 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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I don't think many investors out there question that Apple (NASDAQ: AAPL) is one of the best companies in the world. Berkshire Hathaway, led by legendary investor Warren Buffett, first purchased shares of the tech giant in the first quarter of 2016, a decision that has proved to be remarkably lucrative. Selling incredibly popular hardware products, most notably the iPhone, and combining them with easy-to-use software, has created a sticky ecosystem that leads to customer loyalty and high switching costs.
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I don't think many investors out there question that Apple (NASDAQ: AAPL) is one of the best companies in the world. Some of the top holdings are American Express, Coca-Cola, and Kraft Heinz. While buying Apple stock in early 2016 has clearly proved to be a smart decision for Buffett and Berkshire Hathaway, the question today centers on if this is a good investment to make right now.
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I don't think many investors out there question that Apple (NASDAQ: AAPL) is one of the best companies in the world. While buying Apple stock in early 2016 has clearly proved to be a smart decision for Buffett and Berkshire Hathaway, the question today centers on if this is a good investment to make right now. While Buffett's Berkshire Hathaway remains a large shareholder, investors who are on the sidelines need to think twice before taking a bite out of Apple stock today.
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I don't think many investors out there question that Apple (NASDAQ: AAPL) is one of the best companies in the world. During the first quarter of that year, the tech stock's average trailing-price-to-earnings (P/E) ratio was just 10.6, so the market wasn't too optimistic about the business at the time. While buying Apple stock in early 2016 has clearly proved to be a smart decision for Buffett and Berkshire Hathaway, the question today centers on if this is a good investment to make right now.
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2023-09-14 00:00:00 UTC
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US STOCKS-Futures climb on Fed pause hopes; investors await Arm debut
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-climb-on-fed-pause-hopes-investors-await-arm-debut
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.20%, S&P 0.30%, Nasdaq 0.34%
Sept 14 (Reuters) - Rising optimism about a pause in interest rate hikes in September lifted U.S. index futures on Thursday, while investors readied for Arm Holdings Plc's stock market debut following the biggest U.S. IPO since 2021.
Both the Nasdaq .IXIC and the S&P 500 .SPX gained on Wednesday following data that showed the annual rise in core consumer prices, excluding volatile items like food and energy prices, was the smallest in nearly two years.
Rising oil prices, however, could keep inflation at elevated levels, analysts said. Higher gasoline prices pushed the headline inflation figure to a 14-month high, while stickiness in services inflation kept alive the prospects of a November hike.
"The Fed may latch on to energy prices as a reason to strike a relatively hawkish tone at next week's FOMC meeting as it looks to ensure financial conditions remain relatively tight to continue making progress on core inflation," said Emin Hajiyev, senior economist at Insight Investment.
"We are at or very close to the top of the hiking cycle but see one additional rate hike into year-end as a possibility."
Traders see a 97% chance of the Fed holding rates in September and a near 60% likelihood of a November pause, according to the CME FedWatch Tool.
All eyes will be on producer prices data and retail sales for August and weekly jobless claims at 8:30 a.m. ET for further clues on the trajectory for U.S. interest rates ahead of the Federal Reserve's policy meeting next week.
Major growth stocks, including Apple AAPL.O, Google GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O edged up between 0.2% and 0.6%, with the two-year U.S. Treasury yield US2YT=RR, which best reflects short-term interest rate expectations, trading below the 5% mark.
Meanwhile, investors largely expect another European Central Bank rate hike to a record high later in the day against the backdrop of sticky inflation and a deteriorating economy.
Chip designer Arm Holdings Plc's ARM.O shares will start trading in their widely anticipated debut on the Nasdaq. The company secured a $54.5 billion valuation in its offering that priced its shares at $51 apiece.
At 5:22 a.m. ET, Dow e-minis 1YMcv1 were up 70 points, or 0.2%, S&P 500 e-minis EScv1 were up 13.75 points, or 0.3%, and Nasdaq 100 e-minis NQcv1 were up 52.5 points, or 0.34%.
Among individual stock moves, Vital Energy VTLE.K dropped 7.4% after signing agreements valued at about $1.17 billion to expand its acreage in the Permian Basin.
HP HPQ.N fell 1.2% after Warren Buffett's Berkshire Hathaway BRKa.Nsold about 5.5 million shares of the company.
(Reporting by Ankika Biswas in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major growth stocks, including Apple AAPL.O, Google GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O edged up between 0.2% and 0.6%, with the two-year U.S. Treasury yield US2YT=RR, which best reflects short-term interest rate expectations, trading below the 5% mark. "The Fed may latch on to energy prices as a reason to strike a relatively hawkish tone at next week's FOMC meeting as it looks to ensure financial conditions remain relatively tight to continue making progress on core inflation," said Emin Hajiyev, senior economist at Insight Investment. Meanwhile, investors largely expect another European Central Bank rate hike to a record high later in the day against the backdrop of sticky inflation and a deteriorating economy.
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Major growth stocks, including Apple AAPL.O, Google GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O edged up between 0.2% and 0.6%, with the two-year U.S. Treasury yield US2YT=RR, which best reflects short-term interest rate expectations, trading below the 5% mark. Futures up: Dow 0.20%, S&P 0.30%, Nasdaq 0.34% Sept 14 (Reuters) - Rising optimism about a pause in interest rate hikes in September lifted U.S. index futures on Thursday, while investors readied for Arm Holdings Plc's stock market debut following the biggest U.S. IPO since 2021. Chip designer Arm Holdings Plc's ARM.O shares will start trading in their widely anticipated debut on the Nasdaq.
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Major growth stocks, including Apple AAPL.O, Google GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O edged up between 0.2% and 0.6%, with the two-year U.S. Treasury yield US2YT=RR, which best reflects short-term interest rate expectations, trading below the 5% mark. Futures up: Dow 0.20%, S&P 0.30%, Nasdaq 0.34% Sept 14 (Reuters) - Rising optimism about a pause in interest rate hikes in September lifted U.S. index futures on Thursday, while investors readied for Arm Holdings Plc's stock market debut following the biggest U.S. IPO since 2021. Both the Nasdaq .IXIC and the S&P 500 .SPX gained on Wednesday following data that showed the annual rise in core consumer prices, excluding volatile items like food and energy prices, was the smallest in nearly two years.
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Major growth stocks, including Apple AAPL.O, Google GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O edged up between 0.2% and 0.6%, with the two-year U.S. Treasury yield US2YT=RR, which best reflects short-term interest rate expectations, trading below the 5% mark. Futures up: Dow 0.20%, S&P 0.30%, Nasdaq 0.34% Sept 14 (Reuters) - Rising optimism about a pause in interest rate hikes in September lifted U.S. index futures on Thursday, while investors readied for Arm Holdings Plc's stock market debut following the biggest U.S. IPO since 2021. Rising oil prices, however, could keep inflation at elevated levels, analysts said.
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2023-09-14 00:00:00 UTC
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Is First Trust NASDAQ-100-Technology Sector ETF (QTEC) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-first-trust-nasdaq-100-technology-sector-etf-qtec-a-strong-etf-right-now-2
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Designed to provide broad exposure to the Technology ETFs category of the market, the First Trust NASDAQ-100-Technology Sector ETF (QTEC) is a smart beta exchange traded fund launched on 04/19/2006.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by First Trust Advisors, and has been able to amass over $2.64 billion, which makes it one of the larger ETFs in the Technology ETFs. This particular fund seeks to match the performance of the NASDAQ-100 Technology Sector Index before fees and expenses.
The NASDAQ-100 Technology Sector Index is an equal-weighted index based on the securities of the NASDAQ-100 Index that are classified as technology.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.20%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For QTEC, it has heaviest allocation in the Information Technology sector --about 90.90% of the portfolio.
When you look at individual holdings, Meta Platforms Inc. (class A) (META) accounts for about 2.86% of the fund's total assets, followed by Palo Alto Networks, Inc. (PANW) and Apple Inc. (AAPL).
Its top 10 holdings account for approximately 28.16% of QTEC's total assets under management.
Performance and Risk
Year-to-date, the First Trust NASDAQ-100-Technology Sector ETF return is roughly 43.69% so far, and was up about 29.66% over the last 12 months (as of 09/14/2023). QTEC has traded between $98.17 and $157.31 in this past 52-week period.
The ETF has a beta of 1.17 and standard deviation of 31.08% for the trailing three-year period, making it a high risk choice in the space. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust NASDAQ-100-Technology Sector ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $49.82 billion in assets, Vanguard Information Technology ETF has $52.01 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Meta Platforms Inc. (class A) (META) accounts for about 2.86% of the fund's total assets, followed by Palo Alto Networks, Inc. (PANW) and Apple Inc. (AAPL). Click to get this free report First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
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Click to get this free report First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. When you look at individual holdings, Meta Platforms Inc. (class A) (META) accounts for about 2.86% of the fund's total assets, followed by Palo Alto Networks, Inc. (PANW) and Apple Inc. (AAPL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Click to get this free report First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. When you look at individual holdings, Meta Platforms Inc. (class A) (META) accounts for about 2.86% of the fund's total assets, followed by Palo Alto Networks, Inc. (PANW) and Apple Inc. (AAPL). Designed to provide broad exposure to the Technology ETFs category of the market, the First Trust NASDAQ-100-Technology Sector ETF (QTEC) is a smart beta exchange traded fund launched on 04/19/2006.
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When you look at individual holdings, Meta Platforms Inc. (class A) (META) accounts for about 2.86% of the fund's total assets, followed by Palo Alto Networks, Inc. (PANW) and Apple Inc. (AAPL). Click to get this free report First Trust NASDAQ-100-Technology Sector ETF (QTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
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13680.0
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2023-09-14 00:00:00 UTC
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Should ALPS (OUSA) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-alps-ousa-be-on-your-investing-radar-0
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If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the ALPS (OUSA), a passively managed exchange traded fund launched on 07/14/2015.
The fund is sponsored by Alps. It has amassed assets over $665.93 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.48%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.89%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL).
The top 10 holdings account for about 40.17% of total assets under management.
Performance and Risk
OUSA seeks to match the performance of the FTSE US Qual / Vol / Yield Factor 5% Capped Index before fees and expenses. The OShares U.S. Quality Dividend Index measures the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States.
The ETF has added roughly 4.02% so far this year and is up about 16.43% in the last one year (as of 09/14/2023). In the past 52-week period, it has traded between $41.51 and $45.06.
The ETF has a beta of 0.86 and standard deviation of 14.60% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS 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, OUSA is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.40 billion in assets, Vanguard Value ETF has $101.15 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
ALPS (OUSA): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the ALPS (OUSA), a passively managed exchange traded fund launched on 07/14/2015.
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Looking at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. 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.
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Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). 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.
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Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the ALPS (OUSA), a passively managed exchange traded fund launched on 07/14/2015.
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13681.0
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2023-09-14 00:00:00 UTC
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Belgium questions Apple's iPhone 12 after France suspends sales over radiation
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AAPL
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https://www.nasdaq.com/articles/belgium-questions-apples-iphone-12-after-france-suspends-sales-over-radiation
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nan
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nan
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PARIS, Sept 14 (Reuters) - Belgium's junior minister for the digital economy said he would ask the telecoms regulator to analyse potential health risks linked to Apple's APPL.O iPhone 12 after France ordered a halt to sales citing breaches of radiation exposure limits.
"It is my duty to make sure all citizens ... are safe", Mathieu Michel, state secretary for digitalisation, said in a statement emailed to Reuters on Thursday.
Apple on Wednesday said the iPhone 12, launched in 2020, was certified by multiple international bodies as compliant with global radiation standards, that it had provided several Apple and third-party lab results proving the phone's compliance to the French agency, and that it was contesting its findings.
But France's move to halt iPhone 12 sales until Apple fixes the radiation issues it detected in two tests this week raised the prospect of further bans in Europe.
Germany's network regulator BNetzA said it might launch similar proceedings and was in close contact with French authorities. The Dutch digital watchdog also said it was looking into the matter and will ask the U.S. firm for an explanation.
"I have rapidly reached out to the IBPT-BIPT (regulator) to ask for an analysis about the potential danger of the product", Michel said, adding that he had also asked the regulator to review all Apple smartphones, as well as devices made by other producers, at a later stage.
Researchers have conducted a vast number of studies over the last two decades to assess health risks resulting from mobile phones. According to the World Health Organisation, no adverse health effects have been established as being caused by mobile phone use.
(Reporting by Marine Strauss and Tassilo Hummel; Editing by Christopher Cushing)
((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;))
The views and 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 14 (Reuters) - Belgium's junior minister for the digital economy said he would ask the telecoms regulator to analyse potential health risks linked to Apple's APPL.O iPhone 12 after France ordered a halt to sales citing breaches of radiation exposure limits. "It is my duty to make sure all citizens ... are safe", Mathieu Michel, state secretary for digitalisation, said in a statement emailed to Reuters on Thursday. But France's move to halt iPhone 12 sales until Apple fixes the radiation issues it detected in two tests this week raised the prospect of further bans in Europe.
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PARIS, Sept 14 (Reuters) - Belgium's junior minister for the digital economy said he would ask the telecoms regulator to analyse potential health risks linked to Apple's APPL.O iPhone 12 after France ordered a halt to sales citing breaches of radiation exposure limits. But France's move to halt iPhone 12 sales until Apple fixes the radiation issues it detected in two tests this week raised the prospect of further bans in Europe. Researchers have conducted a vast number of studies over the last two decades to assess health risks resulting from mobile phones.
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PARIS, Sept 14 (Reuters) - Belgium's junior minister for the digital economy said he would ask the telecoms regulator to analyse potential health risks linked to Apple's APPL.O iPhone 12 after France ordered a halt to sales citing breaches of radiation exposure limits. Apple on Wednesday said the iPhone 12, launched in 2020, was certified by multiple international bodies as compliant with global radiation standards, that it had provided several Apple and third-party lab results proving the phone's compliance to the French agency, and that it was contesting its findings. "I have rapidly reached out to the IBPT-BIPT (regulator) to ask for an analysis about the potential danger of the product", Michel said, adding that he had also asked the regulator to review all Apple smartphones, as well as devices made by other producers, at a later stage.
