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14300.0
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2023-08-15 00:00:00 UTC
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DELL Australia Faces $6.5M Fine for False Monitor Pricing
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AAPL
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https://www.nasdaq.com/articles/dell-australia-faces-%246.5m-fine-for-false-monitor-pricing
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nan
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nan
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Dell Technologies’ DELL Australian unit has been ordered by the Federal Court to pay A$10M ($6.5 million) in penalties for misleading customers on discounted hardware prices.
The Australian Consumer and Competition Commission (ACCC) imposed a A$10 million fine on the tech giant for making false and misleading representations about discounted prices for add-on computer monitors.
The monitors were often advertised with a higher strikethrough price, indicating to customers that they could make significant savings.
Dell Australia admitted that it has misled customers over prices available on monitors in bundle packages alongside desktop, laptop or notebook devices. Markedly, Dell Australia sold more than 5.3K monitors with overstated discounts.
The ACCC fine follows a lengthy court case that began last year. In November, the regulator began proceedings against the Australian subsidiary which resulted in Dell conceding its tactics had misled consumers in June.
Slump in PC Market Hurts Dell’s Prospects
Dell is experiencing a tough 2023 due to a challenging macroeconomic environment and a slump in the PC market.
Dell has underperformed its PC market peers, including Apple AAPL, HP HPQ and Lenovo LNVGY in the second quarter of 2023. The company registered the highest fall of 21.8% to 10.4 million units, followed by Acer 21.1% to 4 million PCs.
PC volumes of Lenovo fell 20.8% to 14.3 million units, while ASUS registered a decrease of 17.3% to 3.9 million units. HP and Apple both registered a modest decline in its PC shipments. While HP’s PC shipments fell 0.9% to 13.5 million units, Apple’s shipments dropped 0.3% to 5.3 million PCs.
Dell suffered from lower PC shipments in the first quarter of fiscal 2024. It witnessed weak PC demand and slowing infrastructure demand, which was partially offset by strong growth in storage. Client Solutions Group revenues were $11.98 billion, down 23% year over year.
Dell now expects second-quarter fiscal 2024 revenues between $20.2 billion and $21.2 billion, down 21.6% year over year at the mid-point, with Infrastructure Solutions Group down in the low single digits sequentially. The company expects roughly 200 basis points negative impact of unfavorable forex on revenues.
The Zacks Consensus Estimate for the fiscal second quarter is pegged at $1.13 per share, down 32.7% over the past 30 days. For fiscal 2024, the consensus mark for earnings is pinned at $5.55 per share, down 27.07% over the same timeframe.
However, the PC-maker’s expanding portfolio including security holds promise for its prospect this year.
Dell’s latest security services and solutions will help enterprises protect against threats, respond to attacks and secure their devices, systems and clouds. It is expanding the capabilities of Managed Detection and Response solutions with the latest Pro Plus, which is a fully managed security operations solution that helps organizations prevent, respond and recover from security threats.
Moreover, Dell is now offering more choices to its customers with CrowdStrike Falcon in its SafeGuard and Response portfolio. It is also launching Product Success Accelerator for Cyber Recovery, a new service that helps enterprises protect critical data and maintain business continuity.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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
Apple Inc. (AAPL) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY) : 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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Dell has underperformed its PC market peers, including Apple AAPL, HP HPQ and Lenovo LNVGY in the second quarter of 2023. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. The Australian Consumer and Competition Commission (ACCC) imposed a A$10 million fine on the tech giant for making false and misleading representations about discounted prices for add-on computer monitors.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Dell has underperformed its PC market peers, including Apple AAPL, HP HPQ and Lenovo LNVGY in the second quarter of 2023. While HP’s PC shipments fell 0.9% to 13.5 million units, Apple’s shipments dropped 0.3% to 5.3 million PCs.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Dell has underperformed its PC market peers, including Apple AAPL, HP HPQ and Lenovo LNVGY in the second quarter of 2023. Dell Technologies’ DELL Australian unit has been ordered by the Federal Court to pay A$10M ($6.5 million) in penalties for misleading customers on discounted hardware prices.
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Dell has underperformed its PC market peers, including Apple AAPL, HP HPQ and Lenovo LNVGY in the second quarter of 2023. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. The Australian Consumer and Competition Commission (ACCC) imposed a A$10 million fine on the tech giant for making false and misleading representations about discounted prices for add-on computer monitors.
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14301.0
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2023-08-15 00:00:00 UTC
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See Which Of The Latest 13F Filers Holds Apple
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AAPL
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https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-apple-10
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nan
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nan
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At Holdings Channel, we have reviewed the latest batch of the 144 most recent 13F filings for the 06/30/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 48 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Alliance Wealth Advisors LLC UT Existing +192 +$269
Barometer Capital Management Inc. Existing -2,960 +$1,096
Capital Management Associates NY Existing +2,030 +$899
Clark Estates Inc. NY NEW +3,111 +$603
Harbour Investment Management LLC Existing -4,173 +$939
Ithaka Group LLC Existing -22,017 +$530
Lumina Fund Management LLC Existing UNCH +$1,256
New Legacy Group LLC Existing UNCH +$166
Orleans Capital Management Corp LA Existing +150 +$1,929
Pinnacle Holdings LLC Existing -423 +$494
Portland Global Advisors LLC Existing -898 +$1,345
Prestige Wealth Management Group LLC Existing +5,134 +$4,227
Royal London Asset Management Ltd. Existing +1,627,606 +$548,574
Sculati Wealth Management LLC Existing -448 +$1,713
Solano Wealth Management Inc. Existing UNCH +$73
UBS Group AG Existing +1,037,331 +$1,263,423
Benchmark Investment Advisors LLC Existing +1,843 +$1,458
Trek Financial LLC Existing -11,783 +$1,110
Ashford Capital Management Inc. Existing -176 +$102
Baker Avenue Asset Management LP Existing -103,884 +$12,296
Allianz Asset Management GmbH Existing -750,123 +$128,087
Annandale Capital LLC Existing -314 +$644
L & S Advisors Inc Existing +7,374 +$5,173
PFS Investments Inc. Existing +5,856 +$7,822
Sfmg LLC Existing +2,841 +$6,683
tru Independence LLC Existing +63 +$1,232
Needham Investment Management LLC Existing -1,250 +$753
Rossmore Private Capital Existing -2,839 +$5,918
Echo Street Capital Management LLC Existing +461,441 +$106,254
Regis Acquisition Inc. Existing UNCH +$163
HHM Wealth Advisors LLC Existing +4,794 +$2,184
Laidlaw Wealth Management LLC Existing -6,661 +$4,676
Williams Jones Wealth Management LLC. Existing -40,085 +$57,717
Himension Capital Singapore PTE. LTD. NEW +168,682 +$32,719
FCA Corp TX Existing -528 +$444
Symmetry Investments LP NEW +5,500 +$1,067
Prudential PLC Existing -39,826 +$16,972
Totem Point Management LLC NEW +36,942 +$7,166
Dantai Capital Ltd NEW +6,000 +$1,164
Dynamic Technology Lab Private Ltd Existing -5,278 -$649
Retirement Capital Strategies Existing +38 +$876
Beck Capital Management LLC Existing +48 +$599
Nan Shan Life Insurance Co. Ltd. Existing +143,049 +$32,980
Graham Capital Management L.P. Existing +17,558 +$3,811
Eqis Capital Management Inc. Existing -5,752 +$1,333
Monograph Wealth Advisors LLC Existing -39,969 -$2,738
Wallace Capital Management Inc. Existing +215 +$457
1832 Asset Management L.P. Existing -240,889 +$131,823
Aggregate Change: +2,257,522 +$2,397,832
In terms of shares owned, we count 18 of the above funds having increased existing AAPL positions from 03/31/2023 to 06/30/2023, with 21 having decreased their positions and 5 new positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the AAPL share count in the aggregate among all of the funds which held AAPL at the 06/30/2023 reporting period (out of the 4,850 we looked at in total). We then compared that number to the sum total of AAPL shares those same funds held back at the 03/31/2023 period, to see how the aggregate share count held by hedge funds has moved for AAPL. We found that between these two periods, funds increased their holdings by 40,972,498 shares in the aggregate, from 4,395,058,721 up to 4,436,031,219 for a share count increase of approximately 0.93%. The overall top three funds holding AAPL on 06/30/2023 were:
» FUND SHARES OF AAPL HELD
1. BlackRock Inc. 1,039,640,859
2. FMR LLC 307,066,638
3. Geode Capital Management LLC 291,538,165
4-10 Find out the full Top 10 Hedge Funds Holding AAPL »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Apple Inc (Symbol: AAPL).
10 S&P 500 Components Hedge Funds Are Buying »
Also see:
Stock Split History
NC shares outstanding history
ALCO Stock Predictions
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At Holdings Channel, we have reviewed the latest batch of the 144 most recent 13F filings for the 06/30/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 48 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Apple Inc (Symbol: AAPL). Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers:
|
At Holdings Channel, we have reviewed the latest batch of the 144 most recent 13F filings for the 06/30/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 48 of these funds. Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers: Existing -240,889 +$131,823 Aggregate Change: +2,257,522 +$2,397,832 In terms of shares owned, we count 18 of the above funds having increased existing AAPL positions from 03/31/2023 to 06/30/2023, with 21 having decreased their positions and 5 new positions.
|
At Holdings Channel, we have reviewed the latest batch of the 144 most recent 13F filings for the 06/30/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 48 of these funds. Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers: Existing -240,889 +$131,823 Aggregate Change: +2,257,522 +$2,397,832 In terms of shares owned, we count 18 of the above funds having increased existing AAPL positions from 03/31/2023 to 06/30/2023, with 21 having decreased their positions and 5 new positions.
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Existing -240,889 +$131,823 Aggregate Change: +2,257,522 +$2,397,832 In terms of shares owned, we count 18 of the above funds having increased existing AAPL positions from 03/31/2023 to 06/30/2023, with 21 having decreased their positions and 5 new positions. Geode Capital Management LLC 291,538,165 4-10 Find out the full Top 10 Hedge Funds Holding AAPL » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 144 most recent 13F filings for the 06/30/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 48 of these funds.
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14302.0
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2023-08-15 00:00:00 UTC
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US STOCKS-Futures slip as yields steady ahead of July retail sales data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slip-as-yields-steady-ahead-of-july-retail-sales-data
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.46%, S&P 0.37%, Nasdaq 0.27%
Aug 15 (Reuters) - U.S. stock index futures slipped on Tuesday as government bond yields held on to recent highs ahead of retail sales data for July which is expected to show resilient consumer spending and shed more light on the trajectory for U.S. interest rates.
The Commerce Department's report due at 0830 a.m. ET (1230 GMT) is expected to show retail sales increased 0.4% last month compared to a 0.2% rise in June, likely adding to evidence that the U.S. economy remains on a strong footing.
"All eyes will be on the U.S. retail sales figures later today which could add another piece to the puzzle that determines whether the Fed hikes one more time in 2023 or not," Lukman Otunuga, senior research analyst at FXTM, said in a note.
"Should price pressures continue to ease and U.S. economic data show signs of weakness, this may eliminate the odds of another hike, especially when factoring in the Fed's current data dependence stance."
Rising Treasury yields have pressured equities after data last week showing hotter-than-expected producer inflation stoked concerns that the Federal Reserve could keep rates elevated for longer than previously anticipated.
Still, the S&P 500 .SPX and the Nasdaq .IXIC ended higher in the previous session as Nvidia NVDA.O led gains among megacap growth stocks following a bullish note from Morgan Stanley ahead of the chipmaker's earnings next week.
On Tuesday, Nvidia was an outlier among major technology and growth stocks, rising 1.7% in premarket trade after UBS raised its price target on the stock.
Shares of Apple AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.2% and 0.5% with the yield on the 10-year Treasury US10YT=RR note at a nine-month high.
Tesla TSLA.O slipped 0.7% after the electric automaker introduced two cheaper versions of its Model S sedan and Model X SUV in the United States.
U.S.-listed shares of Chinese companies JD.Com JD.O, Alibaba Group BABA.N and Bilibili BILI.O slid between 0.3% and 1.3% following another round of disappointing economic data from China which prompted Beijing to cut key policy rates.
Investors will also monitor comments from Minneapolis Federal Reserve Bank President Neel Kashkari due later in the day for more clarity on the outlook for interest rates.
Traders' odds of a pause on hikes by the Fed at its September meeting currently stand at 89%, with a majority betting on rates to stay at that level for the rest of the year, according to CME Group's Fedwatch tool.
At 5:25 a.m. ET, Dow e-minis 1YMcv1 were down 161 points, or 0.46%, S&P 500 e-minis EScv1 were down 16.5 points, or 0.37%, and Nasdaq 100 e-minis NQcv1 were down 41.25 points, or 0.27%.
Among other stocks, shares of General MotorsGM.N fell 1.1% in premarket trade after Berkshire Hathaway BRKa.N cut its stake in the automaker.
(Reporting by Amruta Khandekar; Editing by Maju Samuel)
((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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Shares of Apple AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.2% and 0.5% with the yield on the 10-year Treasury US10YT=RR note at a nine-month high. Rising Treasury yields have pressured equities after data last week showing hotter-than-expected producer inflation stoked concerns that the Federal Reserve could keep rates elevated for longer than previously anticipated. Still, the S&P 500 .SPX and the Nasdaq .IXIC ended higher in the previous session as Nvidia NVDA.O led gains among megacap growth stocks following a bullish note from Morgan Stanley ahead of the chipmaker's earnings next week.
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Shares of Apple AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.2% and 0.5% with the yield on the 10-year Treasury US10YT=RR note at a nine-month high. Futures down: Dow 0.46%, S&P 0.37%, Nasdaq 0.27% Aug 15 (Reuters) - U.S. stock index futures slipped on Tuesday as government bond yields held on to recent highs ahead of retail sales data for July which is expected to show resilient consumer spending and shed more light on the trajectory for U.S. interest rates. Rising Treasury yields have pressured equities after data last week showing hotter-than-expected producer inflation stoked concerns that the Federal Reserve could keep rates elevated for longer than previously anticipated.
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Shares of Apple AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.2% and 0.5% with the yield on the 10-year Treasury US10YT=RR note at a nine-month high. Futures down: Dow 0.46%, S&P 0.37%, Nasdaq 0.27% Aug 15 (Reuters) - U.S. stock index futures slipped on Tuesday as government bond yields held on to recent highs ahead of retail sales data for July which is expected to show resilient consumer spending and shed more light on the trajectory for U.S. interest rates. Rising Treasury yields have pressured equities after data last week showing hotter-than-expected producer inflation stoked concerns that the Federal Reserve could keep rates elevated for longer than previously anticipated.
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Shares of Apple AAPL.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.2% and 0.5% with the yield on the 10-year Treasury US10YT=RR note at a nine-month high. "Should price pressures continue to ease and U.S. economic data show signs of weakness, this may eliminate the odds of another hike, especially when factoring in the Fed's current data dependence stance." Rising Treasury yields have pressured equities after data last week showing hotter-than-expected producer inflation stoked concerns that the Federal Reserve could keep rates elevated for longer than previously anticipated.
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14303.0
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2023-08-15 00:00:00 UTC
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2 Growth Stocks to Buy in August
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AAPL
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https://www.nasdaq.com/articles/2-growth-stocks-to-buy-in-august
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nan
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nan
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Earnings season is here, with countless stocks on the move. Companies are reporting their performance over the past three months, with many continuing to feel the effects of last year's economic downturn. However, poor market conditions won't last forever. Inflation has eased every month for the past year, rising just 0.2% from May to June. And the improvement is starting to be reflected in the earnings of e-commerce sales.
However, consumer spending on tech has continued to falter. As a result, it's crucial to keep a long-term perspective when investing and choose companies with a solid history of growth. Doing so can safeguard your investment against temporary headwinds and provide gains over time. Here are two growth stocks to buy now.
1. Apple
Apple (NASDAQ: AAPL) shares have tumbled 9% since Aug. 1 after the company reported declines in several of its product segments in the third quarter of 2023. The company's iPhone, Mac, and iPad segments experienced slips in revenue and brought total revenue down by 1% year over year.
The challenging quarter aligns with broader market conditions as U.S. smartphone shipments fell 24% and global PC shipments tumbled 13% in Q2. Apple has largely outperformed its peers in these sectors. However, it will likely take time for it to begin seeing product growth again -- that is, unless its coming releases, such as its iPhone launch in September, can bolster sales.
Despite the recent declines, Apple's annual revenue has risen 68% over the past five years, with operating income rising by 48%. Meanwhile, its stock has climbed 242% in the same period, more than those of tech companies such as Microsoft and Alphabet. Apple's history of growth and dominance in tech indicate it won't be down for long, making it an attractive growth stock to add to your portfolio this month.
With its booming services business that reported revenue growth of 8% year over year in Q3 2023 and a growing push into artificial intelligence (AI), Apple shares are an excellent option for anyone seeking a long-term investment.
2. Amazon
Amazon (NASDAQ: AMZN) has had a challenging few years, to say the least. The company's stock soared to record heights during COVID-19 lockdowns in 2021 as homebound consumers bought online goods in droves. However, macroeconomic headwinds in 2022 brought steep declines in Amazon's e-commerce earnings, made worse by comparisons to the previous year. As a result, the company's revenue has risen 121% over the last five years, but operating income has declined 2%.
However, Amazon's recent quarterly results suggest its retail business is back on a growth path. In Q2 2023, the company's North American segment hit $3 billion in operating income after reporting a negative $627 million in the year-ago period. The period represents the second consecutive quarter of the segment achieving profitability, with its international retail business also seeing continued improvements. The positive results have sent Amazon's stock rising 8% since its earnings release on Aug. 2.
Investors are increasingly bullish about Amazon's recovering e-commerce business and its quickly expanding position in artificial intelligence. Since June, the retail giant has unveiled several new AI tools to its cloud service, Amazon Web Services (AWS), and announced a venture into chip development which will see it take on Nvidia. AWS is the world's largest cloud platform, giving it an edge in the high-growth market. Meanwhile, an expansion into chips diversifies Amazon's role in AI and could see it profit significantly from the long-term development of the market.
Amazon's stock has risen 47% over the last five years. That figure may not be as impressive as Apple's five-year growth, but its current price remains 34% below the all-time high of $186 it hit in July 2021. The company has massive growth potential over the next year as it benefits from a recovery and a developing AI business, making its stock a strong buy this August.
10 stocks we like better than Apple
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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 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 Apple (NASDAQ: AAPL) shares have tumbled 9% since Aug. 1 after the company reported declines in several of its product segments in the third quarter of 2023. However, macroeconomic headwinds in 2022 brought steep declines in Amazon's e-commerce earnings, made worse by comparisons to the previous year. In Q2 2023, the company's North American segment hit $3 billion in operating income after reporting a negative $627 million in the year-ago period.
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Apple Apple (NASDAQ: AAPL) shares have tumbled 9% since Aug. 1 after the company reported declines in several of its product segments in the third quarter of 2023. Despite the recent declines, Apple's annual revenue has risen 68% over the past five years, with operating income rising by 48%. With its booming services business that reported revenue growth of 8% year over year in Q3 2023 and a growing push into artificial intelligence (AI), Apple shares are an excellent option for anyone seeking a long-term investment.
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Apple Apple (NASDAQ: AAPL) shares have tumbled 9% since Aug. 1 after the company reported declines in several of its product segments in the third quarter of 2023. Apple's history of growth and dominance in tech indicate it won't be down for long, making it an attractive growth stock to add to your portfolio this month. With its booming services business that reported revenue growth of 8% year over year in Q3 2023 and a growing push into artificial intelligence (AI), Apple shares are an excellent option for anyone seeking a long-term investment.
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Apple Apple (NASDAQ: AAPL) shares have tumbled 9% since Aug. 1 after the company reported declines in several of its product segments in the third quarter of 2023. And the improvement is starting to be reflected in the earnings of e-commerce sales. With its booming services business that reported revenue growth of 8% year over year in Q3 2023 and a growing push into artificial intelligence (AI), Apple shares are an excellent option for anyone seeking a long-term investment.
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14304.0
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2023-08-15 00:00:00 UTC
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Pre-Market Most Active for Aug 15, 2023 : TSHA, SQQQ, AAPL, AMD, TQQQ, SE, DASH, NVDA, AMC, NIO, APE, PLTR
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-15-2023-%3A-tsha-sqqq-aapl-amd-tqqq-se-dash-nvda-amc-nio-ape
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -70.49 to 15,135.1. The total Pre-Market volume is currently 43,201,105 shares traded.
The following are the most active stocks for the pre-market session:
Taysha Gene Therapies, Inc. (TSHA) is +0.3602 at $2.49, with 4,692,055 shares traded. As reported in the last short interest update the days to cover for TSHA is 7.34132; this calculation is based on the average trading volume of the stock.
ProShares UltraPro Short QQQ (SQQQ) is +0.28 at $19.14, with 4,348,249 shares traded. This represents a 16.85% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.71 at $178.75, with 3,250,202 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.37. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Advanced Micro Devices, Inc. (AMD) is -0.09 at $111.89, with 2,306,973 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -0.58 at $39.81, with 2,287,916 shares traded. This represents a 147.27% increase from its 52 Week Low.
Sea Limited (SE) is -8.65 at $48.25, with 1,511,801 shares traded. As reported by Zacks, the current mean recommendation for SE is in the "buy range".
DoorDash, Inc. (DASH) is -0.89 at $79.00, with 1,392,911 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 $-0.45. DASH's current last sale is 84.95% of the target price of $93.
NVIDIA Corporation (NVDA) is +8.87 at $446.40, with 1,367,962 shares traded. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
AMC Entertainment Holdings, Inc. (AMC) is +0.0202 at $3.41, with 1,062,971 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2024. The consensus EPS forecast is $-0.02. , following a 52-week high recorded in prior regular session.
NIO Inc. (NIO) is -0.26 at $12.26, with 821,767 shares traded. NIO's current last sale is 81.73% of the target price of $15.
AMC Entertainment Holdings, Inc. (APE) is -0.01 at $2.06, with 588,273 shares traded.
Palantir Technologies Inc. (PLTR) is -0.12 at $15.60, with 582,909 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $0.03. PLTR's current last sale is 124.8% of the target price of $12.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.71 at $178.75, with 3,250,202 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for TSHA is 7.34132; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is -0.71 at $178.75, with 3,250,202 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 43,201,105 shares traded.
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Apple Inc. (AAPL) is -0.71 at $178.75, with 3,250,202 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 43,201,105 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.71 at $178.75, with 3,250,202 shares traded. The following are the most active stocks for the pre-market session:
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14305.0
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2023-08-14 00:00:00 UTC
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After Hours Most Active for Aug 14, 2023 : BMY, BAC, AAPL, GOOGL, MSFT, CSCO, INTC, GOOG, TFC, KMI, NU, WMT
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-14-2023-%3A-bmy-bac-aapl-googl-msft-csco-intc-goog-tfc-kmi
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 2.63 to 15,208.22. The total After hours volume is currently 55,625,780 shares traded.
The following are the most active stocks for the after hours session:
Bristol-Myers Squibb Company (BMY) is +0.105 at $61.62, with 3,749,000 shares traded. BMY's current last sale is 81.62% of the target price of $75.5.
Bank of America Corporation (BAC) is -0.01 at $30.93, with 3,499,172 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.8. BAC's current last sale is 88.52% of the target price of $34.94.
Apple Inc. (AAPL) is -0.1016 at $179.33, with 2,399,878 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.37. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Alphabet Inc. (GOOGL) is +0.04 at $131.33, with 1,820,263 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.44. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Microsoft Corporation (MSFT) is +0.17 at $324.04, with 1,684,969 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".
Cisco Systems, Inc. (CSCO) is +0.02 at $53.88, with 1,617,699 shares traded.CSCO is scheduled to provide an earnings report on 8/16/2023, for the fiscal quarter ending Jul2023. The consensus earnings per share forecast is 0.95 per share, which represents a 74 percent increase over the EPS one Year Ago
Intel Corporation (INTC) is -0.01 at $35.68, with 1,341,543 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 $0.03. INTC's current last sale is 101.94% of the target price of $35.
Alphabet Inc. (GOOG) is -0.01 at $131.83, with 1,321,248 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.44. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Truist Financial Corporation (TFC) is -0.015 at $30.57, with 1,243,237 shares traded. TFC's current last sale is 78.38% of the target price of $39.
Kinder Morgan, Inc. (KMI) is -0.005 at $17.67, with 1,192,244 shares traded. KMI's current last sale is 88.35% of the target price of $20.
Nu Holdings Ltd. (NU) is +0.005 at $7.94, with 1,162,688 shares traded.NU is scheduled to provide an earnings report on 8/15/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 0.04 per share, which represents a -1 percent increase over the EPS one Year Ago
Walmart Inc. (WMT) is +0.06 at $160.00, with 1,081,390 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $1.68. WMT is scheduled to provide an earnings report on 8/17/2023, for the fiscal quarter ending Jul2023. The consensus earnings per share forecast is 1.68 per share, which represents a 177 percent increase over the EPS one Year Ago
The views and 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 -0.1016 at $179.33, with 2,399,878 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Cisco Systems, Inc. (CSCO) is +0.02 at $53.88, with 1,617,699 shares traded.CSCO is scheduled to provide an earnings report on 8/16/2023, for the fiscal quarter ending Jul2023.
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Apple Inc. (AAPL) is -0.1016 at $179.33, with 2,399,878 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.95 per share, which represents a 74 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.1016 at $179.33, with 2,399,878 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.95 per share, which represents a 74 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.1016 at $179.33, with 2,399,878 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". BMY's current last sale is 81.62% of the target price of $75.5.
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14306.0
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2023-08-14 00:00:00 UTC
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Should You Buy the Dip in Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/should-you-buy-the-dip-in-apple-stock
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nan
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nan
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Apple (AAPL) has been a bona fide wealth creator for its investors over the years. The Cupertino-based tech titan has launched numerous revolutionary products that have significantly changed the way we lead our lives - including industry-leading smartphones (iPhone), tablets (iPad), smartwatches (Apple Watch), personal computers (Macbook, iMac) and services (Apple Music, Apple Pay). With a devoted user base and widespread adoption across the globe, Apple became the first U.S. company to achieve a trillion-dollar market cap in August 2018.
In 2023 so far, Apple stock is up 38%, outperforming the S&P 500's ($SPX) rise of 16.7% and the 31% surge of Nasdaq ($NASX).
However, signs of slower iPhone demand in Apple's latest quarterly report sent the stock sharply lower the session after earnings, and AAPL has yet to fill its bear gap on the charts.
www.barchart.com
So, as the shares trade near two-month lows, is Apple a buy right now - or is it too soon to jump on the stock's post-earnings weakness?
Muted Results for the Latest Quarter
Apple's results for fiscal Q3 topped expectations, but investors sold the news on indications of a revenue slowdown that may extend to Q4. Total net sales for the quarter came in at $81.8 billion, down 1.4% from the previous year (versus the consensus estimate of $81.69 billion). EPS grew by 5% from the previous year to $1.26, which also came in above the consensus estimate of $1.19.
Notably, product sales at the end of the third quarter stood at $60.6 billion, down 4.4% from the year before. Sales of iPhones were down 2.5% year-over-year to $39.7 billion in the quarter, and below the consensus estimate of $39.91 billion.
Apple's revenues have followed a fairly predictable cyclical pattern in recent years, as sales peak in the September and December quarters, and then taper off through the rest of the year. The expected launch of new iPhone models and the holiday season are key drivers for this annual trend. However, Apple compounded the blow of its iPhone sales miss by warning that it expects to announce another year-over-year revenue decline for its September quarter.
The fall in iPhone sales, which still makes up almost half of the company's total quarterly net sales, can be attributed to two reasons. First, higher inflation and interest rates have shifted the spending habits of many potential customers away from discretionary purchases like smartphones in 2023. Second, the new iPhone 15 models are set to launch in September, as per Apple's tradition. Consequently, customers may have delayed iPhone purchases during the quarter at a higher rater than normal.
Critically, sales in the U.S. market - which is the company's largest, in terms of revenue - fell 5.6% from the prior year to $35.4 billion. Sales in the Asia Pacific segment - which includes India, a market the company is betting on heavily to drive sales growth - were down 8% to $5.6 billion.
Worryingly, on a nine-month basis, the company's cash generation from its operating activities fell 9.3% from the prior year to $88.9 billion.
However, growth in revenue from services emerged as a bright spot for the company. Services net sales grew by 8.2% from the prior year to $21.2 billion, and came in above the consensus estimate of $20.76 billion.
Valuation
In terms of personal computing, Apple appears to be relatively overvalued when compared to its peers. Apple is currently trading at a forward p/e of 29.37, p/s of 7.34 and p/cf of 24.58, all of which are much higher than the comparable p/e, p/s and p/cf of Dell (DELL) (19.22, 0.43 and 7.37), and HP (HPQ) (11.04, 0.58 and 11.07), respectively.
Alphabet (GOOGL) might be the biggest competitor of Apple in terms of smartphones and mobile operating systems. Here too, Apple appears to be more richly valued when compared to its fellow tech giant. Alphabet is currently trading at a forward p/e of 23.17, p/s of 5.75 and p/cf of 16.51.
Analyst Estimates
Analysts are expecting Apple's earnings to grow 6.2% and 9.04% in the current quarter and next quarter, respectively. After an overall 0.98% decline in earnings for FY 2023, the consensus is calling for a return to 8.93% growth in fiscal 2024.
www.barchart.com
Overall, analysts remain cautiously optimistic about Apple stock. The consensus rating is “Moderate Buy” with a mean target price of $205.07, indicating an upside potential of about 14% from current levels. Out of 29 analysts covering the stock, 18 have a “Strong Buy" rating, 3 have a “Moderate Buy” rating and 8 have a “Hold” rating.
www.barchart.com
Final Takeaway
Apple has revolutionized the consumer tech industry. Each time Apple has debuted a new product, whether it has been the Macbook or the iPhone, a tectonic shift has been experienced in the way consumers use tech in their daily lives. Although the company charges a premium for its devices, the utility has far outweighed the cons for many loyal consumers.
However, Apple has slowed down somewhat in terms of its product innovation in recent times. Its mixed-reality headset - the Vision Pro, announced in June 2023 - was its first new product in a long while. However, I believe the headset, which will tentatively be available in early 2024, will take some time to gain traction among consumers, even hardcore loyal Apple enthusiasts - due to its price point as well as the nascent stage of adoption for the wider metaverse space.
Moreover, a slowdown in sales of its flagship product - the iPhone - coupled with expensive valuations and persistent economic headwinds, makes me skeptical about adding Apple to my portfolio, at least for the near term at current levels.
However, I believe the company's innovative DNA makes it a good long term buy, which will eventually propel the stock to newer heights. So my suggestion is for investors to stay on the sidelines until AAPL retracts further and then initiate an averaging down investment strategy.
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, signs of slower iPhone demand in Apple's latest quarterly report sent the stock sharply lower the session after earnings, and AAPL has yet to fill its bear gap on the charts. Apple (AAPL) has been a bona fide wealth creator for its investors over the years. So my suggestion is for investors to stay on the sidelines until AAPL retracts further and then initiate an averaging down investment strategy.
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Apple (AAPL) has been a bona fide wealth creator for its investors over the years. However, signs of slower iPhone demand in Apple's latest quarterly report sent the stock sharply lower the session after earnings, and AAPL has yet to fill its bear gap on the charts. So my suggestion is for investors to stay on the sidelines until AAPL retracts further and then initiate an averaging down investment strategy.
|
Apple (AAPL) has been a bona fide wealth creator for its investors over the years. However, signs of slower iPhone demand in Apple's latest quarterly report sent the stock sharply lower the session after earnings, and AAPL has yet to fill its bear gap on the charts. So my suggestion is for investors to stay on the sidelines until AAPL retracts further and then initiate an averaging down investment strategy.
|
Apple (AAPL) has been a bona fide wealth creator for its investors over the years. However, signs of slower iPhone demand in Apple's latest quarterly report sent the stock sharply lower the session after earnings, and AAPL has yet to fill its bear gap on the charts. So my suggestion is for investors to stay on the sidelines until AAPL retracts further and then initiate an averaging down investment strategy.
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14307.0
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2023-08-14 00:00:00 UTC
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Netflix to make its games playable on more devices
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AAPL
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https://www.nasdaq.com/articles/netflix-to-make-its-games-playable-on-more-devices
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nan
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nan
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Aug 14 (Reuters) - Netflix NFLX.O will test games on select TVs and computers in a first step to make them playable on more devices, the company's vice president of Games Mike Verdu wrote in a blog post on Monday.
The company is rolling out a limited beta test to a small group of members in Canada and the United Kingdom on select TVs starting Monday, and on PCs and Macs through Netflix.com on supported browsers in the next few weeks.
The streaming platform had begun its push into the gaming experience by launching Netflix games on mobiles in November 2021. So far, the company's titles have only been available on Apple's AAPL.O iOS and Alphabet's GOOGL.O Android.
"Oxenfree" from Night School Studio, a Netflix Game Studio, and "Molehew's Mining Adventure", a gem-mining arcade game, will be part of the initial testing.
Users can play the games on TV using their phones and those on PCs and Macs can play on Netflix.com with a keyboard and mouse.
"By making games available on more devices, we hope to make games even easier to play for our members around the world," Verdu said.
Netflix said games on TV will operate on select devices from initial partners Amazon Fire TV Streaming Media Players, Chromecast with Google TV and Roku devices, among others.
In March, the company had said it had a content slate of 40 more games scheduled for later this year and 70 in development with its partners, which would be in addition to the 16 games currently being developed by its in-house game studios.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri)
((Samrhitha.A@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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So far, the company's titles have only been available on Apple's AAPL.O iOS and Alphabet's GOOGL.O Android. Aug 14 (Reuters) - Netflix NFLX.O will test games on select TVs and computers in a first step to make them playable on more devices, the company's vice president of Games Mike Verdu wrote in a blog post on Monday. The company is rolling out a limited beta test to a small group of members in Canada and the United Kingdom on select TVs starting Monday, and on PCs and Macs through Netflix.com on supported browsers in the next few weeks.
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So far, the company's titles have only been available on Apple's AAPL.O iOS and Alphabet's GOOGL.O Android. Aug 14 (Reuters) - Netflix NFLX.O will test games on select TVs and computers in a first step to make them playable on more devices, the company's vice president of Games Mike Verdu wrote in a blog post on Monday. "Oxenfree" from Night School Studio, a Netflix Game Studio, and "Molehew's Mining Adventure", a gem-mining arcade game, will be part of the initial testing.
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So far, the company's titles have only been available on Apple's AAPL.O iOS and Alphabet's GOOGL.O Android. Aug 14 (Reuters) - Netflix NFLX.O will test games on select TVs and computers in a first step to make them playable on more devices, the company's vice president of Games Mike Verdu wrote in a blog post on Monday. Netflix said games on TV will operate on select devices from initial partners Amazon Fire TV Streaming Media Players, Chromecast with Google TV and Roku devices, among others.
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So far, the company's titles have only been available on Apple's AAPL.O iOS and Alphabet's GOOGL.O Android. Aug 14 (Reuters) - Netflix NFLX.O will test games on select TVs and computers in a first step to make them playable on more devices, the company's vice president of Games Mike Verdu wrote in a blog post on Monday. The streaming platform had begun its push into the gaming experience by launching Netflix games on mobiles in November 2021.
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14308.0
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2023-08-14 00:00:00 UTC
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Investors Look at Apple, Amazon, and More
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AAPL
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https://www.nasdaq.com/articles/investors-look-at-apple-amazon-and-more
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nan
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nan
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In this podcast, Motley Fool host Dylan Lewis and senior analysts Jason Moser and Bill Mann discuss:
Fitch downgrading U.S. credit and why it shouldn't worry investors.
How slowing iPhone sales are weighing on Apple, and how AWS keeps cruising for Amazon.
Surprise profits from Uber, impressive traffic from Wingstop, E.l.f. Beauty's epic quarter, and how PayPal might not go anywhere until it announces a new CEO.
Two stocks on the radar: Topgolf Callaway Brands and Outset Medical.
Motley Fool contributor Rick Munarriz weighs in on the state of Disney's Marvel and whether it can recapture the box office magic any time soon.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on August 04, 2023.
Dylan Lewis: Fitch weighs in on US credit, Motley Fool Money starts now.
It's the Motley Fool Money radio show. I'm Dylan Lewis. Joining me in studio are Motley Fool Senior Analysts, Jason Moser, and Bill Mann. Guys, great to have you here. Hey.
Bill Mann: Hey Dylan.
Dylan Lewis: We've got updates from the biggest companies in the world and a breakdown on what's happening at the box office. But we're going to start today looking at the big macro and a headline that I have to admit was a bit of a surprise for me, credit rating agency, Fitch downgraded US debt to AA-plus from its previous Sterling rating of AAA. Bill, I have a layman's understanding of credit rating and to be honest, US debt. Can you walk me through what's happening here?
Bill Mann: Well, it's big in one certain way, the U.S. treasury notes and bills are the baseline for the entire credit market and a lot of people don't really realize it, but this is a much bigger market than the equity markets. What we're talking about here is an amount of debt for the US government that costs about a trillion dollars a year just for us to service. The stock market didn't take these dues very well. The US credit was downgraded from AAA, which means that there's almost no chance under any circumstances that there would be a default to AA-plus, which is still summa cum laude. That means [laughs] there is maybe a little tiny bit more chance that it's going to default. It's symbolic, it is a meaningful symbol simply because it is such a large part of the global economy as the underpinning of the reserve currency but it's not that big of a deal. We are several steps above almost every country in the world. We're behind Switzerland and Singapore now.
Dylan Lewis: I believe there's eight that currently have AAA ratings, maybe nine.
Jason Moser: It's eight or nine.
Bill Mann: Yeah, exactly like Luxembourg countries that you're like, yeah, their money is good. Our money is basically good. We're tied with Canada now and we like Canada.
Jason Moser: It's a great place to be.
Dylan Lewis: I think Jamie Dimon was calling out that Canada comp there in his interview here earlier this week. He was like listen, this is no big deal. Grand scheme of things. The market determines rates not these ratings agencies, but it felt like it was more for optics. You seemed like you were hinting toward that and it seems like it just felt like this is more for optics.
Bill Mann: Well, I did say $1 trillion and that's in debt servicing that the US government has to pay each year at this point and I don't know if you guys know this, but that's quite a lot of money.
Jason Moser: That's a big figure.
Bill Mann: That is a big figure. But Warren Buffett came out and he said, look, we bought $10 billion at Berkshire in treasuries last week. This next week we're going to buy $10 billion, again in treasuries. It's a little strange being below Singapore, and Sweden, and Johnson & Johnson, but it's really not that huge of a deal. I side with Warren Buffett on this one. I don't know if you know this, that's always a pretty safe side.
Dylan Lewis: Yeah, that's a good side of things to be on. That was, I think in a lot of ways, the macro story of the week. But I also want to zoom in on one that either people missed or if you saw it might've been a little frightening and that's that Kansas Heartland Tri-State Bank was closed by the FDIC, marking another bank failure for 2023. I think we all have a little bit of bank failure trauma going on and we're thinking a lot about this. It seems though, Bill, like this one maybe is different than some of the past ones.
Bill Mann: It's funny because a lot of different media organizations came out and said, banking crisis continues. Now, I have to say, we're talking about a tiny bank and if you look at where it is on the map, it is basically where Oklahoma, and Kansas, and Colorado come together. This bank is not on the way.
Dylan Lewis: Say more about that.
Bill Mann: I think a lot of people were looking at this because they were worried so much after the failure of Silicon Valley Bank that there was going to be a crisis among these community banks so this was a bank that failed and it failed in a very spectacular way $139 million portfolio and they ended up with an insured loss of $54 million which should tell you something very specific, that this was event-driven and not macro-driven, and in fact, they got hit by a scam.
Dylan Lewis: Oh, really.
Bill Mann: Yeah, so we don't really know the details of the scam yet, but it's really important to note for anybody who paid attention to this story at all and everyone did for about five minutes and they did their run around the room with their hair on fire and then got onto the next thing. But this is not another node of a banking crisis. It is simply a small bag that got incredibly unlucky.
Dylan Lewis: Basically, big picture for both of these two macro headlines we just talked about. Don't worry too much about them. I think you can maintain your sense of comp.
Bill Mann: Did you did you just shorten the five minutes I used down into a sentence? I think you did.
Dylan Lewis: I tried to. That is my job, Bill.
Jason Moser: It's the Bobby McFerrin, Don't Worry, Be Happy.
Bill Mann: That's truly the case in this issue with the tiny bank. It's not a portend to hundreds of other banks failing, but it does speak to a little bit a vulnerability in the US. We have more than 4,800 banks in this country and some of the small banks I think that they may be vulnerable to scams into the increasingly sophisticated criminal scams that are out there.
Dylan Lewis: This week we also got updates from, I think, two of the biggest companies that move the US economy. We got Apple and Amazon earnings. Jason, Apple did something that it has not done since 2016 this earnings season, it posted its third consecutive quarter of revenue declines. The story seven years ago was struggling iPhone sales. History has a habit of repeating itself. We are in the same spot again here.
Jason Moser: Sure. I think the big focus is on the slowing revenue as you said. The third straight quarter of declining year-over-year revenue. I think that's just part of the ebb and flow of this business. It's gotten so big through the years thanks to that lightning in a bottle that is the iPhone. Remember too, there are some currency impacts that point to this, so you can fiddle with the numbers however you really want. But I do think it'd be whose investors to remember that Apple does a lot of things well, I think that it's greater than the sum of its many impressive parts. When you look at the numbers, they're leading up to this release of this new iPhone toward the end of the year, overall revenue down just 1%, but that included four percentage points of currency headwinds. iPhone revenue, as you mentioned down 2% Mac revenue down 7%, iPad is down 20. Wearables, home accessories up 2%. I think the real story here we've been talking about Apple as a services business and this quarter that really panned out well for them, services revenue up 10%. They've passed one billion total paid subscriptions. Now they added 150 million from a year ago, I think that's a big part of the story here is they're really doing a good job of monetizing that massive installed base. That massive installed base isn't going anywhere.
Bill Mann: At least part of it for me is that for the first quarter in a long time, I didn't have to replace a pair of AirPods [laughs].
Jason Moser: Like you I never bought it.
Dylan Lewis: Thank you for boosting the AirPods.
Jason Moser: I never bought into the AirPods, trying to minimize the amount of charging in my life. Hey, listen, you talk about wearables and things like that, right at probably everybody wants to know about the VisionPro. You have to really look farther down the road in regard to the VisionPro. That's not going to be anything meaningful for this business for quite some time. They're just shipping it out to developers now. It's just getting started.
Dylan Lewis: Jason, I mentioned that seven-year look before and how we are in a period that looks awfully similar to 2016. Back then, Apple did not have this incredibly strong services business, and it's benefited from that growth over the last seven years. Stocks up over 500% since 2016. Where does the growth come from in the future to offset some of the reliance that this business has in the iPhone segment?
Jason Moser: I think you look at two things. Number 1, you look at the way they continue to return capital to shareholders. Those share repurchases do have an impact over the longer haul. Share count down 17.5% since 2018 alone. Also, look toward India like we've been talking about China over the last decade as the opportunity for Apple, and that's worked out very well. Look further down the road, ten years down the road here at the opportunity that I think is a bubbling up here in India because I think that will be material as time goes on.
Bill Mann: Apple is at 33 times sales, where in the last time it had three consecutive quarters of negative growth which is a weird. But there we go, I'm rolling with it. It was at 16 times sales. One of those things really needs to happen because those two elements don't make sense in common.
Dylan Lewis: Bit of a different story when we look at results from Amazon. Shares up 10% after the company reported earnings well ahead of expectations and built 11% revenue growth. Incredible for a company that size.
Bill Mann: Who's had a good day today?
Dylan Lewis: Amazon shareholders.
Bill Mann: Jeff Bezos is up $12 billion today, that's not half bad. Some of the numbers from Amazon almost truly defy understanding $134 billion in revenue, 7.7 billion in operating income. They've also dramatically lowered their costs through something that they've called regionalization. I don't know if they made up the word. That's what they're rolling with. It was a 1000-basis-point gain. Almost 76% of the packages that they deliver were fulfilled in the region from which they were ordered. They're doing an incredible job at lowering their overall cost structure for a company that if you looked at them five years ago, you would have said they're efficient and they've gotten more and more efficient as time has gone by.
Dylan Lewis: One of the things I wanted to zoom in on with Amazon results is the AWS segment, their Cloud segment, I believe responsible for about 70% of their operating profits. AWS revenue up 12% in the quarter, down from 16% previous quarter. AWS is the leader in enterprise Cloud. I believe they've like 40% market share, something crazy like that Bill. Do we see more applications and usage coming? Or is this the amount of market that they're going to be able to grab here?
Bill Mann: Well, I would say that they're probably at the level that they, you will see in terms of market share. But one of the other things that they were talking about is that every component of the business, Andy Jassy said the words artificial intelligence or AI, something on the order of 5,000 times during the conference call.
Dylan Lewis: Rough rounding. Yes.
Bill Mann: Rough rounding. Exactly. I may be exaggerating, I may not be. AWS plus those AI initiatives inside of the company and outside of the company, it almost doesn't matter what their share is, because that pie is just almost guaranteed to grow exponentially over the next decade.
Dylan Lewis: [MUSIC] Coming up after the break, we've got surprising profitability from one company and another that's posting rate growth without meaning I'm price increases. Stay right here. This is Motley Fool. Fool-on. Welcome back to Motley Fool Money. I'm Dylan Lewis joined in studio by Jason Moser and Bill Mann. We have some updates from a couple of other companies with some surprising storylines. We're going to start with Uber. Bill, this is a business that has been notoriously unprofitable for most of its operating history. But it reported its first-ever operating profit in the second quarter. Would push the company into the black.
Bill Mann: Did you not love Dara Khosrowshahi's, nobody believes in us. [laughs] It seems like a movie moment almost.
Bill Mann: I believe. He actually said it. Many observers boldly claimed we would never make any money.
Dylan Lewis: Yeah.
Bill Mann: Scoreboard. Don't pay attention to the $31 billion in cumulative operating losses since 2014, we're making money now.
Dylan Lewis: It's all about looking forward.
Bill Mann: Yeah. It was a good quarter for them. If there is a follow-through from this moment, it's a big moment for them. They show robust demand. They've got some good growth initiatives. Domino is allowing Uber Eats to start delivering pizzas. That's actually a big deal. Their gross bookings were up 16%. All of that was good and they did in fact, make an operating profit. Fantastic. I don't want to sound too cynical.
Dylan Lewis: Yeah, but you're going to.
Bill Mann: I have appreciated all of the venture capitalists funded rides that I had for mover over the last decade. This positive cash flow comes to the cost of some massive share-based compensation. But all-in-all, it's a good job for them. I in fact did not believe, and now apparently I have to eat my words.
Dylan Lewis: I've noticed recently without that venture capital funding, my Uber Rides have gotten a little bit more expensive Bill. I think it's one of the consequences we're seeing here. One place that I think consumers are not seeing prices go up is that Wingstop, a very well-known wing restaurant chain.
Bill Mann: It's a great segue.
Dylan Lewis: Jason, I do what I can. That didn't even have that one in the notes. But so far Jason, the story with restaurants has been pricing power and that we've seen a lot of impressive results on the pricing side, not so much on the traffic side. Different story with Wingstop.
Jason Moser: Yes. I love that. We were discussing this in production about how Wingstop is held off raising prices for the sake of maintaining value and how does that play out versus companies that have been leaning more into pricing. Obviously, Chipotle stands out as one that has been. I think you could argue that with Wingstop it's working out very well for them. Systemwide sales were up 27.8%. Domestic same-store sales up 16.8%.
Bill Mann: Incredible.
Jason Moser: Just put that together, if your same-store sales were up that much, and it's not because you're raising prices. Why is it? It's because people were going there and buying stuff. It's traffic. Clearly leaning into that value offering is worked out very well for Wingstop. Domestic restaurant volumes have exceeded $1.7 million. That's up from just under $1.6 million a year ago. This is a digital company. Digital sales increased to 65.2% of total sales. You just look at what this company is doing and then at the end of the stock is up like 230% over the last five years. Bill, is this another Buffalo Wild Wings in the making?
Bill Mann: The American eater is undefeated. I think it's where we need to take this. It really may well be. You're talking about a part of the industry where it is mostly mom-and-pop type restaurants. One or two in a chain. Wingstop they've got a formula that is working very well.
Jason Moser: Important to note, they posted these results and it's not even football season. Golfing game was this week, football season starting up could get even better for them as we head into the part of the year where people thinking about wings. I had to double-check the results looking at the accompanying E.L.F Bill because companies up 10% post-earnings, company posted 75% top-line growth. I wasn't sure that that number was accurate.
Bill Mann: Thank you for not calling it elf this time. E.L.F. stands for eyes, lips, and face and it is the third largest of what they'd call the mass market cosmetics industry player in the United States. One of my favorite interviews of the last couple of years was from 2020 when I interviewed their CFO, Mandy Fields, and she just talked about their program and it is working fantastically. They're in stores like Target is a big place for them. Their stock's been an eight bagger since then, so it's not as if they are a turnaround, this is a company that is firing on all cylinders.
Dylan Lewis: Is that Ron Gross on the show? You sounded like Ron Gross there for a second. Bill, I want to ask, this company is at a PE of over 70. We're obviously seeing some incredibly impressive results in the top line. Does it feel like that's warranted?
Bill Mann: I get a little nervous whenever I see a company that is that expensive versus what it's doing right now. They still have a rather small segment or market share of the cosmetics market in this country, and they are mostly in the United States, so they have a fantastic opportunity in front of them. Now, cosmetics, an incredibly competitive sector, absolutely, it's a knife fight.
Dylan Lewis: Slightly different reaction to the results that we saw from PayPal. Shares down 12% after earnings came out, despite top and bottom line coming in roughly where the market was expecting them. Jason, the market did not like the company's update on margins and the outlook for the rest of the year though?
Jason Moser: Yeah. Well, I would say it does feel like this company could have just taken the entire year off of reporting earnings and just picked back up when they announced a new CEO because I think that is something that is really being held against them and rightly so. This is one of the biggest storylines I think. It's a well-established business. Obviously a lot of people and businesses around the world, but it's going through some growing pains and at the same time it's waiting for a new leader to take the reins then we'll understand the focus and the priorities going forward, but the results they fell in line with management's guidance, total payment volume $376.5 billion, up 11%. You look at the metrics that matter, 6.1 billion payment transactions, that was up 10%, 54.7 payment transactions per active account on a trailing 12 month basis, that was up 12%, 431 million active accounts now up from 429 million a year ago. They're doing the right things and they view buy-now, pay-later as this big opportunity going forward, but a lot of investments in the business pressuring those margins and certainly that is a focus for investors.
Dylan Lewis: Jason Moser, Bill Mann. Fellows, we'll see you a little bit later in the show. Up next, we've got to look at whether one of the big screens, biggest brands can get back its mojo. Stay right here, you're listening to Motley Fool Money.
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Dylan Lewis: Welcome back to Motley Fool Money, I'm Dylan Lewis. This weekend, Greta Gerwig's Barbie will likely pass $1 billion in global box office, joining the Super Mario Brothers movie, it's becoming the second film this year to pass the milestone. Marvel Studios and Disney are used to pushing out box office darlings, they've had many since the creation of the Marvel Cinematic Universe, but success for the MCU has been a bit harder to find recently. Motley Fool analysts Rick Munarriz has been a longtime fan of Disney stock and Disney intellectual property. He joined me to check in on the state of Marvel and whether they'll have another hit any time soon.
Let's dive right in here, what exactly is the state of Marvel and Disney's IP library right now? Because I look at the box-office rankings and I look at some of the reception for their latest launches and it seems like some of the shine has come off of their releases.
Rick Munarriz: Yeah, it is not good and the recent results are not encouraging and I'm bringing receipts, I have box office receipts. A lot of Disney's different franchises are not working well, but specifically the Marvel, the last Disney Marvel movie, it fared pretty well first glance, this is Guardians of the Galaxy, Volume 3. It came out in early May. Fun movie. I enjoyed it. Generated $359 million in domestic ticket sales and 845 million globally, so that's worldwide, it was very profitable. But then we go back to Volume 2, the second installment in the franchise, 2017, six-years earlier, it was $390 million at the US and 864 million worldwide. Not much, but bear with me. The movie before that, last Marvel Cinematic Universe movie was Ant-Man Quantumania, which sounds more like an album by The Who than a movie, but 215 million domestically and 476 million globally. The second movie in the franchise came up five-years ago in 2018, 217 million stateside, but 623 million worldwide, so clearly lost a lot of juice overseas. These figures, they're just 1% to 24% lower than the previous franchise installments, but it's worse than that because we're talking about ticket sales, were talking about ticket revenue, the total revenue, ticket prices in 2017 and 2018, they're about $9 per person in the US, today there are 15-20% higher. It's not just a 1-24% decline in attendance, we're talking about at least less than 20% fewer people saw these movies, the third installment of the Guardians of the Galaxy and the Ant Man movie than they did the second movie. It's not just this, last year, the top Marvel movie was Wakanda Forever, again, a solid movie, well-liked by critics, but if faired substantially worse than the previous Black Panther movie that came out four years earlier. Clearly, the trend is not going in the right direction for Disney's Marvel Universe and so many of their other franchises.
Dylan Lewis: Rick, you follow Disney as a stock, you also are a fan of the space and someone who enjoys entertainment, enjoys the parks, can you talk a little bit maybe from the fan perspective here on what's going on and why we're seeing some fade here?
Rick Munarriz: It's not just a Marvel fatigue. Did you see The Flash, Dylan?
Dylan Lewis: I did not.
Rick Munarriz: I didn't either and I saw the previews, it's time jump and then I said, "Wait. Michael Keaton's coming back as batman? I got to see this." The movie came in the theaters two months ago and it went $108 million in ticket sales, so it's going to be a big chart from Warner Brothers Discovery, the one that owns the DC Comics. Spider-Man, that is the one franchise and Marvel that's doing well, unfortunately, it's not put out by Disney. Sony's Columbia Pictures puts out the Spider-Man movie. Spider-Man, No Way Home, which was the top box office draw in this country in 2021. The animated, Across the Spider-Verse that came out earlier this year, which is the highest-grossing superhero released domestically, again, these are not Disney movies. For Disney and Marvel, it's time to recalibrate ourselves, our expectations what's happening here. Disney also lost James Gunn, and if you're a comic book fan, you know James Gunn, he's this brilliant director and writer. He has controversies, he has unfortunate tweets way back in the day. But beyond that, he's the one that put Guardians of the Galaxy and the map and now he's a big wig heading up DC Comics over at Warner Brothers, so you're losing some of your key personnel and you're also just losing steam with the audience, they're just tired of what they're seeing before it's getting too predictable.
Dylan Lewis: You mentioned adjusting expectations a little bit. When you take a step back and look at Disney, the business, it's easy to get lost in the Marvel, a Disney property, but when we look at Disney, the business, where does the Marvel IP library sit in terms of the thesis and just your expectation?
Rick Munarriz: Marvel's just like Lucasfilm or properties that Disney paid about $4 billion for each one and was able to milk a lot of money out of it. There's obviously very successful looking back great deals, but we're at the point now where while Marvel is very important, it is not as important since basically Avengers Endgame in 2019, it's been an a lull. 2019 was that year when Disney had the six highest grossing us films that year, it's nowhere close. It doesn't have any of the top three this year. We're getting to the point where with Marvel specifically, the properties are there, everyone knows the characters, if you go to the theme parks, well, not so much in Florida, but in California where they have Marvel's Avengers campus there with a Spider-Man ride, with a Guardians of the Galaxy free-fall ride. It is very important to them that the Marvel ecosystem is fresh and relevant to consumers because it would cost a lot to repurpose rides and land and the same thing that could keep milking it with consumer products. Disney ecosystem is built for that, but they're at the point right now where they need to crack the code, they need to make the experience fresh and I think that's what's happening. You're seeing movies that have succeeded, you mentioned Barbie, second only to Mario Brothers, Super-Mario Brothers was just absence makes the heart grow fonder thing where we hadn't seen Mario on the big screen in so long, that didn't work for Indiana Jones for Disney this summer, but that's one way. Of course then there's all Barbie phenomenon which is, as you pointed out, is basically them taking this property where your expectations are, it's a Barbie movie, I know exactly what I'm going to see and giving you something completely different, retelling the narrative in a whole different way. Totally unexpected unless you knew what you're coming into with the Barbie movie, I think they need to do that with their Marvel properties and all the other IPs that are going still right now.
Dylan Lewis: Looking at what they have in terms of upcoming releases over the next couple of years, we had the benefit of that because they like to project these things out for us, there may be some reasons to be optimistic. They have the Marvel's, they have another Deadpool movie coming out, they have another Captain America movie coming out, I think two more Avengers movies coming out, of those, are there any that you're thinking this may be a title where they can recapture some of that magic?
Rick Munarriz: Earlier this year, I would have told you the Marvel's because it comes out in November, so it comes out at that where just before the holidays, usually a good time to release a movie. It's when Black Panther, Wakanda Forever was released and the original Black Panther. Movies can hit well then, but it's following the same stale formula that they've used a lot with Marvels, let's just have one character, but putting all these other characters from other franchises in there to get people excited and I think they need something more than that. The Marvels, while you asked me maybe a year ago and when I saw the first trailer and it's like, oh, there's cool character time jump and all these things are happening, it seems very interesting. I don't think it'll be the next billion-dollar releases for Disney to break it from that slump. Hopefully I'm wrong because the whole Captain Marvel thing is a valuable franchise, but to me, it seems like consumers are just hesitant right now to go see a Marvel movie put up by Disney until they've proven that, hey, you're going to give me something that is not something that I know I can watch on Disney+, 2, 3 months later without missing anything.
Dylan Lewis: Let's talk a little bit about the streaming side of this too. You just mentioned Disney+ there, Rick. Do you think some of the fatigue is the combination of what we've seen in terms of just this incredible number of box office releases, but also all these streaming releases and just the complexity of these universes?
Rick Munarriz: I think it is. I think you get to the point where there's always something good to see at home on TV. You know that there's always something streaming and Disney+, of course, since the release windows have narrowed, and I'll tell you, there's nothing like seeing a movie in a big screen. I saw Oppenheimer earlier this week in a 70 millimeter screen, I saw Barbie the week before that at the largest Disney screen at the AMC 24 there and I went on a Monday night after the opening weekend thinking, it was hard to get tickets even for that and a very big theater and the moment where we start to AMC has a thing where Nicole Kidman starts walking down the stairs and we come here to be that whole thing, the audience started applauding, and I'm, I don't know if they're clapping because they're Nicole Kidman fans or because they think the movie is about to start, but there was excitement there. I really haven't seen that excitement for a Disney movie, Haunted Mansion, which opened last week, clearly not doing well, but as far as the Marvel's go, I hope it does well. I don't think it's going to flop the way, let's say in Indiana Jones did because even the worst of the Marvel movies, they may not make back their production and their distribution cost initially, but at least they're not going to be $150 million in the US like Indiana Jones and the Dial off Destiny was this summer. If the Marvels doesn't do it, I think we may be down to the Avengers at this point because we know that Guardians of the Galaxy, with James Gunn moving on, that franchise is going to be hard to sustain.
