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14100.0
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2023-08-28 00:00:00 UTC
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1 Catalyst for Apple Stock Investors
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AAPL
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https://www.nasdaq.com/articles/1-catalyst-for-apple-stock-investors
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nan
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nan
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Fool.com contributor Parkev Tatevosian details why Apple's (NASDAQ: AAPL) customer loyalty brings higher profit margins in the long term.
*Stock prices used were the afternoon prices of Aug. 24, 2023. The video was published on Aug. 26, 2023.
10 stocks we like better than Apple
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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.
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*Stock Advisor returns as of August 21, 2023
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian details why Apple's (NASDAQ: AAPL) customer loyalty brings higher profit margins in the long term. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Fool.com contributor Parkev Tatevosian details why Apple's (NASDAQ: AAPL) customer loyalty brings higher profit margins in the long term. 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 August 21, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian details why Apple's (NASDAQ: AAPL) customer loyalty brings higher profit margins in 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.
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Fool.com contributor Parkev Tatevosian details why Apple's (NASDAQ: AAPL) customer loyalty brings higher profit margins in the long term. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 21, 2023 Parkev Tatevosian, CFA has positions in Apple.
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14101.0
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2023-08-28 00:00:00 UTC
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Is Schwab Fundamental U.S. Large Company Index ETF (FNDX) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-schwab-fundamental-u.s.-large-company-index-etf-fndx-a-strong-etf-right-now-8
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nan
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nan
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The Schwab Fundamental U.S. Large Company Index ETF (FNDX) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
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 sponsored by Charles Schwab. It has amassed assets over $11.61 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the Russell RAFI US Large Co. Index.
The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.25%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.95%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 18.40% of the portfolio. Financials and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.77% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB).
FNDX's top 10 holdings account for about 20.85% of its total assets under management.
Performance and Risk
The ETF has added roughly 8.15% so far this year and it's up approximately 4.35% in the last one year (as of 08/28/2023). In the past 52-week period, it has traded between $47.76 and $59.78.
The fund has a beta of 1.01 and standard deviation of 17.15% for the trailing three-year period, which makes FNDX a medium risk choice in this particular space. With about 733 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $49.88 billion in assets, Vanguard Value ETF has $100.20 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
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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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.77% of the fund's 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 $11.61 billion, making it one of the larger ETFs in the Style Box - Large Cap Value.
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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. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.77% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Alternatives Schwab Fundamental U.S. Large Company Index ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market.
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Click to get this free report 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. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.77% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). The Schwab Fundamental U.S. Large Company Index ETF (FNDX) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.77% of the fund's 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. The Schwab Fundamental U.S. Large Company Index ETF (FNDX) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
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14102.0
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2023-08-27 00:00:00 UTC
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These 2 Nasdaq Stocks Could Carry Your Portfolio for Years
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AAPL
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https://www.nasdaq.com/articles/these-2-nasdaq-stocks-could-carry-your-portfolio-for-years-7
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nan
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nan
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Are you looking for growth prospects that you can simply set and forget for a few years? You're in luck. Although the usual portfolio-building rules (like not owning too much of one single stock) will always apply, these kinds of stocks are out there. And the case for holding oversized positions in them holds water.
There are two such Nasdaq-listed stocks to consider right now. Together they have the potential to lead your portfolio for years to come.
Apple
Apple (NASDAQ: AAPL) is such an obvious pick that suggesting it has become a cliché.
Yet there's a reason this company has become the world's biggest (and often most profitable) since introducing the iPhone in 2007. The world loves this smartphone, and Apple has built an enormous business around it.
Although its overall sales are slowing now that the smartphone market is nearing saturation, the company is driving even more revenue on the back end. Led by the iPhone itself, there are now over 1 billion paid subscriptions among iOS users; the services segment's revenue driven by these customers reached another record level of more than $21.2 billion last quarter.
The crux of the current bullish argument for Apple, however, isn't its iPhone revenue. It's the sustainable profits driven by the shift from being products-focused to services-focused. Although the services segment accounts for only about one-fifth of sales, it produces one-third of the company's total gross profits.
This is long-lived revenue, too. It's largely based on subscriptions, which means these consumers are knowingly establishing a relationship that requires regular withdrawals from a bank account or ongoing charges to a credit card.
And Apple is very good at inducing iPhone owners to spend money through apps. Although data from GlobalStats indicates there are more than twice as many Android smartphone users in the world as there are iPhone users, Sensor Tower reports iPhone owners collectively spend about twice as much money on mobile apps and games as Android owners do.
Similarly, the app industry market-research site Business of Apps reports that of the $17.1 billion that smartphone owners spent on recurring subscriptions last year, Apple's iOS produced 77% of it. And the company is still fine-tuning its ability to drive subscriptions among iOS users.
As long as the world continues its love affair with smartphones -- and the constant connection to the web they offer -- Apple will continue producing lots of profit. And its nascent efforts to employ artificial intelligence (AI) is likely to drive growth, too.
Nvidia
Speaking of AI, although there are several ways to plug into the still-budding megatrend, Nvidia (NASDAQ: NVDA) arguably remains the top way to do so.
Its roots are in computer graphics. The company's graphics processing units (GPUs) are particularly popular among video gamers and professionals who need heavy-duty computer visualization and illustration tools. These markets are still a core piece of its business; Jon Peddie Research suggests Nvidia's GPUs make up roughly three-fourths of the stand-alone graphics card market.
Its biggest business, however, is no longer gaming; it's now AI systems. As it turns out, the same tech that makes for great graphical-display computing power also works very well for AI computing. Artificial intelligence alone, categorized as part of data center sales in its quarterly reports, now makes up more than half of the company's top line.
More such growth is ahead. Precedence Research believes the AI hardware market will grow at an annual pace of nearly 27% through 2030 as more enterprises figure out ways to use artificial intelligence tools.
Nvidia's hardware already powers more than four-fifths of the world's AI platforms, according to Mizuho Securities. Vijay Rakesh, an analyst at Mizuho, expects the company to continue dominating AI hardware, estimating it will still control 75% of this piece of the AI market by 2027.
Rakesh's math implies a tenfold increase to this year's expected AI-driven data center revenue from Nvidia.
There will come a time when artificial intelligence isn't the kind of growth driver it is today. That time seems to be years down the road, though. Nvidia stock can log gains the whole time the world is moving toward that AI peak.
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 August 21, 2023
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is such an obvious pick that suggesting it has become a cliché. It's largely based on subscriptions, which means these consumers are knowingly establishing a relationship that requires regular withdrawals from a bank account or ongoing charges to a credit card. Artificial intelligence alone, categorized as part of data center sales in its quarterly reports, now makes up more than half of the company's top line.
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Apple Apple (NASDAQ: AAPL) is such an obvious pick that suggesting it has become a cliché. Led by the iPhone itself, there are now over 1 billion paid subscriptions among iOS users; the services segment's revenue driven by these customers reached another record level of more than $21.2 billion last quarter. Although data from GlobalStats indicates there are more than twice as many Android smartphone users in the world as there are iPhone users, Sensor Tower reports iPhone owners collectively spend about twice as much money on mobile apps and games as Android owners do.
|
Apple Apple (NASDAQ: AAPL) is such an obvious pick that suggesting it has become a cliché. Although data from GlobalStats indicates there are more than twice as many Android smartphone users in the world as there are iPhone users, Sensor Tower reports iPhone owners collectively spend about twice as much money on mobile apps and games as Android owners do. Similarly, the app industry market-research site Business of Apps reports that of the $17.1 billion that smartphone owners spent on recurring subscriptions last year, Apple's iOS produced 77% of it.
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Apple Apple (NASDAQ: AAPL) is such an obvious pick that suggesting it has become a cliché. Yet there's a reason this company has become the world's biggest (and often most profitable) since introducing the iPhone in 2007. There will come a time when artificial intelligence isn't the kind of growth driver it is today.
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14103.0
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2023-08-27 00:00:00 UTC
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Better Growth Stock: Apple vs. AMD
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AAPL
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https://www.nasdaq.com/articles/better-growth-stock%3A-apple-vs.-amd
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nan
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nan
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It's generally best to approach the stock market with a long-term perspective, as holding over many years can shield your investment from temporary headwinds. Growth stocks are an excellent place to start, and the tech industry is filled with attractive options.
Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are worth considering, with one dominating consumer tech and the other a leading chipmaker. Both companies have enjoyed triple-digit stock growth over the last five years but are down since the start of August after less-than-ideal earnings results. However, their long-term outlooks remain strong thanks to their participation in multiple high-growth industries.
As a result, now could be an excellent time to buy the dip on one of these tech giants. So, let's assess whether Apple or AMD is the better growth stock.
Apple
Apple shares are down 9% since Aug. 1 after posting its third-quarter 2023 results, representing the third consecutive quarter of revenue declines. The company's revenue fell 1% year over year, driven by slides in three of its product segments as macroeconomic headwinds continued to curb consumer spending.
However, market challenges won't last forever, and Apple's dominance in tech will likely provide substantial gains over the long term. The bright spot of Apple's Q3 2023 was services, which enjoyed an 8% rise in revenue. The digital business is made up of earnings from the company's subscription-based platforms, such as Apple TV+ and Music, as well as income from the App Store. The success of these services has made the segment Apple's second-highest-earning division after the iPhone, enjoying significant growth in recent years.
Moreover, Apple is making promising moves in artificial intelligence (AI) and virtual/augmented reality. Both industries are projected to expand at compound annual growth rates of over 30% through 2030. Meanwhile, Apple's immense brand loyalty with consumers could see it grow into leading positions in these markets.
Apple's annual revenue has risen 48% since 2018, with operating income up 68%. The company has a history of solid growth, with the stature in tech to continue on its current trajectory.
Advanced Micro Devices
Like Apple, AMD shares are down since the start of the month, tumbling 13%. The company's second-quarter 2023 earnings posted on Aug. 2 revealed an 18% year-over-year decline in revenue. The tumble was primarily driven by PC market challenges, which have plagued the company for the last year. Meanwhile, comparisons to chipmaker Nvidia's glowing quarterly results have only pushed AMD's stock down further.
AMD has heavily invested in AI this year, striving to develop hardware that will match Nvidia's and take its slice of the lucrative industry. However, the company has yet to see much return from its investment as its recently unveiled MI300X AI chip won't be in production until at least the fourth quarter of 2023. As a result, investors might need to wait until next year to benefit from AMD's efforts.
Despite recent hurdles, AMD's annual revenue has climbed 265% since 2019, with operating income up 180%. In that time, the company has become a leader in central processing units (CPUs) and semi-custom chips, supplying hardware across the tech market. AMD's chips can be found powering countless devices, from Sony's PlayStation 5 to an increasing number of PCs, laptops, and handheld gaming machines.
The company's venture into AI strengthens its potential over the long term, making its stock a compelling option.
Is Apple or AMD the better growth stock?
While AMD has solid prospects in multiple areas of tech, Apple's proven dominance in its respective markets makes it a more reliable buy. AMD is active in a highly competitive industry, going up against Nvidia, Intel, and Amazon as it strives to attract companies to its AI chips. Meanwhile, consumers have proven their preference for Apple's products over the years.
In fact, a study from Counterpoint Research recently revealed that smartphone shipments fell 24% year over year in Q2 2023. The declines led Samsung to experience a 37% decline in sales. However, Apple's more moderate tumble of 6% allowed it to grow its market share from 52% to 55%.
Apple will face competition in AI. However, its efforts could flourish as it focuses on the consumer sector while many others are competing in the cloud market. Additionally, Apple could have the upper hand as it utilizes homegrown chips, allowing it to tailor its hardware directly to its software. So, if the choice is between AMD or Apple, the iPhone company is the safer and better growth stock 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 August 21, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are worth considering, with one dominating consumer tech and the other a leading chipmaker. AMD has heavily invested in AI this year, striving to develop hardware that will match Nvidia's and take its slice of the lucrative industry. AMD's chips can be found powering countless devices, from Sony's PlayStation 5 to an increasing number of PCs, laptops, and handheld gaming machines.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are worth considering, with one dominating consumer tech and the other a leading chipmaker. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are worth considering, with one dominating consumer tech and the other a leading chipmaker. So, let's assess whether Apple or AMD is the better growth stock. Is Apple or AMD the better growth stock?
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are worth considering, with one dominating consumer tech and the other a leading chipmaker. Both companies have enjoyed triple-digit stock growth over the last five years but are down since the start of August after less-than-ideal earnings results. Is Apple or AMD the better growth stock?
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14104.0
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2023-08-27 00:00:00 UTC
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Trust the Oracle: 3 Warren Buffett Stocks to Buy for Long-Term Gains
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AAPL
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https://www.nasdaq.com/articles/trust-the-oracle%3A-3-warren-buffett-stocks-to-buy-for-long-term-gains
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Warren Buffett is undoubtedly one of the greatest investors of all time.
The Berkshire Hathaway (NYSE:BRK-B) CEO has one of the best long-term investing track records and seen as a guru among many in the investing community.
This stellar track record means many investors follow Buffett’s buying activity closely. As a steadfast buy-and-hold advocate, his recent moves raise interest. Though he’s trimmed holdings in sectors facing challenges, his remaining holdings reveal where the Oracle of Omaha wants to be positioned right now.
Certainly, independent research is essential. Relying on a single individual or source is unwise. Still, Buffett’s extensive experience counts. As far as his current portfolio holdings are concerned, here are three stocks I think are worth consideration as long-term picks, particularly if any material declines are seen moving forward.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) stock is a staple in many hedge funds due to its strong, consistent growth, high margins, and loyal customer base. Its closed-loop ecosystem further solidifies its position as a safe, long-term investment.
Predicting Apple’s stock direction is challenging, yet investors have historically benefited, unlike short sellers. After earnings, AAPL’s decline results from overly high expectations. Despite claims, Apple’s iPhone sales only dropped 2.4%, considering inflation. Additionally, its $81.8 billion revenue was down just 1% and matched Wall Street’s estimate.
In Q3 2023, Apple’s revenue dipped by 1.4%, and MacBook sales fell by 7%. However, services revenue surged by 8% to $21.2 billion sequentially. That’s the most important factor that concerns most long-term investors, as Apple continues to transition from a mainly hardware maker to a services company.
Given the company continues to move in the right direction (with a solid balance sheet), Apple remains a top defensive option in the world of mega-cap tech worth buying now.
Occidental Petroleum (OXY)
Source: T. Schneider / Shutterstock.com
Buffett continues to increase his investment in Occidental Petroleum (NYSE:OXY), owning almost 25% of the company’s stock, valued at around $12 billion. His optimism in Occidental’s future, including its transition to sustainable energy, warrants attention. This move could also yield short-term gains due to volatile oil markets affected by production disputes among major countries.
It’s important to highlight that Occidental is among the energy players showing strong growth and profitability. Its diversification also shouldn’t be overlooked, with divisions like OxyChem contributing in a big way to the company’s record earnings before interest and tax (EBIT) of $2.5 billion in 2022. If these diversified operational segments can continue to outperform, Occidental may become a different discussion among many investors.
Buffett expresses optimism about Occidental’s future, praising its leadership’s strategic vision earlier this year. He reassures investors of the company’s potential and competent management during a May shareholder meeting. With OXY stock trading around the $61 level, and at a price-earnings ratio of around 10-times, this is a stock worth loading up on right now, in my view.
Bank of America (BAC)
Source: PL Gould / Shutterstock.com
Amid uncertainties in the banking sector, Buffett has scaled back on bank stocks like Bank of New York Mellon (NYSE:BK) and U.S. Bancorp (NYSE:USB), but he maintained his holdings in Bank of America (NYSE:BAC).
Despite caution, he endorsed Bank of America at a shareholder meeting, highlighting his confidence in its management. His stake is valued at over $32 billion, around 13% of the company, reflecting his trust in the bank’s strength and market position.
The company’s Q2 results showcased robust operations and a strong balance sheet. Bank of America gained $7.4 billion post-tax, representing 21% year-over-year earnings per share growth. Earnings excelled across segments, with the company’s consumer segment seeing its 18th positive new account quarter, adding 157,000 customers. Impressively, the lender’s Global Wealth division added 12,000 new relationships.
Bank of America exceeded expectations in both earnings per share and revenue, driven by rising interest rates on loans. Despite slowing loan growth, its resilience and long-term potential are notable.
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 Trust the Oracle: 3 Warren Buffett Stocks to Buy for 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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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock is a staple in many hedge funds due to its strong, consistent growth, high margins, and loyal customer base. After earnings, AAPL’s decline results from overly high expectations. On the date of publication, Chris MacDonald has a LONG position in AAPL.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock is a staple in many hedge funds due to its strong, consistent growth, high margins, and loyal customer base. After earnings, AAPL’s decline results from overly high expectations. On the date of publication, Chris MacDonald has a LONG position in AAPL.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock is a staple in many hedge funds due to its strong, consistent growth, high margins, and loyal customer base. After earnings, AAPL’s decline results from overly high expectations. On the date of publication, Chris MacDonald has a LONG position in AAPL.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock is a staple in many hedge funds due to its strong, consistent growth, high margins, and loyal customer base. After earnings, AAPL’s decline results from overly high expectations. On the date of publication, Chris MacDonald has a LONG position in AAPL.
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14105.0
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2023-08-27 00:00:00 UTC
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Foxconn founder Terry Gou announces run for Taiwan presidency
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AAPL
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https://www.nasdaq.com/articles/foxconn-founder-terry-gou-announces-run-for-taiwan-presidency-0
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Adds quote, detail
TAIPEI, Aug 28 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, said on Monday he was entering the race to be Taiwan's next president as an independent candidate in 2024 elections.
Gou stepped down as Foxconn chief in 2019 and made a presidential bid that year, but dropped out after he failed to win the nomination for Taiwan's main opposition party, the Kuomintang KMT, which traditionally favours close ties with China.
He made a second bid to be the KMT's candidate for the presidential election to be held in January earlier this year, but the party chose instead Hou Yu-ih, the mayor of New Taipei City.
Gou has spent the past few weeks touring Taiwan and holding campaign-like rallies, fuelling speculation he was planning to run as an independent.
"Under the rule of the Democratic Progressive Party in the past seven years or so, internationally, they lead Taiwan towards the danger of war. Domestically, their policies are filled with mistakes," Gou said, adding "the era of entrepreneur's rule" has begun.
"Give me four years and I promise that I will bring 50 years of peace to the Taiwan Strait and build the deepest foundation for the mutual trust across the strait," he said in a plea to Taiwan voters.
"Taiwan must not become Ukraine and I will not let Taiwan become the next Ukraine."
Gou must gather close to 300,000 voter signatures by November 2 to be qualified as an independent candidate, according elections regulations. The Central Election Commission will review the signatures and announce the results by November 14.
Taiwan Vice President William Lai, the presidential candidate for the ruling Democratic Progressive Party (DPP), is the favourite to win the election as he leads the polls.
Former Taipei mayor Ko Wen-je of the small Taiwan People's Party has generally keen running second in the polls, with Hou a distant third.
Gou's main theme in his pseudo-campaign events has been that the only way to avoid war with China, which claims Taiwan as its own territory, is to get the DPP out of office.
China has a particular dislike of Lai for comments he has previously made about being a "worker" for Taiwan independence, a red line for Beijing.
The DPP champions Taiwan's separate identity from China, but the government it leads has repeatedly offered talks with China that have been rebuffed.
The run up to the election is taking place at a time of increased tensions between Taipei and Beijing, as China stages regular military exercises near the island to assert its sovereignty claims.
(Reporting by Ben Blanchard; Additional reporting by Yimou Lee; Editing by Michael Perry)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds quote, detail TAIPEI, Aug 28 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, said on Monday he was entering the race to be Taiwan's next president as an independent candidate in 2024 elections. Gou stepped down as Foxconn chief in 2019 and made a presidential bid that year, but dropped out after he failed to win the nomination for Taiwan's main opposition party, the Kuomintang KMT, which traditionally favours close ties with China. The run up to the election is taking place at a time of increased tensions between Taipei and Beijing, as China stages regular military exercises near the island to assert its sovereignty claims.
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Adds quote, detail TAIPEI, Aug 28 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, said on Monday he was entering the race to be Taiwan's next president as an independent candidate in 2024 elections. "Under the rule of the Democratic Progressive Party in the past seven years or so, internationally, they lead Taiwan towards the danger of war. Taiwan Vice President William Lai, the presidential candidate for the ruling Democratic Progressive Party (DPP), is the favourite to win the election as he leads the polls.
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Adds quote, detail TAIPEI, Aug 28 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, said on Monday he was entering the race to be Taiwan's next president as an independent candidate in 2024 elections. Gou stepped down as Foxconn chief in 2019 and made a presidential bid that year, but dropped out after he failed to win the nomination for Taiwan's main opposition party, the Kuomintang KMT, which traditionally favours close ties with China. Taiwan Vice President William Lai, the presidential candidate for the ruling Democratic Progressive Party (DPP), is the favourite to win the election as he leads the polls.
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Adds quote, detail TAIPEI, Aug 28 (Reuters) - Terry Gou, the billionaire founder of major Apple Inc AAPL.O supplier Foxconn 2317.TW, said on Monday he was entering the race to be Taiwan's next president as an independent candidate in 2024 elections. He made a second bid to be the KMT's candidate for the presidential election to be held in January earlier this year, but the party chose instead Hou Yu-ih, the mayor of New Taipei City. Taiwan Vice President William Lai, the presidential candidate for the ruling Democratic Progressive Party (DPP), is the favourite to win the election as he leads the polls.
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2023-08-27 00:00:00 UTC
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These Are the ONLY 3 Value Stocks to Consider in August 2023
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https://www.nasdaq.com/articles/these-are-the-only-3-value-stocks-to-consider-in-august-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Compounding your wealth in the markets can be boiled down to buying stocks at a discount to market value. Then, your holdings appreciate as the price converges to the intrinsic value over time. Generally, purchasing value stocks is a safe and reliable way to grow wealth.
The markets are constantly availing value stocks to buy. In the short term, emotions rule over investors, creating opportunities. For instance, investors might sell a stock due to a disappointing quarter. Or they might chase the latest hype stock at the expense of solid low-growth stocks.
Despite the extended valuations in the current market, plenty of top-value stocks exist. While technology has outperformed year-to-date, cyclical sectors like financial and energy have lagged. Also, small caps have massively underperformed their large-cap peers and are hunting grounds for the best value stocks. Even in technology, some laggards haven’t enjoyed the artificial intelligence lift.
With yields rising, value stocks might have the upper hand for the rest of the year. Below, we look at some of the most promising value stocks to buy. They are solid companies trading at a low price-to-earnings ratio.
Qualcomm (QCOM)
Source: photobyphm / Shutterstock.com
In the computing industry, Qualcomm (NASDAQ:QCOM) is one of the most important semiconductor companies. It is a leading provider of wireless chip technology for 3G, 4G and 5G. In fact, due to its technology advantage, it counts major smartphone companies such as Apple (NASDAQ:AAPL) and Samsung Electronics (OTCMKTS:SSNLF) among its top customers.
Year-to-date (YTD), Qualcomm has underperformed semi-peers like Nvidia (NASDAQ:NVDA) and Marvell Technology (NASDAQ:MRVL). Considering this underperformance, it’s one of the promising value stocks to buy in August.
First, after two years of decline, the smartphone market might return to growth in 2024. According to the International Data Corporation (IDC), smartphone shipments declined 7.8% year-over-year in the second quarter. However, there is optimism that inventories will start normalizing in the third quarter. As excess inventories clear up, IDC expects the smartphone market to return to growth in 2024.
Secondly, the company is tapping into growth areas like IoT and automotive. While the Internet of Things (IoT) showed a decline in Q3 fiscal year 2023 results, automotive revenues grew 13% to $434 million. These two segments represented 22% of revenues in the quarter and will be meaningful contributors in the future.
Lastly, although the stock hasn’t risen on the AI wave, management outlined that the stock is a beneficiary. Chief Executive Officer (CEO) Cristiano Amon noted, “As AI use cases proliferate to the edge, on-device AI has the potential to drive an inflection point across all our products.”
Based on non-GAAP diluted EPS guidance for Q4, Qualcomm will earn at least $8.19 in FY2023. That equates to a forward P/E of 13, a bargain valuation for one of the best wireless technology companies.
First Citizens BancShares (FCNCA)
Source: shutterstock.com/rafapress
First Citizens BancShares (NASDAQ:FCNCA) was thrust into the limelight after they won the bid to purchase a chunk of collapsed Silicon Valley Bank (SVB) assets. In the deal announced in March, the bank acquired certain Silicon Valley Bank assets at a $16.5 billion discount.
This shrewd bargain is just one of the bank’s many deals over the years. The Holding family controls this Raleigh, NC-based bank. Under the leadership of Frank B. Holding Jr., it has grown into one of the top 15 banks in the United States.
It has delivered outstanding results through disciplined banking and strategic acquisitions of failed banks like SVB. Over the years, First Citizens has developed a competency in acquiring failed banks from the Federal Deposit Insurance Corporation (FDIC).
Notably, the company has made over 20 failed bank purchases over the last 15 years. These acquisitions cost-effectively expanded the franchise. Unsurprisingly, it has been the best-performing bank since 2008.
On the SVB announcement, the stock soared over 50%, highlighting the favorable terms of the deal. It acquired $110 billion of assets, including $72 billion in assets, $35 billion cash and $3 billion of other assets. These assets were funded by $94 billion of liabilities, including a 5-year $35 billion FDIC loan, $56 billion of deposits and $3 billion in other liabilities.
The difference of $16 billion is the discount received from the FDIC. The discount provides significant accretion to First Citizens’ common equity.
Analysts estimate it will earn at least $160 in FY2023. As of this writing, the bank trades at 8x forward estimates and remains among the value stocks to buy.
CONSOL Energy (CEIX)
Source: PopTika / Shutterstock
One of the most undervalued market sectors is energy. Market participants have shunned thermal coal stocks due to environmental, social and governance (ESG) concerns. As a result, CONSOL Energy (NYSE:CEIX) trades at a rock-bottom valuation, making it one of the top-value stocks to buy.
Over the past decade, ESG has come to the forefront of investing and how investors allocate capital. Amid the energy transition, asset flows have increased towards renewable energy sources, such as solar and wind. Meanwhile, fossil fuels — particularly coal — have been starved of capital and flows.
Despite the investor flight, the fundamentals in thermal coal remain solid. Although developed economies are transitioning to cleaner energy sources, emerging markets are still burning coal. Emerging markets are growing and need a lot of energy to support their economic expansion.
According to the International Energy Agency, global coal demand will stay at record levels in 2023. In 2022, consumption rose by 3.3%, and demand will remain elevated due to higher demand from Asian economies.
Due to robust thermal coal demand, CONSOL will continue to thrive. In the second quarter, it sold 6.4 million tons, earning $521 million compared to 6.2 million tons and $518 million in the previous year.
Management also revealed that coal production for 2023 was nearly fully contracted. Additionally, it has 17.6 million tons contracted for 2024 and another 4.4 million tons through 2026.
The firm generates enormous free cash flow, realizing $180.8 million in the second quarter. In first-quarter earnings, management announced they would return 75% of free cash flow primarily through buybacks. Given its depressed valuation, the company can repurchase its entire market capitalization in three years.
On the date of publication, Charles Munyi 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.
Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.
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The post These Are the ONLY 3 Value Stocks to Consider in August 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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In fact, due to its technology advantage, it counts major smartphone companies such as Apple (NASDAQ:AAPL) and Samsung Electronics (OTCMKTS:SSNLF) among its top customers. Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. 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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In fact, due to its technology advantage, it counts major smartphone companies such as Apple (NASDAQ:AAPL) and Samsung Electronics (OTCMKTS:SSNLF) among its top customers. First Citizens BancShares (FCNCA) Source: shutterstock.com/rafapress First Citizens BancShares (NASDAQ:FCNCA) was thrust into the limelight after they won the bid to purchase a chunk of collapsed Silicon Valley Bank (SVB) assets. It acquired $110 billion of assets, including $72 billion in assets, $35 billion cash and $3 billion of other assets.
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In fact, due to its technology advantage, it counts major smartphone companies such as Apple (NASDAQ:AAPL) and Samsung Electronics (OTCMKTS:SSNLF) among its top customers. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Compounding your wealth in the markets can be boiled down to buying stocks at a discount to market value. It acquired $110 billion of assets, including $72 billion in assets, $35 billion cash and $3 billion of other assets.
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In fact, due to its technology advantage, it counts major smartphone companies such as Apple (NASDAQ:AAPL) and Samsung Electronics (OTCMKTS:SSNLF) among its top customers. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Compounding your wealth in the markets can be boiled down to buying stocks at a discount to market value. In the deal announced in March, the bank acquired certain Silicon Valley Bank assets at a $16.5 billion discount.
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2023-08-27 00:00:00 UTC
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50% of Warren Buffett's $353 Billion Portfolio Is Invested in Just 1 Growth Stock
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https://www.nasdaq.com/articles/50-of-warren-buffetts-%24353-billion-portfolio-is-invested-in-just-1-growth-stock
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Great investors can be an excellent source of inspiration, and Warren Buffett is undoubtedly a great investor. His many shrewd decisions have molded Berkshire Hathaway into one of the largest companies in the world, and his uncanny ability to pick winning stocks has helped Berkshire amass an equity securities portfolio worth $353 billion.
Some investors may be shocked to learn that $178 billion of that total (or 50%) is invested in a single stock, Apple (NASDAQ: AAPL), as of the end of June. Berkshire first took a stake in the Cupertino-based company in 2016, and the position has steadily snowballed over the years. Given its size today, there is only one logical interpretation: Buffett is incredibly bullish on Apple.
Is now a good time to buy?
Apple had a humdrum third quarter
Apple reported mediocre financial results in the third fiscal quarter (ended July 1) despite beating expectations. The company suffered its third consecutive decline in quarterly sales as revenue dropped 1.4% year over year to $81.8 billion. That decline was driven by falling sales across the iPhone, Mac, and iPad product lines, though it was offset to some degree by strength in the services segment.
CFO Luca Maestri said Apple crossed 1 billion paid subscriptions in the quarter, nearly double what it had just three years ago. Services revenue increased 8% to $21.2 billion, and because services earn higher margins than hardware, gross profit margin climbed about 120 basis points to 44.5%. That dynamic, coupled with $18 billion in share repurchases, allowed generally accepted accounting principles (GAAP) earnings to rise 5% to $1.26 per diluted share despite a decline in total revenue.
Looking ahead, Apple has modest growth opportunities in hardware, but its services segment is another story.
Apple has modest growth opportunities in hardware
Apple has carved out meaningful market share in several consumer electronics verticals. It currently ranks as the second-largest smartphone manufacturer worldwide, but it added 700 basis points to its market share in the last five years, while the leader, Samsung, has failed to gain ground. Apple is also the largest smartwatch manufacturer in the world and the fourth-largest personal computer vendor.
So what? The smartphone market is projected to expand at 7% annually to hit $978 billion by 2030, while the smartwatch market is forecast to increase at 8% annually to reach $72 billion during the same period. Meanwhile, the personal computer market is expected to grow at 9% annually to reach $289 billion by 2028. Apple should be able to match those growth rates at a minimum, meaning hardware revenue should grow in the mid-single digits through the end of the decade.
That said, Apple recently announced a virtual reality (VR) headset that will be available next year, entering a market that Grand View Research says will grow at 31% annually to reach $60 billion by 2030. If the Apple Vision Pro catches fire, hardware sales growth could outpace that mid-single-digit range.
Apple has more considerable opportunities in services
Apple recently surpassed 2 billion active devices. That installed base is the foundation of its services business, which provides additional monetization opportunities through the App Store, iCloud, and Apple Pay, as well as subscription products like Apple TV+ and Apple Music. As mentioned, the services business is growing more quickly, and it earns higher margins than the hardware business, meaning Apple should become increasingly profitable over time.
The company has a particularly strong presence in two service categories: mobile app downloads and mobile wallets. The Apple App Store holds twice as much market share as Alphabet's Google Play Store, and Apple Pay is the most popular in-store mobile wallet by a wide margin among U.S. consumers.
Meanwhile, the company is also gaining ground in digital advertising. According to eMarketer, Apple will rank as the fifth-fastest-growing digital advertiser in the U.S. this year, outpacing industry leaders Alphabet, Meta Platforms, and Amazon.
So what? Global mobile app sales are projected to climb 14% annually to reach $567 billion by 2030, while U.S. mobile wallet revenue is expected to increase 27% annually to reach $8 billion during the same period. Meanwhile, the digital ad market is forecast to grow at 9% annually to hit $1.2 trillion by 2030. Collectively, that hints at low double-digit sales growth in Apple services through the end of the decade.
Is Apple stock worth buying?
As discussed, Apple has a reasonable shot at mid-single-digit sales growth in hardware and low double-digit sales growth in services through 2030. But earnings should grow even faster, perhaps in the mid-teens, due to rapid expansion of the high-margin services business and regular share repurchases. Indeed, Apple's earnings increased nearly 18% annually over the last five years. Yet, investors should carefully consider its valuation.
Apple currently trades at 29.6 times earnings, a premium to the five-year average of 25.3. I question whether the company can grow quickly enough to produce market-beating returns given its current valuation, so I would recommend waiting for a more reasonable entry point. But Buffett clearly disagrees, and investors who choose to buy Apple stock today can take solace in knowing that Berkshire owns a good chunk of the company.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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. Trevor Jennewine has positions in Amazon.com. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, 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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Some investors may be shocked to learn that $178 billion of that total (or 50%) is invested in a single stock, Apple (NASDAQ: AAPL), as of the end of June. It currently ranks as the second-largest smartphone manufacturer worldwide, but it added 700 basis points to its market share in the last five years, while the leader, Samsung, has failed to gain ground. That said, Apple recently announced a virtual reality (VR) headset that will be available next year, entering a market that Grand View Research says will grow at 31% annually to reach $60 billion by 2030.
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Some investors may be shocked to learn that $178 billion of that total (or 50%) is invested in a single stock, Apple (NASDAQ: AAPL), as of the end of June. Services revenue increased 8% to $21.2 billion, and because services earn higher margins than hardware, gross profit margin climbed about 120 basis points to 44.5%. As mentioned, the services business is growing more quickly, and it earns higher margins than the hardware business, meaning Apple should become increasingly profitable over time.
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Some investors may be shocked to learn that $178 billion of that total (or 50%) is invested in a single stock, Apple (NASDAQ: AAPL), as of the end of June. Apple has modest growth opportunities in hardware Apple has carved out meaningful market share in several consumer electronics verticals. That installed base is the foundation of its services business, which provides additional monetization opportunities through the App Store, iCloud, and Apple Pay, as well as subscription products like Apple TV+ and Apple Music.
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Some investors may be shocked to learn that $178 billion of that total (or 50%) is invested in a single stock, Apple (NASDAQ: AAPL), as of the end of June. Looking ahead, Apple has modest growth opportunities in hardware, but its services segment is another story. Indeed, Apple's earnings increased nearly 18% annually over the last five years.
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2023-08-27 00:00:00 UTC
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U.S. trade chief flags concerns over India's license mandate for laptop, tablet imports
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https://www.nasdaq.com/articles/u.s.-trade-chief-flags-concerns-over-indias-license-mandate-for-laptop-tablet-imports
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By Shivangi Acharya
NEW DELHI, Aug 27 (Reuters) - U.S. trade chief Katherine Tai has raised concerns with India over the Asian nation's new order mandating licenses for the import of laptops, tablets and personal computers, according to a statement.
Tai's intervention comes amid worries the licensing regime could impact shipments from the likes of Apple AAPL.O and Dell DELL.N and force firms to boost local manufacturing.
"She noted that there were stakeholders that needed an opportunity to review and provide input to ensure that the policy, if implemented, does not have an adverse impact on U.S. exports to India," as per the U.S. statement issued after Tai met with India's Trade Minister Piyush Goyal on August 26.
Tai was in India to join the G20 trade ministers' meeting last week in the western state of Rajasthan.
India's new licensing regime, which is due to come into effect on November 1, aims to "ensure trusted hardware and systems" enter the nation. It also seeks to reduce dependence on imports, boost local manufacturing, and in part address the country's trade imbalance with China, according to an Indian government official.
India and the U.S. will also continue discussions to find a solution to the only bilateral dispute between the two nations at the World Trade Organisation, which involves measures by New Delhi on certain agricultural imports into the country, according to the statement. Six other disputes were mutually resolved earlier this year.
(Reporting by Shivangi Acharya; Editing by Sharon Singleton)
((shivangi.acharya@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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Tai's intervention comes amid worries the licensing regime could impact shipments from the likes of Apple AAPL.O and Dell DELL.N and force firms to boost local manufacturing. By Shivangi Acharya NEW DELHI, Aug 27 (Reuters) - U.S. trade chief Katherine Tai has raised concerns with India over the Asian nation's new order mandating licenses for the import of laptops, tablets and personal computers, according to a statement. It also seeks to reduce dependence on imports, boost local manufacturing, and in part address the country's trade imbalance with China, according to an Indian government official.
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Tai's intervention comes amid worries the licensing regime could impact shipments from the likes of Apple AAPL.O and Dell DELL.N and force firms to boost local manufacturing. "She noted that there were stakeholders that needed an opportunity to review and provide input to ensure that the policy, if implemented, does not have an adverse impact on U.S. exports to India," as per the U.S. statement issued after Tai met with India's Trade Minister Piyush Goyal on August 26. It also seeks to reduce dependence on imports, boost local manufacturing, and in part address the country's trade imbalance with China, according to an Indian government official.
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Tai's intervention comes amid worries the licensing regime could impact shipments from the likes of Apple AAPL.O and Dell DELL.N and force firms to boost local manufacturing. By Shivangi Acharya NEW DELHI, Aug 27 (Reuters) - U.S. trade chief Katherine Tai has raised concerns with India over the Asian nation's new order mandating licenses for the import of laptops, tablets and personal computers, according to a statement. "She noted that there were stakeholders that needed an opportunity to review and provide input to ensure that the policy, if implemented, does not have an adverse impact on U.S. exports to India," as per the U.S. statement issued after Tai met with India's Trade Minister Piyush Goyal on August 26.
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Tai's intervention comes amid worries the licensing regime could impact shipments from the likes of Apple AAPL.O and Dell DELL.N and force firms to boost local manufacturing. By Shivangi Acharya NEW DELHI, Aug 27 (Reuters) - U.S. trade chief Katherine Tai has raised concerns with India over the Asian nation's new order mandating licenses for the import of laptops, tablets and personal computers, according to a statement. "She noted that there were stakeholders that needed an opportunity to review and provide input to ensure that the policy, if implemented, does not have an adverse impact on U.S. exports to India," as per the U.S. statement issued after Tai met with India's Trade Minister Piyush Goyal on August 26.
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2023-08-27 00:00:00 UTC
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Nearly 38% of Warren Buffett's Portfolio Is Invested in This 1 Sector If Apple Is Left Out of the Mix
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https://www.nasdaq.com/articles/nearly-38-of-warren-buffetts-portfolio-is-invested-in-this-1-sector-if-apple-is-left-out
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Apple (NASDAQ: AAPL) makes up a huge part of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. It's possible for the sheer size of this position to completely overshadow all of the other stocks that Buffett owns.
But what if we factored Apple out of the equation? Nearly 38% of Buffett's portfolio is invested in one sector if Apple is left out of the mix.
A clear winner
Berkshire owns positions in 54 stocks plus two exchange-traded funds (ETFs). Ten of those stocks are in the financial services sector.
STOCK % OF PORTFOLIO WITH APPLE INCLUDED % OF PORTFOLIO EXCLUDING APPLE
Bank of America (NYSE: BAC) 8.5% 15.8%
American Express (NYSE: AXP) 6.9% 12.8%
Moody's (NYSE: MCO) 2.3% 4.3%
Citigroup (NYSE: C) 0.7% 1.3%
Visa (NYSE: V) 0.6% 1.1%
Mastercard (NYSE: MA) 0.5% 0.9%
Capital One Financial (NYSE: COF) 0.4% 0.7%
Ally Financial (NYSE: ALLY) 0.2% 0.4%
Nu Holdings (NYSE: NU) 0.2% 0.4%
Jefferies Financial (NYSE: JEF) <0.1% <0.1%
Total 20.3% 37.8%
Data source: Berkshire Hathaway 13F filing.
Even with Apple included, these 10 stocks make up more than 20% of Berkshire's portfolio. However, their importance is underscored even more with Apple excluded.
Buffett isn't as enamored with bank stocks now as he has been in the past. But he's still heavily invested in the group, with Bank of America ranking as the second-largest overall position for Berkshire. The legendary investor also likes Capital One Financial, Latin American digital bank Nu Holdings, and investment bank Jefferies Financial.
He's also big on companies in the credit services industry. Berkshire's significant stakes in Visa, Mastercard, Capital One, and Ally prove it.
Moody's is also in the financial services sector but is something of an outlier. It ranks as one of the top financial data and credit rating service providers.
Why Buffett likes financial services
Buffett often insists that he and his longtime business partner Charlie Munger aren't stock-pickers but are instead business-pickers. He likes so many financial services stocks, therefore, because he likes their underlying businesses.
The Oracle of Omaha knows that people will always need somewhere to park their money both over the short term and long term. And he knows that individuals and businesses will always need access to additional capital.
Buffet also no doubt appreciates the fact that financial services is a heavily regulated sector. One advantage of this is that it's more onerous for financial companies to take on excessive levels of risk (albeit not impossible to do so).
This regulation also makes it more difficult for new companies to enter the financial services market. Buffett has and always will prize the stocks of companies with solid business moats.
Buffett's favorite sector
Of course, the reality is that Apple still dominates Berkshire's portfolio. As a result, Buffett's favorite sector is obviously technology.
Apple isn't the only tech stock that Berkshire owns. There's also HP, Verisign, Activision Blizzard, Snowflake, and StoneCo.
It might be surprising that Buffett has invested so heavily in tech stocks. After all, he's readily admitted in the past that technology isn't in his wheelhouse.
However, as is the case with financial services and any other sector Buffett invests in, he focuses on individual businesses. He owns Apple and the other tech stocks because he likes their fundamentals and growth prospects. That's a good reason for any investor to buy a stock.
10 stocks we like better than Bank of America
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Ally is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Citigroup 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. Keith Speights has positions in Apple, Bank of America, Berkshire Hathaway, and Mastercard. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Bank of America, Berkshire Hathaway, HP, Jefferies Financial Group, Mastercard, Moody's, Snowflake, StoneCo, VeriSign, 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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Apple (NASDAQ: AAPL) makes up a huge part of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. Buffet also no doubt appreciates the fact that financial services is a heavily regulated sector. Keith Speights has positions in Apple, Bank of America, Berkshire Hathaway, and Mastercard.
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Apple (NASDAQ: AAPL) makes up a huge part of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. Bank of America (NYSE: BAC) 8.5% 15.8% American Express (NYSE: AXP) 6.9% 12.8% Moody's (NYSE: MCO) 2.3% 4.3% Citigroup (NYSE: C) 0.7% 1.3% Visa (NYSE: V) 0.6% 1.1% Mastercard (NYSE: MA) 0.5% 0.9% Capital One Financial (NYSE: COF) 0.4% 0.7% Ally Financial (NYSE: ALLY) 0.2% 0.4% Nu Holdings (NYSE: NU) 0.2% 0.4% Jefferies Financial (NYSE: JEF) <0.1% <0.1% Total 20.3% 37.8% Data source: Berkshire Hathaway 13F filing. The legendary investor also likes Capital One Financial, Latin American digital bank Nu Holdings, and investment bank Jefferies Financial.
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Apple (NASDAQ: AAPL) makes up a huge part of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. Bank of America (NYSE: BAC) 8.5% 15.8% American Express (NYSE: AXP) 6.9% 12.8% Moody's (NYSE: MCO) 2.3% 4.3% Citigroup (NYSE: C) 0.7% 1.3% Visa (NYSE: V) 0.6% 1.1% Mastercard (NYSE: MA) 0.5% 0.9% Capital One Financial (NYSE: COF) 0.4% 0.7% Ally Financial (NYSE: ALLY) 0.2% 0.4% Nu Holdings (NYSE: NU) 0.2% 0.4% Jefferies Financial (NYSE: JEF) <0.1% <0.1% Total 20.3% 37.8% Data source: Berkshire Hathaway 13F filing. See the 10 stocks *Stock Advisor returns as of August 21, 2023 Ally is an advertising partner of The Ascent, a Motley Fool company.
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Apple (NASDAQ: AAPL) makes up a huge part of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. Ten of those stocks are in the financial services sector. However, as is the case with financial services and any other sector Buffett invests in, he focuses on individual businesses.
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14110.0
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2023-08-26 00:00:00 UTC
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Is Trouble Brewing for 3M Investors?
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AAPL
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https://www.nasdaq.com/articles/is-trouble-brewing-for-3m-investors
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nan
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nan
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I think there's good reason to believe industrial giant 3M's (NYSE: MMM) full-year sales outlook could be under significant pressure, and management could, yet again, miss its full-year expectations based on its initial guidance. There is an investment case for buying the stock, but it makes sense to weigh the risks and rewards before investing money.
Why 3M could miss its sales guidance
There are three interconnected reasons why investors need to be cautious about the matter:
Having started the year forecasting full-year organic sales to decline 3% to being flat on 2022, management told investors (in late July) that it now expects sales at the "lower end" of the range for 2023. Momentum is against 3M.
China is a key end market for 3M, and the recovery in that country has turned out weaker than many expected going into 2023.
3M's sales are threatened by anecdotal signs of weakness in the industrial sector, notably in key industry verticals it sells into, and the likelihood of industrial companies reducing inventory.
Declining sales momentum and China
The cut in full-year sales expectations (although not a cut in guidance because management said it would likely come in at the lower end of the range) is disappointing, particularly as 3M's management doesn't have a good track record of meeting its sales guidance.
That said, there's little management can do about a deteriorating end-market outlook in 2023, starting with China.
Many industrial companies, including 3M, hoped China's industrial output would bounce back as pandemic-related restrictions were lifted in 2023. The following chart, taken from the official National Bureau of Statistics in China, shows how the bounce occurred in the first quarter but has gradually petered out as the year progressed (a reading above 50 indicates growth). Not only are Chinese purchasing managers reporting a slowdown in conditions (as measured by the purchasing manager index), but also new orders.
That's an issue for 3M because, as CFO Monish Patolawala said on the first-quarterearnings callin April, "our full-year guidance, as I have talked about, assumes overall recovery in all economies in the second half, including China." For reference, the Asia Pacific region contributed nearly 29% of 3M's sales in 2022, significantly larger than Europe, Middle East, and Africa contribution of 17.3%.
Data source: National Bureau of Statistics in China. Chart by author.
Industrial sector and 3M sector-specific weakness
Discussing the reason for the downgrade to expectations on the second-quarterearnings call Patolawala cited a lack of improvement in key end markets like "electronics, consumer retail, industrial, and China."
3M has broad-based exposure to the industrial sector through its sales of abrasives, adhesives/tapes, advanced materials, and electronics materials, with notable exposure to electronics, semiconductors, smartphones, and automotive end markets. In addition, it has exposure to consumer retail through home improvement and home care product sales.
What companies are saying
I want to highlight what two companies recently said about consumer electronics and semiconductors. Cognex (NASDAQ: CGNX) manufactures and sells machine vision systems manufacturers use, and Keysight Technologies (NYSE: KEYS) makes design and test solutions. Both are interesting because they tend to have short-cycle orders that come through when customers ramp up activity.
For example, Apple (a Cognex customer) might order more machine vision equipment to help it ramp up production of phones in the third and fourth quarters ahead of Thanksgiving and Christmas.
Image source: Getty Images.
Cognex's CEO Rob Willett recently told investors of slower manufacturing activity "including Germany and the United States," noting that "customers remain cautious with their capital investments, particularly in consumer electronics and semi where we have seen the steepest decline in demand."
It's a similar story at Keysight, where CEO Satish Dhanasekaran recently said, "Demand was incrementally weaker in Asia this quarter as customers deferred manufacturing-related spending in semiconductor, general electronics, and automotive markets in many cases well into next year."
Meanwhile, rising interest rates continue to pressure U.S. consumer sales in rate-sensitive areas like housing.
A stock to buy?
There's no way to sugarcoat this. The weakness in short-cycle orders at companies like Cognex and Keysight points to near-term issues in some of 3M's key end markets, notably in China. As such, don't be surprised if 3M misses its full-year sales guidance.
Long-term investors shouldn't worry too much, as a few quarters of slowing sales won't matter to the big picture because management is actively restructuring the business and pointing to underlying improvements in its margin profile. Still, end-market conditions will likely worsen before they get better for 3M, which should be factored into investor perceptions of the stock.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and 3M wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 21, 2023
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Cognex. The Motley Fool recommends 3M. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's an issue for 3M because, as CFO Monish Patolawala said on the first-quarterearnings callin April, "our full-year guidance, as I have talked about, assumes overall recovery in all economies in the second half, including China." Cognex's CEO Rob Willett recently told investors of slower manufacturing activity "including Germany and the United States," noting that "customers remain cautious with their capital investments, particularly in consumer electronics and semi where we have seen the steepest decline in demand." It's a similar story at Keysight, where CEO Satish Dhanasekaran recently said, "Demand was incrementally weaker in Asia this quarter as customers deferred manufacturing-related spending in semiconductor, general electronics, and automotive markets in many cases well into next year."
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3M has broad-based exposure to the industrial sector through its sales of abrasives, adhesives/tapes, advanced materials, and electronics materials, with notable exposure to electronics, semiconductors, smartphones, and automotive end markets. Cognex (NASDAQ: CGNX) manufactures and sells machine vision systems manufacturers use, and Keysight Technologies (NYSE: KEYS) makes design and test solutions. The weakness in short-cycle orders at companies like Cognex and Keysight points to near-term issues in some of 3M's key end markets, notably in China.
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Why 3M could miss its sales guidance There are three interconnected reasons why investors need to be cautious about the matter: Having started the year forecasting full-year organic sales to decline 3% to being flat on 2022, management told investors (in late July) that it now expects sales at the "lower end" of the range for 2023. Declining sales momentum and China The cut in full-year sales expectations (although not a cut in guidance because management said it would likely come in at the lower end of the range) is disappointing, particularly as 3M's management doesn't have a good track record of meeting its sales guidance. Industrial sector and 3M sector-specific weakness Discussing the reason for the downgrade to expectations on the second-quarterearnings call Patolawala cited a lack of improvement in key end markets like "electronics, consumer retail, industrial, and China."
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Declining sales momentum and China The cut in full-year sales expectations (although not a cut in guidance because management said it would likely come in at the lower end of the range) is disappointing, particularly as 3M's management doesn't have a good track record of meeting its sales guidance. Industrial sector and 3M sector-specific weakness Discussing the reason for the downgrade to expectations on the second-quarterearnings call Patolawala cited a lack of improvement in key end markets like "electronics, consumer retail, industrial, and China." * They just revealed what they believe are the ten best stocks for investors to buy right now... and 3M wasn't one of them!
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14111.0
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2023-08-26 00:00:00 UTC
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3 Stocks to Buy and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-and-hold-forever-1
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nan
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nan
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With theirstellar historicalreturns, equities have proven to be the best investment in the long term. By this logic, buying and holding stocks for a long period is a relatively simple, but highly effective, strategy to create wealth. However, when investing for the long haul, investors should focus on diversifying their portfolios, and look for large companies - primarily industry leaders - with growing earnings bases and substantial competitive advantages.
From this perspective, Apple, Nvidia, and Costco are all built to last, and are three great buy-and-hold stocks for the long term. Shares of these companies have consistently outperformed the S&P 500 Index ($SPX) for the past several years. Let’s examine the factors to understand why these are great “buy-and-hold forever” stocks.
Apple
Apple, with its innovative spirit, solid product line (iPhone, iPad, MacBook, and wearables), strong brand equity, and loyal customer base, is a must-have long-term bet. Its ability to consistently innovate enables it to expand its product and customer base, and helps the company to broaden its ecosystem.
www.barchart.com
While customers love its products, the company also provides various related services. These include fee-based service and support products under the AppleCare brand, cloud services, advertising, payment services, and digital content. Thanks to its innovative products and services, Apple’s installed base (the number of devices currently used by customers) crossed 2 billion active devices in the third quarter of 2023.
Apple's growing installed base shows the success of its products and brings more customers into the ecosystem, which is essential for long-term growth. In addition, its highly profitable services business is growing rapidly, providing more earnings power to Apple.
Overall, Apple - with its market-leading products, focus on innovation, strong earnings base, and robust balance sheet - is poised to outperform the broader markets by a significant margin in the long term. Also, its ability to return substantial cash to its shareholders through share repurchases ($90.2 billion in 2022) and growing dividends ($14.8 billion in 2022) should further enhance shareholders’ returns.
Eighteen out of 29 analysts have rated AAPL stock a “Strong Buy,” three have a “Moderate Buy” rating, and eight analysts suggest a “Hold.” These analysts have a 12-month average price target of $205.07, which is about 14.8% higher than current levels.
www.barchart.com
Nvidia
Nvidia is a must-have stock to capitalize on the dominant next-gen technology, which is generative AI (Artificial Intelligence). NVDA, being the leader in the AI space, is well-positioned to benefit from the ramp-up in AI adoption and its implementation across various sectors and services.
Thanks to its leading competitive positioning in AI, Nvidia stock has gained significantly on a year-to-date basis (about 215%) and has generated massive returns over the past decade (in the neighborhood of 13,000%).
www.barchart.com
While NVDA has made its long-term investors rich, the company has the potential to deliver stellar returns in the coming years, as well, as it continues to expect solid demand for AI and accelerated computing from cloud service providers (like Google), consumer internet companies (like Meta), and enterprises. Plus, the company is witnessing solid momentum in verticals like automotive, healthcare, financial services, and telecom.
At the end of Q1, Nvidia said its automotive design win pipeline over the next six years stood at $14 billion, adding visibility on future growth. Further, generative AI will be transformative to gaming and content creation, which will drive demand for its GPUs (Graphics Processing Units). And despite remarkably high expectations heading into its latest earnings report, Nvidia still managed to surprise to the upside.
NVDA - with its full AI stack that supports every framework and model - is a long-term winner, and analysts are optimistic. Among 34 analysts, 28 recommend a “Strong Buy,” three maintain a “Moderate Buy,” and three have a “Hold” recommendation. Further, the average price target for NVDA stock is $513.03, which suggests a further upside potential of about 11.5% from current levels.
www.barchart.com
Costco
Costco's defensive business model, value proposition, dominant competitive positioning, and ability to deliver above-average comparable sales growth make it a solid long-term investment. The company operates membership warehouses and e-commerce websites.
However, what stands out is its ability to offer low prices to its members on nationally branded and private-label products across various categories. This, in turn, helps it to produce solid sales volumes.
www.barchart.com
Investors should note that higher volumes, rapid inventory turnover, and operating efficiencies through volume purchasing, self-service warehouse facilities, and efficient distribution enable the company to deliver solid margins.
Costco also benefits from its high member renewal rates (the worldwide renewal rate stood at 90.5% at the end of the most recent quarter). This shows solid customer loyalty and drives membership fee income, adding resiliency to its business model.
The opening of new warehouses, its loyal membership base, unique value proposition, and e-commerce expansion will drive its top line over the long term. Moreover, operating efficiencies will cushion Costco's bottom line and support its stock price, dividend payouts, and share repurchases.
Of 25 analysts tracking COST, 16 recommend a “Strong Buy,” three maintain a “Moderate Buy,” and six have a “Hold” recommendation. The average price target for COST stock is $570.39, which is 6.8% higher than current levels.
www.barchart.com
Bottom Line
All three of these corporations operate durable businesses. Moreover, they are ahead of the competition, which adds confidence. Their ability to drive sales and earnings in the long term, and their collective focus on enhancing shareholders’ value, makes them top long-term stocks to buy and hold forever.
Finally, it’s important to highlight here that equities are volatile by nature. Long-term investors shouldn’t worry too much about short-term volatility in these stocks, and continue to hold on to their investments with an eye toward the future.
On the date of publication, Sneha Nahata 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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Eighteen out of 29 analysts have rated AAPL stock a “Strong Buy,” three have a “Moderate Buy” rating, and eight analysts suggest a “Hold.” These analysts have a 12-month average price target of $205.07, which is about 14.8% higher than current levels. However, when investing for the long haul, investors should focus on diversifying their portfolios, and look for large companies - primarily industry leaders - with growing earnings bases and substantial competitive advantages. Overall, Apple - with its market-leading products, focus on innovation, strong earnings base, and robust balance sheet - is poised to outperform the broader markets by a significant margin in the long term.
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Eighteen out of 29 analysts have rated AAPL stock a “Strong Buy,” three have a “Moderate Buy” rating, and eight analysts suggest a “Hold.” These analysts have a 12-month average price target of $205.07, which is about 14.8% higher than current levels. www.barchart.com Costco Costco's defensive business model, value proposition, dominant competitive positioning, and ability to deliver above-average comparable sales growth make it a solid long-term investment. Their ability to drive sales and earnings in the long term, and their collective focus on enhancing shareholders’ value, makes them top long-term stocks to buy and hold forever.
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Eighteen out of 29 analysts have rated AAPL stock a “Strong Buy,” three have a “Moderate Buy” rating, and eight analysts suggest a “Hold.” These analysts have a 12-month average price target of $205.07, which is about 14.8% higher than current levels. www.barchart.com While NVDA has made its long-term investors rich, the company has the potential to deliver stellar returns in the coming years, as well, as it continues to expect solid demand for AI and accelerated computing from cloud service providers (like Google), consumer internet companies (like Meta), and enterprises. Their ability to drive sales and earnings in the long term, and their collective focus on enhancing shareholders’ value, makes them top long-term stocks to buy and hold forever.
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Eighteen out of 29 analysts have rated AAPL stock a “Strong Buy,” three have a “Moderate Buy” rating, and eight analysts suggest a “Hold.” These analysts have a 12-month average price target of $205.07, which is about 14.8% higher than current levels. www.barchart.com While NVDA has made its long-term investors rich, the company has the potential to deliver stellar returns in the coming years, as well, as it continues to expect solid demand for AI and accelerated computing from cloud service providers (like Google), consumer internet companies (like Meta), and enterprises. Their ability to drive sales and earnings in the long term, and their collective focus on enhancing shareholders’ value, makes them top long-term stocks to buy and hold forever.
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14112.0
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2023-08-26 00:00:00 UTC
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Great News for Apple Stock Investors
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AAPL
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https://www.nasdaq.com/articles/great-news-for-apple-stock-investors
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nan
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nan
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Fool.com contributor Parkev Tatevosian reviews an investor update from Apple (NASDAQ: AAPL) that points to excellent long-term prospects.
*Stock prices used were the afternoon prices of Aug. 23, 2023. The video was published on Aug. 25, 2023.
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.
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*Stock Advisor returns as of August 21, 2023
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian reviews an investor update from Apple (NASDAQ: AAPL) that points to excellent long-term prospects. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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Fool.com contributor Parkev Tatevosian reviews an investor update from Apple (NASDAQ: AAPL) that points to excellent long-term prospects. 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 August 21, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian reviews an investor update from Apple (NASDAQ: AAPL) that points to excellent long-term prospects. 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.
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Fool.com contributor Parkev Tatevosian reviews an investor update from Apple (NASDAQ: AAPL) that points to excellent long-term prospects. See the 10 stocks *Stock Advisor returns as of August 21, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple.
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14113.0
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2023-08-26 00:00:00 UTC
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Is Affirm Holdings Stock a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-affirm-holdings-stock-a-buy-now-1
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nan
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nan
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Affirm's (NASDAQ: AFRM) stock jumped 9% during after-hours trading on Aug. 24 after the buy now, pay later (BNPL) company posted its latest earnings report. For the fourth quarter of fiscal 2023 (which ended on June 30), its revenue rose 22% year over year to $446 million and beat analysts' forecasts by $40 million. Its net loss widened from $186 million to $206 million, or $0.69 per share, but still topped analysts' estimates by $0.14.
Affirm is growing, but it's still struggling to prove its business model is sustainable. Even after its post-earnings pop, it remains nearly 70% below its IPO price from January 2021. So should investors bet on this BNPL leader's long-term recovery?
Image source: Getty Images.
Why did the bulls turn against Affirm?
Affirm's BNPL platform targets younger and lower-income people who can't get approved for traditional credit cards. For businesses, it promotes itself as a cheaper alternative to credit cards, which charge swipe fees for each transaction.
Instead of directly processing a payment, Affirm approves microloans for customers to break up larger purchases into smaller installments. Its shorter installment plans don't accumulate any interest, while its extended ones are provided at higher rates. It doesn't charge any late or hidden fees. That simple approach locked in a lot of people and businesses in the pandemic, and its growth was amplified by the temporary spike in online sales and stimulus-induced spending.
That's why Affirm's revenue soared 71% to $871 million in fiscal 2021 (which ended in June 2021) and grew 55% in fiscal 2022. But in fiscal 2023, its revenue only rose 18% to $1.59 billion. That slowdown was caused by three major challenges.
