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14400.0
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2023-08-08 00:00:00 UTC
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The Year’s Top 3 Growth ETFs as of August 2023
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https://www.nasdaq.com/articles/the-years-top-3-growth-etfs-as-of-august-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Want a safe way to participate in this year’s market rally? Consider taking a position in a growth exchange-traded fund (ETF).
These are passive rather than actively managed investments that typically track the performance of a particular stock index or basket of equities. Benefits of putting money into ETFs include diversification and broad exposure, both of which help to lessen risk when it comes to investor’s capital.
ETFs typically have less fees than actively managed investment vehicles such as mutual funds, and they often pay quarterly dividends, which also make them attractive options. With the stock market rally looking likely to continue through year’s end, now is a good time to focus on securities with high growth potential. Growth ETFs can help to significantly boost a portfolio over time.
Here are three of the year’s top growth ETFs as of this month.
Invesco QQQ (QQQ)
Source: Shutterstock
Arguably the best-known ETF on this list is the Invesco QQQ (NASDAQ:QQQ). Known as the “Triple Q” or simply the “Q,” this exchange-traded fund tracks the Nasdaq 100 index and includes shares in many of the biggest and most popular technology companies such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). Given its focus on big tech, the QQQ has a history of delivering outsized gains to shareholders.
So far in 2023, the QQQ ETF is up 42%. Through five years, the fund boasts a gain of 107%, and that’s after the “tech wreck” of 2022. Other reasons to be bullish about this fund are the fact that there is no minimal investment required and the fee charged is reasonable at 0.20%. The fund holds 101 stocks, 57% of which are of technology companies. The QQQ currently has $205 billion of assets under management, and has a dividend yield of 0.54% for an annual payment to stockholders of $2.02 per share.
iShares S&P 500 Growth ETF (IVW)
Source: shutterstock.com/Imagentle
The iShares S&P 500 Growth ETF (NYSEARCA:IVW) is comprised of large-capitalization U.S. equities that are listed on the benchmark S&P 500 index and whose earnings are expected to grow at an above-average rate relative to the broader market. Top holdings in IVW include Apple, UnitedHealth Group (NYSE:UNH), and Visa (NYSE:V). In all, this ETF has 233 holdings.
It is not an exact mirror of the S&P 500 and its performance is a bit better, up 23% this year versus an 18% gain in the benchmark index. Management fees for the IVW ETF are reasonable at 0.18%, and the fund pays a quarterly dividend that yields 0.84% for an annual distribution of 59 cents.
In terms of performance, IVW has increased 66% over the last five years, again slightly better than the 59% return in the S&P 500. Investors looking for the security of an exchange-traded fund but who want better than market returns, the iShares S&P 500 Growth ETF should fit the bill.
Vanguard Russell 2000 ETF (VTWO)
The current market rally is broadening out and starting to include smaller stocks, making now an opportune time to invest in the Vanguard Russell 2000 ETF (NASDAQ: VTWO), comprised of 2,022 of the smallest publicly traded companies in the U.S. It’s a great way to track leading small-cap stocks in the U.S. or equities that have a market capitalization of $250 million to $2 billion.
Year to date, VTWO is up a healthy 12%. More gains could be in the offering if the market rally lifts all boats. Like most Vanguard funds, the Russell 2000 ETF comes with a rock bottom management expense ratio of 0.10%.
Top holdings in this fund include smaller companies that many investors may have never heard of, such as Rambus (NASDAQ:RMBS) and Chart Industries (NYSE:GTLS). The fund pays a quarterly dividend of 23 cents, which is good for a yield of 1.20%.
On the date of publication, Joel Baglole held long positions in AAPL and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post The Year’s Top 3 Growth ETFs as of August 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Known as the “Triple Q” or simply the “Q,” this exchange-traded fund tracks the Nasdaq 100 index and includes shares in many of the biggest and most popular technology companies such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). On the date of publication, Joel Baglole held long positions in AAPL and NVDA. Vanguard Russell 2000 ETF (VTWO) The current market rally is broadening out and starting to include smaller stocks, making now an opportune time to invest in the Vanguard Russell 2000 ETF (NASDAQ: VTWO), comprised of 2,022 of the smallest publicly traded companies in the U.S. It’s a great way to track leading small-cap stocks in the U.S. or equities that have a market capitalization of $250 million to $2 billion.
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Known as the “Triple Q” or simply the “Q,” this exchange-traded fund tracks the Nasdaq 100 index and includes shares in many of the biggest and most popular technology companies such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). On the date of publication, Joel Baglole held long positions in AAPL and NVDA. iShares S&P 500 Growth ETF (IVW) Source: shutterstock.com/Imagentle The iShares S&P 500 Growth ETF (NYSEARCA:IVW) is comprised of large-capitalization U.S. equities that are listed on the benchmark S&P 500 index and whose earnings are expected to grow at an above-average rate relative to the broader market.
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Known as the “Triple Q” or simply the “Q,” this exchange-traded fund tracks the Nasdaq 100 index and includes shares in many of the biggest and most popular technology companies such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). On the date of publication, Joel Baglole held long positions in AAPL and NVDA. iShares S&P 500 Growth ETF (IVW) Source: shutterstock.com/Imagentle The iShares S&P 500 Growth ETF (NYSEARCA:IVW) is comprised of large-capitalization U.S. equities that are listed on the benchmark S&P 500 index and whose earnings are expected to grow at an above-average rate relative to the broader market.
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Known as the “Triple Q” or simply the “Q,” this exchange-traded fund tracks the Nasdaq 100 index and includes shares in many of the biggest and most popular technology companies such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). On the date of publication, Joel Baglole held long positions in AAPL and NVDA. Here are three of the year’s top growth ETFs as of this month.
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14401.0
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2023-08-08 00:00:00 UTC
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The 7 Best Warren Buffett Stocks to Buy for August 2023
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AAPL
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https://www.nasdaq.com/articles/the-7-best-warren-buffett-stocks-to-buy-for-august-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Amid the ripples of a burgeoning bull market, one name consistently captures the imagination of investors: Warren Buffett. Warren Buffet’s top picks, nestled within Berkshire Hathaway (BRK-A, BRK-B) sprawling $382 billion portfolio, serve as a lodestar for those looking to grow their portfolios rapidly.
Since taking the reins in 1965, CEO he has meticulously curated a stock collection underpinned by robust dividend growth. I
t’s a testament to his unparalleled prowess in the realm of finance. Nevertheless, investors must understand that not all Warren Buffet’s top picks share the same luster.
Some shine a much brighter, setting them apart as the best Warren Buffett stocks. As we delve deeper, we’ll uncover seven of these gems, offering insights into the meticulous strategy of a man who remains unmatched in his investment acumen.
Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
Coca-Cola (NYSE:KO) emerges as one of Warren Buffet’s top picks amidst the current volatility in the market.
Not only has the beverage behemoth upheld a remarkable dividend growth streak for more than 60 years, but its recent second-quarter earnings radiate robustness despite the headwinds. Sales witnessed a hearty 6% spike, with organic sales leaping to a commendable 11%.
Its strong showing compelled the firm to elevate its full-year forecast for organic revenue growth from 7% to 8% to a remarkably 8% to 9%.
Inflationary winds haven’t dampened consumers’ thirst for Coca-Cola’s powerful offerings. Boasting a portfolio of more than 200 resilient brands, the firm’s global sales fountain shows no sign of drying up.
When investment oracle Warren Buffett earmarks roughly 7% of his portfolio to Coca-Cola, with a staggering $24.3 billion holding value, it’s a tacit nod to the brand’s unyielding stature in the global marketplace.
Occidental Petroleum (OXY)
Source: T. Schneider / Shutterstock.com
In the whirlwind dynamics of global energy markets, Occidental Petroleum (NYSE:OXY) has effectively managed to hold its ground, delivering relatively stable returns. That’s what makes it one of Warren Buffet’s top picks.
As a testament to his faith in Occidental, Buffett has plunged deep and owns almost a quarter of the company, valuing his investment at an incredible $13 billion.
Buffett’s optimism stretches beyond just numbers. Earlier this year, he praised the firm’s leadership, emphasizing their strategic acumen.
He said in a shareholder meeting in May that OXY has “the right management running it.” Hence, for those with an eye for value investing, The company’s enticing total yield of 7.35% should be hard to overlook, given it trades at just 1.9 times forward sales estimates.
Plus, with low break-even assets and an impressive $9.29 free cash flow per share, Occidental remains poised for long-term prosperity, even amid fluctuating oil prices.
Bank of America (BAC)
Source: Michael Vi / Shutterstock.com
As the financial sector paints a rather gloomy picture this year, Bank of America (NYSE:BAC) stands out from its peers.
America’s second-largest lender turned heads recently, outperforming across both lines. It reported impressive earnings-per-share of 88 cents, surpassing the anticipated 84 cents, and revenue of $25.3 billion, edging out the predicted $25.05 billion while demonstrating the bank’s formidable resilience and prowess.
A significant factor propelling Bank of America’s robust financials is the uptick in interest rates on both commercial and consumer loans.
While there has been a remarkable deceleration in loan and deposit growth, mainly due to the tempering U.S. economy in the face of rising interest rates, the long-term horizon appears promising for the banking giant.
Warren Buffett’s substantial stake in the bank echoes this sentiment. Owning a whopping 1.03 billion shares with a current valuation of $32.3 billion represents an assertive 9.31% of his portfolio.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
In the realm of consumer technology, Apple (NASDAQ:AAPL) stands out as an unparalleled titan, with its reputation and influence echoing globally.
The Cupertino colossus delivered an earnings beat in its most recent quarter. While Wall Street was eyeing earnings of $1.18 per share on sales of $81.8 billion, Apple subtly outperformed. The firm’s declaration of a 24-cent dividend stays consistent with its previous payout, underscoring its stability.
Diving deeper into the figures, the iconic iPhone raked in a staggering $39.7 billion, while the iPad and the Services segment clocked in revenues of $5.8 billion and $21.2 billion, respectively.
Accentuating Apple’s digital dominance, CEO Tim Cook highlighted how the firm now boasts over 1 billion active subscriptions.
Further endorsing Apple’s undying allure in the investment sphere, Berkshire Hathaway displays unwavering faith in the tech behemoth. Apple constitutes a hefty 49.27% of Berkshire’s equity portfolio, rendering it the conglomerate’s crown jewel.
Chevron (CVX)
Source: tishomir / Shutterstock.com
Chevron (NYSE:CVX) stands out from the pack with its immense stature in the hydrocarbon sphere, a darling of income stock investors.
Boasting a forward yield of over 3.8% paired with a sustainable payout ratio of 36%, it boasts a commendable record of 37 straight years of dividend growth.
Despite a slight contraction in its second-quarter net income and sales year-over-year, Chevron outpaced analyst predictions, solidifying its standing in its sector.
While the burgeoning electric vehicle market might have dimmed Chevron’s spotlight somewhat, a wider lens underscores the company’s enduring relevance in the energy landscape.
Berkshire’s acquisition of 132 million shares in Chevron further cemented the firm’s relevance, amounting to a hefty $21.1 billion. Such a significant stake is a ringing endorsement of Chevron’s unyielding prominence in the investment realm.
Visa (V)
Source: Kikinunchi / Shutterstock.com
In an era where global transactions seamlessly transcend borders, companies such as Visa (NYSE:V) have cemented their position as indispensable financial juggernauts. This ubiquity offers them enviable profit margins and powerful network effects.
With Visa’s emblematic blue, white, and gold logo seen in countless corners of the globe, it’s evident that they dominate the transaction terrain.
The company’s trajectory has hit a promising stride of late, with global travel volumes surging to unprecedented highs. Financially speaking, the company is on sturdy ground, with both its revenue and profit charts showcasing double-digit expansion, comfortably blowing past its historical averages.
Let’s not overlook its consistency in rewarding investors: for 14 consecutive years, Visa has augmented its dividend, currently yielding close to 1%.
This financial prowess hasn’t eluded the discerning eyes of Warren Buffett. His stake in Visa, 8.3 million worth $1.98 billion, may represent a modest 0.57% of Berkshire Hathaway’s portfolio, but it undeniably signals confidence in the payment giant’s lasting influence.
Johnson & Johnson (JNJ)
Source: Alexander Tolstykh / Shutterstock.com
Johnson & Johnson (NYSE:JNJ) is a beacon of consistency and growth in the vast pharmaceutical and consumer goods arena.
It posted its earnings results last month, marking another quarter where it surpassed both top and bottom-line expectations. Yet, intriguingly, the stock’s subdued reaction indicated investor apprehension.
Analysts project a steady mid-single-digit revenue growth for this year and the next. It should also have an earnings uptick between 5% and 6%.
A salient feature of J&J’s financial profile is its dividend yield, currently at 2.80% and an unparalleled track record of hiking dividends for 61 years straight. The recent earnings announcement highlighted a robust 6.4% year-over-year sales growth, outperforming revenue estimates by $860 million.
Though Buffett’s stake in Johnson & Johnson is relatively modest, with 327 thousand shares valued at $55.3 million, it’s still a testament to the company’s enduring appeal in the investment world.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post The 7 Best Warren Buffett Stocks to Buy for August 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com In the realm of consumer technology, Apple (NASDAQ:AAPL) stands out as an unparalleled titan, with its reputation and influence echoing globally. When investment oracle Warren Buffett earmarks roughly 7% of his portfolio to Coca-Cola, with a staggering $24.3 billion holding value, it’s a tacit nod to the brand’s unyielding stature in the global marketplace. He said in a shareholder meeting in May that OXY has “the right management running it.” Hence, for those with an eye for value investing, The company’s enticing total yield of 7.35% should be hard to overlook, given it trades at just 1.9 times forward sales estimates.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com In the realm of consumer technology, Apple (NASDAQ:AAPL) stands out as an unparalleled titan, with its reputation and influence echoing globally. Occidental Petroleum (OXY) Source: T. Schneider / Shutterstock.com In the whirlwind dynamics of global energy markets, Occidental Petroleum (NYSE:OXY) has effectively managed to hold its ground, delivering relatively stable returns. The recent earnings announcement highlighted a robust 6.4% year-over-year sales growth, outperforming revenue estimates by $860 million.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com In the realm of consumer technology, Apple (NASDAQ:AAPL) stands out as an unparalleled titan, with its reputation and influence echoing globally. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amid the ripples of a burgeoning bull market, one name consistently captures the imagination of investors: Warren Buffett. Warren Buffet’s top picks, nestled within Berkshire Hathaway (BRK-A, BRK-B) sprawling $382 billion portfolio, serve as a lodestar for those looking to grow their portfolios rapidly.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com In the realm of consumer technology, Apple (NASDAQ:AAPL) stands out as an unparalleled titan, with its reputation and influence echoing globally. Warren Buffet’s top picks, nestled within Berkshire Hathaway (BRK-A, BRK-B) sprawling $382 billion portfolio, serve as a lodestar for those looking to grow their portfolios rapidly. Boasting a forward yield of over 3.8% paired with a sustainable payout ratio of 36%, it boasts a commendable record of 37 straight years of dividend growth.
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14402.0
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2023-08-08 00:00:00 UTC
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The Year’s Top 3 Sector ETFs as of August 2023
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AAPL
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https://www.nasdaq.com/articles/the-years-top-3-sector-etfs-as-of-august-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
ETFs are a great investment vehicle for investors looking for decent returns over time and increased stability compared to just owning individual companies. The funds also allow increased exposure to some of the largest companies in the market at a reduced rate. With the increased uncertainty swirling around the stock market and a possible economic downturn looming, many investors have a much better opportunity to deal with the volatility with heavily diversified investments, as is the case with many different ETFs out there.
Top-ranked sector ETFs, like the ones I mention below, are important because they give a realistic snapshot of how different areas of the market are doing as a whole. I chose the best sector ETFs with the best returns over the past year.
Technology Select Sector SPDR Fund (XLK)
Source: Thitichaya Yajampa / Shutterstock.com
Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the S&P Technology Select Sector Index, composed of large-cap information technology companies in the S&P 500. The fund was created on December 16, 1998, and offers exposure to many companies in the technology space.
Technology Select Sector SPDR Fund has returned 18% over the past year. It has an expense ratio of 0.10%, a dividend yield of 0.76% paid out quarterly, and over $50 billion in assets under management.
The fund has over 65 holdings, primarily in software, semiconductors and technology hardware companies. Here are its top three holdings.
Apple (NASDAQ:AAPL) is an electronics manufacturer and entertainment service provider that makes up 23% of the total fund.
Microsoft (NASDAQ:MSFT) is a software service company that makes up 22% of the ETF.
Nvidia (NASDAQ:NVDA) is a company that produces computer hardware, such as semiconductors, and takes up 5% of XLK.
Energy Select Sector SPDR Fund (XLE)
Source: PopTika / Shutterstock
Energy Select Sector SPDR Fund (NYSEARCA:XLE) tracks the S&P Energy Select Sector Index, built with large-cap energy companies within the S&P 500. The fund was also created in 1998. And offers exposure to many different energy companies.
Energy Select Sector SPDR Fund has returned 18% over the past year. It has an expense ratio of 0.10%, a dividend yield of 3.67% paid out quarterly, and $37 billion in assets under management.
The fund has 26 holdings, 90% of which are oil and gas companies the remaining 10% are energy equipment companies. XLE’s top holdings include the following.
Exxon Mobil (NYSE:XOM) is an oil and natural gas exploration company that makes up 21% of the fund.
Chevron (NYSE:CVX) is an energy company that engages in the exploration and production of crude oil and refining petroleum products that make up 18%.
Schlumberger (NYSE:SLB) provides technology solutions for the oil and gas industry, making up 5% of the total ETF.
Industrial Select Sector SPDR Fund (XLI)
Source: Shutterstock
Industrial Select Sector SPDR Fund (NYSEARCA:XLI) tracks the S&P Industrial Select Sector Index, which has large-cap industrial companies in the S&P 500. The fund offers exposure to industrial companies with a solid record of returns.
Industrial Select Sector SPDR Fund has returned 14% over the past year. It has an expense ratio of 0.10%, a dividend yield of 1.54% paid quarterly, and $16 billion in assets under management.
The fund has 79 holdings, mainly filled with companies specializing in machinery, aerospace and defense, transportation and logistics. Some of XLI’s top holdings will likely look familiar to investors.
Caterpillar (NYSE:CAT) is a company that produces mining and construction equipment making up 4% of the fund.
Union Pacific (NYSE:UNP) operates in the railroad business, comprising 4% of the total fund.
Boeing (NYSE:BA) manufactures aircraft and works on many projects for the government. XLI’s holdings in this company also equal 4%.
As of this writing, Noah Bolton 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.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with
topics such as the stock market and financial news.
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The post The Year’s Top 3 Sector ETFs as of August 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) is an electronics manufacturer and entertainment service provider that makes up 23% of the total fund. With the increased uncertainty swirling around the stock market and a possible economic downturn looming, many investors have a much better opportunity to deal with the volatility with heavily diversified investments, as is the case with many different ETFs out there. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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Apple (NASDAQ:AAPL) is an electronics manufacturer and entertainment service provider that makes up 23% of the total fund. Technology Select Sector SPDR Fund (XLK) Source: Thitichaya Yajampa / Shutterstock.com Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the S&P Technology Select Sector Index, composed of large-cap information technology companies in the S&P 500. Energy Select Sector SPDR Fund (XLE) Source: PopTika / Shutterstock Energy Select Sector SPDR Fund (NYSEARCA:XLE) tracks the S&P Energy Select Sector Index, built with large-cap energy companies within the S&P 500.
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Apple (NASDAQ:AAPL) is an electronics manufacturer and entertainment service provider that makes up 23% of the total fund. Technology Select Sector SPDR Fund (XLK) Source: Thitichaya Yajampa / Shutterstock.com Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the S&P Technology Select Sector Index, composed of large-cap information technology companies in the S&P 500. Energy Select Sector SPDR Fund (XLE) Source: PopTika / Shutterstock Energy Select Sector SPDR Fund (NYSEARCA:XLE) tracks the S&P Energy Select Sector Index, built with large-cap energy companies within the S&P 500.
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Apple (NASDAQ:AAPL) is an electronics manufacturer and entertainment service provider that makes up 23% of the total fund. Here are its top three holdings. The fund has 26 holdings, 90% of which are oil and gas companies the remaining 10% are energy equipment companies.
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14403.0
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2023-08-08 00:00:00 UTC
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Apple's 'Tetris' movie ripped off tech writer's book, lawsuit says
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AAPL
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https://www.nasdaq.com/articles/apples-tetris-movie-ripped-off-tech-writers-book-lawsuit-says
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By Blake Brittain
Aug 8 (Reuters) - Dan Ackerman, editor in chief of the tech-news website Gizmodo, filed a lawsuit in Manhattan federal court on Monday accusing Apple AAPL.O, the Tetris Company and others of adapting his book about the landmark video game "Tetris" into a feature film without his permission.
Ackerman said he sent his book "The Tetris Effect" in 2016 to the Tetris Company, which allegedly copied it for the movie and threatened to sue him if he pursued his own film or television spinoffs.
The "Tetris" film premiered on the Apple TV platform in March. Ackerman asked the court for money damages equaling at least 6% of the film's $80 million production budget.
Representatives for Apple and the Tetris Company did not immediately respond to requests for comment on the lawsuit on Tuesday.
Ackerman's attorney Kevin Landau said on Tuesday that the lawsuit "aims to right a wrong and provide the respect and justice to the work, diligence and ownership of someone who is entitled to such respect and acknowledgment under the law."
Ackerman's "The Tetris Effect: The Game That Hypnotized the World" was published in 2016. The book describes the Soviet history of the popular puzzle game and the fight for its global licensing rights as a "Cold War thriller with a political intrigue angle," according to Ackerman's lawsuit.
The lawsuit said that Ackerman sent a pre-publication copy of the book to the Tetris Company earlier that year. He said the company refused to license its intellectual property for projects related to his book, dissuading producers who were interested in adapting it, and sent him a "strongly worded cease and desist letter."
According to the complaint, the company's CEO Maya Rogers and screenwriter Noah Pink began copying Ackerman's book for the "Tetris" screenplay starting in 2017. Ackerman said the film "liberally borrowed numerous specific sections and events of the book" and was "similar in almost all material respects" to it.
Ackerman accused Apple and the Tetris Company of copyright infringement, unfair competition, and illegally interfering with his business relations.
The case is Ackerman v. Pink, U.S. District Court for the Southern District of New York, No. 1:23-cv-06952.
For Ackerman: Kevin Landau of the Landau Group
For the defendants: attorney information not yet available
(Reporting by Blake Brittain in Washington)
((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 8 (Reuters) - Dan Ackerman, editor in chief of the tech-news website Gizmodo, filed a lawsuit in Manhattan federal court on Monday accusing Apple AAPL.O, the Tetris Company and others of adapting his book about the landmark video game "Tetris" into a feature film without his permission. The book describes the Soviet history of the popular puzzle game and the fight for its global licensing rights as a "Cold War thriller with a political intrigue angle," according to Ackerman's lawsuit. He said the company refused to license its intellectual property for projects related to his book, dissuading producers who were interested in adapting it, and sent him a "strongly worded cease and desist letter."
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By Blake Brittain Aug 8 (Reuters) - Dan Ackerman, editor in chief of the tech-news website Gizmodo, filed a lawsuit in Manhattan federal court on Monday accusing Apple AAPL.O, the Tetris Company and others of adapting his book about the landmark video game "Tetris" into a feature film without his permission. Ackerman's attorney Kevin Landau said on Tuesday that the lawsuit "aims to right a wrong and provide the respect and justice to the work, diligence and ownership of someone who is entitled to such respect and acknowledgment under the law." Ackerman accused Apple and the Tetris Company of copyright infringement, unfair competition, and illegally interfering with his business relations.
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By Blake Brittain Aug 8 (Reuters) - Dan Ackerman, editor in chief of the tech-news website Gizmodo, filed a lawsuit in Manhattan federal court on Monday accusing Apple AAPL.O, the Tetris Company and others of adapting his book about the landmark video game "Tetris" into a feature film without his permission. Ackerman said he sent his book "The Tetris Effect" in 2016 to the Tetris Company, which allegedly copied it for the movie and threatened to sue him if he pursued his own film or television spinoffs. The lawsuit said that Ackerman sent a pre-publication copy of the book to the Tetris Company earlier that year.
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By Blake Brittain Aug 8 (Reuters) - Dan Ackerman, editor in chief of the tech-news website Gizmodo, filed a lawsuit in Manhattan federal court on Monday accusing Apple AAPL.O, the Tetris Company and others of adapting his book about the landmark video game "Tetris" into a feature film without his permission. Ackerman said he sent his book "The Tetris Effect" in 2016 to the Tetris Company, which allegedly copied it for the movie and threatened to sue him if he pursued his own film or television spinoffs. Ackerman's attorney Kevin Landau said on Tuesday that the lawsuit "aims to right a wrong and provide the respect and justice to the work, diligence and ownership of someone who is entitled to such respect and acknowledgment under the law."
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14404.0
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2023-08-08 00:00:00 UTC
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The Year’s Top 3 Tech ETFs as of August 2023
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AAPL
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https://www.nasdaq.com/articles/the-years-top-3-tech-etfs-as-of-august-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market has roared back to life in 2023 and has largely outperformed expectations. Investors have begun pouring back into the stock market in search of bargains. If you’re looking for a way to invest in the technology sector broadly, one option you might want to consider is a technology-focused exchange-traded fund or one of those top tech ETFs.
For those who are unaware, an ETF is a type of investment security that tracks the performance of a basket of stocks, bonds, commodities, or other assets. ETFs are traded on stock exchanges, just like individual stocks, and they offer several advantages for investors, including high liquidity, diversification, and lower costs.
In this article, we will look at three tech-focused ETFs that performed the best in 2023. These ETFs will cover different segments of the technology sector, encompassing multiple verticals such as software, cloud computing, and information technology.
Invesco QQQ Trust (QQQ)
Source: SWKStock / Shutterstock
The Invesco QQQ Trust (NYSEARCA:QQQ) is an ETF that invests in companies that are part of the Nasdaq-100 Index. The Nasdaq-100 Index is an index that tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
The index includes many of the most prominent and influential names in the tech sector, such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOG). QQQ is the best-performing broadly focused tech ETF in 2023, with an impressive return at just about 40% as of Friday, August 4th. The ETF holds 101 stocks, with the top three holdings being Apple, Microsoft, and Amazon. These companies are among the giants in the tech world, with dominant market positions and a loyal customer base.
QQQ has the potential to continue to do well this year because of several factors. The Nasdaq-100 Index has largely bounced back from last year’s lackluster performance. The index is now up nearly 34%, trouncing all other major indices and thus benefitting ETFs like QQQ. US tech equities are expected to benefit from the long-term trends of innovation and disruption, as new technologies emerge and transform various industries and markets. Generative AI has already pushed the shares of many AI and machine learning focused companies upwards in 2023.
Vanguard Information Technology Index Fund ETF (VGT)
Source: Golden Dayz / Shutterstock.com
The Vanguard Information Technology Index Fund ETF (NYSEARCA:VGT) is an ETF that invests in companies that are part of the MSCI US Investable Market Information Technology 25/50 Index. This index is rather diversified, giving investors exposure to stocks from large, mid-size and small U.S. companies in the information technology sector.
The information technology sector encompasses various sub-verticals of the technology industry, such as software, hardware, internet services, semiconductors, and IT consulting. VGT is one of the best-performing tech ETFs in 2023, returning more than 36% year-to-date. The ETF holds 367 stocks, with the top three holdings being Apple, Microsoft, and Nvidia (NASDAQ:NVDA). Apple and Microsoft are leaders in the consumer electronics space, while Nvidia creates graphics cards powering not only a number of PCs but also today’s generative AI.
Similar to the Invesco QQQ Trust, VGT also has the potential to continue to do well this year. The information technology sector will probably remain resilient, especially with US economic growth indicators coming in better than expected. Furthermore, the U.S. Federal Reserve has been able to bring inflation down significantly without tipping the US economy into a severe recession. This could sustain both consumer and business spending in the short and medium term.
iShares Expanded Tech-Software Sector ETF (IGV)
Source: shutterstock.com/bangoland
The iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) is an ETF that invests in companies that are part of the S&P North American Expanded Technology Software Index. This index includes software stocks listed in both the United States and Canada. There is also exposure to North American companies from interactive home entertainment and interactive media and services industries. IGV happens to also be one of the best performing tech ETFs this year, with a 35% return YTD. The ETF holds 122 stocks, with the top three holdings being Adobe (NASDAQ:ADBE), Oracle (NYSE:ORCL), and Salesforce (NYSE:CRM).
The technological breakthroughs seen in artificial intelligence, machine learning, and quantum computing will continue to give IGV an upper hand in 2023. Companies, such as Oracle and Salesforce, have formulated plans to employ AI and ML tools in their software. Similarly, as Adobe works to close its acquisition of Figma, the iShares ETF will stand to benefit.
On the date of publication, Tyrik Torres 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.
Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.
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The post The Year’s Top 3 Tech ETFs as of August 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The index includes many of the most prominent and influential names in the tech sector, such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOG). Apple and Microsoft are leaders in the consumer electronics space, while Nvidia creates graphics cards powering not only a number of PCs but also today’s generative AI. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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The index includes many of the most prominent and influential names in the tech sector, such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOG). Invesco QQQ Trust (QQQ) Source: SWKStock / Shutterstock The Invesco QQQ Trust (NYSEARCA:QQQ) is an ETF that invests in companies that are part of the Nasdaq-100 Index. Vanguard Information Technology Index Fund ETF (VGT) Source: Golden Dayz / Shutterstock.com The Vanguard Information Technology Index Fund ETF (NYSEARCA:VGT) is an ETF that invests in companies that are part of the MSCI US Investable Market Information Technology 25/50 Index.
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The index includes many of the most prominent and influential names in the tech sector, such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOG). Invesco QQQ Trust (QQQ) Source: SWKStock / Shutterstock The Invesco QQQ Trust (NYSEARCA:QQQ) is an ETF that invests in companies that are part of the Nasdaq-100 Index. Vanguard Information Technology Index Fund ETF (VGT) Source: Golden Dayz / Shutterstock.com The Vanguard Information Technology Index Fund ETF (NYSEARCA:VGT) is an ETF that invests in companies that are part of the MSCI US Investable Market Information Technology 25/50 Index.
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The index includes many of the most prominent and influential names in the tech sector, such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOG). The Nasdaq-100 Index is an index that tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq stock exchange. Vanguard Information Technology Index Fund ETF (VGT) Source: Golden Dayz / Shutterstock.com The Vanguard Information Technology Index Fund ETF (NYSEARCA:VGT) is an ETF that invests in companies that are part of the MSCI US Investable Market Information Technology 25/50 Index.
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14405.0
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2023-08-08 00:00:00 UTC
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Apple's $3 Trillion Valuation May Be Gone for Good
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AAPL
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https://www.nasdaq.com/articles/apples-%243-trillion-valuation-may-be-gone-for-good
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nan
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nan
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Shares of Apple (NASDAQ: AAPL) slipped last week following a quarterly report that was mostly bad news. Revenue slumped, operating income was down, and the iconic iPhone suffered a sales decline. Apple's sprawling services segment was a bright spot, but it wasn't enough to push the headline numbers higher.
Apple stock had been rallying this year, briefly pushing the company's market capitalization above $3 trillion. Shares have now dipped below that level. Given Apple's optimistic valuation, the stock may be stuck for quite some time below the $3 trillion mark.
Slumping sales
The pandemic is over, and that's not good news for sales of Apple products. Consumers aren't snapping up iPhones and Macs like there's no tomorrow anymore.
Apple's fiscal third quarter, which ended July 1, was far from impressive. Total revenue sank 1.4% year over year, driven by a 4.7% decline in product revenue. The iPhone, which accounts for nearly half of Apple's total revenue, suffered a 2.5% sales decline. Sales of Macs were down 7.3%, while sales of iPads tumbled 19.8%. Looking ahead to the fourth quarter, Apple expects its total revenue to decline by a similar amount, and for both Macs and iPads to suffer double-digit declines.
Sales in the wearables, home, and accessories segment were up 2.5%, while services revenue rose 8.2%. Services revenue topped $21 billion in the third quarter, but it still wasn't big enough to overcome declining hardware sales.
While Apple's earnings per share increased to $1.26 in the third quarter, compared to $1.20 in the prior-year period, that earnings growth was the result of a lower tax rate and share buybacks. Operating income was down slightly year over year.
Tough to justify
Apple is a highly profitable company. On $81.8 billion in revenue in the third quarter, the company generated $19.9 billion of net income.
How much you're willing to pay for a stock depends not only on what earnings look like today, but also on what they'll look like in the future. Apple isn't growing right now, and it's difficult to see a path forward that's any better than sluggish growth. The iPhone business is mature, and while services revenue is growing, it's not growing all that fast.
Apple has at least one moonshot coming up in the form of its Vision Pro mixed reality headset. But the $3,500 device is unlikely to move the needle initially given the sky-high price tag, and it may never be a hit. The product looks like a solution in search of a problem.
Apple's market capitalization sat at $2.86 trillion at the end of last week. Based on the average analyst estimate for full-year earnings, Apple stock trades for more than 30 times earnings. Excluding the pandemic, this is the most expensive Apple stock has been in at least a decade. Does that make sense? In my opinion, no.
In an ultra-low interest rate world where the risk-free option provides basically no return at all, paying 30 times earnings for Apple stock could be a reasonable thing to do. But that's not the world we live in anymore. Investors can get a 5.5% annual return buying short-term U.S. . Paying through the nose for a no-growth stock like Apple is incredibly risky.
Maybe Apple's Vision Pro will be a surprise hit and restart the company's growth. Or maybe Apple has another major product launch up its sleeve. But the most likely scenario looks like sluggish hardware growth coupled with somewhat less sluggish services growth. To me, paying 30 times earnings for that isn't appealing at all. I'll take another look if and when Apple trades for a more reasonable price.
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Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple (NASDAQ: AAPL) slipped last week following a quarterly report that was mostly bad news. Apple's sprawling services segment was a bright spot, but it wasn't enough to push the headline numbers higher. Services revenue topped $21 billion in the third quarter, but it still wasn't big enough to overcome declining hardware sales.
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Shares of Apple (NASDAQ: AAPL) slipped last week following a quarterly report that was mostly bad news. Revenue slumped, operating income was down, and the iconic iPhone suffered a sales decline. Apple stock had been rallying this year, briefly pushing the company's market capitalization above $3 trillion.
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Shares of Apple (NASDAQ: AAPL) slipped last week following a quarterly report that was mostly bad news. Based on the average analyst estimate for full-year earnings, Apple stock trades for more than 30 times earnings. In an ultra-low interest rate world where the risk-free option provides basically no return at all, paying 30 times earnings for Apple stock could be a reasonable thing to do.
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Shares of Apple (NASDAQ: AAPL) slipped last week following a quarterly report that was mostly bad news. Slumping sales The pandemic is over, and that's not good news for sales of Apple products. Services revenue topped $21 billion in the third quarter, but it still wasn't big enough to overcome declining hardware sales.
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14406.0
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2023-08-08 00:00:00 UTC
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AAPL Quantitative Stock Analysis - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-warren-buffett-4
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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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14407.0
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2023-08-08 00:00:00 UTC
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5 Top-Performing ETFs of Last Week
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AAPL
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https://www.nasdaq.com/articles/5-top-performing-etfs-of-last-week-1
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nan
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nan
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Wall Street delivered downbeat performances last week with the S&P 500 losing 2.3%, the Dow Jones retreating 1.1%, the Nasdaq Composite falling 2.9% and the Russell 2000 dropping 1.2% (read: Time for Value ETFs as Buffett Indicator Signals Caution?).
Notably, Rating agency Fitch downgraded the United States’ credit rating to AA+ from AAA last week, expecting fiscal deterioration over the next three years and repeated last minute debt ceiling negotiations that can pressurize the government’s ability to pay its bills.
Fitch initially raised concerns about a potential downgrade in May and continued to support that stance in June after the resolution of the debt ceiling crisis. The agency, however, stated its intention to conclude the review in the third quarter of the current year, per Reuters, quoted on Yahoo Finance (read: ETF Areas in Focus on Fitch Downgrade of Credit Rating).
The move weighed both on the stock and bond markets. The benchmark U.S. treasury yields hit the highest levels since November. The benchmark U.S. treasury yield started the week at 3.97%, hit a high of 4.20% on Aug 3, closed the week at 4.05% (read: Inverse Treasury ETFs to Play as 10-Yr Yield at Highest Since November).
If this was not enough, ADP reported much stronger private sector job gains in July than economists expected. Private sector jobs increased by 324,000 in July, following a revised 455,000 increase in June. The data breezed past economists’ expectations (surveyed by FactSet) of 185,000 job creations, as quoted on Barrons.
While this piece of information triggered the chances of further Fed rate hikes, U.S. non-farm payrolls numbers came in at light on Aug 4 and quelled the Fed rate hike bet a bit. The U.S. economy created 187,000 jobs in July of 2023, below market expectations of 200,000 and following a downwardly revised 185,000 in June.
Among the key earnings releases, Amazon AMZN shares soared after reporting a blockbuster result while Apple AAPL shares slumped as slowing hardware sales. Overall, the broader market was edgy and the volatility-gauging index CBOE Volatility Index (VIX) gained 24.1% last week. Oil prices remained steady with WTI crude ETF United States Oil ETF USO adding 1.4% last week.
Against this backdrop, below we highlight a few winning ETFs of last week.
ETFs in Focus
Simplify Interest Rate Hedge ETF PFIX – Up 12.2%
The Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements arising from rising long-term interest rates, and to benefit from market stress when fixed income volatility increases, while providing the potential for income. The fund charges 50 bps in fees.
Simplify Tail Risk Strategy ETF CYA – Up 11.2%
The Simplify Tail Risk Strategy ETF seeks to provide investors with a standalone solution for hedging diversified portfolios against severe equity market selloffs. The fund charges 84 bps in fees.
AXS Short Innovation Daily ETF SARK – Up 8.5%
The AXS Short Innovation Daily ETF seeks the daily inverse investment results and is intended to be used as a short-term trading vehicle. The fund charges 75 bps in fees.
YieldMax AMZN Option Income Strategy ETF AMZY – Up 6.7%
The YieldMax AMZN Option Income Strategy ETF is an actively managed fund that seeks to generate monthly income by selling/writing call options on AMZN. The fund charges 99 bps in fees.
Advocate Rising Rate Hedge ETF RRH – Up 4.4%
The Advocate Rising Rate Hedge ETF is a multi-asset ETF that seeks to generate capital appreciation during periods of rising long term interest rates, specifically interest rates with maturities of five years or longer. The fund charges 85 bps in fees.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
United States Oil ETF (USO): ETF Research Reports
Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports
Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports
Advocate Rising Rate Hedge ETF (RRH): ETF Research Reports
AXS Short Innovation Daily ETF (SARK): ETF Research Reports
YieldMax AMZN Option Income Strategy ETF (AMZY): 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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Among the key earnings releases, Amazon AMZN shares soared after reporting a blockbuster result while Apple AAPL shares slumped as slowing hardware sales. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report United States Oil ETF (USO): ETF Research Reports Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports Advocate Rising Rate Hedge ETF (RRH): ETF Research Reports AXS Short Innovation Daily ETF (SARK): ETF Research Reports YieldMax AMZN Option Income Strategy ETF (AMZY): ETF Research Reports To read this article on Zacks.com click here. Wall Street delivered downbeat performances last week with the S&P 500 losing 2.3%, the Dow Jones retreating 1.1%, the Nasdaq Composite falling 2.9% and the Russell 2000 dropping 1.2% (read: Time for Value ETFs as Buffett Indicator Signals Caution?).
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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 United States Oil ETF (USO): ETF Research Reports Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports Advocate Rising Rate Hedge ETF (RRH): ETF Research Reports AXS Short Innovation Daily ETF (SARK): ETF Research Reports YieldMax AMZN Option Income Strategy ETF (AMZY): ETF Research Reports To read this article on Zacks.com click here. Among the key earnings releases, Amazon AMZN shares soared after reporting a blockbuster result while Apple AAPL shares slumped as slowing hardware sales. ETFs in Focus Simplify Interest Rate Hedge ETF PFIX – Up 12.2% The Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements arising from rising long-term interest rates, and to benefit from market stress when fixed income volatility increases, while providing the potential for income.
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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 United States Oil ETF (USO): ETF Research Reports Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports Advocate Rising Rate Hedge ETF (RRH): ETF Research Reports AXS Short Innovation Daily ETF (SARK): ETF Research Reports YieldMax AMZN Option Income Strategy ETF (AMZY): ETF Research Reports To read this article on Zacks.com click here. Among the key earnings releases, Amazon AMZN shares soared after reporting a blockbuster result while Apple AAPL shares slumped as slowing hardware sales. ETFs in Focus Simplify Interest Rate Hedge ETF PFIX – Up 12.2% The Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements arising from rising long-term interest rates, and to benefit from market stress when fixed income volatility increases, while providing the potential for income.
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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 United States Oil ETF (USO): ETF Research Reports Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports Advocate Rising Rate Hedge ETF (RRH): ETF Research Reports AXS Short Innovation Daily ETF (SARK): ETF Research Reports YieldMax AMZN Option Income Strategy ETF (AMZY): ETF Research Reports To read this article on Zacks.com click here. Among the key earnings releases, Amazon AMZN shares soared after reporting a blockbuster result while Apple AAPL shares slumped as slowing hardware sales. Notably, Rating agency Fitch downgraded the United States’ credit rating to AA+ from AAA last week, expecting fiscal deterioration over the next three years and repeated last minute debt ceiling negotiations that can pressurize the government’s ability to pay its bills.
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14408.0
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2023-08-08 00:00:00 UTC
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Apple and Samsung to invest in SoftBank's Arm at IPO -Nikkei
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AAPL
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https://www.nasdaq.com/articles/apple-and-samsung-to-invest-in-softbanks-arm-at-ipo-nikkei
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nan
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nan
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TOKYO, Aug 8 (Reuters) - Apple AAPL.O and Samsung Electronics 005930.KS will invest in SoftBank Group 9984.T-owned chip designer Arm at its initial public offering, which is expected in September, Japan's Nikkei newspaper reported.
(Reporting by Anton Bridge, Editing by Louise Heavens)
((Anton.Bridge@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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TOKYO, Aug 8 (Reuters) - Apple AAPL.O and Samsung Electronics 005930.KS will invest in SoftBank Group 9984.T-owned chip designer Arm at its initial public offering, which is expected in September, Japan's Nikkei newspaper reported. (Reporting by Anton Bridge, Editing by Louise Heavens) ((Anton.Bridge@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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TOKYO, Aug 8 (Reuters) - Apple AAPL.O and Samsung Electronics 005930.KS will invest in SoftBank Group 9984.T-owned chip designer Arm at its initial public offering, which is expected in September, Japan's Nikkei newspaper reported. (Reporting by Anton Bridge, Editing by Louise Heavens) ((Anton.Bridge@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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TOKYO, Aug 8 (Reuters) - Apple AAPL.O and Samsung Electronics 005930.KS will invest in SoftBank Group 9984.T-owned chip designer Arm at its initial public offering, which is expected in September, Japan's Nikkei newspaper reported. (Reporting by Anton Bridge, Editing by Louise Heavens) ((Anton.Bridge@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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TOKYO, Aug 8 (Reuters) - Apple AAPL.O and Samsung Electronics 005930.KS will invest in SoftBank Group 9984.T-owned chip designer Arm at its initial public offering, which is expected in September, Japan's Nikkei newspaper reported. (Reporting by Anton Bridge, Editing by Louise Heavens) ((Anton.Bridge@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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14409.0
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2023-08-08 00:00:00 UTC
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Are the Good Times Over for Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/are-the-good-times-over-for-apple-stock
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nan
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nan
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Only one week ago, shares of Apple (NASDAQ: AAPL) were up more than 50% year to date. The giant tech stock was enjoying one of its best starts in a long time.
Then Apple announced its fiscal 2023 third-quarter results. Its shares sank over the next few days with no rebound yet in sight. Are the good times over for Apple stock?
Plenty of bad news
Apple reported revenue of $81.8 billion in fiscal Q3, down 1.4% from the prior-year period. This marked the third consecutive quarter of year-over-year revenue declines.
Nearly all of Apple's most popular products experienced weakness. iPhone sales fell nearly 2.5% year over year to $39.7 billion. The picture was even worse for iPads and Macs, with sales declines of 19.8% and 7.3%, respectively.
Apple did manage to grow its earnings by around 2.2%. However, this modest increase was only possible because the company's provision for income taxes was well below the level in the year-ago period.
Investors shouldn't expect significant near-term improvement. Apple CFO Luca Maestri said in the quarterly conference call that revenue in fiscal Q4 should be similar to the level generated in Q3.
None of this is absolutely horrible news. However, Apple's shares continue to trade at a forward price-to-earnings multiple of over 27.5x. It's hard to justify such a lofty valuation based on the company's recent financial performance.
More to the story
Investors have cause to be disappointed in Apple's latest update. However, there is more to the story.
The brightest spot for Apple right now is its services business. Services revenue of $21.2 billion set an all-time record. Several categories performed especially well, including App Store and Apple Music.
Apple reported its highest number of customers switching to iPhones ever for a June quarter. Customer satisfaction remains at sky-high levels, with 451 Research recently finding 98% U.S. customer satisfaction for the iPhone 14 lineup.
The steep decline in iPad and Mac sales was largely due to a tough year-over-year comparison. Sales for both products surged in the prior-year period due to pent-up demand resulting from previous supply disruptions.
Apple's wearables revenue continues to grow. The company is also excited about next year's launch of its Vision Pro mixed-reality headset. Apple CEO Tim Cook said that it's "the most advanced personal electronics device ever created."
Importantly for investors, Apple continues to put its huge cash stockpile to good use. In fiscal Q3, the company paid $3.8 billion in dividends and bought back around $18 billion of its shares.
An easy answer
I think there's an easy answer to the question posed earlier: The good times are unequivocably not over for Apple stock. One disappointing quarterly update doesn't change the overall story for any company, especially one with such an impressive track record of success as Apple.
To be sure, Apple isn't firing on all cylinders as it has in the past. The company faces currency headwinds as well as a challenging macroeconomic environment. It's also more difficult to deliver impressive growth with a market cap of close to $3 trillion.
In my view, Apple's shares could be range-bound for a while. The lack of growth combined with the stock's valuation might not be overly attractive to many investors.
However, I suspect that the current pullback could also be an opportunity for long-term investors. Apple's ecosystem remains strong. The company will almost certainly introduce new products in the future that will provide major catalysts. People have written Apple off in the past only to regret it later. I think doing the same now would be a mistake.
10 stocks we like better than Apple
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Keith Speights 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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Only one week ago, shares of Apple (NASDAQ: AAPL) were up more than 50% year to date. Apple CFO Luca Maestri said in the quarterly conference call that revenue in fiscal Q4 should be similar to the level generated in Q3. Sales for both products surged in the prior-year period due to pent-up demand resulting from previous supply disruptions.
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Only one week ago, shares of Apple (NASDAQ: AAPL) were up more than 50% year to date. Plenty of bad news Apple reported revenue of $81.8 billion in fiscal Q3, down 1.4% from the prior-year period. This marked the third consecutive quarter of year-over-year revenue declines.
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Only one week ago, shares of Apple (NASDAQ: AAPL) were up more than 50% year to date. One disappointing quarterly update doesn't change the overall story for any company, especially one with such an impressive track record of success as Apple. * 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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Only one week ago, shares of Apple (NASDAQ: AAPL) were up more than 50% year to date. Are the good times over for Apple stock? Plenty of bad news Apple reported revenue of $81.8 billion in fiscal Q3, down 1.4% from the prior-year period.
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14410.0
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2023-08-08 00:00:00 UTC
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3 Stocks to Buy in August That Show No Signs of Slowing Down
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-in-august-that-show-no-signs-of-slowing-down
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nan
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nan
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The stock market has enjoyed a phenomenal 2023. And while it can seem counterintuitive to buy a stock at a higher price today than it was just a few months ago, sometimes that's the exact kind of decision that leads to outsize returns.
There's a fine line between buying a red-hot stock because it could keep going up and buying a stock because the fundamentals suggest that the company is still worth investing in. Apple (NASDAQ: AAPL), Baker Hughes (NASDAQ: BKR), and nVent Electric (NYSE: NVT), are three businesses at the top of their game and have a bright future ahead of them. Here's why each is worth buying in August.
Image source: Getty Images.
The perfect business model
Daniel Foelber (Apple): After passing the $3 trillion market-cap threshold, Apple stock found itself knocking on the door of the $200 mark.
After its post-earnings sell-off on Friday, Apple is down more than 5% in the past week. But zoom out, and you'll see that Apple has still had an incredible run so far this year and shows so signs of slowing down.
Apple has been one of the most resilient tech stocks during the 2022 sell-off. The story over the past five years has been to never bet against Apple. And in many ways, Apple is on the short list of companies that truly deserve to live up to the hype for one simple reason -- Apple is an impeccable company and brand, and it rewards its shareholders.
During Berkshire Hathaway's annual shareholder meeting, Warren Buffett called Apple "a better business than any [other] we own." It's hard to argue against that statement. We all know about the Apple business model. The company's ecosystem is a textbook example of vertical integration, and the brand is synonymous with blending design and functionality.
What Apple has done really well is expand that ecosystem through more products and services. Think Apple Watch and AirPods among the former and Apple Podcasts, Apple TV+, Apple Music, and Apple Pay among the latter. It looks a lot like Amazon's business model, but the difference is that Apple has far more control over hardware and software, allowing it to integrate its solutions into -- you guessed it -- its ecosystem. It's not just expanding for the sake of expansion. For the most part, it's improving the accessories and tools that people can use to make their iPhone more useful and fun.
What makes Apple a particularly compelling stock isn't just its well-oiled machine of a business model. It's also the company's history of not overspending and of buying back its own stock. Apple stock is up more than 300% over the past five years, so it's safe to say buying back stock was a good use of capital. In that time frame, Apple spent a staggering $385.9 billion repurchasing shares -- which is roughly the combined market cap of Netflix and Advanced Micro Devices.
Buying back stock reduces the outstanding share count and permanently boosts earnings per share (EPS). In this vein, Apple grows its EPS using two levers -- traditional earnings growth through the business and "artificial" earnings growth by buying back stock. This strategy essentially doubles down on the business. In the case of Apple, doubling down has been a genius move.
Sustained EPS growth is what has allowed Apple stock to sport a 32.8 price-to-earnings ratio despite quadrupling in the past five years. It's not a dirt-cheap valuation. But it's more than fair, considering the run Apple stock has had.
Apple stock isn't the bargain it was a few years ago, but it's still a stock worth buying and holding because of its top-tier fundamentals.
Baker Hughes has plenty of long-term growth prospects
Lee Samaha (Baker Hughes): After a period of underperforming peers such as SLB and Halliburton, oil equipment and services company Baker Hughes has come roaring back in 2023, and its 21%-plus gain makes it the only one of the three to beat the S&P 500 index this year.
While there are signs of slowing spending in the North American onshore upstream market, as noted by both Baker Hughes and Halliburton, Baker Hughes has many other levers it can pull. In fact, management raised its full-year sales guidance for its oilfield services and equipment segment despite acknowledging slowing conditions in North American upstream spending. In a nutshell, its international and offshore sales are more than offsetting weakness elsewhere.
In addition, the company's exposure to liquefied natural gas and gas technology is paying off, with management raising its forecast for industrial and energy technology orders in 2023 by $1 billion to a range of $11.5 billion to $12.5 billion. Within that, new energy orders -- including hydrogen, carbon capture, and CO2 compression -- are expected to grow to a range of $600 million to $700 million, compared with $400 million in 2022, a sign that Baker Hughes has a major role to play in the clean-energy transition.
On top of that, management has completed the restructuring actions necessary to generate $150 million in annual cost cuts and held out the prospect of more to come. With the price of oil now back above $80 a barrel, the environment remains favorable for energy companies, and Baker Hughes stands well placed to benefit from it.
nVent Electric will benefit from the astronomical growth of artificial-intelligence businesses
Scott Levine (nVent Electric): After reporting surprisingly strong fourth-quarter 2022 financial results in February, nVent saw its shares soar. The company's financial results for the first and second quarter of 2023 have provided investors with further causes to celebrate, helping the stock to rise more than 38% year to date, while the S&P 500 has risen about 19%.
Providing a wide variety of products to ensure safety and efficiency in electrical systems, nVent Electric is well positioned to prosper as businesses increasingly embrace electrical solutions. According to a 2020 article from Deloitte, "Most industrial manufacturers are just beginning to realize the economic viability of electrification in industrial fleets, processes, and spaces." It's the accelerating interest in artificial intelligence (AI) that provides another opportunity -- one that nVent is taking advantage of thanks to its recent acquisition of Texa Industries.
Because of the massive amounts of computing power that AI uses, data centers require extensive cooling solutions to keep them operating efficiently. Management singled this point out on the company's recent Q2 2023 conference call, stating that "artificial intelligence is driving demand for our liquid cooling solutions, leading us to increase investments in the back half of the year to drive future growth in our data solutions business."
This is where Texa Industries comes in. The newest addition to nVent Electric provides advanced liquid cooling solutions that are ideally suited for data centers -- solutions that provide up to 50% energy savings compared to legacy cooling. According to nVent Electric, only 5% of data centers currently use liquid cooling, which is growing three times as rapidly as legacy cooling.
10 stocks we like better than Apple
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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. Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Berkshire Hathaway, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL), Baker Hughes (NASDAQ: BKR), and nVent Electric (NYSE: NVT), are three businesses at the top of their game and have a bright future ahead of them. It looks a lot like Amazon's business model, but the difference is that Apple has far more control over hardware and software, allowing it to integrate its solutions into -- you guessed it -- its ecosystem. In that time frame, Apple spent a staggering $385.9 billion repurchasing shares -- which is roughly the combined market cap of Netflix and Advanced Micro Devices.
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Apple (NASDAQ: AAPL), Baker Hughes (NASDAQ: BKR), and nVent Electric (NYSE: NVT), are three businesses at the top of their game and have a bright future ahead of them. In this vein, Apple grows its EPS using two levers -- traditional earnings growth through the business and "artificial" earnings growth by buying back stock. Management singled this point out on the company's recent Q2 2023 conference call, stating that "artificial intelligence is driving demand for our liquid cooling solutions, leading us to increase investments in the back half of the year to drive future growth in our data solutions business."
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Apple (NASDAQ: AAPL), Baker Hughes (NASDAQ: BKR), and nVent Electric (NYSE: NVT), are three businesses at the top of their game and have a bright future ahead of them. Think Apple Watch and AirPods among the former and Apple Podcasts, Apple TV+, Apple Music, and Apple Pay among the latter. Apple stock is up more than 300% over the past five years, so it's safe to say buying back stock was a good use of capital.
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Apple (NASDAQ: AAPL), Baker Hughes (NASDAQ: BKR), and nVent Electric (NYSE: NVT), are three businesses at the top of their game and have a bright future ahead of them. We all know about the Apple business model. That's right -- they think these 10 stocks are even better buys.
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14411.0
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2023-08-08 00:00:00 UTC
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1 Billion Reasons to Buy Apple Stock Hand Over Fist Now and Never Sell
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AAPL
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https://www.nasdaq.com/articles/1-billion-reasons-to-buy-apple-stock-hand-over-fist-now-and-never-sell
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nan
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nan
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This year has started in stark contrast to its predecessor. After enduring its worst performance in over a decade, the stock market has bounced back. The major market indexes have each gained 20% or more from their respective bottoms, and by that measure suggest the start of the next bull market.
Yet while Wall Street has notched impressive gains so far this year, signaling that the recovery has begun, some segments of the consumer-facing economy still struggle. Such is the case with Apple (NASDAQ: AAPL).
When the iPhone maker reported the results of its fiscal third quarter, ended July 1, revenue declined 1% year over year, marking the third successive quarter of falling sales. While that might not seem like a reason to celebrate, several underlying metrics suggest Apple is setting the stage for a robust recovery to come.
Image source: Getty Images.
A mixed bag
Apple product sales continued to struggle. The iPad fared the worst, down 20% year over year, while Mac sales slipped 7%. Apple's flagship iPhone held up the best, down just 2% year over year. There's no sugar-coating it: Since sales of the iPhone represent roughly half of Apple's total revenue, the device has the most significant impact on its results. As go sales of the iPhone, so goes Apple.
The news wasn't all bad, and there were actually shoots of growth, which Apple's management was happy to focus on. The wearables, home, and accessories segment, led by the Apple Watch and AirPods, returned to growth, up 2% year over year.
The crown jewel
The headliner was Apple's services segment, which continued to do the bulk of the heavy lifting. Services grew 8% year over year, hitting a new all-time high for the third successive quarter.
Perhaps the most important revelation was that Apple had amassed more than 1 billion paid subscriptions, helping fuel the performance of the services segment. This includes subscriptions to such services as Apple TV+, Apple Music, and iCloud+, as well as Arcade, Fitness+, and News+. Apple has more than 1 billion active iPhones in the wild, meaning there are nearly as many subscribers as iPhone users. Furthermore, the company boasts more than 2 billion active devices in all, which will help expand its growing ecosystem of products and services.
It's (still) the economy
The persistent sting of high inflation continues to dominate the economic landscape and has consumers reining in spending on all but the essentials.
Personal consumption expenditures (PCE), the Federal Reserve Bank's favored measure of inflation, rose 4.1% compared with a year ago. While that's an improvement from recent months, there's still work to be done. The benchmark notched its lowest level since September 2021 but is still historically high.
So while inflation is easing, consumers are still feeling the pinch and will probably put off upgrading to the next iPhone just a bit longer. However, once the economy rebounds, as it inevitably will, the pent-up demand for iPhones is likely to drive the stock higher. Wedbush analyst Dan Ives estimates that 25% of the iPhone's installed base -- or roughly 250 million devices -- haven't been upgraded over the past four years, setting Apple up for a "mini super cycle" as the economic outlook improves.
The bigger financial picture
While inflation has been the biggest drag on Apple's results, the strong dollar continues to skew the company's financial results, as sales made in foreign currencies translate into fewer dollars. This, in turn, makes the financial statement results appear worse than they really are. In the third quarter, Apple's revenue was 4% lower than it would have been, because of foreign exchange headwinds.
Yet despite those obstacles, Apple's profits were surprisingly robust. Net income increased 2% year over year, while earnings per share climbed nearly 6%. It's also worth noting that Apple continues to generate an enviable amount of cash, with operating cash flow of $89 billion during the first nine months of its fiscal 2023.
Finally, Apple has a strong track record of shareholder-friendly policies. Since the company reinstituted its dividend in 2012, Apple has increased its payout by 154%. While its 0.50% yield might seem paltry, that's a function of the stock's magnificent performance, with gains of more than 1,000% over the past 10 years. The company also bought back more than 103 million shares, worth $18 billion. That means existing shareholders are entitled to a larger percentage of Apple's profit.
Data by YCharts
Hold forever
While some investors might balk at the idea of "holding forever," the way things stand right now, Apple stock is as close as it gets to a sure thing. With more than 1 billion active iPhones, users will continue to shell out money for apps, subscriptions, and other services, fueling the company's flywheel of growth.
Apple has proved time and again the value of its large and growing laundry list of products and services, with the iPhone acting as the hub in that wheel.
It isn't the screaming bargain it was just months ago, but Apple stock is currently selling for 30 times earnings, a slight premium to the price-to-earnings (P/E) ratio of about 26 for the S&P 500 (SNPINDEX: ^GSPC). However, given the stock's years of consistent performance, a powerful roster of recurring revenue, and the historically high pent-up demand for its flagship iPhone, the evidence is clear that Apple is one stock you can buy now and hold forever.
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
Danny Vena 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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Such is the case with Apple (NASDAQ: AAPL). Personal consumption expenditures (PCE), the Federal Reserve Bank's favored measure of inflation, rose 4.1% compared with a year ago. Wedbush analyst Dan Ives estimates that 25% of the iPhone's installed base -- or roughly 250 million devices -- haven't been upgraded over the past four years, setting Apple up for a "mini super cycle" as the economic outlook improves.
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Such is the case with Apple (NASDAQ: AAPL). Wedbush analyst Dan Ives estimates that 25% of the iPhone's installed base -- or roughly 250 million devices -- haven't been upgraded over the past four years, setting Apple up for a "mini super cycle" as the economic outlook improves. The bigger financial picture While inflation has been the biggest drag on Apple's results, the strong dollar continues to skew the company's financial results, as sales made in foreign currencies translate into fewer dollars.
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Such is the case with Apple (NASDAQ: AAPL). Apple's flagship iPhone held up the best, down just 2% year over year. This includes subscriptions to such services as Apple TV+, Apple Music, and iCloud+, as well as Arcade, Fitness+, and News+.
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Such is the case with Apple (NASDAQ: AAPL). As go sales of the iPhone, so goes Apple. However, given the stock's years of consistent performance, a powerful roster of recurring revenue, and the historically high pent-up demand for its flagship iPhone, the evidence is clear that Apple is one stock you can buy now and hold forever.
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14412.0
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2023-08-08 00:00:00 UTC
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Taiwan July exports drop less than forecast, AI seen helping momentum
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AAPL
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https://www.nasdaq.com/articles/taiwan-july-exports-drop-less-than-forecast-ai-seen-helping-momentum
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nan
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nan
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July exports -10.4% y/y vs -20.1% forecast in Reuters poll
Exports to China -16.3% y/y (previous month -22.2% y/y)
Govt forecasts August exports to decline 5%-10% y/y
Ministry: AI demand will boost export momentum
Recasts, adds details throughout
TAIPEI, Aug 8 (Reuters) - Taiwan's exports fell for an 11th straight month in July, though by less than expected as weak demand for its high-tech products from the U.S. and China was countered by growing momentum in artificial intelligence applications.
July exports dropped 10.4% in value from a year earlier to $38.73 billion, the finance ministry said on Tuesday. That was better than a 23.4% fall in June - the worst slump in almost 14 years - and beat a Reuters poll forecasting a 20.1% contraction.
Taiwan's export-reliant economy returned to growth in the second quarter, helped by resilient domestic consumption but exports remained weak, the government said last week.
The ministry said rising demand for high performance computing, artificial intelligence, data centres and automotive electronics would help boost export momentum in the second half of the year, when orders traditionally pick up ahead of the busy year-end shopping season.
For August, the ministry said it expected exports to contract between 5% and 10%, but that growth may resume from September, though more likely from November.
In July, total shipments of electronic components fell 7.9% from the year before to $15.61 billion, with semiconductor exports down 6.2%.
Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, besides providing chips for auto companies and lower-end consumer goods.
China's imports and exports fell much faster than expected in July, heightening pressure for the government to provide fresh stimulus to prop up demand.
At $13.42 billion in July, Taiwan's exports to China were down 16.3% from a year earlier, after the prior month's drop of 22.2%.
Exports to the United States fell 3.3% in July, after slipping an annual 25.2% in June.