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PARIS, Sept 14 (Reuters) - Belgium's junior minister for the digital economy said he would ask the telecoms regulator to analyse potential health risks linked to Apple's APPL.O iPhone 12 after France ordered a halt to sales citing breaches of radiation exposure limits. "It is my duty to make sure all citizens ... are safe", Mathieu Michel, state secretary for digitalisation, said in a statement emailed to Reuters on Thursday. Apple on Wednesday said the iPhone 12, launched in 2020, was certified by multiple international bodies as compliant with global radiation standards, that it had provided several Apple and third-party lab results proving the phone's compliance to the French agency, and that it was contesting its findings.
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13682.0
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2023-09-14 00:00:00 UTC
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Feeling Bold? Buy PayPal Stock While It’s Oversold.
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AAPL
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https://www.nasdaq.com/articles/feeling-bold-buy-paypal-stock-while-its-oversold.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
From a new chief executive to a dollar-backed stablecoin and deployment of artificial intelligence technology, there’s been a lot of intriguing news happening with PayPal (NASDAQ:PYPL) stock lately.
Yet, short-term traders continue to keep PYPL stock in the penalty box. This seems completely irrational, but then, it’s also an opportunity for enterprising investors.
PayPal is much more than a basic point-of-sale payments platform nowadays. The company is flourishing in 2023, and PayPal’s financials show PayPal is on the right track.
Therefore, I expect the stock market’s weighing machine to adjust PayPal’s market capitalization much higher in the coming quarters.
Don’t Fear PayPal’s Changes
There are multiple recent news items for prospective PayPal investors to consider now. First of all, PayPal’s new chief executive, Alex Chriss, is set to replace current PayPal CEO Dan Schulman on Sept. 27. Schulman has been the company’s chief executive for a long time – nine years, in fact.
I suspect that this C-suite transition is one reason nervous short-term traders hastily sold PYPL stock. The market typically prefers stability over the unknown, but investors really ought to give Chriss a chance.
What else is changing at PayPal? The company’s credit and debit cards finally support Apple’s (NASDAQ:AAPL) Apple Pay service. This is certainly a welcome change for many of PayPal’s customers and shareholders.
The buzz is getting louder concerning PayPal’s new stablecoin, known as PayPal USD. It’s a cryptocurrency token that’s “fully backed by U.S. dollar deposits, short-term U.S. treasuries and similar cash equivalents, and can be redeemed 1:1 for U.S. dollars.” In time, we’ll know whether PayPal USD gains traction among crypto users.
PYPL Stock’s Valuation Makes No Sense
Along with everything else I’ve mentioned about PayPal, prospective investors should also think about PayPal’s artificial intelligence connection.
Specifically, PayPal Chief Product Officer John Kim announced in late August that the company plans to launch “three new products with ties to AI in the next 120 days.”
Kim explained PayPal is rolling out a “checkout feature. . . that uses AI to keep track of all the permutations of your addresses and personal information that you might use.”
This will be a crucial security and anti-fraud feature which, I suspect, other payments platforms might copy soon.
By now, you see why PYPL stock deserves a higher re-rating on Wall Street. Frankly, I’m baffled that PayPal has a trailing 12-month price-to-earnings ratio of 17.68x, compared to 38.92x for Mastercard (NYSE:MA) and 31.34x for Visa (NYSE:V).
PayPal demonstrated its financial growth in 2023’s second quarter. The company’s net revenue increased 7% year over year, and its GAAP operating income grew 48%.
In addition, PayPal reported GAAP EPS of 92 cents, which is much better than the 29-cent earnings loss of the year-earlier quarter.
PYPL Stock Is a Bargain Anywhere Near $60
If PayPal shares are anywhere near $60 when you’re reading this, consider it a gift from the irrational market. If the stock is in the $50’s, that’s an even better opportunity.
It’s not every day that you’ll see a mismatch between a company’s real value and its share price, like you’re seeing with PayPal now. So, take advantage of a major mis-pricing which probably won’t last much longer, and consider buying PYPL stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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It doesn’t matter if you have $500 or $5 million. Do this now.
The post Feeling Bold? Buy PayPal Stock While It’s Oversold. 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 company’s credit and debit cards finally support Apple’s (NASDAQ:AAPL) Apple Pay service. It’s a cryptocurrency token that’s “fully backed by U.S. dollar deposits, short-term U.S. treasuries and similar cash equivalents, and can be redeemed 1:1 for U.S. dollars.” In time, we’ll know whether PayPal USD gains traction among crypto users. that uses AI to keep track of all the permutations of your addresses and personal information that you might use.” This will be a crucial security and anti-fraud feature which, I suspect, other payments platforms might copy soon.
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The company’s credit and debit cards finally support Apple’s (NASDAQ:AAPL) Apple Pay service. InvestorPlace - Stock Market News, Stock Advice & Trading Tips From a new chief executive to a dollar-backed stablecoin and deployment of artificial intelligence technology, there’s been a lot of intriguing news happening with PayPal (NASDAQ:PYPL) stock lately. PYPL Stock’s Valuation Makes No Sense Along with everything else I’ve mentioned about PayPal, prospective investors should also think about PayPal’s artificial intelligence connection.
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The company’s credit and debit cards finally support Apple’s (NASDAQ:AAPL) Apple Pay service. InvestorPlace - Stock Market News, Stock Advice & Trading Tips From a new chief executive to a dollar-backed stablecoin and deployment of artificial intelligence technology, there’s been a lot of intriguing news happening with PayPal (NASDAQ:PYPL) stock lately. PYPL Stock’s Valuation Makes No Sense Along with everything else I’ve mentioned about PayPal, prospective investors should also think about PayPal’s artificial intelligence connection.
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The company’s credit and debit cards finally support Apple’s (NASDAQ:AAPL) Apple Pay service. InvestorPlace - Stock Market News, Stock Advice & Trading Tips From a new chief executive to a dollar-backed stablecoin and deployment of artificial intelligence technology, there’s been a lot of intriguing news happening with PayPal (NASDAQ:PYPL) stock lately. Therefore, I expect the stock market’s weighing machine to adjust PayPal’s market capitalization much higher in the coming quarters.
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13683.0
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2023-09-13 00:00:00 UTC
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US presses on with fight against Google's search and advertising clout
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AAPL
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https://www.nasdaq.com/articles/us-presses-on-with-fight-against-googles-search-and-advertising-clout-0
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nan
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By Diane Bartz
WASHINGTON, Sept 13 (Reuters) - The Justice Department questioned a former Google executive about billion-dollar deals with mobile carriers and others that helped make Google the default search engine, in the second day of a once-in-a-generation antitrust trial on Wednesday.
Chris Barton, who was at Google from 2004 to 2011, said the company was quick to see the advantage of people using Google search on handheld devices and early versions of smartphones, spurring dramatic growth in the number of Google executives working on deals to win default status with mobile carriers.
Google's clout in search, the government argues, has helped Google, a $1 trillion company, build monopolies in some aspects of online search advertising. Since search is free, Google makes its money through advertising.
The government says the Alphabet IncGOOGL.Ounit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to fend off rivals and keep its search engine's market share at around 90%.
Barton testified that in negotiating revenue-sharing deals with mobile carriers and Android smartphone makers, Google pressed for its search to be the default and to be exclusive. If Microsoft's search engine Bing was the default on an Android phone, Barton said, then users would have a "difficult time finding or changing to Google."
Barton said on his LinkedIn profile that he was responsible for leading Google's partnerships with mobile carriers like Verizon and AT&T, estimating that the deals "drive hundreds of millions in revenue."
Google attorney John Schmidtlein said in opening arguments on Tuesday that the government was wrong to say that Google broke the law to hold onto its massive market share, noting its search engine was wildly popular because of its quality and that the payments were fair compensation for partners.
The fight has major implications for Big Tech, which has been accused of buying or strangling small rivals but has defended itself by pointing out that its services are free, as in the case of Google, or inexpensive, as in the case of Amazon.com AMZN.O.
Previous major antitrust trials include Microsoft, filed in 1998, and AT&T, filed in 1974. The AT&T breakup in 1982 is credited with paving the way for the modern cell phone industry, while the fight with Microsoft is credited with opening space for Google and others on the internet.
The government's first witness Tuesday was Google economist Hal Varian, who was asked about discussions inside the company about the importance of scale and of Google becoming the default on home pages.
If Google is found to have broken the law, Judge Amit Mehta, who is deciding the case, will then decide how best to resolve it. He may decide simply to order Google to stop practices he has found to be illegal or he may order Google to sell assets.
EXPLAINER-Why is the US suing Google for antitrust violations?
UPDATE 6-Google argues quality kept its search on top, defends billions paid
Google's rivals get day in court as momentous US antitrust trial begins
UPDATE 2-US judge denies Google's motion to dismiss advertising antitrust case
(Reporting by Diane Bartz, Editing by Nick Zieminski and Richard Chang)
((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 says the Alphabet IncGOOGL.Ounit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to fend off rivals and keep its search engine's market share at around 90%. Barton testified that in negotiating revenue-sharing deals with mobile carriers and Android smartphone makers, Google pressed for its search to be the default and to be exclusive. Barton said on his LinkedIn profile that he was responsible for leading Google's partnerships with mobile carriers like Verizon and AT&T, estimating that the deals "drive hundreds of millions in revenue."
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The government says the Alphabet IncGOOGL.Ounit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to fend off rivals and keep its search engine's market share at around 90%. By Diane Bartz WASHINGTON, Sept 13 (Reuters) - The Justice Department questioned a former Google executive about billion-dollar deals with mobile carriers and others that helped make Google the default search engine, in the second day of a once-in-a-generation antitrust trial on Wednesday. Barton testified that in negotiating revenue-sharing deals with mobile carriers and Android smartphone makers, Google pressed for its search to be the default and to be exclusive.
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The government says the Alphabet IncGOOGL.Ounit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to fend off rivals and keep its search engine's market share at around 90%. By Diane Bartz WASHINGTON, Sept 13 (Reuters) - The Justice Department questioned a former Google executive about billion-dollar deals with mobile carriers and others that helped make Google the default search engine, in the second day of a once-in-a-generation antitrust trial on Wednesday. Chris Barton, who was at Google from 2004 to 2011, said the company was quick to see the advantage of people using Google search on handheld devices and early versions of smartphones, spurring dramatic growth in the number of Google executives working on deals to win default status with mobile carriers.
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The government says the Alphabet IncGOOGL.Ounit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to fend off rivals and keep its search engine's market share at around 90%. By Diane Bartz WASHINGTON, Sept 13 (Reuters) - The Justice Department questioned a former Google executive about billion-dollar deals with mobile carriers and others that helped make Google the default search engine, in the second day of a once-in-a-generation antitrust trial on Wednesday. Since search is free, Google makes its money through advertising.
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13684.0
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2023-09-13 00:00:00 UTC
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Here's How I Lost Out on a $2.3 Million Investment. Can You Avoid My Mistake?
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AAPL
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https://www.nasdaq.com/articles/heres-how-i-lost-out-on-a-%242.3-million-investment.-can-you-avoid-my-mistake
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nan
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Permit me to wipe the tears from my eyes before I launch into this story. It might be an important one for you to learn from, especially if you're somewhat new to investing or you've got many years before you'll retire.
This is a story of regret -- because back in 1995, I made what turned out to be a very costly investing mistake. How costly? Well, I lost out on a gain of around $2.3 million. Yikes, right?
Image source: Getty Images.
What I did
Let's go back to 1995, fully 28 years ago. You may not have been born yet, so I'll fill you in on what was happening at the time:
A federal building in Oklahoma City was bombed, killing 168 people.
O.J. Simpson was found not guilty of murder.
Books by John Grisham, Danielle Steel, and Stephen King topped various best-seller lists.
Popular movies that year included Toy Story and Apollo 13.
Windows 95 was launched.
The Dow Jones Industrial Average closed above 5,000 for the first time. (It's been above 34,000 recently.)
Here are two other things that happened in 1995:
On June 22, I bought 100 shares of Apple Computer -- now Apple (NASDAQ: AAPL) -- at $49 apiece, spending a total of $4,900 plus the trading commission of $54.
On Aug. 28, I sold 100 shares of Apple Computer at $45 per share, netting roughly $4,450.
I realized a net loss of around $500.
What's the big deal?
A $500 loss isn't so bad, and realizing it is the right thing to do in various circumstances. But... what if I'd hung on?
Well, let's do the math. I had 100 shares in 1995, and since then, Apple has had four stock splits. (Stock splits don't really change the value of your holdings much, but they do affect the math calculations.) After a 2-for-1 split in 2000, I'd have had 200 shares. After another 2-for-1 in 2005, my total would be 400 shares. A 7-for-1 split in 2014 would turn those into 2,800 shares, and a 4-for-1 split in 2020 would make it 11,200 shares.
Apple's shares were recently trading at around $179 each. If I still held those 11,200 shares, they would be worth a total of... $2 million. Ouch!
It gets (a little) worse, too -- because Apple now pays a dividend. According to the calculator at theonlineinvestor.com, an investment in Apple shares with dividends reinvested would have averaged annual growth of about 25% between 1995 and now. Apply that to the value of the shares I sold in 1995, and the total gain would look more like $2.3 million. (That noise you hear is me banging my head against my desk.)
Why I did it
It's a painful missed gain to look at, but I need to remind myself that it wasn't crazy to sell out of Apple at the time. It was not firing on many cylinders then, as it is now. Indeed, the revered co-founder of Apple, Steve Jobs, had departed the company in 1985, leaving it in John Sculley's hands. Sculley was pushed out in 1993 and succeeded by Michael Spindler, who left in 1996, only to be followed by Gil Amelio, who led the company from 1996 to 1997 -- when Steve Jobs returned.
It was after that that Apple launched many killer products, such as the iPod (2001), iPhone (2007), iPad (2010), Apple Watch (2014), and AirPods (2016).
Lessons to learn
This unfortunate episode of mine offers a smorgasbord of lessons -- for both me and, maybe, you:
The power of long-term investing: The magnitude of the gains that I left on the table show the value of hanging on for decades -- to stocks with great long-term promise. That means hanging on through thick and thin. In this example, I didn't even hang on for four months!
The power of compromising: Of course, you shouldn't hang on blindly if you no longer have confidence in a stock. In such situations, selling can be best. If you're not sure, though, consider selling some. Had I sold half my shares and hung onto the rest, for example, I'd be sitting on more than a million dollars.