First, inflation broadly curbed consumer spending. Second, Peloton (NASDAQ: PTON) -- Affirm's top customer at the time of its IPO -- suffered a grueling post-pandemic slowdown. Lastly, more diversified tech giants -- including PayPal (NASDAQ: PYPL), Block (NYSE: SQ), and even Apple (NASDAQ: AAPL) -- expanded into the BNPL market.
As Affirm's growth cooled off and it faced fiercer competition, its net losses nearly quadrupled from $113 million in fiscal 2020 to $441 million in fiscal 2021, then widened again to $707 million in fiscal 2022 and $985 million in fiscal 2023. All that red ink suggested Affirm didn't have much pricing power -- and that it was likely locking in high-profile merchants like Amazon and Walmart with lopsided loss-leading deals.
That mix of slowing growth and widening losses convinced the bulls that Affirm no longer deserved a premium valuation. When Affirm's stock hit its all-time high of $168.52 on Nov. 4, 2021, its enterprise value reached $47.6 billion -- or 37 times the revenue it would actually generate in fiscal 2022.
At $15, Affirm has an enterprise value of $7.1 billion -- or four times its projected revenues for fiscal 2024. But even at that lower valuation, its own insiders aren't warming up to its stock. Over the past 12 months, its insiders sold more than three times as many shares as they bought.
But some glimmers of hope are appearing
It's easy to see why the market turned against Affirm, but a few green shoots are appearing. It expects its gross merchandise volume (GMV), or the value of all goods sold on its platform, to grow 19% to $24 billion in fiscal 2024. It expects to squeeze out roughly the same percentage of its GMV (7.9%) as revenue -- which implies its total revenue will also grow about 19% to $1.9 billion. That would mark a slight acceleration from fiscal 2023.
Affirm also ended fiscal 2023 with only 2.3% of its accounts (excluding Peloton and its "Pay in 4" platform) with delinquent loans of over 30 days. That percentage suggests it won't be overwhelmed by delinquent payments anytime soon, but it expects that ratio to increase slightly in the first half of fiscal 2024.
Affirm also continues to expand. In Q4, its number of active consumers grew 18% year over year to 16.5 million, while its number of active merchants rose 8% to 254,000. Its transactions per active consumer also rose 30%.
More importantly, Affirm's adjusted operating margin turned positive in Q4. It expects to achieve a positive adjusted operating margin of at least 2% for fiscal 2024, compared to a negative adjusted operating margin of 4.6% in fiscal 2023. It's still a long way from achieving profitability on a generally accepted accounting principles (GAAP) basis, but it attributes its improving non-GAAP numbers to its recent cost-cutting measures (including layoffs for nearly a fifth of its workforce), its pursuit of "higher gross margin" merchants, and the rollout of its own debit cards.
With $2.1 billion in cash, cash equivalents, and marketable securities, Affirm won't go bankrupt anytime soon -- even if it continues to struggle to narrow its GAAP losses.
Is it the right time to buy Affirm?
Affirm's stock looks less bubbly than it did two years ago, but it still doesn't seem like a bargain. It's still growing, but it's deeply unprofitable and could struggle to keep pace with PayPal, Block, and Apple as they aggressively expand their BNPL ecosystems with loss-leading tactics. In other words, I think it's smarter to stick with any of those better-diversified tech companies instead of betting on Affirm's long-term recovery.
10 stocks we like better than Affirm
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 Affirm wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 21, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Block. The Motley Fool recommends Amazon.com, Apple, PayPal, Peloton Interactive, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lastly, more diversified tech giants -- including PayPal (NASDAQ: PYPL), Block (NYSE: SQ), and even Apple (NASDAQ: AAPL) -- expanded into the BNPL market. Affirm's (NASDAQ: AFRM) stock jumped 9% during after-hours trading on Aug. 24 after the buy now, pay later (BNPL) company posted its latest earnings report. All that red ink suggested Affirm didn't have much pricing power -- and that it was likely locking in high-profile merchants like Amazon and Walmart with lopsided loss-leading deals.
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Lastly, more diversified tech giants -- including PayPal (NASDAQ: PYPL), Block (NYSE: SQ), and even Apple (NASDAQ: AAPL) -- expanded into the BNPL market. In Q4, its number of active consumers grew 18% year over year to 16.5 million, while its number of active merchants rose 8% to 254,000. More importantly, Affirm's adjusted operating margin turned positive in Q4.
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Lastly, more diversified tech giants -- including PayPal (NASDAQ: PYPL), Block (NYSE: SQ), and even Apple (NASDAQ: AAPL) -- expanded into the BNPL market. That's why Affirm's revenue soared 71% to $871 million in fiscal 2021 (which ended in June 2021) and grew 55% in fiscal 2022. As Affirm's growth cooled off and it faced fiercer competition, its net losses nearly quadrupled from $113 million in fiscal 2020 to $441 million in fiscal 2021, then widened again to $707 million in fiscal 2022 and $985 million in fiscal 2023.
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Lastly, more diversified tech giants -- including PayPal (NASDAQ: PYPL), Block (NYSE: SQ), and even Apple (NASDAQ: AAPL) -- expanded into the BNPL market. That's why Affirm's revenue soared 71% to $871 million in fiscal 2021 (which ended in June 2021) and grew 55% in fiscal 2022. As Affirm's growth cooled off and it faced fiercer competition, its net losses nearly quadrupled from $113 million in fiscal 2020 to $441 million in fiscal 2021, then widened again to $707 million in fiscal 2022 and $985 million in fiscal 2023.
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14114.0
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2023-08-26 00:00:00 UTC
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Prediction: These Will Be the 3 Biggest Artificial Intelligence (AI) Stocks in 2030
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AAPL
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https://www.nasdaq.com/articles/prediction%3A-these-will-be-the-3-biggest-artificial-intelligence-ai-stocks-in-2030
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nan
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nan
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Six years, four months, and six days. That's how long we have until 2030 arrives. The way time flies, it will be here before we know it.
A lot can change between now and then. In particular, I expect significant advances in artificial intelligence (AI). Which AI stocks will be the biggest in 2030? My prediction is that these three will rank at the top.
1. Apple
Apple (NASDAQ: AAPL) is the biggest company in the world today based on market cap. I suspect it'll be the biggest in 2030 as well. And I think that the tech giant's AI efforts will play a key role in holding onto the No. 1 spot.
To be sure, Apple hasn't been at the center of the AI frenzy this year as much as others have. Its Siri AI-powered assistant almost seems antiquated in light of the generative AI explosion ignited by OpenAI's ChatGPT.
Don't underestimate Apple, though. The company invests heavily in AI development. CEO Tim Cook mentioned in the second-quarter conference call that Apple has conducted research and development in generative AI and other AI technologies for years. He stated, "[W]e view AI and machine learning as core fundamental technologies that are integral to virtually every product that we build."
I predict that Apple's devices will be the top means of delivering AI to end users through the rest of the decade and beyond. I also think that the company has tremendous opportunities in spatial computing -- the interaction between technology and the physical world.
2. Microsoft
Only one AI stock other than Apple has a market cap of over $2 trillion. It's Microsoft (NASDAQ: MSFT). My hunch is that the Seattle-based company will remain the No. 2 AI stock in 2030.
Unlike Apple, Microsoft has been in the AI spotlight in a huge way this year. The company pulled off what I view as an exceptionally astute move by teaming up with (and investing billions of dollars in) OpenAI.
Microsoft should be able to win on multiple AI fronts. Its productivity software can help users be even more productive thanks to AI. Microsoft's software development platform should enable programmers to develop code more quickly. I fully expect the momentum of the company's Azure cloud platform to accelerate as well thanks to its AI tools.
AI should also benefit Microsoft in its own internal development efforts. That could especially be helpful in the gaming arena with the pending acquisition of Activision Blizzard looking more likely to close.
3. Alphabet
Some might be surprised that I'm predicting Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will be the third-largest AI stock in 2030. There is a theory that AI could instead disrupt Alphabet's Google Search business, which currently generates most of the company's revenue.
I'm not convinced that's going to happen. Alphabet has done a good job, in my opinion, with its early integration of generative AI with Google Search. So far, the company's search revenue is holding up quite well despite the popularity of ChatGPT and other large language models (as evidenced by its impressive stock performance thus far this year).
My view is that it's more likely that AI provides a significant long-term tailwind for Alphabet. Its Google Cloud business should attract more customers as they scramble to take advantage of AI. Self-driving car technology unit Waymo has a tremendous opportunity. AI is already helping Alphabet boost its advertising revenue and will probably continue to do so.
I also think that Alphabet's quantum computing expertise could be a major wild card. The company has achieved several important milestones in the field. It's possible that by 2030, quantum computing could be an emerging growth driver for Alphabet.
How my prediction could flop
Would it be shocking to me if my prediction didn't come true? Not really.
For example, I could see Microsoft potentially picking up more steam and vaulting ahead of Apple. Perhaps instead Alphabet will unleash its AI dragons within the next few years in a game-changing way and move higher in the ranking. Maybe I'll be proven wrong about AI disrupting Google Search.
There are also a few other AI stocks that could gain ground in a major way. Amazon runs the biggest cloud services platform and could be a huge AI winner. Maybe Nvidia's jaw-dropping growth trajectory will continue for years to come. Cathie Wood's projections about the robotaxi market might be right, resulting in Tesla leaping ahead of the rest of the pack.
For now, though, I like the chances for Apple, Microsoft, and Alphabet. We'll know in six years, four months, and six days if I'm right.
10 stocks we like better than Apple
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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.
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*Stock Advisor returns as of August 21, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Amazon.com, Apple, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is the biggest company in the world today based on market cap. He stated, "[W]e view AI and machine learning as core fundamental technologies that are integral to virtually every product that we build." So far, the company's search revenue is holding up quite well despite the popularity of ChatGPT and other large language models (as evidenced by its impressive stock performance thus far this year).
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Apple Apple (NASDAQ: AAPL) is the biggest company in the world today based on market cap. Alphabet Some might be surprised that I'm predicting Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will be the third-largest AI stock in 2030. There is a theory that AI could instead disrupt Alphabet's Google Search business, which currently generates most of the company's revenue.
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Apple Apple (NASDAQ: AAPL) is the biggest company in the world today based on market cap. CEO Tim Cook mentioned in the second-quarter conference call that Apple has conducted research and development in generative AI and other AI technologies for years. Microsoft Only one AI stock other than Apple has a market cap of over $2 trillion.
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Apple Apple (NASDAQ: AAPL) is the biggest company in the world today based on market cap. Microsoft Only one AI stock other than Apple has a market cap of over $2 trillion. Alphabet Some might be surprised that I'm predicting Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will be the third-largest AI stock in 2030.
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14115.0
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2023-08-26 00:00:00 UTC
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5 Things for Investors to Know About Block Stock
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AAPL
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https://www.nasdaq.com/articles/5-things-for-investors-to-know-about-block-stock
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nan
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nan
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Block (NYSE: SQ), formerly known as Square, can certainly seem like a complex financial services business at first glance. There are two successful ecosystems that make up the overall company. Plus, there are some unique aspects to its financial situation.
The shares are down 80% from their peak, so you might be looking at the fintech business right now as a potential place to allocate some capital. But first, here are five important things the smartest investors know about Block stock. Let's hope this leads to a more informed decision.
1. Square: focusing on merchants
Square is the segment that the company was founded on. It went from selling a simple piece of hardware that allowed anyone to accept card payments with their smartphone to a full-service provider for merchants. Today, Square offers various point-of-sale hardware products, a suite of software tools, and different financial services that make it incredibly easy for a small business to start accepting payments as well as handle a host of other critical tasks.
In the second recent quarter, Square processed $54.2 billion in gross payment volume, up 12% year over year. Gross profit increased 18% to total $888 million. That's respectable growth, but the management team believes that Square's long-term gross profit opportunity is $120 billion, so there is a ton of room left to expand.
2. Cash App: focusing on individuals
The other successful segment within Block is Cash App, a popular personal finance app that's at the top of the charts in the Apple App Store. Cash App targets individuals, giving them the tools to handle basic financial needs, like sending money to friends, setting up direct deposit, signing up for a Visa debit card, and buying stocks and Bitcoin. Cash App had 54 million active users in the month of June, indicative of its scale. It shows potential to be a possible substitute to having a traditional bank account for consumers.
Gross profit for the Cash App division was $968 million last quarter, rising 37% year over year. The leadership team sees a $70 billion gross profit opportunity for this segment, which can be penetrated by finding ways to expand the user base, increase cash inflows, and then boost monetization.
3. Financial analysis
Investors need to take the time to understand the unique financial situation of Block. I've discussed gross profit above, instead of revenue, because it provides a more accurate picture. That's because Cash App essentially acts as an intermediary when consumers buy Bitcoin, buying the crypto asset then adding a tiny markup. In other words, only that gross profit figure is what really matters.
Moving down the income statement, key expense items include things like product development, sales and marketing, and general and administrative. That shouldn't really be surprising, as many internet-enabled businesses generally have the same cost categories. The hope for Block is that as its gross profit rises over time, it's better able to leverage its expenses to produce greater net income.
Investors should also try to gain insights into the strength of the balance sheet. As of June 30, Block had $4.7 billion of cash and cash equivalents compared to $4.1 billion of long-term debt, translating to net cash holdings of roughly $600 million.
4. International focus
Square generated 84% of its gross profit in Q2 in the U.S. Clearly, there is a huge opportunity to penetrate international markets, taking what has worked domestically and applying it to other countries. Square expanded to Spain last year (and is now in eight different countries), while Cash App is available in the U.S., U.K., and Spain.
By purchasing buy now, pay later specialist Afterpay for $29 billion in 2021, Block now has a much larger presence in Australia and New Zealand. Many suspect the company overpaid for this acquisition, so perhaps it will try to enter new markets in a more organic way in the future.
5. Valuation
Since its initial public offering in 2015, Block shares have traded at an average price-to-sales (P/S) ratio of 1.65, with the peak of more than 15 in December 2020. But because the stock has gotten crushed in the last couple of years, it currently sells for a P/S multiple of 1.71. All else equal, a lower valuation results in the potential for greater upside. So, for those who are bullish on Block, now could be one of the best times to buy shares.
10 stocks we like better than Block
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 Block 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 August 21, 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, Block, 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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Today, Square offers various point-of-sale hardware products, a suite of software tools, and different financial services that make it incredibly easy for a small business to start accepting payments as well as handle a host of other critical tasks. Cash App targets individuals, giving them the tools to handle basic financial needs, like sending money to friends, setting up direct deposit, signing up for a Visa debit card, and buying stocks and Bitcoin. The leadership team sees a $70 billion gross profit opportunity for this segment, which can be penetrated by finding ways to expand the user base, increase cash inflows, and then boost monetization.
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That's respectable growth, but the management team believes that Square's long-term gross profit opportunity is $120 billion, so there is a ton of room left to expand. Cash App: focusing on individuals The other successful segment within Block is Cash App, a popular personal finance app that's at the top of the charts in the Apple App Store. Gross profit for the Cash App division was $968 million last quarter, rising 37% year over year.
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Cash App: focusing on individuals The other successful segment within Block is Cash App, a popular personal finance app that's at the top of the charts in the Apple App Store. Cash App targets individuals, giving them the tools to handle basic financial needs, like sending money to friends, setting up direct deposit, signing up for a Visa debit card, and buying stocks and Bitcoin. As of June 30, Block had $4.7 billion of cash and cash equivalents compared to $4.1 billion of long-term debt, translating to net cash holdings of roughly $600 million.
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Square: focusing on merchants Square is the segment that the company was founded on. The hope for Block is that as its gross profit rises over time, it's better able to leverage its expenses to produce greater net income. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Block wasn't one of them!
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14116.0
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2023-08-26 00:00:00 UTC
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The 3 Best Defensive Stocks to Buy Now: August 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-best-defensive-stocks-to-buy-now%3A-august-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Defensive industries are typically looked at by investors in times of uncertainty.
Indeed, we have interest rates near 40 year highs, inflation is still high, and the inverted yield curve and other factors point to a likely recession on the horizon. Yes, we haven’t seen this expected recession materialize yet. However, there are plenty of investors looking to diversify into defensive stocks and away from aggressive growth right now.
That strategy makes sense to me. Certainly, specific large-cap tech names continue to roar higher. (What an earnings beat by Nvidia (NASDAQ:NVDA) this week, right?)
Yet, what goes up can often crash down in a much more dramatic fashion. So, for those looking for more stable and consistent returns over the next year or two, here are three great long-term defensive stocks to consider.
Coca-Cola (KO)
Source: IgorGolovniov / Shutterstock.com
First up, in the competitive beverage sector, Coca-Cola (NYSE:KO) demonstrates its strength. Its recent Q2 results surpassed predictions, with earnings-per-share at 78 cents compared to the estimated 72 cents, and sales reaching $11.97 billion, exceeding the expected $11.75 billion.
Unsurprisingly, Coca-Cola’s solid performance stands out amidst inflation worries that impacted similar consumer sectors. Demand for affordable treats, including snacks and soft drinks, remains strong. As long as this trend persists, Coca-Cola remains an attractive long-term dividend stock.
In addition, Coca-Cola is expanding and generating substantial cash, allowing for investor rewards. With a robust balance sheet, rising earnings per share, and an undervalued KO stock at $60, it offers a 3% dividend yield and $1.84 per share dividend.
A stable brand, global reach, and resilient business make Coca-Cola a strong dividend stock with potential for growth. The company’s dividend payout ratio of 74% indicates room for future increases.
Restaurant Brands (QSR)
Source: Shutterstock
The next stock is Restaurant Brands (NYSE:QSR), which continues to impress investors with strong comp growth.
In Q1 2023, the company’s consolidated comps were 10.3%, up from 7.4% in the previous year. Household favorites such as Tim Hortons, Burger King, and Popeyes saw comps of 13.8%, 10.8%, and 5.6%, compared to 8.4%, 9.9%, and -3% in the previous year. The increase was driven by improved traffic, core offerings, restaurant operations, and pricing strategies.
Also, Restaurant Brands has focused on menu innovation, digital advancements, and operational enhancements for growth. Its Reclaim the Flame plan aims to improve the guest experience and increase sales in the U.S., potentially boosting franchisee advertising fund contributions until 2028.
And so, Restaurant Brands remains my prime choice and largest portfolio position. The company’s growth potential and notable investor attention are commendable. With a dividend yield of 2.9%, it’s a stock to ponder. Few offer such defensive growth, income, and value as Restaurant Brands. Its proximity to an all-time high suggests even higher potential ahead.
Apple (AAPL)
Source: Moab Republic / Shutterstock
And finally, my third pick. Apple (NASDAQ:AAPL) has consistently attracted billionaire investors with its innovation, strong business model, and surging stock.
Renowned figures like Warren Buffett and tech-focused venture capitalists recognize its value. Beyond the iconic iPhone, Apple’s diversified products and services drive increasing cash flows. Apple sets itself apart with its exceptional customer loyalty, allowing premium pricing and continued growth.
AAPL stock surged 45.51% year to date with steady growth since 2013. Despite a mature consumer electronics market projected at 2.32% CAGR from 2023 to 2028, Apple’s Q3 showed resilience. Quarterly revenue was $81.8 billion, a 1% year-over-year decline, but EPS grew 5% year over year to $1.26. With $26 billion in operating cash flow, Apple returned over $24 billion to shareholders.
AAPL stock currently trades around $178 per share, down around 10% from its all-time high. Despite inflation hurdles, Apple advances with new products, AI, and digital services. With a quarterly dividend of $0.24 and yield of 0.54%, it’s a solid long-term choice. Consider accumulating during dips.
On the date of publication, Chris MacDonald has a LONG position in KO, QSR, 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.
More From InvestorPlace
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The post The 3 Best Defensive Stocks to Buy Now: August 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: Moab Republic / Shutterstock And finally, my third pick. Apple (NASDAQ:AAPL) has consistently attracted billionaire investors with its innovation, strong business model, and surging stock. AAPL stock surged 45.51% year to date with steady growth since 2013.
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Apple (NASDAQ:AAPL) has consistently attracted billionaire investors with its innovation, strong business model, and surging stock. Apple (AAPL) Source: Moab Republic / Shutterstock And finally, my third pick. AAPL stock surged 45.51% year to date with steady growth since 2013.
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Apple (AAPL) Source: Moab Republic / Shutterstock And finally, my third pick. Apple (NASDAQ:AAPL) has consistently attracted billionaire investors with its innovation, strong business model, and surging stock. AAPL stock surged 45.51% year to date with steady growth since 2013.
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Apple (AAPL) Source: Moab Republic / Shutterstock And finally, my third pick. Apple (NASDAQ:AAPL) has consistently attracted billionaire investors with its innovation, strong business model, and surging stock. AAPL stock surged 45.51% year to date with steady growth since 2013.
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14117.0
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2023-08-25 00:00:00 UTC
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After Hours Most Active for Aug 25, 2023 : AAPL, VHNA, QQQ, JNJ, MSFT, TNET, CSX, SWN, GOOG, PFE, NEE, XOM
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-25-2023-%3A-aapl-vhna-qqq-jnj-msft-tnet-csx-swn-goog-pfe-nee
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -7.75 to 14,934.08. The total After hours volume is currently 60,938,515 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is -0.1 at $178.51, with 4,158,333 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.38. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Vahanna Tech Edge Acquisition I Corp. (VHNA) is +1.13 at $10.78, with 2,686,719 shares traded.
Invesco QQQ Trust, Series 1 (QQQ) is -0.03 at $363.99, with 2,155,255 shares traded. This represents a 43.16% increase from its 52 Week Low.
Johnson & Johnson (JNJ) is +0.16 at $166.41, with 1,768,190 shares traded. JNJ's current last sale is 90.44% of the target price of $184.
Microsoft Corporation (MSFT) is -0.28 at $322.70, with 1,758,809 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $2.65. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
TriNet Group, Inc. (TNET) is unchanged at $106.06, with 1,657,714 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 $1.2. TNET's current last sale is 93.44% of the target price of $113.5.
CSX Corporation (CSX) is unchanged at $30.91, with 1,500,775 shares traded. As reported by Zacks, the current mean recommendation for CSX is in the "buy range".
Southwestern Energy Company (SWN) is unchanged at $6.47, with 1,331,729 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.16. SWN's current last sale is 80.88% of the target price of $8.
Alphabet Inc. (GOOG) is -0.11 at $130.58, with 1,250,516 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.45. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Pfizer, Inc. (PFE) is +0.01 at $36.39, with 1,125,794 shares traded. PFE's current last sale is 81.78% of the target price of $44.5.
NextEra Energy, Inc. (NEE) is unchanged at $67.96, with 898,026 shares traded. As reported by Zacks, the current mean recommendation for NEE is in the "buy range".
Exxon Mobil Corporation (XOM) is -0.14 at $108.11, with 892,337 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $2.09. XOM's current last sale is 86.49% of the target price of $125.
The views and 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 -0.1 at $178.51, with 4,158,333 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 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.1 at $178.51, with 4,158,333 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 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.1 at $178.51, with 4,158,333 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 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.1 at $178.51, with 4,158,333 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -7.75 to 14,934.08.
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14118.0
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2023-08-25 00:00:00 UTC
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Warren Buffett Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-detailed-fundamental-analysis-aapl-10
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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14119.0
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2023-08-25 00:00:00 UTC
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SPY, GGLL: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/spy-ggll%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 19,250,000 units were destroyed, or a 2.1% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.3%, and Microsoft is higher by about 0.4%.
And on a percentage change basis, the ETF with the biggest outflow was the GGLL ETF, which lost 375,000 of its units, representing a 30.0% decline in outstanding units compared to the week prior.
VIDEO: SPY, GGLL: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is up about 0.3%, and Microsoft is higher by about 0.4%. And on a percentage change basis, the ETF with the biggest outflow was the GGLL ETF, which lost 375,000 of its units, representing a 30.0% decline in outstanding units compared to the week prior. VIDEO: SPY, GGLL: Big ETF Outflows The views and 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 19,250,000 units were destroyed, or a 2.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the GGLL ETF, which lost 375,000 of its units, representing a 30.0% decline in outstanding units compared to the week prior. VIDEO: SPY, GGLL: Big ETF Outflows The views and 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 19,250,000 units were destroyed, or a 2.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the GGLL ETF, which lost 375,000 of its units, representing a 30.0% decline in outstanding units compared to the week prior. VIDEO: SPY, GGLL: Big ETF Outflows The views and 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 19,250,000 units were destroyed, or a 2.1% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.3%, and Microsoft is higher by about 0.4%. And on a percentage change basis, the ETF with the biggest outflow was the GGLL ETF, which lost 375,000 of its units, representing a 30.0% decline in outstanding units compared to the week prior.
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14120.0
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2023-08-25 00:00:00 UTC
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IVV, AAPL, MSFT, AMZN: ETF Inflow Alert
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AAPL
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https://www.nasdaq.com/articles/ivv-aapl-msft-amzn%3A-etf-inflow-alert-0
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $197.7 million dollar inflow -- that's a 0.1% increase week over week in outstanding units (from 779,650,000 to 780,100,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.3%, Microsoft Corporation (Symbol: MSFT) is up about 0.4%, and Amazon.com Inc (Symbol: AMZN) is higher by about 0.1%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $461.88 as the 52 week high point — that compares with a last trade of $439.99. 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:
Cheap Materials Stocks
Institutional Holders of ENCO
Top Ten Hedge Funds Holding PHGE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.3%, Microsoft Corporation (Symbol: MSFT) is up about 0.4%, and Amazon.com Inc (Symbol: AMZN) is higher by about 0.1%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.3%, Microsoft Corporation (Symbol: MSFT) is up about 0.4%, and Amazon.com Inc (Symbol: AMZN) is higher by about 0.1%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $461.88 as the 52 week high point — that compares with a last trade of $439.99. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.3%, Microsoft Corporation (Symbol: MSFT) is up about 0.4%, and Amazon.com Inc (Symbol: AMZN) is higher by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $197.7 million dollar inflow -- that's a 0.1% increase week over week in outstanding units (from 779,650,000 to 780,100,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $461.88 as the 52 week high point — that compares with a last trade of $439.99.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.3%, Microsoft Corporation (Symbol: MSFT) is up about 0.4%, and Amazon.com Inc (Symbol: AMZN) is higher by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $197.7 million dollar inflow -- that's a 0.1% increase week over week in outstanding units (from 779,650,000 to 780,100,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $461.88 as the 52 week high point — that compares with a last trade of $439.99.
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14121.0
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2023-08-25 00:00:00 UTC
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Don't Fear Higher Rates: Tech ETFs to Rule on Nvidia & Allies
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AAPL
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https://www.nasdaq.com/articles/dont-fear-higher-rates%3A-tech-etfs-to-rule-on-nvidia-allies
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nan
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nan
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After a great start to 2023, Wall Street started to waver in the second half as the inflation is still hot and rates are likely to remain higher for longer. Though the initial part of this week was favorable for Wall Street, stocks again fell on Aug 24 as the initial comments from Fed officials leaning toward a hawkish outlook in an effort to tame inflation (read: More Rate Hikes in Cards On Sticky Inflation? ETFs to Buy).
Currently, there is an 80.5% likelihood that the Fed will maintain its benchmark interest rate within the 5.25% to 5.50% range during the upcoming September meeting, according to the CME FedWatch Tool. September rate hike or not, one thing is evident from the latest Fed minutes that interest rates are likely stay elevated for a longer period time. No rate cuts are expected in the near term.
Growth stocks that the tech-heavy Nasdaq primarily hold underperform in a rising rate environment. Hence, the index-100 ETF Invesco QQQ Trust QQQ slumped 2.1% on Aug 24 while the S&P 500 lost 1.4%.
Is the Worry for Higher Rates Exaggerated?
We believe that no matter if the Fed hikes, pauses, or cuts, tech investing will be in fine fettle this year due to the AI boom and the perception that the era of rock-bottom rates is over. Both tech and higher rates are the new normal, and investors are becoming accustomed to it.
2023’s AI Frenzy Is Not Same As 2000’s Tech Bubble
Nvidia's blockbuster earnings once again proved that the AI boom is here to stay. However, the dramatic rise in big tech companies won't come to an end like what the industry saw after the tech boom of the 1990s, according to some on Wall Street, as quoted on Yahoo.
Jefferies equity analyst Mark Lipacis believes that 1990s saw companies invest into a Field of Dreams-esque. But AI transformation is hard-core reality. Per Nvidia founder & CEO Jensen Huang, demand for our data center platform for AI is huge and broad-based. Nvidia’s demand visibility extends well into 2024 and its supply for the next few quarters remains on an uptrend.
According to Huang's estimate, the value of data centers within cloud and enterprise software systems is around $1 trillion. He noted that capital expenditure in these sectors is moving towards developing accelerated computing and generative AI capabilities, amounting to only $250 billion as yet. This expenditure highlights that the transition is still ongoing.
Nvidia & Its Partners to Keep Tech Space Afloat Despite Higher Rates
During recent earnings calls, Big Tech giants Amazon (AMZN) and Alphabet GOOGL indicated that Nvidia GPUs are powering some of their AI projects. Meta said generative AI is holding users on the app longer and generating additional revenue.
Some of the big names that experts say are likely to win with Nvidia include Apple AAPL, Amazon, Meta, Microsoft MSFT, Salesforce (CRM), and IBM (IBM), Anat Alon-Beck, a professor at Case Western Reserve University School of Law, told Yahoo Finance.
Amazon and Microsoft have existing cloud partnerships with Nvidia, while Meta has a consumer-focused partnership with the chip giant. Snowflake SNOW and VMware VMW also have relatively new enterprise partnerships, per the Yahoo article.
ETFs in Focus
Against this backdrop, below we highlight a few tech ETFs that could be up for gains in the ongoing AI transition process.
Global X Robotics & Artificial Intelligence ETF BOTZ – Nvidia takes 14.66% of the fund
Consumer Discretionary Select Sector SPDR Fund XLY – Amazon takes 24.4% of the fund
Communication Services Select Sector SPDR Fund XLC – Meta & Alphabet combined take 35% of the fund
Pacer Data and Digital Revolution ETF TRFK – Vmware takes 5% of the fund
Technology Select Sector SPDR Fund XLK – Apple and Microsoft combined take about 45% of the fund
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
VMware, Inc. (VMW) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Snowflake Inc. (SNOW) : Free Stock Analysis Report
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports
Pacer Data and Digital Revolution ETF (TRFK): 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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Some of the big names that experts say are likely to win with Nvidia include Apple AAPL, Amazon, Meta, Microsoft MSFT, Salesforce (CRM), and IBM (IBM), Anat Alon-Beck, a professor at Case Western Reserve University School of Law, told Yahoo Finance. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report VMware, Inc. (VMW) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports To read this article on Zacks.com click here. Currently, there is an 80.5% likelihood that the Fed will maintain its benchmark interest rate within the 5.25% to 5.50% range during the upcoming September meeting, according to the CME FedWatch Tool.
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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 Microsoft Corporation (MSFT) : Free Stock Analysis Report VMware, Inc. (VMW) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports To read this article on Zacks.com click here. Some of the big names that experts say are likely to win with Nvidia include Apple AAPL, Amazon, Meta, Microsoft MSFT, Salesforce (CRM), and IBM (IBM), Anat Alon-Beck, a professor at Case Western Reserve University School of Law, told Yahoo Finance. Nvidia & Its Partners to Keep Tech Space Afloat Despite Higher Rates During recent earnings calls, Big Tech giants Amazon (AMZN) and Alphabet GOOGL indicated that Nvidia GPUs are powering some of their AI projects.
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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 Microsoft Corporation (MSFT) : Free Stock Analysis Report VMware, Inc. (VMW) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports To read this article on Zacks.com click here. Some of the big names that experts say are likely to win with Nvidia include Apple AAPL, Amazon, Meta, Microsoft MSFT, Salesforce (CRM), and IBM (IBM), Anat Alon-Beck, a professor at Case Western Reserve University School of Law, told Yahoo Finance. Nvidia & Its Partners to Keep Tech Space Afloat Despite Higher Rates During recent earnings calls, Big Tech giants Amazon (AMZN) and Alphabet GOOGL indicated that Nvidia GPUs are powering some of their AI projects.
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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 Microsoft Corporation (MSFT) : Free Stock Analysis Report VMware, Inc. (VMW) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports To read this article on Zacks.com click here. Some of the big names that experts say are likely to win with Nvidia include Apple AAPL, Amazon, Meta, Microsoft MSFT, Salesforce (CRM), and IBM (IBM), Anat Alon-Beck, a professor at Case Western Reserve University School of Law, told Yahoo Finance. Nvidia & Its Partners to Keep Tech Space Afloat Despite Higher Rates During recent earnings calls, Big Tech giants Amazon (AMZN) and Alphabet GOOGL indicated that Nvidia GPUs are powering some of their AI projects.
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14122.0
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2023-08-25 00:00:00 UTC
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Apple Stock: Buy the 10% Dip Because the Future Looks Bright
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-buy-the-10-dip-because-the-future-looks-bright
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nan
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nan
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It's been a forgettable August for shares of Apple (AAPL) , which got hit with a very swift correction after earnings. Though the company reported solid fiscal third-quarter results, the bar was set pretty high, as is expected from a company that soared to a new high going into a big reveal.
Amid the slip off its highs, various Wall Street analysts have stepped forward with some pretty positive things to say about the iPhone maker ahead of its big September keynote. Despite this, the stock has struggled to sustain a rebound. In Thursday's turbulent session, AAPL shed 2.62%, erasing most of Wednesday's gains.
www.barchart.com
Now, all eyes are on the U.S. Federal Reserve, with Powell's Jackson Hole address taking place today. Technology stocks have been caught up in the chaos as the Fed raised rates to multi-decade highs to curb hot inflation.
But even if rates steadily creep higher, it's hard to keep profoundly profitable mega-cap technology names like Apple in the penalty box for too long a duration.
Justifying Apple Stock's Premium Multiple
The first-half rally in Big Tech may have set off red flags for some. And though 29.6 times trailing price-to-earnings (P/E) may be on the expensive side for Apple, I do think the skeptics will quickly realize that Apple is worth every penny of its premium price tag.
Notably, the rise of Apple's services business has contributed to a lot of multiple expansion over the years. The latest quarter was yet another period of impressive growth in services. Still, investors seem to be over the services story. While I do think Apple has more room to run here as it looks for new ways to improve the lives of its many users, it's clear that the bar is set high - so Apple needs to work some of its innovative magic to propel the share price even higher.
Indeed, it's time for the "E" in P/E to catch up to the "P." Some analysts, like those at Wedbush, think the coming iPhone 15 could be the product that helps give Apple a jolt. It has been a while since we've had an iPhone super-cycle. Whether or not the iPhone 15 entices the masses to upgrade remains the billion-dollar question.
Either way, Apple has a lot of exciting stuff coming over the next year - including its spatial computer in the Apple Vision Pro, which many investors and analysts seem to have dismissed or discounted in recent weeks.
Has spatial computing (or the metaverse) failed to launch? So far, it's hard to argue the point that virtual reality and augmented reality headsets have struggled to get off the tarmac. However, all it takes is one "ChatGPT" moment for the excitement to go from zero to one hundred.
When that moment happens is the big question. I think it's very likely to happen at some point over the next 10 years. Now, that's a long time to wait for a tech trend to take off. However, with Apple, you're getting a pretty great business that's able to keep raking in considerable cash flows while you wait for spatial computing's big moment.
Young Consumers to Propel Apple's Ecosystem Over Time
In the U.S. market, teen iPhone ownership is at a jarring 87%. That's more than doubled since 2012. Clearly, Apple is incredibly cool among today's young people.
These loyal, young customers are unlikely to switch to an Android product, given their distaste for those dreaded "green bubbles." Further, it is tough to break out of the Apple ecosystem once you've been drawn in.
In any case, Apple has hit the spot with younger consumers. And it's these consumers who will be sticking with Apple and its lineup of products once they grow up and start earning the big bucks. Undoubtedly, the Lifetime Value (LTV) of such consumers has the potential to be incredibly high. Perhaps it's this younger audience that will be quick to embrace Apple's spatial computer, Apple Vision Pro.
In the meantime, iPhone users are more likely to try other products under the Apple umbrella (think AirPods, iPad, Mac, and Apple Watch) while using various services, like iCloud, Apple Music, and Apple News. Of course, they'll also presumably be buyers of many iPhones over the decades.
For now, it seems like Apple users aren't locked into the ecosystem against their will. They just like how it is in the ecosystem. And for these users, the grass is definitely greener on Apple's side of the fence.
The Bottom Line
Apple stock's correction seems mostly due to valuation concerns. Primarily, investors want to see robust growth in the iPhone. With the iPhone 15, I think growth will re-accelerate, even if macro headwinds intensify.
Meanwhile, a majority of investors are overweighting the latest quarter (which was fine, by the way) and are losing sight of the long-term story, which still looks as good as ever. Recently, Morgan Stanley (MS) noted that the stock is “under-owned" among the large-cap tech stocks on its radar. To me, Apple's a company that's meant to be “over-owned!" The company's future looks bright, with young consumers standing by its side and new innovations coming to an Apple Store near you.
More Stock Market News from Barchart
Stocks Tumble on a Sell-Off in Mega-Cap Tech Stocks 3 Energy Stocks to Add to Your Dividend Portfolio 5 Proven Ways to Cut Travel Costs in Retirement A Top Dividend Stock to Buy on the Dip
On the date of publication, Joey Frenette had a position in: AAPL . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's been a forgettable August for shares of Apple (AAPL) , which got hit with a very swift correction after earnings. In Thursday's turbulent session, AAPL shed 2.62%, erasing most of Wednesday's gains. More Stock Market News from Barchart Stocks Tumble on a Sell-Off in Mega-Cap Tech Stocks 3 Energy Stocks to Add to Your Dividend Portfolio 5 Proven Ways to Cut Travel Costs in Retirement A Top Dividend Stock to Buy on the Dip On the date of publication, Joey Frenette had a position in: AAPL .
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It's been a forgettable August for shares of Apple (AAPL) , which got hit with a very swift correction after earnings. In Thursday's turbulent session, AAPL shed 2.62%, erasing most of Wednesday's gains. More Stock Market News from Barchart Stocks Tumble on a Sell-Off in Mega-Cap Tech Stocks 3 Energy Stocks to Add to Your Dividend Portfolio 5 Proven Ways to Cut Travel Costs in Retirement A Top Dividend Stock to Buy on the Dip On the date of publication, Joey Frenette had a position in: AAPL .
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More Stock Market News from Barchart Stocks Tumble on a Sell-Off in Mega-Cap Tech Stocks 3 Energy Stocks to Add to Your Dividend Portfolio 5 Proven Ways to Cut Travel Costs in Retirement A Top Dividend Stock to Buy on the Dip On the date of publication, Joey Frenette had a position in: AAPL . It's been a forgettable August for shares of Apple (AAPL) , which got hit with a very swift correction after earnings. In Thursday's turbulent session, AAPL shed 2.62%, erasing most of Wednesday's gains.
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It's been a forgettable August for shares of Apple (AAPL) , which got hit with a very swift correction after earnings. In Thursday's turbulent session, AAPL shed 2.62%, erasing most of Wednesday's gains. More Stock Market News from Barchart Stocks Tumble on a Sell-Off in Mega-Cap Tech Stocks 3 Energy Stocks to Add to Your Dividend Portfolio 5 Proven Ways to Cut Travel Costs in Retirement A Top Dividend Stock to Buy on the Dip On the date of publication, Joey Frenette had a position in: AAPL .
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14123.0
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2023-08-25 00:00:00 UTC
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Noteworthy Friday Option Activity: ENPH, GS, AAPL
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AAPL
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-enph-gs-aapl
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Enphase Energy Inc. (Symbol: ENPH), where a total of 56,108 contracts have traded so far, representing approximately 5.6 million underlying shares. That amounts to about 135% of ENPH's average daily trading volume over the past month of 4.2 million shares. Particularly high volume was seen for the $123 strike call option expiring August 25, 2023, with 2,322 contracts trading so far today, representing approximately 232,200 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $123 strike highlighted in orange:
Goldman Sachs Group Inc (Symbol: GS) options are showing a volume of 22,071 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 123.9% of GS's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $325 strike call option expiring August 25, 2023, with 1,989 contracts trading so far today, representing approximately 198,900 underlying shares of GS. Below is a chart showing GS's trailing twelve month trading history, with the $325 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) options are showing a volume of 598,562 contracts thus far today. That number of contracts represents approximately 59.9 million underlying shares, working out to a sizeable 105% of AAPL's average daily trading volume over the past month, of 57.0 million shares. Especially high volume was seen for the $175 strike put option expiring August 25, 2023, with 57,740 contracts trading so far today, representing approximately 5.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange:
For the various different available expirations for ENPH options, GS options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
TIO shares outstanding history
CCXX YTD Return
DISH Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $175 strike put option expiring August 25, 2023, with 57,740 contracts trading so far today, representing approximately 5.8 million underlying shares of AAPL. Below is a chart showing GS's trailing twelve month trading history, with the $325 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 598,562 contracts thus far today. That number of contracts represents approximately 59.9 million underlying shares, working out to a sizeable 105% of AAPL's average daily trading volume over the past month, of 57.0 million shares.
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Below is a chart showing GS's trailing twelve month trading history, with the $325 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 598,562 contracts thus far today. That number of contracts represents approximately 59.9 million underlying shares, working out to a sizeable 105% of AAPL's average daily trading volume over the past month, of 57.0 million shares. Especially high volume was seen for the $175 strike put option expiring August 25, 2023, with 57,740 contracts trading so far today, representing approximately 5.8 million underlying shares of AAPL.
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That number of contracts represents approximately 59.9 million underlying shares, working out to a sizeable 105% of AAPL's average daily trading volume over the past month, of 57.0 million shares. Below is a chart showing GS's trailing twelve month trading history, with the $325 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 598,562 contracts thus far today. Especially high volume was seen for the $175 strike put option expiring August 25, 2023, with 57,740 contracts trading so far today, representing approximately 5.8 million underlying shares of AAPL.
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Especially high volume was seen for the $175 strike put option expiring August 25, 2023, with 57,740 contracts trading so far today, representing approximately 5.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: For the various different available expirations for ENPH options, GS options, or AAPL options, visit StockOptionsChannel.com. Below is a chart showing GS's trailing twelve month trading history, with the $325 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 598,562 contracts thus far today.
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14124.0
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2023-08-25 00:00:00 UTC
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Some Overlooked Names Are Supporting QQQ
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AAPL
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https://www.nasdaq.com/articles/some-overlooked-names-are-supporting-qqq
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nan
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nan
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When investors think of the stocks propelling the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), they usually think of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), among others.
That trio and several other marquee consumer-tech names are propelling the Invesco ETFs this year. But in recent months, some of the ETFs’ often overlooked components are getting in on the act.
Interestingly, of the Nasdaq Composite’s top 10 performers from Memorial Day through August 21, just two – Nvidia and Tesla (NASDAQ: TSLA) – can be considered “marquee” QQQ and QQQM holdings. Should those names and other large, widely followed QQQ and QQQM holdings hold steady through the remainder of 2023, upside contributions from smaller names could prove pivotal.
Remember These QQQ, QQQM Holdings
Old Dominion Freight Line (NASDAQ: ODFL), which is one of the 10 industrial stocks residing in QQQ and QQQM, has been the best-performing Nasdaq Composite stock since late May.
“We expect Old Dominion to continue gaining share over the next cycle. But with competition improving service, we expect volume outperformance to be a bit less than in years past,” noted Barclays analyst Brandon Oglenski in a recent report. “The company has also become one of the more expensive LTL [less-than-truckload] carriers for shippers to utilize, suggesting marginal pressure to price ahead of the broader industry. We believe ODFL is deserving of its premium valuation and generally see shares as fairly valued.”
Oil services giant Baker Hughes (NASDAQ: BKR) also ranks as one of the Nasdaq Composite leaders since Memorial Day. That stock usually isn’t associated with QQQ and QQQM. But it is one of the two energy equities residing in the ETFs. It’s a small component in the ETFs, but it could be a modest contributor to the upside for the funds as analysts are bullish on the name.
“Baker Hughes beat expectations for its second quarter on both lines when reporting last month. The company also raised its quarterly dividend by 1 cent to 20 cents,” reported Alex Harring for CNBC.
Beyond Nvidia, just one other tech stock ranks among the top-10 Nasdaq Composite performers since Memorial Day, according to CNBC. Adobe (NASDAQ: ADBE) takes that honor and that’s notable for QQQ and QQQM investors because shares of the software maker account for 2.04% of the ETFs’ portfolios.
Amgen (NASDAQ: AMGN), which is the ETFs’ biggest healthcare holding, has also been a Nasdaq Composite leader in recent months.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When investors think of the stocks propelling the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), they usually think of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), among others. But with competition improving service, we expect volume outperformance to be a bit less than in years past,” noted Barclays analyst Brandon Oglenski in a recent report. “The company has also become one of the more expensive LTL [less-than-truckload] carriers for shippers to utilize, suggesting marginal pressure to price ahead of the broader industry.
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When investors think of the stocks propelling the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), they usually think of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), among others. Remember These QQQ, QQQM Holdings Old Dominion Freight Line (NASDAQ: ODFL), which is one of the 10 industrial stocks residing in QQQ and QQQM, has been the best-performing Nasdaq Composite stock since late May. Beyond Nvidia, just one other tech stock ranks among the top-10 Nasdaq Composite performers since Memorial Day, according to CNBC.
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When investors think of the stocks propelling the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), they usually think of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), among others. Interestingly, of the Nasdaq Composite’s top 10 performers from Memorial Day through August 21, just two – Nvidia and Tesla (NASDAQ: TSLA) – can be considered “marquee” QQQ and QQQM holdings. Remember These QQQ, QQQM Holdings Old Dominion Freight Line (NASDAQ: ODFL), which is one of the 10 industrial stocks residing in QQQ and QQQM, has been the best-performing Nasdaq Composite stock since late May.
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When investors think of the stocks propelling the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), they usually think of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), among others. Remember These QQQ, QQQM Holdings Old Dominion Freight Line (NASDAQ: ODFL), which is one of the 10 industrial stocks residing in QQQ and QQQM, has been the best-performing Nasdaq Composite stock since late May. “Baker Hughes beat expectations for its second quarter on both lines when reporting last month.
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2023-08-25 00:00:00 UTC
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VettaFi Voices On: Investing in Artificial Intelligence
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https://www.nasdaq.com/articles/vettafi-voices-on%3A-investing-in-artificial-intelligence
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nan
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nan
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With the VettaFi Artificial Intelligence symposium coming up next week, it seems logical for the VettaFi Voices to tackle the topic. Is AI going to be a major part of our lives going forward? Is it worthy of being classified as a megatrend? What are the best ways to access it as an investment? What are investors overlooking about AI as an investment theme?
Roxanna Islam Swan, associate director of research: I think AI is definitely worthy of being considered a megatrend. When you're looking at megatrend investing or thematic investing, I think there's often a lot of hype and talk about growth. Some of that is justified and some is overblown.
Investors should ask themselves a few questions including: Is this just hype (i.e., is this a short term trend driven by excitement in stock prices) or is there a real use case? Are there or will there be enough players in this area to make the idea investable as a theme or is it more appropriate to support a couple of stocks?
For the first question -- yes, there's a lot of use cases out there. AI is basically programming intelligence that mimics human intelligence. And almost everything we do revolves around technology so in a sense could potentially have AI involved. When we turn on our phones and computers we get personalized recommendations for shopping and search engine suggestions. A lot of newer cars have self-driving features where they can read speed limit signs and accelerate and brake when appropriate. I went on a 12-hour road trip in my new car a few weeks ago and barely had to do anything! These are all just personal uses cases. But those multiply when you think about industrial use cases and how AI affects the way businesses work.
Getting Exposure To Artificial Intelligence
And for the second question -- you can get exposure to AI using megacap stocks like Alphabet, Amazon, Microsoft, Nvidia, etc. However, that applies to almost every disruptive tech theme. You also have more specifically focused AI companies out there like C3.ai (AI) and Palantir Technologies (PLTR). There is an investable universe out there. I think a lot of investors do have a favorite stock or two.
A lot of investors may recognize that AI is an important theme, but it's difficult to pick stocks especially since it's a relatively newer industry, which can mean: 1) stocks are not all well-known and can be difficult to research, 2) few significant players with no clear market leaders, and 3) too many new entrants and/or fast exits to keep up with. That's when it's easier to look at an ETF.
And that could be a broader AI ETF like ROBO Global Artificial Intelligence ETF (THNQ) or the Global X Artificial Intelligence & Technology ETF (AIQ). Or it could also be one of the ETFs more focused on AI and robotics (not always the same thing) like the IRBO or the First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT). Or maybe even an EV/autonomous vehicle ETF like the First Trust S-Network Future Vehicles & Technology ETF (CARZ), the iShares Self-driving EV & Tech ETF (IDRV) or the Global X Autonomous & Electric Vehicles ETF (DRIV).
Picking the Winners
Dave Nadig, financial futurist: The issue with AI is the same issue with most transformational technologies. It's extraordinarily difficult to pick long-term, pure-play winners. Most of the economics generally roll up to entrenched players with enormous amounts of capital. That's why if you look at THNQ, you find NVIDIA (NVDA), Microsoft (MSFT), Alphabet (GOOGL), and so on.
So what are people missing? Likely the more downstream use cases where the real value will be captured. For example: sure, Nvidia makes in-demand chips and just crushed earnings. But that's now pretty well baked into prices. At the same time, I believe the next big advances in AI are all going to be software, IP and interfacing with systems.
While yes, it's an exciting time, the real power of this hockey-stick moment we’re at in AI is how it's going to transform things like retail (Been to an AI MacDonalds yet? It's pretty wild!) or logistics. As annoying as it is, all those earnings calls we're hearing where every company mentions AI 200 times -- that's actually important. If I was an analyst covering, say, Schlumberger, or Dupont, or Caterpillar, you can bet I'd be grilling management about how AI is going to impact their business. Because regardless of the business, it will.
Pure plays are hard to access and often become bubble valued. The bigger impacts are likely downstream, and the question should permeate the analysis of any company in 2023.
(This is, incidently, part of why I'm so excited to chat with Prof. Wyatt Newman of Case Western next week about how AI is really interfacing with the control systems in robotics. That's where the rubber meets the road.)
Envisioning the Future
Islam: Dave, I definitely agree about AI & logistics. That was a huge thing back when I was working on logistics stocks, especially when it came to warehousing. It was more about robotics a few years ago, but now it's AI too. Funny how such an old-fashioned industry has now transformed into something futuristic.
I think it's really hard to envision where any sort of technology can be in a few years. It's usually unfathomable. Remember how we went from only landlines to comically large cell phones to handheld simple cell phones? Now we all have touchscreen phones. Everything has a touch screen interface now -- even refrigerators. I don't think a lot of people outside of the industry knew that was going to happen and be adapted so widely. I think it's hard to envision just how impactful a technological change can be in a only a few years outside of what you hear from company management on earnings calls or investor days.
Artificial Intelligence Already Ubiquitous
Heather Bell, managing editor: I wonder if the average person understands how thoroughly AI is already woven into the fabric of our lives. At the self-checkout at the grocery store, the scanner can recognize different produce items based on their appearance rather than a barcode. If you have an iPhone, you may be talking to Siri a lot or using the facial recognition capabilities to sign into different apps. If you use any streaming services, AI helps determine the music or movies that Spotify and Netflix recommend to you. You mentioned self-driving cars, Roxanna and as you noted, even regular cars have AI-related functions like self-parking.
I think given how ubiquitous AI is, investors definitely need exposure to it. Like you said, large-cap stocks like Amazon and Nvidia offer exposure. You also mentioned how AI-focused companies are hard to research but that there are existing ETFs that already take care of that. I do wonder how much you need to know about AI to choose between those funds.
Different Types of AI ETFs
Tom Lydon, vice chairman: AI-related ETFs come in a variety of disciplines that can be helpful for investors and advisors looking to participate in the AI revolution.
First, there are ETFs that focus on companies that are embracing AI to help their efficiencies and profitability. Obvious companies like Amazon, Google and Apple (AAPL) fall into this category, but AI is used and emphasized differently at each company. It's important to understanding the direct impact to the company. It's also important to under stand how the weighting allocation of each company in the ETF will impact the ultimate performance.
Next, there are ETFs that focus on companies who have identified AI as their core business. There are a number of growing businesses in this category. However, the overall market capitalizations of these companies are in the early stages.
Then, there are ETFs that use AI driven strategies to determine what companies to buy, how much to allocate and when to sell. These active strategies can take advantage of anomalies in the market that the average investor may not see.
Finally, there will be an ongoing debate about whether index-based AI strategies are better than active AI strategies. There is plenty of ETF choices on both sides. All of these will be covered in detail on the Aug. 30 AI Symposium.
Join VettaFi for an AI Symposium on August 30 at 11:00 AM ET and hear from thought leaders and experts about how AI will transform the way investing works. Register here.
For more news, information, and strategy, visit the Artificial Intelligence 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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Obvious companies like Amazon, Google and Apple (AAPL) fall into this category, but AI is used and emphasized differently at each company. Investors should ask themselves a few questions including: Is this just hype (i.e., is this a short term trend driven by excitement in stock prices) or is there a real use case? (This is, incidently, part of why I'm so excited to chat with Prof. Wyatt Newman of Case Western next week about how AI is really interfacing with the control systems in robotics.
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Obvious companies like Amazon, Google and Apple (AAPL) fall into this category, but AI is used and emphasized differently at each company. And that could be a broader AI ETF like ROBO Global Artificial Intelligence ETF (THNQ) or the Global X Artificial Intelligence & Technology ETF (AIQ). Or it could also be one of the ETFs more focused on AI and robotics (not always the same thing) like the IRBO or the First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT).
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Obvious companies like Amazon, Google and Apple (AAPL) fall into this category, but AI is used and emphasized differently at each company. A lot of investors may recognize that AI is an important theme, but it's difficult to pick stocks especially since it's a relatively newer industry, which can mean: 1) stocks are not all well-known and can be difficult to research, 2) few significant players with no clear market leaders, and 3) too many new entrants and/or fast exits to keep up with. And that could be a broader AI ETF like ROBO Global Artificial Intelligence ETF (THNQ) or the Global X Artificial Intelligence & Technology ETF (AIQ).
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Obvious companies like Amazon, Google and Apple (AAPL) fall into this category, but AI is used and emphasized differently at each company. And that could be a broader AI ETF like ROBO Global Artificial Intelligence ETF (THNQ) or the Global X Artificial Intelligence & Technology ETF (AIQ). I think it's hard to envision just how impactful a technological change can be in a only a few years outside of what you hear from company management on earnings calls or investor days.
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2023-08-25 00:00:00 UTC
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3 Millionaire-Maker Metaverse Stocks to Hold Through Thick and Thin
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https://www.nasdaq.com/articles/3-millionaire-maker-metaverse-stocks-to-hold-through-thick-and-thin
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There’s a good reason you shouldn’t give up on the growth potential of metaverse stocks. Despite failing to meet its grand ambition of everyone plugged into virtual worlds using headsets, it’s arguably unfolding before our eyes. Everything from cryptocurrencies to virtual concert tickets are already cementing the foundation for the metaverse to unfold before our eyes. In other words, it’s an emergent, rather than normative phenomenon, similar to how the internet didn’t revolutionize commerce or information sharing overnight but is undoubtedly one of society’s most disruptive inventions today.
The final destination of how we may interact with the metaverse and how it looks like may differ, but the social and technological trends for realizing it are firmly in play. The companies leading to its unfolding will surely play a greater role in our lives as time moves forward, particularly with Generation Z and beyond.
So here are the best metaverse stocks to hold on to to take advantage of this transformative cycle.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
Nvidia (NASDAQ:NVDA) is a leading force in the metaverse with its GPUs and cutting-edge AI technology. The company’s Omniverse platform is a sandbox for metaverse applications, fostering innovation across enterprises. Nvidia’s initiatives and technology make it a key player in the emerging metaverse landscape, offering substantial long-term growth potential.
While NVDA has perhaps been one of the most popular AI and metaverse stocks this year, having reached a $1 trillion market cap and beyond, there’s still plenty of fuel left in the tank for it to soar to greater heights. For one, the company has been in a massive rally and support channel since the start of this year. It has kept above its secular support zones despite recent pullbacks on behalf of bears, and enthusiasm for this company doesn’t seem to be running dry.
Wall Street has a price target of $515.86 for the company, representing a considerable upside. Therefore, NVDA stock may fill a hole in an investor’s portfolio if they’re after one of those metaverse stocks to buy as well as an AI growth option.
Roblox (RBLX)
Source: Miguel Lagoa / Shutterstock.com
Roblox (NYSE:RBLX) is more than just a game; it’s a robust content creation tool that empowers users to build, share and monetize their creations. With a broad user base and strong financial performance, including a 22% year-over-year increase in daily active users, Roblox is positioned to capitalize on the growing interest in the metaverse.
Despite the rich valuations of many tech and metaverse stocks, there’s a buying opportunity for investors to scoop up undervalued RBLX shares.
Roblox’s stock price has tumbled 31% in the current month, with most of the decline occurring after the release of disappointing quarterly earnings. Despite reporting an EPS of -0.46 and revenue of $780.7 million, near analyst estimates, the stock reacted negatively. Technical analysis suggests that RBLX is in a downtrend, with the possibility of recovery next month remaining low.
RBLX shares will meet a bottom when skeptics eventually exhausted. When this happens, then would be a good entry point for long-term investors to initiate their orders.
Unity Software (U)
Source: viewimage / Shutterstock.com
Unity Software (NYSE:U) commands about 50% of the global game engine market, enabling the creation of vast, immersive 3D experiences across platforms. With strong earnings performance, collaboration with tech giants like Apple (NASDAQ:AAPL), and the unveiling of an AI software marketplace, Unity is pushing the metaverse concept further.
Unity Software’s shares rose more than 6% after the company raised its annual forecast and posted a narrower-than-expected Q2 loss a few weeks ago. The company reported a loss of $201.2 million, or 51 cents a share, with revenue rising to $533.5 million from $297 million in the year-ago quarter, beating analysts’ expectations. Unity also increased the low end of its annual outlook, now forecasting revenue of $2.12 billion to $2.2 billion for the year.
Unity is set to become an essential player that helps other metaverse stocks thrive. It also has a foothold in traditional gaming, fostering innovation from independent studios and single developers to create games that people love to play. For this reason, it’s one of those metaverse stocks to have on your watchlist.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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The post 3 Millionaire-Maker Metaverse Stocks to Hold Through Thick and Thin 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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With strong earnings performance, collaboration with tech giants like Apple (NASDAQ:AAPL), and the unveiling of an AI software marketplace, Unity is pushing the metaverse concept further. In other words, it’s an emergent, rather than normative phenomenon, similar to how the internet didn’t revolutionize commerce or information sharing overnight but is undoubtedly one of society’s most disruptive inventions today. While NVDA has perhaps been one of the most popular AI and metaverse stocks this year, having reached a $1 trillion market cap and beyond, there’s still plenty of fuel left in the tank for it to soar to greater heights.
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With strong earnings performance, collaboration with tech giants like Apple (NASDAQ:AAPL), and the unveiling of an AI software marketplace, Unity is pushing the metaverse concept further. Nvidia’s initiatives and technology make it a key player in the emerging metaverse landscape, offering substantial long-term growth potential. Roblox (RBLX) Source: Miguel Lagoa / Shutterstock.com Roblox (NYSE:RBLX) is more than just a game; it’s a robust content creation tool that empowers users to build, share and monetize their creations.
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With strong earnings performance, collaboration with tech giants like Apple (NASDAQ:AAPL), and the unveiling of an AI software marketplace, Unity is pushing the metaverse concept further. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There’s a good reason you shouldn’t give up on the growth potential of metaverse stocks. Therefore, NVDA stock may fill a hole in an investor’s portfolio if they’re after one of those metaverse stocks to buy as well as an AI growth option.
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With strong earnings performance, collaboration with tech giants like Apple (NASDAQ:AAPL), and the unveiling of an AI software marketplace, Unity is pushing the metaverse concept further. Nvidia’s initiatives and technology make it a key player in the emerging metaverse landscape, offering substantial long-term growth potential. Therefore, NVDA stock may fill a hole in an investor’s portfolio if they’re after one of those metaverse stocks to buy as well as an AI growth option.
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2023-08-25 00:00:00 UTC
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Stock Market Sell-Off: 3 Tech Stocks Investors Should Avoid Right Now
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https://www.nasdaq.com/articles/stock-market-sell-off%3A-3-tech-stocks-investors-should-avoid-right-now
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The stock market seems uncertain right now. Some stocks experienced continued declines even after a massive sell-off in the 2022 bear market. Others recovered significantly in the first half of the year but reversed course in July and August as their financials failed to meet investor expectations.
Such times leave investors questioning the growth potential of many stocks. While many stocks still have excellent long-term prospects, each of us found stocks investors should consider avoiding. A closer look reveals why.
AT&T is a multiyear market laggard
Jake Lerch (AT&T): My pick for a stock to avoid right now is AT&T (NYSE: T). This telecom giant suffered a rough 2023, with a year-to-date total return of -19% -- and that's after accounting for its massive 7.9% dividend yield. What's worse, AT&T may have more trouble on the horizon. The company faces two main concerns, one financial and one legal.