Taiwan's July imports, often seen as a leading indicator of re-exports of finished products, dropped 20.9% to $30.25 billion. That compared with economists' forecasts of a 25.0% fall and a 29.9% decline in June.
(Reporting by Faith Hung and Liang-sa Loh; Editing by Ben Blanchard and Christina Fincher)
((faith.hung@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, besides providing chips for auto companies and lower-end consumer goods. Taiwan's export-reliant economy returned to growth in the second quarter, helped by resilient domestic consumption but exports remained weak, the government said last week. The ministry said rising demand for high performance computing, artificial intelligence, data centres and automotive electronics would help boost export momentum in the second half of the year, when orders traditionally pick up ahead of the busy year-end shopping season.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, besides providing chips for auto companies and lower-end consumer goods. July exports -10.4% y/y vs -20.1% forecast in Reuters poll Exports to China -16.3% y/y (previous month -22.2% y/y) Govt forecasts August exports to decline 5%-10% y/y Ministry: AI demand will boost export momentum Recasts, adds details throughout TAIPEI, Aug 8 (Reuters) - Taiwan's exports fell for an 11th straight month in July, though by less than expected as weak demand for its high-tech products from the U.S. and China was countered by growing momentum in artificial intelligence applications. China's imports and exports fell much faster than expected in July, heightening pressure for the government to provide fresh stimulus to prop up demand.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, besides providing chips for auto companies and lower-end consumer goods. July exports -10.4% y/y vs -20.1% forecast in Reuters poll Exports to China -16.3% y/y (previous month -22.2% y/y) Govt forecasts August exports to decline 5%-10% y/y Ministry: AI demand will boost export momentum Recasts, adds details throughout TAIPEI, Aug 8 (Reuters) - Taiwan's exports fell for an 11th straight month in July, though by less than expected as weak demand for its high-tech products from the U.S. and China was countered by growing momentum in artificial intelligence applications. China's imports and exports fell much faster than expected in July, heightening pressure for the government to provide fresh stimulus to prop up demand.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, besides providing chips for auto companies and lower-end consumer goods. July exports -10.4% y/y vs -20.1% forecast in Reuters poll Exports to China -16.3% y/y (previous month -22.2% y/y) Govt forecasts August exports to decline 5%-10% y/y Ministry: AI demand will boost export momentum Recasts, adds details throughout TAIPEI, Aug 8 (Reuters) - Taiwan's exports fell for an 11th straight month in July, though by less than expected as weak demand for its high-tech products from the U.S. and China was countered by growing momentum in artificial intelligence applications. July exports dropped 10.4% in value from a year earlier to $38.73 billion, the finance ministry said on Tuesday.
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14413.0
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2023-08-08 00:00:00 UTC
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Pre-Market Most Active for Aug 8, 2023 : SQQQ, PLTR, AAPL, NKLA, NVAX, TQQQ, INTC, NIO, AMC, IONQ, NVO, WFC
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-8-2023-%3A-sqqq-pltr-aapl-nkla-nvax-tqqq-intc-nio-amc-ionq
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -101.98 to 15,305.87. The total Pre-Market volume is currently 93,796,096 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is +0.43 at $18.54, with 5,087,574 shares traded. This represents a 13.19% increase from its 52 Week Low.
Palantir Technologies Inc. (PLTR) is -0.3 at $17.69, with 3,863,615 shares traded. PLTR's current last sale is 191.24% of the target price of $9.25.
Apple Inc. (AAPL) is +0.2101 at $179.06, with 3,450,517 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.37. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Nikola Corporation (NKLA) is -0.2002 at $2.19, with 3,232,178 shares traded. NKLA's current last sale is 72.99% of the target price of $3.
Novavax, Inc. (NVAX) is +0.44 at $7.96, with 2,937,957 shares traded. Smarter Analyst Reports: Novavax Files for EUA in the UAE; Shares Up 4%
ProShares UltraPro QQQ (TQQQ) is -0.96 at $41.20, with 2,534,444 shares traded. This represents a 155.9% increase from its 52 Week Low.
Intel Corporation (INTC) is -0.43 at $34.80, with 2,071,168 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 99.43% of the target price of $35.
NIO Inc. (NIO) is -0.6 at $14.22, with 1,727,337 shares traded. NIO's current last sale is 116.08% of the target price of $12.25.
AMC Entertainment Holdings, Inc. (AMC) is +0.27 at $5.39, with 1,246,044 shares traded. Smarter Analyst Reports: AMC Entertainment Books Smaller-than-Feared Q4 Loss
IonQ, Inc. (IONQ) is -0.7 at $14.88, with 823,422 shares traded.IONQ is scheduled to provide an earnings report on 8/10/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is -0.16 per share, which represents a -9 percent increase over the EPS one Year Ago
Novo Nordisk A/S (NVO) is +23.08 at $184.44, with 815,886 shares traded.NVO is scheduled to provide an earnings report on 8/9/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 1.34 per share, which represents a 84 percent increase over the EPS one Year Ago
Wells Fargo & Company (WFC) is -0.76 at $44.30, with 680,827 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 $1.24. As reported by Zacks, the current mean recommendation for WFC 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 +0.2101 at $179.06, with 3,450,517 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Novavax Files for EUA in the UAE; Shares Up 4%
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Apple Inc. (AAPL) is +0.2101 at $179.06, with 3,450,517 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". IonQ, Inc. (IONQ) is -0.7 at $14.88, with 823,422 shares traded.IONQ is scheduled to provide an earnings report on 8/10/2023, for the fiscal quarter ending Jun2023.
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Apple Inc. (AAPL) is +0.2101 at $179.06, with 3,450,517 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". IonQ, Inc. (IONQ) is -0.7 at $14.88, with 823,422 shares traded.IONQ is scheduled to provide an earnings report on 8/10/2023, for the fiscal quarter ending Jun2023.
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Apple Inc. (AAPL) is +0.2101 at $179.06, with 3,450,517 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 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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14414.0
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2023-08-08 00:00:00 UTC
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META, AMZN, or AAPL: Which FAANG Stock is the Best Pick?
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AAPL
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https://www.nasdaq.com/articles/meta-amzn-or-aapl%3A-which-faang-stock-is-the-best-pick
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nan
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nan
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FAANG stocks [Meta Platforms (NASDAQ:META), previously called Facebook, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Google’s parent company Alphabet (NASDAQ:GOOGL, GOOG)] have outperformed the S&P 500 (SPX) so far in 2023, with META rallying over 160%. However, macroeconomic uncertainty continues to be a drag. We used TipRanks’ Stock Comparison Tool to pit Meta, Amazon, and Apple against each other to pick Wall Street’s favorite FAANG stock at current levels.
Meta Platforms (NASDAQ:META)
Shares of social media giant Meta Platforms have been enjoying a splendid run this year, fueled by the company’s better-than-anticipated performance in the first half of the year. Last month, the company not only beat analysts’ second-quarter estimates but also issued upbeat guidance for the third quarter.
Meta’s Q2 2023 revenue grew by 11% to $32 billion, marking the first time the company generated double-digit growth since the end of 2021. The company’s top line has been under pressure in recent quarters due to the impact of macro pressures on digital ad spending, growing competition, and Apple’s iOS privacy change, which limited ad-targeting capabilities. Despite these pressures, Meta has bounced back strongly much to the delight of investors.
Moreover, the company has been taking aggressive cost control and streamlining measures to improve its profitability. In Q2 2023, the company’s EPS grew 21% to $2.98.
Is Meta a Good Stock to Buy?
On Monday, UBS analyst Lloyd Walmsley maintained a Buy rating on Meta with a price target of $400. The analyst expects the company to introduce generative artificial intelligence (AI) consumer chatbots across its WhatsApp, Instagram and Facebook apps by the end of next month at the Meta Connect event.
Walmsley believes that a consumer chatbot launch would enable Meta to win market share in the nearly $200 billion search ads market. He projects the revenue opportunity from chatbot search ads of $7.5 billion for the Facebook app alone and potentially over $20 billion across Meta’s Family of Apps.
Walmsley concluded that Meta remains one of his favorite names in the internet sector, backed by several top-line catalysts like persistent growth in engagement, Reels monetization, click-to-message ads expansion, Shop Ads rollout, and Twitter-rival Threads.
Wall Street’s Strong Buy consensus rating on Meta stock is based on 39 Buys and two Holds. The average price target of $377.70 implies 19.3% upside. Meta shares skyrocketed 163% so far in 2023.
Amazon (NASDAQ:AMZN)
E-commerce and cloud computing giant Amazon impressed Wall Street with its market-crushing second-quarter performance. The company’s cost-cutting efforts and higher sales helped it swing to EPS of $0.65 from a loss per share of $0.20 in the prior-year quarter.
Amazon’s Q2 2023 sales grew about 11% year-over-year to $134.4 billion, driven by an 11% and 10% rise in North America and International retail sales, respectively. Further, sales from the company’s Amazon Web Services cloud business increased 12%. The company also issued a better-than-anticipated third-quarter revenue outlook.
To continue to support its growth strategies, Amazon expects capital expenditure of slightly more than $50 billion in 2023 compared to $59 billion in 2022. While the company projects its fulfillment and transportation expenditure to be down this year, it expects higher infrastructure spending to support AWS growth, including additional investments related to generative AI and large language model initiatives.
Is Amazon a Buy, Hold, or Sell?
Last week, Barclays analyst Ross Sandler increased the price target for Amazon stock to $180 from $140 and reaffirmed the Buy rating on the stock.
The analyst noted that after two years of immense trouble for Amazon bulls, the company is now back with market share gains and improved margins. Sandler believes that AWS is likely re-accelerating on regular and AI workloads and retail growth is steady. He also thinks that margins may cross the 2018 peak.
With 37 Buys and one Hold, Amazon scores a Strong Buy consensus rating. At $171.08, the average price target implies 20.3% upside. Shares have jumped over 69% since the start of this year.
Apple (NASDAQ:AAPL)
Apple shares have been declining since the company announced a disappointing fiscal fourth-quarter revenue outlook. The iPhone maker managed to beat analysts’ expectations for Q3 FY23 (June quarter), thanks to the 8.8% rise in Services revenue to $21.2 billion.
However, overall revenue declined 1.4% year-over-year to $81.8 billion due to lower iPhone, Mac, and iPad revenues. Moreover, the company cautioned investors about a fourth consecutive year of revenue decline by saying that it expects the September quarter top-line performance to be similar to the June quarter.
In particular, Apple expects iPhone and Services business to accelerate on a year-over-year basis compared to the June quarter. That said, the company anticipates Mac and iPad revenues to decline by double digits due to tough comparisons.
What is Apple’s Price Target?
While several analysts remain optimistic about Apple, Rosenblatt analyst Barton Crockett downgraded the stock to Hold from Buy with a price target of $198 last week.
Crockett stated that Apple’s Q3 FY23 performance highlights the slowdown phase in which it exists currently. He feels that a slowdown in the U.S. could last until a material new product category captures the market. Given the uncertainty associated with the timing and success of a new product category, the analyst does not find the stock attractive currently due to its peak absolute and relative valuation multiples.
Wall Street’s Strong Buy consensus rating for Apple stock is based on 22 Buys and seven Holds. The average price target of $208.99 implies about 17% upside potential. Shares have risen 38% year-to-date.
Conclusion
Despite macro pressures, Wall Street is highly bullish on Meta Platforms, Amazon, and Apple and believes in their ability to drive long-term growth. Currently, they see slightly higher upside potential in Meta and Amazon than Apple.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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FAANG stocks [Meta Platforms (NASDAQ:META), previously called Facebook, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Google’s parent company Alphabet (NASDAQ:GOOGL, GOOG)] have outperformed the S&P 500 (SPX) so far in 2023, with META rallying over 160%. Apple (NASDAQ:AAPL) Apple shares have been declining since the company announced a disappointing fiscal fourth-quarter revenue outlook. The analyst expects the company to introduce generative artificial intelligence (AI) consumer chatbots across its WhatsApp, Instagram and Facebook apps by the end of next month at the Meta Connect event.
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FAANG stocks [Meta Platforms (NASDAQ:META), previously called Facebook, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Google’s parent company Alphabet (NASDAQ:GOOGL, GOOG)] have outperformed the S&P 500 (SPX) so far in 2023, with META rallying over 160%. Apple (NASDAQ:AAPL) Apple shares have been declining since the company announced a disappointing fiscal fourth-quarter revenue outlook. Wall Street’s Strong Buy consensus rating on Meta stock is based on 39 Buys and two Holds.
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FAANG stocks [Meta Platforms (NASDAQ:META), previously called Facebook, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Google’s parent company Alphabet (NASDAQ:GOOGL, GOOG)] have outperformed the S&P 500 (SPX) so far in 2023, with META rallying over 160%. Apple (NASDAQ:AAPL) Apple shares have been declining since the company announced a disappointing fiscal fourth-quarter revenue outlook. Meta Platforms (NASDAQ:META) Shares of social media giant Meta Platforms have been enjoying a splendid run this year, fueled by the company’s better-than-anticipated performance in the first half of the year.
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FAANG stocks [Meta Platforms (NASDAQ:META), previously called Facebook, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Google’s parent company Alphabet (NASDAQ:GOOGL, GOOG)] have outperformed the S&P 500 (SPX) so far in 2023, with META rallying over 160%. Apple (NASDAQ:AAPL) Apple shares have been declining since the company announced a disappointing fiscal fourth-quarter revenue outlook. Walmsley believes that a consumer chatbot launch would enable Meta to win market share in the nearly $200 billion search ads market.
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14415.0
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2023-08-07 00:00:00 UTC
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5 Best Dividend Stocks to Buy in August 2023
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AAPL
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https://www.nasdaq.com/articles/5-best-dividend-stocks-to-buy-in-august-2023
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nan
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nan
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In this video, I will be talking about five dividend-paying companies that you might want to add to your portfolio in the month of August. Dividend stocks can provide stability during rough times like today. I chose a mix of companies in different industries that could provide significant upside for long-term investors.
*Stock prices used were from the trading day of Aug. 4, 2023. The video was published on Aug. 7, 2023.
10 stocks we like better than CVS Health
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 CVS Health 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 Rozenbaum has positions in Altria Group. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends CVS Health and Vici Properties. The Motley Fool has a disclosure policy. Neil 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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In this video, I will be talking about five dividend-paying companies that you might want to add to your portfolio in the month of August. I chose a mix of companies in different industries that could provide significant upside for long-term investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Neil Rozenbaum has positions in Altria Group. The Motley Fool recommends CVS Health and Vici Properties.
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10 stocks we like better than CVS Health 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. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Neil Rozenbaum has positions in Altria Group.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and CVS Health wasn't one of them! See the 10 stocks *Stock Advisor returns as of August 1, 2023 Neil Rozenbaum has positions in Altria Group. His opinions remain his own and are unaffected by The Motley Fool.
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14416.0
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2023-08-07 00:00:00 UTC
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After Hours Most Active for Aug 7, 2023 : PLTR, TLT, SHY, LCID, CVX, AAPL, BAC, C, WFC, VTRS, MSFT, ET
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-7-2023-%3A-pltr-tlt-shy-lcid-cvx-aapl-bac-c-wfc-vtrs-msft-et
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -5.2 to 15,402.65. The total After hours volume is currently 85,969,237 shares traded.
The following are the most active stocks for the after hours session:
Palantir Technologies Inc. (PLTR) is +0.31 at $18.30, with 14,143,636 shares traded. Smarter Analyst Reports: Thursday’s Pre-Market: Here’s What You Need to Know Before the Markets Opens
iShares 20+ Year Treasury Bond ETF (TLT) is -0.09 at $95.49, with 10,302,643 shares traded. This represents a 3.96% increase from its 52 Week Low.
iShares 1-3 Year Treasury Bond ETF (SHY) is -0.04 at $81.06, with 5,156,663 shares traded. This represents a .72% increase from its 52 Week Low.
Lucid Group, Inc. (LCID) is -0.01 at $6.40, with 4,949,482 shares traded. Smarter Analyst Reports: Lucid Under SEC Investigation; Shares Drop – Report
Chevron Corporation (CVX) is unchanged at $159.89, with 4,536,618 shares traded. As reported by Zacks, the current mean recommendation for CVX is in the "buy range".
Apple Inc. (AAPL) is -0.06 at $178.79, with 3,578,144 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.38. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Bank of America Corporation (BAC) is unchanged at $31.88, with 2,741,206 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 91.09% of the target price of $35.
Citigroup Inc. (C) is +0.0001 at $45.83, with 2,286,150 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.3. C's current last sale is 91.2% of the target price of $50.25.
Wells Fargo & Company (WFC) is +0.18 at $45.24, with 2,263,892 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 $1.24. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Viatris Inc. (VTRS) is -0.03 at $10.97, with 2,244,125 shares traded. VTRS's current last sale is 84.38% of the target price of $13.
Microsoft Corporation (MSFT) is +0.08 at $330.19, with 2,186,987 shares traded. Over the last four weeks they have had 10 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".
Energy Transfer L.P. (ET) is +0.03 at $12.97, with 2,007,745 shares traded. ET's current last sale is 76.29% of the target price of $17.
The views and 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 -0.06 at $178.79, with 3,578,144 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 20+ Year Treasury Bond ETF (TLT) is -0.09 at $95.49, with 10,302,643 shares traded.
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Apple Inc. (AAPL) is -0.06 at $178.79, with 3,578,144 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 20+ Year Treasury Bond ETF (TLT) is -0.09 at $95.49, with 10,302,643 shares traded.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. Apple Inc. (AAPL) is -0.06 at $178.79, with 3,578,144 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 -0.06 at $178.79, with 3,578,144 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Lucid Under SEC Investigation; Shares Drop – Report
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14417.0
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2023-08-07 00:00:00 UTC
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Dow Movers: AAPL, BA
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-aapl-ba-1
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nan
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nan
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In early trading on Monday, shares of Boeing (BA) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.0%. Year to date, Boeing registers a 25.1% gain.
And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 1.6%. Apple is showing a gain of 37.9% looking at the year to date performance.
Two other components making moves today are 3M (MMM), trading down flat, and Johnson & Johnson (JNJ), trading up 1.4% on the day.
VIDEO: Dow Movers: AAPL, BA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 1.6%. VIDEO: Dow Movers: AAPL, BA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Boeing (BA) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.0%.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 1.6%. VIDEO: Dow Movers: AAPL, BA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Boeing (BA) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.0%.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 1.6%. VIDEO: Dow Movers: AAPL, BA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Boeing (BA) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.0%.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 1.6%. VIDEO: Dow Movers: AAPL, BA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple is showing a gain of 37.9% looking at the year to date performance.
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14418.0
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2023-08-07 00:00:00 UTC
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Chipmaker Skyworks sees profit below estimates on weak demand
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AAPL
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https://www.nasdaq.com/articles/chipmaker-skyworks-sees-profit-below-estimates-on-weak-demand
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nan
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nan
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Aug 7 (Reuters) - Apple supplier Skyworks Solutions SWKS.O on Monday forecast fourth-quarter profit below Wall Street estimates as demand for wireless connected devices from customers outside the artificial intelligence (AI) industry remains gloomy.
All the major markets for chips - including smartphones, PCs and data centers - have shrunk this year, as both corporate customers and consumers scale back spending amid a weak global economy, high inflation and higher borrowing costs.
Apple AAPL.O - Skyworks' largest customer - last week predicted its sales would fall for a fourth straight quarter, dragged down by weak demand for its flagship device.
Chipmaker Skyworks said it expects fourth-quarter adjusted earnings of $2.10 per share, slightly below market estimates of $2.11 per share, according to Refinitiv data.
It anticipates fourth-quarter revenue between $1.19 billion and $1.24 billion, the mid-point of which was in-line with analysts' average estimates of $1.22 billion.
Shares of the company fell 1.6% in trading after the bell.
Excluding items, Skyworks posted profit of $1.73 per share in the third quarter ended June 30, above estimates of $1.70, according to Refinitiv data. It reported revenue of $1.07 billion, in-line with market estimates.
Its adjusted net income fell to $276.3 million from $393.6 million a year earlier.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli)
((Jaspreet.Singh@thomsonreuters.com; @i_jass on Twitter;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O - Skyworks' largest customer - last week predicted its sales would fall for a fourth straight quarter, dragged down by weak demand for its flagship device. Aug 7 (Reuters) - Apple supplier Skyworks Solutions SWKS.O on Monday forecast fourth-quarter profit below Wall Street estimates as demand for wireless connected devices from customers outside the artificial intelligence (AI) industry remains gloomy. All the major markets for chips - including smartphones, PCs and data centers - have shrunk this year, as both corporate customers and consumers scale back spending amid a weak global economy, high inflation and higher borrowing costs.
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Apple AAPL.O - Skyworks' largest customer - last week predicted its sales would fall for a fourth straight quarter, dragged down by weak demand for its flagship device. Chipmaker Skyworks said it expects fourth-quarter adjusted earnings of $2.10 per share, slightly below market estimates of $2.11 per share, according to Refinitiv data. It anticipates fourth-quarter revenue between $1.19 billion and $1.24 billion, the mid-point of which was in-line with analysts' average estimates of $1.22 billion.
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Apple AAPL.O - Skyworks' largest customer - last week predicted its sales would fall for a fourth straight quarter, dragged down by weak demand for its flagship device. Aug 7 (Reuters) - Apple supplier Skyworks Solutions SWKS.O on Monday forecast fourth-quarter profit below Wall Street estimates as demand for wireless connected devices from customers outside the artificial intelligence (AI) industry remains gloomy. Chipmaker Skyworks said it expects fourth-quarter adjusted earnings of $2.10 per share, slightly below market estimates of $2.11 per share, according to Refinitiv data.
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Apple AAPL.O - Skyworks' largest customer - last week predicted its sales would fall for a fourth straight quarter, dragged down by weak demand for its flagship device. Aug 7 (Reuters) - Apple supplier Skyworks Solutions SWKS.O on Monday forecast fourth-quarter profit below Wall Street estimates as demand for wireless connected devices from customers outside the artificial intelligence (AI) industry remains gloomy. All the major markets for chips - including smartphones, PCs and data centers - have shrunk this year, as both corporate customers and consumers scale back spending amid a weak global economy, high inflation and higher borrowing costs.
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14419.0
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2023-08-07 00:00:00 UTC
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Berkshire Hathaway stock sets record high as rising rates, Apple boost profit
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AAPL
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https://www.nasdaq.com/articles/berkshire-hathaway-stock-sets-record-high-as-rising-rates-apple-boost-profit
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nan
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nan
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By Jonathan Stempel
Aug 7 (Reuters) - Berkshire Hathaway's BRKa.N stock price set a record high on Monday, rising 3.4% after the conglomerate run by billionaire investor Warren Buffett said quarterly operating profit topped $10 billion for the first time.
In its second-quarter earnings report on Saturday, Berkshire said rising interest rates boosted profit from fixed-income investments, including a cash stake that grew to $147.4 billion, while fewer accident claims bolstered Geico car insurance.
That helped offset declining profit at the BNSF railroad, and lower earnings from building products companies such as Clayton Homes as well as consumer businesses such as Forest River recreational vehicles and Duracell batteries.
Buffett's company, based in Omaha, Nebraska, also posted quarterly net income of $35.9 billion, reflecting unrealized gains on investments such as Apple AAPL.O, whose stock price rose 17.6% in the quarter.
Berkshire owned $177.6 billion of the iPhone maker's shares at the end of June.
Class A shares of Berkshire rose $18,320 to $551,920 on Monday, giving Berkshire a market value of about $799 billion.
The shares earlier reached $555,800, surpassing the previous high $544,000 set on March 28, 2022.
Buffett owns about 15% of Berkshire's stock. He passed Microsoft co-founder Bill Gates on Monday to become the world's fifth-richest person, with a $121.5 billion fortune, according to Forbes magazine.
Keefe, Bruyette & Woods analyst Meyer Shields, who rates Berkshire "market perform," raised his price target to $565,000 from $545,000.
Berkshire has never split its Class A shares. ItsClass B shares normally trade at about 1/1,500th as much.
In 2023, Berkshire shares have risen 18%, the same as the Standard & Poor's 500 .SPX.
The shares no longer routinely trounce the index as they did when Berkshire was smaller, but over long periods can match or slightly outperform the index with less volatility.
His conglomerate also includes namesake energy, car dealership and real estate brokerage businesses, several manufacturing and industrial businesses, and consumer brands such as Dairy Queen, Fruit of the Loom and See's Candies.
(Reporting by Jonathan Stempel in New York; Additional reporting by Chuck Mikolajczak, Lance Tupper and David Gregorio)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Buffett's company, based in Omaha, Nebraska, also posted quarterly net income of $35.9 billion, reflecting unrealized gains on investments such as Apple AAPL.O, whose stock price rose 17.6% in the quarter. By Jonathan Stempel Aug 7 (Reuters) - Berkshire Hathaway's BRKa.N stock price set a record high on Monday, rising 3.4% after the conglomerate run by billionaire investor Warren Buffett said quarterly operating profit topped $10 billion for the first time. In its second-quarter earnings report on Saturday, Berkshire said rising interest rates boosted profit from fixed-income investments, including a cash stake that grew to $147.4 billion, while fewer accident claims bolstered Geico car insurance.
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Buffett's company, based in Omaha, Nebraska, also posted quarterly net income of $35.9 billion, reflecting unrealized gains on investments such as Apple AAPL.O, whose stock price rose 17.6% in the quarter. By Jonathan Stempel Aug 7 (Reuters) - Berkshire Hathaway's BRKa.N stock price set a record high on Monday, rising 3.4% after the conglomerate run by billionaire investor Warren Buffett said quarterly operating profit topped $10 billion for the first time. In its second-quarter earnings report on Saturday, Berkshire said rising interest rates boosted profit from fixed-income investments, including a cash stake that grew to $147.4 billion, while fewer accident claims bolstered Geico car insurance.
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Buffett's company, based in Omaha, Nebraska, also posted quarterly net income of $35.9 billion, reflecting unrealized gains on investments such as Apple AAPL.O, whose stock price rose 17.6% in the quarter. By Jonathan Stempel Aug 7 (Reuters) - Berkshire Hathaway's BRKa.N stock price set a record high on Monday, rising 3.4% after the conglomerate run by billionaire investor Warren Buffett said quarterly operating profit topped $10 billion for the first time. In its second-quarter earnings report on Saturday, Berkshire said rising interest rates boosted profit from fixed-income investments, including a cash stake that grew to $147.4 billion, while fewer accident claims bolstered Geico car insurance.
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Buffett's company, based in Omaha, Nebraska, also posted quarterly net income of $35.9 billion, reflecting unrealized gains on investments such as Apple AAPL.O, whose stock price rose 17.6% in the quarter. By Jonathan Stempel Aug 7 (Reuters) - Berkshire Hathaway's BRKa.N stock price set a record high on Monday, rising 3.4% after the conglomerate run by billionaire investor Warren Buffett said quarterly operating profit topped $10 billion for the first time. Class A shares of Berkshire rose $18,320 to $551,920 on Monday, giving Berkshire a market value of about $799 billion.
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14420.0
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2023-08-07 00:00:00 UTC
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Stocks Gain on Positive Q2 Earnings Results
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AAPL
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https://www.nasdaq.com/articles/stocks-gain-on-positive-q2-earnings-results
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.67%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.94%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.49%.
Stocks this morning are moderately higher on optimism that Q2 corporate earnings results will continue to outperform. M&A activity also boosted stocks after Campbell Soup agreed to acquire Sovos Brands in a deal valued at $2.7 billion. Hawkish Fed comments from Fed Governor Bowman and NY Fed President Williams pushed bond yields higher and limited gains in stock index futures.
Q2 earnings season is a supportive factor for stocks. Of the 393 companies in the S&P 500 that have announced Q2 earnings results, 80% beat their EPS consensus, compared with 76% for the whole season a year ago. Also, a smaller 15% reported worse-than-expected earnings compared to 19% a year ago.
NY Fed President Williams said, "I expect that Fed policy will need to be kept restrictive for some time" and that the need for more rate hikes is "an open question."
Fed Governor Bowman said that "additional rate increases will likely be needed to get inflation on a path down to the FOMC's 2% target" to fully restore price stability.
The markets are discounting the odds at 14% for a +25 bp rate hike at the September 20 FOMC meeting and 37% for a +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are higher. The 10-year T-note yield is up +3.7 bp at 4.070%. The 10-year German bund yield is up +3.2 bp at 2.594%. The 10-year UK gilt yield is up +6.6 bp at 4.446%.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.03%. China’s Shanghai Composite Index today closed down -0.59%. Japan’s Nikkei Stock Index closed up +0.19%.
Today’s stock movers…
Viatris (VTRS) is up more than +6% to lead gainers in the S&P 500 after reporting Q2 adjusted Ebitda of $1.31 billion, better than the consensus of $1.26 billion.
Davita (DVA) is up more than +6% after UBS upgraded the stock to buy from neutral with a price target of $142.
Expedia Group (EXPE) is up more than +3% after Citigroup raised its price target on the stock to $115 from $105.
Boeing (BA) is up more than +2% to lead gainers in the Dow Jones Industrials after Wells Fargo Securities raised its price target on the stock to $270 from $250.
Booking Holdings (BKNG) is up more than +2% to lead gainers in the Nasdaq 100 after Argus Research raised its price target on the stock to $3,677 from $3,080.
Berkshire Hathaway (BRK/A) is up more than +2% after reporting Q2 operating income of $10.04 billion, well above the consensus of $9.28 billion.
Sovos Brands (SOVO) is up more than +25% after Campbell Soup agreed to acquire the company for about $2.7 billion.
PG&E (PCG) is up more than +2% after UBS upgraded the stock to buy from neutral with a price target of $21.
Fortinet (FTNT) is up more than +1% after Guggenheim Securities upgraded the stock to buy from neutral with a price target of $70.
Tyson Foods (TSN) is down more than -7% to lead losers in the S&P 500 after reporting Q3 sales of $13.14 billion, weaker than the consensus of $13.59 billion.
Moderna (MRNA) is down more than -6% to lead losers in the Nasdaq 100 after SVB Financial cut its price target on the stock to $68 from $82 and maintained its underperform rating.
Henry Schein (HSIC) is down more than -2% after reporting Q2 net sales of $3.10 billion, weaker than the consensus of $3.12 billion.
Apple (AAPL) is down more than -1% to lead losers in the Dow Jones Industrials, extending its losing streak to four consecutive sessions after giving a disappointing outlook last Thursday.
Tesla (TSLA) is down more than -2% after CFO Kirkhorn stepped down after 13 years at the company.
Cloudflare (NET) is down more than -4% after Guggenheim Securities downgraded the stock to sell from neutral with a price target of $50.
Campbell Soup (CPB) is down more than -1% after it agreed to acquire Sonos Foods for $2.7 billion.
Across the markets…
September 10-year T-notes (ZNU23) today are down -2 ticks, and the 10-year T-note yield is up +3.7 bp at 4.070%. Sep T-notes today are under pressure from hawkish Fed comments and supply pressures. NY Fed President Williams said, "I expect that Fed policy will need to be kept restrictive for some time," and Fed Governor Bowman said that "additional rate increases will likely be needed” to fully restore price stability. The Treasury will auction $103 billion of T-note and T-bonds this week as part of the August quarterly refunding, beginning with Tuesday’s $42 billion auction of 3-year T-notes.
The dollar index (DXY00) today is up by +0.03%. The dollar today is posting modest gains after hawkish Fed comments pushed T-note yields higher. The dollar gave up most of its gains as strength in stocks reduced the liquidity demand for the dollar. Also, negative carryover from last Friday is weighing on the dollar when U.S. July payrolls rose less than expected, bolstering expectations for the Fed to pause its interest rate hike campaign.
EUR/USD (^EURUSD) today is down by -0.06%. The euro today is posting modest losses on the heels of today’s weaker-than-expected German Jun industrial production report. However, losses in EUR/USD are limited after the Eurozone Aug Sentix investor confidence index unexpectedly rose, a sign of confidence in the Eurozone economy.
German Jun industrial production fell -1.5% m/m, weaker than expectations of -0.5% m/m.
The Eurozone Aug Sentix investor confidence index unexpectedly rose +3.6 to -18.9, stronger than expectations of a decline to -24.5.
USD/JPY (^USDJPY) is up by +0.18%. The yen today is under pressure after hawkish Fed comments pushed T-note yields higher. Also, a recovery in the Nikkei Stock Index from a 3-1/2 week low to higher on the day curbed safe-haven demand for the yen.
October gold (GCV3) today is down -6.8 (-0.35%), and Sep silver (SIU23) is down -0.446 (-1.88%). Precious metals prices this morning are moderately lower. A stronger dollar today is bearish for metals prices. Also, higher global bond yields are negative for precious metals. Today’s weaker-than-expected German Jun industrial production signals weak demand for industrials metals and is bearish for silver prices. In addition, fund liquidation in gold continues after long gold holdings in ETFs fell to a new 3-year low last Friday. Finally, a rally in stocks today has curbed the safe-haven demand for precious metals.
More Stock Market News from Barchart
Meta's Huge Free Cash Flow Implies Good Upside for Meta Stock and Options Plays Markets Today: Stocks Push Higher on Earnings Optimism Option Volatility and Earnings Report for August 7 - 11 Stocks Set to Open Higher as Investors Await U.S. Inflation Data and More Corporate Earnings
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is down more than -1% to lead losers in the Dow Jones Industrials, extending its losing streak to four consecutive sessions after giving a disappointing outlook last Thursday. Fed Governor Bowman said that "additional rate increases will likely be needed to get inflation on a path down to the FOMC's 2% target" to fully restore price stability. Moderna (MRNA) is down more than -6% to lead losers in the Nasdaq 100 after SVB Financial cut its price target on the stock to $68 from $82 and maintained its underperform rating.
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Apple (AAPL) is down more than -1% to lead losers in the Dow Jones Industrials, extending its losing streak to four consecutive sessions after giving a disappointing outlook last Thursday. Hawkish Fed comments from Fed Governor Bowman and NY Fed President Williams pushed bond yields higher and limited gains in stock index futures. NY Fed President Williams said, "I expect that Fed policy will need to be kept restrictive for some time," and Fed Governor Bowman said that "additional rate increases will likely be needed” to fully restore price stability.
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Apple (AAPL) is down more than -1% to lead losers in the Dow Jones Industrials, extending its losing streak to four consecutive sessions after giving a disappointing outlook last Thursday. Hawkish Fed comments from Fed Governor Bowman and NY Fed President Williams pushed bond yields higher and limited gains in stock index futures. Today’s stock movers… Viatris (VTRS) is up more than +6% to lead gainers in the S&P 500 after reporting Q2 adjusted Ebitda of $1.31 billion, better than the consensus of $1.26 billion.
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Apple (AAPL) is down more than -1% to lead losers in the Dow Jones Industrials, extending its losing streak to four consecutive sessions after giving a disappointing outlook last Thursday. Boeing (BA) is up more than +2% to lead gainers in the Dow Jones Industrials after Wells Fargo Securities raised its price target on the stock to $270 from $250. The dollar index (DXY00) today is up by +0.03%.
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14421.0
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2023-08-07 00:00:00 UTC
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Time to Bite on the Dip in Apple Stock After Earnings?
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AAPL
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https://www.nasdaq.com/articles/time-to-bite-on-the-dip-in-apple-stock-after-earnings
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nan
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nan
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With Apple (AAPL) shares continuing to fall after reporting its fiscal third-quarter results last Thursday, investors may be pondering if it’s time to buy the dip.
Apple will certainly be joining many investors’ watchlists of notable companies like Crocs (CROX) that were able to beat quarterly top and bottom line expectations but still saw their stock fall afterward.
Like Crocs, Apple’s quarterly results were favorable but slowing growth in key business segments led to a selloff. Crocs' popular HeyDude brand saw slowing sales growth during its most recent Q2 report in late July, and the primary catalyst to Apple’s selloff stemmed from concerns over slower product revenue for the iPhone, Mac, and iPad.
Still, Apple stock has had a strong year and now may be a good time to see if the recent dip was a buying opportunity.
Image Source: Zacks Investment Research
Apple Q3 Review
Last week, Apple’s Q3 earnings of $1.26 a share topped estimates by 6% and rose 5% from the prior-year quarter. Third-quarter sales of $81.79 billion slightly beat expectations of $81.36 billion but dipped -1% from a year ago.
Apple stock is down roughly -6% since its quarterly report last Thursday as Wall Street soured at iPad revenue falling -20% from Q3 2022 with Mac revenue down -7%, and iPhone revenue down -2%. Overall, Product segment sales came in at $60.58 billion and dipped -4% from a year ago.
With that being said, Services segment sales came in at $21.21 billion which was up 8% YoY and set a quarterly record. The segment consists of software and services that coincide with Apple products including Apple iCloud, Apple Pay, Apple Music, and Apple TV+.
Image Source: Zacks Investment Research
Growth & Outlook
Although Apple doesn’t provide official guidance, according to Zacks estimates annual earnings are now forecasted to dip -1% in fiscal 2023 but rebound and rise 9% in FY24 at $6.62 per share.
Total sales are projected to be down -2% this year and then stabilize and rise 6% in FY24 to $408.89 billion. With slowing product revenue being a concern at the moment, it’s notable that FY24 sales projections would still represent 48% growth over the last five years with 2020 sales at $274.51 billion.
Image Source: Zacks Investment Research
Bottom Line
For now, Apple stock lands a Zacks Rank #3 (Hold). Although slowing Product segment sales is a concern, growth in Apple’s Services segment is promising. While it may be too soon to buy the dip holding on to Apple stock at current levels could be rewarding, especially for longer-term investors.
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
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Apple Inc. (AAPL) : Free Stock Analysis Report
Crocs, Inc. (CROX) : 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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With Apple (AAPL) shares continuing to fall after reporting its fiscal third-quarter results last Thursday, investors may be pondering if it’s time to buy the dip. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Crocs, Inc. (CROX) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple will certainly be joining many investors’ watchlists of notable companies like Crocs (CROX) that were able to beat quarterly top and bottom line expectations but still saw their stock fall afterward.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Crocs, Inc. (CROX) : Free Stock Analysis Report To read this article on Zacks.com click here. With Apple (AAPL) shares continuing to fall after reporting its fiscal third-quarter results last Thursday, investors may be pondering if it’s time to buy the dip. Image Source: Zacks Investment Research Apple Q3 Review Last week, Apple’s Q3 earnings of $1.26 a share topped estimates by 6% and rose 5% from the prior-year quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Crocs, Inc. (CROX) : Free Stock Analysis Report To read this article on Zacks.com click here. With Apple (AAPL) shares continuing to fall after reporting its fiscal third-quarter results last Thursday, investors may be pondering if it’s time to buy the dip. Image Source: Zacks Investment Research Apple Q3 Review Last week, Apple’s Q3 earnings of $1.26 a share topped estimates by 6% and rose 5% from the prior-year quarter.
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With Apple (AAPL) shares continuing to fall after reporting its fiscal third-quarter results last Thursday, investors may be pondering if it’s time to buy the dip. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Crocs, Inc. (CROX) : Free Stock Analysis Report To read this article on Zacks.com click here. With that being said, Services segment sales came in at $21.21 billion which was up 8% YoY and set a quarterly record.
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14422.0
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2023-08-07 00:00:00 UTC
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The Best FAANG Stock to Buy After Earnings
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AAPL
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https://www.nasdaq.com/articles/the-best-faang-stock-to-buy-after-earnings
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nan
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nan
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Tech companies entered the Q2 earnings season coming off a stellar rally in the first half of the year, having recovered impressively from the sector's significant underperformance in 2022. However, individual earnings results have since uncovered some distinct winners and losers from within the group.
For example, the earnings season for FAANG companies began with Netflix’s (NFLX) results on July 19, and wrapped up last week when Amazon (AMZN) and Apple (AAPL) released their quarterly reports. While shares of Netflix and Apple fell after their quarterly releases, Amazon, Alphabet (GOOG), and Meta Platforms (META) gained ground.
All of these FAANG stocks are still outperforming the markets in 2023, and in fact, Meta Platforms is the second-best performing S&P 500 Index ($SPX) stock this year. But in the wake of their latest quarterly earnings, which FAANG stock looks strongest?
Here are the key takeaways from the most recently released FAANG earnings, including which stock looks like the top pick for investors right now.
Netflix: Mixed Q2 Earnings
Netflix posted mixed Q2 results, as revenues of $8.3 billion fell short of estimates, but EPS of $3.29 and subscriber growth of 5.9 million outpaced what analysts expected.
www.barchart.com
Netflix also raised its 2023 free cash flow guidance from $3.5 billion to $5 billion, but that higher forecast is partially due to timing issues – its content spending in 2023 will be lower than previously expected due to the strike among Hollywood actors and writers.
Alphabet Stock Rises After Earnings
Alphabet was the next FAANG to report Q2 earnings. Ahead of the report, market sentiment towards the stock was quite cautious amid a slowdown in the digital ad market and concerns over market share competition from Microsoft’s (MSFT) Bing browser.
However, the company managed to impress with its earnings, and Alphabet stock rallied as it beat on both the top and bottom line. Adjusted EPS of $1.44 comfortably surpassed analysts’ estimate of $1.34, and Alphabet reported YoY increases in YouTube and Google Search revenues - a welcome improvement after revenue for both of these segments fell in the first quarter.
www.barchart.com
Finally, Google Cloud reported a 28% YoY rise in revenues, with an operating income of $395 million. The unit previously posted an operating loss of $590 million in Q2 2022 before swinging to an operating profit in the first quarter, and that performance improved sequentially in Q2.
Meta's Double-Digit Growth
Meta Platforms – which was already the best-performing FAANG stock of 2023 heading into its Q2 report – continued its positive price action after earnings. The company posted revenues of $32 billion in the quarter, which not only surpassed analysts’ estimate of $31.12 billion, but marked the first time since 2021 that the Mark Zuckerberg-led company posted a double-digit rise in revenues.
Menlo Park-based Meta reported EPS of $2.98 for the period, ahead of the $2.91 that analysts expected, and up 21% YoY. Plus, Q3 revenue guidance of $32 billion to $34.5 billion was well ahead of what markets were expecting, and implies YoY growth of at least 15%.
Amazon Shattered Earnings Estimates
Amazon was the next FAANG to release its Q2 earnings and posted a strong set of numbers, generating revenues of $134.4 billion versus the $131.5 billion that analysts expected. Its operating income was $7.7 billion in the quarter – easily outpacing its previous guidance for $2 billion to $5.5 billion.
www.barchart.com
After the last few quarters of slower growth, evidence that the enterprise-focused Amazon Web Services (AWS) segment is now stabilizing was quite reassuring. Equally impressive was Amazon's Q3 revenue guidance of $138 billion-$143 billion, and operating income guidance of between $5.5 billion-$8.5 billion.
Apple Down on iPhone Worries
Apple stock, by contrast, fell after its fiscal Q3 earnings – even as its revenues of $81.8 billion and EPS of $1.26 arrived slightly ahead of estimates.
The quarterly beat was driven by strength in the high-margin Services business, where revenues rose 8% YoY to $21.21 billion, and Apple now boasts an installed base of over 2 billion devices, along with the prospect of recurring revenues from 1 billion paid subscriptions.
However, disappointed investors turned their attention instead to a steeper-than-expected fall in iPhone and iPad sales for the quarter.
Apple’s elevated trading multiples already left little opportunity for a post-earnings rally, and that high-profile decline in hardware sales - coupled with guidance for another flat-to-lower overall revenue performance in the fiscal fourth quarter - effectively spooked investors, sending the shares to their lowest levels since mid-June immediately after earnings.
Amazon: The FAANG Standout
I believe that Amazon’s Q2 earnings stand out among its FAANG peers, and the company’s cost-cutting efforts aren’t being fully appreciated by the markets – even as fellow FAANG name Meta Platforms has soared over 150% this year on the back of its much-publicized “year of efficiency.”
Wall Street analysts were also quite impressed with AMZN’s earnings, and at least 28 of them raised the stock's target price in response. Plus, Rosenblatt Securities analyst Barton Crockett upgraded the stock from a neutral to buy.
www.barchart.com
Amazon is a play on multiple high-growth and secular themes, including e-commerce, cloud, streaming, digital advertising, and AI – and its growth potential in AI remains quite underappreciated.
During the Q2earnings call Amazon talked about its AI initiatives extensively, and CEO Andy Jassy said that data is the “core” of AI, adding, “AWS not only has the broadest array of storage, database, analytics, and data management services for customers, it also has more customers and data store than anybody else.”
Amazon's business-to-business (B2B) platform, Amazon Business, is another potential growth driver to watch, as annualized gross revenues for the division are now at $35 billion. Likewise, digital advertising continues to report double-digit revenue growth.
With Amazon stock still below its 2021 highs, I believe the strong Q2 performance and encouraging guidance should help support the next leg of the rally in the shares, making this the top FAANG stock to buy after earnings.
On the date of publication, Mohit Oberoi had a position in: AAPL , GOOG , MSFT , META , SPY . 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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For example, the earnings season for FAANG companies began with Netflix’s (NFLX) results on July 19, and wrapped up last week when Amazon (AMZN) and Apple (AAPL) released their quarterly reports. On the date of publication, Mohit Oberoi had a position in: AAPL , GOOG , MSFT , META , SPY . Tech companies entered the Q2 earnings season coming off a stellar rally in the first half of the year, having recovered impressively from the sector's significant underperformance in 2022.
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For example, the earnings season for FAANG companies began with Netflix’s (NFLX) results on July 19, and wrapped up last week when Amazon (AMZN) and Apple (AAPL) released their quarterly reports. On the date of publication, Mohit Oberoi had a position in: AAPL , GOOG , MSFT , META , SPY . While shares of Netflix and Apple fell after their quarterly releases, Amazon, Alphabet (GOOG), and Meta Platforms (META) gained ground.
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For example, the earnings season for FAANG companies began with Netflix’s (NFLX) results on July 19, and wrapped up last week when Amazon (AMZN) and Apple (AAPL) released their quarterly reports. On the date of publication, Mohit Oberoi had a position in: AAPL , GOOG , MSFT , META , SPY . Amazon Shattered Earnings Estimates Amazon was the next FAANG to release its Q2 earnings and posted a strong set of numbers, generating revenues of $134.4 billion versus the $131.5 billion that analysts expected.
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For example, the earnings season for FAANG companies began with Netflix’s (NFLX) results on July 19, and wrapped up last week when Amazon (AMZN) and Apple (AAPL) released their quarterly reports. On the date of publication, Mohit Oberoi had a position in: AAPL , GOOG , MSFT , META , SPY . Alphabet Stock Rises After Earnings Alphabet was the next FAANG to report Q2 earnings.
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14423.0
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2023-08-07 00:00:00 UTC
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US STOCKS-S&P 500, Dow kick off week higher; U.S. inflation in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-kick-off-week-higher-u.s.-inflation-in-focus
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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.
Yellow tumbles after filing for bankruptcy protection
Berkshire climbs on record operating profit
Tyson Foods falls after missing sales estimates
Tesla down after CFO steps down
Indexes mixed: Dow up 0.91%, S&P up 0.48%, Nasdaq down 0.13%
Updated at 11:38 a.m. ET/ 1538 GMT
By Bansari Mayur Kamdar and Johann M Cherian
Aug 7 (Reuters) - The benchmark S&P 500 and the Dow climbed higher on Monday following a choppy week, with investors looking ahead to a highly awaited U.S. inflation report due later in the week that could test the market's sharp recovery this year.
The main stock indexes ended the week lower on Friday with some investors taking profits after months of gains due to worries over economic data, mixed earnings and rising Treasury yields.
U.S. stocks have sharply rallied in 2023, with the benchmark S&P 500 .SPX clocking 17% gains year to date, fueled by optimism around artificial intelligence and hopes of a soft landing for the world's largest economy.
The U.S. consumer price data on Thursday could offer cues to the Federal Reserve's monetary policy path, after an employment report on Friday re-ignited fears that the central bank could keep rates higher for longer.
"In the last month's report, we saw the monthly print for CPI finally break into the downside with weaknesses seen in some parts of the goods market," said Charlie Ripley, senior investment strategist for Allianz Investment Management.
"But in the service side, it's been pretty sticky and that's one reason why it's taking a lot longer for inflation to subside."
New York Fed President John Williams, a voting member this year, said he expects interest rates could begin to come down in early 2024, as per a report, while Governor Michelle Bowman said additional interest rate hikes will likely be needed in order to lower inflation to the 2% target.
At 11:38 a.m. ET, the Dow Jones Industrial Average .DJI was up 320.49 points, or 0.91%, at 35,386.11, the S&P 500 .SPX was up 21.60 points, or 0.48%, at 4,499.63, and the Nasdaq Composite .IXIC was down 17.61 points, or 0.13%, at 13,891.63.
Weighing on the tech-heavy Nasdaq, AppleAAPL.O, the world's most valuable firm, fell 2.2% extending its sharp losses from the previous session following a gloomy iPhone sales report.
TeslaTSLA.Odropped 3.8% after the electric vehicle giant said that Vaibhav Taneja will replace Zachary Kirkhorn as its finance chief.
Overall, second-quarter earnings have been better-than-expected so far, with 79.1% of the 422 S&P 500 companies that have reported as of Friday beating analysts' estimates, according to Refinitiv data.
Class B shares of Berkshire HathawayBRKb.N gained 3.2% after the Warren Buffett-led conglomerate posted its highest-ever quarterly operating profit.
Sage TherapeuticsSAGE.Osank 51.1%, while Biogen BIIB.Oslipped 0.5% after the U.S. drug regulator declined to approve the companies' joint first-of-its-kind postpartum depression (PPD) pill.
Tyson FoodsTSN.Nslid 5.8% after the meat packer disappointed Wall Street expectations for third-quarter revenue, as customers scaled back on meat purchases.
Yellow CorpYELL.O, a nearly 100-year-old U.S. trucking firm, filed for Chapter 11 bankruptcy protection on Sunday, dragging its shares 34.2% lower.
Advancing issues outnumbered decliners by a 1.65-to-1 ratio on the NYSE and for a 1.27-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and seven new lows, while the Nasdaq recorded 46 new highs and 128 new lows.
Tesla's shares since Kirkhorn was named CFO https://tmsnrt.rs/3KuDgVU
Growth stocks outperform S&P 500 https://tmsnrt.rs/43ZOJDG
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel)
((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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Weighing on the tech-heavy Nasdaq, AppleAAPL.O, the world's most valuable firm, fell 2.2% extending its sharp losses from the previous session following a gloomy iPhone sales report. Yellow tumbles after filing for bankruptcy protection Berkshire climbs on record operating profit Tyson Foods falls after missing sales estimates Tesla down after CFO steps down Indexes mixed: Dow up 0.91%, S&P up 0.48%, Nasdaq down 0.13% Updated at 11:38 a.m. ET/ 1538 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - The benchmark S&P 500 and the Dow climbed higher on Monday following a choppy week, with investors looking ahead to a highly awaited U.S. inflation report due later in the week that could test the market's sharp recovery this year. The main stock indexes ended the week lower on Friday with some investors taking profits after months of gains due to worries over economic data, mixed earnings and rising Treasury yields.
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Weighing on the tech-heavy Nasdaq, AppleAAPL.O, the world's most valuable firm, fell 2.2% extending its sharp losses from the previous session following a gloomy iPhone sales report. Yellow tumbles after filing for bankruptcy protection Berkshire climbs on record operating profit Tyson Foods falls after missing sales estimates Tesla down after CFO steps down Indexes mixed: Dow up 0.91%, S&P up 0.48%, Nasdaq down 0.13% Updated at 11:38 a.m. ET/ 1538 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - The benchmark S&P 500 and the Dow climbed higher on Monday following a choppy week, with investors looking ahead to a highly awaited U.S. inflation report due later in the week that could test the market's sharp recovery this year. The main stock indexes ended the week lower on Friday with some investors taking profits after months of gains due to worries over economic data, mixed earnings and rising Treasury yields.
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Weighing on the tech-heavy Nasdaq, AppleAAPL.O, the world's most valuable firm, fell 2.2% extending its sharp losses from the previous session following a gloomy iPhone sales report. Yellow tumbles after filing for bankruptcy protection Berkshire climbs on record operating profit Tyson Foods falls after missing sales estimates Tesla down after CFO steps down Indexes mixed: Dow up 0.91%, S&P up 0.48%, Nasdaq down 0.13% Updated at 11:38 a.m. ET/ 1538 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - The benchmark S&P 500 and the Dow climbed higher on Monday following a choppy week, with investors looking ahead to a highly awaited U.S. inflation report due later in the week that could test the market's sharp recovery this year. The main stock indexes ended the week lower on Friday with some investors taking profits after months of gains due to worries over economic data, mixed earnings and rising Treasury yields.
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Weighing on the tech-heavy Nasdaq, AppleAAPL.O, the world's most valuable firm, fell 2.2% extending its sharp losses from the previous session following a gloomy iPhone sales report. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Yellow tumbles after filing for bankruptcy protection Berkshire climbs on record operating profit Tyson Foods falls after missing sales estimates Tesla down after CFO steps down Indexes mixed: Dow up 0.91%, S&P up 0.48%, Nasdaq down 0.13% Updated at 11:38 a.m. ET/ 1538 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - The benchmark S&P 500 and the Dow climbed higher on Monday following a choppy week, with investors looking ahead to a highly awaited U.S. inflation report due later in the week that could test the market's sharp recovery this year.
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14424.0
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2023-08-07 00:00:00 UTC
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Relative Strength Alert For Apple
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AAPL
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https://www.nasdaq.com/articles/relative-strength-alert-for-apple
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nan
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nan
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Apple Inc (Symbol: AAPL) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Apple Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of AAPL entered into oversold territory, changing hands as low as $177.56 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Apple Inc, the RSI reading has hit 29.7 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 56.4. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, AAPL's recent annualized dividend of 0.96/share (currently paid in quarterly installments) works out to an annual yield of 0.53% based upon the recent $181.99 share price.
A bullish investor could look at AAPL's 29.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on AAPL is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
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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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A bullish investor could look at AAPL's 29.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Apple Inc (Symbol: AAPL) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Apple Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of AAPL entered into oversold territory, changing hands as low as $177.56 per share.
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Indeed, AAPL's recent annualized dividend of 0.96/share (currently paid in quarterly installments) works out to an annual yield of 0.53% based upon the recent $181.99 share price. Apple Inc (Symbol: AAPL) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Apple Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of AAPL entered into oversold territory, changing hands as low as $177.56 per share.
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Apple Inc (Symbol: AAPL) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Apple Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of AAPL entered into oversold territory, changing hands as low as $177.56 per share. Indeed, AAPL's recent annualized dividend of 0.96/share (currently paid in quarterly installments) works out to an annual yield of 0.53% based upon the recent $181.99 share price.
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Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on AAPL is its dividend history. Apple Inc (Symbol: AAPL) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Apple Inc an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of AAPL entered into oversold territory, changing hands as low as $177.56 per share.
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14425.0
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2023-08-07 00:00:00 UTC
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Amazon results could bode well for rival retailers Walmart, Target
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AAPL
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https://www.nasdaq.com/articles/amazon-results-could-bode-well-for-rival-retailers-walmart-target
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nan
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nan
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By Siddharth Cavale and Ananya Mariam Rajesh
NEW YORK, Aug 7 (Reuters) - Amazon's strong quarterly results are one more sign that Americans are still shopping, despite months of ominous economic indicators, and could be a positive signal for Walmart and Target, who report next week.
The e-commerce giant reported a 4.2% jump in sales on Amazon.com and a 6.4% jump in sales at its physical store operations, which include Amazon Fresh, Whole Foods and Go convenience stores, for the second quarter ended June 30.
Walmart WMT.N and Target TGT.N, the two biggest retailers in the United States, have set a cautious tone for the rest of the year. But despite rising interest rates and credit card debt, Americans are still spending.
David Klink, senior equity analyst at Huntington Private Bank, said he saw "encouraging" signs in Amazon's results. North American retail operations were responsible for more than two thirds of Amazon's $4.4 billion improvement in operating income, noted Klink, whose firm holds stakes valued at about $166 million in Amazon shares, $80 million in Walmart shares and $19 million in Target shares.
Yet a major question is "whether Amazon's growth was more to do with improvements it has been making" than a reflection of stronger consumer demand across the board, said GlobalData Managing Director Neil Saunders.
Amazon has been making efforts to speed up its same-day and one-day deliveries, introduce adjustments at its Whole Foods business such as lower prices and embedded checkout technology, as well as sharpen in-stock levels and refine the decor of its Amazon Fresh stores, executives and analysts said.
The Seattle-based company forecast as much as a 13% rise in sales for the July-September period, driven by strong performance during its "Prime Day" event held on July 11 and 12. To be sure, Amazon's second-quarter numbers reflect higher prices and relatively low comparisons. In the same period last year, U.S. inflation was at its peak, prompting shoppers to cut back on purchases.
Target, which reports April-June results on Aug. 16, in May forecast a grim second quarter and said it expects full-year comparable sales to either rise or fall by low-single digits. Walmart, which reports on Aug. 17, had a better-than-expected first quarter and forecast sales to be up about 3.5% for the year. But Walmart executives said they were "uncertain" about the back half of 2023, as goods become more expensive and people have less money to spend.
Other big companies have also signaled possible choppy waters ahead. Apple AAPL.O, shipping group Maersk MAERSKb.CO and advertising giant WPP WPP.L said last week they expect less demand for iPhone shipments, global container volume and advertising spend respectively over the next few months.
Amazon's performance following its Prime Day was a "good read for discount retailers," however, said Joseph Feldman, an analyst with Telsey Advisory Group.
"I think that value-based retailers like Walmart and Target" will hold up better than others, he said.
(Reporting by Siddharth Cavale in New York and Ananya Mariam Rajesh in Bengaluru; Editing by Rosalba O'Brien)
((siddharth.cavale@thomsonreuters.com; Cell: +1 646-288-4330;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, shipping group Maersk MAERSKb.CO and advertising giant WPP WPP.L said last week they expect less demand for iPhone shipments, global container volume and advertising spend respectively over the next few months. By Siddharth Cavale and Ananya Mariam Rajesh NEW YORK, Aug 7 (Reuters) - Amazon's strong quarterly results are one more sign that Americans are still shopping, despite months of ominous economic indicators, and could be a positive signal for Walmart and Target, who report next week. Yet a major question is "whether Amazon's growth was more to do with improvements it has been making" than a reflection of stronger consumer demand across the board, said GlobalData Managing Director Neil Saunders.
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Apple AAPL.O, shipping group Maersk MAERSKb.CO and advertising giant WPP WPP.L said last week they expect less demand for iPhone shipments, global container volume and advertising spend respectively over the next few months. By Siddharth Cavale and Ananya Mariam Rajesh NEW YORK, Aug 7 (Reuters) - Amazon's strong quarterly results are one more sign that Americans are still shopping, despite months of ominous economic indicators, and could be a positive signal for Walmart and Target, who report next week. The e-commerce giant reported a 4.2% jump in sales on Amazon.com and a 6.4% jump in sales at its physical store operations, which include Amazon Fresh, Whole Foods and Go convenience stores, for the second quarter ended June 30.
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Apple AAPL.O, shipping group Maersk MAERSKb.CO and advertising giant WPP WPP.L said last week they expect less demand for iPhone shipments, global container volume and advertising spend respectively over the next few months. By Siddharth Cavale and Ananya Mariam Rajesh NEW YORK, Aug 7 (Reuters) - Amazon's strong quarterly results are one more sign that Americans are still shopping, despite months of ominous economic indicators, and could be a positive signal for Walmart and Target, who report next week. The e-commerce giant reported a 4.2% jump in sales on Amazon.com and a 6.4% jump in sales at its physical store operations, which include Amazon Fresh, Whole Foods and Go convenience stores, for the second quarter ended June 30.
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Apple AAPL.O, shipping group Maersk MAERSKb.CO and advertising giant WPP WPP.L said last week they expect less demand for iPhone shipments, global container volume and advertising spend respectively over the next few months. By Siddharth Cavale and Ananya Mariam Rajesh NEW YORK, Aug 7 (Reuters) - Amazon's strong quarterly results are one more sign that Americans are still shopping, despite months of ominous economic indicators, and could be a positive signal for Walmart and Target, who report next week. The Seattle-based company forecast as much as a 13% rise in sales for the July-September period, driven by strong performance during its "Prime Day" event held on July 11 and 12.
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14426.0
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2023-08-07 00:00:00 UTC
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Amazon.com set to meet with FTC ahead of potential antitrust lawsuit -source
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AAPL
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https://www.nasdaq.com/articles/amazon.com-set-to-meet-with-ftc-ahead-of-potential-antitrust-lawsuit-source-0
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nan
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nan
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By David Shepardson and Diane Bartz
WASHINGTON, Aug 7 (Reuters) - Amazon.com AMZN.O is set to meet next week with the U.S. Federal Trade Commission (FTC) ahead of a potential long-awaited antitrust lawsuit against the retailer, according to a source familiar with the matter.
The FTC began probing Amazon during the Trump administration. The company has been criticized for allegedly favoring its own products and disfavoring outside sellers on its platform, among other allegations. Amazon denies this. The FTC typically holds meetings with companies after lengthy investigations before deciding whether to file a suit.
The FTC declined comment on the planned meeting.
The Justice Department and FTC opened probes into four tech giants - Alphabet's Google, Meta's META.O Facebook, Apple AAPL.O and Amazon AMZN.O - during the Trump administration. That was followed by a major report by a House panel that discussed how the four companies dominate their industries.
The Justice Department has sued Alphabet's Google twice, once regarding its search business and a second time on advertising technology. The FTC has sued Meta's Facebook. None of the three cases has yet gone to trial.
The FTC in June sued Amazon, accusing it of enrolling millions of consumers into its paid subscription Amazon Prime service without their consent and making it hard for them to cancel. Amazon called the FTC's claims "false on the facts and the law."
The FTC on May 31 announced a $5.8 million settlement with Amazon's Ring doorbell camera unit after the agency said cameras had been used for spying on some customers. Amazon also agreed in May agreed to pay $25 million to settle FTC allegations it violated children's privacy rights by failing to delete Alexa virtual assistant recordings at the request of parents and keeping them longer than necessary.
(Reporting by David Shepardson and Diane Bartz Editing by Chris Reese and Mark Potter)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Justice Department and FTC opened probes into four tech giants - Alphabet's Google, Meta's META.O Facebook, Apple AAPL.O and Amazon AMZN.O - during the Trump administration. By David Shepardson and Diane Bartz WASHINGTON, Aug 7 (Reuters) - Amazon.com AMZN.O is set to meet next week with the U.S. Federal Trade Commission (FTC) ahead of a potential long-awaited antitrust lawsuit against the retailer, according to a source familiar with the matter. The FTC typically holds meetings with companies after lengthy investigations before deciding whether to file a suit.
