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14600.0
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2023-07-31 00:00:00 UTC
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GLOBAL MARKETS-Wall St little changed ahead of earnings, economic data
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AAPL
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https://www.nasdaq.com/articles/global-markets-wall-st-little-changed-ahead-of-earnings-economic-data
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nan
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nan
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By Lawrence Delevingne and Nell Mackenzie
July 31 (Reuters) - Wall Street and global stocks were virtually flat on Monday, while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due later this week.
The Dow Jones Industrial Average .DJI rose 0.1% to 35,494.87, the S&P 500 .SPX gained 0.07% to 4,585.64 and the Nasdaq Composite .IXIC added 0.14% to 14,337.36.
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O.
European shares gained modestly after euro zone inflation fell further in July seeing that most measures of underlying price growth also eased. Markets took this as a comforting sign for the European Central Bank (ECB) as it considers ending a brutal string of interest rate hikes.
The pan-European STOXX 600 index .STOXX rose by 0.3%, heading for a second consecutive monthly gain. MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.17%.
The modest gains came despite China's manufacturing activity falling for a fourth straight month in July, as demand remained weak at home and abroad, official surveys showed on Monday.
"Markets are treating information with a lot more sensitivity and people are looking into new information with a detailed eye," said Florian Ielpo, head of macro at Lombard Odier Investment Managers.
EYES ON THE HORIZON
Economic indicators that investors will be watching this week include the U.S. ISM surveys on manufacturing and services, as well as the July payrolls report.
"Data out this week should remain superficially consistent with the 'soft landing' narrative," Citi market strategists wrote in a note on Monday. "But the potential return to upside surprises to job growth would raise questions about whether slowing inflation can coexist with tight labor markets."
All three main U.S. indexes ended last week higher and appear set to gain this month as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
Upbeat quarterly earnings from megacap growth companies including Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O have also boosted investor sentiment.
Almost 30% of the S&P 500 reports results this week and so far earnings have been good enough to see the index extend its rally to 10% since the start of June.
The Dow Jones Industrial Average .DJI logged in July its longest winning streak in nearly four-decades underpinned by gains in sectors including healthcare, financials and energy that had underperformed during the first half of the year.
Paul Christopher, Wells Fargo Investment Institute's head of global investment strategy, urged caution given the potential for a weaker economy, slower disinflation, and narrower corporate profits.
"This year’s impressive equity rally has been driven by strong sentiment, without either the earnings growth or the directional improvement in economic data to justify current market multiples and valuations," Christopher wrote in a note on Monday.
RISING RATES
The Bank of England is widely expected to raise rates by at least a quarter point, but markets are more divided on whether the Reserve Bank of Australia will hike or stay on hold.
Traders cut bets on a continuing rally in the pound by the most since mid-June ahead of the Bank of England rate decision on Thursday.
Sterling has surged 24% from a record low of $1.033 against the dollar in September after a disastrous budget, hitting a 15-month high of $1.314 in mid-July.
The euro EUR=EBS was little changed at $1.101, as was the dollar index =USD, staying largely flat at $101.650.
The Japanese yen weakened about 0.6% versus the dollar JPY=. Investors continued to digest Friday's decision by the Bank of Japan (BOJ) to lift the lid on bond yields, in a step away from its ultra-easy policies.
Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
Japanese 10-year yields JP10YT=RR surged to a nine-year high up to 0.6% on Monday, and toward the new cap of 1.0%. That also put upward pressure on U.S. Treasury yields, where the 10-year US10YT=RR was down 2.2 basis points at 3.949%.
In commodities, spot gold XAU= added 0.5% to $1,968 an ounce, but still off from its 2023 peak in May above $2,000. GOL/
Oil prices were set to post their biggest monthly gains in more than a year on Monday, on expectations that Saudi Arabia will extend voluntary output cuts into September and tighten global supply. U.S. crude CLc1 rose 0.71% to $81.15 per barrel and Brent LCOc1 was at $85.39, up 0.47% on the day.
U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3OfmkDV
(Reporting by Lawrence Delevingne in Boston and Nell Mackenzie in London; Editing by Nick Macfie and Deepa Babington)
((lawrence.delevingne@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Lawrence Delevingne and Nell Mackenzie July 31 (Reuters) - Wall Street and global stocks were virtually flat on Monday, while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due later this week. "This year’s impressive equity rally has been driven by strong sentiment, without either the earnings growth or the directional improvement in economic data to justify current market multiples and valuations," Christopher wrote in a note on Monday.
|
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Lawrence Delevingne and Nell Mackenzie July 31 (Reuters) - Wall Street and global stocks were virtually flat on Monday, while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due later this week. The Dow Jones Industrial Average .DJI rose 0.1% to 35,494.87, the S&P 500 .SPX gained 0.07% to 4,585.64 and the Nasdaq Composite .IXIC added 0.14% to 14,337.36.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Lawrence Delevingne and Nell Mackenzie July 31 (Reuters) - Wall Street and global stocks were virtually flat on Monday, while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due later this week. All three main U.S. indexes ended last week higher and appear set to gain this month as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Lawrence Delevingne and Nell Mackenzie July 31 (Reuters) - Wall Street and global stocks were virtually flat on Monday, while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due later this week. The Dow Jones Industrial Average .DJI rose 0.1% to 35,494.87, the S&P 500 .SPX gained 0.07% to 4,585.64 and the Nasdaq Composite .IXIC added 0.14% to 14,337.36.
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14601.0
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2023-07-31 00:00:00 UTC
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GLOBAL MARKETS-Wall St holds gains as stock markets stay up on lower inflation
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AAPL
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https://www.nasdaq.com/articles/global-markets-wall-st-holds-gains-as-stock-markets-stay-up-on-lower-inflation
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nan
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nan
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By Lawrence Delevingne and Nell Mackenzie
July 31 (Reuters) - Wall Street and global stocks treaded cautiously higher on Monday, while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due later this week.
The Dow Jones Industrial Average .DJI rose 0.09% to 35,491.69, the S&P 500 .SPX gained 0.19% to 4,590.93 and the Nasdaq Composite .IXIC added 0.25% to 14,351.98.
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O.
European shares gained modestly after euro zone inflation fell further in July seeing that most measures of underlying price growth also eased. Markets took this as a comforting sign for the European Central Bank (ECB) as it considers ending a brutal string of interest rate hikes.
Germany's blue-chip stocks index hit a record high at one point and was last up 0.2% .GDAXI. The pan-European STOXX 600 index .STOXX rose by 0.2%, heading for a second consecutive monthly gain.
This lightened the mood in markets after China's manufacturing activity fell for a fourth straight month in July, as demand remained weak at home and abroad, official surveys showed on Monday.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.22%.
"Markets are treating information with a lot more sensitivity and people are looking into new information with a detailed eye," said Florian Ielpo, head of macro at Lombard Odier Investment Managers.
Within the detail of the euro zone report, Deutsche Bank's senior European analyst Marc de Muizon noted how service prices were resilient in the region but not as strong as they should be at the height of the 2023 tourism season.
"The apparent strength of the headline quarterly growth was driven by a few country idiosyncrasies and masks an underlying momentum that is likely much closer to stagnation," de Muizon said.
EYES ON THE HORIZON
Economic indicators that investors will be watching this week include the U.S. ISM surveys on manufacturing and services, as well as the July payrolls report.
"Data out this week should remain superficially consistent with the 'soft landing' narrative," Citi market strategists wrote in a note on Monday. "But the potential return to upside surprises to job growth would raise questions about whether slowing inflation can coexist with tight labor markets."
All three main U.S. indexes ended last week higher and appear set to gain this month as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
Upbeat quarterly earnings from megacap growth companies including Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O have also boosted investor sentiment.
Almost 30% of the S&P 500 report results this week and so far earnings have been good enough to see the index extend its rally to 10% since the start of June.
The Dow Jones Industrial Average .DJI logged in July its longest winning streak in nearly four-decades underpinned by gains in sectors including healthcare, financials and energy that had underperformed during the first half of the year.
The Bank of England is widely expected to raise rates by at least a quarter point, but markets are more divided on whether the Reserve Bank of Australia will hike or stay on hold.
Traders cut bets on a continuing rally in the pound by the most since mid-June ahead of the Bank of England rate decision on Thursday.
Sterling has surged 24% from a record low of $1.033 against the dollar in September after a disastrous budget, hitting a 15-month high of $1.314 in mid-July.
The euro EUR=EBSwas little changed at $1.103, as was the dollar index =USD, staying largely flat at $101.670. The Japanese yen weakened about 1% versus the dollar JPY=.
Investors continued to digest Friday's decision by the Bank of Japan (BOJ) to lift the lid on bond yields, in a step away from its ultra-easy policies.
Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
Japanese 10-year yields JP10YT=RR surged to a nine-year high up to 0.6% on Monday, and toward the new cap of 1.0%. That also put upward pressure on U.S. Treasury yields, where the 10-year US10YT=RRwas down 0.4 basis points at 3.965%.
In commodities, spot gold XAU= added 0.4% to $1,967 an ounce, but still off from its 2023 peak in May above $2,000. GOL/
Oil prices were set to post their biggest monthly gains in more than a year on Monday, on expectations that Saudi Arabia will extend voluntary output cuts into September and tighten global supply. U.S. crude CLc1 rose 0.83% to $81.25 per barrel and Brent LCOc1 was at $85.43, up 0.52% on the day.
U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3OfmkDV
(Reporting by Lawrence Delevingne in Boston and Nell Mackenzie in London; Editing by Nick Macfie)
((lawrence.delevingne@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Lawrence Delevingne and Nell Mackenzie July 31 (Reuters) - Wall Street and global stocks treaded cautiously higher on Monday, while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due later this week. Within the detail of the euro zone report, Deutsche Bank's senior European analyst Marc de Muizon noted how service prices were resilient in the region but not as strong as they should be at the height of the 2023 tourism season.
|
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Lawrence Delevingne and Nell Mackenzie July 31 (Reuters) - Wall Street and global stocks treaded cautiously higher on Monday, while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due later this week. Within the detail of the euro zone report, Deutsche Bank's senior European analyst Marc de Muizon noted how service prices were resilient in the region but not as strong as they should be at the height of the 2023 tourism season.
|
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Lawrence Delevingne and Nell Mackenzie July 31 (Reuters) - Wall Street and global stocks treaded cautiously higher on Monday, while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due later this week. All three main U.S. indexes ended last week higher and appear set to gain this month as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
|
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Lawrence Delevingne and Nell Mackenzie July 31 (Reuters) - Wall Street and global stocks treaded cautiously higher on Monday, while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due later this week. The Dow Jones Industrial Average .DJI rose 0.09% to 35,491.69, the S&P 500 .SPX gained 0.19% to 4,590.93 and the Nasdaq Composite .IXIC added 0.25% to 14,351.98.
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14602.0
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2023-07-31 00:00:00 UTC
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US STOCKS-Wall St finishes strong month on upbeat company earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-finishes-strong-month-on-upbeat-company-earnings
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nan
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nan
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By Echo Wang
July 31 (Reuters) - U.S. stocks closed little changed on Monday, ending a strong July on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy.
All three major stock indexes ended with gains for the month, ahead of a busy week of earnings reports from companies including Amazon.com AMZN.O and Apple AAPL.O, plus U.S. economic data including the jobs report.
"Without any meaningful catalysts (today), you get a market that's kind of in a holding pattern," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky, "and (that's) probably because there's so much on the near-term horizon."
Second-quarter earnings for S&P 500 companies are estimated to have fallen 6.4% year-over-year, Refinitiv data through Friday showed. While still negative, the forecast is an improvement from the 7.9% drop estimated a week earlier.
The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
Citigroup raised its 2023-end and mid-2024 S&P 500 targets to 4,600 and 5,000, respectively, to reflect a higher possibility of a soft landing.
The benchmark index is just under 5% away from its all-time intraday high hit on Jan. 4, 2022 while on course to gain for a fifth straight month.
Chicago Fed President Austan Goolsbee said the central bank was "walking the line pretty well" on bringing inflation down without causing a recession and will watch the data to judge if more monetary tightening may be appropriate in September.
The Dow Jones Industrial Average .DJI rose 100.24 points, or 0.28%, to 35,559.53; the S&P 500 .SPX gained 6.73 points, or 0.15%, at 4,588.96; and the Nasdaq Composite .IXIC added 29.37 points, or 0.21%, at 14,346.02.
Eight of the top 11 S&P 500 sectors posted gains, led by a 2% rise in energy stocks .SPNY.
"The main thing is the strengthened oil. We're above $80 a barrel ..., back all the way from the decline that was precipitated by the banking crisis. And that's really the big leader today by far," said Jay Hatfield, CEO of Infrastructure Capital Advisors in New York.
Financial services provider SoFi TechnologiesSOFI.Oadded 19.9%after reporting better-than-expected quarterly revenue.
ON Semiconductor ON.Ojumped 2.5% after the chipmaker forecast third-quarter revenue above market estimates.
Weighing on the Dow, Johnson & JohnsonJNJ.N shed 4.0% after a U.S. judge shot down the drugmaker's second attempt to resolve tens of thousands of lawsuits over its talc products.
AdobeADBE.O advanced 3.3%, outperforming tech peers, after Morgan Stanley raised its rating to "overweight" on the photoshop maker.
Volume on U.S. exchanges was 11.09 billion shares, compared with the 10.49 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered decliners on the NYSE by a 2.69-to-1 ratio; on Nasdaq, a 1.83-to-1 ratio favored advancers.
The S&P 500 posted 27 new 52-week highs and one new low; the Nasdaq Composite recorded 95 new highs and 57 new lows.
U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3rW0uxD
(Reporting by Echo Wang in New York, Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Vinay Dwivedi and Richard Chang)
((e.wang@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.
|
All three major stock indexes ended with gains for the month, ahead of a busy week of earnings reports from companies including Amazon.com AMZN.O and Apple AAPL.O, plus U.S. economic data including the jobs report. "Without any meaningful catalysts (today), you get a market that's kind of in a holding pattern," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky, "and (that's) probably because there's so much on the near-term horizon." The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
|
All three major stock indexes ended with gains for the month, ahead of a busy week of earnings reports from companies including Amazon.com AMZN.O and Apple AAPL.O, plus U.S. economic data including the jobs report. By Echo Wang July 31 (Reuters) - U.S. stocks closed little changed on Monday, ending a strong July on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
|
All three major stock indexes ended with gains for the month, ahead of a busy week of earnings reports from companies including Amazon.com AMZN.O and Apple AAPL.O, plus U.S. economic data including the jobs report. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings. U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3rW0uxD (Reporting by Echo Wang in New York, Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Vinay Dwivedi and Richard Chang) ((e.wang@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.
|
All three major stock indexes ended with gains for the month, ahead of a busy week of earnings reports from companies including Amazon.com AMZN.O and Apple AAPL.O, plus U.S. economic data including the jobs report. By Echo Wang July 31 (Reuters) - U.S. stocks closed little changed on Monday, ending a strong July on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy. ON Semiconductor ON.Ojumped 2.5% after the chipmaker forecast third-quarter revenue above market estimates.
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14603.0
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2023-07-31 00:00:00 UTC
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GLOBAL MARKETS-Wall Street holds gains ahead of earnings, jobs data
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AAPL
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https://www.nasdaq.com/articles/global-markets-wall-street-holds-gains-ahead-of-earnings-jobs-data
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nan
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nan
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By Lawrence Delevingne
July 31 (Reuters) - Wall Street and global stocks edged up on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings and a key employment report due this week.
The Dow Jones Industrial Average .DJI rose 0.28% to 35,560.19, the S&P 500 .SPX gained 0.15% to 4,589.15 and the Nasdaq Composite .IXIC added 0.21% to 14,346.02.
Apple Inc AAPL.O and Amazon.comAMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O and Advanced Micro Devices AMD.O.
European shares gained modestly after euro zone inflation fell further in July seeing that most measures of underlying price growth also eased. Markets took this as a comforting sign for the European Central Bank (ECB) as it considers ending a brutal string of interest rate hikes.
The pan-European STOXX 600 index .STOXX rose by 0.12%, a second consecutive monthly gain. MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.15%.
The modest gains came despite China's manufacturing activity falling for a fourth straight month in July, as demand remained weak at home and abroad, official surveys showed on Monday.
"Markets are treating information with a lot more sensitivity and people are looking into new information with a detailed eye," said Florian Ielpo, head of macro at Lombard Odier Investment Managers.
EYES ON THE HORIZON
Economic indicators that investors will be watching this week include the U.S. ISM surveys on manufacturing and services, as well as the July payrolls report.
"Data out this week should remain superficially consistent with the 'soft landing' narrative," Citi market strategists wrote in a note. "But the potential return to upside surprises to job growth would raise questions about whether slowing inflation can coexist with tight labor markets."
All three main U.S. indexes have posted recent gains as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
Upbeat quarterly earnings from megacap growth companies including Alphabet GOOGL.O and Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O have also boosted investor sentiment.
Almost 30% of the S&P 500 reports results this week. The index is now up nearly 20% for the year.
Paul Christopher, Wells Fargo Investment Institute's head of global investment strategy, urged caution given the potential for a weaker economy, slower disinflation and narrower corporate profits.
"This year's impressive equity rally has been driven by strong sentiment, without either the earnings growth or the directional improvement in economic data to justify current market multiples and valuations," Christopher wrote in a note.
RISING RATES
Chicago Federal Reserve Bank President Austan Goolsbee on Monday said the U.S. central bank is "walking the line pretty well" on bringing inflation down without causing a recession, and will watch the data as September approaches to judge if more monetary tightening may be appropriate.
The Bank of England is widely expected to raise rates by at least a quarter point. Traders cut bets on a continuing rally in the pound by the most since mid-June ahead of the Bank of England rate decision on Thursday.
Sterling has surged 24% from a record low of $1.033 against the dollar in September after a disastrous budget, hitting a 15-month high of $1.314 in mid-July.
The dollar edged higher=USD on Monday after a survey from the Federal Reserve showed U.S. banks reported tighter credit standards and weaker loan demand during the second quarter, a sign rising interest rates are having an impact on the economy.
The Japanese yen weakened about 0.8% versus the dollar JPY=. Investors continued to digest Friday's decision by the Bank of Japan (BOJ) to lift the lid on bond yields in a step away from its ultra-easy policies.
Japanese 10-year yields JP10YT=RR surged to a nine-year high up to 0.6% on Monday, and toward the new cap of 1.0%.
U.S. Treasury yields were marginally lower, with investors waiting for employment data to assess the impact of the Fed's monetary tightening campaign on the economy. The 10-year US10YT=RR was down 1 basis point at 3.961%.
In commodities, gold prices rose, putting them on track for their best month in four, helped by a weaker dollar and expectations that major global central banks are nearing a peak with interest rate hikes. Spot gold XAU= added 0.3% to $1,965 an ounce GOL/
Oil prices rallied to a fresh three-month high and recorded their steepest monthly gains since January 2022, supported by signs of tightening global supply and rising demand through the rest of this year.
U.S. crude CLc1 rose 1.63% to $81.89 per barrel and Brent LCOc1 was at $85.56, up 0.67% on the day.
U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3OfmkDV
(Reporting by Lawrence Delevingne in Boston and Nell Mackenzie in London; Editing by Nick Macfie, Will Dunham and Deepa Babington)
((lawrence.delevingne@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc AAPL.O and Amazon.comAMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O and Advanced Micro Devices AMD.O. By Lawrence Delevingne July 31 (Reuters) - Wall Street and global stocks edged up on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings and a key employment report due this week. The dollar edged higher=USD on Monday after a survey from the Federal Reserve showed U.S. banks reported tighter credit standards and weaker loan demand during the second quarter, a sign rising interest rates are having an impact on the economy.
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Apple Inc AAPL.O and Amazon.comAMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O and Advanced Micro Devices AMD.O. By Lawrence Delevingne July 31 (Reuters) - Wall Street and global stocks edged up on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings and a key employment report due this week. All three main U.S. indexes have posted recent gains as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
|
Apple Inc AAPL.O and Amazon.comAMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O and Advanced Micro Devices AMD.O. By Lawrence Delevingne July 31 (Reuters) - Wall Street and global stocks edged up on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings and a key employment report due this week. The dollar edged higher=USD on Monday after a survey from the Federal Reserve showed U.S. banks reported tighter credit standards and weaker loan demand during the second quarter, a sign rising interest rates are having an impact on the economy.
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Apple Inc AAPL.O and Amazon.comAMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O and Advanced Micro Devices AMD.O. By Lawrence Delevingne July 31 (Reuters) - Wall Street and global stocks edged up on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings and a key employment report due this week. Almost 30% of the S&P 500 reports results this week.
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14604.0
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2023-07-31 00:00:00 UTC
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US STOCKS-Wall St ends strong month on upbeat company earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-ends-strong-month-on-upbeat-company-earnings
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By Echo Wang
July 31 (Reuters) - U.S. stocks ended little changed on Monday, ending a strong July on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy.
All three major stock indexes ended with gains for the month, ahead of a busy week of earnings reports from companies including Amazon.com AMZN.O and Apple AAPL.O, plus economic data including the jobs report.
"Without any meaningful catalysts (today), you get a market that's kind of in a holding pattern," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky, "and (that's) probably because there's so much on the near-term horizon."
Second-quarter earnings for S&P 500 companies are estimated to have fallen 6.4% year-over-year, Refinitiv data through Friday showed. While still negative, the forecast is an improvement from the 7.9% drop estimated a week earlier.
The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
Citigroup raised its 2023-end and mid-2024 S&P 500 targets to 4,600 and 5,000, respectively, to reflect a higher possibility of a soft landing.
The benchmark index is just under 5% away from its all-time intraday high hit on Jan. 4, 2022 while on course to gain for a fifth straight month.
Chicago Fed President Austan Goolsbee said the central bank was "walking the line pretty well" on bringing inflation down without causing a recession and will watch the data to judge if more monetary tightening may be appropriate in September.
According to preliminary data, the S&P 500 .SPX gained 7.64 points, or 0.17%, to end at 4,589.15 points, while the Nasdaq Composite .IXIC gained 29.37 points, or 0.21%, to 14,348.50. The Dow Jones Industrial Average .DJI rose 106.74 points, or 0.30%, to 35,566.95.
Nearly half of the top 11 S&P 500 sectors posted gains, led by a rise in energy stocks .SPNY.
"The main thing is the strengthened oil. We're above $80 a barrel ..., back all the way from the decline that was precipitated by the banking crisis. And that's really the big leader today by far," said Jay Hatfield, CEO of Infrastructure Capital Advisors in New York.
Shares of financial services provider SoFi TechnologiesSOFI.O rose after reporting better-than-expected quarterly revenue.
ON Semiconductor ON.Osharesjumped after the chipmaker forecast third-quarter revenue above market estimates.
Weighing on the Dow, shares ofJohnson & JohnsonJNJ.N dropped after a U.S. judge shot down the drugmaker's second attempt to resolve tens of thousands of lawsuits over its talc products.
AdobeADBE.Ostocks rose, outperforming tech peers, after Morgan Stanley raised its rating to "overweight" on the photoshop maker.
U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3rW0uxD
(Reporting by Echo Wang in New York, Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Vinay Dwivedi and Richard Chang)
((e.wang@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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All three major stock indexes ended with gains for the month, ahead of a busy week of earnings reports from companies including Amazon.com AMZN.O and Apple AAPL.O, plus economic data including the jobs report. "Without any meaningful catalysts (today), you get a market that's kind of in a holding pattern," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky, "and (that's) probably because there's so much on the near-term horizon." The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
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All three major stock indexes ended with gains for the month, ahead of a busy week of earnings reports from companies including Amazon.com AMZN.O and Apple AAPL.O, plus economic data including the jobs report. By Echo Wang July 31 (Reuters) - U.S. stocks ended little changed on Monday, ending a strong July on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
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All three major stock indexes ended with gains for the month, ahead of a busy week of earnings reports from companies including Amazon.com AMZN.O and Apple AAPL.O, plus economic data including the jobs report. According to preliminary data, the S&P 500 .SPX gained 7.64 points, or 0.17%, to end at 4,589.15 points, while the Nasdaq Composite .IXIC gained 29.37 points, or 0.21%, to 14,348.50. U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3rW0uxD (Reporting by Echo Wang in New York, Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Vinay Dwivedi and Richard Chang) ((e.wang@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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All three major stock indexes ended with gains for the month, ahead of a busy week of earnings reports from companies including Amazon.com AMZN.O and Apple AAPL.O, plus economic data including the jobs report. By Echo Wang July 31 (Reuters) - U.S. stocks ended little changed on Monday, ending a strong July on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy. ON Semiconductor ON.Osharesjumped after the chipmaker forecast third-quarter revenue above market estimates.
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2023-07-31 00:00:00 UTC
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Apple supplier Foxconn plans $500 mln component factories in India - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconn-plans-%24500-mln-component-factories-in-india-bloomberg-news
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nan
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Adds investment details in paragraphs 2 and 3
July 31 (Reuters) - Apple's AAPL.O main supplier, Foxconn Technology Group 2317.TW, is planning to invest close to $500 million to build two component factories in India, Bloomberg News reported on Monday, citing people familiar with the matter.
These factories will be built in the southern state of Karnataka and at least one of them will produce Apple parts, including for iPhones, the report said.
The exact locations of the new plants in the state are yet to be decided and a formal announcement is expected as early as this week.
Foxconn and Apple did not immediately respond to Reuters requests for comment.
Karnataka has already approved investment to the tune of 80 billion rupees ($972.88 million) by a Foxconn unit in March, making it the third southern Indian state after Andhra Pradesh and Tamil Nadu to allow Foxconn plants.
As part of its investment drive in India in its bid to diversify beyond China, the Taiwanese company has also signed a deal with Tamil Nadu to invest 16 billion rupees in a new electronic components manufacturing facility that will create 6,000 jobs, the state government said on Monday.
The Foxconn Industrial Internet 601138.SS facility will be built in the Kancheepuram district near the state capital of Chennai, a state government source said on condition of anonymity as details are not yet public.
($1 = 82.2300 Indian rupees)
(Reporting by Urvi Dugar and Chavi Mehta in Bengaluru; Editing by Arun Koyyur)
((UrviManoj.Dugar@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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Adds investment details in paragraphs 2 and 3 July 31 (Reuters) - Apple's AAPL.O main supplier, Foxconn Technology Group 2317.TW, is planning to invest close to $500 million to build two component factories in India, Bloomberg News reported on Monday, citing people familiar with the matter. These factories will be built in the southern state of Karnataka and at least one of them will produce Apple parts, including for iPhones, the report said. As part of its investment drive in India in its bid to diversify beyond China, the Taiwanese company has also signed a deal with Tamil Nadu to invest 16 billion rupees in a new electronic components manufacturing facility that will create 6,000 jobs, the state government said on Monday.
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Adds investment details in paragraphs 2 and 3 July 31 (Reuters) - Apple's AAPL.O main supplier, Foxconn Technology Group 2317.TW, is planning to invest close to $500 million to build two component factories in India, Bloomberg News reported on Monday, citing people familiar with the matter. Karnataka has already approved investment to the tune of 80 billion rupees ($972.88 million) by a Foxconn unit in March, making it the third southern Indian state after Andhra Pradesh and Tamil Nadu to allow Foxconn plants. As part of its investment drive in India in its bid to diversify beyond China, the Taiwanese company has also signed a deal with Tamil Nadu to invest 16 billion rupees in a new electronic components manufacturing facility that will create 6,000 jobs, the state government said on Monday.
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Adds investment details in paragraphs 2 and 3 July 31 (Reuters) - Apple's AAPL.O main supplier, Foxconn Technology Group 2317.TW, is planning to invest close to $500 million to build two component factories in India, Bloomberg News reported on Monday, citing people familiar with the matter. Karnataka has already approved investment to the tune of 80 billion rupees ($972.88 million) by a Foxconn unit in March, making it the third southern Indian state after Andhra Pradesh and Tamil Nadu to allow Foxconn plants. As part of its investment drive in India in its bid to diversify beyond China, the Taiwanese company has also signed a deal with Tamil Nadu to invest 16 billion rupees in a new electronic components manufacturing facility that will create 6,000 jobs, the state government said on Monday.
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Adds investment details in paragraphs 2 and 3 July 31 (Reuters) - Apple's AAPL.O main supplier, Foxconn Technology Group 2317.TW, is planning to invest close to $500 million to build two component factories in India, Bloomberg News reported on Monday, citing people familiar with the matter. The exact locations of the new plants in the state are yet to be decided and a formal announcement is expected as early as this week. Karnataka has already approved investment to the tune of 80 billion rupees ($972.88 million) by a Foxconn unit in March, making it the third southern Indian state after Andhra Pradesh and Tamil Nadu to allow Foxconn plants.
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14606.0
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2023-07-31 00:00:00 UTC
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The Easiest Way to Remember the "Magnificent 7" Stocks -- And Why You Should Care
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AAPL
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https://www.nasdaq.com/articles/the-easiest-way-to-remember-the-magnificent-7-stocks-and-why-you-should-care
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nan
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Those handy-dandy short lists of the most important stocks on the market are great. They don't last forever, though. The FAANG club is getting long in the tooth, so Wall Street came up with a new elite group. The Magnificent 7 rolls off the tongue, but the name doesn't hold many clues to the identity of the seven components.
So I'm here to straighten it out for you. I will forevermore think of the Magnificent 7 as the MAMA ANT stocks. The queen of Wall Street's stock hive even breaks down into two distinct groups, making it even easier to remember.
In a couple of minutes, you'll be able to rattle off the seven members in your sleep -- Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA).
Easy peasy. Let me show you what I mean.
The MAMA ANT mnemonic
So the Magnificent 7 list corresponds to the absolute top of the market right now, but that could change in a heartbeat. Bubbling right below the smallest of these giants, you'll find Warren Buffett's Berkshire Hathaway, financial services veteran Visa, and health insurance behemoth UnitedHealth Group. They all use AI tools, of course, but none look like direct beneficiaries of the AI surge, and I would never classify them as tech stocks. So you could memorize the top of the market cap list, but that list could go obsolete at the drop of a chatbot's hat.
So if you want to keep an eye on the Magnificent 7 in the long run, you'll be better off with a proper acronym. And that's where my MAMA ANT idea comes in.
It's a short, snappy phrase with two common English words. The queen of an ant colony is extremely important to the health of the whole community, and these seven stocks have a similar role in today's stock market. Best of all, the two words come with distinctly different groups of business plans.
The MAMA group focuses on software and services above all else, including the three largest cloud computing platforms:
Microsoft (software and cloud computing)
Amazon (e-commerce and cloud computing)
Meta Platforms (social media)
Alphabet (Google parent)
And the ANT list lives on the hardware side of the tracks:
Apple (iPhones, iPads)
Nvidia (semiconductors)
Tesla (electric vehicles and solar power)
There you have it -- an easy-to-remember list of the most important AI stocks in the first half of 2023.
What's the big deal with these 7 stocks, anyway?
Bank of America analyst Michael Hartnett coined the "Magnificent 7" term two months ago. Though it may sound like a compliment, Hartnett warned investors that this group of seven heavyweights seem to spearhead a "baby bubble" that could pop soon. Most of the stocks on his list have scored big gains in 2023 for two main reasons: a stabilizing economy and the ongoing artificial intelligence (AI) boom.
So you shouldn't see the list as an outright recommendation to buy these massive stocks. However, the seven members most certainly deserve a generous serving of respect. These numbers tell the story:
COMPANY
MARKET CAP (BILLIONS)
S&P 500 WEIGHT
Apple
$3,080
7.5%
Microsoft
$2,515
6.5%
Amazon
$1,357
3%
Nvidia
$1,155
3%
Alphabet Class A
$1,706
2%
Alphabet Class C
$1,706
1.8%
Meta Platforms
$835
1.8%
Tesla
$834
1.8%
Data source: Slickcharts.com on July 31, 2023.
These seven companies (and eight stocks due to Alphabet's dual-class ownership structure) have a combined market cap of $13.2 trillion. In the cap-weighted S&P 500, they account for 27.4% of the total index value. So when these elephants dance, the earth shakes on Wall Street.
At the end of 2022, the MAMA ANT stocks added up to a market value of $8 trillion. So this group has delivered an average return of 64% year to date, far outpacing the 19% return of the S&P 500 as a whole.
Today, these are the most valuable stocks on the market. They are also among this year's strongest market performers. Microsoft brings up the rear with a 41% year-to-date return. That's the 45th-highest gain among all S&P 500 stocks. At the top of the list, Nvidia has gained 221% over the same period.
They also share a close connection to the booming AI market. That's the train they rode to the top in 2023, and Hartnett doesn't like the intensely concentrated market risk this grouping brings to the most popular market index.
The analyst suggests that the AI market may be setting itself up for a painful correction when the skyrocketing surge runs out of steam. The dot-com bubble at the turn of the millennium springs to mind, and the tech-heavy Nasdaq Composite Index took 15 years to recover from the peak of that short-lived surge.
Hartnett's bearish argument makes sense to some degree. The AI bonanza is almost certainly pushing some stocks skyward with more enthusiasm than they deserve. Yes, AI tools will change the business world in a myriad different ways, but so did the internet 20 years ago and that game-changing market shift was still painful. Every AI stock won't be a winner, and there are probably a couple of weak long-term ideas on the MAMA ANT list.
So I don't know how long MAMA ANT will be helpful and relevant, but the queen ant should at least serve as a useful launching point for deeper research into the AI-based stock surge. It's a good idea to sort the long-term winners out from the overhyped wannabes.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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. Anders Bylund has positions in Alphabet, Amazon.com, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Tesla, and Visa. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a couple of minutes, you'll be able to rattle off the seven members in your sleep -- Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA). Bubbling right below the smallest of these giants, you'll find Warren Buffett's Berkshire Hathaway, financial services veteran Visa, and health insurance behemoth UnitedHealth Group. The dot-com bubble at the turn of the millennium springs to mind, and the tech-heavy Nasdaq Composite Index took 15 years to recover from the peak of that short-lived surge.
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In a couple of minutes, you'll be able to rattle off the seven members in your sleep -- Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA). The MAMA group focuses on software and services above all else, including the three largest cloud computing platforms: Microsoft (software and cloud computing) Amazon (e-commerce and cloud computing) Meta Platforms (social media) Alphabet (Google parent) And the ANT list lives on the hardware side of the tracks: Apple (iPhones, iPads) Nvidia (semiconductors) Tesla (electric vehicles and solar power) There you have it -- an easy-to-remember list of the most important AI stocks in the first half of 2023. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Tesla, and Visa.
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In a couple of minutes, you'll be able to rattle off the seven members in your sleep -- Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA). The queen of an ant colony is extremely important to the health of the whole community, and these seven stocks have a similar role in today's stock market. The MAMA group focuses on software and services above all else, including the three largest cloud computing platforms: Microsoft (software and cloud computing) Amazon (e-commerce and cloud computing) Meta Platforms (social media) Alphabet (Google parent) And the ANT list lives on the hardware side of the tracks: Apple (iPhones, iPads) Nvidia (semiconductors) Tesla (electric vehicles and solar power) There you have it -- an easy-to-remember list of the most important AI stocks in the first half of 2023.
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In a couple of minutes, you'll be able to rattle off the seven members in your sleep -- Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA). I will forevermore think of the Magnificent 7 as the MAMA ANT stocks. The queen of Wall Street's stock hive even breaks down into two distinct groups, making it even easier to remember.
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14607.0
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2023-07-31 00:00:00 UTC
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GLOBAL MARKETS-Wall Street little changed ahead of earnings, economic data
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AAPL
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https://www.nasdaq.com/articles/global-markets-wall-street-little-changed-ahead-of-earnings-economic-data
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nan
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nan
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By Lawrence Delevingne
July 31 (Reuters) - Wall Street and global stocks were virtually flat on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due this week.
The Dow Jones Industrial Average .DJI rose 0.11%, to 35,499.78, the S&P 500 .SPX was little changed at 4,582.45 and the Nasdaq Composite .IXIC added 0.07%, to 14,326.87.
Apple Inc AAPL.O and Amazon.comAMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O and Advanced Micro Devices AMD.O.
European shares gained modestly after euro zone inflation fell further in July seeing that most measures of underlying price growth also eased. Markets took this as a comforting sign for the European Central Bank (ECB) as it considers ending a brutal string of interest rate hikes.
The pan-European STOXX 600 index .STOXX rose by 0.12%, heading for a second consecutive monthly gain. MSCI's gauge of stocks across the globe .MIWD00000PUS gained about 0.1%.
The modest gains came despite China's manufacturing activity falling for a fourth straight month in July, as demand remained weak at home and abroad, official surveys showed on Monday.
"Markets are treating information with a lot more sensitivity and people are looking into new information with a detailed eye," said Florian Ielpo, head of macro at Lombard Odier Investment Managers.
EYES ON THE HORIZON
Economic indicators that investors will be watching this week include the U.S. ISM surveys on manufacturing and services, as well as the July payrolls report.
"Data out this week should remain superficially consistent with the 'soft landing' narrative," Citi market strategists wrote in a note. "But the potential return to upside surprises to job growth would raise questions about whether slowing inflation can coexist with tight labor markets."
All three main U.S. indexes ended last week higher and appear set to gain this month as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
Upbeat quarterly earnings from megacap growth companies including Alphabet GOOGL.O and Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O have also boosted investor sentiment.
Almost 30% of the S&P 500 reports results this week. So far earnings have been good enough to see the index extend its rally to 10% since the start of June.
Paul Christopher, Wells Fargo Investment Institute's head of global investment strategy, urged caution given the potential for a weaker economy, slower disinflation and narrower corporate profits.
"This year's impressive equity rally has been driven by strong sentiment, without either the earnings growth or the directional improvement in economic data to justify current market multiples and valuations," Christopher wrote in a note.
RISING RATES
The Bank of England is widely expected to raise rates by at least a quarter point. Traders cut bets on a continuing rally in the pound by the most since mid-June ahead of the Bank of England rate decision on Thursday.
Sterling has surged 24% from a record low of $1.033 against the dollar in September after a disastrous budget, hitting a 15-month high of $1.314 in mid-July.
The euro EUR=EBS was little changed at $1.101, with the dollar index =USD edging up to $101.750.
The Japanese yen weakened about 0.7% versus the dollar JPY=. Investors continued to digest Friday's decision by the Bank of Japan (BOJ) to lift the lid on bond yields in a step away from its ultra-easy policies.
Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
Japanese 10-year yields JP10YT=RR surged to a nine-year high up to 0.6% on Monday, and toward the new cap of 1.0%. That also put upward pressure on U.S. Treasury yields, where the 10-year US10YT=RR was down 3.6 basis points at 3.933%.
In commodities, spot gold XAU= added 0.6% to $1,970 an ounce, but still off from its 2023 peak in May above $2,000. GOL/
Oil prices were set to post their biggest monthly gains in more than a year on Monday on expectations that Saudi Arabia will extend voluntary output cuts into September and tighten global supply. U.S. crude CLc1 rose about 1% to $81.37 per barrel and Brent LCOc1 was at $85.45, up 0.54% on the day.
U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3OfmkDV
(Reporting by Lawrence Delevingne in Boston and Nell Mackenzie in London; Editing by Nick Macfie, Will Dunham and Deepa Babington)
((lawrence.delevingne@tr.com ))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O and Amazon.comAMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O and Advanced Micro Devices AMD.O. By Lawrence Delevingne July 31 (Reuters) - Wall Street and global stocks were virtually flat on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due this week. "This year's impressive equity rally has been driven by strong sentiment, without either the earnings growth or the directional improvement in economic data to justify current market multiples and valuations," Christopher wrote in a note.
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Apple Inc AAPL.O and Amazon.comAMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O and Advanced Micro Devices AMD.O. By Lawrence Delevingne July 31 (Reuters) - Wall Street and global stocks were virtually flat on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due this week. All three main U.S. indexes ended last week higher and appear set to gain this month as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
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Apple Inc AAPL.O and Amazon.comAMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O and Advanced Micro Devices AMD.O. By Lawrence Delevingne July 31 (Reuters) - Wall Street and global stocks were virtually flat on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due this week. All three main U.S. indexes ended last week higher and appear set to gain this month as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
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Apple Inc AAPL.O and Amazon.comAMZN.O both report on Thursday, while other well-known names with results due include Caterpillar Inc CAT.N, Starbucks Corp SBUX.O and Advanced Micro Devices AMD.O. By Lawrence Delevingne July 31 (Reuters) - Wall Street and global stocks were virtually flat on Monday while oil prices gained and the dollar was little changed, as traders looked ahead to corporate earnings, central bank meetings and a key employment report due this week. All three main U.S. indexes ended last week higher and appear set to gain this month as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
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14608.0
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2023-07-31 00:00:00 UTC
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These 2 Stocks Will Move the Market This Week
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AAPL
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https://www.nasdaq.com/articles/these-2-stocks-will-move-the-market-this-week
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nan
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nan
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The stock market has been performing well in recent months, and it now appears as if new all-time highs for some popular market benchmarks could be within reach. Despite persistent worries about the economy, market participants have started to appreciate that inflation rates are lower than in the past and that consumers are holding up better than many had expected.
In the long run, the stock market's performance depends on companies having strong businesses, and plenty of companies will release their financial results to tell shareholders how they're doing on that front this week.
But two will have the biggest roles in determining the direction of the stock market in August and for the rest of the year. Below, you'll see more about what to expect from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) when they release their financial results later this week.
Can Apple keep growing?
Shares of Apple have soared so far this year, climbing more than 50% since the beginning of 2023. Yet expectations for the iPhone maker are relatively muted in anticipation of its fiscal third-quarter earnings report on Thursday, Aug. 3, after the market closes.
Apple is likely to have earned $1.19 per share in the period ended June 24, according to the latest consensus forecasts among investors following the tech giant. Revenue projections are for roughly $81.6 billion. Both of those figures would be slight decreases from year-ago levels.
The sluggishness continues trends that Apple has seen earlier this year. In its report for the fiscal second quarter in early May, the company had revenue of $94.8 billion. That figure was almost $2 billion higher than what most investors had anticipated, but it was also down 3% from the same period the previous year. It took record iPhone sales to help support overall revenue and to keep earnings roughly flat compared to year-earlier levels.
Even though some inflationary pressures have eased up, there are ongoing signs that consumers are starting to struggle due in part to higher interest rates from the Federal Reserve. So far, employment trends have remained strong, and that has helped to keep the consumer economy chugging along.
Yet that could change, and Apple investors seem to fear that the fallout from a recession or even a more substantial slowdown could eat into the ability of the company's customers to buy the latest high-end consumer electronics.
Amazon hopes for stronger gains
Meanwhile, Amazon is scheduled to release its earnings report late Thursday afternoon as well. The e-commerce pioneer and cloud infrastructure services provider has also seen its stock rise more than 50% year to date, but shareholders are counting on better growth from Amazon than from Apple.
Investors are looking for Amazon to earn $0.35 per share in the second quarter on sales of $131.5 billion. Both of those figures would be favorable compared to year-ago results, and it could be a nice pickup from tepid first-quarter performance, which showed flat e-commerce product sales in light of macroeconomic pressures. The Amazon Web Services (AWS) division kept doing most of the work in helping the overall business expand.
On the consumer front, investors hope that the company's optional membership-based model will keep panning out. The Prime Day event this summer won't show up in second-quarter results, but the event in early July produced the most sales ever, with more than 375 million items purchased and with savings of more than $2.5 billion.
Amazon's consumer business is quite visible, but most investors will watch to see how much AWS is able to profit from the drive toward innovation in artificial intelligence and cloud computing. If those efforts are doing well, they could help push profits upward for years to come regardless of how consumers are faring.
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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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Below, you'll see more about what to expect from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) when they release their financial results later this week. Even though some inflationary pressures have eased up, there are ongoing signs that consumers are starting to struggle due in part to higher interest rates from the Federal Reserve. Yet that could change, and Apple investors seem to fear that the fallout from a recession or even a more substantial slowdown could eat into the ability of the company's customers to buy the latest high-end consumer electronics.
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Below, you'll see more about what to expect from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) when they release their financial results later this week. In the long run, the stock market's performance depends on companies having strong businesses, and plenty of companies will release their financial results to tell shareholders how they're doing on that front this week. It took record iPhone sales to help support overall revenue and to keep earnings roughly flat compared to year-earlier levels.
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Below, you'll see more about what to expect from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) when they release their financial results later this week. In the long run, the stock market's performance depends on companies having strong businesses, and plenty of companies will release their financial results to tell shareholders how they're doing on that front this week. The e-commerce pioneer and cloud infrastructure services provider has also seen its stock rise more than 50% year to date, but shareholders are counting on better growth from Amazon than from Apple.
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Below, you'll see more about what to expect from Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) when they release their financial results later this week. In the long run, the stock market's performance depends on companies having strong businesses, and plenty of companies will release their financial results to tell shareholders how they're doing on that front this week. Investors are looking for Amazon to earn $0.35 per share in the second quarter on sales of $131.5 billion.
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14609.0
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2023-07-31 00:00:00 UTC
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Wall St inches up, eyes monthly gain on U.S. soft landing hopes
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AAPL
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https://www.nasdaq.com/articles/wall-st-inches-up-eyes-monthly-gain-on-u.s.-soft-landing-hopes
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nan
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nan
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By Johann M Cherian and Bansari Mayur Kamdar
July 31 (Reuters) - Wall Street rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause.
Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus.
Second-quarter earnings for S&P 500 companies are now estimated to have fallen 6.4% year-over-year, according to Refinitiv data. While still negative, the forecast is an improvement from the 7.9% drop estimated a week earlier.
"It looks like investors are taking a little bit of a pause," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
"The jury is still out on Amazon and Apple and markets are waiting to see if we get some positive news like we got out of Meta or Google, or if we see somewhat disappointing news like we saw with Microsoft."
The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
Citigroup raised its 2023-end and mid-2024 S&P 500 targets to 4,600 and 5,000, respectively, to reflect a higher possibility of a soft landing.
The benchmark index is 4.8% away from its all-time intraday high hit on Jan. 4, 2022 while on course to gain for a fifth straight month.
Chicago Fed President Austan Goolsbee said the central bank was "walking the line pretty well" on bringing inflation down without causing a recession and will watch the data to judge if more monetary tightening may be appropriate in September.
At 11:28 a.m. ET, the Dow Jones Industrial Average .DJI was up 41.16 points, or 0.12%, at 35,500.45, the S&P 500 .SPX was up 3.30 points, or 0.07%, at 4,585.53, and the Nasdaq Composite .IXIC was up 14.93 points, or 0.10%, at 14,331.58.
Seven of the top 11 S&P 500 sectors gained, led by a 2.0% rise in energy stocks .SPNY.
Financial services provider SoFi TechnologiesSOFI.O jumped 16.0% on reporting better-than-expected quarterly revenue.
ON Semiconductor ON.O added 2.6% after the chipmaker forecast third-quarter revenue above market estimates.
Weighing on the Dow, Johnson & JohnsonJNJ.N shed 3.9% after a U.S. judge shot down the drugmaker's second attempt to resolve tens of thousands of lawsuits over its talc products.
U.S.-listed shares of Xpeng XPEV.N sank 13.8% on report that brokerage UBS downgraded the electric-vehicle maker to "neutral", while AdobeADBE.O advanced 3.9%, outperforming its tech peers, after Morgan Stanley raised its rating to "overweight" on the photoshop maker.
Advancing issues outnumbered decliners by a 3.04-to-1 ratio on the NYSE and a 1.85-to-1 ratio on the Nasdaq.
The S&P index recorded 25 new 52-week highs and no new low, while the Nasdaq recorded 71 new highs and 37 new lows.
U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3rW0uxD
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((johann.mcherian@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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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings. Chicago Fed President Austan Goolsbee said the central bank was "walking the line pretty well" on bringing inflation down without causing a recession and will watch the data to judge if more monetary tightening may be appropriate in September.
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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - Wall Street rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - Wall Street rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - Wall Street rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
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14610.0
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2023-07-31 00:00:00 UTC
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3 AI Chip Stocks That Still Have a Long Runway
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AAPL
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https://www.nasdaq.com/articles/3-ai-chip-stocks-that-still-have-a-long-runway
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nan
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nan
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Artificial intelligence (AI) means different things to different industries. For investors, it can be confusing and even a little suspicious, as companies are bending over backward to tout their AI capabilities to investors.
That’s why a better way to invest in the growth of AI is to invest in semiconductor stocks. Semiconductor chips are the backbone of AI. From robotics to autonomous driving to data analysis, demand for processing power and speed will be precedented to fuel the growth of AI.
And this growth will be measured in years and perhaps decades. So it’s possible that investors are at the beginning of a super cycle for chip stocks. To support that point of view, Grand View Research estimates the AI chip market could grow to $134.64 billion by 2027. That would be a compound annual growth rate (CAGR) of 5.9%.
That’s why now is still a good time to invest in chip stocks. And the three stocks listed below all appear to have long runways for future growth.
The Undisputed Leader Still Has Room to Run
Nvidia Corporation (NASDAQ: NVDA) is one of the success stories of 2023. However, with NVDA stock up 219% for the year as of this writing, many analysts are saying the top is in.
They could be right, but at this time many analysts disagree. According to the Nvidia analyst ratings on MarketBeat, 10 analysts have boosted their price targets for NVDA stock. And all of those targets are above the stock’s price of $466.96 on July 31.
Of course, there are no guarantees for Nvidia or any other chip stock. It’s possible that the economy could weaken sharply. If that occurred, it would likely slow demand for AI-related applications. But slowing is not the same as reversing. The move towards AI is real and will continue. There are simply too many areas of the economy that will drive demand for AI. And Nvidia is well-positioned in many of those sectors.
If you’re buying stocks for the long haul, Nvidia is a name that you can safely buy and hold.
An Emerging Competitor in a Key Niche
Qualcomm, Inc. (NASDAQ: QCOM) is a chipmaker best known for its role in the mobile device/5G space. The company is perhaps best known to investors as the company that supplies Apple, Inc. (NASDAQ: AAPL) with the chips for Apple’s iPhone’s.
That business has been struggling. However, the growth story for Qualcomm is emerging as the company pushes into AI-driven sectors such as autonomous driving.
In January, Qualcomm launched its Snapdragon Ride platform. These chips have the ability to provide anywhere from Level 1 to Level 5 autonomous capabilities. It’s worth noting that Qualcomm has already inked partnerships with several EV manufacturers.
Qualcomm also has an appealing fundamental setup. The forward P/E ratio is around 20x and full-year earnings are expected to climb approximately 19%. But the current consensus price target only shows QCOM stock getting a lift of about 11%.
This Chip Maker Looks Undervalued
Teradyne, Inc. (NASDAQ: TER) is a peripheral play on the chip sector. Specifically, the company is involved in semiconductor testing, which is essential to ensuring that the end products perform as expected. While the company tests more than semiconductor chips it’s a significant part of the company's business.
With that said, the company has been managing through a correction cycle in semiconductor testing over the past four quarters. But expected growth, particularly in areas like automotive, cloud computing, and edge AI applications to be significant drivers of growth in coming quarters.
This correction cycle presents investors with an interesting setup. Teradyne reported earnings on July 25, 2023 and beat on both the top and bottom lines. Full-year earnings are expected to rise by over 55%. Yet, the consensus estimate as of this writing is for the stock to fall by over 16%.
Something has to give. In the case of Teradyne the consensus target is likely to rise as more analysts weigh in on TER stock. According to the Teradyne analyst ratings on MarketBeat, two analysts have already raised their price targets and both of those targets are well above the consensus target.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company is perhaps best known to investors as the company that supplies Apple, Inc. (NASDAQ: AAPL) with the chips for Apple’s iPhone’s. From robotics to autonomous driving to data analysis, demand for processing power and speed will be precedented to fuel the growth of AI. An Emerging Competitor in a Key Niche Qualcomm, Inc. (NASDAQ: QCOM) is a chipmaker best known for its role in the mobile device/5G space.
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The company is perhaps best known to investors as the company that supplies Apple, Inc. (NASDAQ: AAPL) with the chips for Apple’s iPhone’s. According to the Nvidia analyst ratings on MarketBeat, 10 analysts have boosted their price targets for NVDA stock. However, the growth story for Qualcomm is emerging as the company pushes into AI-driven sectors such as autonomous driving.
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The company is perhaps best known to investors as the company that supplies Apple, Inc. (NASDAQ: AAPL) with the chips for Apple’s iPhone’s. That’s why a better way to invest in the growth of AI is to invest in semiconductor stocks. According to the Nvidia analyst ratings on MarketBeat, 10 analysts have boosted their price targets for NVDA stock.
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The company is perhaps best known to investors as the company that supplies Apple, Inc. (NASDAQ: AAPL) with the chips for Apple’s iPhone’s. According to the Nvidia analyst ratings on MarketBeat, 10 analysts have boosted their price targets for NVDA stock. There are simply too many areas of the economy that will drive demand for AI.
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14611.0
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2023-07-31 00:00:00 UTC
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Option Volatility and Earnings Report for July 31 – August 4
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AAPL
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https://www.nasdaq.com/articles/option-volatility-and-earnings-report-for-july-31-august-4
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nan
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nan
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Last week was busy on the earnings front, but we have even more companies reporting this week including Apple (AAPL), Amazon (AMZN), Advanced Micro Devices (AMD), Uber (UBER), PayPal (PYPL), Pfizer (PFE), Coinbase (COIN) and Robinhood (HOOD) all set to report.
Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company’s options which increases the implied volatility, and therefore, the price of options.
After the earnings announcement, implied volatility usually drops back down to normal levels.
Let’s take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate.
Monday
SOFI – 16.2%
ANET – 8.3%
Tuesday
AMD – 7.8%
PFE – 3.7%
SBUX – 5.4%
CAT – 4.4%
MRK – 3.1%
NCLH – 8.4%
UBER – 8.4%
DVN – 5.1%
Wednesday
CVS – 4.3%
PYPL – 8.2%
HUM – 4.9%
SHOP – 10.6%
OXY – 4.3%
KHC – 3.0%
HOOD – 10.4%
ETSY – 11.3%
Thursday
AMZN – 6.6%
AAPL – 3.5%
BUD – 5.6%
COIN – 11.9%
SQ – 8.4%
ABNB – 7.8%
DKNG – 11.0%
EXPE – 7.6%
NET – 13.3%
Friday
NKLA – 28.0%
ENB – 4.1%
D – 4.3%
Option traders can use these expected moves to structure trades. Bearish traders can look at selling bear call spreads outside the expected range.
Bullish traders can sell bull put spreads outside the expected range, or look at naked puts for those with a higher risk tolerance.
Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short strikes outside the expected range.
When trading options over earnings, it is best to stick to risk defined strategies and keep position size small. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio.
Stocks With High Implied Volatility
We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
Let’s run thestock screenerwith the following filters:
Total call volume: Greater than 2,000Market Cap: Greater than 40 billionIV Percentile: Greater than 70%
This screener produces the following results sorted by IV Percentile.
You can refer to this article for details of how to find option trades for this earnings season.
Last Week’s Earnings Moves
Last week’s actual versus expected moves are shown below:
DPZ +0.1% vs 5.8% expected
VZ +0.8% vs 4.3% expected
MMM +5.3% vs 4.4% expected
GM -3.5% vs 5.1% expected
GE +6.3% vs 4.6% expected
SPOT -14.3% vs 10.5% expected
NUE +3.7% vs 4.5% expected
MSFT -3.8% vs 5.8% expected
GOOGL +5.8% vs 6.1% expected
V -0.7% vs 3.3% expected
SNAP -14.2% vs 22.3% expected
T +0.6% vs 5.5% expected
BA +8.7% vs 4.8% expected
KO +1.3% vs 2.0% expected
META +4.4% vs 9.9% expected
CMG -9.8% vs 6.7% expected
RCL +8.7% vs 7.3% expected
MCD +1.2% vs 2.8% expected
LUV -8.9% vs 4.8% expected
MA -2.0% vs 3.4% expected
CROX -14.6% vs 10.0% expected
VLO -0.6% vs 3.8% expected
ABBV +4.9% vs 3.9% expected
BMY -4.2% vs 2.8% expected
HON -5.7% vs 3.4% expected
ENPH -7.5% vs 12.2% expected
F -3.4% vs 5.6% expected
INTC +6.6% vs 7.2% expected
ROKU +31.4% vs 12.8% expected
FSLR +4.8% vs 8.0% expected
X -1.4% vs 6.6% expected
XOM -1.2% vs 3.0% expected
PG +2.8% vs 3.0% expected
CVX -0.5% vs 2.8% expected
CL -1.9% vs 3.1% expected
Overall, there were 23 out of 35 that stayed within the expected range.
Changes In Open Interest
VALE, TSLA, NVDA, JNJ, F, AMC and SNAP saw some of the largest changes in open interest last week.
Other stocks with large changes in open interest are shown below:
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
Earnings, PMI and Other Can't Miss Items this Week Alphabet Gushes Forth Record Free Cash Flow, Making GOOG Stock Cheap Why Getting Trigger Happy With Coinbase (COIN) Could Be a Bad Idea A Copper Market Pickpocket Trade is Setting Up
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 was busy on the earnings front, but we have even more companies reporting this week including Apple (AAPL), Amazon (AMZN), Advanced Micro Devices (AMD), Uber (UBER), PayPal (PYPL), Pfizer (PFE), Coinbase (COIN) and Robinhood (HOOD) all set to report. Other stocks with large changes in open interest are shown below: Please remember that options are risky, and investors can lose 100% of their investment. More Stock Market News from Barchart Earnings, PMI and Other Can't Miss Items this Week Alphabet Gushes Forth Record Free Cash Flow, Making GOOG Stock Cheap Why Getting Trigger Happy With Coinbase (COIN) Could Be a Bad Idea A Copper Market Pickpocket Trade is Setting Up On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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Last week was busy on the earnings front, but we have even more companies reporting this week including Apple (AAPL), Amazon (AMZN), Advanced Micro Devices (AMD), Uber (UBER), PayPal (PYPL), Pfizer (PFE), Coinbase (COIN) and Robinhood (HOOD) all set to report. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility. Last Week’s Earnings Moves Last week’s actual versus expected moves are shown below: DPZ +0.1% vs 5.8% expected VZ +0.8% vs 4.3% expected MMM +5.3% vs 4.4% expected GM -3.5% vs 5.1% expected GE +6.3% vs 4.6% expected SPOT -14.3% vs 10.5% expected NUE +3.7% vs 4.5% expected MSFT -3.8% vs 5.8% expected GOOGL +5.8% vs 6.1% expected V -0.7% vs 3.3% expected SNAP -14.2% vs 22.3% expected T +0.6% vs 5.5% expected BA +8.7% vs 4.8% expected KO +1.3% vs 2.0% expected META +4.4% vs 9.9% expected CMG -9.8% vs 6.7% expected RCL +8.7% vs 7.3% expected MCD +1.2% vs 2.8% expected LUV -8.9% vs 4.8% expected MA -2.0% vs 3.4% expected CROX -14.6% vs 10.0% expected VLO -0.6% vs 3.8% expected ABBV +4.9% vs 3.9% expected BMY -4.2% vs 2.8% expected HON -5.7% vs 3.4% expected ENPH -7.5% vs 12.2% expected F -3.4% vs 5.6% expected INTC +6.6% vs 7.2% expected ROKU +31.4% vs 12.8% expected FSLR +4.8% vs 8.0% expected X -1.4% vs 6.6% expected XOM -1.2% vs 3.0% expected PG +2.8% vs 3.0% expected CVX -0.5% vs 2.8% expected CL -1.9% vs 3.1% expected Overall, there were 23 out of 35 that stayed within the expected range.
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Last week was busy on the earnings front, but we have even more companies reporting this week including Apple (AAPL), Amazon (AMZN), Advanced Micro Devices (AMD), Uber (UBER), PayPal (PYPL), Pfizer (PFE), Coinbase (COIN) and Robinhood (HOOD) all set to report. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility. Last Week’s Earnings Moves Last week’s actual versus expected moves are shown below: DPZ +0.1% vs 5.8% expected VZ +0.8% vs 4.3% expected MMM +5.3% vs 4.4% expected GM -3.5% vs 5.1% expected GE +6.3% vs 4.6% expected SPOT -14.3% vs 10.5% expected NUE +3.7% vs 4.5% expected MSFT -3.8% vs 5.8% expected GOOGL +5.8% vs 6.1% expected V -0.7% vs 3.3% expected SNAP -14.2% vs 22.3% expected T +0.6% vs 5.5% expected BA +8.7% vs 4.8% expected KO +1.3% vs 2.0% expected META +4.4% vs 9.9% expected CMG -9.8% vs 6.7% expected RCL +8.7% vs 7.3% expected MCD +1.2% vs 2.8% expected LUV -8.9% vs 4.8% expected MA -2.0% vs 3.4% expected CROX -14.6% vs 10.0% expected VLO -0.6% vs 3.8% expected ABBV +4.9% vs 3.9% expected BMY -4.2% vs 2.8% expected HON -5.7% vs 3.4% expected ENPH -7.5% vs 12.2% expected F -3.4% vs 5.6% expected INTC +6.6% vs 7.2% expected ROKU +31.4% vs 12.8% expected FSLR +4.8% vs 8.0% expected X -1.4% vs 6.6% expected XOM -1.2% vs 3.0% expected PG +2.8% vs 3.0% expected CVX -0.5% vs 2.8% expected CL -1.9% vs 3.1% expected Overall, there were 23 out of 35 that stayed within the expected range.
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Last week was busy on the earnings front, but we have even more companies reporting this week including Apple (AAPL), Amazon (AMZN), Advanced Micro Devices (AMD), Uber (UBER), PayPal (PYPL), Pfizer (PFE), Coinbase (COIN) and Robinhood (HOOD) all set to report. Let’s take a look at the expected range for these stocks. Option traders can use these expected moves to structure trades.
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14612.0
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2023-07-31 00:00:00 UTC
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Validea's Top Information Technology Stocks Based On Warren Buffett - 7/31/2023
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AAPL
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https://www.nasdaq.com/articles/valideas-top-information-technology-stocks-based-on-warren-buffett-7-31-2023
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nan
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nan
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The following are the top rated Information Technology stocks according to Validea's 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 according to our strategy based on Warren Buffett 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.
Company Description: Apple Inc. (Apple) designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories and sells a range of related services. The Company's products include iPhone, Mac, iPad, AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and accessories. The Company operates various platforms, including the App Store, which allows customers to discover and download applications and digital content, such as books, music, video, games and podcasts. Apple offers digital content through subscription-based services, including Apple Arcade, Apple Music, Apple News+, Apple TV+ and Apple Fitness+. Apple also offers a range of other services, such as AppleCare, iCloud, Apple Card and Apple Pay. Apple sells its products and resells third-party products in a range of markets, including directly to consumers, small and mid-sized businesses, and education, enterprise and government customers through its retail and online stores and its direct sales force.
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
TEXAS INSTRUMENTS INC (TXN) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett 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.
Company Description: Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. The Company's Analog segment product lines include Power and Signal Chain. Power includes products that help customers manage power in electronic systems. Its broad portfolio is designed to manage power requirements across different voltage levels, including battery-management solutions, direct current (DC)/DC switching regulators, alternating current (AC)/DC and isolated controllers and converters, power switches, linear regulators, voltage references and lighting products. Signal Chain includes products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control. The Embedded Processing segment includes microcontrollers, digital signal processors (DSPs), and applications processors.
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 TEXAS INSTRUMENTS INC
TXN Guru Analysis
TXN Fundamental Analysis
KLA CORP (KLAC) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett 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.
Company Description: KLA Corporation (KLA) is a supplier of process control and yield management solutions and services for the semiconductor and related electronics industries. The Company offers a portfolio of device manufacturing, inspection and metrology products and related service, software and other offerings support research and development (R&D) and manufacturing of integrated circuits (IC), wafers and reticles. It also offers technologically advanced, yield-enhancing and process-enabling solutions to address various manufacturing stages of Printed Circuit Boards (PCB), Flat Panel Displays (FPD), Specialty Semiconductor Devices (SD) and other electronic components. Its segment includes Semiconductor Process Control; Specialty Semiconductor Process; PCB, Display and Component Inspection, and Other. The Semiconductor Process Control segment provides a portfolio of inspection, metrology and data analytics products as well as related service offerings.
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 KLA CORP
KLAC Guru Analysis
KLAC Fundamental Analysis
EPAM SYSTEMS INC (EPAM) is a large-cap growth stock in the Computer Services industry. The rating according to our strategy based on Warren Buffett is 85% 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.