On the financial front, AT&T remains saddled with a gigantic debt load -- nearly $136 billion of net debt. And while that figure is down significantly from its all-time high of $180 billion, it's still an albatross around the neck of this iconic company.
Moreover, the exploding cost of debt is weighing on AT&T. Just like individuals, higher interest rates impact companies. With the 10-year Treasury yield now at its highest level since 2007, the cost of funding debt is sky-high -- with no sign of relief anytime soon.
On the legal front, worries over lead-lined telephone cables put AT&T on the back foot. A recent investigative report raised concerns that AT&T might face huge costs to remove the wires. In addition, individuals or municipalities may file lawsuits if they allege they were exposed to toxic lead that leaked from the cables.
If AT&T does have to set aside money for cleanup and potential litigation, that would be bad news for investors. As noted earlier, AT&T is desperately seeking to improve its balance sheet by paying down debt while also maintaining its lucrative dividend. Granted, AT&T appears to have sufficient free cash flow to support its dividend, and the company is dirt cheap with a price-to-earnings (P/E) ratio of only 6.8.
That said, AT&T struggled for years to beat the market, so why should investors bet on this laggard now, with so much uncertainty swirling around the company?
Apple could fall further if the market falters
Justin Pope (Apple): It might feel counterintuitive to see a tech stalwart like consumer electronics giant Apple (NASDAQ: AAPL) on a list of stocks not to buy, but here it is. However, this is a numbers-based decision. Investors must face the math; the facts are that Apple is a humongous business that does more than $380 billion in annual revenue and has a market cap approaching $3 trillion.
Growing gets harder when you're a company moving massive numbers like Apple is. Apple's developed iPhone markets are saturated, and its new augmented reality headset, Apple Vision Pro, will launch very slowly. In other words, there isn't much to move Apple's growth needle in the short term, and revenue has begun declining since peaking last summer.
Shares have cooled in recent weeks but are still up nearly 40% in 2023, significantly stretching the stock's forward P/E. Analysts believe Apple's earnings-per-share (EPS) will grow by an average of 10% annually over the long term. That values the stock at a PEG ratio of roughly 3, which signals that Apple's stock is expensive for the growth investors should see moving forward.
AAPL EPS LT Growth Estimates data by YCharts.
Investors shouldn't be surprised if Apple's stock continues to slide if the markets become shaky enough to send investors looking for better deals elsewhere. That's why Apple is a stock you should avoid right now, but circle back on once the valuation makes a bit more sense.
AI may not be enough to rescue this bulk goods retailer
Will Healy (Wayfair): Wayfair (NYSE: W) may be one of the more surprising stocks of the summer. Its stock rose by almost 160% between late May and early August as investors became interested in its artificial intelligence (AI) and machine learning applications.
The furniture and home goods retailer uses automated catalog tagging empowered by AI to suggest products to customers. It also uses AI to supply delivery date estimates to customers, improving customer satisfaction.
Wayfair succeeded by carving out a niche in home furnishings once ignored by its largest rival, Amazon. A logistics network that could ship bulk goods, such as furniture, served as its competitive advantage, and it prospered during the pandemic when in-person furniture shopping was less of an option.
More recently, Wayfair bulls received positive news in other areas. News of order growth and positive second-quarter free cash flow of $128 million helped to boost the stock. Additionally, a price-to-sales ratio of 0.6 is well under that of Amazon, whose sales multiple is around 2.6.
Unfortunately for Wayfair, many of the challenges that led to the massive sell-off in 2022 remain with the company. Ultimately, shoppers often prefer to see furniture in person before making a purchase, a factor that does not work to Wayfair's advantage under normal business conditions.
Moreover, Amazon now competes in the furniture and home goods businesses. And worse, its success with AWS has made Amazon a leader in AI, leading investors to question whether Wayfair can stay competitive in this area.
Furthermore, even with more orders and positive free cash flow, the financials are less inspiring. Its net revenue for the first half of 2023 was just over $5.9 billion, a decrease of 5% compared with the same period in 2022.
Amid lower sales, Wayfair reduced its cost of goods sold and operating expenses. Still, its net loss for the first six months of the year came in at $401 million, and free cash flow remained negative for the same period.
Indeed, Wayfair benefits from a logistics network for bulk goods and a loyal customer base. But with competition becoming more of a threat and a reluctance among some to buy furniture and home goods online, it is hard to see how it is going to build sustainable growth.
10 stocks we like better than AT&T
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*Stock Advisor returns as of August 21, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jake Lerch has positions in AT&T and Amazon.com. Justin Pope has no position in any of the stocks mentioned. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com and Apple. The Motley Fool recommends Wayfair. 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 could fall further if the market falters Justin Pope (Apple): It might feel counterintuitive to see a tech stalwart like consumer electronics giant Apple (NASDAQ: AAPL) on a list of stocks not to buy, but here it is. AAPL EPS LT Growth Estimates data by YCharts. Investors must face the math; the facts are that Apple is a humongous business that does more than $380 billion in annual revenue and has a market cap approaching $3 trillion.
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Apple could fall further if the market falters Justin Pope (Apple): It might feel counterintuitive to see a tech stalwart like consumer electronics giant Apple (NASDAQ: AAPL) on a list of stocks not to buy, but here it is. AAPL EPS LT Growth Estimates data by YCharts. That values the stock at a PEG ratio of roughly 3, which signals that Apple's stock is expensive for the growth investors should see moving forward.
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Apple could fall further if the market falters Justin Pope (Apple): It might feel counterintuitive to see a tech stalwart like consumer electronics giant Apple (NASDAQ: AAPL) on a list of stocks not to buy, but here it is. AAPL EPS LT Growth Estimates data by YCharts. That values the stock at a PEG ratio of roughly 3, which signals that Apple's stock is expensive for the growth investors should see moving forward.
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Apple could fall further if the market falters Justin Pope (Apple): It might feel counterintuitive to see a tech stalwart like consumer electronics giant Apple (NASDAQ: AAPL) on a list of stocks not to buy, but here it is. AAPL EPS LT Growth Estimates data by YCharts. More recently, Wayfair bulls received positive news in other areas.
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2023-08-25 00:00:00 UTC
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Where to Invest $100 Right Now
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https://www.nasdaq.com/articles/where-to-invest-%24100-right-now-7
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nan
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nan
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One of the better developments in the investing world over the past several years has been the introduction of fractional shares. Instead of needing the full price of a stock to purchase a share, fractional shares allow investors to buy a portion, often for as little as $1.
Popularized by Robinhood Markets, fractional shares have removed a barrier to entry in investing. This was especially important for investors who wanted access to great companies trading well into the thousands, like Berkshire Hathaway (NYSE: BRK.A).
Trading at well over half a million dollars per share, purchasing a whole share of Berkshire Hathaway isn't feasible for most people. Luckily, that doesn't have to be the case. If you have $100 available to invest, look no further than the conglomerate of all conglomerates.
Berkshire Hathaway makes money in its sleep
While growth stocks may get a lot of attention in the stock market, dividend stocks can be just as lucrative. It's a way for investors to make guaranteed money by doing nothing but being patient.
Ironically enough, Berkshire Hathaway itself doesn't pay a dividend, but it's known for investing in companies that do. It has set up its stock portfolio to provide constant income regardless of its operations. Here's how much dividend income Berkshire receives quarterly from its top holdings:
COMPANY SHARES BERKSHIRE OWNS QUARTERLY DIVIDEND INCOME AT CURRENT PAYOUT
Apple 915,560,382 $219,734,491
Bank of America 1,032,852,006 $247,884,481
American Express 151,610,700 $90,966,420
Coca-Cola 400,000,000 $184,000,000
Chevron Corporation 123,120,120 $185,911,381
Data source: Berkshire Hathaway's 13F filing on Aug. 14. Holdings as of June 30, 2023. Income rounded to the nearest dollar.
From just its top five holdings alone, Berkshire Hathaway earns over $3.7 billion in dividend income each year (over $928 million quarterly). In 2022, it made over $6.03 billion in dividend income. For perspective, that was more than the 2022 net income of companies like Walt Disney, Nike, and Netflix.
More importantly, Berkshire Hathaway's holdings generally increased their annual dividends, so its annual dividend income keeps growing. There was a $979 million increase from 2021 to 2022 alone.
The company can provide shareholder value without paying a dividend
Berkshire Hathaway has found itself with a good "problem." The company now has over $141 billion of cash on hand. You can never have too much cash per se, but you do have to consider the trade-off of holding cash versus putting it to work and trying to create more value.
The company paying a dividend seems out of the question. Less than 10 years ago, shareholders took a vote on whether to establish a dividend, and 97% voted no. I imagine that number hasn't changed drastically enough to warrant them suddenly switching a policy that's been in place since 1967.
Berkshire Hathaway can provide shareholder value aside from stock price gains through share buybacks. When a company buys back its shares, investors' earnings per share increase, ownership stakes increase, and investors are rewarded in a more tax-friendly way than with a dividend.
Berkshire Hathaway has bought back $5.8 billion worth of shares so far in 2023 through June. Here's how much it's spent on share buybacks in the past three years:
2022: $7.9 billion
2021: $27.1 billion
2020: $24.7 billion
A company committed to share buybacks (when it makes sense) should appeal to long-term investors because it also shows a commitment to returning value to investors. It also helps that the company's stock price routinely outperforms the S&P 500, making it a bonus of sorts.
Invest your $100 and trust the process
Led by Warren Buffett, Berkshire Hathaway has been one of the more lucrative investments in the stock market over the past few decades. Here's how a $100 investment in Berkshire Hathway and the S&P 500 would stack up today if you invested 30 years ago from the time of this writing.
Data by YCharts.
Even when looking at total returns, it doesn't compare to the growth of Berkshire Hathaway. Past results don't guarantee future performance, and at the age of 92, Buffett has more years behind him than in front of him, but Berkshire Hathaway remains a great long-term option and in great hands.
There are few companies I'd trust more with my $100.
10 stocks we like better than Berkshire Hathaway
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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. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Netflix, Nike, and Walt Disney. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola and 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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Apple 915,560,382 $219,734,491 Bank of America 1,032,852,006 $247,884,481 American Express 151,610,700 $90,966,420 Coca-Cola 400,000,000 $184,000,000 Chevron Corporation 123,120,120 $185,911,381 Data source: Berkshire Hathaway's 13F filing on Aug. 14. From just its top five holdings alone, Berkshire Hathaway earns over $3.7 billion in dividend income each year (over $928 million quarterly). The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Netflix, Nike, and Walt Disney.
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Apple 915,560,382 $219,734,491 Bank of America 1,032,852,006 $247,884,481 American Express 151,610,700 $90,966,420 Coca-Cola 400,000,000 $184,000,000 Chevron Corporation 123,120,120 $185,911,381 Data source: Berkshire Hathaway's 13F filing on Aug. 14. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Netflix, Nike, and Walt Disney. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola and long January 2025 $47.50 calls on Nike.
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Berkshire Hathaway makes money in its sleep While growth stocks may get a lot of attention in the stock market, dividend stocks can be just as lucrative. Ironically enough, Berkshire Hathaway itself doesn't pay a dividend, but it's known for investing in companies that do. Here's how much it's spent on share buybacks in the past three years: 2022: $7.9 billion 2021: $27.1 billion 2020: $24.7 billion A company committed to share buybacks (when it makes sense) should appeal to long-term investors because it also shows a commitment to returning value to investors.
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Ironically enough, Berkshire Hathaway itself doesn't pay a dividend, but it's known for investing in companies that do. From just its top five holdings alone, Berkshire Hathaway earns over $3.7 billion in dividend income each year (over $928 million quarterly). The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Netflix, Nike, and Walt Disney.
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14129.0
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2023-08-25 00:00:00 UTC
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3 Very Oversold Blue-Chip Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-very-oversold-blue-chip-stocks-to-buy-right-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After a booming start to the year, the market hit turbulence in August. Rising rates and economic concerns about China have rocked the markets leading to oversold blue-chip stocks. Given the oversold conditions, there could be a rebound in the coming days.
Pundits argue that after a hot rally in the second quarter and July, the markets were due for a pause or a correction. But technical factors aren’t only the cause of the recent market swoon.
Yields rising to record highs and a weaker-than-expected Chinese economy are the other culprits. But there is a silver lining. There are now plenty of oversold blue-chip stocks to buy.
So, what blue-chip stocks to buy could rebound strongly? Given the seasonal trends, sticking with some of the strongest stocks is still advisable. Although the market is oversold, it doesn’t mean there won’t be any material weakness going forward.
August has been rough, but September has been historically the most volatile month of the year. Therefore, investors need to brace for more weakness ahead. These oversold blue-chip stocks provide value and can offer better downside protection than smaller peers.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Though Apple (NASDAQ:AAPL) is still up a lot year-to-date, the stock has declined steeply over the last two weeks.
The stock backed off after failing to break out above the $200 price level. Then, a disappointing earnings report catalyzed the drop to $174 from above $190.
Despite the latest declines, AAPL stock is one of the blue-chip stocks to buy. It is still one of the most profitable companies with a rock-solid balance sheet. Notably, no one doubts Apple’s quality and earnings power.
That’s why Warren Buffet considers it the best business in his portfolio and has it as Berkshire Hathaway’s largest holding.
Due to recent disappointments, investors have had a reason to sell Apple. After three quarters of negative revenue growth, they are losing patience. However, we are just about to enter a new cycle that could boost the stock.
Apple is expected to announce the iPhone 15 in September. This could be the catalyst for a refresh cycle that might buoy demand. According to Wedbush analyst Dan Ives 250 million Apple customers haven’t upgraded their iPhones in the last four years. The analyst expects the new iPhone to boost Apple revenues as consumers who haven’t refreshed their iPhone in four years do so.
Before the announcement, Apple will act as a safe haven. It is a profit-generating machine, with the growing services businesses driving margin improvement. Plus, heading into the announcement, AAPL stock tends to rally.
American Express (AXP)
Source: First Class Photography / Shutterstock.com
The financial sector is declining as rates rise. Banks are facing rate pressures and negative sentiment from potential rating downgrades.
Given these headwinds, it is prudent to avoid banks until this uncertainty is resolved. Meanwhile, other oversold blue-chip stocks in the financial sector, like American Express (NYSE:AXP), are bargains to consider.
The market has unfairly punished this credit card company. Its earnings tell a different story. The company’s services are seeing unprecedented demand. Its business is executing impressively, powered by robust travel demand.
Furthermore, its high-end consumers are yet to feel the pinch of reduced savings, and their spending trends are very healthy.
Second quarter results underlined why American Express is one of the oversold blue-chip stocks to buy. It was the fifth consecutive quarter of record revenues. Card member spending increased by 8%, hitting an all-time high.
The impressive performance was driven by strong travel and entertainment spending across geographies and customer categories.
Net income increased 11% to $2.17 billion. Management reflected the optimism in the numbers reiterating the full-year 2023 guidance. They expect $11.00 to $11.40 in EPS, meaning the stock trades at a forward price-to-earnings of 15.
Looking ahead beyond this fiscal year, the stock is well positioned because of its focus on high-end consumers. The company is expanding internationally and targeting a younger audience for growth.
Honeywell International (HON)
Source: josefkubes / Shutterstock.com
This industrial conglomerate has been a laggard this year and is down -12% YTD as of this writing. In contrast, the Industrial Select Sector SPDR Fund is up 8%. This massive underperformance is why Honeywell International (NASDAQ:HON) is among the top blue-chip stocks to buy.
So, what is ailing the stock so much that it has become one of the oversold blue-chip stocks? The only strategic news the company has announced is the departure of the CEO.
However, he was replaced by a company veteran, Vimal Kapur who has been at the company for 34 years.
In terms of financial performance, the results have been okay. Second-quarter earnings were sluggish but exceeded company guidance.
Organic sales were up 3%, and the largest segment, aerospace, grew 16%. It was the ninth straight quarter of double-digit growth in the commercial aerospace segment.
Management also raised their FY2023 outlook increasing sales, margins and adjusted EPS guidance. Considering the guidance, Honeywell is one of the oversold blue-chip stocks to buy. Management expects organic sales growth to be 4% to 6%.
Regarding profits, adjusted EPS guidance is $9.05 to $9.25. At 21 times forward earnings, you are buying one of the best industrial companies. Strength in key markets such as commercial aerospace and process solutions will be a tailwind over the next few years.
On the date of publication, Charles Munyi 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.
Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.
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The post 3 Very Oversold Blue-Chip Stocks to Buy Right Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Though Apple (NASDAQ:AAPL) is still up a lot year-to-date, the stock has declined steeply over the last two weeks. Despite the latest declines, AAPL stock is one of the blue-chip stocks to buy. Plus, heading into the announcement, AAPL stock tends to rally.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Though Apple (NASDAQ:AAPL) is still up a lot year-to-date, the stock has declined steeply over the last two weeks. Despite the latest declines, AAPL stock is one of the blue-chip stocks to buy. Plus, heading into the announcement, AAPL stock tends to rally.
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Despite the latest declines, AAPL stock is one of the blue-chip stocks to buy. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Though Apple (NASDAQ:AAPL) is still up a lot year-to-date, the stock has declined steeply over the last two weeks. Plus, heading into the announcement, AAPL stock tends to rally.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Though Apple (NASDAQ:AAPL) is still up a lot year-to-date, the stock has declined steeply over the last two weeks. Despite the latest declines, AAPL stock is one of the blue-chip stocks to buy. Plus, heading into the announcement, AAPL stock tends to rally.
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14130.0
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2023-08-25 00:00:00 UTC
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Should Engine No. 1 Transform 500 ETF (VOTE) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-engine-no.-1-transform-500-etf-vote-be-on-your-investing-radar-6
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Engine No. 1 Transform 500 ETF (VOTE), a passively managed exchange traded fund launched on 06/22/2021.
The fund is sponsored by Engine No. 1. It has amassed assets over $516.13 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.47%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.60% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 29.22% of total assets under management.
Performance and Risk
VOTE seeks to match the performance of the MORNINGSTAR US LARGE CAP SELECT INDEX before fees and expenses. The Morningstar US Large Cap Select Index is market cap-weighted and tracks the 500 largest companies in the US.
The ETF has added about 15.89% so far this year and is up roughly 7.33% in the last one year (as of 08/25/2023). In the past 52-week period, it has traded between $41.43 and $53.26.
The ETF has a beta of 1 and standard deviation of 19.19% for the trailing three-year period. With about 507 holdings, it effectively diversifies company-specific risk.
Alternatives
Engine No. 1 Transform 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VOTE is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $343.14 billion in assets, SPDR S&P 500 ETF has $401.69 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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
Engine No. 1 Transform 500 ETF (VOTE): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 1 Transform 500 ETF (VOTE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $516.13 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
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1 Transform 500 ETF (VOTE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 1 Transform 500 ETF (VOTE), a passively managed exchange traded fund launched on 06/22/2021.
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1 Transform 500 ETF (VOTE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 1 Transform 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 1 Transform 500 ETF (VOTE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Costs Investors should also pay attention to an ETF's expense ratio.
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14131.0
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2023-08-25 00:00:00 UTC
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Should Invesco S&P 500 Top 50 ETF (XLG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-sp-500-top-50-etf-xlg-be-on-your-investing-radar-9
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nan
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nan
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The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $2.37 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.08%.
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 38.90% of the portfolio. Healthcare and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.40% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 51.76% of total assets under management.
Performance and Risk
XLG seeks to match the performance of the S&P 500 Top 50 ETF Index before fees and expenses. The S&P 500 Top 50 Index is composed of 50 of the largest companies in the S&P 500 Index.
The ETF has added about 26.03% so far this year and is up about 11.52% in the last one year (as of 08/25/2023). In the past 52-week period, it has traded between $26.66 and $36.11.
The ETF has a beta of 1 and standard deviation of 19.74% for the trailing three-year period, making it a medium risk choice in the space. With about 53 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Top 50 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, XLG is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $343.14 billion in assets, SPDR S&P 500 ETF has $401.69 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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
Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.40% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.40% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.40% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Invesco S&P 500 Top 50 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 13.40% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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14132.0
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2023-08-25 00:00:00 UTC
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Nasdaq Bear Market: 2 Stocks I'd Buy With No Hesitation
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AAPL
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-2-stocks-id-buy-with-no-hesitation-1
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nan
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nan
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An economic downturn in 2022 dragged down countless stocks, with the Nasdaq Composite tumbling 33% throughout the year. However, the market has enjoyed a solid recovery in 2023 alongside easing inflation. The index has climbed 29% since Jan. 1.
The improvement has some analysts calling a bull market. However, it's not a bad idea to exercise caution, as many companies continue to feel the effects of macroeconomic headwinds. As a result, now is an excellent time to strengthen your portfolio with stocks that make smart buys, no matter the market conditions.
So, here are two stocks I'd buy with no hesitation, especially in a Nasdaq bear market.
1. Apple
Whether you're new to stock trading or a seasoned veteran, you probably have Apple (NASDAQ: AAPL) on your radar. The company has achieved record heights in tech, becoming the first to hit a market cap of $3 trillion earlier this year.
Apple's focus on quality and its ecosystem of products has garnered almost unrivaled brand loyalty. Its success with consumers has led to dominating market shares in many of its product categories, fortifying its business during challenging market conditions.
Apple shares are down 9% since the start of August after the company posted its earnings results for the fiscal third quarter of 2023, ended July 1. The company suffered from reductions in consumer spending on tech. However, the dip has only made its stock more attractive as it continues to outperform its peers.
According to Counterpoint Research, U.S. smartphone shipments fell 24% year over year in the second quarter of 2023. Samsung and Motorola experienced sales declines of 37% and 17%. However, the same period saw Apple's iPhone sales tumble a more moderate 6%, while its market share increased from 52% to 55%.
The company performed similarly against its PC competitors. Data from IDC shows PC shipments fell by 13% in Q2 2023. Sales for Dell and Lenovo Group decreased by 22% and 18%. Yet, the quarter saw Apple shipments actually increase by 10% as it was the only company in IDC's data set to report growth.
Consumers have proved time and time again their preference for Apple products, allowing it to charge a premium for its offerings. Its higher-priced products have strengthened its business and made it one of the most reliable investments. Consequently, its stock is a no-brainer in a bear market and one I'd buy without hesitation.
2. Amazon
While Apple dominates consumer tech, Amazon (NASDAQ: AMZN) has a similar command in e-commerce. Its powerful position in the industry proved challenging during last year's economic downturn, leading to steep declines in its retail earnings. However, a solid recovery this year has demonstrated the resilience of Amazon's business model and its worth as a long-term investment.
In 2022, Amazon's e-commerce segments reported combined operating losses of $10.6 billion as online spending faltered. However, the first half of 2023 has seen growing profits. In the first quarter, Amazon's North American segment returned to profitability, and in the second quarter, it hit over $3 billion in operation income. Meanwhile, its international segment has continued to improve over both quarters.
It's always best to judge a company by how it reacts under strain rather than suitable conditions. Last year, Amazon's profit losses led it to close or cancel construction on dozens of warehouses, shutter unprofitable services such as Amazon Care, and lay off thousands of workers. The restructuring paid off this year and proved the reliability of Amazon's business and stock over the long term.
Moreover, the company is home to the world's largest cloud platform, Amazon Web Services (AWS), which gives it a powerful position in the future of artificial intelligence (AI). The company is heavily investing in the high-growth sector, recently announcing several new AI-enabled tools to AWS and a venture into chip development.
The combination of dominating market shares in e-commerce and the cloud industry and solid leadership during economic hurdles make Amazon's stock an attractive investment. And if a bear market has put the company's shares on sale, Amazon is a screaming buy.
10 stocks we like better than Apple
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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 Amazon.com and 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 Whether you're new to stock trading or a seasoned veteran, you probably have Apple (NASDAQ: AAPL) on your radar. Its powerful position in the industry proved challenging during last year's economic downturn, leading to steep declines in its retail earnings. Moreover, the company is home to the world's largest cloud platform, Amazon Web Services (AWS), which gives it a powerful position in the future of artificial intelligence (AI).
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Apple Whether you're new to stock trading or a seasoned veteran, you probably have Apple (NASDAQ: AAPL) on your radar. Amazon While Apple dominates consumer tech, Amazon (NASDAQ: AMZN) has a similar command in e-commerce. In 2022, Amazon's e-commerce segments reported combined operating losses of $10.6 billion as online spending faltered.
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Apple Whether you're new to stock trading or a seasoned veteran, you probably have Apple (NASDAQ: AAPL) on your radar. The combination of dominating market shares in e-commerce and the cloud industry and solid leadership during economic hurdles make Amazon's stock an attractive investment. And if a bear market has put the company's shares on sale, Amazon is a screaming buy.
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Apple Whether you're new to stock trading or a seasoned veteran, you probably have Apple (NASDAQ: AAPL) on your radar. The combination of dominating market shares in e-commerce and the cloud industry and solid leadership during economic hurdles make Amazon's stock an attractive investment. And if a bear market has put the company's shares on sale, Amazon is a screaming buy.
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14133.0
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2023-08-25 00:00:00 UTC
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ANALYSIS-Nvidia's $25 billion buyback 'a head-scratcher' for some shareholders
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https://www.nasdaq.com/articles/analysis-nvidias-%2425-billion-buyback-a-head-scratcher-for-some-shareholders
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By Lewis Krauskopf, Chibuike Oguh and Lance Tupper
NEW YORK, Aug 25 (Reuters) - Nvidia's NVDA.O move to buy back $25 billion of its shares after its stock has more than tripled this year caught some investors off-guard, even as they cheered a stellar second-quarter report.
Shares of Nvidia touched a record high on Thursday, a day after the company blew past expectations with its quarterly revenue forecast as an artificial-intelligence boom fueled demand for its chips. Nvidia shares, which had run up in the days leading up to its report, climbed more than 6% on Thursday but pared gains to end the day little changed.
However, Nvidia's stock buyback - the fifth-biggest repurchase announcement among U.S.-based companies this year, according to EPFR - surprised some investors.
Companies commonly repurchase their stock as a way to return capital to shareholders. Such buybacks can benefit a stock's price by reducing the supply of shares and increasing demand, and can boost earnings per share, a closely watched investor metric.
But while shareholders often see buybacks as an encouraging sign when a company’s stock appears cheap, Nvidia’s shares have shot up some 220% in 2023, leaving investors searching for the reasons behind the company’s move.
"It's a little bit of a head-scratcher," said King Lip, chief strategist at Baker Avenue Wealth Management, which has $2.5 billion in assets under management and counts Nvidia as a top-10 holding.
"As a shareholder, we like to see stock buybacks, but for a company like Nvidia that is growing so fast, you kind of want to see their earnings being plowed back in to the company,” Lip added.
As opposed to companies with sluggish financial performance growth that turn to buybacks to help prop up earnings per share, the announcement from Nvidia "comes as a surprise" given that they are "a hot growth tech name," said Daniel Morgan, senior portfolio manager at Synovus Trust, which owns Nvidia shares.
"The message seems to be that (Nvidia's) management believes that their stock is undervalued," Morgan said.
GENERATING CASH
For some investors, an "undervalued" Nvidia might be a difficult message to stomach. Nvidia shares traded at 45 times forward 12-month earnings estimates as of Wednesday compared with about 19 times for the overall S&P 500 .SPX, according to Refinitiv Datastream.
"Historically, you'd love it when a company is able to buy their stock back when it is depressed, but I don't think anybody can make the case that it is at a depressed place right now," said Tom Plumb, CEO and lead portfolio manager at Plumb Funds, which has Nvidia as one of its largest holdings.
However, Plumb said, the company might be limited in how it can deploy its resources after its deal to buy semiconductor designer Arm Holdings Ltd collapsed last year amid regulatory concerns.
"They're generating incredible amounts of cash, more than they need for their current investment strategy, and they're prohibited from buying significant complementary businesses," Plumb said. "So what are they going to do with their cash?"
Nvidia spent about 27% of revenue on research and development last year, in line with rival chip companies.
The company did not immediately respond to a request for comment.
In its second-quarter earnings release on Wednesday, Nvidia said its board approved $25 billion in additional share repurchases "without expiration," and that the company plans to continue repurchases this fiscal year.
Despite the staggering dollar amount, Nvidia's buyback amounted to only 2.1% of its nearly $1.2 trillion market value, or buyback yield, as of Wednesday. That is less than the historic 2.58% buyback yield for the overall S&P 500, when looking over one-year periods, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
Meanwhile, several other megacap tech and growth companies have announced even bigger buybacks this year: Apple AAPL.O at $90 billion, Alphabet GOOGL.O at $70 billion and Meta Platforms META.O at $40 billion.
Tech companies tend to prefer using cash for buybacks over dividends, because "if they are on the hook for a dividend every quarter that may hinder their ability to take advantage of growth opportunities," said Daniel Klausner, head of U.S. public equity advisory at Houlihan Lokey.
Indeed, some investors welcomed Nvidia's buyback decision.
"It’s a show of confidence," said Francisco Bido, senior portfolio manager for F/M Investments' large cap focused fund, which holds Nvidia shares. "If they had better use for (the cash), I am pretty sure they would have done it."
FACTBOX-Biggest U.S. corporate buybacks in last 10 years
FACTBOX-Nvidia joins tech titans in trillion-dollar club
Nvidia's $25 bln buyback plan, results lift stock to record high
Nvidia adds jet fuel to AI optimism with record results, $25 billion buyback
Nvidia bets $25 bln that AI boom is far from over
(Reporting by Lewis Krauskopf, Chibuike Oguh and Lance Tupper in New York Additional reporting by Echo Wang in New York and Stephen Nellis in San Francisco; Editing by Ira Iosebashvili and Matthew Lewis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, several other megacap tech and growth companies have announced even bigger buybacks this year: Apple AAPL.O at $90 billion, Alphabet GOOGL.O at $70 billion and Meta Platforms META.O at $40 billion. By Lewis Krauskopf, Chibuike Oguh and Lance Tupper NEW YORK, Aug 25 (Reuters) - Nvidia's NVDA.O move to buy back $25 billion of its shares after its stock has more than tripled this year caught some investors off-guard, even as they cheered a stellar second-quarter report. Shares of Nvidia touched a record high on Thursday, a day after the company blew past expectations with its quarterly revenue forecast as an artificial-intelligence boom fueled demand for its chips.
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Meanwhile, several other megacap tech and growth companies have announced even bigger buybacks this year: Apple AAPL.O at $90 billion, Alphabet GOOGL.O at $70 billion and Meta Platforms META.O at $40 billion. By Lewis Krauskopf, Chibuike Oguh and Lance Tupper NEW YORK, Aug 25 (Reuters) - Nvidia's NVDA.O move to buy back $25 billion of its shares after its stock has more than tripled this year caught some investors off-guard, even as they cheered a stellar second-quarter report. As opposed to companies with sluggish financial performance growth that turn to buybacks to help prop up earnings per share, the announcement from Nvidia "comes as a surprise" given that they are "a hot growth tech name," said Daniel Morgan, senior portfolio manager at Synovus Trust, which owns Nvidia shares.
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Meanwhile, several other megacap tech and growth companies have announced even bigger buybacks this year: Apple AAPL.O at $90 billion, Alphabet GOOGL.O at $70 billion and Meta Platforms META.O at $40 billion. But while shareholders often see buybacks as an encouraging sign when a company’s stock appears cheap, Nvidia’s shares have shot up some 220% in 2023, leaving investors searching for the reasons behind the company’s move. As opposed to companies with sluggish financial performance growth that turn to buybacks to help prop up earnings per share, the announcement from Nvidia "comes as a surprise" given that they are "a hot growth tech name," said Daniel Morgan, senior portfolio manager at Synovus Trust, which owns Nvidia shares.
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Meanwhile, several other megacap tech and growth companies have announced even bigger buybacks this year: Apple AAPL.O at $90 billion, Alphabet GOOGL.O at $70 billion and Meta Platforms META.O at $40 billion. Shares of Nvidia touched a record high on Thursday, a day after the company blew past expectations with its quarterly revenue forecast as an artificial-intelligence boom fueled demand for its chips. However, Nvidia's stock buyback - the fifth-biggest repurchase announcement among U.S.-based companies this year, according to EPFR - surprised some investors.
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14134.0
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2023-08-25 00:00:00 UTC
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Cathie Wood's Ark Invest Thinks Apple, Alphabet, and Nvidia Are Risky. Here Are 2 Artificial Intelligence (AI) Stocks That Could Be Better.
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https://www.nasdaq.com/articles/cathie-woods-ark-invest-thinks-apple-alphabet-and-nvidia-are-risky.-here-are-2-artificial
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How bullish is Cathie Wood about artificial intelligence (AI)? It's one of her Ark Invest's "big ideas" for 2023. Ark believes that AI "is the most important catalyst" of all for creating "super-exponential growth."
Earlier this week, Ark Invest published a report that examined the best approaches for investing in AI. Its client portfolio manager, Thomas Hartmann-Boyce, wrote that megacap AI leaders including Apple, Alphabet, and Nvidia are risky. However, Ark Invest -- and presumably Wood herself -- think that there are two AI stocks that could be better.
Risky business
Apple, Alphabet, and Nvidia have been huge winners with this year's AI boom. But Ark sees two primary risks for these tech giants: high valuations and the potential for disruption.
Nvidia is the most glaring example of a high valuation. Its stock trades at a price-to-sales (P/S) ratio of 44. Even looking at the chipmaker's projected sales for 2025, the P/S multiple is over 19.
Ark also thinks that "AI could disrupt the once reliable, cash-cow businesses" of these huge companies. For example, OpenAI's ChatGPT could threaten Apple's App Store and Alphabet's Google Search. Hartmann-Boyce asked, "Who needs special-purpose apps when a general-purpose interface can provide answers across the open web?"
But what about the significant AI investments that these large technology leaders are making? Ark acknowledges their ample financial resources. However, its recent report argues that their efforts could focus largely "on older technologies, often the reason that large companies have missed subsequent waves of innovation."
Two stocks for AI's "sleeper wave"
Ark Invest believes that there could be a "sleeper wave" of AI winners that aren't as widely known. Several of the companies on its radar screen are privately held. But Ark's report highlighted two up-and-coming AI stocks.
UiPath (NYSE: PATH) makes robotic process automation software. Its Business Automation Platform supports automating processes for the financial services, healthcare, public sector, manufacturing, retail, and telecom industries.
The company's annualized revenue run rate has had a compound annual growth rate of 42% since 2021. Ark thinks that UiPath's focus on low-code and no-code interfaces gives it a significant competitive advantage.
Twilio (NYSE: TWLO) markets a customer-engagement platform for integrating messaging, email, and voice with customers' software applications. It has more than 150,000 customers across the world, including Airbnb, Salesforce.com, and Uber.
In Ark Invest's view, Twilio is in the strongest position to roll out AI into customer communication channels. While its margins have been pressured in recent quarters due to macroeconomic headwinds, Ark thinks the company will enjoy strong growth with its AI focus over the long run.
More risky business?
Ark's report released earlier this week pointed out key risks for current AI leaders Apple, Alphabet, and Nvidia. However, its "sleeper" AI stocks also come with risks of their own.
Valuation isn't just an issue for the megacap stocks. Neither UiPath nor Twilio is profitable yet, so earnings-based metrics aren't useful in determining their valuations. UiPath trades at a higher P/S multiple than Apple or Alphabet, although Twilio's valuation looks more attractive based on its trailing-12-month sales.
UiPath and Twilio aren't immune from disruption, either. Both companies acknowledge that their respective markets are becoming increasingly competitive.
Tucked away in Ark Invest's report is a caution that smaller-cap AI stocks "often carry potential risks like higher volatility, lower liquidity, and business failure given earlier lifecycles." All of these potential risks are applicable to UiPath and Twilio.
My view is that Ark Invest is right to point out the prospects of rising stars like UiPath and Twilio that haven't received as much attention from investors. However, I wouldn't dismiss the long-term opportunities for Apple, Alphabet, and Nvidia. All three companies have overcome plenty of challenges through the years to achieve their tremendous success. They just might continue to do so.
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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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While its margins have been pressured in recent quarters due to macroeconomic headwinds, Ark thinks the company will enjoy strong growth with its AI focus over the long run. Ark's report released earlier this week pointed out key risks for current AI leaders Apple, Alphabet, and Nvidia. Tucked away in Ark Invest's report is a caution that smaller-cap AI stocks "often carry potential risks like higher volatility, lower liquidity, and business failure given earlier lifecycles."
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Its client portfolio manager, Thomas Hartmann-Boyce, wrote that megacap AI leaders including Apple, Alphabet, and Nvidia are risky. Two stocks for AI's "sleeper wave" Ark Invest believes that there could be a "sleeper wave" of AI winners that aren't as widely known. Ark's report released earlier this week pointed out key risks for current AI leaders Apple, Alphabet, and Nvidia.
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However, Ark Invest -- and presumably Wood herself -- think that there are two AI stocks that could be better. Two stocks for AI's "sleeper wave" Ark Invest believes that there could be a "sleeper wave" of AI winners that aren't as widely known. Tucked away in Ark Invest's report is a caution that smaller-cap AI stocks "often carry potential risks like higher volatility, lower liquidity, and business failure given earlier lifecycles."
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However, Ark Invest -- and presumably Wood herself -- think that there are two AI stocks that could be better. Risky business Apple, Alphabet, and Nvidia have been huge winners with this year's AI boom. UiPath trades at a higher P/S multiple than Apple or Alphabet, although Twilio's valuation looks more attractive based on its trailing-12-month sales.
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14135.0
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2023-08-25 00:00:00 UTC
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Warren Buffett Will Collect $4.31 Billion in Annual-Dividend Income From These 5 Stocks
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https://www.nasdaq.com/articles/warren-buffett-will-collect-%244.31-billion-in-annual-dividend-income-from-these-5-stocks
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For the past 58 years, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been running circles around Wall Street. He's overseen a greater-than 4,300,000% aggregate gain in his company's class A shares (BRK.A), as of the closing bell on Aug. 18, 2023, and has doubled-up the broad-based S&P 500 (as of Dec. 31, 2022), based on annualized total return, since becoming CEO.
While there is a long list of factors responsible for Buffett's overwhelming long-term success, his penchant for piling into dividend stocks has played an undeniably important role. Public companies that pay a regular dividend are almost always time-tested, have clear long-term growth outlooks, and most importantly are profitable on a recurring basis. In short, they're businesses investors can often trust over long periods.
Based on Berkshire Hathaway's most recent Form 13F filing, the Oracle of Omaha and his investment team will oversee the collection of more than $6 billion in dividend income over the next 12 months. Amazingly, though, $4.31 billion in annual-dividend income will derive from just five stocks.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Bank of America: $991,537,926 in annual-dividend income
The income "breadwinner" of Warren Buffett's portfolio is none other than money-center juggernaut Bank of America (NYSE: BAC), which is better known as BofA. Based on the more than 1.03 billion shares of BofA that Berkshire Hathaway owns, along with BofA's recently raised payout, that equates to $0.96 annually, Buffett's company will receive nearly $992 million in dividend income over the next 12 months.
Although bank stocks typically struggle during periods of economic uncertainty, Bank of America finds itself uniquely positioned to thrive in the current environment. That's because no money-center bank is more sensitive to interest-rate movements than Bank of America. The steepest rate-hiking cycle from the Federal Reserve in decades is adding billions of dollars in net-interest income to BofA's coffers each quarter. With core inflation still more than double the Fed's long-term target, BofA looks to have plenty of time to take advantage of higher interest rates.
Additionally, Bank of America isn't receiving enough credit for its technology investments. While BofA might be viewed as a banking dinosaur by some consumers, it's observed a steady uptick in the number of households banking online or via its mobile app. More payments and loans being processed digitally should lead to even higher operating efficiency.
Occidental Petroleum: $961,373,018 in annual-dividend income (includes preferred stock dividends)
Another big-time income generator for Warren Buffett's company is oil stock Occidental Petroleum (NYSE: OXY). The more than 224 million shares of Occidental common stock held by Berkshire Hathaway are set to bring in $161 million in annual income. Meanwhile, Berkshire also holds $10 billion worth of preferred stock in Occidental that yields 8% annually, which is where the additional $800 million in annual-dividend income comes from.
The biggest catalyst for Occidental Petroleum is the tight global supply of crude oil, which has been caused by a combination of pandemic-related underinvestment by energy majors and the ongoing war between Russia and Ukraine. Although Occidental is an integrated energy company, it produces most of its revenue from drilling. If the spot price of crude oil moves higher, it should benefit far more than its peers.
The other potential driver for Occidental is an improved balance sheet. It's no secret that Occidental buried itself in debt when it acquired Anadarko in 2019. But since March 2021, it's reduced its net debt by more than $15 billion. A steadily improving balance sheet could lead to multiple expansion.
Apple: $878,937,967 in annual-dividend income
Not surprisingly, Berkshire Hathaway's largest holding plays a key role in its annual-dividend collection. With Apple (NASDAQ: AAPL) doling out $0.96 annually to its shareholders, and Berkshire holding more than 915 million shares of Apple, Buffett's company is set to collect almost $879 million annually from Wall Street's largest publicly traded company.
Most investors appreciate Apple for its innovation. For instance, the company's iPhone has dominated the domestic smartphone market for more than a decade. Since introducing a 5G-capable version in late 2020, iPhone has accounted for around half (if not more) of U.S. smartphone market share.
However, CEO Tim Cook is repositioning Apple to become a platforms' company. High-margin subscription services should allow Apple to steadily grow its operating margin over time, as well as smooth out the revenue fluctuations often seen during iPhone upgrade cycles.
I'd be remiss if I didn't also mention Apple's stellar capital-return program. Since commencing its buyback program in 2013, Apple has repurchased around $600 billion worth of its common stock.
Image source: Getty Images.
Chevron: $743,645,525 in annual-dividend income
Energy stocks tend to sport big payouts, and integrated oil and gas company Chevron (NYSE: CVX) is no slouch. Chevron has increased its base-annual dividend for 36 consecutive years and is on pace to pay out $6.04/share over the next 12 months. Based on the 123 million-plus shares of Chevron owned by Berkshire, Buffett's company is set to collect nearly $744 million in annual-dividend income.
Though Chevron and Occidental Petroleum are both integrated operators, Chevron provides far superior balance. The transmission pipelines it owns generate predictable operating cash flow, while its chemical plants and refineries offer a hedge against a lower crude oil spot price. In other words, if the price of crude oil were to fall, Chevron is going to hold up far better than Occidental Petroleum.
The other key advantage for Chevron is its balance sheet. Chevron closed out the June-ended quarter with $11.9 billion in net debt, which works out to a net-debt ratio of just 7%. Among large energy companies, Chevron has incredible financial flexibility, which can come in handy when it comes to outlaying capital for new projects and making advantageous acquisitions.
Coca-Cola: $736,000,000 in annual-dividend income
The fifth and final income powerhouse that'll collectively allow Warren Buffett to bring in $4.31 billion in annual-dividend income is beverage stock Coca-Cola (NYSE: KO). Coca-Cola has raised its base-annual payout for a jaw-dropping 61 consecutive years and is currently doling out $1.84 per dsshare. With Berkshire Hathaway owning 400 million shares of Coke, it means Buffett's company is on pace to collect $736 million in annual-dividend income from the beverage behemoth.
While it's true that Coca-Cola's growth heyday has long since passed, the company continues to move the needle for its shareholders thanks to its predictable operating cash flow and top-tier marketing. With regard to the former, Coke has operations in all but three countries worldwide (Cuba, North Korea, and Russia). This allows it to collect predictable cash flow in developed markets, while taking advantage of faster organic growth rates in emerging markets.
As for its marketing, Coca-Cola is devoting more than half of its ad budget to digital-media channels. Relying on artificial intelligence (AI) to curate and tailor ads, while also leaning on well-known brand ambassadors, is helping the company engage with, and win over, a younger generation of consumers.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron 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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With Apple (NASDAQ: AAPL) doling out $0.96 annually to its shareholders, and Berkshire holding more than 915 million shares of Apple, Buffett's company is set to collect almost $879 million annually from Wall Street's largest publicly traded company. The biggest catalyst for Occidental Petroleum is the tight global supply of crude oil, which has been caused by a combination of pandemic-related underinvestment by energy majors and the ongoing war between Russia and Ukraine. The transmission pipelines it owns generate predictable operating cash flow, while its chemical plants and refineries offer a hedge against a lower crude oil spot price.
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With Apple (NASDAQ: AAPL) doling out $0.96 annually to its shareholders, and Berkshire holding more than 915 million shares of Apple, Buffett's company is set to collect almost $879 million annually from Wall Street's largest publicly traded company. Based on the more than 1.03 billion shares of BofA that Berkshire Hathaway owns, along with BofA's recently raised payout, that equates to $0.96 annually, Buffett's company will receive nearly $992 million in dividend income over the next 12 months. Occidental Petroleum: $961,373,018 in annual-dividend income (includes preferred stock dividends) Another big-time income generator for Warren Buffett's company is oil stock Occidental Petroleum (NYSE: OXY).
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With Apple (NASDAQ: AAPL) doling out $0.96 annually to its shareholders, and Berkshire holding more than 915 million shares of Apple, Buffett's company is set to collect almost $879 million annually from Wall Street's largest publicly traded company. Occidental Petroleum: $961,373,018 in annual-dividend income (includes preferred stock dividends) Another big-time income generator for Warren Buffett's company is oil stock Occidental Petroleum (NYSE: OXY). Coca-Cola: $736,000,000 in annual-dividend income The fifth and final income powerhouse that'll collectively allow Warren Buffett to bring in $4.31 billion in annual-dividend income is beverage stock Coca-Cola (NYSE: KO).
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With Apple (NASDAQ: AAPL) doling out $0.96 annually to its shareholders, and Berkshire holding more than 915 million shares of Apple, Buffett's company is set to collect almost $879 million annually from Wall Street's largest publicly traded company. Bank of America: $991,537,926 in annual-dividend income The income "breadwinner" of Warren Buffett's portfolio is none other than money-center juggernaut Bank of America (NYSE: BAC), which is better known as BofA. Occidental Petroleum: $961,373,018 in annual-dividend income (includes preferred stock dividends) Another big-time income generator for Warren Buffett's company is oil stock Occidental Petroleum (NYSE: OXY).
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14136.0
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2023-08-25 00:00:00 UTC
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Here's Why Apple's Services Segment Is Crucially Important
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AAPL
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https://www.nasdaq.com/articles/heres-why-apples-services-segment-is-crucially-important
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Fool.com contributor Parkev Tatevosian elaborates on the positive impact the services business has on Apple's (NASDAQ: AAPL) profitability.
*Stock prices used were the afternoon prices of Aug. 22, 2023. The video was published on Aug. 24, 2023.
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Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian elaborates on the positive impact the services business has on Apple's (NASDAQ: AAPL) profitability. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Fool.com contributor Parkev Tatevosian elaborates on the positive impact the services business has on Apple's (NASDAQ: AAPL) profitability. 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 August 21, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian elaborates on the positive impact the services business has on Apple's (NASDAQ: AAPL) profitability. 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.
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Fool.com contributor Parkev Tatevosian elaborates on the positive impact the services business has on Apple's (NASDAQ: AAPL) profitability. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 21, 2023 Parkev Tatevosian, CFA has positions in Apple.
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14137.0
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2023-08-24 00:00:00 UTC
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Stock Market News for Aug 24, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-aug-24-2023
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Wall Street ended sharply higher on Wednesday, buoyed by positive mood in the technology sector. The 10-year treasury yield came down from a 16-year high. All three major indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.5% or 184.15 points to close at 34,472.98. Twenty-two components of the 30-stock index ended in positive territory, one remained unchanged, while seven ended in negative.
The S&P 500 added 1.1%, or 48.46 points, to close at 4,436.01. Ten out of the 11 broad sectors of the benchmark index ended in positive territory. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC) and the Real Estate Select Sector SPDR (XLRE) proceeded 1.8%, 1.6% and 1.5%, respectively, while the Energy Select Sector SPDR (XLE) lost 0.3%.
The tech-heavy Nasdaq gained 1.6%, or 215.16 points to close at 13,721.03.
The fear-gauge CBOE Volatility Index (VIX) was down 5.8% at 15.98. Advancers outnumbered decliners on the NYSE by a 3.74-to-1 ratio. On the Nasdaq, a 2.07-to-1 ratio favored advancing issues.
Expectations About NVIDIA’s Earnings Drive the Market
Upbeat speculations about how NVIDIA Corporation NVDA would fare in its second-quarterearnings calldrove the market on Wednesday. NVIDIA has emerged as one of the success stories of the year, with its share price rising 220% and market cap touching the $1 trillion mark. Throughout the day, positive vibes about the numbers it is going to present and the fuel it will add to the AI boom boosted investor mood. NVDA’s stock rose 3.2%. The technology sector rode on this mood in general.
10-Year Treasury Yield Comes Down From 16-Year High
The benchmark 10-year treasury yield closed at 4.198% on Wednesday, easing from the near 16-year highs it had hit on Tuesday. The yields fell following weak business activity data from the United States and the euro zone.
Usually, when long-term treasury yields fall, mega-cap growth stocks make the most of the situation. Their current valuation seems lucrative, and their prospects are bright. Technology stocks are an example of such mega-cap growth stocks and became the biggest gainers of the day. Investors, however, eagerly await Fed Chair Jerome Powell’s Friday Speech, for direction about the Fed’s policies going forward.
Consequently, shares of Apple Inc. AAPL and Microsoft Corporation MSFT gained 2.2% and 1.4%, respectively. Both carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
Economic Data
Per a government report, for the week ending Aug 18, 2023, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 6.1 million barrels from the previous week.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported that for July, new home sales had increased to 714,000, against a consensus of 702,000 for the period. For June, the previously reported 697,000 was revised down to 684,000 new homes.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : 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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Consequently, shares of Apple Inc. AAPL and Microsoft Corporation MSFT gained 2.2% and 1.4%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. NVIDIA has emerged as one of the success stories of the year, with its share price rising 220% and market cap touching the $1 trillion mark.
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Consequently, shares of Apple Inc. AAPL and Microsoft Corporation MSFT gained 2.2% and 1.4%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. 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?
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, shares of Apple Inc. AAPL and Microsoft Corporation MSFT gained 2.2% and 1.4%, respectively. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC) and the Real Estate Select Sector SPDR (XLRE) proceeded 1.8%, 1.6% and 1.5%, respectively, while the Energy Select Sector SPDR (XLE) lost 0.3%.
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Consequently, shares of Apple Inc. AAPL and Microsoft Corporation MSFT gained 2.2% and 1.4%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. The tech-heavy Nasdaq gained 1.6%, or 215.16 points to close at 13,721.03.
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14138.0
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2023-08-24 00:00:00 UTC
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Unusual Put Option Trade in Apple (AAPL) Worth $1,776.30K
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AAPL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-apple-aapl-worth-%241776.30k
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nan
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nan
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On August 24, 2023 at 10:38:12 ET an unusually large $1,776.30K block of Put contracts in Apple (AAPL) was sold, with a strike price of $180.00 / share, expiring in 113 day(s) (on December 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.41 sigmas above the mean, placing it in the 89.80th percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 6414 funds or institutions reporting positions in Apple. This is an increase of 45 owner(s) or 0.71% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.04%, an increase of 10.43%. Total shares owned by institutions increased in the last three months by 0.12% to 9,933,659K shares.
The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 9.71% Upside
As of August 1, 2023, the average one-year price target for Apple is 198.70. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents an increase of 9.71% from its latest reported closing price of 181.12.
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.
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 465,280K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.22% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% 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 5.48% 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.
Additional reading:
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
APPLE INC. Officer’s Certificate
Press release issued by Apple Inc. on May 4, 2023.
SCHEDULE 13G RELEVANT SUBSIDIARIES AND MEMBERS OF FILING GROUP
SCHEDULE 13G JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k)(1)
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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On August 24, 2023 at 10:38:12 ET an unusually large $1,776.30K block of Put contracts in Apple (AAPL) was sold, with a strike price of $180.00 / share, expiring in 113 day(s) (on December 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.41 sigmas above the mean, placing it in the 89.80th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.04%, an increase of 10.43%.
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On August 24, 2023 at 10:38:12 ET an unusually large $1,776.30K block of Put contracts in Apple (AAPL) was sold, with a strike price of $180.00 / share, expiring in 113 day(s) (on December 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.41 sigmas above the mean, placing it in the 89.80th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.04%, an increase of 10.43%.
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On August 24, 2023 at 10:38:12 ET an unusually large $1,776.30K block of Put contracts in Apple (AAPL) was sold, with a strike price of $180.00 / share, expiring in 113 day(s) (on December 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.41 sigmas above the mean, placing it in the 89.80th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.04%, an increase of 10.43%.
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On August 24, 2023 at 10:38:12 ET an unusually large $1,776.30K block of Put contracts in Apple (AAPL) was sold, with a strike price of $180.00 / share, expiring in 113 day(s) (on December 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.41 sigmas above the mean, placing it in the 89.80th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.04%, an increase of 10.43%.
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14139.0
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2023-08-24 00:00:00 UTC
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Stocks Tumble on a Sell-Off in Mega-Cap Tech Stocks
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AAPL
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https://www.nasdaq.com/articles/stocks-tumble-on-a-sell-off-in-mega-cap-tech-stocks
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) Thursday closed down -1.35%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -1.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.19%.
Stocks on Thursday gave up a morning rally and sold off, with the Dow Jones Industrials falling to a 6-week low. A sell-off in mega-cap technology stock weighed on the overall market. Also, stronger-than-expected U.S. economic news and hawkish Fed comments pushed bond yields higher and sparked long liquidation in stocks ahead of Friday’s speech by Fed Chair Powell.
Stock indexes Thursday morning initially opened higher after Nvidia climbed to a record high and sparked a rally in technology stocks when it reported stronger-than-expected Q2 revenue and forecast Q3 sales well above expectations.
The markets await comments Friday morning from Fed Chair Powell at the Fed’s annual symposium of global central bankers at Jackson Hole, Wyoming. With inflation falling from 40-year highs but still well above the Fed’s 2% target, Powell’s speech will be scoured to determine when the Fed may end its rate hike campaign. ECB President Lagarde will also speak at the event.
Former St. Louis Fed President Bullard said a pickup in economic activity this summer could delay plans for the Fed to end its interest-rate hiking campaign, saying, "This reacceleration could put upward pressure on inflation, stem the disinflation that we're seeing and instead delay plans for the Fed to change policy."
Boston Fed President Collins said it will take time to get inflation to the Fed's 2% goal, and "we may need additional incremental hikes, and we may be very near a place where we can hold rates at restrictive levels for some time."
Philadelphia Fed President Harker thinks policymakers have likely undertaken sufficient tightening and that the Fed has "probably done enough," and he sees interest rates on hold for the rest of the year.
U.S. weekly initial unemployment claims unexpectedly fell -10,000 to 230,000, showing a stronger labor market than expectations of an increase to 240,000.
U.S. July capital goods new orders nondefense ex-aircraft and parts unexpectedly rose +0.1% m/m, right on expectations.
The U.S. July Chicago Fed national activity index rose +0.45 to 0.12, stronger than expectations of -0.22.
The markets are discounting the odds at 72% for a +25 bp rate hike at the September 20 FOMC meeting and 53% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields Thursday were mixed. The 10-year T-note yield rose +4.1 bp to 4.233%. The 10-year German bund yield fell to a 2-week low of 2.447% and is finished down -0.4 bp at 2.513%. The 10-year UK gilt yield fell to a 2-week low of 4.390% and finished down -4.2 bp at 4.426%.
Overseas stock markets Thursday settled mixed. The Euro Stoxx 50 closed down -0.81%. China’s Shanghai Composite Index closed up +0.12%. Japan’s Nikkei Stock Index closed up +0.87%.
Today’s stock movers…
Dollar Tree (DLTR) closed down more than -12% to lead losers in the S&P 500 and Nasdaq 100 after forecasting Q3 EPS of 94 cents to $1.04, weaker than the consensus of $1.29.
A slump in mega-cap technology stocks Thursday weighed on the overall market. Netflix (NFLX) closed down more than -4%. Also, Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), and Tesla (TSLA) closed down more than -2%.
Boeing (BA) closed down more than -4% to lead losers in the Dow Jones Industrials after it reported an issue affecting its 737 Max jet, raising concerns about its delivery target.
Higher bond yields Thursday weighed on chip stocks. As a result, Advanced Micro Devices (AMD) closed down more than -6%, and Intel (INTC) closed down more than -4%. Also, KLA Corp (KLAC), Applied Materials (AMAT), NXP Semiconductors NV (NXPI), Microchip Technology (MCHP), ON Semiconductor (ON), and Lam Research (LRCX) closed down more than -3%. In addition, Qualcomm (QCOM), Western Digital (WDC), Texas Instruments (TXN), and Micron Technology (MU) closed down more than -2%.
Petco (WOOF) closed down more than -20% after forecasting 2024 net revenue of $6.15 billion-$6.28 billion, below the consensus of $6.29 billion.
Medtronic Plc (MDT) closed down more than -3% after saying the FDA’s independent experts panel voted against recommending the company’s blood pressure treatment device, saying the risks do not outweigh the benefits.
U.S. Steel (X) closed down more than -2% after Esmark said it’s no longer pursuing a takeover of the company.
Prudential Financial (PRU) closed up more than +2% after Raymond James upgraded the stock to a “strong buy” with a price target of $125.
Regional bank stocks rose Thursday as they recovered some of this week’s losses. Zions Bancorp (ZION), Truist Financial (TFC), Fifth Third Bancorp (FITB), and KeyCorp (KEY) closed up more than +1%. Also, Comerica (CMA), Citizens Financial Group (CFG), and Huntington Bancshares (HBAN) closed up more than +0.5%.
Autodesk (ADSK) closed up more than +2% to lead gainers in the Nasdaq 100 after reporting Q2 net revenue of $1.35 billion, above the consensus of $1.32 billion, and raising its 2024 revenue forecast to $5.41 billion-$5.46 billion from a previous forecast of $5.36 billion-$5.46 billion, stronger than the consensus of $5.41 billion.
Guess? Inc (GES) closed up more than +25% after reporting Q2 gross margin of 44.2%, better than the consensus of 41.1%, and raising its 2024 adjusted operating margin forecast to 9.0%-9.4% from a prior view of 8.2%-8.8%.
Splunk (SPLK) closed up more than +12% after reporting Q2 revenue of $910.6 million, above the consensus of $886.9 million, and raising its 2024 revenue forecast to $3.93 billion-$3.95 billion from a previous forecast of $3.85 billion-$3.90 billion, stronger than the consensus of $3.90 billion.
Discover Financial Services (DFS) closed up +0.62% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $104.
Across the markets…
September 10-year T-notes (ZNU23) Thursday closed down -10 ticks, and the 10-year T-note yield rose +4.1 bp to 4.233%. Sep T-notes Thursday posted moderate losses and were under pressure after U.S. weekly jobless claims unexpectedly declined, which signals a stronger labor market that is hawkish for Fed policy. Hawkish Fed comments Thursday from Boston Fed President Collins and former St. Louis Fed President Bullard also weighed on T-notes when they said we may need more rate hikes to control inflation. The sell-off in stocks Thursday boosted some safe-haven demand for government debt and limited losses in T-notes.
More Stock Market News from Barchart
Dollar Rallies on Strong U.S. Economic News and Hawkish Fed Crude Closes Slightly Higher on Strength in U.S. Economic News Nat-Gas Prices Gain on Smaller-Than-Expected Weekly EIA Inventories 3 Energy Stocks to Add to Your Dividend Portfolio
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also, Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), and Tesla (TSLA) closed down more than -2%. Boeing (BA) closed down more than -4% to lead losers in the Dow Jones Industrials after it reported an issue affecting its 737 Max jet, raising concerns about its delivery target. Medtronic Plc (MDT) closed down more than -3% after saying the FDA’s independent experts panel voted against recommending the company’s blood pressure treatment device, saying the risks do not outweigh the benefits.
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Also, Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), and Tesla (TSLA) closed down more than -2%. Also, stronger-than-expected U.S. economic news and hawkish Fed comments pushed bond yields higher and sparked long liquidation in stocks ahead of Friday’s speech by Fed Chair Powell. Autodesk (ADSK) closed up more than +2% to lead gainers in the Nasdaq 100 after reporting Q2 net revenue of $1.35 billion, above the consensus of $1.32 billion, and raising its 2024 revenue forecast to $5.41 billion-$5.46 billion from a previous forecast of $5.36 billion-$5.46 billion, stronger than the consensus of $5.41 billion.
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Also, Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), and Tesla (TSLA) closed down more than -2%. What you need to know… The S&P 500 Index ($SPX) (SPY) Thursday closed down -1.35%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -1.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.19%. Autodesk (ADSK) closed up more than +2% to lead gainers in the Nasdaq 100 after reporting Q2 net revenue of $1.35 billion, above the consensus of $1.32 billion, and raising its 2024 revenue forecast to $5.41 billion-$5.46 billion from a previous forecast of $5.36 billion-$5.46 billion, stronger than the consensus of $5.41 billion.