The value of focusing: At the time, I didn't have a lot of money to invest, so whenever I ran across a compelling idea, I'd have to sell some stocks in order to invest in another. This kind of relatively rapid buying and selling did not serve me well. Reviewing my records, I can see that I sold out of many solid companies too soon, not giving them years or even decades in which to grow for me.
The value of researching: I also jumped into and out of lots of companies that are not around anymore. Had I done more research into them, and avoided investing in companies whose businesses and business models I didn't fully understand, I'd likely have avoided some losses.
The value of paying attention to value: Back in 1995, I was only paying a little attention to what a given stock was really worth -- its intrinsic value. This is a costly rookie mistake. It's important to not only seek great companies, but to also aim to buy into them at attractive prices, giving yourself a margin of safety.
The index fund option: Any of us who is not doing great investing in individual stocks or who doesn't have the time, interest, or skills for it should remember that a terrific alternative exists: simple, low-fee index funds.
I hope this cautionary tale helps you become a better investor -- and that you can avoid making some of the costly blunders I've made. By the way, I bought back into Apple some years ago, so I've more than made up that $500 loss.
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Selena Maranjian has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are two other things that happened in 1995: On June 22, I bought 100 shares of Apple Computer -- now Apple (NASDAQ: AAPL) -- at $49 apiece, spending a total of $4,900 plus the trading commission of $54. You may not have been born yet, so I'll fill you in on what was happening at the time: A federal building in Oklahoma City was bombed, killing 168 people. Sculley was pushed out in 1993 and succeeded by Michael Spindler, who left in 1996, only to be followed by Gil Amelio, who led the company from 1996 to 1997 -- when Steve Jobs returned.
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Here are two other things that happened in 1995: On June 22, I bought 100 shares of Apple Computer -- now Apple (NASDAQ: AAPL) -- at $49 apiece, spending a total of $4,900 plus the trading commission of $54. On Aug. 28, I sold 100 shares of Apple Computer at $45 per share, netting roughly $4,450. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Here are two other things that happened in 1995: On June 22, I bought 100 shares of Apple Computer -- now Apple (NASDAQ: AAPL) -- at $49 apiece, spending a total of $4,900 plus the trading commission of $54. On Aug. 28, I sold 100 shares of Apple Computer at $45 per share, netting roughly $4,450. I had 100 shares in 1995, and since then, Apple has had four stock splits.
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Here are two other things that happened in 1995: On June 22, I bought 100 shares of Apple Computer -- now Apple (NASDAQ: AAPL) -- at $49 apiece, spending a total of $4,900 plus the trading commission of $54. This is a story of regret -- because back in 1995, I made what turned out to be a very costly investing mistake. I had 100 shares in 1995, and since then, Apple has had four stock splits.
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13685.0
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2023-09-13 00:00:00 UTC
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US STOCKS-Futures slip as higher oil prices adds to jitters ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slip-as-higher-oil-prices-adds-to-jitters-ahead-of-inflation-data
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nan
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nan
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Corrects syntax in headline
Futures down: Dow 0.10%, S&P 0.09%, Nasdaq 0.08%
Sept 13 (Reuters) - U.S. stock index futures inched lower on Wednesday as investors refrained from big bets ahead of a key inflation reading that could provide some clarity on an inflation outlook, complicated by a spike in oil prices, and its effect on interest rates.
The recent rally in energy prices is expected to push headline inflation higher in August, which, coupled with a tumble in Oracle shares after a weak forecast, prompted a weak session for Wall Street on Tuesday.
Oil prices held near a 10-month peak. O/R
The Labor Department's data, due at 8:30 a.m. ET, is expected to show the core consumer price index easing to 4.3% year-on-year in August from 4.7%. Headline inflation, however, is expected to rise to 3.6%.
"All indications are that higher oil costs are going to influence the headline inflation print. Any rise in the core data could really put markets on edge given possible interest rate implications," said Tim Waterer, chief market analyst at KCM Trade.
"If inflation takes a step higher, this will highlight the challenge faced not only by the Federal Reserve, but by central banks around the globe, that inflation can rear its ugly head again at inopportune times."
Interest rate traders see a 93% chance of the Fed holding rates in September but just over a 50% likelihood of a pause in November and December, according to the CME FedWatch Tool. The Fed is likely to cut rates only from April-June next year, a Reuters poll showed.
Investors will also closely monitor August producer prices and retail sales data on Thursday ahead of the Fed's Sept. 20 policy decision outcome.
At 4:56 a.m. ET, Dow e-minis 1YMcv1 were down 34 points, or 0.1%, S&P 500 e-minis EScv1 were down 4 points, or 0.09%, and Nasdaq 100 e-minis NQcv1 were down 11.5 points, or 0.08%.
Among stocks, Apple AAPL.O was little changed in premarket trading. The stock closed down 1.7% after the company unveiled new iPhone models on Tuesday.
Ford F.N gained 1.8% on plans to double production of hybrid F-150 pickup trucks in 2024, while General Motors GM.N rose 1.1% after UBS initiated coverage with a "buy" rating.
U.S.-listed shares of Chinese electric vehicle makers Li Auto LI.O, Nio NIO.N and Xpeng XPEV.N slipped between 1.7% and 3.1% after the European Commission started an investigation on whether to impose tariffs on their vehicles.
(Reporting by Ankika Biswas and Shubham Batra in Bengaluru; Editing by Savio D'Souza)
((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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Among stocks, Apple AAPL.O was little changed in premarket trading. Corrects syntax in headline Futures down: Dow 0.10%, S&P 0.09%, Nasdaq 0.08% Sept 13 (Reuters) - U.S. stock index futures inched lower on Wednesday as investors refrained from big bets ahead of a key inflation reading that could provide some clarity on an inflation outlook, complicated by a spike in oil prices, and its effect on interest rates. Investors will also closely monitor August producer prices and retail sales data on Thursday ahead of the Fed's Sept. 20 policy decision outcome.
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Among stocks, Apple AAPL.O was little changed in premarket trading. Corrects syntax in headline Futures down: Dow 0.10%, S&P 0.09%, Nasdaq 0.08% Sept 13 (Reuters) - U.S. stock index futures inched lower on Wednesday as investors refrained from big bets ahead of a key inflation reading that could provide some clarity on an inflation outlook, complicated by a spike in oil prices, and its effect on interest rates. The recent rally in energy prices is expected to push headline inflation higher in August, which, coupled with a tumble in Oracle shares after a weak forecast, prompted a weak session for Wall Street on Tuesday.
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Among stocks, Apple AAPL.O was little changed in premarket trading. Corrects syntax in headline Futures down: Dow 0.10%, S&P 0.09%, Nasdaq 0.08% Sept 13 (Reuters) - U.S. stock index futures inched lower on Wednesday as investors refrained from big bets ahead of a key inflation reading that could provide some clarity on an inflation outlook, complicated by a spike in oil prices, and its effect on interest rates. The recent rally in energy prices is expected to push headline inflation higher in August, which, coupled with a tumble in Oracle shares after a weak forecast, prompted a weak session for Wall Street on Tuesday.
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Among stocks, Apple AAPL.O was little changed in premarket trading. Headline inflation, however, is expected to rise to 3.6%. "All indications are that higher oil costs are going to influence the headline inflation print.
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13686.0
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2023-09-13 00:00:00 UTC
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7 Promising Blue-Chip Bargains for Long-Term Growth
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AAPL
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https://www.nasdaq.com/articles/7-promising-blue-chip-bargains-for-long-term-growth
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Blue-Chip bargains are a sure way to add value to your portfolio.
During high market volatility and uncertainty, identifying sound investment opportunities for long-term growth is akin to finding a pearl at the bottom of a waterfall.
However, the bottom contains not one but seven such pearls in the form of Blue-Chip bargains poised for remarkable expansion.
From semiconductor pioneers to tech giants, digital payment leaders, and global banking stalwarts, these companies have honed their strategies to harness the winds of change and secure their positions in an uncertain future.
These industry titans have navigated diverse sectors, from advanced technology to e-commerce, fast food, and finance, all to deliver sustained value to investors.
The article offers insights into how these blue-chip bargains are charting paths to success amid the challenges and opportunities of today’s dynamic market.
ON Semiconductor (ON)
Source: Shutterstock
The American semiconductor supplier ON Semiconductor (NASDAQ:ON) has achieved rapid long-term growth through several fundamental strategies.
The company has displayed disciplined and reliable execution, consistently exceeding its targets even in challenging market environments. This approach has resulted in substantial financial performance, with Q2 revenue of $2.09 billion and non-GAAP gross margins of 47.4%.
ON Semiconductor has successfully expanded its silicon carbide business, a key growth driver. Silicon carbide revenue grew nearly 4x YoY.
The company has secured significant long-term supply agreements, with over $11 billion in committed silicon carbide revenue. Partnerships with industry leaders like Vitesco and BorgWarner further solidify its position in the electric vehicle market.
The company’s focus on the automotive and industrial markets, which account for 80% of its revenue, has contributed to its growth.
ON Semiconductor’s advanced sensing technologies, like eight-megapixel image sensors, have gained traction in the automotive sector. Thus, the industrial segment benefits from having a renewable energy infrastructure.
Finally, efforts to streamline operations and exit non-core businesses have improved profitability, and strategic investments in silicon carbide production have yielded results, contributing to gross margin expansion.
The company’s commitment to returning 50% of free cash flow to shareholders enhances investor value.
Intel (INTC)
Source: JHVEPhoto / Shutterstock.com
Intel (NASDAQ:INTC) has outlined several key strategies for achieving long-term growth. One of the key drivers of growth is their focus on artificial intelligence.
They see AI as one of their “5 superpowers” and are actively working to democratize AI by scaling it. Intel also makes AI ubiquitous across various workloads and usage models, from cloud to enterprise, network, edge, and client applications.
This commitment to AI should capitalize on the growing demand for AI products and services, positioning Intel as a leader.
Notably, Intel is also expanding its manufacturing capacity and capabilities. They are investing in leading-edge semiconductor facilities in Germany and plan a new assembly and test facility in Poland.
These investments are part of their IDM 2.0 (Integrated Device Manufacturing) strategy, which aims to strengthen its position in the semiconductor industry and enhance its foundry business.
Intel Foundry Services is another growth driver. It enables Intel to capitalize on the AI market and secure a diversified and resilient global supply chain. IFS expands its scale and accelerates its capabilities at the leading edge, offering choice and leading-edge capacity outside of Asia.
Finally, Intel continues to focus on its product roadmaps with advancements in manufacturing technologies and product offerings, such as the upcoming Meteor Lake platform built on Intel 4 and dedicated AI capabilities to regain its leadership.
Alibaba (BABA)
Source: Kevin Chen Photography / Shutterstock.com
Alibaba (NYSE:BABA) focuses on providing a superior user experience.
The Taobao app has seen significant growth in its user base, with daily active users increasing by 6% or more YoY. This growth indicates a strong user preference for Alibaba’s platform.
Alibaba is focused on offering value for money to users and merchants. They are onboarding new merchants and encouraging them to participate in the value-for-money battle. This approach is aimed at attracting more users and building long-term merchant relationships.
Strategically, Alibaba invests heavily in AI to enhance merchant tools and improve the shopping experience. They aim to become a one-stop smart portal for life and consumption enabled by AI, catering to the diverse needs of their vast user base.
Moreover, Alibaba International Digital Commerce Group has achieved significant revenue growth, especially in its international retail business, expanding into high-priority markets and improving monetization to drive profitability.
Alibaba is focusing on local services and logistics, with a strong emphasis on improving efficiency. They aim to build a robust logistic network for cross-border and domestic parcels, reducing costs and improving service levels.
Finally, they aim to provide high-performance, low-cost computing power for model training and services, benefiting from the application of AI in all industries.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) continues to diversify its product lineup.
While the iPhone remains a significant contributor, the company has expanded into various product categories, such as Mac, iPad, wearables, and home accessories. This diversification minimizes dependence on a single product category.
Apple’s rapid growth extends beyond the United States. It has strong sales performance in emerging markets like India, Indonesia, Mexico, and the Philippines. This global presence mitigates the risks associated with regional economic fluctuations.
Apple’s services segment, including the App Store, Apple Music, and Apple TV+, has seen impressive growth. The company’s commitment to expanding its service ecosystem and a growing user base of over 2 billion active devices contributes significantly to long-term revenue. Apple continually invests in product innovation.
Specifically, the transition to Apple silicon for Macs and introducing new features like the Always-On display and advanced iPhone camera systems show the company’s dedication to enhancing its product offerings.
Apple enjoys an exceptionally high level of customer satisfaction and loyalty. This loyalty leads to repeat purchases and a robust ecosystem lock-in, ensuring a steady customer base over the long term.
Notably, Apple is increasingly penetrating the enterprise market, attracting corporate customers with its products, including MacBooks and iPads. This expansion diversifies its revenue streams.
Therefore, Apple’s dedication to accessibility features, user privacy, and security aligns with evolving consumer expectations and regulatory trends and positions the company as a trusted tech provider.
McDonald’s (MCD)
Source: Vytautas Kielaitis / Shutterstock
McDonald’s (NYSE:MCD) is rapidly digitizing its operations, with about 90% of business in China coming through digital channels.
The company is leveraging data and technology to enhance customer experiences, streamline operations, and gain insights for future growth.
McDonald’s is opening new restaurants, particularly in major markets. Meanwhile, it also explores innovative formats like takeaway-only locations and food lockers to cater to evolving customer preferences.
Introducing popular items like the McSmart menu in Germany and Saver Meal deals in the UK demonstrates a commitment to adapting to changing consumer needs and providing affordable options.
McDonald’s is investing in its chicken portfolio. The company is introducing products like the McCrispy Chicken Sandwich, which has already scaled to over ten major markets, including Spain, driving significant chicken share gains.
Also, the company’s loyalty programs and mobile app have resulted in digital sales representing nearly 40% of system-wide sales in top markets, with over 52 million active loyalty members.
Finally, McDonald’s has successfully created viral marketing phenomena like Grimace and campaigns rooted in consumer insights, which leads to double-digit solid comparable sales growth.
McDonald’s is also actively testing new concepts like CosMc’s, a small-format restaurant, to diversify its offerings and appeal to different customer segments.