Company Description: EPAM Systems, Inc. is a digital transformation services and product engineering company. The Company provides digital platform engineering and software development services to customers located around the world, primarily in North America, Europe, and Asia. It maintains a group of testing and quality assurance professionals with experience across a range of technology platforms and industry verticals. This group performs software application testing, test management, automation and consulting services focused on helping customers improve their existing software testing and quality assurance practices. It has integrated consulting teams across business, experience, technology and data. The functional business is engaged in technology platforms and their interactions, as well as the application of data science and machine learning, to deliver insights into its customers' business. Its digital and service design practice provides strategy, design, creative and program management services.
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: NEUTRAL
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: FAIL
Detailed Analysis of EPAM SYSTEMS INC
EPAM Guru Analysis
EPAM Fundamental Analysis
CISCO SYSTEMS INC (CSCO) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Warren Buffett is 79% 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.
Company Description: Cisco Systems, Inc. is engaged in designing and selling a range of technologies that power the Internet. The Company is integrating its platforms across networking, security, collaboration, applications and the cloud. The Company operates through three geographic segments: the Americas; Europe, Middle East, and Africa (EMEA), and Asia Pacific, Japan, and China (APJC). The Company's products categories include Secure, Agile Networks; Internet for the Future; Collaboration; End-to-End Security; Optimized Application Experiences; Other Products, and Services. Secure, Agile Networks consists of its core networking technologies of switching, enterprise routing, wireless, and compute products. Internet for the Future consists of its routed optical networking, public fifth generation (5G), silicon, and optics offerings. Collaboration consists of its Collaboration Devices, Meetings, Calling and contact center offerings. End-to-End Security consists of its overall security offerings.
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: FAIL
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of CISCO SYSTEMS INC
CSCO Guru Analysis
CSCO Fundamental Analysis
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.
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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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis TEXAS INSTRUMENTS INC (TXN) is a large-cap growth stock in the Semiconductors industry. The Company operates various platforms, including the App Store, which allows customers to discover and download applications and digital content, such as books, music, video, games and podcasts.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis TEXAS INSTRUMENTS INC (TXN) is a large-cap growth stock in the Semiconductors industry. Detailed Analysis of KLA CORP KLAC Guru Analysis KLAC Fundamental Analysis EPAM SYSTEMS INC (EPAM) is a large-cap growth stock in the Computer Services industry.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis TEXAS INSTRUMENTS INC (TXN) is a large-cap growth stock in the Semiconductors industry. Apple offers digital content through subscription-based services, including Apple Arcade, Apple Music, Apple News+, Apple TV+ and Apple Fitness+.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis TEXAS INSTRUMENTS INC (TXN) is a large-cap growth stock in the Semiconductors industry. The Company's Analog segment product lines include Power and Signal Chain.
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14613.0
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2023-07-31 00:00:00 UTC
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Week Heavy on Labor Data Commences
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AAPL
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https://www.nasdaq.com/articles/week-heavy-on-labor-data-commences
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nan
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nan
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We have an eventful week lined up for market participants, reaching a new level of Q2 earnings reports being released — which, by Friday morning, will put us on the back half of earnings season — as well as key economic prints, especially in the labor market. Pre-market levels are up modestly at this hour, staying in the green much the way we ended last week after taking a breather with last Thursday’s selloff.
Aside from ISM Manufacturing and Services, Construction Spending, Factory Orders and overall U.S. Productivity, this is Jobs Week: a new Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, private-sector payrolls for July from Automatic Data Processing (ADP) are out Wednesday morning, Initial and Continuing Jobless Claims Thursday and the big non-farm payroll results from the U.S. Bureau of Labor Statistics (BLS) Friday morning, along with a new Household Survey bringing us a fresh Unemployment Rate.
Last month’s ADP headline was fairly astronomical, especially compared with expectations, where nearly half a million (497K) new private-sector payroll positions were reported. BLS figures for June came in at a more-reasonable 209K, with an Unemployment Rate ticking down to 3.6%. For July, ADP jobs totals are expected to reach 173K, whereas BLS estimates are for around 200K, with Unemployment staying at the same 3.6% rate and Average Hourly Earnings consistently up (not too high) at +0.4%.
When we look at Q2 earnings this week, the three biggest tech reports are all in the “A”s: Apple AAPL, Amazon AMZN and AMD AMD. Beyond these, we’ll hear from Qualcomm QCOM, Uber UBER and Pfizer PFE, to name but a few. So far we’ve seen overall decent performances this earnings season — far from breakout levels to the upside, but also far better than the crumbling-into-recession scenario many analysts had been predicting by the middle of 2023.
SoFi Technologies SOFI performed better than expected in Q2 this morning, posting a loss per share of -$0.06, beating estimates by a penny, on $488.8 million in sales which topped the Zacks consensus by +3%, a stellar +37% year over year for a financial institution. Total deposits grew +26% from Q2 2022, helping the stock up another +7.5% in today’s pre-market, adding to its superb gains of over +100% year to date, far outperforming the S&P 500’s +19%.
Also, On Semiconductor ON is out with Q2 earnings ahead of today’s opening bell, beating earnings expectations of $1.20 per share to $1.29 on headline, $1.33 adjusted for one-time charges. Revenues also came in ahead of estimates to $2.09 billion from $2.02 billion analysts were looking for, swinging to positive sales growth year over year from expectations. Even better, the company has ramped up expectations on both top and bottom lines for Q3: earnings of $1.27-1.41 on revenues of $2.1-2.19 billion are a nice improvement from the $1.21 per share and $2.05 billion expected, respectively.
Top 5 ChatGPT Stocks Revealed
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : 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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When we look at Q2 earnings this week, the three biggest tech reports are all in the “A”s: Apple AAPL, Amazon AMZN and AMD AMD. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report To read this article on Zacks.com click here. Productivity, this is Jobs Week: a new Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, private-sector payrolls for July from Automatic Data Processing (ADP) are out Wednesday morning, Initial and Continuing Jobless Claims Thursday and the big non-farm payroll results from the U.S. Bureau of Labor Statistics (BLS) Friday morning, along with a new Household Survey bringing us a fresh Unemployment Rate.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report To read this article on Zacks.com click here. When we look at Q2 earnings this week, the three biggest tech reports are all in the “A”s: Apple AAPL, Amazon AMZN and AMD AMD. For July, ADP jobs totals are expected to reach 173K, whereas BLS estimates are for around 200K, with Unemployment staying at the same 3.6% rate and Average Hourly Earnings consistently up (not too high) at +0.4%.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report To read this article on Zacks.com click here. When we look at Q2 earnings this week, the three biggest tech reports are all in the “A”s: Apple AAPL, Amazon AMZN and AMD AMD. We have an eventful week lined up for market participants, reaching a new level of Q2 earnings reports being released — which, by Friday morning, will put us on the back half of earnings season — as well as key economic prints, especially in the labor market.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report To read this article on Zacks.com click here. When we look at Q2 earnings this week, the three biggest tech reports are all in the “A”s: Apple AAPL, Amazon AMZN and AMD AMD. Productivity, this is Jobs Week: a new Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, private-sector payrolls for July from Automatic Data Processing (ADP) are out Wednesday morning, Initial and Continuing Jobless Claims Thursday and the big non-farm payroll results from the U.S. Bureau of Labor Statistics (BLS) Friday morning, along with a new Household Survey bringing us a fresh Unemployment Rate.
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14614.0
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2023-07-31 00:00:00 UTC
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US STOCKS-Wall St rises, eyes monthly gain on U.S. soft landing hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-eyes-monthly-gain-on-u.s.-soft-landing-hopes
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nan
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nan
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By Johann M Cherian and Bansari Mayur Kamdar
July 31 (Reuters) - Wall Street rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause.
Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus.
Second-quarter earnings for S&P 500 companies are now estimated to have fallen 6.4% year-over-year, according to Refinitiv data. While still negative, the forecast is an improvement from the 7.9% drop estimated a week earlier.
"We've wrapped up a solid month ... and we're at a point in time where we clearly have seen enough of the earnings reports to know that they're going to come in better than feared," said Art Hogan, chief market strategist at B Riley Wealth.
The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
"Towards the end of the week you have economic data and if we were to see a plateau in manufacturing activity but not a collapse of job creation, that would that would clearly keep that soft landing narrative squarely on the table," Hogan said.
Citigroup raised its 2023-end and mid-2024 S&P 500 targets to 4,600 and 5,000, respectively, to reflect a higher possibility of a soft landing.
The benchmark index is 4.9% away from its all-time intraday high hit on January 4, 2022.
Chicago Fed President Austan Goolsbee said the central bank was "walking the line pretty well" on bringing inflation down without causing a recession and will watch the data to judge if more monetary tightening may be appropriate in September.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was up 54.51 points, or 0.15%, at 35,513.80, the S&P 500 .SPX was up 10.59 points, or 0.23%, at 4,592.82, and the Nasdaq Composite .IXIC was up 43.63 points, or 0.30%, at 14,360.29.
Nine of the top 11 S&P 500 sectors gained, led by a 1.7% rise in energy stocks .SPNY.
Financial services provider SoFi TechnologiesSOFI.O climbed 20.9% on reporting better-than-expected quarterly revenue.
ON Semiconductor ON.O added 4.6% after the chipmaker forecast third-quarter revenue above market estimates.
Weighing on the Dow, Johnson & JohnsonJNJ.N shed 2.8% after a U.S. judge shot down the drugmaker's second attempt to resolve tens of thousands of lawsuits over its talc products.
U.S.-listed shares of Xpeng XPEV.N sank 11.6% on report that brokerage UBS downgraded the electric-vehicle maker to "neutral", while AdobeADBE.O advanced 3.5%, outperforming its tech peers, after Morgan Stanley raised its rating to "overweight" on the photoshop maker.
Advancing issues outnumbered decliners by a 3.50-to-1 ratio on the NYSE and by a 2.35-to-1 ratio on the Nasdaq.
The S&P index recorded 16 new 52-week highs and no new low, while the Nasdaq recorded 52 new highs and 19 new lows.
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((johann.mcherian@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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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings. "Towards the end of the week you have economic data and if we were to see a plateau in manufacturing activity but not a collapse of job creation, that would that would clearly keep that soft landing narrative squarely on the table," Hogan said.
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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - Wall Street rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - Wall Street rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - Wall Street rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause. Second-quarter earnings for S&P 500 companies are now estimated to have fallen 6.4% year-over-year, according to Refinitiv data.
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14615.0
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2023-07-31 00:00:00 UTC
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Cloud Computing Giant ServiceNow In Buy Zone After AI News
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AAPL
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https://www.nasdaq.com/articles/cloud-computing-giant-servicenow-in-buy-zone-after-ai-news
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nan
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nan
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Shares of ServiceNow Inc. (NYSE: NOW) may be down since the company’s July 26 earnings report, but this isn’t a stock to count out.
In fact, the current pullback may offer a buy opportunity, as the company beat revenue and earnings views, boosted its full-year guidance, and is continuing to make inroads when it comes to AI implementation.
You may not be familiar with ServiceNow, as it’s not one of the more glamorous AI-related companies, nor is it one of the big-name techs with a big consumer presence, like Apple Inc. (NASDAQ: AAPL) or Microsoft Corp. (NASDAQ: MSFT).
ServiceNow is a cloud computing company that provides a comprehensive platform for enterprise workflow management. It helps customers streamline and automate various processes, such as infotech service management, human resources, customer service, and network security operations.
New AI Initiatives
In the most recent earnings report, the company touted recent developments regarding AI implementation. Those included:
In the quarter, ServiceNow delivered new features that will embed generative AI across its platform, to drive further automation.
The company announced further generative AI capabilities with case summarization and text‑to‑code, and the introduction of its AI Lighthouse program with Nvidia Corp. (NASDAQ: NVDA) and tech consulting firm Accenture plc (NYSE: ACN) to assist customers across industries in the design, development, and implementation of new generative AI use cases.
It also announced an expanded partnership with global accounting firm KPMG to develop AI offerings in the areas of finance, supply chain, and procurement operations.
ServiceNow has a market capitalization of $116.19 billion, meaning the Santa Clara, California company is easily big enough to be an S&P 500 component. It carries a weighting of 1.37% within the S&P tech sector, which isn’t enough to move the needle on sector performance all by itself.
Like pretty much all things tech, the stock began declining in late 2021, and skidded last year. In the past three months, ServiceNow shares rallied 23.97% in the past three months and the stock is up 46.69% year-to-date, outpacing the performance of the Technology Select Sector SPDR Fund (NYSEARCA: XLK), of which it is a component.
Support Above 50-Day Average
The ServiceNow chart shows a stock that’s been trending steadily higher above its 50-day moving average. It retreated 2.14% the week ended July 28, but finished 3% above that key indicator, signaling that investors may be taking some profits after a strong run-up, and are not stampeding for the exits.
If the current pullback continues getting support at or above the 50-day moving average, it would remain actionable. However, if it skids below that line, or rises more than 5% above the July 19 high of $614.36, then it’s best to wait for another consolidation or base.
ServiceNow’s earnings of $2.37 a share marked a year-over-year increase of 46%, while revenue grew 23% to $2.15 billion. The company exceeded Wall Street views on both the top and bottom lines, as you can see using MarketBeat’s ServiceNow earnings data.
For the current quarter, the company expects subscription revenue to grow in a range between 25.5% to 26%. It expects current remaining performance obligations, which is contract revenue that will be recognized as revenue in the next 12 months, to grow by 25.5% in the quarter.
Better-Than-Expected Growth Forecast
For the full year, ServiceNow sees subscription revenue growing by 24.5% to 25%. That was better than analysts had expected.
Both earnings and revenue grew at double-digit rates in each of the past eight quarters. If there’s any fly in the ointment, it’s that analysts expect earnings to decline by 14% this year, to $6.50 share, before growth resumes in 2024.
The 2023 earnings decline won’t necessarily ding the stock’s price, though, especially if the company beats expectations and offers upbeat guidance.
MarketBeat’s ServiceNow analyst ratings show a consensus view of “moderate buy.” In July, starting even before the company’s most recent quarterly report, 14 analysts boosted their price target on the stock. The consensus target is now $589.48, an upside of 3.50%, but every single one of the updated price targets in July is $600 or more, a sign of growing confidence in the stock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You may not be familiar with ServiceNow, as it’s not one of the more glamorous AI-related companies, nor is it one of the big-name techs with a big consumer presence, like Apple Inc. (NASDAQ: AAPL) or Microsoft Corp. (NASDAQ: MSFT). In fact, the current pullback may offer a buy opportunity, as the company beat revenue and earnings views, boosted its full-year guidance, and is continuing to make inroads when it comes to AI implementation. It also announced an expanded partnership with global accounting firm KPMG to develop AI offerings in the areas of finance, supply chain, and procurement operations.
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You may not be familiar with ServiceNow, as it’s not one of the more glamorous AI-related companies, nor is it one of the big-name techs with a big consumer presence, like Apple Inc. (NASDAQ: AAPL) or Microsoft Corp. (NASDAQ: MSFT). New AI Initiatives In the most recent earnings report, the company touted recent developments regarding AI implementation. For the current quarter, the company expects subscription revenue to grow in a range between 25.5% to 26%.
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You may not be familiar with ServiceNow, as it’s not one of the more glamorous AI-related companies, nor is it one of the big-name techs with a big consumer presence, like Apple Inc. (NASDAQ: AAPL) or Microsoft Corp. (NASDAQ: MSFT). In fact, the current pullback may offer a buy opportunity, as the company beat revenue and earnings views, boosted its full-year guidance, and is continuing to make inroads when it comes to AI implementation. The company announced further generative AI capabilities with case summarization and text‑to‑code, and the introduction of its AI Lighthouse program with Nvidia Corp. (NASDAQ: NVDA) and tech consulting firm Accenture plc (NYSE: ACN) to assist customers across industries in the design, development, and implementation of new generative AI use cases.
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You may not be familiar with ServiceNow, as it’s not one of the more glamorous AI-related companies, nor is it one of the big-name techs with a big consumer presence, like Apple Inc. (NASDAQ: AAPL) or Microsoft Corp. (NASDAQ: MSFT). It expects current remaining performance obligations, which is contract revenue that will be recognized as revenue in the next 12 months, to grow by 25.5% in the quarter. If there’s any fly in the ointment, it’s that analysts expect earnings to decline by 14% this year, to $6.50 share, before growth resumes in 2024.
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14616.0
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2023-07-31 00:00:00 UTC
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US STOCKS-Wall St poised to end strong month with muted session
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-poised-to-end-strong-month-with-muted-session
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nan
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nan
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By Echo Wang
July 31 (Reuters) - U.S. stocks stayed close to unchanged on Monday, July's final trading day, as investors awaited this week's quarterly reports from companies such as Amazon.com AMZN.O and Apple AAPL.O, and economic data including on jobs.
The key stock indexes are on track to end the month higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fueled bets on a rate-hike pause.
Second-quarter earnings for S&P 500 companies are estimated to have fallen 6.4% year-over-year, Refinitiv data through Friday showed. While still negative, the forecast is an improvement from the 7.9% drop estimated a week earlier.
The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
Citigroup raised its 2023-end and mid-2024 S&P 500 targets to 4,600 and 5,000, respectively, to reflect a higher possibility of a soft landing.
The benchmark index is just under 5% away from its all-time intraday high hit on Jan. 4, 2022 while on course to gain for a fifth straight month.
Chicago Fed President Austan Goolsbee said the central bank was "walking the line pretty well" on bringing inflation down without causing a recession and will watch the data to judge if more monetary tightening may be appropriate in September.
At 2:36 p.m. ET, the Dow Jones Industrial Average .DJI rose 20.18 points, or 0.06%, to 35,479.47; the S&P 500 .SPX lost 1.89 points, or 0.04%, at 4,580.34; and the Nasdaq Composite .IXIC added 3.42 points, or 0.02%, at 14,320.07.
Five of the top 11 S&P 500 sectors gained, led by a 1.89% rise in energy stocks .SPNY.
"The main thing is the strengthened oil. We're above $80 a barrel ..., back all the way from the decline that was precipitated by the banking crisis. And that's really the big leader today by far," said Jay Hatfield, CEO of Infrastructure Capital Advisors in New York.
Financial services provider SoFi TechnologiesSOFI.Oadded 20%after reporting better-than-expected quarterly revenue.
ON Semiconductor ON.Ojumped 2.9% after the chipmaker forecast third-quarter revenue above market estimates.
Weighing on the Dow, Johnson & JohnsonJNJ.N shed 3.9% after a U.S. judge shot down the drugmaker's second attempt to resolve tens of thousands of lawsuits over its talc products.
AdobeADBE.O advanced 3.3%, outperforming tech peers, after Morgan Stanley raised its rating to "overweight" on the photoshop maker.
Advancing issues outnumbered decliners on the NYSE by a 2.39-to-1 ratio; on Nasdaq, a 1.73-to-1 ratio favored advancers.
The S&P 500 posted 25 new 52-week highs and one new low; the Nasdaq Composite recorded 85 new highs and 52 new lows.
U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3rW0uxD
(Reporting by Echo Wang in New York, Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Vinay Dwivedi and Richard Chang)
((e.wang@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Echo Wang July 31 (Reuters) - U.S. stocks stayed close to unchanged on Monday, July's final trading day, as investors awaited this week's quarterly reports from companies such as Amazon.com AMZN.O and Apple AAPL.O, and economic data including on jobs. The key stock indexes are on track to end the month higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fueled bets on a rate-hike pause. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
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By Echo Wang July 31 (Reuters) - U.S. stocks stayed close to unchanged on Monday, July's final trading day, as investors awaited this week's quarterly reports from companies such as Amazon.com AMZN.O and Apple AAPL.O, and economic data including on jobs. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings. ON Semiconductor ON.Ojumped 2.9% after the chipmaker forecast third-quarter revenue above market estimates.
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By Echo Wang July 31 (Reuters) - U.S. stocks stayed close to unchanged on Monday, July's final trading day, as investors awaited this week's quarterly reports from companies such as Amazon.com AMZN.O and Apple AAPL.O, and economic data including on jobs. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings. U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3rW0uxD (Reporting by Echo Wang in New York, Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Vinay Dwivedi and Richard Chang) ((e.wang@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Echo Wang July 31 (Reuters) - U.S. stocks stayed close to unchanged on Monday, July's final trading day, as investors awaited this week's quarterly reports from companies such as Amazon.com AMZN.O and Apple AAPL.O, and economic data including on jobs. The key stock indexes are on track to end the month higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fueled bets on a rate-hike pause. The benchmark index is just under 5% away from its all-time intraday high hit on Jan. 4, 2022 while on course to gain for a fifth straight month.
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14617.0
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2023-07-31 00:00:00 UTC
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US STOCKS-Wall St set to open higher, eyes monthly gain on U.S. soft landing hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-eyes-monthly-gain-on-u.s.-soft-landing-hopes
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nan
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nan
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By Johann M Cherian and Bansari Mayur Kamdar
July 31 (Reuters) - Wall Street futures rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause.
Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus.
Second-quarter earnings for S&P 500 companies are now estimated to have fallen 6.4% year-over-year, according to Refinitiv data. While still negative, the forecast is an improvement from the 7.9% drop estimated a week earlier.
"We've wrapped up a solid month ... and we're at a point in time where we clearly have seen enough of the earnings reports to know that they're going to come in better than feared," said Art Hogan, chief market strategist at B Riley Wealth.
The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings.
"Towards the end of the week you have economic data and if we were to see a plateau in manufacturing activity but not a collapse of job creation, that would that would clearly keep that soft landing narrative squarely on the table," Hogan said.
Citigroup raised its 2023-end and mid-2024 S&P 500 targets to 4,600 and 5,000, respectively, to reflect a higher possibility of a soft landing.
The benchmark index closed at 4,582 on Friday, 4.9% away from its all-time intraday high hit on January 4, 2022.
Reflecting strong investor sentiment, the blue-chip Dow .DJI logged its longest winning streak in nearly four-decades this month, underpinned by gains in sectors including healthcare, financials and energy that had underperformed during the first half of the year.
Investors will parse remarks by Chicago Fed President Austan Goolsbee, a voting member of the Federal Open Market Committee, due later in the day.
At 8:40 a.m. ET, Dow e-minis 1YMcv1 were up 51 points, or 0.14%, S&P 500 e-minis EScv1 were up 9.75 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were up 36.25 points, or 0.23%.
Financial services provider SoFi TechnologiesSOFI.O gained 6.3% in premarket trading on reporting better-than-expected quarterly revenue.
ON Semiconductor ON.O added 4.9% after the chipmaker forecast third-quarter revenue above market estimates on optimism that strong demand from the automotive sector will offset broader weakness in the semiconductor industry.
Johnson & JohnsonJNJ.N shed 1.8% after a U.S. judge shot down the drugmaker's second attempt to resolve tens of thousands of lawsuits over its talc products.
Salesforce CRM.N eased 1.4% after Morgan Stanley cut the business software provider's rating, while UPS UPS.N slipped 0.7% on a downgrade from Credit Suisse.
U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3OfmkDV
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((johann.mcherian@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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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. The tech-heavy Nasdaq led Wall Street higher last week as megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O posted strong quarterly earnings. "Towards the end of the week you have economic data and if we were to see a plateau in manufacturing activity but not a collapse of job creation, that would that would clearly keep that soft landing narrative squarely on the table," Hogan said.
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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - Wall Street futures rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause. U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3OfmkDV (Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi) ((johann.mcherian@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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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - Wall Street futures rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause. U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3OfmkDV (Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi) ((johann.mcherian@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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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls, are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - Wall Street futures rose on Monday with key benchmarks set to end July higher on upbeat company earnings and hopes of a soft landing for a resilient U.S. economy, while cooling inflation fuels bets on a rate-hike pause. Second-quarter earnings for S&P 500 companies are now estimated to have fallen 6.4% year-over-year, according to Refinitiv data.
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14618.0
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2023-07-31 00:00:00 UTC
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As Disney Leads the Week in Unusual Options Flow, NVDA, AAPL, XPEV Follow
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AAPL
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https://www.nasdaq.com/articles/as-disney-leads-the-week-in-unusual-options-flow-nvda-aapl-xpev-follow
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nan
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nan
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Many investors brush off or ignore options trading because options are complex and misunderstood. However, many other traders have learned how to “follow the flow.”
In other words, they want to know what the big funds and institutions are doing. When these buyers make their move in the options world, they leave a trail behind them -- footsteps in the data.
We can follow those footsteps when looking for unusual options activity.
Our guide is Fintel’s leaderboard of options activity, showing the action in both calls and puts, helping us keep track of it all when we see outsized volume. Let’s look at some of the most interesting action of the past week.
Disney (DIS)
Coming in at Number 1 on our Options Flow Leaderboard is Disney (US:DIS), which is interesting given that the stock continues to dip to 52-week lows. While $87.01 was the prior 52-week low from May, DIS stock has now closed below that mark in seven of the last nine sessions. That’s as shares are down about 57.5% from the all-time high, which was made in November 2021.
Despite the clearly bearish price action, options investors seem torn on the stock’s trajectory.
On July 27, there were two notable put trades that went through on the long side -- indicating a bearish position. That’s as someone bought $35.77 million of the January 2024 $160 puts and $3.69 million of the September $110 puts.
There was also a $3.44 million sale of the January 2024 $120 puts tied to the same trade. All of these puts were deep-in-the-money as shares were trading near $85.50 at the time of the trade.
The January 2024 $160 put was active on July 26, too.
That’s as someone paid $37.14 million in premium for this particular put option, but then about 15 minutes later, another trade hit the tape. This time a $108.48 million sale of the January 2024 $160 puts. It coincided with a $10.68 million sale of the September $110 puts (the same strike traded that was pointed out above). Later, another $38.86 million of the January $160 puts were sold, so the trader in this name was quite large and quite active.
Apple (AAPL)
As the biggest stock in the world is gearing up to report earnings on Aug. 3, it’s not surprising to see Apple (US:AAPL) on our list at Number 2. Given that it’s Apple, there were plenty of low-seven-figure options trades placed over the last few days. However, two trades really stand out.
The first came on July 24, as someone bought $38.9 million of the January $175 calls in three separate trades each about five minutes apart. These calls were in-the-money by almost $20 a share at the time of the trade.
The second trade on AAPL stock options was a much deeper in-the-money position. That’s as someone bought $4.53 million of the June 2024 $110 calls on July 28. A few minutes later, they bought another $4.53 million worth of the same calls.
Lucid Motors (LCID)
Lucid Motors (US:LCID) lit up the options leaderboard during the week ending July 21 and traders were back at it last week, too. There was plenty of options flow that stood out — like when one trader scooped up $426,700 worth of the September $8 calls. However, one trade in particular really stood out.
That trade came on July 26, the same day as the trade noted above, but this one was significantly larger. That’s as one trader sold $5.57 million worth of the January 2024 $47 puts and $5.22 million worth of the $37 puts of the same expiration.
Notably, these LCID stock options were deep-in-the-money, with shares trading near $7.10 at the time of the trade.
Perhaps it was investors' way of speculating on electric vehicle stocks, as XPeng (US:XPEV) has caught fire this week…
Xpeng (XPEV)
Speaking of XPeng, the stock has been downright explosive. There are two factors in play here. First, Chinese EV stocks started the week with a bang on news of Chinese stimulus being put to work to help give the economy a boost. Second, Volkswagen took a stake in XPeng with a $700 million investment on Wednesday.
Shares are up 60.5% this week alone, as XPEV stock works on its fourth weekly rally in the last five weeks. In that span, shares are up 130%.
Interestingly, there were not a lot of trades that stood out specifically. However, one option was red hot, that being the $16 calls that expire on August 11th. Shortly after the session open, someone bought over $935,000 of these calls. Then, 10 minutes later, they bought another $960,000 of these calls.
For what it’s worth, the August $20 calls were also quite active on the long side.
Snap (SNAP)
Snap (US:SNAP) reported earnings earlier this week, falling 14.2% on July 26 as a result.
There was some pretty bullish flow going into the report, perhaps most notably the $7.7 million one trader spent on the August $14 calls. The calls were slightly out-of-the-money, with shares trading near $12.60 at the time. Obviously with the stock’s post-earnings decline though, these calls have been crushed.
On the flip side, less than an hour before the close on July 25 -- so just before the company reported earnings -- someone sold $1.11 million of the August $13.50 calls.
Nvidia (NVDA)
Given the rise of AI stocks and semiconductor stocks, Nvidia (US:NVDA) has been at the forefront of the market surge. Despite NVDA stock trading pretty well this week -- up in four out of five trading days this week -- the bear flow was evident.
There was quite a bit of low-seven-figure call sales, which is neutral at best but tends to lean bearish.
Two directional trades that stood out were clear. That’s as one trader bought $6.53 million of the June 2025 at-the-money $440 calls on July 24, which expire in almost two years. The other came a day later on a $4.53 million purchase of the September at-the-money $460 puts.
One other trade stood out, which came on July 26 as someone sold $24.97 million of the July 28 $510 puts and bought $24.94 million of the July 29 $505 puts. In other words, they sold the $510/$505 put spread, which was deep-in-the-money by about $50 a share and expired in just two days.
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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Apple (AAPL) As the biggest stock in the world is gearing up to report earnings on Aug. 3, it’s not surprising to see Apple (US:AAPL) on our list at Number 2. The second trade on AAPL stock options was a much deeper in-the-money position. Our guide is Fintel’s leaderboard of options activity, showing the action in both calls and puts, helping us keep track of it all when we see outsized volume.
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Apple (AAPL) As the biggest stock in the world is gearing up to report earnings on Aug. 3, it’s not surprising to see Apple (US:AAPL) on our list at Number 2. The second trade on AAPL stock options was a much deeper in-the-money position. Lucid Motors (LCID) Lucid Motors (US:LCID) lit up the options leaderboard during the week ending July 21 and traders were back at it last week, too.
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Apple (AAPL) As the biggest stock in the world is gearing up to report earnings on Aug. 3, it’s not surprising to see Apple (US:AAPL) on our list at Number 2. The second trade on AAPL stock options was a much deeper in-the-money position. That’s as one trader sold $5.57 million worth of the January 2024 $47 puts and $5.22 million worth of the $37 puts of the same expiration.
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Apple (AAPL) As the biggest stock in the world is gearing up to report earnings on Aug. 3, it’s not surprising to see Apple (US:AAPL) on our list at Number 2. The second trade on AAPL stock options was a much deeper in-the-money position. Notably, these LCID stock options were deep-in-the-money, with shares trading near $7.10 at the time of the trade.
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14619.0
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2023-07-31 00:00:00 UTC
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Foxconn unit to sign $194 mln components plant deal with India's Tamil Nadu-source
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AAPL
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https://www.nasdaq.com/articles/foxconn-unit-to-sign-%24194-mln-components-plant-deal-with-indias-tamil-nadu-source
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nan
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nan
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By Munsif Vengattil and Praveen Paramasivam
CHENNAI, July 31 (Reuters) - A Foxconn 2317.TW unit will on Monday sign an agreement with India's Tamil Nadu state to build a new facility for electronic components that will create 6,000 new jobs, a senior state government source with direct knowledge said.
The subsidiary, Foxconn Industrial Internet (FII) 601138.SS, plans to invest 16 billion Indian rupees ($194.45 million) to build a campus in Kancheepuram district, near the state's capital of Chennai, added the source, who was not authorised to speak publicly about the matter.
The facility will be separate from the current sprawling campus near Chennai where Foxconn assembles Apple's AAPL.O iPhones and employs more than 35,000 people, the source said.
Foxconn did not immediately respond to a request for comment. The state government, which did not immediately respond to a request for comment, said on LinkedIn on Monday morning a "big announcement" was expected during the day that would mean Tamil Nadu would retain its "top position as India's Electronics Powerhouse."
($1 = 82.2825 Indian rupees)
(Reporting by Munsif Vengattil in Bengaluru and Praveen Paramasivam in Chennai; Additional reporting by Yi-Mou Lee; Editing by Aditya Kalra and Jamie Freed)
((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))
The views and 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 facility will be separate from the current sprawling campus near Chennai where Foxconn assembles Apple's AAPL.O iPhones and employs more than 35,000 people, the source said. The subsidiary, Foxconn Industrial Internet (FII) 601138.SS, plans to invest 16 billion Indian rupees ($194.45 million) to build a campus in Kancheepuram district, near the state's capital of Chennai, added the source, who was not authorised to speak publicly about the matter. The state government, which did not immediately respond to a request for comment, said on LinkedIn on Monday morning a "big announcement" was expected during the day that would mean Tamil Nadu would retain its "top position as India's Electronics Powerhouse."
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The facility will be separate from the current sprawling campus near Chennai where Foxconn assembles Apple's AAPL.O iPhones and employs more than 35,000 people, the source said. By Munsif Vengattil and Praveen Paramasivam CHENNAI, July 31 (Reuters) - A Foxconn 2317.TW unit will on Monday sign an agreement with India's Tamil Nadu state to build a new facility for electronic components that will create 6,000 new jobs, a senior state government source with direct knowledge said. The state government, which did not immediately respond to a request for comment, said on LinkedIn on Monday morning a "big announcement" was expected during the day that would mean Tamil Nadu would retain its "top position as India's Electronics Powerhouse."
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The facility will be separate from the current sprawling campus near Chennai where Foxconn assembles Apple's AAPL.O iPhones and employs more than 35,000 people, the source said. By Munsif Vengattil and Praveen Paramasivam CHENNAI, July 31 (Reuters) - A Foxconn 2317.TW unit will on Monday sign an agreement with India's Tamil Nadu state to build a new facility for electronic components that will create 6,000 new jobs, a senior state government source with direct knowledge said. The subsidiary, Foxconn Industrial Internet (FII) 601138.SS, plans to invest 16 billion Indian rupees ($194.45 million) to build a campus in Kancheepuram district, near the state's capital of Chennai, added the source, who was not authorised to speak publicly about the matter.
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The facility will be separate from the current sprawling campus near Chennai where Foxconn assembles Apple's AAPL.O iPhones and employs more than 35,000 people, the source said. The subsidiary, Foxconn Industrial Internet (FII) 601138.SS, plans to invest 16 billion Indian rupees ($194.45 million) to build a campus in Kancheepuram district, near the state's capital of Chennai, added the source, who was not authorised to speak publicly about the matter. The state government, which did not immediately respond to a request for comment, said on LinkedIn on Monday morning a "big announcement" was expected during the day that would mean Tamil Nadu would retain its "top position as India's Electronics Powerhouse."
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14620.0
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2023-07-31 00:00:00 UTC
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Two Foolproof Plays for Apple’s Earnings
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AAPL
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https://www.nasdaq.com/articles/two-foolproof-plays-for-apples-earnings
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nan
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nan
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Having led much of the equity rally this year, shares of tech titan Apple Inc (NASDAQ: AAPL) have taken a hiatus in recent weeks. They managed to tag a fresh all-time high on July 19, but as they head into the final trading day of July on Monday, they're less than $1 higher than where they finished in June.
It's perhaps not too much of a surprise that buyers have run out of steam, considering the stock's chart is a straight line up from the start of the year. While the benchmark S&P 500 index has managed a return of 20% in the first seven months, Apple shares have given shareholders a 50% rally. Indeed, for much of the first two quarters, Apple shouldered most of the burden on keeping the major indices in positive territory.
The company will report fiscal third-quarter earnings next week, and one way or another, this will jolt the stock from its summer slumber. But how can investors best prepare and plan?
Here are two plays to consider for long-term Apple bulls.
Strong Appetite for Risk
If you've been sitting on the sidelines all year and waiting for an entry into Apple stock that hasn't appeared, buying before the company reports could be a solid, though risky option. The company has a history of beating analyst expectations for its quarterly reports and, more often than not, trades higher in the immediate aftermath.
Take its fiscal Q2 numbers from May. Both headline numbers were easily beaten, and shares finished up 5% the next day. Looking at what could be in store next week, the Goldman Sachs team expects it to beat the forecasts again, with something like $1.21 in EPS versus the $1.19 consensus and with revenues of $9.4 billion versus perhaps an overly cautious $6.3 billion estimate.
In a note to investors, analyst Michael Ng pointed out that Goldman's expected upside is due to several factors. These include the ongoing upswing in App Store spending, robust growth in advertising, ongoing content investments in AppleTV and a more favorable foreign exchange impact than what the company itself has forecasted.
Less Appetite for Risk
With earnings reports, however, there's always the risk of a surprise to the downside, even for stocks with stellar track records like Apple. So one way to mitigate this while still getting involved before the release would be to start with half your target position, then simply add to that at a better price if the stock dips on a negative result or if it rips on another upside beat.
The alternative is to take a wait-and-see approach. Investors bullish on Apple's long-term option but with less appetite for risk will be more suited to this, as it means staying on the sidelines until the report is released and jumping in. If there's an upside surprise, great. The multi-month trend that has meant Apple is one of the few tech stocks back at all-time highs will continue. If they miss and shares dip, it's also a positive outcome as the long-term outlook remains the same, but you get to be pickier with your entry and likely buy at a lower price.
Ultimately, no one is looking at Apple to make a quick buck, and there are a lot of other stocks out there more suited to investors with a short-term time horizon. And while some of Apple's tech peers like Alphabet Inc. (NASDAQ: GOOGL) and Tesla Inc. (NASDAQ: TSLA) have been receiving downgrades in recent weeks, its "buy" rating has been reiterated by the likes of Jefferies.
Analyst Andrew Uerkwitz and his team just increased their price target on the stock ahead of next week's release, upping it to $225. From where shares were trading into the weekend, that's pointing to a fresh upside of at least 15%. If you're bullish on the company's long-term potential regardless of the near-term numbers, then you can't go wrong with preparing either of these plays.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Having led much of the equity rally this year, shares of tech titan Apple Inc (NASDAQ: AAPL) have taken a hiatus in recent weeks. Strong Appetite for Risk If you've been sitting on the sidelines all year and waiting for an entry into Apple stock that hasn't appeared, buying before the company reports could be a solid, though risky option. So one way to mitigate this while still getting involved before the release would be to start with half your target position, then simply add to that at a better price if the stock dips on a negative result or if it rips on another upside beat.
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Having led much of the equity rally this year, shares of tech titan Apple Inc (NASDAQ: AAPL) have taken a hiatus in recent weeks. Strong Appetite for Risk If you've been sitting on the sidelines all year and waiting for an entry into Apple stock that hasn't appeared, buying before the company reports could be a solid, though risky option. Looking at what could be in store next week, the Goldman Sachs team expects it to beat the forecasts again, with something like $1.21 in EPS versus the $1.19 consensus and with revenues of $9.4 billion versus perhaps an overly cautious $6.3 billion estimate.
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Having led much of the equity rally this year, shares of tech titan Apple Inc (NASDAQ: AAPL) have taken a hiatus in recent weeks. Strong Appetite for Risk If you've been sitting on the sidelines all year and waiting for an entry into Apple stock that hasn't appeared, buying before the company reports could be a solid, though risky option. Less Appetite for Risk With earnings reports, however, there's always the risk of a surprise to the downside, even for stocks with stellar track records like Apple.
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Having led much of the equity rally this year, shares of tech titan Apple Inc (NASDAQ: AAPL) have taken a hiatus in recent weeks. The company has a history of beating analyst expectations for its quarterly reports and, more often than not, trades higher in the immediate aftermath. Investors bullish on Apple's long-term option but with less appetite for risk will be more suited to this, as it means staying on the sidelines until the report is released and jumping in.
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14621.0
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2023-07-31 00:00:00 UTC
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Factors to Note Ahead of NCR Corporation's (NCR) Q2 Earnings
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https://www.nasdaq.com/articles/factors-to-note-ahead-of-ncr-corporations-ncr-q2-earnings
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NCR Corporation NCR is set to report second-quarter 2023 results on Aug 2.
For the second quarter of 2023, NCR projects revenues between $1.9 billion and $2 billion. The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.95 billion, suggesting a 2.3% increase from the year-ago period.
The company forecasts a non-GAAP EPS in the band of 70-76 cents for the to-be-reported quarter. The consensus mark for earnings stands at 63 cents per share, 11.3% lower than the year-ago quarter.
In the last reported quarter, NCR delivered outstanding results, with strong revenue growth and increased profitability despite the challenging macroeconomic environment. The enterprise technology provider’s first-quarter non-GAAP earnings jumped 6% year over year to 56 cents per share and beat the Zacks Consensus Estimate of 43 cents. Revenues increased 1% year over year to $1.89 billion and beat the consensus mark of $1.84 billion.
Let’s see how things have shaped up before this announcement.
NCR Corporation Price and EPS Surprise
NCR Corporation price-eps-surprise | NCR Corporation Quote
Key Factors to Consider
NCR’s second-quarter performance is likely to have benefited from the strong demand for its software and service solutions across the banking, retail and hospitality industries. The rapid adoption of digital banking solutions is driving its Banking segment revenues.
The company received positive feedback from customers on the new features and the functionality of its digital banking solutions. Our estimate for the Digital Banking division’s revenues is currently pegged at $134.6 million, suggesting year-over-year growth of 2.8%.
In light of the pandemic and efforts to lower costs, hospitality-related businesses and food, restaurant, convenience, drug and fuel retail chain operators globally have been seeking technology to automate their processes. This has been driving the demand for NCR’s store and work operation automation-related software and service solutions.
In the last reported quarter, revenues from the Retail segment grew 1.1% year over year, while the Hospitality division’s sales soared 5.7%. The trend is likely to have continued in the second quarter. However, a negative impact of unfavorable foreign currency exchange rates is likely to have more than offset the benefits of the aforementioned factors for the Retail and Hospitality segments’ performance in the to-be-reported quarter.
Our estimate for the Retail division’s revenues is currently pegged at $561.1 million, indicating a year-over-year decline of 0.2%. Our estimate for the Hospitality business unit suggests revenues to decline approximately 2.4% year over year and reach $232.4 million.
NCR’s acquisition of Cardtronics last year is anticipated to have driven the acceleration of the NCR-as-a-service strategy. Cardtronics’ robust debit network expanded NCR’s payments platform and helped it connect with retail and bank customers, thereby facilitating customer acquisition. However, a strong U.S. dollar is likely to have more than offset the benefits. Our estimate for the Self-Service Banking segment is pegged at $649.6 million, indicating a year-over-year decline of 4.3%.
Additionally, NCR’s overall second-quarter performance is likely to have been negatively impacted by softening IT spending as organizations are pushing back their investments in big and expensive technology products due to global economic slowdown concerns.
Furthermore, the strong U.S. dollar, increased interest expenses and a higher tax rate are likely to have more than offset the benefits of last year’s pricing and cost actions. This is anticipated to have dragged the bottom line lower than the year-ago quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for NCR this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though NCR currently sports a Zacks Rank of #1, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA is slated to report second-quarter fiscal 2024 results on Aug 23. The company sports a Zacks Rank #1 and has an Earnings ESP of +5.56% at present. NVDA’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 0.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.06 per share, suggesting a whopping increase of 303.9% from the year-ago quarter’s earnings of 51 cents. NVIDIA’s quarterly revenues are estimated to increase 64.4% year over year to $11.02 billion.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +0.66%. The company is scheduled to report third-quarter fiscal 2023 results on Aug 3. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, with the average surprise being 2.7%.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.19 per share, a penny lower than the year-ago quarter. It is estimated to report revenues of $81.26 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Alibaba carries a Zacks Rank #3 and has an Earnings ESP of +6.19%. The company is scheduled to report first-quarter fiscal 2024 results on Aug 10. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for BABA’s first-quarter earnings is pegged at $1.90 per share, indicating a year-over-year increase of 8.6%. The consensus mark for revenues stands at $31.01 billion, suggesting a year-over-year rise of 1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Apple Inc. (AAPL) : Free Stock Analysis Report
NCR Corporation (NCR) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NCR Corporation (NCR) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. In light of the pandemic and efforts to lower costs, hospitality-related businesses and food, restaurant, convenience, drug and fuel retail chain operators globally have been seeking technology to automate their processes.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NCR Corporation (NCR) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. The enterprise technology provider’s first-quarter non-GAAP earnings jumped 6% year over year to 56 cents per share and beat the Zacks Consensus Estimate of 43 cents.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NCR Corporation (NCR) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. NCR Corporation Price and EPS Surprise NCR Corporation price-eps-surprise | NCR Corporation Quote Key Factors to Consider NCR’s second-quarter performance is likely to have benefited from the strong demand for its software and service solutions across the banking, retail and hospitality industries.
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Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NCR Corporation (NCR) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. Revenues increased 1% year over year to $1.89 billion and beat the consensus mark of $1.84 billion.
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14622.0
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2023-07-31 00:00:00 UTC
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1 Warren Buffett Stock to Buy Hand Over Fist Right Now
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-stock-to-buy-hand-over-fist-right-now
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If you're looking for a stock that can deliver consistent growth and dividends, you might want to consider Apple (NASDAQ: AAPL). The tech giant is the largest holding of Warren Buffett's Berkshire Hathaway, (NYSE: BRK.A) (NYSE: BRK.B) accounting for a whopping 47% of its stock holdings at last count. Here are some of the factors that make Apple stock a compelling buy and hold right now.
Strong financial performance
Apple's financial performance has been impressive in recent quarters, despite the headwinds of high interest rates, unfavorable foreign exchange rates, supply chain disruptions, a slowing global economy, and geopolitical uncertainty.
In the second quarter of fiscal 2023, for example, Apple reported revenue of $94.8 billion. This figure does mark a 3% decrease from the same quarter a year ago, but Apple still returned a staggering $23 billion to shareholders through share buybacks and dividends in the quarter. A business that can return that much cash to shareholders in a difficult operating environment is a model of success.
Apple is also poised to benefit from the recovery of the global economy in 2024. Wall Street analysts project that the tech behemoth will grow its revenue by 6.7% in 2024. Mid-single-digit revenue growth is a remarkable achievement for a company with market value of over $3 trillion as of this writing.
A loyal customer base
One of the key advantages Apple has over its competitors is its extremely loyal customer base. According to a survey by SellCell, a platform for selling used phones and tablets, 92% of iPhone owners plan to stick with Apple the next time they upgrade their devices. This figure is notably higher than the loyalty rates for competitors such as Samsung (85.7%) and Alphabet (84%).
Apple's loyal customers are willing not only to buy its hardware products but also its lineup of popular services, including Apple Pay and iTunes. That's great news, because Apple crossed the 2 billion active device user threshold last December. It thus has a huge customer base to leverage for its family of value-added services.
Moreover, Apple's customer loyalty is likely to increase further with the introduction of new features and products that enhance its ecosystem. For instance, Apple recently launched the Vision Pro mixed-reality headset. While the Vision Pro is unlikely to be a major revenue driver because of its hefty price point, cutting-edge innovations like this one are likely to attract even more customers and subsequently bolster retention rates even further.
A reasonable valuation and reliable dividend
Despite its strong performance and growth prospects, Apple's stock is not overly expensive compared to its peers. At present, Apple's stock is trading at 29.6 times projected earnings. For comparison, Microsoft shares trade at over 30 times projected earnings, and Amazon shares exchange hands at over 82 times forward earnings. Apple's shares, in turn, are reasonably valued for a high-growth tech company.
What's more, Apple stock offers a modest annualized dividend yield of 0.5% at current levels. While its dividend yield is below average for a large-cap company, its dividend is exceptionally well covered by earnings. Underscoring this point, Apple's trailing-12-month payout ratio of 15.5% is near rock bottom for a megacap company. Most of its peers, after all, sport payout ratios that consistently fall between 40% and 60%. Bottom line: The company should have no problem raising its dividend for the 12th consecutive year in the next fiscal period.
The big picture
Buffett is a big fan of Apple for a host of reasons. It has stellar financials, a loyal customer base, a reasonable valuation, and a well-supported dividend program. So if you're looking for a stock that can deliver long-term value and income, you might want to follow Buffett's lead and buy Apple hand over fist right now.
10 stocks we like better than Apple
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See the 10 stocks
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, 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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If you're looking for a stock that can deliver consistent growth and dividends, you might want to consider Apple (NASDAQ: AAPL). According to a survey by SellCell, a platform for selling used phones and tablets, 92% of iPhone owners plan to stick with Apple the next time they upgrade their devices. While the Vision Pro is unlikely to be a major revenue driver because of its hefty price point, cutting-edge innovations like this one are likely to attract even more customers and subsequently bolster retention rates even further.
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If you're looking for a stock that can deliver consistent growth and dividends, you might want to consider Apple (NASDAQ: AAPL). Strong financial performance Apple's financial performance has been impressive in recent quarters, despite the headwinds of high interest rates, unfavorable foreign exchange rates, supply chain disruptions, a slowing global economy, and geopolitical uncertainty. For comparison, Microsoft shares trade at over 30 times projected earnings, and Amazon shares exchange hands at over 82 times forward earnings.
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If you're looking for a stock that can deliver consistent growth and dividends, you might want to consider Apple (NASDAQ: AAPL). Apple's loyal customers are willing not only to buy its hardware products but also its lineup of popular services, including Apple Pay and iTunes. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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If you're looking for a stock that can deliver consistent growth and dividends, you might want to consider Apple (NASDAQ: AAPL). That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Microsoft.
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14623.0
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2023-07-31 00:00:00 UTC
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Big Earnings Reports Could Spark These ETFs
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AAPL
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https://www.nasdaq.com/articles/big-earnings-reports-could-spark-these-etfs
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nan
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Second-quarter earnings season is in full bloom. Broadly speaking, the results from mega-cap growth stocks have been solid even if ensuing reaction by market participants hasn’t been.
That sentiment is applicable to several components in the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). While not every QQQ and QQQM member firm that’s recently reported has been met with investor excitement, the exchange traded funds are higher by 5.55% over the past month.
Some marquee members of the QQQ and QQQM portfolios, including Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG), and Tesla (NASDAQ: TSLA) have already reported and reaction has been mixed. Next week marks the halfway point of earnings season. There are many opportunities remaining for QQQ and QQQM holdings to foster confidence among investors.
The ETFs could be in a good place over the near-term because Morgan Stanley recently unveiled its top picks for the remainder of earnings season. That group includes some QQQ and QQQM holdings.
Two “A’s” Could Help QQQ, QQQM
Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), which combine for nearly 17% of the QQQ and QQQM rosters, are among the ETFs’ components stepping into the earnings confessional next week. Both are on Morgan Stanley’s list of top ideas for the remainder of earnings season.
“We think upward revisions to North America profits, driven by shipping and fulfillment cost per unit efficiencies, combined with a more durable consumer and a potential reacceleration of AWS revenue in 3Q/2H23 provides a favorable backdrop as we head into the second half,” said analyst Brian Nowak of Amazon.
Amazon and Apple both report on Aug. 3 after the close of U.S. markets. Though not on the Morgan Stanley list, Advanced Micro Devices (AMD) is another example of a growth name reporting next week. The semiconductor giant delivers results on Aug. 1.
Specific to Apple, the company’s upcoming earnings report might be short on surprises. Still, things could get more interesting on the earnings front later this year.
“We expect a largely in-line June Q but see 4-9% upside to Sept Q rev/EPS, driven by relative strength in iPhone, Mac, Services & Gross Margins,” Apple Insider reported, citing Morgan Stanley research. “History shows Apple outperforms by 5-10 pts after guiding the Sept Q higher, creating a positive setup into earnings next [week]."
Apple will launch the latest iPhone in September. Significant improvements to that product or new products could lift the already hot stock.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two “A’s” Could Help QQQ, QQQM Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), which combine for nearly 17% of the QQQ and QQQM rosters, are among the ETFs’ components stepping into the earnings confessional next week. While not every QQQ and QQQM member firm that’s recently reported has been met with investor excitement, the exchange traded funds are higher by 5.55% over the past month. “We think upward revisions to North America profits, driven by shipping and fulfillment cost per unit efficiencies, combined with a more durable consumer and a potential reacceleration of AWS revenue in 3Q/2H23 provides a favorable backdrop as we head into the second half,” said analyst Brian Nowak of Amazon.
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Two “A’s” Could Help QQQ, QQQM Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), which combine for nearly 17% of the QQQ and QQQM rosters, are among the ETFs’ components stepping into the earnings confessional next week. That sentiment is applicable to several components in the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). The ETFs could be in a good place over the near-term because Morgan Stanley recently unveiled its top picks for the remainder of earnings season.
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Two “A’s” Could Help QQQ, QQQM Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), which combine for nearly 17% of the QQQ and QQQM rosters, are among the ETFs’ components stepping into the earnings confessional next week. That sentiment is applicable to several components in the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Some marquee members of the QQQ and QQQM portfolios, including Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG), and Tesla (NASDAQ: TSLA) have already reported and reaction has been mixed.
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Two “A’s” Could Help QQQ, QQQM Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), which combine for nearly 17% of the QQQ and QQQM rosters, are among the ETFs’ components stepping into the earnings confessional next week. Both are on Morgan Stanley’s list of top ideas for the remainder of earnings season. Amazon and Apple both report on Aug. 3 after the close of U.S. markets.
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14624.0
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2023-07-31 00:00:00 UTC
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GLOBAL MARKETS-US futures inch up; stock markets ride higher on cooler inflation
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AAPL
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https://www.nasdaq.com/articles/global-markets-us-futures-inch-up-stock-markets-ride-higher-on-cooler-inflation
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By Nell Mackenzie
LONDON July 31 (Reuters) - U.S. share futures treaded cautiously higher on Monday ahead of more large-cap earnings reports, central bank meetings and a key employment report due later this week.
US stock futures were mixed at 1100 GMT with the S&P 500 ESc1 and the Nasdaq 100 NQc1 both up about 0.1%.
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O.
U.S. futures were unenthused by a jump in European shares after euro zone inflation fell further in July seeing that most measures of underlying price growth also eased. Markets took this as a comforting sign for the European Central Bank (ECB) as it considers ending a brutal string of interest rate hikes.
Germany's blue-chip stocks index hit a record high at one point and was last up 0.1% .GDAXI. The pan-European STOXX 600 index .STOXX rose by 0.2%, heading for a second consecutive monthly gain.
This lightened the mood in markets after China's manufacturing activity fell for a fourth straight month in July, as demand remained weak at home and abroad, official surveys showed on Monday.
"Markets are treating information with a lot more sensitivity and people are looking into new information with a detailed eye," said Florian Ielpo, head of macro at Lombard Odier Investment Managers.
Within the detail of the Euro zone report, Deutsche Bank's senior European analyst Marc de Muizon noted how service prices were resilient in the region but not as strong as they should be at the height of the 2023 tourism season.
"The apparent strength of the headline quarterly growth was driven by a few country idiosyncrasies and masks an underlying momentum that is likely much closer to stagnation," de Muizon said.
EYES ON THE HORIZON
Figures hotly anticipated this week include the U.S. ISM surveys on manufacturing and services, as well as the July payrolls report.
All three main U.S. indexes ended last week higher and appear set to gain this month as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
Upbeat quarterly earnings from megacap growth companies including Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O have also boosted investor sentiment.
Almost 30% of the S&P 500 report results this week and so far earnings have been good enough to see the index extend its rally to 10% since the start of June.
The Dow Jones Industrial Average .DJI logged in July its longest winning streak in nearly four-decades underpinned by gains in sectors including healthcare, financials and energy that had underperformed during the first half of the year.
The Bank of England is widely expected to raise rates by at least a quarter point, but markets are more divided on whether the Reserve Bank of Australia will hike or stay on hold.
Traders cut bets on a continuing rally in the pound by the most since mid-June ahead of the Bank of England rate decision on Thursday.
Sterling has surged 24% from a record low of $1.033 against the dollar in September after a disastrous budget, hitting a 15-month high of $1.314 in mid-July.
The euro EUR=EBS gained, up 0.1% to $1.103, as did the dollar index =USD, staying largely flat at 101.660.
Investors continued to digest Friday's decision by the Bank of Japan (BOJ) to lift the lid on bond yields, in a step away from its ultra-easy policies.
Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
Japanese 10-year yields JP10YT=RR surged to a nine-year high up to 0.6% on Monday, and toward the new cap of 1.0%. That also put upward pressure on Treasury yields, where the 10-year US10YT=RR rose 1 basis point to 3.97%.
In commodities, gold traded flat at $1,960 an ounce XAU=, but still higher for the month so far. GOL/
Dropping oil inventories pushed Brent LCOc1 58 cents higher from Friday's close to $85.59 a barrel, while U.S. crude CLc1 rose 70 cents to $81.26.
(Reporting by Nell Mackenzie; Editing by Amanda Cooper, Jamie Freed, Himani Sarkar and Nick Macfie)
((Nell.mackenzie@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. This lightened the mood in markets after China's manufacturing activity fell for a fourth straight month in July, as demand remained weak at home and abroad, official surveys showed on Monday. Within the detail of the Euro zone report, Deutsche Bank's senior European analyst Marc de Muizon noted how service prices were resilient in the region but not as strong as they should be at the height of the 2023 tourism season.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Nell Mackenzie LONDON July 31 (Reuters) - U.S. share futures treaded cautiously higher on Monday ahead of more large-cap earnings reports, central bank meetings and a key employment report due later this week. Within the detail of the Euro zone report, Deutsche Bank's senior European analyst Marc de Muizon noted how service prices were resilient in the region but not as strong as they should be at the height of the 2023 tourism season.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Nell Mackenzie LONDON July 31 (Reuters) - U.S. share futures treaded cautiously higher on Monday ahead of more large-cap earnings reports, central bank meetings and a key employment report due later this week. All three main U.S. indexes ended last week higher and appear set to gain this month as signs of cooling inflation and a resilient economy have eased investor sentiment about the economy surviving amid higher rates for longer.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Nell Mackenzie LONDON July 31 (Reuters) - U.S. share futures treaded cautiously higher on Monday ahead of more large-cap earnings reports, central bank meetings and a key employment report due later this week. U.S. futures were unenthused by a jump in European shares after euro zone inflation fell further in July seeing that most measures of underlying price growth also eased.
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14625.0
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2023-07-31 00:00:00 UTC
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Stocks Set to Open Higher as Investors Await U.S. Payrolls Data and More Big Tech 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.-payrolls-data-and-more-big-tech-earnings
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nan
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nan
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September S&P 500 futures (ESU23) are up +0.11%, and September Nasdaq 100 E-Mini futures (NQU23) are up +0.09% this morning as market participants geared up for more corporate earnings results while also looking ahead to Friday’s nonfarm payrolls report.
In Friday’s trading session, Wall Street’s major averages closed solidly in the green. Intel Corporation (INTC) soared over +6% and was the top percentage gainer on the blue-chip Dow after the semiconductor giant posted better-than-expected Q2 results and issued upbeat Q3 guidance. Also, T. Rowe Price Group Inc (TROW) climbed more than +8% after the investment management firm posted stronger-than-expected Q2 results. In addition, Procter & Gamble Company (PG) rose over +2% after the consumer behemoth’s Q4 organic sales topped Wall Street consensus estimates. On the bearish side, Enphase Energy Inc (ENPH) plunged more than -7% after providing weaker-than-expected Q3 sales guidance.
Data from the U.S. Department of Commerce on Friday showed that the U.S. core PCE price index, a key inflation gauge monitored by the Federal Reserve, stood at +0.2% m/m and +4.1% y/y in June, compared to expectations of +0.2% m/m and +4.2% y/y. Also, the U.S. employment cost index came in at +1.0% q/q in the second quarter versus the expected +1.1% q/q level, the smallest pace of increase in 2 years. In addition, the University of Michigan’s reading of consumer sentiment arrived at 71.6 in July, weaker than expectations of 72.6.
“People are more sanguine about the possibility of inflation being under control and the economy avoiding a recession,” said Win Murray, a director of research at asset manager Diamond Hill.
Minneapolis Fed President Neel Kashkari said on Sunday that the inflation outlook in the U.S. is “quite positive,” but he also acknowledged that the central bank’s aggressive monetary tightening campaign would likely result in some job losses and slower economic growth.
In other news, Citigroup raised its year-end target for the S&P 500 by 15% to 4,600 points amid a higher probability of a soft landing for the U.S. economy.
Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM).
In the coming week, the U.S. Nonfarm Payrolls report for July will be the main highlight. Also, investors will be monitoring a spate of economic data, including the U.S. S&P Global Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices, JOLTs Job Openings, ADP Nonfarm Employment Change, Crude Oil Inventories, Initial Jobless Claims, Nonfarm Productivity (preliminary), Unit Labor Costs (preliminary), S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate.
Today, all eyes are focused on the U.S. Chicago PMI in a couple of hours. Economists, on average, forecast that the July Chicago PMI will stand at 43.0, compared to the previous value of 41.5.
In the bond markets, United States 10-Year rates are at 3.980%, up +0.33%.
The Euro Stoxx 50 futures are up +0.22% this morning as investors digested important Eurozone growth and inflation data while also weighing corporate earnings reports. Food and beverage stocks underperformed on Monday, while mining and healthcare stocks gained ground. Preliminary data released on Monday indicated that Eurozone headline inflation declined further in July, and most measures of underlying price growth also showed signs of easing. A separate data release revealed that the Eurozone economy returned to growth in the second quarter. Over the weekend, European Central Bank President Christine Lagarde stated that the ECB could raise interest rates again, even if it decides to pause at its next meeting. Meanwhile, the Bank of England will conduct its rate-setting meeting on Thursday, and there is divided sentiment among market participants regarding whether policymakers will revert back to a 25-basis point rate hike following a 50-basis point hike in June. In corporate news, Heineken NV (HEIA.A.DX) plunged over -5% after the Dutch brewer cut its 2023 profit growth forecast.
Germany’s Retail Sales, Italy’s GDP (preliminary), Italy’s CPI (preliminary), Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), and Eurozone’s GDP (preliminary) data were released today.
The German June Retail Sales stood at -0.8% m/m and -1.6% y/y, compared to expectations of +0.2% m/m and -2.7% y/y.
The Italian GDP has been reported at -0.3% q/q and +0.6% y/y in the second quarter, weaker than expectations of 0.0% q/q and +0.9% y/y.
The Italian July CPI came in at +0.1% m/m and +6.0% y/y, compared to expectations of +0.1% m/m and +6.1% y/y.
Eurozone July CPI arrived at -0.1% m/m and +5.3% y/y, compared to expectations of +0.3% m/m and +5.3% y/y.
Eurozone July Core CPI stood at -0.1% m/m and +5.5% y/y, stronger than expectations of -0.5% m/m and +5.4% y/y.
Eurozone GDP has been reported at +0.3% q/q and +0.6% y/y in the second quarter, stronger than expectations of +0.2% q/q and +0.5% y/y.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.46%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.26%.
China’s Shanghai Composite today closed higher as optimism over additional stimulus measures outweighed concerns about the further deterioration of business activity in July. Official surveys showed on Monday that China’s manufacturing activity declined for the fourth consecutive month in July, and the services and construction sectors were on the verge of contraction, posing a threat to growth prospects for the third quarter. China’s State Council on Monday issued measures to revive and expand consumption in the automobile, real estate, and services sectors, aiming to harness the “fundamental role” of consumption in economic development. Also, major Chinese cities like Beijing and Shenzhen made commitments to enhance their efforts in meeting the increasing housing demands of the public, contributing to national initiatives to revitalize the property market. Meanwhile, Hong Kong-listed tech stocks soared on Monday after the council unveiled measures aimed at supporting the country’s largest tech companies.
“We believe the Chinese government will continue to gradually introduce more supportive policies for the ailing property sector as required,” said Philip Meier, a multi-asset portfolio manager at Gramercy.
The Chinese July Manufacturing PMI stood at 49.3, stronger than expectations of 49.2.
The Chinese July Non-Manufacturing PMI came in at 51.5, weaker than expectations of 52.9.
Japan’s Nikkei 225 Stock Index closed sharply higher and hit a 4-week high today, driven by the Bank of Japan’s announcement of unscheduled bond-purchase operations aimed at containing the selloff triggered by its decision to allow yields to rise above a 0.5% cap. Government data showed on Monday that Japanese factory output recorded its first improvement in two months in June, reflecting manufacturers’ growing confidence boosted by robust demand. Meanwhile, the yen weakened on Monday, lifting export-oriented stocks. In corporate news, Toyota Tsusho Corp climbed over +9% after the company reported favorable quarterly results and raised its full-year consolidated earnings guidance. At the same time, Sumitomo Pharma tumbled about -10% following disappointing trial results for its schizophrenia treatment. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -1.22% to 18.59.
The Japanese June Industrial Production stood at +2.0% m/m, weaker than expectations of +2.4% m/m.
The Japanese July Household Confidence came in at 37.1, stronger than expectations of 36.0.
Pre-Market U.S. Stock Movers
Apellis Pharmaceuticals Inc (APLS) soared more than +12% in pre-market trading after the company announced data from the GALE extension study of SYFOVRE.