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Also, Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), and Tesla (TSLA) closed down more than -2%. Stock indexes Thursday morning initially opened higher after Nvidia climbed to a record high and sparked a rally in technology stocks when it reported stronger-than-expected Q2 revenue and forecast Q3 sales well above expectations. The 10-year T-note yield rose +4.1 bp to 4.233%.
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14140.0
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2023-08-24 00:00:00 UTC
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The Next Frontier of Tech Investment: 7 Augmented Reality (AR) Stocks for Your Watch List
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AAPL
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https://www.nasdaq.com/articles/the-next-frontier-of-tech-investment%3A-7-augmented-reality-ar-stocks-for-your-watch-list
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The growth potential in the augmented reality market has become increasingly apparent. As evidence of this, major corporations have rebranded, announced AR/VR headsets, and made efforts to snap up digital acreage. Firms are clearly invested in the potential of the AR market for growth. Investors should be too. In fact, we’ll speak about a few of the top augmented reality stocks to buy now in just a moment.
Experts are pegging sector growth at 50% compounded annually between 2023 and 2030. Capital will flow into the sector freely during that period and it will result in tremendous upside for those firms that can seize the opportunity. Major tech names are leading the charge, but they aren’t the only names to watch as the field develops rapidly.
Augmented Reality Stocks to Buy Now: Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
One of the top augmented reality stocks to buy now is Apple (NASDAQ:AAPL), which arguably has the most momentum of any stock in relation to augmented reality.
The stock could push even higher with its AR innovations, too. All as Apple moves to release its Vision Pro augmented reality headset in the first quarter of next year. It will be the company’s first new product release since the Apple Watch in 2015 and is expected to sell for just under $3,500 a pop.
Even better, Apple remains one of the market’s top investment opportunities thanks to its dominance of the iPhone, and augmented reality products. While iPhone sales are the main contributor to Apple’s success in time Vision Pro may be able to bolster the business, perhaps very positively.
Autodesk (ADSK)
Source: JHVEPhoto / Shutterstock.com
Another one of the top augmented reality stocks to buy is Autodesk (NASDAQ:ADSK), a leading computer-aided drawing (CAD) firm. Its software dominates the space and has a large following across multiple industries. CAD allows designers to create 3D representations of physical objects and spaces, which has an obvious carryover to the world of augmented reality.
One of the more notable developments in that regard is Autodesk’s CAD-to-AR Autodesk Inventor. The technology integrates Unity’s (NYSE:U) game engine with an augmented reality engine. Autodesk is hoping that it can capture a significant portion of the market by becoming a go-to solution for creators in the field.
In addition, AutoDesk is working to develop a monetizable platform to take advantage of the opportunity to transform 2D designs into immersive and interactive models.
Augmented Reality Stocks to Buy: NexTech AR Solutions (NEXCF)
Source: Zapp2Photo/Shutterstock
Or, take a look at NexTech AR Solutions (OTCMKTS:NEXCF), another one of the more interesting augmented reality stocks to buy. At the moment, it’s a penny stock but has multi-bagger potential. The company combines 3D and AR technologies, powered by AI. Thus, it benefits from having a lot of buzzwords attached to it. NexTech AR Solutions provides those solutions for the purpose of e-commerce marketing and events.
The company acts as a parent firm for firms that it develops or acquires. It spins those firms out to shareholders issuing dividends and retaining control in said firms. Thus far, NexTech AR Solutions has spun out two firms, ARway.ai (OTCMKTS:ARWYF) and Toggle3D.ai (OTCMKTS:TGGLF). Those firms both center on the augmented reality space.
The company is growing rapidly and has delivered more than 50,000 3D models to its clients to date.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
Qualcomm (NASDAQ:QCOM) continues to develop AR glasses that will compete with Apple’s Vision Pro in the future.
What I find interesting is the design for Qualcomm’s AR glasses and the idea the product may one day replace cell phones. Granted, it’s tough to imagine users making calls through AR glasses instead of a phone, but I still believe such a product could offer a sizable catalyst for QCOM growth.
In addition, I believe QCOM is a strong investment because it provides dividend (2.95% yield) income and has defined aspirations that give it the potential to become much bigger moving forward.
Augmented Reality Stocks to Buy: Nvidia (NVDA)
Source: Evolf / Shutterstock.com
Right now, Nvidia (NASDAQ:NVDA) is best known because of the emergence of artificial intelligence. The firm produces the most powerful AI chips and is benefiting from a massive spike in demand thanks to its position.
Nvidia is also a leader in the graphics space. It’s the leader in graphics processing units (GPUs) and has a huge presence throughout gaming in general. That graphics prowess will undoubtedly extend into the AR/VR/XR space moving forward.
It’s fair to say that investors will be watching Nvidia more in relation to AI in the near future. However, next year, major firms are releasing AR headsets. and that will shift some of the interest back to AR/VR/XR. In short, Nvidia is highly likely to continue to become a more and more dominant tech firm as time goes on.
Meta Platforms (META)
Source: Ascannio / Shutterstock.com
Meta Platforms (NASDAQ:META) has sold more than 20 million VR headsets. CEO Mark Zuckerberg was focused on the fact that there are now more than 10 million active devices and stated that the figure represents a critical threshold for adoption.
It’s difficult to argue against that skepticism given the financial results that underpin Reality Labs. If 10 million active users is some sort of important threshold that signifies mass adoption then Meta should also let investors know what that means for losses. It’s hard to understand why investors should continue to buy into the rebrand if losses spiral further. Critical adoption shouldn’t coincide with bigger and bigger losses.
The point here is that if Meta wants to persuade investors of the AR opportunity it must do more to market the idea of mass adoption having already occurred. Meta states that mass adoption is here so Meta must proactively market that idea. That makes losses more palatable while also paving a path toward profitability.
Immersion (IMMR)
Source: Shutterstock
Immersion (NASDAQ:IMMR) stock is arguably a strong proxy of AR demand. The company develops and licenses haptic technology or the science of applying touch.
The reason I believe Immersion is a reasonable proxy for AR demand lies in its business model. The company’s revenues are almost entirely attributable to licensing. About $6.9 million of its $7 million in Q2 revenues came from licensing. A year earlier that ratio was $7.9 million of its $8 million in revenues for the period.
Immersion is a relatively small firm so it might not accurately represent AR overall. Nevertheless, it at least provides some sort of barometer. Fundamentally speaking, the positive sign for IMMR stock is that it has completed a turnaround. The firm posted a net loss of more than $1.8 million a year ago. That became a $7 million net gain in Q2 2023. If nothing else, IMMR is headed in the right direction.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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It doesn’t matter if you have $500 or $5 million. Do this now.
The post The Next Frontier of Tech Investment: 7 Augmented Reality (AR) Stocks for Your Watch List appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Augmented Reality Stocks to Buy Now: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com One of the top augmented reality stocks to buy now is Apple (NASDAQ:AAPL), which arguably has the most momentum of any stock in relation to augmented reality. Granted, it’s tough to imagine users making calls through AR glasses instead of a phone, but I still believe such a product could offer a sizable catalyst for QCOM growth. In addition, I believe QCOM is a strong investment because it provides dividend (2.95% yield) income and has defined aspirations that give it the potential to become much bigger moving forward.
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Augmented Reality Stocks to Buy Now: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com One of the top augmented reality stocks to buy now is Apple (NASDAQ:AAPL), which arguably has the most momentum of any stock in relation to augmented reality. Augmented Reality Stocks to Buy: NexTech AR Solutions (NEXCF) Source: Zapp2Photo/Shutterstock Or, take a look at NexTech AR Solutions (OTCMKTS:NEXCF), another one of the more interesting augmented reality stocks to buy. Immersion (IMMR) Source: Shutterstock Immersion (NASDAQ:IMMR) stock is arguably a strong proxy of AR demand.
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Augmented Reality Stocks to Buy Now: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com One of the top augmented reality stocks to buy now is Apple (NASDAQ:AAPL), which arguably has the most momentum of any stock in relation to augmented reality. Autodesk (ADSK) Source: JHVEPhoto / Shutterstock.com Another one of the top augmented reality stocks to buy is Autodesk (NASDAQ:ADSK), a leading computer-aided drawing (CAD) firm. Augmented Reality Stocks to Buy: NexTech AR Solutions (NEXCF) Source: Zapp2Photo/Shutterstock Or, take a look at NexTech AR Solutions (OTCMKTS:NEXCF), another one of the more interesting augmented reality stocks to buy.
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Augmented Reality Stocks to Buy Now: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com One of the top augmented reality stocks to buy now is Apple (NASDAQ:AAPL), which arguably has the most momentum of any stock in relation to augmented reality. Firms are clearly invested in the potential of the AR market for growth. Augmented Reality Stocks to Buy: NexTech AR Solutions (NEXCF) Source: Zapp2Photo/Shutterstock Or, take a look at NexTech AR Solutions (OTCMKTS:NEXCF), another one of the more interesting augmented reality stocks to buy.
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14141.0
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2023-08-24 00:00:00 UTC
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US STOCKS-Wall St falls as Nvidia boost fades, caution sets in ahead of Powell speech
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-nvidia-boost-fades-caution-sets-in-ahead-of-powell-speech
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Aug 24 (Reuters) - Wall Street's main indexes fell on Thursday, as an initial boost from Nvidia's stellar forecast fizzled out and investors turned cautious ahead of Federal Reserve Chair Jerome Powell's speech later this week that will offer clues on the interest rate path.
Shares of NvidiaNVDA.O pared much of their earlier gains and were last up only 1.4%, slipping from a record high of $502.66 hit earlier in the session.
Analysts pointed to profit-taking after a strong run of gains heading into the chip designer's second-quarter results.
"The entire market has been in 'sell the news' mode. (Nvidia) was an incredibly crowded long (position) as was technology in general, and traders were primed to sell initial up moves," said Michael James, managing director of equity trading at Wedbush Securities.
Shares of major technology and growth stocks such as Apple Inc AAPL.O, Netflix NFLA.O, Tesla TSLA.O and Meta Platforms META.O reversed course from their premarket moves, falling between 1.8% and 4.5%.
Investors had hoped that Nvidia results would revive a rally in broader stock markets that had stalled recently due to concerns about interest rates staying higher for longer.
Fed Chair Jerome Powell's speech at an annual central bank summit in Jackson Hole on Friday could provide further clarity on the direction for U.S. interest rates.
Philadelphia Fed President Patrick Harker in an interview on Thursday said the Fed will need to keep rates restrictive for a while.
"I'd be surprised if this is the moment that they (policymakers) choose to unveil a significant change in the trajectory they have been on. I think it'll be a somewhat continued hawkish discussion from the Fed," said Ben Kirby, co-head of investments at Thornburg Investment Management.
Traders' bet of the central bank holding its interest rate at current levels in the September policy meet slipped to 80.5% from 84.5% earlier, according to the CME FedWatch Tool.
The yield on the 10-year Treasury note US10YT=RR edged higher on Thursday, further pressuring equities. US/
At 11:48 a.m. ET, the Dow Jones Industrial Average .DJI was down 179.31 points, or 0.52%, at 34,293.67, the S&P 500 .SPX was down 33.90 points, or 0.76%, at 4,402.11, and the Nasdaq Composite .IXIC was down 175.61 points, or 1.28%, at 13,545.42.
Pressuring the cyclicals-heavy Dow, BoeingBA.N fell 3.8% after the planemaker said it had recently identified a new 737 MAX quality problem involving supplier Spirit AeroSystems SPR.N that will delay near-term deliveries.
Dollar Tree DLTR.O lost 10.1% after the retailer forecast annual profit largely below estimates.
Declining issues outnumbered advancers for a 1.79-to-1 ratio on the NYSE and for a 2.58-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and nine new lows, while the Nasdaq recorded 29 new highs and 147 new lows.
Stocks and the Fed's Jackson Hole event https://tmsnrt.rs/3qIbE97
(Reporting by Amruta Khandekar, Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Savio D'Souza and Shinjini Ganguli)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and 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 major technology and growth stocks such as Apple Inc AAPL.O, Netflix NFLA.O, Tesla TSLA.O and Meta Platforms META.O reversed course from their premarket moves, falling between 1.8% and 4.5%. By Amruta Khandekar and Shristi Achar A Aug 24 (Reuters) - Wall Street's main indexes fell on Thursday, as an initial boost from Nvidia's stellar forecast fizzled out and investors turned cautious ahead of Federal Reserve Chair Jerome Powell's speech later this week that will offer clues on the interest rate path. (Nvidia) was an incredibly crowded long (position) as was technology in general, and traders were primed to sell initial up moves," said Michael James, managing director of equity trading at Wedbush Securities.
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Shares of major technology and growth stocks such as Apple Inc AAPL.O, Netflix NFLA.O, Tesla TSLA.O and Meta Platforms META.O reversed course from their premarket moves, falling between 1.8% and 4.5%. By Amruta Khandekar and Shristi Achar A Aug 24 (Reuters) - Wall Street's main indexes fell on Thursday, as an initial boost from Nvidia's stellar forecast fizzled out and investors turned cautious ahead of Federal Reserve Chair Jerome Powell's speech later this week that will offer clues on the interest rate path. Fed Chair Jerome Powell's speech at an annual central bank summit in Jackson Hole on Friday could provide further clarity on the direction for U.S. interest rates.
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Shares of major technology and growth stocks such as Apple Inc AAPL.O, Netflix NFLA.O, Tesla TSLA.O and Meta Platforms META.O reversed course from their premarket moves, falling between 1.8% and 4.5%. By Amruta Khandekar and Shristi Achar A Aug 24 (Reuters) - Wall Street's main indexes fell on Thursday, as an initial boost from Nvidia's stellar forecast fizzled out and investors turned cautious ahead of Federal Reserve Chair Jerome Powell's speech later this week that will offer clues on the interest rate path. Investors had hoped that Nvidia results would revive a rally in broader stock markets that had stalled recently due to concerns about interest rates staying higher for longer.
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Shares of major technology and growth stocks such as Apple Inc AAPL.O, Netflix NFLA.O, Tesla TSLA.O and Meta Platforms META.O reversed course from their premarket moves, falling between 1.8% and 4.5%. Shares of NvidiaNVDA.O pared much of their earlier gains and were last up only 1.4%, slipping from a record high of $502.66 hit earlier in the session. Analysts pointed to profit-taking after a strong run of gains heading into the chip designer's second-quarter results.
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14142.0
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2023-08-24 00:00:00 UTC
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These Are the ONLY 3 Blue-Chip Stocks to Consider in August 2023
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AAPL
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https://www.nasdaq.com/articles/these-are-the-only-3-blue-chip-stocks-to-consider-in-august-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market is sliding lower in August, and volatility has returned to equities. So what’s an investor to do? The best defense in times like these is to put capital into reliable blue-chip stocks. These stocks of established, profitable companies generate plenty of free cash flow and have a proven track record of rewarding shareholders through stock performance or a combination of dividend payments and share buybacks.
Coming out of the second-quarter earnings season, some blue-chip stocks look better than others. These include several household names that perform well in any economic environment. While some stocks are overly susceptible to higher interest rates or an economic downturn, others have proven to be resilient in good times and bad. These are the ONLY three blue-chip stocks to consider in August 2023.
Walmart (WMT)
Source: fotomak / Shutterstock.com
Walmart (NYSE:WMT) looks like a good bet after the world’s largest retailer crushed Wall Street estimates for its second-quarter financial results and raised its full-year guidance. Due to robust grocery sales and online spending, Walmart reported Q2 earnings per share (EPS) of $1.84 versus $1.71, which was expected on the Street. Revenue in the period totaled $161.63 billion compared to $160.27 billion, which was the consensus expectation among analysts who covered the company.
The Arkansas-based retailer said its e-commerce sales during Q2 rose 24% from a year earlier. Same-store sales increased 6.4% from a year ago. Looking ahead, Walmart now expects full-year sales to increase between 4% and 4.50%, and EPS for the year will range between $6.36 and $6.46. That compares with previous guidance for net sales of 3.50% and EPS of $6.10 to $6.20. Shares of Walmart have risen 10% since the start of the year. If not for the current market downturn, WMT stock would likely be higher after the Q2 print.
Berkshire Hathaway (BRK-A, BRK-B)
Source: IgorGolovniov / Shutterstock.com
Never bet against Warren Buffett. The stock of Buffett’s holding company, Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), recently closed at an all-time high after reporting exceptional second-quarter results. Berkshire’s Class A stock rose 3.4% to close at an all-time high of $551,920, beating the share’s previous high set in March 2022. Buffett’s company’s more affordable Class B stock increased 3.6% to hit a new record close of $362.58 a share. Berkshire’s Class B stock has now increased a total of 22% over the last 12 months.
The record highs were achieved after Berkshire Hathaway reported that its operating earnings rose 6.6% year-over-year to $10.04 billion in Q2 of this year. Berkshire also reported that its cash holdings reached nearly $150 billion in Q2, near record levels and much higher than the $130.62 billion reported in Q1. Earnings from the holding company’s insurance underwriting business rose 74%, helping to offset weakness in the BNSF railroad that Berkshire Hathaway owns.
Berkshire also impressed with a $26 billion unrealized gain from its investments, much of which was due to its $177.6 billion holding of Apple (NASDAQ:AAPL) stock. AAPL shares rose nearly 18% in Q2.
Home Depot (HD)
Source: Rob Wilson / Shutterstock.com
Retailer Home Depot (NYSE:HD) also just announced second-quarter financial results that beat Wall Street forecasts on both the top and bottom lines. The Atlanta-based home improvement company reported EPS of $4.65 versus the $4.45 that analysts anticipated. Revenue in the April through June period came in at $42.92 billion compared to $42.23 billion that had been forecast. The latest print marked the first time in three quarters that Home Depot beat Wall Street’s revenue expectations.
However, despite the strong showing, Home Depot maintained its muted guidance for the remainder of this year, saying it still expects comparable sales to decline between 2% and 5% from 2022 levels. Company executives said they continue to see cautious spending by consumers on big-ticket items such as appliances. As a result, comparable sales company-wide declined by 2% in Q2, marking the third consecutive quarter of falling sales.
Home Depot’s stock fell due to the guidance issued and is up only 3% on the year. Investors should view it as a buying opportunity. Especially as Home Depot just announced a new $15 billion share buyback program that takes effect immediately.
On the date of publication, Joel Baglole 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.
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 These Are the ONLY 3 Blue-Chip Stocks to Consider in August 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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Berkshire also impressed with a $26 billion unrealized gain from its investments, much of which was due to its $177.6 billion holding of Apple (NASDAQ:AAPL) stock. AAPL shares rose nearly 18% in Q2. Earnings from the holding company’s insurance underwriting business rose 74%, helping to offset weakness in the BNSF railroad that Berkshire Hathaway owns.
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Berkshire also impressed with a $26 billion unrealized gain from its investments, much of which was due to its $177.6 billion holding of Apple (NASDAQ:AAPL) stock. AAPL shares rose nearly 18% in Q2. Walmart (WMT) Source: fotomak / Shutterstock.com Walmart (NYSE:WMT) looks like a good bet after the world’s largest retailer crushed Wall Street estimates for its second-quarter financial results and raised its full-year guidance.
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Berkshire also impressed with a $26 billion unrealized gain from its investments, much of which was due to its $177.6 billion holding of Apple (NASDAQ:AAPL) stock. AAPL shares rose nearly 18% in Q2. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market is sliding lower in August, and volatility has returned to equities.
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Berkshire also impressed with a $26 billion unrealized gain from its investments, much of which was due to its $177.6 billion holding of Apple (NASDAQ:AAPL) stock. AAPL shares rose nearly 18% in Q2. The record highs were achieved after Berkshire Hathaway reported that its operating earnings rose 6.6% year-over-year to $10.04 billion in Q2 of this year.
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14143.0
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2023-08-24 00:00:00 UTC
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3 Vanguard ETFs That Could Help You Retire a Millionaire
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AAPL
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https://www.nasdaq.com/articles/3-vanguard-etfs-that-could-help-you-retire-a-millionaire-8
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nan
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nan
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Investing is a powerful tool for building wealth. It's probably easier than you think to retire a millionaire -- especially if you get started early.
All you need is a reliable exchange-traded fund (ETF) with low annual expenses, some starting capital, a firm commitment to adding more cash over time, and just enough luck to match the ETF's average returns in the long term. Oh, and a few decades of your time. That's all.
Read on, and I'll show you how long it would take to reach the million-dollar pinnacle with a couple of top-quality ETFs from Vanguard. These index funds come with minimal fees and impressive long-term returns. The slow and steady investing spirit of Vanguard founder John Bogle will serve you well over the years.
Charting your path to $1 million with Vanguard ETFs
I probably don't know you personally, and I most certainly don't know much about your financial situation. With that in mind, here's what I can do for you.
VANGUARD ETF
COMPOUND ANNUAL GROWTH RATE OF TOTAL RETURNS, SINCE INCEPTION
LAUNCH DATE
ANNUAL EXPENSE RATIO
Vanguard Information Technology ETF (NYSEMKT: VGT)
12.4%
Jan. 26, 2004
0.10%
Vanguard Mega Cap Growth ETF (NYSEMKT: MGK)
11.5%
Dec. 17, 2007
0.07%
Vanguard S&P 500 ETF (NYSEMKT: VOO)
13.4%
Sept. 7, 2010
0.03%
Data sources: Vanguard and YCharts on August 23, 2023.
Higher average rewards also come with higher potential risks, and no investment is guaranteed to maintain a steady return forever. The best performers of years past may also turn more volatile in a challenging market and deliver disappointing returns from time to time. Therefore, you should pick a Vanguard ETF that matches your appetite for risk and your targeted results.
The ultra-steady S&P 500 fund can get the job done for people with a long investing timeline. You might get there faster with the tech-focused index trackers, which have shown colossal returns in recent years -- with the caveat that they are more likely to run into occasional slowdowns this way. For example, the Mega Cap ETF and Information Technology ETF have pulverized the S&P 500's results over the last decade. Ranging from 15% to 20% per year, these recent results are so strong that I don't feel comfortable using them as reasonable long-term average targets in my calculations:
MGK Total Return Level data by YCharts
Feel free to adjust the figures I'm using below until they show what you can afford to invest. I'll show you the numbers in two different strategies for three Vanguard ETFs.
The target value will always be $1 million. In one model, you'll start from zero dollars and add $200 per month. In the other, you put $20,000 into the chosen ETF and leave it untouched. Both models will assume that you set up a dividend reinvestment plan, which automatically reinvests dividend payouts into more shares of the same ETF.
And in the end, I'll tell you how long it took to reach $1 million in each case. This way, you'll get an idea how much market risk you must accept in order to reach the million-dollar goal in the time you have left before retirement.
All that being said, let's look at the numbers in chronological order.
Vanguard Information Technology ETF: 12.4% CAGR
The information technology tracker has been around for almost two decades. Vanguard rates it an aggressive fund, warning prospective investors that it exposes your portfolio to unusually large price fluctuations.
It matches the MSCI US Investable Market Information Technology 25/50 Index. This, in turn, is a market index managed by MSCI, tracking the returns of American information technology stocks. The index is rebalanced quarterly, triggering identical changes to the holding in Vanguard's ETF.
The three largest components, as of the July 31 update, are iPhone maker Apple, software giant Microsoft, and semiconductor designer Nvidia. Together, these three stocks account for 47.4% of this cap-weighted index's value. The ETF currently manages a portfolio of 323 stocks.
On a dividend-adjusted total return basis, this ETF has delivered a compound annual growth rate (CAGR) of 12.4% since its inception in 2004. Over the last decade, the CAGR spiked all the way to 19.7%. It is generally not safe to assume that overheated annual returns of that caliber can continue for the foreseeable future, which is why I'll work with the more modest all-time average instead.
STARTING INVESTMENT
MONTHLY INVESTMENT
YEARS
TOTAL CASH INVESTMENT
FINAL BALANCE
$20,000
$0
32
$20,000
$1,036,258
$0
$200
33
$79,200
$1,115,143
Data calculated on Aug. 23, 2023, using an online tool from NerdWallet and average return data from YCharts.
Vanguard Mega Cap Growth ETF: 11.5% CAGR
The mega cap growth ETF is classified as moderate to aggressive. It's a little bit younger than its information technology cousin, and it tracks a smaller basket of 96 stocks.
This one tracks the CRSP US Mega Cap Growth index, which is managed by the Center for Research in Security Prices -- a subsidiary of the University of Chicago. The index manager sorts stocks into different size classes and also classifies each ticker as either a growth stock or a value stock. In this case, the Vanguard ETF follows the CRSP index for mega-cap growth stocks, with the smallest market cap clocking in at $10 billion.
Rebalanced on a quarterly basis, the mega-cap growth index also counted Apple and Microsoft among its largest holdings as of June 30. Online services titan Alphabet snagged the third place, pushing Nvidia further down the list. The trio at the top add up to 37.67% of the total index weight.
STARTING INVESTMENT
MONTHLY INVESTMENT
YEARS
TOTAL CASH INVESTMENT
FINAL BALANCE
$20,000
$0
35
$20,000
$1,098,354
$0
$200
34
$81,600
$1,001,292
Data calculated on Aug. 23, 2023, using an online tool from NerdWallet and average return data from YCharts.
Vanguard S&P 500 ETF: 13.4% CAGR
The largest and most robust ETF in my study also clocked the strongest annual returns. It should be noted that it's also the youngest asset of the bunch, even though the index has been around since 1957. It falls under the same risk rating as the mega- cap ETF, classified as moderate to aggressive.
This exchange-traded fund mirrors the returns of its namesake market index, which many investors see as a fair barometer for the stock market as a whole. Managed by S&P Global, the S&P 500 includes 503 stock tickers representing 500 companies. The names are selected each quarter, representing the 500 largest U.S. businesses as measured by market cap and meeting a couple of additional criteria.
As expected, Apple and Microsoft also top the June 30 version of this list. There's another new name in third place, as e-commerce and cloud computing expert Amazon grabs a seat. Nvidia is No. 4 in this case, followed by Alphabet -- all familiar faces, shuffled in a different order. Here, the top three of a 503-ticker ranking list account for just 17.2% of the overall index weight.
STARTING INVESTMENT
MONTHLY INVESTMENT
YEARS
TOTAL CASH INVESTMENT
FINAL BALANCE
$20,000
$0
30
$20,000
$1,089,477
$0
$200
31
$74,400
$1,096,814
Data calculated on Aug. 23, 2023, using an online tool from NerdWallet and average return data from YCharts.
Pick your million-dollar path
Whether you've got a bundle to invest right off the bat or a consistent trickle to add over time, there's a strategy to suit your pocket and your risk tolerance.
Fancy the adrenaline of tech with the Information Technology ETF? Prefer to spread your wings with the diverse Mega Cap Growth ETF? Or maybe the broad market appeal of the S&P 500 ETF is more your pace. Whatever your style, these ETFs offer a tried-and-true map to grow your investment. Just remember, the investment journey is a marathon, not a sprint.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Alphabet, Amazon.com, Nvidia, Vanguard S&P 500 ETF, and Vanguard Information Technology ETF. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, Nvidia, S&P Global, and Vanguard S&P 500 ETF. 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 is generally not safe to assume that overheated annual returns of that caliber can continue for the foreseeable future, which is why I'll work with the more modest all-time average instead. This one tracks the CRSP US Mega Cap Growth index, which is managed by the Center for Research in Security Prices -- a subsidiary of the University of Chicago. Pick your million-dollar path Whether you've got a bundle to invest right off the bat or a consistent trickle to add over time, there's a strategy to suit your pocket and your risk tolerance.
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Vanguard Information Technology ETF (NYSEMKT: VGT) 12.4% Jan. 26, 2004 0.10% Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) 11.5% Dec. 17, 2007 0.07% Vanguard S&P 500 ETF (NYSEMKT: VOO) 13.4% Sept. 7, 2010 0.03% Data sources: Vanguard and YCharts on August 23, 2023. Ranging from 15% to 20% per year, these recent results are so strong that I don't feel comfortable using them as reasonable long-term average targets in my calculations: MGK Total Return Level data by YCharts Feel free to adjust the figures I'm using below until they show what you can afford to invest. Vanguard Mega Cap Growth ETF: 11.5% CAGR The mega cap growth ETF is classified as moderate to aggressive.
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Vanguard Information Technology ETF (NYSEMKT: VGT) 12.4% Jan. 26, 2004 0.10% Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) 11.5% Dec. 17, 2007 0.07% Vanguard S&P 500 ETF (NYSEMKT: VOO) 13.4% Sept. 7, 2010 0.03% Data sources: Vanguard and YCharts on August 23, 2023. Vanguard Mega Cap Growth ETF: 11.5% CAGR The mega cap growth ETF is classified as moderate to aggressive. Anders Bylund has positions in Alphabet, Amazon.com, Nvidia, Vanguard S&P 500 ETF, and Vanguard Information Technology ETF.
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This way, you'll get an idea how much market risk you must accept in order to reach the million-dollar goal in the time you have left before retirement. This exchange-traded fund mirrors the returns of its namesake market index, which many investors see as a fair barometer for the stock market as a whole. Anders Bylund has positions in Alphabet, Amazon.com, Nvidia, Vanguard S&P 500 ETF, and Vanguard Information Technology ETF.
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14144.0
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2023-08-24 00:00:00 UTC
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The Ultimate Warren Buffett Stock to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/the-ultimate-warren-buffett-stock-to-buy-right-now
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nan
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nan
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U.S. stock markets were unusually strong in the first half of 2023 as the rally in tech stocks helped add over $4 trillion to the market cap of Nasdaq Composite ($NASX) constituents. In fact, the index rose almost 32% to have its best first-half performance in four decades.
However, markets have weakened in August, and major equity indices have now closed with losses for three consecutive weeks. Apple (AAPL), which is Berkshire Hathaway’s (BRK.B) biggest holding and among Warren Buffett's favorite companies, is down nearly 10% from its 2023 highs.
Incidentally, while all other FAANG stocks still trade below their all-time highs, Apple hit new record highs in 2023, and its closing market cap surpassed $3 trillion – adding a new milestone for the iPhone maker, which was previously the first company ever to have a market cap of $1 trillion and $2 trillion.
While Buffett hasn’t added any more Apple shares in 2023 - and has otherwise been a net seller of stocks in 2023 - I believe that after the recent pullback, AAPL is the ultimate Warren Buffett stock to buy at current levels.
Apple Stock Fell After Fiscal Q3 Earnings
To begin with, let’s look at Apple’s performance in the June quarter. In its fiscal Q3 2023, Apple reported revenues of $81.8 billion, which was 1% lower YoY – and the third consecutive quarter where the company’s revenue fell on a yearly basis. The revenues did, however, come in slightly ahead of estimates – and so did its EPS of $1.26.
www.barchart.com
The quarterly beat was driven by strength in the high-margin Services business, where revenues rose 8% YoY to $21.21 billion, and Apple now boasts an installed base of over 2 billion devices, along with the prospect of recurring revenues from 1 billion paid subscriptions.
However, disappointed investors turned their attention instead to a steeper-than-expected fall in iPhone and iPad sales for the quarter. Global smartphone sales have been tepid for the last several quarters, as the market has stagnated after the demand bump in 2020 and 2021, when sales of new gadgets soared amid Covid-19 lockdowns and work-from-home trends.
Why AAPL Looks Like a Good Buy Now
After the recent pullback, I believe Apple stock looks like a good buy right now for the following reasons:
Financially strong companies like Apple tend to outperform the wider markets in periods of economic uncertainty, like the one we're in currently. AAPL, incidentally, was the best-performing FAANG stock in 2022 - and the only constituent in the elite group to outperform the Nasdaq, as investors sought shelter in financially sound companies with strong cash flows and balance sheets. After the recent sell-off, Apple’s next-12-month price-to-earnings multiple has dropped to 28.1x. While it does not appear outright cheap, it is much more reasonable than it was before earnings – and is largely in line with where the stock has traded over the last three years. The upcoming iPhone 15 launch in September could be a near-term catalyst for Apple stock. Earlier this month, Citi opened a 90-day catalyst watch on Apple, and analyst Atif Malik raised the stock's target price to $240, noting, “Recent U.S. supply chain discussions point to strong replacement cycle potential in [the] iPhone 12 installed base.” Notably, Citi’s analysis shows that since 2016, Apple shares have outperformed the S&P 500 ($SPX) every year between the release of fiscal Q3 earnings and the announcement of the iPhone in September. What’s Warren Buffett’s View on Apple Stock?
The “Oracle of Omaha” has a very bullish view of Apple, which he sees as a consumer products company and not a tech company.
Currently, the iPhone maker is the single biggest holding for Berkshire Hathaway - and while Buffett did sell some Apple shares in 2020, the legendary value investor said during Berkshire's 2021 shareholder meeting that the decision was “probably a mistake.”
Buffett reiterated his optimism on the stock at this year’s annual meeting, describing Apple as “a better business than any we own."
AAPL Stock Forecast
Wall Street analysts have a Moderate Buy rating on Apple stock.
www.barchart.com
Of the 29 analysts that cover AAPL, 18 rate it a Strong Buy, 3 a Moderate Buy, and 8 a Hold. While Apple’s stock price had outpaced its average target price heading into its fiscal Q3 earnings, that's no longer the case. The current average price target of $205.07 implies expected upside of 15%, while the Street-high target price of $240 is a premium of 34.6%.
Apple is an iconic brand with appeal across the world, and 2 billion active installed devices. This vast user base is a captive market for Apple as it diversifies into multiple other industries - including the banking space, where it launched a savings account with 4.15% APY. The tech giant is also eyeing the healthcare industry, and as far back as 2019, Cook said that improving people’s health would be "Apple’s greatest contribution to mankind.”
These ventures - along with Apple's foray into augmented reality (AR) headsets, and further expansion into emerging markets like India - could prove to be net positives, though they'll likely take some time to yield results.
With the macroeconomic environment looking somewhat shaky amid rising bond yields, we could see a continued flight to safety among investors - and Apple might see a renewed interest from investors, given its perception as a “safe haven company.”
On the date of publication, Mohit Oberoi 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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AAPL, incidentally, was the best-performing FAANG stock in 2022 - and the only constituent in the elite group to outperform the Nasdaq, as investors sought shelter in financially sound companies with strong cash flows and balance sheets. Apple (AAPL), which is Berkshire Hathaway’s (BRK.B) biggest holding and among Warren Buffett's favorite companies, is down nearly 10% from its 2023 highs. While Buffett hasn’t added any more Apple shares in 2023 - and has otherwise been a net seller of stocks in 2023 - I believe that after the recent pullback, AAPL is the ultimate Warren Buffett stock to buy at current levels.
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Apple (AAPL), which is Berkshire Hathaway’s (BRK.B) biggest holding and among Warren Buffett's favorite companies, is down nearly 10% from its 2023 highs. While Buffett hasn’t added any more Apple shares in 2023 - and has otherwise been a net seller of stocks in 2023 - I believe that after the recent pullback, AAPL is the ultimate Warren Buffett stock to buy at current levels. Why AAPL Looks Like a Good Buy Now After the recent pullback, I believe Apple stock looks like a good buy right now for the following reasons: Financially strong companies like Apple tend to outperform the wider markets in periods of economic uncertainty, like the one we're in currently.
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Why AAPL Looks Like a Good Buy Now After the recent pullback, I believe Apple stock looks like a good buy right now for the following reasons: Financially strong companies like Apple tend to outperform the wider markets in periods of economic uncertainty, like the one we're in currently. Apple (AAPL), which is Berkshire Hathaway’s (BRK.B) biggest holding and among Warren Buffett's favorite companies, is down nearly 10% from its 2023 highs. While Buffett hasn’t added any more Apple shares in 2023 - and has otherwise been a net seller of stocks in 2023 - I believe that after the recent pullback, AAPL is the ultimate Warren Buffett stock to buy at current levels.
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While Buffett hasn’t added any more Apple shares in 2023 - and has otherwise been a net seller of stocks in 2023 - I believe that after the recent pullback, AAPL is the ultimate Warren Buffett stock to buy at current levels. Apple (AAPL), which is Berkshire Hathaway’s (BRK.B) biggest holding and among Warren Buffett's favorite companies, is down nearly 10% from its 2023 highs. Why AAPL Looks Like a Good Buy Now After the recent pullback, I believe Apple stock looks like a good buy right now for the following reasons: Financially strong companies like Apple tend to outperform the wider markets in periods of economic uncertainty, like the one we're in currently.
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14145.0
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2023-08-24 00:00:00 UTC
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US STOCKS-Wall St gains on Nvidia boost, caution sets in ahead of Powell speech
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-on-nvidia-boost-caution-sets-in-ahead-of-powell-speech
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Aug 24 (Reuters) - Wall Street's main indexes rose on Thursday, following a stellar forecast from chip designer Nvidia NVDA.O though caution ahead of Federal Reserve Chair Jerome Powell's speech later this week kept gains in check.
The chip designer late on Wednesday forecast quarterly revenue that far exceeded expectations, boosting investor confidence in an artificial intelligence (AI) boom, and said it would buy back $25 billion in stock.
Shares of Nvidia were last up only 3%, slipping from a fresh record high of $502.66 earlier in the session, with some analysts pointing to profit-taking after a strong run of gains heading into the second-quarter results.
"When you look at an equity that's up 220% on a year to date basis, there's always room for profit taking," said Art Hogan, chief market strategist at B Riley Wealth.
Nvidia's results also lifted Microsoft MSFT.O and Alphabet GOOGL.O, which were up 0.7% and 0.2%, respectively. Both companies have been rushing to incorporate generative AI into their web search platforms.
However, shares of other technology-linked stocks such as Apple Inc AAPL.O, Tesla TSLA.O and Meta Platforms META.O reversed course from premarket moves, falling between 0.6% and 1.7%.
Investors were hoping that Nvidia results would revive a rally in broader stock markets which had stalled recently due to concerns about interest rates staying higher for longer.
A Labor Department report showed initial claims for state unemployment benefits stood at 230,000 for the week ended Aug. 19, against expectations of 240,000 as polled by Reuters, suggesting a still-tight labor market.
Separate data showed new orders for key U.S.-manufactured capital goods rose modestly in July, suggesting business spending on equipment could continue to grow.
The reports came ahead of a speech by Fed Chair Jerome Powell at an annual central bank summit in Jackson Hole on Friday that would offer more clues on the direction for the U.S. interest rates.
"The Jackson Hole last year was not good for markets. So you've got a little bit of a down shift into a wait-and-see mode to ascertain what Powell is going to sound like this year at Jackson Hole," said Hogan.
Traders' bet of the central bank holding its interest rate at current levels in the September policy meet was intact at 84.5%.
At 9:38 a.m. ET, the Dow Jones Industrial Average .DJI was up 13.27 points, or 0.04%, at 34,486.25, the S&P 500 .SPX was up 10.32 points, or 0.23%, at 4,446.33, and the Nasdaq Composite .IXIC was up 45.52 points, or 0.33%, at 13,765.47.
Pressuring the cyclicals-heavy Dow, Boeing BA.N fell 3.9% after the planemaker said it had recently identified a new 737 MAX quality problem involving supplier Spirit AeroSystems SPR.N that will delay near-term deliveries.
Dollar TreeDLTR.O lost 9.6% after the retailer forecast annual profit largely below estimates.
Advancing issues outnumbered decliners by a 1.29-to-1 ratio on the NYSE and for a 1.29-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and 7 new lows, while the Nasdaq recorded 25 new highs and 82 new lows.
Nvidia outpaces markets in 2023 on AI-boom https://tmsnrt.rs/44iKL9r
(Reporting by Amruta Khandekar, Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Savio D'Souza and Shinjini Ganguli)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and 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, shares of other technology-linked stocks such as Apple Inc AAPL.O, Tesla TSLA.O and Meta Platforms META.O reversed course from premarket moves, falling between 0.6% and 1.7%. By Amruta Khandekar and Shristi Achar A Aug 24 (Reuters) - Wall Street's main indexes rose on Thursday, following a stellar forecast from chip designer Nvidia NVDA.O though caution ahead of Federal Reserve Chair Jerome Powell's speech later this week kept gains in check. The chip designer late on Wednesday forecast quarterly revenue that far exceeded expectations, boosting investor confidence in an artificial intelligence (AI) boom, and said it would buy back $25 billion in stock.
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However, shares of other technology-linked stocks such as Apple Inc AAPL.O, Tesla TSLA.O and Meta Platforms META.O reversed course from premarket moves, falling between 0.6% and 1.7%. By Amruta Khandekar and Shristi Achar A Aug 24 (Reuters) - Wall Street's main indexes rose on Thursday, following a stellar forecast from chip designer Nvidia NVDA.O though caution ahead of Federal Reserve Chair Jerome Powell's speech later this week kept gains in check. The reports came ahead of a speech by Fed Chair Jerome Powell at an annual central bank summit in Jackson Hole on Friday that would offer more clues on the direction for the U.S. interest rates.
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However, shares of other technology-linked stocks such as Apple Inc AAPL.O, Tesla TSLA.O and Meta Platforms META.O reversed course from premarket moves, falling between 0.6% and 1.7%. By Amruta Khandekar and Shristi Achar A Aug 24 (Reuters) - Wall Street's main indexes rose on Thursday, following a stellar forecast from chip designer Nvidia NVDA.O though caution ahead of Federal Reserve Chair Jerome Powell's speech later this week kept gains in check. The reports came ahead of a speech by Fed Chair Jerome Powell at an annual central bank summit in Jackson Hole on Friday that would offer more clues on the direction for the U.S. interest rates.
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However, shares of other technology-linked stocks such as Apple Inc AAPL.O, Tesla TSLA.O and Meta Platforms META.O reversed course from premarket moves, falling between 0.6% and 1.7%. Shares of Nvidia were last up only 3%, slipping from a fresh record high of $502.66 earlier in the session, with some analysts pointing to profit-taking after a strong run of gains heading into the second-quarter results. The reports came ahead of a speech by Fed Chair Jerome Powell at an annual central bank summit in Jackson Hole on Friday that would offer more clues on the direction for the U.S. interest rates.
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14146.0
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2023-08-24 00:00:00 UTC
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ROKU Users in Canada Can Now Access CBC Gem on Its Platform
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AAPL
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https://www.nasdaq.com/articles/roku-users-in-canada-can-now-access-cbc-gem-on-its-platform
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nan
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nan
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Roku ROKU and CBC have introduced CBC Gem, the national public broadcaster's streaming service, on the ROKU platform in Canada. CBC Gem offers a range of vital Canadian series and a thoughtfully curated assortment of renowned global content.
The platform includes more than 800 documentaries, 500 hours of ad-free content for children and tweens and a collection of over 200 Canadian feature films. With the inclusion of CBC Gem, Roku users can access more than 6,500 hours of live and on-demand programming at no cost via the Roku streaming player or Roku TV. Additionally, Radio-Canada's ICI TOU.TV streaming service is also now available on Roku devices in Canada.
Roku users can enjoy content from a highly reputable Canadian news outlet, which includes a free 24/7 ad-supported streaming channel and live broadcasts of 14 regional newscasts via CBC channels spanning the nation.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
Roku’s Other Partnerships to Boost Platform Revenues
Roku has entered into some notable partnerships with NBCUniversal and Miss Universe. These partnerships are likely to boost the company’s quality of content. This is expected to positively impact the company’s platform revenues as well as active accounts in the upcoming quarters.
The Zacks Consensus Estimate for ROKU’s 2023 platform revenues is pegged at $2.9 billion, indicating a year-over-year increase of 7.38%. The consensus estimate for 2023 active accounts is pegged at 78.69 million, indicating year-over-year growth of 12.41%.
NBCUniversal (“NBCU”) and Roku have launched fresh, ad-supported streaming TV linear content options on The Roku Channel. These offerings showcase popular content from the NBCU Global Distribution library, with additional channels scheduled for later in the year.
The Miss Universe Organization, responsible for the yearly Miss Universe competition, has unveiled fresh multi-year distribution agreements with Telemundo and The Roku Channel. These deals encompass the U.S. streaming and broadcast sectors, catering to English and Spanish audiences. The 72nd Annual Finale of Miss Universe event is scheduled to air on Nov 18.
ROKU faces tough competition from giants like Google GOOGL, Amazon AMZN and Apple AAPL.
Google TV has truly refined its user experience in 2020. The latest Chromecast model has addressed previous bugs and issues and it supports a wide array of streaming apps, including YouTube and Spotify. However, it might have some limitations in storage management.
Amazon Fire TV is designed for those deeply embedded in Amazon's ecosystem, prioritizing its content and offering a strong voice interface. However, sometimes it feels more like an advertisement platform for Amazon products rather than a diverse app and content ecosystem.
Apple TV has a polished interface and its usual fineness. It supports most apps but seems to treat TV boxes as a secondary focus. AAPL seems more invested in its Apple TV+ subscription service and app rather than the hardware itself.
Shares of this Zacks Rank #3 (Hold) company have gained 97.2% year to date compared with the Zacks Consumer Discretionary sector’s rise of 9.3% in the same time frame due to its extensive collection of nearly all available streaming apps and a seamless setup process. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Additionally, the company’s versatility allows users to effortlessly relocate the Roku device to any TV within one’s home. Moreover, ROKU is independent among the prominent tech giants and relies solely on the success of its streaming platform for sustenance.
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 >>
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Roku, Inc. (ROKU) : 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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ROKU faces tough competition from giants like Google GOOGL, Amazon AMZN and Apple AAPL. AAPL seems more invested in its Apple TV+ subscription service and app rather than the hardware itself. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here. ROKU faces tough competition from giants like Google GOOGL, Amazon AMZN and Apple AAPL. AAPL seems more invested in its Apple TV+ subscription service and app rather than the hardware itself.
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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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here. ROKU faces tough competition from giants like Google GOOGL, Amazon AMZN and Apple AAPL. AAPL seems more invested in its Apple TV+ subscription service and app rather than the hardware itself.
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ROKU faces tough competition from giants like Google GOOGL, Amazon AMZN and Apple AAPL. AAPL seems more invested in its Apple TV+ subscription service and app rather than the hardware itself. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here.
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14147.0
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2023-08-24 00:00:00 UTC
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3 Dividend Stocks to Buy and Hold Until You Retire
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AAPL
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https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-and-hold-until-you-retire
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nan
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Retirement is a big problem for many Americans. According to a recent poll from BlackRock, just 56% of people believe that they will be able to retire comfortably and have the life they want in their golden years.
One way you can improve your financial position in the long run is by generating dividend income. And you can accomplish that by investing in strong businesses that not only pay dividends today but that are also likely to increase them in the years ahead.
Three dividend stocks that are among the safest options for including in your retirement plan now are UnitedHealth Group (NYSE: UNH), Apple (NASDAQ: AAPL), and Walmart (NYSE: WMT). They may not offer high yields, but here's why they may be worth investing in anyway.
1. UnitedHealth Group
Health insurer UnitedHealth pays a dividend that yields 1.4%, which is broadly in line with the S&P 500 average. What investors will love about this stock is that its business is resilient and has strong growth prospects. Whether it's through acquisitions (it has closed on multiple deals within just the past year) or simply the population getting older and needing more ongoing care, UnitedHealth's financials should continue to improve, as they have over the past decade.
UNH Revenue (Annual) data by YCharts.
The healthcare company's payout ratio is a modest 31% of earnings, leaving plenty of room for UnitedHealth to make rate hikes in the future. That means your dividend income should rise over the years. While the yield is modest right now, the dividend could end up representing more of your original investment the longer you hold onto the stock.
UnitedHealth recently increased its dividend by 14%. If it were to consistently raise its payouts each year by that rate, it would take six years for the payout to double. All in all, UnitedHealth is a great dividend growth stock to own and can be an ideal option for long-term investors.
2. Apple
Consumer tech titan Apple has a devoted legion of followers, which is why its high-priced devices, including iPhones, often enjoy strong demand. Even now, amid inflation and when consumers are supposedly tightening up their spending, the company still only reported a 4% drop in product sales last quarter, which ended on July 1. With profits rising and Apple often buying back shares, its per-share profit of $1.26 was still up by 5% year over year.
Apple has a robust business that continues to get more diverse and rely more on services -- a trend that's likely to persist for the foreseeable future. Although its dividend yield is low at less than 0.6%, this is another dividend growth play for long-term investors. The proof is in the charts below. Even as the company has more than doubled its dividend over the past decade, its payout ratio has actually been declining.
AAPL Dividend data by YCharts.
There is a ton more room for the dividend to grow, and that's why this can make for an underrated income investment to own, particularly for long-term investors.
3. Walmart
Earlier this year, Walmart raised its dividend for the 50th straight year, making it a Dividend King. It's the only stock on this list to belong to that exclusive club. Investors shouldn't, however, expect huge rate increases from Walmart as in five years, its dividend has gone up by just five cents.
But like the other stocks on this list, investors get stability and consistency, which is arguably more important when you're talking about saving for retirement. Between the stock's potential to rise in value along with the dividend income you'll earn, Walmart, like Apple and UnitedHealth, can be a solid pillar to build your portfolio around.
The big-box retailer's strength is its size and versatility. Last week it reported earnings for the second quarter, which ended on July 31, and sales totaling $161.6 billion were up nearly 6% year over year. And operating income also rose by 7%.
A strong grocery business makes the retailer more resilient than others in the industry. Walmart is another solid investment for risk-averse investors to consider loading up on for both its growth potential and its reliable dividend income.
10 stocks we like better than UnitedHealth Group
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They just revealed what they believe are the ten best stocks for investors to buy right now... and UnitedHealth Group 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 August 21, 2023
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Walmart. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Three dividend stocks that are among the safest options for including in your retirement plan now are UnitedHealth Group (NYSE: UNH), Apple (NASDAQ: AAPL), and Walmart (NYSE: WMT). AAPL Dividend data by YCharts. The healthcare company's payout ratio is a modest 31% of earnings, leaving plenty of room for UnitedHealth to make rate hikes in the future.
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Three dividend stocks that are among the safest options for including in your retirement plan now are UnitedHealth Group (NYSE: UNH), Apple (NASDAQ: AAPL), and Walmart (NYSE: WMT). AAPL Dividend data by YCharts. The healthcare company's payout ratio is a modest 31% of earnings, leaving plenty of room for UnitedHealth to make rate hikes in the future.
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Three dividend stocks that are among the safest options for including in your retirement plan now are UnitedHealth Group (NYSE: UNH), Apple (NASDAQ: AAPL), and Walmart (NYSE: WMT). AAPL Dividend data by YCharts. Walmart Earlier this year, Walmart raised its dividend for the 50th straight year, making it a Dividend King.
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Three dividend stocks that are among the safest options for including in your retirement plan now are UnitedHealth Group (NYSE: UNH), Apple (NASDAQ: AAPL), and Walmart (NYSE: WMT). AAPL Dividend data by YCharts. If it were to consistently raise its payouts each year by that rate, it would take six years for the payout to double.
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14148.0
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2023-08-24 00:00:00 UTC
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Guru Fundamental Report for AAPL - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-62
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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14149.0
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2023-08-24 00:00:00 UTC
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Stock Market Sell-Off: Where to Invest $500 Right Now
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AAPL
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https://www.nasdaq.com/articles/stock-market-sell-off%3A-where-to-invest-%24500-right-now-1
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nan
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After rallying much of 2023, major indexes like the S&P 500 and Nasdaq Composite have experienced a slight slump during August so far. Leading the way (in the wrong direction) is the world's most valuable public company, Apple (NASDAQ: AAPL), down over 10% since the beginning of August.
Double-digit percentage drops aren't ideal for current investors, but this pullback may be a good chance to begin loading up on the stock. If you have $500 available to invest, Apple is a compelling option considering its long-term prospects and dividend.
Slowing iPhone sales should be a temporary problem
There isn't usually too much to criticize about Apple's financials, but believe it or not, it's not immune from the impact of changing economic conditions and trends.
In its third quarter (ended July 1), Apple made $81.8 billion in revenue, down 1% year over year (YOY). The good news: That quarterly revenue is higher than most companies' yearly revenue (Wells Fargo, Pfizer, and Boeing, to name a few). The could-be-better news: Apple's had several consecutive quarters of negative YOY revenue growth.
Data by YCharts.
Much of Apple's lagging revenue growth can be attributed to slowing iPhone sales recently. The iPhone is Apple's foundation, accounting for more than 48% of its Q3 revenue. Unfortunately, iPhone sales were almost $1 billion less than in Q3 2022.
Slowing sales on a product that essentially carries the company's balance sheet isn't the most encouraging thing, but keeping a perspective on why is important. Smartphone sales, in general, have been decreasing as inflation has been putting extra pressure on consumers' pockets. In the first quarter of 2023, smartphone shipments globally dropped 14.6% YOY, according to IDC. Declines in the U.S. were better but still down 11.5% YOY.
Smartphone troubles should be turning the corner late into 2023 and heading into 2024, which should bode well for Apple and its iPhone sales.
Apple's services are beginning to handle their own weight
There's no doubt that Apple goes as the iPhone goes, but other subdivisions are beginning to handle their own, especially its services segment. Services are by far Apple's second-most-lucrative segment, bringing in $21.2 billion in Q3, but more encouraging is how much of Apple's total revenue it's beginning to account for.
TIME PERIOD SERVICES SEGMENT REVENUE PERCENTAGE OF TOTAL REVENUE
FY 2019 $46.2 billion 18%
FY 2020 $53.7 billion 20%
FY 2021 $68.4 billion 19%
FY 2022 $78.1 billion 20%
Q3 2023 $21.2 billion 26%
Data source: Apple quarterly filings. Percentages rounded to the nearest percent. FY = fiscal year.
The growth of Apple's services is important for a few reasons. First, regardless of how successful the iPhone is (arguably the most successful consumer product ever), having so much of your business rely on a single product isn't ideal.
Services also have much higher margins than physical products. For each piece of hardware Apple sells, it had to incur an additional cost to make it. Generally speaking, once initial costs happen, the only additional costs from services are maintenance, support, and occasional updates. That's largely why Apple's Q3 profits were up despite declining iPhone, Mac, and iPad sales.
Apple is still in the early stages of its services offerings, but it's picking up steam fast -- especially in financials and healthcare. Those are two sectors that Apple has been slowly but surely making its way into (think: Apple Card and Apple Watch capabilities), but at some point, you imagine the company will put the pedal to the metal and aggressively expand in those areas.
Don't let the valuation be a deterrent
You can call Apple's stock many things, but "cheap" isn't necessarily one of them. With a price-to-earnings ratio of just below 30, Apple is trading at a premium, even after its August decline. Still, long-term investors shouldn't harp too much on Apple's valuation, considering the company's growth potential.
While it's not seen as a dividend stock, Apple pays a $0.24 quarterly dividend. Its trailing 12-month yield is well below the S&P 500 average, but it's a true two-for-one when considering the growth potential in its stock price.
Sometimes it's as simple as, "Is this a company I feel comfortable holding onto for decades?" In my opinion, the answer should be an overwhelming yes for Apple. A $500 investment now could go a long way down the road.
10 stocks we like better than Apple
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Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple and Pfizer. 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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Leading the way (in the wrong direction) is the world's most valuable public company, Apple (NASDAQ: AAPL), down over 10% since the beginning of August. Double-digit percentage drops aren't ideal for current investors, but this pullback may be a good chance to begin loading up on the stock. Slowing iPhone sales should be a temporary problem There isn't usually too much to criticize about Apple's financials, but believe it or not, it's not immune from the impact of changing economic conditions and trends.
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Leading the way (in the wrong direction) is the world's most valuable public company, Apple (NASDAQ: AAPL), down over 10% since the beginning of August. The good news: That quarterly revenue is higher than most companies' yearly revenue (Wells Fargo, Pfizer, and Boeing, to name a few). FY 2019 $46.2 billion 18% FY 2020 $53.7 billion 20% FY 2021 $68.4 billion 19% FY 2022 $78.1 billion 20% Q3 2023 $21.2 billion 26% Data source: Apple quarterly filings.
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Leading the way (in the wrong direction) is the world's most valuable public company, Apple (NASDAQ: AAPL), down over 10% since the beginning of August. Apple's services are beginning to handle their own weight There's no doubt that Apple goes as the iPhone goes, but other subdivisions are beginning to handle their own, especially its services segment. FY 2019 $46.2 billion 18% FY 2020 $53.7 billion 20% FY 2021 $68.4 billion 19% FY 2022 $78.1 billion 20% Q3 2023 $21.2 billion 26% Data source: Apple quarterly filings.
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Leading the way (in the wrong direction) is the world's most valuable public company, Apple (NASDAQ: AAPL), down over 10% since the beginning of August. Much of Apple's lagging revenue growth can be attributed to slowing iPhone sales recently. Unfortunately, iPhone sales were almost $1 billion less than in Q3 2022.
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14150.0
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2023-08-24 00:00:00 UTC
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2 Dividend-Paying Tech Stocks to Buy and Hold for 10 Years
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AAPL
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https://www.nasdaq.com/articles/2-dividend-paying-tech-stocks-to-buy-and-hold-for-10-years
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nan
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nan
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Which sector is the best to find excellent dividend stocks? That's a tricky question, but the technology sector is usually not the first that comes to investors' minds when considering dividends. However, that doesn't mean it's impossible to find corporations that will appeal to income-seekers among the dozens of technology companies on the market. Here are two that deserve serious consideration for long-term investors: Apple (NASDAQ: AAPL) and eBay (NASDAQ: EBAY).
1. Apple
Apple is an outstanding dividend stock despite its admittedly unimpressive yield of just 0.54%, much lower than the S&P 500's 1.54%. But that's where the disappointment ends. The tech giant has increased its dividends at a steady rate over the past 10 years, it boasts a highly conservative cash payout ratio that shows it can sustain plenty more increases, and most importantly, the dividend is backed by an incredibly resilient business with plenty of growth prospects.
AAPL Dividend data by YCharts.
The company has become an expert at putting its own spin on existing tech and making its version extremely popular -- from the iPhone to AirPods. Apple's brand loyalty means it can charge what may sometimes seem exorbitant prices for its devices, and it continues to generate solid revenue even during challenging economic times when no one needs a new phone, much less one that costs hundreds of dollars.
But Apple's most exciting growth avenues arguably lie in its services segment. The company has created a large ecosystem of more than 2 billion people who use its devices. It provides them with various services, from Apple Pay to iCloud to Apple Music. Manufacturing hardware is an expensive business that carries relatively low margins. By contrast, Apple's services unit carries much juicier margins. And as long as its ecosystem grows, Apple can find more ways to monetize its user base. Apple TV+ hasn't been around for that long. In recent years, Apple has also sought to make a stronger push within the highly promising fintech industry.
That's just two of the most promising examples. One of the strengths of Apple's ecosystem is that it boasts high switching costs. Even something as seemingly simple as migrating data from an iPhone to an Android device can be annoying. Further, once customers are plugged into Apple's ecosystem, they get all sorts of small but useful perks they would lose by leaving. For instance, Apple's devices interact with each other in neat and surprisingly helpful ways.
Apple's innovative capabilities and economic moat have been the engine behind its growth story over the past decade. The next 10 years won't be that different, in my view. Apple should make significant headway within its services segment while remaining a hardware giant. Strong revenue, earnings, and free-cash-flow growth will follow, and, of course, Apple will also reward shareholders with increasing dividends.
2. eBay
eBay was a bit of a pioneer in the e-commerce industry. The company has been around for well over two decades, and in that time, competition in the field has gotten significantly more fierce. That's part of what's been hindering eBay's growth. The company's top-line growth has been somewhat lackluster for years, although it experienced a spike in 2020 -- like other e-commerce leaders.
EBAY Revenue (Quarterly YoY Growth) data by YCharts.
eBay's number of buyers has also been declining, for the most part, since before the pandemic. However, there are plenty of redeeming qualities for eBay. First, the company is looking to turn things around. One of its strategic initiatives that is paying off is the greater focus on its advertising business through its promoted listing offering, where it allows sellers on the platform to promote their products and boost visibility on its website, thereby leading to more conversions.
In the second quarter, eBay's first-party ad business delivered revenue of $341 million, 47% higher than the year-ago period, largely thanks to its promoted listing products. eBay's total revenue of $2.5 billion increased by just 5% compared to the year-ago period. eBay is pivoting its business in other ways, for instance through its focus categories segment. These categories include items many buyers are passionate about (and spend a lot of money on), such as watches, sneakers, trading cards, parts and accessories, etc.
The e-commerce sector still has plenty of growth ahead, and eBay's top line should continue to move in the right direction -- and at a faster rate -- as it homes in on these (and other) opportunities. Second, eBay benefits from the network effect, like many other e-commerce giants. More sellers on the platform will attract more buyers, and vice versa. Knocking eBay out as one of the leading and most recognizable e-commerce companies will be difficult.
eBay hasn't been paying a dividend for long. It started doing so only in 2019. But in that time, the company has raised its payouts consistently.
EBAY Dividend data by YCharts.
eBay offers a yield of 2.32%. And its cash payout ratio of about 22% suggests plenty more room for dividend hikes. In the next 10 years, I expect eBay to make solid headway with its strategic initiatives, remain an e-commerce leader, and maintain the dividend streak it has had over the past few years.