Dylan Lewis: You've used the word milked to talk about the relationship a couple of times while we've been talking here and I think anyone with IP looks at Marvel and the Marvel Cinematic Universe and really sees a playbook for making money on things that they own the rights to. It also seems like consumers are increasingly aware of the game that's being played here. Do you think that this can be replicated by other people who own valuable IP like Barbie or like some of the other players out in entertainment?
Rick Munarriz: I think you can. Obviously, with Barbie, Mattel is basically going through their whole toy line and saying, OK Polly Pocket, and they're just going through everything and they're going to try to basically catch this Aladdin genie in a bottle, so to speak again. The problem is that Disney hasn't learned its biggest mistake is that too much of a good thing can be a bad thing. It's 24 summers ago, I'm going to take you away from the Marvel world, I'm going to take you to Regis Philbin, to Who Wants To Be A Millionaire. Summer of 1999, there was a UK hit game show, Who Wants To Be A Millionaire. Anybody who's as old as me, note remembers it and it was a hit. It was such a big hit that they brought it back the following year and then it played one night, then two nights, then three nights. I believe it played four nights a week because ABC had nothing going on to the point that they just got Who Wants To Be A Millionaire fatigue and people just didn't want to do it anymore. I think you're seeing that happen now, not just with Disney. Maybe they went to this Toy Story well, one too many times with Lightyear based on last year's disappointment. This year, did we need a tenth Fast and the Furious movie? Because it did worse than the ninth movie. That ninth movie came out in 2021 when a lot of people were afraid to go to movie theaters. I don't think it's just a Disney Marvel thing, I think we're seeing Dreamer's Animation Shrek Two was their peak, was financial peak of the Shrek franchise and that thing just keeps going. I think it's Hollywood, not just Disney that can keep a franchise on top consistently sustainably. I just think it's important for all companies that once you get that first wave of a dip, not that you have to throw in the towel, but you definitely need to pivot. You definitely need to try something new and something different, which is what the Marvel Universe did when they said, let's put all these characters in one movie to just raise the marquee value of this. But at the end of the day it's a struggle. It's hard to keep even that going. They need a new trick.
Dylan Lewis: I was going to say it sounds exactly like what it is. Maybe there'll be able to pull one out of their bag. It sounds like to me also Rick, the lesson here is discipline and trying to be relatively careful in your release schedule and not over saturating things. Any other advice for people that are looking at IP libraries and looking to do something similar to the MCU?
Rick Munarriz: Again, they're doing that. Even Sony, even the Across the Spider-Verse was such a big hit this year, they released the next movie in that franchise. Everyone's realizing that too much of this as an issue. But I do think specifically to Disney and Marvel, they're pushing out releases and this was before the actors and the writers' strike forced their hand that, hey, we really got to slow down the flow of content here, the pipeline here, because we have a production issue right now, spacing things out will help. But again, I would have probably said the same thing when Indiana Jones, this was the fifth movie and it came out well after more than a decade before the last movie. Disney didn't even own Lucasfilm the time that the fourth installment came in, and it did not do well despite Harrison Ford back. It's hard to tell. Time isn't always the thing. Spacing things out isn't sometimes enough. You need to come in with a fresh angle. I think moviegoers right now, they're very jaded. We've been spoiled by the fact that we can watch quality television at home, commercial-free for several hours at the end of every day. We need stuff that's going to challenge us, the stuff that is fresh. I think that's why Barbie did so well. That's why I think Oppenheimer, despite not doing as well as Barbie, but clearly, a successful release is the movie that comes in as a this is something I have to see in a theater because it's three hours of entertainment that I don't think I've seen through a streaming service. For investors following these movies, look for the people that are being creative with the process. Right now, that's not Disney unfortunately, but hopefully, they'll get it back because they've always found a way back.
Dylan Lewis: We'll get a look at Marvel's next swing this fall with The Marvel's. I plan on adding to Barbie's box office hall by heading to the theater this weekend. If you've got thoughts on the summer blockbusters or a question you want us to tackle on the show, we want to hear it. Shoot Motley Fool Money a note at podcasts@fool.com. Coming up after the break, Jason Moser and Bill Mann return with a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money.
As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy yourselves stocks based solely on what you hear. I'm Dylan Lewis, joint again by Jason Moser and Bill Mann. If you're at a barbecue this weekend, make sure to put some of the yellow stuff on your hotdog. Saturday, August 5th is National Mustard Day and to commemorate gentlemen, French's is giving out mustard-flavored skittles in New York City on Saturday, August 4th. Jason, if you were in New York, would you be trying those skittles out?
Jason Moser: No. I won't.
Dylan Lewis: Emphatically no.
Jason Moser: Dylan, there are things, the times in life where you can like a lot of things but then you put them together and you're like, oh, I don't like that. Listen, skittles are delightful and I'm a mustard guy. I will never understand how someone puts ketchup on a hot dog.
To put those things together. Let's bring McCormick in in the conversation because they own French's. That's my obligatory. But no, I love the marketing idea. I love the buzz it creates. It's not something I'm terribly interested in trying, but I do consider myself a mustard guy.
Bill Mann: I feel like you're giving this short shrift because I feel like honey mustard skittles.
Jason Moser: Well, no. Now honey mustard, I can.
Dylan Lewis: We're talking about the classic yellow stuff here.
Jason Moser: We've got to sweet dynamic. Now I'm starting to.
Bill Mann: What I'm saying is that that sweet slash mustard thing is something you're actually familiar with? I think I 100 percent would try.
Dylan Lewis: What does it cost you? It's a moment in time.
Bill Mann: There are plenty of things that cost nothing that I would not try.
Jason Moser: Now I have to try because I didn't think of this before that maybe there's the sweet dynamic tied in already because they're skittles. If it's the sweetness of the skittle with that tardiness of the mustard. I could see that actually working out.
Bill Mann: I'm so much for this than I was mustard doughnuts. What was that? By the way, I celebrate National Mustard. I'm in.
Dylan Lewis: He's a card-carrying member.
Bill Mann: I'm a card-carrying member.
Dylan Lewis: Well listeners, if you want to get your taste buds a chance at this, you can go to frenchs.com/mustardskittles through Saturday. They're also making some of those candy available online, if you're one of the lucky people they pick. Let's get over to stocks on our radar. Our man behind the glass, Rick Engdahl is going to hit you with a question. Bill, you're up first, what are you looking at this week?
Bill Mann: I am interested in the earnings of a company I don't know that we talk about very much. But Callaway Topgolf. Callaway, an old-line brand in the golf industry, purchased Topgolf a little while ago. I was not a fan of the acquisition and I am now interested to see how it's going.
Dylan Lewis: It's on your watchlist right now because you want to see how this acquisition winds up working out for the business and how they're able to absorb this brand?
Bill Mann: See, I'm glad you put it that way because so far I've been right. [laughs] But I'm wondering if there was something that I was missing by focusing too much on what this is going to bring Callaway, as opposed to the fact that golf is moving away from being out on the lengths and being more entertainment-driven, and Topgolf is great entertainment.
Dylan Lewis: Well, I can tell you what grinds is gears regarding this acquisition. It boils down to one word and I'm going to let him take it from here. Synergies.
Bill Mann: Synergies.
Dylan Lewis: Ain't that right? We talked about this.
Bill Mann: It's true. I just don't know that. I think from this quarter we're going to see what the synergies are. It's not to me what I really thought it was they're going to sell more Callaway gear. I don't think that's the case.
Jason Moser: I agree.
Dylan Lewis: Rick, our man behind the glass. I hope I didn't steer your question. You have a question or a comment for Bill's suggestion here of Callaway Topgolf?
Rick Engdahl: Yes, so we've had Golf. I've seen curling, axe throwing. What is the next happy-hour pseudo-sport that's going to blow up for us?
Bill Mann: It's going to be drinking, I think.
Jason Moser: [inaudible] .
Dylan Lewis: Well Topgolf has something to do with that. They have their hands in both those markets. Jason, what about you? What's on your watchlist this week?
Jason Moser: Outset Medical ticker is OM, they reported earnings this week. The bad news is the market's reaction to the release. The stock is down about 12, 13 percent since that announcement. The good news is though this really was a good report in virtually every regard, save one little news item that I'll get to, but you look at revenue of $36 million for the quarter that was up 44 percent from a year ago. Product revenue up almost 50 percent, the service and the other revenue grew 23.4 percent. I like this business because they install that base of those dialysis machines and then they benefit from the ongoing sales of these consumables. That really the consumables have to be Outset Medical produced. That really does give them very high switching costs as time goes on there. Gross margin continuing on that track to the target of 50 percent there. But back to that hiccup. The hiccup came from a news item that came out several weeks back. They received a warning letter from the FDA. Unfortunately, this isn't the first warning ever.
Bill Mann: I was going to say, that sounds bad.
Jason Moser: But it is interesting to note the letter stated that they need to file a Form 510K essentially for this Tableau cart product that they have. Ultimately this was more or less a disagreement. Management didn't really think they needed to file this form. The FDA begs otherwise. Management is going to go ahead and file this form. Until they get it filed, they're going to postpone the sales of that Tableau cart until they get the approval, which I'm certain they will. This led them to guide more down toward the lower end of the range of guidance they provided earlier before and I think that's got investors of a little bit up in arms.
Dylan Lewis: Rick, a question about Outset Medical.
Rick Engdahl: I get it. I hate filling out forms but don't they have somebody to do that?
Jason Moser: Well, you would hope so, but hey, maybe there's an AI for that Rick.
Dylan Lewis: Rick, which company is going on your watchlist?
Rick Engdahl: I fell asleep during Jason's so I'm going to have to go top up.
Bill Mann: So did Jay.
Jason Moser: A mustard's going to wake you up.
Dylan Lewis: With that, said Jason Moser, Bill Mann. Thank you both for being here. That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Rick Engdahl, I'm Dylan Lewis. Thanks for listening. We'll catch you next time.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. SVB Financial provides credit and banking services to The Motley Fool. Bill Mann has positions in Berkshire Hathaway, Walt Disney, and Wingstop. Dylan Lewis has no position in any of the stocks mentioned. Jason Moser has positions in Amazon.com, Apple, Chipotle Mexican Grill, Outset Medical, PayPal, and Walt Disney. Rick Munarriz has positions in Apple, Target, Topgolf Callaway Brands, and Walt Disney. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Chipotle Mexican Grill, Outset Medical, PayPal, Target, Uber Technologies, Walt Disney, Warner Bros. Discovery, and Wingstop. The Motley Fool recommends Johnson & Johnson and Topgolf Callaway Brands and recommends the following options: short September 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Obviously a lot of people and businesses around the world, but it's going through some growing pains and at the same time it's waiting for a new leader to take the reins then we'll understand the focus and the priorities going forward, but the results they fell in line with management's guidance, total payment volume $376.5 billion, up 11%. But I do think specifically to Disney and Marvel, they're pushing out releases and this was before the actors and the writers' strike forced their hand that, hey, we really got to slow down the flow of content here, the pipeline here, because we have a production issue right now, spacing things out will help. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Chipotle Mexican Grill, Outset Medical, PayPal, Target, Uber Technologies, Walt Disney, Warner Bros.
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In this podcast, Motley Fool host Dylan Lewis and senior analysts Jason Moser and Bill Mann discuss: Fitch downgrading U.S. credit and why it shouldn't worry investors. Jason Moser has positions in Amazon.com, Apple, Chipotle Mexican Grill, Outset Medical, PayPal, and Walt Disney. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Chipotle Mexican Grill, Outset Medical, PayPal, Target, Uber Technologies, Walt Disney, Warner Bros.
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In this podcast, Motley Fool host Dylan Lewis and senior analysts Jason Moser and Bill Mann discuss: Fitch downgrading U.S. credit and why it shouldn't worry investors. Bill Mann: Well, it's big in one certain way, the U.S. treasury notes and bills are the baseline for the entire credit market and a lot of people don't really realize it, but this is a much bigger market than the equity markets. I saw Oppenheimer earlier this week in a 70 millimeter screen, I saw Barbie the week before that at the largest Disney screen at the AMC 24 there and I went on a Monday night after the opening weekend thinking, it was hard to get tickets even for that and a very big theater and the moment where we start to AMC has a thing where Nicole Kidman starts walking down the stairs and we come here to be that whole thing, the audience started applauding, and I'm, I don't know if they're clapping because they're Nicole Kidman fans or because they think the movie is about to start, but there was excitement there.
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Dylan Lewis: Jason Moser, Bill Mann. Time isn't always the thing. Dylan Lewis: With that, said Jason Moser, Bill Mann.
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14309.0
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2023-08-14 00:00:00 UTC
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Investors pummeled by tech in 2022 make new bets on sector in second quarter
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AAPL
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https://www.nasdaq.com/articles/investors-pummeled-by-tech-in-2022-make-new-bets-on-sector-in-second-quarter
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By Svea Herbst-Bayliss
NEW YORK, Aug 14 (Reuters) - Several investment managers whose performance was pummeled when technology stocks skidded lower last year put fresh money into the handful of companies that are pulling the stock market higher this year, new regulatory filings show.
Glen Kacher's Light Street Capital, one of a handful of hedge funds that posted double-digit losses last year, reported a new position in retailer Amazon.com AMZN.O in the second quarter and said it boosted its stake in technology company Meta Platforms META.O by 27%, according to a new regulatory filing.
Amazon's share price has gained 63% since January while Meta's has climbed 144.5%.
Coatue Management, founded by Philippe Laffont, increased its position in Amazon by 125% and raised its holdings of Microsoft MSFT.O stock by 67%, a filing showed.
Tiger Global Management increased its holding of Nvidia NVDA.O, whose semiconductors back artificial-intelligence systems and whose market value topped $1 trillion in June, by 1,332%, the filing showed.
Investment managers must disclose what they hold in U.S. stocks at the end of each quarter and report that information to the Securities and Exchange Commission 45 days after the end of the quarter. The deadline for so-called 13-F filings for the second quarter is on Monday.
2023 has been a better year for investors, with the S&P 500 .SPX stock market index up 16% in the first half after a 20% drop in full-year 2022. But only a small number of companies - the so-called magnificent seven - fueled the rally.
IPhone maker Apple AAPL.O, retailer Amazon, electric vehicle maker Tesla TSLA.O, chip maker Nvidia and technology company Meta are among the group that accounted for 73% of the market's gains.
13-F filings are backward-looking but are closely watched by investors for trends. Second-quarter filings suggest many hedge funds ramped up their bets on technology stocks that suffered last year.
But not all investors were of one mind on these technology names. Light Street, for example, cut its Nvidia holding by 22% while Coatue cut it by 6%.
(Reporting by Svea Herbst-Bayliss in New York Editing by Matthew Lewis)
((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters Messaging: svea.herbst.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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IPhone maker Apple AAPL.O, retailer Amazon, electric vehicle maker Tesla TSLA.O, chip maker Nvidia and technology company Meta are among the group that accounted for 73% of the market's gains. Glen Kacher's Light Street Capital, one of a handful of hedge funds that posted double-digit losses last year, reported a new position in retailer Amazon.com AMZN.O in the second quarter and said it boosted its stake in technology company Meta Platforms META.O by 27%, according to a new regulatory filing. Coatue Management, founded by Philippe Laffont, increased its position in Amazon by 125% and raised its holdings of Microsoft MSFT.O stock by 67%, a filing showed.
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IPhone maker Apple AAPL.O, retailer Amazon, electric vehicle maker Tesla TSLA.O, chip maker Nvidia and technology company Meta are among the group that accounted for 73% of the market's gains. By Svea Herbst-Bayliss NEW YORK, Aug 14 (Reuters) - Several investment managers whose performance was pummeled when technology stocks skidded lower last year put fresh money into the handful of companies that are pulling the stock market higher this year, new regulatory filings show. Light Street, for example, cut its Nvidia holding by 22% while Coatue cut it by 6%.
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IPhone maker Apple AAPL.O, retailer Amazon, electric vehicle maker Tesla TSLA.O, chip maker Nvidia and technology company Meta are among the group that accounted for 73% of the market's gains. By Svea Herbst-Bayliss NEW YORK, Aug 14 (Reuters) - Several investment managers whose performance was pummeled when technology stocks skidded lower last year put fresh money into the handful of companies that are pulling the stock market higher this year, new regulatory filings show. Glen Kacher's Light Street Capital, one of a handful of hedge funds that posted double-digit losses last year, reported a new position in retailer Amazon.com AMZN.O in the second quarter and said it boosted its stake in technology company Meta Platforms META.O by 27%, according to a new regulatory filing.
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IPhone maker Apple AAPL.O, retailer Amazon, electric vehicle maker Tesla TSLA.O, chip maker Nvidia and technology company Meta are among the group that accounted for 73% of the market's gains. By Svea Herbst-Bayliss NEW YORK, Aug 14 (Reuters) - Several investment managers whose performance was pummeled when technology stocks skidded lower last year put fresh money into the handful of companies that are pulling the stock market higher this year, new regulatory filings show. Coatue Management, founded by Philippe Laffont, increased its position in Amazon by 125% and raised its holdings of Microsoft MSFT.O stock by 67%, a filing showed.
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14310.0
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2023-08-14 00:00:00 UTC
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Ford taps Apple exec to build high-margin digital services
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AAPL
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https://www.nasdaq.com/articles/ford-taps-apple-exec-to-build-high-margin-digital-services
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By Nathan Gomes and Paul Lienert
Aug 14 (Reuters) - Ford Motor F.N on Monday named former Apple AAPL.O executive Peter Stern as the president of its newly formed Ford Integrated Services unit to help build new high-margin digital and subscription services.
Stern, who previously oversaw Apple TV+, iCloud and Apple News+, will report to Ford CEO Jim Farley. In his new role, Stern will focus on integrating hardware, software and services across the company's Ford Blue, Model e and Ford Pro units.
Like other U.S. automakers, Ford is looking to expand beyond its traditional wholesale-to-dealer business model and build recurring revenues from services connected to its vehicles, much as Apple has built on its hardware products.
Stern joins an executive team at Ford that includes another Apple alumnus, Doug Field, who is chief advanced product development and technology officer. Rival General Motors GM.N in May also hired a former Apple executive, Michael Abbott, to run its software business.
Farley, in a media briefing on Monday, said a new digital vehicle architecture, due out in 2025 with the arrival of Ford's next-generation electric vehicles, will enable the development of new services for both retail and commercial customers.
"We're not going to limit it to EVs - we're going to put it on the F-150," Ford's best-selling pickup truck, Farley said.
Ford now has more than 550,000 paid software and services subscribers, more than 80% of them through the Ford Pro commercial unit.
That business is generating "hundreds of millions of dollars" in revenue, Farley said, "with enormous margins" of 50% and more.
Stern said Ford plans to create "bundles of services" that will provide "safer, more convenient and more productive experiences".
"The basis for differentiation is shifting from the vehicles alone to the integration of hardware, software and services," Stern said.
One of Stern's first tasks is to help expand Ford's BlueCruise hands-free driving package, which is being extended to more vehicles in the 2024 model year.
Ford will install BlueCruise hardware on another 500,000 vehicles next year, while giving customers the option of activating the subscription package at any point during ownership, rather than just at time of purchase.
The automaker plans to offer BlueCruise in a wider variety of Ford and Lincoln models, including F-150, F-150 Lightning, Expedition, Navigator, Nautilus and Corsair.
When Stern joined Apple in 2016, the company's services included iCloud and Apple Music.
"When I left, (Apple) had over a billion customers subscriptions," he said.
(Reporting by Nathan Gomes in Bengaluru and Paul Lienert in Detroit; Editing by Krishna Chandra Eluri, Sharon Singleton, Jonathan Oatis and Jan Harvey)
((Nathan.Gomes@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Nathan Gomes and Paul Lienert Aug 14 (Reuters) - Ford Motor F.N on Monday named former Apple AAPL.O executive Peter Stern as the president of its newly formed Ford Integrated Services unit to help build new high-margin digital and subscription services. Like other U.S. automakers, Ford is looking to expand beyond its traditional wholesale-to-dealer business model and build recurring revenues from services connected to its vehicles, much as Apple has built on its hardware products. Stern joins an executive team at Ford that includes another Apple alumnus, Doug Field, who is chief advanced product development and technology officer.
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By Nathan Gomes and Paul Lienert Aug 14 (Reuters) - Ford Motor F.N on Monday named former Apple AAPL.O executive Peter Stern as the president of its newly formed Ford Integrated Services unit to help build new high-margin digital and subscription services. In his new role, Stern will focus on integrating hardware, software and services across the company's Ford Blue, Model e and Ford Pro units. When Stern joined Apple in 2016, the company's services included iCloud and Apple Music.
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By Nathan Gomes and Paul Lienert Aug 14 (Reuters) - Ford Motor F.N on Monday named former Apple AAPL.O executive Peter Stern as the president of its newly formed Ford Integrated Services unit to help build new high-margin digital and subscription services. In his new role, Stern will focus on integrating hardware, software and services across the company's Ford Blue, Model e and Ford Pro units. Like other U.S. automakers, Ford is looking to expand beyond its traditional wholesale-to-dealer business model and build recurring revenues from services connected to its vehicles, much as Apple has built on its hardware products.
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By Nathan Gomes and Paul Lienert Aug 14 (Reuters) - Ford Motor F.N on Monday named former Apple AAPL.O executive Peter Stern as the president of its newly formed Ford Integrated Services unit to help build new high-margin digital and subscription services. In his new role, Stern will focus on integrating hardware, software and services across the company's Ford Blue, Model e and Ford Pro units. Like other U.S. automakers, Ford is looking to expand beyond its traditional wholesale-to-dealer business model and build recurring revenues from services connected to its vehicles, much as Apple has built on its hardware products.
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14311.0
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2023-08-14 00:00:00 UTC
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Eye DTEC’s Equal-Weight Tech Approach
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AAPL
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https://www.nasdaq.com/articles/eye-dtecs-equal-weight-tech-approach
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Tech has proved to be a very resilient source of growth this year and for good reason. It may feel like a long time ago, but ChatGPT has only been in the public eye for a few months. Machine learning programs like ChatGPT and other AI functions aren’t the only tech themes to watch, however. With a soft landing increasingly likely, investors may want to consider an equal-weight tech ETF like DTEC.
A soft landing, of course, depends on several factors. The Fed’s next meeting on whether or not to raise interest rates will play a role. At the same time, continued cooling inflation indicators dropping would also help. In any case, markets have come a long way from entering the year watching the horizon for a rate hike-induced recession. Earnings have proven durable, at the same time. Should the Fed be done with the rate cycle, markets can start looking forward to possible rate cuts next year.
The present market environment, then, could be a solid time to buy into a tech strategy. Investors looking to do so have one key issue to watch, however, in the top-heavy nature of the S&P 500’s returns. Tech’s rise has owed much to just a few names like the mega-cap tech firm Apple (AAPL). A poor turn of events for those top names could sour their part of the tech landscape.
See more: "3 Firms to Know in Equal Weight ETF BFOR"
That’s where an equal-weight tech ETF like DTEC comes in. DTEC, the ALPS Disruptive Technologies ETF, charges a 50 basis point (bps) fee to track the Indxx Disruptive Technologies Index. DTEC tracks an index of ten themes such as clean energy, cloud computing, fintech, robotics & AI, and more. The ETF chooses ten stocks from each theme per the manager’s proprietary model and equal weights them. That not only gives the stocks an equal weight but gives the themes an equal weight, too.
The equal-weight tech fund has returned 14.6% YTD, sitting above $100 million in AUM. In an environment with some persistent uncertainty, but also some support for a growthier, tech mindset, DTEC can appeal.
For more news, information, and analysis, visit the ETF Building Blocks Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech’s rise has owed much to just a few names like the mega-cap tech firm Apple (AAPL). Machine learning programs like ChatGPT and other AI functions aren’t the only tech themes to watch, however. In any case, markets have come a long way from entering the year watching the horizon for a rate hike-induced recession.
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Tech’s rise has owed much to just a few names like the mega-cap tech firm Apple (AAPL). With a soft landing increasingly likely, investors may want to consider an equal-weight tech ETF like DTEC. DTEC tracks an index of ten themes such as clean energy, cloud computing, fintech, robotics & AI, and more.
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Tech’s rise has owed much to just a few names like the mega-cap tech firm Apple (AAPL). With a soft landing increasingly likely, investors may want to consider an equal-weight tech ETF like DTEC. See more: "3 Firms to Know in Equal Weight ETF BFOR" That’s where an equal-weight tech ETF like DTEC comes in.
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Tech’s rise has owed much to just a few names like the mega-cap tech firm Apple (AAPL). With a soft landing increasingly likely, investors may want to consider an equal-weight tech ETF like DTEC. Should the Fed be done with the rate cycle, markets can start looking forward to possible rate cuts next year.
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14312.0
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2023-08-14 00:00:00 UTC
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Enphase Energy Stock Just Reminded Investors of This Timeless Lesson
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AAPL
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https://www.nasdaq.com/articles/enphase-energy-stock-just-reminded-investors-of-this-timeless-lesson
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Enphase Energy (NASDAQ: ENPH) stock hit a new two-year low on Aug. 7 and is now down over 58% from its 52-week high set in December 2022. The microinverter solar energy technology company was a Wall Street darling. But slowing growth and an overall sluggish period for the solar energy industry have cast a dark cloud over Enphase Energy stock.
The sell-off in Enphase Energy may come as a surprise to investors, given that the company just posted all-time high net income. But Enphase's price action is a painful reminder of a timeless investing lesson -- that a company's results should be judged mainly within the context of expectations and valuation. Let's dive into how this lesson applies to Enphase and how it can help you become a better investor for years to come.
Image source: Getty Images.
Blowout results
Five years ago, Enphase was unprofitable, generating less than $100 million in quarterly revenue. It featured a gross margin of roughly 30%.
In second-quarter 2023, Enphase generated over $710 million in revenue, more than an 800% increase compared to five years ago. It also booked $157.2 million in net income.
To put that figure into perspective, consider that in second-quarter 2018 five years ago, Enphase recorded negative net income and booked just $75.9 million in revenue. Doubling revenue in a five-year period would be impressive. But turning an unprofitable business profitable to the point where today's net income is double sales from five years ago is nothing short of a blistering growth rate.
To top it all off, Enphase had a gross margin of 45.5%. This is unbelievably impressive for a company that mostly sells physical products like microinverters, solar AC batteries, internet gateways, monitoring hardware and systems controllers, and electric vehicle chargers. For comparison, Apple (NASDAQ: AAPL), which also mostly sells physical products and is known for having high gross margins, had a 44.5% gross margin in its most recent quarter.
Suffice it to say, Enphase as a business is doing incredibly well, at least right now.
Weak guidance
The issue isn't where Enphase is today, but where it is going. The company's third-quarter guidance calls for $550 million to $600 million in revenue and a GAAP gross margin of $41% to 44%. For context, Enphase generated $634.7 million in Q3 2022 revenue and had a GAAP gross margin of 42.2%. Enphase's growth isn't just slowing, it's actually negative.
Q3 2022 was arguably the best quarter in Enphase's history. And the report came right after the landmark Inflation Reduction Act (IRA) was passed in August 2022. The IRA provides sizable tax credits for renewable energy projects, power producers, and domestic manufacturing of products related to renewable energy. The IRA, combined with the excellent results from Q3 2022, propelled the stock to an all-time high in December of last year. Q3 2022 represented a staggering 81% increase in revenue compared to Q3 2021. The company also booked $114.8 million in net income, compared to just $21.8 million in Q3 2021.
Enphase stock was riding high. But to support the sky-high valuation, the company would have to post quarter after quarter of blowout results.
Investing is all about telling a story
Financial models are centered around hard data. But when we zoom out and think about multi-year or even multi-decade investing theses, they are really about stories supported by the numbers, not the other way around.
Going back to Apple as an example, this company changed the smartphone market forever. But the reason the company has delivered staggering returns since launching the first iPhone in 2007 is its ability to build out a product and services ecosystem that benefits from so many powerful trends. The vast majority of these trends, like mobile apps, mobile payments, music, streaming, and more, revolve around the iPhone and boost its value to consumers.
Enphase's story centers around a growing residential solar market, and, to a lesser extent, small commercial customers. The company depends on not just the growing adoption of solar, but also on the affordability of solar systems. The most expensive component of these systems is the panels, which Enphase doesn't make. Also affecting Enphase are rising interest rates that make residential solar projects less affordable. The cost of selling electricity back to the grid is also a factor. Most important is the performance of Enphase's technology relative to the competition, so that it can charge a premium price.
Enphase's story is being tested for factors mostly outside its control. Supply chain issues challenged the solar industry in 2021 and 2022. Now, the big problem is interest rates, which are weakening consumer demand. When demand falls, companies try to lower prices. And if the whole solar industry is lowering prices, Enphase is pressured to follow suit, which affects its high-margin competitive advantage.
Learning a lifelong lesson the hard way
Enphase stock had an incredible run between 2020 and the end of 2022, a run that put immense pressure on Enphase the company to put up quarter after quarter of jaw-dropping results. The expectations proved unrealistic, as Enphase has entered a difficult period in lockstep with a challenging time for the whole solar industry.
Enphase is still putting up excellent results. But the numbers simply aren't good enough compared to its past performance and the growth rate that Wall Street grew accustomed to.
The good news is that the lower Enphase stock goes, the more its valuation will make sense, and the easier it will be for the company to exceed expectations.
The lesson here isn't that Enphase is a bad company. It's that companies are prone to market cycles. And if the stock's valuation is priced to perfection and leaves no room for the unexpected, it sets the stage for a massive sell-off.
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Daniel Foelber has positions in Enphase Energy and has the following options: long March 2024 $175 calls on Enphase Energy, long November 2023 $195 calls on Enphase Energy, long September 2023 $135 calls on Enphase Energy, short August 2023 $140 calls on Enphase Energy, short March 2024 $180 calls on Enphase Energy, short November 2023 $200 calls on Enphase Energy, and short September 2023 $140 calls on Enphase Energy. The Motley Fool has positions in and recommends Apple and Enphase Energy. 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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For comparison, Apple (NASDAQ: AAPL), which also mostly sells physical products and is known for having high gross margins, had a 44.5% gross margin in its most recent quarter. But turning an unprofitable business profitable to the point where today's net income is double sales from five years ago is nothing short of a blistering growth rate. This is unbelievably impressive for a company that mostly sells physical products like microinverters, solar AC batteries, internet gateways, monitoring hardware and systems controllers, and electric vehicle chargers.
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For comparison, Apple (NASDAQ: AAPL), which also mostly sells physical products and is known for having high gross margins, had a 44.5% gross margin in its most recent quarter. Blowout results Five years ago, Enphase was unprofitable, generating less than $100 million in quarterly revenue. To put that figure into perspective, consider that in second-quarter 2018 five years ago, Enphase recorded negative net income and booked just $75.9 million in revenue.
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For comparison, Apple (NASDAQ: AAPL), which also mostly sells physical products and is known for having high gross margins, had a 44.5% gross margin in its most recent quarter. But slowing growth and an overall sluggish period for the solar energy industry have cast a dark cloud over Enphase Energy stock. Learning a lifelong lesson the hard way Enphase stock had an incredible run between 2020 and the end of 2022, a run that put immense pressure on Enphase the company to put up quarter after quarter of jaw-dropping results.
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For comparison, Apple (NASDAQ: AAPL), which also mostly sells physical products and is known for having high gross margins, had a 44.5% gross margin in its most recent quarter. But slowing growth and an overall sluggish period for the solar energy industry have cast a dark cloud over Enphase Energy stock. The sell-off in Enphase Energy may come as a surprise to investors, given that the company just posted all-time high net income.
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14313.0
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2023-08-14 00:00:00 UTC
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3 Dividend Aristocrats Ready to Outperform the S&P 500
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https://www.nasdaq.com/articles/3-dividend-aristocrats-ready-to-outperform-the-sp-500
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I saw an article from Seeking Alpha at the beginning of August that ranked all the Dividend Aristocrats by total return potential. In addition to the top Dividend Aristocrats, it also ranked Dividend Champions and Dividend Kings.
Dividend investors certainly would have been attracted to such an article. In total, 133 stocks were ranked by their long-term total return potential.
And while I appreciate the effort made by the author to recommend the best dividend stocks for the long haul, it’s a bit of a fool’s errand to think that they can narrow the list down to a manageable few based on any fundamental analysis.
Stocks are going to do what they’re going to do. Not even Warren Buffett can successfully determine whether Apple’s (NASDAQ:AAPL) long-term total return will be higher than other stocks in Berkshire Hathaway’s (NYSE: BRK-A, NYSE:BRK-B) top 10 holdings.
To select three Dividend Aristocrats ready to outperform the S&P 500, I’ll pick one in the top 10 by weighting, one between 11 and 20, and one between 21 and 30.
Caterpillar (CAT)
Source: astudio / Shutterstock.com
Caterpillar (NYSE:CAT) is most definitely a cyclical stock. When the economy suffers, so do its customers, leading to lower revenues and profits. It’s a fact of life in the heavy equipment game. The vehicles CAT produces don’t come cheap.
Since June 2005, Caterpillar has had five major corrections, the most recent in 2023, when its share price fell 22% from late January through the end of May. Yet, it’s still up more than 18% on the year. Over the past five years, it’s up 108%, almost double the index.
I expect Caterpillar to do it again over the next five years. Here’s why.
If you look at Caterpillar’s long-term gross margin over the past decade, it’s ranged from a low of 25% in 2016 to a high of 32.4% in 2023. So, in the worst-case scenario, let’s assume the company’s gross margin at some point in the future falls to 25%. On $65 billion (trailing 12 months) in revenue, that’s a difference of $4.8 billion.
That might seem like a lot, but it’s not.
More importantly, it illustrates just how profitable the company tends to be, year in and year out. In 2016, when its gross margin dropped to just below 25%, it lost $67 million on $38.5 billion in revenue. That’s not a lot for a $144-billion company.
Its current financial leverage ratio is 4.68x, the lowest since 2013. An argument can be made that financially, it’s never been stronger.
I don’t know about you, but I’m all for financial strength.
Nucor (NUE)
Source: Shutterstock
Nucor (NYSE:NUE), the largest steel producer in North America, has increased its annual dividend for 50 consecutive years, easily clearing the 25 years needed to qualify as a Dividend Aristocrat. It is one of only 48 Dividend Kings — those companies increasing their dividends for 50 consecutive years.
If I were writing this article at the end of May, I would tell you that its stock was flat on the year. However, it went on a heater in early June. It’s up 26% in the past three months. Over the past five years, it has outperformed the S&P 500 by a factor of three.
Why do I like Nucor stock? Two reasons.
First, it has an ambitious greenhouse gas reduction strategy. The use of renewable energy is part of this strategy.
On Aug. 7, it announced a Power Purchase Agreement (PPA) with a subsidiary of NextEra Energy (NYSE:NEE). The PPA is for 250 megawatts of renewable energy from Sebree Solar, LLC’s two-phase solar project in Henderson County, Kentucky. In addition to buying renewable energy from NextEra’s subsidiary, Nucor will supply the steel for the project. It’s a win/win.
Secondly, the company generates significant cash flow. In the first six months of the year, despite a 44% decline in net earnings, it generated $3.13 billion in cash from operations. That’s what enables it to keep paying its dividends year after year.
Piece of advice: Between August 2018 and January 2021, its stock traded in a $40 range between $30 and $70. If it ever comes down to that level, you should buy more.
Nordson (NDSN)
Source: Yuriy K / Shutterstock.com
Nordson (NASDAQ:NDSN) is the name in this trio I’m least familiar with. The company manufactures fluid dispensers for all kinds of industries. For example, I’m an animal lover: it makes disposable dosing syringes for the animal health industry. Based in Ohio, it was added to the S&P 500 Dividend Aristocrats Index on Feb. 1 of this year.
Interestingly, Nordson’s increased its annual dividend payout for 60 consecutive years. However, because it was only added to the S&P 500 in February 2022, it only made it to the Dividend Aristocrats in 2023.
In June, Nordson announced its latest acquisition. It is buying ARAG Group for 960 million euros ($1.06 billion). ARAG manufactures precision control systems and smart fluid components for agricultural spraying. Founded in 1976, it has seven manufacturing and distribution facilities worldwide. It’s expected to generate sales of 155 million euros ($170.5 million) in 2023.
Nordson itself was founded in 1954. It had sales and EBITDA in fiscal 2022 (October year-end) of $2.6 billion and $807 million, respectively. The company has three operating segments: Industrial Precision Solutions (51% of revenue), Medical Fluid Solutions (27%), and Advanced Technology Solutions (22%).
Only nine analysts cover its stock. Of those, five rate it “overweight” or an outright “buy,” with a median target price of $260.
It’s not a fast-grower: It expects sales growth of 1.5% at the midpoint of its guidance with adjusted earnings per share of $9.10. However, over the long haul, you ought to do just fine.
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 3 Dividend Aristocrats Ready to Outperform the S&P 500 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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Not even Warren Buffett can successfully determine whether Apple’s (NASDAQ:AAPL) long-term total return will be higher than other stocks in Berkshire Hathaway’s (NYSE: BRK-A, NYSE:BRK-B) top 10 holdings. And while I appreciate the effort made by the author to recommend the best dividend stocks for the long haul, it’s a bit of a fool’s errand to think that they can narrow the list down to a manageable few based on any fundamental analysis. Since June 2005, Caterpillar has had five major corrections, the most recent in 2023, when its share price fell 22% from late January through the end of May.
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Not even Warren Buffett can successfully determine whether Apple’s (NASDAQ:AAPL) long-term total return will be higher than other stocks in Berkshire Hathaway’s (NYSE: BRK-A, NYSE:BRK-B) top 10 holdings. In total, 133 stocks were ranked by their long-term total return potential. Caterpillar (CAT) Source: astudio / Shutterstock.com Caterpillar (NYSE:CAT) is most definitely a cyclical stock.
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Not even Warren Buffett can successfully determine whether Apple’s (NASDAQ:AAPL) long-term total return will be higher than other stocks in Berkshire Hathaway’s (NYSE: BRK-A, NYSE:BRK-B) top 10 holdings. InvestorPlace - Stock Market News, Stock Advice & Trading Tips I saw an article from Seeking Alpha at the beginning of August that ranked all the Dividend Aristocrats by total return potential. Nucor (NUE) Source: Shutterstock Nucor (NYSE:NUE), the largest steel producer in North America, has increased its annual dividend for 50 consecutive years, easily clearing the 25 years needed to qualify as a Dividend Aristocrat.
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Not even Warren Buffett can successfully determine whether Apple’s (NASDAQ:AAPL) long-term total return will be higher than other stocks in Berkshire Hathaway’s (NYSE: BRK-A, NYSE:BRK-B) top 10 holdings. Stocks are going to do what they’re going to do. It is one of only 48 Dividend Kings — those companies increasing their dividends for 50 consecutive years.
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14314.0
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2023-08-14 00:00:00 UTC
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Apple supplier Foxconn's Q2 profit slips 1%, better than forecasts
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconns-q2-profit-slips-1-better-than-forecasts
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nan
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nan
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TAIPEI, Aug 14 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Monday a 1% drop in second-quarter net profit, as global economic woes hurt demand for smart consumer electronics.
The Taiwanese company, the world's largest contract electronics maker, said net profit for the April-June quarter slipped to T$33 billion from a revised T$33.29 billion in the same period the previous year.
It was better than an average forecast of T$25.57 billion profit from 13 analysts, according to Refinitiv.
(Reporting by Sarah Wu and Faith Hung; Writing by Ben Blanchard; Editing by Tom Hogue)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Aug 14 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Monday a 1% drop in second-quarter net profit, as global economic woes hurt demand for smart consumer electronics. The Taiwanese company, the world's largest contract electronics maker, said net profit for the April-June quarter slipped to T$33 billion from a revised T$33.29 billion in the same period the previous year. (Reporting by Sarah Wu and Faith Hung; Writing by Ben Blanchard; Editing by Tom Hogue) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Aug 14 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Monday a 1% drop in second-quarter net profit, as global economic woes hurt demand for smart consumer electronics. The Taiwanese company, the world's largest contract electronics maker, said net profit for the April-June quarter slipped to T$33 billion from a revised T$33.29 billion in the same period the previous year. It was better than an average forecast of T$25.57 billion profit from 13 analysts, according to Refinitiv.
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TAIPEI, Aug 14 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Monday a 1% drop in second-quarter net profit, as global economic woes hurt demand for smart consumer electronics. The Taiwanese company, the world's largest contract electronics maker, said net profit for the April-June quarter slipped to T$33 billion from a revised T$33.29 billion in the same period the previous year. (Reporting by Sarah Wu and Faith Hung; Writing by Ben Blanchard; Editing by Tom Hogue) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Aug 14 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Monday a 1% drop in second-quarter net profit, as global economic woes hurt demand for smart consumer electronics. The Taiwanese company, the world's largest contract electronics maker, said net profit for the April-June quarter slipped to T$33 billion from a revised T$33.29 billion in the same period the previous year. It was better than an average forecast of T$25.57 billion profit from 13 analysts, according to Refinitiv.
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14315.0
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2023-08-14 00:00:00 UTC
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Naver's 'Webtoon' CEO says barrier for new entrants is high
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AAPL
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https://www.nasdaq.com/articles/navers-webtoon-ceo-says-barrier-for-new-entrants-is-high
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nan
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nan
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By Joyce Lee
SEOUL, Aug 14 (Reuters) - South Korean tech giant Naver's 035420.KS webcomics business, called "Webtoon", will rely on its deep bank of content and creators to fend off new competition from larger Silicon Valley rivals, its CEO said, as it plans a listing next year.
Webtoons are digitalised short-form comics optimised for reading on mobiles and read vertically by scrolling through short, full-colour episodes.
The global webtoon industry made $4.7 billion in 2021 and is projected to make $60.1 billion by 2030, according to Spherical Insights & Consulting.
More recently, Amazon Japan launched a webcomics service called "Amazon Fliptoons" while Apple Books has also started a webtoons platform in Japan, with plans to expand to other countries.
But Kim Junkoo, CEO and founder of Webtoon Entertainment - a unit of Naver which originated the format in 2004 - says rivals will struggle to build a viable business.
"To build a (webtoon) store, you need knowledge about serial services, user targeting, a fitting business model, educating users," Kim said. "This takes time. But even if you put in time, you can't recreate the creator economy we've built."
Webtoon Entertainment and its subsidiary have run amateur artists' debut programmes for years, generating 1.6 million titles from 900,000 creators as of January.
Webtoons are low-cost to produce - one person can make them with a tablet and stylus.
Korean creators who published weekly webtoon episodes across a range of platforms earned on average 118.7 million won ($89,157.62) in 2022, according to data from state-run Korea Creative Content Agency, up from 81 million won in 2021.
Some also earn millions of dollars from paid views, merchandise and advertisements, including product placements.
According to Webtoon Entertainment, South Korean creators who published weekly episodes on its platform in 2020 earned an average of 460 million won ($345,833.46) that year, including from sponsored work.
"If big tech is serious about this IP-creating business, they'd have to buy us out," Kim said.
Amazon did not respond to a request for comment; Apple declined comment.
Webtoon Entertainment has global monthly active users of 85.6 million as of Q2 2022 in more than 100 countries - including 12.5 million in the United states - up from 40 million in 2017. About 80% of them are younger than 30.
"In the past, if an intellectual property sold $10 million, you'd be like, 'let's make a movie'," said Kim. "Now, if we have an IP that sold $10 million, we have data showing who saw it, which generation saw it, in what pattern, in which countries, so on."
Already, dozens of webtoons are made into dramas and movies each year, such as "Bloodhounds", which hit No. 1 on Netflix's non-English series charts in June.
Naver said during anearnings callthis month that it expected to list the Webtoon business next year, but did not elaborate on size, timing or venue.
Webtoon Entertainment reported a 13 billion won operating loss in the April-June quarter, smaller than the 21.4 billion won loss in the first quarter.
($1 = 1,330.1200 won)
(Reporting by Joyce Lee. Editing by Sam Holmes)
((joyce.lee@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Joyce Lee SEOUL, Aug 14 (Reuters) - South Korean tech giant Naver's 035420.KS webcomics business, called "Webtoon", will rely on its deep bank of content and creators to fend off new competition from larger Silicon Valley rivals, its CEO said, as it plans a listing next year. But Kim Junkoo, CEO and founder of Webtoon Entertainment - a unit of Naver which originated the format in 2004 - says rivals will struggle to build a viable business. According to Webtoon Entertainment, South Korean creators who published weekly episodes on its platform in 2020 earned an average of 460 million won ($345,833.46) that year, including from sponsored work.
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By Joyce Lee SEOUL, Aug 14 (Reuters) - South Korean tech giant Naver's 035420.KS webcomics business, called "Webtoon", will rely on its deep bank of content and creators to fend off new competition from larger Silicon Valley rivals, its CEO said, as it plans a listing next year. According to Webtoon Entertainment, South Korean creators who published weekly episodes on its platform in 2020 earned an average of 460 million won ($345,833.46) that year, including from sponsored work. Webtoon Entertainment reported a 13 billion won operating loss in the April-June quarter, smaller than the 21.4 billion won loss in the first quarter.
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Korean creators who published weekly webtoon episodes across a range of platforms earned on average 118.7 million won ($89,157.62) in 2022, according to data from state-run Korea Creative Content Agency, up from 81 million won in 2021. According to Webtoon Entertainment, South Korean creators who published weekly episodes on its platform in 2020 earned an average of 460 million won ($345,833.46) that year, including from sponsored work. Webtoon Entertainment has global monthly active users of 85.6 million as of Q2 2022 in more than 100 countries - including 12.5 million in the United states - up from 40 million in 2017.
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By Joyce Lee SEOUL, Aug 14 (Reuters) - South Korean tech giant Naver's 035420.KS webcomics business, called "Webtoon", will rely on its deep bank of content and creators to fend off new competition from larger Silicon Valley rivals, its CEO said, as it plans a listing next year. "This takes time. Webtoon Entertainment has global monthly active users of 85.6 million as of Q2 2022 in more than 100 countries - including 12.5 million in the United states - up from 40 million in 2017.
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14316.0
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2023-08-14 00:00:00 UTC
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Naver's 'Webtoon' CEO says barrier for new entrants is high
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AAPL
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https://www.nasdaq.com/articles/navers-webtoon-ceo-says-barrier-for-new-entrants-is-high-0
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nan
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nan
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By Joyce Lee
SEOUL, Aug 14 (Reuters) - South Korean tech giant Naver's 035420.KS webcomics business, called "Webtoon", will rely on its deep bank of content and creators to fend off new competition from larger Silicon Valley rivals, its CEO said, as it plans a listing next year.
Webtoons are digitalised short-form comics optimised for reading on mobiles and read vertically by scrolling through short, full-colour episodes.
The global webtoon industry made $4.7 billion in 2021 and is projected to make $60.1 billion by 2030, according to Spherical Insights & Consulting.
More recently, Amazon Japan launched a webcomics service called "Amazon Fliptoons" while Apple Books has also started a webtoons platform in Japan, with plans to expand to other countries.
But Kim Junkoo, CEO and founder of Webtoon Entertainment - a unit of Naver which originated the format in 2004 - says rivals will struggle to build a viable business.
"To build a (webtoon) store, you need knowledge about serial services, user targeting, a fitting business model, educating users," Kim said. "This takes time. But even if you put in time, you can't recreate the creator economy we've built."
Webtoon Entertainment and its subsidiary have run amateur artists' debut programmes for years, generating 1.6 million titles from 900,000 creators as of January.
Webtoons are low-cost to produce - one person can make them with a tablet and stylus.
Korean creators who published weekly webtoon episodes across a range of platforms earned on average 118.7 million won ($89,157.62) in 2022, according to data from state-run Korea Creative Content Agency, up from 81 million won in 2021.
Some also earn millions of dollars from paid views, merchandise and advertisements, including product placements.
According to Webtoon Entertainment, South Korean creators who published weekly episodes on its platform in 2020 earned an average of 460 million won ($345,833.46) that year, including from sponsored work.
"If big tech is serious about this IP-creating business, they'd have to buy us out," Kim said.
Amazon did not respond to a request for comment; Apple declined comment.
Webtoon Entertainment has global monthly active users of 85.6 million as of Q2 2022 in more than 100 countries - including 12.5 million in the United states - up from 40 million in 2017. About 80% of them are younger than 30.
"In the past, if an intellectual property sold $10 million, you'd be like, 'let's make a movie'," said Kim. "Now, if we have an IP that sold $10 million, we have data showing who saw it, which generation saw it, in what pattern, in which countries, so on."
Already, dozens of webtoons are made into dramas and movies each year, such as "Bloodhounds", which hit No. 1 on Netflix's non-English series charts in June.
Naver said in recent earnings calls that it expected to list the Webtoon business in the United States next year, but did not elaborate on size, timing or venue.
Webtoon Entertainment reported a 13 billion won operating loss in the April-June quarter, smaller than the 21.4 billion won loss in the first quarter.
($1 = 1,330.1200 won)
(Reporting by Joyce Lee. Editing by Sam Holmes)
((joyce.lee@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Joyce Lee SEOUL, Aug 14 (Reuters) - South Korean tech giant Naver's 035420.KS webcomics business, called "Webtoon", will rely on its deep bank of content and creators to fend off new competition from larger Silicon Valley rivals, its CEO said, as it plans a listing next year. But Kim Junkoo, CEO and founder of Webtoon Entertainment - a unit of Naver which originated the format in 2004 - says rivals will struggle to build a viable business. According to Webtoon Entertainment, South Korean creators who published weekly episodes on its platform in 2020 earned an average of 460 million won ($345,833.46) that year, including from sponsored work.
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By Joyce Lee SEOUL, Aug 14 (Reuters) - South Korean tech giant Naver's 035420.KS webcomics business, called "Webtoon", will rely on its deep bank of content and creators to fend off new competition from larger Silicon Valley rivals, its CEO said, as it plans a listing next year. According to Webtoon Entertainment, South Korean creators who published weekly episodes on its platform in 2020 earned an average of 460 million won ($345,833.46) that year, including from sponsored work. Webtoon Entertainment reported a 13 billion won operating loss in the April-June quarter, smaller than the 21.4 billion won loss in the first quarter.
|
Korean creators who published weekly webtoon episodes across a range of platforms earned on average 118.7 million won ($89,157.62) in 2022, according to data from state-run Korea Creative Content Agency, up from 81 million won in 2021. According to Webtoon Entertainment, South Korean creators who published weekly episodes on its platform in 2020 earned an average of 460 million won ($345,833.46) that year, including from sponsored work. Webtoon Entertainment has global monthly active users of 85.6 million as of Q2 2022 in more than 100 countries - including 12.5 million in the United states - up from 40 million in 2017.
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By Joyce Lee SEOUL, Aug 14 (Reuters) - South Korean tech giant Naver's 035420.KS webcomics business, called "Webtoon", will rely on its deep bank of content and creators to fend off new competition from larger Silicon Valley rivals, its CEO said, as it plans a listing next year. Webtoon Entertainment has global monthly active users of 85.6 million as of Q2 2022 in more than 100 countries - including 12.5 million in the United states - up from 40 million in 2017. Naver said in recent earnings calls that it expected to list the Webtoon business in the United States next year, but did not elaborate on size, timing or venue.
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14317.0
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2023-08-14 00:00:00 UTC
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Reasons to Still Believe In This New Bull Market
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AAPL
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https://www.nasdaq.com/articles/reasons-to-still-believe-in-this-new-bull-market
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nan
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nan
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T
he bear market is over. That’s without question. But investors aren’t feeling all warm and fuzzy about the new bull market. The past several weeks might have produced record-breaking heat in terms of climate temperature, but stocks have cooled off quite a bit with both the S&P 500 index and the Nasdaq Composite suffering losses in two straight weeks.
Market focus has centered on the economy's trajectory and the Federal Reserve's role in managing inflation to prevent a recession. The July Consumer Price Index (CPI) came in softer than anticipated, with a year-over-year increase of 3.2%, below the estimated 3.3%. However, the producer price index (PPI), which tracks wholesale prices for raw goods, exceeded expectations with a 0.3% month-over-month increase.
This has led to speculation that the Federal Reserve might reconsider its potential pause in rate hikes for September. Some investors are now questioning whether it’s time to pull money out of the market. For the week, the Nasdaq was down 1.90%, while the S&P 500 was down 0.31%. The Dow, on the other hand, showed resilience, rising 0.54% for the week. Despite the uncertainty, there are indications that the market's underlying optimism is intact.
While expectations of a Fed pivot have been dampened due to recent inflation data indicating that more action might be required to control costs, don’t discount the fact that we have reached "peak inflation.” We are now on the other side, despite the seemingly mixed stock performance and uncertainty in the markets have shown over the past few weeks. To be sure, as we look ahead, certain stocks are poised for scrutiny, and the market's trajectory will be closely monitored.
The strong first half gains were driven by the technology behemoths such as tech heavyweights Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), Meta Platforms (META), Tesla (TSLA) and Microsoft (MSFT). But while the second half of the year has gotten off to a rocky start, it's not time to panic. there are several reasons to believe that the new bull market will endure. Despite periodic pullbacks and volatility, there is still a sense of optimism, supported by factors such as strong Q2 earnings results and the remarkable performance of AI stocks.
On a year-to-date basis, the gains are still encouraging, compared to the depths of the bear market. The Dow Jones Industrial Average is up 6.5%, while the S&P 500 is up 16.73% year to date. The Nasdaq is still the largest gainer, rising 31.36% year to date, compared with a 2022 decline of 34%. In other words, despite the downbeat performance over the past few weeks, the bulls are still firmly in control of this market.
This collective optimism should prevail, given the strong Q2 earnings results and confident guidance that S&P 500 companies have provided thus far. Arguably, it was Nvidia’s blowout first quarter earnings results and better-than-expected Q2 guidance that sparked the massive rally the Nasdaq has enjoyed this year, outpacing the S&P 500 and Dow Jones Industrial Average so far in 2023. Nvidia, which has soared 185% this year, will report Q2 result next week, on August 23. Does it have a second act for the second half? I would not bet against it.
All told, while the recent market dynamics have been influenced by inflation concerns and the Federal Reserve's decision not to cut interest rates, the overall sentiment and market trajectory remains positive. While implications of future inflation data will continue to shape market movements, there are tons of indications that the new bull market has the potential to withstand challenges and continue its upward climb. Combined with the fact that the recessionary risk is all but gone, this new bull market is likely here to stay.
The views and 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 strong first half gains were driven by the technology behemoths such as tech heavyweights Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), Meta Platforms (META), Tesla (TSLA) and Microsoft (MSFT). While expectations of a Fed pivot have been dampened due to recent inflation data indicating that more action might be required to control costs, don’t discount the fact that we have reached "peak inflation.” We are now on the other side, despite the seemingly mixed stock performance and uncertainty in the markets have shown over the past few weeks. Despite periodic pullbacks and volatility, there is still a sense of optimism, supported by factors such as strong Q2 earnings results and the remarkable performance of AI stocks.
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The strong first half gains were driven by the technology behemoths such as tech heavyweights Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), Meta Platforms (META), Tesla (TSLA) and Microsoft (MSFT). While expectations of a Fed pivot have been dampened due to recent inflation data indicating that more action might be required to control costs, don’t discount the fact that we have reached "peak inflation.” We are now on the other side, despite the seemingly mixed stock performance and uncertainty in the markets have shown over the past few weeks. The Dow Jones Industrial Average is up 6.5%, while the S&P 500 is up 16.73% year to date.
|
The strong first half gains were driven by the technology behemoths such as tech heavyweights Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), Meta Platforms (META), Tesla (TSLA) and Microsoft (MSFT). While expectations of a Fed pivot have been dampened due to recent inflation data indicating that more action might be required to control costs, don’t discount the fact that we have reached "peak inflation.” We are now on the other side, despite the seemingly mixed stock performance and uncertainty in the markets have shown over the past few weeks. All told, while the recent market dynamics have been influenced by inflation concerns and the Federal Reserve's decision not to cut interest rates, the overall sentiment and market trajectory remains positive.
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The strong first half gains were driven by the technology behemoths such as tech heavyweights Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), Meta Platforms (META), Tesla (TSLA) and Microsoft (MSFT). Some investors are now questioning whether it’s time to pull money out of the market. For the week, the Nasdaq was down 1.90%, while the S&P 500 was down 0.31%.
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14318.0
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2023-08-14 00:00:00 UTC
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US STOCKS-Futures rise as megacap growth stocks bounce; focus on economic data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-as-megacap-growth-stocks-bounce-focus-on-economic-data
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Aug 14 (Reuters) - U.S. stock index futures edged higher on Monday as most megacap growth stocks steadied after a selloff in the previous session, while investors awaited quarterly reports from U.S. retail giants and economic data later in the week.
After strong gains this year, U.S. equities have lost momentum in August, with the tech-heavy Nasdaq .IXIC posting two straight weeks of declines for the first time in 2023 on Friday.
Hotter-than-expected U.S. producer prices data last week fanned concerns that the Federal Reserve could keep interest rates higher for longer, driving up U.S. Treasury yields and weighing on rate-sensitive big technology and growth stocks.
"We've been having some intraday swings and so it's very possible that we're going to have another. Investors are basically staying on the sidelines until we get the economic news of the week," said Peter Cardillo, chief market economist at Spartan Capital Securities.
On Monday, as the yield on 10-year government treasuries US10YT=RR ticked lower, shares of Microsoft O>, Meta Platforms META.O and Apple Inc AAPL.O rose between 0.2% and 0.5% in premarket trading.
Tesla TSLA.O, however, fell 1.9% after the electric automaker said it has cut prices in China for some Model Y versions.
Money markets see a nearly 89% chance that the Fed will keep its interest rates unchanged next month, with traders betting the central bank will hold them at that level for the rest of the year, according to CME Group's Fedwatch tool.
Goldman Sachs expects the Fed to start cutting rates in the second quarter of 2024, but has cautioned that rates could hold steady if inflation does not cool fast enough.
Market focus will be on quarterly earnings from major U.S. retailers including Walmart WMT.N and Target TGT.N this week. Economic data expected includes retail sales for July as well as industrial production and jobless claims numbers.
Keeping a lid on global market sentiment were concerns about China's highly leveraged property sector after the country's top private property developer said it will suspend trading of its onshore bonds from Monday.
At 7:17 a.m. ET, Dow e-minis 1YMcv1 were up 59 points, or 0.17%, S&P 500 e-minis EScv1 were up 8 points, or 0.18%, and Nasdaq 100 e-minis NQcv1 were up 41.5 points, or 0.27%.
AMC Entertainment common shares AMC.N fell 27.8% in premarket trading after a Delaware judge approved the theater chain's revised stockholder settlement on Friday. The company's preferred stock APE.N surged 27.5%.
Shares of Nikola NKLA.O dropped 13.3% after the company said on Friday it was recalling all the battery-powered electric trucks delivered till date and is suspending sales after a probe into recent fires.
Shares of U.S. Steel X.Njumped 26.1% after the steelmaker rejected a buyout offer from Cleveland-Cliffs and said it would review its options.