PayPal (PYPL)
Source: JHVEPhoto / Shutterstock.com
PayPal (NASDAQ:PYPL) has benefited from the steady growth of e-commerce, which has remained stable in the mid-single digits and even accelerated in recent months.
As a leading digital payment provider, PayPal’s fortunes are tied to the e-commerce industry, and any uptick in e-commerce spending directly contributes to its growth.
The company has experienced growth in its branded checkout volumes, which is a critical area of focus. In June and July, branded checkout volume growth accelerated significantly, suggesting that PayPal’s strategic initiatives in this area are gaining traction and driving growth.
PayPal has disciplined its operating expenses, leading to an 11% reduction in non-GAAP non-transaction-related expenses YoY. This cost management has contributed to an increase in the non-GAAP operating margin, up approximately 2.3% YoY.
The company’s three strategic priorities—branded checkout, merchant solutions, and digital wallets—have driven growth.
PayPal’s focus on innovation, scaling A/B testing, and improving time-to-market has resulted in consistent product deliveries that enhance the customer experience.
Further, PayPal is investing in AI and machine learning technologies to improve its processes, infrastructure, and product quality. These investments will lead to cost savings and enhanced customer experiences, reinforcing long-term growth prospects.
Citigroup (C)
Source: Shutterstock
Citigroup (NYSE:C) has diversified its business model and maintained a strong balance sheet.
This diversification has allowed them to weather challenging macroeconomic conditions in different markets. They have also focused on executing their strategy and simplifying and modernizing their bank. It is ensuring they remain agile and adaptable to changing market conditions.
In terms of revenue growth, Citigroup has seen success in various segments. Their Treasury and Trade Solutions business has experienced substantial growth, with revenues up 15% YoY.
This growth is driven by net interest and non-interest revenue as Citigroup wins fee-generating mandates with new clients and deepens relationships with existing corporate and commercial clients.
Security services revenues have increased by 15%, driven by higher interest rates across currencies.
Citigroup’s focus on cost efficiency is evident in its commitment to bending the expense curve by the end of 2024.
They are pursuing cost-saving opportunities to offset significant investments in their transformation, simplification efforts, and technology enhancements.
In their Personal Banking and Wealth Management business, Citigroup has seen growth in branded cards, retail services, and Wealth at Work.
New client acquisition in the private bank and wealth at work has grown significantly due to investments in their client advisors and bankers network.
While they faced challenges in investment banking, particularly in Q2 2023, Citigroup focused on right-sizing the business and making strategic investments in areas like technology and healthcare.
As of this writing, Yiannis Zourmpanos held a long position in INTC, BABA, PYPL and C. 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 7 Promising Blue-Chip Bargains for Long-Term Growth appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) continues to diversify its product lineup. From semiconductor pioneers to tech giants, digital payment leaders, and global banking stalwarts, these companies have honed their strategies to harness the winds of change and secure their positions in an uncertain future. Finally, efforts to streamline operations and exit non-core businesses have improved profitability, and strategic investments in silicon carbide production have yielded results, contributing to gross margin expansion.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) continues to diversify its product lineup. Finally, efforts to streamline operations and exit non-core businesses have improved profitability, and strategic investments in silicon carbide production have yielded results, contributing to gross margin expansion. Intel (INTC) Source: JHVEPhoto / Shutterstock.com Intel (NASDAQ:INTC) has outlined several key strategies for achieving long-term growth.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) continues to diversify its product lineup. The company’s focus on the automotive and industrial markets, which account for 80% of its revenue, has contributed to its growth. Finally, Intel continues to focus on its product roadmaps with advancements in manufacturing technologies and product offerings, such as the upcoming Meteor Lake platform built on Intel 4 and dedicated AI capabilities to regain its leadership.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) continues to diversify its product lineup. This commitment to AI should capitalize on the growing demand for AI products and services, positioning Intel as a leader. The company’s three strategic priorities—branded checkout, merchant solutions, and digital wallets—have driven growth.
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13687.0
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2023-09-13 00:00:00 UTC
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Markets Today: Stock Index Futures Slip as Mixed U.S. CPI Report Keeps Fed Rate Hikes in Play
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AAPL
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https://www.nasdaq.com/articles/markets-today%3A-stock-index-futures-slip-as-mixed-u.s.-cpi-report-keeps-fed-rate-hikes-in
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Morning Markets
September E-Mini S&P 500 futures (ESU23) this morning are down -0.06%, and Sep Nasdaq 100 E-Mini futures (NQU23) are down -0.14%.
Stock index futures this morning are moderately lower on a mixed U.S. CPI report. U.S. consumer prices in August increased to +3.7% y/y from +3.2% y/y in July, stronger than expectations of +3.6% y/y, which pushed the 10-year T-note yield up to a 3-week high of 4.342% and bolsters the case for the Fed to keep interest rates higher for longer. However, stock losses were contained after Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the slowest pace of increase in almost two years.
U.S. stock index futures are also under pressure on negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting.
The markets are discounting the odds at 5% for a +25 bp rate hike at the September 20 FOMC meeting and 43% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield climbed to a 3-week high of 4.342% and is up +1.6 bp at 4.296%. The 10-year German bund yield rose to a 3-week high of 2.690% and is up +2.5 bp at 2.668%. The 10-year UK gilt yield fell to a 1-1/2 week low of 4.380% and is down -3.5 bp at 4.381%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.60%. China’s Shanghai Composite Index closed -0.45%. Japan’s Nikkei Stock Index closed -0.21%.
The Euro Stoxx 50 today is moderately lower. European stocks are under pressure today on a report from Reuters that said the ECB expects inflation in the Eurozone to remain above 3% next year. That pushed European government bonds higher, with the 10-year German bund yield climbing to a 3-week high of 2.690%. The report also boosted market expectations for a 25 bp rate hike by the ECB at Thursday’s meeting to 64% from 42% on Tuesday.
Weaker-than-expected Eurozone industrial production news also weighed on European stocks. A brief rally in European carmakers lifted the overall market from its worst levels after the European Union said it was launching an investigation into Chinese subsidies for electric vehicles. However, carmakers gave up their gains and turned lower on concerns about a backlash from Chinese authorities.
Reuters reported that the ECB's new economic estimates, due to be released Thursday, will show a Eurozone inflation forecast for 2024 above 3%.
Eurozone Jul industrial production fell -1.1% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 4 months.
China’s Shanghai Composite Index posted moderate losses. Weakness in Chinese suppliers to Apple declined today after the Chinese government flagged “security incidents” with Apple’s iPhones, the government’s first comments on the topic after reports that authorities were moving to restrict the use of Apple products in sensitive departments and state-owned companies. Also, Chinese electric vehicle makers sold off after the European Union said it was launching an investigation into Chinese subsidies for electric vehicles.
On the positive side, Chinese travel stocks and tourism-related companies rallied after Thailand said it would waive visa requirements for travelers from China. Before the pandemic, Chinese tourists accounted for over 30% of Thailand’s 40 million tourist arrivals in 2019. Also, property stocks gained as market sentiment improved on reports that developer Country Gardens received a yuan bond extension.
Japan’s Nikkei Stock Index closed slightly lower. Weakness in Japanese technology stocks led the overall market lower, following the -1% fall in the Nasdaq 100 Stock Index on Tuesday. Also, Japanese suppliers of Boeing fell after Boeing deliveries dropped for a second month after it reported deliveries of 737 Max jets were delayed due to a manufacturing defect where improperly drilled holes were found in a key component that helps control cabin pressure. Japanese stocks recovered from their worst levels on better-than-expected economic reports on August producer prices and Q3 BSI large manufacturing business conditions. Also, Japanese tire companies gained after Citigroup took a bullish stance on the sector due to an improving demand outlook and benefits from the shift to electric vehicles.
Japan Aug PPI eased to +3.2% y/y from +3.4% y/y in July, better than expectations of +3.3% y/y.
The Japan Q3 BSI large manufacturing business conditions rose +5.8 to 5.4, the highest since Q4 of 2021.
Pre-Market U.S. Stock Movers
Apple (AAPL) slid nearly -1% in pre-market trading after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies.
Airline stocks are under pressure after American Airlines Group cut its guidance for Q3 adjusted EPS to 20-30 cents from a previous estimate of 85-95 cents, well below the consensus of 65 cents. As a result, American Airlines Group (AAL) is down more than -2%. Also, Delta Air Lines (DAL), United Airlines Holdings (UAL), and Southwest Airlines (LUV) are down more than -1%.
Applied Optoelectronics (AAOI) tumbled more than -12% in pre-market trading after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology.
Unity Software (U) lost almost -1% in pre-market trading after Oppenheimer noted negative publicity from the news that the company announced a new pricing structure for its game engine.
Ford Motor (F) rose more than +2% in pre-market trading after UBS double-upgraded the stock to buy from sell with a price target of $15.
General Motors (GM) gained nearly +1% in pre-market trading after UBS upgraded the stock to buy from neutral with a price target of $44.
Moderna (MRNA) climbed more than +3% in pre-market trading after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine.
Match Group (MTCH) rose more than +2% in pre-market trading after JPMorgan Chase said the stock is now a top pick, and investors are “too pessimistic” about the company.
Earnings Reports (9/13/2023)
Cracker Barrel Old Country Store (CBRL), DZS Inc (DZSI), EVI Industries Inc (EVI), IBEX Holdings Ltd (IBEX), Presto Automation Inc (PRST), Radiant Logistics Inc (RLGT), REV Group Inc (REVG), Selectquote Inc (SLQT), Semtech Corp (SMTC), Vitesse Energy Inc (VTS).
More Stock Market News from Barchart
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Pre-Market U.S. Stock Movers Apple (AAPL) slid nearly -1% in pre-market trading after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies. U.S. consumer prices in August increased to +3.7% y/y from +3.2% y/y in July, stronger than expectations of +3.6% y/y, which pushed the 10-year T-note yield up to a 3-week high of 4.342% and bolsters the case for the Fed to keep interest rates higher for longer. Also, Japanese tire companies gained after Citigroup took a bullish stance on the sector due to an improving demand outlook and benefits from the shift to electric vehicles.
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Pre-Market U.S. Stock Movers Apple (AAPL) slid nearly -1% in pre-market trading after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies. U.S. stock index futures are also under pressure on negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Weakness in Chinese suppliers to Apple declined today after the Chinese government flagged “security incidents” with Apple’s iPhones, the government’s first comments on the topic after reports that authorities were moving to restrict the use of Apple products in sensitive departments and state-owned companies.
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Pre-Market U.S. Stock Movers Apple (AAPL) slid nearly -1% in pre-market trading after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies. U.S. stock index futures are also under pressure on negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. More Stock Market News from Barchart 3 Professional Services Companies Ready to Pop 2 Bearish Option Ideas To Consider This Wednesday Stocks Tread Water Before the Open as U.S. Inflation Data Looms Stocks Retreat as Tech Stocks Fall on Weakness in Oracle and Apple On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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Pre-Market U.S. Stock Movers Apple (AAPL) slid nearly -1% in pre-market trading after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies. Stock index futures this morning are moderately lower on a mixed U.S. CPI report. The 10-year German bund yield rose to a 3-week high of 2.690% and is up +2.5 bp at 2.668%.
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13688.0
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2023-09-13 00:00:00 UTC
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SPYG, AAPL, MSFT, NVDA: Large Inflows Detected at ETF
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AAPL
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https://www.nasdaq.com/articles/spyg-aapl-msft-nvda%3A-large-inflows-detected-at-etf
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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 SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $406.8 million dollar inflow -- that's a 2.2% increase week over week in outstanding units (from 303,400,000 to 310,000,000). Among the largest underlying components of SPYG, in trading today Apple Inc (Symbol: AAPL) is off about 0.6%, Microsoft Corporation (Symbol: MSFT) is up about 0.5%, and NVIDIA Corp (Symbol: NVDA) is higher by about 0.8%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average:
Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $63.0756 as the 52 week high point — that compares with a last trade of $61.70. 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:
LHX Stock Predictions
Rockwell Automation Average Annual Return
Funds Holding Sysco
The views and 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 SPYG, in trading today Apple Inc (Symbol: AAPL) is off about 0.6%, Microsoft Corporation (Symbol: MSFT) is up about 0.5%, and NVIDIA Corp (Symbol: NVDA) is higher by about 0.8%. 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 SPYG, in trading today Apple Inc (Symbol: AAPL) is off about 0.6%, Microsoft Corporation (Symbol: MSFT) is up about 0.5%, and NVIDIA Corp (Symbol: NVDA) is higher by about 0.8%. For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $63.0756 as the 52 week high point — that compares with a last trade of $61.70. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of SPYG, in trading today Apple Inc (Symbol: AAPL) is off about 0.6%, Microsoft Corporation (Symbol: MSFT) is up about 0.5%, and NVIDIA Corp (Symbol: NVDA) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $406.8 million dollar inflow -- that's a 2.2% increase week over week in outstanding units (from 303,400,000 to 310,000,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $63.0756 as the 52 week high point — that compares with a last trade of $61.70.
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Among the largest underlying components of SPYG, in trading today Apple Inc (Symbol: AAPL) is off about 0.6%, Microsoft Corporation (Symbol: MSFT) is up about 0.5%, and NVIDIA Corp (Symbol: NVDA) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) where we have detected an approximate $406.8 million dollar inflow -- that's a 2.2% increase week over week in outstanding units (from 303,400,000 to 310,000,000). For a complete list of holdings, visit the SPYG Holdings page » The chart below shows the one year price performance of SPYG, versus its 200 day moving average: Looking at the chart above, SPYG's low point in its 52 week range is $47.91 per share, with $63.0756 as the 52 week high point — that compares with a last trade of $61.70.
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13689.0
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2023-09-13 00:00:00 UTC
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ANALYSIS-Investors call 'peak pessimism' for beaten-up UK stocks
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AAPL
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https://www.nasdaq.com/articles/analysis-investors-call-peak-pessimism-for-beaten-up-uk-stocks
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nan
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nan
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By Naomi Rovnick
LONDON, Sept 13 (Reuters) - Long-term gloom about Britain's economy appears to be lifting and some big investors reckon the end of extreme pessimism is near, with gains ahead for UK-focused businesses and the more international but long-shunned FTSE 100. After years of outflows and big companies such as materials group CRH moving stock listings overseas, the UK's FTSE All Share index .FTAS is valued at around 2.28 trillion pounds ($2.84 trillion). That's roughly the same as a single U.S. stock, Apple AAPL.O, while British companies are trading at around a record discount to global equities.