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The Justice Department and FTC opened probes into four tech giants - Alphabet's Google, Meta's META.O Facebook, Apple AAPL.O and Amazon AMZN.O - during the Trump administration. The Justice Department has sued Alphabet's Google twice, once regarding its search business and a second time on advertising technology. (Reporting by David Shepardson and Diane Bartz Editing by Chris Reese and Mark Potter) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Justice Department and FTC opened probes into four tech giants - Alphabet's Google, Meta's META.O Facebook, Apple AAPL.O and Amazon AMZN.O - during the Trump administration. The FTC in June sued Amazon, accusing it of enrolling millions of consumers into its paid subscription Amazon Prime service without their consent and making it hard for them to cancel. Amazon also agreed in May agreed to pay $25 million to settle FTC allegations it violated children's privacy rights by failing to delete Alexa virtual assistant recordings at the request of parents and keeping them longer than necessary.
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The Justice Department and FTC opened probes into four tech giants - Alphabet's Google, Meta's META.O Facebook, Apple AAPL.O and Amazon AMZN.O - during the Trump administration. By David Shepardson and Diane Bartz WASHINGTON, Aug 7 (Reuters) - Amazon.com AMZN.O is set to meet next week with the U.S. Federal Trade Commission (FTC) ahead of a potential long-awaited antitrust lawsuit against the retailer, according to a source familiar with the matter. The company has been criticized for allegedly favoring its own products and disfavoring outside sellers on its platform, among other allegations.
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14427.0
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2023-08-07 00:00:00 UTC
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AAPL Stock’s Pullback: A Golden Opportunity for Long-term Apple Investors?
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AAPL
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https://www.nasdaq.com/articles/aapl-stocks-pullback%3A-a-golden-opportunity-for-long-term-apple-investors
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Among tech stocks this earnings season, it’s been a mixed bag. While some tech stocks have surged after earnings, others, like Apple (NASDAQ:AAPL) stock have pulled back following the release of their latest quarterly results.
Sure, the post-earnings decline for AAPL stock hasn’t been all that severe. Shares in the tech giant have only declined by a few percentage points.
However, despite some bright spots in this overall-mixed earnings release (such as the performance of one of its units that will likely drive future growth), you may think this is the beginning of the end to AAPL’s hot run during 2023.
While it’s not for certain whether this FAANG component will keep falling, or start to pick back up, in the immediate term, if you are a long-term investor, it’s best to view this latest move as merely market noise. Why? Let’s take a closer look, and find out.
AAPL Stock Results and the Market’s Reaction
Post-market on Aug. 3, Apple released results for its fiscal third quarter (ending July 1, 2023). During the period, the company reported revenue of $81.8 billion, and earnings of $1.26 per share.
Although both these figures declined on a year-over-year basis, and revenue came in only a few million below analyst estimates, earnings did beat expectations.
Like I hinted above, there was a positive takeaway with the latest results from one of Apple’s high-potential business units.
That would be the company’s Services unit. Last quarter, Services revenue grew by 8%, suggesting that a growth resurgence with this high-margin segment may be starting to take shape.
Again, based on the post-earnings price performance of AAPL stock, investors are seemingly focused more on the negatives than the positives. Admittedly, iPhone, Mac, and iPad sales did decline compared to the prior year’s quarter.
The tech slump clearly keeps weighing on results. Based on updated guidance, this is expected to continue during this quarter (ending September 2023).
Yet while the earnings release has, and could continue, to dampen sentiment for AAPL in the near-term, this isn’t a reason to jump ship. Rather, it’s good news for long-term investors.
The Weakness You’ve Been Waiting For
From January through the start of August, AAPL stock experienced a moderately steep climb to higher prices. Although plenty hopped aboard this bandwagon, it’s possible you skipped out on initiating or adding to an Apple position on concerns this run-up was not sustainable.
However, the opportunity for more valuation-conscious investors to dive may be just around the corner. How so? The market could continue to absorb the prospect of continued soft demand for Apple’s hardware products.
Bearish updates to analyst ratings aren’t helping, and may place more pressure on AAPL. All of this could lead to a moderate price decline for shares in the near-term.
That’s not to say Apple will fall all the way back to $125 per share, but a retreat to between $150 and $175 per share isn’t out of the question. If this happens, consider it high time to pounce.
For those who have yet to buy, such price levels are a solid entry point. If you already own this stock, this is also a solid price point for increasing your exposure.
Mostly, because the factors that make AAPL (in my view) one of the best “buy and hold” stocks out there, have not gone away.
Bottom Line: Seize the Opportunity
Going into earnings, it wasn’t unknown that Apple is experiencing demand challenges. It wasn’t unknown either, that this challenge could carry on throughout the rest of the fiscal year (ending September 2023).
However, to say “it’s all downhill from here” isn’t a hyperbolic statement. Based on sell-side earnings forecasts, Apple remains poised to report improved earnings starting next fiscal year.
As I have argued previously, in the longer-term, expansion of the iPhone’s presence in emerging markets like India, plus the continued growth of its Services unit, alongside some of the company’s chancier wagers (like the metaverse or self-driving cars) paying off, means continued strong growth.
For those who decide to seize the opportunity if it arises (i.e. if shares moderately correct), strong returns over a multi-year time frame could be your reward for staying the course with AAPL stock.
AAPL stock earns a B rating in Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.
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The post AAPL Stock’s Pullback: A Golden Opportunity for Long-term Apple Investors? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, despite some bright spots in this overall-mixed earnings release (such as the performance of one of its units that will likely drive future growth), you may think this is the beginning of the end to AAPL’s hot run during 2023. The Weakness You’ve Been Waiting For From January through the start of August, AAPL stock experienced a moderately steep climb to higher prices. For those who decide to seize the opportunity if it arises (i.e. if shares moderately correct), strong returns over a multi-year time frame could be your reward for staying the course with AAPL stock.
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While some tech stocks have surged after earnings, others, like Apple (NASDAQ:AAPL) stock have pulled back following the release of their latest quarterly results. Sure, the post-earnings decline for AAPL stock hasn’t been all that severe. However, despite some bright spots in this overall-mixed earnings release (such as the performance of one of its units that will likely drive future growth), you may think this is the beginning of the end to AAPL’s hot run during 2023.
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While some tech stocks have surged after earnings, others, like Apple (NASDAQ:AAPL) stock have pulled back following the release of their latest quarterly results. AAPL Stock Results and the Market’s Reaction Post-market on Aug. 3, Apple released results for its fiscal third quarter (ending July 1, 2023). Sure, the post-earnings decline for AAPL stock hasn’t been all that severe.
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While some tech stocks have surged after earnings, others, like Apple (NASDAQ:AAPL) stock have pulled back following the release of their latest quarterly results. Sure, the post-earnings decline for AAPL stock hasn’t been all that severe. However, despite some bright spots in this overall-mixed earnings release (such as the performance of one of its units that will likely drive future growth), you may think this is the beginning of the end to AAPL’s hot run during 2023.
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14428.0
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2023-08-07 00:00:00 UTC
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Better Buy: Apple vs. Amazon
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-vs.-amazon-3
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nan
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nan
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The stock prices for Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) went in opposite directions on Aug. 4 after the companies released their latest earnings reports. Apple's stock sank 5% after its slower-than-expected iPhone sales overshadowed its top- and bottom-line beat for the third quarter of fiscal 2023, which ended on July 1.
Meanwhile, Amazon's stock price soared 8% after its second-quarter beat indicated its e-commerce and cloud businesses were recovering. So is it the right time to sell Apple and buy Amazon? Let's take a fresh look at both tech giants to decide.
Image source: Getty Images.
Why did Apple disappoint the market?
Apple has two soft spots: its dependence on the iPhone, which accounted for 53% of its revenue in the first nine months of fiscal 2023, and its heavy exposure to China, which accounted for a fifth of its global sales during the same period. The bears believe Apple's sales of iPhones will stall out as consumers upgrade their smartphones less frequently, and that it faces both competitive and supply chain challenges in China.
Apple's iPhone sales declined 2% year over year to $39.7 billion in the third quarter, which missed the consensus forecast of $39.9 billion. However, that slowdown was entirely caused by currency headwinds, which offset its record third-quarter iPhone sales in India and other overseas markets. On a constant-currency basis, Apple's iPhone sales actually rose year over year.
Meanwhile, Apple's Greater China revenue grew 8% year over year, accelerating from the region's 3% decline in the second quarter. As for the competition, Apple actually grew its market share year over year from 18% to 20% in China, according to Counterpoint Research, as all four of its top competitors -- Oppo, Vivo, Honor, and Xiaomi (OTC: XIACF) -- experienced year-over-year declines. Therefore, China should remain a fertile market for Apple for the foreseeable future.
The bulls will also point out that Apple's services revenue, which accounted for 21% of its top line in the first nine months of fiscal 2023, grew 8% year over year in the third quarter. It added 150 million subscriptions across all of its services over the past 12 months, and surpassed 1 billion paid subscriptions for the first time -- and the stickiness of those subscriptions should keep its customers locked into its hardware and prisoner-taking ecosystem.
Analysts expect Apple's revenue and earnings to both decline 2% in fiscal 2023, but the upcoming launch of the iPhone 15 and Vision Pro, its expansion into India and other emerging markets, and the monetization of its services should stabilize its business. That's why analysts expect its revenue and earnings to grow 7% and 10%, respectively, in fiscal 2024. Apple is still growing, but it also can't be considered a bargain at 28 times next year's earnings and 8 times next year's sales.
Why did Amazon impress the market?
Amazon's growth cooled off last year for two reasons. First, its post-pandemic slowdown in e-commerce sales was exacerbated by inflationary headwinds. Second, the macro headwinds curbed the growth of its cloud infrastructure platform Amazon Web Services (AWS) as large companies reined in their spending on big software upgrades.
AWS' slowdown was worrisome since Amazon usually subsidized the expansion of its lower-margin e-commerce business with its higher-margin cloud revenue. That's why the bulls rejoiced when Amazon's AWS revenue rose 12% year over year to $22.1 billion in the second quarter and exceeded analysts' expectations by $400 million.
AWS' better-than-expected growth, along with the expansion of its higher-margin advertising business and aggressive cost-cutting measures, enabled Amazon to more than double its operating profit to $7.7 billion during the quarter. That trickled down to a net profit of $6.7 billion, compared to its net loss of $2 billion a year earlier.
Amazon's e-commerce business has also been stabilizing as inflation cools off, and it continues to expand its higher-growth online grocery business. All of those improvements prompted Amazon to guide for 9%-13% year-over-year revenue growth in the third quarter, which would roughly match its 11% growth in the second quarter.
For the full year, analysts expect Amazon's revenue to rise 9% as it turns profitable again (its stake in Rivian Automotive (NASDAQ: RIVN) caused it to report a steep investment-related loss in 2022). But next year analysts expect Amazon's revenue and earnings to grow 12% and 62%, respectively, as the macro environment improves.
Amazon might not seem cheap at 54 times next year's earnings. But as an e-commerce and cloud company, Amazon is often valued by its sales instead of its earnings. By that measure, it looks dirt cheap at 2 times next year's sales.
The better buy: Amazon
I own both of these stocks, and I don't plan to sell them anytime soon. But if I had to pick one over the other right now, I'd buy more shares of Amazon, for three simple reasons: its core growth engines are stabilizing, it's growing faster, and its stock is cheaper. Apple might still be a good safe-haven play, but its current valuations could limit its upside potential.
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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. Leo Sun has positions in Amazon.com and Apple. 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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The stock prices for Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) went in opposite directions on Aug. 4 after the companies released their latest earnings reports. Analysts expect Apple's revenue and earnings to both decline 2% in fiscal 2023, but the upcoming launch of the iPhone 15 and Vision Pro, its expansion into India and other emerging markets, and the monetization of its services should stabilize its business. Second, the macro headwinds curbed the growth of its cloud infrastructure platform Amazon Web Services (AWS) as large companies reined in their spending on big software upgrades.
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The stock prices for Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) went in opposite directions on Aug. 4 after the companies released their latest earnings reports. That's why the bulls rejoiced when Amazon's AWS revenue rose 12% year over year to $22.1 billion in the second quarter and exceeded analysts' expectations by $400 million. For the full year, analysts expect Amazon's revenue to rise 9% as it turns profitable again (its stake in Rivian Automotive (NASDAQ: RIVN) caused it to report a steep investment-related loss in 2022).
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The stock prices for Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) went in opposite directions on Aug. 4 after the companies released their latest earnings reports. Apple's iPhone sales declined 2% year over year to $39.7 billion in the third quarter, which missed the consensus forecast of $39.9 billion. Apple is still growing, but it also can't be considered a bargain at 28 times next year's earnings and 8 times next year's sales.
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The stock prices for Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) went in opposite directions on Aug. 4 after the companies released their latest earnings reports. Apple's iPhone sales declined 2% year over year to $39.7 billion in the third quarter, which missed the consensus forecast of $39.9 billion. That's why analysts expect its revenue and earnings to grow 7% and 10%, respectively, in fiscal 2024.
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14429.0
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2023-08-07 00:00:00 UTC
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Stock Market News for Aug 7, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-aug-7-2023
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nan
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nan
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U.S. stocks closed lower on Friday, with the Nasdaq and S&P 500 recording their fourth straight session of losses and notching their worst weeks since March as investors digested July jobs data and the latest corporate earnings from some of the biggest tech companies. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed 0.4% or 150.27 points to end at 35,065.62 points, recording its third straight day of losses.
The S&P 500 slid 0.5% or 23.86 points to close at 4,478.03 points, notching their fourth consecutive day of losses. Tech and utility stocks were the biggest losers.
The Technology Select Sector SPDR (XLK) declined 1.24%. The Utilities Select Sector SPDR (XLU) fell 1.2%, while the Consumer Staples Select Sector SPDR (XLP) dropped 1%. Eight of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq declined 0.4% or 50.48 points to finish at 13,902 points, falling for the fourth straight day.
The fear-gauge CBOE Volatility Index (VIX) was up 7.41% to 17.10. Advancers outnumbered decliners on the NYSE by a 1.22-to-1 ratio. On Nasdaq, a 1.14-to-1 ratio favored declining issues. A total of 11.39 billion shares were traded on Friday, higher than the last 20-session average of 10.87 billion.
Investors Parse Jobs Report, Big Tech Earnings
Stocks fell on Friday after initial gains as fresh labor-market data showed that the U.S. economy continued to add jobs in massive numbers in July. Data also showed that average hourly wages increased in July.
Besides, the unemployment rate also fell in July, according to the Bureau of Labor Statistics. Although the number of jobs created in July was softer than in June, it is still high. Slower job growth has raised hopes that the Fed's aggressive rate hike stance has been having its impact and with inflation slowing, the economy could have a softer landing.
However, many are also concerned that the rise in hourly wages might raise worries for the Fed. Treasury yields fell following the release of the jobs report. The 10-year Treasury Yield fell 12.06 basis points to 4.06%, the largest daily drop since May.
Investors are now waiting for the July inflation data, which is scheduled for release next week.
Investors also digested corporate earnings from a batch of companies. Shares of Amazon.com, Inc. (AMZN) jumped 8.3%, its highest level in almost a year after the company reported a solid earnings beat. Amazon reported quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.34 per share. Amazon has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Apple, Inc’s (AAPL) shares fell 4.8% after the iPhone maker reported lower revenues compared to the year-ago quarter. Apple reported third-quarter fiscal 2023 earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.19 per share. However, its net sales totaled $81.8 billion compared to $82.96 billion year-ago quarter, declining 1.4%.
Economic Data
The Bureau of Labor Statistics said that the U.S. economy added 187,000 jobs in July, lower than the economists’ expectations of 200,000. However, the unemployment rate also dropped to 3.5% in July from June’s 3.6%.
Although job additions softened, hourly wages increased 0.4% in July, increasing 4.4% from the past year.
Weekly Roundup
All the major indexes ended lower for the week. The Dow closed 1.1% down for the week. The S&P 500 ended 2.3% lower, while the Nasdaq finished 2.8% down for the week. The Dow and the S&P 500 their three straight weeks of gains. The S&P 500 and Nasdaq recorded their biggest weekly percentage losses since March.
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple, Inc’s (AAPL) shares fell 4.8% after the iPhone maker reported lower revenues compared to the year-ago quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed lower on Friday, with the Nasdaq and S&P 500 recording their fourth straight session of losses and notching their worst weeks since March as investors digested July jobs data and the latest corporate earnings from some of the biggest tech companies.
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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 To read this article on Zacks.com click here. Apple, Inc’s (AAPL) shares fell 4.8% after the iPhone maker reported lower revenues compared to the year-ago quarter. U.S. stocks closed lower on Friday, with the Nasdaq and S&P 500 recording their fourth straight session of losses and notching their worst weeks since March as investors digested July jobs data and the latest corporate earnings from some of the biggest tech companies.
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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 To read this article on Zacks.com click here. Apple, Inc’s (AAPL) shares fell 4.8% after the iPhone maker reported lower revenues compared to the year-ago quarter. U.S. stocks closed lower on Friday, with the Nasdaq and S&P 500 recording their fourth straight session of losses and notching their worst weeks since March as investors digested July jobs data and the latest corporate earnings from some of the biggest tech companies.
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Apple, Inc’s (AAPL) shares fell 4.8% after the iPhone maker reported lower revenues compared to the year-ago quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed lower on Friday, with the Nasdaq and S&P 500 recording their fourth straight session of losses and notching their worst weeks since March as investors digested July jobs data and the latest corporate earnings from some of the biggest tech companies.
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14430.0
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2023-08-07 00:00:00 UTC
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5 Best Inverse/Leveraged ETFs of Last Week
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https://www.nasdaq.com/articles/5-best-inverse-leveraged-etfs-of-last-week-6
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Wall Street delivered downbeat performances last week with the S&P 500 losing 2.3%, the Dow Jones retreating 1.1%, the Nasdaq Composite falling 2.9% and the Russell 2000 dropping 1.2% (read: Time for Value ETFs as Buffett Indicator Signals Caution?).
Notably, Rating agency Fitch downgraded the United States’ credit rating to AA+ from AAA last week, expecting fiscal deterioration over the next three years and repeated last minute debt ceiling negotiations that can pressurize the government’s ability to pay its bills.
Fitch initially raised concerns about a potential downgrade in May and continued to support that stance in June after the resolution of the debt ceiling crisis. The agency, however, stated its intention to conclude the review in the third quarter of the current year, per Reuters, quoted on Yahoo Finance (read: ETF Areas in Focus on Fitch Downgrade of Credit Rating).
The move weighed both on the stock and bond markets. The benchmark U.S. treasury yields hit the highest levels since November. The benchmark U.S. treasury yield started the week at 3.97%, hit a high of 4.20% on Aug 3, closed the week at 4.05% (read: Inverse Treasury ETFs to Play as 10-Yr Yield at Highest Since November).
If this was not enough, ADP reported much stronger private sector job gains in July than economists expected. Private sector jobs increased by 324,000 in July, following a revised 455,000 increase in June. The data breezed past economists’ expectations (surveyed by FactSet) of 185,000 job creations, as quoted on Barrons.
While this piece of information triggered the chances of further Fed rate hikes, U.S. non-farm payrolls numbers came in at light on Aug 4 and quelled the Fed rate hike bet a bit. The U.S. economy created 187,000 jobs in July of 2023, below market expectations of 200,000 and following a downwardly revised 185,000 in June.
Among the key earnings releases, Amazon AMZN shares soared after reporting a blockbuster result while Apple AAPL shares slumped as slowing hardware sales. Overall, the broader market was edgy and the volatility-gauging index CBOE Volatility Index (VIX) gained 24.1% last week. Oil prices remained steady with WTI crude ETF United States Oil ETF USO adding 1.4% last week.
Against this backdrop, below we highlight a few winning inverse/leveraged ETFs of last week.
ETFs in Focus
2x Long VIX Futures ETF UVIX – Up 27.2% Last Week
The underlying Long VIX Futures Index expresses the daily performance of a theoretical portfolio of first and second month VIX futures contracts that are rolled daily. The expense ratio of the fund is 1.77%.
ConvexityShares Daily 1.5x SPIKES Futures ETF SPKY – Up 20.1%
The underlying T3 SPIKE Front 2 Futures Index measures the returns of a portfolio of monthly SPIKES Futures contracts with a weighted average of one month to expiration. The expense ratio of the fund is 0.79%.
Direxion Daily S&P 500 High Beta Bear 3X Shares HIBS – Up 13.9%
The underlying S&P 500 High Beta Index selects 100 securities to include in the Index from the S&P 500 Index that have the highest sensitivity to beta over the past 12 months. The expense ratio of the fund is 1.07%.
MicroSectors Travel -3x Inverse Leveraged ETN FLYD – Up 13.2%
The underlying MerQube MicroSectors U.S. Travel Index is a total return index that tracks the stock prices of U.S. domiciled and listed securities that are materially engaged in specified segments of the travel industry. The expense ratio of the fund is 0.95%.
Direxion Daily Technology Bear 3X Shares TECS – Up 12.2%
The underlying Technology Select Sector Index includes domestic companies from the following industries: computers & peripherals; software; diversified telecommunications services; communications equipment; semiconductors & semiconductor equipment; internet software & services; IT services; electronic equipment, instruments & components; wireless telecommunication services; & office electronics. The expense ratio of the fund is 1.08%.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
United States Oil ETF (USO): ETF Research Reports
Direxion Daily Technology Bear 3X Shares (TECS): ETF Research Reports
Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS): ETF Research Reports
2x Long VIX Futures ETF (UVIX): ETF Research Reports
MicroSectors Travel -3X Inverse Leveraged ETNs (FLYD): ETF Research Reports
ConvexityShares Daily 1.5x SPIKES Futures ETF (SPKY): 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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Among the key earnings releases, Amazon AMZN shares soared after reporting a blockbuster result while Apple AAPL shares slumped as slowing hardware sales. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report United States Oil ETF (USO): ETF Research Reports Direxion Daily Technology Bear 3X Shares (TECS): ETF Research Reports Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS): ETF Research Reports 2x Long VIX Futures ETF (UVIX): ETF Research Reports MicroSectors Travel -3X Inverse Leveraged ETNs (FLYD): ETF Research Reports ConvexityShares Daily 1.5x SPIKES Futures ETF (SPKY): ETF Research Reports To read this article on Zacks.com click here. Wall Street delivered downbeat performances last week with the S&P 500 losing 2.3%, the Dow Jones retreating 1.1%, the Nasdaq Composite falling 2.9% and the Russell 2000 dropping 1.2% (read: Time for Value ETFs as Buffett Indicator Signals Caution?).
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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 United States Oil ETF (USO): ETF Research Reports Direxion Daily Technology Bear 3X Shares (TECS): ETF Research Reports Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS): ETF Research Reports 2x Long VIX Futures ETF (UVIX): ETF Research Reports MicroSectors Travel -3X Inverse Leveraged ETNs (FLYD): ETF Research Reports ConvexityShares Daily 1.5x SPIKES Futures ETF (SPKY): ETF Research Reports To read this article on Zacks.com click here. Among the key earnings releases, Amazon AMZN shares soared after reporting a blockbuster result while Apple AAPL shares slumped as slowing hardware sales. ETFs in Focus 2x Long VIX Futures ETF UVIX – Up 27.2% Last Week The underlying Long VIX Futures Index expresses the daily performance of a theoretical portfolio of first and second month VIX futures contracts that are rolled daily.
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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 United States Oil ETF (USO): ETF Research Reports Direxion Daily Technology Bear 3X Shares (TECS): ETF Research Reports Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS): ETF Research Reports 2x Long VIX Futures ETF (UVIX): ETF Research Reports MicroSectors Travel -3X Inverse Leveraged ETNs (FLYD): ETF Research Reports ConvexityShares Daily 1.5x SPIKES Futures ETF (SPKY): ETF Research Reports To read this article on Zacks.com click here. Among the key earnings releases, Amazon AMZN shares soared after reporting a blockbuster result while Apple AAPL shares slumped as slowing hardware sales. ETFs in Focus 2x Long VIX Futures ETF UVIX – Up 27.2% Last Week The underlying Long VIX Futures Index expresses the daily performance of a theoretical portfolio of first and second month VIX futures contracts that are rolled daily.
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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 United States Oil ETF (USO): ETF Research Reports Direxion Daily Technology Bear 3X Shares (TECS): ETF Research Reports Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS): ETF Research Reports 2x Long VIX Futures ETF (UVIX): ETF Research Reports MicroSectors Travel -3X Inverse Leveraged ETNs (FLYD): ETF Research Reports ConvexityShares Daily 1.5x SPIKES Futures ETF (SPKY): ETF Research Reports To read this article on Zacks.com click here. Among the key earnings releases, Amazon AMZN shares soared after reporting a blockbuster result while Apple AAPL shares slumped as slowing hardware sales. Notably, Rating agency Fitch downgraded the United States’ credit rating to AA+ from AAA last week, expecting fiscal deterioration over the next three years and repeated last minute debt ceiling negotiations that can pressurize the government’s ability to pay its bills.
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2023-08-07 00:00:00 UTC
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The 10 Stocks MarketBeat Readers Like Best
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AAPL
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https://www.nasdaq.com/articles/the-10-stocks-marketbeat-readers-like-best
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MarketBeat has many tools to help investors find great investments, and 1 of them is the Trending Stocks List. The trending stocks list can be tuned to different periods but tracks the same data: the net number of new followers for stocks on Marketbeat. That may seem like a simple statistic but don’t be fooled.
The data tracks sentiment among retail investors and is a valuable source of trading information. Retail investors make up a large portion of the market and are influential in the direction of stock prices. When they move into a market, there’s a good chance it will move higher. If the analysts and institutions are also buying, the stock price could move significantly higher.
The Market Still Has FAANGs, +Microsoft
The top 4 followed stocks for the 1st week of August on MarketBeat are no surprise. The ranking from 1st to 4th is Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), and Google (NASDAQ: GOOG), representing half of the FAANG+ market. These stocks are also the most followed over the last 90 days, suggesting momentum in their respective markets.
While the stories vary from name to name, the underlying theme with these stocks is that cloud and consumer-driven businesses are solid and compounded by repositioning and efficiencies that are driving bottom-line results. AI is also a central theme, with infrastructure at the story's core.
These companies are foundational to the AI revolution; their results will show it. META isn’t the only or even the most obvious example of how AI impacts business, but its 7% boost in engagement driven by AI is a telling sign. The analysts also like them, which is another tailwind for their markets. All but 1 are in the top 10 Most Upgraded Stocks, and the outlier, Apple, is in 11th.
Tesla Is The 5th Most-Followed Stock On MarketBeat
It’s a little surprising that Amazon (NASDAQ: AMZN) is not in the top 5 Most Followed Stocks, but it isn’t surprising to find Tesla (NASDAQ: TSLA) in that position. Given the analysts ' activity, the company produced a solid beat with its 2Q results and will likely trend higher.
The analysts' consensus target is lagging the price action and weighing on the rally now but trending solidly higher. The most recent activity includes a single downgrade to Neutral. Still, it came with a price target increase that has the market fairly valued at $270 or above the recent action, and many of the newest targets are well above that level.
Regarding the business, the near-term headwind is the margin. Margin contracted YOY but resulted in a jump in sales that could gain momentum. The guidance was a little weak, only as expected, but may also be considered cautious given the jump in sales and the company’s track record of outperformance.
AMC Entertainment Gets MarketBeat Readers’ Attention
AMC Entertainment (NYSE: AMC) has caught the eye of MarketBeat readers and sits in the 6th position. The rise in interest is largely due to “Barbenheimer,” which is driving an expectation for outperformance this quarter. The risk here is that neither the analysts nor the institutions are buying, and the short interest is relatively high.
Interesting Opportunities In Positions 7 Through 10
The final 4 in this countdown include interesting names like NVIDIA (NASDAQ: NVDA), Amazon, NIO (NYSE: NIO), and AMD (NASDAQ: AMD). NVIDIA and AMD are being driven by AI interest, demand for their highest-performance chips, and the long-term outlook for AI, which is robust.
NVIDIA is the 6th most followed stock and up 1 spot compared to the 90-day data. AMD is also up 1 position to #10, which shows growing momentum for these AI-powered names.
Amazon is down from #7 to #8 but still solidly in the top 10. It’s driven by strength in AWS, core business, and the new CEO’s attention to detail. NIO, like Tesla, is supported by a ramp in production and deliveries; it produced a triple-digit increase for July and is supported by strength in its home market.
Likewise, Tesla reported a triple-digit gain in China for July, and it could have been higher if not for a scheduled shutdown.
The views and 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 ranking from 1st to 4th is Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), and Google (NASDAQ: GOOG), representing half of the FAANG+ market. The analysts' consensus target is lagging the price action and weighing on the rally now but trending solidly higher. The guidance was a little weak, only as expected, but may also be considered cautious given the jump in sales and the company’s track record of outperformance.
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The ranking from 1st to 4th is Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), and Google (NASDAQ: GOOG), representing half of the FAANG+ market. AMC Entertainment Gets MarketBeat Readers’ Attention AMC Entertainment (NYSE: AMC) has caught the eye of MarketBeat readers and sits in the 6th position. Interesting Opportunities In Positions 7 Through 10 The final 4 in this countdown include interesting names like NVIDIA (NASDAQ: NVDA), Amazon, NIO (NYSE: NIO), and AMD (NASDAQ: AMD).
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The ranking from 1st to 4th is Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), and Google (NASDAQ: GOOG), representing half of the FAANG+ market. Tesla Is The 5th Most-Followed Stock On MarketBeat It’s a little surprising that Amazon (NASDAQ: AMZN) is not in the top 5 Most Followed Stocks, but it isn’t surprising to find Tesla (NASDAQ: TSLA) in that position. Interesting Opportunities In Positions 7 Through 10 The final 4 in this countdown include interesting names like NVIDIA (NASDAQ: NVDA), Amazon, NIO (NYSE: NIO), and AMD (NASDAQ: AMD).
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The ranking from 1st to 4th is Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), and Google (NASDAQ: GOOG), representing half of the FAANG+ market. If the analysts and institutions are also buying, the stock price could move significantly higher. Given the analysts ' activity, the company produced a solid beat with its 2Q results and will likely trend higher.
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14432.0
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2023-08-07 00:00:00 UTC
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Buy Amazon Stock, but Avoid Apple for Now, Says Analyst
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https://www.nasdaq.com/articles/buy-amazon-stock-but-avoid-apple-for-now-says-analyst
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Last week’s market losses aside, there are reasons for an upbeat outlook through the second half of this year. The good news centers around several factors, including the recent positive surprises in the earnings season and a boom in AI tech.
On the macro level, stocks are doing well. After last year’s deep losses, the S&P 500 is up 17% year-to-date and the NASDAQ has gained almost 33%. The markets would seem to have plenty of slack to absorb an off day, at present.
Looking at earnings, we find that some 80% of the S&P-listed firms have reported. While overall earnings are down – by about 7%, marking the third straight quarter of declining profits – the ‘surprises’ have been mostly to the upside. Some 79% of reporting companies are beating expectations on earnings, a metric that indicates underlying strength.
And finally, we get to AI and tech. A narrow base of tech stocks are supporting the markets right now, and they in turn are finding support from investor enthusiasm over AI. Ever since OpenAI launched its ChatGPT chatbot last November, AI has been on every tech investor’s mind. The technology is in the early stages of release, but shows signs of becoming truly disruptive, in everything from online searching and advertising to IoT and autonomous vehicles. There’s good reason for investors to move toward AI.
So it’s logical, now, to look under the hood at a couple of tech leaders. Rosenblatt analyst Barton Crockett had done just that, digging deep into Amazon and Apple to gauge their attraction for investors. His conclusions are interesting, and worth a second look.
Amazon (AMZN)
First up is Amazon, the world leader in e-commerce and, with its $1.4 trillion market cap, the world’s fourth-largest publicly traded company. Amazon has been generating interest with its moves into generative AI – while the company is a relative latecomer to the AI bandwagon, it has the resources and tech savvy to make swift advances. In recent months, Amazon has unveiled an AI chatbot and image builder, Bedrock, as well as CodeWhisperer, an AI-driven software code development tool.
The company is also making a strong move into the hardware segment of AI, announcing its development and release of two new silicon semiconductor chips to rival the industry leader, Nvidia. Nvidia currently holds some 90% market share in the AI processing chip market, but that dominance opens up an opportunity for the competition. A competitor can shoulder its way in with a high-quality product at a significantly lower price point – just the route Amazon is trying to take with its Inferentia and Trainium chips.
Finally, Amazon gets plenty of investor attention for its ability to generate returns. The company, as noted, is one of the handful of $1 trillion-plus firms, and the shares are up some 63% year-to-date.
More importantly, Amazon’s shares spiked on Friday, on a weak day for the markets, on the back of an excellent 2Q23 earnings report. The top line showed total revenues of $134.4 billion, for an 11% gain year-over-year – and beating the forecast by just over $3 billion. At the bottom line, Amazon reported earnings per share of 65 cents, a figure that was 31 cents per share better than had been expected. Shares in Amazon spiked 8% after the earnings release.
Turning to analyst Crockett’s view, we find him upbeat on Amazon, seeing the company holding a strong position to benefit from consumer spending going forward and finding current support from its solid base of AI products.
Accordingly, Crockett bumped up his rating on Amazon from Neutral to Buy, and wrote of the stock, “Our past concerns -- that consensus views were too optimistic -- have abated. As the business resets, with efficiency a new focus for retail, and AI an emerging driver in cloud, the risk of impending economic headwinds looks less worrying, opening the door to higher multiple consumer growth stories.”
In addition to his upgraded Buy rating, Crockett increased the price target from $111 to $184, implying a one-year upside potential of 32%. (To watch Crockett’s track record, click here.)
The stock market’s giants have always attracted plenty of attention from the Wall Street analysts, and Amazon has 38 recent reviews on file – with a 37 to 1 breakdown of Buys over Holds, giving the stock a Strong Buy consensus rating. The shares are priced at $139.57, and their current $170.41 average price target suggests that they will gain 22% in the year ahead. (See Amazon’s stock forecast.)
Apple (AAPL)
Next up is Apple, the maker of the iconic iPhone, iPad, and MacBook lines. Apple has built long-term success on marketing lines of high-end tech products, but its thriving ecosystem also includes its highly successful Services segment that includes Apple Pay, Apple TV+, and Apple Music, amongst other offerings.
Apple is also making use of AI technology – and in-line with its history, the company is taking a creative approach to the field. Rather than try to build new AI systems, Apple this past June released a number of new software features that make use of AI to create a more seamless user experience. The company is integrating a AI-powered language model into the autocorrect feature of the iPhone line, so that the smartphone will learn how to correct its own user – by how that user types. Also, Apple is working AI into the AirPods; the Pro model of the popular earbuds will recognize when wearers are engaged in a conversation, and turn off the noise-canceling feature.
Finally, investors have long recognized that Apple is a long-term play, a consumer giant that has proven to be recession-resistant. In a recent example of the company’s resilience, wee can look at PC shipments during 2Q23. Overall, customers retrenched during the quarter, and shipments of PCs were down 13% y/y – but Apple’s MacBooks saw a 10% y/y quarterly gain in shipments.
While Apple continues its long-term trend of delivering return on investment, solid profits, and popular consumer products, the company’s stock fell 5% after its earnings release for fiscal 3Q23 due to concerns over hardware sales. While the iPhone gained market share, the device’s overall sales were still down y/y, from $40.67 billion to $39.67 billion.
All told, the company recorded its third straight quarter of dwindling sales, dialing in total revenues of $81.8 billion, slipping 1.4% y/y although the figure met Street expectations. Apple’s earnings figure, of $1.26 per diluted share, was 7 cents ahead of the forecasts but that wasn’t enough to stave off the bears.
Checking in again with Barton Crockett, we find the analyst is also somewhat pessimistic on Apple, at least for the near-term. Crockett has shifted his stance, noting that Apple’s long upward trend has put it at a peak valuation, and that it’s simply not possible to predict future successful products.
“After a mixed F3Q23 that highlights the slowdown phase in which Apple now sits, we downgrade the stock to NEUTRAL from BUY... Apple makes the most important device of the modern economy -- the iPhone -- has executed an impressive upgrade to Macs with the pivot to Apple Silicon, and is re-accelerating services. But a slowdown in the U.S. seems likely to last until a material new product category takes hold. And that is uncertain both in timing and success, leaving little reason to favor shares now trading near peak absolute and relative multiples,” Crockett says of the stock, in his recent note.
While the rating has been downgraded, Crockett’s price target for Apple, $198, indicates his belief in a 9% upside over the next 12 months.
Like Amazon, Apple has attracted plenty of Wall Street attention. The stock has 29 recent reviews, favoring Buys over Holds by 22 to 7 for a Strong Buy consensus rating. The shares have an average price target of $208.99, suggesting a 15% y/y gain from the current $181.99 trading price. (See Apple’s stock forecast.)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Next up is Apple, the maker of the iconic iPhone, iPad, and MacBook lines. The company is also making a strong move into the hardware segment of AI, announcing its development and release of two new silicon semiconductor chips to rival the industry leader, Nvidia. As the business resets, with efficiency a new focus for retail, and AI an emerging driver in cloud, the risk of impending economic headwinds looks less worrying, opening the door to higher multiple consumer growth stories.” In addition to his upgraded Buy rating, Crockett increased the price target from $111 to $184, implying a one-year upside potential of 32%.
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Apple (AAPL) Next up is Apple, the maker of the iconic iPhone, iPad, and MacBook lines. The stock market’s giants have always attracted plenty of attention from the Wall Street analysts, and Amazon has 38 recent reviews on file – with a 37 to 1 breakdown of Buys over Holds, giving the stock a Strong Buy consensus rating. While Apple continues its long-term trend of delivering return on investment, solid profits, and popular consumer products, the company’s stock fell 5% after its earnings release for fiscal 3Q23 due to concerns over hardware sales.
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Apple (AAPL) Next up is Apple, the maker of the iconic iPhone, iPad, and MacBook lines. The stock market’s giants have always attracted plenty of attention from the Wall Street analysts, and Amazon has 38 recent reviews on file – with a 37 to 1 breakdown of Buys over Holds, giving the stock a Strong Buy consensus rating. Apple has built long-term success on marketing lines of high-end tech products, but its thriving ecosystem also includes its highly successful Services segment that includes Apple Pay, Apple TV+, and Apple Music, amongst other offerings.
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Apple (AAPL) Next up is Apple, the maker of the iconic iPhone, iPad, and MacBook lines. And finally, we get to AI and tech. There’s good reason for investors to move toward AI.
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14433.0
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2023-08-07 00:00:00 UTC
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US STOCKS-Wall St starts week higher; U.S. inflation in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-starts-week-higher-u.s.-inflation-in-focus
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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.
Yellow tumbles after filing for bankruptcy protection
Berkshire climbs on record operating profit
Tyson Foods falls after missing quarterly sales estimates
Tesla down after CFO Kirkhorn steps down
Indexes up: Dow 0.69%, S&P 0.42%, Nasdaq 0.05%
Updated at 09:51 a.m. ET/ 1351 GMT
By Bansari Mayur Kamdar and Johann M Cherian
Aug 7 (Reuters) - Wall Street climbed higher on Monday following a choppy week, with investors looking ahead to a highly awaited U.S. inflation report due later in the week that could test the market's sharp recovery this year.
The main stock indexes ended the week lower on Friday with some investors taking profits after months of gains due to worries over economic data, mixed earnings and rising Treasury yields.
U.S. stocks have sharply rallied in 2023, with the benchmark S&P 500 .SPX clocking 17% gains year to date, fueled by optimism around artificial intelligence and hopes of a soft landing for the world's largest economy.
The U.S. consumer price data on Thursday could offer cues to the Federal Reserve's monetary policy path, after an employment report on Friday re-ignited fears that the central bank could keep rates higher for longer.
"This month there is more than usual focus on the economic data coming out as the Fed will have more time to digest and synthesize the data," said Peter Andersen, founder of Andersen Capital Management.
"My hypothesis is the Fed's last hike was at its last meeting, that the economic data between now and the next Federal Reserve meeting in September will show consistent success in taming inflation."
New York Fed President John Williams, a voting member this year, said he expects interest rates could begin to come down in early 2024, as per a report, while Governor Michelle Bowman said additional interest rate hikes will likely be needed in order to lower inflation to the 2% target.
At 09:51 a.m. ET, the Dow Jones Industrial Average .DJI was up 241.97 points, or 0.69%, at 35,307.59, the S&P 500 .SPX was up 18.92 points, or 0.42%, at 4,496.95, and the Nasdaq Composite .IXIC was up 6.62 points, or 0.05%, at 13,915.86.
TeslaTSLA.Oslid 2.8% after the electric vehicle giant said that Vaibhav Taneja will replace Zachary Kirkhorn as its finance chief.
Megacap growth and technology stocks Amazon.com AMZN.O and Nvidia NVDA.O inched higher, while AppleAAPL.O, the world's most valuable firm, fell 1.8% extending its sharp losses from the previous session following a gloomy iPhone sales report.
Overall, second-quarter earnings have been better-than-expected so far, with 79.1% of the 422 S&P 500 companies that have reported as of Friday beating analysts' estimates, according to Refinitiv data.
Class B shares of Berkshire HathawayBRKb.N gained 2.7% after the Warren Buffett-led conglomerate posted its highest-ever quarterly operating profit.
Sage TherapeuticsSAGE.O sank 48.4%, while Biogen BIIB.O slipped 0.4% after the U.S. drug regulator declined to approve the companies' joint first-of-its-kind postpartum depression (PPD) pill.
Tyson FoodsTSN.N slid 7.8% after the meat packer disappointed Wall Street expectations for third-quarter revenue, as customers scaled back on meat purchases.
Yellow CorpYELL.O, a nearly 100-year-old U.S. trucking firm, filed for Chapter 11 bankruptcy protection on Sunday, dragging its shares 32.2% lower.
Advancing issues outnumbered decliners by a 1.51-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.22-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and four new lows, while the Nasdaq recorded 28 new highs and 65 new lows.
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel)
((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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Megacap growth and technology stocks Amazon.com AMZN.O and Nvidia NVDA.O inched higher, while AppleAAPL.O, the world's most valuable firm, fell 1.8% extending its sharp losses from the previous session following a gloomy iPhone sales report. Yellow tumbles after filing for bankruptcy protection Berkshire climbs on record operating profit Tyson Foods falls after missing quarterly sales estimates Tesla down after CFO Kirkhorn steps down Indexes up: Dow 0.69%, S&P 0.42%, Nasdaq 0.05% Updated at 09:51 a.m. ET/ 1351 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - Wall Street climbed higher on Monday following a choppy week, with investors looking ahead to a highly awaited U.S. inflation report due later in the week that could test the market's sharp recovery this year. The main stock indexes ended the week lower on Friday with some investors taking profits after months of gains due to worries over economic data, mixed earnings and rising Treasury yields.
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Megacap growth and technology stocks Amazon.com AMZN.O and Nvidia NVDA.O inched higher, while AppleAAPL.O, the world's most valuable firm, fell 1.8% extending its sharp losses from the previous session following a gloomy iPhone sales report. Yellow tumbles after filing for bankruptcy protection Berkshire climbs on record operating profit Tyson Foods falls after missing quarterly sales estimates Tesla down after CFO Kirkhorn steps down Indexes up: Dow 0.69%, S&P 0.42%, Nasdaq 0.05% Updated at 09:51 a.m. ET/ 1351 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - Wall Street climbed higher on Monday following a choppy week, with investors looking ahead to a highly awaited U.S. inflation report due later in the week that could test the market's sharp recovery this year. The main stock indexes ended the week lower on Friday with some investors taking profits after months of gains due to worries over economic data, mixed earnings and rising Treasury yields.
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Megacap growth and technology stocks Amazon.com AMZN.O and Nvidia NVDA.O inched higher, while AppleAAPL.O, the world's most valuable firm, fell 1.8% extending its sharp losses from the previous session following a gloomy iPhone sales report. Yellow tumbles after filing for bankruptcy protection Berkshire climbs on record operating profit Tyson Foods falls after missing quarterly sales estimates Tesla down after CFO Kirkhorn steps down Indexes up: Dow 0.69%, S&P 0.42%, Nasdaq 0.05% Updated at 09:51 a.m. ET/ 1351 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - Wall Street climbed higher on Monday following a choppy week, with investors looking ahead to a highly awaited U.S. inflation report due later in the week that could test the market's sharp recovery this year. The main stock indexes ended the week lower on Friday with some investors taking profits after months of gains due to worries over economic data, mixed earnings and rising Treasury yields.
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Megacap growth and technology stocks Amazon.com AMZN.O and Nvidia NVDA.O inched higher, while AppleAAPL.O, the world's most valuable firm, fell 1.8% extending its sharp losses from the previous session following a gloomy iPhone sales report. Yellow tumbles after filing for bankruptcy protection Berkshire climbs on record operating profit Tyson Foods falls after missing quarterly sales estimates Tesla down after CFO Kirkhorn steps down Indexes up: Dow 0.69%, S&P 0.42%, Nasdaq 0.05% Updated at 09:51 a.m. ET/ 1351 GMT By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - Wall Street climbed higher on Monday following a choppy week, with investors looking ahead to a highly awaited U.S. inflation report due later in the week that could test the market's sharp recovery this year. The main stock indexes ended the week lower on Friday with some investors taking profits after months of gains due to worries over economic data, mixed earnings and rising Treasury yields.
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14434.0
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2023-08-07 00:00:00 UTC
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1 FAANG Stock That's a No-Brainer Buy in August and 1 to Avoid
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AAPL
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https://www.nasdaq.com/articles/1-faang-stock-thats-a-no-brainer-buy-in-august-and-1-to-avoid
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nan
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nan
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Volatility has been the name of the game on Wall Street for much of this decade. The COVID-19 crash saw the major indexes plummet into bear market territory in a matter of weeks, while the 2021 bull market sent Wall Street soaring to new heights. This was followed by another bear market in 2022 and a furious rally out of the gates for growth stocks this year.
When equities are whipsawed on Wall Street, investors turn their attention to time-tested outperformers, such as the FAANG stocks.
When I say "FAANG," I'm referring to:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Image source: Getty Images.
Over the trailing decade, these five stocks have absolutely run circles around the broad-market indexes. In order, Netflix, Apple, Amazon, Meta Platforms, and Alphabet (Class A shares, GOOGL) have respectively gained 1,122%, 1,066%, 743%, 726%, and 466% since Aug. 2, 2013. By comparison, the S&P 500 is higher by "just" 164% over the trailing-10-year period.
Competitive advantages are what fuel the FAANG stocks.
Meta Platforms' top-notch social media real estate lured nearly 3.9 billion monthly active users (MAUs) across its family of apps in the June-ended quarter.
Apple has consistently held the majority share of U.S. smartphone sales for years, and it boasts Wall Street's beefiest capital-return program -- $586 billion in share buybacks over the past 10 years.
Amazon accounts for approximately 40% of U.S. online retail sales and is the world's leading provider of cloud infrastructure services via Amazon Web Services.
Netflix is the domestic and international market share leader in streaming services.
Alphabet's Google has topped 90% of global internet search share every month for more than eight years.
These are dominant companies that generally bring in a boatload of cash flow and/or reinvest a mountain of operating cash flow back into their respective businesses.
That said, not all FAANG stocks are cut from the same cloth. As we move into August, one FAANG stock stands out as a no-brainer buy, while another tried-and-true outperformer would be best avoided by investors.
The FAANG stock that's a no-brainer buy in August: Meta Platforms
Despite already being the top-performing FAANG stock in 2023, social media company Meta Platforms is the no-brainer stock to buy in August.
Let's tackle the elephant in the room: The advertising environment is challenging. Meta generated 98.43% of its $32 billion in second-quarter sales from advertising, which means its success and the success of its ad-driven social media platforms are tied at the hip to the health of the U.S. economy.
Certain economic data points and recession-probability tools do suggest the U.S. economy could weaken later this year or perhaps in early 2024. But it's important to widen your investing lens and look at how ad-driven companies perform over long periods.
Even though downturns are a perfectly normal part of the economic cycle, all 12 U.S. recessions following World War II lasted between two and 18 months. On the other hand, periods during which the economy expanded were almost always measured in multiple years.
A company like Meta, which attracted 3.88 billion MAUs to Facebook, Instagram, WhatsApp, and Facebook Messenger in the June-ended quarter, won't have any trouble commanding superior ad-pricing power during these disproportionately long periods of expansion.
Meta Platforms has also demonstrated that it can pull levers when necessary. One of the factors that sparked its triple-digit rally this year was its reduced total expenses forecast. Even with this full-year spending forecast bumped up a tad to account for legal expenses incurred during the second quarter, it shows that management is being mindful of costs in a rising interest rate environment.
Something else for investors to consider is that Meta has the available cash and ongoing cash flow from operations to take chances that virtually no other social media platforms can. The company closed out June with $53.4 billion in cash, cash equivalents, and marketable securities compared to $18.4 billion in long-term debt. That's approximately $35 billion in net cash, which comes atop the $31.3 billion the company has generated in net cash from operating activities since 2023 began.
The metaverse remains an opportunity that could provide significant revenue for the company later this decade. Although Reality Labs is losing money hand over fist -- $7.73 billion in operating losses through the first six months of 2023 -- the spending that CEO Mark Zuckerberg is overseeing in virtual/augmented reality puts the company on track to become an eventual on-ramp to the metaverse.
If you need one more solid reason to buy Meta stock, let it be the company's still inexpensive valuation. Over the trailing five years, Meta has traded at an average price-to-cash-flow multiple of 15.8. Investors can pick up shares right now for less than 11 times the forecast cash flow in 2024. With the exception of its 2022 swoon, it's the cheapest Meta has been, relative to its future cash flow, since becoming a public company in 2012.
Image source: Getty Images.
The FAANG stock to avoid in August: Netflix
However, not all FAANG stocks are worth adding at the moment. Among these five industry-leading companies, streaming platform Netflix can be left on mute.
To give credit where credit is due, Netflix has delivered on its first-mover advantages in the streaming space. Whereas new and legacy streaming services are bleeding red as they build out their content libraries and/or grow their subscriber bases, Netflix has been profitable on a recurring basis for years. In other words, it's shown Wall Street that its operating model works...just in case its 238.4 million global streaming paid memberships didn't already imply it.
Additionally, Netflix's free cash flow (FCF) has come in meaningfully higher than analyst expectations in 2023. All told, the company has generated $3.46 billion in FCF through the first six months of the year.
But it's not all peaches and cream for the world's leading streaming service.
Despite being profitable on an adjusted basis, Netflix's subscriber growth has meaningfully slowed due to growing competition from legacy media providers. Legacy media companies have deep pockets, rich histories, and sizable content libraries that can genuinely challenge Netflix's first-mover advantages. Both domestically and internationally, Netflix's share of the streaming market is shrinking.
Another potential monkey wrench for Netflix is the ongoing Hollywood strikes by the Writers Guild of America and Screen Actors Guild-American Federation of Television and Radio Artists. While it's certainly debatable that Netflix is in a better position than its legacy peers to withstand a lengthy strike, a protracted standoff could do sustained damage to the industry and delay new content creation. Let's not forget that Netflix's original content is what tends to draw new users to the platform and helps retain its 238 million-plus subscribers.
The third factor that should have investors thinking twice about Netflix stock is the company's valuation. On the surface, Netflix's forward price-to-earnings (P/E) ratio of 28 doesn't seem egregiously high. After all, the forward P/E ratio of the benchmark S&P 500 is 19.3 as of Aug. 2, and Netflix has historically delivered a superior growth rate to the broader market.
The issue is once you delve into cash flow. Though its cash flow is markedly improved in 2023, Netflix is regularly the priciest FAANG stock relative to Wall Street's forward-year consensus cash flow. While you can nab Meta Platforms for 10.8 times forecast cash flow in 2024, you're paying nearly 30 times cash flow to buy shares of the slower-growing Netflix. That's not a bargain for a company with a shrinking global streaming market share.
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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, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. Meta Platforms' top-notch social media real estate lured nearly 3.9 billion monthly active users (MAUs) across its family of apps in the June-ended quarter. Even with this full-year spending forecast bumped up a tad to account for legal expenses incurred during the second quarter, it shows that management is being mindful of costs in a rising interest rate environment.
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When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. Despite being profitable on an adjusted basis, Netflix's subscriber growth has meaningfully slowed due to growing competition from legacy media providers. While you can nab Meta Platforms for 10.8 times forecast cash flow in 2024, you're paying nearly 30 times cash flow to buy shares of the slower-growing Netflix.
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When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. The FAANG stock that's a no-brainer buy in August: Meta Platforms Despite already being the top-performing FAANG stock in 2023, social media company Meta Platforms is the no-brainer stock to buy in August. While you can nab Meta Platforms for 10.8 times forecast cash flow in 2024, you're paying nearly 30 times cash flow to buy shares of the slower-growing Netflix.
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When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. Volatility has been the name of the game on Wall Street for much of this decade. Legacy media companies have deep pockets, rich histories, and sizable content libraries that can genuinely challenge Netflix's first-mover advantages.
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14435.0
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2023-08-07 00:00:00 UTC
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US STOCKS-Futures rise following turbulent week; U.S. inflation in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-following-turbulent-week-u.s.-inflation-in-focus-0
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nan
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nan
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By Bansari Mayur Kamdar and Johann M Cherian
Aug 7 (Reuters) - U.S. stock index futures rose on Monday after a rough week when elevated bond yields pressured rate-sensitive stocks, with all eyes now on a highly awaited U.S. inflation report that offers the latest test to Wall Street's sharp recovery this year.
Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields.
U.S. stocks have sharply rallied in 2023, with the benchmark S&P 500 .SPX clocking 16.6% gains year to date, fueled by optimism around artificial intelligence and hopes of a soft landing for the world's largest economy.
Both Bank of America and JPMorgan last week ditched their forecasts for a U.S. recession.
Investors are focused on U.S. consumer price reading on Thursday that could offer cues to the Federal Reserve's monetary policy path, after an employment report on Friday re-ignited fears that the central bank could keep rates higher for longer.
"In our view, the picture on the labor market remains mixed," Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note.
"While the data does not support a rate hike from the Fed’s next policy meeting on 20 September, the central bank will likely want to see further softening."
New York Fed President John Williams, a voting member this year, said he expects interest rates could begin to come down in early 2024, as per a New York Times report.Investors will also parse comments, expected later in the day, by Fed Board Governor Michelle Bowman.
At 6:58 a.m. ET, Dow e-minis 1YMcv1 were up 43 points, or 0.12%, S&P 500 e-minis EScv1 were up 11 points, or 0.24%, and Nasdaq 100 e-minis NQcv1 were up 62.75 points, or 0.41%.
Megacap growth and technology stocks like Amazon.com AMZN.O and Nvidia NVDA.O added 0.7% and 0.9%, respectively, in premarket trading, while AppleAAPL.O, the world's most valuable firm, recovered 0.4% after sharp losses in the previous session following its gloomy iPhone sales report.
Overall, second-quarter earnings have been better-than-expected so far, with 79.1% of the 422 S&P 500 companies that have reported as of Friday beating analysts' estimates, according to Refinitiv data.
Class B shares of Berkshire HathawayBRKb.N gained 1.7% in trading before the bell after the Warren Buffett-led conglomerate posted its highest-ever quarterly operating profit.
Yellow CorpYELL.O, a nearly 100-year-old U.S. trucking firm, filed for Chapter 11 bankruptcy protection on Sunday, dragging its shares 26.1% lower.
U.S.-listed shares of BioNTechBNTX.O shed 2.4% after the COIVD-19 vaccine maker cut its drug development budget for this year after quarterly revenues were hurt by a plunge in pandemic-related demand.
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Maju Samuel)
((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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Megacap growth and technology stocks like Amazon.com AMZN.O and Nvidia NVDA.O added 0.7% and 0.9%, respectively, in premarket trading, while AppleAAPL.O, the world's most valuable firm, recovered 0.4% after sharp losses in the previous session following its gloomy iPhone sales report. Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields. Investors are focused on U.S. consumer price reading on Thursday that could offer cues to the Federal Reserve's monetary policy path, after an employment report on Friday re-ignited fears that the central bank could keep rates higher for longer.
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Megacap growth and technology stocks like Amazon.com AMZN.O and Nvidia NVDA.O added 0.7% and 0.9%, respectively, in premarket trading, while AppleAAPL.O, the world's most valuable firm, recovered 0.4% after sharp losses in the previous session following its gloomy iPhone sales report. By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - U.S. stock index futures rose on Monday after a rough week when elevated bond yields pressured rate-sensitive stocks, with all eyes now on a highly awaited U.S. inflation report that offers the latest test to Wall Street's sharp recovery this year. Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields.
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Megacap growth and technology stocks like Amazon.com AMZN.O and Nvidia NVDA.O added 0.7% and 0.9%, respectively, in premarket trading, while AppleAAPL.O, the world's most valuable firm, recovered 0.4% after sharp losses in the previous session following its gloomy iPhone sales report. By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - U.S. stock index futures rose on Monday after a rough week when elevated bond yields pressured rate-sensitive stocks, with all eyes now on a highly awaited U.S. inflation report that offers the latest test to Wall Street's sharp recovery this year. Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields.
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Megacap growth and technology stocks like Amazon.com AMZN.O and Nvidia NVDA.O added 0.7% and 0.9%, respectively, in premarket trading, while AppleAAPL.O, the world's most valuable firm, recovered 0.4% after sharp losses in the previous session following its gloomy iPhone sales report. By Bansari Mayur Kamdar and Johann M Cherian Aug 7 (Reuters) - U.S. stock index futures rose on Monday after a rough week when elevated bond yields pressured rate-sensitive stocks, with all eyes now on a highly awaited U.S. inflation report that offers the latest test to Wall Street's sharp recovery this year. Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields.
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14436.0
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2023-08-07 00:00:00 UTC
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Stocks Set to Open Higher as Investors Await U.S. Inflation Data and More Corporate Earnings
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AAPL
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https://www.nasdaq.com/articles/stocks-set-to-open-higher-as-investors-await-u.s.-inflation-data-and-more-corporate
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nan
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nan
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September S&P 500 futures (ESU23) are up +0.26%, and September Nasdaq 100 E-Mini futures (NQU23) are up +0.43% this morning as market participants looked ahead to the latest U.S. inflation data and more corporate earnings.
In Friday’s trading session, Wall Street’s major averages ended lower, with the benchmark S&P 500 and tech-heavy Nasdaq 100 dropping to 3-week lows and the blue-chip Dow notching a 2-week low. Apple Inc (AAPL) plunged over -4% after the U.S. tech giant reported its third consecutive quarter of declining sales and projected a similar performance in Q4. Cybersecurity stocks also tumbled, weighed down by an about -25% drop in shares of Fortinet Inc (FTNT) after the company reported mixed Q2 results and cut its annual sales guidance. In addition, Microchip Technology Inc (MCHP) slid over -6% after reporting in-line Q1 results and issuing a tepid Q2 outlook. On the bullish side, Amazon.com Inc (AMZN) soared more than +8% after the e-commerce giant posted stronger-than-expected Q2 results and delivered upbeat Q3 guidance.
The U.S. Labor Department’s report on Friday showed that the U.S. economy added 187K jobs last month, lower than the expected 200K, pointing to a continued slowdown in job gains. At the same time, U.S. July average hourly earnings came in at +0.4% m/m and +4.4% y/y, stronger than expectations of +0.3% m/m and +4.2% y/y. In addition, the U.S. unemployment rate unexpectedly fell to 3.5% in July from 3.6% in June.
“This is still not the picture of the labor market we would expect to see if the economy were in danger of decelerating dramatically in the short term, although without question there are signs of moderation,” said Rick Rieder, chief investment officer of Global Fixed Income at BlackRock.
Atlanta Fed President Raphael Bostic stated on Friday that U.S. employment gains are decelerating in an orderly manner, and he believes there is no necessity to increase interest rates further to bring inflation down. Also, Chicago Fed President Austan Goolsbee expressed the need for policymakers to exercise patience during the disinflation process, hoping the central bank can achieve its 2% inflation target without triggering a recession. At the same time, Fed Governor Michelle Bowman stated on Saturday that the U.S. central bank might need to increase rates further to completely restore price stability.
Meanwhile, U.S. rate futures have priced in an 84.5% probability of no hike and a 15.5% chance of a 25 basis point rate increase at the next central bank meeting in September.
Second-quarter earnings season rolls on, and investors await new reports from major global companies this week, including Eli Lilly (LLY), United Parcel Service (UPS), and Walt Disney (DIS).
In the coming week, U.S. CPI data for July will be the main highlight. Also, investors will be eyeing a spate of economic data, including U.S. Trade Balance, Exports, Imports, Wholesale Inventories, Wholesale Trade Sales, Crude Oil Inventories, Core CPI, Initial Jobless Claims, PPI, Core PPI, and Michigan Consumer Sentiment (preliminary).
The U.S. economic data slate is mainly empty on Monday. However, investors will likely focus on speeches from Philadelphia Fed President Patrick Harker, Atlanta Fed President Raphael Bostic, and Fed Governor Michelle Bowman.
In the bond markets, United States 10-Year rates are at 4.101%, up +0.96%.
The Euro Stoxx 50 futures are down -0.48% this morning as investors weighed the implications of a mixed U.S. jobs report on the Federal Reserve’s future policy decisions while anticipating inflation data from China and the United States later in the week. Data on Monday showed that German industrial production experienced a more significant decline than expected in June. Meanwhile, German short-term bonds rose after the Bundesbank announced its decision to cease paying interest on domestic government deposits from October 1st. In corporate news, shares of Postnl (PNL.NA) climbed over +6% after the Dutch postal firm raised its 2023 operating profit guidance. Also, Ohb Se (OHB.D.DX) soared more than +32% after announcing a voluntary public tender offer by U.S. investment company KKR for its outstanding shares.
U.K.’s Halifax House Price Index, Germany’s Industrial Production, and Eurozone’s Sentix Investor Confidence data were released today.
U.K. July Halifax House Price Index has been reported at -0.3% m/m and -2.4% y/y, compared to expectations of 0.0% m/m and -3.8% y/y.
The German June Industrial Production stood at -1.5% m/m, weaker than expectations of -0.5% m/m.
Eurozone August Sentix Investor Confidence came in at -18.9, stronger than expectations of -23.4.
Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.59%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.19%.
China’s Shanghai Composite closed lower today as investors expressed concerns about the absence of significant stimulus measures from Beijing, raising worries that deflationary pressures could continue to weaken the struggling economy. The latest official data showed a sharp decline in foreign direct investment during the second quarter, alongside a decrease in outbound tourism spending, highlighting the difficulties confronting China’s economy. Meanwhile, Chinese pharmaceutical stocks plunged on Monday amid reports of an expanding anti-bribery campaign within the health sector. Chinese property stocks listed in Hong Kong also retreated, with Country Garden Holdings Co Ltd tumbling over -7% after rating agency Moody’s further downgraded the company into junk territory amid a brewing real estate crisis in China. Investor focus is now squarely on Chinese inflation and trade data due later in the week.
“Weakening external demand will continue to be a net drag in the third quarter. Deflationary pressures will likely prevail. We believe that most of this downside will be traced back to weaker domestic demand and spillovers from contractionary upstream prices,” said Carlos Casanova, a senior economist at UBP.