Big Tech stocks vs broader markets in 2023 https://tmsnrt.rs/3E11Nhz
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru; Editing by Arun Koyyur and Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On Monday, as the yield on 10-year government treasuries US10YT=RR ticked lower, shares of Microsoft O>, Meta Platforms META.O and Apple Inc AAPL.O rose between 0.2% and 0.5% in premarket trading. Hotter-than-expected U.S. producer prices data last week fanned concerns that the Federal Reserve could keep interest rates higher for longer, driving up U.S. Treasury yields and weighing on rate-sensitive big technology and growth stocks. Money markets see a nearly 89% chance that the Fed will keep its interest rates unchanged next month, with traders betting the central bank will hold them at that level for the rest of the year, according to CME Group's Fedwatch tool.
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On Monday, as the yield on 10-year government treasuries US10YT=RR ticked lower, shares of Microsoft O>, Meta Platforms META.O and Apple Inc AAPL.O rose between 0.2% and 0.5% in premarket trading. By Amruta Khandekar and Shristi Achar A Aug 14 (Reuters) - U.S. stock index futures edged higher on Monday as most megacap growth stocks steadied after a selloff in the previous session, while investors awaited quarterly reports from U.S. retail giants and economic data later in the week. Economic data expected includes retail sales for July as well as industrial production and jobless claims numbers.
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On Monday, as the yield on 10-year government treasuries US10YT=RR ticked lower, shares of Microsoft O>, Meta Platforms META.O and Apple Inc AAPL.O rose between 0.2% and 0.5% in premarket trading. By Amruta Khandekar and Shristi Achar A Aug 14 (Reuters) - U.S. stock index futures edged higher on Monday as most megacap growth stocks steadied after a selloff in the previous session, while investors awaited quarterly reports from U.S. retail giants and economic data later in the week. Hotter-than-expected U.S. producer prices data last week fanned concerns that the Federal Reserve could keep interest rates higher for longer, driving up U.S. Treasury yields and weighing on rate-sensitive big technology and growth stocks.
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On Monday, as the yield on 10-year government treasuries US10YT=RR ticked lower, shares of Microsoft O>, Meta Platforms META.O and Apple Inc AAPL.O rose between 0.2% and 0.5% in premarket trading. By Amruta Khandekar and Shristi Achar A Aug 14 (Reuters) - U.S. stock index futures edged higher on Monday as most megacap growth stocks steadied after a selloff in the previous session, while investors awaited quarterly reports from U.S. retail giants and economic data later in the week. After strong gains this year, U.S. equities have lost momentum in August, with the tech-heavy Nasdaq .IXIC posting two straight weeks of declines for the first time in 2023 on Friday.
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14319.0
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2023-08-14 00:00:00 UTC
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Disney's future, a hot topic among Hollywood elite
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AAPL
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https://www.nasdaq.com/articles/disneys-future-a-hot-topic-among-hollywood-elite
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nan
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nan
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By Dawn Chmielewski
Aug 14 (Reuters) - Hollywood's favorite parlor game of the week: What will Bob Iger do next?
From Culver City to New York City, the U.S. media and entertainment industry's powerbrokers are spinning scenarios about the future and the possible breakup of the industry's most powerful conglomerate.
Walt Disney DIS.N chief executive Iger, who returned to the company in November for a second stint, triggered the vigorous industry chatter in mid-July when he suggested during a CNBC interview that the company's television businesses, including its stations and cable channels, "may not be core to Disney."
His remarks spurred a frenzy of activity among bankers and private equity players, who began evaluating whether they should "make a move," one banker, speaking on condition of anonymity, told Reuters.
"He's signaling to investors," said the banker. "It starts people thinking."
Iger fueled the conjecture last week during Disney's third-quarterearnings callwith investors, when he said the company is mulling strategic partnerships for its marquee sports brand, ESPN, and has received "notable interest," though Disney planned to retain control.
The three businesses that will drive the greatest growth over the next five years, he said, are the company's film studios, theme parks and streaming video.
One top media executive envisioned Iger spinning off the ABC broadcast network, local TV stations and Disney's cable networks such as Disney Channel or FX as a separate company, loading it with an appropriate level of debt.
Another veteran media executive predicted Disney would spin off the television asset to its shareholders as a separate, publicly traded company by 2024, with private equity potentially playing a role.
A fourth media executive who has run traditional and digital media companies said Disney may need to attract outside investors in ESPN so that it can competitively bid for increasingly expensive sports media rights, such as for NBA games, which expire after the 2024-25 season.
That would potentially free up cash for Disney to acquire NBCUniversal's stake in Hulu, assuming full ownership of the streaming service next year. Under an agreement reached in 2019, NBCU parent Comcast CMCSA.O can require Disney to buy the Hulu stake, or Disney can require NBCUniversal to sell it, as early as January 2024, at a market value of at least $5.8 billion.
Disney declined to comment.
THE 'FULL BEWKES'
The fourth executive, along with other senior media figures who spoke with Reuters, said Iger is likely crafting options, retaining ownership of ESPN, with the opportunity to shed it in the future to position Disney as a more attractive acquisition target.
The executive likened the strategy to one executed by former Time Warner CEO Jeff Bewkes, who sold off parts of the media conglomerate's business before selling its core film and television unit to AT&T in an $85.4 billion deal that closed in 2018, said the veteran executive.
"You sell the parts, then sell what's left," said the veteran. "That's the full-Bewkes."
That may well be Iger's end-game, these executives speculated. To make it attractive for the only likely buyers big enough to digest a Disney - Apple AAPL.O or Alphabet's GOOGL.O Google - Iger would need to prune Disney down to just the parts that preserve its global intellectual property portfolio, while separating out its cash-generating legacy businesses like TV.
"There's no way a FAANG company is going to buy his company when he has all these cable channels, a broadcast network and a cable sports network," said the executive, using an acronym for the five major U.S. technology companies, Facebook (now Meta), Apple, Amazon AMZN.O, Netflix NFLX.O and Google. "It's not the business they're in, and it's unlikely the government would ever allow it."
Amazon, fresh off its $8.5 billion acquisition of MGM last year, would not likely be interested in such a deal, said one source familiar with the matter. And Facebook is not viewed as interested in traditional media assets.
Needham and Co analyst Laura Martin floated the investor appeal of Apple acquiring Disney, writing in March that the combination of great content and strong distribution would create value. This idea continues to circulate in Hollywood.
"Obviously, anyone who wants to speculate about these things would have to immediately consider the global regulatory environment," Iger said, when asked about the possibility during the investor call. "I'll say no more than that. It's just - it's not something that we obsess about."
In that, he may be alone.
(Reporting by Dawn Chmielewski in Los Angeles; Editing by Kenneth Li and Richard Chang)
((Dawn.Chmielewski@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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To make it attractive for the only likely buyers big enough to digest a Disney - Apple AAPL.O or Alphabet's GOOGL.O Google - Iger would need to prune Disney down to just the parts that preserve its global intellectual property portfolio, while separating out its cash-generating legacy businesses like TV. Another veteran media executive predicted Disney would spin off the television asset to its shareholders as a separate, publicly traded company by 2024, with private equity potentially playing a role. The fourth executive, along with other senior media figures who spoke with Reuters, said Iger is likely crafting options, retaining ownership of ESPN, with the opportunity to shed it in the future to position Disney as a more attractive acquisition target.
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To make it attractive for the only likely buyers big enough to digest a Disney - Apple AAPL.O or Alphabet's GOOGL.O Google - Iger would need to prune Disney down to just the parts that preserve its global intellectual property portfolio, while separating out its cash-generating legacy businesses like TV. One top media executive envisioned Iger spinning off the ABC broadcast network, local TV stations and Disney's cable networks such as Disney Channel or FX as a separate company, loading it with an appropriate level of debt. Under an agreement reached in 2019, NBCU parent Comcast CMCSA.O can require Disney to buy the Hulu stake, or Disney can require NBCUniversal to sell it, as early as January 2024, at a market value of at least $5.8 billion.
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To make it attractive for the only likely buyers big enough to digest a Disney - Apple AAPL.O or Alphabet's GOOGL.O Google - Iger would need to prune Disney down to just the parts that preserve its global intellectual property portfolio, while separating out its cash-generating legacy businesses like TV. Walt Disney DIS.N chief executive Iger, who returned to the company in November for a second stint, triggered the vigorous industry chatter in mid-July when he suggested during a CNBC interview that the company's television businesses, including its stations and cable channels, "may not be core to Disney." One top media executive envisioned Iger spinning off the ABC broadcast network, local TV stations and Disney's cable networks such as Disney Channel or FX as a separate company, loading it with an appropriate level of debt.
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To make it attractive for the only likely buyers big enough to digest a Disney - Apple AAPL.O or Alphabet's GOOGL.O Google - Iger would need to prune Disney down to just the parts that preserve its global intellectual property portfolio, while separating out its cash-generating legacy businesses like TV. One top media executive envisioned Iger spinning off the ABC broadcast network, local TV stations and Disney's cable networks such as Disney Channel or FX as a separate company, loading it with an appropriate level of debt. Another veteran media executive predicted Disney would spin off the television asset to its shareholders as a separate, publicly traded company by 2024, with private equity potentially playing a role.
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14320.0
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2023-08-13 00:00:00 UTC
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Wall St Week Ahead-Sluggish US earnings may need pick-me-up to support 2023 stock rally
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-sluggish-us-earnings-may-need-pick-me-up-to-support-2023-stock-rally-0
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nan
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nan
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By Lewis Krauskopf
NEW YORK, Aug 11 (Reuters) - Stock investors have been satisfied by middling U.S. corporate results so far this year but they might not be so easy to please for the rest of 2023.
As the second-quarter earnings season winds down, S&P 500 results are presenting a mixed picture, with companies beating analysts' profit expectations at the highest rate in nearly two years even as revenue beats dropped to the lowest since early 2020.
Investors appear content with that, for now. The S&P 500 .SPXhas edged higher since earnings season began in July, with the benchmark index up 16% in 2023. But expectations call for corporate profits to pick up as the U.S. economy has so far defied recession fears, and investors may be far less forgiving if companies fail to deliver later this year, given the jump in equity valuations.
"Markets are expecting earnings to ... deliver above and beyond where they have been," said Eric Freedman, chief investment officer at U.S. Bank Asset Management. "This is a market that has moved up in anticipation of earnings that we have not quite gotten yet."
Overall, second-quarter earnings are expected to have fallen 3.8% from a year earlier, Refinitiv IBES data showed. That decline follows a 0.1% rise in the first quarter and a 3.2% drop in the fourth quarter of last year.
Results are expected to improve, however. Third-quarter S&P 500 earnings are seen rising 1.3% on a year-over-year basis, according to Refinitiv, before a 9.7% fourth-quarter earnings rise and a 11.9% full-year increase in 2024.
Meanwhile, the S&P 500 has become more richly valued. The index was trading at 19.1 times forward 12-month earnings estimates as of Thursday, compared to its long-term average of 15.6 times, according to Refinitiv Datastream. The P/E ratio ended 2022 at just below 17 times.
This year's valuation expansion accounted for 86% of the S&P 500's year-to-date return through July, with the rest of the market's boost coming from positive changes to earnings estimates, an analysis by Credit Suisse equity strategists showed.
"At this point, valuations have run ahead of the fundamentals and so companies now have to prove that they can generate earnings growth," said Anthony Saglimbene, chief market strategist at Ameriprise Financial.
Q2 RESULTS
With 91% of S&P 500 companies having reported second-quarter results, 78.7% posted earnings above analysts' expectations, according to Refinitiv IBES. In aggregate, companies are reporting earnings 7.7% above expectations, up from a long-term average of 4.1% above estimates. Both the beat rate and surprise factor are coming in at their highest rates since the third quarter of 2021.
However, for revenue, only 62.9% of companies have topped expectations - the lowest beat rate since the first quarter of 2020.
Stock reaction to earnings results has also been tepid, with share prices posting weaker responses to both beats and misses than the average over the past five years, analyst Julian Emanuel of Evercore ISI said. The average stock fell 0.6% after results in the second quarter, Emanuel said in a note on Thursday.
"We went from a market that is saying, 'Earnings had to back it up' to 'Thankfully earnings didn't screw this up,'" said John Lynch, chief investment officer for Comerica Wealth Management. "That just gets us into a more expensive realm."
Meanwhile, there have also been some high profile disappointments, with Apple AAPL.O shares dropping 4.8% after the iPhone maker's weak sales forecast. Other megacap companies, such as Amazon AMZN.O and Alphabet GOOGL.O, have seen a positive investor response to their reports.
Companies reporting results next week include key retailers, such as Walmart WMT.N and Home Depot HD.N, while the release of monthly retail sales on Tuesday also could influence markets.
While investors generally have turned more positive about the economic outlook, some still are wary of a recession stemming from the delayed impact of higher interest rates, as indicators such as the Treasury yield curve are still flashing warning signs.
Such a downturn could severely change the prospects for corporate earnings and potentially weigh on valuations. During recessions, earnings fall at a 24% annual rate on average, according to Ned Davis Research.
"There is optimism, but I still wonder going into next year, are we too optimistic, from a consensus standpoint," said Comerica's Lynch. "Just because we didn't have a recession this year, that yield curve continues to point to one."
S&P 500 earnings growth expected to pick up https://tmsnrt.rs/3rpjtk4
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Richard Chang)
((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, there have also been some high profile disappointments, with Apple AAPL.O shares dropping 4.8% after the iPhone maker's weak sales forecast. This year's valuation expansion accounted for 86% of the S&P 500's year-to-date return through July, with the rest of the market's boost coming from positive changes to earnings estimates, an analysis by Credit Suisse equity strategists showed. Stock reaction to earnings results has also been tepid, with share prices posting weaker responses to both beats and misses than the average over the past five years, analyst Julian Emanuel of Evercore ISI said.
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Meanwhile, there have also been some high profile disappointments, with Apple AAPL.O shares dropping 4.8% after the iPhone maker's weak sales forecast. As the second-quarter earnings season winds down, S&P 500 results are presenting a mixed picture, with companies beating analysts' profit expectations at the highest rate in nearly two years even as revenue beats dropped to the lowest since early 2020. With 91% of S&P 500 companies having reported second-quarter results, 78.7% posted earnings above analysts' expectations, according to Refinitiv IBES.
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Meanwhile, there have also been some high profile disappointments, with Apple AAPL.O shares dropping 4.8% after the iPhone maker's weak sales forecast. As the second-quarter earnings season winds down, S&P 500 results are presenting a mixed picture, with companies beating analysts' profit expectations at the highest rate in nearly two years even as revenue beats dropped to the lowest since early 2020. With 91% of S&P 500 companies having reported second-quarter results, 78.7% posted earnings above analysts' expectations, according to Refinitiv IBES.
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Meanwhile, there have also been some high profile disappointments, with Apple AAPL.O shares dropping 4.8% after the iPhone maker's weak sales forecast. By Lewis Krauskopf NEW YORK, Aug 11 (Reuters) - Stock investors have been satisfied by middling U.S. corporate results so far this year but they might not be so easy to please for the rest of 2023. With 91% of S&P 500 companies having reported second-quarter results, 78.7% posted earnings above analysts' expectations, according to Refinitiv IBES.
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14321.0
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2023-08-13 00:00:00 UTC
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1 Magnificent Warren Buffett Stock That Turned $10,000 Into $68,000
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AAPL
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https://www.nasdaq.com/articles/1-magnificent-warren-buffett-stock-that-turned-%2410000-into-%2468000
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nan
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nan
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), the conglomerate that Warren Buffett has run for nearly 60 years, owned a lot of different stocks over the years. Some didn't work out, but some of them turned out to be huge wins.
One of the best investments in recent years was the decision to buy shares of Apple (NASDAQ: AAPL). Buffett first bought a stake in the iPhone maker in the first quarter of 2016. Since the start of that year, a $10,000 investment would have turned into about $68,000 (as of Aug. 9), translating to a monster return of 579% that trounces the overall market.
It's important for investors to understand where this top tech business has been before considering buying the stock right now.
Apple's attractive qualities
It's not difficult to figure out why Buffett was drawn to Apple more than seven years ago. For starters, the company is known for selling some of the most in-demand products in the world. Buffett likes to own businesses that delight their customers, and Apple does this better than anyone else. The iPhone, for example, continues to introduce new upgrades that consumers absolutely love.
Not too long before Buffett invested in the company, Apple released the first model of the Watch in April 2015. And after Berkshire was already a shareholder, the company launched the AirPods in September 2016. Both products have been fantastic success stories.
Buffett realized that a more accurate assessment of Apple would be possible by viewing it as a consumer brand instead of just a tech business. Without a doubt, Apple's economic moat, a term Buffett is famous for coming up with, stems from its incredible brand recognition. According to Interbrand, Apple has the most valuable brand in the world, worth an estimated $482 billion.
Apple's financial situation was outstanding. In fiscal 2015 (ended Sept. 26 of that year), the company posted revenue and diluted earnings-per-share growth of 28% and 43%, respectively, with cash, cash equivalents, and marketable securities of $206 billion. The thinking was probably that Apple's earnings power would be significantly higher five or 10 years from then, prompting the Oracle of Omaha to be extremely intrigued by Apple's trajectory.
Buffett also takes a long hard look at the leadership team running a particular company. When Steve Jobs passed away in 2011, investors thought that Tim Cook wouldn't be able to be as successful in guiding Apple to new heights. But we've learned that this assumption was wrong. Even Buffett agrees. "Tim Cook has managed that company in an extraordinary way," he said about Apple's current CEO.
At the start of 2016, Apple's market capitalization was just under $600 billion, so it was the world's most valuable company then, too. But the stock's trailing price-to-earnings (P/E) ratio on Jan. 1, 2016, was 11. Certainly, Buffett viewed this valuation as being very attractive.
What about now?
Any investor would benefit by not only studying the great investors, but by also learning about successful investments. Buffett and Apple, respectively, fit into these categories without question.
At a market capitalization of $2.8 trillion right now, and with the stock trading at a trailing P/E ratio of 30, Apple is obviously selling at a much higher premium than when Buffett got involved. But Berkshire is likely still a shareholder because of the huge dividends that the company receives thanks to its nearly 6% stake in the tech giant.
For the individual investor thinking about buying Apple today, it's best to accept the fact that the business likely won't register the same monster growth in the future that it has posted in past years. Nonetheless, it wouldn't be surprising if Apple introduced another game-changing product or service that moves the needle financially.
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 1, 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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One of the best investments in recent years was the decision to buy shares of Apple (NASDAQ: AAPL). Without a doubt, Apple's economic moat, a term Buffett is famous for coming up with, stems from its incredible brand recognition. At a market capitalization of $2.8 trillion right now, and with the stock trading at a trailing P/E ratio of 30, Apple is obviously selling at a much higher premium than when Buffett got involved.
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One of the best investments in recent years was the decision to buy shares of Apple (NASDAQ: AAPL). Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), the conglomerate that Warren Buffett has run for nearly 60 years, owned a lot of different stocks over the years. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Neil Patel has positions in Berkshire Hathaway.
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One of the best investments in recent years was the decision to buy shares of Apple (NASDAQ: AAPL). Apple's attractive qualities It's not difficult to figure out why Buffett was drawn to Apple more than seven years ago. At a market capitalization of $2.8 trillion right now, and with the stock trading at a trailing P/E ratio of 30, Apple is obviously selling at a much higher premium than when Buffett got involved.
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One of the best investments in recent years was the decision to buy shares of Apple (NASDAQ: AAPL). Buffett realized that a more accurate assessment of Apple would be possible by viewing it as a consumer brand instead of just a tech business. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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14322.0
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2023-08-13 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-60
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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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Top Large-Cap Growth Stocks
High Momentum Stocks
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Financial Planning 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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14323.0
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2023-08-13 00:00:00 UTC
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EXCLUSIVE-SoftBank in talks to buy Vision Fund's 25% stake in Arm -sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-softbank-in-talks-to-buy-vision-funds-25-stake-in-arm-sources
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nan
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nan
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By Echo Wang and Anirban Sen
NEW YORK, Aug 13 (Reuters) - SoftBank Group Corp 9984.T is in talks to acquire the 25% stake in Arm Ltd it does not directly own from Vision Fund 1 (VF1), a $100 billion investment fund it raised in 2017, according to people familiar with the matter, potentially delivering a win for investors who have waited years for strong returns.
The discussions come as Softbank is preparing to list the chip designer on Nasdaq next month at a valuation of $60 billion to $70 billion.
If the negotiations lead to a deal, the Japanese tech investor would be delivering a major, immediate windfall to VF1 investors, including Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala. They nursed losses after many of Softbank's bets on startups such as workspace provider WeWork Inc WE.N and ride-sharing firm Didi Global 92Sy.MU soured.
The alternative -- letting VF1 sell its Arm shares in the stock market over time following the initial public offering (IPO) -- would typically take at least one to two years given the size of the stake. It would also be more risky for the fund's investors since it is possible that Arm's shares could drop following the IPO.
VF1 returned to profitability in the latest quarter thanks to investors' excitement around artificial intelligence boosting the value of some of the startups in which it invested. Yet its previous losses prevented SoftBank from securing outside investors for Vision Fund 2 (VF2), whose $56 billion in capital came from the Japanese firm and its management, including Chief Executive Masayoshi Son.
A big windfall for VF1 investors could boost SoftBank's chances of tapping them for capital again in the future. It has been considering raising a third Vision Fund.
Son, who has hired investment bank Raine Group to advise SoftBank on the negotiations, has recused himself from VF1's deliberations on the matter so that the fund makes a decision independently in the interest of its investors, the sources said.
VF1's investment committee and SoftBank's investment advisory board, attended by fund investor representatives, are handling the negotiations, one of the sources added.
The exact valuation for Arm that the two sides are discussing for their transaction could not be learned, and the sources cautioned that it is possible that no agreement will be reached.
If a deal is inked, SoftBank would be selling fewer Arm shares in the IPO and would be likely retaining a stake of between 85% and 90%, according to the sources, who requested anonymity because the negotiations are confidential.
SoftBank, VF1 and Arm declined to comment. Raine did not immediately respond to requests for comment.
CORNERSTONE INVESTORS
Arm's IPO would be a boon not just for VF1 but also for SoftBank, which reported its third consecutive quarterly loss last week. It was hit by declines in the valuations of major holdings such as Chinese e-commerce firm Alibaba Group 9988.HK, German telecommunications company Deutsche Telekom DTEGn.DE and U.S. wireless carrier T-Mobile U.S. TMUS.O.
SoftBank, which took Arm private for $32 billion in 2016, sold a 25% stake in the company to VF1 for $8 billion in 2017. SoftBank has also been in talks with several technology companies about bringing them onboard as cornerstone investors in Arm ahead of its IPO, including Amazon.com Inc AMZN.O, Reuters has reported.
SoftBank last week said VF1 delivered a gain of $12.4 billion on $89.6 billion of investments, while VF2 carried a $18.6 billion loss on $51.8 billion of investments.
The investment giant has been in "defense mode" since May 2022 after technology valuations crashed amid a rise in interest rates and economic uncertainty. But in June, Son said he was planning to shift to "offence" mode amid excitement over advances in artificial intelligence.
SoftBank began preparations for an IPO of Arm after a deal to sell the company to Nvidia Corp NVDA.O for $40 billion collapsed last year over objections from U.S. and European antitrust regulators. Arm's IPO could now raise up to $10 billion.
Arm's business has fared better than the broader chip industry because it licenses designs rather than paying to make processing systems itself. Its technology has become ubiquitous in smart phones and data centers, delivering lucrative royalty payments. Yet demand for smart phones has weakened lately, weighing on Arm's earnings.
(Reporting by Echo Wang and Anirban Sen in New York; Editing by Greg Roumeliotis and Mark Porter)
((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Yet its previous losses prevented SoftBank from securing outside investors for Vision Fund 2 (VF2), whose $56 billion in capital came from the Japanese firm and its management, including Chief Executive Masayoshi Son. Son, who has hired investment bank Raine Group to advise SoftBank on the negotiations, has recused himself from VF1's deliberations on the matter so that the fund makes a decision independently in the interest of its investors, the sources said. It was hit by declines in the valuations of major holdings such as Chinese e-commerce firm Alibaba Group 9988.HK, German telecommunications company Deutsche Telekom DTEGn.DE and U.S. wireless carrier T-Mobile U.S. TMUS.O.
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By Echo Wang and Anirban Sen NEW YORK, Aug 13 (Reuters) - SoftBank Group Corp 9984.T is in talks to acquire the 25% stake in Arm Ltd it does not directly own from Vision Fund 1 (VF1), a $100 billion investment fund it raised in 2017, according to people familiar with the matter, potentially delivering a win for investors who have waited years for strong returns. If the negotiations lead to a deal, the Japanese tech investor would be delivering a major, immediate windfall to VF1 investors, including Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala. SoftBank last week said VF1 delivered a gain of $12.4 billion on $89.6 billion of investments, while VF2 carried a $18.6 billion loss on $51.8 billion of investments.
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By Echo Wang and Anirban Sen NEW YORK, Aug 13 (Reuters) - SoftBank Group Corp 9984.T is in talks to acquire the 25% stake in Arm Ltd it does not directly own from Vision Fund 1 (VF1), a $100 billion investment fund it raised in 2017, according to people familiar with the matter, potentially delivering a win for investors who have waited years for strong returns. SoftBank, which took Arm private for $32 billion in 2016, sold a 25% stake in the company to VF1 for $8 billion in 2017. SoftBank last week said VF1 delivered a gain of $12.4 billion on $89.6 billion of investments, while VF2 carried a $18.6 billion loss on $51.8 billion of investments.
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By Echo Wang and Anirban Sen NEW YORK, Aug 13 (Reuters) - SoftBank Group Corp 9984.T is in talks to acquire the 25% stake in Arm Ltd it does not directly own from Vision Fund 1 (VF1), a $100 billion investment fund it raised in 2017, according to people familiar with the matter, potentially delivering a win for investors who have waited years for strong returns. The discussions come as Softbank is preparing to list the chip designer on Nasdaq next month at a valuation of $60 billion to $70 billion. Arm's IPO could now raise up to $10 billion.
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14324.0
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2023-08-13 00:00:00 UTC
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EXCLUSIVE-SoftBank in talks to buy Vision Fund's 25% stake in Arm -sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-softbank-in-talks-to-buy-vision-funds-25-stake-in-arm-sources-0
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nan
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nan
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By Echo Wang and Anirban Sen
NEW YORK, Aug 13 (Reuters) - SoftBank Group Corp 9984.T is in talks to acquire the 25% stake in Arm Ltd it does not directly own from Vision Fund 1 (VF1), a $100 billion investment fund it raised in 2017, according to people familiar with the matter, potentially delivering a win for investors who have waited years for strong returns.
The discussions come as SoftBank is preparing to list the chip designer on Nasdaq next month at a valuation of $60 billion to $70 billion.
If the negotiations lead to a deal, the Japanese tech investor would be delivering a major, immediate windfall to VF1 investors, including Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala. They nursed losses after many of SoftBank's bets on startups such as workspace provider WeWork Inc WE.N and ride-sharing firm Didi Global 92Sy.MU soured.
The alternative -- letting VF1 sell its Arm shares in the stock market over time following the initial public offering (IPO) -- would typically take at least one to two years given the size of the stake. It would also be more risky for the fund's investors since it is possible that Arm's shares could drop following the IPO.
VF1 returned to profitability in the latest quarter thanks to investors' excitement around artificial intelligence boosting the value of some of the startups in which it invested. Yet its previous losses prevented SoftBank from securing outside investors for Vision Fund 2 (VF2), whose $56 billion in capital came from the Japanese firm and its management, including Chief Executive Masayoshi Son.
A big windfall for VF1 investors could boost SoftBank's chances of tapping them for capital again in the future, though SoftBank currently has no plans to do so, according to the sources.
Son, who has hired investment bank Raine Group to advise SoftBank on the negotiations, has recused himself from VF1's deliberations on the matter so that the fund makes a decision independently in the interest of its investors, the sources said.
VF1's investment committee and SoftBank's investment advisory board, attended by fund investor representatives, are handling the negotiations, one of the sources added.
The exact valuation for Arm that the two sides are discussing for their transaction could not be learned, and the sources cautioned that it is possible that no agreement will be reached.
If a deal is inked, SoftBank would be selling fewer Arm shares in the IPO and would be likely retaining a stake of between 85% and 90%, according to the sources, who requested anonymity because the negotiations are confidential.
SoftBank, VF1 and Arm declined to comment. Raine did not immediately respond to requests for comment.
CORNERSTONE INVESTORS
Arm's IPO would be a boon not just for VF1 but also for SoftBank, which reported its third consecutive quarterly loss last week. It was hit by declines in the valuations of major holdings such as Chinese e-commerce firm Alibaba Group 9988.HK, German telecommunications company Deutsche Telekom DTEGn.DE and U.S. wireless carrier T-Mobile U.S. TMUS.O.
SoftBank, which took Arm private for $32 billion in 2016, sold a 25% stake in the company to VF1 for $8 billion in 2017. SoftBank has also been in talks with several technology companies about bringing them onboard as cornerstone investors in Arm ahead of its IPO, including Amazon.com Inc AMZN.O, Reuters has reported.
SoftBank last week said VF1 delivered a gain of $12.4 billion on $89.6 billion of investments, while VF2 carried a $18.6 billion loss on $51.8 billion of investments.
The investment giant has been in "defense mode" since May 2022 after technology valuations crashed amid a rise in interest rates and economic uncertainty. But in June, Son said he was planning to shift to "offence" mode amid excitement over advances in artificial intelligence.
SoftBank began preparations for an IPO of Arm after a deal to sell the company to Nvidia Corp NVDA.O for $40 billion collapsed last year over objections from U.S. and European antitrust regulators. Arm has been considering raising up to $10 billionfrom its IPO.
Arm's business has fared better than the broader chip industry because it licenses designs rather than paying to make processing systems itself. Its technology has become ubiquitous in smart phones and data centers, delivering lucrative royalty payments. Yet demand for smart phones has weakened lately, weighing on Arm's earnings.
(Reporting by Echo Wang and Anirban Sen in New York; Editing by Greg Roumeliotis and Mark Porter)
((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Yet its previous losses prevented SoftBank from securing outside investors for Vision Fund 2 (VF2), whose $56 billion in capital came from the Japanese firm and its management, including Chief Executive Masayoshi Son. Son, who has hired investment bank Raine Group to advise SoftBank on the negotiations, has recused himself from VF1's deliberations on the matter so that the fund makes a decision independently in the interest of its investors, the sources said. It was hit by declines in the valuations of major holdings such as Chinese e-commerce firm Alibaba Group 9988.HK, German telecommunications company Deutsche Telekom DTEGn.DE and U.S. wireless carrier T-Mobile U.S. TMUS.O.
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By Echo Wang and Anirban Sen NEW YORK, Aug 13 (Reuters) - SoftBank Group Corp 9984.T is in talks to acquire the 25% stake in Arm Ltd it does not directly own from Vision Fund 1 (VF1), a $100 billion investment fund it raised in 2017, according to people familiar with the matter, potentially delivering a win for investors who have waited years for strong returns. If the negotiations lead to a deal, the Japanese tech investor would be delivering a major, immediate windfall to VF1 investors, including Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala. SoftBank last week said VF1 delivered a gain of $12.4 billion on $89.6 billion of investments, while VF2 carried a $18.6 billion loss on $51.8 billion of investments.
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By Echo Wang and Anirban Sen NEW YORK, Aug 13 (Reuters) - SoftBank Group Corp 9984.T is in talks to acquire the 25% stake in Arm Ltd it does not directly own from Vision Fund 1 (VF1), a $100 billion investment fund it raised in 2017, according to people familiar with the matter, potentially delivering a win for investors who have waited years for strong returns. SoftBank has also been in talks with several technology companies about bringing them onboard as cornerstone investors in Arm ahead of its IPO, including Amazon.com Inc AMZN.O, Reuters has reported. SoftBank last week said VF1 delivered a gain of $12.4 billion on $89.6 billion of investments, while VF2 carried a $18.6 billion loss on $51.8 billion of investments.
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By Echo Wang and Anirban Sen NEW YORK, Aug 13 (Reuters) - SoftBank Group Corp 9984.T is in talks to acquire the 25% stake in Arm Ltd it does not directly own from Vision Fund 1 (VF1), a $100 billion investment fund it raised in 2017, according to people familiar with the matter, potentially delivering a win for investors who have waited years for strong returns. The discussions come as SoftBank is preparing to list the chip designer on Nasdaq next month at a valuation of $60 billion to $70 billion. SoftBank last week said VF1 delivered a gain of $12.4 billion on $89.6 billion of investments, while VF2 carried a $18.6 billion loss on $51.8 billion of investments.
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14325.0
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2023-08-13 00:00:00 UTC
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Invest Like Warren Buffett with These Stocks & ETFs
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AAPL
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https://www.nasdaq.com/articles/invest-like-warren-buffett-with-these-stocks-etfs-0
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nan
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nan
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(1:30) - How Did Warren Buffett Get Started In Investing?
(7:10) - How Has Berkshire Hathaway’s Investing Changed Over The Years?
(12:20) - Breaking Down Warren Buffett’s Current Portfolio Holdings
(19:30) - Creating Your Own Mini Berkshire Hathaway Portfolio: What Stocks Should You Consider?
(23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR
(28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time.
Berkshire Hathaway (BRK.A) reported excellent earnings last week, sending its class A shares to an all-time high. The stock is up more than 25,000 times since Buffett took control of the company in 1965, according to Barron's.
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. 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 Oracle of Omaha avoided investing in tech companies earlier in his career but changed his stance later. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own."
The SPDR MSCI USA StrategicFactors ETF QUS seeks to invest in high-quality firms with durable balance sheets and stable cash flows, trading at reasonable valuations.
The legendary investor likes companies with "economic moats," that allow 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.
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.
Fastenal FAST, MasTec MTZ and United Rentals URI are among Berkshire-like companies that investors may want to consider.
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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MasTec, Inc. (MTZ) : Free Stock Analysis Report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : 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 MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. (23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR (28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : 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 MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." (23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR (28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : 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 MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." (23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR (28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : 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 MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." (7:10) - How Has Berkshire Hathaway’s Investing Changed Over The Years?
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14326.0
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2023-08-12 00:00:00 UTC
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3 Metaverse Stocks You’ll Regret Not Buying Soon
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AAPL
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https://www.nasdaq.com/articles/3-metaverse-stocks-youll-regret-not-buying-soon
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The race to dominate the digital frontier is escalating, with the top metaverse stocks taking the lead. With advancing technology, the metaverse concept is gaining more solidity, attracting investors keen to identify the frontrunners. These companies are pioneers in the realms of virtual and augmented reality, crafting immersive digital worlds. In the second phase of the technological revolution, the top metaverse stocks are not mere passing trends; they are actively shaping the future.
From online gaming platforms to social media giants, these companies are redefining how we interact online. Consequently, they present unique investment opportunities. In this article, we will examine three companies making notable progress in the metaverse.
We will delve into their strategies, growth prospects and why disregarding them for your investment portfolio could be a regrettable oversight. Here are the top metaverse stocks to buy.
Apple (AAPL)
Source: Moab Republic / Shutterstock
Apple (NASDAQ:AAPL) has entered the metaverse with the Vision Pro, a mixed-reality headset showcasing its innovative hardware. With a 4K display and the ability to navigate through eye movement, voice commands and hand gestures, the Vision Pro offers a fully immersive experience that aligns with the concept of the metaverse. Despite its hefty price tag of $3,499, Apple’s loyal and affluent customer base may not be deterred.
Despite mixed financial results in the fiscal third quarter of 2023, including a 1.4% decline in revenue and a 7% decline in MacBook revenue, Apple’s services business reported $21.2 billion in revenue, an 8% sequential increase.
The shift towards a more services-oriented business and rock-solid balance sheet means it’s well-equipped to be one of those top metaverse stocks.
Roblox (RBLX)
Source: Miguel Lagoa / Shutterstock.com
Roblox (NYSE:RBLX) provides a multiverse experience in one app with a variety of games and environments. Roblox’s dedication to expanding its ecosystem is evident in its 22% year-over-year growth in total bookings and a 49% increase in research and development spending.
The company has made some strides to expand its reach. Recently, it started targeting users aged 17 and above with more mature content, aiming to retain its largest demographic, accounting for about 38% of its daily active users. The company announced plans to introduce experiences specifically suited for this age group, reflecting a more responsible TikTok-like content offering. That move by Roblox signifies a strategic shift to engage an older audience while maintaining safety standards, setting it apart from platforms like TikTok that lack these clear controls.
Despite these developments, the market reacted negatively overall to its latest earnings report. Still, Wall Street believes its share is undervalued. It has a $39.94 price target at the time of writing, representing a significant upside.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Meta Platforms (NASDAQ:META) has taken a big risk by betting on the metaverse, to the extent that it even changed its name to reflect this particular focus. In spite of recent job cuts in its dedicated VR/AR unit called Reality Labs, Meta has not stopped pouring substantial amounts of money into the segment, investing nearly $14 billion in 2022. The company’s chief executive officer (CEO), Mark Zuckerberg, has reiterated the company’s commitment to the metaverse vision.
News headlines have lambasted META stock and virtually all other metaverse stocks as an unrealistic and extremely expensive pipedream. The future where we all wear VR/AR headsets and interact in a virtual space may seem far away — even unreachably so. But it’s crucial to remember that the metaverse is meant to be a descriptive (and emergent) concept, not a normative one. In other words, we don’t all need to be strapped into $3,000 headsets to say the metaverse is unfolding, and there’s a good reason to argue it’s already here.
From Bitmoji avatars to NFTs to virtual concerts, elements of the metaverse exist in our daily digital lives. These manifestations may not fit the grandiose visions of a fully immersive virtual world, but they represent tangible steps towards a more interconnected and virtualized reality.
The internet didn’t revolutionize commerce overnight, and the metaverse won’t either. Just as the early days of the internet included dial-up connections, rudimentary web design and skepticism about online shopping, the metaverse is now in its infancy. So, it has technological limitations, high costs and a lack of widespread understanding or acceptance. But that doesn’t mean it’s a fleeting trend or a doomed venture. META understands this reality perhaps most of all and is, therefore, one of the top metaverse stocks to keep on your watchlist.
On the date of publication, Matthew Farley did not hold (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 Metaverse Stocks You’ll Regret Not Buying Soon 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 Apple (NASDAQ:AAPL) has entered the metaverse with the Vision Pro, a mixed-reality headset showcasing its innovative hardware. With a 4K display and the ability to navigate through eye movement, voice commands and hand gestures, the Vision Pro offers a fully immersive experience that aligns with the concept of the metaverse. In spite of recent job cuts in its dedicated VR/AR unit called Reality Labs, Meta has not stopped pouring substantial amounts of money into the segment, investing nearly $14 billion in 2022.
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Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) has entered the metaverse with the Vision Pro, a mixed-reality headset showcasing its innovative hardware. With a 4K display and the ability to navigate through eye movement, voice commands and hand gestures, the Vision Pro offers a fully immersive experience that aligns with the concept of the metaverse. Despite mixed financial results in the fiscal third quarter of 2023, including a 1.4% decline in revenue and a 7% decline in MacBook revenue, Apple’s services business reported $21.2 billion in revenue, an 8% sequential increase.
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Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) has entered the metaverse with the Vision Pro, a mixed-reality headset showcasing its innovative hardware. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The race to dominate the digital frontier is escalating, with the top metaverse stocks taking the lead. Meta Platforms (META) Source: Blue Planet Studio / Shutterstock.com Meta Platforms (NASDAQ:META) has taken a big risk by betting on the metaverse, to the extent that it even changed its name to reflect this particular focus.
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Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) has entered the metaverse with the Vision Pro, a mixed-reality headset showcasing its innovative hardware. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The race to dominate the digital frontier is escalating, with the top metaverse stocks taking the lead. META understands this reality perhaps most of all and is, therefore, one of the top metaverse stocks to keep on your watchlist.
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14327.0
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2023-08-12 00:00:00 UTC
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1 Apple Chip Supplier Might Hold the Key to Understanding When iPhone Sales Rebound
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AAPL
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https://www.nasdaq.com/articles/1-apple-chip-supplier-might-hold-the-key-to-understanding-when-iphone-sales-rebound
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nan
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nan
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Thanks to guidance from mobile chipmakers in recent months, it was no surprise that Apple (NASDAQ: AAPL) reported sluggish iPhone sales for its quarter ended June 2023. The tech titan's phone revenue declined 2% year over year or notched a slight increase when excluding the effects of foreign currency exchange rates.
To this day, the iPhone still represents more than half of all of Apple's revenue ($157 billion of the $294 billion total through the first nine months of Apple's current fiscal year). More robust, profitable iPhone growth will be a must for Apple stock to justify its high premium of 30 times trailing-12-month earnings (or 28 times free cash flow). Top mobile chip supplier Skyworks Solutions (NASDAQ: SWKS) provides some hints on what could lay ahead.
Betting on something other than iPhone
Skyworks Solutions is a top designer and manufacturer of mobile chips -- the stuff that enables devices like smartphones to connect to a wireless network or Wi-Fi. This makes it especially reliant on consumer electronics sales, an area of the semiconductor industry that has been beaten up badly after massive household spending during the first two years of the pandemic.
Apple is responsible for much of this consumer electronics exposure, with 64% of Skyworks' total revenue of $1.07 billion in its own June 2023 quarter tied to Apple (so, about $685 million in sales from Apple). Of that total, about 85% comes from the iPhone specifically, with devices like the iPad, Mac, and Apple Watch making up the rest.
Suffice it to say the iPhone is an important product for Skyworks. This is a reliance Skyworks has been working hard to diversify for many years but to limited success thus far.
Apple has said it expects some sequential increases in iPhone sales for the next quarter, which will end in September, and Skyworks seems to confirm this. However, this is largely a seasonal effect from new iPhone model launches as well as device manufacturing ramping up through the year in support of the holiday shopping frenzy every late autumn and early winter. Skyworks said its September revenue is expected to be $1.215 billion at the midpoint of guidance, up about 13% to 14% from last quarter, but importantly, down about 14% from the same period in 2022.
In a further hint that Skyworks' diversification efforts, and not the Apple iPhone, are what's driving the sequential increase (but annual decline), Skyworks' CEO, Liam Griffin, rattled off a number of new chip product launches. Wi-Fi 6E and early Wi-Fi 7 modems are rolling out. 5G network infrastructure buildout is ongoing. And chips for smart home devices like Samsung soundbars and wearable tech like earbuds are growing markets for Skyworks.
Most notable, perhaps, is Skyworks' steady ramp into automotive, which it jump-started with the purchase of designs from peer Silicon Labs two years ago. Griffin said sales to automakers are now well over a $200 million-per-year run rate.
Is iPhone growth done for?
When adding up the sum of all commentary, it's safe to assume that Apple's marquee iPhone business shouldn't be relied upon as a key growth driver anymore -- at least, not anytime soon. Smartphones have matured into a more stable, though highly profitable, source of income for Apple and its suppliers like Skyworks.
New devices will propel growth going forward. For Apple, maybe it will be Vision Pro, which Skyworks undoubtedly will supply connectivity chips for. And for Skyworks, it still has work to do to diversify its business. But early work in automotive continues to look promising. Late in 2022, Skyworks' management had commented that auto sales were at about $200 million per year, so Griffin's recent dialogue indicates smart cars are a modest growth outlet.
For myself and my ownership of both Apple and Skyworks shares, I rank both as a hold. Apple has a high premium it will need to prove with a return to growth in 2024. Until then, I believe the Apple stock run-up is mostly over.
As for Skyworks, it has a far cheaper valuation at less than 17 times trailing-12-month earnings and just 12 times free cash flow. However, overall it isn't a growth business anymore -- at least, not until it can scale up its non-smartphone and non-Apple business to a more significant level. For now, Skyworks needs an iPhone rebound, and that doesn't exactly look like a promising bet for 2023.
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Nicholas Rossolillo and his clients have positions in Apple and Skyworks Solutions. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Silicon Laboratories and Skyworks Solutions. 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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Thanks to guidance from mobile chipmakers in recent months, it was no surprise that Apple (NASDAQ: AAPL) reported sluggish iPhone sales for its quarter ended June 2023. Betting on something other than iPhone Skyworks Solutions is a top designer and manufacturer of mobile chips -- the stuff that enables devices like smartphones to connect to a wireless network or Wi-Fi. However, this is largely a seasonal effect from new iPhone model launches as well as device manufacturing ramping up through the year in support of the holiday shopping frenzy every late autumn and early winter.
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Thanks to guidance from mobile chipmakers in recent months, it was no surprise that Apple (NASDAQ: AAPL) reported sluggish iPhone sales for its quarter ended June 2023. More robust, profitable iPhone growth will be a must for Apple stock to justify its high premium of 30 times trailing-12-month earnings (or 28 times free cash flow). Top mobile chip supplier Skyworks Solutions (NASDAQ: SWKS) provides some hints on what could lay ahead.
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Thanks to guidance from mobile chipmakers in recent months, it was no surprise that Apple (NASDAQ: AAPL) reported sluggish iPhone sales for its quarter ended June 2023. To this day, the iPhone still represents more than half of all of Apple's revenue ($157 billion of the $294 billion total through the first nine months of Apple's current fiscal year). Apple is responsible for much of this consumer electronics exposure, with 64% of Skyworks' total revenue of $1.07 billion in its own June 2023 quarter tied to Apple (so, about $685 million in sales from Apple).
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Thanks to guidance from mobile chipmakers in recent months, it was no surprise that Apple (NASDAQ: AAPL) reported sluggish iPhone sales for its quarter ended June 2023. Betting on something other than iPhone Skyworks Solutions is a top designer and manufacturer of mobile chips -- the stuff that enables devices like smartphones to connect to a wireless network or Wi-Fi. Apple is responsible for much of this consumer electronics exposure, with 64% of Skyworks' total revenue of $1.07 billion in its own June 2023 quarter tied to Apple (so, about $685 million in sales from Apple).
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14328.0
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2023-08-12 00:00:00 UTC
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3 Retailers To Watch Closely Next Week
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AAPL
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https://www.nasdaq.com/articles/3-retailers-to-watch-closely-next-week
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nan
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nan
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With earnings season well underway, investors are watching pretty much every industry closely. Banks, for example, need to show they can continue benefiting from the rising rates cycle, while tech needs to show it's finally returning to consistent growth. Both industries have seen just how exposed, for better or for worse, their bottom lines can be to inflation.
Another industry that's learned that lesson is retail, and it's easy to see why. As inflation bites, prices rise, and wages are usually slow to catch up. This drives up consumers' cost of living, with many households forced to tighten their spending.
Even though inflation readings have been starting to cool in recent readings, this will still be a critical earnings season for most of them. Here are three retailers in particular who are worth tracking into next week's releases.
Target
Target Corp (NYSE: TGT) is coming off the back of a poor six months, with their shares trading down nearly 30% since February. It means they're back at multi-year lows and very much under pressure from the bears. Next week will see them report Q2 earnings, where investors will be looking for signs of a turnaround across the board.
In order for shares to have enough juice to turn around, revenue will need to have stopped its slide or at least reduced its steepness, while margins will also need to show improvement.
If you're a believer in the turnaround potential, however, there is a lot to like about them right now. Their dividend is as strong as ever and was only just increased by management, who has also been buying back shares.
Both of these are extremely bullish signals, with the former indicating management's confidence in their earnings potential and the latter their belief that Target's shares are currently trading below fair value.
However, these didn't stop the team at Raymond James from downgrading their rating on Target two weeks ago. Analysts Bobby Griffin and Mitch Ingles highlighted their concerns that broader industry trends remain soft and that Target is unfavorably positioned versus its peers to further drops in consumer spending.
But with shares trading a full 50% off their all-time highs, you have to think much of the bear's case is already baked into the price. Any upside surprise next week could spark a fiery rally.
Ross Stores
Ross Stores Inc (NASDAQ: ROST), on the other hand, has weathered the past year, and indeed the past six months, far better than Target. Their shares have been flat since February and are only 15% off their previous all-time high.
When they report next week, investors will be looking for further signs of Ross' seemingly unique resilience on metrics such as same-store sales.
There's an argument to be made that Ross' position in the market as a discount retailer with a target market of low-income consumers has insulated it from many of the headwinds which have hurt Target.
No matter how tight money gets, people still need to shop for basic necessities such as clothes, and Ross remains a go-to brand for this. In many ways, it could be said that inflation has been good for Ross, so investors could nearly treat a position there as a hedge going forward.
They offer a decent dividend yield of 1.2% and have a management that's well regarded on Wall Street. Their last earnings report saw management guiding down on forecasts, so investors will be looking to see if this was overly cautious or on the money next week.
Walmart
Walmart Inc (NYSE: WMT) is by far the strongest of the three retailers highlighted here. Their shares are already back at all-time highs and, in that regard, are trading more like growth stocks favoirte Apple Inc's (NASDAQ: AAPL) than many of their retail peers right now.
This outperformance hasn't gone unnoticed, and while Target was being downgraded, Walmart was being upgraded. The team at Piper Sandler has boosted their rating to Overweight from Equal-weight ahead of next week's earnings, as they expect recent price reductions to have increased sales.
Furthermore, as inflation continues to show signs of cooling, analyst Edward Yruma sees Walmart extending its market share, and he gave them a fresh price target of $210. From where shares closed on Wednesday, this points to further upside in the region of 30%.
Investors will be looking for next week's numbers to confirm this upside surprise, and if they do, then Walmart shares should have no trouble punching further up into new all-time highs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Their shares are already back at all-time highs and, in that regard, are trading more like growth stocks favoirte Apple Inc's (NASDAQ: AAPL) than many of their retail peers right now. Analysts Bobby Griffin and Mitch Ingles highlighted their concerns that broader industry trends remain soft and that Target is unfavorably positioned versus its peers to further drops in consumer spending. The team at Piper Sandler has boosted their rating to Overweight from Equal-weight ahead of next week's earnings, as they expect recent price reductions to have increased sales.
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Their shares are already back at all-time highs and, in that regard, are trading more like growth stocks favoirte Apple Inc's (NASDAQ: AAPL) than many of their retail peers right now. Ross Stores Ross Stores Inc (NASDAQ: ROST), on the other hand, has weathered the past year, and indeed the past six months, far better than Target. There's an argument to be made that Ross' position in the market as a discount retailer with a target market of low-income consumers has insulated it from many of the headwinds which have hurt Target.
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Their shares are already back at all-time highs and, in that regard, are trading more like growth stocks favoirte Apple Inc's (NASDAQ: AAPL) than many of their retail peers right now. Target Target Corp (NYSE: TGT) is coming off the back of a poor six months, with their shares trading down nearly 30% since February. Furthermore, as inflation continues to show signs of cooling, analyst Edward Yruma sees Walmart extending its market share, and he gave them a fresh price target of $210.
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Their shares are already back at all-time highs and, in that regard, are trading more like growth stocks favoirte Apple Inc's (NASDAQ: AAPL) than many of their retail peers right now. Target Target Corp (NYSE: TGT) is coming off the back of a poor six months, with their shares trading down nearly 30% since February. Furthermore, as inflation continues to show signs of cooling, analyst Edward Yruma sees Walmart extending its market share, and he gave them a fresh price target of $210.
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14329.0
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2023-08-11 00:00:00 UTC
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US STOCKS-Wall St slides as growth stocks fall after producer prices data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-growth-stocks-fall-after-producer-prices-data
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nan
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nan
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By Bansari Mayur Kamdar and Johann M Cherian
Aug 11 (Reuters) - Wall Street fell on Friday as rate-sensitive technology and growth stocks dropped after hotter-than-expected producer prices data for July sent U.S. bond yields higher.
U.S. producer price index (PPI) climbed 0.8% in the 12 months leading to July, up from a 0.2% rise in the previous month, as service costs increased. Economists polled by Refinitiv had expected a 0.7% gain.
"The PPI data shows that inflation is still a concern," said Adam Sarhan, chief executive of 50 Park Investments.
Though traders broadly expect the Federal Reserve to not tighten credit conditions for the remainder of the year, bets for no rate hike in September slipped to 88.5% from 90% before the data landed.IRPR
"The market needs to pause and digest the inflation data which is coming in mixed, where it's not clear what the Fed's going do next. Even if the Fed pauses one time, the question becomes what will it be doing for the rest of the year," Sarhan added.
Yield on the 2-year treasury note US2YT=RR, that moves in line with near-term interest rate expectations, climbed to 4.9% after the data, pressuring rate-sensitive megacap growth names. US/
Tesla TSLA.O, Nvidia NVDA.O and Apple AAPL.O lost between 0.4% and 1.8%.
Benchmark U.S. indexes finished marginally higher in the previous session as worries about the U.S. economy's longer-term prospects and concerns over further growth in stocks eclipsed milder-than-feared consumer prices data that had initially sent shares soaring.
At 09:48 a.m. ET, the Dow Jones Industrial Average .DJI was down 34.32 points, or 0.10%, at 35,141.83, the S&P 500 .SPX was down 19.21 points, or 0.43%, at 4,449.62, and the Nasdaq Composite .IXIC was down 101.36 points, or 0.74%, at 13,636.63.
The tech-heavy Nasdaq .IXIC and the S&P 500 .SPX were on track to end their second week lower due to a drop in megacap growth and technology stocks that have led outsized gains this year.
Ten of the 11 major S&P 500 sectors declined on Friday, with tech stocks .SPLRCT leading losses, down 0.8%.
U.S.-listed shares of Chinese companies Alibaba BABA.N and JD.com JD.O fell 3.0% and 5.4%, respectively, as Beijing's latest stimulus measures disappointed investors, while fresh data showed that the country's post-pandemic recovery was losing steam.
Declining issues outnumbered advancers by a 1.85-to-1 ratio on the NYSE and a 1.75-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and three new lows, while the Nasdaq recorded 18 new highs and 82 new lows.
Growth stocks slide as bond yields weigh since late July https://tmsnrt.rs/3YC8Qag
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Vinay Dwivedi)
((BansariMayur.Kamdar@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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US/ Tesla TSLA.O, Nvidia NVDA.O and Apple AAPL.O lost between 0.4% and 1.8%. By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - Wall Street fell on Friday as rate-sensitive technology and growth stocks dropped after hotter-than-expected producer prices data for July sent U.S. bond yields higher. Benchmark U.S. indexes finished marginally higher in the previous session as worries about the U.S. economy's longer-term prospects and concerns over further growth in stocks eclipsed milder-than-feared consumer prices data that had initially sent shares soaring.
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US/ Tesla TSLA.O, Nvidia NVDA.O and Apple AAPL.O lost between 0.4% and 1.8%. By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - Wall Street fell on Friday as rate-sensitive technology and growth stocks dropped after hotter-than-expected producer prices data for July sent U.S. bond yields higher. U.S. producer price index (PPI) climbed 0.8% in the 12 months leading to July, up from a 0.2% rise in the previous month, as service costs increased.
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US/ Tesla TSLA.O, Nvidia NVDA.O and Apple AAPL.O lost between 0.4% and 1.8%. By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - Wall Street fell on Friday as rate-sensitive technology and growth stocks dropped after hotter-than-expected producer prices data for July sent U.S. bond yields higher. Though traders broadly expect the Federal Reserve to not tighten credit conditions for the remainder of the year, bets for no rate hike in September slipped to 88.5% from 90% before the data landed.IRPR "The market needs to pause and digest the inflation data which is coming in mixed, where it's not clear what the Fed's going do next.
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US/ Tesla TSLA.O, Nvidia NVDA.O and Apple AAPL.O lost between 0.4% and 1.8%. By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - Wall Street fell on Friday as rate-sensitive technology and growth stocks dropped after hotter-than-expected producer prices data for July sent U.S. bond yields higher. Economists polled by Refinitiv had expected a 0.7% gain.
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14330.0
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2023-08-11 00:00:00 UTC
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GQG Partners adds Nvidia, Amazon, Apple in Q2
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AAPL
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https://www.nasdaq.com/articles/gqg-partners-adds-nvidia-amazon-apple-in-q2
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nan
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nan
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NEW YORK, Aug 11 (Reuters) - Australia-listed investment firm GQG Partners added more shares of Nvidia Corp in the second quarter, ending June with $5.9 billion invested in the chipmaker, according to regulatory filings on Friday.
Shares in Nvidia are up roughly 180% year to date and reached $1 trillion in market capitalization, amid excitement over advancements in artificial intelligence.
In the beginning of June, Chief Investment Officer Rajiv Jain told Reuters he had been meaningfully increasing the firm's position in Nvidia, as he believed the stock had room for more gains.
GQG held 13.9 million shares of Nvidia at the end of June, or 5.7 million more than it did on March 31.
The firm also built a new position in Amazon.com Inc of roughly $2 billion, besides increasing existing positions in some of the other so-called "magnificent seven" megacap stocks": Alphabet Inc , Apple Inc and Microsoft Corp .
Fort Lauderdale, Florida-based GQG, manages $108 billion in assets. (Reporting by Carolina Mandl in New York, editing by Deepa Babington) ((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;)) Keywords: USA FUNDS/GQG PARTNERS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NEW YORK, Aug 11 (Reuters) - Australia-listed investment firm GQG Partners added more shares of Nvidia Corp in the second quarter, ending June with $5.9 billion invested in the chipmaker, according to regulatory filings on Friday. Shares in Nvidia are up roughly 180% year to date and reached $1 trillion in market capitalization, amid excitement over advancements in artificial intelligence. In the beginning of June, Chief Investment Officer Rajiv Jain told Reuters he had been meaningfully increasing the firm's position in Nvidia, as he believed the stock had room for more gains.
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NEW YORK, Aug 11 (Reuters) - Australia-listed investment firm GQG Partners added more shares of Nvidia Corp in the second quarter, ending June with $5.9 billion invested in the chipmaker, according to regulatory filings on Friday. In the beginning of June, Chief Investment Officer Rajiv Jain told Reuters he had been meaningfully increasing the firm's position in Nvidia, as he believed the stock had room for more gains. GQG held 13.9 million shares of Nvidia at the end of June, or 5.7 million more than it did on March 31.
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NEW YORK, Aug 11 (Reuters) - Australia-listed investment firm GQG Partners added more shares of Nvidia Corp in the second quarter, ending June with $5.9 billion invested in the chipmaker, according to regulatory filings on Friday. In the beginning of June, Chief Investment Officer Rajiv Jain told Reuters he had been meaningfully increasing the firm's position in Nvidia, as he believed the stock had room for more gains. The firm also built a new position in Amazon.com Inc of roughly $2 billion, besides increasing existing positions in some of the other so-called "magnificent seven" megacap stocks": Alphabet Inc , Apple Inc and Microsoft Corp .
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NEW YORK, Aug 11 (Reuters) - Australia-listed investment firm GQG Partners added more shares of Nvidia Corp in the second quarter, ending June with $5.9 billion invested in the chipmaker, according to regulatory filings on Friday. Shares in Nvidia are up roughly 180% year to date and reached $1 trillion in market capitalization, amid excitement over advancements in artificial intelligence. In the beginning of June, Chief Investment Officer Rajiv Jain told Reuters he had been meaningfully increasing the firm's position in Nvidia, as he believed the stock had room for more gains.