High government debt, crumbling infrastructure, political turmoil and 14 rate hikes since late 2021 have hurt sentiment.
Yet, the economy has not entered recession as feared and official statisticians have sharply upgraded data to show the UK recovered earlier from COVID-19 than previously thought.
UK-based investors said they are increasing holdings of domestic businesses and taking advantage of low valuations for the FTSE-100.
"It feels like we've passed the peak of pessimism about the UK," said Daniel Lockyer, senior fund manager at 7 billion-pound investment and advice group Hawksmoor Investment Management, which increased its exposure to UK companies in August.
"We don't necessarily need to see a huge bout of positive news, but the trend of negativity is slowing and the key to making money in any market is to get in at the bottom and capture the start of a turnaround."
UNDERPERFORMER
A cumulative 76 billion pounds has flowed out of UK equity funds since 2016, data provider Morningstar said, with the bulk of outflows in the last three years. Global equity funds tracked by Morningstar have had 507 billion pounds of net inflows since 2016.
UK pension funds, enticed by better returns overseas, have cut allocations to UK equities to 6% from 53% 25 years ago, according to think tank New Financial.
Still, there are bright spots.
While the domestically focused FTSE 250 share index .FTMC has dropped for four out of the last six months, the FTSE 350 sub-index of leisure stocks has gained 18% year-to-date..FTNMX405010. A UK retail stocks index .FTUB4040 is up 23%.
Consumer stocks are outperforming as investors bet on the UK cost of living crisis becoming less intense.
"The outturn for the UK economy will be and is better than the markets expected," said Invesco's head of UK equities Martin Walker, adding that his portfolio was now modestly overweight UK consumer staples for the first time in many years.
The FTSE 100, trading on a price-earnings ratio of 10.5 times compared to 12.5 times for the wider Stoxx Europe 600 .STOXX, presented "a real opportunity because you are buying (its companies) at a discount," Walker said.
Economists polled by Reuters expect the UK to eke out 0.3% growth this year, trailing the euro zone but a big contrast to late 2022, when many forecast recession.
The Bank of England is expected to hike rates again this month, exacerbating stress for homeowners due to the refinancing of fixed-term mortgages at higher costs.
WAGES
But after UK households endured the biggest inflation shock for four decades and a cost-of-living crisis, wages are now growing faster than prices. Energy bills are expected to drop to a two-year lownext month.
Pay rises, said Pantheon Macroeconomics Chief UK Economist Samuel Tombs, mean British households can "maintain their current level of real expenditure under any plausible scenario for official interest rates."
Leigh Himsworth, UK fund manager at Fidelity International, said he was "trying to pick off UK retailers we can buy", while it was also "time to pick up some of the (UK) real estate sector."
Discount chain Wilko has collapsed under the pressure of the cost-of-living crisis but stronger businesses are seeing improvements. Marks & Spencer MKS.L, a bellwether of UK discretionary spending, has lifted its annual profit forecast.
Neil Birrell, chief investment officer at fund manager Premier Miton, said he has raised the proportion of UK stocks in his multi-asset portfolios to the highest since 2019, with a bias towards consumer businesses.
But while noting good economic reasons to call an upturn for UK stocks, fund managers also stressed the need for further steps from policymakers to revive interest in British equities.
Premier Miton is lobbying policymakers to introduce a new tax-efficient investment vehicle for UK stocks. Himsworth, at Fidelity, suggested a new national savings product that could provide capital to British businesses.
Savvas Savouri, London-based partner and chief economist at 4.5 billion pound hedge fund Toscafund, said quality UK companies do not have a strong enough domestic investor base.
"UK equities have been an abject failure," he said. "We have de-equitisation because we don't value our companies."
($1 = 0.7990 pounds)
UK stocks at record discount https://tmsnrt.rs/3EB0VRh
UK wage growth is now outpacing inflation UK wage growth is now outpacing inflation https://tmsnrt.rs/3ZdYcqr
UK consumer stocks predict economic gloom will lift https://tmsnrt.rs/483rlIO
(Reporting by Naomi Rovnick; editing by Dhara Ranasinghe and Sharon Singleton)
((Naomi.Rovnick@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's roughly the same as a single U.S. stock, Apple AAPL.O, while British companies are trading at around a record discount to global equities. By Naomi Rovnick LONDON, Sept 13 (Reuters) - Long-term gloom about Britain's economy appears to be lifting and some big investors reckon the end of extreme pessimism is near, with gains ahead for UK-focused businesses and the more international but long-shunned FTSE 100. Pay rises, said Pantheon Macroeconomics Chief UK Economist Samuel Tombs, mean British households can "maintain their current level of real expenditure under any plausible scenario for official interest rates."
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That's roughly the same as a single U.S. stock, Apple AAPL.O, while British companies are trading at around a record discount to global equities. After years of outflows and big companies such as materials group CRH moving stock listings overseas, the UK's FTSE All Share index .FTAS is valued at around 2.28 trillion pounds ($2.84 trillion). A cumulative 76 billion pounds has flowed out of UK equity funds since 2016, data provider Morningstar said, with the bulk of outflows in the last three years.
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That's roughly the same as a single U.S. stock, Apple AAPL.O, while British companies are trading at around a record discount to global equities. "The outturn for the UK economy will be and is better than the markets expected," said Invesco's head of UK equities Martin Walker, adding that his portfolio was now modestly overweight UK consumer staples for the first time in many years. Leigh Himsworth, UK fund manager at Fidelity International, said he was "trying to pick off UK retailers we can buy", while it was also "time to pick up some of the (UK) real estate sector."
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That's roughly the same as a single U.S. stock, Apple AAPL.O, while British companies are trading at around a record discount to global equities. A cumulative 76 billion pounds has flowed out of UK equity funds since 2016, data provider Morningstar said, with the bulk of outflows in the last three years. While the domestically focused FTSE 250 share index .FTMC has dropped for four out of the last six months, the FTSE 350 sub-index of leisure stocks has gained 18% year-to-date..FTNMX405010.
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13690.0
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2023-09-13 00:00:00 UTC
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Stocks Waver after a Mixed U.S. CPI Report
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AAPL
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https://www.nasdaq.com/articles/stocks-waver-after-a-mixed-u.s.-cpi-report
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) Wednesday closed up +0.12%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.38%.
Stocks on Wednesday settled mixed. The broader market posted modest gains Wednesday after a mixed U.S. consumer price report. U.S. consumer prices in August increased to +3.7% y/y from +3.2% y/y in July, stronger than expectations of +3.6% y/y. However, stocks found support after Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the smallest increase in almost two years.
Gains in U.S. stock index futures were limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting.
The markets are discounting the odds at 2% for a +25 bp rate hike at the September 20 FOMC meeting and 40% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields on Wednesday were mixed. The 10-year T-note yield fell from a 3-week high of 4.342% and finished down -4.1 bp at 4.239%. The 10-year German bund yield rose to a 3-week high of 2.690% and finished up +0.8 bp at 2.651%. The 10-year UK gilt yield fell to a 1-1/2 week low of 4.342% and finished down -6.9 bp at 4.347%.
Overseas stock markets Wednesday settled lower. The Euro Stoxx 50 closed -0.44%. China’s Shanghai Composite Index closed -0.45%. Japan’s Nikkei Stock Index closed -0.21%.
Reuters reported that the ECB's new economic estimates, due to be released Thursday, will show a Eurozone inflation forecast for 2024 above 3%.
Eurozone Jul industrial production fell -1.1% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 4 months.
Japan Aug PPI eased to +3.2% y/y from +3.4% y/y in July, better than expectations of +3.3% y/y.
The Japan Q3 BSI large manufacturing business conditions rose +5.8 to 5.4, the highest since Q4 of 2021.
Today’s stock movers…
JB Hunt Transport Services (JBHT) closed up more than +4% to lead gainers in the S&P 500 after the company said it expects a gradual increase of freight as retailers have mostly whittled down excess inventories.
Moderna (MRNA) closed up more than +3% to lead gainers in the Nasdaq 100 after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine.
Morgan Stanley (MS) closed up more than +2%, adding to Tuesday’s +2% gain after investment manager Simkowitz said, “We are more confident now than any time this year about an improved outlook for 2024.”
Westrock (WRK) closed up more than +2%, adding to Tuesday’s +2% gain after Smurfit Kappa Group Plc agreed to acquire the company in a $11.2 billion deal.
Ford Motor (F) closed up more than +1% after UBS double-upgraded the stock to buy from sell with a price target of $15.
Commercial real estate brokerage stocks tumbled Wednesday after the CFO of CBRE Group said the market has become more challenging as interest rates rose recently, and it expects Q3 EPS to fall in the “high-teens range,” weaker than the consensus for flat earnings. As a result, CBRE Group (CBRE) closed down more than -6% to lead losers in the S&P 500. Also, Jones Lang LaSalle (JLL) closed down more than -7%, Newmark Group (NMRK) closed down more than -6%, and Cushman & Wakefield (CWK) closed down more than -5%.
3M Co (MMM) closed down more than -5% to lead losers in the Dow Jones Industrials after the company pushed out the spinoff of its healthcare division to the first half of 2024 from an earlier target of late 2023 and cautioned on the outlook for next year.
Netflix (NFLX) closed down more than -5% to lead losers in the Nasdaq 100 after the CFO said at the Bank of America Media, Communications & Entertainment Conference that it needs to get back to revenue growth in 2024 and it doesn’t see a way to profit in live sports.
Airline stocks were under pressure after American Airlines Group cut its guidance for Q3 adjusted EPS to 20-30 cents from a previous estimate of 85-95 cents, well below the consensus of 65 cents. As a result, American Airlines Group (AAL) closed down more than -5%. Also, United Airlines Holdings (UAL) closed down more than -3%. In addition, Delta Air Lines (DAL) and Alaska Air Group (ALK) closed down more than -2%, and Southwest Airlines (LUV) closed down more than -1%.
Regional bank stocks retreated Wednesday on comments from Zions Bancorp CEO Simmons, who said they are seeing a slowdown in loan demand. As a result, U.S. Bancorp (USB) closed down more than -5%, and Truist Financial (TFC) closed down more than -4%. Also, Citizens Financial Group (CFG) closed down more than -3%, and Comerica (CMA), M&T Bank (MTB), Huntington Bancshares (HBAN), Zions Bancorp (ZION), and KeyCorp (KEY) closed down more than -2%.
Applied Optoelectronics (AAOI) closed down more than -19% after it terminated its agreement to sell manufacturing facilities in China to Yuhan Optoelectronic Technology.
Apple (AAPL) closed down more than -1% after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies.
Across the markets…
December 10-year T-notes (ZNZ23) on Wednesday closed up +4.5 ticks, and the 10-year T-note yield fell -4.1 bp to 4.239%. Dec T-note prices Wednesday recovered from a 3-week low and moved higher, and the 10-year T-note yield fell back from a 3-week high of 4.342%. T-notes found support Wednesday after U.S. Aug core CPI eased to +4.3% y/y from +4.7% y/y in July, right on expectations and the slowest pace of increase in almost two years. T-notes also moved higher on strong demand for the Treasury’s $20 billion auction of re-opened 30-year T-bonds with a bid-to-cover ratio of 2.46, better than the 10-auction average of 2.39.
T-notes Wednesday initially fell on negative carryover from a slump in 10-year German bunds to a 3-week low. Also, the stronger-than-expected U.S. Aug CPI was bearish for T-notes. In addition, inflation expectations rose early Wednesday and weighed on T-notes after the 10-year breakeven inflation rate posted a 4-week high of 2.371% before falling back.
More Stock Market News from Barchart
Strength in the U.S. CPI Report Boosts the Dollar
Buy the Dip: These 2 Stocks Have Traded Lower for 5 Consecutive Days
3 Stocks to Avoid as Oil Prices Soar
What Would $10,000 Invested in Tesla Stock at its IPO Be Worth Now?
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) closed down more than -1% after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies. Moderna (MRNA) closed up more than +3% to lead gainers in the Nasdaq 100 after it said a reformulated version of its messenger-RNA-based flu shot met its primary goals in a final-stage trial, paving the way for it to seek FDA approval for the vaccine. Commercial real estate brokerage stocks tumbled Wednesday after the CFO of CBRE Group said the market has become more challenging as interest rates rose recently, and it expects Q3 EPS to fall in the “high-teens range,” weaker than the consensus for flat earnings.
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Apple (AAPL) closed down more than -1% after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies. Gains in U.S. stock index futures were limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting. Reuters reported that the ECB's new economic estimates, due to be released Thursday, will show a Eurozone inflation forecast for 2024 above 3%.
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Apple (AAPL) closed down more than -1% after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies. What you need to know… The S&P 500 Index ($SPX) (SPY) Wednesday closed up +0.12%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.38%. Gains in U.S. stock index futures were limited by negative carryover from a slide in European stocks as the 10-year German bund yield jumped to a 3-week high after Reuters reported that the ECB's new economic estimates due to be released Thursday will show a Eurozone inflation forecast for 2024 above 3%, bolstering the case for the ECB to raise interest rates at Thursday’s policy meeting.
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Apple (AAPL) closed down more than -1% after China flagged “security incidents” with Apple’s iPhones, the government’s first comments after news reports that it was restricting the use of Apple products in sensitive departments and state-owned companies. As a result, CBRE Group (CBRE) closed down more than -6% to lead losers in the S&P 500. As a result, American Airlines Group (AAL) closed down more than -5%.
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13691.0
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2023-09-13 00:00:00 UTC
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Berkshire sells some HP shares after taking big stake last year
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AAPL
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https://www.nasdaq.com/articles/berkshire-sells-some-hp-shares-after-taking-big-stake-last-year
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nan
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nan
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By Jonathan Stempel
Sept 13 (Reuters) - Warren Buffett's Berkshire Hathaway BRKa.N said on Wednesday it has sold about 5.5 million shares of HP HPQ.N, undoing part of what has been a large, unsuccessful investment in the maker of personal computers and printers.