Japan’s Nikkei 225 Stock Index closed higher today as upbeat corporate earnings results and stabling domestic bond yields outweighed the headwinds caused by a decline on Wall Street. According to a summary of opinions from the Bank of Japan’s July meeting, one member suggested that the central bank should consider allowing greater flexibility in yield curve control. Meanwhile, Astellas Pharma climbed about +10% and was the top percentage gainer on the Nikkei after the U.S. Food and Drug Administration approved the drugmaker’s Izervay for the treatment of age-related macular degeneration. On the bearish side, heavyweight technology stocks retreated, with Tokyo Electron falling about -1% and Advantest dropping more than -1%. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -2.35% to 20.37.
Pre-Market U.S. Stock Movers
Yellow Corp (YELL) plunged about -26% in pre-market trading after the trucking company filed for Chapter 11 bankruptcy protection.
Cloudflare Inc (NET) fell more than -3% in pre-market trading after Guggenheim downgraded the stock to Sell from Neutral.
Rocket Companies Inc (RKT) rose over +1% in pre-market trading after Keefe Bruyette upgraded the stock to Market Perform from Underperform.
DraftKings Inc (DKNG) gained about +2% in pre-market trading after Wells Fargo upgraded the stock to Overweight from Equal Weight.
Monster Beverage Corp (MNST) climbed over +2% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral.
United Airlines Holdings Inc (UAL) rose more than +1% in pre-market trading after Redburn upgraded the stock to Buy from Neutral.
Wayfair Inc (W) soared about +3% in pre-market trading after UBS upgraded the stock to Buy from Neutral.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - August 7th
Itau Unibanco (ITUB), KKR & Co (KKR), Palantir (PLTR), ONEOK (OKE), BioNTech (BNTX), Coterra Energy (CTRA), IFF (IFF), Tyson Foods (TSN), Skyworks (SWKS), Lucid Group (LCID), Celanese (CE), Viatris (VTRS), Aecom Technology (ACM), Essential Utilities (WTRG), Henry Schein (HSIC), Shockwave Medical (SWAV), Primerica (PRI), Elanco Animal Health (ELAN), Five9 (FIVN), FS KKR Capital (FSK), Teradata (TDC), Spirit Realty (SRC), Kinetik Holdings (KNTK), Bellring (BRBR), Powerschool Holdings (PWSC), American Equity Inv. Life (AEL), National Storage Affiliates Trust (NSA), Cactus (WHD), ICU Medical (ICUI), Hawaiian Electric Industries (HE), Cabot Corp (CBT), Ringcentral Inc (RNG), Nelnet (NNI), Transportadora Gas ADR (TGS), Freshpet Inc (FRPT), Arrowhead Pharma (ARWR), Kosmos Energy (KOS), Kemper (KMPR), Tidewater (TDW), Crane NXT (CXT), Axsome Therapeutics Inc (AXSM), American States Water (AWR), Sabra (SBRA), Treehouse Foods (THS), Maravai Lifesciences (MRVI), Alteryx (AYX), Zai Lab (ZLAB), ACV Auctions (ACVA), Golub (GBDC), Helios Tech (HLIO), EverCommerce (EVCM), Gogo Inc (GOGO), Par Pacific Holdings (PARR), Ready Capital (RC), Sterling Construction (STRL), Compass (COMP), Highpeak Energy Acquisition (HPK), Delek US Energy (DK), Delek Logistics Partners LP (DKL), Apollo Medical (AMEH), Hims Hers Health (HIMS), Primoris (PRIM), Diamond Offshore Drilling (DO), ePlus (PLUS), Jeld-Wen Holding (JELD), Genius Sports (GENI), Bridge Investment Group Holdings (BRDG), Veeco (VECO), Arcus Biosciences (RCUS), Danaos (DAC), Service Properties (SVC), Paymentus (PAY), Apartment Invest (AIV), Chegg Inc (CHGG), MannKind (MNKD).
More Stock Market News from Barchart
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On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc (AAPL) plunged over -4% after the U.S. tech giant reported its third consecutive quarter of declining sales and projected a similar performance in Q4. “This is still not the picture of the labor market we would expect to see if the economy were in danger of decelerating dramatically in the short term, although without question there are signs of moderation,” said Rick Rieder, chief investment officer of Global Fixed Income at BlackRock. Chinese property stocks listed in Hong Kong also retreated, with Country Garden Holdings Co Ltd tumbling over -7% after rating agency Moody’s further downgraded the company into junk territory amid a brewing real estate crisis in China.
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Apple Inc (AAPL) plunged over -4% after the U.S. tech giant reported its third consecutive quarter of declining sales and projected a similar performance in Q4. Also, investors will be eyeing a spate of economic data, including U.S. Trade Balance, Exports, Imports, Wholesale Inventories, Wholesale Trade Sales, Crude Oil Inventories, Core CPI, Initial Jobless Claims, PPI, Core PPI, and Michigan Consumer Sentiment (preliminary). However, investors will likely focus on speeches from Philadelphia Fed President Patrick Harker, Atlanta Fed President Raphael Bostic, and Fed Governor Michelle Bowman.
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Apple Inc (AAPL) plunged over -4% after the U.S. tech giant reported its third consecutive quarter of declining sales and projected a similar performance in Q4. You can see more pre-market stock movers here Today’s U.S. Earnings Spotlight: Monday - August 7th Itau Unibanco (ITUB), KKR & Co (KKR), Palantir (PLTR), ONEOK (OKE), BioNTech (BNTX), Coterra Energy (CTRA), IFF (IFF), Tyson Foods (TSN), Skyworks (SWKS), Lucid Group (LCID), Celanese (CE), Viatris (VTRS), Aecom Technology (ACM), Essential Utilities (WTRG), Henry Schein (HSIC), Shockwave Medical (SWAV), Primerica (PRI), Elanco Animal Health (ELAN), Five9 (FIVN), FS KKR Capital (FSK), Teradata (TDC), Spirit Realty (SRC), Kinetik Holdings (KNTK), Bellring (BRBR), Powerschool Holdings (PWSC), American Equity Inv. Life (AEL), National Storage Affiliates Trust (NSA), Cactus (WHD), ICU Medical (ICUI), Hawaiian Electric Industries (HE), Cabot Corp (CBT), Ringcentral Inc (RNG), Nelnet (NNI), Transportadora Gas ADR (TGS), Freshpet Inc (FRPT), Arrowhead Pharma (ARWR), Kosmos Energy (KOS), Kemper (KMPR), Tidewater (TDW), Crane NXT (CXT), Axsome Therapeutics Inc (AXSM), American States Water (AWR), Sabra (SBRA), Treehouse Foods (THS), Maravai Lifesciences (MRVI), Alteryx (AYX), Zai Lab (ZLAB), ACV Auctions (ACVA), Golub (GBDC), Helios Tech (HLIO), EverCommerce (EVCM), Gogo Inc (GOGO), Par Pacific Holdings (PARR), Ready Capital (RC), Sterling Construction (STRL), Compass (COMP), Highpeak Energy Acquisition (HPK), Delek US Energy (DK), Delek Logistics Partners LP (DKL), Apollo Medical (AMEH), Hims Hers Health (HIMS), Primoris (PRIM), Diamond Offshore Drilling (DO), ePlus (PLUS), Jeld-Wen Holding (JELD), Genius Sports (GENI), Bridge Investment Group Holdings (BRDG), Veeco (VECO), Arcus Biosciences (RCUS), Danaos (DAC), Service Properties (SVC), Paymentus (PAY), Apartment Invest (AIV), Chegg Inc (CHGG), MannKind (MNKD).
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Apple Inc (AAPL) plunged over -4% after the U.S. tech giant reported its third consecutive quarter of declining sales and projected a similar performance in Q4. In the bond markets, United States 10-Year rates are at 4.101%, up +0.96%. Data on Monday showed that German industrial production experienced a more significant decline than expected in June.
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14437.0
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2023-08-07 00:00:00 UTC
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US STOCKS-Futures rise following turbulent week; U.S. inflation in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-following-turbulent-week-u.s.-inflation-in-focus
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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 0.18%, S&P 0.31%, Nasdaq 0.49%
Aug 7 (Reuters) - U.S. stock index futures rose on Monday after a rough week when elevated bond yields pressured rate-sensitive stocks, with all eyes now on a highly awaited U.S. inflation report that offers the latest test to Wall Street's sharp recovery this year.
Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields.
U.S. stocks have sharply rallied in 2023, with the benchmark S&P 500 .SPX clocking 16.6% gains year to date, fueled by optimism around artificial intelligence and hopes of a soft landing for the world's largest economy.
Both Bank of America and JPMorgan last week ditched their forecasts for a U.S. recession.
Investors are focused on U.S. consumer price reading on Thursday that could offer cues to the Federal Reserve's monetary policy path, after an employment report on Friday re-ignited fears that the central bank could keep rates higher for longer.
"In our view, the picture on the labor market remains mixed," Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note.
"While the data does not support a rate hike from the Fed’s next policy meeting on 20 September, the central bank will likely want to see further softening."
Rising yields on U.S. Treasuries, that often dull the appeal for stocks, also remained in focus for investors, with the yield on the 10-year note US10YT=RR creeping higher ahead of the Treasury Department's bumper $103 billion refunding.
At 05:28 a.m. ET, Dow e-minis 1YMcv1 were up 62 points, or 0.18%, S&P 500 e-minis EScv1 were up 14 points, or 0.31%, and Nasdaq 100 e-minis NQcv1 were up 75.5 points, or 0.49%.
Megacap growth and technology stocks like Amazon.com AMZN.O and Nvidia NVDA.O added 0.8% and 1.1%, respectively, in premarket trading, while AppleAAPL.O, the world's most valuable firm, recovered 0.5% after sharp losses in the previous session following its gloomy iPhone sales report.
Overall, second-quarter earnings have been better-than-expected so far, with 79.1% of the 422 S&P 500 companies that have reported as of Friday beating analysts' estimates, according to Refinitiv data.
Class B shares of Berkshire HathawayBRKb.N gained 1.3% in trading before the bell after the Warren Buffett-led conglomerate posted its highest-ever quarterly operating profit.
Yellow CorpYELL.O, a nearly 100-year-old U.S. trucking firm, filed for Chapter 11 bankruptcy protection on Sunday, dragging its shares 25.2% lower.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Maju Samuel)
((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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Megacap growth and technology stocks like Amazon.com AMZN.O and Nvidia NVDA.O added 0.8% and 1.1%, respectively, in premarket trading, while AppleAAPL.O, the world's most valuable firm, recovered 0.5% after sharp losses in the previous session following its gloomy iPhone sales report. Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields. Investors are focused on U.S. consumer price reading on Thursday that could offer cues to the Federal Reserve's monetary policy path, after an employment report on Friday re-ignited fears that the central bank could keep rates higher for longer.
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Megacap growth and technology stocks like Amazon.com AMZN.O and Nvidia NVDA.O added 0.8% and 1.1%, respectively, in premarket trading, while AppleAAPL.O, the world's most valuable firm, recovered 0.5% after sharp losses in the previous session following its gloomy iPhone sales report. Futures up: Dow 0.18%, S&P 0.31%, Nasdaq 0.49% Aug 7 (Reuters) - U.S. stock index futures rose on Monday after a rough week when elevated bond yields pressured rate-sensitive stocks, with all eyes now on a highly awaited U.S. inflation report that offers the latest test to Wall Street's sharp recovery this year. Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields.
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Megacap growth and technology stocks like Amazon.com AMZN.O and Nvidia NVDA.O added 0.8% and 1.1%, respectively, in premarket trading, while AppleAAPL.O, the world's most valuable firm, recovered 0.5% after sharp losses in the previous session following its gloomy iPhone sales report. Futures up: Dow 0.18%, S&P 0.31%, Nasdaq 0.49% Aug 7 (Reuters) - U.S. stock index futures rose on Monday after a rough week when elevated bond yields pressured rate-sensitive stocks, with all eyes now on a highly awaited U.S. inflation report that offers the latest test to Wall Street's sharp recovery this year. Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields.
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Megacap growth and technology stocks like Amazon.com AMZN.O and Nvidia NVDA.O added 0.8% and 1.1%, respectively, in premarket trading, while AppleAAPL.O, the world's most valuable firm, recovered 0.5% after sharp losses in the previous session following its gloomy iPhone sales report. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields.
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14438.0
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2023-08-07 00:00:00 UTC
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3 Best Warren Buffett Stocks to Buy and Hold in a New Bull Market
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AAPL
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https://www.nasdaq.com/articles/3-best-warren-buffett-stocks-to-buy-and-hold-in-a-new-bull-market
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nan
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nan
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A new bull market is here -- or almost here, depending on your perspective. Some investors declare a new bull market for the S&P 500 when the index rebounds at least 20% after falling by that amount or more. Others demand that the S&P also reach a new high.
However you look at it, Warren Buffett has several excellent candidates to consider in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. Here are my picks for the three best Buffett stocks to buy and hold in a new bull market.
1. Apple
Buffett absolutely loves Apple (NASDAQ: AAPL). And his treasure lies where his heart is. The tech giant ranks, by far, as the biggest holding for Berkshire.
However, I didn't put Apple at the top of the list to buy and hold in a new bull market just because Buffett thinks so highly of it. I have two other primary considerations.
First, it will be next to impossible for a new S&P 500 bull market to have legs without Apple stock performing well. Apple makes up around 7.5% of the index.
Second, Apple truly is what Buffett would call "a wonderful business." The company doesn't just have customers; it has fans. Apple's iPhone stands at the center of an immense ecosystem of products and services.
Don't let Apple's fiscal 2023 third-quarter revenue decline fool you. The company continues to have solid long-term prospects.
2. Amazon
No, Buffett didn't personally make the decision for Berkshire to first invest in Amazon (NASDAQ: AMZN). Nonetheless, he admires the company.
It might seem strange to call Amazon a turnaround story with its stock skyrocketing this year. I think the description is appropriate, though. Amazon really is turning its business around after enduring a semi-slump.
That's especially evident in the company's bottom line. Amazon lost $2 billion in the second quarter of 2022. Last week, it reported a profit of $6.7 billion in the second quarter of 2023.
The story is similar when it comes to cash flow. Amazon generated free cash flow of $7.9 billion over the trailing 12 months ending June 30, 2023, compared to a cash outflow of $23.5 billion in the trailing-12-month period a year earlier.
I think artificial intelligence (AI) will provide a major long-term tailwind for Amazon's cloud business. And I expect its streamlining in recent months will continue to pay off with improving profitability.
3. Markel Group
Markel Group (NYSE: MKL) can accurately be called a "mini-me" of Berkshire Hathaway itself. It has a large insurance business, owns a diverse portfolio of stocks, and invests in other businesses.
Just like Berkshire -- almost. There are a couple of key differences between Markel and Berkshire that I think make it a great Buffett stock to buy and hold in a new bull market.
Importantly, Markel is much smaller than Berkshire. Its market cap of below $20 billion is practically tiny compared to Berkshire's market cap of close to $780 billion. In my view, Markel's path to growth is easier because of its size.
Markel also invests in growth stocks more aggressively than Berkshire does. It owns shares of companies like Alphabet and Meta Platforms (as well as both Apple and Amazon), all of which should perform well in a new bull market. I also expect Markel's core specialty insurance business will chug along nicely.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Markel Group 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. 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. Keith Speights has positions in Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Markel Group, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Buffett absolutely loves Apple (NASDAQ: AAPL). However, I didn't put Apple at the top of the list to buy and hold in a new bull market just because Buffett thinks so highly of it. There are a couple of key differences between Markel and Berkshire that I think make it a great Buffett stock to buy and hold in a new bull market.
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Apple Buffett absolutely loves Apple (NASDAQ: AAPL). 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. Keith Speights has positions in Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Meta Platforms.
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Apple Buffett absolutely loves Apple (NASDAQ: AAPL). There are a couple of key differences between Markel and Berkshire that I think make it a great Buffett stock to buy and hold in a new bull market. 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.
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Apple Buffett absolutely loves Apple (NASDAQ: AAPL). However, I didn't put Apple at the top of the list to buy and hold in a new bull market just because Buffett thinks so highly of it. There are a couple of key differences between Markel and Berkshire that I think make it a great Buffett stock to buy and hold in a new bull market.
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14439.0
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2023-08-06 00:00:00 UTC
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Wall St Week Ahead-Inflation report, bond yields in focus as U.S. stocks rally pauses
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-inflation-report-bond-yields-in-focus-as-u.s.-stocks-rally-pauses-0
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nan
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nan
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By Carolina Mandl
NEW YORK, Aug 4 (Reuters) - A highly awaited inflation report and elevated bond yields offer the latest test to a U.S. stock rally that has delivered hefty gains this year.
The benchmark S&P 500 index is up 16.6% year to date, fueled by an improving economic outlook, excitement over developments in artificial intelligence and signs that the Federal Reserve is close to ending its market-bruising U.S. interest rate hikes.
Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued. Investors are also closely watching the path of Treasury yields, which rattled equity markets in recent days by rising to fresh year highs. The S&P 500 fell 2.27% this week, its biggest weekly decline since March 10.
"After a massive run-up in equities ... any sort of blip in terms of any of the macro data (is) probably going to be a reason for people to take profits," said Jack Janasiewicz, lead portfolio strategist and portfolio manager at Natixis Investment Managers.
While consumer prices have not been rising as fast lately, some investors worry stubborn inflation may force the Fed to leave rates at current levels longer than expected. The U.S. reports consumer price data on Aug. 10.
On Friday, U.S. employment data showed the economy maintained a moderate pace of job growth. Yet wages grew at a faster-than-expected annual clip of 4.4%. Many fear that is too high to be consistent with the Fed's 2% inflation target.
Janasiewicz of Natixis said a stronger-than-expected consumer price reading next week could spark a decline of up to 5% in the S&P 500. He said such a drop would be “healthy” given the index's big runup this year.
Other investors have been taking profits. Concerns over rising stock valuations pushed Aaron Chan, a managing partner at equity hedge fund Recurve Capital, to trim stakes in shares of companies including Amazon.com AMZN.O, which is up 68% this year, and Norwegian Cruise Line NCLH.N, up 47%.
The S&P 500 is trading at about 19.5 times forward 12-month earnings estimates, much pricier than its long-term average of about 15.6 times, according to Refinitiv Datastream.
Prices for Brent crude were on track for their sixth straight week of gains, up roughly 17% in that period on signs of tightening global supply and rising demand.
"As long as CPI remains flat to trending down, the market will accept it thoroughly," said Ann Miletti, Allspring's head of active equity. "If we do see upticks, it is really dependent on where the upticks are and whether or not investors believe they're temporary in nature."
Miletti is growing more bullish on corners of the market that have underperformed, including small cap stocks.
A stronger-than-expected inflation number next week could also boost Treasury yields further. Yields, which move inversely to bond prices, spiked this week following a downgrade of the U.S. credit rating by Fitch and on the prospect of a flood of Treasury supply in the third quarter. The benchmark 10-year yield fell sharply after Friday's jobs report but remained above 4%, a level last seen in November 2022.
Rising yields on Treasuries, viewed as among the world's safest investments because they are backed by the U.S. government, can dull the allure of stocks. Projected company cash flows are also worth less in current dollars when interest rates rise.
"The move in the 10-year U.S. Treasury yield above the 4% level will likely act as a headwind to further expansion in already lofty equity valuations," Keith Lerner, co-chief investment officer at Truist Advisory Services, wrote this week.
There is still plenty of good news to keep the rally going. Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday.
More broadly, more than 79% of S&P 500 companies have beaten estimates for the second quarter so far, the highest beat rate since the third quarter of 2021, data from Refinitiv I/B/E/S showed.
Still, some market participants believe investors may have to endure some near-term turbulence.
"Our expectation is that the market takes some time to digest the strong year-to-date gains and moves into a choppy period," Lerner said.
(Reporting by Carolina Mandl in New York; Additional reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. By Carolina Mandl NEW YORK, Aug 4 (Reuters) - A highly awaited inflation report and elevated bond yields offer the latest test to a U.S. stock rally that has delivered hefty gains this year. The benchmark S&P 500 index is up 16.6% year to date, fueled by an improving economic outlook, excitement over developments in artificial intelligence and signs that the Federal Reserve is close to ending its market-bruising U.S. interest rate hikes.
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Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued. "After a massive run-up in equities ... any sort of blip in terms of any of the macro data (is) probably going to be a reason for people to take profits," said Jack Janasiewicz, lead portfolio strategist and portfolio manager at Natixis Investment Managers.
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Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. By Carolina Mandl NEW YORK, Aug 4 (Reuters) - A highly awaited inflation report and elevated bond yields offer the latest test to a U.S. stock rally that has delivered hefty gains this year. Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued.
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Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued. The U.S. reports consumer price data on Aug. 10.
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14440.0
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2023-08-06 00:00:00 UTC
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7 Top Stocks Billionaires Are Loading Up On
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AAPL
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https://www.nasdaq.com/articles/7-top-stocks-billionaires-are-loading-up-on
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While you might never become a billionaire, you can certainly invest in top stocks billionaires are buying thanks to the wonderful combination of free Internet and Form 13F disclosures (as mandated by the U.S. Securities and Exchange Commission).
Now, to be clear, just because you’re buying billionaires’ favorite stocks doesn’t necessarily guarantee success. You must always keep in mind that the ultra-wealthy play by a different set of rules. To these top-tier powerbrokers, losing a few million on trades might not seem like much. However, to most regular folks, that would be absolutely crippling.
Still, what I do appreciate about top stocks billionaires load up on is that the rich didn’t get this way because they had a penchant for losing money. No, these folks aim to go to the “big dance” every time. And with those handy 13F disclosures, you might be able to get a piece of the pie.
On that compelling note, below are the top stocks billionaires are buying.
Apple (AAPL)
Source: Vova Shevchuk / Shutterstock.com
Representing easily one of the most popular consumer technology brands in the world, Apple (NASDAQ:AAPL) requires no introduction. Because of its prominence, it’s no surprise that AAPL ranks among the top stocks billionaires are buying. In the second quarter, Berkshire Hathaway (NYSE:BRK-B) – led by CEO Warren Buffett – acquired $3.01 billion worth of shares, per HedgeFollow.
According to data from Stockcircle, Apple represents 49.27% of Berkshire’s equity portfolio. It’s also the conglomerate’s biggest holding. Further, the Oracle of Omaha loves the tech giant. As Barron’s stated, Buffett appreciates that Apple keeps repurchasing stock and thereby increasing Berkshire’s percentage ownership with no effort on the latter entity’s part.
To be fair, Apple isn’t a perfect idea among billionaires’ favorite stocks. Several days ago, the semiconductor space fell sharply because of concerns associated with fading smartphone demand. Still, in the long run, Apple’s brand power should resonate with the market. Therefore, it’s a reasonably comfortable buy.
Amazon (AMZN)
Source: Epic Cure / Shutterstock
An e-commerce enterprise that quickly evolved into a tech behemoth, Amazon (NASDAQ:AMZN) carries a controversial profile. Basically, it’s a giant vacuum cleaner, sucking the life out of mom-and-pop businesses. Then again, that “quality” might make AMZN an idea play among the top stocks billionaires are buying. In particular, AMZN caught the eye of JPMorgan Chase (NYSE:JPM).
Per data compiled by HedgeFollow, the big bank acquired $1.9 billion worth of shares during Q2. Overall, the total value bought among all investors during the aforementioned period came out to $26.44 billion. Of course, JPMorgan is led by billionaire business executive Jamie Dimon.
Interestingly, Dimon calls Amazon a “business miracle,” according to a CNN report. As well, the banker enjoys a long relationship with Jeff Bezos, Amazon’s founder, Executive Chairman, and former president and CEO.
Financially, AMZN runs a little hot in terms of earnings multiples. However, the company remains a growth machine after all this time, posting a three-year revenue growth rate of 21.9%. Thus, it’s one of the top stocks billionaires load up on.
Alphabet (GOOG, GOOGL)
Source: shutterstock.com/CC7
If there’s any one enterprise that we all couldn’t live without, it might be Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Politically and ideologically, a good many of us are skeptical about the tech stalwart’s unparalleled influence. At the same time, this gargantuan footprint makes GOOG one of the top stocks billionaires are buying.
In particular, Dan Loeb of Third Point has been a huge believer in Alphabet and its Google ecosystem. According to Loeb’s latest 13F disclosure, the Internet giant represents 8.06% of Third Point’s holdings, amounting to 4.75 million shares owned.
Currently, GOOG trades at a slightly worse-than-average premium relative to both trailing and forward earnings multiples. However, based on its 10-year discounted cash flow (DCF) model, GOOG could be undervalued. Per investment data aggregator Gurufocus, GOOG’s fair value stands at $147.50, implying a margin of safety of 12.71%. In addition, Alphabet continues to be a growth machine, printing a three-year sales expansion rate of 22.9%. Therefore, it’s a strong idea for billionaires’ favorite stocks.
GE HealthCare (GEHC)
Source: Freedom365day / Shutterstock.com
Spun off from industrial conglomerate General Electric (NYSE:GE) early this year, GE HealthCare (NASDAQ:GEHC) is a multinational medical technology firm. Per its website, the enterprise represents a leader in precision care, infusing innovation with patient-focused technologies to facilitate better care. What’s more, GEHC enjoyed a strong debut so far, gaining nearly 36% of equity value.
Backing GE HealthCare is the billionaire Chairman and CEO of BlackRock (NYSE:BLK) Larry Fink. During Q2, BlackRock acquired $1.88 billion worth of GEHC stock. Overall, institutional investors acquired just over $22 billion of the GE spinoff.
Even more interesting, data from Gurufocus shows that GEHC could be undervalued. Right now, shares trade hands at 20.53x trailing earnings, below the sector median of 26.8x. Also, the market prices GEHC at 20.04x forward earnings, below the sector median of 24.51x. In addition, the company enjoys strong profit margins, particularly a trailing-year net margin of 9.62%. Therefore, it’s a reasonable idea for top stocks billionaires are buying.
Microsoft (MSFT)
Source: Chompoo Suriyo / Shutterstock.com
A powerhouse technology giant specializing in both software applications and compelling hardware, Microsoft (NASDAQ:MSFT) arguably makes sense in any context. It’s good to know that the top dogs also feel the same. Easily ranking among the top stocks billionaires are buying, Microsoft saw tremendous buying activity in Q2. Overall, institutional investors poured in $32.4 billion during the three months ended June 30.
In particular, Chase Coleman III from Tiger Global Management continues to be a strong billionaire supporter of MSFT. According to the latest 13F disclosure, MSFT represents Tiger’s biggest holding at 15.57% of its portfolio. This figure translates to 5.93 million shares of the tech giant. As well, during Q2, Tiger acquired over 674,000 shares.
Moving forward, I expect great things from Microsoft. As you know, the company entered into a partnership with OpenAI, the creator of the ChatGPT chatbot. With artificial intelligence becoming a prominent element in society, MSFT should rise higher after it works out its near-term funk. Thus, it’s one of the top stocks billionaires load up on.
Salesforce (CRM)
Source: ImageFlow/Shutterstock.com
A cloud-based software enterprise, Salesforce (NYSE:CRM) specializes in customer relationship management software and applications; hence, its ticker symbol. Mainly, the company focuses on sales, customer service, marketing automation, e-commerce, analytics, and application development. It’s been a rough period since 2022’s interest rate hike campaign. Still, shares are flying right now, gaining 60% since the January opener.
Under this context, it’s perhaps not surprising that CRM represents one of the top stocks billionaires are buying. Indeed, Stephen Mandel of Lone Pine Capital is a huge fan. Interestingly, Lone Pine went on a divesting spree, heavily trimming exposure to securities across its portfolio. However, CRM ranked among major portfolio acquisitions, with the firm increasing its holdings by nearly 271%.
Financially, CRM trades at a hefty premium to trailing earnings. And it’s not exactly cheap on a forward earnings basis. However, the company benefits from a solid three-year revenue growth rate of 16.1%. Thus, CRM is one of the billionaires’ favorite stocks.
Nvidia (NVDA)
Source: AdityaB. Photography/ShutterStock.com
Although a well-respected and powerful name in the broader semiconductor business, Nvidia (NASDAQ:NVDA) right now cuts a controversial figure. No, it’s a fine enterprise. However, investors may be pricing NVDA at a level that’s not reasonable based on credible expectations. For example, NVDA presently trades at trailing earnings multiple of nearly 232. Shares also trade at 60X forward earnings.
Adding some consternation, while shares gained over 200% this year, momentum may be fading. In the trailing five sessions ending Aug. 3, NVDA lost almost 5% of equity value. Nevertheless, the tech giant continues to rank among the top stocks billionaires are buying.
Per the latest 13F disclosure, Philippe Laffont of Coatue Management remains a believer in Nvidia. Presently, NVDA represents 9.2% of Coatue’s portfolio, translating to 4.98 million shares owned. Further, in Q2, the investment firm increased its exposure by 7.36%.
Frankly, Nvidia is one of the toughest calls for billionaires’ favorite stocks. Still, with a three-year revenue growth rate of 34.5%, the prospects certainly entice speculators.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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The post 7 Top Stocks Billionaires Are Loading Up On 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: Vova Shevchuk / Shutterstock.com Representing easily one of the most popular consumer technology brands in the world, Apple (NASDAQ:AAPL) requires no introduction. Because of its prominence, it’s no surprise that AAPL ranks among the top stocks billionaires are buying. As Barron’s stated, Buffett appreciates that Apple keeps repurchasing stock and thereby increasing Berkshire’s percentage ownership with no effort on the latter entity’s part.
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Apple (AAPL) Source: Vova Shevchuk / Shutterstock.com Representing easily one of the most popular consumer technology brands in the world, Apple (NASDAQ:AAPL) requires no introduction. Because of its prominence, it’s no surprise that AAPL ranks among the top stocks billionaires are buying. GE HealthCare (GEHC) Source: Freedom365day / Shutterstock.com Spun off from industrial conglomerate General Electric (NYSE:GE) early this year, GE HealthCare (NASDAQ:GEHC) is a multinational medical technology firm.
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Apple (AAPL) Source: Vova Shevchuk / Shutterstock.com Representing easily one of the most popular consumer technology brands in the world, Apple (NASDAQ:AAPL) requires no introduction. Because of its prominence, it’s no surprise that AAPL ranks among the top stocks billionaires are buying. InvestorPlace - Stock Market News, Stock Advice & Trading Tips While you might never become a billionaire, you can certainly invest in top stocks billionaires are buying thanks to the wonderful combination of free Internet and Form 13F disclosures (as mandated by the U.S. Securities and Exchange Commission).
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Apple (AAPL) Source: Vova Shevchuk / Shutterstock.com Representing easily one of the most popular consumer technology brands in the world, Apple (NASDAQ:AAPL) requires no introduction. Because of its prominence, it’s no surprise that AAPL ranks among the top stocks billionaires are buying. Then again, that “quality” might make AMZN an idea play among the top stocks billionaires are buying.
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2023-08-06 00:00:00 UTC
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3 Cheap Metaverse Stocks That Smart Investors Will Snap Up Now
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AAPL
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https://www.nasdaq.com/articles/3-cheap-metaverse-stocks-that-smart-investors-will-snap-up-now
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The world of metaverse stocks has been up and down over the last few years.
It reached its zenith when Meta Platforms (NASDAQ:META) rebranded from its former alias, Facebook in late 2021. Metaverse worlds, including The Sandbox (CCC:SAND-USD), were all the rage. Optimism was riding high for virtual worlds and their potential.
Then optimism quickly faded as the economic realities of late 2021 set in. Runaway inflation put a damper on growth, and rate hikes loomed on the horizon. A cold period set in that took us into 2023.
Now, optimism is back, especially since major players like Apple (NASDAQ:AAPL) have signaled their interest. And that makes cheaper shares worth buying now.
Qualcomm (QCOM)
Source: nikkimeel / Shutterstock.com
Qualcomm (NASDAQ:QCOM) is one of the more prominent chipmaker stocks in relation to the metaverse. The opportunity firm is centered on its Snapdragon chipsets and their application to the metaverse.
Further, Qualcomm has created a Snapdragon Spaces XR Developer Platform to support the metaverse and its development. The platform is designed to help developers utilize the firm’s technology to create virtual reality, augmented reality, and mixed reality worlds in which humans can interact.
Investors should think of this as the next phase of potential. Qualcomm is working with key partners including Meta Platforms to develop the technology. The firm is clear that it is unsure of its latest iteration of development but remains committed to moving forward. A series of YouTube videos by QCOM are available to gain more depth on the subject.
Qualcomm will be a key player in the development of the space and along with its low price relative to earnings, makes it a buy.
Roblox (RBLX)
Source: Miguel Lagoa / Shutterstock.com
Roblox (NASDAQ:RBLX) is perhaps the best-known metaverse stock outside of Meta. The firm’s platform has allowed users to build more than 40 million games in total. These can all be considered worlds unto themselves, but Roblox also includes many VR games as well. Some of the most popular of which can be found at TheGamer.
Roblox is clearly among the leaders in the emerging metaverse. The firm has carved out a large following in that niche with $655.3 million in revenues in the first quarter. That represents 22% growth on a year-over-year basis for the firm even though that growth wasn’t cheap.
Roblox reported a net loss of $268.3 million during the period. The cost to build a platform for creators is pricey, as the earnings for Roblox shows. One of the more important metrics for Roblox is bookings, which represent virtual currency usable on the platform for on-platform purchases. It grew by 23% during Q1.
Autodesk (ADSK)
Source: JHVEPhoto / Shutterstock.com
Autodesk (NASDAQ:ADSK) is a metaverse stock that many may not necessarily associate with virtual worlds due to its name. The firm is best known for AutoCAD, a computer-aided drawing software.
The firm’s software is being utilized to help build the digital infrastructure of metaverse worlds. The firm is particularly focused on Building Information Modeling (BIM). In short, BIM allows users to create and manage information for a built asset in the real world, using all kinds of applications. It is also being used to create digital assets that exist solely within the digital world. That could potentially allow for new revenue streams within the metaverse in gaming and other industries.
The firm is cleverly leveraging its AutoCAD technology in partnership with gaming companies to build worlds based on the Unreal engine. Autodesk is expanding this opportunity and remains an integral part of the future metaverse with stock that trades at discounted levels.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post 3 Cheap Metaverse Stocks That Smart Investors Will Snap Up Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Now, optimism is back, especially since major players like Apple (NASDAQ:AAPL) have signaled their interest. In short, BIM allows users to create and manage information for a built asset in the real world, using all kinds of applications. The firm is cleverly leveraging its AutoCAD technology in partnership with gaming companies to build worlds based on the Unreal engine.
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Now, optimism is back, especially since major players like Apple (NASDAQ:AAPL) have signaled their interest. Qualcomm (QCOM) Source: nikkimeel / Shutterstock.com Qualcomm (NASDAQ:QCOM) is one of the more prominent chipmaker stocks in relation to the metaverse. The platform is designed to help developers utilize the firm’s technology to create virtual reality, augmented reality, and mixed reality worlds in which humans can interact.
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Now, optimism is back, especially since major players like Apple (NASDAQ:AAPL) have signaled their interest. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The world of metaverse stocks has been up and down over the last few years. The platform is designed to help developers utilize the firm’s technology to create virtual reality, augmented reality, and mixed reality worlds in which humans can interact.
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Now, optimism is back, especially since major players like Apple (NASDAQ:AAPL) have signaled their interest. Further, Qualcomm has created a Snapdragon Spaces XR Developer Platform to support the metaverse and its development. The firm’s platform has allowed users to build more than 40 million games in total.
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2023-08-06 00:00:00 UTC
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3 Things Elon Musk Can Do at Twitter to Keep META’s Threads at Bay
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AAPL
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https://www.nasdaq.com/articles/3-things-elon-musk-can-do-at-twitter-to-keep-metas-threads-at-bay
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In mid-July, ARK Investment Management CEO Cathie Wood decreased her company’s investment in Twitter by an astonishing 47%. This plunged the value of the company to just $23 billion.
It represents $11 billion less than Elon Musk paid for the social media platform in October 2022. Wood still believes in Elon Musk’s Twitter strategy. But the portfolio manager is adamant that she had no choice but to write down the value of its investment.
In the long run, Wood sees her shareholders reaping significant returns from its Twitter investment. It will take a little more time and a lot of intelligent ideas to be implemented by Musk and his team.
As for Threads, the so-called “Twitter killer,” supposedly has seen its usage fall by half since Mark Zuckerberg’s company launched the social media platform in early July.
Musk wants to turn Twitter, now renamed X, into an “everything app”. In other words, it would be one app where a user’s financial matters are easily handled at the touch of a button.
“X is the future state of unlimited interactivity – centered in audio, video, messaging, payments/banking – creating a global marketplace for ideas, goods, services, and opportunities,” CEO Linda Yaccarino said.
Where X is today, to where Musk wants to take it, is a long road ahead. In the meantime, Musk can take three actions to keep Threads at bay.
Create the X/Tesla Ecosystem
Source: Zigres / Shutterstock.com
I use Apple (NASDAQ:AAPL), Google ((NASDAQ:GOOG, NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) products. The problem is that none of them give me everything I’m looking for all at once. If one did, I’d immediately get rid of the others.
The company that has gotten the closest to creating a flourishing closed ecosystem is Apple. It’s become a Products-as-a-Service (PaaS) provider where its hardware revenue is gradually being eclipsed by services revenue. In this situation, you buy fewer iPhones but more services to use on your phone and other Apple devices.
Tesla (NASDAQ:TSLA) has sold approximately 4.53 million electric vehicles since 2008. At the end of 2022, Twitter had about 450 million monthly active users. Why not create a closed ecosystem that exclusively serves the Tesla community?
So, you’d still have Twitter, but X would be an exclusive community. It would consist of Tesla owners using Musk’s “everything app” in much the same way that Apple uses Apple ID.
Early on with Tesla, is you were an EV owner, you were considered special. After all, your vehicle had its exclusive network of superchargers. Nowadays, Tesla is sharing them with all the other EV makers, reducing the value of owning the company’s vehicles. By creating X specifically for Tesla owners, you could build a suite of products and services to sell to this captive audience.
That has far more value than the 450 million Twitter users, but I digress.
A Reward for Being Nice
Source: Efetova Anna / Shutterstock
People are going to speak whatever they want, with or without a filter.
This leads us to the next option for Musk. He could simply reward users for good behavior rather than dictate what people can or cannot say. For example, if you use zero hate speech in your tweets, you don’t pay a cent to use the social platform. On the other hand, if you spew garbage, you’ll pay handsomely for that behavior.
Ironically, Twitter/X is suing the Center for Countering Digital Hate (CCDH), arguing that the anti-hate speech group’s research hurts the company’s financial situation.
“Based on the historical spend of the companies and organizations that have paused paid advertising and/or paused plans for future paid advertising, X Corp estimates that it has lost at least tens of millions of dollars in lost revenues as of the date of this complaint, with those amounts subject to increasing as time goes on,” The Guardian reported the comments from Twitter/X’s legal filing.
CCDH research suggests that 99% of the hate speech sampled from Twitter Blue subscribers was not censored at all by the company. (Twitter Blue users pay $8 per month or $84 annually for the premium service.)
In my proposal, the first option would be a free version of Twitter/X (including ads) and the second option would be a paid version (no ads). In the latter, people who post hate-speech can speak their minds for the low price of $25 a month or $262.50 annually.
This would create two revenue streams for the company. However, advertisers would likely be extremely hesitant to partake of such a social experiment.
Sell Twitter/X to Meta
Source: Cat Box / Shutterstock.com
As I mentioned earlier, Twitter/X’s value has fallen by nearly 50% from what Elon Musk paid for it last October. Even still, it remains considerably larger than Meta Platforms’ (NASDAQ:META) Threads social media creation.
Based on Meta CEO Mark Zuckerberg’s recent comments, Threads’ user base has fallen by 50% since the first week of its launch. This suggests Threads has approximately 50 million users, or about one-ninth of Twitter/X.
Meta’s cash, cash equivalents, and marketable securities were $53.45 billion as of June 30. As of the second quarter, its trailing 12-month free cash flow was $24.0 billion. Its long-term debt is $18.4 billion, or 2.3% of its market cap.
If Meta were to offer Musk $33.5 billion for Twitter/X, his investors would get back more of their investment (although they still wouldn’t be made whole). By doing so, Meta would eliminate its biggest competitor. Without a doubt it has the financial muscle to make this happen.
Given Musk’s inflated ego, it’s hard to imagine he’d be up for such a retreat. The fact remains that he has a fiduciary duty to his investors to at least entertain this possibility.
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 Things Elon Musk Can Do at Twitter to Keep META’s Threads at Bay 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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Create the X/Tesla Ecosystem Source: Zigres / Shutterstock.com I use Apple (NASDAQ:AAPL), Google ((NASDAQ:GOOG, NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) products. As for Threads, the so-called “Twitter killer,” supposedly has seen its usage fall by half since Mark Zuckerberg’s company launched the social media platform in early July. “X is the future state of unlimited interactivity – centered in audio, video, messaging, payments/banking – creating a global marketplace for ideas, goods, services, and opportunities,” CEO Linda Yaccarino said.
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Create the X/Tesla Ecosystem Source: Zigres / Shutterstock.com I use Apple (NASDAQ:AAPL), Google ((NASDAQ:GOOG, NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) products. As for Threads, the so-called “Twitter killer,” supposedly has seen its usage fall by half since Mark Zuckerberg’s company launched the social media platform in early July. Based on Meta CEO Mark Zuckerberg’s recent comments, Threads’ user base has fallen by 50% since the first week of its launch.
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Create the X/Tesla Ecosystem Source: Zigres / Shutterstock.com I use Apple (NASDAQ:AAPL), Google ((NASDAQ:GOOG, NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) products. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In mid-July, ARK Investment Management CEO Cathie Wood decreased her company’s investment in Twitter by an astonishing 47%. “Based on the historical spend of the companies and organizations that have paused paid advertising and/or paused plans for future paid advertising, X Corp estimates that it has lost at least tens of millions of dollars in lost revenues as of the date of this complaint, with those amounts subject to increasing as time goes on,” The Guardian reported the comments from Twitter/X’s legal filing.
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Create the X/Tesla Ecosystem Source: Zigres / Shutterstock.com I use Apple (NASDAQ:AAPL), Google ((NASDAQ:GOOG, NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) products. This plunged the value of the company to just $23 billion. Even still, it remains considerably larger than Meta Platforms’ (NASDAQ:META) Threads social media creation.
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2023-08-06 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-58
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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 Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
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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14444.0
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2023-08-06 00:00:00 UTC
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Every Tech Stock Warren Buffett Owns, Ranked from Best to Worst
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AAPL
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https://www.nasdaq.com/articles/every-tech-stock-warren-buffett-owns-ranked-from-best-to-worst
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nan
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nan
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You might think that Warren Buffett and tech stocks simply don't go together. Buffett has famously avoided buying stocks that aren't in his wheelhouse. In some cases, he has invested in tech stocks -- but only because of the influence of other Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) investment managers.
However, you might be surprised at just how many positions in tech companies the legendary investor holds right now, especially if we include those in the portfolio of Berkshire subsidiary New England Asset Management (NEAM). Here is every tech stock Buffett owns, ranked from best to worst.
Megacap monsters
I think the top tech stocks for Buffett happen to be several of the biggest ones on the planet. They include three of the so-called FAANG stocks.
RANK STOCK MARKET CAP
1 Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) $1.6 trillion
2 Apple (NASDAQ: AAPL) $3 trillion
3 Amazon (NASDAQ: AMZN) $1.3 trillion
4 Microsoft (NASDAQ: MSFT) $2.4 trillion
Data source for market caps: Google Finance. Chart by author.
A couple of notes are in order with these megacap monsters. First, Alphabet and Microsoft are in NEAM's portfolio. Buffett nonetheless has stakes in them, albeit indirectly. Second, some view Amazon as a consumer cyclical stock. However, with the world's largest cloud services platform and a massive online business, I've lumped Amazon in with tech stocks for this exercise.
I like (and personally own) all of these stocks. My main reasons for putting Alphabet at the top of the list were its more attractive valuation and its huge opportunities in artificial intelligence and (further down the road) quantum computing.
Up-and-comers
Berkshire Hathaway's portfolio features a couple of stocks that I view as promising up-and-comers, although one of them has already up and come quite a bit:
RANK STOCK MARKET CAP
5 StoneCo (NASDAQ: STNE) $4 billion
6 Snowflake (NYSE: SNOW) $53 billion
Data source for market caps: Google Finance. Chart by author.
StoneCo is one of the top fintech and e-commerce companies in Latin America. My hunch is that its market will continue to expand significantly.
I was somewhat leery of ranking Snowflake so highly because of its nosebleed valuation. Shares of the cloud company trade at 25 times sales. However, I do really like Snowflake's growth prospects.
Chips on the table
The next cluster of Buffett's tech stocks happens to consist entirely of chipmakers.
RANK STOCK MARKET CAP
7 Taiwan Semiconductor Manufacturing (NYSE: TSM) $452 billion
8 Qualcomm (NASDAQ: QCOM) $132 billion
9 Broadcom (NASDAQ: AVGO) $365 billion
10 NXP Semiconductors (NASDAQ: NXPI) $56 billion
Data source for market caps: Google Finance. Chart by author.
I was sorely tempted to give Taiwan Semi a higher spot on the list. The company definitely has a rock-solid business. However, the lingering threat to Taiwan from China and the stock's premium valuation give me some pause.
Fogies and frozen
I've nicknamed the last six tech stocks that Buffett owns "fogies and frozen." Why? Let's first look at the stocks.
RANK STOCK MARKET CAP
11 Cisco Systems (NASDAQ: CSCO) $217 billion
12 IBM (NYSE: IBM) $132 billion
13 VeriSign (NASDAQ: VRSN) $21 billion
14 HP (NYSE: HPQ) $32 billion
15 Texas Instruments (NASDAQ: TXN) $156 billion
16 Activision Blizzard (NASDAQ: ATVI) $72 billion
Data source for market caps: Google Finance. Chart by author.
The "fogies" are the technology companies that have been around for a long time. IBM, HP, and Texas Instruments clearly qualify. Cisco and VeriSign haven't been in business nearly as long, with the former founded in 1984 and the latter in 1995. However, 28 or more years amounts to eons in the tech world. They're all ranked, by the way, based on my expectations of their growth versus their current valuation.
Why is Activision Blizzard listed dead last? I view the stock as essentially "frozen." In other words, I don't think its share price will move very much, with its pending acquisition by Microsoft. Activision has been a huge winner for Buffett in the past, though.
Beauty is in the eye of the beholder
The old adage that "beauty is in the eye of the beholder" is applicable to tech stocks. Other investors could have much different rankings than mine. Regardless of how your list might differ from mine, I suspect we can all agree that Buffett owns some pretty good tech stocks for someone who has been generally averse to them through the years.
10 stocks we like better than Alphabet
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of 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. Keith Speights has positions in Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Amazon.com, Apple, Berkshire Hathaway, Cisco Systems, HP, Microsoft, Qualcomm, Snowflake, StoneCo, Taiwan Semiconductor Manufacturing, Texas Instruments, and VeriSign. The Motley Fool recommends Broadcom, International Business Machines, and NXP Semiconductors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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1 Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) $1.6 trillion 2 Apple (NASDAQ: AAPL) $3 trillion 3 Amazon (NASDAQ: AMZN) $1.3 trillion 4 Microsoft (NASDAQ: MSFT) $2.4 trillion Data source for market caps: Google Finance. However, you might be surprised at just how many positions in tech companies the legendary investor holds right now, especially if we include those in the portfolio of Berkshire subsidiary New England Asset Management (NEAM). My main reasons for putting Alphabet at the top of the list were its more attractive valuation and its huge opportunities in artificial intelligence and (further down the road) quantum computing.
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1 Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) $1.6 trillion 2 Apple (NASDAQ: AAPL) $3 trillion 3 Amazon (NASDAQ: AMZN) $1.3 trillion 4 Microsoft (NASDAQ: MSFT) $2.4 trillion Data source for market caps: Google Finance. 7 Taiwan Semiconductor Manufacturing (NYSE: TSM) $452 billion 8 Qualcomm (NASDAQ: QCOM) $132 billion 9 Broadcom (NASDAQ: AVGO) $365 billion 10 NXP Semiconductors (NASDAQ: NXPI) $56 billion Data source for market caps: Google Finance. 11 Cisco Systems (NASDAQ: CSCO) $217 billion 12 IBM (NYSE: IBM) $132 billion 13 VeriSign (NASDAQ: VRSN) $21 billion 14 HP (NYSE: HPQ) $32 billion 15 Texas Instruments (NASDAQ: TXN) $156 billion 16 Activision Blizzard (NASDAQ: ATVI) $72 billion Data source for market caps: Google Finance.
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1 Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) $1.6 trillion 2 Apple (NASDAQ: AAPL) $3 trillion 3 Amazon (NASDAQ: AMZN) $1.3 trillion 4 Microsoft (NASDAQ: MSFT) $2.4 trillion Data source for market caps: Google Finance. 7 Taiwan Semiconductor Manufacturing (NYSE: TSM) $452 billion 8 Qualcomm (NASDAQ: QCOM) $132 billion 9 Broadcom (NASDAQ: AVGO) $365 billion 10 NXP Semiconductors (NASDAQ: NXPI) $56 billion Data source for market caps: Google Finance. 11 Cisco Systems (NASDAQ: CSCO) $217 billion 12 IBM (NYSE: IBM) $132 billion 13 VeriSign (NASDAQ: VRSN) $21 billion 14 HP (NYSE: HPQ) $32 billion 15 Texas Instruments (NASDAQ: TXN) $156 billion 16 Activision Blizzard (NASDAQ: ATVI) $72 billion Data source for market caps: Google Finance.
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1 Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) $1.6 trillion 2 Apple (NASDAQ: AAPL) $3 trillion 3 Amazon (NASDAQ: AMZN) $1.3 trillion 4 Microsoft (NASDAQ: MSFT) $2.4 trillion Data source for market caps: Google Finance. Here is every tech stock Buffett owns, ranked from best to worst. Let's first look at the stocks.
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14445.0
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2023-08-06 00:00:00 UTC
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Rates, CPI and Other Can't Miss Items This Week
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AAPL
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https://www.nasdaq.com/articles/rates-cpi-and-other-cant-miss-items-this-week
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nan
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nan
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Last week Apple (AAPL) beat earnings but shares plunged lower on slower-than-expected sales of their flagship phones. They also announced the continuation of their plan to move more of their iPhone production away from China and to India.
To further add to the excitement Fitch downgraded the US debt from AAA to AA+ based on deteriorating economic conditions in addition to acceleration of interest rates on future debt offerings. As one would expect the market reacted negatively selling off overnight and again during the next session but started to rebound on Friday with the S&P 500 ($SPX) (SPY) closing down a little over 2% on the week. This week looks like we have some possible event risks with the news and earnings coming out. Here are 5 things to watch in the market this week:
Earnings
Even with most of the banking and tech behind us, there are still some big names reporting this week. Monday we have KKR & Company (KKR) before the opening bell as well as Palantir (PLTR) after the bell. On Tuesday we have Eil Lilly (LLY) and United Parcel Service (UPS) reporting before the market opens as. Big names on Wednesday include Disney (DIS) and The Trade Desk (TTD) which both report after the close for the day. This earnings season seems to be giving us a theme of earnings beats but trading lower on guidance issues. This week we will see if that continues to play out.
10 Year Auction
On the news front, it is pretty quiet the first half of the week. Wednesday at 1 pm Eastern time the 10-year bond auction is held. Rates have been climbing steadily over the past several months at these auctions. With the increase in the Fed Funds Rate, this is an expected result, however, with the 10 and 30-year trading almost at parity on the open market it could be inferred that investors require more risk premium for shorter-dated securities. If the actual auction results tick over the 4% mark we could also see mortgage rates continue on their upwards trajectory which could have a more lasting impact on housing. While these are not short-term effects, they are something to watch on a more macro scale.
CPI
With rates continuing to climb, hopefully, CPI continues to fall. A lower-than-expected CPI could be viewed positively by the markets because it would mean that the Fed has a handle on inflation. If the CPI comes in higher than expected on any of the categories, it's possible the market slips a little on fears that inflation could start back up again.
PPI
Similar to CPI, the PPI comes out Friday at 8:30 am Eastern time. This is the price of finished goods sold by producers excluding food and energy, which are typically the two categories with the highest price inflation. Also similar to CPI, if headline numbers come in lower than expected the market could take that as a positive. If, however, the PPI comes in higher than expected the market could slip as it could see prices starting to rise again going into the fall.
UoM Consumer Sentiment
The final news announcement of the week is the University of Michigan Consumer Sentiment report Friday at 10 am EST. This is a survey about how people view the economy and the short-term future of economic conditions. The last two releases have been pretty solid beats, but with rates on the rise again it's possible this month there is a change. If that is the case we could see markets slip as it braces for potential economic slowdowns. If it is another beat, though, we could see the general market rise on a positive economic outlook. One point on this report, it is a small sample of about 500 households. Another solid leading indicator is guidance from company earnings, and those have been almost universally lower. This divergence means that one of them is likely wrong.
Best of luck this week and don’t forget to check out my daily options article.
More Stock Market News from Barchart
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On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last week Apple (AAPL) beat earnings but shares plunged lower on slower-than-expected sales of their flagship phones. As one would expect the market reacted negatively selling off overnight and again during the next session but started to rebound on Friday with the S&P 500 ($SPX) (SPY) closing down a little over 2% on the week. With the increase in the Fed Funds Rate, this is an expected result, however, with the 10 and 30-year trading almost at parity on the open market it could be inferred that investors require more risk premium for shorter-dated securities.
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Last week Apple (AAPL) beat earnings but shares plunged lower on slower-than-expected sales of their flagship phones. With rates continuing to climb, hopefully, CPI continues to fall. UoM Consumer Sentiment The final news announcement of the week is the University of Michigan Consumer Sentiment report Friday at 10 am EST.
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Last week Apple (AAPL) beat earnings but shares plunged lower on slower-than-expected sales of their flagship phones. Here are 5 things to watch in the market this week: Earnings Even with most of the banking and tech behind us, there are still some big names reporting this week. With the increase in the Fed Funds Rate, this is an expected result, however, with the 10 and 30-year trading almost at parity on the open market it could be inferred that investors require more risk premium for shorter-dated securities.
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Last week Apple (AAPL) beat earnings but shares plunged lower on slower-than-expected sales of their flagship phones. Here are 5 things to watch in the market this week: Earnings Even with most of the banking and tech behind us, there are still some big names reporting this week. If the CPI comes in higher than expected on any of the categories, it's possible the market slips a little on fears that inflation could start back up again.
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14446.0
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2023-08-06 00:00:00 UTC
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2 Warren Buffett Stocks to Hold Forever
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AAPL
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-hold-forever-0
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nan
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nan
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Warren Buffett, longtime CEO and chairperson of Berkshire Hathaway, has had a remarkable career spanning decades, earning a reputation as one of the most successful investors of all time. Utilizing his remarkable skill set, he transformed Berkshire Hathaway from a struggling textile company into a multinational holding company with a valuation of over $750 billion.
In his 1988 annual letter to shareholders, Buffett penned that when it comes to owning outstanding businesses with excellent management, "our favorite holding period is forever." Considering the enduring success and wisdom of Warren Buffett, here are two of his favorite stocks that are worth holding for the long term -- and potentially forever.
1. Apple
At a stake worth over $150 billion, Apple (NASDAQ: AAPL) represents nearly 50% of Berkshire's portfolio, making the tech company by far and away the largest position it holds. Interestingly enough, it wasn't Warren Buffett who initiated his company's position in the $3 trillion company back in 2016; rather, it was his two investing managers, Todd Combs and Ted Weschler.
Nonetheless, Buffett, who once claimed "technology is just something we don't understand, so we don't invest in it," has undoubtedly warmed up to Apple. At Berkshire's most recent annual meeting, Buffett called Apple a "better business than any other we own [outright]".
As for why Buffett's love grew for Apple, the company returns an incredible amount of capital to its shareholders in the form of dividends and share buybacks. First, Apple has grown its dividend by nearly 17% annually over the last 10 years and currently pays a quarterly dividend of $0.24 per share.
Second, Apple spends a fortune each year on share repurchases, including $90 billion in its fiscal-year 2022 and $38 billion during the first half of its fiscal-year 2023. As a result of Apple's aggressive share buybacks, the company has lowered its outstanding share count by 37.5% over the past decade.
Buffett is a fan of share repurchases at reasonable prices because an investor's ownership stake can increase without purchasing any additional shares. For Berkshire, that meant its position in Apple grew from 5.39% in 2020 to 5.55% in 2021 without purchasing a single share. Since then, Berkshire has added to its Apple stake several times, and its ownership level reached 5.8% at the end of its first quarter of 2023.
As for the bear case for Apple, if Warren Buffett calls it his best business, it's going to be difficult to find anything wrong with the company. However, the stock does look on the expensive side when using a popular valuation metric like the price-to-earnings (P/E) ratio, which measures the stock price in relation to the company's earnings. For Apple, its P/E ratio currently sits near 33, which is higher than its five-year average of 25.
Still, for a company like Apple, which has a history of excellence and the backing of Warren Buffett, long-term investors should consider dollar-cost averaging into one of the best businesses ever created if they are worried about its current valuation.
Image source: The Motley Fool.
2. Kroger
Berkshire Hathaway first purchased Kroger (NYSE: KR) in late 2019, and similar to Apple, the idea came from one of Buffett's lieutenants. Shares of the leading operator of grocery stores in the U.S. are up roughly 70% since then, handily outperforming the benchmark S&P 500's nearly 50% return. While Berkshire has both added and trimmed its position in Kroger, it still has a nearly 7% ownership stake in the grocery store operator.
Kroger is another dividend stock, having paid and raised its dividend for 17 consecutive years. Currently, Kroger pays its shareholders a quarterly dividend of $0.29 per share, representing an annual dividend yield of 2.4%. Similar to Apple, Kroger's management is buying back its own stock hand over fist, having repurchased 30% of its outstanding shares during the last 10 years.
Kroger did pause its share repurchasing program due to its pending merger with Albertsons in a deal valued at $24.6 billion. The deal will undoubtedly cause some debt concerns since the company already has nearly $10 billion in net debt (total debt minus cash and cash equivalents).
In a high-interest rate environment, growing debt can weigh heavily on the balance sheet of a company, but management believes it can achieve a healthier net leverage ratio (which the company defines as net debt divided by the sum of the most recent four quarters' adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization) to 2.5 times EBITDA in the first 18 to 24 months after the merger.
For comparison, Kroger's net leverage ratio at the end of its fiscal first quarter 2023 was a much-healthier 1.3 times EBITDA. A net leverage ratio of 3 times EBITDA could signal trouble, so investors should keep an eye on whether management is able to reach its own goals after the merger. Despite these debt concerns, the company intends to continue paying and raising its quarterly dividend.
Perhaps more importantly, the merger presents a compelling opportunity for an already dominant player in the grocery industry to expand its market share significantly.
To illustrate, in Kroger's previous fiscal year, the company generated $148 billion in revenue and $2.2 billion in net earnings from approximately 2,800 stores across the United States. After the merger, the combined entity is projected to achieve an estimated revenue of $210 billion, $3.3 billion in net earnings, and operate from a larger network of 5,000 locations.
While the deal awaits approval from the Federal Trade Commission, the management teams of both companies maintain a positive outlook, anticipating completion in early 2024.
Are these Buffett stocks worth buying?
Warren Buffett is often referred to as the Oracle of Omaha for finding and buying stocks that have tremendous upside over the long term. While Buffett didn't first pick these two particular stocks, they have both been bright spots in Berkshire's portfolio due to their dominance in their respective industries and growing dividends. That should help make Apple and Kroger compelling additions to any long-term investor's portfolio.
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
Collin Brantmeyer has positions in Apple, Berkshire Hathaway, and SPDR S&P 500 ETF Trust. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Kroger. 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 At a stake worth over $150 billion, Apple (NASDAQ: AAPL) represents nearly 50% of Berkshire's portfolio, making the tech company by far and away the largest position it holds. Warren Buffett, longtime CEO and chairperson of Berkshire Hathaway, has had a remarkable career spanning decades, earning a reputation as one of the most successful investors of all time. Still, for a company like Apple, which has a history of excellence and the backing of Warren Buffett, long-term investors should consider dollar-cost averaging into one of the best businesses ever created if they are worried about its current valuation.
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Apple At a stake worth over $150 billion, Apple (NASDAQ: AAPL) represents nearly 50% of Berkshire's portfolio, making the tech company by far and away the largest position it holds. Currently, Kroger pays its shareholders a quarterly dividend of $0.29 per share, representing an annual dividend yield of 2.4%. That should help make Apple and Kroger compelling additions to any long-term investor's portfolio.
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Apple At a stake worth over $150 billion, Apple (NASDAQ: AAPL) represents nearly 50% of Berkshire's portfolio, making the tech company by far and away the largest position it holds. Similar to Apple, Kroger's management is buying back its own stock hand over fist, having repurchased 30% of its outstanding shares during the last 10 years. In a high-interest rate environment, growing debt can weigh heavily on the balance sheet of a company, but management believes it can achieve a healthier net leverage ratio (which the company defines as net debt divided by the sum of the most recent four quarters' adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization) to 2.5 times EBITDA in the first 18 to 24 months after the merger.
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Apple At a stake worth over $150 billion, Apple (NASDAQ: AAPL) represents nearly 50% of Berkshire's portfolio, making the tech company by far and away the largest position it holds. Still, for a company like Apple, which has a history of excellence and the backing of Warren Buffett, long-term investors should consider dollar-cost averaging into one of the best businesses ever created if they are worried about its current valuation. Similar to Apple, Kroger's management is buying back its own stock hand over fist, having repurchased 30% of its outstanding shares during the last 10 years.
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14447.0
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2023-08-06 00:00:00 UTC
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Will Alphabet Pay a Dividend Soon?
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AAPL
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https://www.nasdaq.com/articles/will-alphabet-pay-a-dividend-soon
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nan
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nan
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Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is a moneymaking machine. But the company has never paid a dividend. In this video, Travis Hoium makes the argument that should change in the near future.
*Stock prices used were end-of-day prices of Aug. 1, 2023. The video was published on Aug. 2, 2023.
10 stocks we like better than Alphabet
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel.
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In this video, Travis Hoium makes the argument that should change in the near future. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium has positions in Alphabet and Apple.
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10 stocks we like better than Alphabet When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. 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.
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In this video, Travis Hoium makes the argument that should change in the near future. 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.
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14448.0
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2023-08-06 00:00:00 UTC
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5 Artificial Intelligence Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/5-artificial-intelligence-stocks-to-buy-now-0
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nan
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nan
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Not all artificial intelligence companies will add value to shareholders long term, but these companies have a great chance to do just that. In this video, Travis Hoium covers five great AI stocks and tells why they're positioned for success.
*Stock prices used were end-of-day prices of Aug. 1, 2023. The video was published on Aug. 2, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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. 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. Travis Hoium has positions in Alphabet, Apple, and Dropbox. The Motley Fool has positions in and recommends Adobe, Alphabet, Apple, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this video, Travis Hoium covers five great AI stocks and tells why they're positioned for success. 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 Adobe, Alphabet, Apple, Meta Platforms, and Microsoft.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Adobe, Alphabet, Apple, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Adobe, Alphabet, Apple, Meta Platforms, and Microsoft.