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14331.0
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2023-08-11 00:00:00 UTC
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Russian ministry bans employees from using iPhones for work - Ifax
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AAPL
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https://www.nasdaq.com/articles/russian-ministry-bans-employees-from-using-iphones-for-work-ifax
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nan
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nan
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Aug 11 (Reuters) - Russia's ministry of digital development has banned employees from using Apple iPhones and iPads for work purposes, Interfax news agency reported on Friday citing the minister, Maksut Shadaev.
"A ban is imposed on using (Apple) mobile devices - smartphones and tablets - to access work applications and work email exchange," he told reporters at a digital conference, the agency said.
"It's allowed to use iPhones for personal needs," Shadaev said.
The ministry issued the ban two months after claims by the Russian main domestic security service, the FSB, that several thousands Apple devices were compromised as a result of an espionage operation by the U.S.
Apple denied the allegations. The U.S. National Security Agency, which the FSB said cooperated with Apple, declined to comment on the claims at the time. (Reporting by Maria Tsvetkova Editing by Marguerita Choy) Keywords: RUSSIA IPHONE/BAN
The views and 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 11 (Reuters) - Russia's ministry of digital development has banned employees from using Apple iPhones and iPads for work purposes, Interfax news agency reported on Friday citing the minister, Maksut Shadaev. The ministry issued the ban two months after claims by the Russian main domestic security service, the FSB, that several thousands Apple devices were compromised as a result of an espionage operation by the U.S. Apple denied the allegations. The U.S. National Security Agency, which the FSB said cooperated with Apple, declined to comment on the claims at the time.
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Aug 11 (Reuters) - Russia's ministry of digital development has banned employees from using Apple iPhones and iPads for work purposes, Interfax news agency reported on Friday citing the minister, Maksut Shadaev. The ministry issued the ban two months after claims by the Russian main domestic security service, the FSB, that several thousands Apple devices were compromised as a result of an espionage operation by the U.S. Apple denied the allegations. (Reporting by Maria Tsvetkova Editing by Marguerita Choy) Keywords: RUSSIA IPHONE/BAN The views and 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 11 (Reuters) - Russia's ministry of digital development has banned employees from using Apple iPhones and iPads for work purposes, Interfax news agency reported on Friday citing the minister, Maksut Shadaev. "A ban is imposed on using (Apple) mobile devices - smartphones and tablets - to access work applications and work email exchange," he told reporters at a digital conference, the agency said. The ministry issued the ban two months after claims by the Russian main domestic security service, the FSB, that several thousands Apple devices were compromised as a result of an espionage operation by the U.S. Apple denied the allegations.
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Aug 11 (Reuters) - Russia's ministry of digital development has banned employees from using Apple iPhones and iPads for work purposes, Interfax news agency reported on Friday citing the minister, Maksut Shadaev. The ministry issued the ban two months after claims by the Russian main domestic security service, the FSB, that several thousands Apple devices were compromised as a result of an espionage operation by the U.S. Apple denied the allegations. The U.S. National Security Agency, which the FSB said cooperated with Apple, declined to comment on the claims at the time.
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14332.0
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2023-08-11 00:00:00 UTC
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Wall St Week Ahead-Sluggish US earnings may need pick-me-up to support 2023 stock rally
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-sluggish-us-earnings-may-need-pick-me-up-to-support-2023-stock-rally
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nan
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nan
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By Lewis Krauskopf
NEW YORK, Aug 11 (Reuters) - Stock investors have been satisfied by middling U.S. corporate results so far this year but they might not be so easy to please for the rest of 2023.
As the second-quarter earnings season winds down, S&P 500 results are presenting a mixed picture, with companies beating analysts' profit expectations at the highest rate in nearly two years even as revenue beats dropped to the lowest since early 2020.
Investors appear content with that, for now. The S&P 500 has edged higher since earnings season began in July, with the benchmark index up 16% in 2023. But expectations call for corporate profits to pick up as the U.S. economy has so far defied recession fears, and investors may be far less forgiving if companies fail to deliver later this year, given the jump in equity valuations.
"Markets are expecting earnings to ... deliver above and beyond where they have been," said Eric Freedman, chief investment officer at U.S. Bank Asset Management. "This is a market that has moved up in anticipation of earnings that we have not quite gotten yet."
Overall, second-quarter earnings are expected to have fallen 3.8% from a year earlier, Refinitiv IBES data showed. That decline follows a 0.1% rise in the first quarter and a 3.2% drop in the fourth quarter of last year.
Results are expected to improve, however. Third-quarter S&P 500 earnings are seen rising 1.3% on a year-over-year basis, according to Refinitiv, before a 9.7% fourth-quarter earnings rise and a 11.9% full-year increase in 2024.
Meanwhile, the S&P 500 has become more richly valued. The index was trading at 19.1 times forward 12-month earnings estimates as of Thursday, compared to its long-term average of 15.6 times, according to Refinitiv Datastream. The P/E ratio ended 2022 at just below 17 times.
This year's valuation expansion accounted for 86% of the S&P 500's year-to-date return through July, with the rest of the market's boost coming from positive changes to earnings estimates, an analysis by Credit Suisse equity strategists showed.
"At this point, valuations have run ahead of the fundamentals and so companies now have to prove that they can generate earnings growth," said Anthony Saglimbene, chief market strategist at Ameriprise Financial.
Q2 RESULTS
With 91% of S&P 500 companies having reported second-quarter results, 78.7% posted earnings above analysts' expectations, according to Refinitiv IBES. In aggregate, companies are reporting earnings 7.7% above expectations, up from a long-term average of 4.1% above estimates. Both the beat rate and surprise factor are coming in at their highest rates since the third quarter of 2021.
However, for revenue, only 62.9% of companies have topped expectations - the lowest beat rate since the first quarter of 2020.
Stock reaction to earnings results has also been tepid, with share prices posting weaker responses to both beats and misses than the average over the past five years, analyst Julian Emanuel of Evercore ISI said. The average stock fell 0.6% after results in the second quarter, Emanuel said in a note on Thursday.
"We went from a market that is saying, 'Earnings had to back it up' to 'Thankfully earnings didn't screw this up,'" said John Lynch, chief investment officer for Comerica Wealth Management. "That just gets us into a more expensive realm."
Meanwhile, there have also been some high profile disappointments, with Apple shares dropping 4.8% after the iPhone maker's weak sales forecast. Other megacap companies, such as Amazon and Alphabet , have seen a positive investor response to their reports.
Companies reporting results next week include key retailers, such as Walmart and Home Depot , while the release of monthly retail sales on Tuesday also could influence markets.
While investors generally have turned more positive about the economic outlook, some still are wary of a recession stemming from the delayed impact of higher interest rates, as indicators such as the Treasury yield curve are still flashing warning signs.
Such a downturn could severely change the prospects for corporate earnings and potentially weigh on valuations. During recessions, earnings fall at a 24% annual rate on average, according to Ned Davis Research.
"There is optimism, but I still wonder going into next year, are we too optimistic, from a consensus standpoint," said Comerica's Lynch. "Just because we didn't have a recession this year, that yield curve continues to point to one."
https://tmsnrt.rs/3rpjtk4
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Richard Chang) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) ((Wall St Week Ahead runs every Friday. For thedaily stock marketreport, please click [.N])) Keywords: USA STOCKS/WEEKAHEAD (SCHEDULED COLUMN, GRAPHIC)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This year's valuation expansion accounted for 86% of the S&P 500's year-to-date return through July, with the rest of the market's boost coming from positive changes to earnings estimates, an analysis by Credit Suisse equity strategists showed. Stock reaction to earnings results has also been tepid, with share prices posting weaker responses to both beats and misses than the average over the past five years, analyst Julian Emanuel of Evercore ISI said. While investors generally have turned more positive about the economic outlook, some still are wary of a recession stemming from the delayed impact of higher interest rates, as indicators such as the Treasury yield curve are still flashing warning signs.
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As the second-quarter earnings season winds down, S&P 500 results are presenting a mixed picture, with companies beating analysts' profit expectations at the highest rate in nearly two years even as revenue beats dropped to the lowest since early 2020. With 91% of S&P 500 companies having reported second-quarter results, 78.7% posted earnings above analysts' expectations, according to Refinitiv IBES. "We went from a market that is saying, 'Earnings had to back it up' to 'Thankfully earnings didn't screw this up,'" said John Lynch, chief investment officer for Comerica Wealth Management.
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As the second-quarter earnings season winds down, S&P 500 results are presenting a mixed picture, with companies beating analysts' profit expectations at the highest rate in nearly two years even as revenue beats dropped to the lowest since early 2020. With 91% of S&P 500 companies having reported second-quarter results, 78.7% posted earnings above analysts' expectations, according to Refinitiv IBES. Stock reaction to earnings results has also been tepid, with share prices posting weaker responses to both beats and misses than the average over the past five years, analyst Julian Emanuel of Evercore ISI said.
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As the second-quarter earnings season winds down, S&P 500 results are presenting a mixed picture, with companies beating analysts' profit expectations at the highest rate in nearly two years even as revenue beats dropped to the lowest since early 2020. The index was trading at 19.1 times forward 12-month earnings estimates as of Thursday, compared to its long-term average of 15.6 times, according to Refinitiv Datastream. With 91% of S&P 500 companies having reported second-quarter results, 78.7% posted earnings above analysts' expectations, according to Refinitiv IBES.
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14333.0
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2023-08-11 00:00:00 UTC
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After Hours Most Active for Aug 11, 2023 : RIG, BAC, KMI, JNJ, KVUE, AMZN, NVST, QQQ, MSFT, REAL, AAPL, KHC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-11-2023-%3A-rig-bac-kmi-jnj-kvue-amzn-nvst-qqq-msft-real
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -9.23 to 15,018.84. The total After hours volume is currently 64,156,324 shares traded.
The following are the most active stocks for the after hours session:
Transocean Ltd. (RIG) is +0.02 at $8.62, with 4,914,835 shares traded. RIG's current last sale is 111.23% of the target price of $7.75.
Bank of America Corporation (BAC) is +0.03 at $31.32, with 2,626,945 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.82. BAC's current last sale is 89.49% of the target price of $35.
Kinder Morgan, Inc. (KMI) is +0.0581 at $17.84, with 1,996,110 shares traded. KMI's current last sale is 89.19% of the target price of $20.
Johnson & Johnson (JNJ) is +0.42 at $174.27, with 1,803,147 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $2.75. JNJ's current last sale is 94.71% of the target price of $184.
Kenvue Inc. (KVUE) is +0.07 at $23.79, with 1,534,747 shares traded. KVUE's current last sale is 84.96% of the target price of $28.
Amazon.com, Inc. (AMZN) is +0.09 at $138.50, with 1,422,590 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.56. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Envista Holdings Corporation (NVST) is unchanged at $33.38, with 1,359,680 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 $0.57. NVST's current last sale is 74.18% of the target price of $45.
Invesco QQQ Trust, Series 1 (QQQ) is +0.12 at $366.36, with 1,303,475 shares traded. This represents a 44.09% increase from its 52 Week Low.
Microsoft Corporation (MSFT) is +0.05 at $321.06, with 1,259,568 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".
The RealReal, Inc. (REAL) is -0.03 at $2.58, with 1,241,850 shares traded. REAL's current last sale is 86% of the target price of $3.
Apple Inc. (AAPL) is -0.17 at $177.62, with 1,182,135 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.37. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
The Kraft Heinz Company (KHC) is unchanged at $34.55, with 1,181,745 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $0.7. KHC's current last sale is 86.38% of the target price of $40.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. Apple Inc. (AAPL) is -0.17 at $177.62, with 1,182,135 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Apple Inc. (AAPL) is -0.17 at $177.62, with 1,182,135 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.17 at $177.62, with 1,182,135 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 64,156,324 shares traded.
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Apple Inc. (AAPL) is -0.17 at $177.62, with 1,182,135 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 64,156,324 shares traded.
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14334.0
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2023-08-11 00:00:00 UTC
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How to Play the Pullback in Microsoft Stock
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AAPL
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https://www.nasdaq.com/articles/how-to-play-the-pullback-in-microsoft-stock
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nan
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nan
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Shares of Microsoft (MSFT) have gained 34% year-to-date, which sounds quite exceptional - until you compare the stock's performance to some of its mega-cap tech peers. MSFT's returns this year have trailed the broader Nasdaq QQQ Invesco ETF (QQQ), which has gained nearly 38% in 2023, as well as all five FAANG stocks. Within that group, Apple (AAPL) is up 37.5%, Netflix (NFLX) has gained 43.8%, Alphabet (GOOGL) has rallied 46.5%, Amazon (AMZN) is 65% higher, and Meta Platforms (META) leads the group with its 151% breakout. www.barchart.com
However, a sudden uptick in macroeconomic concerns - including high-profile downgrades from Fitch and Moody's, alongside soft economic data out of China - has applied pressure to nearly all of the stock market's recent momentum leaders. In the case of Microsoft, that means the stock is now down 12% from its 52-week high of $366.78, set less than a month ago on July 18.
So, is now a good time to pick up shares of this non-FAANG tech giant at a relative bargain? Let's see how the software behemoth performed in the latest quarter, and whether investors should scoop up MSFT stock at its current valuation.
Is Microsoft Stock a Buy, Sell, or Hold?
Microsoft reported revenue of $56.2 billion in fiscal Q4 of 2023 (ended in June), an increase of 8% year over year, while adjusted net income surged 20% to $2.69 per share. Microsoft beat revenue and earnings estimates of $55.4 billion and $2.55 per share, respectively, but investors eyed the company's slowing cloud sales in recent quarters.
Microsoft's intelligent-cloud vertical sales rose 26% year over year in Q4, but top-line growth has decelerated in the past few quarters due to lower enterprise spending amid a challenging macro environment.
The cloud computing business has been a critical growth driver for Microsoft in the past decade. During theearnings call management confirmed Microsoft Cloud revenue surpassed $110 billion in annual sales, rising 27% year over year. Comparatively, Azure - the intelligent cloud segment - accounted for more than 50% of total cloud sales for the first time in fiscal 2023. More broadly, industry estimates suggest the cloud computing market could expand to $2.4 trillion by 2030, providing Microsoft enough upside to drive its top-line results higher over time.
Microsoft enjoys a leadership position across several segments, including cloud, gaming, artificial intelligence, and enterprise services. Despite an inflationary environment, the company's economic moat allowed it to increase gross profits by 10% to $39 billion, and operating profits by 14.3% to $24 billion, indicating an operating margin of 43%.
Microsoft and AI
One long-term tailwind for MSFT stock will be artificial intelligence, or AI. Microsoft was an early mover in AI via its multi-billion dollar investment in ChatGPT's OpenAI. Further, a research report from Mordor Intelligence suggests the cloud-based AI market to touch $207 billion in 2028, up from $51 billion in 2023, indicating annual growth rates of 32%.
Thousands of companies globally are looking to leverage AI and build machine learning capabilities, suggesting widespread demand for Microsoft's products. During the Q4earnings call CEO Satya Nadella explained, "We have great momentum across Azure OpenAI Service. More than 11,000 organizations across industries, including IKEA, Volvo Group, Zurich Insurance, and digital natives like Flipkart, Humane, Kahoot, Miro, Typeface, use the service."
Already, the AzureAI business onboarded 100 customers daily in fiscal Q4.
What is the Target Price for MSFT Stock?
With a market cap of $2.4 trillion, Microsoft's adjusted earnings are forecast to rise from $9.81 per share in 2023 to $10.85 per share in 2024, and $12.35 in 2025. The stock is priced at 10.2x forward sales and 29.5x forward earnings, which is relatively steep.
www.barchart.com
Out of the 39 analysts tracking Microsoft stock, 29 recommend a "strong buy," three recommend a "moderate buy," two recommend "hold," and one recommends a “strong sell." The average price target for MSFT stock is $384.42, which is 19% above the current trading price.
www.barchart.com
Looking ahead, Microsoft is expected to report accelerating revenue growth in each of the next three years. Moreover, while the AI megatrend is still in its infancy, it can potentially allow Microsoft to generate billions of dollars in sales by 2030.
Additionally, Microsoft continues to invest heavily in research and development, which should allow it to expand its portfolio of innovative products and solutions. In Q4, its R&D expenses stood at $6.7 billion, representing about 12% of total revenue.
Despite recent volatility, the company's strong market share, robust customer base, and promising growth prospects make MSFT an appealing stock to buy on the dip.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Within that group, Apple (AAPL) is up 37.5%, Netflix (NFLX) has gained 43.8%, Alphabet (GOOGL) has rallied 46.5%, Amazon (AMZN) is 65% higher, and Meta Platforms (META) leads the group with its 151% breakout. www.barchart.com However, a sudden uptick in macroeconomic concerns - including high-profile downgrades from Fitch and Moody's, alongside soft economic data out of China - has applied pressure to nearly all of the stock market's recent momentum leaders. More broadly, industry estimates suggest the cloud computing market could expand to $2.4 trillion by 2030, providing Microsoft enough upside to drive its top-line results higher over time.
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Within that group, Apple (AAPL) is up 37.5%, Netflix (NFLX) has gained 43.8%, Alphabet (GOOGL) has rallied 46.5%, Amazon (AMZN) is 65% higher, and Meta Platforms (META) leads the group with its 151% breakout. Microsoft beat revenue and earnings estimates of $55.4 billion and $2.55 per share, respectively, but investors eyed the company's slowing cloud sales in recent quarters. During theearnings call management confirmed Microsoft Cloud revenue surpassed $110 billion in annual sales, rising 27% year over year.
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Within that group, Apple (AAPL) is up 37.5%, Netflix (NFLX) has gained 43.8%, Alphabet (GOOGL) has rallied 46.5%, Amazon (AMZN) is 65% higher, and Meta Platforms (META) leads the group with its 151% breakout. Microsoft reported revenue of $56.2 billion in fiscal Q4 of 2023 (ended in June), an increase of 8% year over year, while adjusted net income surged 20% to $2.69 per share. Microsoft beat revenue and earnings estimates of $55.4 billion and $2.55 per share, respectively, but investors eyed the company's slowing cloud sales in recent quarters.
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Within that group, Apple (AAPL) is up 37.5%, Netflix (NFLX) has gained 43.8%, Alphabet (GOOGL) has rallied 46.5%, Amazon (AMZN) is 65% higher, and Meta Platforms (META) leads the group with its 151% breakout. Microsoft beat revenue and earnings estimates of $55.4 billion and $2.55 per share, respectively, but investors eyed the company's slowing cloud sales in recent quarters. Microsoft and AI One long-term tailwind for MSFT stock will be artificial intelligence, or AI.
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14335.0
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2023-08-11 00:00:00 UTC
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Why Innodata Stock Is Skyrocketing Today
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AAPL
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https://www.nasdaq.com/articles/why-innodata-stock-is-skyrocketing-today
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nan
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nan
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What happened
Innodata (NASDAQ: INOD) stock is soaring today following the publication of the company's second-quarter earnings results. The data services company's share price was up 22.1% at 11:30 a.m. ET according to data from S&P Global Market Intelligence.
Innodata published its Q2 results after the market closed on Thursday, showing sales and earnings performance that topped the market's expectations. While the company's revenue fell 1.5% year over year (YOY) to $19.7 million, its net loss of $0.8 million for the period was significantly lower than the $3.8 million loss it posted in the prior-year quarter. Innodata also had some big news about landing a new customer.
So what
While Innodata's revenue fell YOY in Q2, it did climb 4% from this year's first quarter. The YOY sales decline stemmed from the loss of business from a large social media company that had accounted for $2.5 million in sales in Q2 last year.
Despite the sales drop-off, expense reduction initiatives helped the business trim its net loss substantially compared to the prior-year period. The company ended the quarter with $13.7 million in cash and short-term equivalents against no debt.
With its quarterly report, Innodata also announced that it had started providing generative artificial intelligence development services for a "big five" technology company. The big five are Apple, Microsoft, Alphabet, Amazon, and Meta Platforms, and Innodata is now providing services for four of these businesses. The data specialist had announced on July 18 that it had entered into preliminary discussions with its new big-five tech customer, and the company should see a significant sales increase now that services have started.
Now what
Innodata expects that its contract with its new big-five tech customer could reach an annualized revenue run rate of $15 million by the end of this year. The two companies are also in discussions about potentially expanding services beyond existing levels. With contributions from the new deal, management anticipates that sales performance will ramp up in the second half of this year and that growth momentum will continue into 2024.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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 its quarterly report, Innodata also announced that it had started providing generative artificial intelligence development services for a "big five" technology company. The data specialist had announced on July 18 that it had entered into preliminary discussions with its new big-five tech customer, and the company should see a significant sales increase now that services have started. Now what Innodata expects that its contract with its new big-five tech customer could reach an annualized revenue run rate of $15 million by the end of this year.
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While the company's revenue fell 1.5% year over year (YOY) to $19.7 million, its net loss of $0.8 million for the period was significantly lower than the $3.8 million loss it posted in the prior-year quarter. So what While Innodata's revenue fell YOY in Q2, it did climb 4% from this year's first quarter. With its quarterly report, Innodata also announced that it had started providing generative artificial intelligence development services for a "big five" technology company.
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While the company's revenue fell 1.5% year over year (YOY) to $19.7 million, its net loss of $0.8 million for the period was significantly lower than the $3.8 million loss it posted in the prior-year quarter. The YOY sales decline stemmed from the loss of business from a large social media company that had accounted for $2.5 million in sales in Q2 last year. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Keith Noonan has no position in any of the stocks mentioned.
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While the company's revenue fell 1.5% year over year (YOY) to $19.7 million, its net loss of $0.8 million for the period was significantly lower than the $3.8 million loss it posted in the prior-year quarter. Now what Innodata expects that its contract with its new big-five tech customer could reach an annualized revenue run rate of $15 million by the end of this year. That's right -- they think these 10 stocks are even better buys.
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14336.0
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2023-08-11 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq fall as megacaps slide after producer prices data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-fall-as-megacaps-slide-after-producer-prices-data
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
News Corp up as quarterly profit tops estimates
US-listed China stocks fall as stimulus measures disappoint
US consumer sentiment dips in August
July annual PPI 0.8% vs estimates of 0.7%
Indexes mixed : Dow up 0.10%, S&P down 0.29%, Nasdaq down 0.78%
Updated at 11:28 a.m. ET/ 1528 GMT
By Bansari Mayur Kamdar and Johann M Cherian
Aug 11 (Reuters) - The S&P 500 and Nasdaq fell on Friday as rate-sensitive megacap growth stocks declined after hotter-than-expected producer prices data for July sent U.S. bond yields higher.
U.S. producer price index (PPI) climbed 0.8% in the 12 months leading to July, up from a 0.2% rise in the previous month, as costs of services increased. Economists polled by Refinitiv had expected a 0.7% gain.
Though traders broadly expect the Federal Reserve to not tighten credit conditions for the remainder of the year, bets for no rate hike in September slipped to 88.5% from 90% before the data landed.IRPR
"The PPI data shows that the inflation monster is still lingering but investors can see progress in the things that come under CPI," said David Russell, vice president of market intelligence at TradeStation.
Yield on the 2-year treasury note US2YT=RR, that moves in line with near-term interest rate expectations, climbed to 4.88%, pressuring rate-sensitive technology and growth names. US/
Tesla TSLA.O, Nvidia NVDA.O and Microsoft MSFT.O lost between 1.0% and 3.1%.
Benchmark U.S. indexes finished marginally higher in the previous session as worries about the U.S. economy's longer-term prospects and concerns over further growth in stocks eclipsed milder-than-feared consumer prices data that had initially sent shares soaring.
The drop in megacap growth and technology stocks, which have led outsized gains this year, has put the tech-heavy Nasdaq .IXIC and the S&P 500 .SPX on track to end lower for a second straight week.
At 11:28 a.m. ET, the Dow Jones Industrial Average .DJI was up 33.91 points, or 0.10%, at 35,210.06, the S&P 500 .SPX was down 13.13 points, or 0.29%, at 4,455.70, and the Nasdaq Composite .IXIC was down 107.48 points, or 0.78%, at 13,630.51.
While U.S. consumer sentiment dipped in August, Americans are optimistic that inflation will edge lower over the next year and beyond, according to a preliminary reading of a University of Michigan survey.
Keeping the Dow afloat, healthcare .SPXHC and energy .SPNY sectors advanced.
"The market is seeing some healthy rotation, with money moving away from the large growth names into other sectors that were real laggards for a lot of the year," Russell added.
Among other movers, News CorpNWSA.O rose 3.3% after the Rupert Murdoch-owned media conglomerate beat quarterly profit estimates, thanks to its cost-cutting efforts.
U.S.-listed shares of Chinese companies Alibaba BABA.N and JD.com JD.O fell 4.1% and 5.8%, respectively, as Beijing's latest stimulus measures disappointed investors, while fresh data showed that the country's post-pandemic recovery was losing steam.
Declining issues outnumbered advancers by a 1.10-to-1 ratio on the NYSE and a 1.49-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and three new lows, while the Nasdaq recorded 34 new highs and 131 new lows.
Growth stocks slide as bond yields weigh since late July https://tmsnrt.rs/3YC8Qag
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Vinay Dwivedi)
((BansariMayur.Kamdar@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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News Corp up as quarterly profit tops estimates US-listed China stocks fall as stimulus measures disappoint US consumer sentiment dips in August July annual PPI 0.8% vs estimates of 0.7% Indexes mixed : Dow up 0.10%, S&P down 0.29%, Nasdaq down 0.78% Updated at 11:28 a.m. ET/ 1528 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - The S&P 500 and Nasdaq fell on Friday as rate-sensitive megacap growth stocks declined after hotter-than-expected producer prices data for July sent U.S. bond yields higher. Benchmark U.S. indexes finished marginally higher in the previous session as worries about the U.S. economy's longer-term prospects and concerns over further growth in stocks eclipsed milder-than-feared consumer prices data that had initially sent shares soaring. U.S.-listed shares of Chinese companies Alibaba BABA.N and JD.com JD.O fell 4.1% and 5.8%, respectively, as Beijing's latest stimulus measures disappointed investors, while fresh data showed that the country's post-pandemic recovery was losing steam.
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News Corp up as quarterly profit tops estimates US-listed China stocks fall as stimulus measures disappoint US consumer sentiment dips in August July annual PPI 0.8% vs estimates of 0.7% Indexes mixed : Dow up 0.10%, S&P down 0.29%, Nasdaq down 0.78% Updated at 11:28 a.m. ET/ 1528 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - The S&P 500 and Nasdaq fell on Friday as rate-sensitive megacap growth stocks declined after hotter-than-expected producer prices data for July sent U.S. bond yields higher. Yield on the 2-year treasury note US2YT=RR, that moves in line with near-term interest rate expectations, climbed to 4.88%, pressuring rate-sensitive technology and growth names. Growth stocks slide as bond yields weigh since late July https://tmsnrt.rs/3YC8Qag (Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Vinay Dwivedi) ((BansariMayur.Kamdar@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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News Corp up as quarterly profit tops estimates US-listed China stocks fall as stimulus measures disappoint US consumer sentiment dips in August July annual PPI 0.8% vs estimates of 0.7% Indexes mixed : Dow up 0.10%, S&P down 0.29%, Nasdaq down 0.78% Updated at 11:28 a.m. ET/ 1528 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - The S&P 500 and Nasdaq fell on Friday as rate-sensitive megacap growth stocks declined after hotter-than-expected producer prices data for July sent U.S. bond yields higher. Though traders broadly expect the Federal Reserve to not tighten credit conditions for the remainder of the year, bets for no rate hike in September slipped to 88.5% from 90% before the data landed.IRPR "The PPI data shows that the inflation monster is still lingering but investors can see progress in the things that come under CPI," said David Russell, vice president of market intelligence at TradeStation. Growth stocks slide as bond yields weigh since late July https://tmsnrt.rs/3YC8Qag (Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Vinay Dwivedi) ((BansariMayur.Kamdar@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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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. News Corp up as quarterly profit tops estimates US-listed China stocks fall as stimulus measures disappoint US consumer sentiment dips in August July annual PPI 0.8% vs estimates of 0.7% Indexes mixed : Dow up 0.10%, S&P down 0.29%, Nasdaq down 0.78% Updated at 11:28 a.m. ET/ 1528 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - The S&P 500 and Nasdaq fell on Friday as rate-sensitive megacap growth stocks declined after hotter-than-expected producer prices data for July sent U.S. bond yields higher. Economists polled by Refinitiv had expected a 0.7% gain.
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14337.0
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2023-08-11 00:00:00 UTC
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What Will Alphabet do with its Cash Surplus?
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AAPL
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https://www.nasdaq.com/articles/what-will-alphabet-do-with-its-cash-surplus
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nan
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nan
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After cutting thousands of jobs and reducing some operating costs, Alphabet (GOOGL) generated nearly $29 billion of cash in the second quarter. That left the company with cash and short-term marketable securities of about $118 billion, more than any other company in the Nasdaq 100 Stock Index ($IUXX) (QQQ) aside from Apple’s (AAPL) total of about $167 billion. Investors are awaiting any detailed plans the company has for its massive cash influx.
Investors expect companies sitting on large amounts of cash to invest the funds for better returns or give the cash back to shareholders. While Apple gives back most of its excess cash to shareholders via stock buybacks and dividends, Alphabet has a less clearly defined strategy, leaving investors wondering about its reinvestment plans. Synovus Trust said, “Investors haven’t really had to address this issue with Alphabet in the past because they haven’t been as prolific with generating this kind of cash.”
According to data from Bloomberg, the top three cash generators in the Nasdaq 100 Stock Index, Alphabet, Apple, and Microsoft (MSFT), have generated a combined $84 billion in Q2, the biggest increase for any such non-holiday period in history. In April, Alphabet boosted its stock buybacks and expanded its repurchase authorization to $70 billion. However, last quarter, the company spent $15 billion on its shares, barely half the cash it brought in.
Alphabet doesn’t pay a dividend like Apple and Microsoft. Also, Alphabet has shied away from making acquisitions, like Microsoft, which agreed to pay $69 billion for Activision Blizzard last year. Last month, Alphabet said Ruth Porat, who has served as chief financial officer since 2015, will assume a newly created role of president and chief investment officer. She has yet to announce the company's new reinvestment plans for its excess cash.
Stock buybacks are the most popular tool being implemented to return cash to shareholders at big technology companies that bring in tens of billions in earnings every quarter. Some analysts believe that Alphabet should stick to its approach of boosting the company’s share price by increasing its share buybacks. CFRA Research said, “Although Alphabet could always consider initiating a small dividend, we think it’s more likely to stick to the buyback approach. A dividend could send a perception that growth opportunities may not be as strong.”
More Stock Market News from Barchart
Stocks Waver on Mixed U.S. Economic News Consider the Bigger Picture Before Biting into Krispy Kreme (DNUT) Markets Today: Stocks Fall on a Hot U.S. July PPI S&P Futures Tick Lower Ahead of Key U.S. PPI Data
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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That left the company with cash and short-term marketable securities of about $118 billion, more than any other company in the Nasdaq 100 Stock Index ($IUXX) (QQQ) aside from Apple’s (AAPL) total of about $167 billion. After cutting thousands of jobs and reducing some operating costs, Alphabet (GOOGL) generated nearly $29 billion of cash in the second quarter. While Apple gives back most of its excess cash to shareholders via stock buybacks and dividends, Alphabet has a less clearly defined strategy, leaving investors wondering about its reinvestment plans.
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That left the company with cash and short-term marketable securities of about $118 billion, more than any other company in the Nasdaq 100 Stock Index ($IUXX) (QQQ) aside from Apple’s (AAPL) total of about $167 billion. While Apple gives back most of its excess cash to shareholders via stock buybacks and dividends, Alphabet has a less clearly defined strategy, leaving investors wondering about its reinvestment plans. Synovus Trust said, “Investors haven’t really had to address this issue with Alphabet in the past because they haven’t been as prolific with generating this kind of cash.” According to data from Bloomberg, the top three cash generators in the Nasdaq 100 Stock Index, Alphabet, Apple, and Microsoft (MSFT), have generated a combined $84 billion in Q2, the biggest increase for any such non-holiday period in history.
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That left the company with cash and short-term marketable securities of about $118 billion, more than any other company in the Nasdaq 100 Stock Index ($IUXX) (QQQ) aside from Apple’s (AAPL) total of about $167 billion. While Apple gives back most of its excess cash to shareholders via stock buybacks and dividends, Alphabet has a less clearly defined strategy, leaving investors wondering about its reinvestment plans. Synovus Trust said, “Investors haven’t really had to address this issue with Alphabet in the past because they haven’t been as prolific with generating this kind of cash.” According to data from Bloomberg, the top three cash generators in the Nasdaq 100 Stock Index, Alphabet, Apple, and Microsoft (MSFT), have generated a combined $84 billion in Q2, the biggest increase for any such non-holiday period in history.
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That left the company with cash and short-term marketable securities of about $118 billion, more than any other company in the Nasdaq 100 Stock Index ($IUXX) (QQQ) aside from Apple’s (AAPL) total of about $167 billion. While Apple gives back most of its excess cash to shareholders via stock buybacks and dividends, Alphabet has a less clearly defined strategy, leaving investors wondering about its reinvestment plans. Alphabet doesn’t pay a dividend like Apple and Microsoft.
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14338.0
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2023-08-11 00:00:00 UTC
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Lessons for Investors from Q2 Earnings
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AAPL
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https://www.nasdaq.com/articles/lessons-for-investors-from-q2-earnings
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nan
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nan
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I
t is now one month since the first few calendar Q2 earnings hit the wire and, with the exception of the major big box retailers and a few others, most of the interesting and significant reports are now behind us. That makes it a good time to take stock (if you'll pardon the expression): What impact have the reports had on the market? What have we learned from earnings so far that has implications for the future, and based on that, what can we expect from the stock market over the next couple of months?
As a general rule, unless they are monumentally and almost universally bad, earnings usually have a positive impact on the market overall. That is mainly because on average well over seventy percent of S&P 500 companies beat EPS estimates every quarter. As you might expect, traders and investors know that that is the case, and yet it still seems to surprise them every three months, with standard bottom-line beats eliciting positive responses every quarter. It is a crazy situation, but it benefits most of us who are involved in markets and is therefore something that we have just learned to live with.
What it does mean, though, is that when that average is met or exceeded, as it has been so far for Q2, but the market doesn’t respond positively, it is effectively a negative. That makes the one-month chart for the S&P 500 below a bit worrying:
Despite the inherently positive impact of an earnings season when close to eighty percent of S&P 500 companies have beaten on Earnings Per Share (EPS), the S&P 500 index is, as you can see, essentially flat over the period. There are a couple of reasons for that.
First, while EPS beats have been above average, the number of revenue beats has, at around sixty-five percent, been notably below normal. That suggests that while companies have done well, they have done so by cutting costs rather thriving than on the back of a strong economy. That is to be expected with the Fed continuing to raise rates, but the reality of Q2 earnings has brought into focus the fact that even a “soft landing” is still a landing, and we are descending right now.
Secondly, and somewhat more technically, the index gains over the last few months have been led disproportionately by a few big tech names, and somewhat disappointing numbers and forecasts from the likes of Microsoft (MSFT) and Apple (AAPL) have therefore had an exaggerated impact in the opposite direction, despite positive results from a few others, like Meta (META) and Alphabet (GOOG, GOOGL).That disparity in Q2 performance in big tech is actually in itself indicative of a trend so far this earnings season. Results are always varied and company specific, but they seem to be even more so this time around.
Over the last month of earnings, despite a higher than average number of beats on the bottom line, the net effect on the S&P 500 has been negligible at best, and performance has varied quite considerably, even within industries. All of that has implications for investors going forward.
First, the next few months will probably see some volatility. Economists and analysts can’t agree on what is coming, and nor can corporations if the commentaries that have come with earnings reports this quarter are anything to go by. Some believe that a recession, albeit a mild one, is imminent, others believe it will come next year, and still others believe it can be avoided altogether. That is why the net impact on stocks has been basically zero, and it means that markets will be even more sensitive than usual to news and data for the foreseeable future. That makes it a time to average into positions rather than commit to anything all in one go.
Also, while index funds are fine in the very long term, the current situation suggests that you may be better off for a while overweighting certain stocks or sectors that are outperforming. Big tech seems to be pausing and consolidating a bit, as are some larger manufacturing names. Even the enthusiasm around AI is cooling a little with names like Nvidia (NVDA) off their highs. However, there are areas that outperformed last quarter and can continue to do so. Energy, for example, where providing crude holds above $80 for a while, the benefits of increased investment over the last year or so in the industry can give a boost to the numbers.
Overall, the message that Q2 earnings are sending is that there is no clear message. Results varied from company to company and industry to industry, with no dominant theme emerging, other than that CEOs have no more of an idea how to read the situation than anyone else right now. That means that caution is warranted and investments that are made should be industry and stock specific rather than in index trackers. And, in uncertain markets, remember, dollar cost averaging is your friend.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Secondly, and somewhat more technically, the index gains over the last few months have been led disproportionately by a few big tech names, and somewhat disappointing numbers and forecasts from the likes of Microsoft (MSFT) and Apple (AAPL) have therefore had an exaggerated impact in the opposite direction, despite positive results from a few others, like Meta (META) and Alphabet (GOOG, GOOGL).That disparity in Q2 performance in big tech is actually in itself indicative of a trend so far this earnings season. t is now one month since the first few calendar Q2 earnings hit the wire and, with the exception of the major big box retailers and a few others, most of the interesting and significant reports are now behind us. Over the last month of earnings, despite a higher than average number of beats on the bottom line, the net effect on the S&P 500 has been negligible at best, and performance has varied quite considerably, even within industries.
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Secondly, and somewhat more technically, the index gains over the last few months have been led disproportionately by a few big tech names, and somewhat disappointing numbers and forecasts from the likes of Microsoft (MSFT) and Apple (AAPL) have therefore had an exaggerated impact in the opposite direction, despite positive results from a few others, like Meta (META) and Alphabet (GOOG, GOOGL).That disparity in Q2 performance in big tech is actually in itself indicative of a trend so far this earnings season. That is mainly because on average well over seventy percent of S&P 500 companies beat EPS estimates every quarter. That makes the one-month chart for the S&P 500 below a bit worrying: Despite the inherently positive impact of an earnings season when close to eighty percent of S&P 500 companies have beaten on Earnings Per Share (EPS), the S&P 500 index is, as you can see, essentially flat over the period.
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Secondly, and somewhat more technically, the index gains over the last few months have been led disproportionately by a few big tech names, and somewhat disappointing numbers and forecasts from the likes of Microsoft (MSFT) and Apple (AAPL) have therefore had an exaggerated impact in the opposite direction, despite positive results from a few others, like Meta (META) and Alphabet (GOOG, GOOGL).That disparity in Q2 performance in big tech is actually in itself indicative of a trend so far this earnings season. What have we learned from earnings so far that has implications for the future, and based on that, what can we expect from the stock market over the next couple of months? That makes the one-month chart for the S&P 500 below a bit worrying: Despite the inherently positive impact of an earnings season when close to eighty percent of S&P 500 companies have beaten on Earnings Per Share (EPS), the S&P 500 index is, as you can see, essentially flat over the period.
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Secondly, and somewhat more technically, the index gains over the last few months have been led disproportionately by a few big tech names, and somewhat disappointing numbers and forecasts from the likes of Microsoft (MSFT) and Apple (AAPL) have therefore had an exaggerated impact in the opposite direction, despite positive results from a few others, like Meta (META) and Alphabet (GOOG, GOOGL).That disparity in Q2 performance in big tech is actually in itself indicative of a trend so far this earnings season. What have we learned from earnings so far that has implications for the future, and based on that, what can we expect from the stock market over the next couple of months? That is mainly because on average well over seventy percent of S&P 500 companies beat EPS estimates every quarter.
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14339.0
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2023-08-11 00:00:00 UTC
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US STOCKS-Wall St set for lower open after hotter-than-expected producer prices data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-lower-open-after-hotter-than-expected-producer-prices-data
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nan
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nan
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By Bansari Mayur Kamdar and Johann M Cherian
Aug 11 (Reuters) - Wall Street was set to open lower on Friday as stronger-than-expected producer prices data lifted bond yields, weighing down rate-sensitive technology and growth stocks in premarket trading.
U.S. producer price index climbed 0.8% in the 12 months leading to July, up from a 0.2% rise in the previous month, as service costs increased. Economists polled by Refinitiv had expected a 0.7% gain.
Bets for no rate hike in September slipped marginally to 88.5% from 90% before the data landed, though traders broadly expect the Fed to not tighten credit conditions further for the remainder of the year.IRPR
"The prior numbers were revised down so net it's really not that bad, but the market is going to focus on the current July data," said Robert Pavlik, senior portfolio manager, Dakota Wealth.
Yield on the 2-year treasury note US2YT=RR, that moves in line with near-term interest rate expectations, climbed to 4.8% after the data, pressuring rate-sensitive megacap growth names. US/
"Maybe the Fed could raise rates by another 25 basis points in September," Pavlik added.
Tesla TSLA.O, Nvidia NVDA.O and Apple AAPL.O lost between 1.5% and 0.2% before the bell.
Traders now await preliminary U.S. consumer sentiment data for August, due later in the day.
Benchmark U.S. indexes finished marginally higher in the previous session as worries about the U.S. economy's longer-term prospects and concerns over further growth in stocks eclipsed milder-than-feared consumer prices data that had initially sent shares soaring.
At 8:48 a.m. ET, Dow e-minis 1YMcv1 were down 70 points, or 0.2%, S&P 500 e-minis EScv1 were down 15.5 points, or 0.35%, and Nasdaq 100 e-minis NQcv1 were down 103 points, or 0.68%.
The tech-heavy Nasdaq .IXIC and the S&P 500 .SPX were on track to end their second week lower due to a decline in megacap growth and technology stocks that have led outsized gains this year.
U.S.-listed shares of Chinese companies Alibaba BABA.N and JD.com JD.O fell 2.3% and 3.5%, respectively, as investors were disappointed by Beijing's latest stimulus measures, while fresh data showed that the post-pandemic recovery was losing steam.
Growth stocks slide as bond yields weigh since late July https://tmsnrt.rs/3YC8Qag
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Vinay Dwivedi)
((BansariMayur.Kamdar@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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Tesla TSLA.O, Nvidia NVDA.O and Apple AAPL.O lost between 1.5% and 0.2% before the bell. By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - Wall Street was set to open lower on Friday as stronger-than-expected producer prices data lifted bond yields, weighing down rate-sensitive technology and growth stocks in premarket trading. Benchmark U.S. indexes finished marginally higher in the previous session as worries about the U.S. economy's longer-term prospects and concerns over further growth in stocks eclipsed milder-than-feared consumer prices data that had initially sent shares soaring.
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Tesla TSLA.O, Nvidia NVDA.O and Apple AAPL.O lost between 1.5% and 0.2% before the bell. By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - Wall Street was set to open lower on Friday as stronger-than-expected producer prices data lifted bond yields, weighing down rate-sensitive technology and growth stocks in premarket trading. Yield on the 2-year treasury note US2YT=RR, that moves in line with near-term interest rate expectations, climbed to 4.8% after the data, pressuring rate-sensitive megacap growth names.
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Tesla TSLA.O, Nvidia NVDA.O and Apple AAPL.O lost between 1.5% and 0.2% before the bell. By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - Wall Street was set to open lower on Friday as stronger-than-expected producer prices data lifted bond yields, weighing down rate-sensitive technology and growth stocks in premarket trading. Bets for no rate hike in September slipped marginally to 88.5% from 90% before the data landed, though traders broadly expect the Fed to not tighten credit conditions further for the remainder of the year.IRPR "The prior numbers were revised down so net it's really not that bad, but the market is going to focus on the current July data," said Robert Pavlik, senior portfolio manager, Dakota Wealth.
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Tesla TSLA.O, Nvidia NVDA.O and Apple AAPL.O lost between 1.5% and 0.2% before the bell. By Bansari Mayur Kamdar and Johann M Cherian Aug 11 (Reuters) - Wall Street was set to open lower on Friday as stronger-than-expected producer prices data lifted bond yields, weighing down rate-sensitive technology and growth stocks in premarket trading. U.S. producer price index climbed 0.8% in the 12 months leading to July, up from a 0.2% rise in the previous month, as service costs increased.
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14340.0
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2023-08-11 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-8
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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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14341.0
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2023-08-11 00:00:00 UTC
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Warren Buffett's Latest $1.3 Billion Buy Brings His Total Investment in This Stock to More Than $71 Billion in 5 Years
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-latest-%241.3-billion-buy-brings-his-total-investment-in-this-stock-to-more
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nan
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nan
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There's little question that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett will go down as one of the greatest investors of our time. In the roughly 58 years since taking the reins at Berkshire Hathaway, he's overseen a greater-than 4,300,000% aggregate return in his company's Class A shares (BRK.A) as well as doubled-up the annualized total return, including dividends paid, of the benchmark S&P 500 (19.8% vs. 9.9%) as of the end of 2022.
This sustained long-term outperformance, coupled with the Oracle of Omaha's willingness to share what factors he looks for in an investment, is why investors are eager to see what Warren Buffett is buying and selling. After all, riding Buffett's coattails has made investors a boatload of money for nearly 60 years.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Following Warren Buffett's investment activity has been a moneymaking strategy for decades
For the most part, tracking Warren Buffett's trading activity is easy. Institutional investors and money managers with over $100 million in assets under management (AUM) are required to file Form 13F with the Securities and Exchange Commission (SEC) no later than 45 days following the end of a quarter. A 13F provides a snapshot of what Wall Street's brightest minds bought and sold in the most recent quarter.
Though we'll be getting a closer look at Berkshire's second-quarter 13F on Monday, Aug. 14, previous filings from the Oracle of Omaha show that he and his investment team have been piling into a handful of stocks.
For instance, oil stock Occidental Petroleum (NYSE: OXY) has been a consistent buy for Buffett and his investing lieutenants, Ted Weschler and Todd Combs, since the start of 2022. Berkshire has purchased more than 224 million shares of Occidental common stock.
Having more than $14 billion invested in the common stock of an energy company suggests that Buffett and his team expect the spot price of oil to remain elevated. The ongoing war in Ukraine, along with more than three years of capital underinvestment by energy majors tied to COVID-19 uncertainties, has created a tight supply market for oil that may keep the West Texas Intermediate Crude price above historic norms.
This is noteworthy given that Occidental Petroleum generates the bulk of its revenue from drilling. Although it's an integrated operator with downstream chemical plants, it's far more reliant on its upstream operations for success. If the price of crude oil rallies, Occidental Petroleum should disproportionately benefit.
The Oracle of Omaha, Combs, and Weschler also can't stop buying shares of Apple (NASDAQ: AAPL). As of Aug. 14, Wall Street's largest publicly traded company by market cap comprised a whopping 45.5% of Berkshire Hathaway's $366 billion of invested assets.
During Berkshire Hathaway's annual shareholder meeting, Buffett referred to Apple as "a better business than any we own." He certainly didn't make this comment lightly. He values Apple for its phenomenally strong brand, its years of innovation, and the company's steadfastly loyal customer base.
To add, Warren Buffett is also a huge fan of Apple's capital-return program. In addition to doling out one of the world's largest nominal-dollar dividends ($15.1 billion per year), Apple has bought back around $600 billion worth of its common stock since the start of 2013. Not only do buybacks improve earnings per share for companies (like Apple) with steady or growing net income, but they can also increase the ownership stakes of existing investors.
Image source: Getty Images.
The Oracle of Omaha has spent north of $71 billion buying shares of this stock
But here's a news flash that may come as a surprise to a lot of investors: Neither Apple nor Occidental Petroleum is Warren Buffett's most-purchased stock over the past five years. In fact, the company Buffett has piled more than $71 billion into since the start of July 2018 won't be found in Berkshire Hathaway's quarterly 13F filings.
To locate the stock that truly has the Oracle of Omaha's attention, you'll want to pull up page 53 (slide 54 in PDF format) of Berkshire Hathaway's Q2 operating results. That's the page where you'll find the company's share-repurchase activity. That's right...Warren Buffett's favorite stock to buy is none other than his own company, Berkshire Hathaway. Don't you love a good plot twist?
Prior to July 17, 2018, Warren Buffett and Executive Vice Chairman Charlie Munger were hamstrung by one specific component of Berkshire Hathaway's share-repurchase criteria. Specifically, they were only allowed to pull the trigger on buybacks if Berkshire Hathaway's stock traded at or below 120% of book value -- i.e., no more than 20% above its book value, as reported in the most recent quarter. For more than a half-decade leading up to July 2018, the company's stock never fell below this book value threshold, which meant that Berkshire's dynamic duo couldn't conduct any buybacks.
Thankfully, Berkshire Hathaway's Board of Directors made some adjustments. The new criteria to conduct buybacks that was passed on July 17, 2018 allowed Buffett and Munger to repurchase Berkshire Hathaway stock if:
The company has at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet.
Buffett and Munger agree that the company's stock is intrinsically cheap.
If these criteria are met, buybacks can be undertaken with no set cap or timeline.
During the recently completed second quarter, Berkshire Hathaway repurchased 1,042 Class A shares (BRK.A) and 2,354,444 Class B shares (BRK.B). Based on the average purchase price of these buybacks as reported by the company, Buffett and his team oversaw $1,302,648,276.48 in repurchases in Q2.
More impressively, this marks the 20th consecutive quarter that Warren Buffett and Charlie Munger have OK'd the repurchase of Berkshire Hathaway stock. Collectively, more than $71 billion worth of stock has been repurchased in 17 days shy of five years.
The way I see it, Berkshire Hathaway's mammoth buyback program serves three key purposes. First, it's a way to reward the company's long-term investors. Just as Berkshire has seen its stake in Apple grow larger over time due to buybacks, reducing Berkshire's outstanding share count through buybacks is increasing the ownership stakes of its faithful shareholders.
Second, reducing Berkshire's outstanding share count via buybacks should increase the company's earnings per share over time. In other words, it's making an already fundamentally attractive stock that much more appealing.
The third reason for such an aggressive share-repurchase program is to emphasize the faith Warren Buffett and Charlie Munger have in the company they've built over many decades. As I've stated previously, Berkshire's investment portfolio is loaded with cyclical businesses. Since the U.S. and global economy spend far more time growing than contracting, it means Berkshire Hathaway is well positioned to take advantage of domestic and global growth over the long run.
Until Berkshire Hathaway's 13Fs prove otherwise, Berkshire Hathaway is Warren Buffett's unquestioned favorite stock to buy.
10 stocks we like better than Berkshire Hathaway
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 1, 2023
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Oracle of Omaha, Combs, and Weschler also can't stop buying shares of Apple (NASDAQ: AAPL). For instance, oil stock Occidental Petroleum (NYSE: OXY) has been a consistent buy for Buffett and his investing lieutenants, Ted Weschler and Todd Combs, since the start of 2022. The ongoing war in Ukraine, along with more than three years of capital underinvestment by energy majors tied to COVID-19 uncertainties, has created a tight supply market for oil that may keep the West Texas Intermediate Crude price above historic norms.
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The Oracle of Omaha, Combs, and Weschler also can't stop buying shares of Apple (NASDAQ: AAPL). The new criteria to conduct buybacks that was passed on July 17, 2018 allowed Buffett and Munger to repurchase Berkshire Hathaway stock if: The company has at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet. Just as Berkshire has seen its stake in Apple grow larger over time due to buybacks, reducing Berkshire's outstanding share count through buybacks is increasing the ownership stakes of its faithful shareholders.
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The Oracle of Omaha, Combs, and Weschler also can't stop buying shares of Apple (NASDAQ: AAPL). The Oracle of Omaha has spent north of $71 billion buying shares of this stock But here's a news flash that may come as a surprise to a lot of investors: Neither Apple nor Occidental Petroleum is Warren Buffett's most-purchased stock over the past five years. That's right...Warren Buffett's favorite stock to buy is none other than his own company, Berkshire Hathaway.
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The Oracle of Omaha, Combs, and Weschler also can't stop buying shares of Apple (NASDAQ: AAPL). The Oracle of Omaha has spent north of $71 billion buying shares of this stock But here's a news flash that may come as a surprise to a lot of investors: Neither Apple nor Occidental Petroleum is Warren Buffett's most-purchased stock over the past five years. That's right...Warren Buffett's favorite stock to buy is none other than his own company, Berkshire Hathaway.
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14342.0
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2023-08-11 00:00:00 UTC
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This Cheap Nasdaq Stock Could Double, and It Is a Screaming Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/this-cheap-nasdaq-stock-could-double-and-it-is-a-screaming-buy-right-now
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nan
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nan
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Apple component supplier Qorvo (NASDAQ: QRVO) has underperformed the broader market in 2023 so far, recording gains of just 17% compared to the Nasdaq Composite's gains of 33%. But that may be about to change, the chipmaker's fiscal 2024 first-quarter results indicate.
Qorvo released its fiscal 2024 first-quarter results (for the three months ended July 1) on Aug. 2. The company's revenue and earnings were way better than what analysts were anticipating. More importantly, Qorvo delivered outstanding guidance for the current quarter that points toward a terrific sequential acceleration in its revenue.
It won't be surprising to see this underperforming semiconductor stock step on the gas in the second half of the year. Let's look at the reasons why that may be the case.
Qorvo's guidance indicates that the worst may be over
Qorvo's fiscal Q1 revenue fell an alarming 37% year over year to $651 million last quarter, while adjusted earnings fell to $0.34 per share from $2.25 per share in the year-ago period. Though these numbers were better than Wall Street's expectations of $0.15 per share in earnings on $640 million in revenue, the steep declines in Qorvo's metrics indicate it has been hit hard by the slowdown in smartphone demand.
Qorvo management blamed inflated chip inventories at Android smartphone original equipment manufacturers (OEMs) for the terrible performance. The company has been forced to ship a lower number of smartphone chipsets on account of the ongoing inventory correction in the market, which is a result of a decline in smartphone shipments.
According to market research firm IDC, global smartphone shipments fell 8% in the second quarter of 2023 compared to the prior-year period. But the good part is that the decline slowed compared to the first quarter when the year-over-year drop was almost 15%. IDC expects the smartphone market to start growing from the end of 2023 and continue its recovery in 2024.
That's good news for Qorvo as it relies heavily on the smartphone market. In fiscal 2023, Qorvo's cellular business produced two-thirds of its total revenue. What's more, Apple was its largest customer, accounting for 37% of the company's top line. So, a recovering smartphone market combined with Qorvo's reliance on Apple is going to be a big tailwind for the company in the coming year.
Apple is set to launch its next generation of iPhones next month. Wedbush Securities analyst Dan Ives believes that Apple's new smartphone lineup could encourage owners of 250 million iPhones, who haven't been upgraded in at least four years, to buy the new devices. That would point toward a double-digit jump in Apple's iPhone sales following the launch of the new smartphones as the company has sold 222 million units in the past four quarters.
At the same time, Qorvo claims it has been gaining more chip content at its largest customer. So, there is a possibility that it could be getting more revenue from each unit of the new-generation iPhones that Apple manufactures. All this points to why Qorvo guided strongly for the current quarter.
The company expects $1 billion in revenue in the current quarter at the midpoint of its guidance range. That's a big jump -- more than 50% on a sequential basis -- and is well ahead of the $960 million consensus estimate. Qorvo's adjusted earnings estimate of $1.75 per share for the current quarter is also higher than the $1.62 per share that analysts forecast.
But don't be surprised to see Qorvo's actual numbers exceed the guidance on account of improving conditions in the broader smartphone market and a healthy upgrade cycle for Apple. Moreover, Qorvo management claims that the company is gaining content at Android smartphone OEMs as well, driven by the growing adoption of 5G devices.
Qorvo estimates that 45% of Android devices will be 5G-enabled by the end of this year. Not surprisingly, the chipmaker expects sales of 5G-powered Android smartphones to increase at a double-digit compound annual growth rate (CAGR) in the long run. This growing adoption of 5G Android devices ideally expand Qorvo's serviceable addressable market as, according to the company, each 5G smartphone carries an extra $5 to $7 worth of radiofrequency (RF) chips that it sells.
Why now looks like a good time to buy the stock
Analysts are expecting Qorvo's top line to remain flat in the current fiscal year at $3.6 billion. For comparison, the company's revenue fell 23% in the previous fiscal year. We have already seen why the company is capable of outpacing analysts' expectations in the current fiscal year. The good part is that Qorvo is expected to return to double-digit revenue growth from next year.
QRVO Revenue Estimates for Current Fiscal Year data by YCharts
Even better, analysts are expecting Qorvo's earnings to increase at an annual rate of 10% for the next five years. That would be a nice improvement over the negative earnings growth that the company has witnessed in the last five years. As the following chart suggests, Qorvo's bottom line is set to accelerate big-time following this year's anticipated drop of 15%.
QRVO EPS Estimates for Current Fiscal Year data by YCharts
Qorvo trades at 21 times forward earnings, which represents a nice discount to the Nasdaq-100's forward earnings multiple of 29. Buying Qorvo stock at this relatively cheap valuation looks like a good idea given the potential earnings growth on offer. Assuming Qorvo does deliver $10.05 per share in earnings in fiscal 2026, its stock price could jump to $211 after three years based on its forward earnings multiple.
That would be nearly double Qorvo's current stock price, which is why investors looking for a growth stock trading at an attractive valuation should consider buying this chipmaker before it takes off.
10 stocks we like better than Qorvo
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 Qorvo 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 1, 2023
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Qorvo. 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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Wedbush Securities analyst Dan Ives believes that Apple's new smartphone lineup could encourage owners of 250 million iPhones, who haven't been upgraded in at least four years, to buy the new devices. But don't be surprised to see Qorvo's actual numbers exceed the guidance on account of improving conditions in the broader smartphone market and a healthy upgrade cycle for Apple. This growing adoption of 5G Android devices ideally expand Qorvo's serviceable addressable market as, according to the company, each 5G smartphone carries an extra $5 to $7 worth of radiofrequency (RF) chips that it sells.
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Qorvo's guidance indicates that the worst may be over Qorvo's fiscal Q1 revenue fell an alarming 37% year over year to $651 million last quarter, while adjusted earnings fell to $0.34 per share from $2.25 per share in the year-ago period. QRVO Revenue Estimates for Current Fiscal Year data by YCharts Even better, analysts are expecting Qorvo's earnings to increase at an annual rate of 10% for the next five years. QRVO EPS Estimates for Current Fiscal Year data by YCharts Qorvo trades at 21 times forward earnings, which represents a nice discount to the Nasdaq-100's forward earnings multiple of 29.
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Qorvo's guidance indicates that the worst may be over Qorvo's fiscal Q1 revenue fell an alarming 37% year over year to $651 million last quarter, while adjusted earnings fell to $0.34 per share from $2.25 per share in the year-ago period. Why now looks like a good time to buy the stock Analysts are expecting Qorvo's top line to remain flat in the current fiscal year at $3.6 billion. QRVO Revenue Estimates for Current Fiscal Year data by YCharts Even better, analysts are expecting Qorvo's earnings to increase at an annual rate of 10% for the next five years.
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The company's revenue and earnings were way better than what analysts were anticipating. Why now looks like a good time to buy the stock Analysts are expecting Qorvo's top line to remain flat in the current fiscal year at $3.6 billion. The good part is that Qorvo is expected to return to double-digit revenue growth from next year.