10 stocks we like better than Apple
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*Stock Advisor returns as of August 14, 2023
Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends eBay and recommends the following options: short October 2023 $52.50 calls on eBay. 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 that deserve serious consideration for long-term investors: Apple (NASDAQ: AAPL) and eBay (NASDAQ: EBAY). AAPL Dividend data by YCharts. Apple's brand loyalty means it can charge what may sometimes seem exorbitant prices for its devices, and it continues to generate solid revenue even during challenging economic times when no one needs a new phone, much less one that costs hundreds of dollars.
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Here are two that deserve serious consideration for long-term investors: Apple (NASDAQ: AAPL) and eBay (NASDAQ: EBAY). AAPL Dividend data by YCharts. The tech giant has increased its dividends at a steady rate over the past 10 years, it boasts a highly conservative cash payout ratio that shows it can sustain plenty more increases, and most importantly, the dividend is backed by an incredibly resilient business with plenty of growth prospects.
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Here are two that deserve serious consideration for long-term investors: Apple (NASDAQ: AAPL) and eBay (NASDAQ: EBAY). AAPL Dividend data by YCharts. Apple Apple is an outstanding dividend stock despite its admittedly unimpressive yield of just 0.54%, much lower than the S&P 500's 1.54%.
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Here are two that deserve serious consideration for long-term investors: Apple (NASDAQ: AAPL) and eBay (NASDAQ: EBAY). AAPL Dividend data by YCharts. Which sector is the best to find excellent dividend stocks?
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14151.0
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2023-08-24 00:00:00 UTC
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Is WisdomTree U.S. Quality Dividend Growth ETF (DGRW) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-quality-dividend-growth-etf-dgrw-a-strong-etf-right-now-8
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nan
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nan
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The WisdomTree U.S. Quality Dividend Growth ETF (DGRW) was launched on 05/22/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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
DGRW is managed by Wisdomtree, and this fund has amassed over $9.64 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. DGRW seeks to match the performance of the WisdomTree U.S. Quality Dividend Growth Index before fees and expenses.
The WisdomTree U.S. Quality Dividend Growth Index is a fundamentally weighted index that consists of dividend-paying stocks with growth characteristics.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.28%, making it on par with most peer products in the space.
DGRW's 12-month trailing dividend yield is 1.91%.
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.
Representing 29.50% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Consumer Staples and Industrials round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 7.89% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ).
The top 10 holdings account for about 35.12% of total assets under management.
Performance and Risk
The ETF has added roughly 10.79% and is up about 10.10% so far this year and in the past one year (as of 08/24/2023), respectively. DGRW has traded between $53.91 and $68.50 during this last 52-week period.
DGRW has a beta of 0.88 and standard deviation of 15.04% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 299 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $23.82 billion in assets, Vanguard Dividend Appreciation ETF has $68.33 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): 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, Microsoft Corp (MSFT) accounts for about 7.89% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. Quality Dividend Growth ETF (DGRW) was launched on 05/22/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 7.89% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index.
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Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 7.89% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). The WisdomTree U.S. Quality Dividend Growth ETF (DGRW) was launched on 05/22/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 7.89% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. Quality Dividend Growth ETF (DGRW) was launched on 05/22/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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14152.0
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2023-08-24 00:00:00 UTC
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3 Artificial Intelligence (AI) Stocks With More Potential Than Any Cryptocurrency
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AAPL
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https://www.nasdaq.com/articles/3-artificial-intelligence-ai-stocks-with-more-potential-than-any-cryptocurrency
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nan
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nan
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According to data from Grand View Research, the world's most popular cryptocurrency, Bitcoin, is projected to have a compound annual growth rate (CAGR) of 27% through 2030. Meanwhile, the artificial intelligence (AI) market is expected to have a CAGR of 36% in the same period.
While other crypto options might offer more growth, it's hard to justify passing up the reliability of the tech market for the potential volatility that has become commonplace among cryptocurrencies.
The launch of OpenAI's ChatGPT last November kicked off a boom in AI and has attracted countless tech companies. It is expected to boost numerous sectors across tech, including cloud computing, healthcare, consumer products, education, and more. As a result, investing in the companies pushing the technology could be a way to enjoy significant gains over the long term.
Here are three artificial intelligence stocks with more potential than any cryptocurrency.
1. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) has a history of outperforming the crypto market. Its stock has climbed about 425% in the last five years, with Bitcoin's price rising 310% in the same period. Even since the start of 2023, AMD has offered more growth than the cryptocurrency.
The chipmaker is investing heavily in AI, pouring significant resources into developing hardware that will match market leader Nvidia's products.
In June, it debuted the MI300X, which the company calls its most powerful graphics process unit (GPU). It remains to be seen what companies will use the MI300X, but AMD has lots of support since increased competition will bring down the cost of chips.
It also expanded its position in AI last year with the acquisition of Xilinx, which has developed software that uses AI accelerators. And that experience in the field led AMD to bring on Victor Peng, former president of Xilinx, as its head of AI strategy.
As a leading chipmaker, AMD has great possibilities in AI, with its growth history giving it more potential than any cryptocurrency, making its stock an attractive buy this month.
2. Amazon
Amazon (NASDAQ: AMZN) has exciting prospects in artificial intelligence as the home of the world's largest cloud platform, Amazon Web Services (AWS). The company has made a major push into the technology this year by unveiling several new AI tools on that platform.
In June, the company debuted Bedrock, a service that helps clients build chatbots and image generators. Another new service, CodeWhisperer, is geared toward developers by producing code. And HealthScribe can transcribe meetings between doctors and patients.
These new services attracted thousands of customers to AWS, with Sony, Ryanair, and Sun Life Financial among the companies recently signing on to use Bedrock.
Amazon is further diversifying its position in AI by becoming one of the first cloud companies to venture into chip production. The company announced in June that it had developed two new chips, promising the best price-to-performance in the market. The tech giant's brand recognition and dominance in the cloud industry could attract many companies to its hardware.
Amazon's stock has increased by 61% since Jan. 1, outperforming Bitcoin and Ethereum. With expanding positions in multiple areas of AI, the company could offer far more gains over the long term.
3. Apple
Apple (NASDAQ: AAPL) holds leading market shares in smartphones, tablets, smartwatches, and headphones. This command over tech gives it the potential to become a leading driver in the public adoption of AI. Studies have proven consumers' preference for Apple's products, which will be the tools to get AI into the hands of millions of users worldwide.
In early August, Tim Cook said in anearnings callthat an increase in research and development spending was driven primarily by work on generative AI. And Bloomberg reported in July that Apple has built its own framework for creating large language models and has used it to develop an AI chatbot that its engineers have dubbed Apple GPT.
The iPhone maker is gradually introducing AI-enabled features across its product lineup. In June, Apple announced a revamp to the iPhone's autocorrect that uses a language model to better predict users' texting styles. AirPods Pro will automatically turn off noise canceling once the wearer starts a conversation, a feature made possible by AI.
Apple is the world's most valuable company, becoming the first to achieve a market cap of $3 trillion earlier this year. The company's journey in AI isn't as far along as it is for companies like Microsoft or Amazon. However, that could mean its stock has more room to run. Meanwhile, its dominance in multiple areas of tech and vast resources could take it far with AI. And with that, Apple's stock is a far better bet than any cryptocurrency.
10 stocks we like better than Advanced Micro Devices
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 Advanced Micro Devices 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 August 21, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Bitcoin, Ethereum, 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 Apple (NASDAQ: AAPL) holds leading market shares in smartphones, tablets, smartwatches, and headphones. According to data from Grand View Research, the world's most popular cryptocurrency, Bitcoin, is projected to have a compound annual growth rate (CAGR) of 27% through 2030. As a leading chipmaker, AMD has great possibilities in AI, with its growth history giving it more potential than any cryptocurrency, making its stock an attractive buy this month.
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Apple Apple (NASDAQ: AAPL) holds leading market shares in smartphones, tablets, smartwatches, and headphones. Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) has a history of outperforming the crypto market. With expanding positions in multiple areas of AI, the company could offer far more gains over the long term.
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Apple Apple (NASDAQ: AAPL) holds leading market shares in smartphones, tablets, smartwatches, and headphones. As a leading chipmaker, AMD has great possibilities in AI, with its growth history giving it more potential than any cryptocurrency, making its stock an attractive buy this month. The company's journey in AI isn't as far along as it is for companies like Microsoft or Amazon.
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Apple Apple (NASDAQ: AAPL) holds leading market shares in smartphones, tablets, smartwatches, and headphones. Amazon is further diversifying its position in AI by becoming one of the first cloud companies to venture into chip production. Amazon's stock has increased by 61% since Jan. 1, outperforming Bitcoin and Ethereum.
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14153.0
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2023-08-24 00:00:00 UTC
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1 Pricey FAANG Stock Billionaires Are Buying Hand Over Fist and 2 They're Surprisingly Selling
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AAPL
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https://www.nasdaq.com/articles/1-pricey-faang-stock-billionaires-are-buying-hand-over-fist-and-2-theyre-surprisingly
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nan
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nan
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As an investor, it's easy to become overwhelmed by the amount of data at your disposal. Corporate earnings releases and economic data make it easy to potentially miss important announcements. On Monday, Aug. 14, one of those important data releases may have slipped below investors' radars.
August 14 marked the last day for fund managers with at least $100 million under management to file Form 13F with the Securities and Exchange Commission. A 13F provides a snapshot of what stocks and exchange-traded funds the top institutional investors and hedge funds were holding in the most recent quarter. In other words, it's a way for everyday investors to see what Wall Street's smartest investors have been buying and selling.
The latest round of 13Fs showed some very interesting buying and selling activity among the popular FAANG stocks.
Image source: Getty Images.
By "FAANG," I'm referring to:
Facebook, which is now a subsidiary of parent Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Over the trailing decade, the FAANG stocks have vastly outperformed the benchmark S&P 500 and are primarily responsible for the huge rally in the Nasdaq Composite on a year-to-date basis.
These five companies are also leaders within their respective industries. For instance, Meta Platforms owns four of the world's most popular social media destinations (Facebook, WhatsApp, Instagram, and Facebook Messenger), which helped it draw 3.88 billion unique monthly users in the second quarter. Meanwhile, Netflix dominates domestic and international streaming service market share. Buying leaders with impenetrable moats or first-mover advantages has often been a smart move for investors.
However, billionaires have a mixed view of the FAANG stocks -- at least based on recently filed 13Fs. One of the priciest FAANG stocks was an exceptionally popular buy, while two perceived values were pretty aggressively sold by billionaire money managers.
The sensationalist FAANG stock billionaires are buying hand over fist: Apple
Among the five FAANG stocks, the one that billionaire money managers couldn't stop buying in the June-ended quarter is tech giant Apple. All told, a half-dozen billionaire investors piled in, including (number of shares purchased in Q2 listed in parenthesis):
Jim Simons at Renaissance Technologies (4,912,234 shares)
John Overdeck and David Siegel at Two Sigma Investments (1,003,490 shares)
Israel Englander at Millennium Management (559,040 shares)
David Tepper at Appaloosa Management (480,000 shares)
Ken Fisher at Fisher Asset Management (417,648 shares)
Billionaires' love of Apple likely has to do with its brand, innovation, and capital-return program. In terms of the former, Apple is viewed as one of the most recognized and valuable brands in the world. Its exceptionally loyal customer base has translated into big-time sales growth.
With regard to innovation, Apple is delivering from a physical product and subscription services standpoint. The company's iPhone is far and away the leading smartphone sold in the United States. Meanwhile, Apple's services revenue continues to grow by the quarter and should provide a way to minimize sales fluctuations often seen during iPhone replacement cycles.
It also doesn't hurt that Apple has repurchased around $600 billion worth of its stock since the beginning of 2013. A reduced outstanding share count has helped lift Apple's earnings per share over time.
But when push comes to shove, Apple is one of the priciest FAANG stocks. It's trading at roughly 24 times cash flow, yet is fully expected to report a low-single-digit decline in sales and profits for fiscal 2023 (Apple's fiscal year ends in late September). What makes this sales decline even more eye-popping is that inflation has been well above-average. Even with meaningful pricing power and innovation as tailwinds, Apple's growth engine has stalled.
FAANG stock No. 1 billionaire investors are surprisingly selling: Alphabet
On the other side of the aisle, billionaire fund managers were surprising big-time sellers of Alphabet, the parent company of internet search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo. Four prominent billionaires were sellers of Alphabet's Class A shares (GOOGL), including (number of shares sold in Q2 listed in parenthesis):
Chase Coleman at Tiger Global Management (4,551,949 shares)
Dan Loeb at Third Point (3,325,000 shares)
Steven Cohen at Point72 Asset Management (3,299,177 shares)
Ray Dalio at Bridgewater Associates (348,344 shares)
The most logical reason for billionaires to be skeptical of Alphabet in the short term is the company's reliance on advertising for the bulk of its revenue. Though the U.S. economy has proved more resilient than most people expected, numerous economic data points and predictive tools still suggest that a downturn is likely. Advertisers are usually quick to reduce spending at the first signs of weakness, which wouldn't be good news for Alphabet.
However, this is a relatively short-term concern for a company that's cheap and dominating in so many other aspects. For example, internet search engine Google has accounted for no less than 90% of worldwide search share every month for more than eight years. Its moat appears impenetrable, giving the company a rock-solid foundation to generate operating cash flow.
We're also seeing plenty of momentum from Alphabet's operating segments beyond Google. YouTube is the second-most-visited site globally and has seen daily YouTube Short views skyrocket. Meanwhile, Google Cloud has delivered back-to-back quarters of operating profits and controls approximately 9% of the worldwide cloud infrastructure service market share. Keep in mind that enterprise cloud spending is still in its early stages.
Lastly, Alphabet is cheap. Over the past five years, Alphabet's stock has traded at a multiple to cash flow of a little over 18. Investors can buy the stock's Class A shares right now for less than 14 times Wall Street's consensus cash flow for 2024.
Image source: Amazon.
FAANG stock No. 2 billionaire investors are surprisingly selling: Amazon
The second FAANG stock that endured big-time selling pressure from billionaires during the June-ended quarter is e-commerce company Amazon. A whopping 10 prominent billionaire asset managers were busy pressing the sell button, including (number of shares sold in Q2 listed in parenthesis):
Jim Simons at Renaissance Technologies (8,999,016 shares)
Terry Smith at Fundsmith (6,777,831 shares)
Chase Coleman at Tiger Global Management (5,989,891 shares)
Ole Andreas Halvorsen at Viking Global Investors (3,226,907 shares)
Stephen Mandel at Lone Pine Capital (1,709,767 shares)
John Overdeck and David Siegel at Two Sigma Investments (1,443,520 shares)
Israel Englander at Millennium Management (1,159,561 shares)
Steven Cohen at Point72 Asset Management (994,294 shares)
Ken Fisher at Fisher Asset Management (678,708 shares)
As with Alphabet, the likeliest reason for this selling is the expectation of economic weakness. Most of Amazon's revenue derives from its world-leading online marketplace. If the U.S. economy and/or China continue to weaken, consumers may be less willing to open their wallets.
The other issue for Amazon is its valuation. Even looking out to 2024, Amazon is sporting a lofty multiple of 43 times forward earnings.
However, valuing Amazon based solely on its e-commerce marketplace is a terrible idea. Although it's the company's top revenue generator, online retail sales offer very low margins. By comparison, three of Amazon's ancillary segments generate virtually all its operating income -- subscription services, advertising services, and Amazon Web Services (AWS).
Without question, AWS is the most important operating segment for Amazon. Despite only accounting for around a sixth of net sales, AWS is responsible for $10.5 billion out of Amazon's $12.5 billion in operating income through the first six months of 2023. As noted, enterprise cloud service spending has a long growth runway.
Amazon is also historically inexpensive relative to its cash flow. While the price-to-earnings (P/E) ratio is helpful when valuing slow-growing businesses, a company like Amazon, which reinvests most of its operating cash flow, is best valued by analyzing its cash flow. After trading at a year-end multiple of 23 to 37 times cash flow from 2010 through 2019, Amazon looks like an amazing deal at just 12 times forward-year cash flow, based on Wall Street's consensus.
10 stocks we like better than Apple
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*Stock Advisor returns as of August 14, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing decade, the FAANG stocks have vastly outperformed the benchmark S&P 500 and are primarily responsible for the huge rally in the Nasdaq Composite on a year-to-date basis. One of the priciest FAANG stocks was an exceptionally popular buy, while two perceived values were pretty aggressively sold by billionaire money managers. Meanwhile, Apple's services revenue continues to grow by the quarter and should provide a way to minimize sales fluctuations often seen during iPhone replacement cycles.
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By "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing decade, the FAANG stocks have vastly outperformed the benchmark S&P 500 and are primarily responsible for the huge rally in the Nasdaq Composite on a year-to-date basis. All told, a half-dozen billionaire investors piled in, including (number of shares purchased in Q2 listed in parenthesis): Jim Simons at Renaissance Technologies (4,912,234 shares) John Overdeck and David Siegel at Two Sigma Investments (1,003,490 shares) Israel Englander at Millennium Management (559,040 shares) David Tepper at Appaloosa Management (480,000 shares) Ken Fisher at Fisher Asset Management (417,648 shares) Billionaires' love of Apple likely has to do with its brand, innovation, and capital-return program. Four prominent billionaires were sellers of Alphabet's Class A shares (GOOGL), including (number of shares sold in Q2 listed in parenthesis): Chase Coleman at Tiger Global Management (4,551,949 shares) Dan Loeb at Third Point (3,325,000 shares) Steven Cohen at Point72 Asset Management (3,299,177 shares) Ray Dalio at Bridgewater Associates (348,344 shares) The most logical reason for billionaires to be skeptical of Alphabet in the short term is the company's reliance on advertising for the bulk of its revenue.
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By "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing decade, the FAANG stocks have vastly outperformed the benchmark S&P 500 and are primarily responsible for the huge rally in the Nasdaq Composite on a year-to-date basis. All told, a half-dozen billionaire investors piled in, including (number of shares purchased in Q2 listed in parenthesis): Jim Simons at Renaissance Technologies (4,912,234 shares) John Overdeck and David Siegel at Two Sigma Investments (1,003,490 shares) Israel Englander at Millennium Management (559,040 shares) David Tepper at Appaloosa Management (480,000 shares) Ken Fisher at Fisher Asset Management (417,648 shares) Billionaires' love of Apple likely has to do with its brand, innovation, and capital-return program. Four prominent billionaires were sellers of Alphabet's Class A shares (GOOGL), including (number of shares sold in Q2 listed in parenthesis): Chase Coleman at Tiger Global Management (4,551,949 shares) Dan Loeb at Third Point (3,325,000 shares) Steven Cohen at Point72 Asset Management (3,299,177 shares) Ray Dalio at Bridgewater Associates (348,344 shares) The most logical reason for billionaires to be skeptical of Alphabet in the short term is the company's reliance on advertising for the bulk of its revenue.
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By "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing decade, the FAANG stocks have vastly outperformed the benchmark S&P 500 and are primarily responsible for the huge rally in the Nasdaq Composite on a year-to-date basis. Corporate earnings releases and economic data make it easy to potentially miss important announcements. However, billionaires have a mixed view of the FAANG stocks -- at least based on recently filed 13Fs.
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2023-08-24 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Apple, Nasdaq 100 Index ETF, Super Micro Computer and S&P 500 Index ETF
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-apple-nasdaq-100-index-etf-super-micro-computer
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nan
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nan
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For Immediate Release
Chicago, IL – August 24, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Nasdaq 100 Index ETF QQQ, Super Micro Computer SMCI and S&P 500 Index ETF SPY.
10 Lessons from 2 Decades of Investing Experience
Like life, Wall Street doesn’t come with a “How to” book. Reading extensive literature on the stock market can provide theoretical knowledge and insights into trading strategies, risk management, and market trends. However, success in the stock market often requires more than book knowledge. Practical experience, or what I call “seat time,” is essential for developing intuition, learning from mistakes, and adapting to real-time market dynamics.
Below are 10 of the biggest lessons I have learned in my 20+ years of seat time:
Proper Position Size Is Critical
In my trading and watching others trade, amateur traders often position sizes far too large. Investors should examine their personal risk tolerance rather than arbitrarily choosing a position size. Ask yourself, “If I took a loss in 10 straight trades, could I survive?”
A good rule of thumb may be to start with a risk tolerance of no more than 1% of assets under management. For example, if you risk 1% on a $100,000 account, you lose $1,000 if the trade goes against you. Even if you were to lose in 15 straight trades, recovering your losses would not be insurmountable.
Technical Analysis Can Be a Long-Term Endeavor
Many new traders believe that technical analysis is only for short-term, day traders. However, I have learned that my most powerful signals often come from long-term technical analysis. Below is a long-term chart of Apple. For more than two decades, AAPL has held and found support at its longer-term 200-week moving average.
Cut Losses & Run Winners
Successful investing is not about being right more than you’re wrong, but rather, how much you make when you’re right and how much you lose when you’re wrong. Billionaire investor Paul Tudor Jones famously described his risk-to-reward mindset in an interview with Tony Robbins, saying, “5:1. Five to one means I’m risking one dollar to make five. What five to one does is allow you to have a hit ratio of 20%. I can actually be a complete imbecile. I can be wrong 80% of the time, and I’m still not going to lose.” Pay attention to the simple math behind trading and see your results flourish!
Earnings Estimate Revisions are a Powerful Indicator
Did you know that top-ranked Zacks stocks have beaten the market 26 of the last 31 years with an average annual return of +24.30% a year, more than double that of the S&P 500’s 10.80%? The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and EPS surprises to classify stocks into five groups.
Markets Are Forward-Looking
Did you know that in the past three major bear markets (internet bubble burst, housing crisis, and COVID-19 pandemic), the major US indices bottomed months before earnings did?
As hockey legend Wayne Gretzky once said, “I skate to where the puck is going to be, not where it has been.”
Pay Attention to Price Action Versus News
Amateur investors often get caught obsessing over stale economic data. However, most new investors fail to understand that markets bottom when news looks the worst because they discount the future. For example, after news broke on October 13th of 2022 that inflation hit 40-year highs, the Nasdaq 100 Index ETF recovered from deep early losses to finish the session higher by more than 2% on volume nearly double the average. The reversal marked the bottom for stocks.
When it comes to investing, it’s not so much the news itself that is important, but rather, the market’s reaction to the news.
Don’t Chase Extended Stocks
The further you stretch a rubber band, the harder it snaps back. Equity markets are the same way. Like in life, timing is everything. Avoid chasing stocks that are extended from their 50-day moving average. An excellent recent example is Super Micro Computer. The stock was extended 32% away from its 50-day moving average before earnings. When earnings disappointed, the stock plummeted 23% in a single session.
Be Flexible
Flexibility is one of my biggest assets. Never be afraid to change your mind. John Maynard Keynes said it best – “When the facts change, I change my mind – what do you do, sir?”
Adhere to the General Market Trend
75% of a stock’s move depends on the general market’s direction. For example, in 2022, most long-only investors likely lost money. In 2023, the exact opposite is occurring. Use a simple trend filter like the 200-day moving average to determine whether the stock market is in a bull or bear phase. As an example, I’ve overlaid a 200-day moving average over the S&P 500 Index ETF.
Conduct a Post Analysis
The stock market is filled with investors who are laser-focused on finding the next hot stock. However, investing is more than simply looking for stocks. To succeed in investing, study yourself and your past trades at least once a year. I recommend finding your top 10 winners and your top 10 losers and figuring out what you did right and wrong. Calculate your win/loss ratio, average winner/loser, and equity curve. You’ll thank yourself later.
Free Report: Top EV Battery Stocks to Buy Now
Just-released report reveals 5 stocks to profit as millions of EV batteries are made. Elon Musk tweeted that lithium prices have gone to "insane levels," and they're likely to keep climbing. As a result, a handful of lithium battery stocks are set to skyrocket. Access this report to discover which battery stocks to buy and which to avoid.
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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
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
Super Micro Computer, Inc. (SMCI) : 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 – August 24, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Nasdaq 100 Index ETF QQQ, Super Micro Computer SMCI and S&P 500 Index ETF SPY. For more than two decades, AAPL has held and found support at its longer-term 200-week moving average. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL – August 24, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Nasdaq 100 Index ETF QQQ, Super Micro Computer SMCI and S&P 500 Index ETF SPY. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report To read this article on Zacks.com click here. For more than two decades, AAPL has held and found support at its longer-term 200-week moving average.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – August 24, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Nasdaq 100 Index ETF QQQ, Super Micro Computer SMCI and S&P 500 Index ETF SPY. For more than two decades, AAPL has held and found support at its longer-term 200-week moving average.
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For Immediate Release Chicago, IL – August 24, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Nasdaq 100 Index ETF QQQ, Super Micro Computer SMCI and S&P 500 Index ETF SPY. For more than two decades, AAPL has held and found support at its longer-term 200-week moving average. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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14155.0
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2023-08-24 00:00:00 UTC
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This Incredibly Cheap Stock Is Up 53% in 2023, and It Is Still a Screaming Buy
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AAPL
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https://www.nasdaq.com/articles/this-incredibly-cheap-stock-is-up-53-in-2023-and-it-is-still-a-screaming-buy
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nan
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nan
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Jabil (NYSE: JBL) may not be a fashionable name among tech investors as the company does the "boring" job of providing contract-manufacturing services to customers in various industries, such as automotive, mobility, cloud computing, and networking (among others), but the stock has set the market on fire in 2023 with terrific gains of 53%.
This means Jabil stock has outperformed the tech-laden Nasdaq-100 Technology Sector index's gains of 37% by a handsome margin. Given that Jabil gets a nice chunk of its revenue by providing contract-manufacturing services to Apple (NASDAQ: AAPL), there is a good chance that the stock could keep up its momentum for the rest of the year. And more importantly, the markets that Jabil serves suggest that the company could deliver robust long-term growth.
Let's look at the reasons why buying this stock looks like a no-brainer.
Jabil could deliver stronger growth as headwinds subside
Jabil released its fiscal 2023 third-quarter results (for the three months ended May 31, 2023) a couple of months ago. The company delivered $8.5 billion in revenue, a slight increase of 2% over the prior-year period. However, Jabil's non-GAAP earnings increased at a faster pace of 16% to $1.99 per share. Analysts would have settled for earnings of $1.87 per share on revenue of $8.2 billion.
One might argue that Jabil's top-line growth wasn't good enough to justify the stock's impressive surge this year. But it is worth noting that the company has been able to deliver growth even at a time when it is witnessing weakness in certain areas. More specifically, the company was handicapped by "lower demand in some of our consumer-facing markets and in semi-cap."
Spending on semiconductor capital equipment is expected to fall 22% in 2023, as per Gartner's estimates. Meanwhile, sales of smartphones have been declining for eight quarters on the trot, according to Counterpoint Research. So, it is not surprising to see the challenges that Jabil is facing in these areas. The good part is that the company has managed to deliver growth in revenue and earnings despite these headwinds, driven mainly by strength in the automotive, healthcare, and industrial businesses.
And now, there is a good chance that the headwinds that have weighed on Jabil may be clearing. For instance, market research firm Canalys recently pointed out that the smartphone market is showing early signs of a recovery. Sony, on the other hand, estimates that the smartphone market could head north in 2024. But for Jabil, the recovery could begin sooner thanks to Apple, which is its largest customer and produced 19% of its top line in the previous fiscal year.
Jabil's relationship with Apple could give it a solid boost in the coming year as the smartphone giant is reportedly on track to benefit from a potential upgrade cycle. According to Dan Ives of Wedbush Securities, the launch of the next-generation iPhones next month could encourage 250 million users to upgrade to the new devices since they haven't been upgraded in four years, at least.
For comparison, Apple has shipped 222 million iPhones in the past four quarters. As Jabil is known for making aluminum casements for iPhones and iPads, a potential double-digit jump in Apple's smartphone shipments in the coming year is likely to give the contract-electronics manufacturer's business from its largest customer a nice boost. Throw in the fact that Apple is set to start the production of its Vision Pro mixed-reality headset next year, there is a chance that Jabil could see its business from the tech giant expanding.
On the other hand, spending on semiconductor capital equipment is expected to increase 1.3% in 2024 following this year's decline, followed by a stronger jump of 9.5% in 2025. All this indicates that Jabil could benefit from an improvement in business conditions going forward, which should ideally translate into stronger growth for the company.
The valuation makes buying the stock a no brainer
Analysts are anticipating Jabil's earnings will increase at an annual rate of 11% for the next five years. The company is expected to finish the current fiscal year with $8.51 per share in earnings. Using this year's projected earnings as the base, Jabil's bottom line could jump to $14.34 per share after five years.
Multiplying the projected earnings with Jabil's five-year average-earnings multiple of 30 points, toward a stock price of $430 after five years, would lead to an amount just over four times the company's current stock price. However, Jabil is now trading at a very attractive 15 times trailing earnings. Assuming the stock maintains a similar multiple after five years, the stock price could jump to $215, indicating that the stock could at least double from its current levels.
So, it isn't too late for investors who have missed Jabil's impressive rally to buy the stock as it seems built for a healthy upside in the long run.
10 stocks we like better than Jabil
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 Jabil 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 August 21, 2023
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given that Jabil gets a nice chunk of its revenue by providing contract-manufacturing services to Apple (NASDAQ: AAPL), there is a good chance that the stock could keep up its momentum for the rest of the year. Jabil (NYSE: JBL) may not be a fashionable name among tech investors as the company does the "boring" job of providing contract-manufacturing services to customers in various industries, such as automotive, mobility, cloud computing, and networking (among others), but the stock has set the market on fire in 2023 with terrific gains of 53%. As Jabil is known for making aluminum casements for iPhones and iPads, a potential double-digit jump in Apple's smartphone shipments in the coming year is likely to give the contract-electronics manufacturer's business from its largest customer a nice boost.
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Given that Jabil gets a nice chunk of its revenue by providing contract-manufacturing services to Apple (NASDAQ: AAPL), there is a good chance that the stock could keep up its momentum for the rest of the year. As Jabil is known for making aluminum casements for iPhones and iPads, a potential double-digit jump in Apple's smartphone shipments in the coming year is likely to give the contract-electronics manufacturer's business from its largest customer a nice boost. On the other hand, spending on semiconductor capital equipment is expected to increase 1.3% in 2024 following this year's decline, followed by a stronger jump of 9.5% in 2025.
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Given that Jabil gets a nice chunk of its revenue by providing contract-manufacturing services to Apple (NASDAQ: AAPL), there is a good chance that the stock could keep up its momentum for the rest of the year. Multiplying the projected earnings with Jabil's five-year average-earnings multiple of 30 points, toward a stock price of $430 after five years, would lead to an amount just over four times the company's current stock price. Assuming the stock maintains a similar multiple after five years, the stock price could jump to $215, indicating that the stock could at least double from its current levels.
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Given that Jabil gets a nice chunk of its revenue by providing contract-manufacturing services to Apple (NASDAQ: AAPL), there is a good chance that the stock could keep up its momentum for the rest of the year. But it is worth noting that the company has been able to deliver growth even at a time when it is witnessing weakness in certain areas. The good part is that the company has managed to deliver growth in revenue and earnings despite these headwinds, driven mainly by strength in the automotive, healthcare, and industrial businesses.
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14156.0
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2023-08-23 00:00:00 UTC
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Netflix (NFLX) Expands Footprint in India With New Partnership
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-expands-footprint-in-india-with-new-partnership
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nan
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nan
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Netflix NFLX is expanding its footprint in India through a recently inked 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 Guns & Gulaabs, The Hunt for Veerappan, Choona, Kohrra, Lust Stories 2, Scoop, Rana Naidu, Class, Mission Majnu and more.
Moreover, Friday Night Plan, starring Babil Khan and Amrith Jayan, is set to release on Sep 1. It also announced the release of the mystery thriller, Do Patti, starring Kajol and Kriti Sanon in lead roles.
Globally, Netflix has been focused on expanding its original content portfolio, with a range of foreign-language content like Cigarette Girl (Indonesian), Baby Fever (Danish), King the Land (Korean), Sleeping Dog (German) and The Surrogacy (Mexican).
Netflix recently announced its first Korean-language animated film Lost in Starlight, in which popular K-drama stars Kim Tae-ri and Hong Kyung will lend their voices to the roles of astronaut Nan-young and musician Jay.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
The company is benefiting from strong viewership of foreign language-based films and shows amid stiff competition from its peers like Apple AAPL, Disney DIS and Amazon AMZN.
In the second quarter of 2023, Netflix gained 5.89 million paid subscribers globally, thanks to a crackdown on password-sharing and the introduction of paid sharing in more than 100 countries in May.
Netflix’s 2023 Prospects Remain Bright
Netflix’s shares have risen 40.1% year to date, outperforming the Zacks Consumer Discretionary sector’s return of 9.3%. It also outperformed Apple and Disney but underperformed Amazon.
Shares of Apple and Amazon have returned 36.4% and 59.8%, respectively, on a year-to-date basis. Disney shares have declined 1.3%.
Netflix, which currently has a Zacks Rank #3 (Hold), is expected to benefit from its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix now expects revenue growth to accelerate in the second half of 2023, driven by the launch of paid sharing. 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.
Netflix scrapped the basic ad-free plan for new and rejoining members in Canada and is doing the same for U.K. and U.S.-based subscribers.
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 quarterly operating margin is projected to be 22.2% compared with 19.8% reported in the year-ago quarter.
Free Report: Top EV Battery Stocks to Buy Now
Just-released report reveals 5 stocks to profit as millions of EV batteries are made. Elon Musk tweeted that lithium prices have gone to "insane levels," and they're likely to keep climbing. As a result, a handful of lithium battery stocks are set to skyrocket. Access this report to discover which battery stocks to buy and which to avoid.
Download free today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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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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Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote The company is benefiting from strong viewership of foreign language-based films and shows amid stiff competition from its peers like Apple AAPL, Disney DIS 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 The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. In terms of Indian audience, apart from Khakee: The Bihar Chapter, it has released a plethora of new shows including Guns & Gulaabs, The Hunt for Veerappan, Choona, Kohrra, Lust Stories 2, Scoop, Rana Naidu, Class, Mission Majnu and more.
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Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote The company is benefiting from strong viewership of foreign language-based films and shows amid stiff competition from its peers like Apple AAPL, Disney DIS 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 The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Free Report: Top EV Battery Stocks to Buy Now Just-released report reveals 5 stocks to profit as millions of EV batteries are made.
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Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote The company is benefiting from strong viewership of foreign language-based films and shows amid stiff competition from its peers like Apple AAPL, Disney DIS 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 The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. 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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Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote The company is benefiting from strong viewership of foreign language-based films and shows amid stiff competition from its peers like Apple AAPL, Disney DIS 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 The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple and Amazon have returned 36.4% and 59.8%, respectively, on a year-to-date basis.
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2023-08-23 00:00:00 UTC
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These Are the ONLY 3 Dow Stocks to Consider in August 2023
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AAPL
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https://www.nasdaq.com/articles/these-are-the-only-3-dow-stocks-to-consider-in-august-2023
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Dow Jones Industrial Average often called the Dow 30, is a stock market index of 30 leading U.S. publicly traded companies. Most of the 30 Dow companies are blue-chip names and widely held stocks with large market capitalizations. As such, the Dow 30 is a bellwether for the health of the overall stock market but also the U.S. economy.
The Dow is also one of the oldest stock indices in the U.S. Charles Dow founded the index in 1896 and also co-founded The Wall Street Journal newspaper. Familiar names in the Dow Jones Industrial Average include McDonald’s (NYSE:MCD), Nike (NYSE:NKE) and Microsoft (NASDAQ:MSFT), among others.
Despite its pedigree, the Dow is not guaranteed to outperform other indices or the entire market. So far in 2023, the Dow Jones Industrial Average is up 4%, trailing both the S&P 500 index which has gained 16% year to date, and the tech-laden Nasdaq index which has increased 40% since January. Many stocks in the Dow are in the red for the year, and some have long-term structural problems. These are the ONLY three Dow stocks to consider in August 2023.
Apple (AAPL)
Source: Moab Republic / Shutterstock
While it is true that shares of Apple (NASDAQ:AAPL) have sunk since the company issued its second-quarter financial results in early August, the stock has not fallen that far. Furthermore, the bleeding looks to have stopped. Over the last month, AAPL stock is down 6%. However, the share price has held above $180 and the stock is still up 40% on the year. Apple is still a great long-term investment and one of the very best technology securities investors can own.
Analysts might be concerned that sales of Apple’s hardware devices such as the iPhone and Macbook computer continue to decline worldwide. However, those sales decreases have been overtaken by stronger sales of the company’s services such as its App Store and Apple TV, which grew 8% on an annual basis in Q2 of this year. The company’s recent Q2 results did manage to beat Wall Street expectations, with earnings per share of $1.26 versus $1.19 that had been forecast.
Plus, Apple has a potentially big upcoming catalyst for its stock with the launch of its Vision Pro virtual reality headset, the company’s first completely new product in more than a decade. AAPL stock is up 235% over the last five years.
Coca-Cola (KO)
Source: IgorGolovniov / Shutterstock.com
Coca-Cola (NYSE:KO) is among the most stable and reliable stocks listed in the Dow Jones Industrial Average. Often likened to a bond, KO stock is not prone to big price swings, with the share price hovering around $60 for the last 12 months. This makes Coca-Cola’s stock attractive to investors seeking stability and securities that remain steady in periods of market volatility. Coca-Cola is also attractive because of its hefty and ever-growing dividend payment.
Coca-Cola is known as a “Dividend King,” a company that has raised its quarterly dividend payout to shareholders for more than 50 consecutive years. KO stock currently has a dividend yield of 3.05%, which is nearly double the average dividend yield of 1.6% found among stocks listed on the S&P 500 index.
Owing to the mature and stable nature of its beverage business, there is little danger of Coca-Cola lowering its dividend, which currently pays 46 cents a share each quarter, making it a top Dow stock to buy.
JPMorgan Chase (JPM)
Source: Roman Tiraspolsky / Shutterstock.com
These are tough times for bank stocks, what with S&P Global (NYSE:SPGI) and Moody’s (NYSE:MCO) alternatingly lowering their ratings and outlook on U.S. lenders. However, if there is one stable bank stock to buy on the dip, it is the Dow component JPMorgan Chase (NYSE:JPM). The financial firm is the largest lender in the world with $3 trillion in assets.
Fueled by strong earnings in the face of sector volatility, JPM stock is up 9% year to date. While that trails the benchmark S&P 500 index’s 16% gain, it’s better than most bank stocks.
Currently trading at just nine times future earnings, JPM stock looks undervalued at current levels. Additionally, JPMorgan’s stock pays a strong quarterly dividend of $1.05 per share, giving it a yield of 2.70%. These factors should make this top Dow stock attractive to investors. The lender’s recent Q2 results were exceptional. JPMorgan reported that its Q2 net income, or profit, rose 67% to $14.5 billion due to rising income from higher interest rates. The company attributed the strong print to a 44% increase in its net interest income to $21.9 billion.
On the date of publication, Joel Baglole held long positions in AAPL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post These Are the ONLY 3 Dow Stocks to Consider in August 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: Moab Republic / Shutterstock While it is true that shares of Apple (NASDAQ:AAPL) have sunk since the company issued its second-quarter financial results in early August, the stock has not fallen that far. Over the last month, AAPL stock is down 6%. AAPL stock is up 235% over the last five years.
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Apple (AAPL) Source: Moab Republic / Shutterstock While it is true that shares of Apple (NASDAQ:AAPL) have sunk since the company issued its second-quarter financial results in early August, the stock has not fallen that far. Over the last month, AAPL stock is down 6%. AAPL stock is up 235% over the last five years.
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Apple (AAPL) Source: Moab Republic / Shutterstock While it is true that shares of Apple (NASDAQ:AAPL) have sunk since the company issued its second-quarter financial results in early August, the stock has not fallen that far. Over the last month, AAPL stock is down 6%. AAPL stock is up 235% over the last five years.
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AAPL stock is up 235% over the last five years. Apple (AAPL) Source: Moab Republic / Shutterstock While it is true that shares of Apple (NASDAQ:AAPL) have sunk since the company issued its second-quarter financial results in early August, the stock has not fallen that far. Over the last month, AAPL stock is down 6%.
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2023-08-23 00:00:00 UTC
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Amid Slowing Growth, Apple's Ace in the Hole Is More Important Than Ever
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AAPL
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https://www.nasdaq.com/articles/amid-slowing-growth-apples-ace-in-the-hole-is-more-important-than-ever
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nan
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nan
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Everyone knows Apple (NASDAQ: AAPL) for its iconic brand. But investors know Apple as a long-term outperforming stock and the largest U.S.-based company by market cap.
Apple uses a lot of its excess cash to buy back its own stock. But the value of these buybacks is often underappreciated, especially during a period of slowing growth like Apple is in right now.
Let's take a look at what's impacting the tech company today and why the stock could be worth buying even if growth remains muted over the next five years.
Image source: Getty Images.
Apple's services remain a powerful aspect of the business
Apple is possibly the single-most powerful consumer-facing brands in the world. Its most exciting area of growth isn't products but services.
For the nine months ended July 1, 2023, services made up 21.4% of total revenue but 34.6% of gross profit. The services segment notched a 70.9% gross margin during the period, which illustrates the value it brings to Apple's bottom line.
Most importantly, services boost customer interaction with Apple's ecosystem. Apple Pay, Apple Music, and Apple TV+ are just some of the many services that improve the iPhone experience. These services build value even if the improvements to the products are incremental. It's also a way for Apple to generate recurring revenue instead of relying on customers to upgrade their devices.
What the numbers say
Services have been a big growth driver for the business. But even then, services revenue is down year over year in the nine months ended July 1. The same goes for the products segment.
Apple's trailing-12-month revenue and net income remains virtually unchanged over the last two years after a massive boost in 2020 and 2021.
Data by YCharts.
There's no denying that the pandemic pulled forward future sales. This isn't necessarily a bad thing, it's just tougher to post growth compared to difficult comps.
If you zoom out, Apple is still a massively successful business, booking nearly $100 billion in net income per year.
The glass-half-full way of looking at Apple is that its top and bottom lines have only slightly declined. Many businesses that enjoyed a surge in sales during the pandemic suffered steep drop-offs over the last couple of years. That's not the case with Apple, which is facing merely a couple of percentage points of top and bottom-line declines.
At its current level, Apple is still able to pay a dividend, invest in long-term growth, and buy back a ton of its own stock, which permanently boosts shareholder value by reducing the outstanding share count and making earnings per share (EPS) artificially higher.
When most companies are facing a difficult short-term outlook, they pull back on buybacks and need to preserve cash. Apple is navigating the diminished spending on discretionary goods with ease. It may not be the growth that Wall Street has come to expect, but as a business, Apple's doing just fine.
The power of buybacks
Buying Apple stock at its current valuation of 29.5 times trailing earnings is an aggressive bet if you only focused on how the business is doing now. But zoom out, and it's completely reasonable.
Over the last five years, Apple spent a staggering $386.9 billion buying back its own stock, or an average of $77.4 billion per year. Over the last 10 years, Apple has reduced its share count by 37.9%.
Data by YCharts.
All signs point toward Apple sustaining its rapid buyback pace or even accelerating it.
If you take a conservative estimate and assume the same amount of buybacks for the next five years -- and factor in Apple's current market cap of $2.74 trillion -- Apple should be able to boost EPS by at least 14% over the next five years on buybacks alone. This alleviates pressure on Apple's organic growth.
Even if the business is only growing earnings at, let's say, an average of 8% a year over the next five years, Apple's earnings would still be 47% higher in five years. And if you factor in 14% fewer shares outstanding, you're looking at EPS growth of approximately 70% in five years.
The lesson here is that stock buybacks can pick up a lot of the slack from a low growth rate. Now, let's take this scenario even further.
If you agree that Apple can grow earnings 8% annually and buy back the same amount of stock over the next five years, but you think the stock only deserves the market average P/E ratio of 23 instead of the nearly 30 P/E ratio the stock boasts today, then Apple stock would be worth a little over $230 per share in five years.
Compared to the $174 per share price as of this writing, that's a 33% return over a five-year time period, which is decent but not great. But given how conservative these assumptions are, and the market-neutral valuation this assumption gives to Apple, it reaffirms the notion the stock isn't all that overvalued.
A balanced buy
If you're wondering why Apple stock has suffered such short-lived sell-offs over the last few years, there are really two reasons. The first is that it is one of the best companies in the world. And the second is that its relentless buybacks act as a lead weight that pulls down on its valuation and prevents it from getting too expensive.
Apple is one of those rare businesses that is well run from an operational perspective but is also steadfast in rewarding its shareholders. The stock isn't cheap, but selling Apple and losing sight of the ace in the hole its balance sheet provides could be a big mistake for long-term investors.
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Daniel Foelber 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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Everyone knows Apple (NASDAQ: AAPL) for its iconic brand. The services segment notched a 70.9% gross margin during the period, which illustrates the value it brings to Apple's bottom line. The power of buybacks Buying Apple stock at its current valuation of 29.5 times trailing earnings is an aggressive bet if you only focused on how the business is doing now.
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Everyone knows Apple (NASDAQ: AAPL) for its iconic brand. At its current level, Apple is still able to pay a dividend, invest in long-term growth, and buy back a ton of its own stock, which permanently boosts shareholder value by reducing the outstanding share count and making earnings per share (EPS) artificially higher. The power of buybacks Buying Apple stock at its current valuation of 29.5 times trailing earnings is an aggressive bet if you only focused on how the business is doing now.
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Everyone knows Apple (NASDAQ: AAPL) for its iconic brand. Apple Pay, Apple Music, and Apple TV+ are just some of the many services that improve the iPhone experience. If you take a conservative estimate and assume the same amount of buybacks for the next five years -- and factor in Apple's current market cap of $2.74 trillion -- Apple should be able to boost EPS by at least 14% over the next five years on buybacks alone.
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Everyone knows Apple (NASDAQ: AAPL) for its iconic brand. When most companies are facing a difficult short-term outlook, they pull back on buybacks and need to preserve cash. If you agree that Apple can grow earnings 8% annually and buy back the same amount of stock over the next five years, but you think the stock only deserves the market average P/E ratio of 23 instead of the nearly 30 P/E ratio the stock boasts today, then Apple stock would be worth a little over $230 per share in five years.
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2023-08-23 00:00:00 UTC
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1 Supercharged Growth Stock That's a Shoo-in to Join Apple and Microsoft in the $2 Trillion Club by 2028
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AAPL
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https://www.nasdaq.com/articles/1-supercharged-growth-stock-thats-a-shoo-in-to-join-apple-and-microsoft-in-the-%242-trillion
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nan
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nan
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On the heels of the worst stock market performance in more than 10 years, technology stocks have bounced back, with the Nasdaq Composite up 29% so far this year. This recovery seems poised to add new members to the highly exclusive group of U.S. companies with a market cap worth more than $2 trillion. There are only two members of this select group as of the market close on Tuesday:
Apple -- $2.7 trillion
Microsoft -- $2.4 trillion
One company that seems ordained to join this privileged pair is Nvidia (NASDAQ: NVDA). The maker of graphics processing units (GPUs) only recently joined the elite group of companies with a market cap of $1 trillion but seems destined for greater things. Nvidia stock has soared in 2023, up more than 200% as of this writing, driven higher by strong demand for processors used to power artificial intelligence (AI) systems. Nvidia's value would need to increase by 77% from Tuesday's market close to join this prestigious club.
Let's look at the multiple growth drivers that will combine to send Nvidia stock to new heights.
Image source: Getty Images.
A long history of performance
A quick review of the factors that brought Nvidia to this rarified position suggests there could be greater gains in store. Over the past decade, Nvidia has increased its revenue by 582% (as of this writing), while its net income has increased by 1,620%. While there have been the usual ups and downs, the company's consistent performance has helped fuel an epic rise in its stock price, which has soared 12,190%.
NVDA Revenue (Quarterly) data by YCharts
In the company's fiscal 2024 first quarter (ended April 30), Nvidia's performance was surprisingly resilient, particularly given the economic headwinds. Revenue of $7.19 billion was down 13% year over year, though strict cost controls drove diluted earnings per share (EPS) of $0.82 up 28%. Given the overhang of a 38% decline in gaming revenue, its overall lackluster performance wasn't particularly surprising.
NVDA Revenue (Quarterly) data by YCharts
What did catch investors off guard was Nvidia's outlook. For the current quarter, the company called for revenue of $11 billion, an increase of 64% year over year and 53% sequentially. Management attributed the rosy outlook to strong demand for the processors used for AI, driven by the accelerating adoption of generative AI.
This was evidenced by Nvidia's record data center revenue of $4.28 billion -- achieved in the face of economic headwinds -- overtaking the gaming segment as the company's primary breadwinner.
If Nvidia can build on that success, a recovery in the gaming market could supercharge the company's results, driving it ever higher.
The AI connection
It's important to note that much of this year's stock price gains are the result of excitement surrounding the multitude of potential applications for AI. Analysts at Goldman Sachs estimate the economic impact at $7 trillion by 2030, while Morgan Stanley comes in at roughly $6 trillion. But even the most conservative estimates are eye-catching. TD Cowen analyst John Blackledge concludes that spending on generative AI software will top $81 billion by 2027.
We truly don't know how the evolving AI market will play out, but the consensus is that it will be a big deal -- and Nvidia's state-of-the-art AI processors have it well-positioned to benefit from this secular tailwind.
Multiple growth drivers
As exciting as the potential for generative AI is, Nvidia has done just fine over the past decade without it. A look at several of its existing growth markets shows why this has been the case.
Nvidia remains the undisputed leader in the discrete desktop GPU market, even as sales have declined to levels not seen in decades. The company controls a dominant 84% share of the market, according to data supplied by Jon Peddie Research (via Tom's Hardware). The gaming GPU market is expected to soar in the coming years, climbing from $2.7 billion in 2023 to $11.7 billion by 2028, a compound annual growth rate (CAGR) of 34%, according to Mordor Intelligence. The market for graphics cards will no doubt rebound -- probably sooner than later -- and when it does, Nvidia will benefit.
Then there's the data center market. Nvidia has a market share of more than 95%, according to CFRA Research senior equity analyst Angelo Zino. The data center market is expected to continue its robust growth, climbing from $263 billion in 2022 to $603 billion by 2030, a compound annual growth rate of 11%, according to Prescient and Strategic Intelligence. The combination of a growing opportunity and market dominance provides Nvidia with another secular tailwind.
The company also has a lock on the machine learning market, a more established field of AI that produced self-improving algorithms. Nvidia has an estimated 95% share of that market, according to data compiled by New Street Research.
Nvidia currently sports a market cap of roughly $1.13 trillion, which means the stock would have to increase by less than 13% annually to achieve a $2 trillion market cap by 2028. Given the multiple growth drivers, rebounding gaming market, and strong secular tailwinds, that doesn't seem like too high a bar to clear.
My money is on Nvidia.
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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.
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*Stock Advisor returns as of August 21, 2023
Danny Vena has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, 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 maker of graphics processing units (GPUs) only recently joined the elite group of companies with a market cap of $1 trillion but seems destined for greater things. Nvidia stock has soared in 2023, up more than 200% as of this writing, driven higher by strong demand for processors used to power artificial intelligence (AI) systems. This was evidenced by Nvidia's record data center revenue of $4.28 billion -- achieved in the face of economic headwinds -- overtaking the gaming segment as the company's primary breadwinner.
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The gaming GPU market is expected to soar in the coming years, climbing from $2.7 billion in 2023 to $11.7 billion by 2028, a compound annual growth rate (CAGR) of 34%, according to Mordor Intelligence. Given the multiple growth drivers, rebounding gaming market, and strong secular tailwinds, that doesn't seem like too high a bar to clear. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, Microsoft, and Nvidia.
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There are only two members of this select group as of the market close on Tuesday: Apple -- $2.7 trillion Microsoft -- $2.4 trillion One company that seems ordained to join this privileged pair is Nvidia (NASDAQ: NVDA). We truly don't know how the evolving AI market will play out, but the consensus is that it will be a big deal -- and Nvidia's state-of-the-art AI processors have it well-positioned to benefit from this secular tailwind. Nvidia currently sports a market cap of roughly $1.13 trillion, which means the stock would have to increase by less than 13% annually to achieve a $2 trillion market cap by 2028.
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For the current quarter, the company called for revenue of $11 billion, an increase of 64% year over year and 53% sequentially. Multiple growth drivers As exciting as the potential for generative AI is, Nvidia has done just fine over the past decade without it. Given the multiple growth drivers, rebounding gaming market, and strong secular tailwinds, that doesn't seem like too high a bar to clear.
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2023-08-23 00:00:00 UTC
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7 Best AI Mutual Funds (and ETFs) to Sweep the AI Craze
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AAPL
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https://www.nasdaq.com/articles/7-best-ai-mutual-funds-and-etfs-to-sweep-the-ai-craze
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nan
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nan
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So you're looking for top-rated AI mutual funds to cash in on the current gold rush into artificial intelligence without buying individual stock? After reading, you'll know which funds have a proven track record and might be worth investing in.
Although the brave new world of AI can be intimidating, you'll learn quickly that in AI, there's something for everyone, whether your interest lies with robotics and driverless vehicles or exploring the world of machine learning and chatbots.
Ready to find out if AI mutual funds are right for you? Let's dive in.
Overview of AI Mutual Funds
AI-based mutual funds — like all mutual funds — are a popular type of investment vehicle that pools multiple investors' money to purchase artificial intelligence stocks, bonds and other securities. They can help you diversify your portfolio, decrease risk and help generate higher returns than individual security investments.
AI funds are unique in focusing specifically on opportunities in artificial intelligence and managed by professional fund managers who bring a wealth of expertise to the table. They use research and market analysis to decide which AI-related stocks and securities they should buy and sell from the fund.
Some funds are AI managed mutual funds, which may sound contradictory, but it simply means that the fund manager uses artificial intelligence to help with decision-making.
As an investor interested in AI, you can spend less time poring over individual stocks. Instead, you can diversify your portfolio with one easy purchase. As for AI ETFs, they differ further in that they are traded publicly on the markets, typically tracking an index such as the S&P 500. You trade directly on an exchange instead of entrusting your money to a fund manager, which gives you more control but carries more risk since it's subject to market fluctuations and volatility.
One key factor when choosing an AI mutual fund is ensuring it has a proven track record of returns. You'll also need to carefully consider the fees, which can vary significantly between different types of AI mutual funds and ETFs.
Like any investment, there are risks involved with AI funds, especially because AI is a new and rapidly changing industry. These funds can be volatile due to the sheer complexity of the technology behind them. For example, AI companies can experience rapid success or failure due to swiftly changing market conditions, regulatory changes or unexpected technical challenges, so make sure you know what you’re getting into before buying into any specific fund.
The types of securities and investments in an best mutual funds for AI will depend on the type of fund. There are a few key categories to consider:
Robotics funds: As the name suggests, robotics funds invest in companies that design and build robots for industrial, medical or military applications. This can include anything from drones to artificial limbs or driverless cars.
Machine learning/deep learning funds: These funds focus on computer vision technologies like facial recognition software, virtual personal assistants (VPA), chatbots and other machine learning tools. These funds offer exposure to companies leading the way in developing the future of AI technology.
Why Invest in AI Mutual Funds?
So, is there an AI mutual fund? AI mutual funds are a prime opportunity to grab onto the massive hype around the artificial intelligence revolution, with lower risk than investing directly in individual AI-related stocks. As new technologies, products and services increase faster than ever, having access to a portfolio carefully managed by experienced professionals can mean greater returns as you stay ahead of potential market shifts.
Finding a fund with a competitive fee compared to other investments will give you a chance at higher returns (and less loss!) from your initial investment over time. Plus, with a single purchase of AI-powered mutual funds, you gain wholesale exposure across multiple stocks in one go, allowing you to benefit from different trends while protecting against any downturns.
Best AI Mutual Funds to Buy Now
AI-related mutual funds and ETFs are funds that fulfill at least one of the following:
Create new products or services or better scientific research related to AI.
Include more than a quarter of portfolio investments in firms investing heavily in AI research and development, such as Amazon.com Inc. (NASDAQ: AMZN), Tesla Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL) and Alphabet Inc. (NASDAQ: GOOG).
Employ artificial intelligence to pick out individual securities for the fund, making them AI-managed mutual funds.
Above all, always research when choosing a mutual fund, as many variables determine performance. Look for historical returns and risk levels before investing in any type of mutual fund, not just those focused on AI.
Name
Ticker
Market Cap
Industry
VanEck Robotics ETF
NASDAQ: IBOT
$2.88 million
Technology
Global X Robotics and Artificial Intelligence Thematic ETF
NASDAQ: BOTZ
$2.25 billion
Technology
Fidelity Disruptive Automation ETF
NASDAQ: FBOT
$104.05 million
Technology
iShares Robotics and Artificial Intelligence Multisector ETF
NYSEARCA: IRBO
$444.72 million
Technology
ROBO Global Robotics and Automation ETF
NYSEARCA: ROBO
$1.37 billion
Technology
Fidelity Select Technology Portfolio
MUTF: FSPTX
N/A
Technology
T. Rowe Price Science & Technology Fund
MUTF: PRSCX
N/A
Technology
1. VanEck Robotics ETF
The VanEck Robotics ETF (NASDAQ: IBOT) invests in companies leading the way in the production, design and development of robots and other automated equipment. This ETF is designed to track the performance of companies focusing on three key areas: industrial automation and production, non-industrial automation (such as consumer products) and autonomous vehicles.
IBOT currently holds about 85 stocks, with the top three IBOT holdings including NVIDIA Inc. (NASDAQ: NVDA), Emerson Electric (NASDAQ: EMR) and Swiss company ABB Ltd. Its expense ratio is 0.47%, which is slightly higher than some other ETFs in the AI industry but still competitive. According to analyst ratings, IBOT has a "moderate buy" rating with a target price of $58.81 per share.
2. Global X Robotics and Artificial Intelligence Thematic ETF
The Global X Robotics and Artificial Intelligence Thematic ETF (NASDAQ: BOTZ) seeks to correspond to the price and yield of the Indxx Global Robotics & Artificial Intelligence Thematic Index. This index is designed to measure the performance of companies related to the robotics and AI industry. BOTZ could be a great option if you want to invest in mutual funds for AI that have exposure to the entire robotics and AI industry.
BOTZ has a diverse portfolio of companies, including firms working on the industry's hardware and software. Some top BOTZ holdings include Nvidia, Intuitive Surgical (NASDAQ: ISRG) and Keyence Corp. These companies have all been pioneers in robotics and AI and are likely to grow significantly.
One thing to note about BOTZ is that at 0.68%, it does have a relatively high expense ratio compared to other AI mutual funds and ETFs. However, the fund has a solid track record of returns, making it a great option if you're bullish on the long-term growth potential of the AI industry.
3. Fidelity Select Technology Portfolio
The Fidelity Select Technology Portfolio is a mutual fund that invests in AI, offering a diversified portfolio of 30-plus stocks and securities, many of which are related to machine learning and big data analytics, including companies such as Microsoft and NVIDIA. It has a track record spanning over 40 years and has returned 19.92% annually for the past 10 years, outperforming its benchmark index.
4. Fidelity Disruptive Automation ETF
The Fidelity Disruptive Automation ETF (NASDAQ: FBOT) focuses on investing in companies that develop innovative automation technologies. That means firms working on automation software, industrial robotics and machine learning algorithms. Besides large companies like Amazon, Microsoft Co. (NASDAQ: MSFT) and Alphabet, major FBOT holdings include Keyence, Fanuc and PTC Inc. (NASDAQ: PTC).
One notable aspect of FBOT is its focus on companies that have the potential to disrupt traditional industries, meaning that the fund may invest in firms outside of the traditional AI sector, such as those involved in logistics or transportation, such as Deere & Company, a major manufacturer of farm equipment. FBOT seeks to provide above-average returns and potentially greater risk than other AI mutual funds by investing in disruptive technologies.
However, FBOT also has relatively low fees compared to other mutual funds, making it an attractive option to capitalize on the potential disruption of various industries. With its focus on innovative and disruptive technologies, FBOT has the potential for long-term growth.
5. ROBO Global Robotics and Automation ETF
The ROBO Global Robotics and Automation ETF (NYSEARCA: ROBO) is actively managed by ROBO Global, one of the world’s largest providers of robotics and automation investment management services – which seeks to invest in companies leading the way in robotics and automation technology. The fund’s portfolio is diversified across multiple countries and sectors, including healthcare, industrial automation and AI.
Some top ROBO holdings include Japan-based Yaskawa Electric Corp, ABB Ltd. and Teradyne Inc. (NASDAQ: TER). These are all leaders in the robotics and automation space and could see significant growth in the coming years.
With a focus on companies that are leaders in their respective fields, ROBO has shown strong returns over the years, making it an attractive investment option.
One thing to note about this ETF is that at 0.95%, it does have a high expense ratio compared to other AI mutual funds and ETFs. However, ROBO's diverse portfolio across multiple countries and sectors also helps to mitigate risk while still providing exposure to key players. With analysts' "moderate buy" rating and a target price of $63.63 per share, ROBO is a strong investment option to enter the AI market.
6. iShares Robotics and Artificial Intelligence Multisector ETF
The iShares Robotics and Artificial Intelligence Multisector ETF (NYSEARCA: IRBO) aims to track an index of global equities in robotics investments and the AI sector. The fund offers exposure to firms at the forefront of robotics and AI technology. Some of the major IRBO holdings include Meta Platforms (NASDAQ: META), Nvidia and Apple.