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In this video, Travis Hoium covers five great AI stocks and tells why they're positioned for success. 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. The Motley Fool has positions in and recommends Adobe, Alphabet, Apple, Meta Platforms, and Microsoft.
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14449.0
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2023-08-06 00:00:00 UTC
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iPhone Sales Are Slowing. Here's Why Apple Doesn't Really Care.
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AAPL
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https://www.nasdaq.com/articles/iphone-sales-are-slowing.-heres-why-apple-doesnt-really-care.
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nan
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nan
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As was widely anticipated, Apple (NASDAQ: AAPL) reported lower year-over-year revenue for its quarter ending in early July. The decline wasn't as dramatic as feared, however. Its top line fell from $83 billion a year earlier to $81.8 billion this time around versus estimates of $81.7 billion. Earnings grew from $1.20 per share then to $1.26 now, topping estimates of $1.19 per share.
Once again, declining iPhone revenue is a key culprit in this third consecutive quarterly revenue dip. Apple only sold $39.7 billion worth of the popular smartphone during its third fiscal quarter of the year, down from the year-ago comparison of just under $40.7 billion.
Let there be no mistake -- the revenue dip isn't solely the result of lower selling prices. Apple is selling fewer iPhones.
The thing is, it doesn't really matter.
Yes, iPhone sales are slowing down
Longtime followers of Apple stock already know the company stopped sharing unit sales data back in 2018. Other in-the-know observers have continued to track unit sales anyway, confirming what many investors quietly suspect: Apple isn't selling as many iPhones as it used to.
Technology market research outfit IDC is one of these other observers. It estimates unit sales of the iPhone slipped to 42.5 million in the second quarter of this year, extending weakness that first took shape following the late-2020 peak. In fact, last quarter's iPhone shipment count was the lowest quarterly figure since the third quarter of 2020, when the number was on the way up.
Data source: IDC. Chart by author. Figures are in millions.
It's not entirely Apple's fault. As the graphic above also shows, the whole smartphone market has been shrinking since 2017. Consumers are keeping their increasingly expensive devices for longer, and there are fewer cellphone owners left to convert to smartphone users.
Numbers from Pew Research say that 97% of adults living in the U.S. now own a mobile phone, and 85% of these people own a smartphone. They don't need another one, at least not yet. It's not a stretch to presume we're seeing similar cellphone and smartphone ownership rates overseas.
Apple shareholders need not worry just yet, though. The company's more than ready for this slowdown.
Services are the future, devices are a means to the end
Apple's Q3 press release alluded to the growth engine that's picking up the slack being left behind by iPhone sales. CEO Tim Cook explained, "We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions." Services revenue grew from $19.6 billion in the third fiscal quarter of 2022 to $21.2 billion a quarter ago.
The comment, however, doesn't do this particular profit center justice.
Apple's quarterly reporting doesn't make this terribly clear to the casual observer. But profit margin rates on services are much higher than the company's profit margins on physical products. For perspective, last quarter's product sales of $60.6 billion cost Apple $39.1 billion, leaving behind a profit of $21.5 billion, or 35.5% of revenue. Services revenue of $21.2 billion, on the other hand, only cost the company $6.2 billion. That's a difference of $15 billion, translating into a profit margin rate of 70.7%.
The majority of Apple's revenue obviously still comes from sales of physical products. So, most of its gross profits also still come from sales of goods like iPhones, iPads, and Mac computers (although iPhones make up the majority of these sales).
Data source: Apple. Chart by author. Figures are in millions.
Something of a milestone was met in this regard last quarter. For the first time ever, products accounted for less than 60% of the company's gross profit, while services accounted for more than 40% of its gross income.
Data source: Apple. Chart by author.
Given the bigger-picture slowdown in all smartphone sales, don't look for this shift in the company's profit mix to reverse course anytime soon.
But that may ultimately be the more profitable path to take.
Buy Apple stock because it's handling the shift like a champ
Don't misread the message. Apple would love to have more of both types of revenue, as the ongoing proliferation of iPhones is the key driver of its Services arm's sales and profit growth. As Cook explained in the press release, the company watched its "installed base of active devices reach an all-time high" in the same quarter Services revenue reached a record as well. Connect the dots.
Given the smartphone market's prolonged and strengthening headwind, however, meaningful Product sales growth probably isn't in the cards anytime soon.
Fortunately, the company's got a great plan B that's not only already in place but is already working even as the company is still learning how to extract more revenue from iPhone owners (and iOS users in general). As it gets better at doing this, don't be surprised to see Services eclipse Products as Apple's top profit center. That would be a much more consistent business to prioritize anyway.
Bottom line? Shares of Apple fell following Thursday's post-close release of last quarter's numbers, with investors largely concerned about the third-straight sales slump. Don't sweat it. The dip just makes for an even better buying opportunity.
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
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As was widely anticipated, Apple (NASDAQ: AAPL) reported lower year-over-year revenue for its quarter ending in early July. Services are the future, devices are a means to the end Apple's Q3 press release alluded to the growth engine that's picking up the slack being left behind by iPhone sales. CEO Tim Cook explained, "We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions."
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As was widely anticipated, Apple (NASDAQ: AAPL) reported lower year-over-year revenue for its quarter ending in early July. Its top line fell from $83 billion a year earlier to $81.8 billion this time around versus estimates of $81.7 billion. For perspective, last quarter's product sales of $60.6 billion cost Apple $39.1 billion, leaving behind a profit of $21.5 billion, or 35.5% of revenue.
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As was widely anticipated, Apple (NASDAQ: AAPL) reported lower year-over-year revenue for its quarter ending in early July. Yes, iPhone sales are slowing down Longtime followers of Apple stock already know the company stopped sharing unit sales data back in 2018. Services revenue grew from $19.6 billion in the third fiscal quarter of 2022 to $21.2 billion a quarter ago.
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As was widely anticipated, Apple (NASDAQ: AAPL) reported lower year-over-year revenue for its quarter ending in early July. Yes, iPhone sales are slowing down Longtime followers of Apple stock already know the company stopped sharing unit sales data back in 2018. They don't need another one, at least not yet.
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14450.0
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2023-08-05 00:00:00 UTC
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Berkshire posts record operating profit, $35.9 billion of net income
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AAPL
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https://www.nasdaq.com/articles/berkshire-posts-record-operating-profit-%2435.9-billion-of-net-income
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Aug 5 (Reuters) - Berkshire Hathaway BRKa.N on Saturday posted its highest-ever quarterly operating profit, bolstered by improved results in its insurance businesses, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit.
Operating profit rose 7% to $10.04 billion, or about $6,938 per Class A share, from $9.42 billion a year earlier.
Net income totaled $35.91 billion, or $24,775 per Class A share, compared with a year-earlier $43.62 billion loss.
Berkshire also said it repurchased $1.4 billion of stock in the quarter.
(Reporting by Jonathan Stempel in New York; Editing by Angus MacSwan)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 5 (Reuters) - Berkshire Hathaway BRKa.N on Saturday posted its highest-ever quarterly operating profit, bolstered by improved results in its insurance businesses, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit. Berkshire also said it repurchased $1.4 billion of stock in the quarter. (Reporting by Jonathan Stempel in New York; Editing by Angus MacSwan) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 5 (Reuters) - Berkshire Hathaway BRKa.N on Saturday posted its highest-ever quarterly operating profit, bolstered by improved results in its insurance businesses, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit. Operating profit rose 7% to $10.04 billion, or about $6,938 per Class A share, from $9.42 billion a year earlier. Net income totaled $35.91 billion, or $24,775 per Class A share, compared with a year-earlier $43.62 billion loss.
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Aug 5 (Reuters) - Berkshire Hathaway BRKa.N on Saturday posted its highest-ever quarterly operating profit, bolstered by improved results in its insurance businesses, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit. Operating profit rose 7% to $10.04 billion, or about $6,938 per Class A share, from $9.42 billion a year earlier. Net income totaled $35.91 billion, or $24,775 per Class A share, compared with a year-earlier $43.62 billion loss.
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Aug 5 (Reuters) - Berkshire Hathaway BRKa.N on Saturday posted its highest-ever quarterly operating profit, bolstered by improved results in its insurance businesses, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit. Operating profit rose 7% to $10.04 billion, or about $6,938 per Class A share, from $9.42 billion a year earlier. Net income totaled $35.91 billion, or $24,775 per Class A share, compared with a year-earlier $43.62 billion loss.
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14451.0
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2023-08-05 00:00:00 UTC
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74% of Warren Buffett's Portfolio Is in 5 Stocks -- but Only This 1 Is Beating the Market
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https://www.nasdaq.com/articles/74-of-warren-buffetts-portfolio-is-in-5-stocks-but-only-this-1-is-beating-the-market
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Warren Buffett's top stocks often make for good long-term investments. But this year, only one of the top five holdings in Berkshire Hathaway's investment portfolio is beating the markets. And while it's only a handful of stocks that are carrying the S&P 500's strong 18% gains this year, it has still been a largely lackluster year for most of these Buffett stocks. Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca-Cola (NYSE: KO), and Chevron (NYSE: CVX) account for a combined 74% of Berkshire's stock portfolio. Here's how these stocks have performed this year, in order from worst to best:
Chevron: -10%
Oil and gas producer Chevron hasn't been doing poorly, but with oil prices lower, investors have been increasingly bearish on the stock. Chevron released its latest earnings numbers on July 28 and while it posted a profit of more than $6 billion, that's still well shy of the incredible $11.6 billion profit it reported in the same period last year.
The company blamed the worsening results on lower margins and lower upstream realizations during the period. Oil prices remain strong this year and that could remain the case for the foreseeable future as both Russia and Saudi Arabia are looking to extend production cuts in order to help keep prices high. Over the years, the stock's performance has closely followed the path of West Texas Intermediate, a key oil benchmark in the industry:
CVX data by YCharts.
Chevron can be a good hedge against inflation. It also pays an attractive dividend which yields 3.6% (the S&P 500 average is around 1.5%). If you're looking for a strong income stock to hold, Chevron can make for an excellent investment despite its underwhelming performance this year.
Bank of America: -5.6%
Challenging economic conditions, fears of a looming recession, and multiple bank failures this year explain why investors haven't been bullish on a top bank such as Bank of America this year. Although the company's net income for the period ended June 30 totaled $7.4 billion and was up 19%, that hasn't been enough to make investors eager to invest in the bank stock.
There is always the lingering fear that a downturn isn't that far away and that with rate hikes still not over, the worst could still be on the way for the economy. And if that happens, bank stocks could be in free fall. Bank of America remains cautious as well, adding to its reserve build as its provision for credit losses totaled $1.1 billion this quarter, up from $500 million a year ago.
While Buffett has gotten rid of other bank stocks, he has remained with Bank of America, saying that the likes the management. And at 3%, this is another high-yielding dividend stock investors can buy and hold for the long term. Plus, with the economy growing by 2.4% last quarter and beating expectations, there's growing optimism that a recession may not end up happening. And that could make Bank of America a very underrated buy right now.
Coca-Cola: -3%
Coca-Cola is one of Buffett's favorite stocks; the billionaire investor previously said he drinks as many as five cans of coke per day. The soft drink company is a favorite of many consumers as well, as it has been holding its own amid inflation, raising prices, and still not seeing a big drop in demand. This year, it expects organic revenue growth of up to 9% -- that's a stellar growth rate for a business that normally achieves much smaller gains:
KO Revenue (Annual YoY Growth) data by YCharts.
But investors may be cooling their expectations for the stock as it trades at 26 times earnings. And with a growth rate that may not stay this high for much longer, the stock is not as overwhelming of a buy as it may have been in recent years. However, investors may still want to consider loading up on it for its dividend as Coca-Cola's yield is up around 3%.
American Express: +12%
The second-best performing stock on this list is American Express. The top credit card company caters to affluent customers and thus the risk surrounding it is a bit less than it may be for the other financial stock on this list, Bank of America. Business is booming for the card issuer. For the period ending June 30, American Express reported record revenue of $15.1 billion, which was up 12% year over year. It, too, has increased its provisions for credit losses ($1.2 billion versus $410 million a year earlier) but its earnings were still up 11% to a little under $2.2 billion overall.
It was the fifth straight period in which the company posted record revenue. The business hasn't been slowing down despite inflation and consumers tightening up on spending, in what may be further proof that its customer base is more resilient than others. But even with the strong results, the stock's gains this year still lag behind the S&P 500, which is up nearly 20%.
American Express trades at only 17 times earnings which is cheaper than rivals Mastercard and Visa, which are both at multiples of over 30. At an attractive valuation and with continued growth, American Express is a stock that can continue rising. And with a dividend yield of 1.4%, investors can also collect a decent payout from this investment.
Apple: +48%
The only Berkshire stock on this list that has outperformed the S&P 500 this year is Apple. The tech giant has soared due to its resilient results this year, coupled with a comeback in tech. What's also helping Apple is that it has been working on developing more growth opportunities. Earlier this year, it announced the launch of its Vision Pro headsets, which give customers the ability to experience content for both virtual and augmented reality. There are also rumors that it is working on its own version of ChatGPT, which some engineers are referring to as "Apple GPT."
At a $3 trillion market cap, the company's valuation continues to reach new heights. The challenge will be, however, whether it can continue rising, as it's trading at a fairly high price-to-earnings multiple of 33. And for the first three months of the year, sales were down 3% to $94.8 billion.
There's still more growth ahead for the business, but investors should be careful not to get too excited about Apple as its valuation has gotten a bit pricey amid the hype in tech stocks this year. And while Apple has grown its dividend over the years, it remains relatively modest at just 0.5%.
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 July 27, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Mastercard, and Visa. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long January 2025 $370 calls on Mastercard, and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca-Cola (NYSE: KO), and Chevron (NYSE: CVX) account for a combined 74% of Berkshire's stock portfolio. Although the company's net income for the period ended June 30 totaled $7.4 billion and was up 19%, that hasn't been enough to make investors eager to invest in the bank stock. Bank of America remains cautious as well, adding to its reserve build as its provision for credit losses totaled $1.1 billion this quarter, up from $500 million a year ago.
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Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca-Cola (NYSE: KO), and Chevron (NYSE: CVX) account for a combined 74% of Berkshire's stock portfolio. For the period ending June 30, American Express reported record revenue of $15.1 billion, which was up 12% year over year. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long January 2025 $370 calls on Mastercard, and short January 2025 $380 calls on Mastercard.
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Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca-Cola (NYSE: KO), and Chevron (NYSE: CVX) account for a combined 74% of Berkshire's stock portfolio. And while it's only a handful of stocks that are carrying the S&P 500's strong 18% gains this year, it has still been a largely lackluster year for most of these Buffett stocks. Here's how these stocks have performed this year, in order from worst to best: Chevron: -10% Oil and gas producer Chevron hasn't been doing poorly, but with oil prices lower, investors have been increasingly bearish on the stock.
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Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca-Cola (NYSE: KO), and Chevron (NYSE: CVX) account for a combined 74% of Berkshire's stock portfolio. And that could make Bank of America a very underrated buy right now. Apple: +48% The only Berkshire stock on this list that has outperformed the S&P 500 this year is Apple.
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14452.0
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2023-08-05 00:00:00 UTC
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Berkshire posts record operating profit as rising rates boost Buffett's returns
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https://www.nasdaq.com/articles/berkshire-posts-record-operating-profit-as-rising-rates-boost-buffetts-returns
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By Jonathan Stempel
Aug 5 (Reuters) - Berkshire Hathaway BRKa.N on Saturday posted its highest ever quarterly operating profit, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit.
Rising interest rates, and better results at the Geico car insurer, allowed Berkshire's insurance businesses to generate more money in the second quarter, with profit up 38% and interest and other investment income growing sixfold.
But while operating profit topped $10 billion, those same rising rates have made it more costly to buy and upgrade homes, hurting results at Berkshire's Clayton Homes and building products businesses, and buy RVs from its Forest River unit, where revenue sank 34%.
Profit also fell at one of Berkshire's largest businesses, the BNSF railroad, with a 24% decline reflecting lower shipments of consumer goods, price competition from truckers, and higher pay for employees.
Berkshire also appeared to remain wary of high stock prices as U.S. equities extended their rally.
During the second quarter it sold $8 billion more stocks than it bought and repurchased less of its own stock, and it ended June with a near-record $147.4 billion of cash.
"The story here is interest rates, and valuations of stocks," said Jim Shanahan, an Edward Jones analyst with a "buy" rating on Berkshire.
"The earnings impact of higher interest rates on investment income is offsetting the economic softness caused by those same rates," he added. "And it's clear there aren't a lot of attractive investment opportunities out there."
Investors closely watch Berkshire because of Buffett's reputation, and because results from the Omaha, Nebraska-based company's operating units often mirror broader economic trends.
Buffett turns 93 on August 30. He is worth $117.5 billion and the world's sixth-richest person, Forbes magazine said.
NOT LOVING VALUATIONS
Quarterlyoperating profit rose 7% to $10.04 billion, or about $6,938 per Class A share, from $9.42 billion a year earlier.
Operating results reflected recent purchases of Alleghany, whose businesses include various insurers and the toy company that makes Squishmallows, and the Pilot truck stop operator, which added $114 million of profit.
Net income totaled $35.91 billion, or $24,775 per Class A share, compared with a year-earlier $43.62 billion loss.
Berkshire repurchased $1.4 billion of stock in the quarter, down from $4.4 billion from January to March.
It also sold $12.6 billion of stocks, while buying just $4.6 billion. Apple AAPL.O comprised about half of Berkshire's $353 billion equity portfolio.
"They're not loving valuations," said Cathy Seifert, a CFRA Research analyst with a "hold" rating on Berkshire.
"The quarter was strong, but organic growth trends are not that robust," Seifert added. "The question that will be on investors' minds is how to position the company for strong growth without more frequent acquisitions."
Net results included $25.9 billion of largely unrealized gains from investments and derivatives, which accounting rules require Berkshire to report. This adds volatility to quarterly results, and Buffett urges investors to ignore the fluctuations.
WILDFIRE LOSSES
Geico posted a $514 million pre-tax underwriting profit, its second straight profitable quarter after six quarters of losses, as higher average premiums, fewer accidents and less ad spending offset a decline in policies-in-force.
Overall profit from Berkshire Hathaway Energy, where Berkshire has a 92% stake, was little changed at $785 million.
But the company said it faces a potential $1.02 billion of pre-tax losses, or $608 million not covered by insurance, at its PacifiCorp electric utility unit tied to a series of Oregon wildfires in 2020.
An Oregon jury in June found PacifiCorp liable to homeowners for negligence after failing to shut down power lines that caused four fires. PacifiCorp plans an appeal.
Results also included profit attributable to Berkshire's 25.3% stake in Occidental Petroleum OXY.N.
Berkshire also owns $8.8 billion of Occidental preferred stock, which throws off an 8% dividend, though the oil company has redeemed some of the original $10 billion it issued.
The Class A shares of Berkshire closed Friday at $533,600, about 2% below their record high. They are up 14% this year, while the Standard & Poor's 500 .SPXhas risen 17%.
(Reporting by Jonathan Stempel in New York; Editing by Ira Iosebashvili, Angus MacSwan, Jan Harvey, Alistair Bell and Diane Craft)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O comprised about half of Berkshire's $353 billion equity portfolio. Profit also fell at one of Berkshire's largest businesses, the BNSF railroad, with a 24% decline reflecting lower shipments of consumer goods, price competition from truckers, and higher pay for employees. Investors closely watch Berkshire because of Buffett's reputation, and because results from the Omaha, Nebraska-based company's operating units often mirror broader economic trends.
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Apple AAPL.O comprised about half of Berkshire's $353 billion equity portfolio. By Jonathan Stempel Aug 5 (Reuters) - Berkshire Hathaway BRKa.N on Saturday posted its highest ever quarterly operating profit, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit. Rising interest rates, and better results at the Geico car insurer, allowed Berkshire's insurance businesses to generate more money in the second quarter, with profit up 38% and interest and other investment income growing sixfold.
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Apple AAPL.O comprised about half of Berkshire's $353 billion equity portfolio. By Jonathan Stempel Aug 5 (Reuters) - Berkshire Hathaway BRKa.N on Saturday posted its highest ever quarterly operating profit, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit. But while operating profit topped $10 billion, those same rising rates have made it more costly to buy and upgrade homes, hurting results at Berkshire's Clayton Homes and building products businesses, and buy RVs from its Forest River unit, where revenue sank 34%.
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Apple AAPL.O comprised about half of Berkshire's $353 billion equity portfolio. By Jonathan Stempel Aug 5 (Reuters) - Berkshire Hathaway BRKa.N on Saturday posted its highest ever quarterly operating profit, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit. It also sold $12.6 billion of stocks, while buying just $4.6 billion.
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14453.0
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2023-08-05 00:00:00 UTC
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Will Tesla Follow in Apple's Footsteps?
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https://www.nasdaq.com/articles/will-tesla-follow-in-apples-footsteps
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In this week's video, I cover need-to-know news items related to Tesla (NASDAQ: TSLA) during the week of July 31. Today's video will focus on the plans for a Tesla Semi charging network, new information about Tesla moving to India, more leaks about the Model 3 refresh called Project Highland, and Tesla's sales numbers in China.
You can find last week's summary here and the recap of Tesla's earnings report here.
*Stock prices used were from the trading day of Aug. 3, 2023. The video was published on Aug. 4, 2023.
Find out why Tesla is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of August 3, 2023
Neil Rozenbaum has positions in Tesla. The Motley Fool has positions in and recommends Apple and Tesla. The Motley Fool has a disclosure policy. Neil 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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Find out why Tesla is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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In this week's video, I cover need-to-know news items related to Tesla (NASDAQ: TSLA) during the week of July 31. 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 and Tesla.
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Today's video will focus on the plans for a Tesla Semi charging network, new information about Tesla moving to India, more leaks about the Model 3 refresh called Project Highland, and Tesla's sales numbers in China. Find out why Tesla is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. The Motley Fool has positions in and recommends Apple and Tesla.
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You can find last week's summary here and the recap of Tesla's earnings report here. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. His opinions remain his own and are unaffected by The Motley Fool.
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14454.0
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2023-08-05 00:00:00 UTC
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Why I Just Loaded Up on Warren Buffett's Second-Biggest Holding
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https://www.nasdaq.com/articles/why-i-just-loaded-up-on-warren-buffetts-second-biggest-holding
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Warren Buffett and I have more in common than you might think. Sure, we're from different generations and geographical regions. And Buffett is a lot wealthier than I am.
However, we both like Coca-Cola's soft drinks. We both like investing. Buffett focuses on the long term, and so do I. We even own several of the same stocks, including Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) itself.
And now we have something else in common. Here's why I just loaded up on Buffett's second-biggest holding.
Image source: The Motley Fool.
It's probably not what you think it is
Most people who are familiar with Buffett's investments know that Apple (NASDAQ: AAPL) ranks, by far, as the largest holding in Berkshire Hathaway's portfolio. Apple is my largest stock position too, by the way.
What is Buffett's second-largest position? It's probably not what you think it is. If you look at a list of Berkshire's equity holdings, Bank of America (NYSE: BAC) comes in second behind Apple. However, the bank actually isn't Buffett's second-largest position.
Berkshire's stake in Bank of America currently stands at around $31.8 billion. While that's enough to make it the second-biggest stock in the conglomerate's portfolio, it owns a lot more of another asset -- U.S. Treasuries.
As of March 31, 2023, Berkshire had nearly $104 billion worth of U.S. Treasury bills. The amount could be even higher now. Buffett told CNBC earlier this year that "the money comes in every day." He added that Berkshire continues to buy Treasuries "every Monday."
Why I'm following Buffett's lead
I have also invested heavily in U.S. Treasuries in recent weeks. Short-term Treasury bonds now rank as one of my largest positions. Why? For the same reasons that Buffett has so much money in them.
First, U.S. Treasuries are arguably the safest investment around. They're backed by the full faith and credit of the U.S. government. Sure, Fitch recently downgraded the long-term credit rating of the U.S. to AA+ from the highest level of AAA. However, that was mainly because of the political battles over increasing the debt limit, not because the U.S. government's ability to service its debt has declined.
Second, their yields are quite attractive. The six-month Treasury currently yields more than 5.5%. All Treasuries with maturities of one year or less offer yields of at least 5.37%.
Third, the stock market is overvalued nearly any way you look at it. The historical average for the S&P 500 Shiller CAPE (cyclically adjusted price-to-earnings) ratio is around 15 or 16. The market is considered to be overvalued when the ratio tops 20. It currently stands at nearly 31 -- one of the highest levels in the last 50 years.
S&P 500 Shiller CAPE Ratio data by YCharts.
Buffett stated years ago that the ratio of the total market cap of the stock market to the gross domestic product (GDP) is "probably the best single measure of where valuations stand at any given moment." This metric became widely known as the "Buffett indicator." And it's also near its highest levels in 50 years.
US Total Market Capitalization as % of GDP data by YCharts.
On the same page
Buffett wrote to Berkshire Hathaway shareholders in 2022 that his "favored status" is to be 100% invested in equities. However, he keeps more money in cash and short-term U.S. Treasuries when stocks aren't attractively valued.
I'm completely on the same page as Buffett. Do I want to have so much cash invested in U.S. Treasuries? Nope. Stocks can generate much greater returns over the long run.
Granted, there are some stocks that aren't ridiculously expensive. I own several of them already. But I also think that it's just a matter of time before the market pulls back and provides great buying opportunities for many other great stocks. Like Buffett, I'll be ready with plenty of cash to deploy when that happens.
10 stocks we like better than Berkshire Hathaway
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's probably not what you think it is Most people who are familiar with Buffett's investments know that Apple (NASDAQ: AAPL) ranks, by far, as the largest holding in Berkshire Hathaway's portfolio. Sure, Fitch recently downgraded the long-term credit rating of the U.S. to AA+ from the highest level of AAA. On the same page Buffett wrote to Berkshire Hathaway shareholders in 2022 that his "favored status" is to be 100% invested in equities.
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It's probably not what you think it is Most people who are familiar with Buffett's investments know that Apple (NASDAQ: AAPL) ranks, by far, as the largest holding in Berkshire Hathaway's portfolio. If you look at a list of Berkshire's equity holdings, Bank of America (NYSE: BAC) comes in second behind Apple. However, he keeps more money in cash and short-term U.S. Treasuries when stocks aren't attractively valued.
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It's probably not what you think it is Most people who are familiar with Buffett's investments know that Apple (NASDAQ: AAPL) ranks, by far, as the largest holding in Berkshire Hathaway's portfolio. Buffett stated years ago that the ratio of the total market cap of the stock market to the gross domestic product (GDP) is "probably the best single measure of where valuations stand at any given moment." See the 10 stocks *Stock Advisor returns as of August 1, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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It's probably not what you think it is Most people who are familiar with Buffett's investments know that Apple (NASDAQ: AAPL) ranks, by far, as the largest holding in Berkshire Hathaway's portfolio. Do I want to have so much cash invested in U.S. Treasuries? The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
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14455.0
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2023-08-05 00:00:00 UTC
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The Unfortunate Truth About Maxing Out Your 401(k)
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https://www.nasdaq.com/articles/the-unfortunate-truth-about-maxing-out-your-401k-12
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Retirement accounts and the 401(k) have become somewhat synonymous. By far the most popular type of retirement account is the 401(k), with close to 35% of working-age people (age 15 to 64) having one or an equivalent like a 403(b). The percentage is even higher for adults when you consider that most jobs for teenagers don't offer a 401(k).
When it comes to saving for retirement, the idea has always been the more, the better. That's why maxing out a 401(k) seems like a no-brainer. However, the unfortunate truth about maxing out your 401(k) is that it's overrated.
Image source: Getty Image.
Your investment options will be noticeably limited
When you contribute to a 401(k), your plan provider gives you investment options to choose from. It varies by plan, but most have a combination of the following:
Market cap index funds (large, mid, and small)
International index funds
Target-date funds
Your company's stock
For some investors, the fewer options and more hands-off they can be, the better. These investors embrace the true meaning of "set it and forget it." For other investors, the provided options limit how they can tailor their investments to match their financial goals and risk tolerance.
Suppose you want to invest in companies like Apple, Microsoft, or Amazon, but you don't work for those companies. You couldn't buy those individual stocks in most 401(k)s, aside from them being holdings in the available target-date or index funds. Yet that would have caused you to miss out on spectacular long-term gains.
Data by YCharts
You'll be facing tough withdrawal rules
The purpose of a 401(k) is saving for retirement, and the IRS makes sure it sets limits in place so you use it for just that.
Generally, you can't withdraw from your 401(k) until you're 59 1/2 years old. Doing so before that will trigger a 10% early withdrawal penalty, and you'll also owe taxes on the amount. For example, if you withdraw $50,000 early, you'll face a $5,000 penalty plus relevant taxes. Depending on your tax bracket, you could receive an amount way below your withdrawal.
The same 10% early withdrawal penalty also applies to IRAs, but they have more permissive withdrawal rules. Here's how exceptions to the 10% penalty stack up between a 401(k) and IRAs:
EXCEPTION APPLIES TO 401(K) APPLIES TO IRAS
Disability Yes Yes
Education No Yes
First-time home purchase No Yes
Medical reimbursement Yes Yes
Medical insurance premiums No Yes
Data source: IRS.
It would be best if you didn't want to take money from your retirement accounts, but sometimes life happens. You just never know. Even if you don't want to withdraw, it's nice to have more penalty-free options with an account like an IRA.
Maxing out a 401(k) just isn't feasible for most people
The maximum contribution someone can make to a 401(k) in 2023 is $22,500 ($30,000 if they're 50 or older).
According to the U.S. Census Bureau, the median U.S. household income is just over $70,000. Needless to say, that makes saving $22,500 to $30,000 annually a tough ask and downright impossible for many people.
Yes, you should always want to save for retirement. There's no doubt about that. However, you don't want to completely jeopardize your current livelihood trying to do so. It's more than understandable if you don't max out your 401(k).
At a minimum, you should aim to contribute the most your employer will match. Contributing anything less than that is leaving money on the table. For example, if you make $80,000 and your employer matches up to 5%, only contributing 3% would cause you to miss out on an extra $1,600. That's not only money missed in the present, but it's also money that never had the chance to grow and compound.
Every dollar matters in retirement. Make sure you're taking every opportunity to maximize yours.
The $21,756 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $21,756 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Amazon.com, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For other investors, the provided options limit how they can tailor their investments to match their financial goals and risk tolerance. Data by YCharts You'll be facing tough withdrawal rules The purpose of a 401(k) is saving for retirement, and the IRS makes sure it sets limits in place so you use it for just that. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
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It varies by plan, but most have a combination of the following: Market cap index funds (large, mid, and small) International index funds Target-date funds Your company's stock For some investors, the fewer options and more hands-off they can be, the better. Data by YCharts You'll be facing tough withdrawal rules The purpose of a 401(k) is saving for retirement, and the IRS makes sure it sets limits in place so you use it for just that. The same 10% early withdrawal penalty also applies to IRAs, but they have more permissive withdrawal rules.
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Data by YCharts You'll be facing tough withdrawal rules The purpose of a 401(k) is saving for retirement, and the IRS makes sure it sets limits in place so you use it for just that. It would be best if you didn't want to take money from your retirement accounts, but sometimes life happens. Maxing out a 401(k) just isn't feasible for most people The maximum contribution someone can make to a 401(k) in 2023 is $22,500 ($30,000 if they're 50 or older).
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Data by YCharts You'll be facing tough withdrawal rules The purpose of a 401(k) is saving for retirement, and the IRS makes sure it sets limits in place so you use it for just that. For example, if you make $80,000 and your employer matches up to 5%, only contributing 3% would cause you to miss out on an extra $1,600. The $21,756 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings.
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14456.0
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2023-08-05 00:00:00 UTC
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3 Red-Hot Tech Stocks
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AAPL
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https://www.nasdaq.com/articles/3-red-hot-tech-stocks
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nan
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There are some big-name stocks that have performed incredibly well in 2023. But they're getting very expensive. In this video, Travis Hoium tells why at least two of these hot stocks may be too expensive to buy today.
*Stock prices used were end-of-day prices of Aug. 1, 2023. The video was published on Aug. 2, 2023.
10 stocks we like better than Nvidia
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 1, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple and Shopify. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Shopify. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this video, Travis Hoium tells why at least two of these hot stocks may be too expensive to buy today. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium has positions in Apple and Shopify. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Shopify.
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In this video, Travis Hoium tells why at least two of these hot stocks may be too expensive to buy today. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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In this video, Travis Hoium tells why at least two of these hot stocks may be too expensive to buy today. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! Their opinions remain their own and are unaffected by The Motley Fool.
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14457.0
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2023-08-05 00:00:00 UTC
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2 Warren Buffett Super Stocks to Buy Hand Over Fist in August
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AAPL
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https://www.nasdaq.com/articles/2-warren-buffett-super-stocks-to-buy-hand-over-fist-in-august
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nan
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Born in Omaha, Nebraska on Aug. 30, 1930, Warren Buffett has become one of the most successful investors in history. The Berkshire Hathaway CEO has led his company on an incredible run of market-beating success and generated fantastic returns for long-term shareholders. He's also been an inspiration to millions of investors around the world and helped popularize wisdom, strategies, and individual investment opportunities that have put people on a path to financial freedom.
If you're looking to follow in Buffett's footsteps, read on to see why two Motley Fool contributors believe that investing in these Berkshire Hathaway portfolio components would be a smart move this month.
This is Buffett's favorite stock
Keith Noonan: If you're looking to replicate Buffett's investing moves, it makes sense to own Apple (NASDAQ: AAPL) in your portfolio. In a stunning vote of confidence, the Oracle of Omaha has made the tech stock Berkshire Hathaway's largest portfolio holding by far. Apple currently accounts for 46.9% of the company's stock portfolio. For comparison, Bank of America is Berkshire's second-largest stock position and makes up 8.9% of its total portfolio.
In recent years, Apple has often ranked as the world's most profitable company or taken second place behind oil giant Saudi Aramco. The tech giant stands as the world's largest company and currently has a market capitalization of nearly $3.1 trillion. Buffett loves companies with strong brands that are capable of serving up consistent profits, and Apple's world-beating business performance has made the stock a big winner for Berkshire Hathaway.
Berkshire first bought Apple shares in the first quarter of 2016, and investing in the tech giant has played a huge role in powering the tech conglomerate to beating the S&P 500 index since then. Berkshire's share price has climbed 171% since the beginning of 2016, handily topping the S&P 500 index's total return of 158% across the stretch.
Meanwhile, Apple stock has delivered a dividend-adjusted total return of 718% across the stretch.
AAPL Total Return Level data by YCharts
In addition to claiming more than 85% of global operating profits from smartphone sales, Apple has been gaining ground in the computers market, growing its software-and-services segment and scoring wins in emerging categories like wearable hardware. With one of the strongest brands in the tech space and a proven penchant for design excellence, the company could also go on to be a big winner in categories like augmented reality, smart cars, and artificial-intelligence-powered personal assistants.
Apple's brand and ecosystem strengths are unmatched in the consumer hardware space, and the company will likely continue to be a technology leader for decades to come.
Visa has built one of the most profitable businesses in the world
Parkev Tatevosian: One of my favorite Warren Buffett stocks to buy right now is Visa. The financial processing company has spent decades building a network of merchants that accept its cards as a payment method. On the other side of the transaction, there are over 4 billion Visa cards in consumer wallets today. Arguably, the most challenging part of its business plan is behind it.
That can certainly be observed in Visa's financial figures. Revenue grew from $11.8 billion in 2013 to $29.3 billion in 2022. The company benefits from moderate inflation since Visa primarily generates revenue as a percentage of transaction value using a Visa card.
More importantly, Visa has built an extremely profitable business. Its operating income rose from $7.2 billion to $19.7 billion in the abovementioned years. For 2023, Visa earned an astounding 67.1% operating profit margin. That figure is among the highest of any companies in Buffett's Berkshire Hathaway portfolio. It's also the highest of any of the businesses I follow.
V PE Ratio (Forward 1y) data by YCharts
Fortunately, investors don't have to pay an arm and a leg for this incredible stock. Visa is trading at a forward price-to-earnings multiple of under 24.5. Paying a fair price for an excellent business is a reasonable recipe for investment success. I'm not surprised that one of the greatest investors of all time has Visa stock in his portfolio.
Apple and Visa are classic, Buffett-style stocks
When it comes to picking stocks, Warren Buffett famously prefers to keep it simple and avoid companies and situations that are overly complex. Within that mold, Apple and Visa are large, well-known companies that can be counted on to reliably generate significant profits. They might not be the most explosive stocks on the market, but they offer well-balanced risk-reward profiles, and it's not hard to see why Buffett's company has invested in them.
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 July 27, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan has no position in any of the stocks mentioned. Parkev Tatevosian, CFA has positions in Apple and Visa. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Total Return Level data by YCharts In addition to claiming more than 85% of global operating profits from smartphone sales, Apple has been gaining ground in the computers market, growing its software-and-services segment and scoring wins in emerging categories like wearable hardware. This is Buffett's favorite stock Keith Noonan: If you're looking to replicate Buffett's investing moves, it makes sense to own Apple (NASDAQ: AAPL) in your portfolio. Buffett loves companies with strong brands that are capable of serving up consistent profits, and Apple's world-beating business performance has made the stock a big winner for Berkshire Hathaway.
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This is Buffett's favorite stock Keith Noonan: If you're looking to replicate Buffett's investing moves, it makes sense to own Apple (NASDAQ: AAPL) in your portfolio. AAPL Total Return Level data by YCharts In addition to claiming more than 85% of global operating profits from smartphone sales, Apple has been gaining ground in the computers market, growing its software-and-services segment and scoring wins in emerging categories like wearable hardware. In a stunning vote of confidence, the Oracle of Omaha has made the tech stock Berkshire Hathaway's largest portfolio holding by far.
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This is Buffett's favorite stock Keith Noonan: If you're looking to replicate Buffett's investing moves, it makes sense to own Apple (NASDAQ: AAPL) in your portfolio. AAPL Total Return Level data by YCharts In addition to claiming more than 85% of global operating profits from smartphone sales, Apple has been gaining ground in the computers market, growing its software-and-services segment and scoring wins in emerging categories like wearable hardware. Buffett loves companies with strong brands that are capable of serving up consistent profits, and Apple's world-beating business performance has made the stock a big winner for Berkshire Hathaway.
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This is Buffett's favorite stock Keith Noonan: If you're looking to replicate Buffett's investing moves, it makes sense to own Apple (NASDAQ: AAPL) in your portfolio. AAPL Total Return Level data by YCharts In addition to claiming more than 85% of global operating profits from smartphone sales, Apple has been gaining ground in the computers market, growing its software-and-services segment and scoring wins in emerging categories like wearable hardware. For comparison, Bank of America is Berkshire's second-largest stock position and makes up 8.9% of its total portfolio.
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14458.0
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2023-08-04 00:00:00 UTC
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Did Apple and Amazon Report “Magnificent” Earnings?
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AAPL
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https://www.nasdaq.com/articles/did-apple-and-amazon-report-magnificent-earnings
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Last Friday, I spoke about the newly coined “Magnificent Seven” stocks: Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL), Apple Inc. (AAPL), Meta Platforms, Inc. (META), Microsoft Corporation (MSFT), NVIDIA Corporation (NVDA) and Tesla, Inc. (TSLA).
Four of the seven stocks reported earnings during the last two weeks of July, and all topped analysts’ earnings expectations.
This week, two more of the Magnificent Seven companies reported earnings: Apple and Amazon.
So, in today’s Market 360, let’s dive into their earnings reports – and take a look at their latest artificial intelligence (AI) comments.
The Numbers Are In…
Both Apple and Amazon posted their quarterly earnings reports after the closing bell yesterday.
Let’s start with Apple…
Apple posted better-than-expected earnings results for its third quarter. Earnings came in at $1.26 per share, which beat analysts’ estimates for $1.19 per share. This is up 5% year-over-year from earnings of $1.20 per share. Revenue of $81.8 billion also beat expectations of $81.69 billion, although it dropped 1% from $83 billion in the same quarter last year.
iPhone and iPad revenue both came in lower than analysts’ expectations and fell 2% and 20% year-over-year, respectively. The iPhone is Apple’s flagship product and accounts for the largest portion of the company’s revenue. Tim Cook, Apple’s CEO, said that times are “tough” right now for the smartphone industry in the U.S. However, the company did report that it had a high number of “switchers,” or people who switched to an iPhone from an Android device.
The bright spot in Apple’s report was its Services revenue. Services revenue, which includes subscriptions, streaming TV, warranties, advertising, and payment services, rose 8.2% year-over-year to $21.2 billion. This shows that the company is growing. Currently, the company has over 1 billion paid subscribers.
“That’s up 150 million year-over-year and nearly double what it was just three years ago,” Cook said.
During theearnings call Cook also had this to say about AI:
We view AI and [machine learning] ML as fundamental core technologies. And they are virtually embedded in every product that we build. And so if you think about WWDC in June, we announced some features that will be coming in iOS 17 this fall, like Personal Voice and Live Voicemail. Previously, we had announced lifesaving features like fall detection and crash detection and ECG. None of these features that I just mentioned and many, many more would be possible without AI and machine learning. And so it’s absolutely critical to us … And of course, we’ve been doing research across a wide range of AI technologies, including generative AI, for years.
Two weeks ago, Bloomberg announced that Apple is working on an internal ChatGPT-like AI chatbot, called Ajax. It is built on top of Google Jax, which is a framework developed by Google for machine learnings. While Ajax is accessible through a web application, it is still not yet available to customers.
Apple shares fell nearly 5% on Friday following the mixed results, though, as I write this, they are still up 40% year-to-date.
So, Apple’s earnings weren’t very “magnificent.”
Amazon’s results, on the other hand…
Amazon smashed analysts’ expectations for the second quarter. Earnings of $0.65 per share nearly doubled estimates for $0.35 per share. And revenue of $134.4 billion topped expectations for revenue of $131.5 billion.
This is Amazon’s biggest earnings beat since the fourth quarter of 2020.
This beat was helped in part by Amazon’s famous Prime Day, which was held this year from Tuesday, July 11, to Wednesday, July 12. Shoppers bought more than 375 million items worldwide over the two days of deals. This is up from the 300 million items sold last year. The top shopping categories were home goods, fashion and beauty, beating out electronics. Sales for Prime Day climbed 6.1% to $12.7 billion, and Amazon called the event its “biggest ever.”
Amazon Web Services (AWS) also proved profitable this quarter. Revenue from the company’s cloud unit increased 12% year-over-year to $22.1 billion, beating the $21.79 billion estimated by analysts. For the second quarter, AWS accounted for 70% of Amazon’s $7.7 billion in operating profit.
Also during the quarter, AWS introduced a cloud service called Bedrock. Bedrock offers developers access to foundational models of software that provides a way to build generative AI applications similar to ChatGPT. AWS said it is investing $100 million to start a Generative AI Innovation Center, which will pair customers with experts.
Andy Jassy, Amazon’s CEO, said during the company’searnings call
It was another strong quarter of progress for Amazon… AWS has continued to add to its meaningful leadership position in the cloud with a slew of generative AI releases that make it much easier and more cost-effective for companies to train and run models (Trainium and Inferentia chips), customize Large Language Models to build generative AI applications and agents (Bedrock), and write code much more efficiently with CodeWhisperer… We remain excited about what lies ahead for customers and the company.
Looking forward to the third quarter, Amazon anticipates sales between $138 billion and $143 billion, which would account for revenue growth between 9% and 13%. Analysts expect revenue of $138.25 billion.
AMZN shares surged more than 8% in the wake of its strong earnings report, and, as I write this, are up 66% this year.
How to Find Magnificent AI Stocks
Like the four Magnificent Seven stocks I wrote about last week, Apple and Amazon are both joining the AI revolution, either for internal company use or created for a customer base.
The reality is this AI revolution is going to play out fast… and create more wealth than any other previous technology in human history.
My fellow InvestorPlace colleagues Eric Fry and Luke Lango don’t want you to miss out on the huge potential upside while the AI revolution is still in the early innings. So, we created the AI Revolution Portfolio. Our AI Revolution Portfolio is made up of a handpicked list of 10 AI stocks found through my quantitative stock-rating system, Eric’s global macro investing expertise and Luke’s technology insights.
I should note that we added the tenth stock, which has a monopoly in its field, to our AI Revolution Portfolio yesterday. It’s still trading below our recommended buy limit, but we don’t expect it to stay down for long.
So now is the time to jump in and snap up shares so you don’t miss out on the company’s huge upside potential.
To become a member of the AI Revolution Portfolio – including all our recommendations and special reports – click here.
Sincerely,
Louis Navellier
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
NVIDIA Corporation (NVDA)
P.S. Last Thursday night, I sat down with my colleagues Eric Fry and Luke Lango to hold our first ever AI roundtable discussion called the AI Impact Event.
If you haven’t seen it yet, you can watch a replay here.
We discussed how a new development in AI is about to shake the entire stock market to its core, sending hundreds of stocks crashing in the process.
The three of us laid out the critical steps you need to make immediately to safeguard your money.
If you have any money in the markets, you should watch this now.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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The post Did Apple and Amazon Report “Magnificent” Earnings? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Last Friday, I spoke about the newly coined “Magnificent Seven” stocks: Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL), Apple Inc. (AAPL), Meta Platforms, Inc. (META), Microsoft Corporation (MSFT), NVIDIA Corporation (NVDA) and Tesla, Inc. (TSLA). Bedrock offers developers access to foundational models of software that provides a way to build generative AI applications similar to ChatGPT. Andy Jassy, Amazon’s CEO, said during the company’searnings call It was another strong quarter of progress for Amazon… AWS has continued to add to its meaningful leadership position in the cloud with a slew of generative AI releases that make it much easier and more cost-effective for companies to train and run models (Trainium and Inferentia chips), customize Large Language Models to build generative AI applications and agents (Bedrock), and write code much more efficiently with CodeWhisperer… We remain excited about what lies ahead for customers and the company.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Last Friday, I spoke about the newly coined “Magnificent Seven” stocks: Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL), Apple Inc. (AAPL), Meta Platforms, Inc. (META), Microsoft Corporation (MSFT), NVIDIA Corporation (NVDA) and Tesla, Inc. (TSLA). Sales for Prime Day climbed 6.1% to $12.7 billion, and Amazon called the event its “biggest ever.” Amazon Web Services (AWS) also proved profitable this quarter. My fellow InvestorPlace colleagues Eric Fry and Luke Lango don’t want you to miss out on the huge potential upside while the AI revolution is still in the early innings.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Last Friday, I spoke about the newly coined “Magnificent Seven” stocks: Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL), Apple Inc. (AAPL), Meta Platforms, Inc. (META), Microsoft Corporation (MSFT), NVIDIA Corporation (NVDA) and Tesla, Inc. (TSLA). Revenue of $81.8 billion also beat expectations of $81.69 billion, although it dropped 1% from $83 billion in the same quarter last year. Andy Jassy, Amazon’s CEO, said during the company’searnings call It was another strong quarter of progress for Amazon… AWS has continued to add to its meaningful leadership position in the cloud with a slew of generative AI releases that make it much easier and more cost-effective for companies to train and run models (Trainium and Inferentia chips), customize Large Language Models to build generative AI applications and agents (Bedrock), and write code much more efficiently with CodeWhisperer… We remain excited about what lies ahead for customers and the company.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Last Friday, I spoke about the newly coined “Magnificent Seven” stocks: Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL), Apple Inc. (AAPL), Meta Platforms, Inc. (META), Microsoft Corporation (MSFT), NVIDIA Corporation (NVDA) and Tesla, Inc. (TSLA). Four of the seven stocks reported earnings during the last two weeks of July, and all topped analysts’ earnings expectations. This week, two more of the Magnificent Seven companies reported earnings: Apple and Amazon.
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14459.0
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2023-08-04 00:00:00 UTC
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Technology Sector Update for 08/04/2023: USM, TDS, AMZN, AAPL, AAOI
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-08-04-2023%3A-usm-tds-amzn-aapl-aaoi
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nan
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nan
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Tech stocks were lower late Friday, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.3% and the Philadelphia Semiconductor index down 0.5%.
In company news, United States Cellular (USM) shares soared 93% after it and Telephone and Data Systems (TDS) said they have each decided to launch a process to explore strategic alternatives for United States Cellular. Telephone and Data Systems owned 83% of wireless carrier at the end of Q2.
Amazon.com (AMZN) shares rose 9% after it swung to a bigger-than-expected Q2 profit, supported by stabilizing growth rates in its cloud computing business.
Apple (AAPL) was shedding 4.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year.
Applied Optoelectronics (AAOI) shares jumped 67% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral.
The views and 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) was shedding 4.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year. Tech stocks were lower late Friday, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.3% and the Philadelphia Semiconductor index down 0.5%. Applied Optoelectronics (AAOI) shares jumped 67% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral.
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Apple (AAPL) was shedding 4.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year. In company news, United States Cellular (USM) shares soared 93% after it and Telephone and Data Systems (TDS) said they have each decided to launch a process to explore strategic alternatives for United States Cellular. Telephone and Data Systems owned 83% of wireless carrier at the end of Q2.
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Apple (AAPL) was shedding 4.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year. In company news, United States Cellular (USM) shares soared 93% after it and Telephone and Data Systems (TDS) said they have each decided to launch a process to explore strategic alternatives for United States Cellular. Applied Optoelectronics (AAOI) shares jumped 67% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral.
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Apple (AAPL) was shedding 4.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year. Tech stocks were lower late Friday, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.3% and the Philadelphia Semiconductor index down 0.5%. In company news, United States Cellular (USM) shares soared 93% after it and Telephone and Data Systems (TDS) said they have each decided to launch a process to explore strategic alternatives for United States Cellular.
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14460.0
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2023-08-04 00:00:00 UTC
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US STOCKS-Wall Street closes lower after US jobs report, Apple weighs
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-lower-after-us-jobs-report-apple-weighs
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nan
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nan
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By Echo Wang
Aug 4 (Reuters) - Wall Street fell on Friday after a report of slowing U.S. labor market growth, and all three major indexes posted weekly losses as investors braced for more possible downside surprises a day after disappointing earnings from Apple.
The trading session was choppy, with the indexes rising in the morning, then wavering before turning negative. Apple shares were down more than 4%, weighing down the S&P 500.
On the bond market, the yield on the 10-year U.S. Treasury edged lower in afternoon trading.
"There's still a lot of uncertainty around geopolitical concerns, Ukraine war, (and) China issues”, said Greg Bassuk, chief executive officer of AXS Investments in New York, He said Friday's decline was "more about investors resetting and positioning for potential downside surprises."
The Labor Department reported that U.S. employers added 187,000 jobs in July. Data for June additions was revised lower to 185,000 jobs, from 209,000 reported previously.
Average hourly earnings rose 0.4% in July, unchanged from the previous month, exceeding expectations, taking the year-on-year increase in wages to 4.4%.
The yield on the 10-year benchmark Treasury note US10YT=RR dipped after the jobs data, partly boosting some megacap stocks.
Buoying the S&P 500 index, Amazon.com shares AMZN.O rose after the company issued an upbeat third-quarter outlook. Apple's shares AAPL.Odipped as the iPhone maker forecast a continued slide in sales.
"Those big bellwether companies really have the potential to cause investor jitters even though overall the trajectory and direction of both the economy and corporate earnings seems to be positive moving into August." Said Bassuk.
Shares of other big tech companies, Microsoft MSFT.O, Alphabet GOOGL.O and Snowflake SNOW.N all rose after Amazon's cloud business segment beat sales estimates.
According to preliminary data, the S&P 500 .SPX lost 23.28 points, or 0.52%, to end at 4,478.61 points, while the Nasdaq Composite .IXIC lost 50.48 points, or 0.36%, to 13,909.24. The Dow Jones Industrial Average .DJI fell 148.69 points, or 0.42%, to 35,073.53.
The weekly declines for the S&P and Nasdaq were the biggest since March, with some investors taking profits after five months of gains due to economic data, disappointing earnings and rising Treasury yields.
Of the 422 companies in the S&P 500 that have reported quarterly earnings as of Friday, 79.1% have surpassed autonomous expectations, according to Refinitiv data.
Monthly change in U.S. jobs https://tmsnrt.rs/3OFX0Zi
(Reporting by Echo Wang in New York, Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta, Shinjini Ganguli, Louise Heavens and David Gregorio)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's shares AAPL.Odipped as the iPhone maker forecast a continued slide in sales. By Echo Wang Aug 4 (Reuters) - Wall Street fell on Friday after a report of slowing U.S. labor market growth, and all three major indexes posted weekly losses as investors braced for more possible downside surprises a day after disappointing earnings from Apple. "There's still a lot of uncertainty around geopolitical concerns, Ukraine war, (and) China issues”, said Greg Bassuk, chief executive officer of AXS Investments in New York, He said Friday's decline was "more about investors resetting and positioning for potential downside surprises."
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Apple's shares AAPL.Odipped as the iPhone maker forecast a continued slide in sales. "There's still a lot of uncertainty around geopolitical concerns, Ukraine war, (and) China issues”, said Greg Bassuk, chief executive officer of AXS Investments in New York, He said Friday's decline was "more about investors resetting and positioning for potential downside surprises." Average hourly earnings rose 0.4% in July, unchanged from the previous month, exceeding expectations, taking the year-on-year increase in wages to 4.4%.
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Apple's shares AAPL.Odipped as the iPhone maker forecast a continued slide in sales. By Echo Wang Aug 4 (Reuters) - Wall Street fell on Friday after a report of slowing U.S. labor market growth, and all three major indexes posted weekly losses as investors braced for more possible downside surprises a day after disappointing earnings from Apple. The weekly declines for the S&P and Nasdaq were the biggest since March, with some investors taking profits after five months of gains due to economic data, disappointing earnings and rising Treasury yields.
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Apple's shares AAPL.Odipped as the iPhone maker forecast a continued slide in sales. On the bond market, the yield on the 10-year U.S. Treasury edged lower in afternoon trading. "There's still a lot of uncertainty around geopolitical concerns, Ukraine war, (and) China issues”, said Greg Bassuk, chief executive officer of AXS Investments in New York, He said Friday's decline was "more about investors resetting and positioning for potential downside surprises."
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14461.0
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2023-08-04 00:00:00 UTC
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Long-Term Tech Stock Deals to Buy Now
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AAPL
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https://www.nasdaq.com/articles/long-term-tech-stock-deals-to-buy-now
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nan
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nan
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Today’s episode of Full Court Finance at Zacks dive into where the stock market sits as big tech results continue to flood the market. Amid all of the recent reports from Apple, Amazon, and others, let’s explore two highly-ranked technology stocks trading at attractive valuations that offer investors long-term growth opportunities.
The Nasdaq and the S&P 500 posted big declines in the middle of the week as Wall Street digested the Fitch downgrade of U.S. government debt and a ton of other news. Meanwhile, 10-year U.S. Treasury yields have rebounded as investors price in the likelihood of higher rates for longer as the Fed attempts to bring inflation down to its 2% target amid a persistently strong economy.
The July jobs report that dropped Friday morning showed the U.S. added 187K jobs last month vs. the 200K estimate and June’s 209K. Unemployment also slipped back down to 3.5%. Beyond of the jobs market, Wall Street is engrossed with earnings and reports from Apple and other market movers.
Image Source: Zacks Investment Research
The S&P 500 and the Nasdaq slipped below their 21-day moving averages earlier this week. Despite the possibility of more near-term volatility and selling throughout earnings season, the bulls are attempting to remain firmly in control—trying to hold that 21-day line.
Jabil (JBL)
Jabil is a tech-focused manufacturing services giant that works with the likes of Apple (AAPL) and other leaders across consumer tech, health care, energy and beyond. The company’s global scope and highly diversified customer base helped JBL grow steadily over the years. Jabil posted 12% average revenue expansion between FY18 and FY22, including 14% sales growth in its fiscal 2022.
Image Source: Zacks Investment Research
The manufacturing solutions provider topped our Q3 FY23 estimates in mid-June and provided upbeat guidance that helps it land a Zacks Rank #2 (Buy) right now. JBL’s recent positivity is part of long-term upward earnings momentum for the stock. Zacks estimates call for JBL’s revenue to climb again in FY23 and FY24 to help boost its adjusted earnings by 11% and 9%, respectively.
Jabil is part of Zacks Electronics - Manufacturing Services industry that ranks in the top 2% of over 250 Zacks industries. JBL’s 4% dividend payout ratio (0.3% yield) offers huge long-term upside, and five out of the six brokerage recommendations Zacks has are “Strong Buys.” On top of that, Jabil is poised to grow alongside the wider world of intricate and complex manufacturing for tech and beyond. Plus, JBL could be a long-term winner amid the onshoring/reshoring push in the U.S.
Image Source: Zacks Investment Research
Shares of JBL have climbed 360% during the last 10 years vs. the Zacks tech sector’s 260%, including a 285% run in the past five years. Jabil is up 60% YTD and trades around 5% below its recent records and solidly above its 50-day moving average. Despite its recent and long-term outperformance, Jabil trades at a 50% discount to the Zacks Tech sector at 12.7X forward 12-month earnings and 31% below its own decade-long highs.
Netflix (NFLX)
Netflix shares skyrocketed 160% off their 2022 lows as investors decided it was time to buy into the beaten-down tech giant as it started to act and trade more like an established industry leader and not a rapid expansion engine. Despite the comeback and its 45% YTD climb, NFLX still trades over 35% below its peaks. And it recently found support at its 50-day moving average.
Image Source: Zacks Investment Research
On the valuation front, Netflix trades at a 60% discount to its 10-year median at 30.7X forward earnings—and nearly 95% below its highs. Netflix is now trading at levels it was at in 2010 and more closely in line with the wider Zacks Tech sector. In fact, Netflix is trading at a PEG ratio, which factors in its growth outlook, of 1.2 vs. Tech’s 2.0 and at a 36% discount to its own five-year median.
Netflix was the streaming TV pioneer that helped permanently change the way people consume TV and movies. NFLX’s head start and growing content library has seen it maintain an edge over Disney, Apple, Amazon, and countless other streamers. NFLX beat our Q2 earnings and sales estimate on July 19 on the back of a nice user gain that saw it hit 238 million paid memberships, up 8% from the year-ago period.
Image Source: Zacks Investment Research
The natural slowdown in Netflix’s growth propelled it to roll out a lower-cost ad-based tier, set up paid sharing features, and explore new growth areas. NFLX’s recent upward EPS revisions help it land a Zacks Rank #1 (Strong Buy), with it projected to post 20% adjusted earnings growth in FY23 and 32% stronger earnings next year on 7% and 13% higher sales, respectively.
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
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Jabil, Inc. (JBL) : 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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Jabil (JBL) Jabil is a tech-focused manufacturing services giant that works with the likes of Apple (AAPL) and other leaders across consumer tech, health care, energy and beyond. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report To read this article on Zacks.com click here. Amid all of the recent reports from Apple, Amazon, and others, let’s explore two highly-ranked technology stocks trading at attractive valuations that offer investors long-term growth opportunities.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report To read this article on Zacks.com click here. Jabil (JBL) Jabil is a tech-focused manufacturing services giant that works with the likes of Apple (AAPL) and other leaders across consumer tech, health care, energy and beyond. Image Source: Zacks Investment Research The manufacturing solutions provider topped our Q3 FY23 estimates in mid-June and provided upbeat guidance that helps it land a Zacks Rank #2 (Buy) right now.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report To read this article on Zacks.com click here. Jabil (JBL) Jabil is a tech-focused manufacturing services giant that works with the likes of Apple (AAPL) and other leaders across consumer tech, health care, energy and beyond. Image Source: Zacks Investment Research Shares of JBL have climbed 360% during the last 10 years vs. the Zacks tech sector’s 260%, including a 285% run in the past five years.
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Jabil (JBL) Jabil is a tech-focused manufacturing services giant that works with the likes of Apple (AAPL) and other leaders across consumer tech, health care, energy and beyond. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report To read this article on Zacks.com click here. Amid all of the recent reports from Apple, Amazon, and others, let’s explore two highly-ranked technology stocks trading at attractive valuations that offer investors long-term growth opportunities.
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14462.0
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2023-08-04 00:00:00 UTC
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After Hours Most Active for Aug 4, 2023 : AAPL, NKLA, PDCE, T, QQQ, AMZN, HPE, ENB, TLT, ELAN, VZ, BAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-4-2023-%3A-aapl-nkla-pdce-t-qqq-amzn-hpe-enb-tlt-elan-vz-bac
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 3.46 to 15,278.38. The total After hours volume is currently 63,084,453 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is +0.03 at $182.02, with 4,689,326 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Nikola Corporation (NKLA) is unchanged at $2.50, with 2,780,674 shares traded. Smarter Analyst Reports: Inside Nikola’s Newly Added Risk Factors
PDC Energy, Inc. (PDCE) is +0.35 at $74.20, with 2,287,806 shares traded. PDCE's current last sale is 97.63% of the target price of $76.
AT&T Inc. (T) is +0.03 at $14.03, with 1,942,298 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 70.15% of the target price of $20.
Invesco QQQ Trust, Series 1 (QQQ) is +0.25 at $372.29, with 1,842,428 shares traded. This represents a 46.42% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is -0.01 at $139.56, with 1,738,839 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Hewlett Packard Enterprise Company (HPE) is unchanged at $17.37, with 1,690,857 shares traded. HPE's current last sale is 99.26% of the target price of $17.5.
Enbridge Inc (ENB) is +0.14 at $36.08, with 1,637,796 shares traded. ENB's current last sale is 83.25% of the target price of $43.34.
iShares 20+ Year Treasury Bond ETF (TLT) is +0.09 at $96.62, with 1,509,570 shares traded. This represents a 5.19% increase from its 52 Week Low.
Elanco Animal Health Incorporated (ELAN) is +0.005 at $11.65, with 1,243,445 shares traded.ELAN is scheduled to provide an earnings report on 8/7/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 0.05 per share, which represents a 36 percent increase over the EPS one Year Ago
Verizon Communications Inc. (VZ) is -0.01 at $32.61, with 1,081,800 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 $1.16. VZ's current last sale is 79.54% of the target price of $41.
Bank of America Corporation (BAC) is +0.0101 at $31.31, with 1,066,534 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 89.46% of the target price of $35.
The views and 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 $182.02, with 4,689,326 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Inside Nikola’s Newly Added Risk Factors
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Apple Inc. (AAPL) is +0.03 at $182.02, with 4,689,326 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 Dec 2023.
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Apple Inc. (AAPL) is +0.03 at $182.02, with 4,689,326 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 63,084,453 shares traded.
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Apple Inc. (AAPL) is +0.03 at $182.02, with 4,689,326 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is +0.03 at $14.03, with 1,942,298 shares traded.
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14463.0
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2023-08-04 00:00:00 UTC
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US STOCKS-Wall St rises on Amazon boost, US jobs growth remains moderate
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-amazon-boost-us-jobs-growth-remains-moderate
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nan
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nan
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By Shubham Batra and Bansari Mayur Kamdar
Aug 4 (Reuters) - Wall Street rose on Friday after data showed the U.S. economy added fewer-than-expected jobs in July, while Amazon's better-than-expected earnings countered Apple's tepid sales forecast.