Tencent Music Entertainment Group (TME) fell over -2% in pre-market trading after Citi downgraded the stock to Neutral from Buy.
Chevron Corp (CVX) rose more than +1% in pre-market trading after Goldman Sachs upgraded the stock to Buy from Neutral.
Ionis Pharmaceuticals Inc (IONS) gained about +4% in pre-market trading after Citi upgraded the stock to Buy from Neutral.
Ford Motor Company (F) slid over -1% in pre-market trading after Jefferies downgraded the stock to Hold from Buy.
Adobe Systems Incorporated (ADBE) rose more than +2% in pre-market trading after Morgan Stanley upgraded the stock to Overweight from Equal Weight.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - July 31st
Republic Services (RSG), Arista Networks (ANET), ON Semiconductor (ON), Welltower (WELL), Diamondback (FANG), AvalonBay (AVB), Monolithic (MPWR), Yum China Holdings (YUMC), SBA Communications (SBAC), Symbotic (SYM), Hologic (HOLX), Biomarin Pharma (BMRN), Western Digital (WDC), Lattice (LSCC), CNA Financial (CNA), ZoomInfo (ZI), Regal Beloit (RRX), SoFi Technologies (SOFI), Avis (CAR), Tenet Healthcare (THC), Trex (TREX), TIM Participacoes (TIMB), Amkor (AMKR), Woodward (WWD), DoubleVerify Holdings (DV), Rambus (RMBS), Brixmor Property (BRX), MSA Safety (MSA), Transocean (RIG), Sonoco Products (SON), Huntsman (HUN), Kite Realty (KRG), ImmunoGen (IMGN), Vornado (VNO), One Gas Inc (OGS), Viper Energy Ut (VNOM), PotlatchDeltic (PCH), Kilroy (KRC), Leggett&Platt (LEG), Instructure Holdings (INST), Apellis Pharma (APLS), CVR Energy (CVI), Black Stone Minerals (BSM), Sanmina (SANM), Comstock Resources (CRK), Otter Tail (OTTR), Kemper (KMPR), Varonis Systems (VRNS), J & J Snack Foods (JJSF), Ameresco (AMRC), CNO Financial (CNO), Community Bank System (CBU), Alliance Resource (ARLP), SJW (SJW), Cushman & Wakefield (CWK), Camtek (CAMT), Atlas Energy (AESI), Archrock (AROC), Apollo Commercial RE Finance (ARI), Harmonic (HLIT), Inventrust Properties (IVT), NBT Bancorp (NBTB), Bank of N.T. Butterfield Son (NTB), Ryerson Holding (RYI), Heartland Financial (HTLF), Addus (ADUS), Elme (ELME), Centerra Gold (CGAU), Kforce (KFRC), Golden Entertainment (GDEN), Paramount Group Inc (PGRE), Franklin BSP Realty Trust (FBRT), Orthopediatrics (KIDS), Centerspace (CSR), Alexanders (ALX).
More Stock Market News from Barchart
Earnings, PMI and Other Can't Miss Items this WeekAlphabet Gushes Forth Record Free Cash Flow, Making GOOG Stock CheapWhy Getting Trigger Happy With Coinbase (COIN) Could Be a Bad IdeaA Copper Market Pickpocket Trade is Setting Up
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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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). Minneapolis Fed President Neel Kashkari said on Sunday that the inflation outlook in the U.S. is “quite positive,” but he also acknowledged that the central bank’s aggressive monetary tightening campaign would likely result in some job losses and slower economic growth. Official surveys showed on Monday that China’s manufacturing activity declined for the fourth consecutive month in July, and the services and construction sectors were on the verge of contraction, posing a threat to growth prospects for the third quarter.
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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). Also, investors will be monitoring a spate of economic data, including the U.S. S&P Global Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices, JOLTs Job Openings, ADP Nonfarm Employment Change, Crude Oil Inventories, Initial Jobless Claims, Nonfarm Productivity (preliminary), Unit Labor Costs (preliminary), S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate. Germany’s Retail Sales, Italy’s GDP (preliminary), Italy’s CPI (preliminary), Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), and Eurozone’s GDP (preliminary) data were released today.
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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). Also, investors will be monitoring a spate of economic data, including the U.S. S&P Global Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices, JOLTs Job Openings, ADP Nonfarm Employment Change, Crude Oil Inventories, Initial Jobless Claims, Nonfarm Productivity (preliminary), Unit Labor Costs (preliminary), S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate. Germany’s Retail Sales, Italy’s GDP (preliminary), Italy’s CPI (preliminary), Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), and Eurozone’s GDP (preliminary) data were released today.
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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). China’s Shanghai Composite Index (SHCOMP) closed up +0.46%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.26%. In corporate news, Toyota Tsusho Corp climbed over +9% after the company reported favorable quarterly results and raised its full-year consolidated earnings guidance.
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14626.0
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2023-07-31 00:00:00 UTC
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US Stocks futures inch up ahead of more megacap earnings, employment data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-inch-up-ahead-of-more-megacap-earnings-employment-data
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nan
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By Johann M Cherian and Bansari Mayur Kamdar
July 31 (Reuters) - U.S. stock index futures edged up on Monday with key benchmarks on track to end July higher, while investors awaited quarterly earnings from more megacap companies and a crucial employment report later this week.
All three main U.S. indexes ended last week higher as signs of cooling inflation and a resilient economy cemented investor bets on a soft landing for the country.
Upbeat quarterly earnings from megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O have also boosted investor sentiment.
Second-quarter earnings for S&P 500 companies are now estimated to have fallen 6.4% year-over-year, according to Refinitiv data. While still negative, the forecast is an improvement from the 7.9% drop estimated a week ago.
The blue-chip Dow .DJI logged its longest winning streak in nearly four-decades this month, underpinned by gains in sectors including healthcare, financials and energy that had underperformed during the first half of the year.
"Markets are growing increasingly confident that we are approaching the end of the current rate-hike cycle and that a soft landing can be delivered," said Joshua Warner, market analyst at City Index.
"However, the future path of interest rates and the outlook for earnings both remain at the behest of macroeconomic conditions and data will remain key."
Investors will parse remarks by Chicago Fed President Austan Goolsbee, a voting member of the Federal Open Market Committee, due later in the day.
Citigroup raised its 2023-end and mid-2024 S&P 500 targets to 4,600 and 5,000, respectively, to reflect a higher possibility of a soft landing. The benchmark index closed at 4,582 on Friday.
Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls are also in focus.
At 07:00 a.m. ET, Dow e-minis 1YMcv1 were up 44 points, or 0.12%, S&P 500 e-minis EScv1 were up 4.5 points, or 0.1%, and Nasdaq 100 e-minis NQcv1 were up 2.5 points, or 0.02%.
Financial services provider SoFi Technologies SOFI.O gained 7.2% in premarket trading on reporting better-than-expected quarterly revenue.
Chipmaker ON Semiconductor ON.O added 2.2% ahead of its second-quarter results.
Johnson & JohnsonJNJ.N shed 1.4% after a U.S. judge shot down the drugmaker's second attempt to resolve tens of thousands of lawsuits over its talc products.
Salesforce CRM.N eased 1.7% after Morgan Stanley cut the business software provider's rating, while UPS UPS.N slid 1.3% on a downgrade from Credit Suisse.
U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3OfmkDV
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru)
((johann.mcherian@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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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls are also in focus. All three main U.S. indexes ended last week higher as signs of cooling inflation and a resilient economy cemented investor bets on a soft landing for the country. Upbeat quarterly earnings from megacap growth companies such as Alphabet GOOGL.O, Meta Platforms META.O as well as chipmakers Intel INTC.O and Lam Research LRCX.O have also boosted investor sentiment.
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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - U.S. stock index futures edged up on Monday with key benchmarks on track to end July higher, while investors awaited quarterly earnings from more megacap companies and a crucial employment report later this week. U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3OfmkDV (Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru) ((johann.mcherian@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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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - U.S. stock index futures edged up on Monday with key benchmarks on track to end July higher, while investors awaited quarterly earnings from more megacap companies and a crucial employment report later this week. U.S. Markets Set For Strong Finish In July https://tmsnrt.rs/3OfmkDV (Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru) ((johann.mcherian@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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Investors await quarterly reports from Apple AAPL.O, Amazon.com AMZN.O and AMD AMD.O later this week, while July ISM Manufacturing reading and three sets of employment data, including July's non-farm payrolls are also in focus. By Johann M Cherian and Bansari Mayur Kamdar July 31 (Reuters) - U.S. stock index futures edged up on Monday with key benchmarks on track to end July higher, while investors awaited quarterly earnings from more megacap companies and a crucial employment report later this week. All three main U.S. indexes ended last week higher as signs of cooling inflation and a resilient economy cemented investor bets on a soft landing for the country.
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14627.0
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2023-07-31 00:00:00 UTC
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Stocks Set to Open Mixed as Investors Await U.S. Payrolls Data and More Big Tech Earnings
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AAPL
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https://www.nasdaq.com/articles/stocks-set-to-open-mixed-as-investors-await-u.s.-payrolls-data-and-more-big-tech-earnings
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nan
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September S&P 500 futures (ESU23) are up +0.01%, and September Nasdaq 100 E-Mini futures (NQU23) are down -0.03% this morning as market participants geared up for more corporate earnings results while also looking ahead to Friday’s nonfarm payrolls report.
In Friday’s trading session, Wall Street’s major averages closed solidly in the green. Intel Corporation (INTC) soared over +6% and was the top percentage gainer on the blue-chip Dow after the semiconductor giant posted better-than-expected Q2 results and issued upbeat Q3 guidance. Also, T. Rowe Price Group Inc (TROW) climbed more than +8% after the investment management firm posted stronger-than-expected Q2 results. In addition, Procter & Gamble Company (PG) rose over +2% after the consumer behemoth’s Q4 organic sales topped Wall Street consensus estimates. On the bearish side, Enphase Energy Inc (ENPH) plunged more than -7% after providing weaker-than-expected Q3 sales guidance.
Data from the U.S. Department of Commerce on Friday showed that the U.S. core PCE price index, a key inflation gauge monitored by the Federal Reserve, stood at +0.2% m/m and +4.1% y/y in June, compared to expectations of +0.2% m/m and +4.2% y/y. Also, the U.S. employment cost index came in at +1.0% q/q in the second quarter versus the expected +1.1% q/q level, the smallest pace of increase in 2 years. In addition, the University of Michigan’s reading of consumer sentiment arrived at 71.6 in July, weaker than expectations of 72.6.
“People are more sanguine about the possibility of inflation being under control and the economy avoiding a recession,” said Win Murray, a director of research at asset manager Diamond Hill.
Minneapolis Fed President Neel Kashkari said on Sunday that the inflation outlook in the U.S. is “quite positive,” but he also acknowledged that the central bank’s aggressive monetary tightening campaign would likely result in some job losses and slower economic growth.
In other news, Citigroup raised its year-end target for the S&P 500 by 15% to 4,600 points amid a higher probability of a soft landing for the U.S. economy.
Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM).
In the coming week, the U.S. Nonfarm Payrolls report for July will be the main highlight. Also, investors will be monitoring a spate of economic data, including the U.S. S&P Global Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices, JOLTs Job Openings, ADP Nonfarm Employment Change, Crude Oil Inventories, Initial Jobless Claims, Nonfarm Productivity (preliminary), Unit Labor Costs (preliminary), S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate.
Today, all eyes are focused on the U.S. Chicago PMI in a couple of hours. Economists, on average, forecast that the July Chicago PMI will stand at 43.0, compared to the previous value of 41.5.
In the bond markets, United States 10-Year rates are at 3.980%, up +0.33%.
The Euro Stoxx 50 futures are up +0.22% this morning as investors digested important Eurozone growth and inflation data while also weighing corporate earnings reports. Food and beverage stocks underperformed on Monday, while mining and healthcare stocks gained ground. Preliminary data released on Monday indicated that Eurozone headline inflation declined further in July, and most measures of underlying price growth also showed signs of easing. A separate data release revealed that the Eurozone economy returned to growth in the second quarter. Over the weekend, European Central Bank President Christine Lagarde stated that the ECB could raise interest rates again, even if it decides to pause at its next meeting. Meanwhile, the Bank of England will conduct its rate-setting meeting on Thursday, and there is divided sentiment among market participants regarding whether policymakers will revert back to a 25-basis point rate hike following a 50-basis point hike in June. In corporate news, Heineken NV (HEIA.A.DX) plunged over -5% after the Dutch brewer cut its 2023 profit growth forecast.
Germany’s Retail Sales, Italy’s GDP (preliminary), Italy’s CPI (preliminary), Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), and Eurozone’s GDP (preliminary) data were released today.
The German June Retail Sales stood at -0.8% m/m and -1.6% y/y, compared to expectations of +0.2% m/m and -2.7% y/y.
The Italian GDP has been reported at -0.3% q/q and +0.6% y/y in the second quarter, weaker than expectations of 0.0% q/q and +0.9% y/y.
The Italian July CPI came in at +0.1% m/m and +6.0% y/y, compared to expectations of +0.1% m/m and +6.1% y/y.
Eurozone July CPI arrived at -0.1% m/m and +5.3% y/y, compared to expectations of +0.3% m/m and +5.3% y/y.
Eurozone July Core CPI stood at -0.1% m/m and +5.5% y/y, stronger than expectations of -0.5% m/m and +5.4% y/y.
Eurozone GDP has been reported at +0.3% q/q and +0.6% y/y in the second quarter, stronger than expectations of +0.2% q/q and +0.5% y/y.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.46%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.26%.
China’s Shanghai Composite today closed higher as optimism over additional stimulus measures outweighed concerns about the further deterioration of business activity in July. Official surveys showed on Monday that China’s manufacturing activity declined for the fourth consecutive month in July, and the services and construction sectors were on the verge of contraction, posing a threat to growth prospects for the third quarter. China’s State Council on Monday issued measures to revive and expand consumption in the automobile, real estate, and services sectors, aiming to harness the “fundamental role” of consumption in economic development. Also, major Chinese cities like Beijing and Shenzhen made commitments to enhance their efforts in meeting the increasing housing demands of the public, contributing to national initiatives to revitalize the property market. Meanwhile, Hong Kong-listed tech stocks soared on Monday after the council unveiled measures aimed at supporting the country’s largest tech companies.
“We believe the Chinese government will continue to gradually introduce more supportive policies for the ailing property sector as required,” said Philip Meier, a multi-asset portfolio manager at Gramercy.
The Chinese July Manufacturing PMI stood at 49.3, stronger than expectations of 49.2.
The Chinese July Non-Manufacturing PMI came in at 51.5, weaker than expectations of 52.9.
Japan’s Nikkei 225 Stock Index closed sharply higher and hit a 4-week high today, driven by the Bank of Japan’s announcement of unscheduled bond-purchase operations aimed at containing the selloff triggered by its decision to allow yields to rise above a 0.5% cap. Government data showed on Monday that Japanese factory output recorded its first improvement in two months in June, reflecting manufacturers’ growing confidence boosted by robust demand. Meanwhile, the yen weakened on Monday, lifting export-oriented stocks. In corporate news, Toyota Tsusho Corp climbed over +9% after the company reported favorable quarterly results and raised its full-year consolidated earnings guidance. At the same time, Sumitomo Pharma tumbled about -10% following disappointing trial results for its schizophrenia treatment. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -1.22% to 18.59.
The Japanese June Industrial Production stood at +2.0% m/m, weaker than expectations of +2.4% m/m.
The Japanese July Household Confidence came in at 37.1, stronger than expectations of 36.0.
Pre-Market U.S. Stock Movers
Apellis Pharmaceuticals Inc (APLS) soared more than +12% in pre-market trading after the company announced data from the GALE extension study of SYFOVRE.
Tencent Music Entertainment Group (TME) fell over -2% in pre-market trading after Citi downgraded the stock to Neutral from Buy.
Chevron Corp (CVX) rose more than +1% in pre-market trading after Goldman Sachs upgraded the stock to Buy from Neutral.
Ionis Pharmaceuticals Inc (IONS) gained about +4% in pre-market trading after Citi upgraded the stock to Buy from Neutral.
Ford Motor Company (F) slid over -1% in pre-market trading after Jefferies downgraded the stock to Hold from Buy.
Adobe Systems Incorporated (ADBE) rose more than +2% in pre-market trading after Morgan Stanley upgraded the stock to Overweight from Equal Weight.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - July 31st
Republic Services (RSG), Arista Networks (ANET), ON Semiconductor (ON), Welltower (WELL), Diamondback (FANG), AvalonBay (AVB), Monolithic (MPWR), Yum China Holdings (YUMC), SBA Communications (SBAC), Symbotic (SYM), Hologic (HOLX), Biomarin Pharma (BMRN), Western Digital (WDC), Lattice (LSCC), CNA Financial (CNA), ZoomInfo (ZI), Regal Beloit (RRX), SoFi Technologies (SOFI), Avis (CAR), Tenet Healthcare (THC), Trex (TREX), TIM Participacoes (TIMB), Amkor (AMKR), Woodward (WWD), DoubleVerify Holdings (DV), Rambus (RMBS), Brixmor Property (BRX), MSA Safety (MSA), Transocean (RIG), Sonoco Products (SON), Huntsman (HUN), Kite Realty (KRG), ImmunoGen (IMGN), Vornado (VNO), One Gas Inc (OGS), Viper Energy Ut (VNOM), PotlatchDeltic (PCH), Kilroy (KRC), Leggett&Platt (LEG), Instructure Holdings (INST), Apellis Pharma (APLS), CVR Energy (CVI), Black Stone Minerals (BSM), Sanmina (SANM), Comstock Resources (CRK), Otter Tail (OTTR), Kemper (KMPR), Varonis Systems (VRNS), J & J Snack Foods (JJSF), Ameresco (AMRC), CNO Financial (CNO), Community Bank System (CBU), Alliance Resource (ARLP), SJW (SJW), Cushman & Wakefield (CWK), Camtek (CAMT), Atlas Energy (AESI), Archrock (AROC), Apollo Commercial RE Finance (ARI), Harmonic (HLIT), Inventrust Properties (IVT), NBT Bancorp (NBTB), Bank of N.T. Butterfield Son (NTB), Ryerson Holding (RYI), Heartland Financial (HTLF), Addus (ADUS), Elme (ELME), Centerra Gold (CGAU), Kforce (KFRC), Golden Entertainment (GDEN), Paramount Group Inc (PGRE), Franklin BSP Realty Trust (FBRT), Orthopediatrics (KIDS), Centerspace (CSR), Alexanders (ALX).
More Stock Market News from Barchart
Earnings, PMI and Other Can't Miss Items this WeekAlphabet Gushes Forth Record Free Cash Flow, Making GOOG Stock CheapWhy Getting Trigger Happy With Coinbase (COIN) Could Be a Bad IdeaA Copper Market Pickpocket Trade is Setting Up
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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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). Minneapolis Fed President Neel Kashkari said on Sunday that the inflation outlook in the U.S. is “quite positive,” but he also acknowledged that the central bank’s aggressive monetary tightening campaign would likely result in some job losses and slower economic growth. Official surveys showed on Monday that China’s manufacturing activity declined for the fourth consecutive month in July, and the services and construction sectors were on the verge of contraction, posing a threat to growth prospects for the third quarter.
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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). Also, investors will be monitoring a spate of economic data, including the U.S. S&P Global Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices, JOLTs Job Openings, ADP Nonfarm Employment Change, Crude Oil Inventories, Initial Jobless Claims, Nonfarm Productivity (preliminary), Unit Labor Costs (preliminary), S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate. Germany’s Retail Sales, Italy’s GDP (preliminary), Italy’s CPI (preliminary), Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), and Eurozone’s GDP (preliminary) data were released today.
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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). Also, investors will be monitoring a spate of economic data, including the U.S. S&P Global Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices, JOLTs Job Openings, ADP Nonfarm Employment Change, Crude Oil Inventories, Initial Jobless Claims, Nonfarm Productivity (preliminary), Unit Labor Costs (preliminary), S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate. Germany’s Retail Sales, Italy’s GDP (preliminary), Italy’s CPI (preliminary), Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), and Eurozone’s GDP (preliminary) data were released today.
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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). China’s Shanghai Composite Index (SHCOMP) closed up +0.46%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.26%. In corporate news, Toyota Tsusho Corp climbed over +9% after the company reported favorable quarterly results and raised its full-year consolidated earnings guidance.
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14628.0
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2023-07-31 00:00:00 UTC
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Apple, Amazon, Starbucks, Uber and others are part of Zacks Earnings Preview
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AAPL
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https://www.nasdaq.com/articles/apple-amazon-starbucks-uber-and-others-are-part-of-zacks-earnings-preview
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nan
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nan
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Chicago, IL – July 31, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Apple AAPL, Amazon AMZN, Starbucks SBUX, and Uber UBER.
Green Shoots Emerging from the Earnings Landscape
With a little over half of June-quarter results already out, we can confidently call the overall earnings picture reassuringly stable and resilient.
Earnings aren't great, but no one expected them to be so. Instead, many in the market feared a material deterioration in the outlook that would show up in negative guidance and lowered estimates. While we have seen a few reports with downbeat guidance, the overall tone and substance of guidance and management commentary have been favorable.
The net effect of this is a very stable earnings outlook, even though estimates in the aggregate are still coming down due to a weakening revisions trend for the Energy sector.
You can see this by comparing earnings estimates for 2023 Q3 as well as full-year 2023 today to where they stood at the start of July and April.
The expectation today is for 2023 Q3 earnings to be down -2.1% from the same period last year on +0.2% higher revenues. If we exclude the Energy sector, Q3 earnings would be up +3.3% on +3% higher revenues.
One month ago, on June 27th, the expectation was for Q3 earnings to be down -1.4% on +0.7% higher revenues. Q3 earnings were expected to be up +3.4% on an ex-Energy basis on June 27th.
Four months back, on March 29th, the expectation was for Q3 earnings to be up +0.6% on +0.7% higher revenues. Q3 earnings were expected to be up +4.4% on an ex-Energy basis on March 29th.
This discussion of evolving aggregate Q3 earnings estimates reflects that while analysts have cut their estimates for the period, a big part of the negative revisions is due to the Energy sector.
While estimates in the aggregate for the remaining 15 sectors of the S&P 500 index are essentially unchanged over the past month, there are plenty of cross-currents at the individual sector levels. Specifically, estimates for the Tech, Construction, Autos, Transportation, and Utilities sectors have increased while the same for the other sectors have modestly come down.
Regular readers of our earnings commentary would be familiar with these revisions trends, as we have been flagging them since the start of 2023 Q2. We noticed a significant stabilization in the revisions trend since the beginning of April, which was in contrast to the persistently negative revisions trend that had been in place for about a year prior.
Q2 is on track to be the third consecutive quarter of earnings declines and the first quarter of declining revenues. As noted earlier, a big part of the earnings and revenue weakness is due to the Energy sector. Excluding the Energy sector drag, Q2 earnings would be down -2.9% on +3.6% higher revenues.
2023 Q2 will be the 6th consecutive quarter of declining margins for the S&P 500 index.
Margins in Q2 are expected to be below the year-earlier level for 10 of the 16 Zacks sectors, with the biggest margin pressure expected to be in the Energy, Medical, Basic Materials, and Construction sectors.
With the earnings focus lately on the Tech sector, it is instructive to see how much distance has been covered on the margins front in this vital sector.
On the positive side, margins are on track to be above the year-earlier level for six sectors, with notable gains in the Consumer Discretionary, Finance, and Transportation sectors.
As noted earlier, the estimate revisions trend has notably stabilized since the start of Q2. In the aggregate, S&P 500 earnings estimates for 2023 have declined -1.6% since the beginning of April but only -0.5% on an ex-Energy basis. Importantly, estimates for sectors like Tech, Construction, Autos, and Transportation have increased in that timeframe.
We see this favorable turn in the revisions trend as green shoots in the overall earnings landscape and indicative of better days ahead.
Q2 Earnings Scorecard
As of Friday, July 28th, the Q2 earnings season crossed the halfway mark, with results from 254 S&P 500 members already out. We have a full reporting docket this upcoming week, with more than 1100 companies reporting results, including 169 S&P 500 members. By the end of this week, we will have seen Q2 results from almost 85% of the index members.
The notable companies reporting this week include Apple, Amazon, Starbucks, Uber and others.
Apple's Q2 earnings are expected to be -4.1% below the year-earlier level on -2% lower revenues. The stock has been a standout performer this year, up +50.1% vs. +19.4% for the S&P 500 index. It has been a while since Apple shares were down following a quarterly release. In fact, the last time the stock reacted negatively to a quarterly release was two years ago, in July 2021.
Uber, which reports before the market's open on Tuesday, August 1st, has done even better than Apple this year, up +95.6% in the year-to-date period. This is expected to be a milestone quarter for Uber, with the current consensus EPS estimate at breakeven, up from the year-earlier period's -$1.33 loss.
Total Q2 earnings for the 254 S&P 500 members are down -3.4% from the same period last year on +1.7% higher revenues, with 80.3% beating EPS estimates and 64.6% beating revenue estimates.
The Apple release after the market's close on Thursday, August 3rd, will keep the Tech sector in focus this week as well. Through Friday, July 28th, we have seen Q2 results from 52% of the sector's total market capitalization in the index. Total earnings for these Tech companies are up +0.4% from the same period last year on +1.5% higher revenues, with 93.8% beating EPS estimates and 75% beating revenue estimates.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Strong Tech Results Reflect a Resilient Earnings Picture
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week’s list includes Apple AAPL, Amazon AMZN, Starbucks SBUX, and Uber UBER. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. The net effect of this is a very stable earnings outlook, even though estimates in the aggregate are still coming down due to a weakening revisions trend for the Energy sector.
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This week’s list includes Apple AAPL, Amazon AMZN, Starbucks SBUX, and Uber UBER. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Strong Tech Results Reflect a Resilient Earnings Picture Why Haven't You Looked at Zacks' Top Stocks?
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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 Starbucks Corporation (SBUX) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. This week’s list includes Apple AAPL, Amazon AMZN, Starbucks SBUX, and Uber UBER. Total earnings for these Tech companies are up +0.4% from the same period last year on +1.5% higher revenues, with 93.8% beating EPS estimates and 75% beating revenue estimates.
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This week’s list includes Apple AAPL, Amazon AMZN, Starbucks SBUX, and Uber UBER. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. The net effect of this is a very stable earnings outlook, even though estimates in the aggregate are still coming down due to a weakening revisions trend for the Energy sector.
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14629.0
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2023-07-31 00:00:00 UTC
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GLOBAL MARKETS-European stocks stoked by cooler inflation report
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AAPL
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https://www.nasdaq.com/articles/global-markets-european-stocks-stoked-by-cooler-inflation-report
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nan
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By Nell Mackenzie and Wayne Cole
LONDON/SYDNEY, July 31 (Reuters) - European shares jumped on Monday after a key economic report for the region showed a fall in inflation - an optimistic kick-off for a week littered with major economic data, central bank meetings and earnings updates.
Euro zone inflation fell further in July and most measures of underlying price growth also eased, in a largely comforting sign for the European Central Bank (ECB) as it considers ending a brutal string of interest rate hikes.
Germany's blue-chip stocks index hit a record high at one point and was last up 0.3% .GDAXI. The pan-European STOXX 600 index .STOXX rose by 0.1%, heading for a second consecutive monthly gain.
This lightened the mood in markets after China's manufacturing activity fell for a fourth straight month in July, as demand remained weak at home and abroad, official surveys showed on Monday.
"Markets are treating information with a lot more sensitivity and people are looking into new information with a detailed eye," said Florian Ielpo, head of macro at Lombard Odier Investment Managers.
Figures due this week include the U.S. ISM surveys on manufacturing and services, as well as the July payrolls report.
The Bank of England is widely expected to raise rates by at least a quarter point, but markets are more divided on whether the Reserve Bank of Australia will hike or stay on hold.
Almost 30% of the S&P 500 report results this week and so far, earnings have been good enough to see the index extend its rally to 10% since the start of June.
Futures on both the S&P 500 ESc1and the Nasdaq 100 NQc1were flat.
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O.
PARSING THE BOJ
Japan's Nikkei .N225 closed up 1.26% to re-take the 33,000 level and nudge closer to its recent three-decade peak.
Investors are still pondering the implications of Friday's decision by the Bank of Japan (BOJ) to lift the lid on bond yields, in a step away from its ultra-easy policies.
Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
Japanese 10-year yields JP10YT=RR surged to a nine-year-high up to 0.6% on Monday, and toward the new cap of 1.0%. That also put upward pressure on Treasury yields, where the 10-year US10YT=RR rose 2 basis points to 3.98%.
While the yen had initially rallied on the BOJ move, it soon reversed course as investors still seemed happy to run carry trades, or yen-funded positions in higher-yielding currencies.
"Friday's action might best be viewed as an attempt to head off a fresh wave of yen-weakening carry trade activity, by at least ceasing to resist pressure for 10-year yields to rise above 0.5%," said Ray Attrill, head of FX strategy at National Australia Bank.
Traders cut their bets on a continuing rally in the pound by the most since mid-June ahead of the Bank of England rate decision on Thursday.
Sterling has surged 24% from a record low of $1.033 against the dollar in September after a disastrous budget, hitting a 15-month high of $1.314 in mid-July.
The euro EUR=EBS gained 0.1% to 1.1028 dollars as did the dollar index =USD rising 0.1% to 101.700.
In commodities, gold dropped 0.2% to $1,955 an ounce XAU=, but still 1.8% higher for the month so far. GOL/
Oil prices took a breather with brent LCOc1 flat at $85.00 a barrel, while U.S. crude CLc1 rose 18 cents to $80.78.
(Reporting by Nell Mackenzie and Wayne Cole; Editing by Jamie Freed and Himani Sarkar)
((Nell.mackenzie@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. Euro zone inflation fell further in July and most measures of underlying price growth also eased, in a largely comforting sign for the European Central Bank (ECB) as it considers ending a brutal string of interest rate hikes. This lightened the mood in markets after China's manufacturing activity fell for a fourth straight month in July, as demand remained weak at home and abroad, official surveys showed on Monday.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Nell Mackenzie and Wayne Cole LONDON/SYDNEY, July 31 (Reuters) - European shares jumped on Monday after a key economic report for the region showed a fall in inflation - an optimistic kick-off for a week littered with major economic data, central bank meetings and earnings updates. Traders cut their bets on a continuing rally in the pound by the most since mid-June ahead of the Bank of England rate decision on Thursday.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Nell Mackenzie and Wayne Cole LONDON/SYDNEY, July 31 (Reuters) - European shares jumped on Monday after a key economic report for the region showed a fall in inflation - an optimistic kick-off for a week littered with major economic data, central bank meetings and earnings updates. Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Nell Mackenzie and Wayne Cole LONDON/SYDNEY, July 31 (Reuters) - European shares jumped on Monday after a key economic report for the region showed a fall in inflation - an optimistic kick-off for a week littered with major economic data, central bank meetings and earnings updates. Figures due this week include the U.S. ISM surveys on manufacturing and services, as well as the July payrolls report.
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14630.0
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2023-07-31 00:00:00 UTC
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Stocks Set to Open Slightly Higher as Investors Await U.S. Payrolls Data and More Big Tech Earnings
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AAPL
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https://www.nasdaq.com/articles/stocks-set-to-open-slightly-higher-as-investors-await-u.s.-payrolls-data-and-more-big-tech
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nan
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nan
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September S&P 500 futures (ESU23) are up +0.07%, and September Nasdaq 100 E-Mini futures (NQU23) are up +0.03% this morning as market participants geared up for more corporate earnings results while also looking ahead to Friday’s nonfarm payrolls report.
In Friday’s trading session, Wall Street’s major averages closed solidly in the green. Intel Corporation (INTC) soared over +6% and was the top percentage gainer on the blue-chip Dow after the semiconductor giant posted better-than-expected Q2 results and issued upbeat Q3 guidance. Also, T. Rowe Price Group Inc (TROW) climbed more than +8% after the investment management firm posted stronger-than-expected Q2 results. In addition, Procter & Gamble Company (PG) rose over +2% after the consumer behemoth’s Q4 organic sales topped Wall Street consensus estimates. On the bearish side, Enphase Energy Inc (ENPH) plunged more than -7% after providing weaker-than-expected Q3 sales guidance.
Data from the U.S. Department of Commerce on Friday showed that the U.S. core PCE price index, a key inflation gauge monitored by the Federal Reserve, stood at +0.2% m/m and +4.1% y/y in June, compared to expectations of +0.2% m/m and +4.2% y/y. Also, the U.S. employment cost index came in at +1.0% q/q in the second quarter versus the expected +1.1% q/q level, the smallest pace of increase in 2 years. In addition, the University of Michigan’s reading of consumer sentiment arrived at 71.6 in July, weaker than expectations of 72.6.
“People are more sanguine about the possibility of inflation being under control and the economy avoiding a recession,” said Win Murray, a director of research at asset manager Diamond Hill.
Minneapolis Fed President Neel Kashkari said on Sunday that the inflation outlook in the U.S. is “quite positive,” but he also acknowledged that the central bank’s aggressive monetary tightening campaign would likely result in some job losses and slower economic growth.
In other news, Citigroup raised its year-end target for the S&P 500 by 15% to 4,600 points amid a higher probability of a soft landing for the U.S. economy.
Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM).
In the coming week, the U.S. Nonfarm Payrolls report for July will be the main highlight. Also, investors will be monitoring a spate of economic data, including the U.S. S&P Global Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices, JOLTs Job Openings, ADP Nonfarm Employment Change, Crude Oil Inventories, Initial Jobless Claims, Nonfarm Productivity (preliminary), Unit Labor Costs (preliminary), S&P Global Composite PMI, S&P Global Services PMI, ISM Non-Manufacturing PMI, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate.
Today, all eyes are focused on the U.S. Chicago PMI in a couple of hours. Economists, on average, forecast that the July Chicago PMI will stand at 43.0, compared to the previous value of 41.5.
In the bond markets, United States 10-Year rates are at 3.980%, up +0.33%.
The Euro Stoxx 50 futures are up +0.22% this morning as investors digested important Eurozone growth and inflation data while also weighing corporate earnings reports. Food and beverage stocks underperformed on Monday, while mining and healthcare stocks gained ground. Preliminary data released on Monday indicated that Eurozone headline inflation declined further in July, and most measures of underlying price growth also showed signs of easing. A separate data release revealed that Eurozone returned to growth in the second quarter. Over the weekend, European Central Bank President Christine Lagarde stated that the ECB could raise interest rates again, even if it decides to pause at its next meeting. Meanwhile, the Bank of England will conduct its rate-setting meeting on Thursday, and there is divided sentiment among market participants regarding whether policymakers will revert back to a 25-basis point rate hike following a 50-basis point hike in June. In corporate news, Heineken NV (HEIA.A.DX) plunged over -5% after the Dutch brewer cut its 2023 profit growth forecast.
Germany’s Retail Sales, Italy’s GDP (preliminary), Italy’s CPI (preliminary), Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), and Eurozone’s GDP (preliminary) data were released today.
The German June Retail Sales stood at -0.8% m/m and -1.6% y/y, compared to expectations of +0.2% m/m and -2.7% y/y.
The Italian GDP has been reported at -0.3% q/q and +0.6% y/y in the second quarter, weaker than expectations of 0.0% q/q and +0.9% y/y.
The Italian July CPI came in at +0.1% m/m and +6.0% y/y, compared to expectations of +0.1% m/m and +6.1% y/y.
Eurozone July CPI arrived at -0.1% m/m and +5.3% y/y, compared to expectations of +0.3% m/m and +5.3% y/y.
Eurozone July Core CPI stood at -0.1% m/m and +5.5% y/y, stronger than expectations of -0.5% m/m and +5.4% y/y.
Eurozone GDP has been reported at +0.3% q/q and +0.6% y/y in the second quarter, stronger than expectations of +0.2% q/q and +0.5% y/y.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.46%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.26%.
China’s Shanghai Composite today closed higher as optimism over additional stimulus measures outweighed concerns about the further deterioration of business activity in July. Official surveys showed on Monday that China’s manufacturing activity declined for the fourth consecutive month in July, and the services and construction sectors were on the verge of contraction, posing a threat to growth prospects for the third quarter. China’s State Council on Monday issued measures to revive and expand consumption in the automobile, real estate, and services sectors, aiming to harness the “fundamental role” of consumption in economic development. Also, major Chinese cities like Beijing and Shenzhen made commitments to enhance their efforts in meeting the increasing housing demands of the public, contributing to national initiatives to revitalize the property market. Meanwhile, Hong Kong-listed tech stocks soared on Monday after the council unveiled measures aimed at supporting the country’s largest tech companies.
“We believe the Chinese government will continue to gradually introduce more supportive policies for the ailing property sector as required,” said Philip Meier, a multi-asset portfolio manager at Gramercy.
The Chinese July Manufacturing PMI stood at 49.3, stronger than expectations of 49.2.
The Chinese July Non-Manufacturing PMI came in at 51.5, weaker than expectations of 52.9.
Japan’s Nikkei 225 Stock Index closed sharply higher and hit a 4-week high today, driven by the Bank of Japan’s announcement of unscheduled bond-purchase operations aimed at containing the selloff triggered by its decision to allow yields to rise above a 0.5% cap. Government data showed on Monday that Japanese factory output recorded its first improvement in two months in June, reflecting manufacturers’ growing confidence boosted by robust demand. Meanwhile, the yen weakened on Monday, lifting export-oriented stocks. In corporate news, Toyota Tsusho Corp climbed over +9% after the company reported favorable quarterly results and raised its full-year consolidated earnings guidance. At the same time, Sumitomo Pharma tumbled about -10% following disappointing trial results for its schizophrenia treatment. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -1.22% to 18.59.
The Japanese June Industrial Production stood at +2.0% m/m, weaker than expectations of +2.4% m/m.
The Japanese July Household Confidence came in at 37.1, stronger than expectations of 36.0.
Pre-Market U.S. Stock Movers
Yellow Corp (YELL) plunged over -9% in pre-market trading following an announcement by the Teamsters Union on Sunday stating that the U.S. trucking company has ceased operations and is filing for bankruptcy.
Apellis Pharmaceuticals Inc (APLS) soared more than +12% in pre-market trading after the company announced data from the GALE extension study of SYFOVRE.
Tencent Music Entertainment Group (TME) fell over -2% in pre-market trading after Citi downgraded the stock to Neutral from Buy.
Chevron Corp (CVX) rose more than +1% in pre-market trading after Goldman Sachs upgraded the stock to Buy from Neutral.
Ionis Pharmaceuticals Inc (IONS) gained about +4% in pre-market trading after Citi upgraded the stock to Buy from Neutral.
Ford Motor Company (F) slid over -1% in pre-market trading after Jefferies downgraded the stock to Hold from Buy.
Adobe Systems Incorporated (ADBE) rose more than +2% in pre-market trading after Morgan Stanley upgraded the stock to Overweight from Equal Weight.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - July 31st
Republic Services (RSG), Arista Networks (ANET), ON Semiconductor (ON), Welltower (WELL), Diamondback (FANG), AvalonBay (AVB), Monolithic (MPWR), Yum China Holdings (YUMC), SBA Communications (SBAC), Symbotic (SYM), Hologic (HOLX), Biomarin Pharma (BMRN), Western Digital (WDC), Lattice (LSCC), CNA Financial (CNA), ZoomInfo (ZI), Regal Beloit (RRX), SoFi Technologies (SOFI), Avis (CAR), Tenet Healthcare (THC), Trex (TREX), TIM Participacoes (TIMB), Amkor (AMKR), Woodward (WWD), DoubleVerify Holdings (DV), Rambus (RMBS), Brixmor Property (BRX), MSA Safety (MSA), Transocean (RIG), Sonoco Products (SON), Huntsman (HUN), Kite Realty (KRG), ImmunoGen (IMGN), Vornado (VNO), One Gas Inc (OGS), Viper Energy Ut (VNOM), PotlatchDeltic (PCH), Kilroy (KRC), Leggett&Platt (LEG), Instructure Holdings (INST), Apellis Pharma (APLS), CVR Energy (CVI), Black Stone Minerals (BSM), Sanmina (SANM), Comstock Resources (CRK), Otter Tail (OTTR), Kemper (KMPR), Varonis Systems (VRNS), J & J Snack Foods (JJSF), Ameresco (AMRC), CNO Financial (CNO), Community Bank System (CBU), Alliance Resource (ARLP), SJW (SJW), Cushman & Wakefield (CWK), Camtek (CAMT), Atlas Energy (AESI), Archrock (AROC), Apollo Commercial RE Finance (ARI), Harmonic (HLIT), Inventrust Properties (IVT), NBT Bancorp (NBTB), Bank of N.T. Butterfield Son (NTB), Ryerson Holding (RYI), Heartland Financial (HTLF), Addus (ADUS), Elme (ELME), Centerra Gold (CGAU), Kforce (KFRC), Golden Entertainment (GDEN), Paramount Group Inc (PGRE), Franklin BSP Realty Trust (FBRT), Orthopediatrics (KIDS), Centerspace (CSR), Alexanders (ALX).
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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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). Minneapolis Fed President Neel Kashkari said on Sunday that the inflation outlook in the U.S. is “quite positive,” but he also acknowledged that the central bank’s aggressive monetary tightening campaign would likely result in some job losses and slower economic growth. Official surveys showed on Monday that China’s manufacturing activity declined for the fourth consecutive month in July, and the services and construction sectors were on the verge of contraction, posing a threat to growth prospects for the third quarter.
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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). Also, investors will be monitoring a spate of economic data, including the U.S. S&P Global Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices, JOLTs Job Openings, ADP Nonfarm Employment Change, Crude Oil Inventories, Initial Jobless Claims, Nonfarm Productivity (preliminary), Unit Labor Costs (preliminary), S&P Global Composite PMI, S&P Global Services PMI, ISM Non-Manufacturing PMI, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate. Preliminary data released on Monday indicated that Eurozone headline inflation declined further in July, and most measures of underlying price growth also showed signs of easing.
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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). Also, investors will be monitoring a spate of economic data, including the U.S. S&P Global Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices, JOLTs Job Openings, ADP Nonfarm Employment Change, Crude Oil Inventories, Initial Jobless Claims, Nonfarm Productivity (preliminary), Unit Labor Costs (preliminary), S&P Global Composite PMI, S&P Global Services PMI, ISM Non-Manufacturing PMI, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate. Germany’s Retail Sales, Italy’s GDP (preliminary), Italy’s CPI (preliminary), Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), and Eurozone’s GDP (preliminary) data were released today.
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Second-quarter earnings season continues to roll on, and investors anticipate fresh reports from major global companies this week, including Apple (AAPL), Amazon.com (AMZN), Merck&Co (MRK), Pfizer (PFE), AMD (AMD), Caterpillar (CAT), Starbucks (SBUX), and Qualcomm (QCOM). In corporate news, Toyota Tsusho Corp climbed over +9% after the company reported favorable quarterly results and raised its full-year consolidated earnings guidance. Ionis Pharmaceuticals Inc (IONS) gained about +4% in pre-market trading after Citi upgraded the stock to Buy from Neutral.
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14631.0
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2023-07-31 00:00:00 UTC
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DXC Technology (DXC) to Report Q1 Earnings: What's in Store?
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AAPL
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https://www.nasdaq.com/articles/dxc-technology-dxc-to-report-q1-earnings%3A-whats-in-store
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nan
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nan
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DXC Technology DXC is slated to report first-quarter fiscal 2024 results on Aug 2.
For the first quarter of fiscal 2024, the company anticipates revenues between $3.45 billion and $3.58 billion. The Zacks Consensus Estimate for fiscal first-quarter revenues stands at $3.56 billion, indicating a year-over-year decline of approximately 4%.
DXC anticipates non-GAAP earnings between 80 cents and 85 cents per share. The consensus mark for earnings is pegged at 82 per share, suggesting a 9.3% year-over-year increase.
The company’s earnings outpaced estimates thrice in the trailing four quarters while missing the same on one occasion, with an average surprise of 2.2%.
Let’s see how things are shaping up for this announcement.
DXC Technology Company. Price and EPS Surprise
DXC Technology Company. price-eps-surprise | DXC Technology Company. Quote
Factors to Consider
The strong U.S. dollar against major currencies and the concluded divestments of certain business units in the past 12 months are anticipated to have negatively impacted DXC’s fiscal first-quarter top line. The company projected that acquisitions and divestitures concluded in the past 12 months would have a negative impact of 2.6% on first-quarter sales.
Moreover, a weak traditional business is likely to have weighed on the to-be-reported quarter's performance. However, sequential revenue stabilization is expected to have continued.
The negative impacts of the aforementioned factors are likely to have been partially offset by DXC’s strength in the digital business and partnerships, which have been helping it expand in the cloud computing space. A modest increase in IT spending is anticipated to have contributed to the top line in the quarter to be reported.
As a result, excluding the impact of exchange rates, and acquisitions and divestitures in the past 12 months, DXC projects first-quarter total revenues to decline in the range of 1%-2% on an organic basis. Our estimate suggests that the company’s total organic revenues are likely to have declined 1.1% in the to-be-reported quarter.
The year-over-year expected organic revenue decline is mainly due to an anticipated weak performance at DXC’s Global Infrastructure Services (“GIS”), partially offset by the continued strong performance of the Global Business Services (“GBS”) segment.
Our estimate for the GIS segment’s first-quarter revenues is pegged at $1.85 billion, indicating a year-over-year decline of 5.2% on an organic basis. Meanwhile, our estimate of $1.73 billion for the GBS segment’s revenues suggests year-over-year organic growth of 3.2%.
Moreover, margins are forecast to have benefited from the company’s cost-saving initiatives and reduction in debts, which are likely to have lowered its interest expenses during the quarter. DXC projects the adjusted EBIT margin in the range of 7.5%-8% in the fiscal first quarter. Apart from the abovementioned factors, a reduction in shares outstanding on the company’s aggressive share repurchase initiative is likely to have boosted the EPS.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for DXC this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though DXC currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA is slated to report second-quarter fiscal 2024 results on Aug 23. The company sports a Zacks Rank #1 and has an Earnings ESP of +5.56% at present. NVDA’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 0.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.06 per share, suggesting a whopping increase of 303.9% from the year-ago quarter’s earnings of 51 cents. NVIDIA’s quarterly revenues are estimated to increase 64.4% year over year to $11.02 billion.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +0.66%. The company is scheduled to report third-quarter fiscal 2023 results on Aug 3. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, with the average surprise being 2.7%.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.19 per share, a penny lower than the year-ago quarter. It is estimated to report revenues of $81.26 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Alibaba carries a Zacks Rank #3 and has an Earnings ESP of +6.19%. The company is scheduled to report first-quarter fiscal 2024 results on Aug 10. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for BABA’s first-quarter earnings is pegged at $1.90 per share, indicating a year-over-year increase of 8.6%. The consensus mark for revenues stands at $31.01 billion, suggesting a year-over-year rise of 1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
DXC Technology Company. (DXC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report DXC Technology Company. Quote Factors to Consider The strong U.S. dollar against major currencies and the concluded divestments of certain business units in the past 12 months are anticipated to have negatively impacted DXC’s fiscal first-quarter top line.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report DXC Technology Company. Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. The Zacks Consensus Estimate for fiscal first-quarter revenues stands at $3.56 billion, indicating a year-over-year decline of approximately 4%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report DXC Technology Company. Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.06 per share, suggesting a whopping increase of 303.9% from the year-ago quarter’s earnings of 51 cents.
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Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report DXC Technology Company. DXC Technology DXC is slated to report first-quarter fiscal 2024 results on Aug 2.
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14632.0
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2023-07-31 00:00:00 UTC
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GLOBAL MARKETS-Asia shares up as China talks stimulus; Japanese yields a risk
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-up-as-china-talks-stimulus-japanese-yields-a-risk
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nan
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nan
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By Wayne Cole
SYDNEY, July 31 (Reuters) - Asian shares were trying to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields posed a risk.
China surveys were mixed with factory activity just pipping forecasts but services disappointing, though both merely reinforced wagers that Beijing would have to act at some point.
China's State Council on Monday did issue measures to restore and expand consumption in the automobile, real estate and services sector, though this was a long way from the massive fiscal spending markets have been counting on.
Blue chips .CSI300 seemed unperturbed and added 0.6%, bringing gains for July to 4.5%.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed 0.5%, having gained 5.2% so far in July to reach a five-month high.
The initial impetus for markets was positive following Friday's U.S. data showing an easing in wage costs and core inflation, which fuelled hopes the Federal Reserve was done tightening.
"The data surprises bolster confidence that global core inflation - ex. China - will fall sharply and set the stage for a developed market central policy pause and emerging market easing even if growth remains firm," said Bruce Kasman, head of economic research at JPMorgan.
Figures due this week include the U.S. ISM surveys on manufacturing and services, the July payrolls report and European inflation.
The Bank of England is widely expected to raise rates by at least a quarter point, but markets are more divided on whether the Reserve Bank of Australia will hike or stay on hold.
Almost 30% of the S&P 500 report results this week and so far, earnings have been good enough to see the index extend its rally to 10% since the start of June.
S&P 500 futures ESc1 dipped 0.1% on Monday, but the index was still up 2.9% for July, while Nasdaq futures NQc1 dipped 0.2%. EUROSTOXX 50 futures STXEc1 and FTSE futures FFIc1 both eased 0.4%.
Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O.
PARSING THE BOJ
Japan's Nikkei .N225 rose 1.2% to re-take the 33,000 level and nudge closer to its recent three-decade peak.
Investors are still pondering the implications of Friday's shock decision by the Bank of Japan (BOJ) to lift the lid on bond yields, in a step away from its ultra-easy policies.
Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
Japanese 10-year yields JP10YT=RR climbed further to 0.6% on Monday, and toward the new cap of 1.0%. That also put upward pressure on Treasury yields, where the 10-year US10YT=RR rose 3 basis points to 3.99%.
While the yen had initially rallied on the BOJ move, it soon reversed course as investors still seemed happy to run carry trades, or yen-funded positions in higher-yielding currencies.
"Friday's action might best be viewed as an attempt to head off a fresh wave of yen-weakening carry trade activity, by at least ceasing to resist pressure for 10-year yields to rise above 0.5%," said Ray Attrill, head of FX strategy at National Australia Bank.
"Friday's actions do, though, fail to provide a catalyst for a secular reversal of yen weakness."
The yen was again under pressure on Monday as the dollar pushed up to 141.87 yen JPY=EBS, a long way from Friday's brief low of 138.05.
The euro had also recovered from its initial pullback to stand at 156.18 yen EURJPY=, while steadying on the dollar at $1.1010 EUR=EBS after some wild swings last week.
In commodities, gold was off a shade at $1,955 an ounce XAU=, leaving it 1.8% higher for the month so far. GOL/
Oil prices took a breather, having risen for five weeks in a row as production cuts by OPEC+ tightened supply. O/R
Goldman Sachs on Sunday revised up its global oil demand forecast for the year while sticking to its 12-month Brent price projection of $93 per barrel.
Brent LCOc1 was off 59 cents at $84.40 a barrel, while U.S. crude CLc1 eased 31 cents to $80.27.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Jamie Freed and Himani Sarkar)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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 Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares were trying to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields posed a risk. China's State Council on Monday did issue measures to restore and expand consumption in the automobile, real estate and services sector, though this was a long way from the massive fiscal spending markets have been counting on.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares were trying to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields posed a risk. Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares were trying to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields posed a risk. Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
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Apple Inc AAPL.O and Amazon.com AMZN.O both report on Thursday, while other well-known names with results due include Western Digital Corp WDC.O, Caterpillar Inc CAT.N, Starbucks Corp SBUX.O, and Advanced Micro Devices AMD.O. While the yen had initially rallied on the BOJ move, it soon reversed course as investors still seemed happy to run carry trades, or yen-funded positions in higher-yielding currencies. The yen was again under pressure on Monday as the dollar pushed up to 141.87 yen JPY=EBS, a long way from Friday's brief low of 138.05.
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14633.0
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2023-07-31 00:00:00 UTC
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Foxconn unit to sign $194 mln components plant deal with India's Tamil Nadu-source
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AAPL
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https://www.nasdaq.com/articles/foxconn-unit-to-sign-%24194-mln-components-plant-deal-with-indias-tamil-nadu-source-0
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By Munsif Vengattil and Praveen Paramasivam
CHENNAI, July 31 (Reuters) - A Foxconn 2317.TW unit will on Monday sign an agreement with India's Tamil Nadu state to build a new facility for electronic components that will create 6,000 new jobs, a senior state government source with direct knowledge said.
The subsidiary, Foxconn Industrial Internet (FII) 601138.SS, plans to invest 16 billion Indian rupees ($194.45 million) to build a campus in Kancheepuram district, near the state's capital of Chennai, added the source, who was not authorised to speak publicly about the matter.
The facility will be separate from the current sprawling campus near Chennai where Foxconn assembles Apple's AAPL.O iPhones and employs more than 35,000 people, the source said.
Foxconn did not immediately respond to a request for comment. The state government, which did not immediately respond to a request for comment, said on LinkedIn on Monday morning a "big announcement" was expected during the day that would mean Tamil Nadu would retain its "top position as India's Electronics Powerhouse."
Foxconn's FII makes electronic devices, cloud service equipment and industrial robots. It was not immediately clear if the new India plant would make components for iPhones or for other companies, or both.
($1 = 82.2825 Indian rupees)
(Reporting by Munsif Vengattil in Bengaluru and Praveen Paramasivam in Chennai; Additional reporting by Yi-Mou Lee; Editing by Aditya Kalra and Jamie Freed)
((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))
The views and 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 facility will be separate from the current sprawling campus near Chennai where Foxconn assembles Apple's AAPL.O iPhones and employs more than 35,000 people, the source said. The subsidiary, Foxconn Industrial Internet (FII) 601138.SS, plans to invest 16 billion Indian rupees ($194.45 million) to build a campus in Kancheepuram district, near the state's capital of Chennai, added the source, who was not authorised to speak publicly about the matter. The state government, which did not immediately respond to a request for comment, said on LinkedIn on Monday morning a "big announcement" was expected during the day that would mean Tamil Nadu would retain its "top position as India's Electronics Powerhouse."
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The facility will be separate from the current sprawling campus near Chennai where Foxconn assembles Apple's AAPL.O iPhones and employs more than 35,000 people, the source said. By Munsif Vengattil and Praveen Paramasivam CHENNAI, July 31 (Reuters) - A Foxconn 2317.TW unit will on Monday sign an agreement with India's Tamil Nadu state to build a new facility for electronic components that will create 6,000 new jobs, a senior state government source with direct knowledge said. Foxconn's FII makes electronic devices, cloud service equipment and industrial robots.
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The facility will be separate from the current sprawling campus near Chennai where Foxconn assembles Apple's AAPL.O iPhones and employs more than 35,000 people, the source said. By Munsif Vengattil and Praveen Paramasivam CHENNAI, July 31 (Reuters) - A Foxconn 2317.TW unit will on Monday sign an agreement with India's Tamil Nadu state to build a new facility for electronic components that will create 6,000 new jobs, a senior state government source with direct knowledge said. The subsidiary, Foxconn Industrial Internet (FII) 601138.SS, plans to invest 16 billion Indian rupees ($194.45 million) to build a campus in Kancheepuram district, near the state's capital of Chennai, added the source, who was not authorised to speak publicly about the matter.
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The facility will be separate from the current sprawling campus near Chennai where Foxconn assembles Apple's AAPL.O iPhones and employs more than 35,000 people, the source said. The subsidiary, Foxconn Industrial Internet (FII) 601138.SS, plans to invest 16 billion Indian rupees ($194.45 million) to build a campus in Kancheepuram district, near the state's capital of Chennai, added the source, who was not authorised to speak publicly about the matter. The state government, which did not immediately respond to a request for comment, said on LinkedIn on Monday morning a "big announcement" was expected during the day that would mean Tamil Nadu would retain its "top position as India's Electronics Powerhouse."
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14634.0
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2023-07-30 00:00:00 UTC
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If You'd Invested $1,000 in Apple in 2000, This Is How Much You'd Have Today
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AAPL
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https://www.nasdaq.com/articles/if-youd-invested-%241000-in-apple-in-2000-this-is-how-much-youd-have-today
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nan
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nan
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Without a doubt, Apple (NASDAQ: AAPL) is one of the best businesses in the world. And even Warren Buffett recognizes this as Berkshire Hathaway currently has a stake in the tech giant worth $179 billion. Buffett initially bought shares of Apple in the first quarter of 2016.
But if you were smart enough to invest $1,000 in Apple stock at the start of the year 2000, you'd be sitting on a monster gain of 21,230%. This means that modest investment would be worth a whopping $213,000 today (as of July 27).
Let's take a closer look at the key product and service introductions that helped drive Apple to its current market capitalization of over $3 trillion, making it the most valuable company on the planet.
Image source: Statista.
A storied history of innovation
Apple wasn't always the flourishing company that we are all familiar with. In fact, it was actually struggling at the turn of the century, until the introduction of the iPod in 2001 put the business back on the map and made it a force to be reckoned with in the market for consumer electronics. The iPod had a wonderful run, lasting 21 years. Apple discontinued the music player last year.
Look at the chart above and you'll see Apple's history is full of game-changing hardware products. The iPhone, which some might consider the single greatest innovation in corporate history, is what catapulted the company to become dominant on a global stage. Since 2007, when the first iPhone was launched, Apple has made dozens of upgrades, all with incredible consumer demand. In fiscal 2022, the iPhone represented 52% of overall company revenue, so it remains the core contributor to Apple's success.
Besides the iPad, Watch, AirPods, and new MacBooks, the innovation engine continues humming along. Apple recently showcased its Vision Pro headset, potentially setting the foundation for making the company a formidable competitor in the AR (augmented reality) and VR (virtual reality) markets. There are also rumors swirling that Apple is working on an autonomous vehicle. If these more far-fetched ideas become hits like previous products, then Apple's market cap could be much higher than it is right now.
Moreover, Apple has done a wonderful job in recent years of growing its Services segment, which accounted for 20% of company sales last fiscal year. This division offers things like Pay, TV+, Music, and iCloud. The high-margin recurring revenue it produces is all the proof you need to understand how management is finding more ways each year to monetize its massive global user base.
Should you buy Apple right now?
Due to its size and impressive history of financial performance, investors are already familiar with Apple. Even in the last five years, the stock has risen 300%, crushing the broader Nasdaq Composite Index by a wide margin.
There are easy arguments to be made for why one would want to invest in Apple right now. For starters, the business has a top-notch balance sheet with $166 billion of cash, cash equivalents, and marketable securities. Plus, Apple consistently produces tons of free cash flow.
Then, there's the strong brand, which is bolstered by the popular products I discussed earlier. The company's focus on the Services segment only expands the ecosystem, while keeping users locked in. Apple's customer loyalty is also hard to understate.
But investors should be mindful of the current valuation. Apple stock trades at a price-to-earnings (P/E) ratio of 33 as of this writing, propelled by the share price rising 50% in 2023 alone. That valuation is significantly more expensive than Apple's trailing 10-year average P/E multiple of 20.
Plus, there's always the company's huge scale to think about. Apple generated nearly $400 billion in fiscal 2022 revenue. Wall Street analysts forecast just 5.7% annualized revenue growth over the next five fiscal years. Even a company with this kind of pedigree can only move the needle so much from year to year. After two-plus decades of blistering growth, investors should temper their expectations going forward.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 27, 2023
Neil Patel has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Without a doubt, Apple (NASDAQ: AAPL) is one of the best businesses in the world. Let's take a closer look at the key product and service introductions that helped drive Apple to its current market capitalization of over $3 trillion, making it the most valuable company on the planet. In fact, it was actually struggling at the turn of the century, until the introduction of the iPod in 2001 put the business back on the map and made it a force to be reckoned with in the market for consumer electronics.
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Without a doubt, Apple (NASDAQ: AAPL) is one of the best businesses in the world. 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 July 27, 2023 Neil Patel has positions in Berkshire Hathaway.
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Without a doubt, Apple (NASDAQ: AAPL) is one of the best businesses in the world. But if you were smart enough to invest $1,000 in Apple stock at the start of the year 2000, you'd be sitting on a monster gain of 21,230%. Moreover, Apple has done a wonderful job in recent years of growing its Services segment, which accounted for 20% of company sales last fiscal year.
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Without a doubt, Apple (NASDAQ: AAPL) is one of the best businesses in the world. Moreover, Apple has done a wonderful job in recent years of growing its Services segment, which accounted for 20% of company sales last fiscal year. But investors should be mindful of the current valuation.
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14635.0
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2023-07-30 00:00:00 UTC
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Earnings, PMI and Other Can't Miss Items this Week
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AAPL
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https://www.nasdaq.com/articles/earnings-pmi-and-other-cant-miss-items-this-week
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nan
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nan
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What a week to trade and invest. With the FED raising 25 bps as expected the market reacted with the usual volatility. The S&P 500 ($SPX) (SPY) whipped around on Wednesday afternoon and gapped up Thursday only to end the day down. Even with all that excitement it finished up 1.05% on the week.
In addition, there were a lot of high impact earning reports. There were a lot of top and bottom-line beats last week, but accompanying many of the calls was a revision down in future guidance. This led to more than a few stocks beating earnings but trading lower in the next session or two. This is something that could be very tradable in the remainder of the earnings reports. This week we have more earnings and more news on the horizon, so let's jump in and take a look at 5 things to watch in the markets this week.
Earnings
We once again have a smattering of earnings this coming week. Some of the bigger names include Merck (MRK), Advanced Micro (AMD), and Caterpillar (CAT) report on Tuesday. Paypal (PYPL), and CVS (CVS) are Wednesday, and the giants Apple (AAPL) and Amazon (AMZN) are Thursday. While all earnings are important to their respective holders, Amazon and Apple are pretty heavily weighted in the indexes so a miss or beat could have an outsized effect.
ISM Manufacturing PMI
This is a diffusion survey of purchasing managers and is often used as a leading indicator for economic health. There has been a pretty consistent contraction in the manufacturing industry for the previous 6 releases. While the US has a large amount of service-based businesses, a strong manufacturing sector often leads to more sustained economic improvement. If this comes in as a beat, it could be a sign that the FED still has some additional tightening to do before the economy meaningfully contracts. If this comes in lower or at estimates (46.9), then it could signal to the FED that the economy is contracting, and they can stop the right hikes.
JOLTS Job Openings
Another large talking point with the FED is often the “Robust Jobs Market”. They quote this is a reason that they need to tighten further. When openings are greater than searchers it's often described as a workers market. This would mean a worker has more leverage when changing jobs to get added pay or benefits because there is a lot of opportunity for them. If the Jobs market contracts thought it could point to a slowing economy which would be good in so far as the FED would begin to see a reason to start slowing rates. Due to this, it's possible that the market reacts positively if the JOLTS number is lower than expected. The opposite could also be the case, if the number comes out larger than estimated then the market could see some additional downside pressure and volatility.
OPEC Meetings
Tentatively set for Thursday is a joint meeting between OPEC and the JMMC to discuss energy markets, oil demand and supply, and possible cuts or additions to the oil supply. This is a closed meeting but there are reporters present for questions during the breaks as well as a formal announcement at the end of the meeting. If this has an impact on the market it will most likely be contained to the energy sector. This is still something that is worth watching as it could set the tone for oil prices in the near future.
Non-Farm Payrolls
Friday morning, before the market opens Non-Farm Payrolls, is reported by the BLS in the US. To some, this is the ultimate indicator of economic health because as the job market expands and contracts often so do spending habits. The last 6 releases have been mostly beats with the exception of the most recent report which was a miss. This could be important for the same reasons the JOLTS report is. If this shows additional contraction in the labor markets, it could be a reason for the Fed to start to wean off the rate hikes and move to either a pause or potential cuts.
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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Paypal (PYPL), and CVS (CVS) are Wednesday, and the giants Apple (AAPL) and Amazon (AMZN) are Thursday. While all earnings are important to their respective holders, Amazon and Apple are pretty heavily weighted in the indexes so a miss or beat could have an outsized effect. If this shows additional contraction in the labor markets, it could be a reason for the Fed to start to wean off the rate hikes and move to either a pause or potential cuts.
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Paypal (PYPL), and CVS (CVS) are Wednesday, and the giants Apple (AAPL) and Amazon (AMZN) are Thursday. This led to more than a few stocks beating earnings but trading lower in the next session or two. Due to this, it's possible that the market reacts positively if the JOLTS number is lower than expected.