IRBO's index focuses on companies involved in various subsectors of robotics and AI, including industrial robots, 3D printing, drones and software and hardware development for these technologies. IRBO's diverse portfolio includes companies worldwide, making it a great option for global robotics and AI industry exposure.
IRBO has a relatively low expense ratio, 0.47%, compared to other AI mutual funds and ETFs. The fund has performed well, with solid returns over several years. It could be a solid option if you're bullish on AI's long-term growth potential.
7. T. Rowe Price Science and Technology Fund
The T. Rowe Price Science and Technology Fund is an AI-driven mutual fund that invests in companies in developing and applying technology across various sectors, including AI, robotics and automation. With a return of 15.77% over the past decade, the fund has a diversified portfolio of well-established tech giants such as Alphabet, Amazon and Microsoft. It also boasts small- and mid-cap stocks focusing on disruptive technologies, which have shown strong performance in recent years.
AI Mutual Funds: An Intelligent Option for Investors
As more companies flock to embrace the transformative potential of artificial intelligence, you have a range of intelligent options to get in on the ground floor of mutual funds that invest in AI. From actively managed funds to ETFs specializing in AI-focused investments, you can select the approach that best fits your needs and risk tolerance. AI-focused mutual funds are creating an exciting chance to capitalize on the potential of this revolutionary technology.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Include more than a quarter of portfolio investments in firms investing heavily in AI research and development, such as Amazon.com Inc. (NASDAQ: AMZN), Tesla Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL) and Alphabet Inc. (NASDAQ: GOOG). AI mutual funds are a prime opportunity to grab onto the massive hype around the artificial intelligence revolution, with lower risk than investing directly in individual AI-related stocks. As new technologies, products and services increase faster than ever, having access to a portfolio carefully managed by experienced professionals can mean greater returns as you stay ahead of potential market shifts.
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Include more than a quarter of portfolio investments in firms investing heavily in AI research and development, such as Amazon.com Inc. (NASDAQ: AMZN), Tesla Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL) and Alphabet Inc. (NASDAQ: GOOG). Fidelity Disruptive Automation ETF The Fidelity Disruptive Automation ETF (NASDAQ: FBOT) focuses on investing in companies that develop innovative automation technologies. ROBO Global Robotics and Automation ETF The ROBO Global Robotics and Automation ETF (NYSEARCA: ROBO) is actively managed by ROBO Global, one of the world’s largest providers of robotics and automation investment management services – which seeks to invest in companies leading the way in robotics and automation technology.
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Include more than a quarter of portfolio investments in firms investing heavily in AI research and development, such as Amazon.com Inc. (NASDAQ: AMZN), Tesla Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL) and Alphabet Inc. (NASDAQ: GOOG). ROBO Global Robotics and Automation ETF The ROBO Global Robotics and Automation ETF (NYSEARCA: ROBO) is actively managed by ROBO Global, one of the world’s largest providers of robotics and automation investment management services – which seeks to invest in companies leading the way in robotics and automation technology. T. Rowe Price Science and Technology Fund The T. Rowe Price Science and Technology Fund is an AI-driven mutual fund that invests in companies in developing and applying technology across various sectors, including AI, robotics and automation.
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Include more than a quarter of portfolio investments in firms investing heavily in AI research and development, such as Amazon.com Inc. (NASDAQ: AMZN), Tesla Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL) and Alphabet Inc. (NASDAQ: GOOG). Why Invest in AI Mutual Funds? So, is there an AI mutual fund?
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14161.0
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2023-08-23 00:00:00 UTC
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Dow Movers: NKE, MRK
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-nke-mrk-2
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nan
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nan
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In early trading on Wednesday, shares of Merck topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.1%. Year to date, Merck registers a 0.6% gain.
And the worst performing Dow component thus far on the day is Nike, trading down 3.2%. Nike is lower by about 16.1% looking at the year to date performance.
Two other components making moves today are Chevron, trading down 1.1%, and Apple, trading up 1.4% on the day.
VIDEO: Dow Movers: NKE, MRK
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Wednesday, shares of Merck topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.1%. And the worst performing Dow component thus far on the day is Nike, trading down 3.2%. VIDEO: Dow Movers: NKE, MRK The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Wednesday, shares of Merck topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.1%. Year to date, Merck registers a 0.6% gain. And the worst performing Dow component thus far on the day is Nike, trading down 3.2%.
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In early trading on Wednesday, shares of Merck topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.1%. And the worst performing Dow component thus far on the day is Nike, trading down 3.2%. Two other components making moves today are Chevron, trading down 1.1%, and Apple, trading up 1.4% on the day.
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And the worst performing Dow component thus far on the day is Nike, trading down 3.2%. Nike is lower by about 16.1% looking at the year to date performance. VIDEO: Dow Movers: NKE, MRK The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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14162.0
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2023-08-23 00:00:00 UTC
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10 Lessons from 2 Decades of Investing Experience
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AAPL
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https://www.nasdaq.com/articles/10-lessons-from-2-decades-of-investing-experience
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nan
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nan
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Like life, Wall Street doesn’t come with a “How to” book. Reading extensive literature on the stock market can provide theoretical knowledge and insights into trading strategies, risk management, and market trends. However, success in the stock market often requires more than book knowledge. Practical experience, or what I call “seat time,” is essential for developing intuition, learning from mistakes, and adapting to real-time market dynamics. Below are 10 of the biggest lessons I have learned in my 20+ years of seat time:
Proper Position Size is Critical
In my trading and watching others trade, amateur traders often position size far too large. Investors should examine their personal risk tolerance rather than arbitrarily choosing a position size. Ask yourself, “If I took a loss in 10 straight trades, could I survive?” A good rule of thumb may be to start with a risk tolerance of no more than 1% of assets under management. For example, if you risk 1% on a $100,000 account, you lose $1,000 if the trade goes against you. Even if you were to lose in 15 straight trades, recovering your losses would not be insurmountable.
Technical Analysis Can Be a Long-Term Endeavor
Many new traders believe that technical analysis is only for short-term, day traders. However, I have learned that my most powerful signals often come from long-term technical analysis. Below is a long-term chart of Apple (AAPL). For more than two decades, AAPL has held and found support at its longer-term 200-week moving average.
Image Source: TradingView
Cut Losses & Run Winners
Successful investing is not about being right more than you’re wrong, but rather, how much you make when you’re right and how much you lose when you’re wrong. Billionaire investor Paul Tudor Jones famously described his risk-to-reward mindset in an interview with Tony Robbins, saying, “5:1. Five to one means I’m risking one dollar to make five. What five to one does is allow you to have a hit ratio of 20%. I can actually be a complete imbecile. I can be wrong 80% of the time, and I’m still not going to lose.” Pay attention to the simple math behind trading and see your results flourish!
Earnings Estimate Revisions are a Powerful Indicator
Did you know that top-ranked Zacks stocks have beaten the market 26 of the last 31 years with an average annual return of +24.30% a year, more than double that of the S&P 500’s 10.80%? The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and EPS surprises to classify stocks into five groups:
Image Source: Zacks Investment Research
Markets are Forward-Looking
Did you know that in the past three major bear markets (internet bubble burst, housing crisis, and COVID-19 pandemic), the major US indices bottomed months before earnings did?
Image Source: Zacks Investment Research
As hockey legend Wayne Gretzky once said, “I skate to where the puck is going to be, not where it has been.”
Pay Attention to Price Action Versus News
Amateur investors often get caught obsessing over stale economic data. However, most new investors fail to understand is that markets bottom when news looks the worst because they discount the future. For example, after news broke on October 13th of 2022 that inflation hit 40-year highs, the Nasdaq 100 Index ETF (QQQ) recovered from deep early losses to finish the session higher by more than 2% on volume nearly double the average. The reversal marked the bottom for stocks.
Image Source: TradingView
When it comes to investing, it’s not so much the news itself that is important, but rather, the market’s reaction to the news.
Don’t Chase Extended Stocks
The further you stretch a rubber band, the harder it snaps back. Equity markets are the same way. Like in life, timing is everything. Avoid chasing stocks that are extended from their 50-day moving average. An excellent recent example is Super Micro Computer (SMCI). The stock was extended 32% away from its 50-day moving average before earnings. When earnings disappointed, the stock plummeted 23% in a single session.
Image Source: TradingView
Be Flexible
Flexibility is one of my biggest assets. Never be afraid to change your mind. John Maynard Keynes said it best – “When the facts change, I change my mind – what do you do, sir?”
Adhere to the General Market Trend
75% of a stock’s move depends on the general market’s direction. For example, in 2022, most long-only investors likely lost money. In 2023, the exact opposite is occurring. Use a simple trend filter like the 200-day moving average to determine whether the stock market is in a bull or bear phase. As an example, I’ve overlaid a 200-day moving average over the S&P 500 Index ETF (SPY).
Image Source: TradingView
Conduct a Post Analysis
The stock market is filled with investors who are laser-focused on finding the next hot stock. However, investing is more than simply looking for stocks. To succeed in investing, study yourself and your past trades at least once a year. I recommend finding your top 10 winners and your top 10 losers and figuring out what you did right and wrong. Calculate your win/loss ratio, average winner/loser, and equity curve. You’ll thank yourself later.
Free Report: Top EV Battery Stocks to Buy Now
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Super Micro Computer, Inc. (SMCI) : 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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Below is a long-term chart of Apple (AAPL). For more than two decades, AAPL has held and found support at its longer-term 200-week moving average. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report To read this article on Zacks.com click here. Below is a long-term chart of Apple (AAPL). For more than two decades, AAPL has held and found support at its longer-term 200-week moving average.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report To read this article on Zacks.com click here. Below is a long-term chart of Apple (AAPL). For more than two decades, AAPL has held and found support at its longer-term 200-week moving average.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report To read this article on Zacks.com click here. Below is a long-term chart of Apple (AAPL). For more than two decades, AAPL has held and found support at its longer-term 200-week moving average.
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14163.0
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2023-08-23 00:00:00 UTC
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3 Blue Chip Stocks To Watch In The Stock Market Today
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AAPL
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https://www.nasdaq.com/articles/3-blue-chip-stocks-to-watch-in-the-stock-market-today
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nan
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nan
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Blue-chip stocks refer to shares in well-established companies known for their long history of stable earnings, robust financial health, and a reliable track record of performance. These companies, often leaders in their respective industries, have gained significant market capitalization over the years and are frequently recognized for their ability to weather economic downturns. Their enduring presence in the market and consistent dividend payouts have garnered them a reputation for being safe and reliable investments.
For investors, allocating funds to blue-chip stocks can be an essential strategy for wealth preservation and steady growth. Such stocks tend to offer a more predictable return on investment due to their history of stability and are particularly appealing to those seeking both capital appreciation and regular dividend income.
Moreover, blue-chip stocks act as a buffer during market volatility, making them a favored choice for risk-averse investors aiming for long-term financial goals. Investing in blue-chip stocks or the funds that track them can potentially provide a foundation for a well-diversified investment portfolio. Taking this into account, here are three blue chip stocks to keep an eye on in the stock market today.
Blue Chip Stocks To Buy [Or Avoid] Right Now
American Express Company (NYSE: AXP)
Apple Inc. (NASDAQ: AAPL)
McDonald’s Corporation (NYSE: MCD)
American Express Company (AXP Stock)
To begin, American Express Company (AXP) is a globally recognized financial services corporation. The company is known for its vast array of credit card, charge card, and traveler’s cheque offerings. Today AXP has evolved to become an essential player in the world of finance, emphasizing luxury, and service.
In July, American Express reported a beat for its second quarter of 2023 financial results. In detail, the company notched in earnings of $2.89 per share, with revenue of $15.05 billion for Q2 2023. This was compared to consensus estimates which were earnings of $2.80 per share and revenue of $15.47 billion. Additionally, revenue increased by 12.39% versus the same period, the prior year.
In 2023 so far, shares of AXP stock have advanced by 8.46% year-to-date. Meanwhile, during Wednesday’s morning trading session, American Express’s stock is trading slightly higher by 0.31% at $159.57 a share.
Source: TD Ameritrade TOS
[Read More] 3 REIT Stocks For Your August 2023 Watchlist
Apple (AAPL Stock)
Second, Apple Inc. (AAPL) stands as a global powerhouse in the technology sector, known primarily for its innovative products such as the iPhone, iPad, and Mac computers. Apple has transformed the tech landscape with its emphasis on design, functionality, and user experience, making it one of the most valuable companies in the world.
Earlier this month, Apple announced its third quarter of 2023 financial results. Diving in, the tech giant reported a beat posting earnings of $1.26 per share and revenue of $81.80 billion. This is versus analysts’ consensus estimates for the quarter which were an EPS of $1.19 and revenue of $72.81 billion.
Year-to-date, shares of Apple stock have increased by 43.81% thus far. Moreover, on Wednesday morning, AAPL stock is trading up by 1.49% at $179.87 per share.
Source: TD Ameritrade TOS
[Read More] Best Trending Stocks To Buy Now? 3 AI Stocks To Know
McDonald’s Corp (MCD Stock)
Finally, McDonald’s Corporation (MCD) stands as a global dining establishment. Boasting more than 36,000 franchises across over 100 nations. McDonald’s serves a variety of foods which include burgers, fries, desserts, shakes, and coffee.
Late last month, McDonald’s announced better-than-expected Q2 2023 earnings results. Getting straight to it, the company reported earnings per share of $3.17 and revenue of $6.50 billion for Q2 2023. This is versus Wall Street’s consensus estimates which were earnings of $2.77 per share, along with revenue estimates of $6.23 billion. Additionally, revenue increased by 13.62% compared to the same period, the previous year.
Year-to-date, shares of MCD stock have grown by 6.72% so far. During Wednesday’s mid-morning trading session, McDonald’s stock is trading modestly higher by 0.64% at $282.09 per share.
Source: TD Ameritrade TOS
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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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Blue Chip Stocks To Buy [Or Avoid] Right Now American Express Company (NYSE: AXP) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (NYSE: MCD) American Express Company (AXP Stock) To begin, American Express Company (AXP) is a globally recognized financial services corporation. Source: TD Ameritrade TOS [Read More] 3 REIT Stocks For Your August 2023 Watchlist Apple (AAPL Stock) Second, Apple Inc. (AAPL) stands as a global powerhouse in the technology sector, known primarily for its innovative products such as the iPhone, iPad, and Mac computers. Moreover, on Wednesday morning, AAPL stock is trading up by 1.49% at $179.87 per share.
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Blue Chip Stocks To Buy [Or Avoid] Right Now American Express Company (NYSE: AXP) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (NYSE: MCD) American Express Company (AXP Stock) To begin, American Express Company (AXP) is a globally recognized financial services corporation. Source: TD Ameritrade TOS [Read More] 3 REIT Stocks For Your August 2023 Watchlist Apple (AAPL Stock) Second, Apple Inc. (AAPL) stands as a global powerhouse in the technology sector, known primarily for its innovative products such as the iPhone, iPad, and Mac computers. Moreover, on Wednesday morning, AAPL stock is trading up by 1.49% at $179.87 per share.
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Blue Chip Stocks To Buy [Or Avoid] Right Now American Express Company (NYSE: AXP) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (NYSE: MCD) American Express Company (AXP Stock) To begin, American Express Company (AXP) is a globally recognized financial services corporation. Source: TD Ameritrade TOS [Read More] 3 REIT Stocks For Your August 2023 Watchlist Apple (AAPL Stock) Second, Apple Inc. (AAPL) stands as a global powerhouse in the technology sector, known primarily for its innovative products such as the iPhone, iPad, and Mac computers. Moreover, on Wednesday morning, AAPL stock is trading up by 1.49% at $179.87 per share.
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Blue Chip Stocks To Buy [Or Avoid] Right Now American Express Company (NYSE: AXP) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (NYSE: MCD) American Express Company (AXP Stock) To begin, American Express Company (AXP) is a globally recognized financial services corporation. Source: TD Ameritrade TOS [Read More] 3 REIT Stocks For Your August 2023 Watchlist Apple (AAPL Stock) Second, Apple Inc. (AAPL) stands as a global powerhouse in the technology sector, known primarily for its innovative products such as the iPhone, iPad, and Mac computers. Moreover, on Wednesday morning, AAPL stock is trading up by 1.49% at $179.87 per share.
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14164.0
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2023-08-23 00:00:00 UTC
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Should You Buy Qualcomm on the Dip?
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AAPL
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https://www.nasdaq.com/articles/should-you-buy-qualcomm-on-the-dip
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nan
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nan
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Investors in the big-cap tech sector have been taken on a roller-coaster ride over the past year. Tech stocks fell hard late in 2022 due to rising interest rates and elevated inflation levels, which translated to higher interest expenses and lower margins for the sector. More recently, after a historic first-half performance for the Nasdaq 100 Index ($IUXX) to start 2023, a mixed second-quarter earnings season and signs of a sluggish global economy have weighed on investor sentiment - sparking pullbacks across the stock market over the past month.
Shares of semiconductor giant Qualcomm (QCOM) didn't perform quite as historically as the broader Nasdaq in the first half, but still managed a gain of 8.2% for the period. Since peaking just shy of $133 this past July, though, the stock has shed more than 16%. At its current levels around $111 per share, QCOM is valued at a market cap of $122.17 billion, and the stock offers shareholders a dividend yield of 2.9%.
But is QCOM a good buy on the latest pullback - or just riding the latest wave of share price volatility? Let's take a look.
www.barchart.com Is Qualcomm Stock a Buy, Sell, or a Hold?
Qualcomm is best known as a designer and manufacturer of semiconductors and wireless telecom chips. The company enjoys leadership in verticals such as wireless connective, high-performance, low-power computing, on-device intelligence, and RF front-end. It is also the leading processor brand for premium Android-powered smartphones.
While Qualcomm is a major semiconductor player, the tech stock has trailed broader equity markets by a wide margin over the past decade. Since August 2013, QCOM stock has returned 121%, compared to gains of 167% for the S&P 500 Index ($SPX) and 387% for the Nasdaq 100.
The ongoing 5G upgrade cycle is a critical driver for Qualcomm in the near term. A research report from Counterpoint estimates global smartphone sales will hit their lowest point in a decade this year. The smartphone segment accounts for a majority of sales for Qualcomm, and the slowdown in mobile sales has negatively impacted the company’s top-line growth. But as customers will continue to upgrade their devices every few years, the slowdown is unlikely to be a long-term headwind.
In addition to falling smartphone sales industrywide, Qualcomm is on the verge of losing one of its largest customers in Apple (AAPL), which accounts for roughly 10% of sales. Apple has disclosed plans to replace Qualcomm’s modems with its own chips as soon as 2024. Qualcomm is also losing market share to competitors like MediaTek, exacerbating its top-line deceleration.
Qualcomm is now looking to diversify its revenue base, and aims to gain traction in the highly disruptive artificial intelligence (AI) segment - a market that is forecast to surpass $1 trillion by 2030, according to some estimates.
Moreover, Qualcomm's digital chassis allows automotive manufacturers to integrate communication functionalities and driver assistance capabilities in vehicles, further diversifying the company's revenue stream away from telecom. Another driver for the tech giant may be the Internet of Things (IoT) segment, as Qualcomm is already developing chips to power VR headsets for Meta Platforms’ (META) Oculus.
In fiscal Q3 of 2023 (ended in June), Qualcomm's smartphone sales stood at $5.3 billion, followed by IoT revenue at $1.5 billion, and automotive revenue at $434 million. While total sales were down 23% year over year, adjusted EPS fell by 37% in the June quarter.
Semiconductor stocks tend to be cyclical in nature, and analysts expect fiscal 2023 earnings for Qualcomm to decline by 42.5% overall, weighed down by an expected 47.5% drop in current quarter earnings.
What is the Target Price for Qualcomm Stock?
Out of the 22 analysts covering Qualcomm stock, 14 recommend a “strong buy,” 1 recommends a “moderate buy,” six recommend a “hold,” and one recommends a “strong sell.” The average price target for QCOM is $135.95, which is about 22% above current levels.
www.barchart.com
QCOM stock is priced at 3.5x forward sales and 13.2x forward earnings, which is quite reasonable based on industry averages.
That said, while the recent pullback and relatively attractive valuation might limit the downside risk for investors, Qualcomm should prove that it can stabilize earnings and cash flows across market cycles before it qualifies as a truly enticing investment for shareholders.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition to falling smartphone sales industrywide, Qualcomm is on the verge of losing one of its largest customers in Apple (AAPL), which accounts for roughly 10% of sales. More recently, after a historic first-half performance for the Nasdaq 100 Index ($IUXX) to start 2023, a mixed second-quarter earnings season and signs of a sluggish global economy have weighed on investor sentiment - sparking pullbacks across the stock market over the past month. Qualcomm is now looking to diversify its revenue base, and aims to gain traction in the highly disruptive artificial intelligence (AI) segment - a market that is forecast to surpass $1 trillion by 2030, according to some estimates.
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In addition to falling smartphone sales industrywide, Qualcomm is on the verge of losing one of its largest customers in Apple (AAPL), which accounts for roughly 10% of sales. Shares of semiconductor giant Qualcomm (QCOM) didn't perform quite as historically as the broader Nasdaq in the first half, but still managed a gain of 8.2% for the period. In fiscal Q3 of 2023 (ended in June), Qualcomm's smartphone sales stood at $5.3 billion, followed by IoT revenue at $1.5 billion, and automotive revenue at $434 million.
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In addition to falling smartphone sales industrywide, Qualcomm is on the verge of losing one of its largest customers in Apple (AAPL), which accounts for roughly 10% of sales. While Qualcomm is a major semiconductor player, the tech stock has trailed broader equity markets by a wide margin over the past decade. The smartphone segment accounts for a majority of sales for Qualcomm, and the slowdown in mobile sales has negatively impacted the company’s top-line growth.
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In addition to falling smartphone sales industrywide, Qualcomm is on the verge of losing one of its largest customers in Apple (AAPL), which accounts for roughly 10% of sales. More recently, after a historic first-half performance for the Nasdaq 100 Index ($IUXX) to start 2023, a mixed second-quarter earnings season and signs of a sluggish global economy have weighed on investor sentiment - sparking pullbacks across the stock market over the past month. Qualcomm is best known as a designer and manufacturer of semiconductors and wireless telecom chips.
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14165.0
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2023-08-23 00:00:00 UTC
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US STOCKS-Indexes jump, AI chip maker Nvidia up ahead of results
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AAPL
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https://www.nasdaq.com/articles/us-stocks-indexes-jump-ai-chip-maker-nvidia-up-ahead-of-results
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Aug 23 (Reuters) - U.S. stocks were sharply higher in afternoon trading Wednesday, with the S&P 500 and Nasdaq up more than 1% each, as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing.
Investors expect another strong outlook from Nvidia, which reports after the closing bell, could fuel a further rally in tech stocks.
Shares of Nvidia were up 2.6% in afternoon trading, adding to recent gains. The stock hit a record high on Tuesday.
Adding to Wall Street's upbeat mood, the yield on the 10-year U.S. Treasury note US10YT=RR eased from near 16-year highs after weak business activity data from the United States and the euro zone.
"What's troubled this market has been the persistent rise in rates at the longer end," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
U.S. Federal Reserve Chair Jerome Powell's comments on Friday at the Jackson Hole conference will be scrutinized for clues on the U.S. central bank's interest rate path.
The Dow Jones Industrial Average .DJI rose 159.4 points, or 0.46%, to 34,448.23, the S&P 500 .SPX gained 46.69 points, or 1.06%, to 4,434.24 and the Nasdaq Composite .IXIC added 218.65 points, or 1.62%, to 13,724.52.
Nvidia's report and comments will be key to the broad market, Meckler said.
"Not just their numbers, but what they say in the conference call about what's happening in AI is going to have a big impact on market sentiment," he said.
Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations.
Investors in a Reuters poll said they expected the S&P 500 to end the year at 4,496, about 2.2% above Monday's close.
Shares of drugmakers Gilead Sciences GILD.O and Merck & Co MRK.N advanced after Swiss rival Roche ROG.S inadvertently published positive lung cancer drug trial data.
Advancing issues outnumbered declining ones on the NYSE by a 3.62-to-1 ratio; on Nasdaq, a 2.17-to-1 ratio favored advancers.
Nvidia shares soar in 2023 https://tmsnrt.rs/3Pa6Xi0
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Shinjini Ganguli, Anil D'Silva and David Gregorio)
((Amruta.Khandekar@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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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. By Caroline Valetkevitch NEW YORK, Aug 23 (Reuters) - U.S. stocks were sharply higher in afternoon trading Wednesday, with the S&P 500 and Nasdaq up more than 1% each, as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing. Adding to Wall Street's upbeat mood, the yield on the 10-year U.S. Treasury note US10YT=RR eased from near 16-year highs after weak business activity data from the United States and the euro zone.
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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. By Caroline Valetkevitch NEW YORK, Aug 23 (Reuters) - U.S. stocks were sharply higher in afternoon trading Wednesday, with the S&P 500 and Nasdaq up more than 1% each, as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing. Shares of Nvidia were up 2.6% in afternoon trading, adding to recent gains.
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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. By Caroline Valetkevitch NEW YORK, Aug 23 (Reuters) - U.S. stocks were sharply higher in afternoon trading Wednesday, with the S&P 500 and Nasdaq up more than 1% each, as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing. Nvidia shares soar in 2023 https://tmsnrt.rs/3Pa6Xi0 (Reporting by Amruta Khandekar and Shristi Achar A; Editing by Shinjini Ganguli, Anil D'Silva and David Gregorio) ((Amruta.Khandekar@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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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. By Caroline Valetkevitch NEW YORK, Aug 23 (Reuters) - U.S. stocks were sharply higher in afternoon trading Wednesday, with the S&P 500 and Nasdaq up more than 1% each, as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing. Shares of Nvidia were up 2.6% in afternoon trading, adding to recent gains.
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14166.0
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2023-08-23 00:00:00 UTC
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3 Wide-Moat Stocks That Warren Buffett Loves
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AAPL
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https://www.nasdaq.com/articles/3-wide-moat-stocks-that-warren-buffett-loves
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With all the economic question marks lately, investors are craving some stability. Enter wide-moat stocks. These fortress-like companies have durable competitive edges that act as economic moats, protecting them from competition and enabling juicy returns over the long haul.
Still, as we approach the end of summer 2023, there’s plenty of uncertainty, even around companies with wide moats. But savvy investors take a page from the Oracle of Omaha in times like these. Warren Buffett has made a fortune by betting on high-quality businesses with structural advantages in their fields. By digging into operations and money matters, Buffett spots companies poised to prosper decade after decade, no matter how wonky the markets get in the short run.
Snatching up shares of these winners when they’re undervalued can pay off big time down the road, thanks to the power of compounding. Let’s look at three such wide-moat stocks that stand out.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Warren Buffett once famously said that if someone offered you $10,000 to never buy an iPhone again, you wouldn’t take it. And unless you live in North Korea, that’s as true as it gets.
In my view, Apple (NASDAQ:AAPL) is the best blue-chip company out there, and its moat is basically indestructible. It’s no wonder most holding companies, including Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), allocate a substantial portion of their portfolio to Apple stock. Even better, after its recent correction of around 11%, the stock looks attractively priced for a long-term position.
Apple just reported earnings that were a mixed bag. Revenue narrowly missed estimates, down 1.4% year-over-year. iPhone sales fell 2% amid supply constraints. This news initially sent the stock lower in after-hours trading. However, I believe these results are nothing for long-term investors to worry about. Apple’s services segment hit a new all-time high, proving the stickiness of its ecosystem even during tough economic times. The company also continues to innovate with exciting new products on the horizon, like the Apple Vision Pro headset.
While Apple faces some short-term headwinds like FX and supply chain issues, its brand remains one of the strongest in the world. With its fortress balance sheet, Apple is poised to thrive for decades to come. I firmly believe this is a dream stock to buy on dips and hold forever. Any weakness presents a golden buying opportunity for those with a long investment horizon. The latest dip is no different.
Moody’s (MCO)
Source: Daniel J. Macy / Shutterstock.com
Moody’s (NYSE:MCO) is Warren Buffett’s eighth largest holding, for very good reasons. The credit rating industry is extremely concentrated, with only three big players. Moody’s is the second-largest company in this industry and retains the highest profit margins among the two public companies. Plus, it arguably has the strongest brand value of them all.
Moody’s credit ratings and research are deeply embedded in global financial markets and regulations. Its reputation with issuers and investors has been built up over more than a century. While new technologies will bring changes, I believe Moody’s entrenched position remains very secure. With a reasonable valuation at 32-times forward earnings, this is a high-quality stock perfect for a “buy and hold forever” portfolio.
Moody’s just delivered a strong quarterly earnings beat, with earnings per share of $2.30 versus estimates of $2.22. Revenue also topped forecasts at $1.49 billion. The company raised its guidance for the rest of the year, now projecting roughly 10% revenue growth, reflecting its confidence even in a turbulent market.
If you’re still not convinced, Moody’s has a forward dividend yield of almost 1% to sweeten the deal.
Visa (V)
Source: Kikinunchi / Shutterstock.com
It’s hard to argue that Visa (NYSE:V), the largest credit card company in the world, is going away anytime soon. This household name has a massive impact on the fintech industry and grows with the broader economy as vast amounts of money flow through its network. Even better, it boasts one of the best profit margins in the entire stock market at over 51%. Visa is slowly gaining more and more market share internationally, and if trends continue, this duopoly with Mastercard (NYSE:MA) could very well turn into a monopoly.
However, some analysts have warned that emerging digital payment rivals could disrupt Visa’s traditional card-based business model. I do not believe this is a serious long-term threat. Visa just posted strong quarterly results, with its earnings per share beating estimates at $2.16 versus $2.12 expected. Revenue also topped forecasts at $8.12 billion. While new payment technologies are emerging, Visa’s acceptance network alone will ensure its dominance for decades to come.
The stock isn’t cheap at nearly 28-times forward earnings, but premium quality rarely is. Visa generates abundant cash flow, has pricing power, and possesses an economic moat few companies can match. For a set-it-and-forget-it investment likely to outperform over the long run, Visa belongs in every investor’s portfolio.
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 3 Wide-Moat Stocks That Warren Buffett Loves 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 Warren Buffett once famously said that if someone offered you $10,000 to never buy an iPhone again, you wouldn’t take it. In my view, Apple (NASDAQ:AAPL) is the best blue-chip company out there, and its moat is basically indestructible. Visa is slowly gaining more and more market share internationally, and if trends continue, this duopoly with Mastercard (NYSE:MA) could very well turn into a monopoly.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Warren Buffett once famously said that if someone offered you $10,000 to never buy an iPhone again, you wouldn’t take it. In my view, Apple (NASDAQ:AAPL) is the best blue-chip company out there, and its moat is basically indestructible. Moody’s (MCO) Source: Daniel J. Macy / Shutterstock.com Moody’s (NYSE:MCO) is Warren Buffett’s eighth largest holding, for very good reasons.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Warren Buffett once famously said that if someone offered you $10,000 to never buy an iPhone again, you wouldn’t take it. In my view, Apple (NASDAQ:AAPL) is the best blue-chip company out there, and its moat is basically indestructible. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With all the economic question marks lately, investors are craving some stability.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Warren Buffett once famously said that if someone offered you $10,000 to never buy an iPhone again, you wouldn’t take it. In my view, Apple (NASDAQ:AAPL) is the best blue-chip company out there, and its moat is basically indestructible. However, I believe these results are nothing for long-term investors to worry about.
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14167.0
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2023-08-23 00:00:00 UTC
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Indexes end sharply higher; AI chip maker Nvidia up ahead of results
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AAPL
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https://www.nasdaq.com/articles/indexes-end-sharply-higher-ai-chip-maker-nvidia-up-ahead-of-results
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Aug 23 (Reuters) - U.S. stocks ended sharply higher on Wednesday as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing.
Investors expect that another strong outlook from Nvidia could fuel a further rally in tech stocks. It is due to report after the closing bell.
Shares of Nvidia rose ahead of the report, adding to recent gains. Its stock is up more than 220% for the year so far.
Adding to Wall Street's upbeat mood, the yield on the 10-year U.S. Treasury note US10YT=RR eased from near 16-year highs after weak business activity data from the United States and the euro zone.
"What's troubled this market has been the persistent rise in rates at the longer end," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
U.S. Federal Reserve Chair Jerome Powell's comments on Friday at the Jackson Hole conference will be scrutinized for clues on the U.S. central bank's interest rate path.
According to preliminary data, the S&P 500 .SPX gained 48.84 points, or 1.11%, to end at 4,436.39 points, while the Nasdaq Composite .IXIC gained 215.16 points, or 1.59%, to 13,721.03. The Dow Jones Industrial Average .DJI rose 188.50 points, or 0.55%, to 34,477.33.
Nvidia's report and comments will be key to the broad market, Meckler said.
"Not just their numbers, but what they say in the conference call about what's happening in AI is going to have a big impact on market sentiment," he said.
Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations.
According to strategists in a Reuters poll, the S&P 500 will eke out only marginal gains between now and year end, after its strong move up already this year. The index was forecast to end the year at 4,496.
Shares of drugmakers Gilead Sciences GILD.O and Merck & Co MRK.N advanced after Swiss rival Roche ROG.S inadvertently published positive lung cancer drug trial data.
Nvidia shares soar in 2023 https://tmsnrt.rs/3Pa6Xi0
(Reporting by Caroline Valetkevitch; additonal reporting by Amruta Khandekar and Shristi Achar A; Editing by Shinjini Ganguli, Anil D'Silva and David Gregorio)
((caroline.valetkevitch@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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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. By Caroline Valetkevitch NEW YORK, Aug 23 (Reuters) - U.S. stocks ended sharply higher on Wednesday as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing. Adding to Wall Street's upbeat mood, the yield on the 10-year U.S. Treasury note US10YT=RR eased from near 16-year highs after weak business activity data from the United States and the euro zone.
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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. Shares of Nvidia rose ahead of the report, adding to recent gains. According to preliminary data, the S&P 500 .SPX gained 48.84 points, or 1.11%, to end at 4,436.39 points, while the Nasdaq Composite .IXIC gained 215.16 points, or 1.59%, to 13,721.03.
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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. By Caroline Valetkevitch NEW YORK, Aug 23 (Reuters) - U.S. stocks ended sharply higher on Wednesday as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing. According to preliminary data, the S&P 500 .SPX gained 48.84 points, or 1.11%, to end at 4,436.39 points, while the Nasdaq Composite .IXIC gained 215.16 points, or 1.59%, to 13,721.03.
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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. Shares of Nvidia rose ahead of the report, adding to recent gains. Its stock is up more than 220% for the year so far.
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14168.0
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2023-08-23 00:00:00 UTC
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NVIDIA Posts Giant Q2 Beats, Guides Way Higher
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AAPL
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https://www.nasdaq.com/articles/nvidia-posts-giant-q2-beats-guides-way-higher
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nan
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nan
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Well, if you were wondering why you had been hearing so much hoopla about NVIDIA NVDA and its earnings report after the bell this Hump Day — the market had high expectations for the quarter: +8.5% on Monday in anticipation of +300% earnings per share gains year over year, etc. But NVIDIA took those expectations and completely blew them out of the water.
Earnings of $2.70 per share beat those lofty expectations by +29% on the quarter, and an astounding +429% from $0.51 per share reported in the year-ago quarter. Revenues were even more staggering: $13.51 billion, easily sweeping past the $11.17 billion in the Zacks consensus, but +101% revenue growth year over year. And sales increased an astonishing +88% from just the previous quarter! This, from a company with a market cap of almost $1.3 TRILLION. Simply stated, no one does things like this.
Key to this report was the record-setting revenues from the Data Center segment, which, at $10.32 billion for Q2, amounted to an increase of +141% from the previous quarter. And, of course, we know the A.I. development — of which NVIDIA is the clear leader — resides in its Data Center business. We know the Tech world sees A.I. changing the overall business and social landscape, but only NVIDIA to this point can put up the figures behind it at this early stage. “A new computing era has begun,” founder and CEO Jensen Huang stated in the press release.
And NVIDIA was not finished: Q3 revenue guidance has been cranked way up to $16.00 billion, far beyond the analysts’ estimate of $12.34 billion. Additionally, the company’s board has approved $25 billion in new share repurchases, which will bring plenty of investors previously unsure of NVIDIA’s lofty valuation to the table. In fact, the company brought a Value-Growth-Momentum score of “F” into today’s report (along with a Zacks Rank #1 [Strong Buy]), but even those aspects need to be re-evaluated. Is it really an F for Value when you’re growing revenues +88% per quarter?
Shares are up on the news, predictably, although this is already one of the great success stories of 2023: +230% year to date, +14% in just the past three days BEFORE the +9.6% climb in today’s after-hours trading. Today’s report is reminiscent of the second Steve Jobs era at Apple AAPL, when the company was so far ahead of the field that expectations were extraordinary, and then they obliterated those expectations anyway. This is NVIDIA’s third-straight quarterly beat, but there has never been one quite like this.
Meanwhile, cloud-based software provider Snowflake SNOW has also trounced Q2 expectations in its report after today’s close, with earnings of 25 cents per share easily surpassing the 9 cents expected and the $0.01 reported in the year-ago quarter. Sales of $674 million in the quarter outperformed the $661.75 million in the Zacks consensus, and grew +36% year over year. Their full-year revenue guide was a bit light, however: $2.6 billion now expected, down from the $2.76 billion consensus. Nevertheless, shares are still up +4% in late trading.
Questions or comments about this article and/or author? Click here>>
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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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Today’s report is reminiscent of the second Steve Jobs era at Apple AAPL, when the company was so far ahead of the field that expectations were extraordinary, and then they obliterated those expectations anyway. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, the company’s board has approved $25 billion in new share repurchases, which will bring plenty of investors previously unsure of NVIDIA’s lofty valuation to the table.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report To read this article on Zacks.com click here. Today’s report is reminiscent of the second Steve Jobs era at Apple AAPL, when the company was so far ahead of the field that expectations were extraordinary, and then they obliterated those expectations anyway. Meanwhile, cloud-based software provider Snowflake SNOW has also trounced Q2 expectations in its report after today’s close, with earnings of 25 cents per share easily surpassing the 9 cents expected and the $0.01 reported in the year-ago quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report To read this article on Zacks.com click here. Today’s report is reminiscent of the second Steve Jobs era at Apple AAPL, when the company was so far ahead of the field that expectations were extraordinary, and then they obliterated those expectations anyway. Well, if you were wondering why you had been hearing so much hoopla about NVIDIA NVDA and its earnings report after the bell this Hump Day — the market had high expectations for the quarter: +8.5% on Monday in anticipation of +300% earnings per share gains year over year, etc.
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Today’s report is reminiscent of the second Steve Jobs era at Apple AAPL, when the company was so far ahead of the field that expectations were extraordinary, and then they obliterated those expectations anyway. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report To read this article on Zacks.com click here. Well, if you were wondering why you had been hearing so much hoopla about NVIDIA NVDA and its earnings report after the bell this Hump Day — the market had high expectations for the quarter: +8.5% on Monday in anticipation of +300% earnings per share gains year over year, etc.
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14169.0
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2023-08-23 00:00:00 UTC
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Apple endorses California bill on 'Right to Repair'
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AAPL
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https://www.nasdaq.com/articles/apple-endorses-california-bill-on-right-to-repair
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nan
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nan
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Aug 23 (Reuters) - Apple AAPL.O urged members of the California legislature to pass the "right to repair bill" or "Senate Bill 244" as currently drafted, in a letter on Tuesday, which requires manufacturers to allow customers to fix damaged devices.
The iPhone maker's move is a reversal from its years-long opposition towards access to repairs as the act would require electronic device makers to provide tools for repairing damaged appliances.
"We support "SB 244" because it includes requirements that protect individual users' safety and security as well as product manufacturers' intellectual property," Apple said in the letter.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri)
((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 23 (Reuters) - Apple AAPL.O urged members of the California legislature to pass the "right to repair bill" or "Senate Bill 244" as currently drafted, in a letter on Tuesday, which requires manufacturers to allow customers to fix damaged devices. "We support "SB 244" because it includes requirements that protect individual users' safety and security as well as product manufacturers' intellectual property," Apple said in the letter. (Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri) ((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 23 (Reuters) - Apple AAPL.O urged members of the California legislature to pass the "right to repair bill" or "Senate Bill 244" as currently drafted, in a letter on Tuesday, which requires manufacturers to allow customers to fix damaged devices. The iPhone maker's move is a reversal from its years-long opposition towards access to repairs as the act would require electronic device makers to provide tools for repairing damaged appliances. (Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri) ((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 23 (Reuters) - Apple AAPL.O urged members of the California legislature to pass the "right to repair bill" or "Senate Bill 244" as currently drafted, in a letter on Tuesday, which requires manufacturers to allow customers to fix damaged devices. The iPhone maker's move is a reversal from its years-long opposition towards access to repairs as the act would require electronic device makers to provide tools for repairing damaged appliances. (Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri) ((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 23 (Reuters) - Apple AAPL.O urged members of the California legislature to pass the "right to repair bill" or "Senate Bill 244" as currently drafted, in a letter on Tuesday, which requires manufacturers to allow customers to fix damaged devices. The iPhone maker's move is a reversal from its years-long opposition towards access to repairs as the act would require electronic device makers to provide tools for repairing damaged appliances. "We support "SB 244" because it includes requirements that protect individual users' safety and security as well as product manufacturers' intellectual property," Apple said in the letter.
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14170.0
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2023-08-23 00:00:00 UTC
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Is Apple the Best Buyer for ESPN?
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AAPL
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https://www.nasdaq.com/articles/is-apple-the-best-buyer-for-espn
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nan
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nan
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Wedbush analyst Dan Ives appeared on Bloomberg Surveillance on Aug. 17. He suggested that it’s not a matter of “if” Apple (AAPL) buys ESPN but “when.”
Nearly a week has passed since Ives’ comments. Google “Dan Ives Apple ESPN buy,” and you get more than 815,000 results. Both Apple and Disney (DIS) shareholders should be intrigued by the news.
However, it’s not the first time Apple’s been part of Disney-related speculation. Periodically, rumors surface that Tim Cook will buy the whole company, not just ESPN.
When you’re a long-time Disney shareholder -- its stock traded this low in the March 2020 correction; before that, you have to go back to 2014 -- you’re willing to believe anything that will get you into positive territory on your investment.
The big question here isn’t whether Apple should buy ESPN -- it’s got plenty if Cook wants to go shopping -- but whether Apple is the right buyer for the cable sports network.
Here are some potential buyers other than Apple.
Finding the Potential Candidates
Assuming Apple is even interested in ESPN, other companies wanting to wrestle it away from Tim Cook must have solid balance sheets. There will be no paupers in the mix.
“An acquisition or strategic partnership with the sports channel would be ‘a no brainer,’ wrote analyst Dan Ives. He said that buying ESPN would probably cost more than $50 billion, but would “make a ton of strategic sense” by giving Apple valuable sports content, major TV rights, and ‘change the cross-sell opportunities and attractiveness of Apple TV looking ahead,” Bloomberg wrote on Aug. 17.
So, I screened for public companies with market caps of $100 billion or more and net cash on the balance sheet. Except for Berkshire Hathaway (BRK.B), I’ve excluded all financials. That leaves me with 30 possibilities, including Apple and Berkshire.
Further, it probably doesn’t make sense for companies in the energy, health care, or industrial sectors to make a bid. Even tech is a bit of a long shot. Of course, Apple is in that sector, so tech stays.
This leaves me with 20 realistic names.
The Main Contender - Apple Top’s the List
Apple is the first name on the list. Ives logically argues why it might pay upwards of $50 billion to corral ESPN.
“Apple recognizes that in this streaming arms race there is a ‘closing window’ for the stalwart to acquire content and cement its footing in the live sports content arena,” Bloomberg reported the analyst’s comments.
This is true.
At the moment, Apple’s live sports are restricted to Major League Soccer and Major League Baseball, but apparently, it wants other professional sports as well. Go big or go home. It has the money.
Of course, adding ESPN would make its non-sports streaming content look even thinner than it already is.
With net cash of almost $37 billion, it’s right at the top of the list.
The Other Tech Contender
The other tech contender would be Microsoft (MSFT).
Microsoft is on the verge of getting very big in video games through its $69 billion acquisition of Activision Blizzard (ATVI). It would enable the software company to leverage sports programming through its gaming unit.
However, given MSFT is paying for the entire deal in cash, it might knock the company out of any near-term, large-dollar acquisition of ESPN. It might be able to entice Disney shareholders with an all-stock deal, but that’s purely speculation.
The Best of the Rest
From the communications services sector, you’ve got Alphabet (GOOGL) with $84 billion in net cash and Meta Platforms (META) with net cash of $13 billion.
In December 2022, YouTube won the rights to the NFL’s Sunday Ticket games starting this year. It paid out approximately $14 billion for the seven-year deal. It’s available on both YouTube TV and YouTube Primetime Channels.
Getting the NFL indeed intensifies the question of where it goes after Sunday Ticket.
As for Meta, I’m not sure it has the deep pockets of Alphabet, but 20 WNBA games this season will be seen on the Meta Quest virtual reality platform and through its Xtadium app, so it’s in the game.
A quick word on Netflix (NFLX): It is bypassing live sports for sports-related programming. For example, it’s got a current documentary, Quarterbacks, which goes behind the scenes with NFL quarterbacks. While it could certainly change its mind, it’s not a serious contender for now.
Lastly, and this is more of a joke, would be Warren Buffett’s holding company. In the second quarter, it exceeded $1 trillion in assets, more than 3x Apple’s assets. Berkshire doesn’t have the operating margins Apple does, but it has $22 billion in net cash as of June 30.
Buffett likes sports. One never knows.
Apple vs. the Field
Other possible buyers that didn’t make my list, such as Comcast (CMCSA), owner of NBCUniversal, could be interested. In addition, we can’t forget privately owned businesses that might have an interest.
But for now, it’s Apple against the world. We’ll all have a front seat to how this plays out. It ought to be very interesting.
More Stock Market News from Barchart
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On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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He suggested that it’s not a matter of “if” Apple (AAPL) buys ESPN but “when.” Nearly a week has passed since Ives’ comments. When you’re a long-time Disney shareholder -- its stock traded this low in the March 2020 correction; before that, you have to go back to 2014 -- you’re willing to believe anything that will get you into positive territory on your investment. Finding the Potential Candidates Assuming Apple is even interested in ESPN, other companies wanting to wrestle it away from Tim Cook must have solid balance sheets.
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He suggested that it’s not a matter of “if” Apple (AAPL) buys ESPN but “when.” Nearly a week has passed since Ives’ comments. Google “Dan Ives Apple ESPN buy,” and you get more than 815,000 results. He said that buying ESPN would probably cost more than $50 billion, but would “make a ton of strategic sense” by giving Apple valuable sports content, major TV rights, and ‘change the cross-sell opportunities and attractiveness of Apple TV looking ahead,” Bloomberg wrote on Aug. 17.
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He suggested that it’s not a matter of “if” Apple (AAPL) buys ESPN but “when.” Nearly a week has passed since Ives’ comments. The big question here isn’t whether Apple should buy ESPN -- it’s got plenty if Cook wants to go shopping -- but whether Apple is the right buyer for the cable sports network. He said that buying ESPN would probably cost more than $50 billion, but would “make a ton of strategic sense” by giving Apple valuable sports content, major TV rights, and ‘change the cross-sell opportunities and attractiveness of Apple TV looking ahead,” Bloomberg wrote on Aug. 17.
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He suggested that it’s not a matter of “if” Apple (AAPL) buys ESPN but “when.” Nearly a week has passed since Ives’ comments. The big question here isn’t whether Apple should buy ESPN -- it’s got plenty if Cook wants to go shopping -- but whether Apple is the right buyer for the cable sports network. He said that buying ESPN would probably cost more than $50 billion, but would “make a ton of strategic sense” by giving Apple valuable sports content, major TV rights, and ‘change the cross-sell opportunities and attractiveness of Apple TV looking ahead,” Bloomberg wrote on Aug. 17.
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14171.0
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2023-08-23 00:00:00 UTC
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Don’t Hold Your Breath: 7 High-Profile Stocks With Ridiculous Price Targets
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AAPL
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https://www.nasdaq.com/articles/dont-hold-your-breath%3A-7-high-profile-stocks-with-ridiculous-price-targets
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Overhyped stock picks can be tough to spot because people can get caught up in the possibilities.
Let’s face it, Wall Street analysts can get a bit exuberant with their forecasts. They love drawing straight lines that rise ever higher. Just look at the estimates assigned for any new, trendy industry.
The same goes with analyst price targets. The breathless assertion that a stock will go to the moon seems better suited for some Reddit chatroom than the tony offices of a supposedly sober Wall Street firm. Yet here we are with some of the most overhyped stock picks on the market.
Based on analyst assumptions, the following seven companies are set to rocket higher over the next year. It seems a tall order. Investors putting their money on the line should reset their expectations much lower with these overhyped stock picks.
Caution is warranted when it comes to overhyped stock picks. Investing should be about the long term growth of a business, not how high a stock can go in the space of just a year.
Tesla (TSLA)
Source: Roschetzky Photography / Shutterstock.com
Most of Wall Street seems to have a good grip on reality when it comes to Tesla (NASDAQ: TSLA). With shares trading at around $215 per share at the time of writing, the consensus one-year price target of $227 per share is not absurd. It’s a 5% gain.
To make sales numbers, Tesla is cutting car prices, which is hitting profits. Operating margins sank to 9.6% in the second quarter, down from 11.4% in the first, and 14.6% a year ago. Even on an adjusted basis EBITDA margins tumbled 370 basis points.
The electric car company also finds it necessary to advertise its cars now, something it never had to do before. That will be an additional expense.
Yet a few months ago Cathie Wood’s Ark Invest firm put a $2,000 per share target price on Tesla stock that still stands.
Admittedly, it was for the year 2027 not 12 months from now, but it seems absurd on its face considering the increased competition and growing issues facing the EV maker. By those lights, TSLA is definitely one of the more overhyped stock picks out there.
PayPal (PYPL)
I don’t dislike PayPal (NASDAQ:PYPL) as an investment, quite the opposite. I think it could be a good, long-term pick for investors. But as I mentioned above, investors need to have the correct mindset when buying into a company.
PayPal’s stock is down 40% over the past year. Wall Street, though, has a consensus outlook for $92 per share, a 55% gain from its current $59 per share level. On the high side, though, one analyst sees the fintech stock surging 114% to $126 per share.
That seems a tad lofty. PayPal faces stiff and growing competition in the payments space. It needs to confront the challenge Apple (NASDAQ:AAPL) presents as Apple Pay becomes an increasingly accepted payment option at checkout. It also has to combat Block‘s (NYSE:SQ) Square and upstarts like Paysafe (NASDAQ:PSFE) that focuses on the entertainment and gaming industry.
So, although I like PayPal’s chances of maintaining its status as a premiere payments platform, I don’t expect it being a moonshot anytime soon, it’s one of the overhyped stock picks that you shouldn’t get too excited about.
Sea Ltd (SE)
Source: Shutterstock
Online gaming and shopping platform Sea Ltd (NYSE:SE) is another company analysts just can’t believe isn’t doing better.
It lost a third of its value after its recent earnings report, so price targets will likely be recalculated, but they were still fairly pie in the sky beforehand.
Wall Street was targeting a $77 per share level, which was about 38% above its close prior to earnings. The high end of $115 per share should have been a non-starter from the get-go.
The early gains from its IPO were a pandemic-driven boost it failed to maintain. Its popular Free Fire game lost momentum along with the rest of the video gaming market in a reopened economy.
Its Shopee online platform was expanded beyond its core Asian market into Latin America and ran into competition from Alibaba‘s (NYSE:BABA) Lazada and others.
Revenue in the second quarter only rose 5% to $3.1 billion, missing projections for $3.3 billion in sales. Its banking business is experiencing growing credit losses forcing it to increase its provision for losses by 37%.
That could threaten the entire segment if things turn south making this one of the overhyped stock picks to avoid.
Farfetch (FTCH)
Source: nikkimeel / Shutterstock.com
Hope springs eternal at online luxury fashion platform Farfetch (NYSE:FTCH). The stock just collapsed 45% to $2.61 per share on a disastrous second quarter earnings report. Wall Street, however, has a consensus price target of almost $9 per share on the stock.
Certainly analysts will be revising their outlook soon enough, but even when Farfetch was trading at $4.76 per share, Wall Street was looking for the stock to almost double. And one cheeky analyst had a $20 price target, for a 320% gain. At today’s prices, it would need to rise 666% to achieve that price.
Farfetch is facing crumbling demand for luxury goods in the U.S. and China, its two biggest markets. The luxury fashion marketplace routinely loses money and in the second quarter was burning through cash.
Its debt levels are also growing. It has almost $1 billion outstanding, yet Wall Street just can’t take its rose-colored glasses off of this money-burning stock.
Macy’s (M)
Source: Joe Tabacca / Shutterstock.com
The consensus view of Macy’s (NYSE:M) is not radical, though perhaps a bit optimistic. The 27% growth Wall Street is baking into its $19 price target is arguably not unreasonable, but the doubling of the stock to $30 that one analyst forecasts is.
Macy’s lost a third of its value over the last six months. It will prove difficult to regain any momentum. From its peak in 2001, department store monthly revenue dropped from almost $20 billion to under $11 billion today. Certainly online shopping offset most of the decline, but that just means Macy’s is going to have a difficult time going forward.
Amazon (NASDAQ:AMZN) increased its e-commerce market share to 47.9%, according to PYMTS. Walmart (NYSE:WMT) is second at just 6.7%.
Post-pandemic revenge shopping at brick-and-mortar retailers slowed online shopping’s advance for a bit, but e-commerce is growing once again.
To expect the venerable retailer to make a sharp U-turn in its fortunes is not a realistic outlook.
Spotify (SPOT)
Source: Diego Thomazini / Shutterstock.com
Music streaming platform Spotify (NYSE:SPOT) is another stock that doesn’t seem overpriced in relation to analyst consensus targets (25% upside is forecast), but at the high end Wall Street is surely running off the rails. Expecting it to rise nearly 90% is a stretch.
Spotify is up 67% year to date, though it had been higher before giving up a quarter of its value. Second quarter earnings failed to impress investors despite the streamer adding a record number of new users for the period.
The problem is Spotify always loses money. In its 17 years of operation, it’s rarely turned a profit. That was the case again this quarter where losses doubled from the year ago period. They also widened from the first quarter.
Operating costs are soaring, margins are worsening, and free cash flow is deteriorating rapidly. Management says it’s more disciplined in its spending, but until that actually begins to show up on the financial statements, it’s hard to see Spotify’s stock rallying so high.
Lemonade (LMND)
Source: Stephanie L Sanchez / Shutterstock.com
Insurance underwriter Lemonade (NYSE:LMND) is different from its competition.
It uses artificial intelligence and data to determine risk and underwrite policies for renters, homeowners, and more recently, autos. It’s helped Lemonade grow quickly, similar to online lender Upstart (NASDAQ:UPST), which uses AI to vet borrowers.
Customer counts rose 21% in the second quarter to over one million while premiums in force surged 50% to $687 million. Yet its key differentiator, AI, doesn’t seem to give it any competitive advantages.
While loss ratios are declining over time, they still exceed the competition. For example, Lemonade’s loss ratio for homeowners insurance, excluding natural disasters, was 69%, far above the 47.7% Allstate (NYSE:ALL) reported.
It hasn’t reported auto loss ratios yet, but Lemonade says it “has not yet made material improvements.”
That suggests AI isn’t helping Lemonade do better than traditional underwriting. Upstart is having similar issues. And as Lemonade expands into new verticals, margins could worsen.
The insurer also trades at nearly three times sales whereas Allstate and much of the rest of the insurance industry trades at less than one. Growing its stock valuation further is going to prove difficult.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post Don’t Hold Your Breath: 7 High-Profile Stocks With Ridiculous Price Targets 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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It needs to confront the challenge Apple (NASDAQ:AAPL) presents as Apple Pay becomes an increasingly accepted payment option at checkout. So, although I like PayPal’s chances of maintaining its status as a premiere payments platform, I don’t expect it being a moonshot anytime soon, it’s one of the overhyped stock picks that you shouldn’t get too excited about. Its Shopee online platform was expanded beyond its core Asian market into Latin America and ran into competition from Alibaba‘s (NYSE:BABA) Lazada and others.
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It needs to confront the challenge Apple (NASDAQ:AAPL) presents as Apple Pay becomes an increasingly accepted payment option at checkout. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Overhyped stock picks can be tough to spot because people can get caught up in the possibilities. Sea Ltd (SE) Source: Shutterstock Online gaming and shopping platform Sea Ltd (NYSE:SE) is another company analysts just can’t believe isn’t doing better.
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It needs to confront the challenge Apple (NASDAQ:AAPL) presents as Apple Pay becomes an increasingly accepted payment option at checkout. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Overhyped stock picks can be tough to spot because people can get caught up in the possibilities. Wall Street, however, has a consensus price target of almost $9 per share on the stock.
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It needs to confront the challenge Apple (NASDAQ:AAPL) presents as Apple Pay becomes an increasingly accepted payment option at checkout. Wall Street, though, has a consensus outlook for $92 per share, a 55% gain from its current $59 per share level. Wall Street, however, has a consensus price target of almost $9 per share on the stock.
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2023-08-23 00:00:00 UTC
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AAPL Factor-Based Stock Analysis - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-warren-buffett-5
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
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Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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14173.0
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2023-08-23 00:00:00 UTC
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How to Buy OpenAI Stock: A Guide
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AAPL
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https://www.nasdaq.com/articles/how-to-buy-openai-stock%3A-a-guide
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nan
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nan
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As artificial intelligence consumes more media and investor attention, some investors are considering AI research lab OpenAI. If you're an investor asking yourself, “How can I buy Open AI stock?” — you're in for some unfortunate news. The company is currently privately owned and not on any major stock exchange.
However, while you cannot buy Open AI stock directly, there are a few stocks you can invest in to gain exposure to the blooming artificial intelligence industry. Read on to learn how to invest in OpenAI through associated stocks and ETFs and learn more about how OpenAI is changing the current artificial intelligence landscape.
What is OpenAI?
Best known as the company behind AI sensation ChatGPT, OpenAI is an artificial intelligence research organization. The company's stated goal is to develop artificial intelligence and make that research as widely available to the general public as possible. OpenAI operates as two segments: the non-profit OpenAI Inc. and its for-profit subsidiary OpenAI L.P. Its ultimate goal is to create, develop and distribute highly autonomous systems to replicate human performance and speech patterns.
Founded in 2015, OpenAI is notable for its Generative Pre-trained Transformer (GPT) tech, developed to produce coherent and human-like text from information available on open search engines. Additional projects from OpenAI include image generation software Dall-E and AI-generated translation software Whisper.
At the forefront of artificial technology, many investors wonder how to buy OpenAI stock or ChatGPT stock. Is OpenAI a public company? Unfortunately, it is not currently possible to buy Open AI stock because the company is a privately held research institution. While you cannot search an OpenAI stock ticker, you can make an AI stock buy and gain exposure to the company by investing in stocks and ETFs associated with OpenAI.
Can You Buy OpenAI Stock?
To understand why investing in OpenAI stock is impossible, you must understand the difference between privately owned and publicly owned companies. The companies that offer shares of stock on exchanges like the New York Stock Exchange and the tech-forward NASDAQ are publicly traded companies.
As the name suggests, public companies are those owned by shareholders from the general public who elect to purchase shares of stock. These companies are subject to heavy regulation and scrutiny from the Securities Exchange Commission and must disclose financial and income information to investors.
On the other hand, private companies are not publicly traded; you cannot buy into them as easily as buying a share of stock from companies like Apple or Meta. Instead, a small collection of investors hold ownership and shares. Private companies enjoy the benefits of more flexibility in reporting and managing income but don’t fundraise publicly like public companies.
As of August 2023, OpenAI is a privately held company, meaning that there is no OpenAI ticker or stock symbol you can search for to invest through. The company’s hybrid structure, composed of both nonprofit and profit-oriented companies, has contributed to founders’ hesitancy to offer shares to retail investors.
When Will OpenAI Have its IPO?
Companies can shift from private to public ownership during an initial public offering (IPO).
An IPO is a process through which a private company offers its shares to the public for the first time, entering the public stock exchange. During an IPO, the company's financial information and business strategy are disclosed to potential investors. The stock market determines the company's value once the shares are sold to the public. IPOs offer opportunities for both investors to buy shares and companies to access funding but come with strict conditions corporations must meet.
When will OpenAI go public? Due to its hybrid model, OpenAI’s leadership has stated that the company has no plans to pursue an IPO. It appears that the question of "Is OpenAI on the stock market?" will remain "no" for the foreseeable future — a disappointment for investors looking for innovative tech stocks.
How to Buy OpenAI Stock
How can you invest in OpenAI if the company doesn't yet have a stock listed for sale? While you cannot currently buy OpenAI stock, you can prepare yourself if the company does decide to seek an IPO. Use the following steps to stay prepared — and prime yourself for additional AI investment opportunities.
Step 1: Open a brokerage account.