Berkshire sold the shares this week for about $158 million, reducing its HP stake to about $3.27 billion, according to a filing with the U.S. Securities and Exchange Commission.
Buffett's company now owns about 11.7% of HP's shares, down from 12.2% before the sales, SEC filings show.
Wednesday's filing does not say why Berkshire sold shares. Berkshire did not immediately respond to a request for comment after market hours.
HP's share price has fallen 19% since Berkshire in April 2022 revealed an unexpected $4.2 billion stake in the Palo Alto, California-based company, which had been separated seven years earlier from the former Hewlett-Packard.
That disclosure caused HP's share price to rise 14.8% the following day to $40.06. The shares closed down 61 cents at $28.33 on Wednesday.
On Aug. 29, HP lowered its forecast for full-year profit, as it combats a year-long slump in personal computers and sluggish demand from China.
Then on Monday, HP disclosed material weaknesses in its controls over financial reporting, which related to one of its customers and to a payment application for some sales incentive programs.
Companies' stock prices often rise when Berkshire discloses new stakes, reflecting investors' regard for Buffett, the world's fifth-richest person according to Forbes magazine.
Stock prices, conversely, sometimes fall when Berkshire discloses sales.
Buffett does not regularly invest in technology companies, though iPhone maker Apple AAPL.O comprised about half of Berkshire's $353.4 billion equity portfolio at the end of June.
Berkshire is based in Omaha, Nebraska. It also owns dozens of businesses including the BNSF railroad and Geico car insurance.
(Reporting by Jonathan Stempel in New York; Editing by Lincoln Feast)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Buffett does not regularly invest in technology companies, though iPhone maker Apple AAPL.O comprised about half of Berkshire's $353.4 billion equity portfolio at the end of June. By Jonathan Stempel Sept 13 (Reuters) - Warren Buffett's Berkshire Hathaway BRKa.N said on Wednesday it has sold about 5.5 million shares of HP HPQ.N, undoing part of what has been a large, unsuccessful investment in the maker of personal computers and printers. HP's share price has fallen 19% since Berkshire in April 2022 revealed an unexpected $4.2 billion stake in the Palo Alto, California-based company, which had been separated seven years earlier from the former Hewlett-Packard.
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Buffett does not regularly invest in technology companies, though iPhone maker Apple AAPL.O comprised about half of Berkshire's $353.4 billion equity portfolio at the end of June. By Jonathan Stempel Sept 13 (Reuters) - Warren Buffett's Berkshire Hathaway BRKa.N said on Wednesday it has sold about 5.5 million shares of HP HPQ.N, undoing part of what has been a large, unsuccessful investment in the maker of personal computers and printers. That disclosure caused HP's share price to rise 14.8% the following day to $40.06.
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Buffett does not regularly invest in technology companies, though iPhone maker Apple AAPL.O comprised about half of Berkshire's $353.4 billion equity portfolio at the end of June. By Jonathan Stempel Sept 13 (Reuters) - Warren Buffett's Berkshire Hathaway BRKa.N said on Wednesday it has sold about 5.5 million shares of HP HPQ.N, undoing part of what has been a large, unsuccessful investment in the maker of personal computers and printers. Berkshire sold the shares this week for about $158 million, reducing its HP stake to about $3.27 billion, according to a filing with the U.S. Securities and Exchange Commission.
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Buffett does not regularly invest in technology companies, though iPhone maker Apple AAPL.O comprised about half of Berkshire's $353.4 billion equity portfolio at the end of June. By Jonathan Stempel Sept 13 (Reuters) - Warren Buffett's Berkshire Hathaway BRKa.N said on Wednesday it has sold about 5.5 million shares of HP HPQ.N, undoing part of what has been a large, unsuccessful investment in the maker of personal computers and printers. Berkshire sold the shares this week for about $158 million, reducing its HP stake to about $3.27 billion, according to a filing with the U.S. Securities and Exchange Commission.
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13692.0
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2023-09-13 00:00:00 UTC
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Which Fund Beats the Superstar QQQ ETF?
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AAPL
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https://www.nasdaq.com/articles/which-fund-beats-the-superstar-qqq-etf
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The ultra-popular Invesco QQQ QQQ has surged more than 40% so far this year, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA, which account for almost 45% of the portfolio.
QQQ is also one of the best-performing ETFs of the past decade. From March 10, 1999, to June 30, 2023, the Nasdaq-100 Index, synonymous with growth and innovation, returned over 780%, according to Invesco.
Bloomberg recently reported that only one equity mutual fund, the Baron Partners Fund, has outperformed QQQ over the past 5, 10, and 15 years, mainly due to its outsized exposure to Tesla.
Ron Baron, a longtime Elon Musk supporter and Tesla bull, told CNBC that he expects shares to hit $500 in 2025 and $1,500 by 2030. He purchased most of their Tesla shares from 2014 to 2016 and has seen their value increase by 20 times since then.
The billionaire investor has also become one of SpaceX’s largest investors. The privately-owned space company currently accounts for about 9% of the mutual fund's holdings, whereas Tesla enjoys more than a 40% weighting.
To learn more about the Baron Partners Fund, QQQ and its cheaper version, the Invesco NASDAQ 100 ETF QQQM, please watch the short video above.
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Alphabet Inc. (GOOG) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The ultra-popular Invesco QQQ QQQ has surged more than 40% so far this year, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA, which account for almost 45% of the portfolio. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Ron Baron, a longtime Elon Musk supporter and Tesla bull, told CNBC that he expects shares to hit $500 in 2025 and $1,500 by 2030.
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The ultra-popular Invesco QQQ QQQ has surged more than 40% so far this year, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA, which account for almost 45% of the portfolio. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Bloomberg recently reported that only one equity mutual fund, the Baron Partners Fund, has outperformed QQQ over the past 5, 10, and 15 years, mainly due to its outsized exposure to Tesla.
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The ultra-popular Invesco QQQ QQQ has surged more than 40% so far this year, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA, which account for almost 45% of the portfolio. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Bloomberg recently reported that only one equity mutual fund, the Baron Partners Fund, has outperformed QQQ over the past 5, 10, and 15 years, mainly due to its outsized exposure to Tesla.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The ultra-popular Invesco QQQ QQQ has surged more than 40% so far this year, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA, which account for almost 45% of the portfolio. Bloomberg recently reported that only one equity mutual fund, the Baron Partners Fund, has outperformed QQQ over the past 5, 10, and 15 years, mainly due to its outsized exposure to Tesla.
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2023-09-13 00:00:00 UTC
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Dimensional Actively Seeks U.S. Core Equities With DCOR
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AAPL
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https://www.nasdaq.com/articles/dimensional-actively-seeks-u.s.-core-equities-with-dcor
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nan
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nan
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Dimensional has launched the Dimensional US Core Equity 1 ETF (NYSE Arca: DCOR) on the New York Stock Exchange. The actively managed fund is designed to purchase a broad and diverse group of equity securities of U.S. companies.
The fund’s management team combines research, portfolio design, portfolio management, and trading functions to select its holdings. The portfolio invests in companies of all sizes. It gives moderately increased exposure to smaller capitalization, lower relative prices, and higher profitability companies.
See more: “Dimensional Launches U.S. Large-Cap Value and Global Real Estate ETFs”
Top holdings as of September 12 were Apple Inc. (AAPL) (at 4.93%), Microsoft Corp. (MSFT) (4.4%), and Amazon.com Inc. (AMZN) (2.21%). DCOR carries an expense ratio of 0.14%.
"Advisors are increasingly turning to active management to meet asset allocation needs,” said Todd Rosenbluth, VettaFi’s head of research. “Dimensional already a strong active lineup but it is great to see them continue to expand.”
$100 Billion in Under 3 Years
Dimensional recently surpassed $100 billion in ETF assets under management less than three years since its first ETF launch.
“We are proud to reach this milestone, which signals that our ETF suite is delivering value for the financial professionals we work with and meeting investors’ needs,” said co-CEO Dave Butler. “We remain committed to providing these professionals with more ways to access low-cost, thoughtfully constructed investment solutions.”
Dimensional’s ETF business has seen nearly $60 billion in net flows since it launched in November 2020 and nearly $20 billion in YTD net flows.
For more news, information, and analysis, visit VettaFi | ETF Trends.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See more: “Dimensional Launches U.S. Large-Cap Value and Global Real Estate ETFs” Top holdings as of September 12 were Apple Inc. (AAPL) (at 4.93%), Microsoft Corp. (MSFT) (4.4%), and Amazon.com Inc. (AMZN) (2.21%). "Advisors are increasingly turning to active management to meet asset allocation needs,” said Todd Rosenbluth, VettaFi’s head of research. “We are proud to reach this milestone, which signals that our ETF suite is delivering value for the financial professionals we work with and meeting investors’ needs,” said co-CEO Dave Butler.
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See more: “Dimensional Launches U.S. Large-Cap Value and Global Real Estate ETFs” Top holdings as of September 12 were Apple Inc. (AAPL) (at 4.93%), Microsoft Corp. (MSFT) (4.4%), and Amazon.com Inc. (AMZN) (2.21%). The actively managed fund is designed to purchase a broad and diverse group of equity securities of U.S. companies. The fund’s management team combines research, portfolio design, portfolio management, and trading functions to select its holdings.
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See more: “Dimensional Launches U.S. Large-Cap Value and Global Real Estate ETFs” Top holdings as of September 12 were Apple Inc. (AAPL) (at 4.93%), Microsoft Corp. (MSFT) (4.4%), and Amazon.com Inc. (AMZN) (2.21%). Dimensional has launched the Dimensional US Core Equity 1 ETF (NYSE Arca: DCOR) on the New York Stock Exchange. “Dimensional already a strong active lineup but it is great to see them continue to expand.” $100 Billion in Under 3 Years Dimensional recently surpassed $100 billion in ETF assets under management less than three years since its first ETF launch.
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See more: “Dimensional Launches U.S. Large-Cap Value and Global Real Estate ETFs” Top holdings as of September 12 were Apple Inc. (AAPL) (at 4.93%), Microsoft Corp. (MSFT) (4.4%), and Amazon.com Inc. (AMZN) (2.21%). Dimensional has launched the Dimensional US Core Equity 1 ETF (NYSE Arca: DCOR) on the New York Stock Exchange. The fund’s management team combines research, portfolio design, portfolio management, and trading functions to select its holdings.
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13694.0
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2023-09-13 00:00:00 UTC
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After Hours Most Active for Sep 13, 2023 : INTC, BMY, AAPL, BAC, AMZN, JPM, C, HBAN, GRAB, QQQ, TFC, WY
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-13-2023-%3A-intc-bmy-aapl-bac-amzn-jpm-c-hban-grab-qqq-tfc
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The NASDAQ 100 After Hours Indicator is up 9.76 to 15,358.29. The total After hours volume is currently 87,770,759 shares traded.
The following are the most active stocks for the after hours session:
Intel Corporation (INTC) is +0.03 at $38.74, with 5,631,491 shares traded. INTC's current last sale is 110.69% of the target price of $35.
Bristol-Myers Squibb Company (BMY) is +0.13 at $59.78, with 3,860,735 shares traded. BMY's current last sale is 79.18% of the target price of $75.5.
Apple Inc. (AAPL) is -0.2097 at $174.00, with 3,404,199 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Bank of America Corporation (BAC) is -0.01 at $28.87, with 2,412,072 shares traded. BAC's current last sale is 82.49% of the target price of $35.
Amazon.com, Inc. (AMZN) is +0.7 at $145.55, with 2,336,744 shares traded., following a 52-week high recorded in today's regular session.
J P Morgan Chase & Co (JPM) is +0.02 at $146.43, with 2,155,717 shares traded. As reported by Zacks, the current mean recommendation for JPM is in the "buy range".
Citigroup Inc. (C) is +0.01 at $42.38, with 2,066,305 shares traded. C's current last sale is 84.76% of the target price of $50.
Huntington Bancshares Incorporated (HBAN) is +0.03 at $10.69, with 2,026,243 shares traded. HBAN's current last sale is 82.23% of the target price of $13.
Grab Holdings Limited (GRAB) is -0.02 at $3.51, with 2,000,080 shares traded. As reported by Zacks, the current mean recommendation for GRAB is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.39 at $374.60, with 1,870,823 shares traded. This represents a 47.33% increase from its 52 Week Low.
Truist Financial Corporation (TFC) is unchanged at $28.62, with 1,464,914 shares traded. TFC's current last sale is 75.32% of the target price of $38.
Weyerhaeuser Company (WY) is unchanged at $32.15, with 1,444,962 shares traded. As reported by Zacks, the current mean recommendation for WY 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 -0.2097 at $174.00, with 3,404,199 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is +0.7 at $145.55, with 2,336,744 shares traded., following a 52-week high recorded in today's regular session.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.2097 at $174.00, with 3,404,199 shares traded. As reported by Zacks, the current mean recommendation for JPM is in the "buy range".
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Apple Inc. (AAPL) is -0.2097 at $174.00, with 3,404,199 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 87,770,759 shares traded.
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Apple Inc. (AAPL) is -0.2097 at $174.00, with 3,404,199 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 9.76 to 15,358.29.
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13695.0
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2023-09-13 00:00:00 UTC
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Zacks Industry Outlook Highlights Apple, HP and 3D Systems
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AAPL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-apple-hp-and-3d-systems
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nan
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nan
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For Immediate Release
Chicago, IL – September 13, 2023 – Today, Zacks Equity Research discusses Apple AAPL, HP HPQ and 3D Systems DDD.
Industry: Mini-Computers
Link: https://www.zacks.com/commentary/2147724/3-stocks-to-watch-from-the-challenging-computer-industry
The Zacks Computer – Mini Computers industry is suffering from the waning demand for consumer PCs, massive supply-chain issues and geopolitical challenges, including raging inflation and high interest. Nevertheless, strong demand for high-end enterprise laptops is benefiting Apple and HP. Steady demand for 3-D printing is aiding 3D Systems. The improving availability of 5G-enabled smartphones has been a key catalyst for industry participants.
The growing adoption of tablets among enterprises bodes well for companies like Apple and Lenovo. The launch of foldable, and AI and ML-infused smartphones, tablets, wearables and hearables is another major growth driver for industry participants. Robust demand for production printers, materials and software bodes well for 3-D printing solution providers.