Nonfarm payrolls increased by 187,000 jobs last month, Labor Department data showed. Data for June was revised lower to 185,000 jobs added instead of the previously reported 209,000.
Average hourly earnings grew 0.4% in July, unchanged from the previous month but a tad higher than expectations, spurring worries of more interest rate hikes before the end of 2023. That kept the year-on-year increase in wages at 4.4%.
"Below consensus job growth, combined with higher average hourly earnings signals that more progress is needed to reduce the jobs-workers gap, slow wage growth and ultimately lower inflation," said Candice Tse, global head of strategic advisory solutions at Goldman Sachs.
"The Fed has likely ended its most aggressive tightening campaign in generations, with a reasonable path to a soft landing."
Meanwhile, Amazon.com shares AMZN.O surged 9.4% after the company issued an upbeat outlook for the third quarter. Apple's shares AAPL.O shed 2.7% as the iPhone maker forecast a continued slide in sales.
Shares of peers Microsoft MSFT.O, Alphabet GOOGL.O and Snowflake SNOW.N rose between 2.1% and 5.4% after Amazon's cloud business segment beat sales estimates.
A Labor Department report on Thursday showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July.
The yield on the 10-year benchmark note US10YT=RR dipped on Friday after the latest jobs data but hovered near the nine-month high it hit, partly due to Fitch downgrading the United States from a AAA rating to AA+ earlier this week.
At 09:36 a.m. ET, the Dow Jones Industrial Average .DJI was up 122.46 points, or 0.35%, at 35,338.35, the S&P 500 .SPX was up 25.53 points, or 0.57%, at 4,527.42, and the Nasdaq Composite .IXIC was up 129.63 points, or 0.93%, at 14,089.34.
Stocks closed marginally lower on Thursday weighed down by the last batch of economic data and disappointing earnings.
Of the 392 companies in the S&P 500 that have reported quarterly earnings as of Thursday, 79.3% have beat analysts' estimates, according to Refinitiv data.
Shares of Tupperware TUP.N, known for its plastic airtight storage containers and bowls, rallied 43.8% on Friday after it finalized an agreement with its lenders to restructure its debt obligations in an effort to turn around its business.
Amgen AMGN.O gained 3.8% after it reported a higher quarterly profit on strong sales of its cholesterol, osteoporosis and other drugs.
Sports-betting firm DraftKings' DKNG.O shares surged 12.7% after it raised its fiscal year 2023 revenue outlook.
Meanwhile, two measures of corporate and economic health were flashing red as shipping group Maersk reported a fall in global demand for sea containers and advertising giant WPP said clients in the U.S. tech sector were slashing their marketing spend.
Advancing issues outnumbered decliners for a 2.19-to-1 ratio on the NYSE and a 1.73-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and three new lows, while the Nasdaq recorded 23 new highs and 19 new lows.
Monthly change in U.S. jobs https://tmsnrt.rs/3OFX0Zi
(Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's shares AAPL.O shed 2.7% as the iPhone maker forecast a continued slide in sales. By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - Wall Street rose on Friday after data showed the U.S. economy added fewer-than-expected jobs in July, while Amazon's better-than-expected earnings countered Apple's tepid sales forecast. The yield on the 10-year benchmark note US10YT=RR dipped on Friday after the latest jobs data but hovered near the nine-month high it hit, partly due to Fitch downgrading the United States from a AAA rating to AA+ earlier this week.
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Apple's shares AAPL.O shed 2.7% as the iPhone maker forecast a continued slide in sales. By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - Wall Street rose on Friday after data showed the U.S. economy added fewer-than-expected jobs in July, while Amazon's better-than-expected earnings countered Apple's tepid sales forecast. Nonfarm payrolls increased by 187,000 jobs last month, Labor Department data showed.
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Apple's shares AAPL.O shed 2.7% as the iPhone maker forecast a continued slide in sales. By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - Wall Street rose on Friday after data showed the U.S. economy added fewer-than-expected jobs in July, while Amazon's better-than-expected earnings countered Apple's tepid sales forecast. "Below consensus job growth, combined with higher average hourly earnings signals that more progress is needed to reduce the jobs-workers gap, slow wage growth and ultimately lower inflation," said Candice Tse, global head of strategic advisory solutions at Goldman Sachs.
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Apple's shares AAPL.O shed 2.7% as the iPhone maker forecast a continued slide in sales. By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - Wall Street rose on Friday after data showed the U.S. economy added fewer-than-expected jobs in July, while Amazon's better-than-expected earnings countered Apple's tepid sales forecast. Meanwhile, Amazon.com shares AMZN.O surged 9.4% after the company issued an upbeat outlook for the third quarter.
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14464.0
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2023-08-04 00:00:00 UTC
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US STOCKS-Wall Street ends lower after US jobs report; Apple weighs
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-lower-after-us-jobs-report-apple-weighs
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nan
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nan
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By Echo Wang
Aug 4 (Reuters) - Wall Street closed lower on Friday after a report of slowing U.S. labor market growth, and all three major indexes posted weekly losses as investors braced for more possible downside surprises a day after disappointing earnings from Apple.
Apple's shares AAPL.Ofell4.8%, its biggest daily percentage decline since Sept. 29, 2022 that dented the S&P 500 by about 16 points the day after the iPhone maker forecast a continued slide in sales.
A partial counterweight to Apple for the S&P 500 and Nasdaq was Amazon.com. Its shares AMZN.O rose 8.3% the day after the online retailer issued an upbeat third-quarter outlook. Amazon's rise were an 11-point positive for the S&P 500.
"Those big bellwether companies really have the potential to cause investor jitters even though overall the trajectory and direction of both the economy and corporate earnings seems to be positive moving into August." Said Greg Bassuk, chief executive officer of AXS Investments in New York.
The trading session was choppy, with the indexes rising in the morning, then wavering before turning negative.
On the bond market, the yield on the 10-year U.S. Treasury edged lower in afternoon trading.
"There's still a lot of uncertainty around geopolitical concerns, Ukraine war, (and) China issues”, said Bassuk. He said Friday's decline was "more about investors resetting and positioning for potential downside surprises."
The Labor Department reported that U.S. employers added 187,000 jobs in July. Data for June additions was revised lower to 185,000 jobs, from 209,000 reported previously.
Average hourly earnings rose 0.4% in July, unchanged from the previous month, exceeding expectations, taking the year-on-year increase in wages to 4.4%.
The yield on the 10-year benchmark Treasury note US10YT=RR dipped after the jobs data, partly boosting some megacap stocks.
Shares of other big tech companies, Microsoft MSFT.O and Snowflake SNOW.Nrose 0.3% and 3.5% respectively after Amazon's cloud business segment beat sales estimates.
The Dow Jones Industrial Average .DJI fell 150.27 points, or 0.43%, to 35,065.62, the S&P 500 .SPX lost 23.86 points, or 0.53%, to 4,478.03 and the Nasdaq Composite .IXIC dropped 45.18 points, or 0.32%, to 13,914.54.
The weekly percentage declines for the S&P and Nasdaq were the biggest since March, with some investors taking profits after five months of gains due to economic data, disappointing earnings and rising Treasury yields.
Of the 422 companies in the S&P 500 that have reported quarterly earnings as of Friday, 79.1% have surpassed autonomous expectations, according to Refinitiv data.
Carl Icahn-owned investment firm Icahn EnterprisesIEP.O shed 23.3%. The company halved its quarterly payout, months after short-seller Hindenburg Research accused it of operating a "Ponzi-like" structure to pay dividends.
Fortinet FTNT.Otumbled 25.1% after the cybersecurity firm cut its annual revenue forecast as spending from enterprise clients remained tight amid a turbulent economy.
Shares of Tupperware TUP.N, known for its plastic airtight storage containers and bowls, rallied 35.5% after the company finalized an agreement with its lenders to restructure its debt obligations in an effort to turn around the business.
Amgen AMGN.O added 5.5% after it reported a higher quarterly profit on strong sales of its cholesterol, osteoporosis and other drugs.
DraftKings' DKNG.O shares rose 5.8% after the sports-betting firm raised its fiscal year 2023 revenue outlook.
Volume on U.S. exchanges was 11.39 billion shares, compared with the 10.87 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 1.22-to-1 ratio; on Nasdaq, a 1.14-to-1 ratio favored decliners.
The S&P 500 posted 19 new 52-week highs and 11 new lows; the Nasdaq Composite recorded 54 new highs and 91 new lows.
Monthly change in U.S. jobs https://tmsnrt.rs/3OFX0Zi
(Reporting by Echo Wang in New York, Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta, Shinjini Ganguli, Louise Heavens and David Gregorio)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's shares AAPL.Ofell4.8%, its biggest daily percentage decline since Sept. 29, 2022 that dented the S&P 500 by about 16 points the day after the iPhone maker forecast a continued slide in sales. By Echo Wang Aug 4 (Reuters) - Wall Street closed lower on Friday after a report of slowing U.S. labor market growth, and all three major indexes posted weekly losses as investors braced for more possible downside surprises a day after disappointing earnings from Apple. The weekly percentage declines for the S&P and Nasdaq were the biggest since March, with some investors taking profits after five months of gains due to economic data, disappointing earnings and rising Treasury yields.
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Apple's shares AAPL.Ofell4.8%, its biggest daily percentage decline since Sept. 29, 2022 that dented the S&P 500 by about 16 points the day after the iPhone maker forecast a continued slide in sales. By Echo Wang Aug 4 (Reuters) - Wall Street closed lower on Friday after a report of slowing U.S. labor market growth, and all three major indexes posted weekly losses as investors braced for more possible downside surprises a day after disappointing earnings from Apple. Average hourly earnings rose 0.4% in July, unchanged from the previous month, exceeding expectations, taking the year-on-year increase in wages to 4.4%.
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Apple's shares AAPL.Ofell4.8%, its biggest daily percentage decline since Sept. 29, 2022 that dented the S&P 500 by about 16 points the day after the iPhone maker forecast a continued slide in sales. By Echo Wang Aug 4 (Reuters) - Wall Street closed lower on Friday after a report of slowing U.S. labor market growth, and all three major indexes posted weekly losses as investors braced for more possible downside surprises a day after disappointing earnings from Apple. The weekly percentage declines for the S&P and Nasdaq were the biggest since March, with some investors taking profits after five months of gains due to economic data, disappointing earnings and rising Treasury yields.
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Apple's shares AAPL.Ofell4.8%, its biggest daily percentage decline since Sept. 29, 2022 that dented the S&P 500 by about 16 points the day after the iPhone maker forecast a continued slide in sales. The weekly percentage declines for the S&P and Nasdaq were the biggest since March, with some investors taking profits after five months of gains due to economic data, disappointing earnings and rising Treasury yields. Of the 422 companies in the S&P 500 that have reported quarterly earnings as of Friday, 79.1% have surpassed autonomous expectations, according to Refinitiv data.
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14465.0
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2023-08-04 00:00:00 UTC
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Stocks Dragged Lower by Losses in Apple
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AAPL
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https://www.nasdaq.com/articles/stocks-dragged-lower-by-losses-in-apple
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) Friday closed down -0.53%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.43%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.51%.
Stocks on Friday gave up an early advance and closed moderately lower, with the S&P 500 and Nasdaq 100 falling to 3-week lows and the Dow Jones Industrials falling to a 2-week low. Accelerating losses in Apple, which opened down more than -2% and extended its losses to more than -4%, weighed on the overall market after it delivered a lackluster outlook for its fourth quarter.
Stocks on Friday initially moved higher after a smaller-than-expected increase in U.S. Jul nonfarm payrolls knocked T-note yields lower. Stocks then extended their gains mid-morning as T-note yields fell even further on dovish comments from Atlanta Fed President Bostic, who said there is no need to raise interest rates further to ease inflation.
U.S. Jul nonfarm payrolls rose +187,000, below expectations of +200,000. However, the Jul unemployment rate unexpectedly fell -0.1 to 3.5%, showing a stronger labor market than expectations of 3.6%.
U.S. Jul average hourly earnings rose +0.4% m/m and +4.4% y/y, stronger than expectations of +0.3% m/m and +4.2% y/y, which was hawkish for Fed policy.
Fed comments today were dovish for Fed policy and bullish for stocks. Atlanta Fed President Bostic said U.S. employment gains are slowing in an orderly manner, and there is no need to raise interest rates further to ease inflation. Also, Chicago Fed President Goolsbee said we've been getting promising numbers on inflation, and the Fed should start thinking about how long to hold interest rates in restrictive territory.
The markets are discounting the odds at 12% for a +25 bp rate hike at the September 20 FOMC meeting, falling from 17% on Thursday.
Global bond yields on Friday moved lower. The 10-year T-note yield fell back from an 8-3/4 month high of 4.204% and finished down -11.9 bp at 4.056%. The 10-year German bund yield fell from a 3-week high of 2.651% and finished down -4.3 bp at 2.562%. The 10-year UK gilt yield fell back from a 2-1/2 week high of 4.499% and finished down -9.1 bp at 4.383%.
Overseas stock markets Friday settled higher. The Euro Stoxx 50 closed up +0.66%. China’s Shanghai Composite Index today closed up +0.23%. Japan’s Nikkei Stock Index closed up +0.10%.
Today’s stock movers…
Cybersecurity stocks sold off Friday after Fortinet reported Q2 billings of $1.54 billion, below the consensus of $1.59 billion, and cut its full-year billings forecast to $6.49 billion-$6.59 billion from a previous estimate of $6.75 billion-$6.81 billion, well below the consensus of $6.79 billion. As a result, Fortinet (FTNT) closed down more than -25% to lead losers in the S&P 500 and Nasdaq 100. Also, Palo Alto Networks (PANW) closed down more than -8%, Crowdstrike Holdings (CRWD) closed down more than -4%, and Zscaler (ZS) closed down more than -3%.
ResMed (RMD) closed down more than -18% after reporting Q4 adjusted EPS of $1.60, weaker than the consensus of $1.70.
Extra Space Storage (EXR) closed down more than -9% after reporting Q2 core FFO/share at $2.06, below the consensus of $2.14, and forecast full-year core FFO/share of $8.15-$8.35, weaker than the consensus of $8.48.
Microchip Technology (MCHP) closed down more than -7% after forecasting Q2 net sales of $2.22 billion-$2.31 billion, the midpoint below the consensus of $2.28 billion.
Apple (AAPL) closed down more than -4% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion, and said Q4 year-over-year performance to be similar to Q3.
Ventas (VTR) closed down more than -6% after forecasting full-year normalized FFO/share of $2.92 to $3.00, the midpoint below the consensus of $3.00.
Redfin (RDFN) closed down more than -25% after reporting a Q2 Ebitda loss of -$6.93 million, a larger loss than the consensus of -$3.23 million, and forecast Q3 adjusted Ebitda of $4 million-$14 million, weaker than the consensus of $21.8 million.
Monster Beverage (MNST) closed down more than -4% after reporting Q2 net sales of $1.85 billion, weaker than the consensus of $1.87 billion.
CSX Corp (CSX) closed down more than -4% after announcing that Jamie Boychuk, executive vice president of operations, is leaving the company, and a search for a successor is ongoing.
Amazon.com (AMZN) closed up more than +8% after reporting Q2 net sales of $134.38 billion, stronger than the consensus of $131.63 billion, and forecasting Q3 net sales of $128 billion-$143 billion, above the consensus of $138.3 billion.
Atlassian (TEAM) closed up more than +17% to lead gainers in the Nasdaq 100 after reporting Q4 revenue of $939.1 million, better than the consensus of $915.7 million, and forecast Q1 revenue of $950 million-$970 million, above the consensus of $955.7 million.
Booking Holdings (BKNG) closed up more than +7% after reporting Q2 revenue of $5.46 billion, stronger than the consensus of $5.17 billion. That prompted CFRA to upgrade the stock to buy from hold.
Gen Digital (GEN) closed up more than +7% after reporting Q1 adjusted EPS of 47 cents, better than the consensus of 46 cents.
DaVita (DVA) closed up more than +7% after reporting Q2 operating income of $405.3 million, stronger than the consensus of $381 million, and raising its full-year free cash flow estimate to $850 million-$1.10 billion from a prior view of $750 million-$1.0 billion, better than the consensus of $899.5 million.
Amgen (AMGN) closed up more than +5% to lead gainers in the Dow Jones Industrials after forecasting Q2 adjusted EPS of $5.00, well above the consensus of $4.48, and raising its full-year adjusted EPS estimate to $17.80-$18.80 from a previous estimate of $17.60-$18.70.
Gilead Sciences (GILD) closed up more than +4% after reporting Q2 revenue of $6.60 billion, above the consensus of $6.44 billion, and raised its forecast for full-year product sales to $26.3 billion-$26.7 billion from a previous estimate of $26.0 billion-$26.5 billion.
Cboe Global Markets (CBOE) closed up more than +3% after reporting Q2 adjusted Ebitda of $293.3 million, better than the consensus of $289.1 million.
Stryker (SYK) closed up more than +2% after reporting Q2 net sales of $5.00 billion, better than the consensus of $4.82 billion.
Across the markets…
September 10-year T-notes (ZNU23) Friday closed up +29 ticks, and the 10-year T-note yield fell -11.9 bp to 4.056%. Sep T-notes Friday recovered from an 8-3/4 month low and moved higher, and the 10-year T-note yield fell back from an 8-3/4 month high of 4.204% and moved lower. T-notes rallied Friday after U.S. Jul nonfarm payrolls rose less than expected. Gains accelerated after Atlanta Fed President Bostic said U.S. employment gains are slowing in an orderly manner, and there is no need to raise interest rates further to ease inflation. An afternoon slide in stocks Friday also gave T-notes a boost. On the negative side, the U.S. Jul unemployment rate unexpectedly declined, and Jul average hourly earnings rose more than expected.
More Stock Market News from Barchart
Dollar Tumbles on Lower Bond Yields and Dovish Fed CommentsCrude Prices Settle Higher on Tight Global SuppliesNat-Gas Prices Slightly Higher on a Mixed U.S. Weather OutlookThe 2 Best AI Stocks to Buy in August
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) closed down more than -4% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion, and said Q4 year-over-year performance to be similar to Q3. Stocks on Friday initially moved higher after a smaller-than-expected increase in U.S. Jul nonfarm payrolls knocked T-note yields lower. Stocks then extended their gains mid-morning as T-note yields fell even further on dovish comments from Atlanta Fed President Bostic, who said there is no need to raise interest rates further to ease inflation.
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Apple (AAPL) closed down more than -4% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion, and said Q4 year-over-year performance to be similar to Q3. Today’s stock movers… Cybersecurity stocks sold off Friday after Fortinet reported Q2 billings of $1.54 billion, below the consensus of $1.59 billion, and cut its full-year billings forecast to $6.49 billion-$6.59 billion from a previous estimate of $6.75 billion-$6.81 billion, well below the consensus of $6.79 billion. Redfin (RDFN) closed down more than -25% after reporting a Q2 Ebitda loss of -$6.93 million, a larger loss than the consensus of -$3.23 million, and forecast Q3 adjusted Ebitda of $4 million-$14 million, weaker than the consensus of $21.8 million.
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Apple (AAPL) closed down more than -4% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion, and said Q4 year-over-year performance to be similar to Q3. Today’s stock movers… Cybersecurity stocks sold off Friday after Fortinet reported Q2 billings of $1.54 billion, below the consensus of $1.59 billion, and cut its full-year billings forecast to $6.49 billion-$6.59 billion from a previous estimate of $6.75 billion-$6.81 billion, well below the consensus of $6.79 billion. Amazon.com (AMZN) closed up more than +8% after reporting Q2 net sales of $134.38 billion, stronger than the consensus of $131.63 billion, and forecasting Q3 net sales of $128 billion-$143 billion, above the consensus of $138.3 billion.
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Apple (AAPL) closed down more than -4% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion, and said Q4 year-over-year performance to be similar to Q3. Across the markets… September 10-year T-notes (ZNU23) Friday closed up +29 ticks, and the 10-year T-note yield fell -11.9 bp to 4.056%. Sep T-notes Friday recovered from an 8-3/4 month low and moved higher, and the 10-year T-note yield fell back from an 8-3/4 month high of 4.204% and moved lower.
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14466.0
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2023-08-04 00:00:00 UTC
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SPYI ETF: JEPI Fans Take Note. There’s a New High-Yield Competitor in Town
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AAPL
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https://www.nasdaq.com/articles/spyi-etf%3A-jepi-fans-take-note.-theres-a-new-high-yield-competitor-in-town
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nan
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nan
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The JPMorgan Equity Premium Income ETF’s (NYSEARCA:JEPI) combination of high yield and monthly payments has quickly made it one of the market’s most popular ETFs. Investors who like JEPI’s style now have another high-yield competitor to consider -- the NEOS S&P 500 High Income ETF (BATS:SPYI), which also pays on a monthly basis and yields 10.7%. Let’s take a closer look at this intriguing new option for high-yield investors.
What is SPYI ETF's Strategy?
Launched in August of 2022, SPYI is still a relatively small ETF from NEOS with just $218 million in assets under management (AUM) that employs a similar strategy to the much larger JEPI.
NEOS says that SPYI “seeks to generate high monthly income in a tax efficient manner with the potential for equity appreciation in rising markets.” NEOS essentially seeks to fully replicate the S&P 500 (SPX) and generates its high yield by receiving the dividend payments from its S&P 500 holdings, and then adds to this yield with the distributions generated by its selling of S&P 500 covered call options, which generates a premium.
NEOS also touts that the SPYI ETF is tax-efficient in that it uses "SPX index options classified as section 1256 contracts (60% long term/40% short term)."
Lastly, NEOS also highlights the fact that its strategy may lead to lower volatility in a "mildly bullish or mildly bearish environment."
Is There a Tradeoff?
This strategy certainly helps to juice yield, but as with anything in life, there is always a tradeoff. While SPYI mentions the potential for equity appreciation in rising markets, selling covered calls caps this upside at a certain point because if the price of the underlying stock rises beyond the strike price, that's additional upside that SPYI investors miss out on.
You can see this play out in real time with the results of SPYI, JEPI, and other similar ETFs. So far, SPYI has generated a great 17% return year to date (as of the end of the most recent month), but the broader market (represented here by the Vanguard S&P 500 ETF (NYSEARCA:VOO) was actually up an even better 20.6% over the same time frame. Similarly, JEPI also trails VOO with a return of 7.3% year-to-date.
SPYI is less than a year old, so it's hard to judge how its strategy will perform over time. However, using JEPI as a reasonable proxy for it, this strategy has also trailed the market over a three-year time frame with a total return of 11.5% versus a 13.7% return for VOO.
JEPI is fairly new itself, but using another "S&P 500 covered call ETF" to look at this strategy over time for comparison's sake, we can see that the Global X S&P 500 Covered Call ETF (NYSEARCA:XYLD) has trailed VOO over the past five and 10 years, with total annualized returns of 4.7% over the past five years and 7.0% over the past 10 years versus far superior returns of 12.2% and 12.6% over the past five and 10 years, respectively, for VOO.
None of this is to say that SPYI is a bad ETF or that covered-call ETFs are bad, and these are still pretty solid returns, but it simply illustrates the fact that they have historically tended to leave upside on the table versus simply investing in the broader market.
SPYI's Holdings
SPYI offers investors ample diversification. It holds 506 stocks, and its top 10 holdings account for 30.7% of its assets. Below, you can take a look at SPYI’s top 10 holdings using TipRanks’ holdings tool.
Because SPYI invests in the S&P 500, its holdings are fairly similar to that of the S&P 500 index itself. Apple (NASDAQ:AAPL) is the fund’s largest holding with a 7.6% weighting, followed by the other 'magnificent seven' tech stocks that have led the market to new heights in 2023 -- Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), and Meta Platforms (NASDAQ:META).
Overall, this is a very strong group of holdings with some great Smart Scores to boot. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. As you can see, six of SPYI's top 10 holdings feature Outperform-equivalent Smart Scores of 8 or above. SPYI itself boasts a strong ETF Smart Score of 8.
Is SPYI Stock a Buy, According to Analysts?
Turning to Wall Street, SPYI has a Moderate Buy consensus rating, as 59.08% of analyst ratings are Buys, 35.42% are Holds, and 5.5% are Sells. At $55.90, the average SPYI stock price target implies 13.2% upside potential.
SPYI Has High Fees
One clear downside of SPYI is its high fees. SPYI has an expense ratio of 0.68%, which is pretty high. This is a fairly complex strategy, so it is understandably going to be more expensive than a basic index ETF. However, the problem for SPYI is that it is also considerably more expensive than JEPI, which runs a very similar strategy and charges an expense ratio of just 0.35%, essentially half of what SPYI charges.
In year one, a JEPI investor investing $10,000 into the ETF would pay $35 in fees, while an SPYI investor investing the same amount would pay $68. The differences can really add up over the years. Over the course of a three-year investment, assuming that each ETF returns 5% per year and that the fees remain the same as they are now, the JEPI investor would pay $113 in fees, while the SPYI investor would pay $218, which is a meaningful difference to returns over time. Keep in mind that this gap would also grow further over the years.
Investor Takeaway
SPYI has a lot of positive attributes, but there are also a lot of considerations investors need to make before considering an investment in this high-yield fund. On the plus side, SPYI’s double-digit yield is hard to beat, and its monthly payout schedule is appealing to dividend investors.
On the downside, on a more general level, SPYI’s strategy of selling call options leaves some upside on the table as the market rallies since selling calls caps this upside.
On a more specific level, if investors are okay with this tradeoff and still want to invest in SPYI, the question then becomes a matter of SPYI versus JEPI. Both ETFs are appealing, but JEPI has a far lower expense ratio, so an SPYI investor would pay considerably more in fees over time (unless the fee gets lower as the fund gets larger, which is a possibility). So an interested investor would need to weigh investing in SPYI against investing in JEPI.
However, I can also see the nascent and much smaller SPYI carving out a niche for itself and serving as a viable investment for investors who love JEPI and its strategy and want to diversify away from it with a similar ETF that would give them another stream of dividend income on a different schedule.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) is the fund’s largest holding with a 7.6% weighting, followed by the other 'magnificent seven' tech stocks that have led the market to new heights in 2023 -- Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), and Meta Platforms (NASDAQ:META). Launched in August of 2022, SPYI is still a relatively small ETF from NEOS with just $218 million in assets under management (AUM) that employs a similar strategy to the much larger JEPI. So far, SPYI has generated a great 17% return year to date (as of the end of the most recent month), but the broader market (represented here by the Vanguard S&P 500 ETF (NYSEARCA:VOO) was actually up an even better 20.6% over the same time frame.
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Apple (NASDAQ:AAPL) is the fund’s largest holding with a 7.6% weighting, followed by the other 'magnificent seven' tech stocks that have led the market to new heights in 2023 -- Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), and Meta Platforms (NASDAQ:META). JEPI is fairly new itself, but using another "S&P 500 covered call ETF" to look at this strategy over time for comparison's sake, we can see that the Global X S&P 500 Covered Call ETF (NYSEARCA:XYLD) has trailed VOO over the past five and 10 years, with total annualized returns of 4.7% over the past five years and 7.0% over the past 10 years versus far superior returns of 12.2% and 12.6% over the past five and 10 years, respectively, for VOO. On the downside, on a more general level, SPYI’s strategy of selling call options leaves some upside on the table as the market rallies since selling calls caps this upside.
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Apple (NASDAQ:AAPL) is the fund’s largest holding with a 7.6% weighting, followed by the other 'magnificent seven' tech stocks that have led the market to new heights in 2023 -- Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), and Meta Platforms (NASDAQ:META). JEPI is fairly new itself, but using another "S&P 500 covered call ETF" to look at this strategy over time for comparison's sake, we can see that the Global X S&P 500 Covered Call ETF (NYSEARCA:XYLD) has trailed VOO over the past five and 10 years, with total annualized returns of 4.7% over the past five years and 7.0% over the past 10 years versus far superior returns of 12.2% and 12.6% over the past five and 10 years, respectively, for VOO. In year one, a JEPI investor investing $10,000 into the ETF would pay $35 in fees, while an SPYI investor investing the same amount would pay $68.
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Apple (NASDAQ:AAPL) is the fund’s largest holding with a 7.6% weighting, followed by the other 'magnificent seven' tech stocks that have led the market to new heights in 2023 -- Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), and Meta Platforms (NASDAQ:META). What is SPYI ETF's Strategy? Because SPYI invests in the S&P 500, its holdings are fairly similar to that of the S&P 500 index itself.
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14467.0
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2023-08-04 00:00:00 UTC
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Wall St Week Ahead-Inflation report, bond yields in focus as U.S. stocks rally pauses
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-inflation-report-bond-yields-in-focus-as-u.s.-stocks-rally-pauses
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nan
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nan
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By Carolina Mandl
NEW YORK, Aug 4 (Reuters) - A highly awaited inflation report and elevated bond yields offer the latest test to a U.S. stock rally that has delivered hefty gains this year.
The benchmark S&P 500 index is up 16.6% year to date, fueled by an improving economic outlook, excitement over developments in artificial intelligence and signs that the Federal Reserve is close to ending its market-bruising U.S. interest rate hikes.
Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued. Investors are also closely watching the path of Treasury yields, which rattled equity markets in recent days by rising to fresh year highs. The S&P 500 fell 2.27% this week, its biggest weekly decline since March 10.
"After a massive run-up in equities ... any sort of blip in terms of any of the macro data (is) probably going to be a reason for people to take profits," said Jack Janasiewicz, lead portfolio strategist and portfolio manager at Natixis Investment Managers.
While consumer prices have not been rising as fast lately, some investors worry stubborn inflation may force the Fed to leave rates at current levels longer than expected. The U.S. reports consumer price data on Aug. 10.
On Friday, U.S. employment data showed the economy maintained a moderate pace of job growth. Yet wages grew at a faster-than-expected annual clip of 4.4%. Many fear that is too high to be consistent with the Fed's 2% inflation target.
Janasiewicz of Natixis said a stronger-than-expected consumer price reading next week could spark a decline of up to 5% in the S&P 500. He said such a drop would be “healthy” given the index's big runup this year.
Other investors have been taking profits. Concerns over rising stock valuations pushed Aaron Chan, a managing partner at equity hedge fund Recurve Capital, to trim stakes in shares of companies including Amazon.com AMZN.O, which is up 68% this year, and Norwegian Cruise Line NCLH.N, up 47%.
The S&P 500 is trading at about 19.5 times forward 12-month earnings estimates, much pricier than its long-term average of about 15.6 times, according to Refinitiv Datastream.
Prices for Brent crude were on track for their sixth straight week of gains, up roughly 17% in that period on signs of tightening global supply and rising demand.
"As long as CPI remains flat to trending down, the market will accept it thoroughly," said Ann Miletti, Allspring's head of active equity. "If we do see upticks, it is really dependent on where the upticks are and whether or not investors believe they're temporary in nature."
Miletti is growing more bullish on corners of the market that have underperformed, including small cap stocks.
A stronger-than-expected inflation number next week could also boost Treasury yields further. Yields, which move inversely to bond prices, spiked this week following a downgrade of the U.S. credit rating by Fitch and on the prospect of a flood of Treasury supply in the third quarter. The benchmark 10-year yield fell sharply after Friday's jobs report but remained above 4%, a level last seen in November 2022.
Rising yields on Treasuries, viewed as among the world's safest investments because they are backed by the U.S. government, can dull the allure of stocks. Projected company cash flows are also worth less in current dollars when interest rates rise.
"The move in the 10-year U.S. Treasury yield above the 4% level will likely act as a headwind to further expansion in already lofty equity valuations," Keith Lerner, co-chief investment officer at Truist Advisory Services, wrote this week.
There is still plenty of good news to keep the rally going. Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday.
More broadly, more than 79% of S&P 500 companies have beaten estimates for the second quarter so far, the highest beat rate since the third quarter of 2021, data from Refinitiv I/B/E/S showed.
Still, some market participants believe investors may have to endure some near-term turbulence.
"Our expectation is that the market takes some time to digest the strong year-to-date gains and moves into a choppy period," Lerner said.
(Reporting by Carolina Mandl in New York; Additional reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. By Carolina Mandl NEW YORK, Aug 4 (Reuters) - A highly awaited inflation report and elevated bond yields offer the latest test to a U.S. stock rally that has delivered hefty gains this year. The benchmark S&P 500 index is up 16.6% year to date, fueled by an improving economic outlook, excitement over developments in artificial intelligence and signs that the Federal Reserve is close to ending its market-bruising U.S. interest rate hikes.
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Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued. "After a massive run-up in equities ... any sort of blip in terms of any of the macro data (is) probably going to be a reason for people to take profits," said Jack Janasiewicz, lead portfolio strategist and portfolio manager at Natixis Investment Managers.
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Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. By Carolina Mandl NEW YORK, Aug 4 (Reuters) - A highly awaited inflation report and elevated bond yields offer the latest test to a U.S. stock rally that has delivered hefty gains this year. Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued.
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Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued. The U.S. reports consumer price data on Aug. 10.
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14468.0
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2023-08-04 00:00:00 UTC
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Canaccord Genuity Maintains Apple (AAPL) Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/canaccord-genuity-maintains-apple-aapl-buy-recommendation-0
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nan
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nan
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Fintel reports that on August 4, 2023, Canaccord Genuity maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 9.18% Upside
As of August 1, 2023, the average one-year price target for Apple is 198.70. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents an increase of 9.18% from its latest reported closing price of 181.99.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6387 funds or institutions reporting positions in Apple. This is a decrease of 23 owner(s) or 0.36% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. Total shares owned by institutions decreased in the last three months by 2.05% to 9,903,041K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.79% 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 2.94% 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 2.19% 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 1.80% 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 1.48% 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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Fintel reports that on August 4, 2023, Canaccord Genuity maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Canaccord Genuity maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Canaccord Genuity maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Canaccord Genuity maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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14469.0
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2023-08-04 00:00:00 UTC
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Apple Stock (NASDAQ:AAPL): This Quiet Winner of the AI Race Still Has Upside
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AAPL
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https://www.nasdaq.com/articles/apple-stock-nasdaq%3Aaapl%3A-this-quiet-winner-of-the-ai-race-still-has-upside
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nan
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nan
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The AI ambitions of Apple (NASDAQ:AAPL) have been relatively muted compared to its peers in the FAANG basket. Undoubtedly, the $3 trillion tech titan isn't just standing at the starting line of the AI race. The firm began its sprint a long time ago, even though many investors and analysts may not be aware of its current standing in the race.
Undoubtedly, it's easy to conclude that Apple is neglecting the growth potential of cutting-edge generative AI technologies like Large Language Models (LLMs). Though Apple has not been nearly as vocal at its conference calls as the other tech titans, it's a mistake not to consider the longer-term monetization potential of AI.
As Apple continues investing in the AI we can't see (think the consumer-friendly AI-driven features we take for granted), I think shares of the iPhone maker could have more AI upside relative to its FAANG rivals, most notably Microsoft (NASDAQ:MSFT). As such, I'm staying bullish on AAPL stock.
Apple Beats on Q3 EPS, Sheds a Little More Light on AI Prospects
Apple revealed a decent third quarter after market close yesterday, beating modest analyst expectations on the bottom line while matching revenue estimates of $81.8 billion. Earnings per share (EPS) came in at $1.26, topping the consensus estimate of $1.20. Despite the beat, the most common headline I saw was that Apple revenues slipped for the third-straight quarter.
Indeed, investors didn't seem too enthused by the numbers, as shares are currently lower today following the results. I believe the major headline that should have grabbed investors' attention is the strong growth in Services, up 8%, and the insightful commentary on AI from Apple's CEO, Tim Cook.
During theearnings call Cook stated that Apple has been working on AI, including generative AI, for many years. Indeed, this is pretty unsurprising commentary from Apple's top boss, who's probably been hounded to shed more detail on the company's longer-term AI plans.
Though Cook didn't say anything game-changing or shocking about Apple's AI ambitions, I do respect that he doesn't appear to be trying to build up any AI hype, at least not to the magnitude of some of the other tech companies out there that can't seem to go a few sentences without mentioning generative AI.
"We're going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people's lives," said Cook. The key words here are "responsibility advancing."
Enriching People's Lives Ought to Come Before the Maximization of Profit
This isn't the first time we heard Cook mention the goal of enriching people's lives, and it probably won't be the last. Indeed, it's not hard to imagine companies may be getting a tad ahead of their skis when it comes to generative AI and LLMs. While AI can enrich people's lives, there's also the danger it could do some harm. Indeed, OpenAI's ChatGPT and even Microsoft's Bing AI have been called out for "hallucinating," or in Lehman terms, just making stuff up!
Undeniably, LLMs like ChatGPT are definitely a work in progress, and there's a lot of reputational risk on the line by putting a consumer-facing AI product out there. While Microsoft may be comfortable taking such risks to be an early mover in the AI race, Apple does not seem to be, at least not yet.
As AI regulations and potential downsides arise, I'd look for Apple to be more comfortable making a bigger splash into the uncertain AI waters. Until then, expect the company to keep tabs on the state of the emerging technology as it looks to incorporate various aspects to "enrich people's lives."
At the end of the day, Apple seems to be playing the long game with AI, putting people first rather than profits. Moving forward, I expect the company to do more of the same. The latest iOS update may not have AppleGPT, but it does have AI technologies (think the iOS 17's AI-powered Auto-Correct) to help improve numerous aspects of the user experience.
Is Apple Stock a Buy, According to Analysts?
On TipRanks, AAPL stock comes in as a Strong Buy. Out of 31 analyst ratings, there have been 23 Buys and eight Hold recommendations assigned by analysts in the past three months. The average Apple stock price target is $206.80, implying upside potential of 13.35%. Analyst price targets range from a low of $150.00 per share to a high of $240.00 per share.
Indeed, some may view 13.35% as a modest return for the year ahead. Apple shares are trading on the expensive side of their historical range (the stock's averaged a 25.5 times trailing price-to-earnings multiple over the last five years) at 31 times trailing price-to-earnings. Still, I expect price target hikes to come in as more analysts re-evaluate Apple's longer-term potential in AI.
The Bottom Line
An AI-powered Auto-Correct feature may be a heck of a lot less ambitious than a ChatGPT rival. However, there's no shame in releasing safe, responsible AI-based technologies before taking chances with a massive GPT-powered Siri update before it's polished enough not to "hallucinate" or do something that could potentially hurt its consumers.
The way I see it, getting into the pool from the shallow end is far less risky than the deep end if you're not sure what lies beneath the water. Although it may not seem like it, Apple's a long-term AI winner, albeit a quiet one, for now!
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The AI ambitions of Apple (NASDAQ:AAPL) have been relatively muted compared to its peers in the FAANG basket. As such, I'm staying bullish on AAPL stock. On TipRanks, AAPL stock comes in as a Strong Buy.
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The AI ambitions of Apple (NASDAQ:AAPL) have been relatively muted compared to its peers in the FAANG basket. As such, I'm staying bullish on AAPL stock. On TipRanks, AAPL stock comes in as a Strong Buy.
|
The AI ambitions of Apple (NASDAQ:AAPL) have been relatively muted compared to its peers in the FAANG basket. As such, I'm staying bullish on AAPL stock. On TipRanks, AAPL stock comes in as a Strong Buy.
|
On TipRanks, AAPL stock comes in as a Strong Buy. The AI ambitions of Apple (NASDAQ:AAPL) have been relatively muted compared to its peers in the FAANG basket. As such, I'm staying bullish on AAPL stock.
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14470.0
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2023-08-04 00:00:00 UTC
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Stocks Move Lower After a Rocky Week of Trading
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AAPL
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https://www.nasdaq.com/articles/stocks-move-lower-after-a-rocky-week-of-trading
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.48%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.43%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.26%.
Amazon.com is up +9% after reporting earnings. However, gains are muted, with Apple down more than -4% after delivering a lackluster outlook for its fourth quarter.
U.S. Jul nonfarm payrolls rose +187,000, below expectations of +200,000, which was slightly dovish for Fed policy. The Jul unemployment rate unexpectedly fell -0.1 to 3.5%, showing a stronger labor market than expectations of 3.6%.
U.S. Jul average hourly earnings rose +0.4% m/m and +4.4% y/y, stronger than expectations of +0.3% m/m and +4.2% y/y, which was hawkish for Fed policy.
Fed comments today were dovish for Fed policy and bullish for stocks. Atlanta Fed President Bostic said U.S. employment gains are slowing in an orderly manner, and there is no need to raise interest rates further to ease inflation. Also, Chicago Fed President Goolsbee said we've been getting promising numbers on inflation, and the Fed should start thinking about how long to hold interest rates in restrictive territory.
The markets are discounting the odds at 12% for a +25 bp rate hike at the September 20 FOMC meeting, falling from 17% on Thursday.
Global bond yields are lower. The 10-year T-note yield fell back from an 8-3/4 month high of 4.204% and is down -7.1 bp at 4.105%. The 10-year German bund yield fell from a 3-week high of 2.651% and is down -3.1 bp at 2.574%. The 10-year UK gilt yield fell back from a 2-1/2 week high of 4.499% and is down -6.8 bp at 4.403%.
Overseas stock markets are higher. The Euro Stoxx 50 is up +0.64%. China’s Shanghai Composite Index today closed up +0.23%. Japan’s Nikkei Stock Index closed up +0.10%.
Today’s stock movers…
Amazon.com (AMZN) is up more than +11% to lead gainers in the S&P 500 after reporting Q2 net sales of $134.38 billion, stronger than the consensus of $131.63 billion, and forecasting Q3 net sales of $128 billion-$143 billion, above the consensus of $138.3 billion.
Atlassian (TEAM) is up more than +18% to lead gainers in the Nasdaq 100 after reporting Q4 revenue of $939.1 million, better than the consensus of $915.7 million, and forecast Q1 revenue of $950 million-$970 million, above the consensus of $955.7 million.
Booking Holdings (BKNG) is up more than +9% after reporting Q2 revenue of $5.46 billion, stronger than the consensus of $5.17 billion. That prompted CFRA to upgrade the stock to buy from hold.
Gen Digital (GEN) is up more than +7% after reporting Q1 adjusted EPS of 47 cents, better than the consensus of 46 cents.
DaVita (DVA) is up more than +7% after reporting Q2 operating income of $405.3 million, stronger than the consensus of $381 million, and raising its full-year free cash flow estimate to $850 million-$1.10 billion from a prior view of $750 million-$1.0 billion, better than the consensus of $899.5 million.
Amgen (AMGN) is up more than +5% to lead gainers in the Dow Jones Industrials after forecasting Q2 adjusted EPS of $5.00, well above the consensus of $4.48, and raising its full-year adjusted EPS estimate to $17.80-$18.80 from a previous estimate of $17.60-$18.70.
Stryker (SYK) is up more than +4% after reporting Q2 net sales of $5.00 billion, better than the consensus of $4.82 billion.
Cboe Global Markets (CBOE) is up more than +3% after reporting Q2 adjusted Ebitda of $293.3 million, better than the consensus of $289.1 million.
Datadog (DDOG) is up more than +3% after Stifel raised its price target on the stock to $115 from $101.
Cybersecurity stocks are sinking today after Fortinet reported Q2 billings of $1.54 billion, below the consensus of $1.59 billion, and cut its full-year billings forecast to $6.49 billion-$6.59 billion from a previous estimate of $6.75 billion-$6.81 billion, well below the consensus of $6.79 billion. As a result, Fortinet (FTNT) is down more than -23% to lead losers in the S&P 500 and Nasdaq 100. Also, Palo Alto Networks (PANW) is down more than -8%, and Crowdstrike Holdings (CRWD) and Zscaler (ZS) are down more than -4%
ResMed (RMD) is down more than -16% after reporting Q4 adjusted EPS of $1.60, weaker than the consensus of $1.70.
Microchip Technology (MCHP) is down more than -7% after forecasting Q2 net sales of $2.22 billion-$2.31 billion, the midpoint below the consensus of $2.28 billion.
Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion and said Q4 year-over-year performance to be similar to Q3.
Ventas (VTR) is down more than -4% after forecasting full-year normalized FFO/share of $2.92 to $3.00, the midpoint below the consensus of $3.00.
Redfin (RDFN) is down more than -21% after reporting a Q2 Ebitda loss of -$6.93 million, a larger loss than the consensus of -$3.23 million, and forecast Q3 adjusted Ebitda of $4 million-$14 million, weaker than the consensus of $21.8 million.
Monster Beverage (MNST) is down more than -3% after reporting Q2 net sales of $1.85 billion, weaker than the consensus of $1.87 billion.
CSX Corp (CSX) is down more than -3% after announcing that Jamie Boychuk, executive vice president of operations, is leaving the company, and a search for a successor is ongoing.
Across the markets…
September 10-year T-notes (ZNU23) today are up +20 ticks, and the 10-year T-note yield is down -7.1 bp at 4.105%. Sep T-notes today recovered from an 8-3/4 month low and moved higher, and the 10-year T-note yield fell back from an 8-3/4 month high of 4.204% and moved lower. T-notes are climbing today after U.S. Jul nonfarm payrolls rose more than expected. Gains accelerated after Atlanta Fed President Bostic said U.S. employment gains are slowing in an orderly manner, and there is no need to raise interest rates further to ease inflation. On the negative side, the U.S. Jul unemployment rate unexpectedly declined, and Jul average hourly earnings rose more than expected.
The dollar index (DXY00) today is down by -0.65%. The dollar is under pressure today from falling T-note yields after U.S. Jul nonfarm payrolls rose less than expected. Losses in the dollar accelerated after Atlanta Fed President Bostic said there is no need to raise interest rates further to ease inflation.
EUR/USD (^EURUSD) today is up by +0.70%. A slump in the dollar today has sparked short covering in the euro. EUR/USD also rose after German Jun factory orders unexpectedly rose by the most in 3 years, bolstering optimism in the Eurozone economy.
Eurozone Jun retail sales unexpectedly fell -0.3% m/m, weaker than expectations of +0.2% m/m.
German Jun factory orders unexpectedly rose +7.0% m/m, stronger than expectations of -2.0% m/m and the biggest increase in 3 years.
The German Jul S&P construction PMI fell -0.4 to 41.0, the steepest pace of contraction in 2-1/2 years.
USD/JPY (^USDJPY) is down by -0.67%. The yen erased overnight gains and turned lower after T-note yields tumbled on a smaller-than-expected increase in U.S. Jul nonfarm payrolls and dovish Fed comments. The yen today initially moved lower as Japanese government bond yields fell after the BOJ on Thursday announced an unscheduled debt-purchase operation for the second time this week to push bond yields lower.
October gold (GCV3) today is up +10.5 (+0.54%), and Sep silver (SIU23) is up +0.073 (+0.31%). Precious metals prices this morning rebounded from early losses and are moderately higher. Gold and silver recovered from 3-week lows this morning and moved higher after the dollar and T-note yields fell on a smaller-than-expected increase in U.S. Jul nonfarm payrolls. Metals extended their gains after Atlanta Fed President Bostic said there is no need for the Fed to raise interest rates further to ease inflation. On the bearish side, fund liquidation in gold continues after long gold holdings in ETFs fell to a new 3-year low on Thursday. Also, a rally in stocks today has curbed the safe-haven demand for precious metals.
More Stock Market News from Barchart
Is the Sky Falling for the S&P 500 Index?Recent Analyst Upgrades for CarParts.com (PRTS) Suggests Investors Must Think FastShould You Buy the Dip in Nike Stock?Markets Today: Stocks Climb on Strong Amazon Earnings and Lower Bond Yields
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion and said Q4 year-over-year performance to be similar to Q3. Also, Palo Alto Networks (PANW) is down more than -8%, and Crowdstrike Holdings (CRWD) and Zscaler (ZS) are down more than -4% ResMed (RMD) is down more than -16% after reporting Q4 adjusted EPS of $1.60, weaker than the consensus of $1.70. The yen erased overnight gains and turned lower after T-note yields tumbled on a smaller-than-expected increase in U.S. Jul nonfarm payrolls and dovish Fed comments.
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Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion and said Q4 year-over-year performance to be similar to Q3. Cybersecurity stocks are sinking today after Fortinet reported Q2 billings of $1.54 billion, below the consensus of $1.59 billion, and cut its full-year billings forecast to $6.49 billion-$6.59 billion from a previous estimate of $6.75 billion-$6.81 billion, well below the consensus of $6.79 billion. Sep T-notes today recovered from an 8-3/4 month low and moved higher, and the 10-year T-note yield fell back from an 8-3/4 month high of 4.204% and moved lower.
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Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion and said Q4 year-over-year performance to be similar to Q3. Today’s stock movers… Amazon.com (AMZN) is up more than +11% to lead gainers in the S&P 500 after reporting Q2 net sales of $134.38 billion, stronger than the consensus of $131.63 billion, and forecasting Q3 net sales of $128 billion-$143 billion, above the consensus of $138.3 billion. DaVita (DVA) is up more than +7% after reporting Q2 operating income of $405.3 million, stronger than the consensus of $381 million, and raising its full-year free cash flow estimate to $850 million-$1.10 billion from a prior view of $750 million-$1.0 billion, better than the consensus of $899.5 million.
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Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion and said Q4 year-over-year performance to be similar to Q3. The dollar is under pressure today from falling T-note yields after U.S. Jul nonfarm payrolls rose less than expected. EUR/USD (^EURUSD) today is up by +0.70%.
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14471.0
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2023-08-04 00:00:00 UTC
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GLOBAL MARKETS-Wall St extends gains on slowing but strong US labor market
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AAPL
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https://www.nasdaq.com/articles/global-markets-wall-st-extends-gains-on-slowing-but-strong-us-labor-market-0
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nan
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nan
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By Lawrence Delevingne
Aug 4 (Reuters) - Wall Street and other global markets were higher and the U.S. dollar and Treasury yields lower after a new government jobs report showed a slowing but still tight U.S. labor market.
Nonfarm payrolls increased by 187,000 jobs last month, the Labor Department said in its closely watched employment report on Friday, slightly below expectations of 200,000 jobs. At the same time, the unemployment rate fell to 3.5% from 3.6% in June.
"This is still not the picture of the labor market we would expect to see if the economy were in danger of decelerating dramatically in the short term, although without question there are signs of moderation," Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income, said in a statement.
The Dow Jones Industrial Average .DJI rose 0.49% and the S&P 500 .SPX gained 0.5%. The technology-heavy Nasdaq Composite .IXIC added about 0.7%, boosted by an 11% surge by Amazon AMZN.O, which reportedsales growth and profit that beat analyst estimates. Apple AAPL.Oforecast a sales slump to continue into the current quarter; it was last down about 3%.
European stock indexes rebounded on Friday, with the STOXX 600 up 0.3% on the day .STOXX, while London's FTSE 100 .FTSErose 0.45%.
The MSCI All-World index .MIWD00000PUS was last up 0.6% following the job news. It had been headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
Economists who have long been forecasting a downturn by the fourth quarter of this year are increasingly becoming convinced that the "soft-landing" scenario for the economy envisaged by the U.S. Federal Reserve is now possible.
Randy Frederick, managing director of trading and derivatives at Charles Schwab in Austin, Texas, said the mixed jobs report "plays into the soft landing, or the no-landing, narrative that the markets have been slowly trudging higher on."
“This ought to relieve some of that concern about the fact that the economy is too strong, which would cause concern that perhaps we get another rate hike in September," Frederick added.
Data also showed the number of Americans filing new claims for unemployment benefit rose slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remained tight.
The dollar meanwhile fell 0.6% against a basket of major currencies =USD, a reversal after two consecutive weekly gains.
It has made the most headway against some of this year's better-performing currencies, including the poundGBP=D3, under pressure since the Bank of England delivered a smaller rate rise than many had hoped for. Sterling was last up 0.4% on the day, still down about 0.5% in August.
China's yuan CNH=D3, last flat on the day, gained some respite after an official said on Friday the central bank would use policy tools flexibly to ensure reasonably ample liquidity in the banking system.
Investors have been hoping policymakers will deliver more broad-based stimulus to boost the post-pandemic recovery as the world's second-largest economy struggles with weak demand at home and abroad.
U.S. Treasury yields dropped after jobs data on Friday showed the U.S. economy added fewer jobs than expected in July, but investors hesitated to rule out further monetary tightening.
The yield on 10-year Treasury notes US10YT=RR was down 9.7 basis points to 4.092%. 30-year US30YT=RR yields were down 6.9 basis points to 4.233%.
Rating agency Fitch this week surprised markets by stripping the United States of its prized triple-A credit rating and cited the country's deteriorating fiscal position as one of the key drivers, thrusting the government's finances into the spotlight.
Earlier in the week, the U.S. Treasury said it expects to borrow just over $1 trillion in the third quarter of this year alone, $273 billion more than its May estimate.
Oil prices headed for a sixth straight weekly gain, driven by the prospect of reduced supply from Saudi Arabia and Russia. U.S. crude CLc1 rose 0.77% to $82.18 per barrel and Brent LCOc1 was at $85.80, up 0.78% on the day.
World FX rates YTD http://tmsnrt.rs/2egbfVh
(Reporting by Lawrence Delevingne in Boston and Amanda Cooper and Elizabeth Howcroft in London. Additional reporting by Ankur Banerjee and Sruthi Shankar; Editing by Sharon Singleton and Nick Macfie)
((lawrence.delevingne@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.Oforecast a sales slump to continue into the current quarter; it was last down about 3%. "This is still not the picture of the labor market we would expect to see if the economy were in danger of decelerating dramatically in the short term, although without question there are signs of moderation," Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income, said in a statement. Randy Frederick, managing director of trading and derivatives at Charles Schwab in Austin, Texas, said the mixed jobs report "plays into the soft landing, or the no-landing, narrative that the markets have been slowly trudging higher on."
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Apple AAPL.Oforecast a sales slump to continue into the current quarter; it was last down about 3%. By Lawrence Delevingne Aug 4 (Reuters) - Wall Street and other global markets were higher and the U.S. dollar and Treasury yields lower after a new government jobs report showed a slowing but still tight U.S. labor market. It had been headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
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Apple AAPL.Oforecast a sales slump to continue into the current quarter; it was last down about 3%. By Lawrence Delevingne Aug 4 (Reuters) - Wall Street and other global markets were higher and the U.S. dollar and Treasury yields lower after a new government jobs report showed a slowing but still tight U.S. labor market. It had been headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
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Apple AAPL.Oforecast a sales slump to continue into the current quarter; it was last down about 3%. By Lawrence Delevingne Aug 4 (Reuters) - Wall Street and other global markets were higher and the U.S. dollar and Treasury yields lower after a new government jobs report showed a slowing but still tight U.S. labor market. It had been headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
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14472.0
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2023-08-04 00:00:00 UTC
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US STOCKS-U.S. stocks rises on Amazon boost; bond yields fall
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AAPL
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https://www.nasdaq.com/articles/us-stocks-u.s.-stocks-rises-on-amazon-boost-bond-yields-fall
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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
U.S. jobs growth slows in July
IPhone sales slump weighs on Apple
Amazon sees bright Q3 on resilient cloud sales, shopping trends
Fortinet drops on forecast cut
Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86%
Updated at 1:53 p.m. ET/5:53 p.m. GMT
By Echo Wang
Aug 4 (Reuters) - Wall Street gained and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains.
U.S. employers added 187,000 jobs in July, according to the Labor Department's employment report on Friday. Data for June additions was revised lower to 185,000 jobs, from 209,000 reported previously.
“There’s been this building narrative as of recent.. (that) the soft landing is a sure thing, the economy is not going to slow materially”, said Charlie Ripley, senior investment strategist for Allianz Investment Management in Minneapolis, “Loosening up of the labor market is a sign that shows that the economy is slowing to some extent.”
Average hourly earnings rose 0.4% in July, unchanged from the previous month, exceeding expectations, taking the year-on-year increase in wages to 4.4%.
The yield on the 10-year benchmark note US10YT=RR dipped on Friday after the jobs data, but still remained above 4%, partly boosting some megacap stocks.
“This buildup that nonfarm payrolls were going to exceed expectations - Clearly, it didn't - drove the rest of the bond market that we're seeing”, said Ripley,"we are kind of seeing equity market reaction to that as well. It's a little bit more bullish for equities.”
Giving solid boost to the S&P 500 index, Amazon.com shares AMZN.O surged 10.5% after the company issued an upbeat third-quarter outlook. Apple's shares AAPL.Odipped 3.2% as the iPhone maker forecast a continued slide in sales.
Shares of peers Microsoft MSFT.O, Alphabet GOOGL.O and Snowflake SNOW.N rose between 1% and 5% after Amazon's cloud business segment beat sales estimates.
At 1:53 p.m. ET, the Dow Jones Industrial Average .DJI rose 192.75 points, or 0.55%, to 35,408.64, the S&P 500 .SPX gained 23.17 points, or 0.51%, to 4,525.06 and the Nasdaq Composite .IXIC added 120.23 points, or 0.86%, to 14,079.94.
All three major indexes were on course to end the week lower, with the tech-heavy Nasdaq leading losses.
Stocks closed marginally lower on Thursday, weighed down by the last batch of economic data and some disappointing earnings.
Of the 422 companies in the S&P 500 that have reported quarterly earnings as of Friday, 79.1% have beat analysts' estimates, according to Refinitiv data.
Carl Icahn-owned investment firm Icahn EnterprisesIEP.O shed 23.3% after the company halved its quarterly payout, months after short-seller Hindenburg Research accused it of operating a "Ponzi-like" structure to pay dividends.
Fortinet FTNT.Otumbled24.4% after the cybersecurity firm cut its annual revenue forecast as spending from enterprise clients remained tight amid a turbulent economy.
Shares of Tupperware TUP.N, known for its plastic airtight storage containers and bowls, rallied 48.3% after the company finalized an agreement with its lenders to restructure its debt obligations in an effort to turn around the business.
Amgen AMGN.O added 6.4% after it reported a higher quarterly profit on strong sales of its cholesterol, osteoporosis and other drugs.
DraftKings' DKNG.O shares rose 2% after the sports-betting firm raised its fiscal year 2023 revenue outlook.
Advancing issues outnumbered declining ones on the NYSE by a 2.89-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored advancers.
The S&P 500 posted 19 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 52 new highs and 69 new lows.
Monthly change in U.S. jobs https://tmsnrt.rs/3OFX0Zi
(Reporting by Echo Wang in New York, Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta, Shinjini Ganguli and Louise Heavens)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's shares AAPL.Odipped 3.2% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86% Updated at 1:53 p.m. ET/5:53 p.m. GMT By Echo Wang Aug 4 (Reuters) - Wall Street gained and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains. Carl Icahn-owned investment firm Icahn EnterprisesIEP.O shed 23.3% after the company halved its quarterly payout, months after short-seller Hindenburg Research accused it of operating a "Ponzi-like" structure to pay dividends.
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Apple's shares AAPL.Odipped 3.2% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86% Updated at 1:53 p.m. ET/5:53 p.m. GMT By Echo Wang Aug 4 (Reuters) - Wall Street gained and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains. U.S. employers added 187,000 jobs in July, according to the Labor Department's employment report on Friday.
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Apple's shares AAPL.Odipped 3.2% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86% Updated at 1:53 p.m. ET/5:53 p.m. GMT By Echo Wang Aug 4 (Reuters) - Wall Street gained and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains. “There’s been this building narrative as of recent.. (that) the soft landing is a sure thing, the economy is not going to slow materially”, said Charlie Ripley, senior investment strategist for Allianz Investment Management in Minneapolis, “Loosening up of the labor market is a sign that shows that the economy is slowing to some extent.” Average hourly earnings rose 0.4% in July, unchanged from the previous month, exceeding expectations, taking the year-on-year increase in wages to 4.4%.
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Apple's shares AAPL.Odipped 3.2% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86% Updated at 1:53 p.m. ET/5:53 p.m. GMT By Echo Wang Aug 4 (Reuters) - Wall Street gained and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains. Of the 422 companies in the S&P 500 that have reported quarterly earnings as of Friday, 79.1% have beat analysts' estimates, according to Refinitiv data.
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14473.0
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2023-08-04 00:00:00 UTC
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Technology Sector Update for 08/04/2023: AMZN, AAPL, AAOI
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-08-04-2023%3A-amzn-aapl-aaoi
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nan
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nan
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Tech stocks were mixed Friday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the Philadelphia Semiconductor index advancing 0.2%.
In company news, Amazon.com (AMZN) shares rose 9.8% after it swung to a bigger-than-expected Q2 profit, supported by stabilizing growth rates in its cloud computing business.
Apple (AAPL) was shedding 3.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year.
Applied Optoelectronics (AAOI) shares soared 60% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral.
The views and 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) was shedding 3.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year. Tech stocks were mixed Friday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the Philadelphia Semiconductor index advancing 0.2%. In company news, Amazon.com (AMZN) shares rose 9.8% after it swung to a bigger-than-expected Q2 profit, supported by stabilizing growth rates in its cloud computing business.
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Apple (AAPL) was shedding 3.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year. In company news, Amazon.com (AMZN) shares rose 9.8% after it swung to a bigger-than-expected Q2 profit, supported by stabilizing growth rates in its cloud computing business. Applied Optoelectronics (AAOI) shares soared 60% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral.
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Apple (AAPL) was shedding 3.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year. In company news, Amazon.com (AMZN) shares rose 9.8% after it swung to a bigger-than-expected Q2 profit, supported by stabilizing growth rates in its cloud computing business. Applied Optoelectronics (AAOI) shares soared 60% after the company reported a narrower Q2 loss and B. Riley upgraded the stock to buy from neutral.
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Apple (AAPL) was shedding 3.7% after the company said it expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year-over-year. Tech stocks were mixed Friday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the Philadelphia Semiconductor index advancing 0.2%. In company news, Amazon.com (AMZN) shares rose 9.8% after it swung to a bigger-than-expected Q2 profit, supported by stabilizing growth rates in its cloud computing business.
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14474.0
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2023-08-04 00:00:00 UTC
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July Jobs Cool to 187K, Unemployment Drops to 3.5%
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AAPL
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https://www.nasdaq.com/articles/july-jobs-cool-to-187k-unemployment-drops-to-3.5
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nan
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nan
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Pre-market futures were essentially flat directly prior to the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS): 187K new jobs were created in the month of July, below the 200K expected but 2000 positions more than the downwardly revised 185K for June, which now marks the cycle lows going back to December of 2020, which greeted us with a loss of -268K jobs. The Unemployment Rate ticked down to 3.5%, below the 3.6% expected and posted last month. Cycle lows here are 3.4%, most recently in April of this year.
Hourly Wages, however, ticked up from expectations to +0.4%, matching last month and the previous three months. Year over year, this figure remains elevated at +4.4%, 20 basis points (bps) higher than analysts were looking for. The last time we were sub-4% on year-over-year wage growth was back in June 2021. This number points to sticky inflation in the economy, despite a lower total of jobs created overall. Revisions to the previous two months were -24K for June and -25K for May, to 209K.