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14343.0
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2023-08-11 00:00:00 UTC
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Warren Buffett's Favorite Stock Just Did Something It Hasn't Done Since 2016
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-favorite-stock-just-did-something-it-hasnt-done-since-2016
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nan
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nan
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When examining Warren Buffett's Berkshire Hathaway investment portfolio, it's hard to deny what his favorite stock is. With around 45% of the portfolio wrapped up in Apple (NASDAQ: AAPL) stock, it's pretty clear he prefers this company over others (especially considering the next-highest weight in his portfolio is 9%).
However, Apple just did something it hasn't done in seven years. The problem is, what it just did isn't a good thing; it's pretty bad. So is this business blunder Apple just experienced enough to knock it off its perch as the world's most valuable company and Warren Buffett's favorite? Read on to find out.
Apple's revenue decline has some investors worried
Apple, the maker of high-end technology like the iPhone, Apple Watch, iPad, MacBook, and more, is tied heavily to consumer sentiment. When the consumer is flush with cash, they are willing to spend increasingly more money on Apple's products. But Apple's sales struggle when funds tighten up, and the future isn't as rosy.
This is a similar pattern to what the U.S. experienced in 2016 and has been renewed in 2023. Apple recently reported its Q3 FY 2023 earnings (ending July 1) and reported its third-straight quarter of revenue decline, something it hasn't done since 2016. However, the situation isn't nearly as dire as in 2016, as Apple's revenue only declined by 1.4% in Q3 and saw a low point of 5.5% decline in Q1. Compared to the 15% revenue decline Apple experienced at its low in 2016, this is a walk in the park.
Still, revenue only declined for three quarters in 2016, but Apple's management expects to hit four quarters in a row if the economy doesn't improve. Now it expects the decline level to be about the same level as Q3, but this is still concerning to investors.
Even though Apple's revenue is slowly ticking down, its margins are improving. In Q3 2022, it had an operating margin of 27.8%. In Q3 2023, that ticked up to 28.1%. This slight increase allowed Apple's earnings per share to rise from $1.20 last year to $1.27 this year -- 6% growth.
While the revenue decline is slightly concerning, the fact that Apple grew its earnings demonstrates why it has become one of the strongest companies on earth.
But Apple's premium valuation may hinder stock price growth.
The stock is valued at a high level despite lackluster growth
While Apple certainly has earned a premium due to its strong execution even during rough times, it might be too much. At 30 times earnings, Apple's stock is expensive, especially considering its slow earnings growth pace.
AAPL PE Ratio data by YCharts
While the company has pulled back from its recent 33 times earnings high, it's still far above where Apple traded throughout most of its history. Furthermore, anytime a company's price-to-earnings ratio is in the mid- to high-20s range, it typically grows its revenue at an above-market average pace. Apple hasn't done that since the pandemic caused a sales spike, and its high valuation may be an issue for future returns.
Although Apple is an incredibly resilient and robust company, I won't be an Apple investor until its revenue accelerates to a market-beating pace or the valuation drops to a more reasonable low 20 times earnings. Too many stocks are valued at lower levels and growing faster than Apple, and I'd rather invest in those companies.
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 1, 2023
Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL PE Ratio data by YCharts While the company has pulled back from its recent 33 times earnings high, it's still far above where Apple traded throughout most of its history. With around 45% of the portfolio wrapped up in Apple (NASDAQ: AAPL) stock, it's pretty clear he prefers this company over others (especially considering the next-highest weight in his portfolio is 9%). The stock is valued at a high level despite lackluster growth While Apple certainly has earned a premium due to its strong execution even during rough times, it might be too much.
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With around 45% of the portfolio wrapped up in Apple (NASDAQ: AAPL) stock, it's pretty clear he prefers this company over others (especially considering the next-highest weight in his portfolio is 9%). AAPL PE Ratio data by YCharts While the company has pulled back from its recent 33 times earnings high, it's still far above where Apple traded throughout most of its history. When examining Warren Buffett's Berkshire Hathaway investment portfolio, it's hard to deny what his favorite stock is.
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With around 45% of the portfolio wrapped up in Apple (NASDAQ: AAPL) stock, it's pretty clear he prefers this company over others (especially considering the next-highest weight in his portfolio is 9%). AAPL PE Ratio data by YCharts While the company has pulled back from its recent 33 times earnings high, it's still far above where Apple traded throughout most of its history. Apple's revenue decline has some investors worried Apple, the maker of high-end technology like the iPhone, Apple Watch, iPad, MacBook, and more, is tied heavily to consumer sentiment.
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With around 45% of the portfolio wrapped up in Apple (NASDAQ: AAPL) stock, it's pretty clear he prefers this company over others (especially considering the next-highest weight in his portfolio is 9%). AAPL PE Ratio data by YCharts While the company has pulled back from its recent 33 times earnings high, it's still far above where Apple traded throughout most of its history. However, the situation isn't nearly as dire as in 2016, as Apple's revenue only declined by 1.4% in Q3 and saw a low point of 5.5% decline in Q1.
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14344.0
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2023-08-11 00:00:00 UTC
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Is WisdomTree U.S. Total Dividend ETF (DTD) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-total-dividend-etf-dtd-a-strong-etf-right-now-8
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nan
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nan
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The WisdomTree U.S. Total Dividend ETF (DTD) was launched on 06/16/2006, 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?
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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
DTD is managed by Wisdomtree, and this fund has amassed over $1.10 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, DTD seeks to match the performance of the WisdomTree U.S. Dividend Index.
The WisdomTree U.S. Dividend Index is a fundamentally-weighted index that defines the dividend-paying portion of the U.S. equity market.
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.
Operating expenses on an annual basis are 0.28% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.56%.
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.
Representing 16.20% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Healthcare round out the top three.
Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 22.62% of DTD's total assets under management.
Performance and Risk
So far this year, DTD return is roughly 5.31%, and was up about 4.65% in the last one year (as of 08/11/2023). During this past 52-week period, the fund has traded between $54.26 and $64.29.
DTD has a beta of 0.91 and standard deviation of 15.09% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 823 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Total Dividend 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 $51.16 billion in assets, Vanguard Value ETF has $102.26 billion. IWD has an expense ratio of 0.18% 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.
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
WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : 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, Exxon Mobil Corp (XOM) accounts for about 3.51% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : 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 WisdomTree U.S. Total Dividend ETF (DTD) was launched on 06/16/2006, 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. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : 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, Exxon Mobil Corp (XOM) accounts for about 3.51% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. Total Dividend 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 WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : 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, Exxon Mobil Corp (XOM) accounts for about 3.51% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). The WisdomTree U.S. Total Dividend ETF (DTD) was launched on 06/16/2006, 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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Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : 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 WisdomTree U.S. Total Dividend ETF (DTD) was launched on 06/16/2006, 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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14345.0
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2023-08-11 00:00:00 UTC
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Better Buy: Apple vs. Alphabet
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-vs.-alphabet-0
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nan
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nan
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Earnings season is in full swing, with many of the world's most valuable companies' stocks on the move. Like most of the year, this month Wall Street has been particularly bullish on artificial intelligence (AI) and its potential to bolster a number of industries. Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) both have growing ventures in the market, making their stocks attractive options over the long term.
Apple has the dominance in consumer tech that could attract millions to its future AI offerings. Meanwhile, Alphabet has just had a glowing quarter that indicates its business is on a growth path after last year's economic downturn.
However, if you're only looking to add one new company to your portfolio, you'll want to know which is currently the better investment option.
So, let's take a look at whether Apple or Alphabet stock is the better buy this August.
Apple
Apple has built up a reputation among investors for being one of the most reliable stocks on the market. The company's shares have risen 247% in the last five years, significantly higher than fellow tech giants such as Microsoft, Alphabet, and Amazon. Apple's reliability came alongside nearly unrivaled dominance in the consumer tech industry, with leading market shares in most of its product categories.
However, Apple's stock has faltered since the start of August, dipping 8% after its earnings release for the fiscal third quarter of 2023, which ended July 1. Macroeconomic headwinds caused reductions in consumer spending across tech, with Apple reporting sales declines in its iPhone, Mac, and iPad segments.
Despite the challenging quarter, Apple demonstrated its strength by outperforming its competitors. In the second quarter of fiscal 2023 (ended March 31), when iPhone sales fell 6% year over year, Samsung's smartphone sales decreased by 37%, and Motorola's tumbled 17%. Apple's performance allowed it to gain market share in smartphones, increasing from 52% to 55% in the quarter.
Apple's recent stumble is why keeping a long-term perspective on its stock is crucial. The company might not be out of the woods amid poor market conditions. However, growing positions in artificial intelligence, virtual/augmented reality, and digital services will likely provide substantial gains in the next five to 10 years and beyond.
Alphabet
Alphabet's stock has risen about 5% since the company released its earnings report on July 25. The Google company has had a challenging couple of years with hikes in interest rates causing many businesses to cut down on advertising spending. However, Q2 2023 saw Alphabet report a 3% rise in ad revenue.
Meanwhile, total revenue for the quarter rose 7% year over year and beat analyst expectations by close to $2 billion. Alphabet attributed its positive results to resilience in search and YouTube, as well as cloud growth.
After years of critics voicing concern for the direction of Alphabet's business, or lack of one, the company has made a major push into AI in 2023. In a recentearnings call CEO Sundar Pichai said Alphabet has been sharpening its focus, "investing responsibly with great discipline and finding areas where we can operate more cost-effectively."
The company's priority on AI led it to unveil a competitor to OpenAI's ChatGPT in February called Bard. Then in May, Alphabet previewed PaLM2, a large language model that has the potential to bring AI upgrades across the company's software lineup, including search.
Alphabet's hyperfocus on the high-growth industry could provide massive gains over the long term, bolstered by the gradual recovery of the digital ad market.
Is Apple or Alphabet the better buy?
As two of the world's most valuable companies, it's hard to go wrong with Apple or Alphabet. Both organizations have a history of offering investors reliable long-term growth, primarily thanks to the ever-expanding nature of the tech industry. Alphabet has massively profited from the steady growth of platforms like Google and YouTube, while high demand for Apple's products has helped it dominate the consumer market.
Data by YCharts
However, the chart above indicates Alphabet is trading at a better value than Apple. Alphabet's forward price-to-earnings (P/E) ratio and price-to-free-cash-flow (P/CF) ratio are several points below the same metrics for Apple, suggesting your investment could go further with the Google company.
Forward P/E and P/FCF are helpful metrics when determining a stock's value, as one compares a stock's projected earnings with its share price, while the other does the same with free cash flow.
So if you're having trouble deciding which of these stocks is worth an investment, Alphabet is the better buy this month. However, Apple remains a solid long-term investment and a company worth keeping on your radar.
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 1, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) both have growing ventures in the market, making their stocks attractive options over the long term. Macroeconomic headwinds caused reductions in consumer spending across tech, with Apple reporting sales declines in its iPhone, Mac, and iPad segments. In a recentearnings call CEO Sundar Pichai said Alphabet has been sharpening its focus, "investing responsibly with great discipline and finding areas where we can operate more cost-effectively."
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Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) both have growing ventures in the market, making their stocks attractive options over the long term. In the second quarter of fiscal 2023 (ended March 31), when iPhone sales fell 6% year over year, Samsung's smartphone sales decreased by 37%, and Motorola's tumbled 17%. Alphabet Alphabet's stock has risen about 5% since the company released its earnings report on July 25.
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Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) both have growing ventures in the market, making their stocks attractive options over the long term. So, let's take a look at whether Apple or Alphabet stock is the better buy this August. Alphabet Alphabet's stock has risen about 5% since the company released its earnings report on July 25.
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Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) both have growing ventures in the market, making their stocks attractive options over the long term. Apple's reliability came alongside nearly unrivaled dominance in the consumer tech industry, with leading market shares in most of its product categories. Alphabet's hyperfocus on the high-growth industry could provide massive gains over the long term, bolstered by the gradual recovery of the digital ad market.
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14346.0
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2023-08-11 00:00:00 UTC
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Apple (AAPL) Declares $0.24 Dividend
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-declares-%240.24-dividend-0
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nan
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nan
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Apple said on August 3, 2023 that its board of directors declared a regular quarterly dividend of $0.24 per share ($0.96 annualized). Previously, the company paid $0.24 per share.
Shareholders of record as of August 14, 2023 will receive the payment on August 17, 2023.
At the current share price of $177.97 / share, the stock's dividend yield is 0.54%.
Looking back five years and taking a sample every week, the average dividend yield has been 0.91%, the lowest has been 0.48%, and the highest has been 1.99%. The standard deviation of yields is 0.41 (n=235).
The current dividend yield is 0.90 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.16. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.17%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 6398 funds or institutions reporting positions in Apple. This is an increase of 14 owner(s) or 0.22% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.01%, an increase of 17.62%. Total shares owned by institutions decreased in the last three months by 1.86% to 9,900,129K shares.
The put/call ratio of AAPL is 0.84, 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 11.65% 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 11.65% from its latest reported closing price of 177.97.
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. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over 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 285,171K shares representing 1.82% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.50% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% 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
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
SCHEDULE 13G RELEVANT SUBSIDIARIES AND MEMBERS OF FILING GROUP
SCHEDULE 13G JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k)(1)
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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Average portfolio weight of all funds dedicated to AAPL is 4.01%, an increase of 17.62%. The put/call ratio of AAPL is 0.84, indicating a bullish outlook. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
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Average portfolio weight of all funds dedicated to AAPL is 4.01%, an increase of 17.62%. The put/call ratio of AAPL is 0.84, indicating a bullish outlook. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
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Average portfolio weight of all funds dedicated to AAPL is 4.01%, an increase of 17.62%. The put/call ratio of AAPL is 0.84, indicating a bullish outlook. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
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Average portfolio weight of all funds dedicated to AAPL is 4.01%, an increase of 17.62%. The put/call ratio of AAPL is 0.84, indicating a bullish outlook. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
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14347.0
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2023-08-11 00:00:00 UTC
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ETF Lessons to Learn from Berkshire Earnings
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AAPL
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https://www.nasdaq.com/articles/etf-lessons-to-learn-from-berkshire-earnings
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nan
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nan
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Veteran investor Warren Buffett's Berkshire Hathaway (BRK.B) reported second-quarter earnings in late last week. Operating earnings rose 7% to $10.04 billion year over year, with revenues up 21% to $92.5 billion. Analysts expected Berkshire earnings to fall 8% year over year to $3.87 a share, with revenue up nearly 6% to $80.58 billion (read: Time for Value ETFs as Buffett Indicator Signals Caution?).
The companies’ insurance underwriting profit skyrocketed 74%. Insurance investment income also rose solidly. Those made up for a 24% drop in the BNSF railroad's profit, per investors.com. Warren Buffett bought just $1.4 billion of Berkshire stock in the second quarter, probably due to higher prices of stock. In Q1, Berkshire bought back $4.4 billion, up 57% from Q4 and the most since Q1 of 2021.
Below we highlight the key pointers from the earnings report and see how these can form winning ETF strategies for investors.
Does AI Deserve a Must-Have Place in Portfolio?
About 47% of Warren Buffett's $375 billion portfolio is invested in three Artificial Intelligence (AI) stocks, per Motley Fool. These three stocks are Apple AAPL, Amazon AMZN and Snowflake SNOW. The company's stake in Apple surged to $177.6 billion by the end of Q2. Buffett's 5.8% stake in Apple continues to be the pillar of Berkshire's equity portfolio, per Investopedia.
Hence, ETFs like Global X Robotics & Artificial Intelligence ETF (BOTZ) deserves a place in your portfolio. Apart from this, investors can play Apple-heavy ETFs Technology Select Sector SPDR Fund XLK and Fidelity MSCI Information Technology Index ETF (FTEC), Amazon-heavy ETFs ProShares Online Retail ETF ONLN and Vanguard Consumer Discretionary ETF (VCR) and Snowflake-heavy ETFs like Renaissance IPO ETF IPO.
Cash in King
Berkshire continued to grow its massive cash stockpile, adding $16.7 billion in cash and short-term securities in the quarter. Total cash now stands at $147.4 billion.
Notably, some customers have been avoiding the banking system altogether lately and moving their money to U.S. money market funds in quest of higher yields. As the Fed started to raise interest rates to cool the economy, depositors started searching for higher-yield options.
Investors can play cash-like ETFs which include JPMorgan Ultra-Short Income ETF JPST, First Trust Low Duration Strategic Focus ETF LDSF and Arrow Reserve Capital Management ETF (ARCM). These ETFs offer 3.61%, 3.58% and 2.65% yield, respectively (read: Where are Americans Parking Money? ETFs in Focus).
Insurance Stocks in Sweet Spot?
Warren Buffett’s Berkshire Hathaway recorded gains in operating profit helped by its insurance businesses which helped mitigate inflationary pressures. SPDR S&P Insurance ETF KIE has advanced 4.9% past month (as of Aug 4, 2023).
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Snowflake Inc. (SNOW) : Free Stock Analysis Report
Renaissance IPO ETF (IPO): ETF Research Reports
SPDR S&P Insurance ETF (KIE): ETF Research Reports
Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
JPMorgan Ultra-Short Income ETF (JPST): ETF Research Reports
ProShares Online Retail ETF (ONLN): ETF Research Reports
First Trust Low Duration Strategic Focus ETF (LDSF): 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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These three stocks are Apple AAPL, Amazon AMZN and Snowflake SNOW. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Snowflake Inc. (SNOW) : Free Stock Analysis Report Renaissance IPO ETF (IPO): ETF Research Reports SPDR S&P Insurance ETF (KIE): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports JPMorgan Ultra-Short Income ETF (JPST): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports First Trust Low Duration Strategic Focus ETF (LDSF): ETF Research Reports To read this article on Zacks.com click here. Veteran investor Warren Buffett's Berkshire Hathaway (BRK.B) reported second-quarter earnings in late last week.
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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 Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Snowflake Inc. (SNOW) : Free Stock Analysis Report Renaissance IPO ETF (IPO): ETF Research Reports SPDR S&P Insurance ETF (KIE): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports JPMorgan Ultra-Short Income ETF (JPST): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports First Trust Low Duration Strategic Focus ETF (LDSF): ETF Research Reports To read this article on Zacks.com click here. These three stocks are Apple AAPL, Amazon AMZN and Snowflake SNOW. Apart from this, investors can play Apple-heavy ETFs Technology Select Sector SPDR Fund XLK and Fidelity MSCI Information Technology Index ETF (FTEC), Amazon-heavy ETFs ProShares Online Retail ETF ONLN and Vanguard Consumer Discretionary ETF (VCR) and Snowflake-heavy ETFs like Renaissance IPO ETF IPO.
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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 Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Snowflake Inc. (SNOW) : Free Stock Analysis Report Renaissance IPO ETF (IPO): ETF Research Reports SPDR S&P Insurance ETF (KIE): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports JPMorgan Ultra-Short Income ETF (JPST): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports First Trust Low Duration Strategic Focus ETF (LDSF): ETF Research Reports To read this article on Zacks.com click here. These three stocks are Apple AAPL, Amazon AMZN and Snowflake SNOW. Apart from this, investors can play Apple-heavy ETFs Technology Select Sector SPDR Fund XLK and Fidelity MSCI Information Technology Index ETF (FTEC), Amazon-heavy ETFs ProShares Online Retail ETF ONLN and Vanguard Consumer Discretionary ETF (VCR) and Snowflake-heavy ETFs like Renaissance IPO ETF IPO.
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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 Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Snowflake Inc. (SNOW) : Free Stock Analysis Report Renaissance IPO ETF (IPO): ETF Research Reports SPDR S&P Insurance ETF (KIE): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports JPMorgan Ultra-Short Income ETF (JPST): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports First Trust Low Duration Strategic Focus ETF (LDSF): ETF Research Reports To read this article on Zacks.com click here. These three stocks are Apple AAPL, Amazon AMZN and Snowflake SNOW. Veteran investor Warren Buffett's Berkshire Hathaway (BRK.B) reported second-quarter earnings in late last week.
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14348.0
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2023-08-11 00:00:00 UTC
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Drinks, Chips & Drugs: A Surprising List of 10-Year Stock Winners
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AAPL
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https://www.nasdaq.com/articles/drinks-chips-drugs%3A-a-surprising-list-of-10-year-stock-winners
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nan
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nan
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Global financial crises. A pandemic. Recession. Countless geopolitical conflicts.
A lot has happened over the last 10 years.
The U.S. stock market has been rattled by a range of events and yet sits within 7% of an all-time high. Along the way, however, many publicly traded companies have gone bankrupt or been delisted. Most have survived.
Then there are a select group of stocks that have risen to the top. Although not immune from macroeconomic challenges, some companies just have that ultra-disruptive product, a game-changing technology or innate quality that sets them apart from the 6,000-plus U.S. listed stocks.
Over the last 10 years, the S&P 500 has advanced 174%. No surprise, the technology sector has been the biggest outperformer with a return roughly twice that of the broader market. Naturally, individual tech stocks are well represented among the biggest 10-year winners.
But which ones have earned the title ‘best of the best’?
It must be Apple. Nope, that’s ‘only’ up 1,002%. Tesla must be at the top. No, its 10-year return is ‘just’ 2,659%. These stocks are no doubt huge winners, but there are a handful of large caps that have taken things to another level.
These three stocks have blown past the herd — and may be market leaders for years to come.
#1 - Celsius Holdings
A decade ago, Celsius Holdings, Inc. (NASDAQ: CELH) was a little-known beverage maker trying to make a splash in an energy drink market long dominated by Red Bull and Monster. Mission accomplished. Celsius is now the nation’s third best-selling energy drink and gaining ground. It is the second best-selling energy drink on Amazon.com, with a sizable lead on Red Bull and nipping at the heels of Monster.
As Celsius brand awareness has grown, so too has its share price — in an amazing way. The stock is up a staggering 23,668% over the last 10 years. A penny stock for most of the period, Celsius has exploded over the last few years and currently trades well over $100 per share. The stock’s 82% annualized return would’ve turned a $2,000 investment 10 years ago into a $1.4 million windfall. Coulda, shoulda, woulda!
While the company has clearly benefited from health & wellness trends born out of the pandemic, it has made the most of the opportunity. Continuously rolling out new products and unique flavors to fitness-minded consumers continues to be a winning formula. Now in nine international markets, overseas expansion has contributed but only scratched the surface. Last, a newly formed distribution partnership with stakeholder Pepsi stands to keep this success story chugging along for the next 10 years.
#2 - NVIDIA
NVIDIA Corporation (NASDAQ: NVDA) has produced an 11,951% cumulative return over the last 10 years. This makes it by far the best-performing stock in the S&P 500 and the Nasdaq-100 in that span. Semiconductor industry peer AMD is a distant second in both indices with a 2,932% gain.
A relentless pursuit of tech leadership has propelled the chipmaker to incredible heights. Throughout the years, it has launched groundbreaking innovations for computers, 3D gaming and data centers.
Last year’s unveiling of the NVIDIA Omniverse platform ushered in a technology that is expected to play a major role in the Internet’s next biggest stage, the metaverse. And although the company first introduced artificial intelligence tools in 2012, much of the stock’s recent gains can be attributed to its growth potential in AI data centers and other applications.
In May 2023, NVIDIA became the first semiconductor company to reach a $1 trillion valuation. This put it in an exclusive club of trillion dollar market cap stocks that includes Apple, Microsoft, Alphabet and Amazon.
#3 - Horizon Therapeutics
Horizon Therapeutics Public Limited Company (NASDAQ: HZNP) is another penny stock turned large cap success story. Shares of the Ireland-based biopharmaceutical company have surged 3,858% since August 2013. The next closest large cap drug manufacturer is Eli Lilly, which is up 734%.
For Horizon, the outperformance stems from the commercialization of novel medicines for rare diseases that previously had limited (if any) treatment options. The company has seven prescription medicines available in the U.S., including thyroid eye disease (TED) therapy Tepezza which accounts for roughly half of the total sales. Krystexxa, a treatment for chronic gout, is its next best-known product. Horizon also boasts a pipeline of 10 drug candidates, several of which are in late-stage clinical trials.
The diversified portfolio and potentially lucrative pipeline convinced Amgen to acquire Horizon for $28 billion in December 2022. Earlier this year, however, the Federal Trade Commission (FTC) filed a lawsuit to halt the takeover — which has likely delayed the potential close to later this year or next year.
So with a pending acquisition on the table, the stock’s days of massive gains appear over. But with Horizon trading 16% below Amgen’s $116.50 per share offer price, there may be a short-term arbitrage opportunity.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last year’s unveiling of the NVIDIA Omniverse platform ushered in a technology that is expected to play a major role in the Internet’s next biggest stage, the metaverse. And although the company first introduced artificial intelligence tools in 2012, much of the stock’s recent gains can be attributed to its growth potential in AI data centers and other applications. The company has seven prescription medicines available in the U.S., including thyroid eye disease (TED) therapy Tepezza which accounts for roughly half of the total sales.
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#1 - Celsius Holdings A decade ago, Celsius Holdings, Inc. (NASDAQ: CELH) was a little-known beverage maker trying to make a splash in an energy drink market long dominated by Red Bull and Monster. This put it in an exclusive club of trillion dollar market cap stocks that includes Apple, Microsoft, Alphabet and Amazon. #3 - Horizon Therapeutics Horizon Therapeutics Public Limited Company (NASDAQ: HZNP) is another penny stock turned large cap success story.
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A penny stock for most of the period, Celsius has exploded over the last few years and currently trades well over $100 per share. #3 - Horizon Therapeutics Horizon Therapeutics Public Limited Company (NASDAQ: HZNP) is another penny stock turned large cap success story. Earlier this year, however, the Federal Trade Commission (FTC) filed a lawsuit to halt the takeover — which has likely delayed the potential close to later this year or next year.
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The stock is up a staggering 23,668% over the last 10 years. A penny stock for most of the period, Celsius has exploded over the last few years and currently trades well over $100 per share. #3 - Horizon Therapeutics Horizon Therapeutics Public Limited Company (NASDAQ: HZNP) is another penny stock turned large cap success story.
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14349.0
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2023-08-10 00:00:00 UTC
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Invest Like Warren Buffett with These Stocks & ETFs
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AAPL
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https://www.nasdaq.com/articles/invest-like-warren-buffett-with-these-stocks-etfs
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nan
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nan
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(1:30) - How Did Warren Buffett Get Started In Investing?
(7:10) - How Has Berkshire Hathaway’s Investing Changed Over The Years?
(12:20) - Breaking Down Warren Buffett’s Current Portfolio Holdings
(19:30) - Creating Your Own Mini Berkshire Hathaway Portfolio: What Stocks Should You Consider?
(23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR
(28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time.
Berkshire Hathaway (BRK.A) reported excellent earnings last week, sending its class A shares to an all-time high. The stock is up more than 25,000 times since Buffett took control of the company in 1965, according to Barron's.
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. 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 Oracle of Omaha avoided investing in tech companies earlier in his career but changed his stance later. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own."
The SPDR MSCI USA StrategicFactors ETF QUS seeks to invest in high-quality firms with durable balance sheets and stable cash flows, trading at reasonable valuations.
The legendary investor likes companies with "economic moats," that allow 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.
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.
Fastenal FAST, MasTec MTZ and United Rentals URI are among Berkshire-like companies that investors may want to consider.
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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Apple Inc. (AAPL) : Free Stock Analysis Report
Fastenal Company (FAST) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report
United Rentals, Inc. (URI) : Free Stock Analysis Report
MasTec, Inc. (MTZ) : 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 MSCI USA StrategicFactors ETF (QUS): 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, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : 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 MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. (23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR (28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : 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 MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." (23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR (28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : 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 MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." (23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR (28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : 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 MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." (7:10) - How Has Berkshire Hathaway’s Investing Changed Over The Years?
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14350.0
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2023-08-10 00:00:00 UTC
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Caltech reaches 'potential settlement' in Apple, Broadcom patent case
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AAPL
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https://www.nasdaq.com/articles/caltech-reaches-potential-settlement-in-apple-broadcom-patent-case
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nan
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nan
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By Blake Brittain
Aug 10 (Reuters) - The California Institute of Technology has reached a "potential settlement" in a high-stakes patent infringement lawsuit against Apple AAPL.O and Broadcom AVGO.O over Wi-Fi chips, according to a Thursday filing in federal court.
Caltech previously won a verdict of more than $1.1 billion from Apple and Broadcom in the case that was later overturned.
The potential settlement was disclosed in a court document filed in U.S. District Court in Los Angeles without further details following a telephone conference. It was unclear if the agreement involved both Apple and Broadcom.
Representatives for Caltech, Apple and Broadcom did not immediately respond to requests for comment. The court ordered the parties to file a joint status report by Aug. 18.
Pasadena, California-based Caltech sued Apple and Broadcom in 2016, alleging that millions of iPhones, iPads, Apple Watches and other Apple devices using Broadcom chips infringed its wireless-communication patents. A jury ordered Apple to pay $837.8 million and Broadcom to pay $270.2 million in patent-infringement damages in 2020.
A U.S. appeals court overturned the award last year and ordered a new trial on damages, finding the amount was "legally unsupportable." A trial that had been scheduled to begin in June 2023 was postponed indefinitely in May.
Caltech told a Texas federal court on Tuesday that it had settled a related lawsuit against Samsung 005930.KS. The university has also sued Microsoft MSFT.O, Dell DELL.N and HP HPQ.N over its Wi-Fi patents in cases that are pending.
(Reporting by Blake Brittain in Washington Editing by David Bario and Leslie Adler)
((blake.brittain@tr.com; +1 (202) 938-5713;))
The views and 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 Blake Brittain Aug 10 (Reuters) - The California Institute of Technology has reached a "potential settlement" in a high-stakes patent infringement lawsuit against Apple AAPL.O and Broadcom AVGO.O over Wi-Fi chips, according to a Thursday filing in federal court. A U.S. appeals court overturned the award last year and ordered a new trial on damages, finding the amount was "legally unsupportable." Caltech told a Texas federal court on Tuesday that it had settled a related lawsuit against Samsung 005930.KS.
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By Blake Brittain Aug 10 (Reuters) - The California Institute of Technology has reached a "potential settlement" in a high-stakes patent infringement lawsuit against Apple AAPL.O and Broadcom AVGO.O over Wi-Fi chips, according to a Thursday filing in federal court. Pasadena, California-based Caltech sued Apple and Broadcom in 2016, alleging that millions of iPhones, iPads, Apple Watches and other Apple devices using Broadcom chips infringed its wireless-communication patents. A jury ordered Apple to pay $837.8 million and Broadcom to pay $270.2 million in patent-infringement damages in 2020.
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By Blake Brittain Aug 10 (Reuters) - The California Institute of Technology has reached a "potential settlement" in a high-stakes patent infringement lawsuit against Apple AAPL.O and Broadcom AVGO.O over Wi-Fi chips, according to a Thursday filing in federal court. Pasadena, California-based Caltech sued Apple and Broadcom in 2016, alleging that millions of iPhones, iPads, Apple Watches and other Apple devices using Broadcom chips infringed its wireless-communication patents. A jury ordered Apple to pay $837.8 million and Broadcom to pay $270.2 million in patent-infringement damages in 2020.
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By Blake Brittain Aug 10 (Reuters) - The California Institute of Technology has reached a "potential settlement" in a high-stakes patent infringement lawsuit against Apple AAPL.O and Broadcom AVGO.O over Wi-Fi chips, according to a Thursday filing in federal court. The potential settlement was disclosed in a court document filed in U.S. District Court in Los Angeles without further details following a telephone conference. Pasadena, California-based Caltech sued Apple and Broadcom in 2016, alleging that millions of iPhones, iPads, Apple Watches and other Apple devices using Broadcom chips infringed its wireless-communication patents.
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14351.0
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2023-08-10 00:00:00 UTC
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5 Signs a Market Bounce May Be Imminent
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AAPL
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https://www.nasdaq.com/articles/5-signs-a-market-bounce-may-be-imminent
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nan
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nan
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US equities have been on a tear over the past few months. In fact, until it occurred on August 2nd, the S&P 500 Index had not suffered a 1% drawdown for more than two months. Unfortunately for equity investors, the market climate will not always be as easy as it has been. Simply put, “if it were easy, everyone would be rich.”
In the past two weeks, the US equities have blindsided complacent investors. First, news broke that the Fitch Rating agency was slapping the US debt market with a rare downgrade (the only other was in 2011, and the market dropped nearly 20% rapidly)
Image Source: TradingView
Next, Apple (AAPL) added to the pain when it reported revenue that fell 1% while diluted EPS was up a sluggish 5% year-over-year. Over the past two weeks, AAPL has fallen nearly 10% and given up two months of gains in two weeks, dragging down tech with it. Apple holds a massive weighting of 7.6% of the S&P 500 Index.
Image Source: Zacks Investment Research
Nevertheless, investors can easily fall into the trap of suffering from “recency bias”. At the time of this writing, the tech-heavy Nasdaq 100 ETF (QQQ) is up a whopping 41.16% year-to-date, with the S&P 500 Index ETF (SPY) (+17.99%), the Dow Jones Industrial Average ETF Trust (DIA) (+6.87%), and the Russel 2000 ETF (IWM) (+11.79%), respectively. In other words, in the scheme of things, equities are still in a raging bull market. Below are 5 reasons the market may be ready for a short-term bounce:
Market sentiment is high but has cooled: The CNN Fear & Greed Index is a contrarian indicator that gauges the overall view and emotions of the market to measure whether it’s being driven by fear or greed. In the past two weeks, sentiment has backed off from “Extreme Greed” to “Greed”, despite the relatively mild pullback in the market – evidence that investors are still skittish.
Image Source: CNN
No More Hikes? Continued improvement on the inflation front has investors betting that the Federal Reserve is unlikely to raise interest rates again this year, giving a less than 10% chance in September (according to CME Group’s FedWatch tool)
Image Source: CME Group
Seasonality: September tends to be a historically weak period for stocks. However, typically, stocks tend to find a bottom about mid-way through the month before chopping around again in early September.
Image Source: Equity Clock
Chart: While the QQQ index has been weak in recent days, it is pulling into an inflection area which includes retracing to its previous break-out zone, filling daily price gaps, triggering an oversold signal, and testing its 50-day moving average.
Image Source: TradingView
Market Leader Pulling into Support: “As Goes GM, So Goes the Nation” was a quote by Charles Wilson, CEO of General Motors (GM), in a congressional hearing in 1953. The argument he made was simple – GM was so large and essential to the economy, that the country was dependent on its performance to a large degree.
One can argue that today’s market leader is Nvidia (NVDA). NVDA is high-growth, trending well, and is the poster child of the AI revolution. The stock is pulling into its 50-day moving average for the first time since breaking out – an area likely to find buyers.
Image Source: TradingView
Other market generals and members of the “Magnificent 7,” such as Tesla (TSLA), Meta Platforms (META) and Amazon (AMZN) are pulling into support zones as well.
Takeaway
Though the market has changed its character recently, investors must keep a sense of context and fight against recency bias. Several factors suggest that the recent decline in stocks is close to an end and that the pullback is “normal” and not the start of a bear market.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
iShares Russell 2000 ETF (IWM): 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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Image Source: TradingView Next, Apple (AAPL) added to the pain when it reported revenue that fell 1% while diluted EPS was up a sluggish 5% year-over-year. Over the past two weeks, AAPL has fallen nearly 10% and given up two months of gains in two weeks, dragging down tech with it. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Meta Platforms, Inc. (META) : 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: TradingView Next, Apple (AAPL) added to the pain when it reported revenue that fell 1% while diluted EPS was up a sluggish 5% year-over-year. Over the past two weeks, AAPL has fallen nearly 10% and given up two months of gains in two weeks, dragging down tech with it.
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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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: TradingView Next, Apple (AAPL) added to the pain when it reported revenue that fell 1% while diluted EPS was up a sluggish 5% year-over-year. Over the past two weeks, AAPL has fallen nearly 10% and given up two months of gains in two weeks, dragging down tech with it.
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Image Source: TradingView Next, Apple (AAPL) added to the pain when it reported revenue that fell 1% while diluted EPS was up a sluggish 5% year-over-year. Over the past two weeks, AAPL has fallen nearly 10% and given up two months of gains in two weeks, dragging down tech with it. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-08-10 00:00:00 UTC
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July CPI Data: Bullish or Bearish for Stocks?
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AAPL
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https://www.nasdaq.com/articles/july-cpi-data%3A-bullish-or-bearish-for-stocks
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This morning, the market’s most-anticipated inflation report – the consumer price index report (CPI) – was released. And it seems investors are having trouble figuring out if this latest batch of inflation data is good or bad for stocks.
At first, Wall Street cheered the July CPI data because the headline inflation rate of 3.2% was lower than the estimated 3.3% rise. And as a result, the S&P 500 popped nearly 1.5% in early morning trading.
But as the day continued on, traders began to have second thoughts. Investors were seemingly concerned that in July, inflation accelerated from its 3% rate in June. And by the afternoon, the S&P 500 dropped to a gain of just 0.2%.
So… Was today’s inflation data good or bad for stocks?
Well, in our opinion, it was emphatically positive.
July CPI Breakdown
It’s true that July’s headline CPI rate accelerated from 3% to 3.2%. However, this reacceleration is due exclusively to the rise in energy prices. And that is pretty unimportant for three reasons:
Energy prices are volatile, and the Fed can’t control them, so energy-driven inflation shouldn’t impact Fed policy. Their volatility also means they could plummet just as fast as they’ve risen.
Energy is a small component of CPI, accounting for less than 10% of the total CPI basket.
Everything else that comprised July CPI continues to disinflate. Food CPI dropped from 5.7% to 4.9%. Core commodity CPI fell from 1.3% to 0.8%. Shelter CPI slid, too.
In other words, the supposed reacceleration of CPI in July was driven exclusively by volatile energy prices, which themselves are a small part of CPI.
That’s why core CPI trends – which is what the Fed cares about most – continued to slow in the quarter. Core CPI dropped to 4.7%. Furthermore, on a three-month annualized basis, core CPI rose just 3.1%, its lowest rise in this cycle.
Perhaps the most important part of July’s CPI report, though, came on the shelter line. Shelter costs make up the largest part of the CPI basket, accounting for a whopping 35%. No other line item carries a bigger weight.
And shelter CPI has been very high and very sticky. While headline inflation peaked a year ago, shelter CPI peaked just a few months ago.
But now it’s finally coming down. And new modeling from the San Francisco Fed (based on real-time asking rents across the U.S.) suggests that shelter CPI will collapse over the next 12 months. Specifically, the San Francisco Fed sees shelter CPI dropping from 7.7% today to below zero by the middle of 2024.
If 35% of the CPI basket is set to collapse over the next 12 months, then it doesn’t really matter what energy prices (less than 10% of CPI) do. Overall inflation will head lower.
So, forget the bears and naysayers. Today’s CPI report was not bad. It was good. And it provides a great setup to propel the 2023 stock market rally forward.
The Final Word
It’s true that the seemingly unstoppable bull market rally has hit quite the speed bump this month. But that doesn’t mean it’s over.
Red-hot stocks got overextended and needed to consolidate and digest their gains. That’s exactly what we’re seeing right now.
Of course, it’s true that this pullback is lasting longer and is more intense than we anticipated. We were hoping that today’s softer-than-expected CPI data would reignite that rally. And while it did at first, stocks gave up their gains as the day went on. But that’s no reason to be bearish.
We’re confident that the most important takeaway from today’s CPI data is this: Disinflation remains the prevailing trend. And that will propel stocks much higher in the long term.
Want to prepare for those bull market gains? How about investing in AI, one of the market’s top-performing sectors of 2023?
After all, this whole bull market rally began after OpenAI launched ChatGPT back in November of 2022 and kickstarted the AI Revolution.
And just last week, it announced huge partnerships to power AI programs at both Intuit (INTU) and Moody’s (MCO).
In fact, I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest.
But OpenAI is a private company; it’s not a stock you can buy on a major exchange like most others.
Though, I’ve discovered an investment ‘loophole’ that will allow you to take a stake in this industry titan – before its highly anticipated IPO.
Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss.
Learn more about this loophole now.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post July CPI Data: Bullish or Bearish for Stocks? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. The Final Word It’s true that the seemingly unstoppable bull market rally has hit quite the speed bump this month. After all, this whole bull market rally began after OpenAI launched ChatGPT back in November of 2022 and kickstarted the AI Revolution.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This morning, the market’s most-anticipated inflation report – the consumer price index report (CPI) – was released. While headline inflation peaked a year ago, shelter CPI peaked just a few months ago.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This morning, the market’s most-anticipated inflation report – the consumer price index report (CPI) – was released. July CPI Breakdown It’s true that July’s headline CPI rate accelerated from 3% to 3.2%.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. So… Was today’s inflation data good or bad for stocks? Perhaps the most important part of July’s CPI report, though, came on the shelter line.
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2023-08-10 00:00:00 UTC
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Amazon scraps private label brands to cut costs, address antitrust scrutiny - source
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AAPL
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https://www.nasdaq.com/articles/amazon-scraps-private-label-brands-to-cut-costs-address-antitrust-scrutiny-source
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nan
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Aug 10 (Reuters) - Amazon.com AMZN.O is shelving several private clothing brands in an attempt to reduce costs and address antitrust scrutiny, a source familiar with the matter said on Thursday.
The move was first reported by the Wall Street Journal, which said the company has decided to eliminate 27 of its 30 in house-label clothing division, leaving it with just Amazon Essentials, Amazon Collection and Amazon Aware.
Amazon also is scrapping private-label furniture, phasing out its Rivet and Stone & Beam brands once their stock runs out, the report said.
"If there are products that aren't resonating with customers we deprecate those items and look for other opportunities to better meet their needs," Matt Taddy, Vice President of Amazon Private Brands, said in an email to Reuters.
The Journal had earlier reported that Amazon was discussing an exit from the private brands business as a concession to the U.S. Federal Trade Commission (FTC) if the regulators filed a long-awaited antitrust lawsuit against the retailer.
The FTC began probing Amazon during the Trump administration when the government decided to investigate several big tech companies for allegedly breaking antitrust law.
Amazon has been criticized for allegedly favoring its own products and disfavoring outside sellers on its platform.
The company, which has denied any wrongdoing, is set to meet next week with the FTC to argue that the agency should not file an antitrust suit against the retailer, Reuters reported earlier this week.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shweta Agarwal and Arun Koyyur)
((Zaheer.Kachwala@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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Aug 10 (Reuters) - Amazon.com AMZN.O is shelving several private clothing brands in an attempt to reduce costs and address antitrust scrutiny, a source familiar with the matter said on Thursday. "If there are products that aren't resonating with customers we deprecate those items and look for other opportunities to better meet their needs," Matt Taddy, Vice President of Amazon Private Brands, said in an email to Reuters. The Journal had earlier reported that Amazon was discussing an exit from the private brands business as a concession to the U.S. Federal Trade Commission (FTC) if the regulators filed a long-awaited antitrust lawsuit against the retailer.
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"If there are products that aren't resonating with customers we deprecate those items and look for other opportunities to better meet their needs," Matt Taddy, Vice President of Amazon Private Brands, said in an email to Reuters. The Journal had earlier reported that Amazon was discussing an exit from the private brands business as a concession to the U.S. Federal Trade Commission (FTC) if the regulators filed a long-awaited antitrust lawsuit against the retailer. The company, which has denied any wrongdoing, is set to meet next week with the FTC to argue that the agency should not file an antitrust suit against the retailer, Reuters reported earlier this week.
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The move was first reported by the Wall Street Journal, which said the company has decided to eliminate 27 of its 30 in house-label clothing division, leaving it with just Amazon Essentials, Amazon Collection and Amazon Aware. The Journal had earlier reported that Amazon was discussing an exit from the private brands business as a concession to the U.S. Federal Trade Commission (FTC) if the regulators filed a long-awaited antitrust lawsuit against the retailer. The company, which has denied any wrongdoing, is set to meet next week with the FTC to argue that the agency should not file an antitrust suit against the retailer, Reuters reported earlier this week.
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Aug 10 (Reuters) - Amazon.com AMZN.O is shelving several private clothing brands in an attempt to reduce costs and address antitrust scrutiny, a source familiar with the matter said on Thursday. The move was first reported by the Wall Street Journal, which said the company has decided to eliminate 27 of its 30 in house-label clothing division, leaving it with just Amazon Essentials, Amazon Collection and Amazon Aware. Amazon also is scrapping private-label furniture, phasing out its Rivet and Stone & Beam brands once their stock runs out, the report said.
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2023-08-10 00:00:00 UTC
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US STOCKS-Wall St rises as July inflation data fuels Fed rate pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-july-inflation-data-fuels-fed-rate-pause-hopes
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Disney climbs after posting upbeat Q3 earnings
Capri jumps as Tapestry to buy it in $8.5 bln deal
July annual CPI at 3.2% vs estimates of 3.3%
Weekly jobless claims rise more than expected
Indexes up: Dow 0.73%, S&P 0.69%, Nasdaq 0.72%
Updated at 11:31 a.m. ET/1531 GMT
By Bansari Mayur Kamdar and Johann M Cherian
Aug 10 (Reuters) - Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month.
Data showed headline and core consumer prices both climbed by 0.2% in July, logging an annual rise of 3.2% and 4.7%, respectively.
Buoyed by inflation numbers, traders not only expect the central bank to stop further monetary tightening in 2023, they are also betting the Fed would start cutting interest rates early next year.
"Inflation has returned to the good old days where in 2019 we saw an average monthly increase of around 0.2% ... The Fed, therefore, might feel it can pause as planned and not raise interest rates in September," said George Mateyo, chief investment officer at Key Private Bank.
San Francisco Fed President Mary Daly was cautious in her remarks and said that while recent inflation data was moving in the right direction, more progress was needed before she would feel comfortable that the central bank had done enough.
Limiting gains in megacap growth names, yield on the benchmark 10-year treasury note US10YT=RR reversed course to inch higher at 4.02%. US/
Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 1.1% and 0.5%.
The tech-heavy Nasdaq led Wall Street lower on Wednesday, with heavyweight Nvidia NVDA.O falling 4.7%, followed closely by the other "Magnificent Seven" megacap stocks that drove this year's stock rally.
Nasdaq has gained about 32.2% so far this year on hopes of a soft landing for the U.S. economy in the face of the Fed's aggressive interest rate hikes, and optimism over the scope of artificial intelligence.
At 11:31 a.m. ET, the Dow Jones Industrial Average .DJI was up 255.47 points, or 0.73%, at 35,378.83, the S&P 500 .SPX was up 30.95 points, or 0.69%, at 4,498.66, and the Nasdaq Composite .IXIC was up 99.03 points, or 0.72%, at 13,821.05.
Separately, the number of Americans filing new claims for unemployment benefits rose by 248,000 last week, more than estimates of 230,000 additions.
On the earnings front, Walt DisneyDIS.N rose 3.2% after beating Wall Street estimates for quarterly adjusted profit per share.
CapriCPRI.N surged 56.2% after larger rival Tapestry TPR.N said it would buy the Michael Kors parent in an $8.5 billion deal. Tapestry's shares fell 12.6%.
U.S.-listed shares of AlibabaBABA.N jumped 6.7% after the e-commerce conglomerate reported upbeat quarterly sales on the back of improved consumer sentiment.
Heightening trade worries, President Joe Biden on Wednesday signed an executive order that prohibits some new U.S. investment in China in sensitive technologies such as computer chips and requires government notification for investment in other tech sectors.
Advancing issues outnumbered decliners by a 2.53-to-1 ratio on the NYSE and a 1.52-to-1 ratio on the Nasdaq.
The S&P index recorded 18 new 52-week highs and three new lows, while the Nasdaq recorded 49 new highs and 108 new lows.
Megacap tech and growth soar in 2023 https://tmsnrt.rs/451i7uV
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Bansari Mayur Kamdar and Johann M Cherian, additional reporting by Shashwat Chauhan and Shubham Batra in Bengaluru; Editing by Vinay Dwivedi)
((BansariMayur.Kamdar@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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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 1.1% and 0.5%. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims rise more than expected Indexes up: Dow 0.73%, S&P 0.69%, Nasdaq 0.72% Updated at 11:31 a.m. ET/1531 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. Buoyed by inflation numbers, traders not only expect the central bank to stop further monetary tightening in 2023, they are also betting the Fed would start cutting interest rates early next year.
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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 1.1% and 0.5%. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims rise more than expected Indexes up: Dow 0.73%, S&P 0.69%, Nasdaq 0.72% Updated at 11:31 a.m. ET/1531 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. The S&P index recorded 18 new 52-week highs and three new lows, while the Nasdaq recorded 49 new highs and 108 new lows.
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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 1.1% and 0.5%. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims rise more than expected Indexes up: Dow 0.73%, S&P 0.69%, Nasdaq 0.72% Updated at 11:31 a.m. ET/1531 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. The tech-heavy Nasdaq led Wall Street lower on Wednesday, with heavyweight Nvidia NVDA.O falling 4.7%, followed closely by the other "Magnificent Seven" megacap stocks that drove this year's stock rally.
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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 1.1% and 0.5%. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims rise more than expected Indexes up: Dow 0.73%, S&P 0.69%, Nasdaq 0.72% Updated at 11:31 a.m. ET/1531 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. Buoyed by inflation numbers, traders not only expect the central bank to stop further monetary tightening in 2023, they are also betting the Fed would start cutting interest rates early next year.
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2023-08-10 00:00:00 UTC
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US STOCKS-Wall Street ends flat, gives up most gains after July inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-flat-gives-up-most-gains-after-july-inflation-data
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By David French
Aug 10 (Reuters) - Wall Street's main indexes closed flat on Thursday, giving up most early gains on milder-than-feared inflation data as investors worried about the U.S. economy's longer-term prospects and whether stocks had further room to run.
Data showed headline and core consumer prices both climbed by 0.2% in July, with the headline number notching annual rise of 3.2% and the core up 4.7%.
In the first hour of trading, the three benchmark indexes advanced more than 1% as traders bet the U.S. Federal Reserve would stop further monetary tightening in 2023 and start cutting interest rates early next year.
Stock prices started to sag from late-morning onwards, and bounced between positive and negative territory for much of the afternoon.
"People looked at the headline number first and we had the big upswing, but as the day went on, the rally faded and that was probably the right reaction," said Gregg Abella, CEO of Investment Partners Asset Management.
He noted that while inflation has slowed, a look beyond the headline number revealed that core inflation remained sticky, and as traders parsed the data, the initial positive sentiment became more subdued.
San Francisco Fed President Mary Dalyvoiced that cautious tone, saying that while recent inflation data was moving in the right direction, more progress was needed before she would feel comfortable the central bank had done enough.
In separate data, the number of Americans filing new claims for unemployment benefits rose by 248,000 last week, exceeding estimates of 230,000.
August is also the traditional lull in market volumes with many investors enjoying summer vacations. Any stock price gains offer an opportunity for profit-taking, after five months of advances on the S&P 500 .SPX and Nasdaq Composite .IXIC driven by strong growth in big technology stocks.
"A lot of tech valuations are predicated on rates falling, but there is nothing in the numbers, in my mind, to say that we're cutting rates - in fact, we may even see another quarter-point increase before the end of the year," said Abella, noting some big tech valuations were already lofty.
Further rises in these megacaps have also been limited as the yield on the benchmark 10-year U.S. Treasury note US10YT=RR has risen again to above 4%.
Amazon.com AMZN.O, Nvidia Corp NVDA.O, Microsoft MSFT.O and Apple AAPL.Oall closed with modest gains or losses.
According to preliminary data, the S&P 500 .SPX gained 1.34 points, or 0.03%, to end at 4,469.05 points, while the Nasdaq Composite .IXIC gained 16.39 points, or 0.12%, to 13,739.06. The Dow Jones Industrial Average .DJI rose 50.28 points, or 0.15%, to 35,173.64.
Among S&P sectors in negative territory were industrials .SPLRCI and real estate .SPLRCR.
On the earnings front, Walt DisneyDIS.N rose after beating Wall Street estimates for quarterly adjusted profit per share.
CapriCPRI.N surged after larger rival Tapestry TPR.N said it would buy the Michael Kors parent in an $8.5 billion deal. Tapestry's shares fell.
U.S.-listed shares of AlibabaBABA.N jumped after the e-commerce conglomerate reported upbeat quarterly sales on the back of improved consumer sentiment.
Heightening trade worries, President Joe Biden on Wednesday signed an executive order that prohibits some new U.S. investment in China in sensitive technologies such as computer chips and requires government notification for investment in other tech sectors.
Megacap tech and growth soar in 2023 https://tmsnrt.rs/451i7uV
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru and David French in New York; Additional Reporting by Shashwat Chauhan and Shubham Batra in Bengaluru; Editing by Vinay Dwivedi and David Gregorio)
((BansariMayur.Kamdar@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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Amazon.com AMZN.O, Nvidia Corp NVDA.O, Microsoft MSFT.O and Apple AAPL.Oall closed with modest gains or losses. By David French Aug 10 (Reuters) - Wall Street's main indexes closed flat on Thursday, giving up most early gains on milder-than-feared inflation data as investors worried about the U.S. economy's longer-term prospects and whether stocks had further room to run. In the first hour of trading, the three benchmark indexes advanced more than 1% as traders bet the U.S. Federal Reserve would stop further monetary tightening in 2023 and start cutting interest rates early next year.
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Amazon.com AMZN.O, Nvidia Corp NVDA.O, Microsoft MSFT.O and Apple AAPL.Oall closed with modest gains or losses. "A lot of tech valuations are predicated on rates falling, but there is nothing in the numbers, in my mind, to say that we're cutting rates - in fact, we may even see another quarter-point increase before the end of the year," said Abella, noting some big tech valuations were already lofty. According to preliminary data, the S&P 500 .SPX gained 1.34 points, or 0.03%, to end at 4,469.05 points, while the Nasdaq Composite .IXIC gained 16.39 points, or 0.12%, to 13,739.06.
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Amazon.com AMZN.O, Nvidia Corp NVDA.O, Microsoft MSFT.O and Apple AAPL.Oall closed with modest gains or losses. By David French Aug 10 (Reuters) - Wall Street's main indexes closed flat on Thursday, giving up most early gains on milder-than-feared inflation data as investors worried about the U.S. economy's longer-term prospects and whether stocks had further room to run. According to preliminary data, the S&P 500 .SPX gained 1.34 points, or 0.03%, to end at 4,469.05 points, while the Nasdaq Composite .IXIC gained 16.39 points, or 0.12%, to 13,739.06.
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Amazon.com AMZN.O, Nvidia Corp NVDA.O, Microsoft MSFT.O and Apple AAPL.Oall closed with modest gains or losses. By David French Aug 10 (Reuters) - Wall Street's main indexes closed flat on Thursday, giving up most early gains on milder-than-feared inflation data as investors worried about the U.S. economy's longer-term prospects and whether stocks had further room to run. On the earnings front, Walt DisneyDIS.N rose after beating Wall Street estimates for quarterly adjusted profit per share.
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2023-08-10 00:00:00 UTC
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Wall Street gives up gains as pop from July inflation data fizzles
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AAPL
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https://www.nasdaq.com/articles/wall-street-gives-up-gains-as-pop-from-july-inflation-data-fizzles
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Disney climbs after posting upbeat Q3 earnings
Capri jumps as Tapestry to buy it in $8.5 bln deal
July annual CPI at 3.2% vs estimates of 3.3%
Weekly jobless claims rise more than expected
Indexes: Dow up 0.09%, S&P and Nasdaq down 0.1%
Updated at 1:56 p.m. ET/1756 GMT
By David French and Bansari Mayur Kamdar
Aug 10 (Reuters) - Wall Street's main indexes gave up early gains to trade mostly flat on Thursday, as initial optimism over milder-than-feared inflation data gave way to longer-term concerns about the state of the U.S. economy and whether stocks had much room to run.
Data showed headline and core consumer prices both climbed by 0.2% in July, with the headline number notching annual rise of 3.2% and core up 4.7%.
In the first hour of trading, the three benchmark indexes advanced more than 1% as traders bet the U.S. Federal Reserve would stop further monetary tightening in 2023 and start cutting interest rates early next year.
Stock prices started to sag from late-morning onwards.
Yung-Yu Ma, chief investment officer at BMO Wealth Management, said the market reaction was unsurprising, given expectations for tamer inflation had already been largely priced in.
"There are enough markers out there globally to show that, while the CPI number was good, the market has priced it in already," he said.
He added that investors remained wary of medium-term risks, including a possible slowdown of economic growth, the impact of banks pulling back on lending, and how the rate moves the Fed has already taken will feed through into the economy.
The long-term caution was reflected in remarks by San Francisco Fed President Mary Daly, who said that while recent inflation data was moving in the right direction, more progress was needed before she would feel comfortable the central bank had done enough.
In separate data, the number of Americans filing new claims for unemployment benefits rose by 248,000 last week, exceeding estimates of 230,000.
August is also the traditional lull in market volumes with many investors enjoying summer vacations. Any stock price gains offer an opportunity for profit-taking, after five months of advances on the S&P 500 .SPX and Nasdaq Composite .IXIC driven by strong growth in big technology stocks.
Further rises in these megacaps have been limited as the yield on the benchmark 10-year U.S. Treasury note US10YT=RR has risen again to above 4%. US/
Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.Owere trading flat or marginally down.
At 2:05 p.m ET (1805 GMT), the Dow Jones Industrial Average .DJI rose 30.67 points, or 0.09%, to 35,154.03, the S&P 500 .SPX lost 4.18 points, or 0.09%, to 4,463.53 and the Nasdaq Composite .IXIC dropped 9.53 points, or 0.07%, to 13,712.48.
The majority of S&P sectors were in negative territory, with industrials .SPLRCI and real estate .SPLRCR among those declining.
On the earnings front, Walt DisneyDIS.N rose 4.3% after beating Wall Street estimates for quarterly adjusted profit per share.
CapriCPRI.N surged 56% after larger rival Tapestry TPR.N said it would buy the Michael Kors parent in an $8.5 billion deal. Tapestry's shares fell 15.8%.
U.S.-listed shares of AlibabaBABA.N jumped 3.9% after the e-commerce conglomerate reported upbeat quarterly sales on the back of improved consumer sentiment.
Heightening trade worries, President Joe Biden on Wednesday signed an executive order that prohibits some new U.S. investment in China in sensitive technologies such as computer chips and requires government notification for investment in other tech sectors.
Megacap tech and growth soar in 2023 https://tmsnrt.rs/451i7uV
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru and David French in New York; Additional Reporting by Shashwat Chauhan and Shubham Batra in Bengaluru; Editing by Vinay Dwivedi and David Gregorio)
((BansariMayur.Kamdar@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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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.Owere trading flat or marginally down. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims rise more than expected Indexes: Dow up 0.09%, S&P and Nasdaq down 0.1% Updated at 1:56 p.m. ET/1756 GMT By David French and Bansari Mayur Kamdar Aug 10 (Reuters) - Wall Street's main indexes gave up early gains to trade mostly flat on Thursday, as initial optimism over milder-than-feared inflation data gave way to longer-term concerns about the state of the U.S. economy and whether stocks had much room to run. He added that investors remained wary of medium-term risks, including a possible slowdown of economic growth, the impact of banks pulling back on lending, and how the rate moves the Fed has already taken will feed through into the economy.