The first step to buying or selling any share of stock is to open a brokerage account. Brokerage accounts are accounts issued and approved by licensed stockbrokers, companies that may buy and sell assets on behalf of customers.
Many types of brokerage accounts range from flexible taxable to retirement-oriented accounts like IRAs and come with tax advantages. Research the types of brokerage accounts, open an account of your choice and practice investing in a few assets to prepare yourself if OpenAI decides to pursue an IPO.
Step 2: Familiarize yourself with the tech market.
Artificial intelligence is only a small part of the overall tech market, with OpenAI representing only a small portion of the AI industry. Consider researching and investing in other top-rated tech-oriented stocks to understand the AI market better. Researching and investing in companies that support the booming tech industry can help you stay current withmarket news learning more about public companies aiming towards objectives like OpenAI.
Step 3: Stay up to date with company updates.
As you enter and explore the market, you should stay updated with OpenAI’s company announcements and corporate blog. Remain dynamic and interested in OpenAI’s continued development to be prepared if the company decides to pursue an IPO.
More interested in being an early investor than you are in OpenAI specifically? Hundreds of unique companies pursue IPO yearly, giving investors unprecedented access to early stock sales. MarketBeat’s list of upcoming IPOs offers a convenient place to explore companies set to go public next month.
5 Related OpenAI Stocks to Invest in
While you might not currently be able to invest in OpenAI, you can always enter the artificial intelligence market with other publicly traded options. The following tech companies are also conducting artificial intelligence research similar to OpenAI.
Alphabet Inc.
Alphabet Inc. (NASDAQ: GOOG), the parent company of Google, is known for its extensive AI research, with projects like Google AI working to improve learning processes. In August of 2023, it showcased a total net income of more than $59 billion and a total market capitalization in the trillions. Alphabet may be an ideal choice for investors looking for AI exposure while investing primarily in blue-chip options.
NVIDIA
NVIDIA (NASDAQ: NVDA) is one of the world’s largest microchip manufacturers, but the company also invests heavily in artificial intelligence capabilities. For example, one of NVIDIA’s most prominent investments is in AI startup Recursion, which committed to an AI streamlined focus in July 2023. Nvidia's investment in Recursion involves using its AI expertise and cloud platform to accelerate the training of AI models for drug discovery, which can benefit investors in both the tech sector and the healthcare sector.
IBM
IBM (NYSE: IBM) is a prominent technology conglomerate with a history of AI research and development. Its Watson AI program is a prominent example, supporting question-and-answer inputs and producing results that mimic human speech. In August 2023, IBM had a total market capitalization of $128 billion, making it a top AI-related stock.
Microsoft
Microsoft (NASDAQ: MSFT) could be a viable option if you're interested in major blue-chip companies with AI investments. With its Azure AI platform, Microsoft offers a comprehensive suite of AI tools, including machine learning and natural language processing. AI integration spans products like Microsoft Office and Azure cloud services, providing easier access for individual users engaged in Microsoft products. In August of 2023, the company had a total market capitalization of $2.35 trillion, making it one of the largest companies currently operating on the American stock market.
Meta Platforms
While Meta Platforms (NASDAQ: META) is best known for its Facebook social media network, the company is also present and active in the AI sphere. Its artificial intelligence laboratory, Meta AI, dates back to 2013, and works alongside institutions like the NYU's Center for Data Science. Meta's current AI research focuses on computer vision and human speech processing. In 2023, it also announced its open-source LLaMA (Large Language Model Meta AI), a 65B parameter large language model similar to ChatGPT software.
5 ETFs with Exposure to OpenAI
While OpenAI's private status means that you won't find its stock included in ETFs, there are options that investors can use to invest in similar AI endeavors. Consider these top tech-oriented ETFs, which offer exposure to generative technology similar to OpenAI.
Roundhill Generative AI & Technology ETF
While OpenAI doesn't currently offer a stock, you can invest in similar generative chat technology by investing in the Roundhill Generative AI & Technology ETF (NYSE: CHAT). CHAT is actively managed, meaning it takes a more dynamic approach to selecting assets for inclusion. While this fund’s holdings are more concentrated than other options (it has just 39 holdings in August of 2023), its lower per-share price can present a unique entry point for less experienced investors.
Global X Robotics & Artificial Intelligence ETF
The Global X Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ) is an exchange-traded fund that invests in companies associated with the development of AI. Some of the fund’s top holdings are in stocks like NVIDIA, Intuitive Surgical (NASDAQ: ISRG) and private AI development companies like ABB Ltd. In August 2023, the fund held $2.23 billion in assets.
ROBO Global Robotics & Automation ETF
The ROBO Global Robotics & Automation ETF (NYSE: ROBO) is a fund designed to provide investors access to companies at the forefront of technology innovation, including AI-driven robotics and automation. No individual item in the fund makes up more than 4% of its holdings, offering a diverse set of offerings for investors. However, with an expense ratio of almost 1%, ROBO can be a more expensive option than other ETFs on our list.
First Trust Nasdaq Artificial Intelligence and Robotics ETF
With international exposure making up almost half of the fund’s assets, the First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ: ROBT) can be a strong option for AI investors looking for international exposure. While 57% of the fund’s assets are U.S.-based, it also includes other top international options from Japan, France and the United Kingdom. Its market capitalization in August 2023 was $381 million.
iShares Exponential Technologies ETF
Investors searching for a tech fund with a lower expense ratio, the iShares Exponential Technologies ETF (NASDAQ: XT) could be an appealing option. With a net expense ratio of 0.46%, costs are lower than other tech-oriented ETFs, meaning you’ll have the opportunity to keep a larger percentage of your dividends. XT’s holdings spread across various tech sectors, including robotics and automation.
Investing in AI
While AI is an exciting sector with boundless potential for investors, it’s important to remember that new technology can create volatile investments. Invest in AI as a small portion of an overall diversified portfolio, and consider opting for an ETF over individual stocks if you’re still new to the market. When you invest in an ETF, you gain exposure to all of the underlying assets listed in the holdings list, offering an effortless layer of diversification.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Founded in 2015, OpenAI is notable for its Generative Pre-trained Transformer (GPT) tech, developed to produce coherent and human-like text from information available on open search engines. Its artificial intelligence laboratory, Meta AI, dates back to 2013, and works alongside institutions like the NYU's Center for Data Science. Some of the fund’s top holdings are in stocks like NVIDIA, Intuitive Surgical (NASDAQ: ISRG) and private AI development companies like ABB Ltd.
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Roundhill Generative AI & Technology ETF While OpenAI doesn't currently offer a stock, you can invest in similar generative chat technology by investing in the Roundhill Generative AI & Technology ETF (NYSE: CHAT). ROBO Global Robotics & Automation ETF The ROBO Global Robotics & Automation ETF (NYSE: ROBO) is a fund designed to provide investors access to companies at the forefront of technology innovation, including AI-driven robotics and automation. iShares Exponential Technologies ETF Investors searching for a tech fund with a lower expense ratio, the iShares Exponential Technologies ETF (NASDAQ: XT) could be an appealing option.
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While you cannot search an OpenAI stock ticker, you can make an AI stock buy and gain exposure to the company by investing in stocks and ETFs associated with OpenAI. 5 ETFs with Exposure to OpenAI While OpenAI's private status means that you won't find its stock included in ETFs, there are options that investors can use to invest in similar AI endeavors. Roundhill Generative AI & Technology ETF While OpenAI doesn't currently offer a stock, you can invest in similar generative chat technology by investing in the Roundhill Generative AI & Technology ETF (NYSE: CHAT).
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While you cannot search an OpenAI stock ticker, you can make an AI stock buy and gain exposure to the company by investing in stocks and ETFs associated with OpenAI. 5 Related OpenAI Stocks to Invest in While you might not currently be able to invest in OpenAI, you can always enter the artificial intelligence market with other publicly traded options. Roundhill Generative AI & Technology ETF While OpenAI doesn't currently offer a stock, you can invest in similar generative chat technology by investing in the Roundhill Generative AI & Technology ETF (NYSE: CHAT).
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14174.0
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2023-08-23 00:00:00 UTC
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ANALYSIS-Arm's China relationship complicates IPO
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AAPL
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https://www.nasdaq.com/articles/analysis-arms-china-relationship-complicates-ipo-0
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nan
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nan
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By Yelin Mo, Max A. Cherney and Stephen Nellis
Aug 22 (Reuters) - The upcoming listing of semiconductor technology firm Arm Holdings Ltd is supposed to be strong medicine for what has been ailing the U.S. IPO market, as well as provide a shot in the arm for Arm owner Softbank Group Corp 9984.T.
There is one complication, however. Almost a quarter of Arm's revenue comes from an entity it does not control but nonetheless relies on to access China's massive smartphone market.
Scattered throughout the hundreds of pages of Arm's prospectus are details of the company's labyrinthine relationship with China, its second-largest market. Sales in China contributed 24.5% of its $2.68 billion revenue in fiscal 2023, according to filings published on Monday ahead of its initial public offering.
Virtually all of that revenue comes from Arm China, an independent entity that has the exclusive rights to distribute Arm's technology in the country. That makes Arm China, not better-known names like Apple AAPL.O or Qualcomm QCOM.O, Arm's largest customer. And this customer has a history of late payments and presents "significant risks" to Arm's business, according to its filing.
Arm's public offering, which could happen as soon as next month, would help revive a U.S. IPO market that so far this year has raised only about one-tenth the amount of capital it did in 2021. Arm was earlier planning to raise between $8 billion and $10 billion from the IPO, but is now expected to raise less capital.
Arm China, in which Arm itself is in effect only a minority shareholder, underwent a nearly two-year boardroom battle between its local chief and shareholders that ended last year. A group of Chinese investors and a private equity firm control a majority stake.
Beyond these internal issues, U.S. sanctions limiting sales to China along with rising competition in the Chinese market cast doubt on Arm China's long-term trajectory.
An Arm spokesperson declined to comment.
WHO'S IN CONTROL?
Arm China has posed ongoing challenges for SoftBank despite its strong early growth. The entity was established in 2018 when SoftBank sold a 51% stake in Arm Ltd’s Chinese subsidiary, Arm Technology (China) Co Ltd, to a group of Chinese investors led by private equity firm Hopu Investments.
Arm China was first overseen by Chief Executive Allen Wu, a longtime Arm executive, but SoftBank ousted him last year after alleging conflicts of interest. Wu denied the allegations and filed several lawsuits against Arm, some of which were resolved in Arm's favor while others are ongoing.
Which shareholders control Arm China remains unclear.
Arm itself holds an effective interest of only 4.8% in Arm China, obtained through a 10% stake in an intermediate entity called Acetone, which owns 48% of the Chinese subsidiary. Hopu Investment indirectly owns 35% of Arm China, and various other Chinese parties control the remaining 17% directly or indirectly, according to the IPO filing.
WHAT ARE ARM CHINA'S MAJOR BUSINESSES?
Arm China was formed by SoftBank and Arm to drive growth in China's massive smartphone market. Originally, it had the right to sell technology from Arm headquarters to customers in China. Under Wu, Arm China also developed its own intellectual property.
This led to two business segments: a distribution business licensing Arm's IP, and a design business selling Arm China's own lower-end IP. Arm's filings did not disclose details on Arm China's business breakdown.
However, analysts believe distribution of Arm's IP generates the majority of revenue. That business faces challenges from U.S. sanctions restricting sales of advanced technology to China, which Arm said had cost it at least $63 million in royalty revenue in its most recent fiscal year.
Stewart Randall, a Shanghai-based chip analyst, said Arm is still the leader in supplying technology to Chinese firms developing processor chips.
"But sanctions have meant it can't be used everywhere (in China). I'm unsure Arm can substantially grow revenue here," he added.
HISTORY OF LATE PAYMENTS
Arm said in its filings that "in the past, we have received late payments from Arm China and have had to expend company resources to obtain payments from Arm China."
Those delays still show up in Arm's finances as a discrepancy between China revenue and accounts receivable - 24% of revenue came from Arm China in the fiscal year ended March 31, but 40% of accounts receivable were attributed to China, meaning Arm has still not been paid for all products sold in China.
Arm appears to be closing some of that gap. In its filing, it said cash from operating activities increased by $281 million in its most recent fiscal year, driven mostly by $713 million in collections from Arm China, though that was partly offset by cash owed to Arm China.
SoftBank-backed chip designer Arm reveals filing for blockbuster U.S. IPO
BREAKINGVIEWS-Arm’s IPO risks shine brighter than its potential
ANALYSIS-Arm's clients turn IPO into tug of war for chip influence
BREAKINGVIEWS-SoftBank Arm deal is expensive gift to Vision Fund
(Reporting by Yelin Mo in Beijing and Max A. Cherney and Stephen Nellis in San Francisco Editing by Matthew Lewis)
((Max.Cherney@thomsonreuters.com; 415-484-6872 @chernandburn on Twitter;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That makes Arm China, not better-known names like Apple AAPL.O or Qualcomm QCOM.O, Arm's largest customer. Arm's public offering, which could happen as soon as next month, would help revive a U.S. IPO market that so far this year has raised only about one-tenth the amount of capital it did in 2021. That business faces challenges from U.S. sanctions restricting sales of advanced technology to China, which Arm said had cost it at least $63 million in royalty revenue in its most recent fiscal year.
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That makes Arm China, not better-known names like Apple AAPL.O or Qualcomm QCOM.O, Arm's largest customer. The entity was established in 2018 when SoftBank sold a 51% stake in Arm Ltd’s Chinese subsidiary, Arm Technology (China) Co Ltd, to a group of Chinese investors led by private equity firm Hopu Investments. This led to two business segments: a distribution business licensing Arm's IP, and a design business selling Arm China's own lower-end IP.
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That makes Arm China, not better-known names like Apple AAPL.O or Qualcomm QCOM.O, Arm's largest customer. Arm China was formed by SoftBank and Arm to drive growth in China's massive smartphone market. Arm said in its filings that "in the past, we have received late payments from Arm China and have had to expend company resources to obtain payments from Arm China."
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That makes Arm China, not better-known names like Apple AAPL.O or Qualcomm QCOM.O, Arm's largest customer. A group of Chinese investors and a private equity firm control a majority stake. That business faces challenges from U.S. sanctions restricting sales of advanced technology to China, which Arm said had cost it at least $63 million in royalty revenue in its most recent fiscal year.
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14175.0
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2023-08-23 00:00:00 UTC
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Should WisdomTree U.S. LargeCap ETF (EPS) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-etf-eps-be-on-your-investing-radar-9
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nan
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nan
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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 WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007.
The fund is sponsored by Wisdomtree. It has amassed assets over $679.34 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
Large cap companies usually 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. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value 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 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.82%.
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 23.10% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 29.24% of total assets under management.
Performance and Risk
EPS seeks to match the performance of the WisdomTree U.S. Earnings 500 Index before fees and expenses. The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
The ETF has added about 12.89% so far this year and was up about 7.04% in the last one year (as of 08/23/2023). In the past 52-week period, it has traded between $38.39 and $48.62.
The ETF has a beta of 1 and standard deviation of 17.33% for the trailing three-year period, making it a medium risk choice in the space. With about 501 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap 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, EPS is a reasonable 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 $49.70 billion in assets, Vanguard Value ETF has $99.76 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.
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WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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 WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. LargeCap 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 5.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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 WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007.
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14176.0
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2023-08-23 00:00:00 UTC
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Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term.
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AAPL
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https://www.nasdaq.com/articles/got-%245000-3-tech-stocks-to-buy-and-hold-for-the-long-term.-0
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nan
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nan
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Tech stocks have been known to produce great returns in a relatively short amount of time. So much so that they've been almost synonymous with growth stocks for quite some time now. Still, investors need to keep a long-term outlook even when investing in tech stocks. Just because they can produce those types of returns doesn't mean you should go into them expecting that.
If you have $5,000 available to invest, here are three good long-term options. One to provide a high dividend yield, one with great growth potential, and one with a good combination of the two.
1. AT&T
To call investors pessimistic toward AT&T (NYSE: T) right now would probably be an understatement. The stock is down over 25% year to date as of Aug. 18, continuing what has been a challenging decade or so for the company.
The pessimism surrounding AT&T, while not unwarranted, may be why now is a great time for long-term investors to step into the picture. Not because the stock price has great growth potential, either. It's all about the dividend. AT&T's current quarterly dividend is $0.2775 per share, with a dividend yield of over 7.9%.
Large debt has called investors to question if AT&T's dividend is sustainable, but the company's free cash flow -- which companies use to pay dividends, pay down debts, buy back stocks, and such -- points to those fears being overblown as of its last quarter.
Data by YCharts
AT&T's dividend should be a margin of safety for investors as they wait (patiently) for the company to reverse course from previous years. To AT&T's credit, it seems to be doing just that. It has had 12 straight quarters of postpaid phone customer growth and 14 straight quarters of adding at least 200,000 AT&T Fiber net adds.
It's been rocky, but AT&T's customer growth should be encouraging for investors. Especially operating in an indispensable industry like telecom. At current yields, a $1,000 investment in AT&T could pay out around $79 annually.
2. Apple
It's virtually impossible to talk about tech stocks to hold on to for the long term and not include the world's most valuable public company, Apple (NASDAQ: AAPL). It's a company that needs no introduction.
Although the stock has dropped over 10% in the past month, it's still up roughly 40% year to date, mirroring the rallies of many big tech stocks this year.
While the iPhone (48% of its revenue) and hardware are Apple's foundation, I think its high growth potential comes from the emergence of its services. Apple's services segment has become increasingly important to its revenue, now accounting for 26% of it.
Aside from its core iCloud services, Apple has been eyeing health and financial services as industries it can break into successfully. And to some extent, it already has when you consider Apple Fitness+, Apple Watch capabilities, Apple Pay, and the Apple Card.
What's encouraging about Apple's growth opportunity is that it can essentially buy its way into those industries if it chooses to go that route. In just March 2022, Apple spent $150 million buying U.K. fintech company Credit Kudos. Its over $62.4 billion in cash on hand is more than enough to go acquisition hunting.
If I had $5,000 to invest in these three stocks, I would allocate $2,000 to Apple to take advantage of its long-term growth opportunities. With fewer question marks around Apple than AT&T, I feel comfortable dedicating more to the company.
3. Cisco Systems
Cisco Sytems (NASDAQ: CSCO) doesn't get as much mainstream love as other big tech companies, but it's been a key part of developing the internet and web infrastructure as we know it today. Cisco's hardware is what has defined the business, creating everything from routers to firewalls to data center products and much more.
More importantly, its products are top-tier in quality, making it the go-to for companies who don't mind paying higher upfront costs to avoid the costlier maintenance costs down the road that can come with lower-quality products.
That pricing power has paid off for Cisco, with its $15.2 billion in revenue for the fiscal fourth quarter (ended July 29) up 16% year over year and 27% in the past three years.
Data by YCharts
Cisco's profits have outpaced its revenue growth, which could be attributed to its slow but steady transition to higher-margin software products and services. Software and software subscription revenue were up 17% and 20% year over year, respectively.
With a quarterly dividend of $0.39 and a yield over 2.8%, Cisco's stock presents an ideal case of stock growth potential and consistent, reliable dividend income. The company started paying a dividend in 2011 and has increased the yearly payout every year since. It's a good position to be in as a shareholder.
Cisco would get the last $2,000 to take advantage of the best of both worlds. At current yields, it would be around $56 in dividends annually, along with a good upside in its stock price.
10 stocks we like better than AT&T
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They just revealed what they believe are the ten best stocks for investors to buy right now... and AT&T wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 14, 2023
Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple and Cisco Systems. 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 virtually impossible to talk about tech stocks to hold on to for the long term and not include the world's most valuable public company, Apple (NASDAQ: AAPL). Data by YCharts AT&T's dividend should be a margin of safety for investors as they wait (patiently) for the company to reverse course from previous years. While the iPhone (48% of its revenue) and hardware are Apple's foundation, I think its high growth potential comes from the emergence of its services.
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Apple It's virtually impossible to talk about tech stocks to hold on to for the long term and not include the world's most valuable public company, Apple (NASDAQ: AAPL). One to provide a high dividend yield, one with great growth potential, and one with a good combination of the two. Large debt has called investors to question if AT&T's dividend is sustainable, but the company's free cash flow -- which companies use to pay dividends, pay down debts, buy back stocks, and such -- points to those fears being overblown as of its last quarter.
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Apple It's virtually impossible to talk about tech stocks to hold on to for the long term and not include the world's most valuable public company, Apple (NASDAQ: AAPL). Large debt has called investors to question if AT&T's dividend is sustainable, but the company's free cash flow -- which companies use to pay dividends, pay down debts, buy back stocks, and such -- points to those fears being overblown as of its last quarter. And to some extent, it already has when you consider Apple Fitness+, Apple Watch capabilities, Apple Pay, and the Apple Card.
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Apple It's virtually impossible to talk about tech stocks to hold on to for the long term and not include the world's most valuable public company, Apple (NASDAQ: AAPL). Large debt has called investors to question if AT&T's dividend is sustainable, but the company's free cash flow -- which companies use to pay dividends, pay down debts, buy back stocks, and such -- points to those fears being overblown as of its last quarter. And to some extent, it already has when you consider Apple Fitness+, Apple Watch capabilities, Apple Pay, and the Apple Card.
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14177.0
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2023-08-23 00:00:00 UTC
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1 Thing Investors Should Know About Apple's Revenue in 2023
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AAPL
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https://www.nasdaq.com/articles/1-thing-investors-should-know-about-apples-revenue-in-2023
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nan
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nan
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Apple (NASDAQ: AAPL) has been a wonderful investment in recent years, rising 226% in the past five years (as of Aug. 21), crushing the Nasdaq Composite index's 72% gain during the same time. That return has benefited Warren Buffett's Berkshire Hathaway, since the conglomerate has a 5.9% stake in the tech business.
Apple's popular product lineup includes the iPhone -- arguably the greatest piece of hardware ever invented -- which still accounted for 49% of company revenue last quarter. But the company is seeing success in other areas that are driving financial results and the stock price. A smaller division might define the business over the next two decades.
Let's take a closer look at the company's budding services segment.
Creating an ecosystem
Over the past 20 or so years, Apple has mainly been known for introducing game-changing hardware products, like the iPod, iPhone, MacBook, iPad, Watch, and AirPods. All have seen tremendous success, as evidenced by Apple becoming the world's most valuable business with the most powerful brand. There are more than 2 billion active Apple devices worldwide, indicative of how ubiquitous the products have become. And these items generated 74% of overall revenue in the most recent quarter (the fiscal third quarter of 2023, which ended July 1).
The remainder of revenue was derived from the services segment, which includes Pay, Card, iCloud, TV+, News, Music, AppleCare, and the App Store. "Our services revenue set an all-time record of $21.2 billion, up 8% year over year," CFO Luca Maestri highlighted on the earnings call. More importantly, it continues to represent a larger chunk of Apple's total sales as the products segment registers slower growth. Sales of hardware were down 4% year over year in Q3.
The way things are shaping up, it wouldn't be surprising to see Apple's revenue mix depend less on its popular hardware products over the next two decades, and lean more toward software offerings. And shareholders should be totally fine with this outcome. In fiscal 2022, services posted a stellar gross margin of 72% versus products' 36%. As more revenue comes from services, it can help boost Apple's profitability metrics.
Services play a critical role for Apple
Services also provide a recurring revenue stream. Apple has found so much success by getting customers to buy its products any time new upgrades are introduced. But with the improvements of newer versions becoming less and less groundbreaking, consumers might be more inclined to delay buying upgrades if they don't need them. That's why offering services that generate recurring revenue is critical for Apple right now.
The other benefit to the company is that Apple is now in control of a budding ecosystem that combines its beautifully designed hardware products with easy-to-use software services. For example, owning an iPhone or MacBook becomes even more valuable with the added services that users can access only by being an Apple customer. This helps to drive greater stickiness from consumers who might now be ingrained in the overall ecosystem.
"This past quarter, we reached an important milestone and passed 1 billion paid subscriptions across the services on our platform, up 150 million during the last 12 months and nearly double the number of paid subscriptions we had only three years ago," Maestri mentioned on the call. That's impressive growth that should encourage investors.
Even Buffett appreciates this favorable situation. In an interview earlier this year, the Oracle of Omaha said that if you offered someone $10,000, but they had to stop using their iPhone and they couldn't buy another one for the rest of their life, that person would almost certainly decline that proposition. That incredible brand loyalty is poised to become even more pronounced as Apple's services increase in importance.
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.
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*Stock Advisor returns as of August 21, 2023
Neil Patel has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has been a wonderful investment in recent years, rising 226% in the past five years (as of Aug. 21), crushing the Nasdaq Composite index's 72% gain during the same time. Creating an ecosystem Over the past 20 or so years, Apple has mainly been known for introducing game-changing hardware products, like the iPod, iPhone, MacBook, iPad, Watch, and AirPods. The way things are shaping up, it wouldn't be surprising to see Apple's revenue mix depend less on its popular hardware products over the next two decades, and lean more toward software offerings.
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Apple (NASDAQ: AAPL) has been a wonderful investment in recent years, rising 226% in the past five years (as of Aug. 21), crushing the Nasdaq Composite index's 72% gain during the same time. Let's take a closer look at the company's budding services segment. That's why offering services that generate recurring revenue is critical for Apple right now.
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Apple (NASDAQ: AAPL) has been a wonderful investment in recent years, rising 226% in the past five years (as of Aug. 21), crushing the Nasdaq Composite index's 72% gain during the same time. Apple's popular product lineup includes the iPhone -- arguably the greatest piece of hardware ever invented -- which still accounted for 49% of company revenue last quarter. Services play a critical role for Apple Services also provide a recurring revenue stream.
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Apple (NASDAQ: AAPL) has been a wonderful investment in recent years, rising 226% in the past five years (as of Aug. 21), crushing the Nasdaq Composite index's 72% gain during the same time. More importantly, it continues to represent a larger chunk of Apple's total sales as the products segment registers slower growth. That's why offering services that generate recurring revenue is critical for Apple right now.
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14178.0
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2023-08-23 00:00:00 UTC
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Trading Alert: Long Call Butterfly Screener Results For August 23rd
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AAPL
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https://www.nasdaq.com/articles/trading-alert%3A-long-call-butterfly-screener-results-for-august-23rd
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nan
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nan
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A long call butterfly is entered when a trader thinks a stock will not rise or fall by much between trade initiation and expiration. When using calls, the trade is constructed by buying an in-the-money call, selling two at-the-money calls and buying an out-of-the-money call. The trade is entered for a net debit meaning the trader pays to enter the trade. This debit is also the maximum possible loss.
The maximum profit is calculated as the difference between the short and long calls less the premium that you paid for the spread.
Let’s take a look at Barchart’s Long Call Calendar Screener for August 23rd:
The screener shows some interesting long call butterfly trades on popular stocks such TSLA, NVDA, PYPL and AAPL.
Let’s take a look at the first line item – a Long Call Butterfly on Tesla.
Using the August 25 expiry, the trade would involve buying the $212.50 strike call, selling two of the $242.50 strike calls and buying one of the $272.50 strike calls. The cost for the trade would be $1,826 which is the most the trade could lose. The maximum potential gain is $1,174. The lower breakeven price is $230.76 and the upper breakeven price is $254.24. The maximum profit is 64.29% with a probability of success of 53.2%.
The Barchart Technical Opinion rating is a 40% Buy with a weakening short term outlook on maintaining the current direction. Long term indicators fully support a continuation of the trend.
PYPL Long Call Butterfly Example
Let’s take a look at another example, this time on PayPal.
Also using the August 25 expiry, the trade would involve buying the $58 strike call, selling two of the $61 strike calls and buying one of the $64 strike calls. The cost for the trade would be $163 which is the most the trade could lose. The maximum potential gain is $137. The lower breakeven price is $59.63 and the upper breakeven price is $62.37. The maximum profit is 84.05% with a probability of success of 49.2%%.
The Barchart Technical Opinion rating is a 100% Sell with an Average short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
These two trades were very short-term, so it might be worth adjusting the days to expiration range to 15 to 60. That produces the following results:
Mitigating Risk
Thankfully, Long Call Butterfly Spreads are risk defined trades, so they have some built in risk management. Some trades might like to exit the trade is the upper or lower breakeven price is breached.
Position sizing is important so that a 100% loss does not cause more than a 1-2% loss in total portfolio value.
Long Call Butterfly’s can also contain early assignment risk, so be mindful of that if the short calls are in-the-money and it’s getting close to expiry.
Please remember that options are risky, and investors can lose 100% of their investment.
This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
Kenvue Joins S&P 500 on Friday: Time to Buy? Stocks Fade on Weakness in Technology and Bank Shares A Luxury Goods Stock to Avoid During the "Richcession" Is Energy Transfer Stock a Buy Now for its 9.5% Dividend Yield?
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let’s take a look at Barchart’s Long Call Calendar Screener for August 23rd: The screener shows some interesting long call butterfly trades on popular stocks such TSLA, NVDA, PYPL and AAPL. A long call butterfly is entered when a trader thinks a stock will not rise or fall by much between trade initiation and expiration. The Barchart Technical Opinion rating is a 40% Buy with a weakening short term outlook on maintaining the current direction.
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Let’s take a look at Barchart’s Long Call Calendar Screener for August 23rd: The screener shows some interesting long call butterfly trades on popular stocks such TSLA, NVDA, PYPL and AAPL. Using the August 25 expiry, the trade would involve buying the $212.50 strike call, selling two of the $242.50 strike calls and buying one of the $272.50 strike calls. The Barchart Technical Opinion rating is a 40% Buy with a weakening short term outlook on maintaining the current direction.
|
Let’s take a look at Barchart’s Long Call Calendar Screener for August 23rd: The screener shows some interesting long call butterfly trades on popular stocks such TSLA, NVDA, PYPL and AAPL. When using calls, the trade is constructed by buying an in-the-money call, selling two at-the-money calls and buying an out-of-the-money call. Using the August 25 expiry, the trade would involve buying the $212.50 strike call, selling two of the $242.50 strike calls and buying one of the $272.50 strike calls.
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Let’s take a look at Barchart’s Long Call Calendar Screener for August 23rd: The screener shows some interesting long call butterfly trades on popular stocks such TSLA, NVDA, PYPL and AAPL. A long call butterfly is entered when a trader thinks a stock will not rise or fall by much between trade initiation and expiration. This debit is also the maximum possible loss.
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14179.0
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2023-08-23 00:00:00 UTC
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Nvidia shares up on hopes of strong results powering another AI rally
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AAPL
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https://www.nasdaq.com/articles/nvidia-shares-up-on-hopes-of-strong-results-powering-another-ai-rally
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nan
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nan
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Aug 23 (Reuters) - Nvidia shares NVDA.O rose on Wednesday before the bell on growing expectations that the chip designer will deliver another strong outlook and boost markets as it reaps the benefits of early investments in artificial intelligence.
Shares of the most valuable chip company had briefly scaled a record high in the previous session, but ended 2.8% lower as overall markets slipped.
As investors up their bets on the company that virtually makes all chips used in generative AI such as ChatGPT, its stock has surged 13% in the past week and tripled in value so far this year.
"A lot is riding on these numbers, with the shares surging to fresh record highs ahead of their release," said AJ Bell investment director Russ Mould.
"Given much of the gains made by equities in 2023 have been centered on Nvidia and the whole AI story, they are likely to have a significant impact on the wider market too."
Nvidia's stellar outlook in the previous quarter lifted the chip firm to a $1 trillion market value in May and set off a rally in the S&P 500 technology sector .SPLRCT, which surged 8% in the five sessions after its results.
Options data showed the stock could swing nearly 11% by Friday, larger than the 8.6% average move in either direction seen a day after Nvidia's results over the last eight quarters. It will still be below the 24.4% jump after the last earnings report.
Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's .SPX 14.3% rise this year.
Investors expect upbeat results from Nvidia, whose shares are the top performer on S&P 500 this year, to revive a stocks rally that has struggled in recent weeks.
The stock's surge has pushed its valuation multiple to nearly 43 times the consensus earnings for the next 12 months, just below its three-year average of 45, according to Refinitiv data.
Wall Street expects the chip designer to report 112.6% jump in third-quarter revenue to $12.61 billion. Investors will be looking at sales at Nvidia's data center unit, home to its prized H100 chip used in AI.
"Anything less than absolutely fantastic could trigger a sharp downside correction in Nvidia's stock price," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Nvidia's shares outperform chip peers https://tmsnrt.rs/3qKTV0I
Wall Street expects AI to propel Nvidia's revenue https://tmsnrt.rs/44mWmo5
(Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's .SPX 14.3% rise this year. Aug 23 (Reuters) - Nvidia shares NVDA.O rose on Wednesday before the bell on growing expectations that the chip designer will deliver another strong outlook and boost markets as it reaps the benefits of early investments in artificial intelligence. "A lot is riding on these numbers, with the shares surging to fresh record highs ahead of their release," said AJ Bell investment director Russ Mould.
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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's .SPX 14.3% rise this year. Investors expect upbeat results from Nvidia, whose shares are the top performer on S&P 500 this year, to revive a stocks rally that has struggled in recent weeks. Wall Street expects the chip designer to report 112.6% jump in third-quarter revenue to $12.61 billion.
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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's .SPX 14.3% rise this year. Aug 23 (Reuters) - Nvidia shares NVDA.O rose on Wednesday before the bell on growing expectations that the chip designer will deliver another strong outlook and boost markets as it reaps the benefits of early investments in artificial intelligence. Investors expect upbeat results from Nvidia, whose shares are the top performer on S&P 500 this year, to revive a stocks rally that has struggled in recent weeks.
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Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's .SPX 14.3% rise this year. Nvidia's stellar outlook in the previous quarter lifted the chip firm to a $1 trillion market value in May and set off a rally in the S&P 500 technology sector .SPLRCT, which surged 8% in the five sessions after its results. Wall Street expects the chip designer to report 112.6% jump in third-quarter revenue to $12.61 billion.
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14180.0
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2023-08-23 00:00:00 UTC
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Is iShares ESG Aware MSCI USA ETF (ESGU) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-esg-aware-msci-usa-etf-esgu-a-strong-etf-right-now-8
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nan
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nan
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Making its debut on 12/01/2016, smart beta exchange traded fund iShares ESG Aware MSCI USA ETF (ESGU) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Blackrock, ESGU has amassed assets over $12.54 billion, making it one of the largest ETFs in the Style Box - All Cap Growth. ESGU, before fees and expenses, seeks to match the performance of the MSCI USA ESG Focus Index.
The MSCI USA Extended ESG Focus Index comprises of U.S. companies that have positive environmental, social and governance characteristics while exhibiting risk and return characteristics similar to those of the parent index.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.15% for this ETF, which makes it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.57%.
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 ESGU, it has heaviest allocation in the Information Technology sector --about 29.10% of the portfolio --while Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.49% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Its top 10 holdings account for approximately 27.86% of ESGU's total assets under management.
Performance and Risk
The ETF has added roughly 14.59% so far this year and was up about 6.15% in the last one year (as of 08/23/2023). In the past 52-week period, it has traded between $79.22 and $100.86.
The ETF has a beta of 1.02 and standard deviation of 18.60% for the trailing three-year period. With about 304 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares ESG Aware MSCI USA ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index. Vanguard ESG U.S. Stock ETF has $6.62 billion in assets, iShares ESG Aware MSCI EAFE ETF has $7.11 billion. ESGV has an expense ratio of 0.09% and ESGD charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.49% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 12/01/2016, smart beta exchange traded fund iShares ESG Aware MSCI USA ETF (ESGU) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.49% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Making its debut on 12/01/2016, smart beta exchange traded fund iShares ESG Aware MSCI USA ETF (ESGU) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.49% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Making its debut on 12/01/2016, smart beta exchange traded fund iShares ESG Aware MSCI USA ETF (ESGU) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.49% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Making its debut on 12/01/2016, smart beta exchange traded fund iShares ESG Aware MSCI USA ETF (ESGU) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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14181.0
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2023-08-23 00:00:00 UTC
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2 Tech 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-tech-stocks-you-can-buy-and-hold-for-the-next-decade-10
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nan
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nan
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The tech industry is booming, with advances in segments such as artificial intelligence (AI) and virtual/augmented reality (VR/AR) creating bullish investors. As a result, the Nasdaq-100 Technology Sector index has climbed about 34% since Jan. 1 despite suffering a sell-off in 2022.
Economic challenges caused a pullback in consumer spending on tech last year. However, the market's swift recovery in 2023 has proved its resilience. The innovative nature of the sector keeps tech companies moving forward and often pays off in the form of stock growth. Therefore, it's not a bad idea to dedicate a large part of your portfolio to the high-growth industry.
Here are two tech stocks you can buy and hold for the next decade.
1. Apple: A reputation for reliable long-term growth
Since 2018, Apple (NASDAQ: AAPL) shares have increased by 225%. The rise is more than any of the top five biggest tech companies, including Microsoft, Alphabet, and Amazon.
Apple's success is thanks to its leading market shares across most of its product categories, including smartphones, tablets, smartwatches, and headphones. The company strategically created an interconnected ecosystem for its devices, promoting ease of use and making consumers less likely to use competing products. Apple's dominance in tech has helped its annual revenue rise 48% over the last five years, with operating income up 68%.
The tech giant's stock has fallen 10% since the start of August after it posted weak third-quarter of 2023 earnings. Apple reported sales declines in multiple product segments as macroeconomic headwinds curbed consumer spending. However, the company demonstrated its resilience by continuing to outperform competitors like Samsung and Lenovo in both the smartphone and PC markets despite challenging conditions.
Based upon its solid growth history, Apple's expanding ventures in AI and VR/AR bode well for its future. Both industries are projected to develop rapidly in the coming years.
Meanwhile, Apple's brand loyalty has the power to attract millions of consumers to its offerings and potentially leapfrog the competition. The stock is an excellent option for those looking for an investment to hold for the next 10 years and beyond.
2. Advanced Micro Devices: Profiting from multiple areas of tech
Technological advances over the last year have highlighted the potential of investing in chip stocks, with demand rising across the industry. Companies like Advanced Micro Devices (NASDAQ: AMD) are well-positioned to profit significantly as countless tech companies increasingly require high-powered hardware to move their businesses forward.
AMD has already begun cashing in on rising demand, forming partnerships with many of the biggest names in the industry. The company's chips power game consoles such as Sony's PlayStation 5 and Microsoft's Xbox Series X|S, cloud platforms Azure and Google Cloud, and millions of PCs worldwide.
AMD's custom chip business saw its gaming revenue rise 21% year over year in fiscal 2022 and data center revenue climb 64%.
Moreover, AMD is investing heavily in developing chips suitable for AI workloads. According to TrendForce, OpenAI's ChatGPT utilized 20,000 graphics processing units (GPUs) in 2020. That figure is projected to hit 30,000 as the platform expands for commercial use. Meanwhile, a current boom in the market has led to the launch of countless AI services, which are sending chip demand soaring.
If AMD's hardware can match the power of industry leader Nvidia at competitive pricing, the company's stock could skyrocket over the next decade.
AMD shares have risen 442% in the last five years as the company significantly expanded its position in tech. In the same period, its annual revenue has soared 264% and operating income 180%. With the power of AI and other tech sectors, there's no telling how far its shares could soar over the next decade. And with that, AMD is a no-brainer stock to buy now and hold indefinitely.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, 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: A reputation for reliable long-term growth Since 2018, Apple (NASDAQ: AAPL) shares have increased by 225%. The tech industry is booming, with advances in segments such as artificial intelligence (AI) and virtual/augmented reality (VR/AR) creating bullish investors. However, the company demonstrated its resilience by continuing to outperform competitors like Samsung and Lenovo in both the smartphone and PC markets despite challenging conditions.
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Apple: A reputation for reliable long-term growth Since 2018, Apple (NASDAQ: AAPL) shares have increased by 225%. Advanced Micro Devices: Profiting from multiple areas of tech Technological advances over the last year have highlighted the potential of investing in chip stocks, with demand rising across the industry. Companies like Advanced Micro Devices (NASDAQ: AMD) are well-positioned to profit significantly as countless tech companies increasingly require high-powered hardware to move their businesses forward.
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Apple: A reputation for reliable long-term growth Since 2018, Apple (NASDAQ: AAPL) shares have increased by 225%. Advanced Micro Devices: Profiting from multiple areas of tech Technological advances over the last year have highlighted the potential of investing in chip stocks, with demand rising across the industry. Companies like Advanced Micro Devices (NASDAQ: AMD) are well-positioned to profit significantly as countless tech companies increasingly require high-powered hardware to move their businesses forward.
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Apple: A reputation for reliable long-term growth Since 2018, Apple (NASDAQ: AAPL) shares have increased by 225%. Advanced Micro Devices: Profiting from multiple areas of tech Technological advances over the last year have highlighted the potential of investing in chip stocks, with demand rising across the industry. With the power of AI and other tech sectors, there's no telling how far its shares could soar over the next decade.
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14182.0
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2023-08-23 00:00:00 UTC
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Is Vanguard Dividend Appreciation ETF (VIG) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-vanguard-dividend-appreciation-etf-vig-a-strong-etf-right-now-7
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nan
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nan
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The Vanguard Dividend Appreciation ETF (VIG) was launched on 04/21/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Vanguard. VIG has been able to amass assets over $67.84 billion, making it one of the largest ETFs in the Style Box - Large Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the NASDAQ US Dividend Achievers Select Index.
The S&P U.S. Dividend Growers Index consists of common stocks of companies that have a record of increasing dividends over time.
Cost & Other Expenses
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 VIG are 0.06%, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.94%.
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.
This ETF has heaviest allocation in the Information Technology sector - about 22% of the portfolio. Financials and Healthcare round out the top three.
Taking into account individual holdings, Microsoft Corp. (MSFT) accounts for about 5.15% of the fund's total assets, followed by Apple Inc. (AAPL) and Unitedhealth Group Inc. (UNH).
Performance and Risk
The ETF has gained about 6.36% so far this year and it's up approximately 5.33% in the last one year (as of 08/23/2023). In the past 52-week period, it has traded between $135.16 and $166.95.
The ETF has a beta of 0.85 and standard deviation of 15.63% for the trailing three-year period, making it a medium risk choice in the space. With about 314 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Dividend Appreciation ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
IShares MSCI EAFE Growth ETF (EFG) tracks MSCI EAFE Growth Index and the iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index. IShares MSCI EAFE Growth ETF has $12.08 billion in assets, iShares Core Dividend Growth ETF has $23.67 billion. EFG has an expense ratio of 0.36% and DGRO charges 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
iShares MSCI EAFE Growth ETF (EFG): 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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Taking into account individual holdings, Microsoft Corp. (MSFT) accounts for about 5.15% of the fund's total assets, followed by Apple Inc. (AAPL) and Unitedhealth Group Inc. (UNH). Click to get this free report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report iShares Core Dividend Growth ETF (DGRO): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. The Vanguard Dividend Appreciation ETF (VIG) was launched on 04/21/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report iShares Core Dividend Growth ETF (DGRO): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Microsoft Corp. (MSFT) accounts for about 5.15% of the fund's total assets, followed by Apple Inc. (AAPL) and Unitedhealth Group Inc. (UNH). IShares MSCI EAFE Growth ETF (EFG) tracks MSCI EAFE Growth Index and the iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index.
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Click to get this free report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report iShares Core Dividend Growth ETF (DGRO): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Microsoft Corp. (MSFT) accounts for about 5.15% of the fund's total assets, followed by Apple Inc. (AAPL) and Unitedhealth Group Inc. (UNH). IShares MSCI EAFE Growth ETF (EFG) tracks MSCI EAFE Growth Index and the iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index.
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Click to get this free report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report iShares Core Dividend Growth ETF (DGRO): ETF Research Reports iShares MSCI EAFE Growth ETF (EFG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Microsoft Corp. (MSFT) accounts for about 5.15% of the fund's total assets, followed by Apple Inc. (AAPL) and Unitedhealth Group Inc. (UNH). The Vanguard Dividend Appreciation ETF (VIG) was launched on 04/21/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Blend category of the market.
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14183.0
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2023-08-23 00:00:00 UTC
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US STOCKS-Futures gain with all eyes on high-stakes Nvidia results
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-gain-with-all-eyes-on-high-stakes-nvidia-results
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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 0.34%, S&P 0.48%, Nasdaq 0.63%
Aug 23 (Reuters) - U.S. stock index futures climbed on Wednesday, with the spotlight firmly on Nvidia NVDA.O quarterly results due later in the day that could potentially reignite an artificial intelligence-fuelled rally in megacap growth stocks this year.
A blowout forecast from chip designer Nvidia last quarter helped the stock more than triple in value this year and powered large gains in other megacap shares in the 'Magnificent Seven' group, propelling the S&P 500 .SPX 14% higher.
Rising bets that Nvidia's revenue target will once again surpass Wall Street estimates pushed the chipmaker's stock to a record high on Tuesday, but analysts also fear that a failure to match investor expectations could trigger a wider selloff in stock markets.
"Nvidia's valuation depends on confidence in the AI revolution and demand for its hi-tech chips and while it's expected that this won't have waned substantially, its stratospheric rise this year could make the stock vulnerable to any small set back," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"If the voracious demand for artificial intelligence technology shows little sign of abating, there is likely to be renewed enthusiasm for tech companies with their fingers in all sorts of AI pies."
Traders in the U.S. equity options market are bracing for a larger-than-usual swing in Nvidia shares following the chipmaker's earnings, which are due after markets close on Wednesday.
Nvidia shares climbed 1.6% in premarket trading, while shares of other major technology and growth companies such as Apple AAPL.O, Amazon.com AMZN.O and Tesla TSLA.O rose between 0.5% and 1% before the bell.
Megacap growth stocks had stumbled in the first few weeks of August after signs of a still strong U.S. economy spurred worries that the Federal Reserve could keep interest rates elevated for longer, sending government bond yields surging.
Supporting equities on Wednesday, the yield on the 10-year U.S. Treasury note US10YT=RR slipped from near 16-year highs hit in the previous session amid lingering concerns over higher-for-longer rates.
S&P Global's flash U.S. Composite PMI index for August, due at 9:45 am ET, could provide additional clues on the strength of business activity and the path for interest rates ahead of a keenly awaited speech by Fed Chair Jerome Powell on Friday.
Traders' bet the Fed would keep rates unchanged in September stands at 88.5%, according to CME Group's FedWatch tool, though they have scaled back expectations of rate cuts from the central bank.
At 5:34 a.m. ET, Dow e-minis 1YMcv1 were up 117 points, or 0.34%, S&P 500 e-minis EScv1 were up 21 points, or 0.48%, and Nasdaq 100 e-minis NQcv1 were up 94.25 points, or 0.63%.
Among other stocks, shares of WeWork WE.N slipped 4.5% premarket after the New York Stock Exchange suspended trading in the workspace provider's warrants.
(Reporting by Amruta Khandekar; Editing by Shinjini Ganguli)
((Amruta.Khandekar@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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Nvidia shares climbed 1.6% in premarket trading, while shares of other major technology and growth companies such as Apple AAPL.O, Amazon.com AMZN.O and Tesla TSLA.O rose between 0.5% and 1% before the bell. "Nvidia's valuation depends on confidence in the AI revolution and demand for its hi-tech chips and while it's expected that this won't have waned substantially, its stratospheric rise this year could make the stock vulnerable to any small set back," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Megacap growth stocks had stumbled in the first few weeks of August after signs of a still strong U.S. economy spurred worries that the Federal Reserve could keep interest rates elevated for longer, sending government bond yields surging.
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Nvidia shares climbed 1.6% in premarket trading, while shares of other major technology and growth companies such as Apple AAPL.O, Amazon.com AMZN.O and Tesla TSLA.O rose between 0.5% and 1% before the bell. Futures up: Dow 0.34%, S&P 0.48%, Nasdaq 0.63% Aug 23 (Reuters) - U.S. stock index futures climbed on Wednesday, with the spotlight firmly on Nvidia NVDA.O quarterly results due later in the day that could potentially reignite an artificial intelligence-fuelled rally in megacap growth stocks this year. ET, Dow e-minis 1YMcv1 were up 117 points, or 0.34%, S&P 500 e-minis EScv1 were up 21 points, or 0.48%, and Nasdaq 100 e-minis NQcv1 were up 94.25 points, or 0.63%.
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Nvidia shares climbed 1.6% in premarket trading, while shares of other major technology and growth companies such as Apple AAPL.O, Amazon.com AMZN.O and Tesla TSLA.O rose between 0.5% and 1% before the bell. Futures up: Dow 0.34%, S&P 0.48%, Nasdaq 0.63% Aug 23 (Reuters) - U.S. stock index futures climbed on Wednesday, with the spotlight firmly on Nvidia NVDA.O quarterly results due later in the day that could potentially reignite an artificial intelligence-fuelled rally in megacap growth stocks this year. Rising bets that Nvidia's revenue target will once again surpass Wall Street estimates pushed the chipmaker's stock to a record high on Tuesday, but analysts also fear that a failure to match investor expectations could trigger a wider selloff in stock markets.
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Nvidia shares climbed 1.6% in premarket trading, while shares of other major technology and growth companies such as Apple AAPL.O, Amazon.com AMZN.O and Tesla TSLA.O rose between 0.5% and 1% before the bell. 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 0.34%, S&P 0.48%, Nasdaq 0.63% Aug 23 (Reuters) - U.S. stock index futures climbed on Wednesday, with the spotlight firmly on Nvidia NVDA.O quarterly results due later in the day that could potentially reignite an artificial intelligence-fuelled rally in megacap growth stocks this year.
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14184.0
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2023-08-23 00:00:00 UTC
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Can Nvidia Do It Again?
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AAPL
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https://www.nasdaq.com/articles/can-nvidia-do-it-again
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nan
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nan
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I
t is probably not an exaggeration to say that when Nvidia (NVDA) released their Q1 results three months ago, it was one of the most sensational earnings reports ever. We all suspected that artificial intelligence (AI) was going to be a thing at some point, but Nvidia’s Q1 performance showed us that a) that point arrived, b) the leading video chip maker was reaping the most rewards of any company involved, and c) they expected to continue to do so, as evidenced by a massive increase in their forward guidance.
Inevitably, as a result of that, both the stock and the analysts’ forecasts for future earnings soared. So, off of a much higher price and with much higher expectations, can Nvidia do it again when they release their Q2 earnings after today’s market close? Can they come up with another big beat or any other news that will drive the stock even higher?
Well, if the history of a couple of high-profile tech companies to which Nvidia is frequently compared is anything to go by, the answer to that question is yes.
Both Apple (AAPL) and Tesla (TSLA) confounded their critics for a while, matching or beating even elevated expectations as they cemented their places as the dominant suppliers in markets that fit the zeitgeist of their times. It is hard to remember sometimes, but cell phones that functioned as mobile personal computers were a futuristic idea around fifteen years ago, and electric cars were a niche with an uncertain future as recently as five years ago. Both markets, as we now know, became massive, and the companies that had an early advantage in them grew exponentially as a result. That is already happening in AI. The reality is starting to make even the massive hype around the subject look a bit understated.
Nvidia’s stock, however, is neither Apple nor Tesla. Rather, it is somewhere between the two. Tesla’s stock surged for a while on possible future results, with massive P/Es that reflected great belief in the company, whereas Apple did not have legions of adoring fans when I started to write about them here a decade or so ago. In fact, I remember back then pointing out that a P/E of around seven, well below the market average at the time, was an opportunity to buy stock in what was already by then looking like one of history’s most successful companies at a big discount to the market. Tesla was a pure growth story, Apple was about value. At current levels, Nvidia is not as cheap as Apple was at that point, but it does have actual sales that are already showing their dominance in a growing market, much more so than Tesla had a few years ago.
So, in a way, Nvidia has the best of both worlds. There is belief in the company, but they are already showing that with supply chain issues largely behind them, they can profit from the opportunity that history has given them.
What both Apple and Tesla showed is that in any tech-driven business, the beneficial impact of early success is often greater than a lot of people think it could possibly be. That success creates a strong cash position that can fund research and development of rapidly advancing technology, which gives those first to market a massive advantage over would be competitors, even big and powerful ones. A few years ago, nobody thought Tesla could beat the likes of GM (GM) and Ford (F) when it came to developing EVs, should those giants put their mind to it. In the same way, Nvidia’s critics are now saying “Ah, just wait until Microsoft (MSFT) or Google (GOOG) or whoever gets involved!”.
What they are missing, though, is that those companies are already involved, but so far have remained buyers of Nvidia’s products rather than their competitors. As long as that situation remains, and there is no sign of it changing any time soon, Nvidia can continue to do what both Apple and Tesla did before them and beat even elevated forecasts for revenue and profit, raising guidance as they go. So, on that basis, yes, Nvidia can do it again when they report after the close today, in fact they not only can, they most likely will.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Both Apple (AAPL) and Tesla (TSLA) confounded their critics for a while, matching or beating even elevated expectations as they cemented their places as the dominant suppliers in markets that fit the zeitgeist of their times. Tesla’s stock surged for a while on possible future results, with massive P/Es that reflected great belief in the company, whereas Apple did not have legions of adoring fans when I started to write about them here a decade or so ago. That success creates a strong cash position that can fund research and development of rapidly advancing technology, which gives those first to market a massive advantage over would be competitors, even big and powerful ones.
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Both Apple (AAPL) and Tesla (TSLA) confounded their critics for a while, matching or beating even elevated expectations as they cemented their places as the dominant suppliers in markets that fit the zeitgeist of their times. So, off of a much higher price and with much higher expectations, can Nvidia do it again when they release their Q2 earnings after today’s market close? Tesla’s stock surged for a while on possible future results, with massive P/Es that reflected great belief in the company, whereas Apple did not have legions of adoring fans when I started to write about them here a decade or so ago.
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Both Apple (AAPL) and Tesla (TSLA) confounded their critics for a while, matching or beating even elevated expectations as they cemented their places as the dominant suppliers in markets that fit the zeitgeist of their times. We all suspected that artificial intelligence (AI) was going to be a thing at some point, but Nvidia’s Q1 performance showed us that a) that point arrived, b) the leading video chip maker was reaping the most rewards of any company involved, and c) they expected to continue to do so, as evidenced by a massive increase in their forward guidance. Tesla’s stock surged for a while on possible future results, with massive P/Es that reflected great belief in the company, whereas Apple did not have legions of adoring fans when I started to write about them here a decade or so ago.
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Both Apple (AAPL) and Tesla (TSLA) confounded their critics for a while, matching or beating even elevated expectations as they cemented their places as the dominant suppliers in markets that fit the zeitgeist of their times. Nvidia’s stock, however, is neither Apple nor Tesla. Tesla’s stock surged for a while on possible future results, with massive P/Es that reflected great belief in the company, whereas Apple did not have legions of adoring fans when I started to write about them here a decade or so ago.
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14185.0
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2023-08-23 00:00:00 UTC
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ANALYSIS-Investors look to AI-darling Nvidia's earnings as US stocks rally wobbles
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AAPL
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https://www.nasdaq.com/articles/analysis-investors-look-to-ai-darling-nvidias-earnings-as-us-stocks-rally-wobbles
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nan
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nan
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By Lewis Krauskopf
NEW YORK, Aug 23 (Reuters) - Bullish investors are hoping Wednesday's earnings report from chip heavyweight Nvidia NVDA.O can rejuvenate a U.S. stocks rally that has stumbled in recent weeks.
Nvidia shares have tripled in 2023, underscoring how a rebound in megacap stocks and excitement over the business potential of artificial intelligence have helped propel the S&P 500 .SPX to a 14% gain this year.
The chipmaker’s year-to-date increase has led gains among the so-called Magnificent Seven group of megacap stocks, which also include Apple AAPL.O and Microsoft MSFT.O. The group's collective rise was responsible for roughly two-thirds of the S&P 500’s increase through July.
Yet the broader equity rally has recently faltered, with the benchmark index off more than 4% in August as soaring Treasury yields threaten to dull the allure of stocks. The market's turbulence is intensifying focus on Nvidia's fiscal second quarter report, due after market close on Wednesday.
Nvidia is at the center of "two big themes the market is concerned about right now: Can Big Tech continue to lead the market, and is this AI story for real?" said Anthony Saglimbene, chief market strategist at Ameriprise Financial, which is slightly overweight the tech sector.
"A little piece of good news in a stock that has been an important driver to the market could change the sentiment," he said.
Nvidia stunned the market with its prior report in May, when a stellar forecast sent its stock soaring 24% in one day. Following that report, the S&P 500 technology sector .SPLRCT rallied 8% over the next five days.
Driving the company’s gains has been its position as a beneficiary of the rise of ChatGPT and other generative AI apps, virtually all of which are powered by its graphics processors.
In one sign of AI's overall market boost, a Societe Generale analysis zeroing in on 20 stocks widely owned by AI-related exchange-traded funds found that removing those stocks from the S&P 500 would cut index performance by roughly 13 percentage points, leaving it with only a marginal gain for the year.
Some investors may already be placing bets on a repeat strong performance: Nvidia shares have jumped nearly 12% since the start of last week, setting an all-time high on Tuesday before retreating. Such buildup in the shares, however, could make it more difficult for the company to surpass investor expectations with its Wednesday report.
"My guess is the numbers are going to be just fine, but is it going to be enough?" said Chuck Carlson, chief executive officer at Horizon Investment Services. "If it's not, you could see a continuation of the sell-off that we have had here in the last month or so."
Options in Nvidia imply a for the shares, in either direction, by Friday, according to Trade Alert data. That compares with the 8.6% average move logged by the stock on the day after the chipmaker has reported results over the last eight quarters.
Nvidia shares amount to the fifth-biggest weight in the S&P 500 and Nasdaq 100, at weights of 3.2% and 4.3%, respectively - meaning that moves in its stock price have an outsized sway on major indexes.
Nvidia’s earnings report is not the only closely watched market event in the coming days. Investors will also be focused on a speech from Federal Reserve Chairman Jerome Powell at the central bank’s annual conference in Jackson Hole, Wyoming, later this week.
Signs that the central bank intends to hold rates around current levels for longer than investors had anticipated could further weigh on stocks.
Still, few can deny the sway that Nvidia and megacap stocks have held over broader markets this year.
Nvidia was one of 11 stocks named by Goldman Sachs as near-term beneficiaries of the "AI revolution." In a Monday note, Goldman analysts said an equal-weighted basket of those 11 stocks had returned 69% so far in 2023, outpacing a 7% gain for the overall equal-weight S&P 500.
"Some of these stocks have already seen 2024 EPS estimates rise on the back of AI adoption, with NVDA representing a notable example," the Goldman analysts wrote.
Nvidia shares soar in 2023 https://tmsnrt.rs/3Pa6Xi0
Top stock weights in the S&P 500 https://tmsnrt.rs/45FSKyq
PREVIEW-Nvidia earnings will be major test for AI demand, market rally
Nvidia drops from record high, tracking market fall; AI bets support outlook
(Reporting by Lewis Krauskopf in New York Aditional reporting by Saqib Iqbal Ahmed in New York Editing by Ira Iosebashvili and Matthew Lewis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The chipmaker’s year-to-date increase has led gains among the so-called Magnificent Seven group of megacap stocks, which also include Apple AAPL.O and Microsoft MSFT.O. By Lewis Krauskopf NEW YORK, Aug 23 (Reuters) - Bullish investors are hoping Wednesday's earnings report from chip heavyweight Nvidia NVDA.O can rejuvenate a U.S. stocks rally that has stumbled in recent weeks. Some investors may already be placing bets on a repeat strong performance: Nvidia shares have jumped nearly 12% since the start of last week, setting an all-time high on Tuesday before retreating.
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The chipmaker’s year-to-date increase has led gains among the so-called Magnificent Seven group of megacap stocks, which also include Apple AAPL.O and Microsoft MSFT.O. By Lewis Krauskopf NEW YORK, Aug 23 (Reuters) - Bullish investors are hoping Wednesday's earnings report from chip heavyweight Nvidia NVDA.O can rejuvenate a U.S. stocks rally that has stumbled in recent weeks. Still, few can deny the sway that Nvidia and megacap stocks have held over broader markets this year.
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The chipmaker’s year-to-date increase has led gains among the so-called Magnificent Seven group of megacap stocks, which also include Apple AAPL.O and Microsoft MSFT.O. By Lewis Krauskopf NEW YORK, Aug 23 (Reuters) - Bullish investors are hoping Wednesday's earnings report from chip heavyweight Nvidia NVDA.O can rejuvenate a U.S. stocks rally that has stumbled in recent weeks. In one sign of AI's overall market boost, a Societe Generale analysis zeroing in on 20 stocks widely owned by AI-related exchange-traded funds found that removing those stocks from the S&P 500 would cut index performance by roughly 13 percentage points, leaving it with only a marginal gain for the year.
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The chipmaker’s year-to-date increase has led gains among the so-called Magnificent Seven group of megacap stocks, which also include Apple AAPL.O and Microsoft MSFT.O. Following that report, the S&P 500 technology sector .SPLRCT rallied 8% over the next five days. Nvidia’s earnings report is not the only closely watched market event in the coming days.