Labor Force Participation remained static at 62.6% — this is a stubborn metric that appeared to be ramping up to pre-Covid levels but have stalled in recent months. For a frame of reference, February 2020 saw this rate come in at 63.3%; we have yet to regain that level. A lower Average Workweek, at 34.3 hours, equals the May low. And the U-6 (aka “real unemployment”) fell to 6.7%, the slimmest print since the cycle low 6.5% in December of last year.
Unlike months in the past, new job fills were not dominated by one or two industries — we saw decent growth along a wider swath of the overall economy: Construction grew by +19K new jobs, +17K came from Leisure and Hospitality (which registered a whopping +201K in Wednesday’s private sector report from ADP, so likely revisions in the coming months will help smooth this out) and +15K jobs were created in the Government sector. Manufacturing dropped -9K last month.
Q2 earnings season continues, although the fireworks ignited from the big marquee names have largely passed for the week, with Apple AAPL and Amazon AMZN outpacing estimates on top and bottom lines. This morning, CBOE Global CBOE beat earnings estimates by 2 cents to $1.78 per share (above the $1.67 per share reported in the year-ago quarter), notching its fourth-straight earnings beat on flat revenues (-0.02%) to $467.1 million (up from $424.1 million a year ago). Shares are up modestly in today’s pre-market, but only +11.6% year to date, underperforming the S&P 500’s +17.3%. For more on CBOE’s earnings, click here.
Questions or comments about this article and/or author? Click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : 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.
|
Q2 earnings season continues, although the fireworks ignited from the big marquee names have largely passed for the week, with Apple AAPL and Amazon AMZN outpacing estimates on top and bottom lines. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report To read this article on Zacks.com click here. Pre-market futures were essentially flat directly prior to the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS): 187K new jobs were created in the month of July, below the 200K expected but 2000 positions more than the downwardly revised 185K for June, which now marks the cycle lows going back to December of 2020, which greeted us with a loss of -268K jobs.
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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 Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 earnings season continues, although the fireworks ignited from the big marquee names have largely passed for the week, with Apple AAPL and Amazon AMZN outpacing estimates on top and bottom lines. This morning, CBOE Global CBOE beat earnings estimates by 2 cents to $1.78 per share (above the $1.67 per share reported in the year-ago quarter), notching its fourth-straight earnings beat on flat revenues (-0.02%) to $467.1 million (up from $424.1 million a year ago).
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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 Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 earnings season continues, although the fireworks ignited from the big marquee names have largely passed for the week, with Apple AAPL and Amazon AMZN outpacing estimates on top and bottom lines. Pre-market futures were essentially flat directly prior to the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS): 187K new jobs were created in the month of July, below the 200K expected but 2000 positions more than the downwardly revised 185K for June, which now marks the cycle lows going back to December of 2020, which greeted us with a loss of -268K jobs.
|
Q2 earnings season continues, although the fireworks ignited from the big marquee names have largely passed for the week, with Apple AAPL and Amazon AMZN outpacing estimates on top and bottom lines. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report To read this article on Zacks.com click here. Pre-market futures were essentially flat directly prior to the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS): 187K new jobs were created in the month of July, below the 200K expected but 2000 positions more than the downwardly revised 185K for June, which now marks the cycle lows going back to December of 2020, which greeted us with a loss of -268K jobs.
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14475.0
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2023-08-04 00:00:00 UTC
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Unemployment Rate Drops in July
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AAPL
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https://www.nasdaq.com/articles/unemployment-rate-drops-in-july
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nan
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nan
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Pre-market futures were essentially flat directly prior to the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS): 187K new jobs were created in the month of July, below the 200K expected but 2000 positions more than the downwardly revised 185K for June, which now marks the cycle lows going back to December of 2020, which greeted us with a loss of -268K jobs. The Unemployment Rate ticked down to 3.5%, below the 3.6% expected and posted last month. Cycle lows here are 3.4%, most recently in April of this year.
Hourly Wages, however, ticked up from expectations to +0.4%, matching last month and the previous three months. Year over year, this figure remains elevated at +4.4%, 20 basis points (bps) higher than analysts were looking for. The last time we were sub-4% on year-over-year wage growth was back in June 2021. This number points to sticky inflation in the economy, despite a lower total of jobs created overall. Revisions to the previous two months were -24K for June and -25K for May, to 209K.
Labor Force Participation remained static at 62.6% — this is a stubborn metric that appeared to be ramping up to pre-Covid levels but have stalled in recent months. For a frame of reference, February 2020 saw this rate come in at 63.3%; we have yet to regain that level. A lower Average Workweek, at 34.3 hours, equals the May low. And the U-6 (aka “real unemployment”) fell to 6.7%, the slimmest print since the cycle low 6.5% in December of last year.
Unlike months in the past, new job fills were not dominated by one or two industries — we saw decent growth along a wider swath of the overall economy: Construction grew by +19K new jobs, +17K came from Leisure and Hospitality (which registered a whopping +201K in Wednesday’s private sector report from ADP, so likely revisions in the coming months will help smooth this out) and +15K jobs were created in the Government sector. Manufacturing dropped -9K last month.
Q2 earnings season continues, although the fireworks ignited from the big marquee names have largely passed for the week, with Apple AAPL and Amazon AMZN outpacing estimates on top and bottom lines. This morning, CBOE Global CBOE beat earnings estimates by 2 cents to $1.78 per share (above the $1.67 per share reported in the year-ago quarter), notching its fourth-straight earnings beat on flat revenues (-0.02%) to $467.1 million (up from $424.1 million a year ago). Shares are up modestly in today’s pre-market, but only +11.6% year to date, underperforming the S&P 500’s +17.3%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : 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.
|
Q2 earnings season continues, although the fireworks ignited from the big marquee names have largely passed for the week, with Apple AAPL and Amazon AMZN outpacing estimates on top and bottom lines. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report To read this article on Zacks.com click here. Pre-market futures were essentially flat directly prior to the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS): 187K new jobs were created in the month of July, below the 200K expected but 2000 positions more than the downwardly revised 185K for June, which now marks the cycle lows going back to December of 2020, which greeted us with a loss of -268K jobs.
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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 Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 earnings season continues, although the fireworks ignited from the big marquee names have largely passed for the week, with Apple AAPL and Amazon AMZN outpacing estimates on top and bottom lines. This morning, CBOE Global CBOE beat earnings estimates by 2 cents to $1.78 per share (above the $1.67 per share reported in the year-ago quarter), notching its fourth-straight earnings beat on flat revenues (-0.02%) to $467.1 million (up from $424.1 million a year ago).
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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 Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report To read this article on Zacks.com click here. Q2 earnings season continues, although the fireworks ignited from the big marquee names have largely passed for the week, with Apple AAPL and Amazon AMZN outpacing estimates on top and bottom lines. Pre-market futures were essentially flat directly prior to the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS): 187K new jobs were created in the month of July, below the 200K expected but 2000 positions more than the downwardly revised 185K for June, which now marks the cycle lows going back to December of 2020, which greeted us with a loss of -268K jobs.
|
Q2 earnings season continues, although the fireworks ignited from the big marquee names have largely passed for the week, with Apple AAPL and Amazon AMZN outpacing estimates on top and bottom lines. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report To read this article on Zacks.com click here. Pre-market futures were essentially flat directly prior to the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS): 187K new jobs were created in the month of July, below the 200K expected but 2000 positions more than the downwardly revised 185K for June, which now marks the cycle lows going back to December of 2020, which greeted us with a loss of -268K jobs.
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14476.0
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2023-08-04 00:00:00 UTC
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Stocks Rally as Bond Yields Fall on Smaller U.S. Payrolls and Fed Comments
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AAPL
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https://www.nasdaq.com/articles/stocks-rally-as-bond-yields-fall-on-smaller-u.s.-payrolls-and-fed-comments
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.44%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.52%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.43%.
Stocks this morning are moderately higher. A smaller-than-expected increase in U.S. Jul nonfarm payrolls knocked T-note yields lower and boosted stocks. Stocks extended their gains as T-note yields fell even further on dovish comments from Atlanta Fed President Bostic, who said there is no need to raise interest rates further to ease inflation.
An +11% jump in Amazon.com is boosting technology stocks and lifting the overall market. However, gains are muted, with Apple down more than -2% after delivering a lackluster outlook for its fourth quarter.
U.S. Jul nonfarm payrolls rose +187,000, below expectations of +200,000, which was slightly dovish for Fed policy. The Jul unemployment rate unexpectedly fell -0.1 to 3.5%, showing a stronger labor market than expectations of 3.6%.
U.S. Jul average hourly earnings rose +0.4% m/m and +4.4% y/y, stronger than expectations of +0.3% m/m and +4.2% y/y, which was hawkish for Fed policy.
Fed comments today were dovish for Fed policy and bullish for stocks. Atlanta Fed President Bostic said U.S. employment gains are slowing in an orderly manner, and there is no need to raise interest rates further to ease inflation. Also, Chicago Fed President Goolsbee said we've been getting promising numbers on inflation, and the Fed should start thinking about how long to hold interest rates in restrictive territory.
The markets are discounting the odds at 12% for a +25 bp rate hike at the September 20 FOMC meeting, falling from 17% on Thursday.
Global bond yields are lower. The 10-year T-note yield fell back from an 8-3/4 month high of 4.204% and is down -7.1 bp at 4.105%. The 10-year German bund yield fell from a 3-week high of 2.651% and is down -3.1 bp at 2.574%. The 10-year UK gilt yield fell back from a 2-1/2 week high of 4.499% and is down -6.8 bp at 4.403%.
Overseas stock markets are higher. The Euro Stoxx 50 is up +0.64%. China’s Shanghai Composite Index today closed up +0.23%. Japan’s Nikkei Stock Index closed up +0.10%.
Today’s stock movers…
Amazon.com (AMZN) is up more than +11% to lead gainers in the S&P 500 after reporting Q2 net sales of $134.38 billion, stronger than the consensus of $131.63 billion, and forecasting Q3 net sales of $128 billion-$143 billion, above the consensus of $138.3 billion.
Atlassian (TEAM) is up more than +18% to lead gainers in the Nasdaq 100 after reporting Q4 revenue of $939.1 million, better than the consensus of $915.7 million, and forecast Q1 revenue of $950 million-$970 million, above the consensus of $955.7 million.
Booking Holdings (BKNG) is up more than +9% after reporting Q2 revenue of $5.46 billion, stronger than the consensus of $5.17 billion. That prompted CFRA to upgrade the stock to buy from hold.
Gen Digital (GEN) is up more than +7% after reporting Q1 adjusted EPS of 47 cents, better than the consensus of 46 cents.
DaVita (DVA) is up more than +7% after reporting Q2 operating income of $405.3 million, stronger than the consensus of $381 million, and raising its full-year free cash flow estimate to $850 million-$1.10 billion from a prior view of $750 million-$1.0 billion, better than the consensus of $899.5 million.
Amgen (AMGN) is up more than +5% to lead gainers in the Dow Jones Industrials after forecasting Q2 adjusted EPS of $5.00, well above the consensus of $4.48, and raising its full-year adjusted EPS estimate to $17.80-$18.80 from a previous estimate of $17.60-$18.70.
Stryker (SYK) is up more than +4% after reporting Q2 net sales of $5.00 billion, better than the consensus of $4.82 billion.
Cboe Global Markets (CBOE) is up more than +3% after reporting Q2 adjusted Ebitda of $293.3 million, better than the consensus of $289.1 million.
Datadog (DDOG) is up more than +3% after Stifel raised its price target on the stock to $115 from $101.
Cybersecurity stocks are sinking today after Fortinet reported Q2 billings of $1.54 billion, below the consensus of $1.59 billion, and cut its full-year billings forecast to $6.49 billion-$6.59 billion from a previous estimate of $6.75 billion-$6.81 billion, well below the consensus of $6.79 billion. As a result, Fortinet (FTNT) is down more than -23% to lead losers in the S&P 500 and Nasdaq 100. Also, Palo Alto Networks (PANW) is down more than -8%, and Crowdstrike Holdings (CRWD) and Zscaler (ZS) are down more than -4%
ResMed (RMD) is down more than -16% after reporting Q4 adjusted EPS of $1.60, weaker than the consensus of $1.70.
Microchip Technology (MCHP) is down more than -7% after forecasting Q2 net sales of $2.22 billion-$2.31 billion, the midpoint below the consensus of $2.28 billion.
Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion and said Q4 year-over-year performance to be similar to Q3.
Ventas (VTR) is down more than -4% after forecasting full-year normalized FFO/share of $2.92 to $3.00, the midpoint below the consensus of $3.00.
Redfin (RDFN) is down more than -21% after reporting a Q2 Ebitda loss of -$6.93 million, a larger loss than the consensus of -$3.23 million, and forecast Q3 adjusted Ebitda of $4 million-$14 million, weaker than the consensus of $21.8 million.
Monster Beverage (MNST) is down more than -3% after reporting Q2 net sales of $1.85 billion, weaker than the consensus of $1.87 billion.
CSX Corp (CSX) is down more than -3% after announcing that Jamie Boychuk, executive vice president of operations, is leaving the company, and a search for a successor is ongoing.
Across the markets…
September 10-year T-notes (ZNU23) today are up +20 ticks, and the 10-year T-note yield is down -7.1 bp at 4.105%. Sep T-notes today recovered from an 8-3/4 month low and moved higher, and the 10-year T-note yield fell back from an 8-3/4 month high of 4.204% and moved lower. T-notes are climbing today after U.S. Jul nonfarm payrolls rose more than expected. Gains accelerated after Atlanta Fed President Bostic said U.S. employment gains are slowing in an orderly manner, and there is no need to raise interest rates further to ease inflation. On the negative side, the U.S. Jul unemployment rate unexpectedly declined, and Jul average hourly earnings rose more than expected.
The dollar index (DXY00) today is down by -0.65%. The dollar is under pressure today from falling T-note yields after U.S. Jul nonfarm payrolls rose less than expected. Losses in the dollar accelerated after Atlanta Fed President Bostic said there is no need to raise interest rates further to ease inflation.
EUR/USD (^EURUSD) today is up by +0.70%. A slump in the dollar today has sparked short covering in the euro. EUR/USD also rose after German Jun factory orders unexpectedly rose by the most in 3 years, bolstering optimism in the Eurozone economy.
Eurozone Jun retail sales unexpectedly fell -0.3% m/m, weaker than expectations of +0.2% m/m.
German Jun factory orders unexpectedly rose +7.0% m/m, stronger than expectations of -2.0% m/m and the biggest increase in 3 years.
The German Jul S&P construction PMI fell -0.4 to 41.0, the steepest pace of contraction in 2-1/2 years.
USD/JPY (^USDJPY) is down by -0.67%. The yen erased overnight gains and turned lower after T-note yields tumbled on a smaller-than-expected increase in U.S. Jul nonfarm payrolls and dovish Fed comments. The yen today initially moved lower as Japanese government bond yields fell after the BOJ on Thursday announced an unscheduled debt-purchase operation for the second time this week to push bond yields lower.
October gold (GCV3) today is up +10.5 (+0.54%), and Sep silver (SIU23) is up +0.073 (+0.31%). Precious metals prices this morning rebounded from early losses and are moderately higher. Gold and silver recovered from 3-week lows this morning and moved higher after the dollar and T-note yields fell on a smaller-than-expected increase in U.S. Jul nonfarm payrolls. Metals extended their gains after Atlanta Fed President Bostic said there is no need for the Fed to raise interest rates further to ease inflation. On the bearish side, fund liquidation in gold continues after long gold holdings in ETFs fell to a new 3-year low on Thursday. Also, a rally in stocks today has curbed the safe-haven demand for precious metals.
More Stock Market News from Barchart
Is the Sky Falling for the S&P 500 Index? Recent Analyst Upgrades for CarParts.com (PRTS) Suggests Investors Must Think Fast Should You Buy the Dip in Nike Stock? Markets Today: Stocks Climb on Strong Amazon Earnings and Lower Bond Yields
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion and said Q4 year-over-year performance to be similar to Q3. Stocks extended their gains as T-note yields fell even further on dovish comments from Atlanta Fed President Bostic, who said there is no need to raise interest rates further to ease inflation. The yen erased overnight gains and turned lower after T-note yields tumbled on a smaller-than-expected increase in U.S. Jul nonfarm payrolls and dovish Fed comments.
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Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion and said Q4 year-over-year performance to be similar to Q3. Cybersecurity stocks are sinking today after Fortinet reported Q2 billings of $1.54 billion, below the consensus of $1.59 billion, and cut its full-year billings forecast to $6.49 billion-$6.59 billion from a previous estimate of $6.75 billion-$6.81 billion, well below the consensus of $6.79 billion. Sep T-notes today recovered from an 8-3/4 month low and moved higher, and the 10-year T-note yield fell back from an 8-3/4 month high of 4.204% and moved lower.
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Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion and said Q4 year-over-year performance to be similar to Q3. Stocks extended their gains as T-note yields fell even further on dovish comments from Atlanta Fed President Bostic, who said there is no need to raise interest rates further to ease inflation. Today’s stock movers… Amazon.com (AMZN) is up more than +11% to lead gainers in the S&P 500 after reporting Q2 net sales of $134.38 billion, stronger than the consensus of $131.63 billion, and forecasting Q3 net sales of $128 billion-$143 billion, above the consensus of $138.3 billion.
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Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion and said Q4 year-over-year performance to be similar to Q3. The dollar is under pressure today from falling T-note yields after U.S. Jul nonfarm payrolls rose less than expected. EUR/USD (^EURUSD) today is up by +0.70%.
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14477.0
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2023-08-04 00:00:00 UTC
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Dow Movers: AAPL, AMGN
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-aapl-amgn-0
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nan
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nan
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In early trading on Friday, shares of Amgen (AMGN) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.1%. Year to date, Amgen has lost about 8.5% of its value.
And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 2.6%. Apple is showing a gain of 43.4% looking at the year to date performance.
Two other components making moves today are Verizon Communications (VZ), trading down 0.6%, and Microsoft Corporation (MSFT), trading up 1.9% on the day.
VIDEO: Dow Movers: AAPL, AMGN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 2.6%. VIDEO: Dow Movers: AAPL, AMGN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Amgen (AMGN) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.1%.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 2.6%. VIDEO: Dow Movers: AAPL, AMGN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Amgen (AMGN) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.1%.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 2.6%. VIDEO: Dow Movers: AAPL, AMGN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Amgen (AMGN) topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.1%.
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And the worst performing Dow component thus far on the day is Apple (AAPL), trading down 2.6%. VIDEO: Dow Movers: AAPL, AMGN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple is showing a gain of 43.4% looking at the year to date performance.
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14478.0
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2023-08-04 00:00:00 UTC
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Tech Stock Rally Pauses Despite Stellar Earnings Results
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AAPL
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https://www.nasdaq.com/articles/tech-stock-rally-pauses-despite-stellar-earnings-results
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nan
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nan
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The recent rally in technology stocks has lost momentum, despite a solid quarterly earnings reporting season. According to Bloomberg data, about 89% of the technology companies in the S&P 500 ($SPX) (SPY) that have reported earnings this reporting season have beaten estimates. However, those stocks fell an average of -0.8% the day after reporting earnings.
The faltering rally suggests that the good earnings news is already priced into the market. Carnegie Investment Counsel said, “You need to have results that are just incredible for that to be sustained.” This year’s stock gains have lifted valuations toward levels last seen when interest rates were near zero, and “it makes sense that we are seeing a pause and a pullback this season.”
The Nasdaq 100 Stock Index ($IUXX) (QQQ) has gained 40% this year, pushing valuations well above the index’s 10-year average at about 25 times projected profits. However, the Nasdaq is down more than -3% from its peak on July 18, when earnings season was just getting started. Apple (AAPL) is down more than -2% today despite reporting better-than-expected quarterly earnings estimates late Thursday. Bloomberg Intelligence said, “A lot of these earnings beats were priced in, and as a result, there’s not a lot of excitement.”
A surge in bond yields this week is a significant obstacle for the technology stock rally to continue. The 10-year T-note yield jumped above 4% this week to a nearly 9-month high today of 4.204%, amid strong U.S economic news and focus on the expanding fiscal deficits in the U.S. after Fitch Ratings cut the sovereign credit rating of the U.S. by one level to AA+ from AAA. Technology stocks are more sensitive to interest rates, which are used to determine the present value of profits expected in the future.
The positive earnings beats this quarterly reporting season have prompted many analysts to raise estimates for the second half of the year. According to Bloomberg data, technology sector profits for 2023 are now projected to fall -7.9% compared with an -8.2% expected decline a month ago, before earnings season got underway. Bloomberg Intelligence believes a pause in the rally could set the market up for more gains in the near future as earnings estimates continue to climb, and “if tech multiples are able to moderate a bit, it could go a long way to helping investor sentiment in the group, given how skittish everybody is about valuations right now.”.
More Stock Market News from Barchart
Stocks Rally as Bond Yields Fall on Smaller U.S. Payrolls and Fed Comments Is the Sky Falling for the S&P 500 Index? Recent Analyst Upgrades for CarParts.com (PRTS) Suggests Investors Must Think Fast Should You Buy the Dip in Nike Stock?
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is down more than -2% today despite reporting better-than-expected quarterly earnings estimates late Thursday. Carnegie Investment Counsel said, “You need to have results that are just incredible for that to be sustained.” This year’s stock gains have lifted valuations toward levels last seen when interest rates were near zero, and “it makes sense that we are seeing a pause and a pullback this season.” The Nasdaq 100 Stock Index ($IUXX) (QQQ) has gained 40% this year, pushing valuations well above the index’s 10-year average at about 25 times projected profits. According to Bloomberg data, technology sector profits for 2023 are now projected to fall -7.9% compared with an -8.2% expected decline a month ago, before earnings season got underway.
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Apple (AAPL) is down more than -2% today despite reporting better-than-expected quarterly earnings estimates late Thursday. Carnegie Investment Counsel said, “You need to have results that are just incredible for that to be sustained.” This year’s stock gains have lifted valuations toward levels last seen when interest rates were near zero, and “it makes sense that we are seeing a pause and a pullback this season.” The Nasdaq 100 Stock Index ($IUXX) (QQQ) has gained 40% this year, pushing valuations well above the index’s 10-year average at about 25 times projected profits. The positive earnings beats this quarterly reporting season have prompted many analysts to raise estimates for the second half of the year.
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Apple (AAPL) is down more than -2% today despite reporting better-than-expected quarterly earnings estimates late Thursday. The recent rally in technology stocks has lost momentum, despite a solid quarterly earnings reporting season. Carnegie Investment Counsel said, “You need to have results that are just incredible for that to be sustained.” This year’s stock gains have lifted valuations toward levels last seen when interest rates were near zero, and “it makes sense that we are seeing a pause and a pullback this season.” The Nasdaq 100 Stock Index ($IUXX) (QQQ) has gained 40% this year, pushing valuations well above the index’s 10-year average at about 25 times projected profits.
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Apple (AAPL) is down more than -2% today despite reporting better-than-expected quarterly earnings estimates late Thursday. The recent rally in technology stocks has lost momentum, despite a solid quarterly earnings reporting season. According to Bloomberg data, about 89% of the technology companies in the S&P 500 ($SPX) (SPY) that have reported earnings this reporting season have beaten estimates.
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14479.0
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2023-08-04 00:00:00 UTC
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Apple's (AAPL) Q3 Earnings Beat Estimates, Revenues Decline Y/Y
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AAPL
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https://www.nasdaq.com/articles/apples-aapl-q3-earnings-beat-estimates-revenues-decline-y-y
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nan
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Apple AAPL reported third-quarter fiscal 2023 earnings of $1.26 per share, which beat the Zacks Consensus Estimate by 5.88% and increased 5% year over year.
Net sales decreased 1.4% year over year to $81.8 billion, which beat the Zacks Consensus Estimate by 0.54%. Unfavorable forex hurt revenues by almost 400 basis points (bps).
iPhone sales declined 2.4% from the year-ago quarter to $39.67 billion and accounted for 48.5% of total sales. iPhone sales missed the Zacks Consensus Estimate by 0.74%. Apple benefited from strong sales of the iPhone 14 and 14 Plus.
Services revenues grew 8.2% from the year-ago quarter to $21.21 billion and accounted for 25.9% of sales. The figure also beat the consensus mark by 1.76%.
Apple now has more than 1 billion paid subscribers across its Services portfolio, up 150 million year over year.
Apple Inc. Price, Consensus and EPS Surprise
Apple Inc. price-consensus-eps-surprise-chart | Apple Inc. Quote
The company is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade, as well as the launch of its high-yield savings account with Apple Card, helped in driving subscriber growth.
Apple’s fiscal third-quarter results benefited from strong growth in emerging markets like India, Mexico, Indonesia, the Philippines, Poland, Saudi Arabia, Turkey and the UAE.
Europe and Greater China Aids Top Line
Europe generated $20.21 billion in sales, up 4.8% on a year-over-year basis. The region accounted for 24.7% of total sales. Europe’s sales beat the consensus mark by 5.19%.
Greater China sales increased 7.9% from the year-ago quarter to $15.76 billion, accounting for 19.3% of total sales. The figure beat the Zacks Consensus Estimate by 7.44%.
Rest of the Asia Pacific generated sales of $5.63 billion, down 8.5% year over year. The region accounted for 6.9% of total sales. The figure lagged the consensus mark by 5.8%.
America’s sales decreased 5.6% year over year to $35.38 billion and accounted for 39.8% of total sales. The figure missed the Zacks Consensus Estimate by 0.32%.
Japan’s sales of $4.82 billion beat our estimate of $6.11 billion, accounting for 5.9% of total sales. Japan’s sales lagged the consensus mark by 13.46%.
Top-Line Details
Product sales (74.1% of sales) decreased 4.4% year over year to $60.58 billion. Non-iPhone revenues (iPad, Mac and Wearables) decreased 7.8% on a combined basis.
iPad sales of $5.79 billion declined 19.8% year over year and accounted for 7.1% of total sales. The figure missed the Zacks Consensus Estimate by 7.18%.
Mac sales of $7.17 billion decreased 7.3% from the year-ago quarter and accounted for 8.4% of total sales. The figure beat the Zacks Consensus Estimate by 6.65%.
Wearables, Home and Accessories sales increased 2.5% year over year to $8.28 billion and accounted for 10.1% of total sales. The figure missed the consensus mark by 3.26%.
Apple Watch’s adoption rate continues to grow rapidly. More than two-thirds of the customers who purchased the Apple Watch during the reported quarter were first-time customers.
Operating Details
Gross margin of 44.5% expanded 130 bps on a year-over-year basis.
Moreover, the gross margin expanded 20 bps sequentially due to cost savings and a favorable mix shift toward services.
Products’ gross margin contracted 130 bps sequentially to 35.4%. Services’ gross margin was 70.5%, down 50 bps sequentially.
Operating expenses rose 4.7% year over year to $13.42 billion due to higher research & development expenses, which increased 9.5% year over year. Selling, general & administrative expenses decreased 0.6% year over year.
Operating margin expanded 30 bps on a year-over-year basis to 28.1%.
Balance Sheet
As of Jun 30, 2023, cash & marketable securities were $167.08 billion compared with $166.33 billion as of Mar 31, 2023.
Term debt, as of Jun 30, 2023, was $105.29 billion, down from $107.62 billion as of Mar 31, 2023.
Apple returned more than $24 billion in the reported quarter through dividend payouts ($3.8 billion) and share repurchases ($18 billion).
Guidance
Apple did not provide revenue guidance for the fourth quarter of fiscal 2023.
It expects the September quarter’s year-over-year revenue growth to be similar to that of the June quarter due to unfavorable forex of roughly 2%.
Apple expects iPhone and Services’ year-over-year performance to accelerate from the June quarter. Revenues for both Mac and iPad are expected to decline by double digits year-over-year due to difficult comparison, particularly for the Mac.
Gross margin is expected between 44% and 45% in the fiscal fourth quarter. Operating expenses are expected between $13.5 billion and $13.7 billion.
Zacks Rank & Stocks to Consider
Currently, Apple has a Zacks Rank #3 (Hold).
BILL Holdings BILL, CACI International CACI and Cisco Systems CSCO are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BILL Holdings shares have gained 7.8% year to date. BILL is set to report its fourth-quarter fiscal 2023 results on Aug 17.
CACI International shares have gained 18% year to date. CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9.
Cisco Systems shares have returned 10.4% year to date. CSCO is set to report its fourth-quarter fiscal 2023 results on Aug 16.
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 >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL reported third-quarter fiscal 2023 earnings of $1.26 per share, which beat the Zacks Consensus Estimate by 5.88% and increased 5% year over year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple’s fiscal third-quarter results benefited from strong growth in emerging markets like India, Mexico, Indonesia, the Philippines, Poland, Saudi Arabia, Turkey and the UAE.
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Apple AAPL reported third-quarter fiscal 2023 earnings of $1.26 per share, which beat the Zacks Consensus Estimate by 5.88% and increased 5% year over year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report To read this article on Zacks.com click here. BILL Holdings BILL, CACI International CACI and Cisco Systems CSCO are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy) at present.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL reported third-quarter fiscal 2023 earnings of $1.26 per share, which beat the Zacks Consensus Estimate by 5.88% and increased 5% year over year. Net sales decreased 1.4% year over year to $81.8 billion, which beat the Zacks Consensus Estimate by 0.54%.
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Apple AAPL reported third-quarter fiscal 2023 earnings of $1.26 per share, which beat the Zacks Consensus Estimate by 5.88% and increased 5% year over year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report To read this article on Zacks.com click here. Japan’s sales of $4.82 billion beat our estimate of $6.11 billion, accounting for 5.9% of total sales.
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14480.0
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2023-08-04 00:00:00 UTC
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US STOCKS-Wall St rises on Amazon boost; bond yields fall
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-amazon-boost-bond-yields-fall
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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
U.S. jobs growth slows in July
IPhone sales slump weighs on Apple
Amazon sees bright Q3 on resilient cloud sales, shopping trends
Fortinet drops on forecast cut
Indexes up: Dow 0.53%, S&P 0.57%, Nasdaq 0.77%
Updated at 11:30 a.m. ET/1530 GMT
By Shubham Batra and Bansari Mayur Kamdar
Aug 4 (Reuters) - Wall Street rose and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains, while Amazon's stellar earnings countered Apple's tepid sales forecast.
Nonfarm payrolls increased by 187,000 jobs last month, Labor Department data showed. Data for June additions was revised lower to 185,000 jobs, from 209,000 reported previously.
Average hourly earnings grew 0.4% in July, unchanged from the previous month, but a tad higher than expectations, taking the year-on-year increase in wages to 4.4%.
The yield on the 10-year benchmark note US10YT=RR dipped on Friday after the jobs data, but still remained above 4%, partly boosting some megacap stocks.
"At this point in some ways the jobs data doesn't do much to the Fed. The drama is now pivoting from the Fed to the Treasury," said David Russell, vice president of market intelligence at TradeStation.
"The bigger issue is that the market is waking up to the fact that U.S. Treasury needs to issue a large amount of debt in the coming months and there could be upside pressure on the long end of the curve."
Giving solid boost to the S&P 500 index, Amazon.com shares AMZN.O surged 10.9% after the company issued an upbeat third-quarter outlook. Apple's shares AAPL.O shed 3.1% as the iPhone maker forecast a continued slide in sales.
Shares of peers Microsoft MSFT.O, Alphabet GOOGL.O and Snowflake SNOW.N rose between 1.3% and 4.6% after Amazon's cloud business segment beat sales estimates.
At 11:30 a.m. ET, the Dow Jones Industrial Average .DJI was up 185.08 points, or 0.53%, at 35,400.97, the S&P 500 .SPX was up 25.47 points, or 0.57%, at 4,527.36, and the Nasdaq Composite .IXIC was up 106.81 points, or 0.77%, at 14,066.53.
All three major indexes were on course to end the week lower, with the tech-heavy Nasdaq leading losses.
Stocks closed marginally lower on Thursday, weighed down by the last batch of economic data and some disappointing earnings.
Of the 422 companies in the S&P 500 that have reported quarterly earnings as of Friday, 79.1% have beat analysts' estimates, according to Refinitiv data.
Carl Icahn-owned investment firm Icahn EnterprisesIEP.O shed 24.8% after the company halved its quarterly payout, months after short-seller Hindenburg Research accused it of operating a "Ponzi-like" structure to pay dividends.
Fortinet FTNT.O dropped 23.8% after the cybersecurity firm cut its annual revenue forecast as spending from enterprise clients remained tight amid a turbulent economy.
Shares of Tupperware TUP.N, known for its plastic airtight storage containers and bowls, rallied 41.8% after the company finalized an agreement with its lenders to restructure its debt obligations in an effort to turn around the business.
Amgen AMGN.O gained 6.2% after it reported a higher quarterly profit on strong sales of its cholesterol, osteoporosis and other drugs.
DraftKings' DKNG.O shares surged 5.7% after the sports-betting firm raised its fiscal year 2023 revenue outlook.
Advancing issues outnumbered decliners by a 2.97-to-1 ratio on the NYSE and by a 1.62-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and 5 new lows, while the Nasdaq recorded 42 new highs and 55 new lows.
Monthly change in U.S. jobs https://tmsnrt.rs/3OFX0Zi
(Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta and Shinjini Ganguli)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's shares AAPL.O shed 3.1% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.53%, S&P 0.57%, Nasdaq 0.77% Updated at 11:30 a.m. ET/1530 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - Wall Street rose and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains, while Amazon's stellar earnings countered Apple's tepid sales forecast. Carl Icahn-owned investment firm Icahn EnterprisesIEP.O shed 24.8% after the company halved its quarterly payout, months after short-seller Hindenburg Research accused it of operating a "Ponzi-like" structure to pay dividends.
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Apple's shares AAPL.O shed 3.1% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.53%, S&P 0.57%, Nasdaq 0.77% Updated at 11:30 a.m. ET/1530 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - Wall Street rose and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains, while Amazon's stellar earnings countered Apple's tepid sales forecast. Shares of peers Microsoft MSFT.O, Alphabet GOOGL.O and Snowflake SNOW.N rose between 1.3% and 4.6% after Amazon's cloud business segment beat sales estimates.
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Apple's shares AAPL.O shed 3.1% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.53%, S&P 0.57%, Nasdaq 0.77% Updated at 11:30 a.m. ET/1530 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - Wall Street rose and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains, while Amazon's stellar earnings countered Apple's tepid sales forecast. Of the 422 companies in the S&P 500 that have reported quarterly earnings as of Friday, 79.1% have beat analysts' estimates, according to Refinitiv data.
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Apple's shares AAPL.O shed 3.1% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.53%, S&P 0.57%, Nasdaq 0.77% Updated at 11:30 a.m. ET/1530 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - Wall Street rose and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains, while Amazon's stellar earnings countered Apple's tepid sales forecast. "At this point in some ways the jobs data doesn't do much to the Fed.
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14481.0
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2023-08-04 00:00:00 UTC
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July Job Market Data Gives the Signal to Buy ‘Everything’
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AAPL
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https://www.nasdaq.com/articles/july-job-market-data-gives-the-signal-to-buy-everything
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This week, the seemingly unstoppable stock market rally hit some speed bumps. Now, though, it seems like those hiccups are already in the rearview mirror. And it’s time for stocks to rally again.
The bullish inflection point came this morning with July’s job market report. The data broadly underscored that we’re in a “Goldilocks” situation. The economy isn’t cold enough for a recession to be around the corner, but it also isn’t hot enough to warrant more rate hikes.
And that’s a bullish concoction that should inspire the stock market to keep roaring throughout the rest of the year.
Breaking Down the Job Market Data
Last month, the U.S. economy added 187,000 jobs, below estimates for 200,000 new jobs. And June’s job growth number was also revised lower. Perhaps most interestingly, it seems we’re right back to the same job growth we had throughout the 2010s, when we averaged 184,000 new jobs per month.
Clearly, this isn’t a labor market that’s “too hot.” Nor is it “too cold.” Instead, the current pace of job creation is a perfect balance of healthy and sustainable.
And it’s the same story with wages. Average hourly earnings rose 4.4% in July. They also rose 4.4% in June. Indeed, they’ve actually been rising between 4.3% and 4.7% since January. Wage growth has very clearly stabilized in the mid-4% range.
And that’s bullish because:
Mid-4% wage growth isn’t big enough to create an inflation problem.
Wage growth significantly decelerated throughout 2022 but is now stabilizing in 2023, providing support for renewed consumer spending over the next several quarters.
Of course, consumer spending accounts for 70% of U.S. GDP. If consumers start spending again because their wage growth is stabilizing (very likely), then the economy is primed to reaccelerate over the next year.
In other words, today’s job market data painted the picture of a U.S. economy that – after getting too hot in 2021, then too cold in 2022 – is finally settling in at a sustainable and healthy pace of growth.
The result? A so-called “Everything Rally” on Wall Street.
The Dow Jones, S&P 500, and Nasdaq all rallied. So did value stocks, growth stocks, large caps, small caps, and commodities. Even cryptos rallied.
It seems that the 2023 rally has returned.
The Final Word
That’s why I want to tell you about one of my favorite investments for this new bull market.
One great prospective investment is the very company that started this whole stock boom – OpenAI, the creator of ChatGPT.
Since ChatGPT’s launch in November 2022, the company’s valuation has doubled!
But that’s just the start.
I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest.
OpenAI represents the potential investment opportunity of a lifetime.
Too bad it is a startup that you can’t buy on a public exchange like a big stock…
Though I did manage to unearth an investment ‘loophole’ that allows you to take a stake in OpenAI now – before its highly anticipated IPO.
This is your chance to invest in the next big thing. 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 all about it.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The $1 Investment You MUST Take Advantage of Right Now
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The post July Job Market Data Gives the Signal to Buy ‘Everything’ 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. In other words, today’s job market data painted the picture of a U.S. economy that – after getting too hot in 2021, then too cold in 2022 – is finally settling in at a sustainable and healthy pace of growth. Too bad it is a startup that you can’t buy on a public exchange like a big stock… Though I did manage to unearth an investment ‘loophole’ that allows you to take a stake in OpenAI now – before its highly anticipated IPO.
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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. Breaking Down the Job Market Data Last month, the U.S. economy added 187,000 jobs, below estimates for 200,000 new jobs. If consumers start spending again because their wage growth is stabilizing (very likely), then the economy is primed to reaccelerate over the next year.
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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 week, the seemingly unstoppable stock market rally hit some speed bumps. Breaking Down the Job Market Data Last month, the U.S. economy added 187,000 jobs, below estimates for 200,000 new jobs.
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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. And it’s time for stocks to rally again. If consumers start spending again because their wage growth is stabilizing (very likely), then the economy is primed to reaccelerate over the next year.
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14482.0
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2023-08-04 00:00:00 UTC
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Daily Dividend Report: AAPL, NKE, UPS, ADP, MAR
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AAPL
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https://www.nasdaq.com/articles/daily-dividend-report%3A-aapl-nke-ups-adp-mar
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nan
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nan
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Apple's board of directors has declared a cash dividend of $0.24 per share of the Company's common stock. The dividend is payable on August 17, 2023 to shareholders of record as of the close of business on August 14, 2023.
NIKE (NKE) has declared a quarterly cash dividend of $0.340 per share on the Company's outstanding Class A and Class B Common Stock payable on October 2, 2023, to shareholders of record at the close of business September 5, 2023.
UPS (UPS) announced its regular quarterly dividend of $1.62 per share on all outstanding Class A and Class B shares. The dividend is payable August 31, 2023, to shareowners of record on August 14, 2023.
Automatic Data Processing (ADP) has declared a regular quarterly dividend of $1.25 per share payable October 1, 2023 to shareholders of record on September 8, 2023.
Marriott International (MAR) declared a quarterly cash dividend of 52 cents per share of common stock. The dividend is payable on September 29, 2023, to shareholders of record as of the close of business on August 17, 2023.
VIDEO: Daily Dividend Report: AAPL, NKE, UPS, ADP, MAR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Daily Dividend Report: AAPL, NKE, UPS, ADP, MAR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple's board of directors has declared a cash dividend of $0.24 per share of the Company's common stock. Automatic Data Processing (ADP) has declared a regular quarterly dividend of $1.25 per share payable October 1, 2023 to shareholders of record on September 8, 2023.
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VIDEO: Daily Dividend Report: AAPL, NKE, UPS, ADP, MAR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. NIKE (NKE) has declared a quarterly cash dividend of $0.340 per share on the Company's outstanding Class A and Class B Common Stock payable on October 2, 2023, to shareholders of record at the close of business September 5, 2023. UPS (UPS) announced its regular quarterly dividend of $1.62 per share on all outstanding Class A and Class B shares.
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VIDEO: Daily Dividend Report: AAPL, NKE, UPS, ADP, MAR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The dividend is payable on August 17, 2023 to shareholders of record as of the close of business on August 14, 2023. NIKE (NKE) has declared a quarterly cash dividend of $0.340 per share on the Company's outstanding Class A and Class B Common Stock payable on October 2, 2023, to shareholders of record at the close of business September 5, 2023.
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VIDEO: Daily Dividend Report: AAPL, NKE, UPS, ADP, MAR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. NIKE (NKE) has declared a quarterly cash dividend of $0.340 per share on the Company's outstanding Class A and Class B Common Stock payable on October 2, 2023, to shareholders of record at the close of business September 5, 2023. The dividend is payable on September 29, 2023, to shareholders of record as of the close of business on August 17, 2023.
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14483.0
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2023-08-04 00:00:00 UTC
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Morgan Stanley Maintains Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/morgan-stanley-maintains-apple-aapl-overweight-recommendation-2
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nan
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nan
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Fintel reports that on August 4, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 9.18% Upside
As of August 1, 2023, the average one-year price target for Apple is 198.70. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents an increase of 9.18% from its latest reported closing price of 181.99.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6387 funds or institutions reporting positions in Apple. This is a decrease of 23 owner(s) or 0.36% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. Total shares owned by institutions decreased in the last three months by 2.05% to 9,903,041K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.79% 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 2.94% 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 2.19% 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 1.80% 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 1.48% 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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Fintel reports that on August 4, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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14484.0
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2023-08-04 00:00:00 UTC
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GLOBAL MARKETS-Wall St extends gains on slowing but strong US labor market
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AAPL
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https://www.nasdaq.com/articles/global-markets-wall-st-extends-gains-on-slowing-but-strong-us-labor-market
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nan
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nan
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By Lawrence Delevingne and Elizabeth Howcroft
Aug 4 (Reuters) - U.S. stocks were higher and the U.S. dollar and Treasury yields lower after a new government jobs report showed a slowing, but still tight U.S. labor market.
Nonfarm payrolls increased by 187,000 jobs last month, the Labor Department said in its closely watched employment report on Friday, slightly below expectations of 200,000 jobs. At the same time, the unemployment rate fell to 3.5% from 3.6% in June.
Randy Frederick, managing director of trading and derivatives at Charles Schwab in Austin, Texas, said the mixed jobs report "plays into the soft landing, or the no-landing, narrative that the markets have been slowly trudging higher on."
“This ought to relieve some of that concern about the fact that the economy is too strong, which would cause concern that perhaps we get another rate hike in September," Frederick added.
The Dow Jones Industrial Average .DJI rose 0.35%, to 35,338.46 and the S&P 500 .SPX gained 0.59%, to 4,528.33.
The technology-heavy Nasdaq Composite .IXIC added about 1%, to 14,101.48. Two technology giants reported earnings after the market close on Thursday: Amazon AMZN.O showed sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter.
European stock indexes fell on Friday, The STOXX 600 was down 0.2% on the day .STOXX, while London's FTSE 100 .FTSE was down 0.3%.
The MSCI All-World index .MIWD00000PUS was last up 0.16% following the job news. It had been headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
Economists who have long been forecasting a downturn by the fourth quarter of this year are increasingly becoming convinced that the "soft-landing" scenario for the economy envisaged by the U.S. Federal Reserve is now possible.
Data also showed the number of Americans filing new claims for unemployment benefit rose slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remained tight.
The benchmark indices closed little changed the previous day after a choppy trading session, as investors weighed up the implications of rising Treasury yields along with the latest batch of economic data and earnings.
"It’s a very fragile market," said Francesco Sandrini, head of multi-asset strategy at Amundi.
The dollar meanwhile fell 0.5% against a basket of major currencies =USD, a reversal after two consecutive weekly gains.
It has made the most headway against some of this year's better-performing currencies, including the poundGBP=D3, under pressure since the Bank of England delivered a smaller rate rise than many had hoped for. Sterling was last up 0.5% on the day, still down about 0.5% in August.
China's yuan CNH=D3, last flat on the day, gained some respite after an official said on Friday the central bank would use policy tools flexibly to ensure reasonably ample liquidity in the banking system.
Investors have been hoping policymakers will deliver more broad-based stimulus to boost the post-pandemic recovery as the world's second-largest economy struggles with weak demand at home and abroad.
U.S. Treasury yields dropped slightly and then pared back losses, after jobs data on Friday showing the U.S. economy maintained a moderate pace of job growth in July.
The yield on 10-year Treasury notes US10YT=RR was down 6.8 basis points to 4.121%. 30-year US30YT=RR yields were down 2.9 basis points to 4.275%.
Rating agency Fitch this week surprised markets by stripping the United States of its prized triple-A credit rating and cited the country's deteriorating fiscal position as one of the key drivers, thrusting the government's finances into the spotlight.
Earlier in the week, the U.S. Treasury said it expects to borrow just over $1 trillion in the third quarter of this year alone, $273 billion more than its May estimate.
Oil prices headed for a sixth straight weekly gain, driven by the prospect of reduced supply from Saudi Arabia and Russia. U.S. crude CLc1 rose 0.33% to $81.82 per barrel and Brent LCOc1 was at $85.46, up 0.38% on the day.
World FX rates YTD http://tmsnrt.rs/2egbfVh
(Reporting by Lawrence Delevingne in Boston and Amanda Cooper and Elizabeth Howcroft in London. Additional reporting by Ankur Banerjee and Sruthi Shankar; Editing by Sharon Singleton )
((lawrence.delevingne@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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Two technology giants reported earnings after the market close on Thursday: Amazon AMZN.O showed sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Lawrence Delevingne and Elizabeth Howcroft Aug 4 (Reuters) - U.S. stocks were higher and the U.S. dollar and Treasury yields lower after a new government jobs report showed a slowing, but still tight U.S. labor market. Randy Frederick, managing director of trading and derivatives at Charles Schwab in Austin, Texas, said the mixed jobs report "plays into the soft landing, or the no-landing, narrative that the markets have been slowly trudging higher on."
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Two technology giants reported earnings after the market close on Thursday: Amazon AMZN.O showed sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Lawrence Delevingne and Elizabeth Howcroft Aug 4 (Reuters) - U.S. stocks were higher and the U.S. dollar and Treasury yields lower after a new government jobs report showed a slowing, but still tight U.S. labor market. U.S. Treasury yields dropped slightly and then pared back losses, after jobs data on Friday showing the U.S. economy maintained a moderate pace of job growth in July.
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Two technology giants reported earnings after the market close on Thursday: Amazon AMZN.O showed sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Lawrence Delevingne and Elizabeth Howcroft Aug 4 (Reuters) - U.S. stocks were higher and the U.S. dollar and Treasury yields lower after a new government jobs report showed a slowing, but still tight U.S. labor market. It had been headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
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Two technology giants reported earnings after the market close on Thursday: Amazon AMZN.O showed sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Lawrence Delevingne and Elizabeth Howcroft Aug 4 (Reuters) - U.S. stocks were higher and the U.S. dollar and Treasury yields lower after a new government jobs report showed a slowing, but still tight U.S. labor market. It had been headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
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14485.0
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2023-08-04 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-7
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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14486.0
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2023-08-04 00:00:00 UTC
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Technology Sector Update for 08/04/2023: TEAM, NET, AAPL, XLK, XSD
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-08-04-2023%3A-team-net-aapl-xlk-xsd
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nan
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nan
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Technology stocks were flat to lower pre-bell Friday as the Technology Select Sector SPDR Fund (XLK) was 0.3% lower and SPDR S&P Semiconductor ETF (XSD) was inactive.
Atlassian (TEAM) was rallying by over 20% after it reported fiscal Q4 non-GAAP diluted earnings of $0.57 per share, up from $0.27 a year earlier. Analysts surveyed by Capital IQ expected $0.45.
Cloudflare (NET) was up more than 10% after it reported Q2 non-GAAP net income of $0.10 per diluted share, compared with break-even results a year earlier. Analysts polled by Capital IQ expected $0.07.
Apple (AAPL) was slipping 3% after it posted fiscal Q3 revenue of $81.80 billion, down from $82.96 billion a year ago. The company also expects fiscal Q4 revenue for its Mac and iPad products to fall by double-digits year over year.
The views and 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) was slipping 3% after it posted fiscal Q3 revenue of $81.80 billion, down from $82.96 billion a year ago. Technology stocks were flat to lower pre-bell Friday as the Technology Select Sector SPDR Fund (XLK) was 0.3% lower and SPDR S&P Semiconductor ETF (XSD) was inactive. Atlassian (TEAM) was rallying by over 20% after it reported fiscal Q4 non-GAAP diluted earnings of $0.57 per share, up from $0.27 a year earlier.
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Apple (AAPL) was slipping 3% after it posted fiscal Q3 revenue of $81.80 billion, down from $82.96 billion a year ago. Atlassian (TEAM) was rallying by over 20% after it reported fiscal Q4 non-GAAP diluted earnings of $0.57 per share, up from $0.27 a year earlier. Cloudflare (NET) was up more than 10% after it reported Q2 non-GAAP net income of $0.10 per diluted share, compared with break-even results a year earlier.
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Apple (AAPL) was slipping 3% after it posted fiscal Q3 revenue of $81.80 billion, down from $82.96 billion a year ago. Atlassian (TEAM) was rallying by over 20% after it reported fiscal Q4 non-GAAP diluted earnings of $0.57 per share, up from $0.27 a year earlier. Cloudflare (NET) was up more than 10% after it reported Q2 non-GAAP net income of $0.10 per diluted share, compared with break-even results a year earlier.
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Apple (AAPL) was slipping 3% after it posted fiscal Q3 revenue of $81.80 billion, down from $82.96 billion a year ago. Technology stocks were flat to lower pre-bell Friday as the Technology Select Sector SPDR Fund (XLK) was 0.3% lower and SPDR S&P Semiconductor ETF (XSD) was inactive. Atlassian (TEAM) was rallying by over 20% after it reported fiscal Q4 non-GAAP diluted earnings of $0.57 per share, up from $0.27 a year earlier.
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14487.0
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2023-08-04 00:00:00 UTC
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Daily Markets: Apple, Amazon, and Jobs Report Leads the Way Today
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AAPL
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https://www.nasdaq.com/articles/daily-markets-apple-amazon-and-jobs-report-leads-the-way-today
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nan
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nan
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Today’s Big Picture
Asia-Pacific equity markets finished the last trading day of the week on a positive note led by gains in China’s Shanghai Composite (+1.8%), Hong Kong’s Hang Seng (+0.6%), and India’s Sensex (+0.7%). European markets are mixed in midday trading and U.S. equity futures point to a positive market open later this morning led by post-earnings gains in Amazon (AMZN) shares, which account for 3.0% of the S&P 500 and 5.1% of the Nasdaq-100.
Before the market opens, investors will be reviewing another key piece of July economic data, looking for further support for the soft-landing narrative that has been driving the market. Amid growing optimism about the economic outlook, this week Bank of America (BAC) became the first large Wall Street bank to officially reverse its call for a recession. At 8:30 AM ET, the Labor Department released the July Employment Report, which showed nonfarm payrolls growing by 187,000, fewer than the 200,000 expected. Wage data showed average hourly earnings up 4.4%, higher than expectations of 4.2%.
Data Download
International Economy
Factory orders in Germany unexpectedly rose by 7% month-over-month in June, easily exceeding market estimates of a 2% fall and accelerating from the downwardly revised +6.2% figure in May.
Retail sales in the Euro Area went down 0.3% MoM in June after a revised +0.6% in May, missing the market consensus forecast for +0.2%. On a YoY basis, June retail sales in the Euro Area fell 1.4%, better than the expected reading of -1.7% and May’s -2.4%.
Ahead of OPEC+ ministers meeting today to review the oil market, Saudi Arabia said it will extend a voluntary oil output cut of one million barrels per day (bpd) for a third month to include September, adding it could be extended beyond that or deepened. Deputy Prime Minister Alexander Novak said Russia would cut oil exports by 300,000 bpd in September.
Domestic Economy
As we laid about above, market watchers will be focused on this morning’s July Employment report, noting the pace of job creation during the month but also wage inflation and what that could mean for Fed monetary policy expectations.
Markets
Stocks continued to trade off yesterday although not as aggressively as Wednesday as Treasury yields ticked higher. The Nasdaq Composite declined 0.10%, the Dow gave back 0.19%, the S&P 500 slid 0.25% and the Russell 2000 closed 0.28% lower. Sectors were mostly lower with Utilities taking the biggest lump, down 2.28% followed by Real Estate which fell 1.37%. While the U.S. credit downgrade had some impact on sentiment, concerns about China's weakness and mixed forward guidance this earning season is starting to creep into the near-term outlook. Energy was the only bright spot as the sector rallied 1.01% on oil prices firming at $80 per barrel. In individual names, shares of covid era darling Clorox were bid up 8.96% after posting estimates beating revenues and EPS and guiding higher-than-expected 2024 results, prompting several analyst firms to raise price targets as well as ratings.
Here’s how the major market indicators stack up year-to-date:
Dow Jones Industrial Average: 6.24%
S&P 500: 17.25%
Nasdaq Composite: 33.38%
Russell 2000: 11.36%
Bitcoin (BTC-USD): 75.91%
Ether (ETH-USD): 53.29%
Stocks to Watch
Before U.S. equity markets begin trading today, AMC Networks (AMCX), Cboe Global Markets (CBOE), GrafTech International (EAF), and Protolabs (PRLB) are expected to report their quarterly results.
Amazon (AMZN) crushed earnings, posting EPS of $0.65 as compared to the consensus estimate of $0.35, and handily beat revenue expectations by reporting quarterly revenues of $134.4 billion versus estimates of $131.5 billion. Amazon Web Services (AWS) saw sales rise 12% YoY to $22.14 billion as margins declined roughly 5% to 24.2% as compared to the same period in 2022. Advertising Services revenue grew +22% to $10.68 billion, coming in slightly lower than the 23% growth seen in Q1 2023 and Q4 2022. The company gave upside guidance for Q3 revenues at $138-$143 billion compared to estimates of $138.36 billion. The company stated that “AWS has continued to add to its meaningful leadership position in the cloud with a slew of generative AI releases that make it much easier and more cost-effective for companies to train and run models, customize Large Language Models to build generative AI applications and agents, and write code much more efficiently.” The company went on to talk about how Advertising Services sees a strong fall as Thursday Night Football advertisers will be able to tailor audience-specific, and interactive ad packages.
Apple’s (AAPL) latest quarterly earnings came in $0.06 better than estimates at $1.26 per share while revenues came in line with expectations despite falling 1.4% YoY. iPhone sales ($39.7 billion) accounted for just over half of the company’s roughly $82 billion in revenues, Services provided about 25% of the total while Mac, iPad, and Wearables combined to round out the balance. CEO Tim Cook commented that headwinds in advertising and gaming have flipped to become tailwinds and that the company “saw continued strength in emerging markets thanks to robust sales of iPhone" and went on to say that the “installed base of active devices reached an all-time high in every geographic segment." Next quarter guidance included comments that pointed to flat revenue on a YoY basis, a 2% impact due to F/X, acceleration of the Services business, and gross margins remaining in the mid-40 % range.
Fortinet (FTNT) reported latest quarter earnings of $0.38 per share, coming in $0.04 ahead of analyst estimates while revenues came in line at $1.29 billion, a 25.5% YoY increase. The company guided next quarter's EPS between $0.35 to $0.37 in line with estimates of $0.36 and revenues between $1.315 and 1.375, slightly below estimates of $1.8 billion. Full fiscal year 2023 guidance saw forecasted EPS rising $0.05 from the previous estimate and revenues declining slightly to $5.35 to $5.45 billion as compared to the $5.47 estimate.
Cloudflare (NET) beat EPS estimates, reporting earnings of $0.10 per share, and exceeded revenue expectations by $3 million, coming in at $308.5 million after a 31% YoY increase. The company issued upside guidance for revenues and EPS for the next quarter and the rest of fiscal year 2023.
Airbnb (ABNB) reported quarterly earnings of $0.98 per share, beating estimates by $0.18 while also beating revenue estimates after a YoY 18% increase to $2.48 billion as compared to the $4.42 consensus. The company saw growth globally, with the strongest increases coming from the Asia Pacific region. The company issued in-line guidance for Q3 and sees Q3 revenues of $3.3 to 3.4 billion as compared to the $3.23 billion consensus.
IPOs
Near-term the calendar for such activity looks rather thin. Readers looking to dig deeper into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page.
After Today’s Market Close
We made it through the week and its barrage of quarterly earnings reports. No companies are slated to report their quarterly results after equities stop trading today. Those looking for more on upcoming quarterly earnings reports should head on over to Nasdaq’s Earnings Calendar.
On the Horizon
Monday, August 7
Japan: Leading Index – June
Germany: Industrial Production – June
Eurozone: Sentix Investor Confidence - August
US: Consumer Credit – June
Tuesday, August 8
Japan: Household Spending – June
China: Imports/Exports – July
Germany: Consumer Price Index - July
US: NFIB Small Business Optimism Index – July
US: Trade Balance – June
US: Wholesale Inventories – June
Wednesday, August 9
China: Consumer Price Index, Producer Price Index - July
US: Weekly MBA Mortgage Applications
US: Weekly EIA Crude Oil Inventories
Thursday, August 10
Japan: Producer Price Index - July
OPEC Monthly Report
US: Weekly Initial & Continuing Jobless Claims
US: Consumer Price Index – July
US: Weekly EIA Natural Gas Inventories
Friday, August 11
UK: GDP, Business Investment – 2Q 2023
UK: Industrial Production, Manufacturing Production - June
US: Producer Price Index – July
US: The University of Michigan Preliminary Consumer Sentiment Index – August (10:00 AM ET)
Thought for the Day
“Rest is not idleness, and to lie sometimes on the grass under trees on a summer’s day, listening to the murmur of the water, or watching the clouds float across the sky, is by no means a waste of time.” ~ John Lubbock
Disclosures
Cloudflare (NET) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index
Apple (AAPL) is a constituent of the Tematica Research Thematic Dividend All-Stars Index
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple’s (AAPL) latest quarterly earnings came in $0.06 better than estimates at $1.26 per share while revenues came in line with expectations despite falling 1.4% YoY. On the Horizon Monday, August 7 Japan: Leading Index – June Germany: Industrial Production – June Eurozone: Sentix Investor Confidence - August US: Consumer Credit – June Tuesday, August 8 Japan: Household Spending – June China: Imports/Exports – July Germany: Consumer Price Index - July US: NFIB Small Business Optimism Index – July US: Trade Balance – June US: Wholesale Inventories – June Wednesday, August 9 China: Consumer Price Index, Producer Price Index - July US: Weekly MBA Mortgage Applications US: Weekly EIA Crude Oil Inventories Thursday, August 10 Japan: Producer Price Index - July OPEC Monthly Report US: Weekly Initial & Continuing Jobless Claims US: Consumer Price Index – July US: Weekly EIA Natural Gas Inventories Friday, August 11 UK: GDP, Business Investment – 2Q 2023 UK: Industrial Production, Manufacturing Production - June US: Producer Price Index – July US: The University of Michigan Preliminary Consumer Sentiment Index – August (10:00 AM ET) Thought for the Day “Rest is not idleness, and to lie sometimes on the grass under trees on a summer’s day, listening to the murmur of the water, or watching the clouds float across the sky, is by no means a waste of time.” ~ John Lubbock Disclosures Cloudflare (NET) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Apple (AAPL) is a constituent of the Tematica Research Thematic Dividend All-Stars Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Today’s Big Picture Asia-Pacific equity markets finished the last trading day of the week on a positive note led by gains in China’s Shanghai Composite (+1.8%), Hong Kong’s Hang Seng (+0.6%), and India’s Sensex (+0.7%).
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On the Horizon Monday, August 7 Japan: Leading Index – June Germany: Industrial Production – June Eurozone: Sentix Investor Confidence - August US: Consumer Credit – June Tuesday, August 8 Japan: Household Spending – June China: Imports/Exports – July Germany: Consumer Price Index - July US: NFIB Small Business Optimism Index – July US: Trade Balance – June US: Wholesale Inventories – June Wednesday, August 9 China: Consumer Price Index, Producer Price Index - July US: Weekly MBA Mortgage Applications US: Weekly EIA Crude Oil Inventories Thursday, August 10 Japan: Producer Price Index - July OPEC Monthly Report US: Weekly Initial & Continuing Jobless Claims US: Consumer Price Index – July US: Weekly EIA Natural Gas Inventories Friday, August 11 UK: GDP, Business Investment – 2Q 2023 UK: Industrial Production, Manufacturing Production - June US: Producer Price Index – July US: The University of Michigan Preliminary Consumer Sentiment Index – August (10:00 AM ET) Thought for the Day “Rest is not idleness, and to lie sometimes on the grass under trees on a summer’s day, listening to the murmur of the water, or watching the clouds float across the sky, is by no means a waste of time.” ~ John Lubbock Disclosures Cloudflare (NET) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Apple (AAPL) is a constituent of the Tematica Research Thematic Dividend All-Stars Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple’s (AAPL) latest quarterly earnings came in $0.06 better than estimates at $1.26 per share while revenues came in line with expectations despite falling 1.4% YoY. Amazon (AMZN) crushed earnings, posting EPS of $0.65 as compared to the consensus estimate of $0.35, and handily beat revenue expectations by reporting quarterly revenues of $134.4 billion versus estimates of $131.5 billion.
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On the Horizon Monday, August 7 Japan: Leading Index – June Germany: Industrial Production – June Eurozone: Sentix Investor Confidence - August US: Consumer Credit – June Tuesday, August 8 Japan: Household Spending – June China: Imports/Exports – July Germany: Consumer Price Index - July US: NFIB Small Business Optimism Index – July US: Trade Balance – June US: Wholesale Inventories – June Wednesday, August 9 China: Consumer Price Index, Producer Price Index - July US: Weekly MBA Mortgage Applications US: Weekly EIA Crude Oil Inventories Thursday, August 10 Japan: Producer Price Index - July OPEC Monthly Report US: Weekly Initial & Continuing Jobless Claims US: Consumer Price Index – July US: Weekly EIA Natural Gas Inventories Friday, August 11 UK: GDP, Business Investment – 2Q 2023 UK: Industrial Production, Manufacturing Production - June US: Producer Price Index – July US: The University of Michigan Preliminary Consumer Sentiment Index – August (10:00 AM ET) Thought for the Day “Rest is not idleness, and to lie sometimes on the grass under trees on a summer’s day, listening to the murmur of the water, or watching the clouds float across the sky, is by no means a waste of time.” ~ John Lubbock Disclosures Cloudflare (NET) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Apple (AAPL) is a constituent of the Tematica Research Thematic Dividend All-Stars Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple’s (AAPL) latest quarterly earnings came in $0.06 better than estimates at $1.26 per share while revenues came in line with expectations despite falling 1.4% YoY. Amazon (AMZN) crushed earnings, posting EPS of $0.65 as compared to the consensus estimate of $0.35, and handily beat revenue expectations by reporting quarterly revenues of $134.4 billion versus estimates of $131.5 billion.