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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.Owere trading flat or marginally down. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims rise more than expected Indexes: Dow up 0.09%, S&P and Nasdaq down 0.1% Updated at 1:56 p.m. ET/1756 GMT By David French and Bansari Mayur Kamdar Aug 10 (Reuters) - Wall Street's main indexes gave up early gains to trade mostly flat on Thursday, as initial optimism over milder-than-feared inflation data gave way to longer-term concerns about the state of the U.S. economy and whether stocks had much room to run. Data showed headline and core consumer prices both climbed by 0.2% in July, with the headline number notching annual rise of 3.2% and core up 4.7%.
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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.Owere trading flat or marginally down. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims rise more than expected Indexes: Dow up 0.09%, S&P and Nasdaq down 0.1% Updated at 1:56 p.m. ET/1756 GMT By David French and Bansari Mayur Kamdar Aug 10 (Reuters) - Wall Street's main indexes gave up early gains to trade mostly flat on Thursday, as initial optimism over milder-than-feared inflation data gave way to longer-term concerns about the state of the U.S. economy and whether stocks had much room to run. Any stock price gains offer an opportunity for profit-taking, after five months of advances on the S&P 500 .SPX and Nasdaq Composite .IXIC driven by strong growth in big technology stocks.
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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.Owere trading flat or marginally down. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims rise more than expected Indexes: Dow up 0.09%, S&P and Nasdaq down 0.1% Updated at 1:56 p.m. ET/1756 GMT By David French and Bansari Mayur Kamdar Aug 10 (Reuters) - Wall Street's main indexes gave up early gains to trade mostly flat on Thursday, as initial optimism over milder-than-feared inflation data gave way to longer-term concerns about the state of the U.S. economy and whether stocks had much room to run. On the earnings front, Walt DisneyDIS.N rose 4.3% after beating Wall Street estimates for quarterly adjusted profit per share.
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14357.0
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2023-08-10 00:00:00 UTC
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Soccer-Messi effect set to catapult Major League Soccer to 'new level'
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AAPL
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https://www.nasdaq.com/articles/soccer-messi-effect-set-to-catapult-major-league-soccer-to-new-level
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nan
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By Anita Kobylinska and Angelica Medina
Aug 10 (Reuters) - Lionel Messi could significantly raise the profile of Major League Soccer (MLS) and the game as a whole in the United States, experts told Reuters, with the Argentine forward's move to Inter Miami drawing attention from across the globe.
In a surprising turnaround to his career, after winning the World Cup with Argentina and a failed negotiation to return to Barcelona, the 36-year-old joined Inter Miami last month, taking a wave of devoted fans with him to the American East Coast.
Messi is by no means the first star name to move to America, with late Brazil great Pele, Wayne Rooney, David Beckham, Thierry Henry and Zlatan Ibrahimovic having previously plied their trade in the country.
But with the seven-time Ballon d'Or winner as the new face of its top league, American soccer is heading for new heights ahead of the 2026 World Cup, which will be held in the United States, Canada and Mexico.
"Now Lionel Messi has come to the MLS and it's going to definitely catapult it into a whole new level of visibility and brand awareness," Neil Joyce, CEO & co-founder of CLV Group, told Reuters.
"... I think (the signing of) Messi is recognition of the maturing of the MLS, and the need to increase visibility and brand value in the run up to the World Cup in 2026."
SHIRT SALES
According to Google Trends data for the month of July, the announcement of Messi's signing caused a significant spike in searches for match dates and tickets to see the Argentine, with fans also looking to buy his official pink Inter Miami shirt.
"The demand for Messi's jersey in Miami has been truly unprecedented. We are working as quickly as possible to make sure that every fan who wants a jersey can get one online or in one of our stores," an Adidas spokesperson told Reuters.
Football finance expert Joyce said Messi's move to Inter Miami was a massive boost for Adidas, adding: "Previously, he was playing for PSG (Paris St-Germain) and Barcelona, who have Nike as kit manufacturers.
"Now he's working with Inter Miami, whose kits are made by Adidas. He's an Adidas athlete, Argentina (are sponsored by) Adidas. They have brought the value of Messi under one roof, so to speak. There's value for Adidas there."
BROADCAST BOOM
The MLS's viewership is also expected to skyrocket with Messi's arrival.
"We're clearly in the early days, but we're exceeding our expectations in terms of subscribers, and Messi going to Inter Miami helped us a little bit. So we're very happy."
The forward's Inter Miami debut in a 2-1 win over Cruz Azul last month had an average audience of 1.75 million on Spanish-language TV network Univision, making it the largest single-network audience for the MLS since 2004, according to Sports Media Watch.
Asked if Messi's signing could expand MLS viewership outside the United States, Joyce said: "100%, it will.
"We've done some analysis on Messi and his followers and they have huge overlap with South American and Hispanic audiences, which are a massive area of interest to expand the brand and the reach of the MLS."
However, live broadcasts are not the only way of capitalising on the Messi boom.
"... if you're a fan of the MLS, and you live in the UK, for instance, it's obviously harder through time zones to access the live events," Joyce said.
"But putting together specific digital content around Messi will be a way to engage with those users when it's not subject to time zones."
(Reporting by Steve Keating, writing by Aadi Nair; Editing by Ken Ferris)
((Angelica.Medina@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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In a surprising turnaround to his career, after winning the World Cup with Argentina and a failed negotiation to return to Barcelona, the 36-year-old joined Inter Miami last month, taking a wave of devoted fans with him to the American East Coast. According to Google Trends data for the month of July, the announcement of Messi's signing caused a significant spike in searches for match dates and tickets to see the Argentine, with fans also looking to buy his official pink Inter Miami shirt. Football finance expert Joyce said Messi's move to Inter Miami was a massive boost for Adidas, adding: "Previously, he was playing for PSG (Paris St-Germain) and Barcelona, who have Nike as kit manufacturers.
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By Anita Kobylinska and Angelica Medina Aug 10 (Reuters) - Lionel Messi could significantly raise the profile of Major League Soccer (MLS) and the game as a whole in the United States, experts told Reuters, with the Argentine forward's move to Inter Miami drawing attention from across the globe. Football finance expert Joyce said Messi's move to Inter Miami was a massive boost for Adidas, adding: "Previously, he was playing for PSG (Paris St-Germain) and Barcelona, who have Nike as kit manufacturers. Asked if Messi's signing could expand MLS viewership outside the United States, Joyce said: "100%, it will.
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By Anita Kobylinska and Angelica Medina Aug 10 (Reuters) - Lionel Messi could significantly raise the profile of Major League Soccer (MLS) and the game as a whole in the United States, experts told Reuters, with the Argentine forward's move to Inter Miami drawing attention from across the globe. According to Google Trends data for the month of July, the announcement of Messi's signing caused a significant spike in searches for match dates and tickets to see the Argentine, with fans also looking to buy his official pink Inter Miami shirt. Football finance expert Joyce said Messi's move to Inter Miami was a massive boost for Adidas, adding: "Previously, he was playing for PSG (Paris St-Germain) and Barcelona, who have Nike as kit manufacturers.
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We are working as quickly as possible to make sure that every fan who wants a jersey can get one online or in one of our stores," an Adidas spokesperson told Reuters. Asked if Messi's signing could expand MLS viewership outside the United States, Joyce said: "100%, it will. "... if you're a fan of the MLS, and you live in the UK, for instance, it's obviously harder through time zones to access the live events," Joyce said.
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14358.0
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2023-08-10 00:00:00 UTC
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Down 10% YTD, is Warren Buffett's Top Energy Stock Worth Buying?
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AAPL
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https://www.nasdaq.com/articles/down-10-ytd-is-warren-buffetts-top-energy-stock-worth-buying
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nan
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Legendary investor Warren Buffett is known for making outsized bets on companies once he becomes convinced of their growth prospects. Famously, Buffett owned zero shares of Apple (AAPL) before 2016. However, since then, the ace investor has not only purchased shares of the tech giant, but Apple has quickly become his company Berkshire Hathaway's (BRK.A) biggest holding. Currently, the iPhone maker accounts for roughly 45% of Berkshire's portfolio, with an eye-watering value of $164 billion.
It's been a similar story for oil major Chevron Corporation (CVX) and its journey to the upper echelons of Buffett's portfolio. Berkshire owned no shares in the company before late 2020, but Chevron now ranks among the portfolio's top five holdings.
The billionaire's interest in Chevron is particularly notable now that the energy sector is starting to look bullish. Goldman Sachs recently revised its oil demand forecast higher, and supply cuts by Saudi Arabia and Russia could provide an underpinning of support for oil prices in the near term.
So, is now an opportune time for investors to bulk up on shares of a leading energy company like Chevron, or are there more exciting opportunities in the oil space? Let's take a look at what CVX has to offer.
Buffett's Big Moves on Chevron
The Oracle of Omaha started building positions in Chevron stock in the fourth quarter of 2020. At the end of 2020, Buffett's Berkshire purchased 48.5 million shares of the company, representing a 2.5% stake. That initial stake was trimmed during the first half of 2021, but the buying spree resumed during the second half of that year, as Berkshire bought about 46 million more shares in the company for a cumulative total of about $15.1 billion.
The buying continued through the final innings of 2022, when Buffett started to trim his stake during the fourth quarter - coincident with a downturn in oil demand. The average closing price for CVX over this period was $174.51, compared to $80.96 when Buffett first started to build his position.
In the first quarter of 2023, Buffett sold more Chevron stock worth $6 billion, representing about 45% of its total stock sales of $13 billion in the first quarter. The sale took Berkshire’s position in the company to around 163 million shares (worth about $22 billion) from roughly 200 million shares at the start of the year.
The selling continued in the second quarter, as Buffett further reduced its stake in Chevron to less than $20 billion ($19.4 billion) at the end of the June quarter. There are currently 132 million Chevron shares worth over $21 billion in Berkshire's portfolio, accounting for 5.9% of its holdings.
Weak Financials
Buffett's CVX selling this year has coincided with a downturn in the share price. In 2023 so far, Chevron stock is down 10% to underperform the broader equity markets.
www.barchart.com
The company's second-quarter results were equally uninspiring. Chevron's revenues dipped by 29% from the previous year to $48.9 billion. Although EPS of $3.08 came in above the consensus estimate of $2.97, earnings were down by an even sharper 47.1% year-over-year. The company cited lower commodity prices, lower upstream realizations, and lower margins on refined product sales as reasons behind the downturn in both revenues and earnings.
Looking back, revenues have continued to slide from the third quarter of 2022, even though earnings have topped estimates on four occasions in the past five quarters.
Moreover, free cash flows also slid to $2.5 billion at the end of the June quarter, down from $10.6 billion in the previous year and $4.2 billion in the previous quarter. Additionally, although total debt eased in absolute terms to $21.5 billion, compared to $23.3 billion at the start of the year, the net debt ratio for Chevron worsened to 7% from 3.3% in the same period.
However, net oil-equivalent production grew by 2% from the previous year to 2,959 MBOED (MBOED stands for thousand barrels of oil equivalent per day). The company attributed the rise in production to the record output in the Permian Basin of 772,000 barrels of oil equivalent per day.
Recent Operational Highlights
In May, the company announced the $7.6 billion acquisition of shale producer PDC Energy, which is expected to boost its presence in the US. The company revealed that the acquisition will be free cash flow accretive and expects to increase its output from the DJ Basin by 260,000 barrels/day.
Additionally, Chevron's Gorgon Stage 2 development in Australia achieved its first natural gas production, allowing it to gain a stronger foothold in the Asia-Pacific region.
However, there were no other noteworthy operational developments announced with Chevron's latest quarterly results.
Is Chevron Fairly Priced?
Chevron looks reasonably priced at current levels when compared to its peers on some key valuation metrics, like price-to-earnings (p/e), price-to-sales (p/s), and price-to-cash flow (p/cf).
While CVX is trading at a forward p/e of 12.53, its peers like Shell (SHEL) (12.58) and Exxon Mobil (XOM) (12.05) are trading at comparable levels - although BP's (BP) forward p/e is much lower at 6.10.
When it comes to the p/s ratio, Chevron's is at 1.41, roughly in line with XOM at 1.21, but higher than both SHEL (0.59) and BP (0.49).
However, when it comes to the p/cf ratio, Chevron starts to look a little richer. Chevron is currently trading at a p/cf of 7.22, which is higher than SHEL (3.15), XOM (6.36) and BP (2.93).
Analyst Estimates
In terms of earnings growth, analysts are not too upbeat about Chevron. The consensus is calling for an EPS decline of 40.5%, 16.1%, and 30.2% for the current quarter, next quarter, and FY 23, respectively.
www.barchart.com
However, analysts are cautiously optimistic about Chevron stock as a whole, with an overall rating of “Moderate Buy” on the stock and a mean target price of $188.28 - indicating an upside potential of about 16.8% from current levels. Out of 18 analysts covering the stock, 8 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, and 8 have a “Hold” rating.
www.barchart.com
Final Takeaway
With operations in more than 180 countries, Chevron, founded in 1879, remains one of the largest players in the oil & gas field in the country. Chevron stock also offers an attractive dividend yield of 3.78% - a healthy payout that exceeds that of its rival Exxon, and may have helped to attract Buffett to the shares in the first place.
However, the consistent decline in revenue and profits over the recent quarters, coupled with the company's vulnerability to geopolitical developments and lack of any exciting operational developments in the latest quarter, makes me a skeptic on Chevron stock at current levels - just as Warren Buffett is lightening his stake.
In fact, the legendary investor is loading up on rival oil company Occidental Petroleum (OXY), which is now the No. 6 overall holding for Berkshire, right behind Chevron. This may indicate the ace investor is not looking to trim exposure to the oil and gas sector overall, but Chevron in particular.
Consequently, despite its fair valuations, healthy yield, and strong overall analyst ratings, I would suggest investors avoid loading up on Chevron stock at the current juncture.
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Famously, Buffett owned zero shares of Apple (AAPL) before 2016. Recent Operational Highlights In May, the company announced the $7.6 billion acquisition of shale producer PDC Energy, which is expected to boost its presence in the US. Additionally, Chevron's Gorgon Stage 2 development in Australia achieved its first natural gas production, allowing it to gain a stronger foothold in the Asia-Pacific region.
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Famously, Buffett owned zero shares of Apple (AAPL) before 2016. The buying continued through the final innings of 2022, when Buffett started to trim his stake during the fourth quarter - coincident with a downturn in oil demand. The sale took Berkshire’s position in the company to around 163 million shares (worth about $22 billion) from roughly 200 million shares at the start of the year.
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Famously, Buffett owned zero shares of Apple (AAPL) before 2016. In the first quarter of 2023, Buffett sold more Chevron stock worth $6 billion, representing about 45% of its total stock sales of $13 billion in the first quarter. The selling continued in the second quarter, as Buffett further reduced its stake in Chevron to less than $20 billion ($19.4 billion) at the end of the June quarter.
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Famously, Buffett owned zero shares of Apple (AAPL) before 2016. The buying continued through the final innings of 2022, when Buffett started to trim his stake during the fourth quarter - coincident with a downturn in oil demand. In the first quarter of 2023, Buffett sold more Chevron stock worth $6 billion, representing about 45% of its total stock sales of $13 billion in the first quarter.
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14359.0
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2023-08-10 00:00:00 UTC
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US STOCKS-Wall St rallies as July inflation data fuels Fed rate pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-july-inflation-data-fuels-fed-rate-pause-hopes
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Disney climbs after posting upbeat Q3 earnings
Capri jumps as Tapestry to buy it in $8.5 bln deal
July annual CPI at 3.2% vs estimates of 3.3%
Weekly jobless claims jump more than expected
Indexes up: Dow 0.95%, S&P 0.91%, Nasdaq 1.05%
Updated at 09:40 a.m. ET/1340 GMT
By Bansari Mayur Kamdar and Johann M Cherian
Aug 10 (Reuters) - Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month.
The consumer price index (CPI) for July climbed 3.2% on an annual basis, less than the 3.3% rise expected by economists.
Excluding volatile components such as food and energy, prices rose 4.7% in the 12 months to July compared with a 4.8% rise seen in the month before.
Separately, the number of Americans filing new claims for unemployment benefits rose by 248,000 last week, more than estimates of 230,000 additions.
Traders remain optimistic the Fed has completed its aggressive interest rate hike campaign, with bets on another rate hike in the remaining months of the year staying below the 30% mark after the CPI data. IRPR
"U.S. inflation came in broadly as expected in July, although the year-on-year figure is a little lower than anticipated," said Neil Birrell, chief investment officer at Premier Miton Investors.
"The August number will be out before the Fed next meets in mid-September, but there is nothing in this release to suggest that they will do anything other than keep interest rates exactly where they are."
Taking some pressure off rate-sensitive growth names, yield on the benchmark 10-year U.S. treasury note US10YT=RR, fell to 3.98% in choppy trading after the data. US/
Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 0.9% and 1.3%.
Later in the day, investors will also parse comments from several Fed officials including Philadelphia President Patrick Harker, a voting member this year.
The tech-heavy Nasdaq led Wall Street lower on Wednesday, with heavyweight Nvidia NVDA.O falling 4.7%, followed closely by the other "Magnificent Seven" megacap stocks that drove this year's stock rally.
Nasdaq has gained about 32.5% so far this year on hopes of a soft landing for the U.S. economy in the face of the Fed's aggressive interest rate hikes, and optimism over the scope of artificial intelligence.
At 09:40 a.m. ET, the Dow Jones Industrial Average .DJI was up 335.30 points, or 0.95%, at 35,458.66, the S&P 500 .SPX was up 40.72 points, or 0.91%, at 4,508.43, and the Nasdaq Composite .IXIC was up 143.56 points, or 1.05%, at 13,865.58.
All of the 11 major S&P 500 sectors advanced, with the communication services sector .SPLRCL housing Meta Platforms META.O and Alphabet GOOGL.O leading gains, up 1.2%.
On the earnings front, Walt DisneyDIS.N rose 1.0% after beating Wall Street estimates for quarterly adjusted profit per share.
CapriCPRI.N surged 56.8% after larger rival Tapestry TPR.N said it would buy the Michael Kors parent in an $8.5 billion deal. Tapestry's shares fell 9.1%.
U.S.-listed shares of AlibabaBABA.N added 5.5% after the e-commerce conglomerate reported upbeat quarterly sales on the back of improved consumer sentiment.
Heightening trade worries, President Joe Biden on Wednesday signed an executive order that prohibits some new U.S. investment in China in sensitive technologies such as computer chips and requires government notification for investment in other tech sectors.
Advancing issues outnumbered decliners by a 4.18-to-1 ratio on the NYSE and a 2.18-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and one new low, while the Nasdaq recorded 25 new highs and 38 new lows.
Megacap tech and growth soar in 2023 https://tmsnrt.rs/451i7uV
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Bansari Mayur Kamdar and Johann M Cherian, additional reporting by Shashwat Chauhan and Shubham Batra in Bengaluru; Editing by Vinay Dwivedi)
((BansariMayur.Kamdar@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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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 0.9% and 1.3%. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims jump more than expected Indexes up: Dow 0.95%, S&P 0.91%, Nasdaq 1.05% Updated at 09:40 a.m. ET/1340 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. IRPR "U.S. inflation came in broadly as expected in July, although the year-on-year figure is a little lower than anticipated," said Neil Birrell, chief investment officer at Premier Miton Investors.
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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 0.9% and 1.3%. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims jump more than expected Indexes up: Dow 0.95%, S&P 0.91%, Nasdaq 1.05% Updated at 09:40 a.m. ET/1340 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. Nasdaq has gained about 32.5% so far this year on hopes of a soft landing for the U.S. economy in the face of the Fed's aggressive interest rate hikes, and optimism over the scope of artificial intelligence.
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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 0.9% and 1.3%. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims jump more than expected Indexes up: Dow 0.95%, S&P 0.91%, Nasdaq 1.05% Updated at 09:40 a.m. ET/1340 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. Traders remain optimistic the Fed has completed its aggressive interest rate hike campaign, with bets on another rate hike in the remaining months of the year staying below the 30% mark after the CPI data.
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US/ Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 0.9% and 1.3%. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims jump more than expected Indexes up: Dow 0.95%, S&P 0.91%, Nasdaq 1.05% Updated at 09:40 a.m. ET/1340 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street rose on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. Tapestry's shares fell 9.1%.
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14360.0
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2023-08-10 00:00:00 UTC
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After Hours Most Active for Aug 10, 2023 : JNJ, AMZN, KVUE, PFE, MSFT, BMY, PR, DIS, SABR, WBD, AAPL, QQQ
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-10-2023-%3A-jnj-amzn-kvue-pfe-msft-bmy-pr-dis-sabr-wbd-aapl
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 2.56 to 15,131.4. The total After hours volume is currently 86,576,845 shares traded.
The following are the most active stocks for the after hours session:
Johnson & Johnson (JNJ) is -0.03 at $172.14, with 3,854,468 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $2.75. JNJ's current last sale is 93.55% of the target price of $184.
Amazon.com, Inc. (AMZN) is +0.1 at $138.66, with 2,722,421 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.56. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Kenvue Inc. (KVUE) is unchanged at $23.37, with 2,533,585 shares traded. KVUE's current last sale is 83.46% of the target price of $28.
Pfizer, Inc. (PFE) is +0.01 at $35.73, with 2,266,234 shares traded. PFE's current last sale is 80.29% of the target price of $44.5.
Microsoft Corporation (MSFT) is +0.09 at $323.02, with 2,099,626 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $2.63. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Bristol-Myers Squibb Company (BMY) is unchanged at $61.29, with 2,086,282 shares traded. BMY's current last sale is 81.18% of the target price of $75.5.
Permian Resources Corporation (PR) is unchanged at $12.16, with 1,763,865 shares traded. As reported by Zacks, the current mean recommendation for PR is in the "buy range".
Walt Disney Company (The) (DIS) is -0.07 at $91.69, with 1,652,995 shares traded. As reported by Zacks, the current mean recommendation for DIS is in the "buy range".
Sabre Corporation (SABR) is unchanged at $5.44, with 1,470,012 shares traded. As reported in the last short interest update the days to cover for SABR is 8.422786; this calculation is based on the average trading volume of the stock.
Warner Bros. Discovery, Inc. (WBD) is unchanged at $14.12, with 1,371,775 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $-0.02. As reported by Zacks, the current mean recommendation for WBD is in the "buy range".
Apple Inc. (AAPL) is unchanged at $177.97, with 1,280,449 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.37. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.3 at $368.89, with 1,207,899 shares traded. This represents a 45.08% increase from its 52 Week Low.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is unchanged at $177.97, with 1,280,449 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024.
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Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. Apple Inc. (AAPL) is unchanged at $177.97, with 1,280,449 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. Apple Inc. (AAPL) is unchanged at $177.97, with 1,280,449 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. Apple Inc. (AAPL) is unchanged at $177.97, with 1,280,449 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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14361.0
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2023-08-10 00:00:00 UTC
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Should Vanguard Mega Cap Growth ETF (MGK) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-growth-etf-mgk-be-on-your-investing-radar-8
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nan
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Mega Cap Growth ETF (MGK), a passively managed exchange traded fund launched on 12/17/2007.
The fund is sponsored by Vanguard. It has amassed assets over $13.92 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to 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.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.53%.
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 45.40% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.98% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 59.88% of total assets under management.
Performance and Risk
MGK seeks to match the performance of the CRSP U.S. Mega Cap Growth Index before fees and expenses. The CRSP US Mega Cap Growth Index is a float-adjusted, market-capitalization-weighted index designed to measure equity market performance of mega-capitalization growth stocks in the United States.
The ETF has added roughly 36.08% so far this year and was up about 13.46% in the last one year (as of 08/10/2023). In the past 52-week period, it has traded between $168.21 and $243.78.
The ETF has a beta of 1.11 and standard deviation of 24.43% for the trailing three-year period, making it a medium risk choice in the space. With about 96 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, MGK is a great 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 $91.15 billion in assets, Invesco QQQ has $202.76 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.98% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $13.92 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.98% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Mega Cap Growth ETF (MGK), a passively managed exchange traded fund launched on 12/17/2007.
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Click to get this free report Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.98% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Mega Cap Growth ETF (MGK), a passively managed exchange traded fund launched on 12/17/2007.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.98% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Mega Cap Growth ETF (MGK), a passively managed exchange traded fund launched on 12/17/2007.
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14362.0
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2023-08-10 00:00:00 UTC
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Avert Earnings Disaster With These 5 Methods
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AAPL
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https://www.nasdaq.com/articles/avert-earnings-disaster-with-these-5-methods
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nan
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With the tech-heavy Nasdaq 100 ETF (QQQ) up a whopping 40% year-to-date, tech stocks are off to one of their strongest starts ever. However, this quarter, there were several “land mines” to dodge post-earnings. For example, Super Micro Computer (SMCI), one of the top performers in 2023, dumped 23.39% in a single session after reporting earnings earlier in the week.
Image Source: TradingView
Because earnings gap downs occur overnight, are binary events, and are largely unpredictable, unless you don’t play them entirely, they are impossible to avoid. However, with 5 simple steps, investors can limit risk during EPS season:
Traffic in Liquid Stocks
Though Super Micro Computer (SMCI) is reasonably liquid (market-cap of (~$15 billion), investors should allocate most of their capital to mega-cap stocks. For example, Apple (AAPL) recently announced lackluster earnings, but the stock fell less than 5%. Mega-cap companies like AAPL have the support of institutions. Most of your capital should be allocated to mega-cap, stable stock stocks.
Image Source: Zacks Investment Research
Avoid Chasing Extended Stocks
Even the strongest stocks revert to their 50-day moving averages. Upstart Holdings (UPST) is a recent example. UPST shares were extended a breathtaking 80% above their 50-day moving average. The result? Chasers got crushed. UPST plunged 50% over the past two weeks. The further the stock is stretched from the 50-day moving average, the more violent the pullback is likely to be. Remember, the equities market is one of the few mediums where people get more excited when something increases in price, don’t chase!
Image Source: TradingView
Hold a Cushion
Another method of avoiding disaster is to pick and choose when you hold into an earnings report. You can create a rule such as “I must have a 10% cushion into EPS”. While such a rule does not guarantee you will avert disaster, you have essentially “earned the right to hold”. For example, if the stock gaps down 20%, and you have a 10% cushion into EPS, you’ve only taken a 10% hit to your initial equity. Most brokers give you the ability to find the implied options move. “Implied options move” refers to the anticipated price change of an underlying asset, as suggested by the movement in its associated options market.
Position Size Properly
Because earnings reactions occur in afterhours trading (and stop-losses won’t work), for common stock, the only true means of risk management is proper position sizing. Most amateur investors have position sizes that are far too heavy.For example, if you have a 50% position (% of assets in the position) and it gaps down 50%, you’ve just lost 25% of your account. Outside of position sizing, options are the only way to fully cap losses. For instance, if you have $3k worth of calls into a report, regardless of the earnings reaction, you cannot lose more than that amount. However, beware that one of the downsides of directional options trading is that you must have both your timing and direction correct.
Market Direction
The market direction is the equivalent of an underlying current in a body of water. To get the best performance, ensure that the market is in a bullish phase.While it depends on your time frame, an easy way to determine the market direction is to look at where the price is in relation to moving averages. I like to use a 50-day moving average for the mid-term trend and a 200-day moving average for the longer-term trend. Earlier today, I wrote a piece about why the market may be ready to head higher in the medium term.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
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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
Apple Inc. (AAPL) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
Upstart Holdings, Inc. (UPST) : 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 example, Apple (AAPL) recently announced lackluster earnings, but the stock fell less than 5%. Mega-cap companies like AAPL have the support of institutions. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : 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 Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report To read this article on Zacks.com click here. For example, Apple (AAPL) recently announced lackluster earnings, but the stock fell less than 5%. Mega-cap companies like AAPL have the support of institutions.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report To read this article on Zacks.com click here. For example, Apple (AAPL) recently announced lackluster earnings, but the stock fell less than 5%. Mega-cap companies like AAPL have the support of institutions.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report To read this article on Zacks.com click here. For example, Apple (AAPL) recently announced lackluster earnings, but the stock fell less than 5%. Mega-cap companies like AAPL have the support of institutions.
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14363.0
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2023-08-10 00:00:00 UTC
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1 "Magnificent Seven" Stock to Buy Hand Over Fist in August and 1 to Avoid Like the Plague
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AAPL
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https://www.nasdaq.com/articles/1-magnificent-seven-stock-to-buy-hand-over-fist-in-august-and-1-to-avoid-like-the-plague
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Who needs an amusement park when you have Wall Street? Over the trailing-two-year period, investors have witnessed the major stock indexes surge to new highs, plummet into their second bear market in as many years, and now rally into what some investors would deem is a new bull market.
When volatility picks up, investors have a tendency to gravitate to trusted companies that have a history of outperforming the broad-market indexes. In 2023, it's been the "magnificent seven" that investors have flocked to.
Image source: Getty Images.
The magnificent seven is comprised of:
Apple (NASDAQ: AAPL)
Microsoft (NASDAQ: MSFT)
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Amazon (NASDAQ: AMZN)
Nvidia (NASDAQ: NVDA)
Tesla (NASDAQ: TSLA)
Meta Platforms (NASDAQ: META)
What makes these seven companies so popular with investors is that they offer sustained and/or virtually impenetrable moats within their respective industries:
Apple consistently accounts for around half of all U.S. smartphone market share.
Microsoft's Windows operating system remains globally dominant on desktops, while Azure is the world's No. 2 cloud infrastructure service provider by market share.
Alphabet's Google accounts for 92% of global internet search share, as of July 2023.
Amazon's online marketplace brings in roughly 40% of U.S. online retail sales, while Amazon Web Services is the world's leading cloud infrastructure service provider.
Nvidia controls up to 90% of artificial intelligence (AI)-driven graphics processing units deployed in high-compute data centers.
Tesla is the only pure-play electric-vehicle (EV) manufacturer that's profitable on a recurring basis.
Meta Platforms' four key social media sites (Facebook, Instagram, WhatsApp, and Facebook Messenger) attracted nearly 3.9 billion monthly active users in the June-ended quarter.
AAPL data by YCharts.
To boot, these seven stocks have absolutely run circles around the benchmark S&P 500 since the year began. Through Aug. 4, 2023, Nvidia, Meta, and Tesla were higher by 206%, 158%, and 106%, respectively year to date, while the remaining four magnificent seven stocks were higher by between 37% and 66%.
However, not all magnificent seven stocks are cut from the same cloth. Though they've outperformed through the first seven months and change of 2023, one still stands out as an exceptional value while another has had its growth engine completely stall out.
The magnificent seven stock to buy hand over fist in August: Alphabet
Despite bouncing back strongly from its 2022 bear market lows, Alphabet is the magnificent seven stock that looks like a phenomenal buy in August. Alphabet is the parent company of Google, streaming platform YouTube, and autonomous driving company Waymo.
As I've pointed out many times before and will continue to note in the future, even the best stocks have challenges they're contending with -- and Alphabet is no different. For this company, concerns about economic weakness are front and center.
During the June-ended quarter, Alphabet generated $58.1 billion (77.9% of total sales) of its revenue from advertising on Google and YouTube. Advertisers usually pare back their spending at the first hint of economic weakness. At the moment, an assortment of economic data points and predictive tools suggest a U.S. recession is likely. Should that happen, it wouldn't be a surprise to see the company's ad growth slow or stall out completely.
But there's a big difference between recessions and economic expansions that investors would be wise to recognize. Whereas every recession after World War II has been short-lived, virtually every period of expansion has been measured in multiple years. For Alphabet, it means strong ad-pricing power will be on its side more often than not.
For the moment, Google is the company's primary source of operating cash flow. Google has sustained at least a 90% monthly share of worldwide internet search since April 2015, according to data provided by GlobalStats. With a roughly 90 percentage-point lead over its next-closest competitor, Google should have no trouble taking advantage of domestic and international economic growth over the long run.
However, it's the company's faster-growing ancillary ventures that really have the attention of Wall Street and investors. For instance, Google Cloud recently reported its second consecutive quarter with an operating profit.
Google Cloud accounted for 9% of worldwide cloud infrastructure service spending in the first quarter, which places it behind only Amazon and Microsoft. Since enterprise cloud spending is still in its very early stages, this segment can be a source of serious cash-flow creation by the second half of the decade.
There's also YouTube, which is the second-most-visited social media site behind only Facebook. In a span of two years, the number of Shorts -- short-form videos typically lasting less than 60 seconds -- viewed daily on YouTube has surged from 6.5 billion to more than 50 billion. This is an incredible monetization opportunity for the company.
Over the trailing five years, Alphabet's shares have traded at an average multiple to cash flow of 18.2. Investors can buy in right now for less than 14 times the consensus cash flow per share in 2024. This makes Alphabet stock one heck of a value that can confidently be purchased hand over fist in August.
Image source: Apple.
The magnificent seven stock to avoid like the plague in August: Apple
Just because the magnificent seven stocks have outperformed thus far in 2023 doesn't make them all worth buying. The perfect case in point is tech stock Apple, which can be avoided like the plague by investors.
Just as the best stocks have headwinds to contend with, even stocks to avoid have potential catalysts. Apple is certainly not short on competitive edges and catalysts. Aside from being the leading smartphone company in the U.S., it has an exceptionally loyal customer base and one of the best-recognized brands in the world.
What's more, Apple is in the process of transforming itself into a platforms company under the watchful eye of CEO Tim Cook. Services revenue continues to hit new all-time highs. More importantly, subscriptions should lift the company's operating margin over the long run, as well as smooth out the sales fluctuations often observed during iPhone replacement cycles.
Even Apple's capital-return program is a source of optimism. The company has repurchased in the neighborhood of $600 billion worth of its common stock since commencing a buyback program in 2013.
But this is where the good news ends for Wall Street's most valuable company by market cap.
The biggest issue for Apple is that its growth engine has completely stalled out. Apple's fiscal third-quarter operating results (Apple's fiscal year ends in late September) showed a third consecutive quarter of declining year-over-year sales. Wall Street's current consensus calls for full-year sales and profits to drop by a low-single-digit percentage in fiscal 2023.
What's problematic is that Apple's stock has surged 40% this year with its sales and profits going backwards. What makes this move higher even more egregious is that Apple has had historically high inflation as a tailwind, and this still hasn't helped it grow its sales.
To add, some of Apple's innovations aren't hitting home like we're used to seeing. Initial reports had suggested that Apple would ramp up production of iPhone 14 following its release. But when demand failed to materialize, it halted efforts to scale production.
We're now seeing something similar with the recently introduced virtual/augmented reality goggles, Vision Pro. While the company had envisioned bringing 1 million of the devices to market, reports now suggest the company is only targeting production of 400,000 units in the first year.
Lastly, Apple is anything but cheap. Even after the company's sell-off late last week, investors are paying nearly 28 times forward-year earnings and almost 23 times consensus cash flow to own shares of Apple. With the exception of the volatile pandemic years (2020-2021), this is the priciest Apple stock has been in a long time.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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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, 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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The magnificent seven is comprised of: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) What makes these seven companies so popular with investors is that they offer sustained and/or virtually impenetrable moats within their respective industries: Apple consistently accounts for around half of all U.S. smartphone market share. AAPL data by YCharts. With a roughly 90 percentage-point lead over its next-closest competitor, Google should have no trouble taking advantage of domestic and international economic growth over the long run.
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The magnificent seven is comprised of: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) What makes these seven companies so popular with investors is that they offer sustained and/or virtually impenetrable moats within their respective industries: Apple consistently accounts for around half of all U.S. smartphone market share. AAPL data by YCharts. Amazon's online marketplace brings in roughly 40% of U.S. online retail sales, while Amazon Web Services is the world's leading cloud infrastructure service provider.
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The magnificent seven is comprised of: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) What makes these seven companies so popular with investors is that they offer sustained and/or virtually impenetrable moats within their respective industries: Apple consistently accounts for around half of all U.S. smartphone market share. AAPL data by YCharts. The magnificent seven stock to buy hand over fist in August: Alphabet Despite bouncing back strongly from its 2022 bear market lows, Alphabet is the magnificent seven stock that looks like a phenomenal buy in August.
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The magnificent seven is comprised of: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) What makes these seven companies so popular with investors is that they offer sustained and/or virtually impenetrable moats within their respective industries: Apple consistently accounts for around half of all U.S. smartphone market share. AAPL data by YCharts. The magnificent seven stock to buy hand over fist in August: Alphabet Despite bouncing back strongly from its 2022 bear market lows, Alphabet is the magnificent seven stock that looks like a phenomenal buy in August.
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14364.0
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2023-08-10 00:00:00 UTC
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US STOCKS-Wall St eyes higher open as July inflation data fuels Fed rate pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-higher-open-as-july-inflation-data-fuels-fed-rate-pause-hopes
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Disney climbs after posting upbeat Q3 earnings
Capri jumps as Tapestry to buy it in $8.5 bln deal
July annual CPI at 3.2% vs estimates of 3.3%
Weekly jobless claims jump more than expected
Futures up: Dow 0.39%, S&P 0.45%, Nasdaq 0.76%
Updated at 08:47 a.m. ET/1247 GMT
By Bansari Mayur Kamdar and Johann M Cherian
Aug 10 (Reuters) - Wall Street was set to open higher on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month.
The consumer price index (CPI) for July climbed 3.2% on an annual basis, less than the 3.3% rise expected by economists.
Excluding volatile components such as food and energy, prices rose 4.7% in the 12 months to July compared with a 4.8% rise seen in the month before.
Separately, the number of Americans filing new claims for unemployment benefits rose by 248,000 last week, more than estimates of 230,000 additions.
Traders remain optimistic the Fed has completed its aggressive interest rate hike campaign, with bets on another rate hike in the remaining months of the year staying below the 30% mark after the CPI data. IRPR
"It's of one of those numbers right where they expect it to be," said Joe Saluzzi, co-manager of trading at Themis Trading.
"The CPI is on the good path going down, overall, if I was the Federal Reserve then this is not a number that says I need to raise rates anymore."
Taking some pressure off rate-sensitive megacap names, yield on the 2-year U.S. treasury note US2YT=RR, that moves in line with interest rate expectations, slid after the data.
Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 0.6% to 1.1% before the bell.
Later in the day, investors will also parse comments from several Fed officials including Philadelphia President Patrick Harker, a voting member this year.
The tech-heavy Nasdaq led Wall Street lower on Wednesday, with heavyweight Nvidia NVDA.O falling 4.7%, followed closely by the other "Magnificent Seven" megacap stocks that drove this year's stock rally.
Nasdaq has gained about 31% this year on hopes of a soft landing for the U.S. economy in the face of the Fed's aggressive interest rate hikes and optimism over the scope of artificial intelligence.
At 08:47 a.m. ET, Dow e-minis 1YMcv1 were up 138 points, or 0.39%, S&P 500 e-minis EScv1 were up 20.25 points, or 0.45%, and Nasdaq 100 e-minis NQcv1 were up 115 points, or 0.76%.
On the earnings front, Walt DisneyDIS.N rose 1.9% after beating Wall Street estimates for quarterly adjusted profit per share.
CapriCPRI.N surged 57.4% after larger rival Tapestry TPR.N said it would buy the Michael Kors parent in an $8.5 billion deal. Tapestry fell 5.9% after the announcement.
U.S.-listed shares of AlibabaBABA.N added 3.6% after the e-commerce conglomerate reported upbeat quarterly sales on the back of improved consumer sentiment.
Heightening trade worries, President Joe Biden on Wednesday signed an executive order that prohibits some new U.S. investment in China in sensitive technologies such as computer chips and requires government notification for investment in other tech sectors.
Megacap tech and growth soar in 2023 https://tmsnrt.rs/451i7uV
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Bansari Mayur Kamdar and Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Vinay Dwivedi)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 0.6% to 1.1% before the bell. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims jump more than expected Futures up: Dow 0.39%, S&P 0.45%, Nasdaq 0.76% Updated at 08:47 a.m. ET/1247 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street was set to open higher on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. Taking some pressure off rate-sensitive megacap names, yield on the 2-year U.S. treasury note US2YT=RR, that moves in line with interest rate expectations, slid after the data.
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Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 0.6% to 1.1% before the bell. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims jump more than expected Futures up: Dow 0.39%, S&P 0.45%, Nasdaq 0.76% Updated at 08:47 a.m. ET/1247 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street was set to open higher on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. Nasdaq has gained about 31% this year on hopes of a soft landing for the U.S. economy in the face of the Fed's aggressive interest rate hikes and optimism over the scope of artificial intelligence.
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Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 0.6% to 1.1% before the bell. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims jump more than expected Futures up: Dow 0.39%, S&P 0.45%, Nasdaq 0.76% Updated at 08:47 a.m. ET/1247 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street was set to open higher on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. Traders remain optimistic the Fed has completed its aggressive interest rate hike campaign, with bets on another rate hike in the remaining months of the year staying below the 30% mark after the CPI data.
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Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O added between 0.6% to 1.1% before the bell. Disney climbs after posting upbeat Q3 earnings Capri jumps as Tapestry to buy it in $8.5 bln deal July annual CPI at 3.2% vs estimates of 3.3% Weekly jobless claims jump more than expected Futures up: Dow 0.39%, S&P 0.45%, Nasdaq 0.76% Updated at 08:47 a.m. ET/1247 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 10 (Reuters) - Wall Street was set to open higher on Thursday after milder-than-feared July consumer prices data fueled hopes the Federal Reserve could leave interest rates unchanged next month. On the earnings front, Walt DisneyDIS.N rose 1.9% after beating Wall Street estimates for quarterly adjusted profit per share.
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14365.0
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2023-08-10 00:00:00 UTC
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Better Buy: PayPal or Block?
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-paypal-or-block-0
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nan
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nan
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Investors continue to sour on fintech giant PayPal (NASDAQ: PYPL), and its stock is down 12% this year despite sustained growth and progress in cost cutting.
At the same time, competitor Block (NYSE: SQ), formerly Square, is demonstrating stronger growth but widening losses. As of the end of July, the shares were up as much as 28% on the year, but they have since plunged and now are little changed for the year.
Is the market getting something wrong? Let's see.
The case for PayPal: Bigger and leaner
PayPal is head and shoulders above its competition in digital payments, with $1.36 trillion in 2022 total payment volume (TPV), 400 million consumer accounts, and 35 million merchant accounts. It has maintained its first-mover edge in this market, from when it was spun off by eBay as a separate payments company, by consistently upgrading its features and technology.
Revenue growth, which soared at the peak of pandemic, has decelerated since then, though. In the second quarter, revenue increased 7% over last year, and TPV grew 11% to $366 billion. Growing expenses as revenue slowed were weighing on the bottom line, but it made great progress in cost-cutting and improving profitability in the second quarter. Operating income increased 48% over last year, with earnings per share (EPS) swinging from a $0.29 loss last year to positive $0.92 this year.
There's been a lot of talk about competition in this field, starting with Block, but also newer entrants like Apple, which offers Apply Pay, and Alphabet, which offers Google Pay. But PayPal is still the company to beat. More competition, in my opinion, illustrates a growing and wide-open market, which is in PayPal's favor. So long as it's keeping up and innovating, it's well positioned from overall industry growth, despite any newcomers.
What to watch out for: It's losing active customers. Active customer count decreased from 435 million at the end of 2022 to 433 million last quarter and 431 in the second quarter. But is that the full picture? Management has said that this is part of its strategy to focus on the most active customers, who give more bang for the buck. That's reasonable, and it's part of a working plan. However, it's something to keep track of.
The case for Block: Highly innovative
Block captured investors' attention with its innovative business solutions, beginning with its payment card reader and now comprising a suite of advanced solutions to help small and medium-size businesses operate. It became more compelling with the advent of its Cash App business, which drew customers from PayPal's own peer-to-peer payment services like Venmo, with its easy-to-use interface that offers many features.
With Chief Executive Officer Jack Dorsey as its public face, Block became known as the newer, sleeker version of what PayPal was trying to be. It embraced cryptocurrency early on and focused on Bitcoin as a major growth element of its business, and its stock price skyrocketed before the pandemic.
It's working to expand the sellers business by offering more services in one place, including banking and debit cards. That's resulting in higher customer engagement and increasing revenue. Some of that is coming from a move toward midsize businesses, which are much more lucrative than smaller businesses.
Cash App is still the dominant growth segment, and revenue increased 37% over last year. It's configured to grow as a community, and larger networks within the system have higher transactions, leading to a positive cycle. Cash App offers many services, and these work together to create more value as customers who use more services engage more and produce greater revenue.
But Block has also fallen out of favor with investors, for several reasons. One is cryptocurrency itself, which no longer is seen as the "next big thing," with regulators shutting down some platforms and many tokens not living up to their hype. It has also struggled to post profits as expenses pile up, and the sellers business is posting low growth levels.
Wall Street wasn't impressed with Block's second-quarter earnings, even though it beat forecasts on both the top and bottom lines. It's growing faster than PayPal, with total revenue up 26% over last year in the second quarter. Without Bitcoin, which has rebounded from its lows, revenue was up 20%, so the company still has some dependence on cryptocurrency. This quarter the company's crypto holdings were beneficial, but it isn't always the case.
Overall, it has posted net losses for the past seven quarters after reporting positive net income for a few quarters at the height of the pandemic.
The verdict
It's probably obvious at this point that I see a clear edge for PayPal. It's in a great place both in terms of its own business, with new features and services as well as improved cost efficiency, and in terms of overall industry growth. I think Block may prove itself over time, but it already passed its high-growth stage and delivered big gains for investors without reaching the scale it needs to be sustainably profitable. I don't see why it's worth the risk when there are more dependable stocks on the market, or riskier stocks that have a clearer path toward profitability.
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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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Investors continue to sour on fintech giant PayPal (NASDAQ: PYPL), and its stock is down 12% this year despite sustained growth and progress in cost cutting. It became more compelling with the advent of its Cash App business, which drew customers from PayPal's own peer-to-peer payment services like Venmo, with its easy-to-use interface that offers many features. I think Block may prove itself over time, but it already passed its high-growth stage and delivered big gains for investors without reaching the scale it needs to be sustainably profitable.
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The case for PayPal: Bigger and leaner PayPal is head and shoulders above its competition in digital payments, with $1.36 trillion in 2022 total payment volume (TPV), 400 million consumer accounts, and 35 million merchant accounts. The case for Block: Highly innovative Block captured investors' attention with its innovative business solutions, beginning with its payment card reader and now comprising a suite of advanced solutions to help small and medium-size businesses operate. It's in a great place both in terms of its own business, with new features and services as well as improved cost efficiency, and in terms of overall industry growth.
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The case for PayPal: Bigger and leaner PayPal is head and shoulders above its competition in digital payments, with $1.36 trillion in 2022 total payment volume (TPV), 400 million consumer accounts, and 35 million merchant accounts. The case for Block: Highly innovative Block captured investors' attention with its innovative business solutions, beginning with its payment card reader and now comprising a suite of advanced solutions to help small and medium-size businesses operate. It became more compelling with the advent of its Cash App business, which drew customers from PayPal's own peer-to-peer payment services like Venmo, with its easy-to-use interface that offers many features.
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Active customer count decreased from 435 million at the end of 2022 to 433 million last quarter and 431 in the second quarter. Cash App is still the dominant growth segment, and revenue increased 37% over last year. It's growing faster than PayPal, with total revenue up 26% over last year in the second quarter.
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14366.0
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2023-08-10 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-59
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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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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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14367.0
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2023-08-10 00:00:00 UTC
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Apple Stock: Buy the Dip?
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-buy-the-dip
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nan
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nan
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Shares of Apple (NASDAQ: AAPL) have pulled back significantly since the company's earnings report earlier this month. As of this writing, the stock has fallen a total of about 7% since the quarterly update on Aug. 3.
This decline comes even though Apple returned to earnings growth during the quarter. Is this pullback a red flag or a buying opportunity?
Here's a look at why Apple's earnings report may be better than it appears on the surface, and why the decline in the company's stock price may, indeed, represent a good buying opportunity.
Don't overlook this key metric
On the surface, Apple's fiscal third-quarter earnings report was solid. Revenue fell year over year to $81.8 billion. But the 1% year-over-year decline was smaller than the decline the company saw in the previous quarter.
Further, this revenue beat analysts' average forecast for revenue of about $81.6 billion. Even better, Apple's earnings per share rose 5% year over year -- a substantial improvement over the tech company's flat growth last quarter and the 5% decline the company posted in the first quarter of fiscal 2023.
Still, it would be tough to call these results good. Solid is a better description -- that is until you adjust Apple's revenue for the significant currency headwind the company faced during the quarter. The company's revenue, adjusted to exclude foreign-exchange headwinds, is the metric investors should be careful not to overlook.
Measured this way, Apple's revenue increased 3% year over year. Pulling this off during such a tough macroeconomic environment for discretionary spending highlights the resiliency of Apple's products and services with consumers.
Even though investors should look for further improvement in Apple's revenue trends, they're good in light of the macroeconomic backdrop -- particularly when adjusted to exclude currency headwinds.
Don't underestimate this growth driver
At some point, Apple's revenue trends will have to return to robust growth rates in the mid-to-high single digits to continue justifying the stock's current valuation of about 30 times earnings. But investors might want to consider buying the stock before this occurs instead of waiting for it to happen.
By the time Apple returns to meaningful growth rates, shares could have already rebounded from this pullback. With this in mind, it's worth assessing what catalysts Apple may have under the hood that could help push growth higher over time.
The key to Apple's eventual return to top-line growth may be services. Sure, Apple's difficult-to-predict product segment, which is heavily driven by the iPhone, could easily return to sales growth, too. But the segment's growth rates are volatile and difficult to predict. Services, on the other hand, is a more predictable catalyst for Apple.
This segment, which notably has a much higher gross profit margin than Apple's product segment, generally grows faster than product revenue. This was the case in fiscal Q3 when revenue increased 5% year over year and even faster when adjusted for foreign exchange.
This faster-growing segment is already a significant portion of Apple's business, accounting for over a fifth of the company's fiscal third-quarter revenue. But it's likely to become an even bigger revenue and profit driver over time. Therefore, it will likely have an increasingly greater positive impact on Apple's business and its consolidated growth rates over the long haul.
With an installed base of over 2 billion active Apple devices -- an installed base that management said in the company's fiscal third-quarterearnings call"continues to grow at a nice pace" -- Apple has a huge addressable market to tap into to continue growing its services business as it improves its existing services, benefits from growth in third-party services, and rolls out new native services over time.
Sure, no stock is without risk. Additionally, investors should do their own due diligence before they invest in any stock. It's also worth noting that it's impossible to know where the bottom is in any pullback.
But given Apple's loyal customer base and its long history of growing earnings rapidly, this pullback may be a good time for investors to consider adding to their positions. Of course, investors should keep the position small, given the stock's premium valuation and the overall riskiness involved with rapidly changing technology companies.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. 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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Shares of Apple (NASDAQ: AAPL) have pulled back significantly since the company's earnings report earlier this month. Here's a look at why Apple's earnings report may be better than it appears on the surface, and why the decline in the company's stock price may, indeed, represent a good buying opportunity. Even though investors should look for further improvement in Apple's revenue trends, they're good in light of the macroeconomic backdrop -- particularly when adjusted to exclude currency headwinds.
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Shares of Apple (NASDAQ: AAPL) have pulled back significantly since the company's earnings report earlier this month. Don't overlook this key metric On the surface, Apple's fiscal third-quarter earnings report was solid. Even better, Apple's earnings per share rose 5% year over year -- a substantial improvement over the tech company's flat growth last quarter and the 5% decline the company posted in the first quarter of fiscal 2023.
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Shares of Apple (NASDAQ: AAPL) have pulled back significantly since the company's earnings report earlier this month. Even better, Apple's earnings per share rose 5% year over year -- a substantial improvement over the tech company's flat growth last quarter and the 5% decline the company posted in the first quarter of fiscal 2023. Don't underestimate this growth driver At some point, Apple's revenue trends will have to return to robust growth rates in the mid-to-high single digits to continue justifying the stock's current valuation of about 30 times earnings.
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Shares of Apple (NASDAQ: AAPL) have pulled back significantly since the company's earnings report earlier this month. Here's a look at why Apple's earnings report may be better than it appears on the surface, and why the decline in the company's stock price may, indeed, represent a good buying opportunity. Even better, Apple's earnings per share rose 5% year over year -- a substantial improvement over the tech company's flat growth last quarter and the 5% decline the company posted in the first quarter of fiscal 2023.
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14368.0
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2023-08-10 00:00:00 UTC
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Apple Inc. (AAPL) Is a Trending Stock: Facts to Know Before Betting on It
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-6
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nan
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nan
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this maker of iPhones, iPads and other products have returned -6.1% over the past month versus the Zacks S&P 500 composite's +1.7% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has lost 6.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Apple is expected to post earnings of $1.37 per share for the current quarter, representing a year-over-year change of +6.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0%.
For the current fiscal year, the consensus earnings estimate of $6.05 points to a change of -1% from the prior year. Over the last 30 days, this estimate has changed +0.8%.
For the next fiscal year, the consensus earnings estimate of $6.59 indicates a change of +9% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $89.03 billion indicates a year-over-year change of -1.2%. For the current and next fiscal years, $382.69 billion and $405.07 billion estimates indicate -3% and +5.9% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $81.8 billion in the last reported quarter, representing a year-over-year change of -1.4%. EPS of $1.26 for the same period compares with $1.20 a year ago.
Compared to the Zacks Consensus Estimate of $81.36 billion, the reported revenues represent a surprise of +0.54%. The EPS surprise was +5.88%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. When earnings estimates for a company go up, the fair value for its stock goes up as well.
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14369.0
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2023-08-10 00:00:00 UTC
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Should SPDR Portfolio S&P 500 ETF (SPLG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-etf-splg-be-on-your-investing-radar-9
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the SPDR Portfolio S&P 500 ETF (SPLG) is a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $19.53 billion, making it one of the largest 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. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 0.02%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.50%.
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 to the Information Technology sector--about 27.90% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.50% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 30.21% of total assets under management.
Performance and Risk
SPLG seeks to match the performance of the Russell 1000 Index before fees and expenses. The S&P 500 Index is designed to measure the performance of the large-capitalization segment of the U.S. equity market.
The ETF has added roughly 17.40% so far this year and it's up approximately 9.98% in the last one year (as of 08/10/2023). In the past 52-week period, it has traded between $41.93 and $53.81.
The ETF has a beta of 1 and standard deviation of 18.03% for the trailing three-year period. With about 506 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 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, SPLG is a good 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 $347.95 billion in assets, SPDR S&P 500 ETF has $415.30 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.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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SPDR Portfolio S&P 500 ETF (SPLG): 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 7.50% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the SPDR Portfolio S&P 500 ETF (SPLG) is a passively managed exchange traded fund launched on 11/08/2005.
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Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 7.50% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the SPDR Portfolio S&P 500 ETF (SPLG) is a passively managed exchange traded fund launched on 11/08/2005.
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Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 7.50% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives SPDR Portfolio S&P 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 7.50% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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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14370.0
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2023-08-10 00:00:00 UTC
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Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-john-hancock-multifactor-large-cap-etf-jhml-a-strong-etf-right-now-7
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nan
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nan
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The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, 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?
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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by John Hancock, JHML has amassed assets over $776.43 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. Before fees and expenses, JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index.
The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for JHML are 0.29%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.42%.
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.
JHML's heaviest allocation is in the Information Technology sector, which is about 22.40% of the portfolio. Its Financials and Healthcare round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
Performance and Risk
Year-to-date, the John Hancock Multifactor Large Cap ETF return is roughly 13.16% so far, and was up about 8.49% over the last 12 months (as of 08/10/2023). JHML has traded between $45.43 and $56.65 in this past 52-week period.
The ETF has a beta of 1.01 and standard deviation of 17.64% for the trailing three-year period, making it a medium risk choice in the space. With about 776 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $347.95 billion in assets, SPDR S&P 500 ETF has $415.30 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Alternatives John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, 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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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, 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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14371.0
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2023-08-10 00:00:00 UTC
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Should You Invest in the iShares Expanded Tech Sector ETF (IGM)?
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-expanded-tech-sector-etf-igm-8
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Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the iShares Expanded Tech Sector ETF (IGM), a passively managed exchange traded fund launched on 03/13/2001.
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.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $3.15 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
Costs
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 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.42%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 79.40% of the portfolio, followed by Telecom.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 8.91% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 32.78% of total assets under management.
Performance and Risk
The ETF has gained about 39.10% so far this year and is up about 16.90% in the last one year (as of 08/10/2023). In that past 52-week period, it has traded between $266.47 and $412.97.
The ETF has a beta of 1.17 and standard deviation of 26.76% for the trailing three-year period, making it a medium risk choice in the space. With about 285 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech Sector ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGM is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $48.71 billion in assets, Vanguard Information Technology ETF has $50.83 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Expanded Tech Sector ETF (IGM): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 8.91% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 8.91% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 8.91% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 8.91% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. 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.
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14372.0
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2023-08-10 00:00:00 UTC
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US STOCKS-Futures rise in run-up to key inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-in-run-up-to-key-inflation-data
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.49%, S&P 0.54%, Nasdaq 0.62%
Aug 10 (Reuters) - U.S. stock index futures rose on Thursday ahead of key inflation data later in the day that could influence the Federal Reserve's monetary policy path.
The consumer price index (CPI) for July due at 8:30 a.m ET is expected to have increased 0.2%, after a similar rise in the previous month. In the 12 months through July, the CPI is estimated to have climbed 3.3%, after rising 3.0% in the previous month.
"Any bad surprise on the inflation front could revive the Federal Reserve hawks, but we are far from pricing another hike in September just yet," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Traders are optimistic the Fed has completed its aggressive interest rate hike campaign, giving 86.5% odds of no rate hike by the central bank in its September policy meeting, according to CME FedWatch Tool.
Initial jobless claims data is also on tap later in the day, along with remarks from Atlanta Fed President Raphael Bostic and Philadelphia President Patrick Harker.
The tech-heavy Nasdaq led Wall Street lower on Wednesday, with heavyweight Nvidia NVDA.O falling 4.7%, followed closely by the other "Magnificent Seven" megacap stocks that drove this year's stock rally.
Nasdaq has gained about 31% this year on hopes of a soft landing for the U.S. economy in the face of the Fed's aggressive interest rate hike cycle and optimism over the scope of artificial intelligence.
Rate-sensitive megacap stocks Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O rose between 0.6% and 0.8% in early trading before the bell.
At 05:27 a.m. ET, Dow e-minis 1YMcv1 were up 174 points, or 0.49%, S&P 500 e-minis EScv1 were up 24.25 points, or 0.54%, and Nasdaq 100 e-minis NQcv1 were up 94.75 points, or 0.62%.
On the earnings front, Walt DisneyDIS.N rose 1.6% in premarket trading after beating Wall Street estimates for adjusted earnings per share.
Capri Holdings shares CPRI.N jumped 30.1% after a report said that New York-based Tapestry TPR.N, the owner of Coach, was nearing a deal to buy the Michael Kors-owner.
In another notable development, President Joe Biden on Wednesday signed an executive order that will prohibit some new U.S. investment in China in sensitive technologies like computer chips and require government notification in other tech sectors.
Megacap tech and growth soar in 2023 https://tmsnrt.rs/451i7uV
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap stocks Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O rose between 0.6% and 0.8% in early trading before the bell. "Any bad surprise on the inflation front could revive the Federal Reserve hawks, but we are far from pricing another hike in September just yet," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. Nasdaq has gained about 31% this year on hopes of a soft landing for the U.S. economy in the face of the Fed's aggressive interest rate hike cycle and optimism over the scope of artificial intelligence.