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Paypal (PYPL), and CVS (CVS) are Wednesday, and the giants Apple (AAPL) and Amazon (AMZN) are Thursday. This week we have more earnings and more news on the horizon, so let's jump in and take a look at 5 things to watch in the markets this week. OPEC Meetings Tentatively set for Thursday is a joint meeting between OPEC and the JMMC to discuss energy markets, oil demand and supply, and possible cuts or additions to the oil supply.
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Paypal (PYPL), and CVS (CVS) are Wednesday, and the giants Apple (AAPL) and Amazon (AMZN) are Thursday. In addition, there were a lot of high impact earning reports. This week we have more earnings and more news on the horizon, so let's jump in and take a look at 5 things to watch in the markets this week.
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14636.0
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2023-07-30 00:00:00 UTC
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GLOBAL MARKETS-Asia shares up as China extends rally; Japanese yields a risk
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-up-as-china-extends-rally-japanese-yields-a-risk
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nan
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nan
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*
Asian stock markets : https://tmsnrt.rs/2zpUAr4
*
Nikkei up 1.8%, S&P futures flat after firm July
*
China factory survey steadies, services disappoint
*
Yen slips anew in wake of BOJ shift on bond yields
*
Raft of earnings this week include Amazon and Apple
By Wayne Cole
SYDNEY, July 31 (Reuters) - Asian shares looked to end
the month on a firm note on Monday in a week littered with major
economic releases, central bank meetings and earnings updates
from mega caps Amazon and Apple, though rising Japanese bond
yields posed a risk.
China surveys were mixed with factory activity just pipping
forecasts but services disappointing, though both merely
reinforced expectations that Beijing would have to launch larger
stimulus at some point.
Chinese blue chips <.CSI300> seemed unperturbed and added
1.6%, bringing gains for July to 5.6%.
MSCI's broadest index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> climbed 1.1%, having gained almost 6% so far in
July to reach a five-month high.
The initial impetus for markets was positive following
Friday's U.S. data showing an easing in wage costs and core
inflation, which fuelled hopes the Federal Reserve was done
tightening.
"The data surprises bolster confidence that global core
inflation - ex. China - will fall sharply and set the stage for
a developed market central bank policy pause and emerging market
easing even if growth remains firm," said Bruce Kasman, head of
economic research at JPMorgan.
Figures due this week include the U.S. ISM surveys on
manufacturing and services, the July payrolls report and
European inflation.
The Bank of England is widely expected to raise rates by at
least a quarter point, but markets are more divided on whether
the Reserve Bank of Australia will hike or stay on hold.
Almost 30% of the S&P 500 report results this week and so
far, earnings have been good enough to see the index extend its
rally to 10% since the start of June.
S&P 500 futures added another 0.1% on Monday,
bringing its gains for July to almost 3%, with Nasdaq futures
near flat.
Apple Inc and Amazon.com both report on
Thursday, while other well-known names with results due include
Western Digital Corp , Caterpillar Inc , Starbucks
Corp , and Advanced Micro Devices .
PARSING THE BOJ
Japan's Nikkei <.N225> rose 1.8% to re-take the 33,000 level
and nudge closer to its recent three-decade peak.
Investors are still pondering the implications of Friday's
shock decision by the Bank of Japan (BOJ) to lift the lid on
bond yields, in a step away from its ultra-easy policies.
Analysts at BofA estimate the BOJ's bond buying added $1.3
trillion to global liquidity in the past 18 months and provided
a low floor for global rates, so any sustained rise in Japanese
government bond yields could ripple though other bond markets.
Japanese 10-year yields climbed further to 0.6%
on Monday, still short of the new cap of 1.0%.
While the yen had initially rallied on the BOJ move, it soon
reversed course as investors still seemed happy to run carry
trades, or yen-funded positions in higher-yielding currencies.
"Friday's action might best be viewed as an attempt to head
off a fresh wave of yen-weakening carry trade activity, by at
least ceasing to resist pressure for 10-year yields to rise
above 0.5%," said Ray Attrill, head of FX strategy at National
Australia Bank.
"Friday's actions do, though, fail to provide a catalyst for
a secular reversal of yen weakness."
The yen was again under pressure on Monday as the dollar
pushed up to 141.55 yen , a long way from Friday's
brief low of 138.05.
The euro had also recovered from its initial pullback to
stand at 155.97 yen , while steadying at $1.1020
after some wild swings last week.
In commodities, gold was off a shade at $1,957 an ounce
, having gained around 2% for the month so far. [GOL/]
Oil prices took a breather, having for five weeks in a row
as production cuts by OPEC+ tightened supply. [O/R]
Brent was off 14 cents at $84.85 a barrel, while
U.S. crude eased 3 cents to $80.55.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Wayne Cole; Editing by Jamie Freed)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters
Messaging: wayne.cole.thomsonreuters.com@reuters.net))
((To read Reuters Markets and Finance news, click on
https://www.reuters.com/finance/markets
For the state of play of Asian stock markets please click on: <0#.INDEXA>))
Keywords: GLOBAL MARKETS/ (WRAPUP 2, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares looked to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields posed a risk. China surveys were mixed with factory activity just pipping forecasts but services disappointing, though both merely reinforced expectations that Beijing would have to launch larger stimulus at some point. The initial impetus for markets was positive following Friday's U.S. data showing an easing in wage costs and core inflation, which fuelled hopes the Federal Reserve was done tightening.
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* China factory survey steadies, services disappoint By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares looked to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields posed a risk. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Wayne Cole; Editing by Jamie Freed) ((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
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By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares looked to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields posed a risk. China - will fall sharply and set the stage for a developed market central bank policy pause and emerging market easing even if growth remains firm," said Bruce Kasman, head of economic research at JPMorgan. Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
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* Nikkei up 1.8%, S&P futures flat after firm July * Yen slips anew in wake of BOJ shift on bond yields By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares looked to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields posed a risk.
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14637.0
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2023-07-30 00:00:00 UTC
|
GLOBAL MARKETS-Asia shares extend gains; wary eye on Japan yields
|
AAPL
|
https://www.nasdaq.com/articles/global-markets-asia-shares-extend-gains-wary-eye-on-japan-yields
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nan
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nan
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*
Asian stock markets : https://tmsnrt.rs/2zpUAr4
*
Nikkei up 1%, S&P futures firm after upbeat July
*
Raft of earnings this week include Amazon and Apple
*
Yen volatile in wake of BOJ shift on bond yields
By Wayne Cole
SYDNEY, July 31 (Reuters) - Asian shares looked to end
the month on a firm note on Monday in a week littered with major
economic releases, central bank meetings and earnings updates
from mega caps Amazon and Apple, though rising Japanese bond
yields were a risk.
The early impetus for shares was positive following Friday's
U.S. data showing an easing in wage costs and core inflation,
which fuelled hopes the Federal Reserve was done tightening.
"The data surprises bolster confidence that global core
inflation - ex. China - will fall sharply and set the stage for
a developed market central bank policy pause and emerging market
easing even if growth remains firm," said Bruce Kasman, head of
economic research at JPMorgan.
Figures due this week include the U.S. ISM surveys on
manufacturing and services, the July payrolls report and
European inflation. China factory surveys are due later on
Monday.
The Bank of England is widely expected to raise rates by at
least a quarter point, but markets are more divided on whether
the Reserve Bank of Australia will hike or stay on hold.
Almost 30% of the S&P 500 report results this week and, so
far, earnings have been good enough to see the index extend its
rally to 10% since the start of June.
S&P 500 futures added another 0.1% on Monday,
bringing its gains for July to almost 3%, with Nasdaq futures
up 0.2%.
Apple Inc and Amazon.com both report on
Thursday, while other well-known names with results due include
Western Digital Corp , Caterpillar Inc , Starbucks
Corp , and Advanced Micro Devices .
Asian markets have also been trending higher, with China's
benchmark index <.CSI300> enjoying a 4.5% jump last week on
hopes for more stimulus from Beijing.
Early on Monday, MSCI's broadest index of Asia-Pacific
shares outside Japan <.MIAPJ0000PUS> edged up 0.1%, having
gained 4.9% so far in July to reach a five-month high.
PARSING THE BOJ
Japan's Nikkei <.N225> rose 1.0% to re-take the 33,000 level
and nudge closer to its recent three-decade peak.
Investors are still pondering the implications of Friday's
shock decision by the Bank of Japan (BOJ) to lift the lid on
bond yields, in a step away from its ultra-easy policies.
Analysts at BofA estimate the BOJ's bond buying added $1.3
trillion to global liquidity in the past 18 months and provided
a low floor for global rates, so any sustained rise in Japanese
government bond yields could ripple though other bond markets.
Japanese 10-year yields climbed further to 0.6%
on Monday, still short of the new cap of 1.0% and limiting the
boost to the yen. While the yen initially rallied on the BOJ
move, it soon reversed course, and the dollar climbed from
138.05 yen to as high as 141.18 late on Friday.
On Monday, the dollar was off slightly at 140.78 yen
, with investors still seeming happy to run carry
trades, or yen-funded positions in higher-yielding currencies.
"Friday's action might best be viewed as an attempt to head
off a fresh wave of yen-weakening carry trade activity, by at
least ceasing to resist pressure for 10-year yields to rise
above 0.5%," said Ray Attrill, head of FX strategy at National
Australia Bank.
"Friday's actions do, though, fail to provide a catalyst for
a secular reversal of yen weakness."
The euro had also recovered from its initial pullback to
stand at 155.17 yen , while steadying at $1.1026
after some wild swings last week.
In commodities, gold was steady at $1,957 an ounce ,
having gained around 2% for the month so far. [GOL/]
Oil prices have climbed for five weeks in a row as
production cuts by OPEC+ tightened supply. [O/R]
Brent was off 9 cents on Monday at $84.90 a barrel,
while U.S. crude eased 6 cents to $80.52.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Wayne Cole; Editing by Jamie Freed)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters
Messaging: wayne.cole.thomsonreuters.com@reuters.net))
((To read Reuters Markets and Finance news, click on
https://www.reuters.com/finance/markets
For the state of play of Asian stock markets please click on: <0#.INDEXA>))
Keywords: GLOBAL MARKETS/ (WRAPUP 1, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares looked to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields were a risk. The early impetus for shares was positive following Friday's U.S. data showing an easing in wage costs and core inflation, which fuelled hopes the Federal Reserve was done tightening. Investors are still pondering the implications of Friday's shock decision by the Bank of Japan (BOJ) to lift the lid on bond yields, in a step away from its ultra-easy policies.
|
By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares looked to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields were a risk. While the yen initially rallied on the BOJ move, it soon reversed course, and the dollar climbed from 138.05 yen to as high as 141.18 late on Friday. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Wayne Cole; Editing by Jamie Freed) ((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
|
By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares looked to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields were a risk. China - will fall sharply and set the stage for a developed market central bank policy pause and emerging market easing even if growth remains firm," said Bruce Kasman, head of economic research at JPMorgan. Analysts at BofA estimate the BOJ's bond buying added $1.3 trillion to global liquidity in the past 18 months and provided a low floor for global rates, so any sustained rise in Japanese government bond yields could ripple though other bond markets.
|
* Nikkei up 1%, S&P futures firm after upbeat July By Wayne Cole SYDNEY, July 31 (Reuters) - Asian shares looked to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields were a risk. While the yen initially rallied on the BOJ move, it soon reversed course, and the dollar climbed from 138.05 yen to as high as 141.18 late on Friday.
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14638.0
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2023-07-30 00:00:00 UTC
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Top Stocks To Buy Now? 3 Tech Stocks For Your List
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AAPL
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https://www.nasdaq.com/articles/top-stocks-to-buy-now-3-tech-stocks-for-your-list
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nan
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nan
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The technology sector stands as an emblem of innovation and progress, driving the wheel of modern-day economic growth. It encompasses a vast range of industries. This includes software services, and semiconductor manufacturing, to the burgeoning fields of artificial intelligence, machine learning, and quantum computing. It is an industry that encapsulates our contemporary zeitgeist, where the latest developments in smartphones, cloud computing, or social media platforms play pivotal roles in transforming how we communicate, conduct business, and even how we lead our daily lives.
As for tech stocks, they represent the equity shares of these technology companies listed on the stock exchanges. Historically, tech stocks have been associated with high growth and correspondingly high risk. They’ve produced some of the world’s most prominent companies, such as Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN) offering investors significant returns. However, the volatility of the tech sector also means that it can experience steep downturns. Therefore, investing in tech stocks requires a careful analysis of market trends, company fundamentals, and a risk appetite that aligns with the sector’s inherent unpredictability. Having said that, here are three trending tech stocks to watch in the stock market this week.
Tech Stocks To Watch Right Now
Microsoft Corporation (NASDAQ: MSFT)
Alphabet Inc. (NASDAQ: GOOGL)
NVIDIA Corporation (NASDAQ: NVDA)
Microsoft (MSFT Stock)
Leading off. Microsoft Corporation (MSFT) is a leading global technology company offering a range of software products, services, and devices. Notably, Microsoft’s portfolio includes the widely used Windows operating system, the Office suite of productivity software, and the Azure cloud computing platform.
Last week, Microsoft reported its fourth-quarter 2023 financial results. In detail, the tech giant announced earnings of $2.69 per share on revenue totaling $56.19 billion, exceeding the consensus earnings estimate of $2.54 per share on revenue of $55.44 billion. This result represents year-over-year revenue growth of 8.34%.
Over the last six months of trading, shares of MSFT stock are up 36.54%. Meanwhile, as of this past Friday’s trading session, Microsoft stock closed the day up 2.31% at $338.37 a share.
Source: TD Ameritrade TOS
[Read More] What Stocks To Buy Today? 2 Dow Jones Industrial Average Stocks To Watch
Alphabet (GOOGL Stock)
Next, Alphabet Inc. (GOOGL) is the parent company of Google, the world’s most popular search engine. The company has a diverse portfolio of successful businesses. In addition to its core search and advertising operations, Alphabet is involved in various other sectors like cloud computing Google Cloud, and video sharing platform YouTube.
Also last week, Alphabet announced its second-quarter of 2023 earnings results. Diving in, the internet behemoth reported earnings of $1.44 per share on revenue of $74.60 billion for the quarter ended in June 2023. This exceeded the consensus earnings estimate of $1.32 per share on revenue of $72.77 billion. This marks a year-over-year revenue growth of 7.06%.
Moreover, these past six months, shares of Alphabet stock have advanced by 34.14%. With that, as of this past Friday, shares of GOOGL stock closed the day up 2.46% at $132.58 a share.
Source: TD Ameritrade TOS
[Read More] 3 Telecom Stocks To Watch In Mid-July 2023
NVIDIA (NVDA Stock)
Lastly, NVIDIA Corporation (NVDA) is a leading designer and manufacturer of graphics processing units (GPUs). The company has become a critical player in the era of artificial intelligence. NVIDIA’s GPUs are used in a variety of applications, from gaming to professional visualization to data centers.
Back in May, NVIDIA released its financial results for the fiscal first quarter FY24. Getting straight to it, NVIDIA reported earnings of $1.18 per share, which were significantly above the consensus earnings estimate of $0.91 per share. In terms of revenue, the company posted $7.19 billion, a figure that surpassed the projected $6.52 billion. It is worth noting, however, that despite exceeding expectations, the company’s revenue was 13.22% lower than that of the same quarter in the previous year.
Looking at the past six months of trading, shares of NVDA stock have risen by 139.29%. Meanwhile, as of this past Friday’s trading session, NVIDIA stock finished the trading day up 1.85% at $467.50 a share.
Source: TD Ameritrade TOS
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel.
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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.
|
They’ve produced some of the world’s most prominent companies, such as Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN) offering investors significant returns. It is an industry that encapsulates our contemporary zeitgeist, where the latest developments in smartphones, cloud computing, or social media platforms play pivotal roles in transforming how we communicate, conduct business, and even how we lead our daily lives. Therefore, investing in tech stocks requires a careful analysis of market trends, company fundamentals, and a risk appetite that aligns with the sector’s inherent unpredictability.
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They’ve produced some of the world’s most prominent companies, such as Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN) offering investors significant returns. Tech Stocks To Watch Right Now Microsoft Corporation (NASDAQ: MSFT) Alphabet Inc. (NASDAQ: GOOGL) NVIDIA Corporation (NASDAQ: NVDA) Microsoft (MSFT Stock) Leading off. Microsoft Corporation (MSFT) is a leading global technology company offering a range of software products, services, and devices.
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They’ve produced some of the world’s most prominent companies, such as Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN) offering investors significant returns. Tech Stocks To Watch Right Now Microsoft Corporation (NASDAQ: MSFT) Alphabet Inc. (NASDAQ: GOOGL) NVIDIA Corporation (NASDAQ: NVDA) Microsoft (MSFT Stock) Leading off. In detail, the tech giant announced earnings of $2.69 per share on revenue totaling $56.19 billion, exceeding the consensus earnings estimate of $2.54 per share on revenue of $55.44 billion.
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They’ve produced some of the world’s most prominent companies, such as Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN) offering investors significant returns. Tech Stocks To Watch Right Now Microsoft Corporation (NASDAQ: MSFT) Alphabet Inc. (NASDAQ: GOOGL) NVIDIA Corporation (NASDAQ: NVDA) Microsoft (MSFT Stock) Leading off. Notably, Microsoft’s portfolio includes the widely used Windows operating system, the Office suite of productivity software, and the Azure cloud computing platform.
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14639.0
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2023-07-30 00:00:00 UTC
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MORNING BID ASIA-Asian markets face tough act to follow
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AAPL
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https://www.nasdaq.com/articles/morning-bid-asia-asian-markets-face-tough-act-to-follow
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nan
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nan
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NEW YORK, July 31 (Reuters) - A look at the day ahead in Asian markets from Stephen Culp, financial markets columnist.
Goodbye, July.
Asian stocks could be in for a bumpy start to the week if they expect to outdo robust gains enjoyed the week prior, under the power of potential stimulus in China, Japan's biggest-ever minimum wage hike and the flickering optimism that the global economy might avoid recession.
Chinese stocks face the challenge of topping last week's 4.5% gain in the CSI 300 .CSI300, the index's biggest weekly jump since November.
The week also saw the Hang Seng .HSI and the Nikkei 225 .N225 gaining 4.4% and 1.4%, respectively, while MSCI's index of Asia Pacific shares outside of Japan .MIAPJ0000PUS advanced 2.5%.
Markets were rocked at the tail-end of the week when the Bank of Japan took its first step away from its decades-long monetary stimulus policy, allowing interest rates more freedom to move in harmony with inflation and economic growth.
The move coincided with a decision to implement Japan's biggest minimum wage hike in history in an effort to jolt the world's third largest economy out of the doldrums.
Market participants are also scrutinizing the other side of the Sea of Japan for signs of life in the Chinese economy.
On July 24, Beijing pledged to adjust its policies to jump-start the nation's lackluster post-COVID recovery, a move which helped solidify the yuan's near two-week high against the dollar, sent the CSI 300 leaping nearly 3% and the HSI surging 4.1%.
In the coming week in the United States, second-quarter earnings season gallops along, and a spate of high profile results in the coming days are expected to shed additional light on the global demand picture, particularly as it relates to China.
Megacaps Apple Inc AAPL.O and Amazon.com AMZN.O, along with chipmaker Western Digital Corp WDC.O, construction and mining equipment manufacturer Caterpillar Inc CAT.N, globally ubiquitous coffee chain Starbucks Corp SBUX.O, and wireless tech firm Qualcomm Inc QCOM.O are all on deck.
Earnings from Marriott International MAR.O, MGM Resorts International MGM.N and Host Hotels & Resorts HST.O will help illuminate the state of global travel and tourism demand.
Potentially market-moving U.S. indicators next week include manufacturing and services PMI. Beyond that, job openings, private payrolls, jobless claims and planned layoffs will set the stage for the closely watched July employment report on Friday.
Here are key developments that could provide more direction to markets on Monday:
- China's Caixin manufacturing PMI expected
- Japan to unveil consumer confidence, housing starts and unemployment data for June
- Australia due to release July manufacturing PMI, June building approvals
- South Korea on deck with July import/export growth report
The race to raise rates https://tmsnrt.rs/3Oaq21N
Asian stock market performance https://tmsnrt.rs/3YdZxNh
(Reporting by Stephen Culp; editing by Diane Craft)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacaps Apple Inc AAPL.O and Amazon.com AMZN.O, along with chipmaker Western Digital Corp WDC.O, construction and mining equipment manufacturer Caterpillar Inc CAT.N, globally ubiquitous coffee chain Starbucks Corp SBUX.O, and wireless tech firm Qualcomm Inc QCOM.O are all on deck. Markets were rocked at the tail-end of the week when the Bank of Japan took its first step away from its decades-long monetary stimulus policy, allowing interest rates more freedom to move in harmony with inflation and economic growth. On July 24, Beijing pledged to adjust its policies to jump-start the nation's lackluster post-COVID recovery, a move which helped solidify the yuan's near two-week high against the dollar, sent the CSI 300 leaping nearly 3% and the HSI surging 4.1%.
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Megacaps Apple Inc AAPL.O and Amazon.com AMZN.O, along with chipmaker Western Digital Corp WDC.O, construction and mining equipment manufacturer Caterpillar Inc CAT.N, globally ubiquitous coffee chain Starbucks Corp SBUX.O, and wireless tech firm Qualcomm Inc QCOM.O are all on deck. Asian stocks could be in for a bumpy start to the week if they expect to outdo robust gains enjoyed the week prior, under the power of potential stimulus in China, Japan's biggest-ever minimum wage hike and the flickering optimism that the global economy might avoid recession. The move coincided with a decision to implement Japan's biggest minimum wage hike in history in an effort to jolt the world's third largest economy out of the doldrums.
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Megacaps Apple Inc AAPL.O and Amazon.com AMZN.O, along with chipmaker Western Digital Corp WDC.O, construction and mining equipment manufacturer Caterpillar Inc CAT.N, globally ubiquitous coffee chain Starbucks Corp SBUX.O, and wireless tech firm Qualcomm Inc QCOM.O are all on deck. Asian stocks could be in for a bumpy start to the week if they expect to outdo robust gains enjoyed the week prior, under the power of potential stimulus in China, Japan's biggest-ever minimum wage hike and the flickering optimism that the global economy might avoid recession. In the coming week in the United States, second-quarter earnings season gallops along, and a spate of high profile results in the coming days are expected to shed additional light on the global demand picture, particularly as it relates to China.
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Megacaps Apple Inc AAPL.O and Amazon.com AMZN.O, along with chipmaker Western Digital Corp WDC.O, construction and mining equipment manufacturer Caterpillar Inc CAT.N, globally ubiquitous coffee chain Starbucks Corp SBUX.O, and wireless tech firm Qualcomm Inc QCOM.O are all on deck. Asian stocks could be in for a bumpy start to the week if they expect to outdo robust gains enjoyed the week prior, under the power of potential stimulus in China, Japan's biggest-ever minimum wage hike and the flickering optimism that the global economy might avoid recession. Chinese stocks face the challenge of topping last week's 4.5% gain in the CSI 300 .CSI300, the index's biggest weekly jump since November.
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2023-07-30 00:00:00 UTC
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Wall St Week Ahead-Hopes of 'Goldilocks' economy, rate peak buoy US stocks
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-hopes-of-goldilocks-economy-rate-peak-buoy-us-stocks-0
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(Repeats July 28 story with no changes to text)
By David Randall
NEW YORK, July 28 (Reuters) - A resilient U.S. economy and expectations of a nearing peak in the Federal Reserve’s monetary policy tightening cycle are emboldening stock investors, even as worries persist over rising valuations and the potential for inflation to rebound.
The S&P 500 is up nearly 19% this year after gaining around 1% in the past week. It has risen nearly 10 percentage points since June 1, over which time the U.S. government avoided a debt ceiling default and consumer prices cooled, while growth stayed resilient.
One key factor driving stocks higher has been the view that the economy is moving towards a so-called Goldilocks scenario of ebbing consumer prices and strong growth that many believe is a healthy backdrop for stocks.
That view gained further traction in the past week, when Chair Jerome Powell said the central bank's staff
no longer forecasts
a U.S. recession and that inflation had a shot of returning to its 2% target without high levels of job losses.
Policymakers raised rates by another 25 basis points to their highest level since 2007 at the central bank's July 26 meeting and left the door open to another increase in September.
"The market has fully accepted the narrative that it wanted, which is Goldilocks. Until we see some set of data that scares them it's hard to see how that changes," said Bob Kalman, senior portfolio manager at Miramar Capital.
At the same time, investors believe the Fed is unlikely to deliver much more of the monetary policy tightening that shook markets last year. Futures markets on Friday priced a nearly 73% chance that rates don’t rise above current levels through the end of the year, according to CME’s FedWatch tool, up from 24% a month ago.
A test of the economy comes next week, when the U.S. reports employment numbers for July. While comparatively strong employment data has been a driver of this year’s stock rally, signs that the economy is growing at too rapid a pace could spark worries that the Fed will need to raise rates more than expected.
"For markets to continue to trade higher, the soft landing must be a soft landing, not a reacceleration, because if housing and consumer spending accelerate from here, the Fed will have to raise rates a lot more," wrote Torsten Slok, chief economist at Apollo Global Management.
Kalman, of Miramar Capital, believes there’s a growing chance the Fed may need to raise rates beyond their current 5.50% threshold and hold them there for longer than expected, an outcome he worries could dampen the economy and hurt risk assets.
"It's a 50-50 chance that we'll get Goldilocks or we'll get a stronger downturn," he said.
Many are also assessing the durability of a rally in tech stocks, which has been fueled in part by excitement over developments in artificial intelligence. The tech-heavy Nasdaq 100 is up nearly 44% year-to-date, while the S&P 500 information technology sector has gained nearly 46%.
Optimistic forecasts from Meta Platforms and results from Alphabet earlier this week bolstered the case for those who believe megacaps’ lofty valuations are justified. Some smaller companies have delivered as well, with shares of streaming device maker Roku Inc soaring on Friday after it gave an upbeat quarterly revenue forecast.
Still, some investors have been looking outside of tech stocks for further gains, wary of rising valuations. The S&P 500 tech sector now trades at 28.2 times forward earnings, from 19.6 at the start of the year.
Burns McKinney, senior portfolio manager at NJF Investment Group, owns shares of Apple and Microsoft but has been adding to dividend-paying positions in healthcare, financials, and energy in anticipation that megacap names start to falter.
For megacap stocks, "the risk-reward is not as good as it was a quarter ago," he said.
Others believe the rally in equities is due for a pause. Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research, said he wouldn't be surprised to see the S&P 500 fall 5% or more in the next month or two as investors take profits on recent gains.
Yet he also believes stocks are in the "early stages" of their recovery after falling into a bear market last year.
"There’s always a concern with too much optimism, but longer term a sort of consolidation here speaks to a positive market going out," he said. (Reporting by David Randall; Editing by Ira Iosebashvili and Deepa Babington) ((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net)) ((Wall St Week Ahead runs every Friday. For thedaily stock marketreport, please click [.N])) Keywords: USA STOCKS/WEEKAHEAD (REPEAT, SCHEDULED COLUMN)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That view gained further traction in the past week, when Chair Jerome Powell said the central bank's staff no longer forecasts a U.S. recession and that inflation had a shot of returning to its 2% target without high levels of job losses. Kalman, of Miramar Capital, believes there’s a growing chance the Fed may need to raise rates beyond their current 5.50% threshold and hold them there for longer than expected, an outcome he worries could dampen the economy and hurt risk assets. Burns McKinney, senior portfolio manager at NJF Investment Group, owns shares of Apple and Microsoft but has been adding to dividend-paying positions in healthcare, financials, and energy in anticipation that megacap names start to falter.
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(Repeats July 28 story with no changes to text) By David Randall NEW YORK, July 28 (Reuters) - A resilient U.S. economy and expectations of a nearing peak in the Federal Reserve’s monetary policy tightening cycle are emboldening stock investors, even as worries persist over rising valuations and the potential for inflation to rebound. Until we see some set of data that scares them it's hard to see how that changes," said Bob Kalman, senior portfolio manager at Miramar Capital. Kalman, of Miramar Capital, believes there’s a growing chance the Fed may need to raise rates beyond their current 5.50% threshold and hold them there for longer than expected, an outcome he worries could dampen the economy and hurt risk assets.
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(Repeats July 28 story with no changes to text) By David Randall NEW YORK, July 28 (Reuters) - A resilient U.S. economy and expectations of a nearing peak in the Federal Reserve’s monetary policy tightening cycle are emboldening stock investors, even as worries persist over rising valuations and the potential for inflation to rebound. One key factor driving stocks higher has been the view that the economy is moving towards a so-called Goldilocks scenario of ebbing consumer prices and strong growth that many believe is a healthy backdrop for stocks. While comparatively strong employment data has been a driver of this year’s stock rally, signs that the economy is growing at too rapid a pace could spark worries that the Fed will need to raise rates more than expected.
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(Repeats July 28 story with no changes to text) By David Randall NEW YORK, July 28 (Reuters) - A resilient U.S. economy and expectations of a nearing peak in the Federal Reserve’s monetary policy tightening cycle are emboldening stock investors, even as worries persist over rising valuations and the potential for inflation to rebound. The S&P 500 is up nearly 19% this year after gaining around 1% in the past week. Still, some investors have been looking outside of tech stocks for further gains, wary of rising valuations.
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2023-07-30 00:00:00 UTC
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7 Dow Stocks to Buy as Recession Fears Roll Back
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https://www.nasdaq.com/articles/7-dow-stocks-to-buy-as-recession-fears-roll-back
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the Dow Jones soaring on fading recession fears, its holdings are also becoming far more attractive, too. In fact, here are seven of the top Dow stocks to buy immediately.
Dow Stocks to Buy: Merck (MRK)
Source: shutterstock.com/CC7
From a pure potential perspective, Merck (NYSE:MRK) stock offers a lot to investors. Past returns might not be an absolute indicator of future performance. However, they tend to be a reasonable indicator given that strong firms usually tend to continue to do well. Merck is particularly attractive for that reason. Over the past 10 years, its stock has returned 13.02% annually. That’s roughly 149% better than the average stock during the same period.
Further, Merck continues to offer upside currently. Wall Street analysts believe there’s about 20% upside in MRK hares beyond their current price. Not convinced yet? Well, it also includes a dividend that hasn’t been reduced since 1985 that adds an additional 2.75% return to its shares.
Revenues have slowed slightly of late at the firm. However, Merck has grown faster than every other large-cap pharmaceutical firm in the U.S. over the past 3 years with the exception of Pfizer (NYSE:PFE). Strip out Pfizer’s extraordinary Covid-19 windfall and Marck may have been the outright leader.
Dow Stocks to Buy: Apple (AAPL)
Source: Zurijeta / Shutterstock.com
Apple (NASDAQ:AAPL) has contributed heavily to the 2023 turnaround in markets. Better, investors expect Apple shares to hold value due to the ubiquity of its products and an expectation it will continue to thrive.
That notion is primarily related to the continued strength of iPhone sales. Apple sold $51.33 billion worth of iPhones during the most recent quarter. That was a record for the company and is part of the reason Apple shares continue to surge even as overall revenues continue to sag. The explanation is simple: Investors understand that Apple has figured out how to create and market products that have such mass appeal that quarterly fluctuations are hardly a concern.
The company can find revenues elsewhere in the short term as it is doing with services. However, the real reason to buy in now is that Apple is on the cusp of its first new product release in a decade with Apple Vision Pro and new markets for legacy products, particularly India.
Dow Stocks to Buy: JPMorgan (JPM)
Source: Freedom365day / Shutterstock.com
JPMorgan (NYSE:JPM) stock continues to look better and better in the aftermath of the banking crisis. It is now old news that JPMorgan took over First Republic, acting as an anchor to the U.S. banking system.
However, that notion is worth examining again because it means JPMorgan has extended its dominant position in the U.S. banking sector. And when big firms get bigger that’s generally a reasonable time to consider investing. JPMorgan is certainly bigger now than it was a year ago so it is the tie to invest. Revenues increased by 34%, reaching $41.3 billion. The bank was able to derive $14.47 billion in net income from that which represented a 67% increase year-over-year.
The company gained First Republic’s wealth banking business from the takeover. That will allow the company to cater better to wealthy coastal clientele. Meanwhile, JPMorgan is currently also benefiting from surging interest income as it lends more through credit cards to cash-strapped Americans unwilling or unable to cut back on spending.
Honeywell (HON)
Source: Chompoo Suriyo / Shutterstock.com
Honeywell (NYSE:HON) is perhaps not the most exciting stock on this list but it does offer investors a reasonable amount of upside potential over the next few years. The firm serves a wide swath of the economy and firms through industrial software.
There’s a lot of potential in that area for the company especially given that Honeywell is deeply connected to the building technologies sector. The opportunity to drive revenues from the emerging IoT opportunity gives Honeywell strong future prospects and growth paths.
However, Honeywell hasn’t been growing much lately. Its 3-year 1.1% revenue growth rate of 1.1% is worse than average for its sector. Honeywell is expected to grow faster than that this year and next. That should correlate to increasing share prices as markets will appreciate the growth and Honeywell’s IoT potential. Investors can also expect rising earnings as top-line results improve in 2023 and through 2024. It is a solid stock worth owning over that period.
Nike (NKE)
Source: ImageFlow/Shutterstock.com
The bull case for investing in Nike (NYSE:NKE) stock is fairly straightforward right now. For those who believe that the brand’s power matters, there’s a lot of upside in initiating a position at this moment.
Nike is the largest sports brand by market capitalization. It is far ahead of the next closest competitor and even farther ahead of Adidas, the nearest shoe seller. That ranking does not look to be changing any time soon and that suggests that as Nike works through its current problems it will emerge more valuable on the other side due to its position.
Nike products continue to sell well with sales increasing by 8% during the most recent quarter. However, the firm has been impacted by a combination of higher costs and markdowns that sent net income falling by 28% during the same timeframe.
It should be as simple as that for investors: If you believe Nike is capable of working through the kinks and ironing out its operations it’s a great time to buy given that sales continue to grow.
Microsoft (MSFT)
Source: AdityaB. Photography/ShutterStock.com
The outlook for an already strong Microsoft (NASDAQ:MSFT) stock is getting stronger. Microsoft has done extraordinarily well in 2023 due primarily to AI. The company invested heavily in to ChatGPT and emerged as the clear leader when generative AI exploded earlier this year.
At that time, Microsoft’s outlook improved because the integration of AI into its products expanded its overall market. That wasn’t the end, though. More recently, Microsoft announced aggressive pricing for some of its AI products. The announcement leads to the possibility of even higher revenues than previously expected making MSFT shares even more attractive.
It’s difficult to ignore Microsft, frankly. It has Microsft 365 office products, Azure cloud, a large stake in OpenAI, and a track record of winning for such a long time that it almost gets ignored when it continues to win. On top of that, Microsoft gets to merge with Activision Blizzard (NASDAQ:ATVI) improving its gaming industry standing and carving a deeper path for dominance in that burgeoning sector.
Cisco (CSCO)
Source: Wright Studio/Shutterstock.com
I believe Cisco (NASDAQ:CSCO) stock should appeal to a certain type of tech investor currently. The company focuses on networking and things like internet protocol products and services. It is a leader in its sector but isn’t considered among the tech giants by any means. That’s where I want to start regarding Cisco as an opportunity.
At some point, tech investors will diversify away from the magnificent 7 and into less volatile tech. With a beta of 0.99, Cisco is among the least volatile tech stocks available. It’s a safer bet on tech growth and one that investors worried about ongoing concentration in the tech sector might consider. If you want to diversify out of those mega names, Cisco is a reasonable choice.
It will likely grow by 10% this year. That’s not bad at all. It isn’t Nvidia (NASDAQ:NVDA) style explosive growth but the flipside is that Cisco offers a dividend yielding 3.04% currently. That’s quite high within the tech sector and serves to make Cisco’s returns significantly higher overall.
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 7 Dow Stocks to Buy as Recession Fears Roll Back 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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Dow Stocks to Buy: Apple (AAPL) Source: Zurijeta / Shutterstock.com Apple (NASDAQ:AAPL) has contributed heavily to the 2023 turnaround in markets. Meanwhile, JPMorgan is currently also benefiting from surging interest income as it lends more through credit cards to cash-strapped Americans unwilling or unable to cut back on spending. On top of that, Microsoft gets to merge with Activision Blizzard (NASDAQ:ATVI) improving its gaming industry standing and carving a deeper path for dominance in that burgeoning sector.
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Dow Stocks to Buy: Apple (AAPL) Source: Zurijeta / Shutterstock.com Apple (NASDAQ:AAPL) has contributed heavily to the 2023 turnaround in markets. Dow Stocks to Buy: Merck (MRK) Source: shutterstock.com/CC7 From a pure potential perspective, Merck (NYSE:MRK) stock offers a lot to investors. Dow Stocks to Buy: JPMorgan (JPM) Source: Freedom365day / Shutterstock.com JPMorgan (NYSE:JPM) stock continues to look better and better in the aftermath of the banking crisis.
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Dow Stocks to Buy: Apple (AAPL) Source: Zurijeta / Shutterstock.com Apple (NASDAQ:AAPL) has contributed heavily to the 2023 turnaround in markets. Dow Stocks to Buy: Merck (MRK) Source: shutterstock.com/CC7 From a pure potential perspective, Merck (NYSE:MRK) stock offers a lot to investors. Dow Stocks to Buy: JPMorgan (JPM) Source: Freedom365day / Shutterstock.com JPMorgan (NYSE:JPM) stock continues to look better and better in the aftermath of the banking crisis.
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Dow Stocks to Buy: Apple (AAPL) Source: Zurijeta / Shutterstock.com Apple (NASDAQ:AAPL) has contributed heavily to the 2023 turnaround in markets. Dow Stocks to Buy: Merck (MRK) Source: shutterstock.com/CC7 From a pure potential perspective, Merck (NYSE:MRK) stock offers a lot to investors. That was a record for the company and is part of the reason Apple shares continue to surge even as overall revenues continue to sag.
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2023-07-30 00:00:00 UTC
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3 Extraordinary Breakout Stocks You'll Regret Not Buying on the Dip
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https://www.nasdaq.com/articles/3-extraordinary-breakout-stocks-youll-regret-not-buying-on-the-dip
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Growth stocks have caught fire this year. Just compare the year-to-date performance of the Vanguard Value ETF and the Vanguard Growth ETF. The value ETF is up 5%, but the growth ETF has soared by 36%.
Now that so many growth stocks have already broken out, what names should investors keep in mind as they prepare for the next bull market? These Motley Fool contributors have their sights set on three: Spotify (NYSE: SPOT), MercadoLibre (NASDAQ: MELI), and PayPal (NASDAQ: PYPL).
Image source: Getty Images.
Spotify could cast off its problems and skyrocket
Jake Lerch (Spotify): I'm going against the grain and picking Spotify as my breakout stock worth buying on the dip. Without a doubt, that dip is real: Shares recently tanked 14% after the company reported disappointing quarterly results and weak guidance.
There were, however, bright spots in that stinker of a quarter. First, Spotify continues to draw in new users at a breakneck pace. In Q2, total monthly active users (MAUs) jumped 27% to 551 million, premium subscribers increased 17% to 220 million, and ad-supported MAUs soared 34% to 343 million.
Granted, Spotify failed to do well at converting those new users into revenue. Total revenue increased by 11% to $3.2 billion, and gross margin fell from 25.2% in the first quarter to 24.1% in the second.
Yet for investors willing to play the long game, I see an opportunity. It's clear that Spotify is a massive platform that its users love. Hundreds of millions are willing to pay for subscriptions. Nevertheless, the current management team is struggling to capitalize on its appeal.
However, Spotify is cutting costs and hiking prices. That should help increase its gross margins and set the company on a path to profitability. For investors willing to hold the stock through volatility, Spotify looks like a name to buy on the dip.
PayPal's market-beating run could be just beginning
Justin Pope (PayPal Holdings): Fintech company PayPal Holdings has been a brutal hold for shareholders over the past five years, but its fortunes could soon change. The stock has outperformed the Nasdaq Composite since June 1, and its rally seems ready to pick up steam.
PayPal was one of the first digital payments companies and built its business on online payments. Today, more than 430 million people worldwide move money on its network. That's more than $1.2 trillion in annual payment volume and $28 billion in revenue from the fees PayPal charges.
So, why did the shares falter? Some may point to a ruthlessly competitive payments industry, where companies like Apple, Block, and Alphabet are battling for wallet share. The pandemic also boosted its growth when people by necessity were conducting more transactions online, creating a bulge of growth that PayPal has struggled to follow.
But the pendulum of market sentiment has seemingly swung too far. While PayPal's stock price is down relative to where it traded five years ago, the company's revenue has almost doubled in that time, and free cash flow has grown by nearly 50%.
PYPL Revenue (TTM) data by YCharts.
PayPal's future still looks bright, despite the fierce competition it faces. Analysts believe the company will grow its earnings per share by an average of almost 18% annually over the next three to five years. Shares trade at a forward price-to-earnings ratio of 15 and a price/earnings-to-growth ratio of less than 1. In other words, the stock is a bargain based on its expected earnings growth.
The company reports second-quarter earnings on Aug. 2. Strong operating results could turn PayPal from one of the market's most interesting value ideas to a big-time winner in the year's second half.
Synergies are driving growth for the Latin American e-commerce leader
Will Healy (MercadoLibre): At first glance, one might assume MercadoLibre's (NASDAQ: MELI) share price has already hit its "breakthrough." The stock has risen by more than 4,000% since its 2007 initial public offering, and the company has built a leadership position in Latin American e-commerce and fintech while also prospering in other areas.
MELI data by YCharts.
Despite that progress, the growth story for this internet and direct marketing retail company is not showing signs of significant slowing. In the first quarter, MercadoLibre reported $3 billion in net revenue, a 35% increase from the same quarter last year.
That's only a tiny fraction of the $106 billion in e-commerce revenue reported by Amazon, indicating that MercadoLibre has more growth ahead. Also, due to its investments in Latin America, it continues to fend off competition in the region from Amazon, Sea Limited, and other large peers.
One focus of those investments has been the payments infrastructure that has driven the success of its Mercado Pago segment. Mercado Pago was a pioneer in Latin American fintech. In addition to facilitating digital payments for the unbanked, it has also created opportunities such as protecting money for its customers in Argentina, who contend with triple-digit inflation.
Additionally, its investments extend to digital advertising, which can serve as an added source of revenue. Moreover, the company helps many of its sellers deliver their goods through its logistics arm, Mercado Envios. All these businesses combine to bolster revenue for one another and make MercadoLibre a formidable competitor in its home region.
Investors will also like that it's profitable. In Q1, MercadoLibre reported a net income of $201 million, and it looks to be on track for its third consecutive profitable year.
Admittedly, the stock's price-to-earnings ratio of 97 may seem pricey, but rapid profit growth should reduce that earnings multiple over time. And despite a 40% gain since January, MercadoLibre trades at a price-to-sales ratio of 5, near its lowest level since 2009. Between the low sales multiple and its potential for continued revenue and profit growth, MercadoLibre stock should continue to move higher.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Alphabet, Amazon.com, and Spotify Technology. Justin Pope has no position in any of the stocks mentioned. Will Healy has positions in Block, MercadoLibre, and Sea Limited. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Block, MercadoLibre, PayPal, Sea Limited, and Spotify Technology. The Motley Fool recommends the following options: short September 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While PayPal's stock price is down relative to where it traded five years ago, the company's revenue has almost doubled in that time, and free cash flow has grown by nearly 50%. The stock has risen by more than 4,000% since its 2007 initial public offering, and the company has built a leadership position in Latin American e-commerce and fintech while also prospering in other areas. In addition to facilitating digital payments for the unbanked, it has also created opportunities such as protecting money for its customers in Argentina, who contend with triple-digit inflation.
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These Motley Fool contributors have their sights set on three: Spotify (NYSE: SPOT), MercadoLibre (NASDAQ: MELI), and PayPal (NASDAQ: PYPL). PayPal's market-beating run could be just beginning Justin Pope (PayPal Holdings): Fintech company PayPal Holdings has been a brutal hold for shareholders over the past five years, but its fortunes could soon change. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Block, MercadoLibre, PayPal, Sea Limited, and Spotify Technology.
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PayPal's market-beating run could be just beginning Justin Pope (PayPal Holdings): Fintech company PayPal Holdings has been a brutal hold for shareholders over the past five years, but its fortunes could soon change. Between the low sales multiple and its potential for continued revenue and profit growth, MercadoLibre stock should continue to move higher. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Block, MercadoLibre, PayPal, Sea Limited, and Spotify Technology.
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These Motley Fool contributors have their sights set on three: Spotify (NYSE: SPOT), MercadoLibre (NASDAQ: MELI), and PayPal (NASDAQ: PYPL). PayPal was one of the first digital payments companies and built its business on online payments. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Block, MercadoLibre, PayPal, Sea Limited, and Spotify Technology.
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14643.0
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2023-07-30 00:00:00 UTC
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I'm Buying More of This Stock Before It's Too Late
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AAPL
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https://www.nasdaq.com/articles/im-buying-more-of-this-stock-before-its-too-late-5
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nan
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nan
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After dramatic sell-offs in 2022, many stocks are on the rise this year. Easing inflation pressures and enthusiasm about some technological advances put Wall Street in a bullish mood again. While a new bull market isn't official, some analysts are talking like a bull market is already underway. With this market sentiment so upbeat, now might be an excellent time to find some worthy growth stock candidates that stand to benefit from the broader market enthusiasm.
One attractive option right now is Apple (NASDAQ: AAPL). It has nearly unrivaled dominance in consumer tech and a history of consistent stock growth. Recent expansions by the tech giant into artificial intelligence (AI) and virtual and augmented reality (VR/AR) suggest new growth opportunities for this company to explore over the long term.
Considering what Apple has going for it, now might be the right time to grab some (or more) of the stock before it climbs even higher. Here's why.
Apple is quietly joining in on the AI hype
The debut of OpenAI's ChatGPT in November 2022 kicked off a boom in the interest in AI, causing many of the world's most valuable companies to pivot their businesses to further develop the technology. Companies like Microsoft and Amazon saw plenty of new investor support when they revealed their expansion plans in AI, but Apple has been comparatively quiet about its AI efforts amid the hype.
The consumer tech specialist instead focused on using AI to improve user experience in its various products. At Apple's Worldwide Developer Conference in June, the company announced an update to the iPhone's autocorrect, which uses language models similar to ChatGPT to learn how users text. Meanwhile, the AirPods Pro will receive an AI-enabled feature that automatically turns off noise cancellation when the user begins a conversation.
Still, the interest in doing more with AI is definitely there as evidenced by a recent Bloomberg report that indicated Apple could be developing its own version of ChatGPT and potentially taking on OpenAI and Microsoft in the sector. The company has reportedly created a framework for producing language models and developed a chatbot, which engineers call Apple GPT.
With leading market shares in smartphones, tablets, smartwatches, and headphones, Apple has multiple ways to get its AI technology into the hands of consumers. That means it has massive potential in the $137 billion market that is projected to expand at a compound annual growth rate (CAGR) of 37% through 2030.
Reigniting enthusiasm for virtual/augmented reality
A device that could heavily benefit from Apple's AI expansion is its VR/AR headset, the Vision Pro, unveiled in June and expected to be available for sale in early 2024. After years of tech giants like Sony and Meta Platforms struggling to convince consumers to adopt virtual reality, Apple has breathed new life into the market.
VR/AR start-ups that previously found it challenging to find funding are attracting new investors. According to data from Pitchbook, AR, VR, and mixed-reality companies in the U.S. raised about $208 million in June. The figure is almost as much as these companies saw in the last three months combined, marking a 12-month high.
Apple's Vision Pro will launch with a $3,499 price tag, locking out some consumers who will not be able to afford it. Still, the company's pricing strategy with its past products suggests the cost will likely come down with future generations. If this is the case, Apple could soar to the top of the $227 billion industry and substantially profit from the industry's projected CAGR of 45% through 2029.
While other companies currently hold dominating market shares in the VR/AR market, Apple has a long history of outperforming competitors in consumer tech. The company has become the leading name in nearly all of its product categories despite not being the first to the markets.
Data by YCharts
While past performance is no guarantee of future success, successful companies do tend to remain successful for long periods. Apple shares have soared nearly 300% in the past five years, significantly more than any of the five biggest names in tech. The company has a reputation for offering investors reliable growth. Add in the potential of AI and VR/AR that the company has yet to exploit and Apple's stock becomes a must-buy.
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
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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One attractive option right now is Apple (NASDAQ: AAPL). Recent expansions by the tech giant into artificial intelligence (AI) and virtual and augmented reality (VR/AR) suggest new growth opportunities for this company to explore over the long term. At Apple's Worldwide Developer Conference in June, the company announced an update to the iPhone's autocorrect, which uses language models similar to ChatGPT to learn how users text.
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One attractive option right now is Apple (NASDAQ: AAPL). While other companies currently hold dominating market shares in the VR/AR market, Apple has a long history of outperforming competitors in consumer tech. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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One attractive option right now is Apple (NASDAQ: AAPL). Apple is quietly joining in on the AI hype The debut of OpenAI's ChatGPT in November 2022 kicked off a boom in the interest in AI, causing many of the world's most valuable companies to pivot their businesses to further develop the technology. Companies like Microsoft and Amazon saw plenty of new investor support when they revealed their expansion plans in AI, but Apple has been comparatively quiet about its AI efforts amid the hype.
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One attractive option right now is Apple (NASDAQ: AAPL). While other companies currently hold dominating market shares in the VR/AR market, Apple has a long history of outperforming competitors in consumer tech. * 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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14644.0
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2023-07-30 00:00:00 UTC
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Here's Exactly How I'll Make Over $18,000 in Dividend Income This Year
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AAPL
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https://www.nasdaq.com/articles/heres-exactly-how-ill-make-over-%2418000-in-dividend-income-this-year
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nan
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nan
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I don't depend on my investments for income right now. Actually, I've never even paid much attention to how much my portfolio generates in annual income in the past. My practice has been (and still is) to reinvest any dividends or distributions I receive.
However, I recently decided to look at my investment income and was admittedly a little surprised. Here's exactly how I'll make over $18,000 in dividend income this year.
Exchange-traded funds
By far, the biggest chunk of my dividend income in 2023 will come from exchange-traded funds (ETFs). Although I love picking individual stocks, I'm also a big fan of ETFs. I currently own the following ETFs that pay dividends:
ETF YIELD
Health Care Select Sector SPDR Fund (NYSEMKT: XLV) 1.58%
iShares Russell 2000 ETF (NYSEMKT: IWM) 1.51%
SPDR S&P MidCap 400 ETF (NYSEMKT: MDY) 1.3%
Vanguard 500 Index Fund ETF (NYSEMKT: VOO) 1.52%
Vanguard Small-Cap Value Index Fund ETF (NYSEMKT: VBR) 2.22%
Data source for yields: Yahoo! Finance.
None of these ETFs pay especially high yields. Because I have a significant amount invested in them, though, they'll together generate nearly $7,800 in dividend income for me this year.
High-yield stocks
High-yield stocks rank as my second-biggest source of dividend income. The definition of high yield that I use, by the way, is 2x the yield of the SPDR S&P 500 ETF Trust -- the largest S&P 500 index ETF. Since SPY's yield currently stands at 1.47%, I consider any stock in my portfolio with a yield of more than 2.94% as "high."
It turned out that I have 14 stocks that meet that threshold. I won't list all of them, but they include:
CATEGORY EXAMPLE YIELD
Energy stocks
Enterprise Products Partners (NYSE: EPD)
7.4%
Healthcare stocks
AbbVie (NYSE: ABBV)
4.2%
Real estate investment trust (REIT) stocks
Innovative Industrial Properties (NYSE: IIPR)
9.3%
Data source for yields: Yahoo! Finance.
Combined, all of my high-yield stocks should make me around $5,200 in income in 2023.
Closed-end funds
I didn't become interested in closed-end funds (CEFs) until this year. These funds are similar to mutual funds in that they are actively managed. However, they can be bought and sold via brokerages just like a stock.
CEFs usually offer especially attractive yields. The three funds in my portfolio with the juiciest yields are:
CEF YIELD
PIMCO Dynamic Income Opportunities Fund (NYSE: PDO) 11.8%
DoubleLine Yield Opportunities Fund (NYSE: DLY) 10%
Cohen & Steers Infrastructure Fund (NYSE: UTF) 8.1%
All of the CEFs that I own together should generate around $3,000 in income for me this year.
Other dividend stocks
I own several other stocks with yields that don't meet my high-yield threshold. Below are my three biggest positions in this group:
STOCK YIELD
Apple (NASDAQ: AAPL) 0.5%
PepsiCo (NASDAQ: PEP) 2.7%
Microchip Technology (NASDAQ: MCHP) 1.7%
Data source for yields: Yahoo! Finance.
Apple ranks as the biggest individual stock holding in my portfolio. Although the company doesn't offer a big dividend, it still provides a material amount of income for me.
Counting all of the "other" dividend stocks that I own, they should pay out dividends of nearly $2,200 in 2023.
Adding it all up
Summing up the amounts from my ETFs, high-yield stocks, CEFs, and other dividend stocks gives a total of over $18,000 in income this year. This doesn't include any income I'll receive from holding U.S. Treasurys.
Nearly half of the positions in my portfolio don't pay dividends at all. But the ones that do generate more income than I expected.
Is there any lesson for other investors with this personal exercise of mine? Maybe so. Consider that over the last 30 years, the S&P 500 grew around 10x excluding dividends. However, if you include dividends, the S&P's total return during the period was over 18x.
Pay attention to your dividends. They can really add up over time.
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 17, 2023
Keith Speights has positions in AbbVie, Apple, Cohen & Steers Infrastructure Fund, DoubleLine Yield Opportunities Fund, Enterprise Products Partners, Innovative Industrial Properties, Microchip Technology, PepsiCo, Pimco Dynamic Income Opportunities Fund, SPDR S&P MidCap 400 ETF Trust, Select Sector SPDR Trust-The Health Care Select Sector SPDR Fund, Vanguard Index Funds-Vanguard Small-Cap Value ETF, Vanguard S&P 500 ETF, and iShares Trust-iShares Russell 2000 ETF. The Motley Fool has positions in and recommends Apple, Innovative Industrial Properties, and Vanguard S&P 500 ETF. The Motley Fool recommends Enterprise Products Partners. 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) 0.5% PepsiCo (NASDAQ: PEP) 2.7% Microchip Technology (NASDAQ: MCHP) 1.7% Data source for yields: Yahoo! 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 July 17, 2023 Keith Speights has positions in AbbVie, Apple, Cohen & Steers Infrastructure Fund, DoubleLine Yield Opportunities Fund, Enterprise Products Partners, Innovative Industrial Properties, Microchip Technology, PepsiCo, Pimco Dynamic Income Opportunities Fund, SPDR S&P MidCap 400 ETF Trust, Select Sector SPDR Trust-The Health Care Select Sector SPDR Fund, Vanguard Index Funds-Vanguard Small-Cap Value ETF, Vanguard S&P 500 ETF, and iShares Trust-iShares Russell 2000 ETF.
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Apple (NASDAQ: AAPL) 0.5% PepsiCo (NASDAQ: PEP) 2.7% Microchip Technology (NASDAQ: MCHP) 1.7% Data source for yields: Yahoo! Health Care Select Sector SPDR Fund (NYSEMKT: XLV) 1.58% iShares Russell 2000 ETF (NYSEMKT: IWM) 1.51% SPDR S&P MidCap 400 ETF (NYSEMKT: MDY) 1.3% Vanguard 500 Index Fund ETF (NYSEMKT: VOO) 1.52% Vanguard Small-Cap Value Index Fund ETF (NYSEMKT: VBR) 2.22% Data source for yields: Yahoo! PIMCO Dynamic Income Opportunities Fund (NYSE: PDO) 11.8% DoubleLine Yield Opportunities Fund (NYSE: DLY) 10% Cohen & Steers Infrastructure Fund (NYSE: UTF) 8.1% All of the CEFs that I own together should generate around $3,000 in income for me this year.
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Apple (NASDAQ: AAPL) 0.5% PepsiCo (NASDAQ: PEP) 2.7% Microchip Technology (NASDAQ: MCHP) 1.7% Data source for yields: Yahoo! Health Care Select Sector SPDR Fund (NYSEMKT: XLV) 1.58% iShares Russell 2000 ETF (NYSEMKT: IWM) 1.51% SPDR S&P MidCap 400 ETF (NYSEMKT: MDY) 1.3% Vanguard 500 Index Fund ETF (NYSEMKT: VOO) 1.52% Vanguard Small-Cap Value Index Fund ETF (NYSEMKT: VBR) 2.22% Data source for yields: Yahoo! Adding it all up Summing up the amounts from my ETFs, high-yield stocks, CEFs, and other dividend stocks gives a total of over $18,000 in income this year.
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Apple (NASDAQ: AAPL) 0.5% PepsiCo (NASDAQ: PEP) 2.7% Microchip Technology (NASDAQ: MCHP) 1.7% Data source for yields: Yahoo! Other dividend stocks I own several other stocks with yields that don't meet my high-yield threshold. Counting all of the "other" dividend stocks that I own, they should pay out dividends of nearly $2,200 in 2023.
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14645.0
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2023-07-30 00:00:00 UTC
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Weekly Preview: Earnings to Watch This Week 7-30-23 (AAPL, AMD, AMZN, SQ)
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AAPL
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https://www.nasdaq.com/articles/weekly-preview-earnings-to-watch-this-week-7-30-23-aapl-amd-amzn-sq
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nan
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nan
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A
n important week in the second-quarter earnings season just concluded, where tech giants such as Microsoft (MSFT), Meta Platforms (META) and Google parent Alphabet (GOOG , GOOGL), among others, reported their results that affirmed not only the re-emergence of mega-cap Big-Tech dominance in the stock market, but also that the so-called “magnificent seven” are truly magnificent.
However, with all three major averages resting near 52-week highs, it’s just Big-Tech that’s shining. And strong earnings are not the only catalyst pushing stocks higher. On Friday, the personal consumption expenditures (PCE) price index — a closely-watched measure of inflation of the Federal Reserve — came in at its lowest level in nearly two years. The showed PCE gained 0.2% month-over-month, which was the target economists expected. Meanwhile, core PCE rose 4.1% from the year-ago period, lower than the anticipated 4.2%.
Essentially, on the heels of the Fed raising rates by a quarter of a point Wednesday and indicating that there may be more increased in the months to come, the data the Fed watches closely suggests there may be no reason for more rate hikes. And that was the signal to investors on Friday as all three major averages jumped with concerns of imminent recession giving way to the reality that the Fed has executed a soft landing, or something close to it.
Investors responded with strategic buying of equities, which sent the Dow Jones Industrial Average higher by 176.57 points, or 0.50%, to end the session at 35,459.29. The blue-chip index was powered by a better-than 6% rise in Intel (INTC), and gains in Apple (AAPL), Salesforce (CRM), Microsoft and Walt Disney (DIS). The S&P 500 gained 44.82 points, or 0.99%, finishing at 4,582.23, while the tech-heavy Nasdaq Composite added 266.55 points, or 1.90%, to close at 14,316.66. The Nasdaq was buoyed by the a better-than 4% rise in Tesla (TSLA), Nvidia (NVDA) as well as the aforementioned Big-Tech powers.
For the week, the Nasdaq was the biggest gainer, rising 2% thanks to Microsoft and Meta which impressed the market with better-than expected numbers. Once believed to be suffering as a result of TikTok, Meta demonstrated not only that its digital ad business is rebounding, but also it can still grow its user base among its family of apps. What’s more, the company’s cost-cutting efforts appear to be working as evidence by the strong bottom-line beat. Will the strong earnings growth trend continue throughout the entire Q2 earnings season? That remains to be seen.
While it’s still early, and there are still more than half of the earnings season still remain, the outlook companies have provided so far suggests the new bull market is here to stay. Friday’s rally in stocks suggests investors are now more optimistic about the direction of the economy and the near-term and long-term impact of monetary policy decisions. Here are the stocks I’ll be watching this week.
Advanced Micro Devices (AMD) - Reports after the close, Tuesday, Aug. 1.
Wall Street expects AMD to earn 57 cents per share on revenue of $5.31 billion. This compares to the year-ago quarter when earnings were $1.05 per share on $6.55 billion in revenue.
What to watch: There is a noticeable rebound in global PC shipments, according to Gartner, which noted that a recovery in the global PC market is underway, highlighting an 8.1% sequential increase compared to the previous quarter. This bodes well for Advanced Micro Devices, which is one of the key players in the global semiconductor industry. AMD has consistently grown its market share of the global CPU processors, driven by product innovations such as its Ryzen processors built on the Zen microarchitecture. However, margin erosion and the cyclicality in the chip business have been two of the company’s biggest headwinds over the past several quarters. Investors are anxious to see whether margin pressures have bottomed and are now ready for expansion. Meanwhile, AMD stock which is up 73% year to date, compared with a 18% rise in the S&P 500 index, assumes these issues are in the rearview mirror. This is because even amid the challenges, the company demonstrated strong operating leverage evidenced by its ability to grow profits at a faster rate than its revenue. While AMD delivered a marginal beat on revenues, EPS fell short of expectations due to a sharp decline in global PC shipments. Assuming the company’s growth metrics rebound in Q2 and the management issues strong guidance, this would present a great buying opportunity for AMD stock for the next 12 to 18 months, despite the strong run it has already been on.
Amazon (AMZN) - Reports after the close, Thursday, Aug. 3
Wall Street expects Amazon to earn 35 cents per share on revenue of $131.47 billion. This compares to the year-ago loss of 20 cents per share on revenue of $121.23 billion.
What to watch: With a gain of 55% year to date, besting the 18% rise in the S&P 500 index, Amazon stock ranks as one of the top performers in the market and tech, in particular. The e-commerce giant's growth strategy is bearing fruit. And driven by some recent operating cost reductions, Amazon now has slimmer cost profile which will lend to faster earnings growth in the quarters ahead. Some of the recent cost-saving measures include shutting down unprofitable businesses, reducing its global headcount and reprioritizing resources in an effort to right-size the business. The goal is to remain leaner and stronger. Amazon is expected to report Q2 earnings per share of 35 cents, which would be a massive increase from the year-ago loss of 20 cents. Meanwhile, Q2 revenue is expected to be roughly $131 billion, reflecting an 8% increase from the previous year. But it’s not just the company’s profitability and margin profile to be excited about. There’s also Amazon Web Services which has been the company’s main profit producer. Anchored by the AWS cloud platform, the company’s services segment is still enjoying exponential growth which has offset recent weakness in the retail segment. All told, Amazon has many growth levers it can pull. "There's a lot to like about how our teams are delivering for customers," CEO Andy Jassy said in a recent press release. From a valuation perspective, while Amazon stock is not as cheap as it were at the start of the year, the shares still look like a bargain relative to the company’s long-term potential. For that to matter in the near term, on Thursday beyond a top- and bottom-line beat, investors will want strong profit guidance to support the long-term return investment thesis.
Apple (AAPL) - Reports after the close, Thursday, Aug. 3.
Wall Street expects Apple to earn $1.19 per share on revenue of $81.63 billion. This compares to the year-ago quarter when earnings came to $1.20 per share on revenue of $82.96 billion.
What to watch: Apple stock has gone on an impressive run, rising some 50% year to date, almost three times the 18% gain in the S&P 500 index. The shares have returned more than 30% just in the past six months, pushing the tech giant past a $3 trillion valuation. The market is clearly bullish on the company’s growth potential. Investors are also excited about prospects for the new iPhone 15 which is scheduled to launch in September. But it’s not just about the iPhones. Goldman Sachs analyst Michael Ng expects Apple to surpass earnings estimates, led by strength in its Mac and Services segments. Ng is expecting Services revenue of $21.8 billion to rise 11% year-over-year, clearing Wall Street forecast of $20.7 billion. “Upside to our Services forecast reflects the inflection in App Store spending, per Sensor Tower, strong growth in advertising, continued content investments in AppleTV, and a more benign forex headwind relative to company guidance of -400 bps," Ng wrote in an investor note. The market will also look for details about its long-awaited mixed reality headset, dubbed Vision Pro, which was unveiled at the company's Worldwide Developers Conference. Wall Street analysts were impressed, including Credit Suisse analyst Shannon Cross who said the device "solves many of the technical limitations.” Adding it is the "first un-compromised mixed reality solution.” Jefferies analyst Andrew Uerkwitz called the device the "most technologically advanced device we've seen.” At a hefty price tag of $3,499, the question is, how much revenue and profits can Apple expect upon launch? This and other topics will be front and center on the conference call with analysts on Thursday.