Industry Description
The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows or Google Chrome and Android operating systems. The companies predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung.
Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Mini Computer Industry Trends to Watch
Enterprise Adoption Remains Healthy: Strong enterprise demand has been benefiting industry participants. The industry is benefiting from the rapid adoption of Bring Your Own Device (BYOD) in workplaces. Enterprises practicing BYOD allow employees to use their personal devices, including mobiles, laptops and tablets, for work purposes.
Moreover, the growing adoption of a hybrid working environment bodes well for industry participants, as demand for laptops and tablets is expected to increase. Demand for smart devices that offer facial recognition, retina scans, or finger impressions to verify the user for biometrics is gaining traction as enterprises enhance security.
Impressive Form Factor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm, NVIDIA, Apple and Samsung.
Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers. Improved graphics quality is making smartphones suitable for playing sophisticated games. This is driving demand for high-end smartphones and opening up significant opportunities for device makers.
PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based ones, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalysts in expanding the total addressable market of PCs.
Zacks Industry Rank Indicates Dim Prospects
The Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #196, which places it in the bottom 22% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dim near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential. Since Sep 30, 2022, the Zacks Consensus Estimate for this industry’s 2023 earnings has moved down 6.6%.
Despite the gloomy outlook, there are a few stocks worth watching in the sector. But before we present those stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags Sector Beats S&P 500
The Zacks Computer – Mini Computers industry has underperformed the broader Zacks Computer and Technology sector but beat the S&P 500 index over the past year.
The industry has surged 16.4% over this period compared with the S&P 500’s return of 14.5% and the broader sector’s growth of 27.5%.
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 26.65X compared with the S&P 500’s 19.30X and the sector’s 24.17X.
Over the last five years, the industry has traded as high as 32.32X and as low as 11.49X, with the median being 23.64X.
3 Computer Stocks to Watch Right Now
3D Systems – This Zacks Rank #2 (Buy) company benefits from strong orthodontics, healthcare and industrial businesses. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The healthcare business is benefiting from the emergence of Virtual Surgical Planning and Orthopedic applications. 3D Systems is expected to benefit from dominance in the aerospace & defense market. Its partnership with Theradaptive boosts the addressable market. 3D Systems’ prospects are also expected to benefit from its initiatives related to Regenerative Medicine.
The Zacks Consensus Estimate for 2023 loss has widened by a couple of cents to 22 cents per share over the past 30 days. The stock has declined 31.9% in the year-to-date period.
Apple: This Zacks Rank #3 (Hold) company is benefiting from steady demand for iPhone 14 and 14 Plus, as well as expanding footprint in emerging markets. A growing subscriber base and improving customer engagement are tailwinds for the services business.
Apple currently has more than 1 billion paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping it offer appealing new apps that drive the App Store’s traffic. A growing number of AI-infused apps will attract subscribers to the App Store.
The Zacks Consensus Estimate for fiscal 2023 earnings has increased by a penny to $6.05 per share over the past 30 days. The stock has gained 38% in the year-to-date period.
HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment.
Product innovation and differentiations are the key drivers that have helped HPQ maintain its leading position in the PC and printer markets.
The Zacks Consensus Estimate for fiscal 2023 earnings has decreased 11.4% to $3.31 per share over the past 30 days. Shares of HP have gained 10% year to date.
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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.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
3D Systems Corporation (DDD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – September 13, 2023 – Today, Zacks Equity Research discusses Apple AAPL, HP HPQ and 3D Systems DDD. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. Demand for smart devices that offer facial recognition, retina scans, or finger impressions to verify the user for biometrics is gaining traction as enterprises enhance security.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – September 13, 2023 – Today, Zacks Equity Research discusses Apple AAPL, HP HPQ and 3D Systems DDD. Industry Description The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers.
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For Immediate Release Chicago, IL – September 13, 2023 – Today, Zacks Equity Research discusses Apple AAPL, HP HPQ and 3D Systems DDD. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry Description The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers.
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For Immediate Release Chicago, IL – September 13, 2023 – Today, Zacks Equity Research discusses Apple AAPL, HP HPQ and 3D Systems DDD. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. 3 Mini Computer Industry Trends to Watch Enterprise Adoption Remains Healthy: Strong enterprise demand has been benefiting industry participants.
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13696.0
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2023-09-13 00:00:00 UTC
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Stocks Tread Water Before the Open as U.S. Inflation Data Looms
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AAPL
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https://www.nasdaq.com/articles/stocks-tread-water-before-the-open-as-u.s.-inflation-data-looms
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nan
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September S&P 500 futures (ESU23) are down -0.02%, and September Nasdaq 100 E-Mini futures (NQU23) are down -0.04% this morning as market participants geared up for a key U.S. consumer inflation report that is anticipated to provide further insights into the Federal Reserve’s next steps.
In Tuesday’s trading session, Wall Street’s major averages closed lower. Oracle Corporation (ORCL) tumbled over -13% and was the top percentage loser on the benchmark S&P 500 after the IT services giant’s first-quarter report showed a slowdown in cloud revenue, while its quarterly sales fell short of expectations. Also, Advance Auto Parts Inc (AAP) slid more than -8% after S&P Global Ratings downgraded the auto parts retailer’s credit and debt ratings to “junk” status. In addition, Apple Inc (AAPL) fell over -1% after the tech giant unveiled the new iPhone 15 product line and the next generation of Apple Watch. On the bullish side, WestRock Co (WRK) climbed more than +2% after agreeing to merge with Europe’s Smurfit Kappa to form a $20 billion packaging giant. Energy stocks also gained ground as the price of WTI crude rose over +1% to a nearly 10-month high.
“People are a little bit worried about energy prices picking up pretty aggressively in recent weeks, and that creates some concerns as we look forward to November when some investors worry Federal Reserve policymakers may raise rates again,” said Thomas Hayes, chairman at Great Hill Capital LLC.
Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at September’s monetary policy meeting and a 38.2% probability of a 25 basis point rate hike at the November meeting.
Today, all eyes are focused on the U.S. consumer inflation report in a couple of hours. Economists, on average, forecast that August U.S. CPI will come in at +0.6% m/m and +3.6% y/y, compared to the previous values of +0.2% m/m and +3.2% y/y.
Also, investors will likely focus on U.S. Core CPI data. Economists anticipate Core CPI to be +0.2% m/m and +4.3% y/y in August, compared to the previous figures of +0.2% m/m and +4.7% y/y.
U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be -1.912M, compared to last week’s value of -6.307M.
In the bond markets, United States 10-year rates are at 4.307%, up +0.99%.
The Euro Stoxx 50 futures are down -0.61% this morning as investors digested disappointing U.K. growth numbers while gearing up for a crucial U.S. inflation report due later in the day. Losses in technology stocks are leading the overall market lower. Data from the Office for National Statistics revealed on Wednesday that the U.K.’s economy experienced an unexpectedly sharp contraction in July, with strikes in hospitals and schools, along with unusually rainy weather, exerting downward pressure on output. Meanwhile, market participants increased wagers on European Central Bank policy tightening at its meeting on Thursday following a Reuters report indicating the central bank’s anticipation of inflation remaining above 3% next year. In corporate news, Aviva Plc (AV-.LN) rose over +2% after the British insurer announced its withdrawal from the Singlife joint venture and the sale of its 25.9% stake in Singapore Life Holdings, along with two debt instruments to Sumitomo Life.
U.K.’s GDP, U.K.’s Industrial Production, U.K.’s Manufacturing Production, U.K.’s Monthly GDP 3M/3M Change, and Eurozone’s Industrial Production data were released today.
U.K. July GDP has been reported at -0.5% m/m and 0.0% y/y, weaker than expectations of -0.2% m/m and +0.4% y/y.
U.K. July Industrial Production stood at -0.7% m/m and +0.4% y/y, weaker than expectations of -0.6% m/m and +0.5% y/y.
U.K. July Manufacturing Production came in at -0.8% m/m and +3.0% y/y, stronger than expectations of -1.0% m/m and +2.7% y/y.
U.K. July Monthly GDP 3M/3M Change was at +0.2%, weaker than expectations of +0.3%.
Eurozone July Industrial Production arrived at -1.1% m/m and -2.2% y/y, weaker than expectations of -0.7% m/m and -0.3% y/y.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.45%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.21%.
China’s Shanghai Composite today closed lower as investors awaited further indications of stimulus measures to support the world’s second-largest economy while also bracing for key U.S. inflation data. A BofA Securities survey on Asia fund managers revealed that sentiment regarding China remains lackluster. “Easing expectations abound, but the sustained lack of a concerted action has pushed risk appetite to rock bottom,” the survey said. Meanwhile, information technology, semiconductor, and new energy stocks lost ground Wednesday. On the positive side, Chinese property developers outperformed after beleaguered developer Country Garden Holdings Co Ltd won creditor support to extend repayment on seven yuan bonds. Investor attention for the week is centered on the crucial data releases of Chinese retail sales and industrial production for August, due on Friday.
Japan’s Nikkei 225 Stock Index closed slightly lower today as investors exercised caution while awaiting crucial U.S. inflation data. Data on Wednesday showed that Japan’s annual wholesale inflation decelerated in August for an eighth consecutive month. Separately, a Reuters poll indicated that business confidence in the country’s largest firms decreased in early September, reflecting mounting apprehensions about a slowdown in China, one of Japan’s biggest export markets. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +1.54% to 16.48.
The Japanese August PPI stood at +0.3% m/m and +3.2% y/y, compared to expectations of +0.1% m/m and +3.2% y/y.
Pre-Market U.S. Stock Movers
Workhorse Group Inc (WKHS) surged over +22% in pre-market trading after the company announced that it had received IRS approval as a qualified manufacturer for the Commercial Clean Vehicle Credit under the terms of the Internal Revenue Code.
Rocket Pharmaceuticals Inc (RCKT) soared more than +18% in pre-market trading after announcing that alignment has been reached with the Food and Drug Administration on the global Phase 2 pivotal trial of RP-A501 for Danon Disease.
Ford Motor Company (F) rose over +1% in pre-market trading after UBS initiated coverage of the stock with a Buy rating.
Squarespace Inc (SQSP) slid more than -3% in pre-market trading after the company priced a secondary underwritten public offering of 5 million shares of its Class A common stock.
Eiger Biopharmaceuticals Inc (EIGR) plunged over -34% in pre-market trading after the company said it would stop its late-stage trial of peginterferon lambda in patients with chronic hepatitis D.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - September 13th
Burford (BUR), Cracker Barrel Old (CBRL), Semtech (SMTC), Rev Group (REVG), IBEX (IBEX), Radiant (RLGT), Selectquote (SLQT).
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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In addition, Apple Inc (AAPL) fell over -1% after the tech giant unveiled the new iPhone 15 product line and the next generation of Apple Watch. Oracle Corporation (ORCL) tumbled over -13% and was the top percentage loser on the benchmark S&P 500 after the IT services giant’s first-quarter report showed a slowdown in cloud revenue, while its quarterly sales fell short of expectations. Data from the Office for National Statistics revealed on Wednesday that the U.K.’s economy experienced an unexpectedly sharp contraction in July, with strikes in hospitals and schools, along with unusually rainy weather, exerting downward pressure on output.
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In addition, Apple Inc (AAPL) fell over -1% after the tech giant unveiled the new iPhone 15 product line and the next generation of Apple Watch. Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at September’s monetary policy meeting and a 38.2% probability of a 25 basis point rate hike at the November meeting. U.K.’s GDP, U.K.’s Industrial Production, U.K.’s Manufacturing Production, U.K.’s Monthly GDP 3M/3M Change, and Eurozone’s Industrial Production data were released today.
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In addition, Apple Inc (AAPL) fell over -1% after the tech giant unveiled the new iPhone 15 product line and the next generation of Apple Watch. U.K.’s GDP, U.K.’s Industrial Production, U.K.’s Manufacturing Production, U.K.’s Monthly GDP 3M/3M Change, and Eurozone’s Industrial Production data were released today. Japan’s Nikkei 225 Stock Index closed slightly lower today as investors exercised caution while awaiting crucial U.S. inflation data.
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In addition, Apple Inc (AAPL) fell over -1% after the tech giant unveiled the new iPhone 15 product line and the next generation of Apple Watch. Japan’s Nikkei 225 Stock Index closed slightly lower today as investors exercised caution while awaiting crucial U.S. inflation data. Pre-Market U.S. Stock Movers Workhorse Group Inc (WKHS) surged over +22% in pre-market trading after the company announced that it had received IRS approval as a qualified manufacturer for the Commercial Clean Vehicle Credit under the terms of the Internal Revenue Code.
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13697.0
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2023-09-13 00:00:00 UTC
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China says it has not banned purchase, use of foreign phone brands
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AAPL
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https://www.nasdaq.com/articles/china-says-it-has-not-banned-purchase-use-of-foreign-phone-brands
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nan
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nan
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Adds more remarks from Chinese foreign ministry, background
BEIJING, Sept 13 (Reuters) - China has not issued a ban on the purchase and use of foreign phone brands, the Chinese foreign ministry said on Wednesday, in response to media reports that said some government agencies and firms had told staff to stop using Apple's iPhones at work.
"China has not issued laws, regulations or policy documents that prohibit the purchase and use of foreign brand phones such as Apple's," foreign ministry spokesperson Mao Ning told a regular press briefing when asked about the reports.
"But recently we did notice a lot of media exposure of security incidents related to Apple's phones. The Chinese government attaches great importance to information and cyber security and treats both domestic and foreign companies as equals," she added.
Reuters recently reported that China had widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work.
The supposed ban coincides with rising tensions between Beijing and Washington, and signals growing challenges for Apple, which relies heavily on China for revenue growth and manufacturing.
Mao said China hoped all mobile phone companies would strictly abide its laws and regulations, as well as "strengthen information security management".
China has increasingly emphasized using locally-made tech products, as technology has become a major national security issue for Beijing and Washington.
(Reporting by Ethan Wang and Bernard Orr; Editing by Christian Schmollinger and Miral Fahmy)
((bernard.orr@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Reuters recently reported that China had widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work. The supposed ban coincides with rising tensions between Beijing and Washington, and signals growing challenges for Apple, which relies heavily on China for revenue growth and manufacturing. Mao said China hoped all mobile phone companies would strictly abide its laws and regulations, as well as "strengthen information security management".