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Rate-sensitive megacap stocks Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O rose between 0.6% and 0.8% in early trading before the bell. Futures up: Dow 0.49%, S&P 0.54%, Nasdaq 0.62% Aug 10 (Reuters) - U.S. stock index futures rose on Thursday ahead of key inflation data later in the day that could influence the Federal Reserve's monetary policy path. Nasdaq has gained about 31% this year on hopes of a soft landing for the U.S. economy in the face of the Fed's aggressive interest rate hike cycle and optimism over the scope of artificial intelligence.
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Rate-sensitive megacap stocks Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O rose between 0.6% and 0.8% in early trading before the bell. Futures up: Dow 0.49%, S&P 0.54%, Nasdaq 0.62% Aug 10 (Reuters) - U.S. stock index futures rose on Thursday ahead of key inflation data later in the day that could influence the Federal Reserve's monetary policy path. The tech-heavy Nasdaq led Wall Street lower on Wednesday, with heavyweight Nvidia NVDA.O falling 4.7%, followed closely by the other "Magnificent Seven" megacap stocks that drove this year's stock rally.
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Rate-sensitive megacap stocks Amazon.com AMZN.O, Microsoft MSFT.O and Apple AAPL.O rose between 0.6% and 0.8% in early trading 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. Traders are optimistic the Fed has completed its aggressive interest rate hike campaign, giving 86.5% odds of no rate hike by the central bank in its September policy meeting, according to CME FedWatch Tool.
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14373.0
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2023-08-10 00:00:00 UTC
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Stock Market News for Aug 10, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-aug-10-2023
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nan
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nan
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U.S. stocks closed lower for the second straight session on Wednesday as technology stocks took a beating while investors digested news of China entering deflation and waited for the all-important consumer price index data that is scheduled for release on Thursday morning. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slipped 0.5% or 191.13 points to finish at 35,123.36 points after declining as much as 250 points at its session low.
The S&P 500 declined 0.7% or 31.67 points to close at 4,467.71 points. Tech stocks were the biggest drag on the index. Also, consumer discretionary and communication services stocks suffered losses.
The Technology Select Sector SPDR (XLK) gave up 1.3%. The Consumer Discretionary Select Sector SPDR (XLY) declined 1.2%, while the Financials Select Sector SPDR (XLF) shed 0.8%. The Communication Services Select Sector SPDR (XLC) lost 1.1%. Seven of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq fell 1.2% or 162.31 points to end at 13,722.02 points.
The fear-gauge CBOE Volatility Index (VIX) was down 0.19% to 15.96. Decliners outnumbered advancers on the NYSE by a 1.18-to-1 ratio. On Nasdaq, a 1.63-to-1 ratio favored declining issues. A total of 11.06 billion shares were traded on Wednesday, higher than the last 20-session average of 10.89 billion.
Investors Await CPI Data
Stocks fell for the second consecutive day on Wednesday as investors keenly awaited the Consumer Price Index (CPI) reading due to be on Thursday. Investors have been keeping a close watch on the index in recent months to get a clearer picture of how the Fed will continue with its interest rates going forward.
Economists expect CPI to increase 0.2% in July, the same as last month, while the annual rate of inflation is projected to increase 3.3% in July after climbing 3% in the prior month. Core CPI that excludes the volatile food and energy prices is projected to climb 0.2% in July, while the annual inflation rate is expected to rise 4.7% in July after rising 4.8% in June.
Market participants are hopeful that the Fed might finally end its current monetary tightening policy as inflation has steadily declined over the past 12 months. However, the CPI and the producer price index (PPI) reading, which will be out on Friday, will give a clearer picture of the Fed’s future course of action.
Stocks continued to suffer on Wednesday, a day after Moody’s downgraded the credit ratings of 10 small-to-mid-sized regional lenders, including M&T Bank Corporation (MTB). M&T Bank Corporation has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This raised further concerns about the health of the nation’s banks and economy.
China Enters Deflation
More bad news continued to come in from China. After coming up with disappointing trade data that showed exports falling 14.5% in July from the year-ago period, China slipped into deflation on Wednesday, raising more worries about the global economic health.
Tech stocks were one of the biggest sufferers on Wednesday. Shares of Apple Inc. (AAPL) declined 0.9%, while Alphabet Inc. (GOOGL) fell 1.3%.
Investors are also keeping an eye on companies as they report their quarterly reports as the second-quarter earnings season draws to a close. They are now waiting for the ear
No major economic data was released on Wednesday.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. (AAPL) declined 0.9%, while Alphabet Inc. (GOOGL) fell 1.3%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Market participants are hopeful that the Fed might finally end its current monetary tightening policy as inflation has steadily declined over the past 12 months.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report M&T Bank Corporation (MTB) : 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) declined 0.9%, while Alphabet Inc. (GOOGL) fell 1.3%. U.S. stocks closed lower for the second straight session on Wednesday as technology stocks took a beating while investors digested news of China entering deflation and waited for the all-important consumer price index data that is scheduled for release on Thursday morning.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report M&T Bank Corporation (MTB) : 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) declined 0.9%, while Alphabet Inc. (GOOGL) fell 1.3%. U.S. stocks closed lower for the second straight session on Wednesday as technology stocks took a beating while investors digested news of China entering deflation and waited for the all-important consumer price index data that is scheduled for release on Thursday morning.
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Shares of Apple Inc. (AAPL) declined 0.9%, while Alphabet Inc. (GOOGL) fell 1.3%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed lower for the second straight session on Wednesday as technology stocks took a beating while investors digested news of China entering deflation and waited for the all-important consumer price index data that is scheduled for release on Thursday morning.
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14374.0
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2023-08-09 00:00:00 UTC
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US STOCKS-Wall Street falls ahead of CPI inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-ahead-of-cpi-inflation-data
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nan
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nan
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By Bansari Mayur Kamdar and Johann M Cherian
Aug 9 (Reuters) - Wall Street's main indexes fell on Wednesday ahead of a key inflation report this week, with investors also assessing remarks from U.S. Federal Reserve officials.
Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O were down between 1.3% and 4.6%.
"We think that at this point there is some profit taking and retrenchment in the short term on the card," said Aadil Zaman, partner at Wall Street Alliance Group.
Philadelphia Fed President Patrick Harker said on Tuesday the U.S. central bank may be at the stage where it can leave interest rates unchanged, barring any abrupt change in the direction of recent economic data.
However, Fed Governor Michelle Bowman on Monday said the combination of still-elevated inflation and continued economic growth meant further rate increases are likely.
Traders expect an 86.5% chance of no rate hike at the Fed's next policy meeting in September, according to CME FedWatch Tool.
The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight year-over-year acceleration. On a month-to-month basis, consumer prices are seen increasing 0.2%, the same rate as in June.
"CPI won't be major surprise. It's going to be either matching expectations most likely or slightly better than expectation, showing that inflation is cooling off," Zaman added.
Wall Street's main indexes ended the previous session lower in a broad selloff after the downgrading of several small and mid-sized banks by credit rating agency Moody's.
Big banks extended losses on Wednesday, with Bank of America BAC.N and Wells Fargo WFC.N down 1.0% and 1.5%, respectively.
Adding to concerns about the global economy, China's consumer sector fell into deflation and factory-gate prices extended declines in July, as the world's second-largest economy struggled to revive demand.
At 11:33 a.m. ET, the Dow Jones Industrial Average .DJI was down 154.86 points, or 0.44%, at 35,159.63, the S&P 500 .SPX was down 27.85 points, or 0.62%, at 4,471.53, and the Nasdaq Composite .IXIC was down 164.88 points, or 1.19%, at 13,719.44.
Seven of the top 11 S&P 500 sectors rose, led by gains in energy stocks .SPNY, that increased 1.6%, touching a near six-month high, tracking a jump in crude oil prices. O/R
Casino owner Penn Entertainment's PENN.O shares jumped 7.6% on a $2 billion deal with Walt Disney's ESPN DIS.N to launch a sports betting business.
Walt Disney's shares rose 0.8% ahead of its quarterly results due after the bell.
LyftLYFT.O signaled it would double down on competitive pricing to catch up with rival Uber UBER.N, taking the shine off its strong earnings forecast and sending the company's shares down 5.4%.
Of the 443 S&P 500 companies that have reported results as of Tuesday, 78.6% beat analyst expectations, according to Refinitiv data.
Declining issues outnumbered advancers for a 1.20-to-1 ratio on the NYSE and a 1.65-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and five new lows, while the Nasdaq recorded 47 new highs and 131 new lows.
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta)
((BansariMayur.Kamdar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O were down between 1.3% and 4.6%. By Bansari Mayur Kamdar and Johann M Cherian Aug 9 (Reuters) - Wall Street's main indexes fell on Wednesday ahead of a key inflation report this week, with investors also assessing remarks from U.S. Federal Reserve officials. Philadelphia Fed President Patrick Harker said on Tuesday the U.S. central bank may be at the stage where it can leave interest rates unchanged, barring any abrupt change in the direction of recent economic data.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O were down between 1.3% and 4.6%. By Bansari Mayur Kamdar and Johann M Cherian Aug 9 (Reuters) - Wall Street's main indexes fell on Wednesday ahead of a key inflation report this week, with investors also assessing remarks from U.S. Federal Reserve officials. The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight year-over-year acceleration.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O were down between 1.3% and 4.6%. By Bansari Mayur Kamdar and Johann M Cherian Aug 9 (Reuters) - Wall Street's main indexes fell on Wednesday ahead of a key inflation report this week, with investors also assessing remarks from U.S. Federal Reserve officials. The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight year-over-year acceleration.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O were down between 1.3% and 4.6%. By Bansari Mayur Kamdar and Johann M Cherian Aug 9 (Reuters) - Wall Street's main indexes fell on Wednesday ahead of a key inflation report this week, with investors also assessing remarks from U.S. Federal Reserve officials. The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight year-over-year acceleration.
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14375.0
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2023-08-09 00:00:00 UTC
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US Supreme Court refuses Epic bid to let App Store order take effect in Apple case
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AAPL
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https://www.nasdaq.com/articles/us-supreme-court-refuses-epic-bid-to-let-app-store-order-take-effect-in-apple-case-0
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nan
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nan
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By Andrew Chung
Aug 9 (Reuters) - The U.S. Supreme Court on Wednesday dealt a setback to Epic Games, maker of the popular video game "Fortnite," in its legal battle against Apple AAPL.O, declining to let a federal judge's injunction take effect that could force the iPhone maker to change payment practices in its lucrative App Store.
The justices denied Epic's request to lift a decision by the San Francisco-based 9th U.S. Circuit Court of Appeals that effectively delayed implementing an injunction issued by U.S. District Judge Yvonne Gonzalez Rogers barring certain App Store rules while Apple pursues a Supreme Court appeal.
The 9th Circuit in April had upheld the injunction but in July put that decision on hold.
(Reporting by Andrew Chung in New York; Editing by Will Dunham)
((andrew.chung@thomsonreuters.com; 332.219.1428 ; 646.407.9441 mobile;))
The views and 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 Andrew Chung Aug 9 (Reuters) - The U.S. Supreme Court on Wednesday dealt a setback to Epic Games, maker of the popular video game "Fortnite," in its legal battle against Apple AAPL.O, declining to let a federal judge's injunction take effect that could force the iPhone maker to change payment practices in its lucrative App Store. Circuit Court of Appeals that effectively delayed implementing an injunction issued by U.S. District Judge Yvonne Gonzalez Rogers barring certain App Store rules while Apple pursues a Supreme Court appeal. The 9th Circuit in April had upheld the injunction but in July put that decision on hold.
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By Andrew Chung Aug 9 (Reuters) - The U.S. Supreme Court on Wednesday dealt a setback to Epic Games, maker of the popular video game "Fortnite," in its legal battle against Apple AAPL.O, declining to let a federal judge's injunction take effect that could force the iPhone maker to change payment practices in its lucrative App Store. Circuit Court of Appeals that effectively delayed implementing an injunction issued by U.S. District Judge Yvonne Gonzalez Rogers barring certain App Store rules while Apple pursues a Supreme Court appeal. (Reporting by Andrew Chung in New York; Editing by Will Dunham) ((andrew.chung@thomsonreuters.com; 332.219.1428 ; 646.407.9441 mobile;)) The views and 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 Andrew Chung Aug 9 (Reuters) - The U.S. Supreme Court on Wednesday dealt a setback to Epic Games, maker of the popular video game "Fortnite," in its legal battle against Apple AAPL.O, declining to let a federal judge's injunction take effect that could force the iPhone maker to change payment practices in its lucrative App Store. Circuit Court of Appeals that effectively delayed implementing an injunction issued by U.S. District Judge Yvonne Gonzalez Rogers barring certain App Store rules while Apple pursues a Supreme Court appeal. (Reporting by Andrew Chung in New York; Editing by Will Dunham) ((andrew.chung@thomsonreuters.com; 332.219.1428 ; 646.407.9441 mobile;)) The views and 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 Andrew Chung Aug 9 (Reuters) - The U.S. Supreme Court on Wednesday dealt a setback to Epic Games, maker of the popular video game "Fortnite," in its legal battle against Apple AAPL.O, declining to let a federal judge's injunction take effect that could force the iPhone maker to change payment practices in its lucrative App Store. The justices denied Epic's request to lift a decision by the San Francisco-based 9th U.S. Circuit Court of Appeals that effectively delayed implementing an injunction issued by U.S. District Judge Yvonne Gonzalez Rogers barring certain App Store rules while Apple pursues a Supreme Court appeal.
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14376.0
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2023-08-09 00:00:00 UTC
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US Supreme Court refuses Epic bid to let App Store order take effect in Apple case
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AAPL
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https://www.nasdaq.com/articles/us-supreme-court-refuses-epic-bid-to-let-app-store-order-take-effect-in-apple-case
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nan
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nan
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By Andrew Chung
Aug 9 (Reuters) - The U.S. Supreme Court on Wednesday dealt a setback to Epic Games, maker of the popular video game "Fortnite," in its legal battle against Apple AAPL.O, declining to let a federal judge's injunction take effect that could force the iPhone maker to change payment practices in its lucrative App Store.
Liberal Justice Elena Kagan, acting for the Supreme Court, denied Epic's request to lift a decision by the San Francisco-based 9th U.S. Circuit Court of Appeals that effectively delayed implementing an injunction issued by U.S. District Judge Yvonne Gonzalez Rogers barring certain App Store rules, while Apple pursues a Supreme Court appeal.
The 9th Circuit in April had upheld the injunction but in July put that decision on hold. Kagan handles emergency matters for the Supreme Court arising from a group of states including California.
Epic filed an antitrust lawsuit in 2020, accusing Apple of acting as an illegal monopolist by requiring consumers to get apps through its App Store and buy digital content inside an app using its own system - for which it charges up to a 30% commission.
Rogers in 2021 rejected Epic's antitrust claims against Apple. But the judge found that Apple violated California's unfair competition law by barring developers from "steering" users to make digital purchases that bypass Apple's in-app system, which Epic could save them money with lower commissions.
The judge's injunction required Apple to let app developers provide links and buttons that direct consumers to other ways to pay for digital content that they use in their apps.
In seeking to pause the injunction from taking effect while it readies an appeal to the Supreme Court, Apple told the 9th Circuit that Rogers had erred in prohibiting it from enforcing its rules against all app developers in the United States, rather than just Epic.
"Apple will be required to change its business model to comply with the injunction before judicial review has been completed," the company told the 9th Circuit. "The undisputed evidence establishes that the injunction will limit Apple's ability to protect users from fraud, scams, malware, spyware, and objectionable content."
Epic told the Supreme Court that the 9th Circuit's standard for putting cases on hold is "far too lenient."
(Reporting by Andrew Chung in New York; Editing by Will Dunham)
((andrew.chung@thomsonreuters.com; 332.219.1428 ; 646.407.9441 mobile;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Andrew Chung Aug 9 (Reuters) - The U.S. Supreme Court on Wednesday dealt a setback to Epic Games, maker of the popular video game "Fortnite," in its legal battle against Apple AAPL.O, declining to let a federal judge's injunction take effect that could force the iPhone maker to change payment practices in its lucrative App Store. Liberal Justice Elena Kagan, acting for the Supreme Court, denied Epic's request to lift a decision by the San Francisco-based 9th U.S. In seeking to pause the injunction from taking effect while it readies an appeal to the Supreme Court, Apple told the 9th Circuit that Rogers had erred in prohibiting it from enforcing its rules against all app developers in the United States, rather than just Epic.
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By Andrew Chung Aug 9 (Reuters) - The U.S. Supreme Court on Wednesday dealt a setback to Epic Games, maker of the popular video game "Fortnite," in its legal battle against Apple AAPL.O, declining to let a federal judge's injunction take effect that could force the iPhone maker to change payment practices in its lucrative App Store. Circuit Court of Appeals that effectively delayed implementing an injunction issued by U.S. District Judge Yvonne Gonzalez Rogers barring certain App Store rules, while Apple pursues a Supreme Court appeal. The judge's injunction required Apple to let app developers provide links and buttons that direct consumers to other ways to pay for digital content that they use in their apps.
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By Andrew Chung Aug 9 (Reuters) - The U.S. Supreme Court on Wednesday dealt a setback to Epic Games, maker of the popular video game "Fortnite," in its legal battle against Apple AAPL.O, declining to let a federal judge's injunction take effect that could force the iPhone maker to change payment practices in its lucrative App Store. Circuit Court of Appeals that effectively delayed implementing an injunction issued by U.S. District Judge Yvonne Gonzalez Rogers barring certain App Store rules, while Apple pursues a Supreme Court appeal. In seeking to pause the injunction from taking effect while it readies an appeal to the Supreme Court, Apple told the 9th Circuit that Rogers had erred in prohibiting it from enforcing its rules against all app developers in the United States, rather than just Epic.
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By Andrew Chung Aug 9 (Reuters) - The U.S. Supreme Court on Wednesday dealt a setback to Epic Games, maker of the popular video game "Fortnite," in its legal battle against Apple AAPL.O, declining to let a federal judge's injunction take effect that could force the iPhone maker to change payment practices in its lucrative App Store. Epic filed an antitrust lawsuit in 2020, accusing Apple of acting as an illegal monopolist by requiring consumers to get apps through its App Store and buy digital content inside an app using its own system - for which it charges up to a 30% commission. In seeking to pause the injunction from taking effect while it readies an appeal to the Supreme Court, Apple told the 9th Circuit that Rogers had erred in prohibiting it from enforcing its rules against all app developers in the United States, rather than just Epic.
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14377.0
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2023-08-09 00:00:00 UTC
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US STOCKS-Wall Street drops ahead of CPI inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-drops-ahead-of-cpi-inflation-data-0
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nan
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nan
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By Echo Wang and Bansari Mayur Kamdar
Aug 9 (Reuters) - Wall Street's main indexes fell on Wednesday, a day after a report saying Americans borrowed more than ever on their credit cards in the last quarter and as investors awaited inflation data due later this week.
“The market really is just digesting some consumer credit card debt issues that have come out yesterday”, said Gina Bolvin, president of Bolvin Wealth Management Group in Boston. “With price of oil going up, the consumer is the backbone of the economy. If they are too stretched and they stopped spending, that feeds us more into a recession narrative.”
On Tuesday, the New York Federal Reserve Bank said U.S. credit cards debt surpassed $1 trillion, and Philadelphia Fed President Patrick Harker said the U.S. central bank may be at the stage where it can leave interest rates unchanged.
On Monday, Fed Governor Michelle Bowman said further rate increases were likely, citing nagging inflation and strong economic growth.
Traders put the chance of no rate hike at the Fed's next policy meeting in September at 86.5%, according to CME FedWatch Tool. Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 1.7% and 5.0%.
The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight acceleration from last year. On a month-to-month basis, consumer prices are seen increasing 0.2%, the same as in June.
On Tuesday, Wall Street's main indexes ended lower in a broad selloff after credit rating agency Moody's downgraded several small and mid-sized banks. On Wednesday, big banks extended those losses with Bank of America BAC.N down 0.8% and Wells Fargo WFC.N down 1.3%.
China's consumer sector fell into deflation in July. The consumer price index (CPI) dropped in the world's second-largest economy, the National Bureau of Statistics said on Wednesday, its first decline since February 2021.
The Dow Jones Industrial Average .DJI fell 9.24 points, or 0.03%, to 35,305.25, the S&P 500 .SPX lost 7.26 points, or 0.16%, to 4,492.12 and the Nasdaq Composite .IXIC dropped 80.04 points, or 0.58%, to 13,804.29.
Seven of the top 11 S&P 500 sectors rose, with energy stocks .SPNY leading the gain by a 1.6% jump, touching a near six-month high, tracking a jump in crude oil prices.
Casino owner Penn Entertainment's PENN.O shares surged 10.7% on a $2 billion deal with Walt Disney's ESPN DIS.N to launch a sports betting business.
Walt Disney's shares fell 0.2%, erasing early gains ahead of its quarterly results due after the bell.
Lyft LYFT.O shares tumbled 8.7% despite a strong earnings forecast, as the company signaled it would double down on competitive pricing to catch up with rival Uber UBER.N.
Of the 443 S&P 500 companies that have reported results as of Tuesday, 78.6% beat analyst expectations, according to Refinitiv data.
Advancing issues outnumbered declining ones on the NYSE by a 1.04-to-1 ratio; on Nasdaq, a 1.45-to-1 ratio favored decliners.
The S&P 500 posted 15 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 54 new highs and 160 new lows.
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Echo Wang in New York, Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta and David Gregorio)
((BansariMayur.Kamdar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 1.7% and 5.0%. By Echo Wang and Bansari Mayur Kamdar Aug 9 (Reuters) - Wall Street's main indexes fell on Wednesday, a day after a report saying Americans borrowed more than ever on their credit cards in the last quarter and as investors awaited inflation data due later this week. On Tuesday, Wall Street's main indexes ended lower in a broad selloff after credit rating agency Moody's downgraded several small and mid-sized banks.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 1.7% and 5.0%. By Echo Wang and Bansari Mayur Kamdar Aug 9 (Reuters) - Wall Street's main indexes fell on Wednesday, a day after a report saying Americans borrowed more than ever on their credit cards in the last quarter and as investors awaited inflation data due later this week. If they are too stretched and they stopped spending, that feeds us more into a recession narrative.” On Tuesday, the New York Federal Reserve Bank said U.S. credit cards debt surpassed $1 trillion, and Philadelphia Fed President Patrick Harker said the U.S. central bank may be at the stage where it can leave interest rates unchanged.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 1.7% and 5.0%. By Echo Wang and Bansari Mayur Kamdar Aug 9 (Reuters) - Wall Street's main indexes fell on Wednesday, a day after a report saying Americans borrowed more than ever on their credit cards in the last quarter and as investors awaited inflation data due later this week. If they are too stretched and they stopped spending, that feeds us more into a recession narrative.” On Tuesday, the New York Federal Reserve Bank said U.S. credit cards debt surpassed $1 trillion, and Philadelphia Fed President Patrick Harker said the U.S. central bank may be at the stage where it can leave interest rates unchanged.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 1.7% and 5.0%. By Echo Wang and Bansari Mayur Kamdar Aug 9 (Reuters) - Wall Street's main indexes fell on Wednesday, a day after a report saying Americans borrowed more than ever on their credit cards in the last quarter and as investors awaited inflation data due later this week. If they are too stretched and they stopped spending, that feeds us more into a recession narrative.” On Tuesday, the New York Federal Reserve Bank said U.S. credit cards debt surpassed $1 trillion, and Philadelphia Fed President Patrick Harker said the U.S. central bank may be at the stage where it can leave interest rates unchanged.
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14378.0
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2023-08-09 00:00:00 UTC
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US STOCKS-Wall Street closes lower as investors wait for inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-lower-as-investors-wait-for-inflation-data
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nan
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nan
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By Echo Wang
Aug 9 (Reuters) - U.s stocks ended lower on Wednesday, the day after a report showed Americans borrowed more than ever on their credit cards in the last quarter, and a day ahead of inflation data that could influence Federal Reserve interest rate decisions.
“The markets today are just kind of waffling around. And the reason for that is tomorrow is going to be the CPI report for July being released”, said Jason Krupa, vice president of asset management at Lenox Advisors.
“With price of oil going up, the consumer is the backbone of the economy. If they are too stretched and they stopped spending, that feeds us more into a recession narrative”, said Gina Bolvin, president of Bolvin Wealth Management Group in Boston.
On Monday, Fed Governor Michelle Bowman said further rate increases were likely, citing nagging inflation and strong economic growth.
Traders put the chance of no rate hike at the Fed's next policy meeting in September at 86.5%, according to CME FedWatch Tool. Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 1.7% and 5.0%.
The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight acceleration from last year. On a month-to-month basis, consumer prices are seen increasing 0.2%, the same as in June.
On Tuesday, Wall Street's main indexes ended lower in a broad selloff after credit rating agency Moody's downgraded several small and mid-sized banks. On Wednesday, big banks extended those losses with Bank of America BAC.N down 0.8% and Wells Fargo WFC.N down 1.3%.
China's consumer sector fell into deflation in July. The consumer price index (CPI) dropped in the world's second-largest economy, the National Bureau of Statistics said on Wednesday, its first decline since February 2021.
According to preliminary data, the S&P 500 .SPX lost 31.47 points, or 0.70%, to end at 4,467.91 points, while the Nasdaq Composite .IXIC lost 162.31 points, or 1.17%, to 13,723.96. The Dow Jones Industrial Average .DJI fell 186.92 points, or 0.53%, to 35,127.57.
Six of the top 11 S&P 500 sectors rose, with energy stocks .SPNY leading the gain.
Casino owner Penn Entertainment's PENN.O shares rose on a $2 billion deal with Walt Disney's ESPN DIS.N to launch a sports betting business.
Walt Disney's shares fell, erasing early gains ahead of its quarterly results due after the bell.
Lyft LYFT.O shares tumbled despite a strong earnings forecast, as the company signaled it would double down on competitive pricing to catch up with rival Uber UBER.N.
Of the 443 S&P 500 companies that have reported results as of Tuesday, 78.6% beat analyst expectations, according to Refinitiv data.
“It could be a little bit of that (the market is )digesting the fact that we're beating expectations (on earnings) but those expectations have been coming down quarter over quarter”, said Krupa.
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Echo Wang in New York, Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta and David Gregorio)
((BansariMayur.Kamdar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 1.7% and 5.0%. On Tuesday, Wall Street's main indexes ended lower in a broad selloff after credit rating agency Moody's downgraded several small and mid-sized banks. Casino owner Penn Entertainment's PENN.O shares rose on a $2 billion deal with Walt Disney's ESPN DIS.N to launch a sports betting business.
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Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 1.7% and 5.0%. By Echo Wang Aug 9 (Reuters) - U.s stocks ended lower on Wednesday, the day after a report showed Americans borrowed more than ever on their credit cards in the last quarter, and a day ahead of inflation data that could influence Federal Reserve interest rate decisions. On Tuesday, Wall Street's main indexes ended lower in a broad selloff after credit rating agency Moody's downgraded several small and mid-sized banks.
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Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 1.7% and 5.0%. By Echo Wang Aug 9 (Reuters) - U.s stocks ended lower on Wednesday, the day after a report showed Americans borrowed more than ever on their credit cards in the last quarter, and a day ahead of inflation data that could influence Federal Reserve interest rate decisions. The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight acceleration from last year.
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Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 1.7% and 5.0%. The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight acceleration from last year. On Tuesday, Wall Street's main indexes ended lower in a broad selloff after credit rating agency Moody's downgraded several small and mid-sized banks.
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14379.0
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2023-08-09 00:00:00 UTC
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3 Not-So-Obvious Stocks to Benefit From Biden’s Broadband Plan
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AAPL
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https://www.nasdaq.com/articles/3-not-so-obvious-stocks-to-benefit-from-bidens-broadband-plan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Earlier this summer, President Biden announced that his administration would spend $42 billion through the Broadband Equity Access and Deployment (BEAD) program to ensure that “every person in America” had internet access by 2030. And, of course, there are some obvious stocks that will benefit from the broadband plan.
“It’s the biggest investment in high-speed internet ever. Because for today’s economy to work for everyone, internet access is just as important as electricity, or water, or other basic services,” Biden said in a White House address in late June.
Today, I want to get creative with some not-so-obvious stocks to benefit from Biden’s broadband plan. They won’t necessarily be internet providers or cable companies, but rather some infrastructure stocks that help the internet work properly ranging from data centers to fiber optic cable manufacturers.
As a result, the names I suggest here might be something other than household names. However, I can assure you of two things: they will benefit from Biden’s push and they will already be profitable businesses.
VeriSign (VRSN)
Source: Kent Sievers / Shutterstock.com
Did you know Warren Buffett owns a big chunk of the domain registry provider VeriSign (NASDAQ:VRSN)? Because he does through Berkshire Hathaway (NYSE:BRK-A), which owns 12.4% of the internet registry business. However, because Berkshire has so much tied up in one stock — Apple (NASDAQ:AAPL) accounts for 45.2% of the holding company’s $364 billion equity portfolio — the $2.6 billion Verisign holding represents just 0.7%.
Why does Buffett like VeriSign? It made $364.4 million in the first six months of 2023 from $736.4 million in revenue. That’s nearly a 50% net margin, generating tremendous free cash from a slow-growth business.
The company reported Q2 2023 earnings at the end of July. Thanks to growth at its domain-name registry business, the top line grew by 5.7% to $372 million, while it earned $1.79 in the second quarter, 25 cents higher than a year earlier.
“Earlier this month we passed 26 years of 100 percent availability for the .com/.net domain name resolution system,” said Jim Bidzos, Executive Chairman and Chief Executive Officer.
VeriSign noted that it had 174.4 million .com and .net domain name registrations at the end of June, 0.1% higher than a year earlier. To ensure that it continues to make money from this legacy business, it plans to increase the annual registry-level wholesale fee it charges for each new and renewal .net domain name registration by 99 cents to $10.91. That should go into effect on Feb. 1, 2024.
Adding internet in all parts of rural America will have a knock-on effect on future revenue.
Viavi Solutions (VIAV)
Source: Adriana Iacob / Shutterstock
I couldn’t remember why I knew the name Viavi Solutions (NASDAQ:VIAV), which provides testing solutions for fiber and other communications networks through their Network Enablement unit. And then it dawned on me that it was the old JDS Uniphase business.
In Q3 2023, Viavi’s Network Enablement business accounted for $149.6 million of its $247.8 million in revenue. Its two other segments — Service Enablement (SE) and Optical Security and Performance Products (OSP) — accounted for the rest.
Unfortunately, due to lower R&D spending by potential customers in the first half of calendar 2023, revenues fell by 21.5% YOY, with a 12.9% decline from Q2 2023. That resulted in a 58.2% YOY decline in non-GAAP earnings to $28.3 million.
CEO Oleg Khaykin stated:
“On a positive side, we saw the beginning of stabilization of demand for our field instruments during the March quarter. In the current quarter, we are seeing the signs of recovery in our Field Instruments and stabilization in the Lab & Production business. We expect the stabilization and recovery momentum to continue into the second half of calendar 2023.”
With VIAV stock down more than 26% over the past year, now would be a good time to look more closely at its shares. Four of the nine analysts covering its stock rate it a Buy, with five at Hold.
Clearfield (CLFD)
Source: Pavel Kapysh / Shutterstock.com
Clearfield (NASDAQ:CLFD) supplies the guts required for telecom, cable, and broadband providers to get fiber into homes and businesses across America. As I recently stated in a July article recommending the stock, “It calls itself ‘The Fiber to Anywhere Company.’ It has 44 patents on its various products.”
I also highlighted that less than half of American households have access to fiber internet. The Biden administration’s plans ought to help that, and Clearfield will undoubtedly benefit from the extra internet spending.
On Aug. 3, Clearfield reported its Q3 2023 results stating that revenues fell 10.0% to $61.3 million. As customers continue to work through inventory over the next few quarters, there will likely be a few more quarters with declining revenue YOY. In addition, its community broadband customers are waiting to see about internet funding before placing large orders.
In the Q3 press release, CEO Cheri Beranek stated,
“With government funding initiatives underway and significant rural broadband builds expected in the coming years, we anticipate strong demand for our core products once order patterns return to normalized levels.”
Once these two issues pass, it should be clear sailing for the company and its sales.
On the bottom line, Clearfield earned $10.4 million, 13% higher than a year earlier. On a per-share basis, earnings rose at a slower rate of 1.5% due to more shares outstanding.
The company’s balance sheet is very sound. It has no long-term debt, with nearly $172 million in cash, short-term, and long-term investments. Most of the money ($130 million) is from issuing stock last December for general corporate purposes, which I think was a timely offer. The 1.38 million shares sold were at $100, about 60% higher than today’s value. As a result, the company has plenty of cash to deploy for rural broadband projects over the next 12-24 months.
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 3 Not-So-Obvious Stocks to Benefit From Biden’s Broadband Plan 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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However, because Berkshire has so much tied up in one stock — Apple (NASDAQ:AAPL) accounts for 45.2% of the holding company’s $364 billion equity portfolio — the $2.6 billion Verisign holding represents just 0.7%. Because for today’s economy to work for everyone, internet access is just as important as electricity, or water, or other basic services,” Biden said in a White House address in late June. To ensure that it continues to make money from this legacy business, it plans to increase the annual registry-level wholesale fee it charges for each new and renewal .net domain name registration by 99 cents to $10.91.
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However, because Berkshire has so much tied up in one stock — Apple (NASDAQ:AAPL) accounts for 45.2% of the holding company’s $364 billion equity portfolio — the $2.6 billion Verisign holding represents just 0.7%. VeriSign (VRSN) Source: Kent Sievers / Shutterstock.com Did you know Warren Buffett owns a big chunk of the domain registry provider VeriSign (NASDAQ:VRSN)? Viavi Solutions (VIAV) Source: Adriana Iacob / Shutterstock I couldn’t remember why I knew the name Viavi Solutions (NASDAQ:VIAV), which provides testing solutions for fiber and other communications networks through their Network Enablement unit.
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However, because Berkshire has so much tied up in one stock — Apple (NASDAQ:AAPL) accounts for 45.2% of the holding company’s $364 billion equity portfolio — the $2.6 billion Verisign holding represents just 0.7%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Earlier this summer, President Biden announced that his administration would spend $42 billion through the Broadband Equity Access and Deployment (BEAD) program to ensure that “every person in America” had internet access by 2030. In Q3 2023, Viavi’s Network Enablement business accounted for $149.6 million of its $247.8 million in revenue.
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However, because Berkshire has so much tied up in one stock — Apple (NASDAQ:AAPL) accounts for 45.2% of the holding company’s $364 billion equity portfolio — the $2.6 billion Verisign holding represents just 0.7%. VeriSign noted that it had 174.4 million .com and .net domain name registrations at the end of June, 0.1% higher than a year earlier. In Q3 2023, Viavi’s Network Enablement business accounted for $149.6 million of its $247.8 million in revenue.
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14380.0
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2023-08-09 00:00:00 UTC
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After Hours Most Active for Aug 9, 2023 : ET, KVUE, EQT, DIS, QQQ, CSCO, INTC, JNJ, AAPL, AMZN, T, TTD
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-9-2023-%3A-et-kvue-eqt-dis-qqq-csco-intc-jnj-aapl-amzn-t-ttd
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The NASDAQ 100 After Hours Indicator is up 5.34 to 15,107.05. The total After hours volume is currently 81,180,663 shares traded.
The following are the most active stocks for the after hours session:
Energy Transfer L.P. (ET) is unchanged at $12.98, with 5,735,069 shares traded. ET's current last sale is 76.35% of the target price of $17.
Kenvue Inc. (KVUE) is unchanged at $23.35, with 4,983,454 shares traded. KVUE's current last sale is 83.39% of the target price of $28.
EQT Corporation (EQT) is unchanged at $44.05, with 3,254,235 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.02. As reported by Zacks, the current mean recommendation for EQT is in the "buy range".
Walt Disney Company (The) (DIS) is -0.7387 at $86.75, with 2,888,957 shares traded. Smarter Analyst Reports: Disney+ to Launch Ad-Supported Subscription Offering
Invesco QQQ Trust, Series 1 (QQQ) is +0.47 at $368.38, with 2,117,978 shares traded. This represents a 44.88% increase from its 52 Week Low.
Cisco Systems, Inc. (CSCO) is unchanged at $52.99, with 1,548,363 shares traded.CSCO is scheduled to provide an earnings report on 8/16/2023, for the fiscal quarter ending Jul2023. The consensus earnings per share forecast is 0.95 per share, which represents a 74 percent increase over the EPS one Year Ago
Intel Corporation (INTC) is +0.1 at $34.38, with 1,280,217 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 $0.03. INTC's current last sale is 98.23% of the target price of $35.
Johnson & Johnson (JNJ) is unchanged at $173.07, with 1,269,768 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $2.75. JNJ's current last sale is 94.06% of the target price of $184.
Apple Inc. (AAPL) is +0.03 at $178.22, with 1,229,888 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.37. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Amazon.com, Inc. (AMZN) is +0.11 at $137.96, with 1,110,005 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.56. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
AT&T Inc. (T) is -0.01 at $14.26, with 1,016,061 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.57. T's current last sale is 71.3% of the target price of $20.
The Trade Desk, Inc. (TTD) is -3.78 at $77.15, with 900,121 shares traded. As reported by Zacks, the current mean recommendation for TTD is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.03 at $178.22, with 1,229,888 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Cisco Systems, Inc. (CSCO) is unchanged at $52.99, with 1,548,363 shares traded.CSCO is scheduled to provide an earnings report on 8/16/2023, for the fiscal quarter ending Jul2023.
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Apple Inc. (AAPL) is +0.03 at $178.22, with 1,229,888 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is +0.03 at $178.22, with 1,229,888 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is +0.03 at $178.22, with 1,229,888 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is +0.11 at $137.96, with 1,110,005 shares traded.
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14381.0
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2023-08-09 00:00:00 UTC
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US STOCKS-Wall Street ends lower as investors await US inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-lower-as-investors-await-us-inflation-data
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nan
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nan
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By Echo Wang
Aug 9 (Reuters) - U.S. stocks closed lower on Wednesday, the day after a report showed Americans borrowed more than ever on their credit cards in the last quarter, and a day ahead of U.S. Consumer Price Index (CPI) inflation data that could influence Federal Reserve interest rate decisions.
“The markets today are just kind of waffling around. And the reason for that is tomorrow is going to be the CPI report for July being released”, said Jason Krupa, vice president of asset management at Lenox Advisors.
“With price of oil going up, the consumer is the backbone of the economy. If they are too stretched and they stopped spending, that feeds us more into a recession narrative”, said Gina Bolvin, president of Bolvin Wealth Management Group in Boston.
Traders put the chance of no rate hike at the Fed's next policy meeting in September at 86.5%, according to CME FedWatch Tool. Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 0.8% and 4.8%.
The CPI for July, due on Thursday, is expected to show a slight acceleration from last year. On a month-to-month basis, consumer prices are seen increasing 0.2%, the same as in June.
China's consumer sector fell into deflation in July. The consumer price index (CPI) dropped in the world's second-largest economy, the National Bureau of Statistics said, its first decline since February 2021.
The Dow Jones Industrial Average .DJI fell 191.13 points, or 0.54%, to 35,123.36, the S&P 500 .SPX lost 31.67 points, or 0.70%, to 4,467.71 and the Nasdaq Composite .IXIC dropped 165.93 points, or 1.2%, to 13,718.40.
The losses followed a broad selloff on Tuesday, after credit rating agency Moody's downgraded several small and mid-sized banks. On Wednesday, big banks extended those losses with Bank of America BAC.N down 0.8% and Wells Fargo WFC.N down 1.3%.
Four of the top 11 S&P 500 sectors rose, with energy stocks .SPNY leading the gain by a 1.22% jump, touching a near six-month high, tracking a jump in crude oil prices.
Casino owner Penn Entertainment's PENN.O shares surged 9.1% on a $2 billion deal with Walt Disney's ESPN DIS.N to launch a sports betting business.
Walt Disney's shares dipped 0.7%, erasing early gains ahead of its quarterly results due after the bell.
Lyft LYFT.O shares tumbled 10% despite a strong earnings forecast, as the company signaled it would double down on competitive pricing to catch up with rival Uber UBER.N.
Of the 443 S&P 500 companies that have reported results as of Tuesday, 78.6% beat analyst expectations, according to Refinitiv data.
“It could be a little bit of that (the market is ) digesting the fact that we're beating expectations (on earnings) but those expectations have been coming down quarter over quarter”, said Krupa.
Volume on U.S. exchanges was 11.06 billion shares, compared with the 10.89 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored decliners.
The S&P 500 posted 16 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 60 new highs and 178 new lows.
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Echo Wang in New York, Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta and David Gregorio)
((BansariMayur.Kamdar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 0.8% and 4.8%. And the reason for that is tomorrow is going to be the CPI report for July being released”, said Jason Krupa, vice president of asset management at Lenox Advisors. Casino owner Penn Entertainment's PENN.O shares surged 9.1% on a $2 billion deal with Walt Disney's ESPN DIS.N to launch a sports betting business.
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Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 0.8% and 4.8%. By Echo Wang Aug 9 (Reuters) - U.S. stocks closed lower on Wednesday, the day after a report showed Americans borrowed more than ever on their credit cards in the last quarter, and a day ahead of U.S. Consumer Price Index (CPI) inflation data that could influence Federal Reserve interest rate decisions. The consumer price index (CPI) dropped in the world's second-largest economy, the National Bureau of Statistics said, its first decline since February 2021.
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Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 0.8% and 4.8%. By Echo Wang Aug 9 (Reuters) - U.S. stocks closed lower on Wednesday, the day after a report showed Americans borrowed more than ever on their credit cards in the last quarter, and a day ahead of U.S. Consumer Price Index (CPI) inflation data that could influence Federal Reserve interest rate decisions. The consumer price index (CPI) dropped in the world's second-largest economy, the National Bureau of Statistics said, its first decline since February 2021.
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Rate-sensitive megacap growth and technology stocks that have led the Wall Street rally, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O, were down between 0.8% and 4.8%. “With price of oil going up, the consumer is the backbone of the economy. The consumer price index (CPI) dropped in the world's second-largest economy, the National Bureau of Statistics said, its first decline since February 2021.
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14382.0
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2023-08-09 00:00:00 UTC
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The 3 Best Retirement Stocks to Buy in August
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AAPL
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https://www.nasdaq.com/articles/the-3-best-retirement-stocks-to-buy-in-august
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The constant talk of inflation and the looming fears of a recession can be scary for even an experienced investor. When it comes to investing, it is ideal to look for resilient companies that can thrive in an uncertain market. If you are like me and are looking for the best retirement stocks to buy, you need to carefully choose companies that can stand strong in the coming decade. Before you start looking for the top retirement stocks for August, you must consider the long-term potential of the company in every market situation.
While building your retirement portfolio, you not only need to look for stocks that can generate steady income but also look for companies that can withstand the ups and downs in the market. Such companies have a solid balance sheet and will continue to perform no matter what is going on in the market. Holding dividend stocks in your portfolio is an ideal way to ensure steady income, but it makes sense to look for dividend stocks that show steady growth and are reliable. Let’s take a look at the best retirement stocks to buy in August.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) is one company that is highly resilient, and can continue to grow in any market situation. The company only ever saw its sales drop during 2020 when the world was struggling with the pandemic. Visa recently announced quarterly results and beat analyst expectations. Its revenue increased by 12%, and it also saw a rise in the cross-border payments volume. It saw a 9% rise in the payment volume, and revenge travel has also led to a surge in the volume. With the world steadily moving towards digitization, the company will continue to see growth in the volume.
The company makes money through the fees it charges on the transfer of money across its network. Since Visa has global operations and is present in multiple countries, inflation in one country will not have an impact on the company’s business. With more than 100 million locations globally, Visa’s network is only getting bigger. Visa cards have become such an integral part of our lives that a new fintech company won’t be able to achieve such a huge network in terms of merchants and consumers.
V stock is trading at $239 today and is up 15% year to date. It is moving closer to the 52-week high of $245 but I believe it has the potential to move higher. The company has a dividend yield of 0.75% and a quarterly dividend payout of $0.45. Its dividend payout ratio is 19.39% and is lower than the sector’s payout ratio, which means there is a potential for the company to raise dividends in the future. The demand for Visa is not going to slow down and besides enjoying a steady dividend income, you will also enjoy capital appreciation in the coming years. Visa is one of the top retirement stocks with growth potential.
Microsoft (MSFT)
Source: The Art of Pics / Shutterstock.com
One of the top tech companies to own, Microsoft (NASDAQ:MSFT) should be a part of every retirement portfolio. A tech dinosaur, the company has grown so much throughout the past few years that even a slowdown or a disappointing quarter does not lead to a major pullback. In the recent quarter, the company saw sales rise 8% year over year and an 18% increase in the operating income. It expects the top line in the range of $53.8 billion to $54.8 billion. While the company did report a slowdown in cloud business growth, I believe it is temporary and even if there is a slowdown, Microsoft is a diversified business and can continue generating income steadily.
There will never come a time when the world will not need computers, or data storage software or will stop playing video games and this means Microsoft will always be in demand. The company is also benefiting from the investments in AI and we will see it reflected in the revenue over the coming quarters. It has already made a $13 billion investment in OpenAI and the management believes it could become a leader in the AI space over the next decade.
OpenAI has given access to the research and development resources to Microsoft, which has allowed the company to build its own products and integrate them into the Microsoft software. MSFT is one of the must-buy retirement stocks in August. MSFT stock is trading at $326 today and is up 36% year to date. It has a dividend yield of 0.83% and paid a quarterly dividend of $0.68. The company has a dividend payout ratio of 27.73% and it has enough cash to be able to increase this in the coming years.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Warren Buffet’s favorite company, Apple (NASDAQ:AAPL) is a household name today, and it is one of the leading retirement stocks. The company is known for the iconic iPhone, but it has diversified into other products and services which continue to generate steady revenue. One thing that Apple has and its competitors don’t have is customer loyalty. Apple users seldom switch to other brands when it comes to phones or laptops. The loyal and satisfied customer base is the strength of the company, and consumers are ready to pay a premium for its products. That said, the company is also offering exceptional services and has seen a surge in service revenue throughout the years.
The company rewards its shareholders through share buybacks and dividends. It has a dividend yield of 0.53% and has recently paid a quarterly dividend of $0.24. The company has a dividend payout ratio of 14.82%, and it has a solid cash balance to be able to increase it in the coming years. In the last quarter, it returned $24 billion to the shareholders and it has increased dividend each year since 2013. AAPL stock is trading at $179 today and is up 43% year to date. All in all, Apple is a stellar company and you should add it to your portfolio for its growth and quality. This is one company that may see temporary ups and downs but it will continue to hold a dominant position in the market.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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The post The 3 Best Retirement Stocks to Buy in August appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Warren Buffet’s favorite company, Apple (NASDAQ:AAPL) is a household name today, and it is one of the leading retirement stocks. AAPL stock is trading at $179 today and is up 43% year to date. There will never come a time when the world will not need computers, or data storage software or will stop playing video games and this means Microsoft will always be in demand.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Warren Buffet’s favorite company, Apple (NASDAQ:AAPL) is a household name today, and it is one of the leading retirement stocks. AAPL stock is trading at $179 today and is up 43% year to date. Microsoft (MSFT) Source: The Art of Pics / Shutterstock.com One of the top tech companies to own, Microsoft (NASDAQ:MSFT) should be a part of every retirement portfolio.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Warren Buffet’s favorite company, Apple (NASDAQ:AAPL) is a household name today, and it is one of the leading retirement stocks. AAPL stock is trading at $179 today and is up 43% year to date. Holding dividend stocks in your portfolio is an ideal way to ensure steady income, but it makes sense to look for dividend stocks that show steady growth and are reliable.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Warren Buffet’s favorite company, Apple (NASDAQ:AAPL) is a household name today, and it is one of the leading retirement stocks. AAPL stock is trading at $179 today and is up 43% year to date. With the world steadily moving towards digitization, the company will continue to see growth in the volume.
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14383.0
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2023-08-09 00:00:00 UTC
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3 Cloud Computing Stocks You’ll Regret Not Buying Soon
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AAPL
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https://www.nasdaq.com/articles/3-cloud-computing-stocks-youll-regret-not-buying-soon
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Roughly 10 years ago, cloud computing was the hot trend and term of the investment community much like AI stocks today. Only it wasn’t a flash in the pan. Cloud technology has paved the way for giant gains over the last decade. For good reason, it still has investors looking for the top cloud computing stocks to buy today.
Here’s an example: the difference between Amazon (NASDAQ:AMZN) and many other e-commerce platforms is that the company has a robust cloud business to take into account. Amazon Web Services generates an enormous amount of revenue and profit for the company.
And while it’s an undeniable e-commerce titan, its cloud unit allowed it more flexibility in other areas of its overall business and led to enormous gains in its share price. The same could be said for countless other tech giants as well.
The market is going through a bit of turbulence — down five out of six days so far in August — but that shouldn’t stop investors from looking at the leading cloud stocks.
Microsoft (MSFT)
Source: rafapress / Shutterstock.com
Microsoft (NASDAQ:MSFT) has become stock market royalty, boasting the second-largest market capitalization in the world with a $2.41 trillion valuation. Lagging only Apple (NASDAQ:AAPL) in market cap, Microsoft has built upon its legacy within the tech space.
However, it hasn’t always been an easy ride for the stock or its long-time investors.
While Microsoft saw an enormous run-up during the dot-com bust — thanks in part to its dominant software — the stock actually topped out in 1999 and didn’t surpass that high again until 2016! Even the stock’s 2001 peak held firm for more than a dozen years before being eclipsed in late-2013.
When Microsoft finally got out of its funk, it needed a catalyst and that catalyst was the cloud. While the company flexes its balance sheet muscles and many excellent revenue streams, its cloud growth has been atop the list when it comes to investors’ focus.
Now that it’s down more than 10% from its 2023 high, investors are wondering if this name will become a buy-the-dip candidate. The easy answer is “yes,” but the harder question is “when?”
Snowflake (SNOW)
Source: rblfmr / Shutterstock.com
Snowflake (NYSE:SNOW) is a peculiar case given that the stock has been incredibly volatile lately. Notably, it’s has been struggling with the $190 area and has now pulled back roughly 20% from this zone.
Back in late-May, the firm reported earnings and, despite beating on earnings and revenue expectations, investors were unimpressed with the guidance. As a result, SNOW stock suffered a one-day 16.5% decline. However, the stock quickly proved its doubters wrong, rallying almost 30% after stringing together a seven-day win streak.
So which is it — a disappointment or a growth darling?
There’s no question that Snowflake has the growth to back up its reputation. Analysts expect annual revenue growth in excess of 30% in each of the next four years. That’s alongside a pivot to profitability.
While the stock commands a high valuation, it is still much lower than it was a few years ago. Even if the stock market has another couple of shakeouts left — potentially putting the $120s back in play — Snowflake seems like an excellent long-term winner.
DigitalOcean (DOCN)
Source: monticello / Shutterstock.com
DigitalOcean (NYSE:DOCN) feels a bit more like a wild card at the moment. While the stock had been performing quite well recently — up almost 40% from its late-June low to its mid-July high — the stock’s post-earnings performance has been a drag.
Shares suffered a one-day 24.8% decline on Friday Aug. 4 after the firm reported its quarterly results. The problem? Revenue guidance missed consensus expectations for next quarter and the full year.
On the plus side, management remains focused on turning to profitability and expanding its margins, which continues to come to fruition.
That said, DigitalOcean is a high-growth stock and thus remains in a volatile state. The market has been punishing these names when the earnings disappoint and that’s the simple case with DOCN stock right now. That said, it has a lot of long-term potential if it can continue to churn out double-digit revenue growth and improve its bottom line.
On the date of publication, Bret Kenwell held a long position in DOCN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
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The post 3 Cloud Computing Stocks You’ll Regret Not Buying Soon 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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Lagging only Apple (NASDAQ:AAPL) in market cap, Microsoft has built upon its legacy within the tech space. And while it’s an undeniable e-commerce titan, its cloud unit allowed it more flexibility in other areas of its overall business and led to enormous gains in its share price. While Microsoft saw an enormous run-up during the dot-com bust — thanks in part to its dominant software — the stock actually topped out in 1999 and didn’t surpass that high again until 2016!
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Lagging only Apple (NASDAQ:AAPL) in market cap, Microsoft has built upon its legacy within the tech space. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Roughly 10 years ago, cloud computing was the hot trend and term of the investment community much like AI stocks today. Microsoft (MSFT) Source: rafapress / Shutterstock.com Microsoft (NASDAQ:MSFT) has become stock market royalty, boasting the second-largest market capitalization in the world with a $2.41 trillion valuation.
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Lagging only Apple (NASDAQ:AAPL) in market cap, Microsoft has built upon its legacy within the tech space. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Roughly 10 years ago, cloud computing was the hot trend and term of the investment community much like AI stocks today. Microsoft (MSFT) Source: rafapress / Shutterstock.com Microsoft (NASDAQ:MSFT) has become stock market royalty, boasting the second-largest market capitalization in the world with a $2.41 trillion valuation.
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Lagging only Apple (NASDAQ:AAPL) in market cap, Microsoft has built upon its legacy within the tech space. For good reason, it still has investors looking for the top cloud computing stocks to buy today. The easy answer is “yes,” but the harder question is “when?” Snowflake (SNOW) Source: rblfmr / Shutterstock.com Snowflake (NYSE:SNOW) is a peculiar case given that the stock has been incredibly volatile lately.
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2023-08-09 00:00:00 UTC
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What Are the Best Stocks to Invest in for the Long-Term? Our 3 Picks for August
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AAPL
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https://www.nasdaq.com/articles/what-are-the-best-stocks-to-invest-in-for-the-long-term-our-3-picks-for-august
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the current environment, finding stocks to invest in for the long-term is one of the best ways you can spend your time. Most of your portfolio should stay put in these stocks, and over time, these stocks can deliver tremendous gains. Sure, there are ETFs, which are essential for most investors who don’t know how to read the market. Yet, many investors also struggle to beat the market by focusing solely on ETFs and very safe stocks.
In my opinion, sacrificing some near-term stability is very much worth the risk, particularly for those focused on time-tested businesses. Additionally, it’s my view that creating a portfolio of strong dividend-paying businesses can outperform the market significantly over the long-term.
With that said, let’s look at the three long-term stocks to invest in right now.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is a major holding in the portfolios of most large hedge funds on Wall Street. That’s because AAPL stock is historically among the most solid long-term equities to own, and arguably the best option in the FAANG group.
Apple’s consistent growth, high margins, and strong consumer loyalty highlight its indestructible moat and enduring product appeal. Apple’s closed-loop ecosystem offers seamlessly integrated, user-friendly products within the company’s complete control. Indeed, Apple’s consistency makes it a safe long-term stock.
In addition, the younger generation overwhelmingly prefers Apple products. This trend is projected to drive Apple’s growth, with revenue and earnings per share expected to double by 2031. Recently, AAPL stock dropped about 8.5% from its peak due to a cooling tech rally. I believe this dip presents an excellent opportunity to snap up this long-term gem.
Berkshire Hathaway (BRK.A, BRK.B)
Source: IgorGolovniov / Shutterstock.com
Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) is another no-brainer option for long-term investors. Warren Buffett is widely considered to be one of the greeters investors of all time, meaning investors have an opportunity to ride the coattails of the Oracle of Omaha by owning his stock. His five largest holdings (as of the latest SEC filings) include aforementioned Apple, Bank of America (NYSE:BAC), Occidental Petroleum (NYSE:OXY), Coca-Cola (NYSE:KO), and Chevron (NYSE:CVX).
These holdings have consistently outperformed the market, especially during the most recent elongated bull market. As of writing, the Berkshire’s five-year gain stood at ~77%, significantly higher than the S&P 500’s 59%. Additionally, Berkshire Hathaway holds a substantial cash reserve of over $147 billion, which is great for those uncertain about the future. If things take a turn for the worse, Berkshire’s ability to invest in value stocks posits well for the long-term investors.
Flowers Foods (FLO)
Source: shutterstock.com/ampersandphoto
Flowers Foods (NYSE:FLO) is a personal favorite of mine. It might look out of place amidst the previously-mentioned behemoths, but the stock is unlikely to disappoint in the long run. It is a consumer staples company that sells baked foods. It’s also the second-largest U.S. packaged bakery foods producer, also holding subsidiary brands in Europe within its portfolio.
As I write this article, FLO stock is currently seeing some volatility. Indeed, FLO stock has deviated from its long-term upward trajectory due to weaker-than-expected growth. However, I believe this temporary situation provides a great opportunity for patient investors to snap up one of the most consistent long-term stocks to invest in.
Currently, FLO stock offers a 3.7% forward dividend yield, boasting 21 consecutive years of dividend growth. It is currently changing hands below $25 per share, which is really compelling in my view.
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. TipRanks has consistently ranked him among the top 5% of experts as of August 2023. You can follow him on LinkedIn.
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The post What Are the Best Stocks to Invest in for the Long-Term? Our 3 Picks for August 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) is a major holding in the portfolios of most large hedge funds on Wall Street. That’s because AAPL stock is historically among the most solid long-term equities to own, and arguably the best option in the FAANG group. Recently, AAPL stock dropped about 8.5% from its peak due to a cooling tech rally.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is a major holding in the portfolios of most large hedge funds on Wall Street. That’s because AAPL stock is historically among the most solid long-term equities to own, and arguably the best option in the FAANG group. Recently, AAPL stock dropped about 8.5% from its peak due to a cooling tech rally.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is a major holding in the portfolios of most large hedge funds on Wall Street. That’s because AAPL stock is historically among the most solid long-term equities to own, and arguably the best option in the FAANG group. Recently, AAPL stock dropped about 8.5% from its peak due to a cooling tech rally.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is a major holding in the portfolios of most large hedge funds on Wall Street. That’s because AAPL stock is historically among the most solid long-term equities to own, and arguably the best option in the FAANG group. Recently, AAPL stock dropped about 8.5% from its peak due to a cooling tech rally.
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14385.0
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2023-08-09 00:00:00 UTC
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US STOCKS-Nasdaq, S&P 500 slip ahead of CPI data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-sp-500-slip-ahead-of-cpi-data
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nan
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nan
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By Bansari Mayur Kamdar and Johann M Cherian
Aug 9 (Reuters) - The tech-heavy Nasdaq and the S&P 500 fell on Wednesday ahead of a key inflation report this week after mostly dovish comments from U.S. Federal Reserve officials.
Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O shed between 0.6% and 2.5% in early trading.
"There's been a little bit of shine coming off the Nasdaq that coincides with some profit taking that occurred at the end of July," Robert Pavlik, senior portfolio manager at Dakota Wealth, said.
The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight year-over-year acceleration. On a month-to-month basis, consumer prices are seen increasing 0.2%, the same rate as in June.
Philadelphia Fed President Patrick Harker said on Tuesday the U.S. central bank may be at the stage where it can leave interest rates unchanged, barring any abrupt change in the direction of recent economic data.