Block (SQ) - Reports after the close, Thursday, Aug. 3.
Wall Street expects Block to earn 36 cents per share on revenue of $5.1 billion. This compares to the year-ago quarter when earnings came to 18 cents per share on revenue of $4.4 billion.
What to watch: Shares of Block have surged more than 20% over the past thirty days, besting the 4% rise in the S&P 500 index. Investors are growing more optimistic about Block's growth potential which is closely tied to the company’s ability to not only expand its product offerings, but also management’s ability to enter new intentional markets. Originally called Square and known for its peer-to-peer money-transfer service Cash App, the company rebranded its name to Block to present an emphasis on its shift towards blockchain technology. Although the Fintech specialist continues to buildout what it envisions as a decentralized finance business using cryptocurrency, the management expects Cash App, which is already used to buy and sell Bitcoin, to lead the new business. Currently boasting 53 million active accounts at the end of the first-quarter, Cash app has grown in popularity with users with more than 14 million new users added in the last two years alone. With $3.3 billion in Q1 revenues, resulting in $931 million in gross profit, Block’s Cash App gross profit growth reached 49% year over year in Q1. Cash App is poised to remain a profit center for Block and will drive the company's consolidated gross profit growth. That said, the post-pandemic results are not as strong as they were during the pandemic. And that’s been the case for all Fintech companies, including rival PayPal (PYPL) as growth has moderated. However, for Block, the company is still expected to grow at robust double-digit rates annually for the foreseeable future. What’s more, the management has outlined a new long-term investment framework, which they believe will improve the company’s earnings quality. On Thursday investors will want more details on these initiatives to assess where the stock valuation should be.
The views and 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 blue-chip index was powered by a better-than 6% rise in Intel (INTC), and gains in Apple (AAPL), Salesforce (CRM), Microsoft and Walt Disney (DIS). Apple (AAPL) - Reports after the close, Thursday, Aug. 3. And that was the signal to investors on Friday as all three major averages jumped with concerns of imminent recession giving way to the reality that the Fed has executed a soft landing, or something close to it.
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The blue-chip index was powered by a better-than 6% rise in Intel (INTC), and gains in Apple (AAPL), Salesforce (CRM), Microsoft and Walt Disney (DIS). Apple (AAPL) - Reports after the close, Thursday, Aug. 3. Amazon (AMZN) - Reports after the close, Thursday, Aug. 3 Wall Street expects Amazon to earn 35 cents per share on revenue of $131.47 billion.
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The blue-chip index was powered by a better-than 6% rise in Intel (INTC), and gains in Apple (AAPL), Salesforce (CRM), Microsoft and Walt Disney (DIS). Apple (AAPL) - Reports after the close, Thursday, Aug. 3. Amazon (AMZN) - Reports after the close, Thursday, Aug. 3 Wall Street expects Amazon to earn 35 cents per share on revenue of $131.47 billion.
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The blue-chip index was powered by a better-than 6% rise in Intel (INTC), and gains in Apple (AAPL), Salesforce (CRM), Microsoft and Walt Disney (DIS). Apple (AAPL) - Reports after the close, Thursday, Aug. 3. Wall Street expects AMD to earn 57 cents per share on revenue of $5.31 billion.
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14646.0
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2023-07-30 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-56
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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
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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14647.0
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2023-07-29 00:00:00 UTC
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Want to Get Richer? 7 Best Stocks to Buy and Hold for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/want-to-get-richer-7-best-stocks-to-buy-and-hold-for-the-next-decade-0
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nan
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nan
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Today, I'm sharing the top stocks in my $1.5 million growth stock portfolio. I believe we are in a new industrial revolution that could supercharge your long-term investing portfolio. Megatrends, such as artificial intelligence (AI), autonomous driving, robotics, and the Internet of Things (IoT), are fueled by cloud computing and semiconductors. The video below shares how to invest in disruptive technology trends to boost your wealth over the next 10 years.
*Stock prices used were the afternoon prices of July 28, 2023. The video was published on July 29, 2023.
Find out why Tesla is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of July 27, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Advanced Micro Devices, Amazon.com, Apple, Microsoft, Nvidia, Snowflake, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Microsoft, Nvidia, Snowflake, and Tesla. The Motley Fool has a disclosure policy.
Eric 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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Megatrends, such as artificial intelligence (AI), autonomous driving, robotics, and the Internet of Things (IoT), are fueled by cloud computing and semiconductors. *Stock Advisor returns as of July 27, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Microsoft, Nvidia, Snowflake, and Tesla.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Eric Cuka has positions in Advanced Micro Devices, Amazon.com, Apple, Microsoft, Nvidia, Snowflake, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Microsoft, Nvidia, Snowflake, and Tesla.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. *Stock Advisor returns as of July 27, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Microsoft, Nvidia, Snowflake, and Tesla.
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The video was published on July 29, 2023. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Eric Cuka has positions in Advanced Micro Devices, Amazon.com, Apple, Microsoft, Nvidia, Snowflake, and Tesla.
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14648.0
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2023-07-29 00:00:00 UTC
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Got $5,000? 1 Tech Stock to Buy and Hold for the Long Term
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AAPL
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https://www.nasdaq.com/articles/got-%245000-1-tech-stock-to-buy-and-hold-for-the-long-term
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nan
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nan
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The Nasdaq Composite Index has had a wonderful start to the year, rising 35%. This bounce-back is exactly what investors need after last year's 33% decline. Optimism is clearly permeating the market.
Amid the market's rise, tech stocks are doing well. For instance, Apple (NASDAQ: AAPL) is up 49% this year. And its market cap is hovering around the $3 trillion mark.
It might seem crazy to recommend such a massive business that's so widely followed as a solid investment right now. But I think it's a smart move if investors buy $5,000 worth of Apple stock and hold for the long term. Here's why.
Attractive characteristics
There are so many wonderful attributes about this company that's it hard to figure out where to start. First off, we can't ignore Apple's powerful brand. According to Interbrand, it's the most valuable brand in the world, estimated to be valued at $482 billion. I don't think this is a surprise to many people, as Apple is so ingrained in our society that almost everyone is familiar with the company.
Having a loyal customer base, which has contributed to the brand's strength, is surely part of the reason that Warren Buffett, through his conglomerate Berkshire Hathaway, has such a massive stake in the business. Look through the company's portfolio, and you'll see it's peppered with companies that have powerful brands.
Of course, a business can't develop such a dominant brand presence without selling superior products and services. With the iPhone, Apple has created arguably the single-greatest product in corporate history; the device generated more than half of the company's revenue in the fiscal 2023 second quarter (ended April 1). Other popular hardware products, like the MacBook, iPad, Watch, and AirPods, also see tremendous demand. In fact, Apple currently has more than 2 billion active devices worldwide. That's incredible.
Over the past few years, the Services segment, which includes Music, Pay, TV+, and iCloud, has gotten a lot of attention. This has turned into a high-margin, recurring, and fast-growing revenue stream for Apple. And it drives even more stickiness from customers by making the ecosystem stronger.
And we can't forget about the company's favorable financial position. As of April 1, Apple had $166 billion of cash, cash equivalents, and marketable securities on its balance sheet. And it generated $111 billion of free cash flow in fiscal 2022 (ended Sept. 24), a typical occurrence for the tech behemoth. Management has used this money printer to return lots of capital to shareholders in the form of stock repurchases and dividends.
Investors might wish that Apple would return even more capital in the form of more aggressive buybacks and higher dividends. But the amount of cash Apple has on its balance sheet creates some options for the business to continue investing in new growth opportunities. These opportunities -- like augmented and virtual reality, as well as a rumored autonomous vehicle -- could be financial boons for the company.
Things to think about
Unsurprisingly, Apple's massive size, with its $3 trillion market cap, might immediately turn some investors off. That's because naturally, the law of large numbers kicks in. And it's difficult to see a path to outsized revenue and earnings growth in the decades ahead.
The stock has undoubtedly been a huge winner, rising about 300% in the last five years. And it now sells at a price-to-earnings ratio of 33, which is expensive based on where the stock has traded in the last 10 years. Investors are rightfully concerned not just with Apple's scale, but its seemingly elevated valuation.
Even so, it's worth taking a closer look at this stock. Even though future returns likely won't resemble the past, Apple can still be a foundational holding in your portfolio. This looks like a safe investment with $5,000 of capital thanks to Apple's brand strength, outstanding product and service portfolio, and its superb financial profile.
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 17, 2023
Neil Patel has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For instance, Apple (NASDAQ: AAPL) is up 49% this year. Having a loyal customer base, which has contributed to the brand's strength, is surely part of the reason that Warren Buffett, through his conglomerate Berkshire Hathaway, has such a massive stake in the business. With the iPhone, Apple has created arguably the single-greatest product in corporate history; the device generated more than half of the company's revenue in the fiscal 2023 second quarter (ended April 1).
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For instance, Apple (NASDAQ: AAPL) is up 49% this year. But I think it's a smart move if investors buy $5,000 worth of Apple stock and hold for the long term. This looks like a safe investment with $5,000 of capital thanks to Apple's brand strength, outstanding product and service portfolio, and its superb financial profile.
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For instance, Apple (NASDAQ: AAPL) is up 49% this year. But I think it's a smart move if investors buy $5,000 worth of Apple stock and hold for the long term. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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For instance, Apple (NASDAQ: AAPL) is up 49% this year. Amid the market's rise, tech stocks are doing well. Look through the company's portfolio, and you'll see it's peppered with companies that have powerful brands.
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14649.0
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2023-07-29 00:00:00 UTC
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1 Unstoppable Growth ETF That Could Turn $100 a Week Into $1.15 Million
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AAPL
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https://www.nasdaq.com/articles/1-unstoppable-growth-etf-that-could-turn-%24100-a-week-into-%241.15-million
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nan
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nan
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Investing in the stock market isn't always easy, but with the right investments, it's one of the safest and most effective ways to build long-term wealth.
While there's no single right way to invest, exchange-traded funds (ETFs) can be a smart option for many people.
Image source: Getty Images.
An ETF is a basket of securities rolled together into a single investment. So when you invest in just one ETF, you're actually investing in dozens of stocks, or even hundreds. Each ETF is slightly different, offering exposure to different types of stocks and industries.
A growth ETF contains stocks with the potential to earn above-average returns, making it an ideal choice for investors who want the relative safety and convenience of an ETF while still maximizing their earnings.
There are countless different ETFs to choose from, all with unique advantages and disadvantages. But there's one in particular that could help you turn just $100 per week into more than $1.15 million over time: the Vanguard Growth ETF (NYSEMKT: VUG).
Why this ETF is such a strong investment
The Vanguard Growth ETF contains 235 stocks across 11 different sectors, though around half of the fund is made up of technology stocks. It also offers a rock-bottom expense ratio of just 0.04%, which is far lower than many other ETFs and could save you thousands of dollars in fees over time.
One factor that sets this growth ETF apart from many others, though, is its mix of blue chip stocks and up-and-coming companies.
Roughly half of this ETF consists of the stocks of behemoths like Apple, Nvidia, and Visa. These might be less likely to experience explosive growth, but their sheer size and proven track record also make them lower-risk investments.
The rest of the fund is made up of dozens of stocks from smaller companies. These tend to carry more risk, but they also have more potential for substantial growth. If even one of these stocks skyrockets, you could see significant earnings.
Building a million-dollar portfolio
The key to making a lot of money in the stock market is to invest consistently and keep a long-term outlook. Even the best stocks won't make you a millionaire overnight, but over decades, your earnings will add up.
Over the past 10 years, the Vanguard Growth ETF has earned an average rate of return of just under 15% per year. To play it safe, though, let's assume your investments only earn average returns of 12% per year (which is just above the stock market's historic 10% annual average).
If you were to invest $100 per week while earning a 12% average annual return, here's approximately how much you would have over time:
NUMBER OF YEARS TOTAL SAVINGS
20 $346,000
25 $640,000
30 $1,158,000
35 $2,072,000
Data source: Author's calculations via Investor.gov.
To reach the million-dollar mark, you'll need to invest consistently for around 30 years. But if you have even five more years than that to invest, you could roughly double your total savings.
Just keep in mind that there are never any guarantees when investing, and how much you actually earn will depend on how this fund (and the market as a whole) performs over the coming decades. But by investing consistently and keeping a long-term outlook, you could earn more than you might think.
Risks to consider before you buy
No investment is perfect, so no matter what you buy, it's important to also think about the potential downsides.
One disadvantage to ETFs in general is that you have no control over the stocks within the fund. For many investors, the ease and simplicity of ETFs outweigh this factor. But if there are certain stocks you'd rather not own, there's no way to opt out of those specific companies.
Also, growth ETFs are generally riskier than broad-market funds, such as an S&P 500 ETF. This particular fund aims to reduce that risk with a healthy amount of diversification across multiple industries, but high-growth companies are often more volatile than their more-established counterparts.
A growth ETF can be a solid addition to your portfolio, but it's important to weigh the pros and cons before you buy. If you're looking for one that can help limit your risk while still giving you the potential for above-average returns, the Vanguard Growth ETF could be a smart option.
10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard Growth ETF wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 17, 2023
Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Building a million-dollar portfolio The key to making a lot of money in the stock market is to invest consistently and keep a long-term outlook. This particular fund aims to reduce that risk with a healthy amount of diversification across multiple industries, but high-growth companies are often more volatile than their more-established counterparts. The Motley Fool has positions in and recommends Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Visa.
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A growth ETF contains stocks with the potential to earn above-average returns, making it an ideal choice for investors who want the relative safety and convenience of an ETF while still maximizing their earnings. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard Growth ETF wasn't one of them! The Motley Fool has positions in and recommends Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Visa.
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A growth ETF contains stocks with the potential to earn above-average returns, making it an ideal choice for investors who want the relative safety and convenience of an ETF while still maximizing their earnings. Why this ETF is such a strong investment The Vanguard Growth ETF contains 235 stocks across 11 different sectors, though around half of the fund is made up of technology stocks. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF.
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A growth ETF contains stocks with the potential to earn above-average returns, making it an ideal choice for investors who want the relative safety and convenience of an ETF while still maximizing their earnings. The rest of the fund is made up of dozens of stocks from smaller companies. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard Growth ETF wasn't one of them!
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14650.0
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2023-07-28 00:00:00 UTC
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Wall St Week Ahead-Hopes of 'Goldilocks' economy, rate peak buoy US stocks
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-hopes-of-goldilocks-economy-rate-peak-buoy-us-stocks
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nan
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nan
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By David Randall
NEW YORK, July 28 (Reuters) - A resilient U.S. economy and expectations of a nearing peak in the Federal Reserve’s monetary policy tightening cycle are emboldening stock investors, even as worries persist over rising valuations and the potential for inflation to rebound.
The S&P 500 is up nearly 19% this year after gaining around 1% in the past week. It has risen nearly 10 percentage points since June 1, over which time the U.S. government avoided a debt ceiling default and consumer prices cooled, while growth stayed resilient.
One key factor driving stocks higher has been the view that the economy is moving towards a so-called Goldilocks scenario of ebbing consumer prices and strong growth that many believe is a healthy backdrop for stocks.
That view gained further traction in the past week, when Chair Jerome Powell said the central bank's staff
no longer forecasts
a U.S. recession and that inflation had a shot of returning to its 2% target without high levels of job losses.
Policymakers raised rates by another 25 basis points to their highest level since 2007 at the central bank's July 26 meeting and left the door open to another increase in September.
"The market has fully accepted the narrative that it wanted, which is Goldilocks. Until we see some set of data that scares them it's hard to see how that changes," said Bob Kalman, senior portfolio manager at Miramar Capital.
At the same time, investors believe the Fed is unlikely to deliver much more of the monetary policy tightening that shook markets last year. Futures markets on Friday priced a nearly 73% chance that rates don’t rise above current levels through the end of the year, according to CME’s FedWatch tool, up from 24% a month ago.
A test of the economy comes next week, when the U.S. reports employment numbers for July. While comparatively strong employment data has been a driver of this year’s stock rally, signs that the economy is growing at too rapid a pace could spark worries that the Fed will need to raise rates more than expected.
"For markets to continue to trade higher, the soft landing must be a soft landing, not a reacceleration, because if housing and consumer spending accelerate from here, the Fed will have to raise rates a lot more," wrote Torsten Slok, chief economist at Apollo Global Management.
Kalman, of Miramar Capital, believes there’s a growing chance the Fed may need to raise rates beyond their current 5.50% threshold and hold them there for longer than expected, an outcome he worries could dampen the economy and hurt risk assets.
"It's a 50-50 chance that we'll get Goldilocks or we'll get a stronger downturn," he said.
Many are also assessing the durability of a rally in tech stocks, which has been fueled in part by excitement over developments in artificial intelligence. The tech-heavy Nasdaq 100 is up nearly 44% year-to-date, while the S&P 500 information technology sector has gained nearly 46%.
Optimistic forecasts from Meta Platforms and results from Alphabet earlier this week bolstered the case for those who believe megacaps’ lofty valuations are justified. Some smaller companies have delivered as well, with shares of streaming device maker Roku Inc soaring on Friday after it gave an upbeat quarterly revenue forecast.
Still, some investors have been looking outside of tech stocks for further gains, wary of rising valuations. The S&P 500 tech sector now trades at 28.2 times forward earnings, from 19.6 at the start of the year.
Burns McKinney, senior portfolio manager at NJF Investment Group, owns shares of Apple and Microsoft but has been adding to dividend-paying positions in healthcare, financials, and energy in anticipation that megacap names start to falter.
For megacap stocks, "the risk-reward is not as good as it was a quarter ago," he said.
Others believe the rally in equities is due for a pause. Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research, said he wouldn't be surprised to see the S&P 500 fall 5% or more in the next month or two as investors take profits on recent gains.
Yet he also believes stocks are in the "early stages" of their recovery after falling into a bear market last year.
"There’s always a concern with too much optimism, but longer term a sort of consolidation here speaks to a positive market going out," he said. (Reporting by David Randall; Editing by Ira Iosebashvili and Deepa Babington) ((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net)) ((Wall St Week Ahead runs every Friday. For thedaily stock marketreport, please click [.N])) Keywords: USA STOCKS/WEEKAHEAD (SCHEDULED COLUMN)
The views and 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 David Randall NEW YORK, July 28 (Reuters) - A resilient U.S. economy and expectations of a nearing peak in the Federal Reserve’s monetary policy tightening cycle are emboldening stock investors, even as worries persist over rising valuations and the potential for inflation to rebound. That view gained further traction in the past week, when Chair Jerome Powell said the central bank's staff no longer forecasts a U.S. recession and that inflation had a shot of returning to its 2% target without high levels of job losses. Burns McKinney, senior portfolio manager at NJF Investment Group, owns shares of Apple and Microsoft but has been adding to dividend-paying positions in healthcare, financials, and energy in anticipation that megacap names start to falter.
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By David Randall NEW YORK, July 28 (Reuters) - A resilient U.S. economy and expectations of a nearing peak in the Federal Reserve’s monetary policy tightening cycle are emboldening stock investors, even as worries persist over rising valuations and the potential for inflation to rebound. Until we see some set of data that scares them it's hard to see how that changes," said Bob Kalman, senior portfolio manager at Miramar Capital. Kalman, of Miramar Capital, believes there’s a growing chance the Fed may need to raise rates beyond their current 5.50% threshold and hold them there for longer than expected, an outcome he worries could dampen the economy and hurt risk assets.
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By David Randall NEW YORK, July 28 (Reuters) - A resilient U.S. economy and expectations of a nearing peak in the Federal Reserve’s monetary policy tightening cycle are emboldening stock investors, even as worries persist over rising valuations and the potential for inflation to rebound. One key factor driving stocks higher has been the view that the economy is moving towards a so-called Goldilocks scenario of ebbing consumer prices and strong growth that many believe is a healthy backdrop for stocks. While comparatively strong employment data has been a driver of this year’s stock rally, signs that the economy is growing at too rapid a pace could spark worries that the Fed will need to raise rates more than expected.
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The S&P 500 is up nearly 19% this year after gaining around 1% in the past week. While comparatively strong employment data has been a driver of this year’s stock rally, signs that the economy is growing at too rapid a pace could spark worries that the Fed will need to raise rates more than expected. Still, some investors have been looking outside of tech stocks for further gains, wary of rising valuations.
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14651.0
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2023-07-28 00:00:00 UTC
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2 Top Tech Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/2-top-tech-stocks-to-buy-right-now-2
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nan
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nan
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Seven months into the year, and the technology sector has pleasantly surprised investors. The hype surrounding artificial intelligence (AI), cooling inflation, and an economy that seems headed in the right direction have all propelled many stocks this year.
The tech-dominant Nasdaq-100 and broader Nasdaq Composite are up over 42% and 35% year to date (as of July 26), respectively. This outpaces other major indexes like the S&P 500 and Dow Jones Industrial Average, which are up 19% and 7%, respectively.
If you're looking for tech stocks to buy, here are two to hold on to for the long term, albeit on different ends of the growth spectrum.
1. Upstart
Upstart (NASDAQ: UPST) is a fintech company that uses AI to assess borrowers and help financial institutions make lending decisions. It's out to challenge Fair Isaac's FICO score that currently dominates the market (and has for decades).
The stock has been erratic since its December 2020 initial public offering (IPO). The company IPO'd at $20, increased over 780% by October 2021, shed over 95% of its value by the end of 2022, and is now up close to 390% in 2023 as of July 26.
These swings can largely be attributed to the changing landscape of interest rates and economic activity. When interest rates were sub-1%, borrowing shot up, meaning Upstart processed more lending applications. The interest rate hikes by the Federal Reserve over the last 1.5 years have reversed that trend.
Despite the cyclical nature of Upstart's business, its future looks bright based on how efficient its AI models are. According to Upstart, borrowers it approved had 53% fewer defaults than borrowers from large U.S. banks at the same approval rate. That means banks using Upstart could approve 173% more loans with the same default rate as the prior approval method.
Upstart currently services auto, personal, and business loans, with a total addressable market (TAM) of around $1.6 trillion. Once the company expands to include home loans, it could add another $2.7 trillion TAM. Investors should take comfort in knowing the company is in the early stages of what could be possible.
The downside to Upstart is its volatility, but that's to be expected of a growth stock of its size. Interested investors should consider dollar-cost averaging their way into a stake to avoid investing a lump sum before a sudden drop.
2. Apple
Sometimes it feels a little too typical to include the most valuable public company in the world in such lists, but there's a reason Apple (NASDAQ: AAPL) has that title. It's rightfully earned, and somehow, there seems to be a lot more room for growth.
As a luxury brand, Apple has been able to set high price points that do wonders for the company's margins and profit. Through the first two quarters of Apple's 2023 fiscal year (ended April 1), it made over $54.1 billion in net income. That's more than the 2022 net income of Wells Fargo, Nike, and Visa combined.
Apple's tech dominance has been driven by the iPhone, which accounts for more than 54% of its revenue, but this next chapter will likely depend on another business segment: services, particularly financial and health-related. In Apple's FY 2019, services were around 17% of its revenue. Fast-forward to this most recent quarter, and they're over 22%.
Both fintech and healthcare are industries Apple has its eyes set on in the near future. With fintech, the company's moves have been more blatant, with the release of Apple Pay, the Apple Card, and Apple Pay Later. Its healthcare moves have been more subtle, with additional Apple Watch health readings and expanded health records that can be shared with healthcare providers.
The fintech and healthcare IT industries are expected to add over $800 billion in combined market size by 2030. With compound annual growth rates projected at 19.5% and 17.9% until 2030 for those industries, respectively, Apple being moderately successful in those lanes could work wonders for its revenue and net income.
When in doubt, Apple is a company you can feel comfortable holding for the long haul.
10 stocks we like better than Upstart
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 Upstart 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 17, 2023
Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Nike, Upstart, and Visa. The Motley Fool recommends Fair Isaac and recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Sometimes it feels a little too typical to include the most valuable public company in the world in such lists, but there's a reason Apple (NASDAQ: AAPL) has that title. The hype surrounding artificial intelligence (AI), cooling inflation, and an economy that seems headed in the right direction have all propelled many stocks this year. Apple's tech dominance has been driven by the iPhone, which accounts for more than 54% of its revenue, but this next chapter will likely depend on another business segment: services, particularly financial and health-related.
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Apple Sometimes it feels a little too typical to include the most valuable public company in the world in such lists, but there's a reason Apple (NASDAQ: AAPL) has that title. That's more than the 2022 net income of Wells Fargo, Nike, and Visa combined. The fintech and healthcare IT industries are expected to add over $800 billion in combined market size by 2030.
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Apple Sometimes it feels a little too typical to include the most valuable public company in the world in such lists, but there's a reason Apple (NASDAQ: AAPL) has that title. With fintech, the company's moves have been more blatant, with the release of Apple Pay, the Apple Card, and Apple Pay Later. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Wells Fargo is an advertising partner of The Ascent, a Motley Fool company.
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Apple Sometimes it feels a little too typical to include the most valuable public company in the world in such lists, but there's a reason Apple (NASDAQ: AAPL) has that title. When interest rates were sub-1%, borrowing shot up, meaning Upstart processed more lending applications. That's right -- they think these 10 stocks are even better buys.
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14652.0
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2023-07-28 00:00:00 UTC
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Is QYLD ETF’s 11.3% Dividend a High-Yield Trap?
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AAPL
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https://www.nasdaq.com/articles/is-qyld-etfs-11.3-dividend-a-high-yield-trap
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nan
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nan
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With a massive 11.3% dividend yield, the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD) immediately catches the eye as a tempting option for dividend investors. Even better, it pays out its dividend on a monthly basis. There is certainly a lot to like about this ETF for income investors. However, before investors get too excited about QYLD, there are a few other factors that they would be wise to consider as well.
What is QYLD’s Strategy?
QYLD is an $8.25 billion ETF from Global X that was launched in December 2013. According to Global X, QYLD “follows a ‘covered call’ or ‘buy-write’ strategy, in which the Fund buys the stocks in the Nasdaq 100 Index and 'writes' or 'sells' corresponding call options on the same index."
In other words, QYLD owns the mega-cap and large-cap growth stocks that populate the Nasdaq 100 (NDX), and it generates income for investors and achieves its outsized dividend yield by selling covered calls against these holdings.
QYLD's Holdings
QYLD’s underlying index is the Nasdaq 100, so the fund is made up of many of the mega-cap tech stocks and large-cap growth stocks that investors know and love. The fund is fairly diversified, holding 102 stocks. Its top 10 holdings account for just under half of its assets. See below for an overview of QYLD’s top holdings from TipRanks’ holdings screen.
As you can see above, QYLD’s top holdings skew heavily towards the "magnificent seven" stocks that have led the market higher in 2023 -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL).
It’s hard to argue with this portfolio of blue-chip tech and growth stocks, and TipRanks’ Smart Score system agrees, assigning eight of QYLD’s top 10 holdings outperform-equivalent Smart Scores. 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.
QYLD features an Outperform-equivalent ETF Smart Score of 8.
Is QYLD Stock a Buy, According to Analysts?
Turning to Wall Street, QYLD has a Moderate Buy consensus rating, as 67.71% of analyst ratings are Buys, 28.58% are Holds, and 3.70% are Sells. At $19.73, the average QYLD stock price target implies 9.4% upside potential.
QYLD's Long-Term Performance
To see how QYLD has performed over time, we can look at it over the years from a total-return perspective, which captures both price appreciation and returns from dividends. As of the end of the most recent quarter in June, QYLD has a one-year total return of 14.6%. Meanwhile, it has a three-year annualized return of 6.9% and a five-year annualized return of 5.7%.
Keep in mind that these returns include what investors gain from the large dividend payouts, so they suddenly look a lot less exciting. Since its inception at the end of 2013, QYLD has returned a slightly better 7.2% on an annualized basis.
While these returns are positive, they are somewhat lackluster, especially when compared to just investing in the Nasdaq 100, which the fund uses as its underlying index. Investors can do just that with an ETF like the Invesco QQQ Trust (NASDAQ:QQQ), which invests in the plain vanilla Nasdaq 100 without a complex strategy of selling covered calls like QYLD.
Over the past year, QQQ has had a one-year return of 32.8%, more than double that of QYLD. QQQ’s three-year annualized return is also far superior to that of QYLD at 15%. On a five-year basis, QQQ again easily surpasses the total return of QYLD with a far better 17.9% annualized return, more than tripling QYLD’s return. Finally, over a 10-year timeframe, QQQ investors have made a stellar 18.9% on an annualized basis.
So, while QYLD looks tempting with its 11.3% dividend yield, investors would have been far better off simply investing in QQQ over the years, which has vastly outperformed QYLD, even when this yield is taken into account.
The dividend yield is nice to have, but QQQ investors have grown their wealth to a far higher level than QYLD investors. Because QYLD sells covered calls against its positions (a strategy that caps upside while slightly reducing downside), it leaves upside on the table as these holdings get called away if the covered call gets hit. You can see it playing out in real time this year, as the Nasdaq has surged, which is why QQQ has more than doubled QYLD’s year-to-date total return.
Fees & Expenses
There’s also the matter of fees -- with an expense ratio of 0.60%, QYLD investors are paying a fairly high $60 on a $10,000 investment. This is higher than QQQ, where investors pay a lower 0.20%, which comes out to $20 on a $10,000 investment.
This disparity becomes more pronounced over time -- if the fees remain consistent over time and both funds return 5% per year, after a decade, the QYLD investor would pay $750 in fees, while the QQQ investor would only pay $255 over the same time frame.
Below, you can take a look at a comparison of QYLD and QQQ created with TipRanks' customizable ETF Comparison tool, which allows investors to compare up to 20 ETFs at a time across a variety of inputs.
The Takeaway
The idea of being able to combine these blue-chip tech stocks with an 11.3% dividend yield certainly has its appeal. Receiving dividend payments on a monthly basis is also appealing, and QYLD deserves credit for its rock-solid track record of paying out a monthly dividend every month for nine years and counting, so I can certainly understand why some investors like QYLD.
However, as the comparison to QQQ shows, QYLD’s strategy can leave a lot of upside on the table, and investors historically would have been far better off investing in a simple Nasdaq 100 fund like QQQ. QQQ is clearly the superior investment choice in this comparison, and it's the ETF I would choose to invest in.
Nonetheless, if an investor understands QQQ's superior value proposition and still wants the monthly income that QYLD offers, they could consider initiating a position in QQQ and a smaller position in QYLD in order to get the monthly dividend payments.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you can see above, QYLD’s top holdings skew heavily towards the "magnificent seven" stocks that have led the market higher in 2023 -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). In other words, QYLD owns the mega-cap and large-cap growth stocks that populate the Nasdaq 100 (NDX), and it generates income for investors and achieves its outsized dividend yield by selling covered calls against these holdings. Keep in mind that these returns include what investors gain from the large dividend payouts, so they suddenly look a lot less exciting.
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As you can see above, QYLD’s top holdings skew heavily towards the "magnificent seven" stocks that have led the market higher in 2023 -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). With a massive 11.3% dividend yield, the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD) immediately catches the eye as a tempting option for dividend investors. It’s hard to argue with this portfolio of blue-chip tech and growth stocks, and TipRanks’ Smart Score system agrees, assigning eight of QYLD’s top 10 holdings outperform-equivalent Smart Scores.
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As you can see above, QYLD’s top holdings skew heavily towards the "magnificent seven" stocks that have led the market higher in 2023 -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). QYLD's Holdings QYLD’s underlying index is the Nasdaq 100, so the fund is made up of many of the mega-cap tech stocks and large-cap growth stocks that investors know and love. Nonetheless, if an investor understands QQQ's superior value proposition and still wants the monthly income that QYLD offers, they could consider initiating a position in QQQ and a smaller position in QYLD in order to get the monthly dividend payments.
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As you can see above, QYLD’s top holdings skew heavily towards the "magnificent seven" stocks that have led the market higher in 2023 -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). With a massive 11.3% dividend yield, the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD) immediately catches the eye as a tempting option for dividend investors. There is certainly a lot to like about this ETF for income investors.
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2023-07-28 00:00:00 UTC
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Unusual Call Option Trade in Apple (AAPL) Worth $4,537.50K
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AAPL
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https://www.nasdaq.com/articles/unusual-call-option-trade-in-apple-aapl-worth-%244537.50k
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nan
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nan
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On July 28, 2023 at 09:39:34 ET an unusually large $4,537.50K block of Call contracts in Apple (AAPL) was bought, with a strike price of $110.00 / share, expiring in 329 day(s) (on June 21, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 5.40 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 6391 funds or institutions reporting positions in Apple. This is a decrease of 24 owner(s) or 0.37% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.94%, an increase of 37.74%. Total shares owned by institutions decreased in the last three months by 2.17% to 9,905,979K shares.
The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 0.51% Downside
As of July 6, 2023, the average one-year price target for Apple is 192.24. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents a decrease of 0.51% from its latest reported closing price of 193.22.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
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.
Key filings for this company:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On July 28, 2023 at 09:39:34 ET an unusually large $4,537.50K block of Call contracts in Apple (AAPL) was bought, with a strike price of $110.00 / share, expiring in 329 day(s) (on June 21, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 5.40 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.94%, an increase of 37.74%.
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On July 28, 2023 at 09:39:34 ET an unusually large $4,537.50K block of Call contracts in Apple (AAPL) was bought, with a strike price of $110.00 / share, expiring in 329 day(s) (on June 21, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 5.40 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.94%, an increase of 37.74%.
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On July 28, 2023 at 09:39:34 ET an unusually large $4,537.50K block of Call contracts in Apple (AAPL) was bought, with a strike price of $110.00 / share, expiring in 329 day(s) (on June 21, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 5.40 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.94%, an increase of 37.74%.
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On July 28, 2023 at 09:39:34 ET an unusually large $4,537.50K block of Call contracts in Apple (AAPL) was bought, with a strike price of $110.00 / share, expiring in 329 day(s) (on June 21, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 5.40 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.94%, an increase of 37.74%.
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14654.0
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2023-07-28 00:00:00 UTC
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3 High-Paying Unusually Active Put Options to Sell for Extra Cash This Weekend
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AAPL
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https://www.nasdaq.com/articles/3-high-paying-unusually-active-put-options-to-sell-for-extra-cash-this-weekend
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nan
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nan
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Friday, at last. Friday, at last! It doesn’t quite have the same ring as Martin Luther King’s iconic words. Perhaps that’s why I’m writing about investments rather than social justice issues.
For my final commentary of the week, I’m looking for three put options to sell for income with an equity kicker. By this, I mean that the income they’ll provide is nice, but the reason for making these potential trades is for long-term capital appreciation.
For example, in Thursday trading, Tupperware (TUP) had an unusually active put option that yielded 129% (annualized) based on its $1.85 bid price -- Jan. 19/2024 $3 strike -- but I certainly couldn’t, in good conscience, recommend TUP stock. It’s a dog with fleas.
Looking out beyond 100 days to expiration, here are three put options I think you’ll find intriguing.
Have a great weekend!
AI Fits Nvidia Like a Glove
I've been a fan of Nvidia's (NVDA) for a long time. A big reason is CEO and co-founder Jensen Huang. He always seems ahead of the curve regarding the next significant secular trend in technology. Artificial intelligence (AI) is the company's latest growth driver.
NVDA stock trades at nearly 42x sales and 50x the 2025 earnings per share estimate of $9.29. With Nvidia stock up 227% in 2023, I’m not about to pretend its stock is cheap.
While you have to pay for quality, the Jan. 17/2025 $360 put gives you the opportunity for some income while reserving a possible lower entry point in the future.
If you sold the put on Thursday at a $42.15 bid price with a $459 share price, you obtained an annualized yield of 6.2% over the next 540 days (~1.5 years). That’s not a huge income relative to what you could get selling other puts, but it’s enough to bide your time to get a better share price for NVDA stock.
In mid-July, BofA Global Research analyst Vivek Arya raised his price target for Nvidia by $50 to $550, 18% above where it currently trades. The analyst rates it a Buy.
“‘Cloud/enterprise spending on AI [is] driving demand for [Nvidia chip] accelerators,’ he wrote. ‘Within accelerators, NVDA can hold its dominance,’ he wrote, adding the company has about 75% of the market for advanced AI semiconductors,” Barron’s reported the analyst’s July 18 comments.
If you want to park some money, selling this NVDA put might be a low-risk way to generate above-average income.
Fly Me to the Moon
Second on my list is the Jan. 17/2025 $42 put for Delta Air Lines (DAL). Based on Thursday’s closing price of $45.75, its annualized yield is 6.8% ($4.60 bid), 60 basis points higher than the NVDA put.
Delta's had a good run in 2023. Its stock is up nearly 41% year-to-date. However, thanks to the pandemic, it’s down 16% over the past five years. In the airline heyday of 2019 and early 2020, DAL traded close to $60, the highest level in its history as a public company. It also briefly traded below $20 in May 2020.
Barring a deep recession (unlikely at this point), it’s got an excellent shot to test $60 in the next 12-18 months.
Deutsche Bank (DB) analysts have a Buy rating on DAL stock. In late June, it commented on some of the good news coming out of Delta’s annual Investor Day. One tidbit I hadn’t thought about: Delta is the fifth-largest e-commerce retailer in the U.S. behind some big hitters, including Amazon (AMZN) and Apple (AAPL).
“Airline demand continues to be very strong as the company heads into the peak summer travel period, as evidenced by Delta raising its June-quarter top-line guidance, from 15%-17% (year over year) to 17%-18%. Trans-Atlantic demand has been exceptionally strong,” Barron’s reported the analysts’ comments.
I’ll never forget that Delta CEO Ed Bastian put passenger safety above revenue during the pandemic by keeping the middle seat open long after its peers had opened the floodgates. You can snicker all you want about the validity of those health concerns, but people were freaking out about Covid at the time.
Of all the U.S. airlines, Delta is my favorite.
It’s More Than Humira
When anyone talks about Abbvie (ABBV) these days, there is the prerequisite mentioning of Humira, the company’s top-selling auto-immune disease drug, which has lost its U.S. exclusivity, resulting in lower year-over-year sales.
However, it reported better-than-expected quarterly results at the end of June, which has lit a fire under its stock. ABBV is up 14% since.
Analysts aren’t big on its stock. According to Barchart.com data, of the 17 who cover it, eight give it a Moderate or Strong Buy, with the rest a Hold, and a $170.21 target price, 12% higher than its current share price.
In addition to Humira, Abbvie has nine other drugs with annual revenue of over $1 billion, plus a pipeline of medicines in development.
CEO Rick Gonzalez said the following about its pipeline in its Q2 2023 conference call:
“As I look at forward-looking performance through the end of this decade and into the early part of the '30s, we're highly confident we can deliver high single-digit growth with the pipeline that we have now, and ultimately, with the assets that we have in the marketplace and how they're performing in the marketplace and their ability to be able to drive significant growth,” Gonzalez stated.
The company’s making decisions based on 2040, not the next quarter. Patient investors should be rewarded.
As for the ABBV put in question, I’m talking about the Nov. 11 $140 put and its $2.75 bid. Based on a closing price of $148.85, it’s got an annualized yield of 5.8%. Currently 8% above the strike, the $137.25 net price you’d pay if the shares are put to you is very close to its low for the past 52 weeks, so that it would make an excellent entry point.
Of course, it could keep increasing, and you’d have to settle for the $275 premium income.
More Options News from Barchart
Domino's Pizza Posts Huge Free Cash Flow Growth- Ideal for Options Traders Should You Invest in SKIN Stock? Pros & Cons Explained 3 Sectors, 3 Unusually Active Put Options to Sell Get An Income Boost From This Popular REIT
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One tidbit I hadn’t thought about: Delta is the fifth-largest e-commerce retailer in the U.S. behind some big hitters, including Amazon (AMZN) and Apple (AAPL). ‘Within accelerators, NVDA can hold its dominance,’ he wrote, adding the company has about 75% of the market for advanced AI semiconductors,” Barron’s reported the analyst’s July 18 comments. Currently 8% above the strike, the $137.25 net price you’d pay if the shares are put to you is very close to its low for the past 52 weeks, so that it would make an excellent entry point.
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One tidbit I hadn’t thought about: Delta is the fifth-largest e-commerce retailer in the U.S. behind some big hitters, including Amazon (AMZN) and Apple (AAPL). For example, in Thursday trading, Tupperware (TUP) had an unusually active put option that yielded 129% (annualized) based on its $1.85 bid price -- Jan. 19/2024 $3 strike -- but I certainly couldn’t, in good conscience, recommend TUP stock. If you sold the put on Thursday at a $42.15 bid price with a $459 share price, you obtained an annualized yield of 6.2% over the next 540 days (~1.5 years).
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One tidbit I hadn’t thought about: Delta is the fifth-largest e-commerce retailer in the U.S. behind some big hitters, including Amazon (AMZN) and Apple (AAPL). For example, in Thursday trading, Tupperware (TUP) had an unusually active put option that yielded 129% (annualized) based on its $1.85 bid price -- Jan. 19/2024 $3 strike -- but I certainly couldn’t, in good conscience, recommend TUP stock. If you sold the put on Thursday at a $42.15 bid price with a $459 share price, you obtained an annualized yield of 6.2% over the next 540 days (~1.5 years).
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One tidbit I hadn’t thought about: Delta is the fifth-largest e-commerce retailer in the U.S. behind some big hitters, including Amazon (AMZN) and Apple (AAPL). That’s not a huge income relative to what you could get selling other puts, but it’s enough to bide your time to get a better share price for NVDA stock. Analysts aren’t big on its stock.
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14655.0
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2023-07-28 00:00:00 UTC
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Set-and-Forget Picks: The 3 Best Defensive Stocks for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/set-and-forget-picks%3A-the-3-best-defensive-stocks-for-the-next-decade
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The defense sector is expected to deliver steady growth throughout the decade, with increasing global defense spending and geopolitical tensions driving demand. This presents an opportunity for investors in undervalued defense stocks.
For long-term investors seeking stability and growth, defensive stocks offer a strong strategy. These stocks can provide steady growth and protection during market downturns. Here are three top defensive stocks to consider for your portfolio right now.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple’s (NASDAQ:AAPL) stock is surging with significant momentum. It recently reached an all-time high of around $200 on a split-adjusted basis, becoming the only publicly traded company with a $3 trillion market capitalization, making it the world’s most valuable company. The strong demand for its iconic iPhone and the upcoming launch of a new augmented reality headset is driving this success.
Apple’s stock experienced a slight increase on Wednesday after a Bloomberg News report mentioned the company’s internal development of an artificial intelligence large language model. The move indicates Apple’s interest in AI technology for potential integration into upcoming products. Although it’s typically referred to as “machine learning,” the company already has a prototype chatbot they’re calling “Apple GPT.” Over the past year, there has been growing interest in large language models, an AI technology that can generate human-like text or code. Access to the chatbot is restricted within Apple, and there are speculations that the company may make a significant AI announcement next year. AAPL stock has surged 56% this year, making it attractive to long-term investors.
Berkshire Hathaway (BRK-B)
Source: IgorGolovniov / Shutterstock.com
Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) stands as an impressive force in the investment world. With a market cap of over $740 billion, it has the potential to reach the $1 trillion milestone, signifying substantial growth for the company. On July 17, Berkshire Hathaway stock reached a high point of $523,500 per share, hitting $524,820 earlier that day. Warren Buffett sold 70% of the firm’s Activision Blizzard (NASDAQ:ATVI) stake amid the company’s remarkable growth and the proposed acquisition by Microsoft (NASDAQ:MSFT).
Berkshire Hathaway has been actively buying back its own shares, with $4.4 billion repurchased in the first quarter alone. Previously, the ability to repurchase stock was limited, but since 2017, the board allows repurchases if Buffett and Munger believe the stock is undervalued. With significant cash reserves of over $25 billion, Berkshire has the means to continue repurchasing shares.
Additionally, Berkshire Hathaway’s appeal lies in its strong track record and diverse holdings, providing stability amid market volatility. While the exact timing of reaching the $1 trillion club remains uncertain, the company’s well-curated portfolio is steadily progressing toward this significant milestone, benefiting current and potential investors alike.
Restaurant Brands (QSR)
Source: Shutterstock
In Q1, Restaurant Brands (NYSE:QSR) exceeded earnings expectations, reporting a revenue increase of 9.7% to $1.59 billion, surpassing estimates by $30 million. Earnings per share were 75 cents, beating predictions by 11 cents. Despite inflation challenges, the company showed strong growth in comparable and system-wide sales, making a positive start to the year.
Indeed, QSR stock has maintained its gains, exhibiting a strong uptrend on the charts. The price surged significantly over the past months, trading above key moving averages and showing potential for further growth beyond $100. Buyers are accumulating, indicating a bullish trend.
Restaurant Brands International, Inc. is a holding company that operates quick-service restaurants under three segments: Tim Hortons, Burger King, and Popeyes. The company is based in Toronto, Canada, and its stock was trading at $77.78 with a 0.67% intraday gain and a market cap of $35.161 billion at the time of writing. The trading volume has been on the incline as of late, suggesting increased bullishness from large investors in recent days. Perhaps small money investors would do well to follow the big money into this name.
On the date of publication, Chris MacDonald has a LONG position in AAPL, BRK-B, QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post Set-and-Forget Picks: The 3 Best Defensive Stocks for the Next Decade appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock is surging with significant momentum. AAPL stock has surged 56% this year, making it attractive to long-term investors. On the date of publication, Chris MacDonald has a LONG position in AAPL, BRK-B, QSR.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock is surging with significant momentum. AAPL stock has surged 56% this year, making it attractive to long-term investors. On the date of publication, Chris MacDonald has a LONG position in AAPL, BRK-B, QSR.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock is surging with significant momentum. AAPL stock has surged 56% this year, making it attractive to long-term investors. On the date of publication, Chris MacDonald has a LONG position in AAPL, BRK-B, QSR.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock is surging with significant momentum. AAPL stock has surged 56% this year, making it attractive to long-term investors. On the date of publication, Chris MacDonald has a LONG position in AAPL, BRK-B, QSR.
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14656.0
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2023-07-28 00:00:00 UTC
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Four of the “Magnificent Seven” Report Earnings – Here’s What They Say About AI
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AAPL
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https://www.nasdaq.com/articles/four-of-the-magnificent-seven-report-earnings-heres-what-they-say-about-ai
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Before we dive in today, I want to thank everyone who joined Luke Lango, Eric Fry, and myself last night for our AI Impact Event, where we talked about everything AI – and, most importantly, how to profit from the investment opportunities that come with it.
If you missed last night’s event, simply click here for the replay.
*******
If you’re a longtime fan of the Olympics, you might remember the “Magnificent Seven.”
And if you don’t…
The “Magnificent Seven” was the 1996 United States Olympic women’s gymnastics team. Seven, for the team’s seven members, and magnificent because the team won the first-ever gold medal for the United States in the women’s gymnastics team competition.
And the team clinched the win in a spectacular fashion, with one team member performing a near-perfect vault on an injured ankle.
The members were all later inducted into the United States Olympic Hall of Fame.
But you might have heard this phrase used again recently, albeit for something else…
The “Magnificent Seven” is now used to describe the seven current biggest tech stocks (some of which used to be a part of the FAANG or MAMAA groups).
They are:
Amazon.com, Inc. (AMZN)
Alphabet Inc. (GOOG)
Apple Inc. (AAPL)
Meta Platforms, Inc. (META)
Microsoft Corporation (MSFT)
NVIDIA Corporation (NVDA)
Tesla, Inc. (TSLA)
These seven stocks, like the gold-medal-winning “Magnificent Seven,” have achieved greatness in a spectacular fashion: For the first half of the year, the S&P 500 soared 15.9% — and these stocks accounted for 73% of those gains.
Four out of the seven stocks reported earnings over the last two weeks. So, in today’s Market 360, let’s take a look at how their earnings stacked up and what each had to say about artificial intelligence (AI). Then, I’ll share where you can find the best AI stocks.
Let’s dive in…
Tesla, Inc – Reported Wednesday, July 19
For the second-quarter, Telsa reported impressive sales, earnings and operating margins.
The company reported earnings per share of $0.91, beating analysts’ expectations of earnings per share of $0.82. This is up from earnings per share of $0.76 in the same quarter last year. Revenue rose 47% year-over-year to $24.93 billion, up from revenue of $16.93 billion a year ago. This topped analysts’ estimates for $24.47 billion.
However, Elon Musk cautioned investors that further price cuts may be necessary, despite price cuts of 14% to 28% this year on its electric vehicles (EVs). Furthermore, Musk also stated that Tesla would scale back its production in the third quarter to update its factories. He said, “We continue to target 1.8 million vehicle deliveries this year, but expect Q3 production will be a little bit down because we’ve got summer shutdowns for a lot of factory upgrades.”
Finally, Musk said that Tesla is investing heavily into supercomputers to develop autonomous driving based on all the data that its cars collect on the road.
The company’s shareholder deck states that Tesla’s research and development costs rose to $943 million in pursuit of the company’s “commitment to being at the forefront of AI development entered a new chapter with the start of production of Dojo training computers.”
Tesla Dojo is a training supercomputer designed by the company that will be used to improve its Full Self-Driving (FSD) advanced driver-assistance system.
Musk’s comments about Tesla’s autonomous driving development apparently hurt the stock, though, since the company abandoned the LIDAR (Light Detection and Ranging) system. LIDAR is a forward infrared radar. It’s used to see animals and people and to avoid collisions.
So, no matter how much data Tesla has, a LIDAR system is superior to Tesla’s camera system.
The stock fell nearly 10% on Thursday in the wake of its earnings report.
Microsoft Corporation – Reported Tuesday, July 25
Earnings per share rose 21% year-over-year to $2.69, up from earnings per share of $2.23 in the same period last year. Analysts were expecting earnings of $2.55 per share, so the company topped earnings estimates by 5.5%. Revenue climbed 8% year-over-year to $56.19 billion, up from revenue of$51.87 billion, and beating revenue expectations for $55.47 billion.
Revenue from Azure, Microsoft’s cloud computing platform, and other cloud services revenue, increased 26% during the quarter. Analysts expected 25% growth.
In the company’searnings call Amy Hood, Microsoft’s finance chief, said:
When it comes to AI, we are seeing a paradigm shift as the world’s large AI models become powerful platforms themselves. With our Azure OpenAI Service, a diverse set of customers, from HSBC, PwC, and RTL Group, to Shell and Wipro, are applying language models to advanced scenarios like content and code generation.
Looking forward, Microsoft called for fiscal first-quarter revenue between $53.8 billion to $54.8 billion. This fell short of the $54.94 billion expected by analysts, so, shares of the company slipped nearly 4% on Wednesday.
Alphabet Inc. – Reported Tuesday, July 25
Second-quarter earnings per share increased 19% year-over-year to $1.44, up from earnings per share of $1.21 a year ago. This beat analysts’ earnings expectations for $1.34 per share. Revenue climbed 7% year-over-year to $74.6 billion, up from revenue of $69.7 billion in the same quarter a year ago. Analysts had called for revenue of $72.82 billion.
I should add that Google Cloud sales, which include infrastructure and productivity apps, increased 28% year-over-year to $8.03 billion, which helped boost Alphabet’s revenue growth.
In regard to AI, Sundar Pichai, CEO of Alphabet and Google, said on the company’s conference call:
To take advantage of the AI opportunities ahead, we’ve been sharpening our focus as a company: investing responsibly with great discipline, and finding areas where we can operate more cost effectively. We’ve made good progress in data center machine efficiency which will pay dividends as we continue to invest in AI.
Bard, Google’s AI chatbot, is now available in now available throughout most of the world and can be used in over 40 languages.
Since the release of its earnings report, shares of the stock have hit a slew of new 52-week highs, including one this morning.
Meta Platforms, Inc. – Reported Wednesday, July 26
For the second quarter, the company reported earnings per share of $2.98, which was higher than analysts’ estimates of earnings of $2.91 per share and earnings per share of $2.46 in the same quarter of last year. Revenue increased 11% year-over-year to $32 billion, topping analysts’ estimates for $31.12 billion.
In a statement, Meta CEO Mark Zuckerberg said:
Moving onto our product roadmap… the two technological waves that we’re riding are AI in the near term and the metaverse over the longer term. Investments that we’ve made over the years in AI, including the billions of dollars we’ve spent on AI infrastructure, are clearly paying off across our ranking and recommendation systems and improving engagement and monetization.
Looking forward, Meta expects third-quarter revenue between $32 billion and $34.5 billion, or 15% revenue growth. This is higher than analysts’ estimates for $31.3 billion.
The stock jumped 9% to a new 52-week high on Thursday and then hit another 52-week high today.
Are There Better AI Plays?
It’s clear that these companies are going “all in” on AI, but here’s the truth: There are other AI investment opportunities with bigger upside potential than the Magnificent Seven.
So, on Thursday, I sat down with my colleagues Luke Lango and Eric Fry for a special AI Impact Event to discuss where to find the biggest winners. We also gave away a free special recommendation. It’s not a normal recommendation… but that’s what makes it so potentially lucrative.
Plus, we shared how to access our handpicked list of nine AI stocks that could go on to disrupt entire industries and, as a result, go up more than any stock over the next 12-36 months.
For full details, click here and watch a replay of our AI Impact Event now.
Sincerely,
Louis Navellier
Analyst, Market 360
P.S. On Thursday, I sat down with my colleagues Luke Lango and Eric Fry to expose a major development unfolding in AI…
A development is about to disrupt the entire financial markets and blindside millions of investors. Hundreds of stocks are about to lose 50% or more of their value in the blink of an eye.
Stocks that have strong market positions today could even find themselves filing for bankruptcy soon. In 2023, a year which has been defined by AI, has seen corporate bankruptcies reach a record 12-year high.
But this is just the beginning.
This is why we dropped everything to hold our AI Impact Event.
If you want to get our step-by-step playbook for avoiding the destruction that’s about to occur and learn about the small unique group of stocks that could jump 10X or more as this AI development unfolds, watch the replay of our AI Impact Event now.
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)
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 Four of the “Magnificent Seven” Report Earnings – Here’s What They Say About AI 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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They are: Amazon.com, Inc. (AMZN) Alphabet Inc. (GOOG) Apple Inc. (AAPL) Meta Platforms, Inc. (META) Microsoft Corporation (MSFT) NVIDIA Corporation (NVDA) Tesla, Inc. (TSLA) These seven stocks, like the gold-medal-winning “Magnificent Seven,” have achieved greatness in a spectacular fashion: For the first half of the year, the S&P 500 soared 15.9% — and these stocks accounted for 73% of those gains. He said, “We continue to target 1.8 million vehicle deliveries this year, but expect Q3 production will be a little bit down because we’ve got summer shutdowns for a lot of factory upgrades.” Finally, Musk said that Tesla is investing heavily into supercomputers to develop autonomous driving based on all the data that its cars collect on the road. Musk’s comments about Tesla’s autonomous driving development apparently hurt the stock, though, since the company abandoned the LIDAR (Light Detection and Ranging) system.
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They are: Amazon.com, Inc. (AMZN) Alphabet Inc. (GOOG) Apple Inc. (AAPL) Meta Platforms, Inc. (META) Microsoft Corporation (MSFT) NVIDIA Corporation (NVDA) Tesla, Inc. (TSLA) These seven stocks, like the gold-medal-winning “Magnificent Seven,” have achieved greatness in a spectacular fashion: For the first half of the year, the S&P 500 soared 15.9% — and these stocks accounted for 73% of those gains. Alphabet Inc. – Reported Tuesday, July 25 Second-quarter earnings per share increased 19% year-over-year to $1.44, up from earnings per share of $1.21 a year ago. Meta Platforms, Inc. – Reported Wednesday, July 26 For the second quarter, the company reported earnings per share of $2.98, which was higher than analysts’ estimates of earnings of $2.91 per share and earnings per share of $2.46 in the same quarter of last year.
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They are: Amazon.com, Inc. (AMZN) Alphabet Inc. (GOOG) Apple Inc. (AAPL) Meta Platforms, Inc. (META) Microsoft Corporation (MSFT) NVIDIA Corporation (NVDA) Tesla, Inc. (TSLA) These seven stocks, like the gold-medal-winning “Magnificent Seven,” have achieved greatness in a spectacular fashion: For the first half of the year, the S&P 500 soared 15.9% — and these stocks accounted for 73% of those gains. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Before we dive in today, I want to thank everyone who joined Luke Lango, Eric Fry, and myself last night for our AI Impact Event, where we talked about everything AI – and, most importantly, how to profit from the investment opportunities that come with it. Revenue climbed 8% year-over-year to $56.19 billion, up from revenue of$51.87 billion, and beating revenue expectations for $55.47 billion.
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They are: Amazon.com, Inc. (AMZN) Alphabet Inc. (GOOG) Apple Inc. (AAPL) Meta Platforms, Inc. (META) Microsoft Corporation (MSFT) NVIDIA Corporation (NVDA) Tesla, Inc. (TSLA) These seven stocks, like the gold-medal-winning “Magnificent Seven,” have achieved greatness in a spectacular fashion: For the first half of the year, the S&P 500 soared 15.9% — and these stocks accounted for 73% of those gains. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Before we dive in today, I want to thank everyone who joined Luke Lango, Eric Fry, and myself last night for our AI Impact Event, where we talked about everything AI – and, most importantly, how to profit from the investment opportunities that come with it. Meta Platforms, Inc. – Reported Wednesday, July 26 For the second quarter, the company reported earnings per share of $2.98, which was higher than analysts’ estimates of earnings of $2.91 per share and earnings per share of $2.46 in the same quarter of last year.
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2023-07-28 00:00:00 UTC
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The Best Stocks to Invest $50,000 In Right Now
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AAPL
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https://www.nasdaq.com/articles/the-best-stocks-to-invest-%2450000-in-right-now-16
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nan
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nan
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Investing is a long-term pursuit. The best way to accumulate excellent returns is to buy great businesses and hold their stocks over many years. Using this approach, even relatively small initial purchases, say $50,000, can translate into substantial portions of a retirement fund in the long run. Long-term patience is a key component of most successful wealth-building strategies, after all.
With that positive prospect in mind, let's look at a few attractive stocks that appear to have excellent fundamentals as long-term holds. Read on for some good reasons to buy Apple (NASDAQ: AAPL), Palo Alto Networks (NASDAQ: PANW), and Shopify (NYSE: SHOP) stocks right now.
1. Apple
Apple needs no introduction as a tech stock, given that its brand dominates high-end consumer tech niches from smartphones to tablets to wearables. Yet what many investors often miss about this business is its incredible financial strength. Apple's stock has the largest market cap on the market for good reason -- nobody can match Cupertino's incredible cash-generating prowess.
Consider that Apple's operating cash flow in the most recent quarter was $29 billion, giving CEO Tim Cook and his team ample funds they could direct toward growth initiatives and toward the growing dividend. Profit margin clocks in at nearly 30% of sales .
The company's profitability should expand over time, too, as its business tilts more toward services such as its music, fitness, and payments processing platforms. With a high likelihood of steady sales growth, rising profits, and expanding cash returns, an Apple investment can be a positive influence in any long-term-focused portfolio.
2. Palo Alto Networks
There should be room in every portfolio for more concentrated exposure to an attractive growth niche. Consider Palo Alto Networks to fill that space for you. The software-as-a-service company is entrenched in two attractive areas, cybersecurity and artificial intelligence (AI), that are likely to see fantastic gains over the next few decades. And its most recent earnings updates show that it can compete well in a crowded industry that includes deep-pocketed heavyweights like Microsoft.
Palo Alto Networks only recently established steady profitability, and so investors don't yet have a clear idea where its annual earnings power will land. But the company has a good shot at translating its market share gains into strong profits over the years, with a good chance of boosting shareholder returns along the way.
3. Shopify
Shopify stock has trounced the market so far in 2023, but investors shouldn't let those gains scare them away from this growth stock. The e-commerce platform specialist has a good hold on a growing industry, as it accounts for roughly 10% of digital sales in the U.S. market. That share is likely to expand over time even as the company pushes deeper into in-person retailing through services such as its point-of-sale platform.
Wall Street is excited about Shopify's potential to boost profitability now that sales growth is accelerating, and the company has exited the costly logistics business. Look for positive signs in these areas when Shopify announces Q2 results in early August. Taken together, rising sales growth plus wider margins should add up to stronger bottom-line profits.
But the bigger returns will come to investors who hold the stock well beyond just one or two quarters. In the next decade, Shopify is aiming to widen its service portfolio, allowing it to charge more to buyers who find value in bundling those services into one big contract. Looking back in a few years, investors will probably be glad they held this stock while that profitable process played itself out.
Find out why Shopify 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. Shopify is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of July 17, 2023
Demitri Kalogeropoulos has positions in Apple and Shopify. The Motley Fool has positions in and recommends Apple, Microsoft, Palo Alto Networks, and Shopify. 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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Read on for some good reasons to buy Apple (NASDAQ: AAPL), Palo Alto Networks (NASDAQ: PANW), and Shopify (NYSE: SHOP) stocks right now. Consider that Apple's operating cash flow in the most recent quarter was $29 billion, giving CEO Tim Cook and his team ample funds they could direct toward growth initiatives and toward the growing dividend. With a high likelihood of steady sales growth, rising profits, and expanding cash returns, an Apple investment can be a positive influence in any long-term-focused portfolio.
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Read on for some good reasons to buy Apple (NASDAQ: AAPL), Palo Alto Networks (NASDAQ: PANW), and Shopify (NYSE: SHOP) stocks right now. With a high likelihood of steady sales growth, rising profits, and expanding cash returns, an Apple investment can be a positive influence in any long-term-focused portfolio. The Motley Fool has positions in and recommends Apple, Microsoft, Palo Alto Networks, and Shopify.
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Read on for some good reasons to buy Apple (NASDAQ: AAPL), Palo Alto Networks (NASDAQ: PANW), and Shopify (NYSE: SHOP) stocks right now. With a high likelihood of steady sales growth, rising profits, and expanding cash returns, an Apple investment can be a positive influence in any long-term-focused portfolio. Shopify Shopify stock has trounced the market so far in 2023, but investors shouldn't let those gains scare them away from this growth stock.
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Read on for some good reasons to buy Apple (NASDAQ: AAPL), Palo Alto Networks (NASDAQ: PANW), and Shopify (NYSE: SHOP) stocks right now. Apple's stock has the largest market cap on the market for good reason -- nobody can match Cupertino's incredible cash-generating prowess. Shopify Shopify stock has trounced the market so far in 2023, but investors shouldn't let those gains scare them away from this growth stock.
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14658.0
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2023-07-28 00:00:00 UTC
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Incoming Stock Pullback Reveals An Attractive Buying Opportunity
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AAPL
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https://www.nasdaq.com/articles/incoming-stock-pullback-reveals-an-attractive-buying-opportunity
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Yesterday, for the first time in 14 trading days, the stock market dropped.
The bad news? This drop isn’t over yet. There’s more short-term pain to come.
The good news? When all is said and done, this drop will be short and small.
And the best news? We’re confident that in the next two to three weeks, this incoming drop will offer the buying opportunity of a lifetime.
That’s the conclusion of our latest technical work, which we think provides the best guide for what may happen to stocks in the short term.
Here’s the situation…
This Stock Pullback Is an Opportunity
We’re in a new bull market, and stocks will go meaningfully higher over the next few months and even years. But stocks don’t go up in straight lines, not even in bull markets. And currently, the market is overheated. It needs to consolidate a bit. After that pullback, we can take the next leg higher in this rally.
The S&P 500 has now closed more than 4.5% above its 50-day moving average for 12 straight trading sessions. And in fact, during that stretch, the market’s relative strength index has never dropped below 67.
In other words, we’ve gone through 12 consecutive trading sessions wherein the S&P 500 traded more than 4.5% above its 50-day moving average and reported an RSI of 67-plus.
Those are incredibly extended technical conditions. It turns out they are pretty rare, too. Indeed, since 1968, we’ve only seen similar technical conditions 21 times before.
Now, here’s the important part: Whenever we see these uniquely extended technical conditions, stocks usually retreat over the next month, then soar over the next one to three years.
Specifically, around 76% of the time, stocks dropped in the month after the market hit these exact extended conditions. The average size of the pullback? Just over 2%.
More than 85% of the time, stocks rose over the following year, for an average return of 16%. And more than 95% of the time, stocks were higher three years later, with an average return of 27%.
In other words, the data says that when the market hits the same stretched conditions it hit yesterday, stocks tend to drop about 2% before rallying big over the next one to three years.
The investment implication?
Let stocks drop over the next few weeks. Then, buy the dip with confidence.
The Final Word
But make sure you buy the right stocks going forward.
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 already 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 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.