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Apple’s (AAPL) latest quarterly earnings came in $0.06 better than estimates at $1.26 per share while revenues came in line with expectations despite falling 1.4% YoY. On the Horizon Monday, August 7 Japan: Leading Index – June Germany: Industrial Production – June Eurozone: Sentix Investor Confidence - August US: Consumer Credit – June Tuesday, August 8 Japan: Household Spending – June China: Imports/Exports – July Germany: Consumer Price Index - July US: NFIB Small Business Optimism Index – July US: Trade Balance – June US: Wholesale Inventories – June Wednesday, August 9 China: Consumer Price Index, Producer Price Index - July US: Weekly MBA Mortgage Applications US: Weekly EIA Crude Oil Inventories Thursday, August 10 Japan: Producer Price Index - July OPEC Monthly Report US: Weekly Initial & Continuing Jobless Claims US: Consumer Price Index – July US: Weekly EIA Natural Gas Inventories Friday, August 11 UK: GDP, Business Investment – 2Q 2023 UK: Industrial Production, Manufacturing Production - June US: Producer Price Index – July US: The University of Michigan Preliminary Consumer Sentiment Index – August (10:00 AM ET) Thought for the Day “Rest is not idleness, and to lie sometimes on the grass under trees on a summer’s day, listening to the murmur of the water, or watching the clouds float across the sky, is by no means a waste of time.” ~ John Lubbock Disclosures Cloudflare (NET) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Apple (AAPL) is a constituent of the Tematica Research Thematic Dividend All-Stars Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Wage data showed average hourly earnings up 4.4%, higher than expectations of 4.2%.
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14488.0
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2023-08-04 00:00:00 UTC
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US STOCKS-Futures get boost from Amazon results; jobs data in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-get-boost-from-amazon-results-jobs-data-in-focus
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nan
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nan
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By Shubham Batra and Bansari Mayur Kamdar
Aug 4 (Reuters) - U.S. stock index futures rose on Friday as Amazon's better-than-expected earnings countered Apple's tepid sales forecast, while investors awaited the July jobs report to firm up the likelihood of a "soft landing" for the economy.
Amazon.com shares AMZN.O surged 8.6% in premarket trading after the company issued an upbeat outlook for the third quarter, while Apple's shares AAPL.O shed 1.9% as the iPhone maker forecast a continued slide in sales.
Shares of peers Microsoft MSFT.O, Alphabet GOOGL.O and Snowflake SNOW.N rose between 0.5% and 5.9% after Amazon's cloud business segment beat sales estimates.
All eyes will be squarely on the July U.S. nonfarm payrolls report, due at 8:30 a.m. ET, with a Reuters poll of economists estimating payrolls increased by 200,000 jobs last month, after having risen 209,000 in June, showing labor market conditions remain tight.
"Today's NFP data would be important for setting the market tone for the coming weeks," Jefferies strategist Mohit Kumar said.
"Seasonal factors imply that we could still get a strong print this month, but our view remains that the labor market should start to crack in Q3, which suggests that the employment report this month could mark the high point in employment prints."
A Labor Department report on Thursday showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July.
The yield on the 10-year benchmark note was steady near the nine-month high it hit, partly due to Fitch downgrading the United States from a AAA rating to AA+ earlier this week.
Stocks closed marginally lower on Thursday weighed down by the latest batch of economic data and disappointing earnings.
At 07:00 a.m. ET, Dow e-minis 1YMcv1 were up 10 points, or 0.03%, S&P 500 e-minis EScv1 were up 8.5 points, or 0.19%, and Nasdaq 100 e-minis NQcv1 were up 44.25 points, or 0.29%.
Of the 392 companies in the S&P 500 that have reported quarterly earnings as of Thursday, 79.3% have beat analysts' estimates, according to Refinitiv data.
Shares of Tupperware TUP.N, known for its plastic airtight storage containers and bowls, rallied 63.4% in trading before the bell after it finalized an agreement with its lenders to restructure its debt obligations in an effort to turn around its business.
Amgen AMGN.O gained 1.4%, although in low volumes after it reported a higher quarterly profit on strong sales of its cholesterol, osteoporosis and other drugs. Its planned acquisition of Horizon Therapeutics HZNP.O is delayed due to regulatory scrutiny.
Sports-betting firm DraftKings' DKNG.O shares surged 13.1% after it raised its fiscal year 2023 revenue outlook.
(Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta)
((Shubham.Batra@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 shares AMZN.O surged 8.6% in premarket trading after the company issued an upbeat outlook for the third quarter, while Apple's shares AAPL.O shed 1.9% as the iPhone maker forecast a continued slide in sales. By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - U.S. stock index futures rose on Friday as Amazon's better-than-expected earnings countered Apple's tepid sales forecast, while investors awaited the July jobs report to firm up the likelihood of a "soft landing" for the economy. A Labor Department report on Thursday showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July.
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Amazon.com shares AMZN.O surged 8.6% in premarket trading after the company issued an upbeat outlook for the third quarter, while Apple's shares AAPL.O shed 1.9% as the iPhone maker forecast a continued slide in sales. By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - U.S. stock index futures rose on Friday as Amazon's better-than-expected earnings countered Apple's tepid sales forecast, while investors awaited the July jobs report to firm up the likelihood of a "soft landing" for the economy. "Seasonal factors imply that we could still get a strong print this month, but our view remains that the labor market should start to crack in Q3, which suggests that the employment report this month could mark the high point in employment prints."
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Amazon.com shares AMZN.O surged 8.6% in premarket trading after the company issued an upbeat outlook for the third quarter, while Apple's shares AAPL.O shed 1.9% as the iPhone maker forecast a continued slide in sales. By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - U.S. stock index futures rose on Friday as Amazon's better-than-expected earnings countered Apple's tepid sales forecast, while investors awaited the July jobs report to firm up the likelihood of a "soft landing" for the economy. "Seasonal factors imply that we could still get a strong print this month, but our view remains that the labor market should start to crack in Q3, which suggests that the employment report this month could mark the high point in employment prints."
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Amazon.com shares AMZN.O surged 8.6% in premarket trading after the company issued an upbeat outlook for the third quarter, while Apple's shares AAPL.O shed 1.9% as the iPhone maker forecast a continued slide in sales. By Shubham Batra and Bansari Mayur Kamdar Aug 4 (Reuters) - U.S. stock index futures rose on Friday as Amazon's better-than-expected earnings countered Apple's tepid sales forecast, while investors awaited the July jobs report to firm up the likelihood of a "soft landing" for the economy. ET, with a Reuters poll of economists estimating payrolls increased by 200,000 jobs last month, after having risen 209,000 in June, showing labor market conditions remain tight.
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14489.0
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2023-08-04 00:00:00 UTC
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GLOBAL MARKETS-World stocks set for worst week since March; US payrolls in focus
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AAPL
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https://www.nasdaq.com/articles/global-markets-world-stocks-set-for-worst-week-since-march-us-payrolls-in-focus
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nan
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nan
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By Amanda Cooper and Elizabeth Howcroft
LONDON, Aug 4 (Reuters) - European stocks indexes fell on Friday, while the dollar headed for a third weekly gain as investors assessed U.S. economic data that largely showed a resilient labour market ahead of the all-important monthly jobs report.
The MSCI All-World index .MIWD00000PUS was flat on the day at 1123 GMT and headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
Investor attention will be squarely on the July U.S. non-farm payrolls report, with a Reuters survey of 80 economists expecting payrolls to have increased by 200,000 last month, after rising 209,000 in June.
Economists who have long been forecasting a downturn by the fourth quarter of this year are increasingly becoming convinced that the "soft-landing" scenario for the economy envisaged by the U.S. Federal Reserve is now possible.
"Today’s U.S. payrolls data is likely to continue to showcase the resilience of the U.S. economy," Michael Hewson, chief market analyst at CMC Markets, said in a note.
Data showed the number of Americans filing new claims for unemployment benefit rose slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remained tight.
The STOXX 600 was down 0.3% on the day .STOXX, while London's FTSE 100 .FTSE and Germany's DAX were both down 0.4% .GDAXI.
Futures on the S&P 500 EScv1 and on the Nasdaq 100 NQc1 both gained 0.2%, suggesting earnings from technology bellwethers could give the index a boost later on.
Amazon AMZN.Oreported sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter.
The benchmark indices closed little changed the previous day after a choppy trading session, as investors weighed up the implications of rising Treasury yields along with the latest batch of economic data and earnings.
"It’s a very fragile market," said Francesco Sandrini, head of multi-asset strategy at Amundi.
"The market is quite nervous at the moment, the very low volatility that has been prevailing so far now is facing a reality check."
The dollar meanwhile rose 0.1% against a basket of major currencies =USD, heading for its third weekly gain in a row.
It has made the most headway against some of this year's better-performing currencies, such as the Australian dollar AUD=D3, which lost 1.5% this week, or the poundGBP=D3, which is heading for a drop of 1.2% after the Bank of England delivered a smaller rate rise than many had hoped for.
China's yuan CNH=D3, which is set for a 0.6% loss this week against the dollar, gained some respite after an official said on Friday the central bank would use policy tools flexibly to ensure reasonably ample liquidity in the banking system.
Investors have been hoping policymakers will deliver more broad-based stimulus to boost the post-pandemic recovery as the world's second-largest economy struggles with weak demand at home and abroad.
Further support for the U.S. dollar came from the Treasury market, where 10-year yields US10YT=RR held steady around nine-month highs, at 4.19%, while 30-year bond yields hovered at 4.28% US30YT=RR, set for their biggest weekly rise this year.
Rating agency Fitch this week surprised markets by stripping the United States of its prized triple-A credit rating and cited the country's deteriorating fiscal position as one of the key drivers, thrusting the government's finances into the spotlight.
Earlier in the week, the U.S. Treasury said it expects to borrow just over $1 trillion in the third quarter of this year alone, $273 billion more than its May estimate.
Oil prices headed for a sixth straight weekly gain, driven up by the prospect of reduced supply from Saudi Arabia and Russia. U.S. crude CLc1 rose 0.3% to $81.81 a barrel, while Brent LCOc1 rose 0.4% to $85.44.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Additional reporting by Ankur Banerjee in Singapore; Editing by Muralikumar Anantharaman, Kirsten Donovan and Alexander Smith)
((ankur.banerjee@thomsonreuters.com;; Mobile - +65 8121 3925; Twitter: @AnkurBanerjee17;))
The views and 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 AMZN.Oreported sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Amanda Cooper and Elizabeth Howcroft LONDON, Aug 4 (Reuters) - European stocks indexes fell on Friday, while the dollar headed for a third weekly gain as investors assessed U.S. economic data that largely showed a resilient labour market ahead of the all-important monthly jobs report. Data showed the number of Americans filing new claims for unemployment benefit rose slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remained tight.
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Amazon AMZN.Oreported sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Amanda Cooper and Elizabeth Howcroft LONDON, Aug 4 (Reuters) - European stocks indexes fell on Friday, while the dollar headed for a third weekly gain as investors assessed U.S. economic data that largely showed a resilient labour market ahead of the all-important monthly jobs report. Investor attention will be squarely on the July U.S. non-farm payrolls report, with a Reuters survey of 80 economists expecting payrolls to have increased by 200,000 last month, after rising 209,000 in June.
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Amazon AMZN.Oreported sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Amanda Cooper and Elizabeth Howcroft LONDON, Aug 4 (Reuters) - European stocks indexes fell on Friday, while the dollar headed for a third weekly gain as investors assessed U.S. economic data that largely showed a resilient labour market ahead of the all-important monthly jobs report. The MSCI All-World index .MIWD00000PUS was flat on the day at 1123 GMT and headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
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Amazon AMZN.Oreported sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. The MSCI All-World index .MIWD00000PUS was flat on the day at 1123 GMT and headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply. Investor attention will be squarely on the July U.S. non-farm payrolls report, with a Reuters survey of 80 economists expecting payrolls to have increased by 200,000 last month, after rising 209,000 in June.
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14490.0
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2023-08-04 00:00:00 UTC
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Needham Reiterates Apple (AAPL) Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/needham-reiterates-apple-aapl-buy-recommendation
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nan
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Fintel reports that on August 4, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 3.94% 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 3.94% from its latest reported closing price of 191.17.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6387 funds or institutions reporting positions in Apple. This is a decrease of 23 owner(s) or 0.36% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. Total shares owned by institutions decreased in the last three months by 2.05% to 9,903,041K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.79% 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 2.94% 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 2.19% 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 1.80% 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 1.48% 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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Fintel reports that on August 4, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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14491.0
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2023-08-04 00:00:00 UTC
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Markets Today: Stocks Climb on Strong Amazon Earnings and Lower Bond Yields
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AAPL
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https://www.nasdaq.com/articles/markets-today%3A-stocks-climb-on-strong-amazon-earnings-and-lower-bond-yields
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nan
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nan
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Morning Markets
September E-Mini S&P 500 futures (ESU23) this morning are up +0.33%, and Sep Nasdaq 100 E-Mini futures (NQU23) are up +0.47%.
Stock indexes this morning are modestly higher, as an +8% jump in Amazon.com in pre-market trading is lifting technology stocks. However, gains are muted, with Apple down more than -2% after delivering a lackluster outlook for its fourth quarter. A mixed U.S. unemployment report this morning was neutral for stocks as July nonfarm payrolls rose less than expected, but July average hourly earnings rose more than expected, sparking concerns about wage pressures.
U.S. Jul nonfarm payrolls rose +187,000, below expectations of +200,000, which was slightly dovish for Fed policy. The Jul unemployment rate unexpectedly fell -0.1 to 3.5%, showing a stronger labor market than expectations of 3.6%.
U.S. Jul average hourly earnings rose +0.4% m/m and +4.4% y/y, stronger than expectations of +0.3% m/m and +4.2% y/y, which was hawkish for Fed policy.
The markets are discounting the odds at 19% for a +25 bp rate hike at the September 20 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield fell back from an 8-3/4 month high of 4.204% and is down -2.0 bp at 4.155%. The 10-year German bund yield rose to a 3-week high of 2.651% and is up +1.4 bp at 2.619%. The 10-year UK gilt yield fell back from a 2-1/2 week high of 4.499% and is down -1.3 bp at 4.457%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.15%. China’s Shanghai Composite Index today closed up +0.23%. Japan’s Nikkei Stock Index closed up +0.10%.
The Euro Stoxx 50 today is slightly lower. A jump in European government bond yields is weighing on stocks after the 10-year German bund yield rose to a 3-week high. Another bearish factor was an unexpected decline in Eurozone Jun retail sales. In addition, European stocks exposed to Apple are under pressure after Apple reported its third consecutive quarter of declining sales and predicted a similar performance for the current quarter. Strength in bank stocks is limiting losses in the overall market, with Credit Agricole SA up more than +4% after reporting better-than-expected Q2 earnings. Travel stocks are also climbing after Booking Holdings reported stronger-than-expected Q2 revenue, reflecting strong travel demand despite higher flights and hotel prices. In addition, German factory orders jumped by the most in 3 years in June, a positive sign for the Eurozone’s largest economy.
Eurozone Jun retail sales unexpectedly fell -0.3% m/m, weaker than expectations of +0.2% m/m.
German Jun factory orders unexpectedly rose +7.0% m/m, stronger than expectations of -2.0% m/m and the biggest increase in 3 years.
The German Jul S&P construction PMI fell -0.4 to 41.0, the weakest level in 2-1/2 years.
China’s Shanghai Composite today closed moderately higher. Chinese brokerage stocks rallied for a second day after the Securities Depository and Clearing Corp cut the reserve payment ratio for stock trading to an average of 13% from 16%, a bigger cut than expectations of 15%. Chinese property and building stocks rallied today after PBOC Governor Gongsheng met with representatives from eight developers and said the PBOC would increase funding support for the private sector. On the negative side, Chinese superconductor stocks plunged after several companies dispelled rumors that they had made a breakthrough in the technology.
The outlook for more PBOC stimulus also gave stocks a boost after Zou Lan, head of the monetary policy department of the PBOC, told reporters in Beijing that the central bank will step up “counter-cyclical adjustment” to support the economy and will coordinate the use of tools at its disposal, including reducing the reserve requirement ratio and injecting liquidity into the financial system.
Japan’s Nikkei Stock Index today recovered from a 3-week low and closed slightly higher. Japanese brokerage stocks moved higher today after the five largest firms all reported better-than-expected Q1 income estimates this week. Warren Buffet’s Berkshire Hathaway raised its stake in the five largest Japanese brokerages to an average of more than 8.5% in June. Several of the brokerages, including Mitsubishi and Mitsui, said they would consider additional shareholder returns depending on future earnings, and Itochu said it would buy back up to 0.4% of shares for 25 billion yen. Exporter stocks also moved higher today after the 10-year JGB bond yield fell back from a 9-year high, which pressured the yen. Bond yields retreated after the BOJ on Thursday announced an unscheduled debt-purchase operation for the second time this week to push bond yields lower.
Pre-Market U.S. Stock Movers
Amazon.com (AMZN) jumped more than +8% in pre-market trading after reporting Q2 net sales of $134.38 billion, stronger than the consensus of $131.63 billion, and forecasting Q3 net sales of $128 billion-$143 billion, above the consensus of $138.3 billion.
Cloudflare (NET) rallied more than +8% in pre-market trading after reporting Q2 adjusted EPS of 10 cents, better than the consensus of 7.5 cents, and raised its full-year EPS forecast to 37 cents from 34 cents to 35 cents, stronger than the consensus of 34 cents.
Atlassian (TEAM) surged more than +20% in pre-market trading after reporting Q4 revenue of $939.1 million, better than the consensus of $915.7 million, and forecast Q1 revenue of $950 million-$970 million, above the consensus of $955.7 million.
DraftKings (DKNG) rallied more than +10% in pre-market trading after reporting Q2 revenue of $874.9 million, stronger than the consensus of $757.7 million, and raising its full-year revenue forecast to $3.46 billion-$3.54 billion from a previous estimate of $3.14 billion-$.24 billion, well above the consensus of $3.27 billion.
Datadog (DDOG) jumped more than +6% in pre-market trading after Stifel raised its price target on the stock to $115 from $101.
BWX Technologies (BWXT) climbed more than +5% in pre-market trading after Baird upgraded the stock to outperform from neutral with a price target of $85.
Apple (AAPL) dropped more than -2% in pre-market trading after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion, and said Q4 year-over-year performance to be similar to Q3.
Microchip Technology (MCHP) tumbled more than -5% in pre-market trading after forecasting Q2 net sales of $2.22 billion-$2.31 billion, the midpoint below the consensus of $2.28 billion.
Moderna (MRNA) fell more than -1% in pre-market trading after TD Cowen downgraded the stock to market perform from outperform.
Fortinet (FTNT) sank more than -18% in pre-market trading after reporting Q2 billings of $1.54 billion, below the consensus of $1.59 billion, and cut its full-year billings forecast to $6.49 billion-$6.59 billion from a previous estimate of $6.75 billion-$6.81 billion, well below the consensus of $6.79 billion.
ResMed (RMD) dropped more than -7% in pre-market trading after reporting Q4 adjusted EPS of $1.60, weaker than the consensus of $1.70.
Redfin (RDFN) tumbled more than -9% in pre-market trading after reporting a Q2 Ebitda loss of -$6.93 million, a larger loss than the consensus of -$3.23 million, and forecast Q3 adjusted Ebitda of $4 million-$14 million, weaker than the consensus of $21.8 million.
Today’s U.S. Earnings Reports (8/4/2023)
AES Corp/The (AES), Cboe Global Markets Inc (CBOE), Dominion Energy Inc (D), Evergy Inc (EVRG), LyondellBasell Industries NV (LYB), PPL Corp (PPL).
More Stock Market News from Barchart
S&P Futures Tick Higher Ahead of Key U.S. Payrolls Data, Amazon Surges on Upbeat Earnings Stocks Weighed Down by Higher Bond Yields 3 Lesser-Known AI Stocks to Add to Your Watchlist 2 Top EV Stocks to Buy in August
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) dropped more than -2% in pre-market trading after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion, and said Q4 year-over-year performance to be similar to Q3. The outlook for more PBOC stimulus also gave stocks a boost after Zou Lan, head of the monetary policy department of the PBOC, told reporters in Beijing that the central bank will step up “counter-cyclical adjustment” to support the economy and will coordinate the use of tools at its disposal, including reducing the reserve requirement ratio and injecting liquidity into the financial system. Several of the brokerages, including Mitsubishi and Mitsui, said they would consider additional shareholder returns depending on future earnings, and Itochu said it would buy back up to 0.4% of shares for 25 billion yen.
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Apple (AAPL) dropped more than -2% in pre-market trading after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion, and said Q4 year-over-year performance to be similar to Q3. A mixed U.S. unemployment report this morning was neutral for stocks as July nonfarm payrolls rose less than expected, but July average hourly earnings rose more than expected, sparking concerns about wage pressures. Cloudflare (NET) rallied more than +8% in pre-market trading after reporting Q2 adjusted EPS of 10 cents, better than the consensus of 7.5 cents, and raised its full-year EPS forecast to 37 cents from 34 cents to 35 cents, stronger than the consensus of 34 cents.
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Apple (AAPL) dropped more than -2% in pre-market trading after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion, and said Q4 year-over-year performance to be similar to Q3. Pre-Market U.S. Stock Movers Amazon.com (AMZN) jumped more than +8% in pre-market trading after reporting Q2 net sales of $134.38 billion, stronger than the consensus of $131.63 billion, and forecasting Q3 net sales of $128 billion-$143 billion, above the consensus of $138.3 billion. DraftKings (DKNG) rallied more than +10% in pre-market trading after reporting Q2 revenue of $874.9 million, stronger than the consensus of $757.7 million, and raising its full-year revenue forecast to $3.46 billion-$3.54 billion from a previous estimate of $3.14 billion-$.24 billion, well above the consensus of $3.27 billion.
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Apple (AAPL) dropped more than -2% in pre-market trading after reporting Q3 iPhone revenue of $39.67 billion, below the consensus of $39.80 billion, and said Q4 year-over-year performance to be similar to Q3. Stock indexes this morning are modestly higher, as an +8% jump in Amazon.com in pre-market trading is lifting technology stocks. Exporter stocks also moved higher today after the 10-year JGB bond yield fell back from a 9-year high, which pressured the yen.
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14492.0
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2023-08-04 00:00:00 UTC
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"Big Tech" Earnings Review: ETFs in Focus
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AAPL
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https://www.nasdaq.com/articles/big-tech-earnings-review%3A-etfs-in-focus
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nan
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Since late July, five major tech companies from the United States released their earnings reports. Among them, Amazon AMZN, Facebook-parent Meta META and Google-parent Alphabet GOOGL delivered impressive results, garnering positive reactions from investors, while Apple AAPL and Microsoft MSFT disappointed investors. Let’s delve a little deeper.
Inside Big Tech Earnings & Guidance
On Aug 3, Amazon crushed both lines expectations and issued upbeat guidance. Shares surged 8.4% after hours. Amazon’s quarterly earnings of $0.63 per share beat the Zacks Consensus Estimate of $0.34 per share. Amazon posted revenues of $134.38 billion, which topped the Zacks Consensus Estimate by 2.16%. For the third quarter, Amazon expects sales of between $138 billion and $143 billion. Analysts were expecting revenue of $138.25 billion, according to Refinitiv, as quoted on CNBC. The guidance reflects the strength of Amazon’s 48-hour Prime Day discount event, held in July.
On Aug 3,Apple reported fiscal third-quarter results that beat Wall Street soft expectations for both earnings and sales, thanks to stronger services sales that grew 8% year over year. Overall sales still dipped 1% year over year. Apple’s earnings of $1.26 per share beat the Zacks Consensus Estimate of $1.19 per share while Apple’s revenues of $81.8 billion surpassed the Zacks Consensus Estimate by 0.54%. Revenues in the company’s iPhone, Mac, and iPad lines were all down from a year earlier. Apple shares dropped about 1.8% after hours on Aug 3.
After the closing bell on Jul 26, Facebook’s parent company Meta reported solid second-quarter 2023 results, wherein it outpaced revenue and earnings estimates. Adjusted earnings per share came in at $2.98 (up 16% year over year), topping the Zacks Consensus Estimate of $2.87. Revenues came above the estimated $30.9 billion. The company posted its first double-digit revenue growth since 2021, boosted by the artificial intelligence (AI) craze. Further, Meta Platforms issued upbeat revenue guidance for the current quarter. Shares surged post earnings (read: ETFs to Tap on Meta's Blowout Q2 Earnings).
On July 25, Alphabet’s second-quarter 2023 earnings of $1.44 per share beat the Zacks Consensus Estimate by 9.1%. The figure grew by 19% year over year. Net revenues, excluding total traffic acquisition costs or TAC, was $62.07 billion, which surpassed the consensus mark of $60.24 billion. The figure rose 8% from the year-ago quarter’s level. Shares surged about 6% post releasing earnings (read: Alphabet Heavy ETFs in Focus After Upbeat Q2 Earnings).
In late July, Microsoft, however, depressed investors this season despite beating estimates on both lines. The company provided a downbeat revenue outlook for the current quarter. No wonder, shares slumped just after reporting earnings. Earnings per share came in at $2.69, outpacing the Zacks Consensus Estimate of $2.54. Revenues grew 8.4% year over year to $56.2 billion, edging past the consensus estimate of $55.4 billion (read: Microsoft Q4 Earnings Beat, Shares Slip: ETFs in Focus).
ETFs in Focus
These big tech stocks have heavy exposure to technology, communications, and consumer ETFs.Apple and Microsoft – both laggards – are exposed to pure tech stocks, while the other three fall in other categories. No wonder, Microsoft and Apple-heavy ETFs underperformed other concerned funds since late July.
Apple & Microsoft-Heavy Technology ETFs
Technology Select Sector SPDR Fund XLK -- Down 2.8% Since Jul 25
Vanguard Information Technology ETF VGT -- Down 2.7%
Meta & Alphabet Heavy Communication ETFs
Communication Services Select Sector SPDR Fund XLC -- Up 2%
Fidelity MSCI Communication Services Index ETF FCOM -- Up 2%
Amazon-Heavy Consumer ETFs
ProShares Online Retail ETF ONLN -- Up 2.5%
Vanguard Consumer Discretionary ETF VCR -- Down 0.9%
Image Source: Zacks Investment Research
Is the ETF Approach Better to Bet on Big Tech Stocks?
Meta, Microsoft, Amazon, and Alphabet are all about AI. Hence, it would be great to bet on all these big tech stocks at one go through the basket approach. But then, the full AI story will take time to come into fruition. Hence, the basket approach appears to be safer as the mode minimizes stock-specific risks. Apart from the AI growth prospects, the financial strength of the group is also robust.
In the event of Fitch Ratings' recent credit downgrade of the United States from AAA to AA+, discussions about companies' and countries' creditworthiness have been triggered. In this context, the Big Tech group emerges as a winner, with Microsoft holding a perfect AAA credit rating, while Alphabet and Apple hold ratings of AA+. Amazon, however, has a rating of AA. These stocks fall into the category of the highest-rated S&P 500 companies.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports
Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports
ProShares Online Retail ETF (ONLN): 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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Among them, Amazon AMZN, Facebook-parent Meta META and Google-parent Alphabet GOOGL delivered impressive results, garnering positive reactions from investors, while Apple AAPL and Microsoft MSFT disappointed investors. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. After the closing bell on Jul 26, Facebook’s parent company Meta reported solid second-quarter 2023 results, wherein it outpaced revenue and earnings estimates.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Among them, Amazon AMZN, Facebook-parent Meta META and Google-parent Alphabet GOOGL delivered impressive results, garnering positive reactions from investors, while Apple AAPL and Microsoft MSFT disappointed investors. Revenues grew 8.4% year over year to $56.2 billion, edging past the consensus estimate of $55.4 billion (read: Microsoft Q4 Earnings Beat, Shares Slip: ETFs in Focus).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Among them, Amazon AMZN, Facebook-parent Meta META and Google-parent Alphabet GOOGL delivered impressive results, garnering positive reactions from investors, while Apple AAPL and Microsoft MSFT disappointed investors. Apple’s earnings of $1.26 per share beat the Zacks Consensus Estimate of $1.19 per share while Apple’s revenues of $81.8 billion surpassed the Zacks Consensus Estimate by 0.54%.
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Among them, Amazon AMZN, Facebook-parent Meta META and Google-parent Alphabet GOOGL delivered impressive results, garnering positive reactions from investors, while Apple AAPL and Microsoft MSFT disappointed investors. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Amazon’s quarterly earnings of $0.63 per share beat the Zacks Consensus Estimate of $0.34 per share.
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14493.0
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2023-08-04 00:00:00 UTC
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S&P Futures Tick Higher Ahead of Key U.S. Payrolls Data, Amazon Surges on Upbeat Earnings
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AAPL
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https://www.nasdaq.com/articles/sp-futures-tick-higher-ahead-of-key-u.s.-payrolls-data-amazon-surges-on-upbeat-earnings
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nan
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nan
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September S&P 500 futures (ESU23) are trending up +0.08% this morning as market participants looked ahead to the crucial U.S. nonfarm payrolls report.
Amazon.com Inc (AMZN) surged over +8% in pre-market trading after the e-commerce giant reported better-than-expected Q2 results and delivered upbeat Q3 guidance.
In Thursday’s trading session, Wall Street’s major indexes closed lower. DXC Technology Co (DXC) plunged over -29% after the company reported weaker-than-expected Q1 results and cut its 2024 revenue guidance. Also, Qualcomm Incorporated (QCOM) slid more than -8% after the semiconductor company posted mixed Q3 results and offered weak Q4 guidance. In addition, PayPal Holdings Inc (PYPL) tumbled over -12% and was the top percentage loser on the tech-heavy Nasdaq 100 after the fintech company reported weaker-than-expected Q2 transaction revenue and operating margin. On the bullish side, MercadoLibre Inc (MELI) climbed more than +13% after posting upbeat Q2 results. Energy stocks also gained ground as the price of WTI crude rose over +2% after Saudi Arabia extended its production cut by another month.
Economic data on Thursday showed that the U.S. ISM services index came in at 52.7 in July, weaker than expectations of 53.0. Also, weekly initial jobless claims rose +6K to a seasonally adjusted 227K last week, slightly higher than the expected figure of 225K. In addition, U.S. unit labor costs rose +1.6% q/q in Q2, weaker than expectations of +2.6% q/q.
“The good news is that almost everyone agrees that an imminent recession isn’t very likely. That reduces the downside concerns about corporate earnings, but it increases the downside potential for the stock market’s valuation multiple if the bond yield continues to rise,” said Ed Yardeni, founder of Yardeni Research.
Meanwhile, analysts expect corporate earnings from S&P 500 companies to fall 5% year-over-year in Q2.
Today, all eyes are focused on U.S. Nonfarm Payrolls data in a couple of hours. Economists, on average, forecast that July Nonfarm Payrolls will come in at 200K, compared to the previous value of 209K.
Also, investors will likely focus on U.S. Private Nonfarm Payrolls data, which stood at 149K in June. Economists foresee the new figure to be 179K.
U.S. Average Hourly Earnings data will also be closely watched today. Economists expect July’s figures to be +0.3% m/m and +4.2% y/y, compared to the previous numbers of +0.4% m/m and +4.4% y/y.
U.S. Unemployment Rate will be reported today as well. Economists foresee this figure to remain steady at 3.6% in July.
In the bond markets, United States 10-Year rates are at 4.187%, down -0.10%.
The Euro Stoxx 50 futures are up +0.58% this morning as investors digested more earnings reports as well as positive German factory orders data ahead of the release of the eagerly-awaited U.S. monthly labor report. Travel and leisure stocks advanced on Friday, while media and real estate stocks underperformed. Meanwhile, Germany’s factory orders unexpectedly surged the most in three years in June, signaling a potential stabilization of Europe’s largest economy. In corporate news, Wpp Plc (WPP.LN) plunged over -6% after the company slashed its annual revenue guidance. At the same time, Credit Agricole (ACA.FP) climbed over +5% after the French lender posted upbeat quarterly earnings.
Germany’s Factory Orders, U.K.’s Construction PMI, and Eurozone’s Retail Sales data were released today.
The German June Factory Orders stood at +7.0% m/m, stronger than expectations of -2.0% m/m.
U.K. July Construction PMI has been reported at 51.7, stronger than expectations of 48.0.
Eurozone June Retail Sales came in at -0.3% m/m and -1.4% y/y, compared to expectations of +0.2% m/m and -1.7% y/y.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.23%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.10%.
China's Shanghai Composite closed higher today as market sentiment improved on the back of the government’s promises of additional stimulus measures. In a joint statement on Friday, China’s top economic committees announced that the government would implement more measures to stimulate consumer spending and enhance local liquidity, though specific details were not provided. Also, the governor of China’s central bank pledged on Thursday to direct more financial resources toward the private economy, indicating renewed urgency from Beijing to boost confidence among private firms amid weakening economic momentum. Meanwhile, telecom stocks outperformed on Friday, with China United Network Communications Ltd climbing over +7%.
Japan’s Nikkei 225 Stock Index closed slightly higher today as investors exercised caution in anticipation of the release of U.S. nonfarm payrolls data. Chip-related stocks gained ground on Friday, with chip-making equipment maker Tokyo Electron rising about +1%. In corporate news, Nintendo Co., Ltd fell more than -2% even after the maker of the Switch console reported an 82% year-on-year surge in Q1 operating profit. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +5.89% to 20.66.
“The declines driven by the U.S. downgrade seem to have stopped so far, as a round of sell-offs by short-term investors ended,” said Takehiko Masuzawa, a trading head at Phillip Securities Japan.
Pre-Market U.S. Stock Movers
Apple Inc (AAPL) dropped more than -1% in pre-market trading after the U.S. tech giant reported its third consecutive quarter of declining sales and projected a similar performance in the current quarter.
Booking Holdings Inc (BKNG) climbed over +11% in pre-market trading after the company reported upbeat Q2 results.
DraftKings Inc (DKNG) soared more than +13% in pre-market trading after the company reported stronger-than-expected Q2 results and guided for positive adjusted EBITDA in 2024.
Atlassian Corp Plc (TEAM) gained about +23% in pre-market trading after the company reported upbeat Q4 results and issued solid Q1 revenue guidance.
Opendoor Technologies Inc (OPEN) slid more than -11% in pre-market trading after providing weaker-than-expected Q3 revenue guidance.
Tupperware Brands Corporation (TUP) spiked about +55% in pre-market trading after the beleaguered maker of iconic food containers announced a debt restructuring agreement.
Lamb Weston Holdings Inc (LW) rose over +1% in pre-market trading after Stifel upgraded the stock to Buy from Hold.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Friday - August 4th
Enbridge (ENB), Dominion Energy (D), Magna Intl (MGA), Evergy (EVRG), Brookfield Renewable (BEP), Corebridge Financial (CRBG), Icahn Enterprises (IEP), XPO (XPO), RBC Bearings (RBC), Essent Group Ltd (ESNT), Fluor (FLR), Frontier Communications Parent (FYBR), Brookfield Business (BBU), PNM Resources (PNM), Plains GP Holdings (PAGP), Gates Industrial Corp (GTES), Digitalbridge Group (DBRG), TransAlta Corp (TAC), TELUS International (TIXT), Alpha Metallurgical Resources (AMR), Fisker (FSR), Cinemark (CNK), Green Plains Energy (GPRE), Sunstone Hotel Investors (SHO), Tennant (TNC), United States Cellular (USM), Owens&Minor (OMI), Marcus & Millichap (MMI), GrafTech (EAF), Calumet (CLMT), Twist Bioscience (TWST), Fulgent Genetics (FLGT), Global Partners (GLP), AdvanSix (ASIX), American Axle&Manufacturing (AXL).
More Stock Market News from Barchart
Stocks Weighed Down by Higher Bond Yields3 Lesser-Known AI Stocks to Add to Your Watchlist2 Top EV Stocks to Buy in AugustShould You Buy the Dip in Chegg Stock?
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Pre-Market U.S. Stock Movers Apple Inc (AAPL) dropped more than -1% in pre-market trading after the U.S. tech giant reported its third consecutive quarter of declining sales and projected a similar performance in the current quarter. In addition, PayPal Holdings Inc (PYPL) tumbled over -12% and was the top percentage loser on the tech-heavy Nasdaq 100 after the fintech company reported weaker-than-expected Q2 transaction revenue and operating margin. In a joint statement on Friday, China’s top economic committees announced that the government would implement more measures to stimulate consumer spending and enhance local liquidity, though specific details were not provided.
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Pre-Market U.S. Stock Movers Apple Inc (AAPL) dropped more than -1% in pre-market trading after the U.S. tech giant reported its third consecutive quarter of declining sales and projected a similar performance in the current quarter. The Euro Stoxx 50 futures are up +0.58% this morning as investors digested more earnings reports as well as positive German factory orders data ahead of the release of the eagerly-awaited U.S. monthly labor report. Germany’s Factory Orders, U.K.’s Construction PMI, and Eurozone’s Retail Sales data were released today.
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Pre-Market U.S. Stock Movers Apple Inc (AAPL) dropped more than -1% in pre-market trading after the U.S. tech giant reported its third consecutive quarter of declining sales and projected a similar performance in the current quarter. Japan’s Nikkei 225 Stock Index closed slightly higher today as investors exercised caution in anticipation of the release of U.S. nonfarm payrolls data. You can see more pre-market stock movers here Today’s U.S. Earnings Spotlight: Friday - August 4th Enbridge (ENB), Dominion Energy (D), Magna Intl (MGA), Evergy (EVRG), Brookfield Renewable (BEP), Corebridge Financial (CRBG), Icahn Enterprises (IEP), XPO (XPO), RBC Bearings (RBC), Essent Group Ltd (ESNT), Fluor (FLR), Frontier Communications Parent (FYBR), Brookfield Business (BBU), PNM Resources (PNM), Plains GP Holdings (PAGP), Gates Industrial Corp (GTES), Digitalbridge Group (DBRG), TransAlta Corp (TAC), TELUS International (TIXT), Alpha Metallurgical Resources (AMR), Fisker (FSR), Cinemark (CNK), Green Plains Energy (GPRE), Sunstone Hotel Investors (SHO), Tennant (TNC), United States Cellular (USM), Owens&Minor (OMI), Marcus & Millichap (MMI), GrafTech (EAF), Calumet (CLMT), Twist Bioscience (TWST), Fulgent Genetics (FLGT), Global Partners (GLP), AdvanSix (ASIX), American Axle&Manufacturing (AXL).
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Pre-Market U.S. Stock Movers Apple Inc (AAPL) dropped more than -1% in pre-market trading after the U.S. tech giant reported its third consecutive quarter of declining sales and projected a similar performance in the current quarter. In the bond markets, United States 10-Year rates are at 4.187%, down -0.10%. Japan’s Nikkei 225 Stock Index closed slightly higher today as investors exercised caution in anticipation of the release of U.S. nonfarm payrolls data.
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14494.0
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2023-08-04 00:00:00 UTC
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India to consider proposal to delay import licence order for laptops, tablets - source
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AAPL
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https://www.nasdaq.com/articles/india-to-consider-proposal-to-delay-import-licence-order-for-laptops-tablets-source
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nan
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nan
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By Shivangi Acharya and Nikunj Ohri
NEW DELHI, Aug 4 (Reuters) - The Indian government is likely to decide "soon" on an industry proposal to delay a plan to require import licences for laptops and tablets by three to six months, a senior government source said.
India has imposed a licensing requirement for imports of laptops, tablets and personal computers from Aug 3 in a surprise move. These products previously did not need import licences.
The move was aimed at addressing the trade imbalance with China, another government official, who did not want to be named, told reporters.
"Industry has sought a 3-6 month transition period .... We are examining the suggestions made by the industry and may soon issue an additional notice with clarifications if needed," the first government source, who also did not want to be named, told Reuters.
The government in its notification on Thursday gave no reason for the action, which could affect technology companies such as Apple AAPL.O, Dell DELL.N and Samsung 005930.KS and potentially see them boost local manufacturing.
Deputy IT Minister Rajeev Chandrasekhar on Friday said on the X social media platform, formerly known as Twitter, that "it is the government's objective to ensure trusted hardware and systems" and reduce dependence on imports.
The new rule will ensure India's tech eco-system uses only imports that are "trusted and verified systems," Chandrasekhar added.
India's trade ministry did not immediately reply to request for comment.
India's Electronics and IT ministry said New Delhi will issue licences for companies to import laptops and tablets within two days. Licences can be obtained online.
India will allow imports of laptop and tablets without licences where the shipment has been ordered before Aug 3 and the customs has been ordered to clear such consignments.
"Some consignments are held up at one or two ports and we have asked customs to clear them," the first government official said.
For licensing requests companies will have to provide information on consignment origin, number of pieces and past import history.
(Additional reporting by Tanvi Mehta; Editing by Jacqueline Wong and Jane Merriman)
((tanvi.mehta@thomsonreuters.com; https://twitter.com/TanviMehta710;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The government in its notification on Thursday gave no reason for the action, which could affect technology companies such as Apple AAPL.O, Dell DELL.N and Samsung 005930.KS and potentially see them boost local manufacturing. India has imposed a licensing requirement for imports of laptops, tablets and personal computers from Aug 3 in a surprise move. Deputy IT Minister Rajeev Chandrasekhar on Friday said on the X social media platform, formerly known as Twitter, that "it is the government's objective to ensure trusted hardware and systems" and reduce dependence on imports.
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The government in its notification on Thursday gave no reason for the action, which could affect technology companies such as Apple AAPL.O, Dell DELL.N and Samsung 005930.KS and potentially see them boost local manufacturing. By Shivangi Acharya and Nikunj Ohri NEW DELHI, Aug 4 (Reuters) - The Indian government is likely to decide "soon" on an industry proposal to delay a plan to require import licences for laptops and tablets by three to six months, a senior government source said. India has imposed a licensing requirement for imports of laptops, tablets and personal computers from Aug 3 in a surprise move.
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The government in its notification on Thursday gave no reason for the action, which could affect technology companies such as Apple AAPL.O, Dell DELL.N and Samsung 005930.KS and potentially see them boost local manufacturing. By Shivangi Acharya and Nikunj Ohri NEW DELHI, Aug 4 (Reuters) - The Indian government is likely to decide "soon" on an industry proposal to delay a plan to require import licences for laptops and tablets by three to six months, a senior government source said. India's Electronics and IT ministry said New Delhi will issue licences for companies to import laptops and tablets within two days.
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The government in its notification on Thursday gave no reason for the action, which could affect technology companies such as Apple AAPL.O, Dell DELL.N and Samsung 005930.KS and potentially see them boost local manufacturing. By Shivangi Acharya and Nikunj Ohri NEW DELHI, Aug 4 (Reuters) - The Indian government is likely to decide "soon" on an industry proposal to delay a plan to require import licences for laptops and tablets by three to six months, a senior government source said. India's Electronics and IT ministry said New Delhi will issue licences for companies to import laptops and tablets within two days.
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14495.0
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2023-08-04 00:00:00 UTC
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Pre-Market Most Active for Aug 4, 2023 : NKLA, TUP, QS, AMZN, SQQQ, TQQQ, FUBO, NIO, AAPL, YELL, PLTR, DT
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-4-2023-%3A-nkla-tup-qs-amzn-sqqq-tqqq-fubo-nio-aapl-yell-pltr
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 25.69 to 15,379.23. The total Pre-Market volume is currently 63,166,721 shares traded.
The following are the most active stocks for the pre-market session:
Nikola Corporation (NKLA) is -0.335 at $3.06, with 12,757,786 shares traded. Smarter Analyst Reports: Inside Nikola’s Newly Added Risk Factors
Tupperware Brands Corporation (TUP) is +2.11 at $5.63, with 8,374,073 shares traded. TUP's current last sale is 70.38% of the target price of $8.
QuantumScape Corporation (QS) is -0.98 at $7.83, with 4,841,019 shares traded. QS's current last sale is 111.86% of the target price of $7.
Amazon.com, Inc. (AMZN) is +11.39 at $140.30, with 3,330,266 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is -0.12 at $18.20, with 2,953,210 shares traded. This represents a 11.11% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is +0.32 at $42.04, with 2,671,931 shares traded. This represents a 161.12% increase from its 52 Week Low.
fuboTV Inc. (FUBO) is +0.49 at $3.70, with 2,479,915 shares traded. Smarter Analyst Reports: Friday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
NIO Inc. (NIO) is +0.33 at $15.79, with 1,903,211 shares traded. NIO's current last sale is 128.9% of the target price of $12.25.
Apple Inc. (AAPL) is -5.22 at $185.95, with 1,375,456 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Yellow Corporation (YELL) is +0.32 at $3.92, with 1,341,597 shares traded. YELL's current last sale is 82.53% of the target price of $4.75.
Palantir Technologies Inc. (PLTR) is +0.33 at $19.04, with 999,274 shares traded.PLTR is scheduled to provide an earnings report on 8/7/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 0.01 per share, which represents a -9 percent increase over the EPS one Year Ago
Dynatrace, Inc. (DT) is +0.17 at $47.91, with 697,071 shares traded. As reported by Zacks, the current mean recommendation for DT 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 -5.22 at $185.95, with 1,375,456 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Inside Nikola’s Newly Added Risk Factors
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -5.22 at $185.95, with 1,375,456 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
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Apple Inc. (AAPL) is -5.22 at $185.95, with 1,375,456 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 63,166,721 shares traded.
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Apple Inc. (AAPL) is -5.22 at $185.95, with 1,375,456 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 25.69 to 15,379.23.
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14496.0
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2023-08-04 00:00:00 UTC
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Two measures of corporate health flash red
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AAPL
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https://www.nasdaq.com/articles/two-measures-of-corporate-health-flash-red-0
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nan
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nan
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Adds graphic on container freight rates
LONDON, Aug 4 (Reuters) - Two measures of corporate and economic health were flashing red on Friday as shipping group Maersk reported a fall in global demand for sea containers and advertising giant WPP said clients in the U.S. tech sector were slashing their marketing spend.
A.P. Moller-Maersk MAERSKb.COlowered its estimate for global container trade this year as companies reduce inventories and higher interest rates and recession risks in Europe and the United States drag on global economic growth.
The company, one of the world's biggest container shippers, said it expects container volumes to fall by as much as 4%. It had previously forecast a decline of no more than 2.5%.
Maersk controls about one-sixth of global container trade, transporting goods for retailers and consumer companies such as Walmart WMT.N, Nike NKE.N and Unilever ULVR.L.
WPP WPP.L, the world's largest advertising group, warned that U.S. tech clients had pulled back spending in the second quarter, which Chief Executive Mark Read said took the company by surprise.
"Spend will pick up after a period of time, but I think we are nervous for the rest of the year because we can't get total clarity on when that's going to happen," he told Reuters.
The retreat in spending led WPP to follow rival Interpublic - which last month also blamed tech clients cutting marketing budgets - in lowering its growth forecast for this year, to 1.5-3.0% from 3-5%.
That was a stark contrast from February, when WPP, which owns the Ogilvy, Grey and GroupM agencies, reckoned clients would spend on marketing through any downturn to prop up sales and justify price rises.
Analysts said the news reflected caution among companies wrestling with higher borrowing costs and consumers tightening their own budgets amid a cost of living crisis.
Marketing spending is often the first to get cut when companies are worried about a strain on cash.
WAIT AND SEE
"Corporations are in wait-and-see mode when it comes to splashing the cash and handing margin over, at a time when demand is very tough to profile," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.
Apple AAPL.O on Thursday warned that its sales would decline for the fourth quarter in a row, although Amazon.com Inc AMZN.O was more upbeat, reporting sales growth and profit that beat Wall Street's expectations.
The signs of economic turbulence will underscore concerns that a bounce in China's economic activity after Beijing lifted its long COVID lockdowns will prove short-lived. Companies had bet that a Chinese rebound would help offset the impact from slowdowns in the U.S. and European economies.
The scope of stimulus Beijing has offered to revive the economy so far has underwhelmed the market.
Global firms from consumer goods giant Unilever to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N have warned of slowing earnings there as the world's second-largest economy loses its post-pandemic spring.
Expectations for second-quarter earnings are already low due in part to China's weakness. Refinitiv I/B/E/S data show U.S. and European companies are expected to report their worst quarterly results in years.
The International Monetary Fund last week said that it expects global economic growth to slow this year, led by advanced economies even as food prices have come down and the March banking turmoil has been contained.
It expects the global growth to slow to 3% this year and next, from 3.5% last year.
Echoing Maersk, DHL Group DHLn.DE, among the world's biggest shippers, said on Tuesday it saw drops of 16% and 7.1% respectively in air and ocean freight volumes in the first half, particularly on routes between China and its two biggest trading partners, the United States and Europe.
Major global firms warn of slow China sales as post-pandemic surge fades
GRAPHIC-Take Five: Stimulus, storms and soft landings
China's sagging economy looms over quarterly results around the world
ANALYSIS-European earnings face a low bar, but investor patience wears thin
GRAPHIC: Global container freight rates performance https://tmsnrt.rs/3KnQkwn
(Reporting by Reuters bureaus; Writing by Josephine Mason; Editing by Catherine Evans)
((Josephine.Mason@thomsonreuters.com; +44 207 542 7695; Reuters Messaging: josephine.mason.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O on Thursday warned that its sales would decline for the fourth quarter in a row, although Amazon.com Inc AMZN.O was more upbeat, reporting sales growth and profit that beat Wall Street's expectations. That was a stark contrast from February, when WPP, which owns the Ogilvy, Grey and GroupM agencies, reckoned clients would spend on marketing through any downturn to prop up sales and justify price rises. Global firms from consumer goods giant Unilever to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N have warned of slowing earnings there as the world's second-largest economy loses its post-pandemic spring.
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Apple AAPL.O on Thursday warned that its sales would decline for the fourth quarter in a row, although Amazon.com Inc AMZN.O was more upbeat, reporting sales growth and profit that beat Wall Street's expectations. Adds graphic on container freight rates LONDON, Aug 4 (Reuters) - Two measures of corporate and economic health were flashing red on Friday as shipping group Maersk reported a fall in global demand for sea containers and advertising giant WPP said clients in the U.S. tech sector were slashing their marketing spend. The company, one of the world's biggest container shippers, said it expects container volumes to fall by as much as 4%.
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Apple AAPL.O on Thursday warned that its sales would decline for the fourth quarter in a row, although Amazon.com Inc AMZN.O was more upbeat, reporting sales growth and profit that beat Wall Street's expectations. Adds graphic on container freight rates LONDON, Aug 4 (Reuters) - Two measures of corporate and economic health were flashing red on Friday as shipping group Maersk reported a fall in global demand for sea containers and advertising giant WPP said clients in the U.S. tech sector were slashing their marketing spend. Moller-Maersk MAERSKb.COlowered its estimate for global container trade this year as companies reduce inventories and higher interest rates and recession risks in Europe and the United States drag on global economic growth.
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Apple AAPL.O on Thursday warned that its sales would decline for the fourth quarter in a row, although Amazon.com Inc AMZN.O was more upbeat, reporting sales growth and profit that beat Wall Street's expectations. Adds graphic on container freight rates LONDON, Aug 4 (Reuters) - Two measures of corporate and economic health were flashing red on Friday as shipping group Maersk reported a fall in global demand for sea containers and advertising giant WPP said clients in the U.S. tech sector were slashing their marketing spend. The retreat in spending led WPP to follow rival Interpublic - which last month also blamed tech clients cutting marketing budgets - in lowering its growth forecast for this year, to 1.5-3.0% from 3-5%.
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14497.0
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2023-08-04 00:00:00 UTC
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1 'Magnificent Seven' Stock Has Warren Buffett's Berkshire Hathaway Betting Big
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AAPL
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https://www.nasdaq.com/articles/1-magnificent-seven-stock-has-warren-buffetts-berkshire-hathaway-betting-big
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nan
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nan
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Warren Buffett is one of the greatest business minds in American history. Under his leadership, Berkshire Hathaway stock compounded at 20% annually for nearly six decades, growing twice as fast as the S&P 500. Very few companies ever achieve that rate of success, and much of the credit goes to Buffett and his ability to identify rewarding investments.
Indeed, Buffett engineered dozens of savvy acquisitions over the years, and he helped Berkshire build a $328 billion equity investment portfolio. But investors may be surprised to learn that a single stock accounts for 46% of that total. Berkshire had $151 billion invested in Apple (NASDAQ: AAPL) as of the March quarter.
Apple is one of seven companies that have recently been dubbed the "Magnificent Seven" by Wall Street. The others are listed below:
Microsoft
Alphabet
Amazon
Nvidia
Tesla
Meta Platforms
The truly magnificent thing about the Magnificent Seven is the wealth they have created for shareholders. Those seven companies are collectively worth more than $11 trillion, and Apple is the largest of the bunch with a market cap of $3 trillion. Yet, Berkshire has never sold a single share of Apple stock, implying that the company and Buffett see plenty of upside still to come.
Apple reported mixed results in the third quarter
Apple delivered better-than-expected financial results for the fiscal third quarter (ended July 1), but its performance was far from extraordinary. Total revenue decreased 1.4% year over year to $81.8 billion, the third consecutive year-over-year decline in quarterly revenue, as weakness in the iPhone, Mac, and iPad segments more than offset strength in the services segment.
On the bright side, Apple continued to become more profitable. While revenue declined, gross profit increased 1.5% year over year to $36.4 billion as high-margin services accounted for a large chunk of total sales. That margin expansion trickled down to the bottom line, where GAAP net income climbed 2.3% to $19.9 billion. But earnings actually jumped 5% to $1.26 per diluted share as the company continued to buy back stock.
Image source: The Motley Fool.
Looking ahead, management expects sales in the iPhone and services segments to accelerate in the fiscal fourth quarter.
Apple has a durable competitive advantage
Warren Buffett sees a sustainable competitive advantage as the most important quality any business can possess. Competitive advantages come in different shapes and sizes, but they generally boil down to pricing power. A business that can raise prices without losing market share to the competition is a good business, according to Buffett, and he believes Apple has pricing power in spades.
Buffett made his point in a CNBC interview earlier this year: "If you're an Apple user and somebody offers you $10,000, but the only proviso is they'll take away your iPhone and you'll never be able to buy another, you're not going to take it," he said. Very few companies inspire that type of consumer loyalty or possess that kind of pricing power, but Apple is no ordinary company.
The investment thesis for Apple
The Apple brand is synonymous with premium devices, and the company enjoys a strong market presence in several consumer electronics verticals, including a leadership position in smartwatches and tablets. But the iPhone is the real breadwinner. Apple is the second-largest smartphone manufacturer in the world, and its market share has climbed 700 basis points to 17% over the last four years, while Samsung has only managed to tread water at 22%. That puts Apple in a good spot. The global smartphone market is expected to increase at 6.8% annually through 2030.
However, the company has more exciting growth opportunities on the services side of its business, where Apple monetizes its installed base of 2 billion active devices with higher-margin products like cloud storage, mobile app store content, streaming media, and financial services. Apple has a particularly strong foothold in two of those markets. The Apple App Store earns twice as much revenue as its closest competitor, and Apple Pay is nearly three times as popular among U.S. consumers as the next closest in-store mobile wallet.
That puts the company in a good position. The global mobile app market is expected to grow at 13.8% annually through 2030, and the U.S. mobile wallet market is expected to grow at 26.7% annually over the same period.
Is Apple stock worth buying?
Given the industry forecasts, investors can reasonably expect Apple to grow hardware revenue and services revenue in the mid-single digits and low double-digits, respectively, through the end of the decade. That gives Apple a good shot at growing total revenue between 6% and 9% annually over the same period.
However, its bottom line should grow more quickly because services revenue earns higher margins and the company consistently repurchases shares. Accounting for that, Apple has a good shot at growing earnings per share between 10% and 15% annually through 2030.
With that in mind, Apple stock currently trades at 32 times earnings, a premium to its three-year average of 24.7 times earnings. I question whether Apple can deliver market-beating returns over the next five to 10 years starting from that valuation, but Buffett evidently thinks otherwise. Investors eager to own this stock should start with a very small position.
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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. Trevor Jennewine has positions in Amazon.com, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, 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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Berkshire had $151 billion invested in Apple (NASDAQ: AAPL) as of the March quarter. Indeed, Buffett engineered dozens of savvy acquisitions over the years, and he helped Berkshire build a $328 billion equity investment portfolio. Apple is the second-largest smartphone manufacturer in the world, and its market share has climbed 700 basis points to 17% over the last four years, while Samsung has only managed to tread water at 22%.
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Berkshire had $151 billion invested in Apple (NASDAQ: AAPL) as of the March quarter. The others are listed below: Microsoft Alphabet Amazon Nvidia Tesla Meta Platforms The truly magnificent thing about the Magnificent Seven is the wealth they have created for shareholders. The global mobile app market is expected to grow at 13.8% annually through 2030, and the U.S. mobile wallet market is expected to grow at 26.7% annually over the same period.
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Berkshire had $151 billion invested in Apple (NASDAQ: AAPL) as of the March quarter. A business that can raise prices without losing market share to the competition is a good business, according to Buffett, and he believes Apple has pricing power in spades. The investment thesis for Apple The Apple brand is synonymous with premium devices, and the company enjoys a strong market presence in several consumer electronics verticals, including a leadership position in smartwatches and tablets.
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Berkshire had $151 billion invested in Apple (NASDAQ: AAPL) as of the March quarter. While revenue declined, gross profit increased 1.5% year over year to $36.4 billion as high-margin services accounted for a large chunk of total sales. Accounting for that, Apple has a good shot at growing earnings per share between 10% and 15% annually through 2030.
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14498.0
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2023-08-04 00:00:00 UTC
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Everyone's Watching These 2 Stocks Friday Morning
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AAPL
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https://www.nasdaq.com/articles/everyones-watching-these-2-stocks-friday-morning
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nan
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nan
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It looked as though Friday would be a quiet day for the stock market, at least based on premarket moves in major stock index futures. Small moves ruled the day, with futures on the Dow Jones Industrial Average (DJINDICES: ^DJI) moving slightly higher along with other indexes.
Yet there were plenty of big moves among key individual stocks. Investors had looked forward all week to what tech giants Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) would say in their latest financial reports. For those keeping score, Amazon was able to deliver everything investors wanted to see and then some, while Apple kept its shareholders somewhat nervous about what the next chapter for the iPhone maker will look like.
Amazing gains for Amazon
Shares of Amazon jumped 8% in premarket trading Friday morning. The e-commerce giant and cloud infrastructure services provider reported strong second-quarter financial results that affirmed its ability to keep growing even under the challenging macroeconomic conditions that consumers face right now.
Amazon's latest numbers highlighted its growth potential. Sales were up 11% year over year to $134.4 billion, outpacing calls from those following the stock for roughly 8% gains on the top line. Net income of $6.75 billion reversed a loss in the year-earlier period, and adjusted earnings of $0.65 per share were substantially higher than the $0.35-per-share consensus forecast among investors.
Both parts of Amazon's business showed encouraging signs. Sales for both the North American and international divisions of Amazon's e-commerce business were up double-digit percentages, showing the resilience of consumers even as high inflation has hurt their ability to spend on discretionary items. Meanwhile, the Amazon Web Services segment reported a 12% rise in revenue, lifted in part by the numerous applications that the company is providing its clients to assist in their efforts to use generative AI and other cutting-edge technology.
Investors have been concerned that a sluggish consumer economy could hurt Amazon. However, its guidance for sales growth of 9% to 13% in the third quarter and a substantial jump in operating income to between $5.5 billion and $8.5 billion bodes well for Amazon's prospects in both e-commerce and the cloud.
Apple falls from the tree
Things weren't as favorable for Apple, whose shares were down 3% in premarket trading Friday morning. The consumer electronics giant reported fiscal third-quarter results for the period ended June 30 that staved off the worst fears of shareholders but nevertheless left some questions unanswered.
Apple's financials were mixed. Sales of $81.8 billion were down slightly more than 1% year over year but didn't decline as much as some had projected. Net income of $19.9 billion rose 2% from year-ago levels, however, and adjusted earnings of $1.26 per share topped the consensus forecast among those following the stock by $0.07.
Apple got different levels of performance from various parts of its business. Revenue from iPhone sales fell short of forecasts, and a big drop in iPad revenue weighed on Apple's entire product line. However, services revenue of $21.2 billion was better than most had expected, and Apple reported that it had hit the 1 billion subscriber mark for its various service offerings.
Unlike many of its peers, Apple hasn't yet taken high-profile steps to rein in costs, and the rise in operating expenses during the quarter highlighted ongoing concerns about where the next phase of Apple's growth will come from. Artificial intelligence is an obvious place for exploration, but at least for now, Apple appears to be letting its rivals take the lead while keeping its own development behind the curtain.
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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. Dan Caplinger has positions in Amazon.com and Apple. 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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Investors had looked forward all week to what tech giants Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) would say in their latest financial reports. The e-commerce giant and cloud infrastructure services provider reported strong second-quarter financial results that affirmed its ability to keep growing even under the challenging macroeconomic conditions that consumers face right now. Sales for both the North American and international divisions of Amazon's e-commerce business were up double-digit percentages, showing the resilience of consumers even as high inflation has hurt their ability to spend on discretionary items.
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Investors had looked forward all week to what tech giants Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) would say in their latest financial reports. Amazing gains for Amazon Shares of Amazon jumped 8% in premarket trading Friday morning. The e-commerce giant and cloud infrastructure services provider reported strong second-quarter financial results that affirmed its ability to keep growing even under the challenging macroeconomic conditions that consumers face right now.
|
Investors had looked forward all week to what tech giants Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) would say in their latest financial reports. However, services revenue of $21.2 billion was better than most had expected, and Apple reported that it had hit the 1 billion subscriber mark for its various service offerings. 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.
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Investors had looked forward all week to what tech giants Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) would say in their latest financial reports. It looked as though Friday would be a quiet day for the stock market, at least based on premarket moves in major stock index futures. The e-commerce giant and cloud infrastructure services provider reported strong second-quarter financial results that affirmed its ability to keep growing even under the challenging macroeconomic conditions that consumers face right now.
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14499.0
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2023-08-04 00:00:00 UTC
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Citigroup Reiterates Apple (AAPL) Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/citigroup-reiterates-apple-aapl-buy-recommendation-0
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nan
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nan
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Fintel reports that on August 4, 2023, Citigroup reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 3.94% 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 3.94% from its latest reported closing price of 191.17.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6387 funds or institutions reporting positions in Apple. This is a decrease of 23 owner(s) or 0.36% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. Total shares owned by institutions decreased in the last three months by 2.05% to 9,903,041K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.79% 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 2.94% 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 2.19% 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 1.80% 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 1.48% 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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Fintel reports that on August 4, 2023, Citigroup reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Citigroup reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 4, 2023, Citigroup reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
|
Fintel reports that on August 4, 2023, Citigroup reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.97%, an increase of 32.24%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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