However, some central bank officials are still leaning the other way, with Fed Governor Michelle Bowman on Monday saying the combination of still-elevated inflation and continued economic growth meant further rate increases are likely.
Traders expect an 86.5% chance of no rate hike at the Fed's next policy meeting in September, according to CME FedWatch Tool.
"The good news is we're starting to see more folks on the Federal Reserve saying that perhaps they may well be done (with rate hikes)," Art Hogan, chief market strategist at B Riley Wealth, said.
Wall Street's main indexes ended the previous session lower in a broad selloff after the downgrading of several small and mid-sized banks by credit rating agency Moody's.
Big banks extended losses on Wednesday, with Bank of America BAC.N and Wells Fargo WFC.N down 0.3% and 0.8%, respectively.
Adding to concerns about the global economy, China's consumer sector fell into deflation and factory-gate prices extended declines in July, as the world's second-largest economy struggled to revive demand.
At 10:02 a.m. ET, the Dow Jones Industrial Average .DJI was up 42.88 points, or 0.12%, at 35,357.37, the S&P 500 .SPX was down 2.24 points, or 0.05%, at 4,497.14, and the Nasdaq Composite .IXIC was down 53.88 points, or 0.39%, at 13,830.45.
Six of the top 11 S&P 500 sectors advanced, led by gains in energy stocks .SPNY, that rose 1.8%, touching a near six-month high tracking a jump in crude oil prices. O/R
Casino owner Penn Entertainment's PENN.O shares jumped 15.9% on a $2 billion deal with Walt Disney's ESPN DIS.N to launch a sports betting business.
Walt Disney's shares rose 0.9% ahead of its quarterly results due after markets close.
LyftLYFT.O signaled it would double down on competitive pricing to catch up with rival Uber UBER.N, taking the shine off its strong earnings forecast and sending the company's shares down 6.2%.
Of the 443 S&P 500 companies that have reported results as of Tuesday, 78.6% beat analyst expectations, according to Refinitiv data.
Advancing issues outnumbered decliners for a 1.29-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.12-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and four new lows, while the Nasdaq recorded 42 new highs and 79 new lows.
Federal Reserve vs Inflation https://tmsnrt.rs/47jUWgZ
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta)
((BansariMayur.Kamdar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O shed between 0.6% and 2.5% in early trading. By Bansari Mayur Kamdar and Johann M Cherian Aug 9 (Reuters) - The tech-heavy Nasdaq and the S&P 500 fell on Wednesday ahead of a key inflation report this week after mostly dovish comments from U.S. Federal Reserve officials. Philadelphia Fed President Patrick Harker said on Tuesday the U.S. central bank may be at the stage where it can leave interest rates unchanged, barring any abrupt change in the direction of recent economic data.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O shed between 0.6% and 2.5% in early trading. Walt Disney's shares rose 0.9% ahead of its quarterly results due after markets close. The S&P index recorded 11 new 52-week highs and four new lows, while the Nasdaq recorded 42 new highs and 79 new lows.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O shed between 0.6% and 2.5% in early trading. By Bansari Mayur Kamdar and Johann M Cherian Aug 9 (Reuters) - The tech-heavy Nasdaq and the S&P 500 fell on Wednesday ahead of a key inflation report this week after mostly dovish comments from U.S. Federal Reserve officials. However, some central bank officials are still leaning the other way, with Fed Governor Michelle Bowman on Monday saying the combination of still-elevated inflation and continued economic growth meant further rate increases are likely.
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Rate-sensitive megacap growth and technology stocks, that have led the Wall Street rally this year, such as Nvidia NVDA.O, Apple AAPL.O and Tesla TSLA.O shed between 0.6% and 2.5% in early trading. The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight year-over-year acceleration. Philadelphia Fed President Patrick Harker said on Tuesday the U.S. central bank may be at the stage where it can leave interest rates unchanged, barring any abrupt change in the direction of recent economic data.
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14386.0
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2023-08-09 00:00:00 UTC
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iShares Core S&P 500 ETF Experiences Big Inflow
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AAPL
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https://www.nasdaq.com/articles/ishares-core-sp-500-etf-experiences-big-inflow-7
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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 $1.2 billion dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 773,650,000 to 776,300,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is down about 0.6%, Microsoft Corporation (Symbol: MSFT) is down about 0.5%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.7%. 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 $450.78. 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:
Stock Splits
Top Ten Hedge Funds Holding NPCT
QRHC Average Annual Return
The views and 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 down about 0.6%, Microsoft Corporation (Symbol: MSFT) is down about 0.5%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.7%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is down about 0.6%, Microsoft Corporation (Symbol: MSFT) is down about 0.5%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.7%. 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 $450.78. 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 down about 0.6%, Microsoft Corporation (Symbol: MSFT) is down about 0.5%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.7%. 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 $1.2 billion dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 773,650,000 to 776,300,000). 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 $450.78.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is down about 0.6%, Microsoft Corporation (Symbol: MSFT) is down about 0.5%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.7%. 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 $1.2 billion dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 773,650,000 to 776,300,000). 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 $450.78.
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2023-08-09 00:00:00 UTC
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Ex-Dividend Reminder: Rockwell Automation, Apple and Dolby Laboratories
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AAPL
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-rockwell-automation-apple-and-dolby-laboratories
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 8/11/23, Rockwell Automation, Inc. (Symbol: ROK), Apple Inc (Symbol: AAPL), and Dolby Laboratories Inc (Symbol: DLB) will all trade ex-dividend for their respective upcoming dividends. Rockwell Automation, Inc. will pay its quarterly dividend of $1.18 on 9/11/23, Apple Inc will pay its quarterly dividend of $0.24 on 8/17/23, and Dolby Laboratories Inc will pay its quarterly dividend of $0.27 on 8/22/23. As a percentage of ROK's recent stock price of $305.24, this dividend works out to approximately 0.39%, so look for shares of Rockwell Automation, Inc. to trade 0.39% lower — all else being equal — when ROK shares open for trading on 8/11/23. Similarly, investors should look for AAPL to open 0.13% lower in price and for DLB to open 0.35% lower, all else being equal.
Below are dividend history charts for ROK, AAPL, and DLB, showing historical dividends prior to the most recent ones declared.
Rockwell Automation, Inc. (Symbol: ROK):
Apple Inc (Symbol: AAPL):
Dolby Laboratories Inc (Symbol: DLB):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.55% for Rockwell Automation, Inc., 0.53% for Apple Inc, and 1.40% for Dolby Laboratories Inc.
In Wednesday trading, Rockwell Automation, Inc. shares are currently off about 0.1%, Apple Inc shares are off about 0.1%, and Dolby Laboratories Inc shares are off about 0.7% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
FSFR Videos
Top Ten Hedge Funds Holding RONI
ARMH Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, on 8/11/23, Rockwell Automation, Inc. (Symbol: ROK), Apple Inc (Symbol: AAPL), and Dolby Laboratories Inc (Symbol: DLB) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AAPL to open 0.13% lower in price and for DLB to open 0.35% lower, all else being equal. Below are dividend history charts for ROK, AAPL, and DLB, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 8/11/23, Rockwell Automation, Inc. (Symbol: ROK), Apple Inc (Symbol: AAPL), and Dolby Laboratories Inc (Symbol: DLB) will all trade ex-dividend for their respective upcoming dividends. Rockwell Automation, Inc. (Symbol: ROK): Apple Inc (Symbol: AAPL): Dolby Laboratories Inc (Symbol: DLB): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AAPL to open 0.13% lower in price and for DLB to open 0.35% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 8/11/23, Rockwell Automation, Inc. (Symbol: ROK), Apple Inc (Symbol: AAPL), and Dolby Laboratories Inc (Symbol: DLB) will all trade ex-dividend for their respective upcoming dividends. Rockwell Automation, Inc. (Symbol: ROK): Apple Inc (Symbol: AAPL): Dolby Laboratories Inc (Symbol: DLB): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AAPL to open 0.13% lower in price and for DLB to open 0.35% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 8/11/23, Rockwell Automation, Inc. (Symbol: ROK), Apple Inc (Symbol: AAPL), and Dolby Laboratories Inc (Symbol: DLB) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AAPL to open 0.13% lower in price and for DLB to open 0.35% lower, all else being equal. Below are dividend history charts for ROK, AAPL, and DLB, showing historical dividends prior to the most recent ones declared.
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14388.0
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2023-08-09 00:00:00 UTC
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Opinion: These Will Be the 5 Biggest Stocks by 2030
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AAPL
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https://www.nasdaq.com/articles/opinion%3A-these-will-be-the-5-biggest-stocks-by-2030
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nan
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nan
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Only seven years ago, AT&T and General Electric were the eighth- and ninth-largest American companies by market cap, respectively. Today, AT&T has fallen to 81st, while General Electric is 65th. A lot can happen in only seven years.
So, which American companies will hold the top five spots in 2030? Here's how I see it.
Image source: Getty Images.
1. Microsoft
By 2030, I predict Microsoft (NASDAQ: MSFT) will sit atop the list as the largest American company by market cap, for two reasons.
First, Microsoft is already a giant. The company's current market cap of $2.4 trillion is second only to Apple (NASDAQ: AAPL). As recently as 2021, Microsoft surpassed Apple in market cap, albeit very briefly.
Second, Microsoft's core business is software, which I think will give it a leg up over the next seven years. Rapid advancements in artificial intelligence (AI) should drive massive productivity gains. And the companies that stand to benefit the most are those with ties to the cutting-edge firms behind those AI innovations.
Microsoft's long-standing partnership with ChatGPT maker OpenAI will give it a leg up in developing and integrating the best new innovations in AI. And that could propel the company right into the top spot.
2. Amazon
In a bit of an upset, I have Amazon (NASDAQ: AMZN) jumping into the No. 2 spot by 2030. Granted, Amazon has some ground to make up over the next seven years -- its market cap of $1.4 trillion is presently half that of Apple's $2.9 trillion.
Yet, Amazon has more than a few cards up its sleeve. Similar to Microsoft, Amazon should greatly benefit from the rise of AI. Every area of Amazon's business could utilize AI to run better, cheaper, and more efficiently.
What's more, Amazon's vast quantities of personalized data should help the company to develop better AI that can better predict consumer behavior -- leading to more effective search results, more convincing ads, and increased sales.
Finally, I expect Amazon Web Services (AWS) to hold on to its top spot in the lucrative cloud services market. With some forecasters predicting the overall cloud services market to exceed $2 trillion by 2030, Amazon should enjoy a hefty revenue stream from its cloud services segment.
3. Apple
Next, we come to Apple, which I predict will fall to No. 3 by 2030. In short, Apple's hardware sales have long been the company's bread and butter. Recently, however, there are some concerns brewing. Three of Apple's four hardware segments (iPhone, Mac, and iPad) showed year-over-year declines in revenue (-2%, -7%, and -20%, respectively). Even with Apple services revenue jumping 8%, total company revenue fell more than 1% year over year.
Image source: The Motley Fool
In the long run, that's bad news. Apple must either reinvigorate its hardware business or rapidly grow its services business if it's going to keep up with the likes of Microsoft and Amazon, which are both growing revenue at close to 10% year over year.
Nevertheless, Apple boasts strong brand loyalty, with its products straddling the line between luxury and everyday appeal. Don't expect Apple to fade immediately. However, given enough time, Apple's stock -- like its namesake fruit -- could be destined to fall back to earth.
4. Tesla
Let me be clear: Tesla (NASDAQ: TSLA) could be America's largest company by 2030. That might seem absurd, but the king of electric vehicles (EVs) is already the country's sixth-largest company with a market cap of $800 billion.
For Tesla to climb up the list, the company must clear several key hurdles.
First, production growth must continue. Tesla should produce roughly 1.8 million vehicles this year, which keeps the company on track to hit its 2030 goal of 20 million vehicles annually.
Second, Tesla must begin realizing economies of scale at its new production facilities. That will help the company halt -- and hopefully, reverse -- recent losses in gross margin, even if prices fall further.
Third, full self driving (FSD) must become a reality. While this third point is the most difficult to achieve, it offers the highest upside. FSD technology would catapult Tesla from simply an EV company to a transportation disrupter of massive scale.
If CEO Elon Musk and Tesla can pull it off, the sky is the limit for the company -- putting even the top spot within reach.
5. Nvidia
Finally, Nvidia (NASDAQ: NVDA) rounds out my top five, holding on to its position as the fifth-largest American company by market cap.
Nvidia is the world's leading maker of graphics processing units (GPUs). These powerful devices are the brains behind the world's supercomputers and, in turn, many of the awe-inspiring AI applications that have captivated the world this year.
And while competition in the field is growing -- notably from Advanced Micro Devices and Intel -- Nvidia maintains a solid lead. In the next two years alone, analysts expect Nvidia's revenue to more than double -- from $27 billion in fiscal year 2023 to $59 billion in fiscal year 2025.
With that sort of jaw-dropping growth, I think Nvidia can easily maintain a spot within the top five by 2030.
10 stocks we like better than Microsoft
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 Microsoft 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 1, 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, Amazon.com, Intel, Nvidia, and Tesla and has the following options: long November 2023 $80 calls on Advanced Micro Devices, short November 2023 $120 calls on Advanced Micro Devices, and short September 2023 $27 calls on Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Microsoft, Nvidia, and Tesla. 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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The company's current market cap of $2.4 trillion is second only to Apple (NASDAQ: AAPL). Microsoft's long-standing partnership with ChatGPT maker OpenAI will give it a leg up in developing and integrating the best new innovations in AI. What's more, Amazon's vast quantities of personalized data should help the company to develop better AI that can better predict consumer behavior -- leading to more effective search results, more convincing ads, and increased sales.
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The company's current market cap of $2.4 trillion is second only to Apple (NASDAQ: AAPL). Jake Lerch has positions in AT&T, Amazon.com, Intel, Nvidia, and Tesla and has the following options: long November 2023 $80 calls on Advanced Micro Devices, short November 2023 $120 calls on Advanced Micro Devices, and short September 2023 $27 calls on Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Microsoft, Nvidia, and Tesla.
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The company's current market cap of $2.4 trillion is second only to Apple (NASDAQ: AAPL). Microsoft By 2030, I predict Microsoft (NASDAQ: MSFT) will sit atop the list as the largest American company by market cap, for two reasons. Even with Apple services revenue jumping 8%, total company revenue fell more than 1% year over year.
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The company's current market cap of $2.4 trillion is second only to Apple (NASDAQ: AAPL). Apple Next, we come to Apple, which I predict will fall to No. Even with Apple services revenue jumping 8%, total company revenue fell more than 1% year over year.
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14389.0
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2023-08-09 00:00:00 UTC
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Is It Too Late to Buy Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/is-it-too-late-to-buy-apple-stock-5
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nan
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nan
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Apple (NASDAQ: AAPL) shares have skyrocketed roughly 140,000% since the company first went public in 1980. The tech giant has achieved the highest market cap in the world, surpassing $3 trillion earlier this year. Apple's success over the years has come thanks to its priority on quality products, offered alongside an easy-to-use design language.
This consistency has led to immense brand loyalty from consumers who would rather pay a premium for Apple products than turn to the competition. As a result, it's not a bad idea to consider adding Apple to your list of holdings.
Its massive stock growth over the years could indicate that the best time to invest in the iPhone manufacturer was long ago. However, leading market shares in multiple areas of consumer tech and expansions into new sectors suggest the company isn't done yet.
Here's why it's not too late to buy Apple stock.
The most to gain from a market recovery
Apple released its third quarter of 2023 earnings on Aug. 02, with macroeconomic headwinds causing declines across its product lineup. Its iPhone revenue slipped 2% year over year, Mac tumbled 7%, and iPad fell 20%. The period represented Apple's third-consecutive quarter of revenue declines, falling 1% to $82 billion.
The bright spot of the quarter was services, which rose 8% year over year and proved how lucrative the subscription-based business has become for the company.
Despite the challenging quarter, Apple has much to gain from easing inflation and the market's inevitable recovery. The tech company holds a 55% market share in smartphones, with similar dominance in tablets, smartwatches, and headphones. With leading shares across consumer tech, the company could benefit the most as spending rises alongside improving economic conditions.
Moreover, the company has proved its strength by performing better than the competition amid an economic downturn. For instance, in Q2 2023, iPhone sales fell 6%. However, the same period saw Samsung smartphone sales decline 37%, with Motorola's slipping 17%. Apple's resilience makes its stock a reliable long-term option.
Apple is investing heavily in generative AI
Artificial intelligence (AI) has been one of the biggest growth drivers in the stock market this year, with companies such as Amazon and Nvidia enjoying rallies of 66% and 217% since Jan. 1 based on their growing prospects in the sector. Consequently, countless companies have joined the industry, which is projected to expand at a compound annual growth of 37% through 2030. Apple has largely stayed away from the hype of AI this year. However, recent reports suggest the company could make a big splash in the industry in the coming years.
In Q3 2023, Apple spent about $23 billion on research and development, up by about $3 billion from the previous year. CEO Tim Cook told Reuters on Aug. 4 the increase was mainly driven by the company's expansion in generative AI. The news comes only weeks after Bloomberg reported the iPhone company had built a custom framework for creating large-language models and has developed its own version of OpenAI's ChatGPT that engineers call Apple GPT.
Apple is slightly late to the AI party compared to companies like Microsoft and Amazon. However, its nearly unrivaled dominance in consumer tech products could see it become the leading driver of AI adoption for the public. Its immensely popular products are an excellent tool to get its AI offerings into the hands of millions of consumers and grant it a solid position in the industry.
Apple's stock has risen almost 250% in the last five years, more than big tech companies such as Microsoft, Amazon, or Alphabet. The iPhone manufacturer has a history of offering investors consistent gains, with its market dominance making it one of the most reliable long-term investments available. Alongside a growing position in AI, it's not too late to benefit from Apple's solid outlook over the next five and ten years.
10 stocks we like better than Apple
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*Stock Advisor returns as of August 1, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) shares have skyrocketed roughly 140,000% since the company first went public in 1980. The most to gain from a market recovery Apple released its third quarter of 2023 earnings on Aug. 02, with macroeconomic headwinds causing declines across its product lineup. The news comes only weeks after Bloomberg reported the iPhone company had built a custom framework for creating large-language models and has developed its own version of OpenAI's ChatGPT that engineers call Apple GPT.
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Apple (NASDAQ: AAPL) shares have skyrocketed roughly 140,000% since the company first went public in 1980. The tech company holds a 55% market share in smartphones, with similar dominance in tablets, smartwatches, and headphones. The iPhone manufacturer has a history of offering investors consistent gains, with its market dominance making it one of the most reliable long-term investments available.
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Apple (NASDAQ: AAPL) shares have skyrocketed roughly 140,000% since the company first went public in 1980. Apple is investing heavily in generative AI Artificial intelligence (AI) has been one of the biggest growth drivers in the stock market this year, with companies such as Amazon and Nvidia enjoying rallies of 66% and 217% since Jan. 1 based on their growing prospects in the sector. Apple's stock has risen almost 250% in the last five years, more than big tech companies such as Microsoft, Amazon, or Alphabet.
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Apple (NASDAQ: AAPL) shares have skyrocketed roughly 140,000% since the company first went public in 1980. The tech company holds a 55% market share in smartphones, with similar dominance in tablets, smartwatches, and headphones. Apple is investing heavily in generative AI Artificial intelligence (AI) has been one of the biggest growth drivers in the stock market this year, with companies such as Amazon and Nvidia enjoying rallies of 66% and 217% since Jan. 1 based on their growing prospects in the sector.
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14390.0
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2023-08-09 00:00:00 UTC
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A Bull Market Is Coming: 2 Warren Buffett Stocks to Buy and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-2-warren-buffett-stocks-to-buy-and-hold-forever
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nan
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nan
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Few investors are better known than Warren Buffett, who is widely regarded as the greatest stock picker of all time. One of Buffett's signature qualities is his long-term approach to investing. He has been quoted as saying that his favorite holding period is forever. It's not surprising then that his conglomerate, Berkshire Hathaway, has an investment portfolio full of stocks worth holding on to for good.
Let's discuss two of them: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Whether a bull market is on the way or already present, here's why investors can safely park both stocks in their portfolios and forget about them through the next market run and well beyond.
JNJ data by YCharts
1. Johnson & Johnson
Johnson & Johnson doesn't feature prominently among Buffett's holdings -- that is, it isn't among the largest. Still, the drugmaker found its way there for a reason. J&J is the epitome of longevity in business. While few companies last over a couple of decades, Johnson & Johnson's rich history spans more than 100 years.
There are at least two factors that explain Johnson & Johnson's durability. First, as a healthcare company, it markets products that are always in demand, such as drugs and medical devices. Second, Johnson & Johnson has successfully created an internal culture of innovation. The company spends billions of dollars every year on research and development, typically leading to it constantly developing newer and better products.
These two factors should continue to drive Johnson & Johnson shares higher. The need for the products it sells won't subside anytime soon. It will only increase due to the world's aging population. On the other hand, Johnson & Johnson should remain committed to innovation. The dozens of products in its pipeline are a great sign of that.
Within its medtech segment, the company is looking to profit from the exciting robotic-assisted surgery (RAS) market with its robot device, Ottava. RAS devices allow physicians to perform minimally invasive surgeries with advantages such as less cutting of the skin, less bleeding and scarring, faster recovery times, and shorter hospital stays. Intuitive Surgical currently dominates this field, but there is an important long-term opportunity for Johnson & Johnson to exploit.
And then there is the company's dividend, which it has raised for the last 61 years straight. That makes Johnson & Johnson a Dividend King. The company is unlikely to risk ending that impressive streak, so expect more payout raises regularly.
Johnson & Johnson isn't without its risks. The company's recent legal challenges are particularly noteworthy. But in my view, they do little to hinder its long-term prospects. Johnson & Johnson is an excellent stock to buy and hold through bull and bear markets and should continue to deliver steady financial results.
2. Apple
Apple is probably Buffett's favorite stock, perhaps other than Berkshire Hathaway itself. While the company doesn't offer necessary goods, it has built a powerful reputation, brand name, and ecosystem. That's why people continue to buy Apple's costly gadgets even when the economy isn't doing so well. The company hasn't always delivered blowout results over the past two years, with its revenue even dropping slightly in its latest quarterly update.
But given that hardly anyone truly needs a new iPhone, not to mention the fact that there are plenty of cheaper alternatives, Apple's performance amid all the economic problems consumers have faced is impressive. That's one of the reasons why it is an outstanding stock to buy and hold.
Here is another: Apple's installed base of more than 2 billion devices. And it is hard to leave once you're plugged into the company's network. That's because Apple offers a range of services that are easy to access on its devices but not so easy to use once a customer jumps ship. Something as seemingly simple as transferring data and pictures from an iPhone to an Android device can be a headache.
In other words, Apple benefits from high switching costs. With the vast number of devices in its ecosystem, the company will continue expanding its high-margin services segment to squeeze more money out of its massive user base. The company has made solid headway into the fintech business, for instance. Elsewhere, it is also delving into health, notably by trying to integrate glucose monitoring into the Apple Watch.
This would likely represent a relatively small opportunity (in terms of revenue potential) for Apple, but the important point is that the company is working on more and more ways to serve its user base better. The company should remain an innovator that records excellent financial results for a long time, so investors can safely buy its stock and hold on to it for good.
10 stocks we like better than Johnson & Johnson
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 Johnson & Johnson 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 1, 2023
Prosper Junior Bakiny has positions in Intuitive Surgical and Johnson & Johnson. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Intuitive Surgical. The Motley Fool recommends Johnson & Johnson. 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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Let's discuss two of them: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). RAS devices allow physicians to perform minimally invasive surgeries with advantages such as less cutting of the skin, less bleeding and scarring, faster recovery times, and shorter hospital stays. But given that hardly anyone truly needs a new iPhone, not to mention the fact that there are plenty of cheaper alternatives, Apple's performance amid all the economic problems consumers have faced is impressive.
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Let's discuss two of them: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Johnson & Johnson is an excellent stock to buy and hold through bull and bear markets and should continue to deliver steady financial results. The company should remain an innovator that records excellent financial results for a long time, so investors can safely buy its stock and hold on to it for good.
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Let's discuss two of them: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Johnson & Johnson Johnson & Johnson doesn't feature prominently among Buffett's holdings -- that is, it isn't among the largest. Johnson & Johnson is an excellent stock to buy and hold through bull and bear markets and should continue to deliver steady financial results.
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Let's discuss two of them: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Johnson & Johnson isn't without its risks. Apple Apple is probably Buffett's favorite stock, perhaps other than Berkshire Hathaway itself.
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14391.0
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2023-08-09 00:00:00 UTC
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This Warren Buffett Stock Is a Screaming Buy. Here's Why.
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AAPL
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https://www.nasdaq.com/articles/this-warren-buffett-stock-is-a-screaming-buy.-heres-why.
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nan
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nan
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2023 has been generous so far to investors. Both the Nasdaq Composite and S&P 500 have been buoyant, returning 34% and 18% respectively. While the tech sector has enjoyed outsize returns so far this year, one Warren Buffett stock sticks out among the rest. Apple (NASDAQ: AAPL) stock is up 47% so far this year with its market capitalization recently eclipsing $3 trillion.
While that's all very impressive, investors should zoom out and take a look at the broader economic picture. Even though inflation is beginning to cool, consumers still face higher rates when compared to historical averages. Moreover, the Federal Reserve is continuing to raise interest rates, which has impacted consumer spending habits, especially in discretionary end markets.
Apple's latest financial results may appear mixed on the surface. But as I often encourage readers to do, taking a long-term approach to your investment horizon may paint a different picture. Let's dig into the report and analyze the company's current state of affairs.
Apple has mountains of cash
For the quarter ended July 1, Apple reported total revenue of $81.8 billion, a nominal decline of 1% from the prior-year period. Looking at the results more deeply, investors can see that sales decreased in each of the company's reportable geographic regions except for Europe and Greater China.
Given that the European economy in particular has been stagnant for several months, it is encouraging to see that Apple, which primarily sells luxury hardware devices, is seeing revenue accelerate in that region. Moreover, Apple CEO Tim Cook shared that Greater China's positive momentum was fueled by high iPhone demand. Cook said that Apple set a new June quarter record for what it calls "switchers," or people who previously used non-iPhone mobile devices, and witnessed a lot of this trend in the Greater China region.
Despite lower revenue across iPhone, iPad, and Mac devices, Apple still managed to turn a healthy profit, reporting a 2% year-over-year increase in net income to $19.9 billion. To really understand how strong Apple's financial position is, investors should take a look at the company's balance sheet. Despite a drop in revenue and only a 2% increase in profits, Apple still boasted $166 billion of cash and marketable securities on its balance sheet at the end of the quarter.
^SPX data by YCharts
What does the road ahead look like?
While the June quarter results were a bit of a mixed bag, Apple's management made sure to tame investor expectations for its near-term outlook. For the September quarter, the company expects Mac and iPad revenue to decline by double-digits year over year. However, this trend is not entirely attributable to current consumer spending sentiment.
Last year the company battled supply chain disruptions and factory shutdowns during the June quarter but was able to make up for the backlog during the subsequent months. Therefore, last year's September-quarter numbers were likely a bit inflated. On a positive note, management expects iPhone and services revenue to accelerate next quarter.
The big winner of the quarter was services, which grew 8% year over year to $21.2 billion. This was an all-time record driven by categories such as video, cloud, and payment services. Management's outlook of continued acceleration in services is a real testament to the sticky, engaged ecosystem Apple has created.
All things considered, I'll take this outlook as a win. The anticipated declines in iPad and Mac sales do not appear to be attributable to consumer demand or spending habits. Moreover, the iPhone results discussed above reflect how strong the demand is across the globe.
Should you buy the stock?
Apple stock is down roughly 5% since the company reported earnings. One of my favorite tech research analysts, Dan Ives of Wedbush Securities, increased his price target on Apple stock to $230 per share, implying 26% upside from current trading levels.
Now, I understand that the some investors yearn for the days of high-double-digit revenue growth fueled by product innovation. Additionally, one Wall Street bull's opinion is not reason enough to buy the stock. By looking at Apple's entire business, investors may come to see that the company is actually a pretty interesting case study.
One reason why Buffett loves Apple stock is its rich history of shareholder value creation over a long-term time horizon. In the most recent quarter alone, Apple returned over $24 billion to shareholders in the form of dividends and share repurchases.
Even during a quarter of slowing revenue and mundane profit growth, the company still manages to set records in different areas of its business. Perhaps most importantly, Apple is seeing strong demand in its flagship iPhone product and expects continued momentum from services. Furthermore, the company's healthy financial position alone makes it so hard to bet against in any economic climate.
To me, this is a really unique opportunity to buy the dip and take advantage of the sell-off. If history is any indicator, Apple could reach its next trillion-dollar milestone in the blink of an eye.
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 1, 2023
Adam Spatacco has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) stock is up 47% so far this year with its market capitalization recently eclipsing $3 trillion. Cook said that Apple set a new June quarter record for what it calls "switchers," or people who previously used non-iPhone mobile devices, and witnessed a lot of this trend in the Greater China region. Despite lower revenue across iPhone, iPad, and Mac devices, Apple still managed to turn a healthy profit, reporting a 2% year-over-year increase in net income to $19.9 billion.
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Apple (NASDAQ: AAPL) stock is up 47% so far this year with its market capitalization recently eclipsing $3 trillion. Moreover, Apple CEO Tim Cook shared that Greater China's positive momentum was fueled by high iPhone demand. Despite lower revenue across iPhone, iPad, and Mac devices, Apple still managed to turn a healthy profit, reporting a 2% year-over-year increase in net income to $19.9 billion.
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Apple (NASDAQ: AAPL) stock is up 47% so far this year with its market capitalization recently eclipsing $3 trillion. Apple has mountains of cash For the quarter ended July 1, Apple reported total revenue of $81.8 billion, a nominal decline of 1% from the prior-year period. While the June quarter results were a bit of a mixed bag, Apple's management made sure to tame investor expectations for its near-term outlook.
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Apple (NASDAQ: AAPL) stock is up 47% so far this year with its market capitalization recently eclipsing $3 trillion. To really understand how strong Apple's financial position is, investors should take a look at the company's balance sheet. For the September quarter, the company expects Mac and iPad revenue to decline by double-digits year over year.
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14392.0
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2023-08-09 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-3
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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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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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14393.0
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2023-08-09 00:00:00 UTC
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1 Green Flag for Apple in 2023, and 1 Red Flag
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AAPL
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https://www.nasdaq.com/articles/1-green-flag-for-apple-in-2023-and-1-red-flag-1
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nan
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nan
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Share prices of Apple (NASDAQ: AAPL) have tumbled 9% since Aug. 1 as a reaction to disappointing earnings results for the third quarter. The company did beat analyst estimates for earnings per share and revenue but both figures were flat year over year. Year-over-year declines across its product segments concerned investors and led to a stock dip.
The iPhone manufacturer faces uncertain market conditions that are affecting many companies and causing reductions in consumer spending. But these challenges aren't likely to be long-term, which suggests a potential investment opportunity. The company's shares rarely stay down for long, so it might be worth buying the dip.
Before going all in on a buy though, it might be helpful to look at the positives and potential negatives of the business. Here's one green flag and one red flag for Apple in 2023.
Green flag: Apple has a booming services business
Despite trouble in its product sales, Apple's services segment is proving to be resilient despite the uncertain economy. This segment includes its applications platform as well as services such as Apple TV+, Music, Arcade, Fitness+, and News+. Its growth has led it to now be the second-highest earning segment in the company after the iPhone.
In the fiscal 2023 third quarter (ended July 1), services enjoyed the most growth of any segment, with revenue rising 8% year over year and hitting $21 billion. Its stellar performance was not unusual, as services reported revenue growth of 14% in fiscal 2022, double the growth of the iPhone.
The subscription aspect of services tends to be particularly lucrative as Apple can pay once to produce a form of content and sell it millions of times over to consumers worldwide. As a result, the services segment's profit margins regularly hit about 70% while its product profit margins hover around 35%.
As Apple navigates an economic downturn, services will be crucial to profitability.
Red flag: Declines across Apple's product lineup
Apple's latest quarter triggered concern from investors for the company's products business. Its highest-earning segment, the iPhone, reported a 2% year-over-year revenue decline, with a 7% dip in Mac sales and a 20% tumble in iPad revenue. The only product category to see year-over-year growth was wearables, with a 2% rise in revenue for the quarter.
Challenges in its product segment led Apple to report its third consecutive quarterly revenue decline, slipping 1% year over year to $82 billion.
While the company did see reduced product sales, it continues to outperform the competition (which is seeing the same macroeconomic strain). According to Counterpoint Research, marketwide smartphone shipments fell 24% year over year in the second quarter. Samsung's smartphone sales in the U.S. plunged 37% year over year, with its market share decreasing from 27% to 23%. Meanwhile, iPhone sales dip a more moderate 6% year over year while gaining market share, rising from 52% to 55%.
Apple's answer to these issues
Apple management is aware of these issues and investors' concerns and is working to address them. For instance, Apple is making a major push into artificial intelligence (AI), which could attract more shoppers to its products over the long term. This year, the company unveiled several AI-enabled features to devices such as the iPhone and its AirPods Pro.
CEO Tim Cook said in the third-quarterearnings callthat a large portion of its $23 billion in research and development spending for the quarter went to generative AI initiatives. With leading market shares in many of its product categories, Apple could play a major role in the widespread adoption of AI services over the next decade.
What should investors do with this Apple news?
There's still reason to invest in Apple's stock. The company did have a financially poor 2023, with repeated declines in revenue. But its performance compared to the competition indicates it won't be down forever and continues to be one of the best investments in tech. Its stock price is up 240% in the last five years, significantly more than other FAANG stocks like Meta Platforms, Microsoft, Alphabet, and Amazon. Despite recent declines, Apple still has real potential to keep the growth going and continue to be an attractive long-term buy.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Share prices of Apple (NASDAQ: AAPL) have tumbled 9% since Aug. 1 as a reaction to disappointing earnings results for the third quarter. The subscription aspect of services tends to be particularly lucrative as Apple can pay once to produce a form of content and sell it millions of times over to consumers worldwide. CEO Tim Cook said in the third-quarterearnings callthat a large portion of its $23 billion in research and development spending for the quarter went to generative AI initiatives.
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Share prices of Apple (NASDAQ: AAPL) have tumbled 9% since Aug. 1 as a reaction to disappointing earnings results for the third quarter. Year-over-year declines across its product segments concerned investors and led to a stock dip. Red flag: Declines across Apple's product lineup Apple's latest quarter triggered concern from investors for the company's products business.
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Share prices of Apple (NASDAQ: AAPL) have tumbled 9% since Aug. 1 as a reaction to disappointing earnings results for the third quarter. Green flag: Apple has a booming services business Despite trouble in its product sales, Apple's services segment is proving to be resilient despite the uncertain economy. Red flag: Declines across Apple's product lineup Apple's latest quarter triggered concern from investors for the company's products business.
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Share prices of Apple (NASDAQ: AAPL) have tumbled 9% since Aug. 1 as a reaction to disappointing earnings results for the third quarter. The company did beat analyst estimates for earnings per share and revenue but both figures were flat year over year. Its growth has led it to now be the second-highest earning segment in the company after the iPhone.
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2023-08-09 00:00:00 UTC
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Better Buy: Amazon vs. Apple
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-amazon-vs.-apple-2
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nan
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nan
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Earnings season is in full swing, with many of the world's valuable companies experiencing major stock fluctuations over the last week. Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the biggest companies to report quarterly results in August.
Amazon enjoyed a glowing quarter, with many of its segments experiencing solid growth. Meanwhile, macroeconomic headwinds led to declining product sales for Apple.
However, both companies have strong long-term outlooks thanks to expanding positions in lucrative markets such as artificial intelligence (AI), cloud computing, and virtual/augmented reality. As a result, it's not a bad idea to consider adding one of these tech stocks to your portfolio before it's too late.
So, let's take a look at whether Amazon or Apple stock is the better buy right now.
Amazon
After being one of the hardest-hit companies amid the economic downturn over the last year, Amazon came back strong in the second quarter of 2023. The company's revenue climbed nearly 11% year over year to $134 billion. Meanwhile, its North American and international e-commerce segments reported double-digit revenue growth after facing steep declines in 2022. Moreover, the company's cloud platform, Amazon Web Services (AWS), reported a 12% increase in revenue, hitting $22 billion.
Amazon's successful quarter brought a 130% increase in operating income, mainly driven by increased sales in its North American segment. The positive results rallied investors, with its stock up 6% since the start of August.
Meanwhile, Amazon has massive potential in AI over the long term. The company invested heavily in the sector since the start of 2023, with CEO Andy Jassy saying in a recentearnings callthat multiple areas of the company's business have AI projects under development. Generative AI has become a major focus of Amazon's long-term roadmap, introducing several new tools to AWS since June and announcing a venture into chip development.
As the home of the world's largest cloud platform with AWS, as well as a recovering e-commerce business, Amazon's stock makes a compelling investment right now.
Apple
Apple didn't fare as well as Amazon in its latest quarter (Q3 2023), with revenue falling by 1% year over year after declines across its product lineup. Its iPhone segment, which makes up about 50% of the company's revenue, reported a 2% dip in sales, with a 7% tumble in its Mac business and a 20% decrease in iPad sales. The tech giant's stock subsequently fell 7% in the first week of August.
However, it's not all bad news for Apple. The company holds leading market shares across tech, including smartphones, tablets, smartwatches, and headphones. Its dominance in these industries has partially safeguarded its business amid an economic downturn and allowed it to outperform the competition.
For example, in Q2 2023, smartphone shipments fell 24% in the U.S., according to Counterpoint Research, with Samsung's and Motorola's sales declining 37% and 17%, respectively. Yet the same quarter saw iPhone sales decrease by a more moderate 6% as its smartphone market share rose from 52% to 55%.
Additionally, Apple is making a major push into AI. The company is gradually adding AI-enabled features across its product lineup, with CEO Tim Cook revealing its $23 billion in research and development spending in Q3 2023 was largely owed to its expansion in generative AI.
Is Amazon or Apple the better buy?
The choice between Amazon and Apple is complex. Amazon enjoyed a far better quarter than the iPhone company, yet has experienced more volatility in recent years. In fact, over the last five years, Amazon's stock has risen 53%, while Apple's has soared 250%. The significant difference suggests Apple is the most reliable choice.
When comparing value, Apple's forward price-to-earnings ratio of 30 is more than half of Amazon's 66, indicating that the iPhone company is the cheaper option. Meanwhile, Apple's stock dip could be the perfect time to buy, as the company's shares don't often stay down for long.
As a result, Apple is the better buy. However, Amazon remains an incredibly attractive option as its business recovers from recent macroeconomic headwinds and AWS expands its AI offerings.
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*Stock Advisor returns as of August 1, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com 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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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the biggest companies to report quarterly results in August. Generative AI has become a major focus of Amazon's long-term roadmap, introducing several new tools to AWS since June and announcing a venture into chip development. As the home of the world's largest cloud platform with AWS, as well as a recovering e-commerce business, Amazon's stock makes a compelling investment right now.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the biggest companies to report quarterly results in August. Moreover, the company's cloud platform, Amazon Web Services (AWS), reported a 12% increase in revenue, hitting $22 billion. As the home of the world's largest cloud platform with AWS, as well as a recovering e-commerce business, Amazon's stock makes a compelling investment right now.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the biggest companies to report quarterly results in August. So, let's take a look at whether Amazon or Apple stock is the better buy right now. Apple Apple didn't fare as well as Amazon in its latest quarter (Q3 2023), with revenue falling by 1% year over year after declines across its product lineup.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the biggest companies to report quarterly results in August. So, let's take a look at whether Amazon or Apple stock is the better buy right now. Amazon enjoyed a far better quarter than the iPhone company, yet has experienced more volatility in recent years.
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14395.0
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2023-08-09 00:00:00 UTC
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Here's Why I Don't Think Apple Stock Is a Buy Anymore
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AAPL
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https://www.nasdaq.com/articles/heres-why-i-dont-think-apple-stock-is-a-buy-anymore
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nan
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nan
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Fool.com contributor Parkev Tatevosian reviews Apple's (NASDAQ: AAPL) second-quarter earnings and downgrades his recommendation for Apple stock.
*Stock prices used were the afternoon prices of Aug. 6, 2023. The video was published on Aug. 8, 2023.
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*Stock Advisor returns as of August 1, 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 Apple's (NASDAQ: AAPL) second-quarter earnings and downgrades his recommendation for Apple stock. 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 reviews Apple's (NASDAQ: AAPL) second-quarter earnings and downgrades his recommendation for Apple stock. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple.
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Fool.com contributor Parkev Tatevosian reviews Apple's (NASDAQ: AAPL) second-quarter earnings and downgrades his recommendation for Apple stock. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian reviews Apple's (NASDAQ: AAPL) second-quarter earnings and downgrades his recommendation for Apple stock. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple.
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14396.0
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2023-08-09 00:00:00 UTC
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Will Slowing Streaming Growth Impact Disney's Q3 Results?
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AAPL
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https://www.nasdaq.com/articles/will-slowing-streaming-growth-impact-disneys-q3-results
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nan
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nan
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Disney (NYSE:DIS) is expected to publish its Q3 2023 results on August 9. We expect Disney’s revenues to come in at $22.5 billion for the quarter, slightly ahead of consensus estimates, marking an increase of over 4.5% versus last year. We expect earnings to stand at $ 0.99 per share, compared to a consensus of $0.97 per share. See our analysis of Disney Earnings Preview for an overview of how Disney’s revenues and earnings will likely trend.
So what are some of the trends that are likely to drive Disney’s results? We expect Disney’s theme park business to remain a key driver of the company’s growth, as potentially higher attendance, and growing spending, drive sales. For perspective, over Q2 FY’23 (the quarter ended March) the parks and experiences division saw sales grow by a robust 17% and this trend should hold up over Q3 as well. Disney’s sizable media and entertainment distribution could continue to see muted results amid economic headwinds and concern about the advertising market, as marketers have scaled back amid high inflation and cooling consumer spending. Investors will also be closely watching the performance of Disney’s streaming business, which has faced headwinds of late due to mounting competition, the impact of price hikes, and the loss of rights to stream the popular Indian Premier League. Over the last quarter, overall sales of the direct-to-consumer streaming business rose by about 12% to $5.51 billion, marking a slowdown from the 23% growth levels seen in Q2 FY’22.
So is Disney stock a buy in the current environment? Despite concerns in the streaming and media operations, we still remain positive on Disney stock for a couple of reasons. Disney is looking to unlock more value by restructuring its business while cutting costs to bolster profitability. The stock also remains down by over 55% from highs seen in 2021. We value Disney stock at about $117 per share, which is about 35% ahead of the current market price. See our analysis of Disney revenue for a closer look at the company’s key revenue streams and how they have been trending.
What if you’re looking for a portfolio that aims for long-term growth? Here’s a value portfolio that’s done much better than the market since 2016.
Returns Aug 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
DIS Return -3% -1% -17%
S&P 500 Return -2% 17% 100%
Trefis Multi-Strategy Portfolio -4% 24% 298%
[1] Month-to-date and year-to-date as of 8/5/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We expect Disney’s revenues to come in at $22.5 billion for the quarter, slightly ahead of consensus estimates, marking an increase of over 4.5% versus last year. We expect Disney’s theme park business to remain a key driver of the company’s growth, as potentially higher attendance, and growing spending, drive sales. For perspective, over Q2 FY’23 (the quarter ended March) the parks and experiences division saw sales grow by a robust 17% and this trend should hold up over Q3 as well.
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We expect Disney’s theme park business to remain a key driver of the company’s growth, as potentially higher attendance, and growing spending, drive sales. Disney’s sizable media and entertainment distribution could continue to see muted results amid economic headwinds and concern about the advertising market, as marketers have scaled back amid high inflation and cooling consumer spending. Total [2] DIS Return -3% -1% -17% S&P 500 Return -2% 17% 100% Trefis Multi-Strategy Portfolio -4% 24% 298% [1] Month-to-date and year-to-date as of 8/5/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See our analysis of Disney Earnings Preview for an overview of how Disney’s revenues and earnings will likely trend. We expect Disney’s theme park business to remain a key driver of the company’s growth, as potentially higher attendance, and growing spending, drive sales. Total [2] DIS Return -3% -1% -17% S&P 500 Return -2% 17% 100% Trefis Multi-Strategy Portfolio -4% 24% 298% [1] Month-to-date and year-to-date as of 8/5/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So what are some of the trends that are likely to drive Disney’s results? The stock also remains down by over 55% from highs seen in 2021. Here’s a value portfolio that’s done much better than the market since 2016.
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14397.0
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2023-08-08 00:00:00 UTC
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2 Dividend-Paying Tech Stocks to Buy in August
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https://www.nasdaq.com/articles/2-dividend-paying-tech-stocks-to-buy-in-august
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nan
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Tech stocks have been the place to be if you're looking for big gains. The tech-heavy Nasdaq-100 has returned 446% over the last 10 years, compared to a 221% return from the blue-chip-focused S&P 500.
Tech is known for growth and innovation, so it's not surprising to see Nasdaq stocks performing better than the rest of the market. What's even better is that many top tech stocks also pay growing dividends to shareholders, which can pad your returns over many years.
If you're looking for income and growth, here's why Apple (NASDAQ: AAPL) and Texas Instruments (NASDAQ: TXN) are two great dividend-paying tech stock choices in August.
1. Apple
Apple is one of the most valuable brands in the world. It has a loyal base of customers, and it churns out a large amount of free cash flow each year that fuels investment in new products and dividend payments to shareholders.
Apple's dividend yield is below average at 0.53%, but it pays out only 15% of its free cash flow in dividends. It could double its yield if it doubled its payout ratio. But what you're really getting with Apple's dividend is growth. The quarterly payment has increased annually for 12 consecutive years, more than doubling over the last decade. This is because Apple continues to grow its free cash flow, nearly doubling it to $100 billion annually over the last five years.
While its largest revenue source, the iPhone, saw sales decline this year thanks to macroeconomic headwinds, its installed base of devices continues to hit new highs. This is fueling growth in higher-margin services, such as apps, subscriptions, and AppleCare protection plans.
Apple is also seeing users of competing smartphone brands switch to the iPhone. The conversion of these customers, along with growth in services, reflects Apple's compelling lineup of offerings across hardware and software.
Apple is rewarding shareholders while continuing to invest in its future. It is set to launch the new Vision Pro headset next year, which gives it another product to expand its installed base of devices. Additionally, investment in new AI features for iOS could convert even more users to try the iPhone over the next several years.
Apple's cash flow streams, dividend growth, new product opportunities, and brand power should make the stock a solid core holding for any investor's portfolio for the long term.
2. Texas Instruments
Another tech stock that should be at the top of your list of dividend candidates is Texas Instruments. It is a leading supplier of analog and embedded processors that are used in electronic devices from data centers to electric toothbrushes. Considering the company's long operating history and shareholder-friendly management, this is one of the best dividend stocks to hold for the long haul.
TI has been around since the Great Depression. That speaks volumes about the company's resiliency. It has increased its dividend for 19 consecutive years and currently pays an above-average yield of 2.94%.
The company has several advantages. It has a massive customer base of around 100,000 worldwide, which means TI is not dependent on a specific market or industry for growth. It also does all its manufacturing and packaging in-house, which lowers costs, increases product quality, and raises margins.
Its manufacturing efficiency produces outstanding margins. While weak demand across consumer and industrial markets pressured revenue, TI generated an impressive 17% free cash flow margin in the second quarter. The company may already be turning a corner, as revenue grew 3% in the second quarter over the previous quarter.
Moreover, the company is always investing to improve its manufacturing efficiency and improve margins. Growing free cash flow and paying dividends to shareholders over the long term are management's priorities, which should also help bring its currently high cash payout ratio of 139% back to a more sustainable level under 100%.
The stock hasn't moved higher in two years, but with continued dividend increases, the yield is now sitting close to a three-year high.
Besides the dividend, a good reason to buy shares of Texas Instruments is the increasing amount of chips being implemented in products, especially automotive. This is a long-term tailwind that should fuel satisfactory returns for shareholders.
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 1, 2023
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Texas Instruments. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you're looking for income and growth, here's why Apple (NASDAQ: AAPL) and Texas Instruments (NASDAQ: TXN) are two great dividend-paying tech stock choices in August. It has a loyal base of customers, and it churns out a large amount of free cash flow each year that fuels investment in new products and dividend payments to shareholders. Apple's cash flow streams, dividend growth, new product opportunities, and brand power should make the stock a solid core holding for any investor's portfolio for the long term.
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If you're looking for income and growth, here's why Apple (NASDAQ: AAPL) and Texas Instruments (NASDAQ: TXN) are two great dividend-paying tech stock choices in August. What's even better is that many top tech stocks also pay growing dividends to shareholders, which can pad your returns over many years. It has a loyal base of customers, and it churns out a large amount of free cash flow each year that fuels investment in new products and dividend payments to shareholders.
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If you're looking for income and growth, here's why Apple (NASDAQ: AAPL) and Texas Instruments (NASDAQ: TXN) are two great dividend-paying tech stock choices in August. It has a loyal base of customers, and it churns out a large amount of free cash flow each year that fuels investment in new products and dividend payments to shareholders. Apple's cash flow streams, dividend growth, new product opportunities, and brand power should make the stock a solid core holding for any investor's portfolio for the long term.
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If you're looking for income and growth, here's why Apple (NASDAQ: AAPL) and Texas Instruments (NASDAQ: TXN) are two great dividend-paying tech stock choices in August. What's even better is that many top tech stocks also pay growing dividends to shareholders, which can pad your returns over many years. It has a loyal base of customers, and it churns out a large amount of free cash flow each year that fuels investment in new products and dividend payments to shareholders.
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2023-08-08 00:00:00 UTC
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2 No-Brainer Warren Buffett Stocks to Buy in August
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AAPL
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https://www.nasdaq.com/articles/2-no-brainer-warren-buffett-stocks-to-buy-in-august
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nan
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nan
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Warren Buffett is widely regarded as one of the most successful investors of all time, and for good reason. His diversified holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has delivered an impressive annualized return of 19.8% for its shareholders since 1965, beating the broader markets by a wide margin.
^SPX data by YCharts
Which Buffett stocks stand out as top buys in August? Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are both no-brainer picks this month. Here's why.
Amazon: A wide economic moat
Berkshire Hathaway, under the direction of Buffett protégés Ted Weschler and Todd Combs, began buying Amazon shares in 2019. Although Amazon is not an official Buffett pick, the legendary investor has always praised the entrepreneurial skills of CEO Jeff Bezos, as well as Amazon's dominant position in its core markets such as online retail, cloud computing, and digital advertising.
What makes Amazon a rock-solid pick for investors? In addition to its impressive earnings results in the second quarter of 2023, Amazon seems ready to resume its long-term growth trajectory after a pain-filled 2022, thanks to the strong performance of its lucrative advertising business and growing demand for its cloud computing service, Amazon Web Services.
According to Wall Street analysts, these two key growth engines should help increase annual revenue by a solid 11.5% in 2024. In the long run, Amazon's strategy of incorporating artificial intelligence and machine learning into its operations should also enhance its profitability and operational efficiency, and should also extend its competitive advantages in the fields of cloud computing, e-commerce, and advertising.
Bottom line: Amazon's wide economic moat across its various operating segments should translate into stellar returns over the next several years.
Apple: A centerpiece of Buffett's portfolio
Berkshire Hathaway has been gobbling up Apple shares since 2016. The tech giant currently accounts for nearly 47% of the conglomerate's stock holdings, making it Berkshire Hathaway's largest stock position by a wide margin. Buffett is a big fan of Apple and its iconic iPhone. In a recent commentary, for example, Buffett called the iPhone an "extraordinary product" and Apple a "better business than any we own."
What makes Apple such a great stock to own for the long term? Apple has a loyal and satisfied customer base that's willing to pay a premium for its products and services. Apple's operating system is easy to use and integrates seamlessly with its ecosystem of apps, devices, and services. This creates a high switching cost for customers who want to keep using their favorite features, such as iCloud, iMessage, FaceTime, and more. Apple also keeps innovating and launching new products and services that attract and retain customers, such as the Apple Watch, AirPods, Apple Pay, and Apple Fitness+.
Apple rewards its shareholders generously with dividends and share buybacks. In the last quarter alone, Apple returned $24 billion to its shareholders. Apple has also increased its dividend every year since 2013 and has reduced its share count by more than 38% since 2013. These actions enhance shareholder value and support the stock price over time.
All told, Apple is a fantastic company that Buffett loves for its quality, growth, and shareholder friendliness. Apple has a loyal customer base, a dominant market position, a culture of innovation, and a generous capital return policy. These factors make Apple a great stock to own for the long term.
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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 Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in Apple. The Motley Fool has positions in and recommends Amazon.com, 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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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are both no-brainer picks this month. In addition to its impressive earnings results in the second quarter of 2023, Amazon seems ready to resume its long-term growth trajectory after a pain-filled 2022, thanks to the strong performance of its lucrative advertising business and growing demand for its cloud computing service, Amazon Web Services. Bottom line: Amazon's wide economic moat across its various operating segments should translate into stellar returns over the next several years.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are both no-brainer picks this month. His diversified holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has delivered an impressive annualized return of 19.8% for its shareholders since 1965, beating the broader markets by a wide margin. The tech giant currently accounts for nearly 47% of the conglomerate's stock holdings, making it Berkshire Hathaway's largest stock position by a wide margin.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are both no-brainer picks this month. Apple: A centerpiece of Buffett's portfolio Berkshire Hathaway has been gobbling up Apple shares since 2016. Apple also keeps innovating and launching new products and services that attract and retain customers, such as the Apple Watch, AirPods, Apple Pay, and Apple Fitness+.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are both no-brainer picks this month. Apple has a loyal customer base, a dominant market position, a culture of innovation, and a generous capital return policy. That's right -- they think these 10 stocks are even better buys.
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2023-08-08 00:00:00 UTC
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Find the Next Nvidia: 3 Must-Watch AI Stocks
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https://www.nasdaq.com/articles/find-the-next-nvidia%3A-3-must-watch-ai-stocks
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Nvidia (NASDAQ:NVDA) shares took many investors by surprise in 2023. Shares have more than tripled year to date and currently carry a 232 P/E ratio. The forward P/E ratio of 59 makes shares look more palatable, but most of the upside potential came and went for investors.
Shares may continue to go higher and reward long-term investors, but the stock’s nearly parabolic growth rate since October 2022 makes it prime for a correction. Even if that correction doesn’t come anytime soon, other AI stocks have more reasonable valuations and can have more gains ahead.
Artificial intelligence is changing the way companies operate and serve customers. This technology will create many winners in the stock market that can reward long-term investors. Add these three AI stocks to your watchlist in the search for the next Nvidia.
Super Micro Computer (SMCI)
Source: Belozersky / Shutterstock
Although Nvidia’s year-to-date gains have been impressive, Super Micro Computer (NASDAQ:SMCI) shares have done better. SMCI stock more than quadrupled year to date, and the company’s preliminary earnings gave investors additional reasons to hold onto the stock.
The company’s guidance numbers comfortably exceeded prior guidance by wide margins. Fiscal Q4 guidance went from $1.7B-$1.9B to $2.15B-$2.18B. SMCI has experienced record orders with a rapidly growing backlog.
Although the company reported solid preliminary earnings, investors must look at a company’s valuation before buying shares. High growth makes a stock attractive, but it wouldn’t make much sense to buy a stock with a 1,000 P/E ratio.
Luckily, Super Micro Computer has a reasonable valuation, especially for a company with its growth potential. Shares currently trade at a 32 P/E ratio. Super Micro Computer’s AI infrastructure solutions help its clients develop and execute advanced AI and HPC applications. Its servers are critical for artificial intelligence and the metaverse.
Shares trade at a reasonable level, and the company’s growth is accelerating. The stock looks like one of the top picks in AI.
Taiwan Semiconductor Manufacturing (TSM)
Source: Ascannio / Shutterstock.com
Taiwan Semiconductor Manufacturing (NYSE:TSM) is one of the top semiconductor companies. The firm has many clients, including Nvidia and Apple (NASDAQ:AAPL). Taiwan Semiconductor Manufacturing has enabled roughly 85% of the worldwide semiconductor startup product prototypes.
Recent quarters of declining revenue and earnings have made the stock more affordable, heading into the AI boom. TSM shares currently trade at a 16 P/E ratio with a dividend yield approaching 2%.
Once revenue and earnings get back on track, shares can soar. The stock is down by more than 30% from its all-time high and faces headwinds. TSM has delivered an 18.6% earnings compounded annual growth rate since 1994. The company has faced more challenging headwinds in the past and has been very rewarding for long-term investors. The rising demand for AI combined with a low valuation makes TSM a worthy AI stock to watch.
Symbotic (SYM)
Source: Phonlamai Photo / Shutterstock.com
Symbotic (NASDAQ:SYM) shares have gained more value than Super Micro Computer shares on a year-to-date basis. The 345% year-to-date gain is a sight to behold. Let’s look at the force driving the momentum.
Symbotic’s AI products and software help clients reimagine the supply chain and oversee the flow of inventory. Walmart is one of many clients that have added Symbotic robots to its warehouses. This allows companies to deliver more goods at a quicker rate while reducing costs. Symbotic’s resources also take up less space in warehouses which provides more room for inventory.
Symbotic reported 77.6% year-over-year revenue growth in Fiscal Q3 as the figure jumped from $176 million to $312 million. The company’s adjusted EBITDA loss shrank from $22 million to only $3 million. Symbotic’s systems sales contract with GreenBox increased the company’s contracted backlog to approximately $23 billion. The company expects to generate $290 million to $310 million in revenue in Fiscal Q4.
High revenue growth and narrowing losses can turn this company into a long-term winner. It can be a good AI stock to keep your eye on.
On this date of publication, Marc Guberti held a long position in SMCI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
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The post Find the Next Nvidia: 3 Must-Watch AI Stocks appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The firm has many clients, including Nvidia and Apple (NASDAQ:AAPL). Shares may continue to go higher and reward long-term investors, but the stock’s nearly parabolic growth rate since October 2022 makes it prime for a correction. More From InvestorPlace The #1 AI Name for 2023 Could Be About to Ignite This $20.6 Trillion Wealth Shift Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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The firm has many clients, including Nvidia and Apple (NASDAQ:AAPL). Super Micro Computer (SMCI) Source: Belozersky / Shutterstock Although Nvidia’s year-to-date gains have been impressive, Super Micro Computer (NASDAQ:SMCI) shares have done better. Taiwan Semiconductor Manufacturing (TSM) Source: Ascannio / Shutterstock.com Taiwan Semiconductor Manufacturing (NYSE:TSM) is one of the top semiconductor companies.
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The firm has many clients, including Nvidia and Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nvidia (NASDAQ:NVDA) shares took many investors by surprise in 2023. SMCI stock more than quadrupled year to date, and the company’s preliminary earnings gave investors additional reasons to hold onto the stock.
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The firm has many clients, including Nvidia and Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nvidia (NASDAQ:NVDA) shares took many investors by surprise in 2023. Super Micro Computer (SMCI) Source: Belozersky / Shutterstock Although Nvidia’s year-to-date gains have been impressive, Super Micro Computer (NASDAQ:SMCI) shares have done better.
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