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The post Incoming Stock Pullback Reveals An Attractive Buying Opportunity 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. Now, here’s the important part: Whenever we see these uniquely extended technical conditions, stocks usually retreat over the next month, then soar over the next one to three years. Specifically, around 76% of the time, stocks dropped in the month after the market hit these exact extended conditions.
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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 Yesterday, for the first time in 14 trading days, the stock market dropped. Specifically, around 76% of the time, stocks dropped in the month after the market hit these exact extended conditions.
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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 Yesterday, for the first time in 14 trading days, the stock market dropped. Here’s the situation… This Stock Pullback Is an Opportunity We’re in a new bull market, and stocks will go meaningfully higher over the next few months and even years.
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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 Yesterday, for the first time in 14 trading days, the stock market dropped. One great prospective investment is the very company that started this whole stock boom – OpenAI, the creator of ChatGPT.
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14659.0
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2023-07-28 00:00:00 UTC
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Green Shoots Emerging From the Earnings Landscape
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AAPL
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https://www.nasdaq.com/articles/green-shoots-emerging-from-the-earnings-landscape
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nan
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nan
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With a little over half of June-quarter results already out, we can confidently call the overall earnings picture reassuringly stable and resilient.
Earnings aren’t great, but no one expected them to be so. Instead, many in the market feared a material deterioration in the outlook that would show up in negative guidance and lowered estimates. While we have seen a few reports with downbeat guidance, the overall tone and substance of guidance and management commentary have been favorable.
The net effect of this is a very stable earnings outlook, even though estimates in the aggregate are still coming down due to a weakening revisions trend for the Energy sector.
You can see this by comparing earnings estimates for 2023 Q3 as well as full-year 2023 today to where they stood at the start of July and April.
The expectation today is for 2023 Q3 earnings to be down -2.1% from the same period last year on +0.2% higher revenues. If we exclude the Energy sector, Q3 earnings would be up +3.3% on +3% higher revenues.
One month ago, on June 27th, the expectation was for Q3 earnings to be down -1.4% on +0.7% higher revenues. Q3 earnings were expected to be up +3.4% on an ex-Energy basis on June 27th.
Four months back, on March 29th, the expectation was for Q3 earnings to be up +0.6% on +0.7% higher revenues. Q3 earnings were expected to be up +4.4% on an ex-Energy basis on March 29th.
This discussion of evolving aggregate Q3 earnings estimates reflects that while analysts have cut their estimates for the period, a big part of the negative revisions is due to the Energy sector.
While estimates in the aggregate for the remaining 15 sectors of the S&P 500 index are essentially unchanged over the past month, there are plenty of cross-currents at the individual sector levels. Specifically, estimates for the Tech, Construction, Autos, Transportation, and Utilities sectors have increased while the same for the other sectors have modestly come down.
Regular readers of our earnings commentary would be familiar with these revisions trends, as we have been flagging them since the start of 2023 Q2. We noticed a significant stabilization in the revisions trend since the beginning of April, which was in contrast to the persistently negative revisions trend that had been in place for about a year prior.
To get a sense of what is currently expected, take a look at the chart below that shows current earnings and revenue growth expectations for the S&P 500 index for 2023 Q2, the following three quarters, and actual results for the preceding four quarters.
Image Source: Zacks Investment Research
As you can see in this chart, Q2 is on track to be the third consecutive quarter of earnings declines and the first quarter of declining revenues. As noted earlier, a big part of the earnings and revenue weakness is due to the Energy sector. Excluding the Energy sector drag, Q2 earnings would be down -2.9% on +3.6% higher revenues.
The chart below shows the year-over-year change in net income margins for the S&P 500 index.
Image Source: Zacks Investment Research
As you can see above, 2023 Q2 will be the 6th consecutive quarter of declining margins for the S&P 500 index.
Margins in Q2 are expected to be below the year-earlier level for 10 of the 16 Zacks sectors, with the biggest margin pressure expected to be in the Energy, Medical, Basic Materials, and Construction sectors.
With the earnings focus lately on the Tech sector, it is instructive to see how much distance has been covered on the margins front in this vital sector.
Image Source: Zacks Investment Research
On the positive side, margins are on track to be above the year-earlier level for six sectors, with notable gains in the Consumer Discretionary, Finance, and Transportation sectors.
The chart below shows the earnings and revenue growth picture on an annual basis.
Image Source: Zacks Investment Research
As noted earlier, the estimate revisions trend has notably stabilized since the start of Q2. In the aggregate, S&P 500 earnings estimates for 2023 have declined -1.6% since the beginning of April but only -0.5% on an ex-Energy basis. Importantly, estimates for sectors like Tech, Construction, Autos, and Transportation have increased in that timeframe.
We see this favorable turn in the revisions trend as green shoots in the overall earnings landscape and indicative of better days ahead.
Q2 Earnings Scorecard
As of Friday, July 28th, the Q2 earnings season crossed the halfway mark, with results from 254 S&P 500 members already out. We have a full reporting docket this upcoming week, with more than 1100 companies reporting results, including 169 S&P 500 members. By the end of this week, we will have seen Q2 results from almost 85% of the index members.
The notable companies reporting this week include Apple AAPL, Amazon AMZN, Starbucks SBUX, Uber UBER, and others.
Apple’s Q2 earnings are expected to be -4.1% below the year-earlier level on -2% lower revenues. The stock has been a standout performer this year, up +50.1% vs. +19.4% for the S&P 500 index. It has been a while since Apple shares were down following a quarterly release. In fact, the last time the stock reacted negatively to a quarterly release was two years ago, in July 2021.
Uber, which reports before the market’s open on Tuesday, August 1st, has done even better than Apple this year, up +95.6% in the year-to-date period. This is expected to be a milestone quarter for Uber, with the current consensus EPS estimate at breakeven, up from the year-earlier period’s -$1.33 loss.
Total Q2 earnings for the 254 S&P 500 members are down -3.4% from the same period last year on +1.7% higher revenues, with 80.3% beating EPS estimates and 64.6% beating revenue estimates.
The comparison charts nevertheless put the Q2 results from these 254 index members with what we had seen from the same group of companies in other recent periods.
Image Source: Zacks Investment Research
The comparison charts below put the Q2 earnings and revenue growth rates for these 254 index members in a historical context.
Image Source: Zacks Investment Research
The Apple release after the market’s close on Thursday, August 3rd, will keep the Tech sector in focus this week as well. Through Friday, July 28th, we have seen Q2 results from 52% of the sector’s total market capitalization in the index. Total earnings for these Tech companies are up +0.4% from the same period last year on +1.5% higher revenues, with 93.8% beating EPS estimates and 75% beating revenue estimates.
This is a better performance from these Tech companies relative to other recent periods, as the comparison charts below show.
Image Source: Zacks Investment Research
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Strong Tech Results Reflect a Resilient Earnings Picture
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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.
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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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The notable companies reporting this week include Apple AAPL, Amazon AMZN, Starbucks SBUX, Uber UBER, and others. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. The net effect of this is a very stable earnings outlook, even though estimates in the aggregate are still coming down due to a weakening revisions trend for the Energy sector.
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The notable companies reporting this week include Apple AAPL, Amazon AMZN, Starbucks SBUX, Uber UBER, and others. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research As noted earlier, the estimate revisions trend has notably stabilized since the start of Q2.
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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 Starbucks Corporation (SBUX) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. The notable companies reporting this week include Apple AAPL, Amazon AMZN, Starbucks SBUX, Uber UBER, and others. Total earnings for these Tech companies are up +0.4% from the same period last year on +1.5% higher revenues, with 93.8% beating EPS estimates and 75% beating revenue estimates.
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The notable companies reporting this week include Apple AAPL, Amazon AMZN, Starbucks SBUX, Uber UBER, and others. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. The net effect of this is a very stable earnings outlook, even though estimates in the aggregate are still coming down due to a weakening revisions trend for the Energy sector.
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14660.0
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2023-07-28 00:00:00 UTC
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2 Top Stocks That Just Went on Sale
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AAPL
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https://www.nasdaq.com/articles/2-top-stocks-that-just-went-on-sale
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The market has come roaring back in 2023, led by the technology sector, but not all areas have outperformed. In fact, there are some sectors, like financials , that have struggled. Similarly, some individual companies in other sectors haven't fully recovered. So if you are willing to do some digging, you can find some bargains.
Here are two stocks that just went on sale that are worth considering.
1. Walt Disney
Walt Disney (NYSE: DIS) has had a rough couple of years, with its stock price dropping 15% in 2021 and 44% in 2022. It is currently treading water in 2023, down about 1% year to date as of July 24.
At $85 per share, it is near its lowest level in close to 10 years -- although it did dip below that briefly at the start of the pandemic, which took a bite out of its theme parks. But that business has bounced back nicely, as has its movie business. However, its TV networks and streaming services have struggled during this transition from cable to streaming. The streaming businesses, particularly, have been hampered by high expenses to get this business off the ground.
But Disney CEO Bob Iger has been making some moves to turn things around for the streaming business, starting with aggressively cutting costs and launching an ad-service tier. Iger expects this business to be profitable in fiscal year 2024. The TV and streaming businesses will indeed go through changes, as the company plans to launch a single app for Hulu and Disney+, is looking for strategic partners for ESPN, and may sell off its TV channels, like ABC.
So where does it go from here? Well, Disney probably has the best brand in the entertainment business and one of the best brands in the world, period, along with a strategy to fix what ails it. What makes Disney even more compelling is its valuation, as its forward price-to-earnings (P/E) ratio is down to 16, from 24 at the end of March. In the meantime, its five year P/E-to-growth (PEG) ratio is 0.77, which means analysts estimate it's undervalued compared to future growth potential, and its price-to-sales (P/S) ratio is just 1.8, down from 2.2 in March.
Look for more details on these initiatives when fiscal third-quarter earnings are released on Aug. 9, but for this stock to be trading at this price, it definitely warrants a close look.
2. PayPal
Another great brand that is poised to make a comeback is PayPal (NASDAQ: PYPL), the digital payments leader. It was not long ago that PayPal was on top of the world. Post-pandemic, its revenue and active users soared as more people worked and shopped from home. The stock price skyrocketed to over $308 per share in July 2021, but since then has fallen 76% to its current $73 per-share price.
There were several contributing factors, including too many acquisitions that haven't panned out (Honey and Paidy, to name two); a return to normalcy after the pandemic shutdowns; growing competition from Apple Pay and others; the end of its exclusive deal with eBay; and high inflation, to name a few.
CEO Dan Schulman's stated goal of reaching 750 million active users by the end of 2025 and ultimately reaching 1 billion active users had to be walked back. After the first quarter, PayPal had 433 million active users, which was actually a 2 million drop from the previous quarter.
As a result, PayPal's valuation has dropped, with a P/E ratio of 31, down from 36 at the end of 2022, and a PEG ratio of just 0.66 -- down from 1.4 at the start of the year. A PEG ratio below 1 typically means the stock is undervalued based on analyst estimates of its future growth expectations.
So, does a lower valuation make it a buy? Not always, but in this case, it might be a good time to consider PayPal for a few reasons. First, PayPal is in the process of hiring a new CEO to replace Schulman, who is stepping down at the end of the year. Schulman helped drive tremendous growth for PayPal, but new blood could help refocus the business and drive it forward. Hopefully, there is renewed investor excitement around the new hire, who should be named sometime this year.
Also, PayPal remains a good business. Even with some of the capital blunders, a struggling macroeconomic environment, and increasing competition, it still has a great brand and remains the leader in the payments business with both PayPal and Venmo. In addition, it has consistently been able to increase total payment volume (TPV) and revenue, even through the rough patches.
Finally, PayPal has solid margins and a ton of cash. It has generated $5.8 billion in operating cash flow and $3.4 billion in free cash flow over the past 12 months, giving it lots to work with. PayPal reports its fiscal Q2 earnings on Aug. 2, so you may want to wait for that for some more visibility on the CEO and active users. But definitely put this one on your radar, as it is a good company on sale.
10 stocks we like better than Walt Disney
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Walt Disney 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 17, 2023
Dave Kovaleski has positions in Walt Disney. The Motley Fool has positions in and recommends Apple, PayPal, and Walt Disney. The Motley Fool recommends eBay and recommends the following options: long January 2024 $145 calls on Walt Disney, short January 2024 $155 calls on Walt Disney, short July 2023 $47.50 calls on eBay, and short September 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But Disney CEO Bob Iger has been making some moves to turn things around for the streaming business, starting with aggressively cutting costs and launching an ad-service tier. A PEG ratio below 1 typically means the stock is undervalued based on analyst estimates of its future growth expectations. Even with some of the capital blunders, a struggling macroeconomic environment, and increasing competition, it still has a great brand and remains the leader in the payments business with both PayPal and Venmo.
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In the meantime, its five year P/E-to-growth (PEG) ratio is 0.77, which means analysts estimate it's undervalued compared to future growth potential, and its price-to-sales (P/S) ratio is just 1.8, down from 2.2 in March. CEO Dan Schulman's stated goal of reaching 750 million active users by the end of 2025 and ultimately reaching 1 billion active users had to be walked back. The Motley Fool recommends eBay and recommends the following options: long January 2024 $145 calls on Walt Disney, short January 2024 $155 calls on Walt Disney, short July 2023 $47.50 calls on eBay, and short September 2023 $67.50 puts on PayPal.
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Walt Disney Walt Disney (NYSE: DIS) has had a rough couple of years, with its stock price dropping 15% in 2021 and 44% in 2022. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Dave Kovaleski has positions in Walt Disney. The Motley Fool recommends eBay and recommends the following options: long January 2024 $145 calls on Walt Disney, short January 2024 $155 calls on Walt Disney, short July 2023 $47.50 calls on eBay, and short September 2023 $67.50 puts on PayPal.
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As a result, PayPal's valuation has dropped, with a P/E ratio of 31, down from 36 at the end of 2022, and a PEG ratio of just 0.66 -- down from 1.4 at the start of the year. Even with some of the capital blunders, a struggling macroeconomic environment, and increasing competition, it still has a great brand and remains the leader in the payments business with both PayPal and Venmo. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Dave Kovaleski has positions in Walt Disney.
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14661.0
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2023-07-28 00:00:00 UTC
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Why The Market Is Wrong About Spotify
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AAPL
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https://www.nasdaq.com/articles/why-the-market-is-wrong-about-spotify
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nan
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Investors didn't seem to like what they heard from Spotify's (NYSE: SPOT) second-quarter earnings report, but that's a short-term view of the company. In this video, Travis Hoium highlights how Spotify is growing the top of the user funnel and how that will pay off long-term.
*Stock prices used were end-of-day prices of July 25, 2023. The video was published on July 26, 2023.
10 stocks we like better than Spotify Technology
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*Stock Advisor returns as of July 17, 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. Travis Hoium has positions in Alphabet, Apple, and Spotify Technology. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Spotify Technology. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors didn't seem to like what they heard from Spotify's (NYSE: SPOT) second-quarter earnings report, but that's a short-term view of the company. In this video, Travis Hoium highlights how Spotify is growing the top of the user funnel and how that will pay off long-term. 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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See the 10 stocks *Stock Advisor returns as of July 17, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, and Spotify Technology. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Spotify Technology.
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10 stocks we like better than Spotify Technology When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Spotify Technology.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Spotify Technology wasn't one of them! See the 10 stocks *Stock Advisor returns as of July 17, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, and Spotify Technology.
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14662.0
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2023-07-28 00:00:00 UTC
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My Apple Stock Price Prediction for 2025
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AAPL
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https://www.nasdaq.com/articles/my-apple-stock-price-prediction-for-2025
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Commentators have made a big fuss about Apple (NASDAQ:AAPL) stock achieving a $3 trillion market capitalization.
Yet, that milestone might only be the beginning for Apple. By 2025, AAPL stock should be much higher than it is today, even after a strong first half of 2023.
Sure, people have been talking about Apple’s Vision Pro virtual reality (VR) headset and its to $3,499 price tag. That product could be a major revenue generator for Apple, no doubt.
However, there will be other growth drivers for Apple stock, so consider taking a share position now.
ChatGPT Response Could Propel AAPL Stock
For now, Apple’s bread and butter is the company’s iPhone sales.
There’s good news on that front, as Apple is (according to Reuters and Bloomberg) “asking suppliers to produce about 85 million units of the iPhone 15 this year,” and that figure is” roughly in line with the year before.”
Strong iPhone production and sales should give Apple stock a boost. However, the company needs to develop other leading-edge technologies, as well. For instance, Apple must take the leap into generative AI technology or else risk getting left behind.
To that end, Apple is reportedly developing its response to OpenAI’s ChatGPT with (according to Fortune and Bloomberg) a “framework to make large language models” or LLMs, known as “Ajax,” as well as an AI chatbot informally known as “Apple GPT.”
Apple will probably come up with its own name for the company’s in-development AI chatbot. Currently, it’s difficult to estimate how much this will add to the company’s market cap.
It’s probably safe to say, however, that Apple’s brand-name recognition will enable the company’s AI chatbot to gain a foothold in the market and establish a significant new revenue source.
Apple’s Huge Opportunity in India
Along with Apple’s forthcoming entry into the generative AI arms race, there’s another long-term catalyst for investors to consider.
In particular, Apple can generate substantial revenue in an emerging nation that became the world’s most populous country earlier this year.
According to Morgan Stanley analyst Erik Woodring, Apple’s business in India has the potential to expand seven-fold over the next decade. With that, Woodring posits, Apple could achieve annual revenue of $40 billion in India.
That would represent vast growth, as Apple currently only derives $6 billion of its revenue from India. Already, Apple has gained a foothold by opening stores in India and established local manufacturing capabilities there.
Bear in mind, India’s large population and emerging middle class with discretionary income make the country a prime revenue source for Apple.
So, while China has been significant to Apple’s business over the past five years, Woodring sees India as highly significant to Apple during the next five years.
So, Here’s My Apple Stock Prediction for 2025
It will be exciting to see the LLM and AI chatbot products that Apple introduces into the market. Also, I concur with Woodring’s assessment. India’s vast market will certainly be important to Apple in the coming years.
In other words, Apple’s valuation has the potential to expand far beyond the $3 trillion mark. I expect AAPL stock to reach at least $400 by 2025.
The only obstacle to that milestone would be a deep recession. If that occurs, everyone will have to adjust their Apple stock price predictions accordingly.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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The post My Apple Stock Price Prediction for 2025 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 Commentators have made a big fuss about Apple (NASDAQ:AAPL) stock achieving a $3 trillion market capitalization. By 2025, AAPL stock should be much higher than it is today, even after a strong first half of 2023. ChatGPT Response Could Propel AAPL Stock For now, Apple’s bread and butter is the company’s iPhone sales.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Commentators have made a big fuss about Apple (NASDAQ:AAPL) stock achieving a $3 trillion market capitalization. By 2025, AAPL stock should be much higher than it is today, even after a strong first half of 2023. ChatGPT Response Could Propel AAPL Stock For now, Apple’s bread and butter is the company’s iPhone sales.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Commentators have made a big fuss about Apple (NASDAQ:AAPL) stock achieving a $3 trillion market capitalization. By 2025, AAPL stock should be much higher than it is today, even after a strong first half of 2023. ChatGPT Response Could Propel AAPL Stock For now, Apple’s bread and butter is the company’s iPhone sales.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Commentators have made a big fuss about Apple (NASDAQ:AAPL) stock achieving a $3 trillion market capitalization. By 2025, AAPL stock should be much higher than it is today, even after a strong first half of 2023. ChatGPT Response Could Propel AAPL Stock For now, Apple’s bread and butter is the company’s iPhone sales.
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14663.0
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2023-07-28 00:00:00 UTC
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Mark Zuckerberg Says AI Is First Priority, but Metaverse Still Long-Term Goal -- Is Meta Stock a Buy?
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AAPL
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https://www.nasdaq.com/articles/mark-zuckerberg-says-ai-is-first-priority-but-metaverse-still-long-term-goal-is-meta-stock
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Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg's "year of efficiency" is paying off in style for patient shareholders. Shares are still over 20% below all-time highs from 2021 but are narrowing the gap as Meta stock has rallied an incredible nearly 170% so far in 2023.
Like any good tech CEO does these days, Zuckerberg had a lot to say about AI during the lastearnings call But one area continues to confound many investors: the metaverse, embodied in the Reality Labs (RL) segment, which keeps reporting billions in operating losses.
Meta isn't backing off of its long-term goal. Should this be a cause for concern, or is Meta still a solid investment?
AI is where it's at right now
Meta undertook several rounds of layoffs early this year to rightsize its operations. But now that this cost-cutting initiative is over, Meta's next order of business is AI.
But how much is the right amount? Zuckerberg said on the call:
The other major budget point that we're working through is what the right level of AI [capital expenditure] is to support our roadmap. Since we don't know how quickly our new AI products will grow, we may not have a clear handle on this until later in the year.
Capital expenditures, or capex, is money spent on property and equipment. Billions of dollars have been poured into new data center infrastructure in recent years (Meta operates its own data centers for Facebook, Instagram, and WhatsApp), and it's been paying off.
One area where this is apparent is Reels, Facebook and Instagram's answer to the sudden emergence of TikTok. Zuckerberg said AI-powered video ranking and recommendations are driving time spent on the social apps, with Reels monetization at $10 billion a year (up from $3 billion a year ago).
Other key near-term developments include supporting WhatsApp business messaging and click-to-message ads, as well as AI tools to help marketers better monetize their ad campaigns. But the one area that's creating some uncertainty in timing of capex spend is generative AI.
Meta recently announced its open source Llama 2 large-language model will be available to developers via Microsoft's cloud platform Azure, on Amazon AWS, and on other public clouds. Meta recently announced alongside Qualcomm that these AI algorithms would be available on mobile devices starting in 2024.
Without knowing how fast these AI services will grow, Meta is lowering its spend on infrastructure to a range of $27 billion to $30 billion for 2023, down from the previous guidance for $30 billion to $33 billion. With revenue once again on the rise (expected to be up as much as 25% year over year in Q3) and capex falling, Meta's earnings are getting ready to rip.
And then there's the metaverse
All this talk of cost-cutting and boosting profits may sound a bit contradictory. When zooming in on the RL segment, Quest AR/VR headsets, and related content, you can uncover all sorts of unprofitability. Through the first half of 2023, RL reported an operating loss of $7.7 billion on measly sales of $616 million (which is down from sales of $1.15 billion the first half of 2022).
Of course, Meta is getting ready to release its next-gen Quest 3 headset this autumn for $500, which should go head-to-head against Apple's (NASDAQ: AAPL) ludicrously priced Vision Pro of $3,500. Quest 3 will likely provide some sort of boost for RL. Nevertheless, this metaverse project doesn't exactly jibe with the 2023 "year of efficiency."
Or does it?
Owing to the name change to "Meta" a couple of years back, Zuckerberg and company provide a view into their metaverse operation unlike any other business out there. I wonder what Apple shareholders would think if CEO Tim Cook and CFO Luca Maestri provided a quarterly update on the billions of expenditures poured into Vision Pro over the years.
But alas, no such clarity -- and probably for the best. Corporate investment schemes of such size are just simply very expensive, and can take many years until a payoff. As proof, I'd once again point out the WhatsApp acquisition, which Facebook made all the way back in 2014 for $16 billion but is only just now really beginning to monetize.
At any rate, as I've explained, AI investments now can help pave the way to a robust metaverse business years later. An AI-enhanced ad platform, as well as new generative AI tools like Llama 2 -- open sourced for developers to tinker with -- can help make building a 3D world a much more doable endeavor. And in the meantime, Meta is working on perfecting the hardware with its Quest headsets, something it really needs to help perpetuate its ad-based software business for the long term. Disruption from peers like Apple (when it cut Meta's access to ads on iOS) isn't ideal.
Partnering with content companies like Roblox (NYSE: RBLX), which Zuckerberg reminded everyone is coming to a Quest headset near you on theearnings call could certainly help with AR/VR adoption too.
Is Meta a buy?
After the stellar Q2 earnings report and even better Q3 outlook, I'm holding my position I already own in Meta. In late 2022, when the stock was trading for a single-digit price-to-earnings ratio, it was an insane deal.
Nevertheless, for investors who think AI and eventually the metaverse can be the next big thing in computing platforms, Meta stock is at the very least worth keeping tabs on. The stock trades for about 22 times expected 2024 earnings, which is not cheap, but not an unreasonable price tag either.
10 stocks we like better than Meta Platforms
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 Meta Platforms 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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Nicholas Rossolillo and his clients have positions in Amazon.com, Apple, Meta Platforms, and Qualcomm. The Motley Fool has positions in and recommends Amazon.com, Apple, Meta Platforms, Microsoft, and Qualcomm. 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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Of course, Meta is getting ready to release its next-gen Quest 3 headset this autumn for $500, which should go head-to-head against Apple's (NASDAQ: AAPL) ludicrously priced Vision Pro of $3,500. Like any good tech CEO does these days, Zuckerberg had a lot to say about AI during the lastearnings call But one area continues to confound many investors: the metaverse, embodied in the Reality Labs (RL) segment, which keeps reporting billions in operating losses. I wonder what Apple shareholders would think if CEO Tim Cook and CFO Luca Maestri provided a quarterly update on the billions of expenditures poured into Vision Pro over the years.
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Of course, Meta is getting ready to release its next-gen Quest 3 headset this autumn for $500, which should go head-to-head against Apple's (NASDAQ: AAPL) ludicrously priced Vision Pro of $3,500. Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg's "year of efficiency" is paying off in style for patient shareholders. Billions of dollars have been poured into new data center infrastructure in recent years (Meta operates its own data centers for Facebook, Instagram, and WhatsApp), and it's been paying off.
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Of course, Meta is getting ready to release its next-gen Quest 3 headset this autumn for $500, which should go head-to-head against Apple's (NASDAQ: AAPL) ludicrously priced Vision Pro of $3,500. Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg's "year of efficiency" is paying off in style for patient shareholders. Without knowing how fast these AI services will grow, Meta is lowering its spend on infrastructure to a range of $27 billion to $30 billion for 2023, down from the previous guidance for $30 billion to $33 billion.
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Of course, Meta is getting ready to release its next-gen Quest 3 headset this autumn for $500, which should go head-to-head against Apple's (NASDAQ: AAPL) ludicrously priced Vision Pro of $3,500. When zooming in on the RL segment, Quest AR/VR headsets, and related content, you can uncover all sorts of unprofitability. That's right -- they think these 10 stocks are even better buys.
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14664.0
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2023-07-28 00:00:00 UTC
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Meta plans retention 'hooks' for Threads as more than half of users leave app
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AAPL
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https://www.nasdaq.com/articles/meta-plans-retention-hooks-for-threads-as-more-than-half-of-users-leave-app-0
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By Katie Paul and Sheila Dang
NEW YORK, July 27 (Reuters) - Meta Platforms META.O executives are heavily focused on boosting retention on their new Twitter rival Threads, after the app lost more than half of its users in the weeks following its buzzy launch, CEO Mark Zuckerberg told employees on Thursday.
Retention of users on the text-based app was better than executives had expected, though it was "not perfect," said Zuckerberg, speaking at an internal company town hall, the audio of which was heard by Reuters.
"Obviously, if you have more than 100 million people sign up, ideally it would be awesome if all of them or even half of them stuck around. We're not there yet," he said.
Zuckerberg said he considered the drop-off "normal" and expected retention to grow as the company adds more features to the app, including a desktop version and search functionality.
Meta is looking at adding more "retention-driving hooks" to entice users to return to the app, like "making sure people who are on the Instagram app can see important Threads," said Chief Product Officer Chris Cox.
A company spokesperson declined to comment on the meeting.
The executives' comments came a day after Meta wowed investors with a rosy revenue growth forecast, a sign of a comeback for a company that faced deep skepticism over its hefty spending on the metaverse last year as ad sales plummeted.
The disclosure sent Meta's shares surging 8% on Thursday.
Zuckerberg told employees on the call that he believed the company's work on the augmented and virtual reality technology that would power the metaverse was "not massively ahead of schedule, but on track."
Meta, he added, needed to get started investing in that work ahead of rivals such as Apple AAPL.O, Google and Microsoft MSFT.O, given their years of experience building operating systems for existing products.
"That way, we have all the tools ready for when this is ready for prime time," he said, predicting that mass adoption of metaverse technologies would take place in the 2030s.
Zuckerberg and Cox also highlighted the company's release of an artificial intelligence model called Llama 2 this month, which it made freely available for commercial use to any developer whose services had fewer than 700 million users.
The model has received more than 150,000 download requests in the week since its release, Cox said.
Responding to a question on the proposed "cage match" against Elon Musk, Zuckerberg said he was "not sure if it's going to come together."
(Reporting by Katie Paul in New York and Sheila Dang in Austin; Editing by Muralikumar Anantharaman)
((Katie.Paul@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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Meta, he added, needed to get started investing in that work ahead of rivals such as Apple AAPL.O, Google and Microsoft MSFT.O, given their years of experience building operating systems for existing products. By Katie Paul and Sheila Dang NEW YORK, July 27 (Reuters) - Meta Platforms META.O executives are heavily focused on boosting retention on their new Twitter rival Threads, after the app lost more than half of its users in the weeks following its buzzy launch, CEO Mark Zuckerberg told employees on Thursday. The executives' comments came a day after Meta wowed investors with a rosy revenue growth forecast, a sign of a comeback for a company that faced deep skepticism over its hefty spending on the metaverse last year as ad sales plummeted.
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Meta, he added, needed to get started investing in that work ahead of rivals such as Apple AAPL.O, Google and Microsoft MSFT.O, given their years of experience building operating systems for existing products. By Katie Paul and Sheila Dang NEW YORK, July 27 (Reuters) - Meta Platforms META.O executives are heavily focused on boosting retention on their new Twitter rival Threads, after the app lost more than half of its users in the weeks following its buzzy launch, CEO Mark Zuckerberg told employees on Thursday. "Obviously, if you have more than 100 million people sign up, ideally it would be awesome if all of them or even half of them stuck around.
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Meta, he added, needed to get started investing in that work ahead of rivals such as Apple AAPL.O, Google and Microsoft MSFT.O, given their years of experience building operating systems for existing products. By Katie Paul and Sheila Dang NEW YORK, July 27 (Reuters) - Meta Platforms META.O executives are heavily focused on boosting retention on their new Twitter rival Threads, after the app lost more than half of its users in the weeks following its buzzy launch, CEO Mark Zuckerberg told employees on Thursday. Meta is looking at adding more "retention-driving hooks" to entice users to return to the app, like "making sure people who are on the Instagram app can see important Threads," said Chief Product Officer Chris Cox.
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Meta, he added, needed to get started investing in that work ahead of rivals such as Apple AAPL.O, Google and Microsoft MSFT.O, given their years of experience building operating systems for existing products. By Katie Paul and Sheila Dang NEW YORK, July 27 (Reuters) - Meta Platforms META.O executives are heavily focused on boosting retention on their new Twitter rival Threads, after the app lost more than half of its users in the weeks following its buzzy launch, CEO Mark Zuckerberg told employees on Thursday. Retention of users on the text-based app was better than executives had expected, though it was "not perfect," said Zuckerberg, speaking at an internal company town hall, the audio of which was heard by Reuters.
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2023-07-28 00:00:00 UTC
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69% of Warren Buffett's $378 Billion Portfolio Is Invested in Just 4 Stocks
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https://www.nasdaq.com/articles/69-of-warren-buffetts-%24378-billion-portfolio-is-invested-in-just-4-stocks
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Few investors have garnered as much prominence on Wall Street as Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. In the 58 years the Oracle of Omaha has held the reins, he's overseen a 4,264,684% increase in his company's Class A shares (BRK.A), as of the closing bell on July 21, 2023.
Although Buffett isn't infallible, he's demonstrated a knack for picking winners over the long run. Yet what's interesting about his investing approach is his penchant for portfolio concentration.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett and his right-hand man, Berkshire's Executive Vice Chairman Charlie Munger, have long believed that diversification is only necessary if you don't know what you're doing. This has led Buffett and his investing lieutenants, Ted Weschler and Todd Combs, to put a lot of money to work in their perceived-to-be best ideas.
At the moment, 69% ($259.5 billion) of the $378 billion portfolio Warren Buffett oversees at Berkshire Hathaway is invested in just four stocks.
Apple: $175.7 billion (46.5% of invested assets)
The Oracle of Omaha's preference for betting big on his best ideas is plain as day with tech stock Apple (NASDAQ: AAPL), which he dubbed as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting. The more than 915 million shares of Apple stock held by Berkshire equates to $175.7 billion in market value, or nearly 47% of invested assets.
Brand-name recognition is clearly important for Apple. It's consistently recognized as one of the most valuable brands in the world and has a loyal customer base to back it up.
This loyalty should be enhanced even more by the company's evolution into subscription services. CEO Tim Cook is overseeing this transition, which should help minimize Apple's reliance on physical products such as the iPhone and Mac over time, as well as improve the company's operating margin. In particular, a services-focused Apple may see less in the way of revenue fluctuations when it makes big changes to its (current) core revenue driver, the iPhone.
Warren Buffett is also, undoubtedly, a huge fan of Apple's capital-return program. Although its yield of 0.5% is pedestrian, Apple is doling out more than $15 billion annually in payouts to its shareholders.
Further, the company has repurchased approximately $586 billion worth of its common stock over the last 10 years. No other publicly traded company has come remotely closing to buying back this much stock in a decade. As a reminder, share buybacks are aimed at reducing the number of shares outstanding. For companies with steady or growing net income, this can lead to higher earnings per share.
Bank of America: $33 billion (8.7% of invested assets)
The financial sector has long been Warren Buffett's favorite for putting Berkshire's capital to work. For the moment, Bank of America (NYSE: BAC) stands out as his absolute favorite bank stock to own. BofA, as Bank of America is more commonly known, accounts for $33 billion of Berkshire Hathaway's roughly $378 billion in invested assets.
In Buffett's eyes, bank stocks are long-term moneymakers. Though banks are cyclical and susceptible to higher loan losses and credit charge-offs during recessions, periods of expansion have, historically, lasted considerably longer than downturns. This means banks are disproportionately benefiting from lengthy economic expansions, which allow them to expand their deposit base and loan portfolio.
While JPMorgan Chase is widely considered to be the cream of the crop among U.S. money-center banks, Bank of America finds itself uniquely positioned to benefit from the current economic environment. As the most interest-sensitive of America's biggest banks by assets, BofA is benefiting immensely from the Federal Reserve's most-aggressive rate-hiking cycle in more than four decades. The federal funds rate has moved 500 basis points higher since March 2022; that's added billions of dollars in net-interest income to BofA's bottom line each quarter.
Bank of America's focus on improving digital adoption is working wonders, as well. On a trailing-three-year basis, ended June 30, 2023, the percentage of households banking online or via mobile app has grown from 68% to 74%. Likewise, digital unit sales have steadily been climbing (51% of total sales in the June-ended quarter).
Digital transactions are far less costly for banks than in-person interactions. Spending on digitization initiatives has made BofA a more efficient company.
Image source: American Express.
American Express: $25.8 billion (6.8% of invested assets)
The third stock that comprises a sizable percentage of Berkshire Hathaway's invested assets is credit-services provider American Express (NYSE: AXP), which is also known as "AmEx." AmEx has been a continuous holding of Berkshire's for the past 30 years.
The numbers game that Warren Buffett and his investing lieutenants are playing with Bank of America is also applicable to American Express. While financial stocks like AmEx are cyclical, periods of uncertainty tend to be short-lived. Buying and holding a key credit-services provider like AmEx allows Buffett to take advantage of multiyear economic expansions.
The benefit of lengthy growth periods for American Express is that it's able to hit both sides of a transaction. As of 2021, it was the clear No. 3 payment processor in the U.S., by credit card network purchase volume. This allows the company to collect fees from merchants when processing transactions. A booming economy where both transaction count and purchase volume are rising is a good thing.
However, AmEx is also a lender. It's able to generate annual fees and/or interest income from its cardholders. Periods of economic expansion often translate to fewer delinquencies and charge-offs.
Additionally, American Express has always been adept at attracting high-earning consumers. The well-to-do are less likely to alter their spending habits during periods of high inflation or when minor economic disruptions take place. It suggests AmEx is in a better position to deal with economic downturns than many of its peers.
Coca-Cola: $25 billion (6.6% of invested assets)
The fourth company Warren Buffett has absolutely piled into is beverage stock Coca-Cola (NYSE: KO). The company has been a continuous holding since 1988 and currently accounts for $25 billion of Berkshire's invested assets. When combined with Apple, Bank of America, and American Express, these four stocks make up 69% of Berkshire Hathaway's investment portfolio (excluding fully owned assets).
The lure of Coca-Cola is the company's top-notch predictability. Food and beverages are basic necessities, and Coke just happens to be one of the most recognized brands in the world. Despite a global pandemic, rampant economic uncertainty, and a war in Ukraine, the company has delivered an average organic growth rate of 7% over the previous five years, ending December 2022.
One of the keys to Coca-Cola's success is its geographic and product-based diversity. It currently has operations in all but three countries (North Korea, Cuba, and Russia) and is responsible for 26 brands generating at least $1 billion in annual sales. In other words, it's generating predictable cash flow in developed countries and can take advantage of an industry-forecasted 8% to 10% compound annual growth rate in emerging markets between 2023 and 2026.
Coca-Cola's marketing team is also masterful at making impressions count. The company is spending more than half of its marketing budget on digital media and has been tinkering with artificial intelligence to create and tailor content for consumers. On top of reaching for a younger consumer, Coca-Cola has brand-name sports partnerships, well-known ambassadors, and holiday tie-ins that help it connect with more mature audiences.
Lastly, Coca-Cola's dividend packs quite the punch for Berkshire Hathaway. With Buffett's company sitting on a cost basis of approximately $3.2475 for its Coke shares, the company's current annual payout of $1.84/share works out to a yield relative to cost of 57%! The Oracle of Omaha is watching his initial investment in Coca-Cola more than double every two years, based solely on dividends.
10 stocks we like better than Apple
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*Stock Advisor returns as of July 17, 2023
American Express, JPMorgan Chase, and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and JPMorgan Chase. 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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Apple: $175.7 billion (46.5% of invested assets) The Oracle of Omaha's preference for betting big on his best ideas is plain as day with tech stock Apple (NASDAQ: AAPL), which he dubbed as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting. CEO Tim Cook is overseeing this transition, which should help minimize Apple's reliance on physical products such as the iPhone and Mac over time, as well as improve the company's operating margin. The federal funds rate has moved 500 basis points higher since March 2022; that's added billions of dollars in net-interest income to BofA's bottom line each quarter.
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Apple: $175.7 billion (46.5% of invested assets) The Oracle of Omaha's preference for betting big on his best ideas is plain as day with tech stock Apple (NASDAQ: AAPL), which he dubbed as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting. Bank of America: $33 billion (8.7% of invested assets) The financial sector has long been Warren Buffett's favorite for putting Berkshire's capital to work. American Express: $25.8 billion (6.8% of invested assets) The third stock that comprises a sizable percentage of Berkshire Hathaway's invested assets is credit-services provider American Express (NYSE: AXP), which is also known as "AmEx."
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Apple: $175.7 billion (46.5% of invested assets) The Oracle of Omaha's preference for betting big on his best ideas is plain as day with tech stock Apple (NASDAQ: AAPL), which he dubbed as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting. American Express: $25.8 billion (6.8% of invested assets) The third stock that comprises a sizable percentage of Berkshire Hathaway's invested assets is credit-services provider American Express (NYSE: AXP), which is also known as "AmEx." Coca-Cola: $25 billion (6.6% of invested assets) The fourth company Warren Buffett has absolutely piled into is beverage stock Coca-Cola (NYSE: KO).
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Apple: $175.7 billion (46.5% of invested assets) The Oracle of Omaha's preference for betting big on his best ideas is plain as day with tech stock Apple (NASDAQ: AAPL), which he dubbed as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting. At the moment, 69% ($259.5 billion) of the $378 billion portfolio Warren Buffett oversees at Berkshire Hathaway is invested in just four stocks. BofA, as Bank of America is more commonly known, accounts for $33 billion of Berkshire Hathaway's roughly $378 billion in invested assets.
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2023-07-28 00:00:00 UTC
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Taiwan returns to growth in Q2 on strong domestic demand, but exports weak
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https://www.nasdaq.com/articles/taiwan-returns-to-growth-in-q2-on-strong-domestic-demand-but-exports-weak
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By Jeanny Kao and Faith Hung
TAIPEI, July 28 (Reuters) - Taiwan's export-dependent economy returned to growth in the second quarter, helped by resilient domestic consumption, while exports remained weak as a result of flagging demand for the island's technology products amid global headwinds.
Gross domestic product (GDP) expanded by a preliminary 1.45% in the April-June period versus a year earlier, the statistics agency said on Friday, beating the 0.8% growth forecast in a Reuters poll.
Quarter-on-quarter, the economy expanded at a seasonally adjusted annual rate of 7.02%.
GDP in the first quarter had fallen 2.87% from a year earlier, with the economy slipping into recession.
Analysts attributed the recovery from a technical recession to a domestic economic rebound, while factors beyond Taiwan's shores continue to jeopardise the island's prospects.
"Looking forward to Q3, we expect domestic private sector consumption to return to normal levels...about 1.5%-2% growth," said Chengyu Liu of First Capital Management.
"Export demand remains weak. Taiwan's central bank will not raise interest rates" at its next meeting in September, he said, adding that 2023 GDP growth would remain below 2%.
Taiwan's exports fell more than expected in June, slumping the most in nearly 14 years, with the government predicting that a return to growth may not occur until November.
Second-quarter exports dropped 16.9% compared with the same period last year, still slightly better than the first quarter's annual contraction of 19.2%.
The government said in May it expects full-year 2023 growth of 2.04%, the slowest pace in nearly eight years and lower than 2.45% growth in 2022.
The economy in China, Taiwan's largest export market, grew 6.3% in the second quarter, coming in under analyst forecasts, as demand weakened at home and abroad, with post-COVID momentum faltering rapidly.
Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N.
The statistics agency will provide revised figures for the second quarter on Aug. 18, with more details and forward-looking forecasts.
(Reporting by Jeanny Kao and Faith Hung; Additional reporting by Roger Tung; Editing by Ben Blanchard, Edmund Klamann and Tomasz Janowski)
((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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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. By Jeanny Kao and Faith Hung TAIPEI, July 28 (Reuters) - Taiwan's export-dependent economy returned to growth in the second quarter, helped by resilient domestic consumption, while exports remained weak as a result of flagging demand for the island's technology products amid global headwinds. Gross domestic product (GDP) expanded by a preliminary 1.45% in the April-June period versus a year earlier, the statistics agency said on Friday, beating the 0.8% growth forecast in a Reuters poll.
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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. By Jeanny Kao and Faith Hung TAIPEI, July 28 (Reuters) - Taiwan's export-dependent economy returned to growth in the second quarter, helped by resilient domestic consumption, while exports remained weak as a result of flagging demand for the island's technology products amid global headwinds. Gross domestic product (GDP) expanded by a preliminary 1.45% in the April-June period versus a year earlier, the statistics agency said on Friday, beating the 0.8% growth forecast in a Reuters poll.
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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. By Jeanny Kao and Faith Hung TAIPEI, July 28 (Reuters) - Taiwan's export-dependent economy returned to growth in the second quarter, helped by resilient domestic consumption, while exports remained weak as a result of flagging demand for the island's technology products amid global headwinds. Gross domestic product (GDP) expanded by a preliminary 1.45% in the April-June period versus a year earlier, the statistics agency said on Friday, beating the 0.8% growth forecast in a Reuters poll.
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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. By Jeanny Kao and Faith Hung TAIPEI, July 28 (Reuters) - Taiwan's export-dependent economy returned to growth in the second quarter, helped by resilient domestic consumption, while exports remained weak as a result of flagging demand for the island's technology products amid global headwinds. Gross domestic product (GDP) expanded by a preliminary 1.45% in the April-June period versus a year earlier, the statistics agency said on Friday, beating the 0.8% growth forecast in a Reuters poll.
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2023-07-28 00:00:00 UTC
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Got $1,000? 2 Warren Buffett Stocks to Buy Hand Over Fist
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https://www.nasdaq.com/articles/got-%241000-2-warren-buffett-stocks-to-buy-hand-over-fist-0
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Warren Buffett is the GOAT (greatest of all-time) when it comes to investing, and it isn't even close. His conglomerate, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has posted an overall gain of 3,787,464% through the end of 2022, meaning he turned $1,000 into roughly $37 million. And Berkshire's compound annual gain has doubled that of the S&P 500 -- at 19.8% versus 9.9% -- from 1965 to 2022.
If you have $1,000, you might want to consider following his lead. Keep reading to see two Buffett stocks worth buying hand over fist.
Warren Buffett. Image source: Motley Fool.
1. Apple
Apple (NASDAQ: AAPL) is the most valuable company in the world, and it now makes up nearly half of Berkshire Hathaway's stock portfolio.
Buffett's conglomerate started buying Apple in 2016 and the iPhone maker has delivered huge returns. Apple continues to expand its economic moat, grow its base of installed devices, expand margins through its services segment, and raise prices on iPhones thanks to improved cameras and other innovations.
Buffett has sung Apple's praises on multiple occasions, saying that it's a better business than any of Berkshire's wholly owned subsidiaries, and he thinks of it as the company's third business after insurance and the BNSF railroad.
Another reason to like the stock is Apple's new Vision Pro mixed-reality headset, which has the potential to move the needle on the company's financials and define a new tech category, which it refers to as spatial computing.
Meanwhile, the improving global economy should bode well for demand for its tablets and smartphones, as Apple continues to grow itsglobal marketshare. The stock may be expensive at the moment, but the potential of the Vision Pro doesn't seem to be factored into the valuation.
2. Amazon
Amazon (NASDAQ: AMZN) isn't nearly as big a holding for Berkshire Hathaway as Apple, but Buffett has also made it clear that he's a fan of the company and its founder, Jeff Bezos, saying, "We haven't seen many businessmen like him."
Amazon has built an impressive network of competitive advantages. They include its Prime loyalty program, which now has more than 200 million members globally; its unmatched logistics network; and Amazon Web Services, its cloud infrastructure arm, which remains the segment leader and a huge profit generator.
And its massive e-commerce business has enabled high-margin businesses like advertising and its third-party marketplace that continue to see strong growth.
Now also looks like an opportune moment to buy Amazon because the company is engaged in an unprecedented cost-cutting campaign, laying off 18,000 employees and taking a hard look at its Fresh delivery and Prime video services.
After years of prioritizing growth, and with more than $500 billion in revenue, the company has the potential to be significantly more profitable than it has been historically.
The stock is still down by close to a third from its all-time high, giving it ample room to run if it can continue to grow the top line and improve its profitability. And there's still a considerable opportunity ahead for the company in e-commerce and cloud computing despite its recent struggles.
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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. Jeremy Bowman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is the most valuable company in the world, and it now makes up nearly half of Berkshire Hathaway's stock portfolio. Another reason to like the stock is Apple's new Vision Pro mixed-reality headset, which has the potential to move the needle on the company's financials and define a new tech category, which it refers to as spatial computing. They include its Prime loyalty program, which now has more than 200 million members globally; its unmatched logistics network; and Amazon Web Services, its cloud infrastructure arm, which remains the segment leader and a huge profit generator.
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Apple Apple (NASDAQ: AAPL) is the most valuable company in the world, and it now makes up nearly half of Berkshire Hathaway's stock portfolio. His conglomerate, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has posted an overall gain of 3,787,464% through the end of 2022, meaning he turned $1,000 into roughly $37 million. They include its Prime loyalty program, which now has more than 200 million members globally; its unmatched logistics network; and Amazon Web Services, its cloud infrastructure arm, which remains the segment leader and a huge profit generator.
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Apple Apple (NASDAQ: AAPL) is the most valuable company in the world, and it now makes up nearly half of Berkshire Hathaway's stock portfolio. Amazon Amazon (NASDAQ: AMZN) isn't nearly as big a holding for Berkshire Hathaway as Apple, but Buffett has also made it clear that he's a fan of the company and its founder, Jeff Bezos, saying, "We haven't seen many businessmen like him." See the 10 stocks *Stock Advisor returns as of July 17, 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 Apple (NASDAQ: AAPL) is the most valuable company in the world, and it now makes up nearly half of Berkshire Hathaway's stock portfolio. The stock is still down by close to a third from its all-time high, giving it ample room to run if it can continue to grow the top line and improve its profitability. That's right -- they think these 10 stocks are even better buys.
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2023-07-28 00:00:00 UTC
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Will Bitcoin Be a $1 Trillion Cryptocurrency by 2030?
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https://www.nasdaq.com/articles/will-bitcoin-be-a-%241-trillion-cryptocurrency-by-2030
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There are a number of stocks that have reached the $1 trillion market cap club, including Apple, Microsoft, and Amazon. Getting in on these businesses early could have led to life-changing returns.
In the world of cryptocurrencies, reaching this level is rare.
But with a current market cap of about $570 billion, Bitcoin (CRYPTO: BTC) is by far the world's largest cryptocurrency, so it has the highest chance to hit the 13-figure mark among the tens of thousands of digital tokens out there.
Can this happen by 2030? I think it's certainly possible. Here's why.
Bitcoin has done it before
In 2021, the cryptocurrency market was on fire, almost tripling that year. And, unsurprisingly, Bitcoin soared as well. In November that year, the top digital asset reached a market cap of $1.2 trillion, more than double where it stands today.
To be clear, just because an asset reached a milestone in price before, it doesn't necessarily mean that it can do it again. This happens all the time with stocks, and it's a good thing for investors to remember.
However, Bitcoin has gone through multiple wild cycles ever since its launch in 2009. And the longer it remains relevant, the more confidence I have in its ability to stay alive. This is called the Lindy effect.
And the longer it stays alive, the greater the likelihood that it continues to rise over time. That's mainly due to more people becoming more educated about, and wanting to own, an asset that has a fixed supply cap of 21 million.
Bitcoin is ready to do it again
There are also some catalysts on the horizon that can push up Bitcoin's price. The most obvious one is next April's halving, which is when Bitcoin's supply growth rate gets cut in half. Bitcoin typically starts rising several months before this event, and this momentum usually carries over several months after the halving.
The Federal Reserve aggressively started hiking interest rates early last year to slow soaring inflation. And in the past few months, inflation has started to cool. This means that there is a possibility that the central bank not just pauses, but even reverses and begins to cut rates. A looser monetary policy stance can certainly be a boon to risky assets, especially Bitcoin.
Longer-term, there are also some compelling reasons to believe that Bitcoin can skyrocket over the next several years. One of the most important bull arguments is that a larger number of institutions will enter the Bitcoin market. Recently, leading asset managers BlackRock and Fidelity filed applications with the Securities and Exchange Commission (SEC) to launch spot Bitcoin exchange-traded funds. I don't think they'd make these moves if their clientele, which collectively holds trillions of dollars, didn't have an interest in gaining more exposure to Bitcoin.
And speaking of the SEC, that agency and others should adopt more definitive rules and regulations in terms of policing the cryptocurrency industry. Some critics can argue that this will hurt the industry. But I think it could prove to be a catalyst for Bitcoin that can help bring it into the mainstream.
Looking at the return potential
If Bitcoin reaches a $1 trillion market cap by 2030, that implies its price rises at a compound annual rate of 8.4% between now and then. In the last seven years, by comparison, its price has increased at an annualized clip of 72%, making the forward expected return nothing to rave about.
The S&P 500 has averaged a 9% to 10% historical return. Do I think Bitcoin can outperform the overall market's past performance in the future? Yes, I'd bet on this scenario happening without hesitation.
By the end of this decade, Bitcoin's valuation could far exceed $1 trillion, making now a great time to consider buying this leading cryptocurrency.
10 stocks we like better than Bitcoin
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Bitcoin wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of July 10, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Bitcoin, 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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But with a current market cap of about $570 billion, Bitcoin (CRYPTO: BTC) is by far the world's largest cryptocurrency, so it has the highest chance to hit the 13-figure mark among the tens of thousands of digital tokens out there. Recently, leading asset managers BlackRock and Fidelity filed applications with the Securities and Exchange Commission (SEC) to launch spot Bitcoin exchange-traded funds. Looking at the return potential If Bitcoin reaches a $1 trillion market cap by 2030, that implies its price rises at a compound annual rate of 8.4% between now and then.
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There are a number of stocks that have reached the $1 trillion market cap club, including Apple, Microsoft, and Amazon. In November that year, the top digital asset reached a market cap of $1.2 trillion, more than double where it stands today. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Bitcoin is ready to do it again There are also some catalysts on the horizon that can push up Bitcoin's price. Looking at the return potential If Bitcoin reaches a $1 trillion market cap by 2030, that implies its price rises at a compound annual rate of 8.4% between now and then. See the 10 stocks *Stock Advisor returns as of July 10, 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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Bitcoin has done it before In 2021, the cryptocurrency market was on fire, almost tripling that year. The most obvious one is next April's halving, which is when Bitcoin's supply growth rate gets cut in half. That's right -- they think these 10 stocks are even better buys.
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14669.0
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2023-07-27 00:00:00 UTC
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3 "Magnificent Seven" Stocks to Buy Now and 1 to Avoid, According to Wall Street
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AAPL
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https://www.nasdaq.com/articles/3-magnificent-seven-stocks-to-buy-now-and-1-to-avoid-according-to-wall-street
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What a difference a year can make. Since tumbling into a bear market in 2022, all three major U.S. stock indexes have bounced more than 20% off of their lows. By one definition, that puts the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite in a new bull market.
However, this has been anything but a traditional rally. A significant portion of the year-to-date gains built up in the S&P 500, Nasdaq Composite, and especially Nasdaq 100 are the result of the outperformance of the "magnificent seven."
Image source: Getty Images.
The magnificent seven refers to a group of supercharged, widely owned, megacap growth stocks that, through the closing bell on July 21, have gained between 36% and 203% for the year. The magnificent seven includes:
Apple (NASDAQ: AAPL)
Microsoft (NASDAQ: MSFT)
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Amazon (NASDAQ: AMZN)
Nvidia (NASDAQ: NVDA)
Tesla (NASDAQ: TSLA)
Meta Platforms (NASDAQ: META)
GOOGL data by YCharts.
Aside from the sheer magnitude of their outperformance in 2023, these are all businesses with well-defined competitive advantages within their respective industries. For example:
Apple accounts for roughly half of all U.S. smartphone market share in the U.S.
Microsoft's legacy operating system, Windows, still dominates desktops, while Azure is currently the world's No. 2 cloud infrastructure service provider.
Alphabet's internet search engine Google was responsible for nearly 93% of worldwide search share in June 2023.
Amazon's online marketplace brings in around $0.40 of every $1 spent in online retail sales in the U.S., while Amazon Web Services (AWS) is the leading cloud infrastructure services provider.
Nvidia's artificial intelligence (AI)-driven graphics processing units (GPUs) dominate enterprise data centers.
Tesla is the world's leading electric vehicle (EV) manufacturer and the only pure-play EV stock generating a recurring profit.
Meta Platforms' social media real estate is unmatched, with Facebook, Instagram, WhatsApp, and Facebook Messenger attracting more than 3.8 billion unique monthly visitors in the first quarter.
The dominance of the magnificent seven isn't lost on Wall Street. However, analysts have differing takes on where this group heads next. Based solely on the consensus price targets of dozens of analysts, three magnificent seven stocks stand out as clear-cut buys, while another is worth avoiding.
Magnificent seven stock No. 1 to buy, according to Wall Street: Alphabet
Based on the collective think tank that is Wall Street, Alphabet offers the most upside among the magnificent seven. The company's Class A shares (GOOGL) closed out last week at $120.02, which compares to a consensus one-year target price of $135.38 among the more than three dozen analysts covering the company. This represents upside of 13%, with some analysts, such as Ivan Feinseth at Tigress Financial ($172 price target), expecting Alphabet to have plenty of run still left.
As noted, the lure of Alphabet is its cash-cow operating segment, Google. It's been more than eight years since Google has accounted for less than a 90% global share of internet search in a given month. Operating as a veritable monopoly means it possesses strong ad-pricing power.
But don't overlook Alphabet's ancillary segments, such as Google Cloud or streaming platform YouTube. The latter is the second-most-visited social media site on the planet and was generating north of 50 billion daily views from Shorts (short-form videos often lasting less than 60 seconds) during the first quarter.
Meanwhile, Google Cloud is the global No. 3 in cloud infrastructure services, behind only Microsoft's Azure, and AWS. Cloud margins are typically much juicier than advertising margins, which makes this operating segment a major growth driver for Alphabet.
Magnificent seven stock No. 2 to buy, according to Wall Street: Nvidia
A second magnificent seven company with double-digit upside is GPU giant Nvidia. The consensus of around three dozen covering analysts is for Nvidia to reach $491.50 per share. Based on its closing price of close to $443 on July 21, we're looking at roughly 11% upside still to come.
The more than 200% year-to-date gains registered by Nvidia are the result of hype surrounding AI. Since AI has broad applications in virtually all sectors and industries, and Nvidia's GPUs account for roughly 90% of the chips being used in AI-driven enterprise data centers, it looks to have a clear path to sustained double-digit growth.
But this is one instance where Wall Street appears reactive rather than proactive. While it's true that Nvidia's second-quarter sales forecast blew away estimates, we've witnessed numerous instances over the past 30 years when next-big-thing investments eventually failed to live up to investors' lofty expectations. AI-driven products and services are going to take time to mature, which will likely make it difficult for Nvidia to sustain its current valuation.
Nvidia is also facing possible headwinds from U.S. regulators, who may want to further clamp down on export restrictions to China. Although the company developed a slower version of its AI GPUs, additional restrictions could adversely impact around a quarter of Nvidia's total sales.
Image source: Amazon.
Magnificent seven stock No. 3 to buy, according to Wall Street: Amazon
The third and final magnificent seven stock with consensus double-digit upside, based on Wall Street's price targets, is e-commerce behemoth Amazon. The roughly four dozen analysts covering Amazon expect it to reach $143.17, which is about 10% above its closing price of $130, as of July 21.
Although Amazon generates a lot of its revenue from its online marketplace, retail sales are a generally low-margin operating segment. The key to its success lies with the continued outperformance of its faster-growing and higher-margin ancillary segments: AWS, subscription services, and advertising services.
Tech analysis firm Canalys pegged AWS' share of global cloud infrastructure services at 32% as of the end of March 2023. Best of all, enterprise cloud spending still looks to be in its early stages of growth. Despite accounting for around a sixth of Amazon's net sales, AWS has consistently generated 50% or more of the company's operating income.
With regard to subscription services, Prime has been a beast. Amazon crossed above 200 million global Prime subscriptions in April 2021 and more than likely has added to its total since claiming the exclusive rights to Thursday Night Football.
Based on projected cash flow in 2024 and beyond, Amazon stock is cheaper than it's ever been.
The magnificent seven stock to avoid, per Wall Street: Tesla
However, not all the magnificent seven are pegged as winners. Collectively, Wall Street analysts believe EV maker Tesla is worth $230.18 per share. That's about 12% below where shares closed at on July 21 ($260.02).
Though Tesla has a pathway to manufacturing north of 2 million EVs annually, and it's the clear-cut EV production and delivery leader in North America, there is no shortage of red flags.
First, Tesla has aggressively reduced the price of its EV lineup on a half-dozen occasions since the year began. While optimists had held out hope that these price cuts were a reflection of improved production efficiencies, CEO Elon Musk noted during the company's first-quarter shareholder meeting that Tesla's pricing strategy is based on demand. If Tesla is slashing prices by up to 20% in under a year, it's a reflection of rising inventories and weaker demand. That's bad news for the company's automotive gross margin.
Elon Musk has also proved to be a risk for Tesla's shareholder base. Even though he's an innovator, Musk has previously drawn the unwanted attention of securities regulators. Perhaps more concerning, Musk has made an abundance of promises that simply haven't been fulfilled, such as fully autonomous EVs being perpetually "one year away."
Lastly, Tesla's valuation is in nosebleed territory. Whereas highly cyclical auto stocks typically trade at high-single-digit price-to-earnings (P/E) ratios, Tesla is commanding a P/E ratio of 75, relative to Wall Street's consensus earnings for 2023. With virtually all the company's profits dependent on its ability to sell and lease EVs, it should be valued like an auto stock, not a multifaceted growth stock.
10 stocks we like better than Alphabet
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The magnificent seven includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) GOOGL data by YCharts. For example: Apple accounts for roughly half of all U.S. smartphone market share in the U.S. Microsoft's legacy operating system, Windows, still dominates desktops, while Azure is currently the world's No. Since AI has broad applications in virtually all sectors and industries, and Nvidia's GPUs account for roughly 90% of the chips being used in AI-driven enterprise data centers, it looks to have a clear path to sustained double-digit growth.
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The magnificent seven includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) GOOGL data by YCharts. Amazon's online marketplace brings in around $0.40 of every $1 spent in online retail sales in the U.S., while Amazon Web Services (AWS) is the leading cloud infrastructure services provider. 3 to buy, according to Wall Street: Amazon The third and final magnificent seven stock with consensus double-digit upside, based on Wall Street's price targets, is e-commerce behemoth Amazon.
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The magnificent seven includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) GOOGL data by YCharts. 1 to buy, according to Wall Street: Alphabet Based on the collective think tank that is Wall Street, Alphabet offers the most upside among the magnificent seven. 3 to buy, according to Wall Street: Amazon The third and final magnificent seven stock with consensus double-digit upside, based on Wall Street's price targets, is e-commerce behemoth Amazon.
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Magnificent seven stock No. The magnificent seven includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) GOOGL data by YCharts. The dominance of the magnificent seven isn't lost on Wall Street.
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14670.0
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2023-07-27 00:00:00 UTC
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Bernstein Maintains Apple (AAPL) Market Perform Recommendation
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AAPL
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https://www.nasdaq.com/articles/bernstein-maintains-apple-aapl-market-perform-recommendation
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Fintel reports that on July 27, 2023, Bernstein maintained coverage of Apple (NASDAQ:AAPL) with a Market Perform recommendation.
Analyst Price Forecast Suggests 1.16% Downside
As of July 6, 2023, the average one-year price target for Apple is 192.24. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents a decrease of 1.16% from its latest reported closing price of 194.50.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. 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 6394 funds or institutions reporting positions in Apple. This is a decrease of 17 owner(s) or 0.27% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.93%, an increase of 39.01%. Total shares owned by institutions decreased in the last three months by 2.17% to 9,915,268K shares.
The put/call ratio of AAPL is 0.86, 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. 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)
Form of CEO Restricted Stock Unit Award Agreement under 20
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 July 27, 2023, Bernstein maintained coverage of Apple (NASDAQ:AAPL) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.93%, an increase of 39.01%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on July 27, 2023, Bernstein maintained coverage of Apple (NASDAQ:AAPL) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.93%, an increase of 39.01%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on July 27, 2023, Bernstein maintained coverage of Apple (NASDAQ:AAPL) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.93%, an increase of 39.01%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on July 27, 2023, Bernstein maintained coverage of Apple (NASDAQ:AAPL) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.93%, an increase of 39.01%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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14671.0
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2023-07-27 00:00:00 UTC
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Thursday's ETF with Unusual Volume: PFM
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AAPL
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https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-pfm
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nan
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The Invesco Dividend Achievers ETF is seeing unusually high volume in afternoon trading Thursday, with over 425,000 shares traded versus three month average volume of about 77,000. Shares of PFM were down about 0.1% on the day.
Components of that ETF with the highest volume on Thursday were Microsoft, trading down about 0.3% with over 16.6 million shares changing hands so far this session, and Apple, up about 0.8% on volume of over 16.5 million shares. Morningstar is the component faring the best Thursday, up by about 7.6% on the day, while Graco is lagging other components of the Invesco Dividend Achievers ETF, trading lower by about 7.4%.
VIDEO: Thursday's ETF with Unusual Volume: PFM
The views and 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 Invesco Dividend Achievers ETF is seeing unusually high volume in afternoon trading Thursday, with over 425,000 shares traded versus three month average volume of about 77,000. Components of that ETF with the highest volume on Thursday were Microsoft, trading down about 0.3% with over 16.6 million shares changing hands so far this session, and Apple, up about 0.8% on volume of over 16.5 million shares. VIDEO: Thursday's ETF with Unusual Volume: PFM The views and 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 Invesco Dividend Achievers ETF is seeing unusually high volume in afternoon trading Thursday, with over 425,000 shares traded versus three month average volume of about 77,000. Morningstar is the component faring the best Thursday, up by about 7.6% on the day, while Graco is lagging other components of the Invesco Dividend Achievers ETF, trading lower by about 7.4%. VIDEO: Thursday's ETF with Unusual Volume: PFM The views and 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 Invesco Dividend Achievers ETF is seeing unusually high volume in afternoon trading Thursday, with over 425,000 shares traded versus three month average volume of about 77,000. Components of that ETF with the highest volume on Thursday were Microsoft, trading down about 0.3% with over 16.6 million shares changing hands so far this session, and Apple, up about 0.8% on volume of over 16.5 million shares. Morningstar is the component faring the best Thursday, up by about 7.6% on the day, while Graco is lagging other components of the Invesco Dividend Achievers ETF, trading lower by about 7.4%.