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Reuters recently reported that China had widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work. Adds more remarks from Chinese foreign ministry, background BEIJING, Sept 13 (Reuters) - China has not issued a ban on the purchase and use of foreign phone brands, the Chinese foreign ministry said on Wednesday, in response to media reports that said some government agencies and firms had told staff to stop using Apple's iPhones at work. "China has not issued laws, regulations or policy documents that prohibit the purchase and use of foreign brand phones such as Apple's," foreign ministry spokesperson Mao Ning told a regular press briefing when asked about the reports.
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Reuters recently reported that China had widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work. Adds more remarks from Chinese foreign ministry, background BEIJING, Sept 13 (Reuters) - China has not issued a ban on the purchase and use of foreign phone brands, the Chinese foreign ministry said on Wednesday, in response to media reports that said some government agencies and firms had told staff to stop using Apple's iPhones at work. "China has not issued laws, regulations or policy documents that prohibit the purchase and use of foreign brand phones such as Apple's," foreign ministry spokesperson Mao Ning told a regular press briefing when asked about the reports.
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Reuters recently reported that China had widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work. Adds more remarks from Chinese foreign ministry, background BEIJING, Sept 13 (Reuters) - China has not issued a ban on the purchase and use of foreign phone brands, the Chinese foreign ministry said on Wednesday, in response to media reports that said some government agencies and firms had told staff to stop using Apple's iPhones at work. "But recently we did notice a lot of media exposure of security incidents related to Apple's phones.
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13698.0
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2023-09-13 00:00:00 UTC
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Apple disputes French findings, says iPhone 12 meets radiation rules
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AAPL
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https://www.nasdaq.com/articles/apple-disputes-french-findings-says-iphone-12-meets-radiation-rules
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nan
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nan
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By Mathieu Rosemain and Silvia Aloisi
PARIS, Sept 13 (Reuters) - Apple said on Wednesday its iPhone 12 model was certified by multiple international bodies as compliant with global radiation standards after a French watchdog ordered it to stop selling the handset on the grounds it breaches European exposure limits.
The ANFR radiation watchdog told Apple AAPL.Oon Tuesday to halt sales of iPhone 12s in France after tests which it said showed the phone's Specific Absorption Rate (SAR)- a measure of the rate of radiofrequency energy absorbed by the body from a piece of equipment - was higher than legally allowed.
The Agence Nationale des Fréquences, or ANFR, said it would send agents to Apple stores and other distributors to check the model was no longer being sold.
The agency, which manages France's radio frequencies and periodically tests phones to check human exposure to electromagnetic waves, said it expected Apple "to deploy all available means to put an end to the non-compliance."
A failure to act would result in the recall of iPhone 12s already sold to consumers, it added.
Apple said it had provided ANFR with multiple Apple and independent third-party lab results proving its compliance with all applicable SAR regulations and standards in the world.
It said it was contesting the results of AFNR's review and would continue to engage with the agency to show it is compliant.
The AFNR said accredited labs had found absorption of electromagnetic energy by the body at 5.74 watts per kilogram during tests simulating when the phone was being held in the hand or kept in a trouser pocket. The European standard is a specific absorption rate of 4.0 watts per kilogram.
ANFR added the tests showed the phone complied with so-called body-SAR standards when it was in a jacket pocket or bag.
France's junior minister for the digital economy, Jean-Noel Barrot, said a software update would be sufficient to fix the radiation issues linked to the phone which the U.S. company has been selling since 2020.
"Apple is expected to respond within two weeks", he told daily Le Parisien in an interview late on Tuesday, adding: "If they fail to do so, I am prepared to order a recall of all iPhones 12 in circulation. The rule is the same for everyone, including the digital giants."
Apple doesn't break out its sales by country or model. Its revenues totalled about $95 billion in Europe last year, making the region its second biggest behind the Americas. Some estimates say it sold over 50 million iPhones last year in Europe. The company launched the iPhone 15 on Tuesday.
The ANFR said it had recently tested 141 mobile phone models, including the iPhone 12."If Apple chooses to update its telephones, it shall be verified by the ANFR," the agency said.
The European Union has set safety limits for SAR values linked to exposure to mobile phones, which could increase the risk of some forms of cancer, according to scientific studies.
The French watchdog will now pass on its findings to regulators in other EU member states. "In practical terms, this decision could have a snowball effect", said Barrot.
In 2020, France widened regulations requiring retailers to display the radiation value of products on packaging beyond cell phones, including tablets and other electronic devices.
(Reporting by Mathieu Rosemain and Tassilo Hummel Writing by Silvia Aloisi Editing by Mark Potter)
((silvia.aloisi@thomsonreuters.com; +393487607044; Reuters Messaging: silvia.aloisi.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The ANFR radiation watchdog told Apple AAPL.Oon Tuesday to halt sales of iPhone 12s in France after tests which it said showed the phone's Specific Absorption Rate (SAR)- a measure of the rate of radiofrequency energy absorbed by the body from a piece of equipment - was higher than legally allowed. By Mathieu Rosemain and Silvia Aloisi PARIS, Sept 13 (Reuters) - Apple said on Wednesday its iPhone 12 model was certified by multiple international bodies as compliant with global radiation standards after a French watchdog ordered it to stop selling the handset on the grounds it breaches European exposure limits. The agency, which manages France's radio frequencies and periodically tests phones to check human exposure to electromagnetic waves, said it expected Apple "to deploy all available means to put an end to the non-compliance."
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The ANFR radiation watchdog told Apple AAPL.Oon Tuesday to halt sales of iPhone 12s in France after tests which it said showed the phone's Specific Absorption Rate (SAR)- a measure of the rate of radiofrequency energy absorbed by the body from a piece of equipment - was higher than legally allowed. By Mathieu Rosemain and Silvia Aloisi PARIS, Sept 13 (Reuters) - Apple said on Wednesday its iPhone 12 model was certified by multiple international bodies as compliant with global radiation standards after a French watchdog ordered it to stop selling the handset on the grounds it breaches European exposure limits. The ANFR said it had recently tested 141 mobile phone models, including the iPhone 12.
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The ANFR radiation watchdog told Apple AAPL.Oon Tuesday to halt sales of iPhone 12s in France after tests which it said showed the phone's Specific Absorption Rate (SAR)- a measure of the rate of radiofrequency energy absorbed by the body from a piece of equipment - was higher than legally allowed. By Mathieu Rosemain and Silvia Aloisi PARIS, Sept 13 (Reuters) - Apple said on Wednesday its iPhone 12 model was certified by multiple international bodies as compliant with global radiation standards after a French watchdog ordered it to stop selling the handset on the grounds it breaches European exposure limits. Apple said it had provided ANFR with multiple Apple and independent third-party lab results proving its compliance with all applicable SAR regulations and standards in the world.
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The ANFR radiation watchdog told Apple AAPL.Oon Tuesday to halt sales of iPhone 12s in France after tests which it said showed the phone's Specific Absorption Rate (SAR)- a measure of the rate of radiofrequency energy absorbed by the body from a piece of equipment - was higher than legally allowed. By Mathieu Rosemain and Silvia Aloisi PARIS, Sept 13 (Reuters) - Apple said on Wednesday its iPhone 12 model was certified by multiple international bodies as compliant with global radiation standards after a French watchdog ordered it to stop selling the handset on the grounds it breaches European exposure limits. The Agence Nationale des Fréquences, or ANFR, said it would send agents to Apple stores and other distributors to check the model was no longer being sold.
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13699.0
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2023-09-13 00:00:00 UTC
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ANALYSIS -Investors call 'peak pessimism' for beaten-up UK stocks
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AAPL
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https://www.nasdaq.com/articles/analysis-investors-call-peak-pessimism-for-beaten-up-uk-stocks-0
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nan
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nan
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By Naomi Rovnick
LONDON, Sept 13 (Reuters) - Long-term gloom about Britain's economy appears to be lifting and some big investors reckon the end of extreme pessimism is near, with gains ahead for UK-focused businesses and the more international but long-shunned FTSE 100. After years of outflows and big companies such as materials group CRH moving stock listings overseas, the UK's FTSE All Share index .FTAS is valued at around 2.28 trillion pounds ($2.84 trillion). That's roughly the same as a single U.S. stock, Apple AAPL.O, while British companies are trading at around a record discount to global equities.
High government debt, crumbling infrastructure, political turmoil and 14 rate hikes since late 2021 have hurt sentiment.
UK growth data has been bumpy, with wet weather and strike action causing the economy to contract by 0.5% in July following a larger-than-expected bounce in June.
UK-based investors said they are increasing holdings of domestic businesses and taking advantage of low valuations for the FTSE-100.
"It feels like we've passed the peak of pessimism about the UK," said Daniel Lockyer, senior fund manager at 7 billion-pound investment and advice group Hawksmoor Investment Management, which increased its exposure to UK companies in August.
"We don't necessarily need to see a huge bout of positive news, but the trend of negativity is slowing and the key to making money in any market is to get in at the bottom and capture the start of a turnaround."
UNDERPERFORMER
A cumulative 76 billion pounds has flowed out of UK equity funds since 2016, data provider Morningstar said, with the bulk of outflows in the last three years. Global equity funds tracked by Morningstar have had 507 billion pounds of net inflows since 2016.
UK pension funds, enticed by better returns overseas, have cut allocations to UK equities to 6% from 53% 25 years ago, according to think tank New Financial.
Still, there are bright spots.
While the domestically focused FTSE 250 share index .FTMC has dropped for four out of the last six months, the FTSE 350 sub-index of leisure stocks has gained 18% year-to-date..FTNMX405010. A UK retail stocks index .FTUB4040 is up 23%.
Consumer stocks are outperforming as investors bet on the UK cost of living crisis becoming less intense.
"The outturn for the UK economy will be and is better than the markets expected," said Invesco's head of UK equities Martin Walker, adding that his portfolio was now modestly overweight UK consumer staples for the first time in many years.
The FTSE 100, trading on a price-earnings ratio of 10.5 times compared to 12.5 times for the wider Stoxx Europe 600 .STOXX, presented "a real opportunity because you are buying (its companies) at a discount," Walker said.
Economists polled by Reuters expect the UK to eke out 0.3% growth this year, trailing the euro zone but a big contrast to late 2022, when many forecast recession.
The Bank of England is expected to hike rates again this month, exacerbating stress for homeowners due to the refinancing of fixed-term mortgages at higher costs.
WAGES
But after UK households endured the biggest inflation shock for four decades and a cost-of-living crisis, wages are now growing faster than prices. Energy bills are expected to drop to a two-year lownext month.
Pay rises, said Pantheon Macroeconomics Chief UK Economist Samuel Tombs, mean British households can "maintain their current level of real expenditure under any plausible scenario for official interest rates."
Leigh Himsworth, UK fund manager at Fidelity International, said he was "trying to pick off UK retailers we can buy", while it was also "time to pick up some of the (UK) real estate sector."
Discount chain Wilko has collapsed under the pressure of the cost-of-living crisis but stronger businesses are seeing improvements. Marks & Spencer MKS.L, a bellwether of UK discretionary spending, has lifted its annual profit forecast.
Neil Birrell, chief investment officer at fund manager Premier Miton, said he has raised the proportion of UK stocks in his multi-asset portfolios to the highest since 2019, with a bias towards consumer businesses.
But while noting good economic reasons to call an upturn for UK stocks, fund managers also stressed the need for further steps from policymakers to revive interest in British equities.
Premier Miton is lobbying policymakers to introduce a new tax-efficient investment vehicle for UK stocks. Himsworth, at Fidelity, suggested a new national savings product that could provide capital to British businesses.
Savvas Savouri, London-based partner and chief economist at 4.5 billion pound hedge fund Toscafund, said quality UK companies do not have a strong enough domestic investor base.
"UK equities have been an abject failure," he said. "We have de-equitisation because we don't value our companies."
($1 = 0.7990 pounds)
UK stocks at record discount https://tmsnrt.rs/3EB0VRh
UK wage growth is now outpacing inflation UK wage growth is now outpacing inflation https://tmsnrt.rs/3ZdYcqr
UK consumer stocks predict economic gloom will lift https://tmsnrt.rs/483rlIO
(Reporting by Naomi Rovnick; editing by Dhara Ranasinghe and Sharon Singleton)
((Naomi.Rovnick@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's roughly the same as a single U.S. stock, Apple AAPL.O, while British companies are trading at around a record discount to global equities. By Naomi Rovnick LONDON, Sept 13 (Reuters) - Long-term gloom about Britain's economy appears to be lifting and some big investors reckon the end of extreme pessimism is near, with gains ahead for UK-focused businesses and the more international but long-shunned FTSE 100. Pay rises, said Pantheon Macroeconomics Chief UK Economist Samuel Tombs, mean British households can "maintain their current level of real expenditure under any plausible scenario for official interest rates."
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That's roughly the same as a single U.S. stock, Apple AAPL.O, while British companies are trading at around a record discount to global equities. After years of outflows and big companies such as materials group CRH moving stock listings overseas, the UK's FTSE All Share index .FTAS is valued at around 2.28 trillion pounds ($2.84 trillion). A cumulative 76 billion pounds has flowed out of UK equity funds since 2016, data provider Morningstar said, with the bulk of outflows in the last three years.
|
That's roughly the same as a single U.S. stock, Apple AAPL.O, while British companies are trading at around a record discount to global equities. "The outturn for the UK economy will be and is better than the markets expected," said Invesco's head of UK equities Martin Walker, adding that his portfolio was now modestly overweight UK consumer staples for the first time in many years. Leigh Himsworth, UK fund manager at Fidelity International, said he was "trying to pick off UK retailers we can buy", while it was also "time to pick up some of the (UK) real estate sector."
|
That's roughly the same as a single U.S. stock, Apple AAPL.O, while British companies are trading at around a record discount to global equities. A cumulative 76 billion pounds has flowed out of UK equity funds since 2016, data provider Morningstar said, with the bulk of outflows in the last three years. While the domestically focused FTSE 250 share index .FTMC has dropped for four out of the last six months, the FTSE 350 sub-index of leisure stocks has gained 18% year-to-date..FTNMX405010.
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