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14186.0
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2023-08-22 00:00:00 UTC
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Apple’s Buyback Blunder: 3 Reasons It’s Not a Win for AAPL Shareholders
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AAPL
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https://www.nasdaq.com/articles/apples-buyback-blunder%3A-3-reasons-its-not-a-win-for-aapl-shareholders
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If there’s one thing that feels like Christmas to Warren Buffett is when Apple (NASDAQ:AAPL) repurchases AAPL stock. After all, the more Apple stock the iPhone maker buys back, the more significant percentage of Apple Berkshire Hathaway (NYSE:BRK.B) owns.
In Berkshire’s 2021 shareholder letter, Buffett mentions that his company spent no money to increase its ownership stake to 5.5% from 5.39% in 2020. Share repurchases by Apple in 2021 added $1.1 billion in earnings controlled by Berkshire’s investment.
“It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our ‘share’ of Apple’s earnings amounted to a staggering $5.6 billion,” Berkshire’s 2021 shareholder letter stated.
“Much of what the company retained was used to repurchase Apple shares, an act we applaud.”
Warren Buffett might like the Apple buybacks, but the average investor has three reasons to consider why it’s not a win for regular AAPL stock investors.
It Significantly Overpaid for AAPL Stock
Source: Shutterstock
Apple has spent more than $500 billion in share repurchases since 2012. The company had 929.4 million shares as of Oct. 14, 2011. On Oct. 14, 2023, it had 15.91 billion shares. Apple’s stock has split on two occasions over this period — a 7-for-1 split on June 9, 2014, and a 4-for-1 split on Aug. 28, 2020 — which increased the share count. Considering the two splits, it reduced its share count by 39% [929.4M x 7 x 4 minus 15.91B divided by 26.02B].
That seems like a great deal for Apple shareholders.
Have you ever considered what it could have paid for these shares?
In fiscal 2022, the company repurchased $90.2 billion of its stock at an average price of $158.52. It is the most repurchased in a single year in the company’s history. Based on its current share price, it has a 10.1% return on its investment.
In the 12 months between Sept. 22, 2021, and Sept. 23, 2022, Apple’s high was $182.94 in January 2022, while its low was $129.04 in June 2022. The average of the high and low during the year was $155.99. It paid $2.53 more per share than the average. Conservatively, that’s over $1 billion too much.
I would bet dollars to donuts; it’s done this every year since 2012.
Reinvestment of Funds Used Could Have Developed a New Killer Product
Source: Vit-Mar/Shutterstock
Despite the possibility of a virtual reality (VR) headset and driverless car, the iPhone remains Apple’s key product and revenue generator. ZDNet reminded its readers in September 2022 that only 11.2 million VR headsets were shipped in 2021 compared to 1.3 billion smartphones. That’s 116x as many.
In June this year, AAPL stock launched the Apple Vision Pro, a $3,500 augmented reality headset. It is controller-free and can switch from AR to full VR with the flip of a switch—while very cool, the product’s unlikely to move the revenue needle for several years.
The launch is the company’s first major product since 2014. It’s expected to generate annual revenue of over $20 billion by 2037. That’s more than a decade away.
In the meantime, the company has spent tens of billions of dollars on developing this product. If it had cut its share repurchases by half over the past decade, it would have created a better product by now with the $250 billion in reallocated investment capital.
These Repurchases Benefit the Buffetts of the World
Source: Rob Crandall / Shutterstock.com
As I already mentioned, the share repurchases made by Apple in 2021 added $1.1 billion in earnings to its share of the money-maker’s total pie. At the end of 2021, its share was $5.6 billion. Buffett rightly called it “staggering.”
Buffett would argue that the same principle applies to every shareholder. But does it? You can’t go into the bank and say, “My Apple shares amount to $1,000 of its earnings. Can I get a loan?”
You could, but I’m not sure how successful you’d be. On the other hand, Buffett almost certainly used its share of earnings to secure funding for its other businesses.
As the saying goes, if you owe your bank $1 million, you have a problem. If you owe your bank $1 billion, they have the problem.
Of course, Buffett will say Apple repurchases are a great thing — for the record, Berkshire is one of my most recommended stocks for InvestorPlace — because they benefit his company more than most.
Even large institutional investors don’t benefit the way Buffett and Berkshire do.
Buffett is a classic “Do as I say, not as I do” investor. When he says things, you have to remember that often, it’s with his interests in mind. It’s not a bad thing; it’s just a reminder that mindlessly following the actions of billionaires won’t guarantee you the same kind of success.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post Apple’s Buyback Blunder: 3 Reasons It’s Not a Win for AAPL Shareholders 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 If there’s one thing that feels like Christmas to Warren Buffett is when Apple (NASDAQ:AAPL) repurchases AAPL stock. “Much of what the company retained was used to repurchase Apple shares, an act we applaud.” Warren Buffett might like the Apple buybacks, but the average investor has three reasons to consider why it’s not a win for regular AAPL stock investors. It Significantly Overpaid for AAPL Stock Source: Shutterstock Apple has spent more than $500 billion in share repurchases since 2012.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If there’s one thing that feels like Christmas to Warren Buffett is when Apple (NASDAQ:AAPL) repurchases AAPL stock. “Much of what the company retained was used to repurchase Apple shares, an act we applaud.” Warren Buffett might like the Apple buybacks, but the average investor has three reasons to consider why it’s not a win for regular AAPL stock investors. It Significantly Overpaid for AAPL Stock Source: Shutterstock Apple has spent more than $500 billion in share repurchases since 2012.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If there’s one thing that feels like Christmas to Warren Buffett is when Apple (NASDAQ:AAPL) repurchases AAPL stock. “Much of what the company retained was used to repurchase Apple shares, an act we applaud.” Warren Buffett might like the Apple buybacks, but the average investor has three reasons to consider why it’s not a win for regular AAPL stock investors. It Significantly Overpaid for AAPL Stock Source: Shutterstock Apple has spent more than $500 billion in share repurchases since 2012.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If there’s one thing that feels like Christmas to Warren Buffett is when Apple (NASDAQ:AAPL) repurchases AAPL stock. “Much of what the company retained was used to repurchase Apple shares, an act we applaud.” Warren Buffett might like the Apple buybacks, but the average investor has three reasons to consider why it’s not a win for regular AAPL stock investors. It Significantly Overpaid for AAPL Stock Source: Shutterstock Apple has spent more than $500 billion in share repurchases since 2012.
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2023-08-22 00:00:00 UTC
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2 Stocks Warren Buffett Is Loving (and One He Let Go)
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https://www.nasdaq.com/articles/2-stocks-warren-buffett-is-loving-and-one-he-let-go
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Warren Buffett is an investing legend because he’s just that good. Since he became CEO of Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) in 1965, the Oracle of Omaha generated 3.7 million percent returns for investors. This has led to the rise of Warren Buffett stocks he bought and sold recently.
To put that in perspective, The S&P 500 returned 24.7 thousand percent.
It’s why investors follow his every move. To paraphrase the old E.F. Hutton commercial, “When Warren Buffett talks, people listen.”
We already know Apple (NASDAQ:AAPL) is one of those favorite Warren Buffett stocks. He owns over 915 million shares worth $159.3 billion. It accounts for more than 45% of Berkshire Hathaway’s total portfolio value. Notably he didn’t buy any more in the second quarter.
But Buffett was an active buyer and seller during the period. Here are two stocks the investing sage actively acquired, according to the most recent 13F filing. I’ve also included one he sold out of completely.
D.R. Horton (DHI)
Source: Shutterstock
Buffett went on a buying binge with homebuilders this quarter. He actually bought the stock of three homebuilders, but he acquired more shares of D.R. Horton (NYSE:DHI) than any other. The Oracle bought almost 6 million shares at around $121 per share. At current prices, that translates into a total value of more than $695 million.
In comparison, he also bought $18 million worth of Lennar (NYSE:LEN) and $67 million worth of NVR (NYSE:NVR).
So why buy so much D.R. Horton versus the others? First, It’s the biggest homebuilder in the U.S. It’s held that title since 2002.
Second, we have a massive inventory shortage. According to Realtor.com, the country “is in the clutches of the largest housing shortage it’s ever experienced — and there’s no relief on the horizon.”
At over 7%, mortgage interest rates are also the highest they’ve been since 2001. That means existing homeowners who have mortgages with rates of 3% or less won’t give that up to buy a new, more expensive home. That takes inventory off the market, meaning only newly built homes will be available. Homebuilders get a big tailwind from the disparity.
Finally, D.R. Horton targets more affordable homes than either Lennar or NVR. Its average closing price is $381,000. For Lennar, it’s $449,000 while NVR has an average selling price of $447,300. The median sales price of a U.S. home is $422,137, almost 2% higher than last year. This makes it one of those important Warren Buffett stocks.
With consumers struggling and the cost to buy a home rising, being the more affordable homebuilder is a plus for D.R. Horton.
Capital One Financial (COF)
Source: shutterstock.com/Tony Mathews
Buffett’s didn’t start a new position in Capital One Financial (NYSE:COF) this quarter as he did with the homebuilders. He did that in the first. Rather, Buffett increased his position by about 25%, adding 2.5 million more shares to Berkshire’s portfolio. That increased the value of the holding to about $1.3 billion today.
As a bank targeting credit cards, auto loans, and banking accounts, Capital One is on a rollercoaster ride. Shares are struggling in the wake of the regional banking crisis. The collapse of Silicon Valley Bank and Signature Bank earlier this year created a crisis of confidence. Ratings agency Moody’s (NYSE:MCO) downgraded Capital One’s outlook to negative due to the current high interest rate environment.
Those same consumers struggling to buy a house are also facing a difficult time paying their auto loans and credit cards. Car loan and credit card delinquency rates are rapidly rising.
Buffett likely believes Capital One Financial will navigate the crisis just fine. It’s a long-term pick for the investing guru and he’s willing to pick up shares when they are down.
McKesson (MCK)
Source: shutterstock.com/Champhei
One of the three stocks Buffett sold in the second quarter was McKesson (NYSE:MCK). He sold all 2.3 million shares of the pharmaceutical and surgical supplies distributor for $1 billion. He first bought the stock in early 2022, but began selling it in the first quarter. So this sale is another of the many times Buffett broke his long term buy-and-hold philosophy.
McKesson is one of the country’s largest distributors, but it trades at an incredible discount. Shares go for just 13 times next year’s earnings estimates, a tiny fraction of its sales, and a bargain 12 times the free cash flow it produces.
Buffett was very active in the medical field during the pandemic, but has traded in and out of related stocks in the field afterwards. McKesson’s sale and cheap valuation make it one you might want to consider buying yourself. It pays an annual dividend of $2.58 per share that yields a modest 0.6%. But with a payout ratio of 8%, there is significant room for further increases.
On the date of publication, Rich Duprey 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.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post 2 Stocks Warren Buffett Is Loving (and One He Let Go) 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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To paraphrase the old E.F. Hutton commercial, “When Warren Buffett talks, people listen.” We already know Apple (NASDAQ:AAPL) is one of those favorite Warren Buffett stocks. According to Realtor.com, the country “is in the clutches of the largest housing shortage it’s ever experienced — and there’s no relief on the horizon.” At over 7%, mortgage interest rates are also the highest they’ve been since 2001. 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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To paraphrase the old E.F. Hutton commercial, “When Warren Buffett talks, people listen.” We already know Apple (NASDAQ:AAPL) is one of those favorite Warren Buffett stocks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Warren Buffett is an investing legend because he’s just that good. In comparison, he also bought $18 million worth of Lennar (NYSE:LEN) and $67 million worth of NVR (NYSE:NVR).
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To paraphrase the old E.F. Hutton commercial, “When Warren Buffett talks, people listen.” We already know Apple (NASDAQ:AAPL) is one of those favorite Warren Buffett stocks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Warren Buffett is an investing legend because he’s just that good. Capital One Financial (COF) Source: shutterstock.com/Tony Mathews Buffett’s didn’t start a new position in Capital One Financial (NYSE:COF) this quarter as he did with the homebuilders.
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To paraphrase the old E.F. Hutton commercial, “When Warren Buffett talks, people listen.” We already know Apple (NASDAQ:AAPL) is one of those favorite Warren Buffett stocks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Warren Buffett is an investing legend because he’s just that good. This has led to the rise of Warren Buffett stocks he bought and sold recently.
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2023-08-22 00:00:00 UTC
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ANALYSIS-Arm's clients turn IPO into tug of war for chip influence
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https://www.nasdaq.com/articles/analysis-arms-clients-turn-ipo-into-tug-of-war-for-chip-influence-0
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By Milana Vinn, Anirban Sen and Stephen Nellis
NEW YORK/SAN FRANCISCO, Aug 22 (Reuters) - A scramble among Arm Holdings Ltd's clients, comprising the world's biggest technology companies, to snap up shares in its initial public offering (IPO) is testing the semiconductor designer's adherence to not picking sides in the chip industry.
Customers of Arm that have held talks about taking a piece of the IPO include Apple AAPL.O, Amazon.com AMZN.O, Intel INTC.O, Nvidia NVDA.O, Alphabet GOOGL.O, Microsoft MSFT.O, Samsung Electronics 005930.KS and TSMC 2330.TW, Reuters has reported. Arm is hoping for a valuation of up to $70 billion in the IPO, which will launch on the Nasdaq next month.
These companies' interest is fueled by a desire to expand their commercial relationship with Arm, and make sure that their rivals do not gain an edge, according to people familiar with the discussions.
This is because Arm's customers view its semiconductor designs as an indispensable resource. They are used by more than 260 technology companies to make over 30 billion chips annually, powering 99% of the world’s smartphones and everything from the tiniest of sensors to the most powerful supercomputers.
While an IPO investment would not come with a seat on Arm's board or ability to dictate strategy, it could strengthen ties with each participating company and make it harder for a competitor to acquire Arm later, according to the sources.
"These guys want to be able to feed their technology needs back into Arm, so that their needs get put into Arm's intellectual property," said Jack Gold, founder of technology consultancy J. Gold Associates.
Arm and its owner SoftBank Group 9984.T have set aside 10% of the shares to be sold in the IPO for its clients, the sources said. They have pushed back against demands for higher allocations, arguing this would weigh on the liquidity of Arm's stock, given that shares totaling a stake of only 10% in Arm will be sold in the IPO, the sources added.
Arm and SoftBank declined to comment.
The details of the IPO discussions between Arm and its clients, which have not been previously reported, illustrate how the company's neutral status as "the Switzerland of chips" remains a flash point. SoftBank is pursuing the IPO because its attempt to sell Arm to Nvidia for $40 billion collapsed last year after other chip makers, who were clients of Arm, complained to antitrust regulators about it.
Nvidia is a major customer of Arm, licensing its technology to power a new processor for data centers that could win it market share against longtime rivals such as Intel and Advanced Micro Devices Inc AMD.O.
Nvidia declined to comment.
APPLE, SAMSUNG
Another of Arm's major customers in talks to invest in the IPO is Apple. It was part of a consortium that founded Arm in 1990, and has been using its technology for chips that power its iPhones and Mac computers. Its close relationship with Arm has helped it design chips that curbed its reliance on Intel as a supplier.
Apple spokespeople did not respond to a request for comment.
In its relationship with Arm, Samsung has also been motivated by its desire to have more autonomy and fewer costs in its production of smart phones. The Korean company and its executive chairman Jay Lee have cultivated ties with SoftBank CEO Masayoshi Son, according to the sources. Son was born in Japan but has Korean ancestors.
Samsung did not respond to a request for comment.
Intel has turned to Arm mostly to make custom networking chips. But as it expands its foundry business to compete in the contract manufacturing of chips against TSMC, it needs a closer relationship with Arm to ensure it can produce Arm-based chips for customers.
An Intel spokesperson declined to comment.
Many technology companies that seek to make their own chips using Arm's designs turn to TSMC for its low-cost manufacturing. This has motivated TSMC to advance the adoption of Arm's designs.
TSMC did not respond to a request for comment.
AMAZON, ALPHABET, MICROSOFT
Amazon has used Arm to develop its own chip called Graviton to power the servers behind its cloud business and reduce its reliance on Intel and Advanced Micro Devices for chip supplies. It is seeking to expand the relationship as it develops more hardware, the sources said.
Amazon declined to comment.
Alphabet and Microsoft trail Amazon in developing self-sufficiency in chips but are following suit. Alphabet is keen to secure supplies for its Pixel line of Android phones, while Microsoft wants to ensure compatibility with its Windows platform.
Alphabet and Microsoft did not respond to requests for comment.
None of these companies' investments in Arm's IPO are certain. SoftBank recently valued Arm at $64 billion in a transaction with its Vision Fund, and it is possible that some companies will balk at the price expectations.
"The valuation seems kind of high and people are awaiting what valuation comes in at," said Dylan Patel, chief analyst at semiconductor consulting firm SemiAnalysis.
(Reporting by Milana Vinn and Anirban in New York and Stephen Nellis in San Francisco Additional reporting by Max Cherney in San Francisco Editing by Greg Roumeliotis and Matthew Lewis)
((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters Messaging: greg.roumeliotis.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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Customers of Arm that have held talks about taking a piece of the IPO include Apple AAPL.O, Amazon.com AMZN.O, Intel INTC.O, Nvidia NVDA.O, Alphabet GOOGL.O, Microsoft MSFT.O, Samsung Electronics 005930.KS and TSMC 2330.TW, Reuters has reported. By Milana Vinn, Anirban Sen and Stephen Nellis NEW YORK/SAN FRANCISCO, Aug 22 (Reuters) - A scramble among Arm Holdings Ltd's clients, comprising the world's biggest technology companies, to snap up shares in its initial public offering (IPO) is testing the semiconductor designer's adherence to not picking sides in the chip industry. Nvidia is a major customer of Arm, licensing its technology to power a new processor for data centers that could win it market share against longtime rivals such as Intel and Advanced Micro Devices Inc AMD.O.
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Customers of Arm that have held talks about taking a piece of the IPO include Apple AAPL.O, Amazon.com AMZN.O, Intel INTC.O, Nvidia NVDA.O, Alphabet GOOGL.O, Microsoft MSFT.O, Samsung Electronics 005930.KS and TSMC 2330.TW, Reuters has reported. By Milana Vinn, Anirban Sen and Stephen Nellis NEW YORK/SAN FRANCISCO, Aug 22 (Reuters) - A scramble among Arm Holdings Ltd's clients, comprising the world's biggest technology companies, to snap up shares in its initial public offering (IPO) is testing the semiconductor designer's adherence to not picking sides in the chip industry. Many technology companies that seek to make their own chips using Arm's designs turn to TSMC for its low-cost manufacturing.
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Customers of Arm that have held talks about taking a piece of the IPO include Apple AAPL.O, Amazon.com AMZN.O, Intel INTC.O, Nvidia NVDA.O, Alphabet GOOGL.O, Microsoft MSFT.O, Samsung Electronics 005930.KS and TSMC 2330.TW, Reuters has reported. By Milana Vinn, Anirban Sen and Stephen Nellis NEW YORK/SAN FRANCISCO, Aug 22 (Reuters) - A scramble among Arm Holdings Ltd's clients, comprising the world's biggest technology companies, to snap up shares in its initial public offering (IPO) is testing the semiconductor designer's adherence to not picking sides in the chip industry. While an IPO investment would not come with a seat on Arm's board or ability to dictate strategy, it could strengthen ties with each participating company and make it harder for a competitor to acquire Arm later, according to the sources.
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Customers of Arm that have held talks about taking a piece of the IPO include Apple AAPL.O, Amazon.com AMZN.O, Intel INTC.O, Nvidia NVDA.O, Alphabet GOOGL.O, Microsoft MSFT.O, Samsung Electronics 005930.KS and TSMC 2330.TW, Reuters has reported. Arm and SoftBank declined to comment. Intel has turned to Arm mostly to make custom networking chips.
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2023-08-22 00:00:00 UTC
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QQQ vs. RSP : Which Is the Better ETF Investment Now?
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https://www.nasdaq.com/articles/qqq-vs.-rsp-%3A-which-is-the-better-etf-investment-now-0
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(1:30) - What Is Driving QQQ Outperformance?
(8:30) - What Could Help Drive Positive Performance For The Rest of The Year?
(13:20) - Has QQQ Become Too Expensive Right Now or Is It Reasonably Priced?
(16:15) - The Innovation Suite: What Kind of R&D Spending Is Happening Right Now Within The QQQ?
(18:05) - The QQQ Rebalancing: Everything Investors Should Know
(26:00) - How Should Investors Be Using These Investment Products?
(29:15) - Invesco S&P 500 Equal Weight ETF: RSP
(33:45) - How Concentrated Is The S&P 500 Right Now?
(37:35) - Why Should Investors Consider Adding RSP To Their Portfolios?
(43:20) - Breaking Down Invesco’s Suite of Equal Weight ETFs
(51:15) - Episode Roundup: QQQ, QQQM, RSP, RSPT, RSPC
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Invesco strategists Paul Schroeder and Chris Dahlin about the ultra-popular Invesco QQQ QQQ, and the S&P 500 Equal Weight ETF RSP.
QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. From March 10, 1999, to June 30, 2023, the Nasdaq-100 Index, which has become synonymous with growth and innovation, returned over 780%.
However, mega-cap stocks now dominate the popular market-cap benchmarks, leading to concerns about overconcentration of these indexes. Further, we have seen these giants struggle a bit lately, and a wider group of the market is outperforming the largest companies.
RSP, the first smart beta ETF, has significantly outperformed the market- capitalization-weighted S&P 500 since its inception in 2003. The fund has seen a lot of interest from investors this year. With equal-weighting, investors get higher exposure to old economy sectors that are quite attractively valued compared to technology.
The quarterly rebalancing ensures trimming expensive stocks and buying potentially cheaper stocks that have declined in price. Invesco also offers 11 equal-weight sector ETFs, which were rebranded recently.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.
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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 S&P 500 Equal Weight ETF (RSP): 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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QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. 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 S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, mega-cap stocks now dominate the popular market-cap benchmarks, leading to concerns about overconcentration of these indexes.
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QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. 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 S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. (43:20) - Breaking Down Invesco’s Suite of Equal Weight ETFs (51:15) - Episode Roundup: QQQ, QQQM, RSP, RSPT, RSPC Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Invesco strategists Paul Schroeder and Chris Dahlin about the ultra-popular Invesco QQQ QQQ, and the S&P 500 Equal Weight ETF RSP.
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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 S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. (18:05) - The QQQ Rebalancing: Everything Investors Should Know (26:00) - How Should Investors Be Using These Investment Products?
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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 S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. (1:30) - What Is Driving QQQ Outperformance?
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2023-08-22 00:00:00 UTC
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Is SPDR MSCI USA StrategicFactors ETF (QUS) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-spdr-msci-usa-strategicfactors-etf-qus-a-strong-etf-right-now-9
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Making its debut on 04/15/2015, smart beta exchange traded fund SPDR MSCI USA StrategicFactors ETF (QUS) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
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 sponsored by State Street Global Advisors. It has amassed assets over $1 billion, making it one of the larger ETFs in the Style Box - Large Cap Blend. This particular fund seeks to match the performance of the MSCI USA Factor Mix A-Series Index before fees and expenses.
The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for QUS are 0.15%, which makes it one of the cheaper products in the space.
QUS's 12-month trailing dividend yield is 1.59%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For QUS, it has heaviest allocation in the Information Technology sector --about 24.40% of the portfolio --while Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.12% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
QUS's top 10 holdings account for about 19.78% of its total assets under management.
Performance and Risk
Year-to-date, the SPDR MSCI USA StrategicFactors ETF has gained about 12.45% so far, and is up about 5.60% over the last 12 months (as of 08/22/2023). QUS has traded between $101.25 and $126.74 in this past 52-week period.
The fund has a beta of 0.91 and standard deviation of 16.22% for the trailing three-year period, which makes QUS a medium risk choice in this particular space. With about 631 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR MSCI USA StrategicFactors 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 $344.88 billion in assets, SPDR S&P 500 ETF has $408.04 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
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SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.12% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : 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. Making its debut on 04/15/2015, smart beta exchange traded fund SPDR MSCI USA StrategicFactors ETF (QUS) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.12% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Making its debut on 04/15/2015, smart beta exchange traded fund SPDR MSCI USA StrategicFactors ETF (QUS) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.12% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Making its debut on 04/15/2015, smart beta exchange traded fund SPDR MSCI USA StrategicFactors ETF (QUS) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.12% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : 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. Making its debut on 04/15/2015, smart beta exchange traded fund SPDR MSCI USA StrategicFactors ETF (QUS) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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14191.0
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2023-08-22 00:00:00 UTC
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Should Invesco FTSE RAFI US 1000 ETF (PRF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-ftse-rafi-us-1000-etf-prf-be-on-your-investing-radar-8
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nan
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Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $6.03 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 typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.93%.
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 Financials sector--about 19.40% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.84% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 17.25% of total assets under management.
Performance and Risk
PRF seeks to match the performance of the FTSE RAFI US 1000 Index before fees and expenses. The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
The ETF has gained about 6.09% so far this year and it's up approximately 2.23% in the last one year (as of 08/22/2023). In the past 52-week period, it has traded between $27.75 and $33.99.
The ETF has a beta of 1 and standard deviation of 16.90% for the trailing three-year period, making it a medium risk choice in the space. With about 1013 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 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, PRF is a reasonable 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 $49.93 billion in assets, Vanguard Value ETF has $100.36 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.84% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.84% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.84% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives Invesco FTSE RAFI US 1000 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, Berkshire Hathaway Inc (BRK/B) accounts for about 2.84% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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14192.0
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2023-08-22 00:00:00 UTC
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3 ETFs to Invest Like Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/3-etfs-to-invest-like-warren-buffett
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nan
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nan
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Warren Buffett is one of the greatest and most respected investors of all time. Most investors would like to emulate Buffett's investing style in their portfolios, which is not easy, but we can certainly learn from his strategies.
Berkshire Hathaway (BRK.A) recently reported excellent earnings, sending its class A shares to an all-time high. The stock has increased in value by more than 25,000 times since Buffett took control of the company in 1965, according to Barron's.
The legendary investor favors companies with “economic moats,” which are like "economic castles protected by unbreachable moats.” In simple terms, a moat is a unique competitive advantage that enables a company to outperform others in the same industry over time.
The VanEck Morningstar Wide Moat ETF MOAT invests in attractively priced companies with sustainable competitive advantages. Domino's Pizza DPZ and Alphabet GOOG are among the top holdings in the fund.
In the past, Buffett invested in undervalued companies with great potential, which he called "cigar butts." However, his thinking later evolved to "it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
The SPDR MSCI USA StrategicFactors ETF (QUS) aims to invest in high-quality firms with durable balance sheets and stable cash flows, trading at reasonable valuations. Apple AAPL, Microsoft MSFT and Nvidia NVDA are among the current holdings.
Buffett has long recommended that most investors should stick with low-cost index funds. The iShares Core S&P 500 ETF IVV and Vanguard S&P 500 ETF VOO charge just 0.03% each, but SPDR Portfolio S&P 500 ETF SPLG's new fee of 0.02% makes it the cheapest in the space.
Please watch the short video above to learn more.
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
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Domino's Pizza Inc (DPZ) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
SPDR Portfolio S&P 500 ETF (SPLG): 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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Apple AAPL, Microsoft MSFT and Nvidia NVDA are among the current holdings. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Berkshire Hathaway (BRK.A) recently reported excellent earnings, sending its class A shares to an all-time high.
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Apple AAPL, Microsoft MSFT and Nvidia NVDA are among the current holdings. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. The VanEck Morningstar Wide Moat ETF MOAT invests in attractively priced companies with sustainable competitive advantages.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT and Nvidia NVDA are among the current holdings. The legendary investor favors companies with “economic moats,” which are like "economic castles protected by unbreachable moats.” In simple terms, a moat is a unique competitive advantage that enables a company to outperform others in the same industry over time.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT and Nvidia NVDA are among the current holdings. Most investors would like to emulate Buffett's investing style in their portfolios, which is not easy, but we can certainly learn from his strategies.
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14193.0
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2023-08-22 00:00:00 UTC
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Buying These 3 Stocks Could Be the Smartest Investing Move You Ever Make
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AAPL
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https://www.nasdaq.com/articles/buying-these-3-stocks-could-be-the-smartest-investing-move-you-ever-make-3
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nan
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Over the last year, an economic downturn highlighted the importance of dedicating a large portion of your portfolio to solid growth stocks. Companies active in high-growth markets can almost guarantee long-term gains and help safeguard your portfolio from temporary market declines.
In 2023, Wall Street has become particularly bullish about artificial intelligence (AI) and its potential to bolster countless markets. Excitement for the burgeoning sector is not unfounded, as the AI market is expected to expand at a compound annual growth rate of 37% through 2030.
While much of the hype this year focused on companies like Microsoft and Nvidia, businesses in the earlier stages of their AI journeys could offer more growth over the long term. Here are three stocks that could make the smartest investing moves you ever make.
1. Apple
Apple (NASDAQ: AAPL) has enjoyed a reputation as an excellent long-term investment, catching the eye of some of the world's most successful investors. Warren Buffett's holdings company, Berkshire Hathaway, has dedicated 46% of its $348 billion portfolio to the iPhone company. Apple consistently delivered throughout the years, with its stock up 560% since Berkshire Hathaway first invested in 2016.
The tech company, however, stumbled in 2023, with macroeconomic headwinds causing declines in its product sales. However, its long-term outlook remains strong. Apple has leading market shares in most of its product categories, including smartphones, tablets, smartwatches, and headphones. It has built almost unrivaled brand loyalty among consumers, which bodes well for its growing venture in AI.
Over the last year, Apple gradually added AI-enabled features to its products. Meanwhile, the company has reportedly built a custom framework for developing AI language models and created a chatbot similar to OpenAI's ChatGPT, which engineers call Apple GPT. Apple's dominance in tech could help it attract millions of consumers to its future AI services, allowing it to profit substantially from the sector's development.
Alongside a history of stock growth, Apple could be one of the smartest long-term investments.
2. Alphabet
Many investors have overlooked Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) potential in AI, favoring competitors like Microsoft and Amazon, which hold larger market shares in cloud computing. However, the lack of confidence only boosted the value of Alphabet's stock. The chart below shows how Alphabet has the lowest forward price-to-earnings ratio (P/E) among some of the biggest names in AI.
Data by YCharts. PE Ratio = price-to-earnings ratio.
Meanwhile, Alphabet is using AI to enhance several areas of its business, including Google Search and Cloud.
The company started the year by introducing the world to Bard, an AI chatbot meant to compete directly with ChatGPT. Then, in the second quarter of 2023, data from Nielsen revealed YouTube captured 8% of the total time consumers spent watching television. The platform uses AI to recommend videos to users, keeping them connected to the service longer.
Alongside AI, Alphabet enjoyed a solid recovery in its digital ad business. In Q2 2023, revenue rose 7% year over year, driven by strong ad revenue growth.
Alphabet is home to some of the world's most potent brands, including Google, YouTube, Android, Fitbit, and more. With a stock trading at a bargain compared to the competition, Alphabet could be one of the best investments to hold on to for the next five to 10 years and beyond.
3. Intel
Like Alphabet, Intel (NASDAQ: INTC) is a company significantly overlooked in AI and tech in general. As a result, its P/E sits at an attractive 16, indicating its stock is undervalued.
The company stumbled for several years after consistently losing central processing unit (CPU) market share to Advanced Micro Devices and then losing its position as the primary supplier of chips to Apple. However, Intel has used the last year to pivot its business toward generative AI, developing chips to go up against Nvidia.
Moreover, the PC market is beginning to stabilize after more than a year of sales declines. The improvement was evident in Intel's Q2 2023, with its $0.13 earnings per share beating analysts' expectations by $0.16. Meanwhile, revenue of $13 billion beat by $760 million. The company appears to be back on a growth path, making its stock a compelling investment right now.
With the power of AI and a recovering PC market, Intel stock could be one of the smartest investments you ever make.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) has enjoyed a reputation as an excellent long-term investment, catching the eye of some of the world's most successful investors. While much of the hype this year focused on companies like Microsoft and Nvidia, businesses in the earlier stages of their AI journeys could offer more growth over the long term. Meanwhile, the company has reportedly built a custom framework for developing AI language models and created a chatbot similar to OpenAI's ChatGPT, which engineers call Apple GPT.
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Apple Apple (NASDAQ: AAPL) has enjoyed a reputation as an excellent long-term investment, catching the eye of some of the world's most successful investors. Alphabet Many investors have overlooked Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) potential in AI, favoring competitors like Microsoft and Amazon, which hold larger market shares in cloud computing. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Nvidia.
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Apple Apple (NASDAQ: AAPL) has enjoyed a reputation as an excellent long-term investment, catching the eye of some of the world's most successful investors. Alphabet Many investors have overlooked Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) potential in AI, favoring competitors like Microsoft and Amazon, which hold larger market shares in cloud computing. With the power of AI and a recovering PC market, Intel stock could be one of the smartest investments you ever make.
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Apple Apple (NASDAQ: AAPL) has enjoyed a reputation as an excellent long-term investment, catching the eye of some of the world's most successful investors. Apple consistently delivered throughout the years, with its stock up 560% since Berkshire Hathaway first invested in 2016. Alphabet Many investors have overlooked Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) potential in AI, favoring competitors like Microsoft and Amazon, which hold larger market shares in cloud computing.
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14194.0
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2023-08-22 00:00:00 UTC
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Should SPDR Portfolio S&P 500 Growth ETF (SPYG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-growth-etf-spyg-be-on-your-investing-radar-8
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nan
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nan
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Launched on 09/25/2000, the SPDR Portfolio S&P 500 Growth ETF (SPYG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $18.02 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.05%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 36.20% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 45.57% of total assets under management.
Performance and Risk
SPYG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large-capitalization growth sector in the U.S. equity market.
The ETF has added about 20.46% so far this year and is up about 1.57% in the last one year (as of 08/22/2023). In the past 52-week period, it has traded between $49.14 and $62.89.
The ETF has a beta of 1.05 and standard deviation of 22.28% for the trailing three-year period, making it a medium risk choice in the space. With about 235 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPYG is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $90.29 billion in assets, Invesco QQQ has $197.98 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $18.02 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. While Vanguard Growth ETF has $90.29 billion in assets, Invesco QQQ has $197.98 billion.
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Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Launched on 09/25/2000, the SPDR Portfolio S&P 500 Growth ETF (SPYG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
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14195.0
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2023-08-22 00:00:00 UTC
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AAPL Quantitative Stock Analysis - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-warren-buffett-6
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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14196.0
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2023-08-22 00:00:00 UTC
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EXCLUSIVE-Rare earths magnet firms turn to Vietnam in China hedge
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AAPL
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https://www.nasdaq.com/articles/exclusive-rare-earths-magnet-firms-turn-to-vietnam-in-china-hedge
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nan
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nan
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By Francesco Guarascio and Ju-min Park
HANOI/SEOUL, Aug 22 (Reuters) - Korean and Chinese magnet firms, including an Apple supplier, are set to open factories in Vietnam, according to documents and people familiar with the plans, amid a push to diversify supply chains away from China and defend against Sino-U.S. tension.
South Korea's Star Group Industrial (SGI) and China's Baotou INST Magnetic would join companies in sectors as varied as electronics and automobiles in shifting assembly lines against a backdrop of increasing trade restrictions, with clients even requesting the move, the people said.
China is dominant in magnets and the rare earth metals they are made from. The magnets are central to the manufacturing of such products as electric vehicles, wind turbines, weapons and smartphones, making the sector strategically important. Even so, there has been only limited effort to challenge China's lead.
Neighbouring Vietnam, however, has untapped rare earth deposits second only to China's, as well as a fledgling processing industry, giving the country the potential to be a much bigger competitor, industry insiders said.
Still, Vietnam produces just 1% of the world's magnets, showed Adamas Intelligence data cited in a U.S. Department of Energy report, compared with China's 92%.
Moreover, some Chinese factories can produce 10 times as many magnets as SGI's project, and China dominates the mining and processing of the ores.
Nevertheless, Vietnam's rise is significant.
Moreover, U.S. officials have signalled growing interest in Vietnam's rare earths potential amid discussion to upgrade bilateral ties this year, and South Korea signed a deal with Vietnam in June to boost its supply chain of critical minerals.
Magnet makers are also drawn to Vietnam by low labour costs and market access afforded by multiple free-trade deals. They also want to move closer to Vietnam-based clients, such as automakers and electronics firms, which are increasingly wary of over-reliance on Chinese supplies as relations worsen between Washington and Beijing, industry insiders said.
Vietnam is the only country beyond China with all stages of the magnet supply chain, from mining rare earths to downstream production, said a Vietnam-based industry consultant, who was not authorised to speak to media so declined to be identified.
The government plans a vast expansion of rare earths production by the end of the decade and is boosting refining capacity, which the U.S. energy department estimated accounts for 3% of the global share.
However, "anyone who is trying to build from scratch a mine-to-magnet supply chain is going to face a lot of challenges," said David Merriman of Project Blue.
DOUBLING OUTPUT
SGI, which supplies magnets to Vietnamese EV maker VinFast VFS.O and Korea's Hyundai Motor 005380.KS, told Reuters it is investing $80 million in its new Vietnam factory with production starting in 2024.
The plant would nearly double the company's current output of 3,000 tons a year from factories in South Korea and China.
SGI described the investment as part of "countermeasures" against possible Chinese trade restrictions.
"China's policy on control of rare earths-related raw materials and technology is being strengthened, resulting in supply uncertainty," SGI said.
It said it sources most of its rare earths from China but is seeking alternative sources in Vietnam and Australia and plans to develop a processing facility in Vietnam.
APPLE SUPPLIER
China's INST is set to begin operations as early as next month at a leased plant in northern Vietnam after gaining local approval in June, two people familiar with the plans said.
INST, a large magnet firm specialising in circuit design, was added to Apple's AAPL.O supplier list in 2021. Its expansion into Vietnam follows requests from clients to diversify away from China amid growing trade tension, the two people said, declining to identify the clients.
China's Luxshare 002475.SZ and Taiwan's Foxconn 2317.TW are among major Apple suppliers who manufacture magnet-equipped products in Vietnam such as iPad tablets and MacBook laptops.
INST's initial investment is limited to a few million dollars, with a possible second phase involving more spending for the building of its own plant, the people said, declining to be named as they did not have clearance to discuss the matter.
INST did not respond to Reuters when seeking comment.
A similar request from clients prompted another Chinese magnet maker, Magsound, to decide to open a factory in Vietnam in the first half of next year, the two people said.
However, after winning approval in June, Magsound withdrew plans this month, registry documents showed, which the people said followed the collapse of supply deal talks with Luxshare.
Luxshare and Magsound did not reply to requests for comment.
Among magnet makers in Vietnam, Japan's Shin-Etsu Chemical 4063.T has been expanding facilities this year after deciding in 2017 to double annual capacity there to 2,200 tons, showed company statements and details on consultancy Obayashi's website.
Shin-Etsu and Obayashi did not reply to requests for comment.
In April, Australia's Strategic Materials ASM.AX signed a deal with a Vietnamese refiner that committed to supplying rare earths for export to South Korea.
China's rare earths might https://tmsnrt.rs/3E6egkq
(Reporting by Francesco Guarascio and Ju-min Park; Additional reporting by Khanh Vu and Mai Nguyen in Hanoi; Editing by Christopher Cushing)
((Francesco.Guarascio@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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INST, a large magnet firm specialising in circuit design, was added to Apple's AAPL.O supplier list in 2021. By Francesco Guarascio and Ju-min Park HANOI/SEOUL, Aug 22 (Reuters) - Korean and Chinese magnet firms, including an Apple supplier, are set to open factories in Vietnam, according to documents and people familiar with the plans, amid a push to diversify supply chains away from China and defend against Sino-U.S. tension. South Korea's Star Group Industrial (SGI) and China's Baotou INST Magnetic would join companies in sectors as varied as electronics and automobiles in shifting assembly lines against a backdrop of increasing trade restrictions, with clients even requesting the move, the people said.
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INST, a large magnet firm specialising in circuit design, was added to Apple's AAPL.O supplier list in 2021. By Francesco Guarascio and Ju-min Park HANOI/SEOUL, Aug 22 (Reuters) - Korean and Chinese magnet firms, including an Apple supplier, are set to open factories in Vietnam, according to documents and people familiar with the plans, amid a push to diversify supply chains away from China and defend against Sino-U.S. tension. Its expansion into Vietnam follows requests from clients to diversify away from China amid growing trade tension, the two people said, declining to identify the clients.
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INST, a large magnet firm specialising in circuit design, was added to Apple's AAPL.O supplier list in 2021. By Francesco Guarascio and Ju-min Park HANOI/SEOUL, Aug 22 (Reuters) - Korean and Chinese magnet firms, including an Apple supplier, are set to open factories in Vietnam, according to documents and people familiar with the plans, amid a push to diversify supply chains away from China and defend against Sino-U.S. tension. Moreover, U.S. officials have signalled growing interest in Vietnam's rare earths potential amid discussion to upgrade bilateral ties this year, and South Korea signed a deal with Vietnam in June to boost its supply chain of critical minerals.
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INST, a large magnet firm specialising in circuit design, was added to Apple's AAPL.O supplier list in 2021. By Francesco Guarascio and Ju-min Park HANOI/SEOUL, Aug 22 (Reuters) - Korean and Chinese magnet firms, including an Apple supplier, are set to open factories in Vietnam, according to documents and people familiar with the plans, amid a push to diversify supply chains away from China and defend against Sino-U.S. tension. Moreover, some Chinese factories can produce 10 times as many magnets as SGI's project, and China dominates the mining and processing of the ores.
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14197.0
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2023-08-22 00:00:00 UTC
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Big Tech Drives Adage Capital's June Quarter Gains as Boston Fund Cut Midwest Bank Positions
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AAPL
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https://www.nasdaq.com/articles/big-tech-drives-adage-capitals-june-quarter-gains-as-boston-fund-cut-midwest-bank
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nan
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nan
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Tucked away in the heart of Boston's financial district, Adage Capital Management recently unveiled its trading report for the June quarter. The fund informed the Securities and Exchange Commission that its value stood at $46.03 billion at the close of June, marking a 3.23% increase during the second quarter of 2023, up from $44.59 billion in March.
Adage has grown over the years to become one of the most respected names in the world of asset management.
The story of Adage is inseparable from the narratives of its co-founders, Phillip Gross and Robert George Atchinson. Their journey began at Harvard Management Company, where they deftly managed the Ivy League institution's endowment. Their combined expertise, fusing Gross's meticulous analytical acumen with Atchinson's strategic vision, saw the endowment grow significantly during their tenure.
In 2001 the pair left to create their own hedge fund, known as Adage Capital Management. The firm followed a long/short equity strategy, and it committed to the value investment philosophy, seeking out undervalued securities that offered the potential for substantial returns.
Success, as they say, leaves clues. Under the watchful eyes of Gross and Atchinson, Adage's assets under management swelled. Not only did the firm navigate the choppy waters of the 2008 financial crisis, but it emerged even stronger, with its reputation enhanced.
A significant part of Adage's success can be attributed to its founders' ethos. They believed in the principles of transparency, accountability and shared success.
Holdings Reduced
During the recent quarter, the number of holdings managed by the fund saw a dip of 5.4%, going from 913 at the quarter's start to 864 disclosed positions by June 30. The following chart illustrates the fund's value trajectory over the last 10 years.
The fund's reported market value is currently trending higher after recovering from broader market-led weakness over the course of 2022.
The fund's top five positions by portfolio weight are: Apple (US:AAPL) at 6.0%; Microsoft (US:MSFT) at 5.5%; Amazon (US:AMZN) at 2.7%; NVIDIA (US:NVDA) at 2.3%; and, Alphabet (US:GOOGL) at 1.5%. The fund is heavily skewed to the FAANG conglomerates that have driven most of the market momentum in 2023.
Fintel’s heat map of the fund’s holdings gives a snapshot of the total portfolio and the relative weight of each position.
Top Portfolio Increases
Chipmaker NVIDIA (US:NVDA) continued its ascendancy in Adage’s portfolio, with its position rocketing above $1 billion by the close of the quarter, all driven by strong share price momentum. NVDA's allocation swelled to 2.32% of the fund's total, marking growth of 0.73% over the period. The fund actually reduced the number of shares held by 1.1%.
The Microsoft (US:MSFT) position reached a remarkable $2.53 billion in value by the quarter's close. The growing share price reflected in a 0.68% allocation boost to 5.50% of the portfolio. The number of shares held declined marginally.
The fund’s position in Apple (US:AAPL), another tech behemoth, soared to an astounding $2.76 billion. AAPL was 6.0% of the portfolio, marking allocation growth of 0.65% over the three-month period, driven by share price gains.
Holdings of Amazon (US:AMZN), a cornerstone of the e-commerce and cloud industry, ended the quarter at a notable $1.24 billion position value. Representing 2.69% of the fund, AMZN's allocation saw an uptick of 0.52% aided by share price growth and a top up in shares.
RB Global Inc (US:RBA) emerged as a fresh entrant in Adage's strategy. By the quarter's conclusion, the position in RBA stock stood at $190.74 million, translating to a 0.41% portfolio weight, indicating a newly initiated position in the Illinois commercial assets marketplace operator, formerly known as Ritchie Bros. Auctioneers. The company made headlines earlier this week as the departure of CEO Ann Fandozzi stoked investors’ ire.
Dominos Pizza (US:DPZ) cooked up a storm in the fund's holdings, with its position surging to $193.95 million. The pizza titan accounted for 0.42% of the portfolio, marking an increase of 0.395% in DPZ stock during the quarter as the hedge fund manager backed more capital into the conviction call.
Aerospace juggernaut Boeing (US:BA) closed the quarter at a position value of $438.6 million. This translated to 0.95% of the portfolio, signaling an allocation expansion of 0.38%. The fund almost doubled its number of shares held in the plane maker.
Despite the whirlwinds of the tech landscape, Meta Platforms (US:META) carved out a position valued at $632.97 million. The social media colossus represented 1.38% of the fund's total, with a positive allocation delta of 0.32%. While the fund has not invested more capital the stock has mounted strong share price growth over 2023.
Reata Pharmaceuticals (US:RETA) marked its therapeutic stance with its position rounding off to $180.07 million. RETA's weight in the fund was 0.39%, observing an allocation surge of 0.29% during the quarter as the fund tipped more capital into the position.
Lockheed Martin (US:LMT), a defense and aerospace titan, secured its position at $277.25 million by the quarter's close. Representing 0.60% of Adage's holdings, LMT's allocation witnessed a growth of 0.28% in the period.
Collectively, Boston's Adage Capital Partners' moves this quarter underscored its belief in tech giants while diversifying into other promising sectors including defense and healthcare.
Top Portfolio Sales
The fund also made both strategic plays and reductions in several stocks.
Chipotle Mexican Grill (US:CMG) saw a noticeable reduction in the fund's portfolio. By the quarter's end, the position in CMG stood at a market value of $21.12 million. This translated to 0.05% of the portfolio, marking a significant decrease of 0.39% during the quarter.
Exxon Mobil (US:XOM), a prominent player in the energy sector, faced a reduction in the fund's holdings. Its position was valued at a notable $472.03 million, accounting for 1.03% of the portfolio. However, this marked a decline in allocation of 0.37% during the quarter.
Midwest regional bank Keycorp (US:KEY) faced a downward move, with its position valued at $61.01 million by the quarter's end. It made up 0.13% of the portfolio, indicating a decrease of 0.33%.
Dover Corp. (US:DOV) saw its allocation reduced to $81.09 million or 0.18% of the portfolio. This change marked a decrease of 0.33% from the fund's earlier allocation.
Another Midwest regional bank, Comerica (US:CMA) experienced a reduction in the portfolio. By the quarter's end, its position was valued at $42.41 million, or 0.09% of the portfolio, showing a decline of 0.20%.
The fund completely exited positions with corresponding allocations in Shaw Communications (US:SJRWF), Crane Co (US:CR), Travere Therapeutics (US:TVTX) and Prevention Bio (US:PRVB).
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.
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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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The fund's top five positions by portfolio weight are: Apple (US:AAPL) at 6.0%; Microsoft (US:MSFT) at 5.5%; Amazon (US:AMZN) at 2.7%; NVIDIA (US:NVDA) at 2.3%; and, Alphabet (US:GOOGL) at 1.5%. The fund’s position in Apple (US:AAPL), another tech behemoth, soared to an astounding $2.76 billion. AAPL was 6.0% of the portfolio, marking allocation growth of 0.65% over the three-month period, driven by share price gains.
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The fund's top five positions by portfolio weight are: Apple (US:AAPL) at 6.0%; Microsoft (US:MSFT) at 5.5%; Amazon (US:AMZN) at 2.7%; NVIDIA (US:NVDA) at 2.3%; and, Alphabet (US:GOOGL) at 1.5%. The fund’s position in Apple (US:AAPL), another tech behemoth, soared to an astounding $2.76 billion. AAPL was 6.0% of the portfolio, marking allocation growth of 0.65% over the three-month period, driven by share price gains.
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The fund's top five positions by portfolio weight are: Apple (US:AAPL) at 6.0%; Microsoft (US:MSFT) at 5.5%; Amazon (US:AMZN) at 2.7%; NVIDIA (US:NVDA) at 2.3%; and, Alphabet (US:GOOGL) at 1.5%. The fund’s position in Apple (US:AAPL), another tech behemoth, soared to an astounding $2.76 billion. AAPL was 6.0% of the portfolio, marking allocation growth of 0.65% over the three-month period, driven by share price gains.
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The fund's top five positions by portfolio weight are: Apple (US:AAPL) at 6.0%; Microsoft (US:MSFT) at 5.5%; Amazon (US:AMZN) at 2.7%; NVIDIA (US:NVDA) at 2.3%; and, Alphabet (US:GOOGL) at 1.5%. The fund’s position in Apple (US:AAPL), another tech behemoth, soared to an astounding $2.76 billion. AAPL was 6.0% of the portfolio, marking allocation growth of 0.65% over the three-month period, driven by share price gains.
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14198.0
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2023-08-22 00:00:00 UTC
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Stock Market News for Aug 22, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-aug-22-2023
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nan
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nan
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The Nasdaq and the S&P 500 ended their five-day losing streak on Monday even though Treasury yields reached their highest levels in more than a decade, while concerns grew over China’s economy. However, the Dow ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 0.1% or 36.97 points to close at 34,463.69 points. The blue-chip index dropped as much as 252.2 points at one point of the day.
The S&P 500 rose 0.7% or 30.06 points to end at 4,399.77 points. Consumer staples, real estate and utility stocks were the biggest losers.
The Consumer Staples Select Sector SPDR (XLP) lost 0.7%, while the Real Estate Select Sector SPDR (XLRE) fell 0.9%. The Utilities Select Sector SPDR (XLU) declined 0.6%. Six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq jumped 1.6% or 206.81 points to finish at 13,497.59 points.
The fear-gauge CBOE Volatility Index (VIX) was down 0.98% to 17.13. Decliners outnumbered advancers on the NYSE by a 1.44-to-1 ratio. On Nasdaq, a 1.08-to-1 ratio favored declining issues. A total of 9.75 billion shares were traded on Monday, lower than the last 20-session average of 10.99 billion.
Concerns Gow on Rise in Treasury Yields
Stocks ended lower last week as concerns grew over the rise in long-term treasury yields. The concerns were back on Monday as the 10- and 30-year Treasury yields hit new multi-year highs. The 10-year Treasury yield ended the New York session at 4.339%, its highest level since Nov 6, 2007. The 30-year Treasury yield closed at 4.445%, hitting its highest level since Apr 11, 2007.
Yields, which rise when bond prices decline, generally have an adverse impact on tech and other growth stocks because higher yields reduce the present value of their promised future earnings. The bond selloff comes just days ahead of Fed Chair Jerome Powell’s Jackson Hole speech, which hints at how the markets want to position themselves before the speech.
Rising yields have been impacting big tech companies as they tend to make stocks look less attractive to investors. Tech stocks have been largely responsible for the rally in 2023. On Monday, tech stocks held their ground but they have had a disappointing August so far and are down 5.9% for the month.
NVIDIA Corporation (NVDA), which will announce its quarterly results on Wednesday, saw its shares jump 8.5% on Monday. NVIDIA carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Experts believe that NVIDIA’s results could rule the market sentiment for some time given that the chipmaker has been one of the biggest success stories of the 2023 rally after it sparked a frenzy for AI-oriented stocks following an upside earnings surprise earlier this year.
Other major tech stocks also gained on Monday. Shares of Apple Inc. (AAPL) rose 0.8%, while Alphabet Inc. (GOOGL) gained 0.7%.
Investors are also keeping a close watch on China’s economy, which has raised concerns lately as the situation continues to deteriorate. On Monday, Wall Street had a subdued response to China's central bank's decision to lower interest rates, with China's CSI 300 index closing down 1.4% to start a fresh week.
No major economic data was released on Monday.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. (AAPL) rose 0.8%, while Alphabet Inc. (GOOGL) gained 0.7%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The Nasdaq and the S&P 500 ended their five-day losing streak on Monday even though Treasury yields reached their highest levels in more than a decade, while concerns grew over China’s economy.
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Shares of Apple Inc. (AAPL) rose 0.8%, while Alphabet Inc. (GOOGL) gained 0.7%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Concerns Gow on Rise in Treasury Yields Stocks ended lower last week as concerns grew over the rise in long-term treasury yields.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) rose 0.8%, while Alphabet Inc. (GOOGL) gained 0.7%. Concerns Gow on Rise in Treasury Yields Stocks ended lower last week as concerns grew over the rise in long-term treasury yields.
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Shares of Apple Inc. (AAPL) rose 0.8%, while Alphabet Inc. (GOOGL) gained 0.7%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Six of the 11 sectors of the benchmark index ended in negative territory.
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14199.0
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2023-08-22 00:00:00 UTC
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ANALYSIS-Arm's clients turn IPO into tug of war for chip influence
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AAPL
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https://www.nasdaq.com/articles/analysis-arms-clients-turn-ipo-into-tug-of-war-for-chip-influence
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nan
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By Milana Vinn, Anirban Sen and Stephen Nellis
NEW YORK/SAN FRANCISCO, Aug 22 (Reuters) - A scramble among Arm Holdings Ltd's clients, comprising the world's biggest technology companies, to snap up shares in its initial public offering (IPO) is testing the semiconductor designer's adherence to not picking sides in the chip industry.
Customers of Arm that have held talks about taking a piece of the IPO include Apple AAPL.O, Amazon.com AMZN.O, Intel INTC.O, Nvidia NVDA.O, Alphabet GOOGL.O, Microsoft MSFT.O, Samsung Electronics 005930.KS and TSMC 2330.TW, Reuters has reported. Arm is hoping for a valuation of up to $70 billion in the IPO, which will launch on the Nasdaq next month.
These companies' interest is fueled by a desire to expand their commercial relationship with Arm, and make sure that their rivals do not gain an edge, according to people familiar with the discussions.
This is because Arm's customers view its semiconductor designs as an indispensable resource. They are used by more than 260 technology companies to make over 30 billion chips annually, powering 99% of the world’s smartphones and everything from the tiniest of sensors to the most powerful supercomputers.
While an IPO investment would not come with a seat on Arm's board or ability to dictate strategy, it could strengthen ties with each participating company and make it harder for a competitor to acquire Arm later, according to the sources.
"These guys want to be able to feed their technology needs back into Arm, so that their needs get put into Arm's intellectual property," said Jack Gold, founder of technology consultancy J. Gold Associates.
Arm and its owner SoftBank Group 9984.T have set aside 10% of the shares to be sold in the IPO for its clients, the sources said. They have pushed back against demands for higher allocations, arguing this would weigh on the liquidity of Arm's stock, given that shares totaling a stake of only 10% in Arm will be sold in the IPO, the sources added.
Arm and SoftBank declined to comment.
The details of the IPO discussions between Arm and its clients, which have not been previously reported, illustrate how the company's neutral status as "the Switzerland of chips" remains a flash point. SoftBank is pursuing the IPO because its attempt to sell Arm to Nvidia for $40 billion collapsed last year after other chip makers, who were clients of Arm, complained to antitrust regulators about it.
Nvidia is a major customer of Arm, licensing its technology to power a new processor for data centers that could win it market share against longtime rivals such as Intel and Advanced Micro Devices Inc AMD.O.
Nvidia declined to comment.
APPLE, SAMSUNG
Another of Arm's major customers in talks to invest in the IPO is Apple. It was part of a consortium that founded Arm in 1990, and has been using its technology for chips that power its iPhones and Mac computers. Its close relationship with Arm has helped it design chips that curbed its reliance on Intel as a supplier.
Apple spokespeople did not respond to a request for comment.
In its relationship with Arm, Samsung has also been motivated by its desire to have more autonomy and fewer costs in its production of smart phones. The Korean company and its executive chairman Jay Lee have cultivated ties with SoftBank CEO Masayoshi Son, according to the sources. Son was born in Japan but has Korean ancestors.
Samsung did not respond to a request for comment.
Intel has turned to Arm mostly to make custom networking chips. But as it expands its foundry business to compete in the contract manufacturing of chips against TSMC, it needs a closer relationship with Arm to ensure it can produce Arm-based chips for customers.
An Intel spokesperson declined to comment.
Many technology companies that seek to make their own chips using Arm's designs turn to TSMC for its low-cost manufacturing. This has motivated TSMC to advance the adoption of Arm's designs.
TSMC did not respond to a request for comment.
AMAZON, ALPHABET, MICROSOFT
Amazon has used Arm to develop its own chip called Graviton to power the servers behind its cloud business and reduce its reliance on Intel and Advanced Micro Devices for chip supplies. It is seeking to expand the relationship as it develops more hardware, the sources said.
Amazon did not respond to a request for comment.
Alphabet and Microsoft trail Amazon in developing self-sufficiency in chips but are following suit. Alphabet is keen to secure supplies for its Pixel line of Android phones, while Microsoft wants to ensure compatibility with its Windows platform.
Alphabet and Microsoft did not respond to requests for comment.
None of these companies' investments in Arm's IPO are certain. SoftBank recently valued Arm at $64 billion in a transaction with its Vision Fund, and it is possible that some companies will balk at the price expectations.
"The valuation seems kind of high and people are awaiting what valuation comes in at," said Dylan Patel, chief analyst at semiconductor consulting firm SemiAnalysis.
(Reporting by Milana Vinn and Anirban in New York and Stephen Nellis in San Francisco Additional reporting by Max Cherney in San Francisco Editing by Greg Roumeliotis and Matthew Lewis)
((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters Messaging: greg.roumeliotis.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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Customers of Arm that have held talks about taking a piece of the IPO include Apple AAPL.O, Amazon.com AMZN.O, Intel INTC.O, Nvidia NVDA.O, Alphabet GOOGL.O, Microsoft MSFT.O, Samsung Electronics 005930.KS and TSMC 2330.TW, Reuters has reported. By Milana Vinn, Anirban Sen and Stephen Nellis NEW YORK/SAN FRANCISCO, Aug 22 (Reuters) - A scramble among Arm Holdings Ltd's clients, comprising the world's biggest technology companies, to snap up shares in its initial public offering (IPO) is testing the semiconductor designer's adherence to not picking sides in the chip industry. Nvidia is a major customer of Arm, licensing its technology to power a new processor for data centers that could win it market share against longtime rivals such as Intel and Advanced Micro Devices Inc AMD.O.
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Customers of Arm that have held talks about taking a piece of the IPO include Apple AAPL.O, Amazon.com AMZN.O, Intel INTC.O, Nvidia NVDA.O, Alphabet GOOGL.O, Microsoft MSFT.O, Samsung Electronics 005930.KS and TSMC 2330.TW, Reuters has reported. By Milana Vinn, Anirban Sen and Stephen Nellis NEW YORK/SAN FRANCISCO, Aug 22 (Reuters) - A scramble among Arm Holdings Ltd's clients, comprising the world's biggest technology companies, to snap up shares in its initial public offering (IPO) is testing the semiconductor designer's adherence to not picking sides in the chip industry. Many technology companies that seek to make their own chips using Arm's designs turn to TSMC for its low-cost manufacturing.
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Customers of Arm that have held talks about taking a piece of the IPO include Apple AAPL.O, Amazon.com AMZN.O, Intel INTC.O, Nvidia NVDA.O, Alphabet GOOGL.O, Microsoft MSFT.O, Samsung Electronics 005930.KS and TSMC 2330.TW, Reuters has reported. By Milana Vinn, Anirban Sen and Stephen Nellis NEW YORK/SAN FRANCISCO, Aug 22 (Reuters) - A scramble among Arm Holdings Ltd's clients, comprising the world's biggest technology companies, to snap up shares in its initial public offering (IPO) is testing the semiconductor designer's adherence to not picking sides in the chip industry. While an IPO investment would not come with a seat on Arm's board or ability to dictate strategy, it could strengthen ties with each participating company and make it harder for a competitor to acquire Arm later, according to the sources.
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Customers of Arm that have held talks about taking a piece of the IPO include Apple AAPL.O, Amazon.com AMZN.O, Intel INTC.O, Nvidia NVDA.O, Alphabet GOOGL.O, Microsoft MSFT.O, Samsung Electronics 005930.KS and TSMC 2330.TW, Reuters has reported. Arm and SoftBank declined to comment. Intel has turned to Arm mostly to make custom networking chips.
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