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Components of that ETF with the highest volume on Thursday were Microsoft, trading down about 0.3% with over 16.6 million shares changing hands so far this session, and Apple, up about 0.8% on volume of over 16.5 million shares. Morningstar is the component faring the best Thursday, up by about 7.6% on the day, while Graco is lagging other components of the Invesco Dividend Achievers ETF, trading lower by about 7.4%. VIDEO: Thursday's ETF with Unusual Volume: PFM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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14672.0
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2023-07-27 00:00:00 UTC
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ETFs to Play the IPO Market Recovery
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AAPL
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https://www.nasdaq.com/articles/etfs-to-play-the-ipo-market-recovery
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nan
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nan
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(1:00) - Breaking Down 2023 IPOs: Are Investors Experiencing FOMO Again?
(4:45) - Investing Into Growth At All Costs: Is This The Case For Most Investors?
(8:00) - How Can IPOs Benefit From Anchor Investors?
(10:30) - What To Expect From IPOs Going Forward: Where Should Investors Be Looking?
(13:20) - Renaissance Capital IPO Index and ETF: IPO
(16:30) - How Can IPOs Benefit Investors' Portfolios?
(18:45) - Episode Roundup: FPX, IPO
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Tiffany Ng, Portfolio Manager at Renaissance Capital, a global IPO investment advisory firm.
The IPO market is waking up from a long slumber. After a disastrous performance in 2022, the Renaissance IPO ETF IPO is up more than 44% year-to-date. Some of the recent IPOs, such as Mediterranean food chain Cava CAVA and online beauty-products retailer ODDITY Tech ODD, had quite a successful public debut.
With stocks surging to new highs and inflation starting to ease, investors are warming up to IPOs again. In the second quarter of 2023, 23 IPOs raised a combined $6.6 billion, marking the highest proceeds in six quarters, according to Renaissance.
British chip designer Arm is reportedly planning a listing later this year with Nvidia NVDA as an anchor investor. Softbank-backed Arm, whose customers include Apple AAPL and Qualcomm QCOM, is likely to be the most valuable company to go public this year.
IPO ETFs provide diversified exposure to newly public companies before they join other core US equity indexes. For instance, Google GOOGL and Facebook META were included in the S&P 500 index about two years after going public, while Tesla TSLA was included 10 years after its IPO.
The Renaissance IPO ETF IPO holds the largest, most liquid newly-listed U.S. IPOs. Companies that have been public for three years are removed at the next quarterly review.
The First Trust US Equity Opportunities ETF FPX holds the 100 largest and most liquid U.S. IPOs, including spin-offs. Eligible stocks are purchased after the close on the 6th trading day and held for about four years. It is up about 18% this year.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Renaissance IPO ETF (IPO): ETF Research Reports
First Trust US Equity Opportunities ETF (FPX): ETF Research Reports
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CAVA Group, Inc. (CAVA) : Free Stock Analysis Report
ODDITY Tech Ltd. (ODD): 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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Softbank-backed Arm, whose customers include Apple AAPL and Qualcomm QCOM, is likely to be the most valuable company to go public this year. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Renaissance IPO ETF (IPO): ETF Research Reports First Trust US Equity Opportunities ETF (FPX): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report ODDITY Tech Ltd. (ODD): Free Stock Analysis Report To read this article on Zacks.com click here. British chip designer Arm is reportedly planning a listing later this year with Nvidia NVDA as an anchor investor.
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Renaissance IPO ETF (IPO): ETF Research Reports First Trust US Equity Opportunities ETF (FPX): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report ODDITY Tech Ltd. (ODD): Free Stock Analysis Report To read this article on Zacks.com click here. Softbank-backed Arm, whose customers include Apple AAPL and Qualcomm QCOM, is likely to be the most valuable company to go public this year. (13:20) - Renaissance Capital IPO Index and ETF: IPO (16:30) - How Can IPOs Benefit Investors' Portfolios?
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Renaissance IPO ETF (IPO): ETF Research Reports First Trust US Equity Opportunities ETF (FPX): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report ODDITY Tech Ltd. (ODD): Free Stock Analysis Report To read this article on Zacks.com click here. Softbank-backed Arm, whose customers include Apple AAPL and Qualcomm QCOM, is likely to be the most valuable company to go public this year. (13:20) - Renaissance Capital IPO Index and ETF: IPO (16:30) - How Can IPOs Benefit Investors' Portfolios?
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Softbank-backed Arm, whose customers include Apple AAPL and Qualcomm QCOM, is likely to be the most valuable company to go public this year. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Renaissance IPO ETF (IPO): ETF Research Reports First Trust US Equity Opportunities ETF (FPX): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report ODDITY Tech Ltd. (ODD): Free Stock Analysis Report To read this article on Zacks.com click here. (13:20) - Renaissance Capital IPO Index and ETF: IPO (16:30) - How Can IPOs Benefit Investors' Portfolios?
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14673.0
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2023-07-27 00:00:00 UTC
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Epic Games asks US Supreme Court let App Store order take effect
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AAPL
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https://www.nasdaq.com/articles/epic-games-asks-us-supreme-court-let-app-store-order-take-effect
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By Andrew Chung
July 27 (Reuters) - Epic Games on Thursday asked the U.S. Supreme Court to allow a lower court ruling to take effect against Apple Inc AAPL.O that could force the iPhone maker to change payment practices in its App Store.
Epic, maker of the popular video game "Fortnite," filed a request asking the nation's highest court to lift a July 17 decision by the San Francisco-based 9th U.S. Circuit Court of Appeals to pause its ruling that upheld an injunction against Apple. The decision gave Apple 90 days to pursue an appeal at the Supreme Court.
In the closely-watched case, Epic filed its antitrust lawsuit in 2020 challenging Apple's App Store practices.
The 9th Circuit in April upheld a federal judge's 2021 order that could require Apple to allow developers to provide links and buttons that direct consumers to payment options outside the App Store and avoid paying sales commissions to Apple.
The trial judge had found that Apple violated California's unfair competition laws by barring developers from "steering" users to other ways to pay, but also that Apple's rules did not violate antitrust laws.
In seeking to pause the injunction from taking effect while it readies an appeal to the Supreme Court, Apple told the 9th Circuit that the trial judge had erred in prohibiting Apple from enforcing its rules against all app developers in the United States, rather than just Epic itself.
"Apple will be required to change its business model to comply with the injunction before judicial review has been completed," the company told the 9th Circuit. "The undisputed evidence establishes that the injunction will limit Apple’s ability to protect users from fraud, scams, malware, spyware, and objectionable content."
Epic told the Supreme Court on Thursday that the 9th Circuit's standard for putting cases on hold is "far too lenient."
(Reporting by Andrew Chung in New York; Additional reporting by John Kruzel in Washington; Editing by Daniel Wallis)
((andrew.chung@thomsonreuters.com; 332.219.1428 ; 646.407.9441 mobile;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Andrew Chung July 27 (Reuters) - Epic Games on Thursday asked the U.S. Supreme Court to allow a lower court ruling to take effect against Apple Inc AAPL.O that could force the iPhone maker to change payment practices in its App Store. Epic, maker of the popular video game "Fortnite," filed a request asking the nation's highest court to lift a July 17 decision by the San Francisco-based 9th U.S. "Apple will be required to change its business model to comply with the injunction before judicial review has been completed," the company told the 9th Circuit.
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By Andrew Chung July 27 (Reuters) - Epic Games on Thursday asked the U.S. Supreme Court to allow a lower court ruling to take effect against Apple Inc AAPL.O that could force the iPhone maker to change payment practices in its App Store. In the closely-watched case, Epic filed its antitrust lawsuit in 2020 challenging Apple's App Store practices. In seeking to pause the injunction from taking effect while it readies an appeal to the Supreme Court, Apple told the 9th Circuit that the trial judge had erred in prohibiting Apple from enforcing its rules against all app developers in the United States, rather than just Epic itself.
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By Andrew Chung July 27 (Reuters) - Epic Games on Thursday asked the U.S. Supreme Court to allow a lower court ruling to take effect against Apple Inc AAPL.O that could force the iPhone maker to change payment practices in its App Store. The 9th Circuit in April upheld a federal judge's 2021 order that could require Apple to allow developers to provide links and buttons that direct consumers to payment options outside the App Store and avoid paying sales commissions to Apple. In seeking to pause the injunction from taking effect while it readies an appeal to the Supreme Court, Apple told the 9th Circuit that the trial judge had erred in prohibiting Apple from enforcing its rules against all app developers in the United States, rather than just Epic itself.
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By Andrew Chung July 27 (Reuters) - Epic Games on Thursday asked the U.S. Supreme Court to allow a lower court ruling to take effect against Apple Inc AAPL.O that could force the iPhone maker to change payment practices in its App Store. Circuit Court of Appeals to pause its ruling that upheld an injunction against Apple. In seeking to pause the injunction from taking effect while it readies an appeal to the Supreme Court, Apple told the 9th Circuit that the trial judge had erred in prohibiting Apple from enforcing its rules against all app developers in the United States, rather than just Epic itself.
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14674.0
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2023-07-27 00:00:00 UTC
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Earnings Season: 3 Upcoming Reports Investors Can't Ignore
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AAPL
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https://www.nasdaq.com/articles/earnings-season%3A-3-upcoming-reports-investors-cant-ignore
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nan
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nan
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Earnings season can sometimes feel hectic, with a surplus of companies unveiling quarterly results daily. Still, that’s just the nature of the period, and seasoned investors have become well used to this chaotic nature.
For 2023 Q2, S&P 500 earnings are expected to decline -9.8% from the same period last year on -0.4% lower revenues. This would follow the -3.4% decline in index earnings in the preceding period (2023 Q1) and the -5.4% decline in 2022 Q4.
Sheraz Mian, Director of Research at Zacks, says, “The picture emerging from the Q2 earnings season is one of continued resilience and strength, with an above-average proportion of companies not only beating estimates but also providing reassuring guidance for the coming periods.”
Below is a chart illustrating the quarterly earnings and revenue growth expectations for the S&P 500.
Image Source: Zacks Investment Research
For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture
And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. But how do expectations stack up for the three heading into their respective releases?
Apple - August 3rd
Analysts have shown modest positivity for the technology titan’s quarter to be reported, with the $1.19 per share estimate revised marginally higher over the last several months.
Image Source: Zacks Investment Research
Regarding the top line, our consensus quarterly revenue estimate stands at $81.3 billion, implying a pullback of roughly 2% from the year-ago quarter. It’s worth noting that the quarterly sales estimate has been revised 3% lower from the $84.1 billion expected at the beginning of May.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Further, our expectation for quarterly iPhone revenue is $40.1 billion, implying a slight 1.4% decrease from the year-ago quarter. The technology titan exceeded iPhone revenue expectations in its latest release, delivering a 4% beat.
While iPhone revenue remains important, the company’s Services results will also be closely watched, which includes cloud services, the App Store, Apple Music, Apple Pay, and several others. The Zacks Consensus Estimate for Services revenue resides at $20.8 billion, 6% higher than the year-ago quarter.
Amazon - August 3rd
Analysts raised their expectations for Amazon’s quarter to be reported back in May, with the $0.34 per share estimate remaining unchanged since. Impressively, the value reflects a 240% improvement from the year-ago quarter.
Image Source: Zacks Investment Research
The company’s revenue is also expected to see solid growth, with the $131.5 billion quarterly estimate indicating a 9% change year-over-year. Analysts have primarily left their top-line estimates unchanged over the last several months.
Similar to AAPL, Amazon’s revenue has a seasonal nature.
Image Source: Zacks Investment Research
Of course, investors will closely monitor Amazon Web Services (AWS) results. The Zacks Consensus estimate for AWS net sales stands at $21.5 billion, 9% higher than year-ago sales of $19.7 billion but reflecting a slight slowdown relative to prior year-over-year growth rates.
Uber Technologies - August 1st
Analysts have been consistently revising their expectations higher for Uber’s quarterly release, with the -$0.01 per share loss estimate up a sizable 80% since the beginning of May and reflecting a year-over-year improvement of 100%.
Image Source: Zacks Investment Research
Top-line expectations have remained essentially unchanged, however, with Uber forecasted to post $9.3 billion in quarterly revenue, reflecting growth of 15% from the same period last year. Uber’s sales growth has been impressive, as we can see below.
Image Source: Zacks Investment Research
Of course, the overall number of Trips is a big focus within Uber’s quarterly results, an area that continues to snowball. For the upcoming release, the Zacks Consensus Estimate for quarterly Trips sits at 2.2 billion, suggesting an improvement of 21% from Q2 2022.
Bottom Line
While earnings season can become overwhelming, that’s just the nature of the period. We’ve had many companies come out and post better-than-expected results so far, helping us avoid the ‘earnings apocalypse’ many feared.
And next week, we’ll hear from several notable companies, including Amazon AMZN, Apple AAPL, and Uber Technologies UBER.
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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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Image Source: Zacks Investment Research For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. Similar to AAPL, Amazon’s revenue has a seasonal nature. And next week, we’ll hear from several notable companies, including Amazon AMZN, Apple AAPL, and Uber Technologies UBER.
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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 Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. Similar to AAPL, Amazon’s revenue has a seasonal nature.
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Image Source: Zacks Investment Research For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Similar to AAPL, Amazon’s revenue has a seasonal nature.
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Image Source: Zacks Investment Research For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. Similar to AAPL, Amazon’s revenue has a seasonal nature. And next week, we’ll hear from several notable companies, including Amazon AMZN, Apple AAPL, and Uber Technologies UBER.
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14675.0
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2023-07-27 00:00:00 UTC
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If You Can Only Buy One Penny Stock, It Better Be One of These 3 Names
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AAPL
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https://www.nasdaq.com/articles/if-you-can-only-buy-one-penny-stock-it-better-be-one-of-these-3-names
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Penny stocks are generally defined as securities that trade for less than $5 a share. These stocks can be volatile and unpredictable, leading many investors to avoid them. However, some investors with a high tolerance for risk specialize in trading penny stocks. Some have made a fortune doing so. Other investors take long-term positions in beaten-down penny stocks, buying shares on the cheap and riding them to big profits over extended periods of time. Many legendary companies have been penny stocks at some point in their existence, including Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD) and Ford Motor Co. (NYSE:F). Some of the most famous investors in the world will bet on key penny stock investments from time to time. While they’re not without risk, the rewards offered by penny stocks can be enormous. If you can only buy one penny stock, it better be one of these three names.
Tilray Brands (TLRY)
Source: Lori Butcher / Shutterstock.com
Canadian cannabis producer Tilray Brands’ (NASDAQ:TLRY) stock just jumped 15% in a single trading session after the company reported better-than-expected earnings. The share price is now just under $2 and has bounced off its 52-week low of $1.50. The surge comes after Tilray reported a net loss for the three months ended May 31 of $119.8 million, or 15 cents a share, which was much better than the $457.8 million, or 99 cents a share, the company lost a year earlier.
At the same time, Tilray said its revenue increased 20% to $184.2 million, up from $153.3 million a year earlier. The earnings per share (EPS) missed analysts’ forecasts for a loss of five cents a share, although the revenues were well above analysts’ expectations of $154 million. A note of caution: Tilray Brands has been treated as a meme stock in the past, and its shares have been squeezed multiple times. TLRY stock has been a house of pain long-term, with its share price having fallen 99% since just after its market debut in 2018. Proceed carefully.
IMAC Holdings (BACK)
Source: Microgen / Shutterstock
Anytime a legendary investor takes an interest in a penny stock, it generates buzz. Such was the case a year ago when sources revealed that Wall Street wunderkind Peter Lynch had, at age 78, invested $1.2 million in IMAC Holdings (NASDAQ:BACK), a tiny company providing alternative medical treatments — notably sports injuries. Given that IMAC’s market capitalization is less than $4 million, Lynch’s position was significant and generated media headlines around the world.
While Lynch confirmed the investment in BACK stock, he didn’t say why he took the position, though he has said that he likes small-cap stocks because they are “less well followed” by investors. Famous for running Fidelity’s Magellan Fund in the late 1970s into the 1990s, Lynch posted annualized returns averaging 29% over a 13-year period. As might be expected, BACK stock got a nice boost from news of Lynch’s position, rising as high as $1.16 a share. The stock has since fallen back to just 11 cents. It’s not clear if Lynch remains a stockholder.
Eastman Kodak (KODK)
Eastman Kodak (NYSE:KODK) is still a penny stock, but just barely. The legendary photography company based in Rochester, New York, has a share price currently hovering right around $5, though it was as low as $3 in May of this year. KODK stock has been staging a rebound, having risen 80% so far in 2023. The recovery is welcome news for Kodak, whose business fell on hard times as smartphones became equipped with digital cameras, eliminating the need for standalone cameras and photographic film the company produced.
Kodak actually filed for Chapter 11 bankruptcy in 2012. KODK stock was trading near $40 a share in 2014 after the company emerged from bankruptcy. The share price has been in steady decline since, as several efforts to turn around the business failed. However, the stock has bounced higher over the last eight months. The resurgence appeared to be due to the company restructuring its finances and its new focus on developing pharmaceutical materials and licensing the Kodak brand to third parties.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post If You Can Only Buy One Penny Stock, It Better Be One of These 3 Names 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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Many legendary companies have been penny stocks at some point in their existence, including Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD) and Ford Motor Co. (NYSE:F). Read More: Penny Stocks — How to Profit Without Getting Scammed On the date of publication, Joel Baglole held a long position in AAPL. Other investors take long-term positions in beaten-down penny stocks, buying shares on the cheap and riding them to big profits over extended periods of time.
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Many legendary companies have been penny stocks at some point in their existence, including Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD) and Ford Motor Co. (NYSE:F). Read More: Penny Stocks — How to Profit Without Getting Scammed On the date of publication, Joel Baglole held a long position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Penny stocks are generally defined as securities that trade for less than $5 a share.
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Many legendary companies have been penny stocks at some point in their existence, including Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD) and Ford Motor Co. (NYSE:F). Read More: Penny Stocks — How to Profit Without Getting Scammed On the date of publication, Joel Baglole held a long position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Penny stocks are generally defined as securities that trade for less than $5 a share.
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Many legendary companies have been penny stocks at some point in their existence, including Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD) and Ford Motor Co. (NYSE:F). Read More: Penny Stocks — How to Profit Without Getting Scammed On the date of publication, Joel Baglole held a long position in AAPL. The share price is now just under $2 and has bounced off its 52-week low of $1.50.
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14676.0
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2023-07-27 00:00:00 UTC
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Apple Reports After the Close on 8/3 -- Options Contracts Expire the Next Day
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AAPL
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https://www.nasdaq.com/articles/apple-reports-after-the-close-on-8-3-options-contracts-expire-the-next-day
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nan
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nan
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 8/3 after the close, with earnings estimates of $1.19/share on $81.67 Billion of revenue. Looking back, the recent Apple earnings history looks like this:
PERIOD EARNINGS DATE EARNINGS
Q2 2023 5/4/2023 1.520
Q1 2023 2/2/2023 1.880
Q4 2022 10/27/2022 1.290
Q3 2022 7/28/2022 1.200
Q2 2022 4/28/2022 1.520
The company has an impressive long-term earnings per share chart:
And with equally impressive revenue growth:
But earnings reports can often uniquely bring abrupt volatility to a stock, in either direction, as investors digest the fundamental details. And that volatility can be a stock options trader's dream come true — so such traders will be interested to know that Apple has options available that expire August 04th.
Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas.
Apple's current dividend yield is 0.49%, with the following Apple Dividend History. Also, dividend investors should check out the following ideas for Top Dividends and Monthly Dividend Paying Stocks.
Also see:
QOMO YTD Return
Top Ten Hedge Funds Holding OSTR
Funds Holding PSXP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 8/3 after the close, with earnings estimates of $1.19/share on $81.67 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. The company has an impressive long-term earnings per share chart: And with equally impressive revenue growth: But earnings reports can often uniquely bring abrupt volatility to a stock, in either direction, as investors digest the fundamental details.
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 8/3 after the close, with earnings estimates of $1.19/share on $81.67 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. Looking back, the recent Apple earnings history looks like this:
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 8/3 after the close, with earnings estimates of $1.19/share on $81.67 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. The company has an impressive long-term earnings per share chart: And with equally impressive revenue growth: But earnings reports can often uniquely bring abrupt volatility to a stock, in either direction, as investors digest the fundamental details.
|
According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 8/3 after the close, with earnings estimates of $1.19/share on $81.67 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. Looking back, the recent Apple earnings history looks like this:
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14677.0
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2023-07-27 00:00:00 UTC
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Incredible Meta Earnings Confirm the Big Tech Bull Thesis
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AAPL
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https://www.nasdaq.com/articles/incredible-meta-earnings-confirm-the-big-tech-bull-thesis
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
So much for the death of Big Tech.
Throughout 2022, it seemed like it might be the end of an era for Big Tech. Instead, a year later, it looks like it’s the start of the best chapter yet in Big Tech’s story.
And it is all thanks to one thing: artificial intelligence.
The likes of Meta (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL) were all hobbled by a slowing economy and runaway inflation in 2022. But they’ve come roaring back to life here in 2023.
And that was on full display last night in Meta’s second-quarter earnings report.
Throughout 2022, Meta looked like a sinking ship. Revenues were dropping. Profit margins were collapsing. Cash flows were evaporating.
In last night’s earnings report, though, Meta reported its biggest revenue growth rate since 2021, its first quarter of expanding profit margins in over two years, and free cash flow growth of over 100%.
Meta has flipped the script on its ugly 2022 growth trends in an emphatic fashion.
Now, in 2023, Meta is back to its normal dominant self.
What changed? AI.
Thanks to AI, Meta Is Making a Monster Comeback
Over the past 12 months, Meta has increasingly used AI to drive improved business results.
Improving Time Spent
Meta is using AI to get you to spend more time on its apps. The company is increasingly using AI-powered recommendation algorithms to populate content on your Facebook and Instagram Feeds. For the first time ever this past quarter, AI-recommend content constituted the bulk of content consumption on Facebook.
And guess what? Facebook users are liking it. Thanks to its AI-powered recommendation algorithms, time spent on Facebook – the “dinosaur” app that everyone expected to die – jumped a very impressive 7% last quarter.
Reheating Ad Revenues
Meta is also using AI to get advertisers to spend more on its platforms. The firm is increasingly integrating AI into its monetization tools to create a suite of automated ad products. These products – called Meta Advantage – are becoming very popular. Last night, CEO Mark Zuckerberg said that “almost all of our advertisers are using at least one of our AI-driven products.”
The result? A huge jump in ad revenues. Average revenue per user across Meta’s apps jumped 8% last quarter to its third-highest level ever. In fact, excluding holiday quarters (when ad spending is usually highest), it reached its highest-ever level. Total ad revenues rose 12%, marking their best growth rate since 2021.
Boosting Operational Efficiency
Lastly, Meta is using AI to improve its own operational efficiency. The company went through a ton of layoffs last year. And now it’s replacing a bulk of that lost labor with AI-powered automation tools. These are allowing Meta to “do more with less,” if you will. And that is enabling the company to reaccelerate revenue growth without adding marginal costs.
Again, the result is financially positive. Operating margins jumped to 29% last quarter, marking their first quarter of year-over-year expansion since early 2021. Profit margins are expected to keep improving for the foreseeable future.
Overall, over the past 12 months, Meta has increasingly deployed AI across its business to go from a dumpster fire to one of the most promising companies in the world.
The proof is in the pudding.
Without AI, Meta saw its stock drop 75% throughout 2021 and ‘22. And with it, Meta has seen its stock rally more than 150% in 2023.
That is the very real power of AI.
The Final Word on Red-Hot Meta Earnings
But AI isn’t just creating huge tailwinds for Big Tech stocks. It is creating huge tailwinds for any company – big or small – that is effectively using AI to drive improved business outcomes.
One such company is the very one that started this whole AI Boom – OpenAI, the creator of ChatGPT.
Already, 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.
We think 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 META stock.
Though I did 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 in the 1980s or Amazon 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.
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The post Incredible Meta Earnings Confirm the Big Tech Bull Thesis 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.
|
The likes of Meta (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL) were all hobbled by a slowing economy and runaway inflation in 2022. Thanks to its AI-powered recommendation algorithms, time spent on Facebook – the “dinosaur” app that everyone expected to die – jumped a very impressive 7% last quarter. The Final Word on Red-Hot Meta Earnings But AI isn’t just creating huge tailwinds for Big Tech stocks.
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The likes of Meta (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL) were all hobbled by a slowing economy and runaway inflation in 2022. In last night’s earnings report, though, Meta reported its biggest revenue growth rate since 2021, its first quarter of expanding profit margins in over two years, and free cash flow growth of over 100%. Thanks to AI, Meta Is Making a Monster Comeback Over the past 12 months, Meta has increasingly used AI to drive improved business results.
|
The likes of Meta (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL) were all hobbled by a slowing economy and runaway inflation in 2022. In last night’s earnings report, though, Meta reported its biggest revenue growth rate since 2021, its first quarter of expanding profit margins in over two years, and free cash flow growth of over 100%. Thanks to AI, Meta Is Making a Monster Comeback Over the past 12 months, Meta has increasingly used AI to drive improved business results.
|
The likes of Meta (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL) were all hobbled by a slowing economy and runaway inflation in 2022. Instead, a year later, it looks like it’s the start of the best chapter yet in Big Tech’s story. In last night’s earnings report, though, Meta reported its biggest revenue growth rate since 2021, its first quarter of expanding profit margins in over two years, and free cash flow growth of over 100%.
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14678.0
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2023-07-27 00:00:00 UTC
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GRAPHIC-Dow Jones index set to end 13 day winning streak
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AAPL
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https://www.nasdaq.com/articles/graphic-dow-jones-index-set-to-end-13-day-winning-streak
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nan
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nan
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By Noel Randewich
July 27 (Reuters) - The Dow Jones Industrial Average .DJI was on the verge of ending its longest winning streak in 36 years on Thursday, successive gains showing that Wall Street's tech-driven rally is broadening to include a wider chunk of the stock market.
The Dow closed higher for 13 straight sessions through Wednesday, its longest series of positive closes since 1987, and was last down 0.5% on Thursday afternoon after gaining earlier in the session.
While the S&P 500 .SPX, which includes over 500 stocks, is many investment professionals' preferred stock market benchmark, the Dow's daily moves are widely quoted in news media, making it widely recognized by many Americans.
Its recent rally comes as traders widely believe that the U.S. Federal Reserve's 25 basis point rate hike on Wednesday was the last in its campaign to control inflation. Investors are also optimistic the U.S. economy will avoid a recession.
The Dow's longest-ever winning streak was 14 sessions, set in 1897, according to S&P Dow Jones Indices.
Even after its recent gains, the Dow has lagged Wall Street's other main indexes in 2023. It is up 7% year to date, compared to a 18% gain in the S&P 500 and the Nasdaq's .IXIC 35% surge.
"The Dow has been the laggard of the big three, and now it seems to be playing catch up. I think that catch-up trade is bringing us to a healthier place," said Art Hogan, chief market strategist at B Riley Wealth.
The Dow's 30 constituents do not include market heavyweights Tesla TSLA.O, Meta Platforms META.O, Nvidia NVDA.O or Amazon AMZN.O, major winners in a stock market rally this year fueled by optimism about artificial intelligence and an eventual end to the Fed's rate hikes.
"We are actually seeing the market broaden out, so it's not just about seven artificial intelligence anointed darlings," Hogan added.
Dow components Salesforce CRM.N, Apple AAPL.O and Microsoft MSFT.O have rallied between 40% and 70% this year, making them the Dow's top performers. But the Dow has also been held back by declines of 10% or more in Amgen AMGN.O, Chevron CVX.N, Verizon Communications VZ.N and Walgreen Boots Alliance WBA.O. Overall, nearly half of Dow constituents remain down in 2023, even after outperforming so far in July.
While the Dow's recent winning streak is unusually long, its overall strength has not been exceptional. The index climbed 4.8% since July 7, compared to 3.1% increase in the Nasdaq and a 3.4% rise in the S&P 500.
The Dow's last 13-day winning streak in January 1987 produced a gain of 11.1%.
Dow lags other U.S. stock indexes in 2023 https://tmsnrt.rs/3rMne3k
Dow components in 2023 https://tmsnrt.rs/44J37Sc
Dow Jones vs other stock indexes https://tmsnrt.rs/3OerL6h
(Reporting by Noel Randewich; Editing by Alison Williams)
((noel.randewich@tr.com; Twitter: @randewich;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dow components Salesforce CRM.N, Apple AAPL.O and Microsoft MSFT.O have rallied between 40% and 70% this year, making them the Dow's top performers. By Noel Randewich July 27 (Reuters) - The Dow Jones Industrial Average .DJI was on the verge of ending its longest winning streak in 36 years on Thursday, successive gains showing that Wall Street's tech-driven rally is broadening to include a wider chunk of the stock market. Its recent rally comes as traders widely believe that the U.S. Federal Reserve's 25 basis point rate hike on Wednesday was the last in its campaign to control inflation.
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Dow components Salesforce CRM.N, Apple AAPL.O and Microsoft MSFT.O have rallied between 40% and 70% this year, making them the Dow's top performers. By Noel Randewich July 27 (Reuters) - The Dow Jones Industrial Average .DJI was on the verge of ending its longest winning streak in 36 years on Thursday, successive gains showing that Wall Street's tech-driven rally is broadening to include a wider chunk of the stock market. Even after its recent gains, the Dow has lagged Wall Street's other main indexes in 2023.
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Dow components Salesforce CRM.N, Apple AAPL.O and Microsoft MSFT.O have rallied between 40% and 70% this year, making them the Dow's top performers. By Noel Randewich July 27 (Reuters) - The Dow Jones Industrial Average .DJI was on the verge of ending its longest winning streak in 36 years on Thursday, successive gains showing that Wall Street's tech-driven rally is broadening to include a wider chunk of the stock market. The Dow's 30 constituents do not include market heavyweights Tesla TSLA.O, Meta Platforms META.O, Nvidia NVDA.O or Amazon AMZN.O, major winners in a stock market rally this year fueled by optimism about artificial intelligence and an eventual end to the Fed's rate hikes.
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Dow components Salesforce CRM.N, Apple AAPL.O and Microsoft MSFT.O have rallied between 40% and 70% this year, making them the Dow's top performers. By Noel Randewich July 27 (Reuters) - The Dow Jones Industrial Average .DJI was on the verge of ending its longest winning streak in 36 years on Thursday, successive gains showing that Wall Street's tech-driven rally is broadening to include a wider chunk of the stock market. The Dow's longest-ever winning streak was 14 sessions, set in 1897, according to S&P Dow Jones Indices.
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14679.0
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2023-07-27 00:00:00 UTC
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55.3% of Warren Buffett's $380 Billion Portfolio Is Invested in These 2 Dividend Stocks
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AAPL
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https://www.nasdaq.com/articles/55.3-of-warren-buffetts-%24380-billion-portfolio-is-invested-in-these-2-dividend-stocks
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Rather than pay a dividend to shareholders, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett prefers his company to use cash to invest in and acquire businesses and fund stock buybacks. But that doesn't mean The Oracle of Omaha isn't a big dividend fan.
In fact, each of the top 10 holdings in the investment conglomerate's $380 billion stock portfolio pays dividends -- and 55.3% of its total portfolio weight is invested in just two dividend-paying companies. Read on as two Motley Fool contributors explain why Buffett (through Berkshire) has bet so big on these two dividend stocks.
Image source: The Motley Fool.
Apple's customer loyalty is a valuable commodity
Parkev Tatevosian: Apple (NASDAQ: AAPL) is not often thought of as a dividend stock. Most investors still focus on the growth stock and tech stock aspects of this company. But Apple does pay out a regular dividend and it has more than doubled its per-share payout over the past 10 years.
It's also not likely that dividends are the main reason the stock is such a big part of Buffett and Berkshire's portfolio (roughly 46% of the portfolio is Apple stock). This stock likely attracts Buffett more for its share price appreciation. The passive income from this low-yield stock is more of a cherry on top for Berkshire. Although it is fair to say that the Oracle of Omaha appreciates the passive income Apple stock provides and the fact that it's growing.
Between 2013 and 2022, Apple's per-share dividend more than doubled, going from $0.41 to $0.90. More importantly, Apple's earnings per share increased by a compounded annual rate of 14.5% in that period. Why is that important? Because earnings are crucial to dividend payments. Without sufficient profits, dividends must be paid from unsustainable sources like savings or debt.
Considering that Apple has built strong loyalty among consumers over several decades, it's reasonable to assume that it can continue to grow earnings, even at a slower pace than in the previous decade. Additionally, Apple's ecosystem of apps, services, and hardware makes it difficult for customers to switch brands. The savvy investor that he is, Buffett understands the value of customer loyalty.
AAPL PE Ratio (Forward 1y) data by YCharts
Warren Buffett has 46.4% of his portfolio allocated to Apple stock. With Apple's forward price-to-earnings ratio of 29.2, the stock is admittedly pricey. I would not advise investors to distribute a similar share percentage in their portfolios. That said, a diversified portfolio that includes Apple stock has a reasonable chance of increasing your wealth in the long run.
Buffett helped save this company and reaped the dividends
Keith Noonan: Warren Buffett has had an up-and-down (and up again) relationship with Bank of America (NYSE: BAC). After building a position in the banking giant's stock for Berkshire's portfolio, The Oracle of Omaha liquidated his company's entire position in the banking giant at the end of 2010. Lingering challenges stemming from the 2008 banking crisis and the Great Recession were pressuring Bank of America's performance, and Buffett had lost confidence in the stock.
But as Bank of America struggled in 2011, Buffett contacted the company's CEO to discuss a potential investment that could help the bank raise capital and avert looming financial issues.
In addition to buying $5 billion worth of Bank of America preferred stock, Buffett wound up receiving warrants to purchase up to 700 million shares of the company's common stock at a price of $7.14 per share. With BofA trading at roughly $23.50 per share in June 2017, Buffett exercised the warrants.
The move immediately made Berkshire Bank of America's largest shareholder, and it remains so to this day. Buffett's company owns roughly 13% of Bank of America, and its stock accounts for 8.9% of Berkshire's total stock portfolio.
Since the warrants were exercised, the company has also doubled its dividend.
BAC Dividend data by YCharts
BofA stock currently has a forward yield of roughly 2.9%, and there's a good chance that investors who buy shares at today's prices will be able to enjoy elevated yield down the road. Earlier this month, the company raised its quarterly payout from $0.22 per share to $0.24 per share. With the upcoming payout, the banking giant will have raised its dividend on an annual basis for 11 straight years.
Business performance has also been strong as of late. Spurred by higher interest rates and an influx of business following the collapse of some regional banks, Bank of America's revenue climbed 11% year over year in the second quarter to $25.2 billion. Meanwhile, net income was up 19% year over year to reach $7.4 billion.
Economic cycles will continue to have a significant impact on BofA's performance, but it's clear that Buffett has confidence in the company's long-term outlook. Berkshire once again increased its stake in Bank of America in Q1, and there's a good chance the financial giant will remain the investment conglomerate's second-largest holding for years to come.
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 17, 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. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL PE Ratio (Forward 1y) data by YCharts Warren Buffett has 46.4% of his portfolio allocated to Apple stock. Apple's customer loyalty is a valuable commodity Parkev Tatevosian: Apple (NASDAQ: AAPL) is not often thought of as a dividend stock. Economic cycles will continue to have a significant impact on BofA's performance, but it's clear that Buffett has confidence in the company's long-term outlook.
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Apple's customer loyalty is a valuable commodity Parkev Tatevosian: Apple (NASDAQ: AAPL) is not often thought of as a dividend stock. AAPL PE Ratio (Forward 1y) data by YCharts Warren Buffett has 46.4% of his portfolio allocated to Apple stock. Rather than pay a dividend to shareholders, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett prefers his company to use cash to invest in and acquire businesses and fund stock buybacks.
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Apple's customer loyalty is a valuable commodity Parkev Tatevosian: Apple (NASDAQ: AAPL) is not often thought of as a dividend stock. AAPL PE Ratio (Forward 1y) data by YCharts Warren Buffett has 46.4% of his portfolio allocated to Apple stock. It's also not likely that dividends are the main reason the stock is such a big part of Buffett and Berkshire's portfolio (roughly 46% of the portfolio is Apple stock).
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Apple's customer loyalty is a valuable commodity Parkev Tatevosian: Apple (NASDAQ: AAPL) is not often thought of as a dividend stock. AAPL PE Ratio (Forward 1y) data by YCharts Warren Buffett has 46.4% of his portfolio allocated to Apple stock. But Apple does pay out a regular dividend and it has more than doubled its per-share payout over the past 10 years.
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14680.0
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2023-07-27 00:00:00 UTC
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Meta, Microsoft, and Amazon Team Up to Take Down Apple and Alphabet in a Key Segment. Here's What Investors Should Know.
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AAPL
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https://www.nasdaq.com/articles/meta-microsoft-and-amazon-team-up-to-take-down-apple-and-alphabet-in-a-key-segment.-heres
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nan
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A shot was just fired in a war between several technology giants. Is it an artificial intelligence (AI) skirmish? Nope. In this case, it's a map war. On Wednesday, the Overture Maps Foundation announced the release of an open map dataset that includes data on more than 59 million places across the world.
That might not seem overly momentous at first glance. But the real story is that Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) appear to be teaming up to try to take down Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) in a key segment. Here's what investors should know.
Image source: Getty Images.
A lucrative duopoly
Alphabet's Google Maps currently enjoys a market share of around 80% in the mobile maps market. That's not quite monopoly status, but it's close.
The mobile maps market is better described as a duopoly. Apple Maps claims a market share of between 10% and 12%. That doesn't leave much of the market to all of the other competitors.
Neither Alphabet nor Apple discloses exactly how much money they make from their respective map products, however, Morgan Stanley reportedly estimates that Google Maps' mobile version will rake in over $9.8 billion this year. Adding the desktop version brings the total estimated haul to more than $11 billion.
Apple Maps undoubtedly generates significantly less revenue, but the company has placed a huge bet on the app with the expectations of a positive return on investment. In 2019, Apple revealed in a response to the U.S. House of Representatives Judiciary Committee that it had "invested billions of dollars in Apple Maps."
Ready to rumble
Meta, Microsoft, and Amazon apparently decided that they weren't happy with the Google-Apple duopoly in maps. In December 2022, the three companies joined forces, along with GPS maker TomTom, to work with the Linux Foundation to form the Overture Maps Foundation.
Overture's goal is to build reliable map data that can be used under an open data license. The organization isn't creating maps itself, though. Instead, it wants to give software developers the data they need to build their own maps.
The three founding giants of Overture aren't working together merely to rain on Google's and Apple's parade, though. They have their own interests in mind as well.
Meta's underlying motivation seems to be spurring the development of the metaverse. Map data should help developers create "digital twins" of the real world that exist in the virtual universe that's an important vision for Meta CEO Mark Zuckerberg.
Microsoft appears to have an AI angle. Russell Dicker, Microsoft's corporate vice president of products, maps, and local, said in a press release announcing Overture's formation that "current and next-generation map products require open map data built using AI that's reliable, easy-to-use, and interoperable."
Amazon knows that many customers who use its Amazon Web Services (AWS) cloud platform use maps extensively. Open map data could spark more development of applications that incorporate maps -- and run on AWS.
Investing implications
Investors' reaction to the latest development in the map war was basically a yawn. Alphabet stock jumped and Microsoft stock fell after their respective second-quarter updates. Shares of Apple and Meta rose modestly, while Amazon stock slipped a little. None of these moves appeared to be related to Overture's announcement.
It's possible that Alphabet and Apple could feel some pain if a large number of developers switch from using their maps to building their own maps using Overture's data. However, the two companies probably aren't too worried at this point.
For many developers, using Google Maps and Apple Maps is convenient and accomplishes their goals. They could be less inclined to expend the effort to build their own maps even with detailed and reliable data available from Overture.
The map war between Meta, Microsoft, and Amazon vs. Google and Apple might become more heated, but for now, AI appears to be a much more significant battleground.
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 17, 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, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But the real story is that Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) appear to be teaming up to try to take down Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) in a key segment. Apple Maps undoubtedly generates significantly less revenue, but the company has placed a huge bet on the app with the expectations of a positive return on investment. Ready to rumble Meta, Microsoft, and Amazon apparently decided that they weren't happy with the Google-Apple duopoly in maps.
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But the real story is that Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) appear to be teaming up to try to take down Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) in a key segment. 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 Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft.
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But the real story is that Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) appear to be teaming up to try to take down Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) in a key segment. Russell Dicker, Microsoft's corporate vice president of products, maps, and local, said in a press release announcing Overture's formation that "current and next-generation map products require open map data built using AI that's reliable, easy-to-use, and interoperable." It's possible that Alphabet and Apple could feel some pain if a large number of developers switch from using their maps to building their own maps using Overture's data.
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But the real story is that Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) appear to be teaming up to try to take down Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) in a key segment. The map war between Meta, Microsoft, and Amazon vs. Google and Apple might become more heated, but for now, AI appears to be a much more significant battleground. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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14681.0
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2023-07-27 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-55
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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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14682.0
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2023-07-27 00:00:00 UTC
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Wish You'd Bought Apple Stock in 2009? Top Analyst Dan Ives Says Do This Right Now.
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AAPL
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https://www.nasdaq.com/articles/wish-youd-bought-apple-stock-in-2009-top-analyst-dan-ives-says-do-this-right-now.
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Every investor has one -- the stock that got away. In my case, it was the opportunity to buy shares of Alphabet on Aug. 19, 2004, at the IPO price of about $85 -- even though I'd never yet bought a stock. Like many people at the time, I was excited about buying shares in a company that was a household name, but unclear about the IPO process. I eventually chickened out. The stock went on to gain 5,719%, making it one of the best-performing stocks of the past two decades.
Many investors have similar regrets about not buying Apple (NASDAQ: AAPL) in early 2009, when the stock was trading for roughly $3 per share. Since then, Apple stock has gained 6,450%, and many investors feel they should have bought the stock before the big run-up.
Veteran Wedbush analyst Dan Ives has uncovered an intriguing parallel between Apple and Tesla (NASDAQ: TSLA). If he's right, it could represent a particularly compelling opportunity for investors.
Image source: Getty Images.
Apples to oranges? Not so fast...
At first glance, it seems unlikely that a top analyst would draw a comparison between a smartphone specialist and an electric-vehicle (EV) manufacturer. Still, after reviewing his logic, I'm inclined to agree.
In retrospect, 2008 was a turning point for Apple. That year, the company released the iPhone 3G, which at the time was among the most significant product releases in Apple's history. Sure, there were all the technological improvements to the device, but what made it so groundbreaking was the ability to download Apple-approved third-party apps from the App Store onto the iPhone 3G.
This was the first hint of the expanding ecosystem that would eventually drive a large chunk of Apple's future growth.
Tesla shifting into overdrive
When Tesla reported its second-quarter results, much of the focus was on the company's shrinking margins, the result of discounts and incentives -- even though it resulted in record revenue.
One of the most important and overlooked developments was the revelation on the conference call regarding its full self-driving (FSD) technology. CEO Elon Musk said that not only was Tesla open to licensing its FSD hardware and software to other companies, but he added: "We are already in discussions with -- early discussions with a major [original equipment manufacturer] about using the Tesla FSD. ... We're more than happy to license it to others."
This marked the first time Tesla has confirmed its willingness to license the artificial intelligence (AI) that underpins its FSD technology.
A new standard
This revelation comes quick on the heels of the groundswell of carmakers adopting Tesla's North American Charging Standard (NACS) charging port and joining its Supercharger network. Tesla isn't charging other carmakers for the privilege of using its system. Still, it does stand to benefit from government incentives for opening its network and the additional charging revenue it will gain in the coming years, which could amount to $12.9 billion or more in all.
This illustrates that the technology Tesla has developed, including its lithium-ion battery tech, Supercharger network, and FSD capability, form a robust and growing ecosystem of revenue generators.
This forms the basis for Ives's parallel:
To us, this is the "golden vision" as Tesla is now monetizing its supercharger network with batteries and AI/FSD next adding to the sum-of-the-parts story for Tesla. In a nutshell, we view Tesla where Apple was in the 2008/2009 period as [Apple] was just starting to monetize its services and golden ecosystem, with [Wall Street] not seeing the broader golden vision at the time.
The usual caveats
It's important to note that investors shouldn't make important investing decisions based on an analyst's opinion, particularly without conducting a little due diligence first. Furthermore, while Tesla's connector has essentially become the de facto charging standard, its lithium-ion batteries and FSD still have a long way to go before they are anywhere near the industry standard.
Finally, Tesla's valuation is in rarefied territory, with the stock selling for 78 times next year's earnings and nearly seven times next year's sales, so there's plenty of growth already baked into the stock price.
That said, Ives raises an intriguing parallel regarding the monetization of Apple's ecosystem, which bears some striking similarities to Tesla's opportunity today. If he's right and Wall Street is failing to see the forest for the trees, this could represent a compelling and potentially lucrative opportunity for investors.
Find out why Tesla is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of July 17, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Danny Vena has positions in Alphabet, Apple, and Tesla. The Motley Fool has positions in and recommends Alphabet, Apple, 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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Many investors have similar regrets about not buying Apple (NASDAQ: AAPL) in early 2009, when the stock was trading for roughly $3 per share. Still, it does stand to benefit from government incentives for opening its network and the additional charging revenue it will gain in the coming years, which could amount to $12.9 billion or more in all. This illustrates that the technology Tesla has developed, including its lithium-ion battery tech, Supercharger network, and FSD capability, form a robust and growing ecosystem of revenue generators.
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Many investors have similar regrets about not buying Apple (NASDAQ: AAPL) in early 2009, when the stock was trading for roughly $3 per share. This illustrates that the technology Tesla has developed, including its lithium-ion battery tech, Supercharger network, and FSD capability, form a robust and growing ecosystem of revenue generators. This forms the basis for Ives's parallel: To us, this is the "golden vision" as Tesla is now monetizing its supercharger network with batteries and AI/FSD next adding to the sum-of-the-parts story for Tesla.
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Many investors have similar regrets about not buying Apple (NASDAQ: AAPL) in early 2009, when the stock was trading for roughly $3 per share. CEO Elon Musk said that not only was Tesla open to licensing its FSD hardware and software to other companies, but he added: "We are already in discussions with -- early discussions with a major [original equipment manufacturer] about using the Tesla FSD. In a nutshell, we view Tesla where Apple was in the 2008/2009 period as [Apple] was just starting to monetize its services and golden ecosystem, with [Wall Street] not seeing the broader golden vision at the time.
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Many investors have similar regrets about not buying Apple (NASDAQ: AAPL) in early 2009, when the stock was trading for roughly $3 per share. Every investor has one -- the stock that got away. In my case, it was the opportunity to buy shares of Alphabet on Aug. 19, 2004, at the IPO price of about $85 -- even though I'd never yet bought a stock.
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14683.0
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2023-07-27 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Apple, Palo Alto Networks, Microsoft, Fidelity Contra and Amazon
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-apple-palo-alto-networks-microsoft-fidelity
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For Immediate Release
Chicago, IL – July 27, 2023 – Today, Zacks Investment Ideas feature highlights the Apple AAPL, Palo Alto Networks PANW, Microsoft MSFT, Fidelity Contra Fund FCNTX and Amazon AMZN.
3 "Hedge Fund Hotels" Pulling into Support
The Retail Investor Dilemma
At any given moment, retail investors can instantaneously enter and exit any stock out of the thousands that are publicly traded. Because of the internet, commission-free trading, and more information accessible than ever in human history, small, individual investors are empowered more than ever before. However, the positives mentioned above also come with a caveat. With so much power at their fingertips, retail investors often fall victim to psychological errors, overtrading, and paralysis by analysis.
A Solution: Seek Institutional Quality Stocks
The first step to fighting the “retail investor dilemma” described above is to gravitate toward institutional quality stocks – that is stocks that mutual funds, pension funds, and other large investment firms favor. There are 3 main reasons retail investors should select institutional quality stocks, including:
High Liquidity, Low Beta
All else equal being equal, institutional quality stocks are much easier to hold onto and trade smoother than illiquid. For example, an illiquid stock trading 50,000 shares daily can tank on bad news and be difficult to exit if just a few mid-size investors jump ship. Conversely, a liquid stock like Apple, which trades close to 100 million shares a day on average, can absorb such “tape bombs.” In fact, AAPL has a beta of 1.28, meaning that based on its historical volatility it is only 28% more volatile than the S&P 500 Index.
Due Diligence
One of the key benefits of being an institutional investor is that mutual funds have large research teams, the best platforms, and some of the brightest minds. In other words, if an investor like Warren Buffet owns a stock, you can bet he has done his research. Using Apple as an example once more, the tech juggernaut has beaten earnings expectations in 20 of the past 21 quarters.
Time Horizon
While institutions have an advantage in research, retail investors have the advantage of flexibility and execution. It can take months, and in some instances, years for a large institution to build a position. On the other hand, retail investors can purchase all the shares they desire in a single day and piggyback on the institutional catalyst (retail investors can also exit rapidly if things go wrong). Remember, large investors cannot hide – their accumulation footprints can be observed by examining a price and volume chart.
3 Institutional-Quality Stocks Pulling Back
Palo Alto Networks
Zacks Rank #1 (Strong Buy) stock PANW is a leader in the cyber-security space. The company benefits from increased adoption in its next-generation security platforms as the rise in remote work spurs demand for more robust security. PANW has the ingredients of an institutional leader. Last quarter’s earnings rose 83% year-over-year, it is part of a top 25% ranked industry, and analysts anticipate robust double-digit earnings growth for the remainder of 2023.
Microsoft
Wednesday, shares of Microsoft retreated after the company reported fourth-quarter fiscal 2023 earnings that improved 20.6% year-over-year and beat Zacks Consensus Estimates by 5.91%.
Why did the stock pull back?
1. MSFT shares recovered all of the losses from the 2022 bear market and are returning to all-time highs. Often, the first test of a big resistance zone is a cause for a pullback.
2. The strong earnings were likely priced into shares – remember, even the strongest stocks pull back.
3. Management tempered AI expectations and said revenue derived from AI would be a “slow ramp up”.
Investors would be wise to treat Microsoft’s earnings retreat as normal action. The company was strong before its AI rollout, and any AI revenues next quarter, mixed with tempered expectations, should propel the stock higher into year-end. Also, MSFT is the third largest holding in Zacks Rank #1 mutual fund Fidelity Contra Fund. Managed by legendary investor Will Danoff, FCNTX is one of Wall Street’s largest and most successful funds.
Amazon
Though iconic CEO Jeff Bezos is no longer at the helm, Amazon continues to benefit from solid e-commerce sales (recently recorded record “Prime Day” sales) and its dominance in the cloud space (AWS). Unlike MSFT, AMZN shares may be attractive to bargain hunters. The stock remains well off its all-time highs while its price-to-sales ratio hovers near all-time lows.
Conclusion
The three stocks mentioned above are true market leaders with institutional backing. The pullbacks seen in PANW, MSFT, and AMZN should not cloud investor judgement - each has robust fundamentals and a plethora of catalysts. Furthermore, the first pullback to the 10-week moving average after a significant breakout tends to be an area where institutions step in to buy shares.
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For Immediate Release Chicago, IL – July 27, 2023 – Today, Zacks Investment Ideas feature highlights the Apple AAPL, Palo Alto Networks PANW, Microsoft MSFT, Fidelity Contra Fund FCNTX and Amazon AMZN. Conversely, a liquid stock like Apple, which trades close to 100 million shares a day on average, can absorb such “tape bombs.” In fact, AAPL has a beta of 1.28, meaning that based on its historical volatility it is only 28% more volatile than the S&P 500 Index. 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 Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Get Your Free (FCNTX): Fund Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL – July 27, 2023 – Today, Zacks Investment Ideas feature highlights the Apple AAPL, Palo Alto Networks PANW, Microsoft MSFT, Fidelity Contra Fund FCNTX and Amazon AMZN. 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 Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Get Your Free (FCNTX): Fund Analysis Report To read this article on Zacks.com click here. Conversely, a liquid stock like Apple, which trades close to 100 million shares a day on average, can absorb such “tape bombs.” In fact, AAPL has a beta of 1.28, meaning that based on its historical volatility it is only 28% more volatile than the S&P 500 Index.
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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 Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Get Your Free (FCNTX): Fund Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – July 27, 2023 – Today, Zacks Investment Ideas feature highlights the Apple AAPL, Palo Alto Networks PANW, Microsoft MSFT, Fidelity Contra Fund FCNTX and Amazon AMZN. Conversely, a liquid stock like Apple, which trades close to 100 million shares a day on average, can absorb such “tape bombs.” In fact, AAPL has a beta of 1.28, meaning that based on its historical volatility it is only 28% more volatile than the S&P 500 Index.
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For Immediate Release Chicago, IL – July 27, 2023 – Today, Zacks Investment Ideas feature highlights the Apple AAPL, Palo Alto Networks PANW, Microsoft MSFT, Fidelity Contra Fund FCNTX and Amazon AMZN. Conversely, a liquid stock like Apple, which trades close to 100 million shares a day on average, can absorb such “tape bombs.” In fact, AAPL has a beta of 1.28, meaning that based on its historical volatility it is only 28% more volatile than the S&P 500 Index. 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 Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Get Your Free (FCNTX): Fund Analysis Report To read this article on Zacks.com click here.
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9 Best Stocks for Beginners With Little Money
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Think you're too broke to invest? Well, it's time to start thinking differently. Because with just a little money, you can assemble your own portfolio and start building your wealth.
Just how little is "a little money"? We've written before about how to start investing with $1,000, but really, you can start with a lot less than that. In fact, with less than $100, you can buy several top stocks for beginners—making real headway into building a diversified portfolio.
Today, we're going to help you on your way by outlining some of the best stocks for beginners with little money—a group of shares that each cost between roughly $10 and $30. We'll also explain why you'd want to invest in stocks in the first place, and a few pieces of information about low-priced stocks.
Also, we can't stress this enough: You should never buy stocks just because they trade for a low dollar amount. That's why we've selected stocks that have much more to offer than just a low nominal share price.
Disclaimer: This article does not constitute individualized investment advice. These securities appear for your consideration and not as investment recommendations. Act at your own discretion.
Our Top Stock Trading App for Beginners Pick (No Minimums)
Why Should I Invest in the Stock Market?
Stocks are one of the best investments for beginners for several reasons:
They have higher rates of returns than just about any other asset class.
They can be held in numerous types of investment accounts.
They're often understandable and relatable.
In short, a stock is simply a piece of ownership in a company. It allows you to profit from a company's success—most commonly, from price appreciation in shares of the stock, but in several cases, also from cash distributions (dividends) the company makes to shareholders. Stocks have all sorts of classifications, but here are a few of the basics:
Growth stocks belong to companies that have high rates of revenue and earnings growth, which helps drive price gains.
Value stocks are believed to be under-appreciated by Wall Street. The idea is that at some point, investors will realize that the stock is cheap (compared to, say, its revenues, profits, or other metrics) and buy shares, driving the stock higher.
Dividend stocks pay out dividends to shareholders. Value stocks and growth stocks alike can be dividend stocks, too, though you'll more commonly find dividends (and more commonly find higher dividends) among value stocks.
Especially early in your investing career, dividend stocks are the ultimate holding given just how much in additional returns they can generate over the long term.
Here's a look at the return someone could expect if they received just the price returns from the S&P 500 over the past 25 years:
Now look at how much better the return is when you factor in dividends (had you had reinvested those dividends back into the S&P 500):
The price return is about 4.5x. The total return (price plus dividends) is more than 7x!
Related: 10 Investments that Earn a Great Return [10% or More]
The Best Stocks for Beginners With Little Money
Let's say you're starting on your stock investing journey with just, say, $100 or $200.
If you're lucky enough to have a brokerage account that offers fractional shares, price is no object. No matter how expensive the stock or fund you're interested in is, you'll be able to buy a piece of it for very little money—likely $5 or even $1.
However, many of the largest brokerage firms don't offer fractional shares, and thus beginning investors with little money need to keep an eye on price. For the purposes of this list, then, we're sticking to stocks that cost roughly between $10 and $30 per share, which will allow someone with even just $100 to buy several different stocks. This provides diversification, which in simplest terms is not putting all of your eggs in one basket.
That said, we're actually excluding the cheapest stocks—those priced under $1, which are often referred to as penny stocks.
In general, the price of a stock doesn't tell you much about its quality—a $20 stock is not inherently a better or worse investment than a $500 stock—but extremely cheap shares, especially under $1, can be problematic. Penny stocks that trade on a major exchange like the NYSE or Nasdaq are threatened with being kicked off the exchange if they trade under $1 for too long. Meanwhile, sub-$1 stocks that aren't listed on major exchanges have looser reporting requirements, so there's less information you can use to make an informed decision, and in general these stocks are more prone to fraud.
One last thing: A low stock price isn't the same thing as a low valuation. Even stocks that trade for $5 or $10 per share can be considered "expensive" compared to their earnings, sales, and other benchmarks typically used to value a stock.
Now, with all of that out of the way, let's look at some of the best stocks for beginners with little money invested.
Related: 11 Best Compound Interest Investments [Where to Invest]
Best Stock #1: AT&T
Sector: Communication services
Market cap: $107.4 billion
Dividend yield: 7.0%
Price as of writing: ~$15/share
AT&T (T)
is one of the biggest telecommunications companies in the world—and a great example of how you can find stability and scale even in low-priced stocks.
AT&T is the top carrier in the U.S. by wireless subscribers, ahead of Verizon Communications (VZ) and T-Mobile US (TMUS). While AT&T is ostensibly competing with the pair, all three carriers are pretty much entrenched, with only minimal changes in subscribers. Furthermore, there are very high barriers to entry in this market—telecommunications requires a ton of capital to build out infrastructure—so it would be exceedingly difficult for any company to disrupt AT&T and its brethren.
In April 2022, AT&T divested itself of its media assets through the spin-out and merger of Warner Bros. Discovery (WBD). Shares took an instant hit as those operations were removed and shareholders were granted a stake in that new entity. But the new AT&T is now leaner, more focused, and better capitalized thanks to a $43 billion windfall from the deal.
Shares bottomed out last year as investors grew a bit impatient with news about the restructuring. But they have since surged from their October lows amid renewed optimism in AT&T's long-term potential.
AT&T did have to cut its dividend amid the merger, ending an enviable history of 35 consecutive years of annual dividend increases. Still, the new dividend is not only much more manageable—it also remains sky-high, at 7% currently. So T stock might not be as glamorous as a high-growth tech stock, this low-priced telecom behemoth boasts staying power and long-term income potential.
Related: 12 Best Stock Trading Apps + Platforms for Beginners
Best Stock #2: NiSource
Sector: Utilities
Market cap: $11.6 billion
Dividend yield: 3.7%
Price as of writing: ~$28/share
If you're looking for low-risk investments, the utility sector is the place to go. After all, there are few things more necessary to everyday life than electricity, natural gas, and water.
NiSource (NI) is a natural gas and electric utility company that trades for under $30 per share, and it's worth a look if you want a reliable income play in your portfolio. Founded way back in 1847, the company operates power plants as well as natural gas distribution to more than 4 million customers in six states across the Midwest and East Coast.
In 2023, NiSource hiked its quarterly dividend to 25 cents per share—up 6% from its previous payout, and 28% better than what it was paying five years ago. That's good news for investors, who typically buy stocks like NI for their stability and income potential rather than dramatic growth narratives.
Remember: NiSource and many other utilities are regulated, which means they must request permission to raise their prices and usually only do so by a couple percent every year or two. Plus, much of their money tends to be reinvested in infrastructure like electric lines and water pipes, or distributed as dividends to shareholders. So there's not much growth to be had here.
There's nothing exciting about buying a natural gas company and harvesting the dividends. But investors with little risk tolerance should love the chance to buy a low-priced stock that should net them reliable returns over time.
Related: 19 Best High-Yield Investments [Safe Options Right Now]
Best Stock #3: Ford
Sector: Consumer discretionary
Market cap: $56.0 billion
Dividend yield: 4.1%
Price as of writing: ~$14/share
At first blush, Ford (F) might not be the kind of automaker that most investors would believe in for the long haul. It's dependent on expensive pickup truck sales, which can take a hit whenever the economy hits turbulence. And it's also lagging behind some of its peers in rolling out next-gen electric vehicles.
But if you're looking for a cheap stock, the sub-$15 Ford still has something to offer.
Consider that even after lowering its price target on Ford following a lackluster fourth-quarter earnings release, Bank of America still put a $21 price target on the stock—F shares have risen since then, but that price target still translates to roughly 50% gains from current levels. BofA says "the company has made significant progress executing on its One Ford plan and delivering best-in-class vehicles," and believes Ford is improving its evolution within "electrification, autonomy, and mobility services."
Furthermore, Ford's projected 2023 earnings of $1.55 per share are still more than twice the 60 cents it's expected to pay out in dividends, so the generous 4%-plus yield seems like a safe bet for the foreseeable future, too.
The big question mark is what Ford is doing to electrify its fleet of vehicles in the age of climate change. Well, the company is investing $50 billion to develop EVs, and currently losing a bundle on that revamping as it builds out both its product line as well as its production capacity. The stated goal from Ford is to be producing more than 2 million EVs by the end of 2026 across 30 electrified models. That's a tall order, but Ford is well on its way, with the well-received Mustang Mach-E among the best-selling U.S. models—only behind Tesla's (TSLA) Model 3 and Model Y.
Related: 14 Best Stock Picking Services, Subscriptions, Advisors & Sites
Best Stock #4: Ally Financial
Sector: Financials
Market cap: $8.9 billion
Dividend yield: 4.4%
Price as of writing: ~$29/share
Smaller banking stocks have taken a hit in 2023 in the wake of the Silicon Valley Bank failure. Ally Financial (ALLY) is no stranger to this stress, but it remains a strong company worth consideration.
Ally, formerly the General Motors Acceptance Corporation (GMAC), was the financing arm of General Motors (GM). However, it was spun off more than a decade ago in the wake of the Global Financial Crisis and the U.S. government's bailout of Big Auto.
Today, Ally remains specialized in auto finance, though it also offers banking, home loans, consumer lending, investing, and other services. It also was an early proponent of online-only banking, including high-yield savings accounts that couldn't offer particularly attractive yields in a 0% interest-rate environment, but that now offer fatter yields amid higher interest rates and are growing more popular as a result.
It's an attractive midsized banking stop that's cheap in share price and generous with its dividend. Its current dividend yield is just less than triple the S&P 500's payout.
Also worth noting is that investing icon Warren Buffett is a big investor in Ally Financial; the investment arm of his Berkshire Hathaway (BRK.B) holding company added heavily to its position in this company across 2022 thanks to attractive valuations and generous dividends. It helps to have the backing of a big name like that, both to provide stability to shares and to ensure management stays committed to its shareholders in the long haul.
Related: How to Invest Money: 5 Steps to Start Investing w/Little Money
Best Stock #5: Barrick Gold
Sector: Materials
Market cap: $30.5 billion
Dividend yield: 2.4%
Price as of writing: ~$17/share
Whenever inflation is a concern for investors, it can help to add some hard assets or raw materials to your portfolio. That's because many hard assets, such as metal and crude oil, are priced in U.S. dollars—and since inflation shrinks the dollar's worth, that means it takes more dollars to buy, say, an ounce of metal or barrel of oil.
That's exactly the kind of exposure you can get via Barrick Gold (GOLD), one of the largest dedicated gold miners in the world.
Headquartered in Toronto, Barrick has ownership interests in gold and copper mines across several continents, but primarily in North America, South America, and Africa. According to its 2022 annual report, the company actually grew its net reserves (how much Barrick believes it can mine from its properties) last year by 6.7 million ounces to an amazing 76 million total ounces thanks to new projects. With gold prices currently at roughly $1,960 per ounce, that adds up to a cool $149 billion at current market prices.
Thanks to the underlying value here and the general sentiment that inflation will only continue to lift commodity prices in the near-term, Barrick stock has managed to outperform the broader stock market in 2023.
Just remember: There's no guarantee that gold prices will remain high forever, or that those minerals will be easy to extract. Still, it's clear that Barrick is sitting on a massive store of gold deposits, and this is one of the best mining operators in the world, providing real value to underpin this company's stock price.
Related: 9 Best Charles Schwab Alternatives
Best Stock #6: Takeda Pharmaceutical
Sector: Healthcare
Market cap: $48.2 billion
Dividend yield: 4.2%
Price as of writing: ~$17/share
When beginner investors get started in the stock market, they tend to think only of large U.S.-based companies like Apple (AAPL) or Tesla (TSLA). But you have access to far more stock investments than that, as illustrated by Takeda Pharmaceutical (TAK).
Takeda is a massive pharmaceutical company, with its best-selling gastroenterology drug Entyvio expected to come in at $5.4 billion in sales when it reports its annual financials. The Tokyo-based firm is perhaps not as well-known as U.S. based giants such as Pfizer (PFE) and Eli Lilly (LLY), but it definitely is in the same league as other Big Pharma mainstays.
And despite being a Japanese firm, it's just as easy to trade as U.S. stocks—it's listed on U.S. exchanges and trades for less than $20 per share.
Generally, healthcare is a recession-proof sector that can guide your portfolio through times of uncertainty fairly well. After all, sick people simply must buy drugs regardless of their income levels or consumer sentiment. And in the wake of a $62 billion acquisition of Shire in 2019 to bolster its market share and product pipeline, Takeda definitely has the scale and staying power that investors in low-risk stocks should find attractive right now.
If you're looking for geographic diversification to round out your portfolio, this cheap stock is worth a look. But even if you're not, Takeda is a multinational healthcare company that merits consideration anyways.
Related: 11 Best Stock Advisor Websites & Services to Seize Alpha
Best Stock #7: Kimco Realty
Sector: Real estate
Market cap: $12.9 billion
Dividend yield: 4.8%
Price as of writing: ~$21/share
Kimco Realty (KIM)
is one of North America's largest publicly traded operators of strip malls—or in real estate jargon, "open-air, grocery-anchored shopping centers." KIM focuses on tenants that are mainstays of local economies, such as grocers, home improvement stores, and pharmacies.
This makes Kimco's real estate a bit more reliable than traditional mall operators. You see, while delivery has certainly eaten into people's desire to go to the mall, most people still travel to the grocery store—and thus are more likely to frequent the stores right around them.
Kimco owns interests in nearly 530 U.S. shopping centers and mixed-use assets, adding up to 90 million square feet. And while some of those sites took a ding curing the pandemic, its occupancy rate is now back up to 95.8%—approaching pre-pandemic levels. What's more, its rent per square foot now tallies $19.86, which is 8% higher than at the end of 2019, before the pandemic roiled real estate markets.
Kimco's also a different entity called a real estate investment trust (REIT). It trades just like a regular stock, but it has special rules—including that it must return at least 90% of its taxable income back to shareholders. This makes for generous and reliable dividends that are currently about three times what the S&P 500 Index pays.
Admittedly, KIM had to cut its dividend during the pandemic, and the current quarterly payout of 23 cents per share is still lower than the 28 cents per share it paid in 2019, Kimco's encouraging operations point to the likelihood of continued increases to payouts. That's great news to longtime and new shareholders alike.
Related: 9 Best Real Estate Crowdfunding Sites + Platforms
Best Stock #8: United Microelectronics
Sector: Technology
Market cap: $18.1 billion
Dividend yield: 7.5%
Price as of writing: ~$7/share
Though priced at under $10 a share right now, Taiwanese semiconductor manufacturer United Microelectronics (UMC) is still having a decent 2023 and has plenty of potential going forward.
United Microelectronics operates a foundry and provides testing services. So unlike branded chipmakers like Intel (INTC) that spend billions on researching and patenting products, UMC simply produces what other semiconductor designers request. The margins aren't quite as high in this kind of semiconductor operation, but they are much more reliable.
The semiconductor industry slumped in 2022 thanks to fears of economic slowdowns that could weigh on consumer spending (and semiconductor demand as a result). And, of course, there's the much-publicized supply chain disruption, which has plagued the industry over the past few years and held back sales simply because the products can't get to end-users and manufacturers in a timely manner.
But semiconductors are back in favor as they work through these lingering challenges, and because of a rosier economic outlook for Europe and Asia—not to mention the recent United States Chips and Science Act, which aims to inject $280 billion into the industry.
Any risk of a consumer spending slowdown could once again undercut chip stocks. But UMC has weathered the past few years pretty well.
Related: 21 Best Stock Research & Analysis Apps, Tools and Sites
Best Stock #9: VF Corp.
Sector: Consumer discretionary
Market cap: $7.6 billion
Dividend yield: 6.4%
Price as of writing: ~$20/share
Apparel giant VF Corp. (VFC) is cheap for admittedly good reason.
VF Corp. is the parent company of North Face, Timberland, Vans, JanSport, and the popular streetwear brand Supreme, among others. And the company has struggled mightily since mid-2021, with shares losing three-quarters of their value since then!
Part of the struggle was that a post-pandemic pop in 2021 wasn't sustainable after all that pent-up demand was deployed. Indeed, the company's profits are expected to drop by almost 35% this year.
VF Corp. also is suffering pains following its 2019 spinoff of Kontoor Brands (KTB), which held the Wrangler and Lee brands, among others. While not particularly flashy brands, they delivered reliable income compared to the more fickle nature of VF Corp's fashion brands. Fast-forward to 2023, and VFC has been forced to announce several cost-saving measures, including cutting its dividend by 40%—a move that snapped a nearly half-century streak of annual dividend increases.
The consequences have been painful for current shareholders. But new investors have an opportunity to enter not just a low-priced stock, but a stock that looks value-priced based on estimates for future earnings. Meanwhile, corporate management has signaled that it's no longer chasing growth for growth's sake, and that it's prioritizing profits instead.
There is some serious risk here, especially considering potential recession risks and fears of a broader retail spending slowdown. But much of the bad news is already "baked" into VFC's share price. For some, this cheap stock could be too much of a bargain to pass up.
Related: 14 Best Investment Opportunities for Accredited Investors
Top Cheap Stocks for Beginners
COMPANY TICKER MARKET CAP DIVIDEND YIELD PRICE
Ally Financial NYSE:ALLY $7.5 billion 4.6% ~$25/share
AT&T NYSE:T $140.0 billion 5.7% ~$17/share
Barrick Gold NYSE:GOLD $34.1 billion 2.8% ~$19/share
Ford NYSE:F $50.9 billion 4.9% ~$12/share
Kimco Realty NYSE:KIM $12.0 billion 4.8% ~$19/share
NiSource NYSE:NI $12.0 billion 3.5% ~$28/share
Takeda Pharma NYSE:TAK $52.2 billion 4.0% ~$17/share
United Microelectronics NYSE:UMC $21.3 billion 6.0% ~$8/share
VF Corp. NYSE:VFC $8.6 billion 5.6% ~$22/share
ALL LISTED DATA IS AS OF THIS WRITING
Frequently Asked Questions (FAQs)
What other investments make sense for beginner investors?
If you're looking for low-priced investments, exchange-traded funds (ETFs) and mutual funds are also good options. These vehicles provide built-in diversification, allowing you to make a stock market investment of dozens, hundreds, and even thousands of shares with a single holding, rather than going out and purchasing multiple individual stocks yourself. In exchange, you'll pay an annual fee that is taken directly out of the fund's performance (and if you're buying a mutual fund, a fee might also be taken from your initial investment).
Many ETFs and some mutual funds are index funds, meaning that instead of human stock pickers, they track a rules-based index of stocks, bonds, and other investments. As a result, index funds often offer cheaper fees.
Why let funds do the work? Well, when you start investing, you might not have confidence in your own research—and ETFs and mutual funds take that weight off your shoulders. Funds also let you buy a wider portfolio for the same price as a few stocks. Imagine if you wanted to buy 100 different stocks that each cost an average of $30 per share—that'd be $3,000 out of your pocket. But an ETF might hold a piece of all 100 of those stocks for you, and the ETF shares might cost just $30 or $40.
Is my stock market investment safe?
Simply put: Investing involves risk. And as you probably read when you signed up for your stock trading account, you can lose money in stocks. You can improve your chances of making money by doing research and holding over a long period of time rather than making short-term trades—indeed, the stock market has always trended higher over the long term. But short-term swings in the market can be uncomfortable, and individual companies can and do go bust.
You'll need to think about how much risk you can stomach, known as your risk tolerance. Depending on your risk tolerance, you might be fine buying, say, a few risky growth stocks … or you might want to just stash your money in a diversified, broad-market ETF.
But there's no 100% guarantee of safety—not in stocks, not in bonds, not in any type of investment.
Especially once you start amassing a larger amount of money, it might make sense to consult with a financial advisor to discuss both how much risk you're willing to take, and how to manage that risk.
What kind of brokerage account should I use?
If you're just starting out, chances are you'll need to use a brokerage account—the most basic type of investment account there is. Your typical online brokerage account will allow you to invest in stocks, ETFs, and mutual funds; some also allow you to invest in options, bonds, cryptocurrency and more.
Nowadays, brokerage accounts have their own investment apps, which allow you to do much more than buy and sell stocks. These apps can also help you manage your investment portfolios, research investments, and track your wealth over time—all from the comfort of your home (or on the go).
If you're looking for a place to start your search, consider our list of the best investing apps for beginners. Each stock brokerage account has specifically been selected for their relative ease of use, low costs, and other beginner-friendly attributes. Below, we highlight our top pick for beginners, Robinhood—but if it doesn't have the features you're looking for, feel free to explore the other options on our top beginner apps list.
Robinhood (Best Stock Trading App for Beginners)
Available: Sign up here
Best for: Beginner traders
Platform: Web, mobile app (Apple iOS, Android)
Robinhood
is a pioneer of commission-free trading, jumping into the investing public’s consciousness in 2013 when they rolled out commission-free trading. They remain a standout option for cost-minded investors thanks to their continued $0 commissions on stocks, ETFs, and options, as well as for its fractional trading, which allows people to invest with as little as $1.
More importantly, though, Robinhood has evolved from a bare-bones app appealing to mostly beginner investors to a fuller-featured account suitable for a wider range of experience levels.
For instance, Robinhood now offers individual retirement accounts (IRAs) and Roth IRAs via Robinhood Retirement. Functionally, it comes up short compared to many other IRA providers because of its investment options. It offers just stocks and ETFs; like with its brokerage account, mutual funds aren’t available. Options aren’t currently available, though Robinhood has explicitly stated that options will be made available soon.
However, Robinhood Retirement still stands out from the pack because it’s the only IRA provider that offers matching funds. If you open up an IRA with Robinhood Retirement, Robinhood will match 1% of any IRA transfers, 401(k) rollovers, and annual contributions to your account—and 3% if you pay for the Robinhood Gold service ($5 per month)—typically almost immediately after you make your contribution. Better still: Any matches made on annual contributions don’t count toward your contribution limit.
(Friendly message from your Young and the Invested tax expert: The reason the IRA match doesn’t count toward your annual IRA contribution limit is because Robinhood treats it as interest income in your IRA.)
You can choose your IRA investments yourself, but Robinhood’s Portfolio Builder can also provide you with a custom recommended portfolio made up of five to eight ETFs.
Robinhood has long catered to younger investors with its gamified interface and growing library of educational content. But over the years, it has added a boatload of other features for new and experienced investors alike. Advanced Charts, for instance, provides simple and customizable charts with a variety of technical features. Robinhood's Options Strategy Builder simplifies the options-trading process by helping you build a strategy based on what you expect your target stock or ETF will do in the future. Robinhood also offers 24/7 commission-free cryptocurrency trading with Robinhood Crypto (though you’ll still have to pay a spread), allows extended-hours trading, and lets users earn interest through stock lending.
Robinhood Gold, which I mentioned above, is a monthly subscription service that offers several more features mostly geared toward advanced traders. Benefits include Level II market data provided by Nasdaq, a lower charged rate on margin investing than regular accounts, higher interest on uninvested brokerage cash via the cash sweep program, and bigger Instant Deposits.
If you want to keep your banking and investing close together, you can also add a Robinhood spending account. This FDIC-insured account includes a Robinhood Cash Card issued by Sutton Bank—however, if you don’t want this physical debit card, you do have the option of having a virtual debit card only. The Cash Card is compatible with Apple Pay, Google Pay, and Samsung Pay, and also provides you with access to fee-free withdrawals from more than 90,000 ATMs. The card allows you to round-up purchases and invest the money into your brokerage or crypto account.
Sign up for a Robinhood brokerage account or Robinhood retirement account today. Robinhood investment accounts carry up to $500,000 of Securities Investor Protection Corporation coverage.
Related:
11 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers]
The 7 Best Vanguard Index Funds for Beginners
17 Best Stock News Apps & Sites [Financial & Stock Market Info]
Jeff Reeves held shares of T as of this writing. He did not hold a position in any of the other aforementioned recommended securities.
The views and 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 beginner investors get started in the stock market, they tend to think only of large U.S.-based companies like Apple (AAPL) or Tesla (TSLA). And in the wake of a $62 billion acquisition of Shire in 2019 to bolster its market share and product pipeline, Takeda definitely has the scale and staying power that investors in low-risk stocks should find attractive right now. And, of course, there's the much-publicized supply chain disruption, which has plagued the industry over the past few years and held back sales simply because the products can't get to end-users and manufacturers in a timely manner.
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When beginner investors get started in the stock market, they tend to think only of large U.S.-based companies like Apple (AAPL) or Tesla (TSLA). Today, Ally remains specialized in auto finance, though it also offers banking, home loans, consumer lending, investing, and other services. Ally Financial NYSE:ALLY $7.5 billion 4.6% ~$25/share AT&T NYSE:T $140.0 billion 5.7% ~$17/share Barrick Gold NYSE:GOLD $34.1 billion 2.8% ~$19/share Ford NYSE:F $50.9 billion 4.9% ~$12/share Kimco Realty NYSE:KIM $12.0 billion 4.8% ~$19/share NiSource NYSE:NI $12.0 billion 3.5% ~$28/share Takeda Pharma NYSE:TAK $52.2 billion 4.0% ~$17/share United Microelectronics NYSE:UMC $21.3 billion 6.0% ~$8/share VF Corp. NYSE:VFC $8.6 billion 5.6% ~$22/share
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When beginner investors get started in the stock market, they tend to think only of large U.S.-based companies like Apple (AAPL) or Tesla (TSLA). Value stocks and growth stocks alike can be dividend stocks, too, though you'll more commonly find dividends (and more commonly find higher dividends) among value stocks. In general, the price of a stock doesn't tell you much about its quality—a $20 stock is not inherently a better or worse investment than a $500 stock—but extremely cheap shares, especially under $1, can be problematic.
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When beginner investors get started in the stock market, they tend to think only of large U.S.-based companies like Apple (AAPL) or Tesla (TSLA). Why Should I Invest in the Stock Market? Related: 12 Best Stock Trading Apps + Platforms for Beginners Best Stock #2: NiSource
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9 Best Stocks for Beginners With Little Money
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Think you're too broke to invest? Well, it's time to start thinking differently. Because with just a little money, you can assemble your own portfolio and start building your wealth.
Just how little is "a little money"? We've written before about how to start investing with $1,000, but really, you can start with a lot less than that. In fact, with less than $100, you can buy several top stocks for beginners—making real headway into building a diversified portfolio.
Today, we're going to help you on your way by outlining some of the best stocks for beginners with little money—a group of shares that each cost between roughly $10 and $30. We'll also explain why you'd want to invest in stocks in the first place, and a few pieces of information about low-priced stocks.
Also, we can't stress this enough: You should never buy stocks just because they trade for a low dollar amount. That's why we've selected stocks that have much more to offer than just a low nominal share price.
Disclaimer: This article does not constitute individualized investment advice. These securities appear for your consideration and not as investment recommendations. Act at your own discretion.
Our Top Stock Trading App for Beginners Pick (No Minimums)
Why Should I Invest in the Stock Market?
Stocks are one of the best investments for beginners for several reasons:
They have higher rates of returns than just about any other asset class.
They can be held in numerous types of investment accounts.
They're often understandable and relatable.
In short, a stock is simply a piece of ownership in a company. It allows you to profit from a company's success—most commonly, from price appreciation in shares of the stock, but in several cases, also from cash distributions (dividends) the company makes to shareholders. Stocks have all sorts of classifications, but here are a few of the basics:
Growth stocks belong to companies that have high rates of revenue and earnings growth, which helps drive price gains.
Value stocks are believed to be under-appreciated by Wall Street. The idea is that at some point, investors will realize that the stock is cheap (compared to, say, its revenues, profits, or other metrics) and buy shares, driving the stock higher.
Dividend stocks pay out dividends to shareholders. Value stocks and growth stocks alike can be dividend stocks, too, though you'll more commonly find dividends (and more commonly find higher dividends) among value stocks.
Especially early in your investing career, dividend stocks are the ultimate holding given just how much in additional returns they can generate over the long term.
Here's a look at the return someone could expect if they received just the price returns from the S&P 500 over the past 25 years:
Now look at how much better the return is when you factor in dividends (had you had reinvested those dividends back into the S&P 500):
The price return is about 4.5x. The total return (price plus dividends) is more than 7x!
Related: 10 Investments that Earn a Great Return [10% or More]
The Best Stocks for Beginners With Little Money
Let's say you're starting on your stock investing journey with just, say, $100 or $200.
If you're lucky enough to have a brokerage account that offers fractional shares, price is no object. No matter how expensive the stock or fund you're interested in is, you'll be able to buy a piece of it for very little money—likely $5 or even $1.
However, many of the largest brokerage firms don't offer fractional shares, and thus beginning investors with little money need to keep an eye on price. For the purposes of this list, then, we're sticking to stocks that cost roughly between $10 and $30 per share, which will allow someone with even just $100 to buy several different stocks. This provides diversification, which in simplest terms is not putting all of your eggs in one basket.
That said, we're actually excluding the cheapest stocks—those priced under $1, which are often referred to as penny stocks.
In general, the price of a stock doesn't tell you much about its quality—a $20 stock is not inherently a better or worse investment than a $500 stock—but extremely cheap shares, especially under $1, can be problematic. Penny stocks that trade on a major exchange like the NYSE or Nasdaq are threatened with being kicked off the exchange if they trade under $1 for too long. Meanwhile, sub-$1 stocks that aren't listed on major exchanges have looser reporting requirements, so there's less information you can use to make an informed decision, and in general these stocks are more prone to fraud.
One last thing: A low stock price isn't the same thing as a low valuation. Even stocks that trade for $5 or $10 per share can be considered "expensive" compared to their earnings, sales, and other benchmarks typically used to value a stock.
Now, with all of that out of the way, let's look at some of the best stocks for beginners with little money invested.
Related: 11 Best Compound Interest Investments [Where to Invest]
Best Stock #1: AT&T
Sector: Communication services
Market cap: $107.4 billion
Dividend yield: 7.0%
Price as of writing: ~$15/share
AT&T (T)
is one of the biggest telecommunications companies in the world—and a great example of how you can find stability and scale even in low-priced stocks.
AT&T is the top carrier in the U.S. by wireless subscribers, ahead of Verizon Communications (VZ) and T-Mobile US (TMUS). While AT&T is ostensibly competing with the pair, all three carriers are pretty much entrenched, with only minimal changes in subscribers. Furthermore, there are very high barriers to entry in this market—telecommunications requires a ton of capital to build out infrastructure—so it would be exceedingly difficult for any company to disrupt AT&T and its brethren.
In April 2022, AT&T divested itself of its media assets through the spin-out and merger of Warner Bros. Discovery (WBD). Shares took an instant hit as those operations were removed and shareholders were granted a stake in that new entity. But the new AT&T is now leaner, more focused, and better capitalized thanks to a $43 billion windfall from the deal.
Shares bottomed out last year as investors grew a bit impatient with news about the restructuring. But they have since surged from their October lows amid renewed optimism in AT&T's long-term potential.
AT&T did have to cut its dividend amid the merger, ending an enviable history of 35 consecutive years of annual dividend increases. Still, the new dividend is not only much more manageable—it also remains sky-high, at 7% currently. So T stock might not be as glamorous as a high-growth tech stock, this low-priced telecom behemoth boasts staying power and long-term income potential.
Related: 12 Best Stock Trading Apps + Platforms for Beginners
Best Stock #2: NiSource
Sector: Utilities
Market cap: $11.6 billion
Dividend yield: 3.7%
Price as of writing: ~$28/share
If you're looking for low-risk investments, the utility sector is the place to go. After all, there are few things more necessary to everyday life than electricity, natural gas, and water.
NiSource (NI) is a natural gas and electric utility company that trades for under $30 per share, and it's worth a look if you want a reliable income play in your portfolio. Founded way back in 1847, the company operates power plants as well as natural gas distribution to more than 4 million customers in six states across the Midwest and East Coast.
In 2023, NiSource hiked its quarterly dividend to 25 cents per share—up 6% from its previous payout, and 28% better than what it was paying five years ago. That's good news for investors, who typically buy stocks like NI for their stability and income potential rather than dramatic growth narratives.
Remember: NiSource and many other utilities are regulated, which means they must request permission to raise their prices and usually only do so by a couple percent every year or two. Plus, much of their money tends to be reinvested in infrastructure like electric lines and water pipes, or distributed as dividends to shareholders. So there's not much growth to be had here.
There's nothing exciting about buying a natural gas company and harvesting the dividends. But investors with little risk tolerance should love the chance to buy a low-priced stock that should net them reliable returns over time.
Related: 19 Best High-Yield Investments [Safe Options Right Now]
Best Stock #3: Ford
Sector: Consumer discretionary
Market cap: $56.0 billion
Dividend yield: 4.1%
Price as of writing: ~$14/share
At first blush, Ford (F) might not be the kind of automaker that most investors would believe in for the long haul. It's dependent on expensive pickup truck sales, which can take a hit whenever the economy hits turbulence. And it's also lagging behind some of its peers in rolling out next-gen electric vehicles.
But if you're looking for a cheap stock, the sub-$15 Ford still has something to offer.
Consider that even after lowering its price target on Ford following a lackluster fourth-quarter earnings release, Bank of America still put a $21 price target on the stock—F shares have risen since then, but that price target still translates to roughly 50% gains from current levels. BofA says "the company has made significant progress executing on its One Ford plan and delivering best-in-class vehicles," and believes Ford is improving its evolution within "electrification, autonomy, and mobility services."
Furthermore, Ford's projected 2023 earnings of $1.55 per share are still more than twice the 60 cents it's expected to pay out in dividends, so the generous 4%-plus yield seems like a safe bet for the foreseeable future, too.
The big question mark is what Ford is doing to electrify its fleet of vehicles in the age of climate change. Well, the company is investing $50 billion to develop EVs, and currently losing a bundle on that revamping as it builds out both its product line as well as its production capacity. The stated goal from Ford is to be producing more than 2 million EVs by the end of 2026 across 30 electrified models. That's a tall order, but Ford is well on its way, with the well-received Mustang Mach-E among the best-selling U.S. models—only behind Tesla's (TSLA) Model 3 and Model Y.
Related: 14 Best Stock Picking Services, Subscriptions, Advisors & Sites
Best Stock #4: Ally Financial
Sector: Financials
Market cap: $8.9 billion
Dividend yield: 4.4%
Price as of writing: ~$29/share
Smaller banking stocks have taken a hit in 2023 in the wake of the Silicon Valley Bank failure. Ally Financial (ALLY) is no stranger to this stress, but it remains a strong company worth consideration.
Ally, formerly the General Motors Acceptance Corporation (GMAC), was the financing arm of General Motors (GM). However, it was spun off more than a decade ago in the wake of the Global Financial Crisis and the U.S. government's bailout of Big Auto.
Today, Ally remains specialized in auto finance, though it also offers banking, home loans, consumer lending, investing, and other services. It also was an early proponent of online-only banking, including high-yield savings accounts that couldn't offer particularly attractive yields in a 0% interest-rate environment, but that now offer fatter yields amid higher interest rates and are growing more popular as a result.
It's an attractive midsized banking stop that's cheap in share price and generous with its dividend. Its current dividend yield is just less than triple the S&P 500's payout.
Also worth noting is that investing icon Warren Buffett is a big investor in Ally Financial; the investment arm of his Berkshire Hathaway (BRK.B) holding company added heavily to its position in this company across 2022 thanks to attractive valuations and generous dividends. It helps to have the backing of a big name like that, both to provide stability to shares and to ensure management stays committed to its shareholders in the long haul.
Related: How to Invest Money: 5 Steps to Start Investing w/Little Money
Best Stock #5: Barrick Gold
Sector: Materials
Market cap: $30.5 billion
Dividend yield: 2.4%
Price as of writing: ~$17/share
Whenever inflation is a concern for investors, it can help to add some hard assets or raw materials to your portfolio. That's because many hard assets, such as metal and crude oil, are priced in U.S. dollars—and since inflation shrinks the dollar's worth, that means it takes more dollars to buy, say, an ounce of metal or barrel of oil.
That's exactly the kind of exposure you can get via Barrick Gold (GOLD), one of the largest dedicated gold miners in the world.
Headquartered in Toronto, Barrick has ownership interests in gold and copper mines across several continents, but primarily in North America, South America, and Africa. According to its 2022 annual report, the company actually grew its net reserves (how much Barrick believes it can mine from its properties) last year by 6.7 million ounces to an amazing 76 million total ounces thanks to new projects. With gold prices currently at roughly $1,960 per ounce, that adds up to a cool $149 billion at current market prices.
Thanks to the underlying value here and the general sentiment that inflation will only continue to lift commodity prices in the near-term, Barrick stock has managed to outperform the broader stock market in 2023.
Just remember: There's no guarantee that gold prices will remain high forever, or that those minerals will be easy to extract. Still, it's clear that Barrick is sitting on a massive store of gold deposits, and this is one of the best mining operators in the world, providing real value to underpin this company's stock price.
Related: 9 Best Charles Schwab Alternatives
Best Stock #6: Takeda Pharmaceutical
Sector: Healthcare
Market cap: $48.2 billion
Dividend yield: 4.2%
Price as of writing: ~$17/share
When beginner investors get started in the stock market, they tend to think only of large U.S.-based companies like Apple (AAPL) or Tesla (TSLA). But you have access to far more stock investments than that, as illustrated by Takeda Pharmaceutical (TAK).
Takeda is a massive pharmaceutical company, with its best-selling gastroenterology drug Entyvio expected to come in at $5.4 billion in sales when it reports its annual financials. The Tokyo-based firm is perhaps not as well-known as U.S. based giants such as Pfizer (PFE) and Eli Lilly (LLY), but it definitely is in the same league as other Big Pharma mainstays.
And despite being a Japanese firm, it's just as easy to trade as U.S. stocks—it's listed on U.S. exchanges and trades for less than $20 per share.
Generally, healthcare is a recession-proof sector that can guide your portfolio through times of uncertainty fairly well. After all, sick people simply must buy drugs regardless of their income levels or consumer sentiment. And in the wake of a $62 billion acquisition of Shire in 2019 to bolster its market share and product pipeline, Takeda definitely has the scale and staying power that investors in low-risk stocks should find attractive right now.
If you're looking for geographic diversification to round out your portfolio, this cheap stock is worth a look. But even if you're not, Takeda is a multinational healthcare company that merits consideration anyways.
Related: 11 Best Stock Advisor Websites & Services to Seize Alpha
Best Stock #7: Kimco Realty
Sector: Real estate
Market cap: $12.9 billion
Dividend yield: 4.8%
Price as of writing: ~$21/share
Kimco Realty (KIM)
is one of North America's largest publicly traded operators of strip malls—or in real estate jargon, "open-air, grocery-anchored shopping centers." KIM focuses on tenants that are mainstays of local economies, such as grocers, home improvement stores, and pharmacies.
This makes Kimco's real estate a bit more reliable than traditional mall operators. You see, while delivery has certainly eaten into people's desire to go to the mall, most people still travel to the grocery store—and thus are more likely to frequent the stores right around them.
Kimco owns interests in nearly 530 U.S. shopping centers and mixed-use assets, adding up to 90 million square feet. And while some of those sites took a ding curing the pandemic, its occupancy rate is now back up to 95.8%—approaching pre-pandemic levels. What's more, its rent per square foot now tallies $19.86, which is 8% higher than at the end of 2019, before the pandemic roiled real estate markets.
Kimco's also a different entity called a real estate investment trust (REIT). It trades just like a regular stock, but it has special rules—including that it must return at least 90% of its taxable income back to shareholders. This makes for generous and reliable dividends that are currently about three times what the S&P 500 Index pays.
Admittedly, KIM had to cut its dividend during the pandemic, and the current quarterly payout of 23 cents per share is still lower than the 28 cents per share it paid in 2019, Kimco's encouraging operations point to the likelihood of continued increases to payouts. That's great news to longtime and new shareholders alike.
Related: 9 Best Real Estate Crowdfunding Sites + Platforms
Best Stock #8: United Microelectronics
Sector: Technology
Market cap: $18.1 billion
Dividend yield: 7.5%
Price as of writing: ~$7/share
Though priced at under $10 a share right now, Taiwanese semiconductor manufacturer United Microelectronics (UMC) is still having a decent 2023 and has plenty of potential going forward.
United Microelectronics operates a foundry and provides testing services. So unlike branded chipmakers like Intel (INTC) that spend billions on researching and patenting products, UMC simply produces what other semiconductor designers request. The margins aren't quite as high in this kind of semiconductor operation, but they are much more reliable.
The semiconductor industry slumped in 2022 thanks to fears of economic slowdowns that could weigh on consumer spending (and semiconductor demand as a result). And, of course, there's the much-publicized supply chain disruption, which has plagued the industry over the past few years and held back sales simply because the products can't get to end-users and manufacturers in a timely manner.
But semiconductors are back in favor as they work through these lingering challenges, and because of a rosier economic outlook for Europe and Asia—not to mention the recent United States Chips and Science Act, which aims to inject $280 billion into the industry.
Any risk of a consumer spending slowdown could once again undercut chip stocks. But UMC has weathered the past few years pretty well.
Related: 21 Best Stock Research & Analysis Apps, Tools and Sites
Best Stock #9: VF Corp.
Sector: Consumer discretionary
Market cap: $7.6 billion
Dividend yield: 6.4%
Price as of writing: ~$20/share
Apparel giant VF Corp. (VFC) is cheap for admittedly good reason.
VF Corp. is the parent company of North Face, Timberland, Vans, JanSport, and the popular streetwear brand Supreme, among others. And the company has struggled mightily since mid-2021, with shares losing three-quarters of their value since then!
Part of the struggle was that a post-pandemic pop in 2021 wasn't sustainable after all that pent-up demand was deployed. Indeed, the company's profits are expected to drop by almost 35% this year.
VF Corp. also is suffering pains following its 2019 spinoff of Kontoor Brands (KTB), which held the Wrangler and Lee brands, among others. While not particularly flashy brands, they delivered reliable income compared to the more fickle nature of VF Corp's fashion brands. Fast-forward to 2023, and VFC has been forced to announce several cost-saving measures, including cutting its dividend by 40%—a move that snapped a nearly half-century streak of annual dividend increases.
The consequences have been painful for current shareholders. But new investors have an opportunity to enter not just a low-priced stock, but a stock that looks value-priced based on estimates for future earnings. Meanwhile, corporate management has signaled that it's no longer chasing growth for growth's sake, and that it's prioritizing profits instead.
There is some serious risk here, especially considering potential recession risks and fears of a broader retail spending slowdown. But much of the bad news is already "baked" into VFC's share price. For some, this cheap stock could be too much of a bargain to pass up.
Related: 14 Best Investment Opportunities for Accredited Investors
Top Cheap Stocks for Beginners
COMPANY TICKER MARKET CAP DIVIDEND YIELD PRICE
Ally Financial NYSE:ALLY $7.5 billion 4.6% ~$25/share
AT&T NYSE:T $140.0 billion 5.7% ~$17/share
Barrick Gold NYSE:GOLD $34.1 billion 2.8% ~$19/share
Ford NYSE:F $50.9 billion 4.9% ~$12/share
Kimco Realty NYSE:KIM $12.0 billion 4.8% ~$19/share
NiSource NYSE:NI $12.0 billion 3.5% ~$28/share
Takeda Pharma NYSE:TAK $52.2 billion 4.0% ~$17/share
United Microelectronics NYSE:UMC $21.3 billion 6.0% ~$8/share
VF Corp. NYSE:VFC $8.6 billion 5.6% ~$22/share
ALL LISTED DATA IS AS OF THIS WRITING
Frequently Asked Questions (FAQs)
What other investments make sense for beginner investors?
If you're looking for low-priced investments, exchange-traded funds (ETFs) and mutual funds are also good options. These vehicles provide built-in diversification, allowing you to make a stock market investment of dozens, hundreds, and even thousands of shares with a single holding, rather than going out and purchasing multiple individual stocks yourself. In exchange, you'll pay an annual fee that is taken directly out of the fund's performance (and if you're buying a mutual fund, a fee might also be taken from your initial investment).
Many ETFs and some mutual funds are index funds, meaning that instead of human stock pickers, they track a rules-based index of stocks, bonds, and other investments. As a result, index funds often offer cheaper fees.
Why let funds do the work? Well, when you start investing, you might not have confidence in your own research—and ETFs and mutual funds take that weight off your shoulders. Funds also let you buy a wider portfolio for the same price as a few stocks. Imagine if you wanted to buy 100 different stocks that each cost an average of $30 per share—that'd be $3,000 out of your pocket. But an ETF might hold a piece of all 100 of those stocks for you, and the ETF shares might cost just $30 or $40.
Is my stock market investment safe?
Simply put: Investing involves risk. And as you probably read when you signed up for your stock trading account, you can lose money in stocks. You can improve your chances of making money by doing research and holding over a long period of time rather than making short-term trades—indeed, the stock market has always trended higher over the long term. But short-term swings in the market can be uncomfortable, and individual companies can and do go bust.
You'll need to think about how much risk you can stomach, known as your risk tolerance. Depending on your risk tolerance, you might be fine buying, say, a few risky growth stocks … or you might want to just stash your money in a diversified, broad-market ETF.
But there's no 100% guarantee of safety—not in stocks, not in bonds, not in any type of investment.
Especially once you start amassing a larger amount of money, it might make sense to consult with a financial advisor to discuss both how much risk you're willing to take, and how to manage that risk.
What kind of brokerage account should I use?
If you're just starting out, chances are you'll need to use a brokerage account—the most basic type of investment account there is. Your typical online brokerage account will allow you to invest in stocks, ETFs, and mutual funds; some also allow you to invest in options, bonds, cryptocurrency and more.
Nowadays, brokerage accounts have their own investment apps, which allow you to do much more than buy and sell stocks. These apps can also help you manage your investment portfolios, research investments, and track your wealth over time—all from the comfort of your home (or on the go).
If you're looking for a place to start your search, consider our list of the best investing apps for beginners. Each stock brokerage account has specifically been selected for their relative ease of use, low costs, and other beginner-friendly attributes. Below, we highlight our top pick for beginners, Robinhood—but if it doesn't have the features you're looking for, feel free to explore the other options on our top beginner apps list.
Robinhood (Best Stock Trading App for Beginners)
Available: Sign up here
Best for: Beginner traders
Platform: Web, mobile app (Apple iOS, Android)
Robinhood
is a pioneer of commission-free trading, jumping into the investing public’s consciousness in 2013 when they rolled out commission-free trading. They remain a standout option for cost-minded investors thanks to their continued $0 commissions on stocks, ETFs, and options, as well as for its fractional trading, which allows people to invest with as little as $1.
More importantly, though, Robinhood has evolved from a bare-bones app appealing to mostly beginner investors to a fuller-featured account suitable for a wider range of experience levels.
For instance, Robinhood now offers individual retirement accounts (IRAs) and Roth IRAs via Robinhood Retirement. Functionally, it comes up short compared to many other IRA providers because of its investment options. It offers just stocks and ETFs; like with its brokerage account, mutual funds aren’t available. Options aren’t currently available, though Robinhood has explicitly stated that options will be made available soon.
However, Robinhood Retirement still stands out from the pack because it’s the only IRA provider that offers matching funds. If you open up an IRA with Robinhood Retirement, Robinhood will match 1% of any IRA transfers, 401(k) rollovers, and annual contributions to your account—and 3% if you pay for the Robinhood Gold service ($5 per month)—typically almost immediately after you make your contribution. Better still: Any matches made on annual contributions don’t count toward your contribution limit.
(Friendly message from your Young and the Invested tax expert: The reason the IRA match doesn’t count toward your annual IRA contribution limit is because Robinhood treats it as interest income in your IRA.)
You can choose your IRA investments yourself, but Robinhood’s Portfolio Builder can also provide you with a custom recommended portfolio made up of five to eight ETFs.
Robinhood has long catered to younger investors with its gamified interface and growing library of educational content. But over the years, it has added a boatload of other features for new and experienced investors alike. Advanced Charts, for instance, provides simple and customizable charts with a variety of technical features. Robinhood's Options Strategy Builder simplifies the options-trading process by helping you build a strategy based on what you expect your target stock or ETF will do in the future. Robinhood also offers 24/7 commission-free cryptocurrency trading with Robinhood Crypto (though you’ll still have to pay a spread), allows extended-hours trading, and lets users earn interest through stock lending.
Robinhood Gold, which I mentioned above, is a monthly subscription service that offers several more features mostly geared toward advanced traders. Benefits include Level II market data provided by Nasdaq, a lower charged rate on margin investing than regular accounts, higher interest on uninvested brokerage cash via the cash sweep program, and bigger Instant Deposits.
If you want to keep your banking and investing close together, you can also add a Robinhood spending account. This FDIC-insured account includes a Robinhood Cash Card issued by Sutton Bank—however, if you don’t want this physical debit card, you do have the option of having a virtual debit card only. The Cash Card is compatible with Apple Pay, Google Pay, and Samsung Pay, and also provides you with access to fee-free withdrawals from more than 90,000 ATMs. The card allows you to round-up purchases and invest the money into your brokerage or crypto account.
Sign up for a Robinhood brokerage account or Robinhood retirement account today. Robinhood investment accounts carry up to $500,000 of Securities Investor Protection Corporation coverage.
Related:
11 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers]
The 7 Best Vanguard Index Funds for Beginners
17 Best Stock News Apps & Sites [Financial & Stock Market Info]
Jeff Reeves held shares of T as of this writing. He did not hold a position in any of the other aforementioned recommended securities.
The views and 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 beginner investors get started in the stock market, they tend to think only of large U.S.-based companies like Apple (AAPL) or Tesla (TSLA). And in the wake of a $62 billion acquisition of Shire in 2019 to bolster its market share and product pipeline, Takeda definitely has the scale and staying power that investors in low-risk stocks should find attractive right now. And, of course, there's the much-publicized supply chain disruption, which has plagued the industry over the past few years and held back sales simply because the products can't get to end-users and manufacturers in a timely manner.
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When beginner investors get started in the stock market, they tend to think only of large U.S.-based companies like Apple (AAPL) or Tesla (TSLA). Today, Ally remains specialized in auto finance, though it also offers banking, home loans, consumer lending, investing, and other services. Ally Financial NYSE:ALLY $7.5 billion 4.6% ~$25/share AT&T NYSE:T $140.0 billion 5.7% ~$17/share Barrick Gold NYSE:GOLD $34.1 billion 2.8% ~$19/share Ford NYSE:F $50.9 billion 4.9% ~$12/share Kimco Realty NYSE:KIM $12.0 billion 4.8% ~$19/share NiSource NYSE:NI $12.0 billion 3.5% ~$28/share Takeda Pharma NYSE:TAK $52.2 billion 4.0% ~$17/share United Microelectronics NYSE:UMC $21.3 billion 6.0% ~$8/share VF Corp. NYSE:VFC $8.6 billion 5.6% ~$22/share
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When beginner investors get started in the stock market, they tend to think only of large U.S.-based companies like Apple (AAPL) or Tesla (TSLA). Value stocks and growth stocks alike can be dividend stocks, too, though you'll more commonly find dividends (and more commonly find higher dividends) among value stocks. In general, the price of a stock doesn't tell you much about its quality—a $20 stock is not inherently a better or worse investment than a $500 stock—but extremely cheap shares, especially under $1, can be problematic.
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When beginner investors get started in the stock market, they tend to think only of large U.S.-based companies like Apple (AAPL) or Tesla (TSLA). Why Should I Invest in the Stock Market? Related: 12 Best Stock Trading Apps + Platforms for Beginners Best Stock #2: NiSource
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2023-07-27 00:00:00 UTC
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Chart of the Week: Mid-Cap ETFs in Focus
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https://www.nasdaq.com/articles/chart-of-the-week%3A-mid-cap-etfs-in-focus
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It’s been an impressive 2023 for U.S. large-cap equities. The iShares Core S&P 500 ETF (IVV) had risen 19% as of July 24, with consumer discretionary and information technology stocks leading the way. However, many advisors recently told VettaFi that they believe other strategies will perform better in the remainder of 2023.
VettaFi hosted a webcast for financial advisors in partnership with Motley Fool Asset Management in late July. We asked, “Which equity investment style do you think will perform best in the second half of 2023?” Only one-third of respondents chose U.S. large-caps, with the three remaining options splitting the vote. The most popular was U.S. mid-caps (25%), followed by U.S. small-caps (22%), and then global growth (20%).
The iShares Core S&P Mid Cap ETF (IJH) is the largest U.S. mid-cap ETF. IJH has $73 billion in assets, aided by $925 million of net inflows in the past month. IJH’s year-to-date total return of 12.4% lagged IVV, but its double-digit gain should still please many of its shareholders.
What’s Inside a Mid-Cap ETF?
IJH’s largest sector is industrials (23% of assets), with a weighting nearly triple that of IVV (8.5%). In contrast, IJH’s 10% stake in information technology stocks is almost one-third the size of IVV (28%). Five of IJH’s recent top-10 holdings were industrial stocks. Builders FirstSource (BLDR), Graco (GGG), and Hubbell (HUBB) were the largest, though none of them represented more than 1% of ETF assets.
Mid-Caps Offer a Less Concentrated Approach
In contrast, 14 stocks in IVV had larger than 1.0% weightings, led by information technology giants Apple (AAPL) and Microsoft (MSFT). IJH’s information technology exposure includes positions in Jabil (JBL) and Super Micro Computer.
With a net expense ratio of 0.05%, IJH is a low-cost way for advisors to obtain diversified mid-cap exposure. However, there are other alternatives.
Vanguard’s Mid-Cap ETF Is Built Differently
The Vanguard Mid-Cap ETF (VO) charges a 0.04% fee, and its $56 billion asset base makes it the second-largest fund in the style. VO tracks a different index than IJH, from CRSP, which results in distinct exposure. For example, the $26 billion median market capitalization of VO’s holdings at the end of June was much higher than IJH’s ($5.5 billion).
Industrials were again the largest sector, but the 18% weighting for VO was more modest than IJH’s. Meanwhile, VO had 14% invested in information technology stocks. Cintas (CTAS) and PACCAR (PCAR), two of VO’s largest industrial positions, were among the smallest stakes in IVV. This should serve as a reminder to look inside ETFs when pairing them.
What Other Mid-Cap ETFs Are Available?
The iShares Russell Mid-Cap ETF (IWR), the Schwab US Mid-Cap ETF (SCHM), and the SPDR S&P MidCap 400 ETF (MDY) are other mid-cap ETFs with more than $10 billion in assets under management. MDY tracks the same index as IJR, while IWR and SCHM are distinct. Advisors that believe mid-cap ETFs can perform best in the second half have some strong index-based choices.
For more news, information, and analysis, visit the Equity ETF Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Mid-Caps Offer a Less Concentrated Approach In contrast, 14 stocks in IVV had larger than 1.0% weightings, led by information technology giants Apple (AAPL) and Microsoft (MSFT). VettaFi hosted a webcast for financial advisors in partnership with Motley Fool Asset Management in late July. We asked, “Which equity investment style do you think will perform best in the second half of 2023?” Only one-third of respondents chose U.S. large-caps, with the three remaining options splitting the vote.
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Mid-Caps Offer a Less Concentrated Approach In contrast, 14 stocks in IVV had larger than 1.0% weightings, led by information technology giants Apple (AAPL) and Microsoft (MSFT). In contrast, IJH’s 10% stake in information technology stocks is almost one-third the size of IVV (28%). Vanguard’s Mid-Cap ETF Is Built Differently The Vanguard Mid-Cap ETF (VO) charges a 0.04% fee, and its $56 billion asset base makes it the second-largest fund in the style.
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Mid-Caps Offer a Less Concentrated Approach In contrast, 14 stocks in IVV had larger than 1.0% weightings, led by information technology giants Apple (AAPL) and Microsoft (MSFT). The iShares Core S&P Mid Cap ETF (IJH) is the largest U.S. mid-cap ETF. Vanguard’s Mid-Cap ETF Is Built Differently The Vanguard Mid-Cap ETF (VO) charges a 0.04% fee, and its $56 billion asset base makes it the second-largest fund in the style.
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Mid-Caps Offer a Less Concentrated Approach In contrast, 14 stocks in IVV had larger than 1.0% weightings, led by information technology giants Apple (AAPL) and Microsoft (MSFT). The iShares Core S&P Mid Cap ETF (IJH) is the largest U.S. mid-cap ETF. Meanwhile, VO had 14% invested in information technology stocks.
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2023-07-27 00:00:00 UTC
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Are the Big Tech Stocks About to Take a Breather? Here's What This Broker Thinks
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https://www.nasdaq.com/articles/are-the-big-tech-stocks-about-to-take-a-breather-heres-what-this-broker-thinks
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It has been a rip-roaring start to 2023 for the stock market with the technology sector performing particularly well. The Nasdaq-100 index, which is home to the largest tech companies listed on the Nasdaq exchange, has surged 42% year-to-date.
But has it moved too far, too fast? While it shouldn't be a concern for long-term investors, there's a chance the market could take a temporary breather based on some data released in the 2023 second-quarter earnings report of Interactive Brokers (NASDAQ: IBKR), one of the world's largest online stock brokerage firms.
While the company had a record number of customers, it revealed some evidence investors might be more cautious now than they were at the start of the year. Share trading volumes dropped materially both year over year and compared to Q1, as investors are sitting on significant gains in the "Magnificent 7" tech stocks and are reluctant to sell. But it's also an indication that investors are hesitant to open new positions, and here's what IBKR thinks will happen next.
Image source: Getty Images.
Investors have piled into big tech stocks this year
It's no secret to investors that a very narrow group of tech stocks have led the broader market higher this year. The phenomenon is so prevalent that one Bank of America analyst dubbed them the "Magnificent 7," and the group includes:
Apple
Microsoft
Amazon
Google parent Alphabet
Meta Platforms
Tesla
Nvidia
The top performer of the bunch is Nvidia, which is sitting on a whopping 209% gain for 2023. But even the worst performer, Alphabet, has returned 34% which is much better than the 18% return of the benchmark S&P 500 stock market index.
IBKR had a record-high 2.29 million customer accounts in Q2, climbing 19% year over year. Company director Nancy Stuebe said the Magnificent 7 was the most popular group of stocks among the client base in 2023. But she said that trend is now detrimental to brokerage commissions, because investors are reluctant to sell their positions. It likely means they expect further upside, but on the other hand, investors also aren't rushing to buy more.
IBKR's share trading volume fell 28% year over year, which was by far its worst-performing segment. It was also down 22% compared to the first quarter result just three months prior, which points to an abrupt drop in enthusiasm for new positions. Here's more bad news: Stuebe doesn't expect this situation to reverse any time soon.
But IBKR did catch one major tailwind in Q2
While lower trading volume equals less commission revenue, IBKR has been a major beneficiary of rising interest rates which are more than making up for it. The firm generates interest income in two ways: first, it earns interest on the cash its clients are holding in its custody, and second, it earns interest on money it loans to clients to buy stocks and other financial assets (often called margin lending).
Thanks to the rapid rise in interest rates over the last 12 months, IBKR's overall Q2 net interest margin (NIM) came in at 2.29%, which was almost double its year-ago result. The NIM is the difference between the interest rate IBKR earns, and the rate it pays back to lending partners and clients.
The end result was $1.3 billion in net interest income, an increase of 110% year over year. Because IBKR offers to pay a relatively high interest rate to customers who hold cash in their accounts (to entice them to stay), the majority of its net interest income came from margin lending. Revenue for that segment specifically topped $1 billion, up 195%.
Since commission revenue was flat, IBKR can attribute all of its overall second-quarter revenue growth of 58% to the interest rate environment.
The Magnificent 7 might have a quieter second half of 2023
That shouldn't come as a surprise. It would be unrealistic to expect shares of Nvidia to triple again over the next six months, for example, because that would make it the largest company in the world! IBKR Chairman Thomas Peterffy believes trading will be down somewhat for the rest of the year, but he's optimistic there could be more volume coming from new investing strategies powered by artificial intelligence (AI).
He thinks there could be a spike in registered investment advisors in the future, who rely on AI algorithms to manage their clients' money. This might drive down the cost of advice, which will attract smaller investors in larger numbers. On the whole, that trend would be positive for IBKR's commission revenue.
On the flipside, interest rates probably won't remain at elevated levels for much longer. Experts are already predicting the U.S. Federal Reserve will begin to cut rates early next year, which will slowly erode IBKR's NIM. However, lower rates are typically good for stocks, so it could drive investors into the market and reignite the company's commission revenue.
Therefore, even if the tech sector and the Magnificent 7 experience a more subdued second-half of 2023, they might simply be consolidating ahead of further upside in 2024. As I mentioned at the top, long-term investors probably shouldn't be swayed by this.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Interactive Brokers Group and Nasdaq. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While it shouldn't be a concern for long-term investors, there's a chance the market could take a temporary breather based on some data released in the 2023 second-quarter earnings report of Interactive Brokers (NASDAQ: IBKR), one of the world's largest online stock brokerage firms. IBKR Chairman Thomas Peterffy believes trading will be down somewhat for the rest of the year, but he's optimistic there could be more volume coming from new investing strategies powered by artificial intelligence (AI). The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Meta Platforms, Microsoft, Nvidia, and Tesla.
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Share trading volumes dropped materially both year over year and compared to Q1, as investors are sitting on significant gains in the "Magnificent 7" tech stocks and are reluctant to sell. The phenomenon is so prevalent that one Bank of America analyst dubbed them the "Magnificent 7," and the group includes: Apple Microsoft Amazon Google parent Alphabet Meta Platforms Tesla Nvidia The top performer of the bunch is Nvidia, which is sitting on a whopping 209% gain for 2023. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Meta Platforms, Microsoft, Nvidia, and Tesla.
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While it shouldn't be a concern for long-term investors, there's a chance the market could take a temporary breather based on some data released in the 2023 second-quarter earnings report of Interactive Brokers (NASDAQ: IBKR), one of the world's largest online stock brokerage firms. Share trading volumes dropped materially both year over year and compared to Q1, as investors are sitting on significant gains in the "Magnificent 7" tech stocks and are reluctant to sell. Investors have piled into big tech stocks this year It's no secret to investors that a very narrow group of tech stocks have led the broader market higher this year.
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Investors have piled into big tech stocks this year It's no secret to investors that a very narrow group of tech stocks have led the broader market higher this year. Thanks to the rapid rise in interest rates over the last 12 months, IBKR's overall Q2 net interest margin (NIM) came in at 2.29%, which was almost double its year-ago result. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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2023-07-26 00:00:00 UTC
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Machine Learning Megatrends: 3 AI Stocks Set to Dominate
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https://www.nasdaq.com/articles/machine-learning-megatrends%3A-3-ai-stocks-set-to-dominate
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There’s no denying the strength and momentum we’ve seen in AI stocks this year. In fact, the top AI stocks have played an enormous role in the stock market’s robust returns so far this year.
While the S&P 500 was searching for direction in the first quarter, Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA) were bombarding higher as catalyst after catalyst continued to pave the way for its AI advances. Together, the duo now accounts for more than $3.6 trillion in combined market capitalizations.
However, they have ignited plenty of other stocks higher along the way, too. Some of these firms are well-known tech companies. Others are smaller, lesser-known entities in the high-growth space. Either way, the trend remains robust.
Earlier this year, Billionaire investor Stanley Druckenmiller said AI could be as “transformative as the internet.” If that’s the case, let’s look at a few of the top AI stocks to buy now.
AI Stocks to Dominate: Nvidia (NVDA)
Source: sdx15 / Shutterstock.com
There’s no denying that Nvidia is the most dominant name in AI right now. In some measures, it has no competition, so while its stock gains are astronomical (and even somewhat comical), what’s going to stop Nvidia from printing money at this moment?
Nothing!
Shares are currently up more than 215% so far this year and up more than 300% from the 2022 lows. Going into earnings in late May, the stock was up almost 110%, and the bullish bets had been piling up. I distinctly remember most investors assuming it couldn’t go much higher, as it had made up almost all of its bear market losses and run a great deal going into the event.
Then the company blew out expectations, while management guided for current-quarter revenue of roughly $11 billion vs. expectations of just $7 billion, and the stock erupted. Shares closed higher by almost 25% the next day and have now climbed 50% since that report.
My point is, what if Nvidia has another massive revenue guidance this quarter? What company is stepping in to soak up the excess demand for its AI chips?
For now, Nvidia remains at the forefront of AI domination.
Best Machine Learning Stocks: Alphabet (GOOGL, GOOG)
Source: IgorGolovniov / Shutterstock.com
ChatGPT is owned by OpenAI, a firm that Microsoft had invested in previously but made another big investment in earlier this year. That’s as the company’s ChatGPT platform exploded in popularity, garnering more than 100 million active users in record time.
In the minds of investors, that made Microsoft a top AI play seemingly overnight. To pour salt on the wound for Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), the company had a somewhat embarrassing gaff with its own AI chat platform, Bard.
Now, there are a few things to take note of here.
First, Alphabet hasn’t been the best at building out platforms outside of Google and YouTube — the top two websites in the world. It failed at social media, and its phone will never displace Apple’s (NASDAQ:AAPL) iPhone. It lags in streaming video and streaming music.
So one might wonder just how Alphabet’s Bard is going to displace ChatGPT. Well, it may never. However, if the company integrates the platform with Google, it should become one of the best machine-learning stocks on the planet.
“Google” has become a verb, and Google.com is the most popular website in the world (literally). Assuming Alphabet can successfully incorporate AI into its Chrome browser — which tops theglobal marketshare — and its Google search platform, it will become a dominant AI stock.
Top AI Stocks of the Future: Baidu (BIDU)
Source: monticello / Shutterstock.com
If you read the above passage on Alphabet and are receptive to Chinese-listed equities, you might love Baidu (NASDAQ:BIDU).
The firm sits with a market capitalization of about $52 billion. In other words, Alphabet is almost 30 times larger. However, the opportunity here is interesting.
Like Alphabet, Baidu is an internet search platform. However, because Google can’t operate in China, another company has to pick up the slack — that company being Baidu. It’s the No. 6 website in the world and the top website in China.
That makes it incredibly valuable, even if U.S. investors aren’t that familiar with the name. Analysts expect about 13% earnings growth this year and next year while shares trade at about 15 times earnings.
Even if BIDU stock doubled from current levels, it still wouldn’t make new highs. That highlights the lacking love from the market and the stock’s upside potential. However, if it’s the next one to take off due to AI, it could have a lot of runway.
On the date of publication, Bret Kenwell 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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
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The post Machine Learning Megatrends: 3 AI Stocks Set to Dominate appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It failed at social media, and its phone will never displace Apple’s (NASDAQ:AAPL) iPhone. I distinctly remember most investors assuming it couldn’t go much higher, as it had made up almost all of its bear market losses and run a great deal going into the event. More From InvestorPlace The #1 AI Name for 2023 Could Be About to Ignite This $20.6 Trillion Wealth Shift Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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It failed at social media, and its phone will never displace Apple’s (NASDAQ:AAPL) iPhone. While the S&P 500 was searching for direction in the first quarter, Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA) were bombarding higher as catalyst after catalyst continued to pave the way for its AI advances. Best Machine Learning Stocks: Alphabet (GOOGL, GOOG) Source: IgorGolovniov / Shutterstock.com ChatGPT is owned by OpenAI, a firm that Microsoft had invested in previously but made another big investment in earlier this year.
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It failed at social media, and its phone will never displace Apple’s (NASDAQ:AAPL) iPhone. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There’s no denying the strength and momentum we’ve seen in AI stocks this year. In fact, the top AI stocks have played an enormous role in the stock market’s robust returns so far this year.
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It failed at social media, and its phone will never displace Apple’s (NASDAQ:AAPL) iPhone. AI Stocks to Dominate: Nvidia (NVDA) Source: sdx15 / Shutterstock.com There’s no denying that Nvidia is the most dominant name in AI right now. However, because Google can’t operate in China, another company has to pick up the slack — that company being Baidu.
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2023-07-26 00:00:00 UTC
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3 Tech Stocks You Better Be Buying on Each and Every Dip
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https://www.nasdaq.com/articles/3-tech-stocks-you-better-be-buying-on-each-and-every-dip
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) command significant influence in the market, driving fierce competition and sparking relentless innovation. However, their dominance presents challenges for emerging companies striving to differentiate themselves. This has led to the rise of the best tech stocks to buy.
One area presenting immense potential for growth and investor interest is Generative AI. This rapidly advancing field holds promising prospects as its technology continues to mature, becoming increasingly applicable in a broad range of industries. Notably, Nvidia (NASDAQ:NVDA), a leading player in the field, has been developing AI-accelerated chips that maximize the potential of applications like ChatGPT.
Meanwhile, the semiconductor industry, integral to nearly every tech-enabled product, from cars to washing machines, continues to thrive as one of the largest sectors in the tech industry. In the following discussion, we will delve into two semiconductor companies: one an established giant, the other a smaller international entity boasting an impressive dividend yield.
Lastly, we’ll explore a burgeoning Bitcoin (BTC:USD) mining company that’s expanding its production potential through environmentally conscious methods, illustrating the evolving landscape of cryptocurrency mining.
United Microelectronics (UMC)
Source: Shutterstock
United Microelectronics (NYSE:UMC) operates as a dedicated semiconductor wafer foundry company based in Taiwan. United Microelectronics produces silicon wafers that provide integrated circuits for semiconductors and other electronic products. They have 12 different facilities located throughout Asia that produce approximately 850,000 wafers per month. This makes it one of those best tech stocks to buy.
The company reported first-quarter earnings back in April. Their net income fell by 18%, and total revenue dropped by 15% compared to the first quarter of 2022. Shrinking demand for silicon wafers due to inflated inventory levels led to a drop in overall profit. And the company also stated that it expects the continued demand shortage for semiconductors products to will affect second-quarter earnings. United Microelectronics has been implementing cost-cutting measures to help offset revenue stagnation.
They also offer a dividend yield of approximately 8% on an annual basis, with $0.14 per share being paid to shareholders quarterly.
CleanSpark (CLSK)
Source: shutterstock.com/spaxiax
CleanSpark (NASDAQ:CLSK) is a Bitcoin mining company that provides sustainable infrastructure for mining operations through low-emission energy sources such as solar, wind, hydro, and nuclear.
They are based in Henderson, Nevada. And the stock price year-to-date is up by over 205%, mainly to the increase in the price of Bitcoin, which has surged by more than 75% since the beginning of the year.
Cleanspark just recently acquired two Bitcoin mining campuses located in Dalton, Georgia, in an all-cash deal worth $9.3 million. It was stated in their most recent Bitcoin mining update that the company mined 491 Bitcoin worth approximately $13 million. The company reached phase two for its mining campus in Georgia, in which it is increasing its computing power, also known as hash rate, to 8.5 exahashes per second which is over halfway towards there target for the end of the year.
Texas Instruments (TXN)
Source: Katherine Welles / Shutterstock.com
Texas Instrumental (NASDAQ:TXN) is a global semiconductor company based out of Dallas, Texas. They provide chips for many industries, such as automotive, industrial, and personal electronics.
In February, the company announced plans to build an addition to its 300 mm wafer fabrication facility in Lehi, Utah. This represents an $11 billion investment, the most significant economic investment in all of Utah’s history. And it’s expected to add over 800 new jobs and thousands of indirect jobs to the area.
In April, Haviv Ilan became the new President and CEO of Texas Instruments, and the previous CEO, Rich Templeton, will remain as Chairman. This is another reason why TXN is one of those best tech stocks.
The company released second-quarter earnings on July 25. Net income fell by 25%, and total revenue declined by 13%. Similar to United Microelectronics and other semiconductors companies, Texas Instruments experienced weakness in the market, leading to a decrease in profits.
On the date of publication, Noah Bolton did have a long position in UMC. 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 3 Tech Stocks You Better Be Buying on Each and Every Dip 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 Tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) command significant influence in the market, driving fierce competition and sparking relentless innovation. The company reached phase two for its mining campus in Georgia, in which it is increasing its computing power, also known as hash rate, to 8.5 exahashes per second which is over halfway towards there target for the end of the year. 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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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) command significant influence in the market, driving fierce competition and sparking relentless innovation. United Microelectronics (UMC) Source: Shutterstock United Microelectronics (NYSE:UMC) operates as a dedicated semiconductor wafer foundry company based in Taiwan. CleanSpark (CLSK) Source: shutterstock.com/spaxiax CleanSpark (NASDAQ:CLSK) is a Bitcoin mining company that provides sustainable infrastructure for mining operations through low-emission energy sources such as solar, wind, hydro, and nuclear.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) command significant influence in the market, driving fierce competition and sparking relentless innovation. United Microelectronics (UMC) Source: Shutterstock United Microelectronics (NYSE:UMC) operates as a dedicated semiconductor wafer foundry company based in Taiwan. Texas Instruments (TXN) Source: Katherine Welles / Shutterstock.com Texas Instrumental (NASDAQ:TXN) is a global semiconductor company based out of Dallas, Texas.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) command significant influence in the market, driving fierce competition and sparking relentless innovation. United Microelectronics (UMC) Source: Shutterstock United Microelectronics (NYSE:UMC) operates as a dedicated semiconductor wafer foundry company based in Taiwan. United Microelectronics produces silicon wafers that provide integrated circuits for semiconductors and other electronic products.
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14690.0
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2023-07-26 00:00:00 UTC
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7 ‘Monster’ Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/7-monster-stocks-to-buy-right-now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Some of the best-performing stocks, including market monsters helped buoy a rebound in equities. These firms are among the largest corporations in their respective niches and exert significant influence. In fact, all of the stocks discussed here are among the 70 most valuable firms globally. They all boast strong fundamentals balanced by future prospects that result in a very attractive combination.
Best-Performing Stocks: Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
Nvidia (NASDAQ:NVDA) has dominated headlines as a must-have AI stock in 2023. Its chips have proven integral to the generative AI boom that has taken root this year. The emergence of, and excitement around generative AI sent Nvidia’s shares surging higher early in 2023.
Then, in late May the firm forecast Q2 revenues of $11 billion when Wall Street had been expecting $7 billion. That catapulted an already strong Nvidia to new heights. Share prices were then around $380 following the news. They’ve passed $450 recently and they don’t look to be slowing down. In fact, a Bank of America (NYSE:BAC) analyst recently upped his target price to $550 for Nvidia’s shares.
That analyst reasons that cloud and enterprise spending substantiates the higher target prices as it drives demand for Nvidia’s AI chips. A $550 share price would represent a nice return for those who purchase now. However, returns could be significantly higher given that one analyst believes they could rise to $767.
Best-Performing Stocks: Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
The trajectory of Microsoft (NASDAQ:MSFT) has mirrored that of Nvidia. Both firms have been massive beneficiaries of the generative AI boom that has added hundreds of billions of dollars to their valuations. Microsoft’s generative AI prowess lies in the actual customer tools available through OpenAI which it has invested in heavily. Those tools have transformative power and promise to increase revenues for Microsoft at an accelerated rate.
In fact, Microsoft recently announced that it has launched a new generative AI subscription for its Microsoft 365 business suite. The subscription is being tested across 600 enterprise partners and costs $30 monthly. That could increase enterprise revenues by as much as 83%. The 365 suite has already been enjoying double-digit growth over the past several years and accounted for $63.36 billion in sales in 2022 alone. Expect Microsoft to add similar revenue-generating services that feature AI capabilities moving forward.
Best-Performing Stocks: Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Apple (NASDAQ:AAPL) skyrocket this year thanks to the dominance of its iPhone, new markets for the iPhone, and the revenue-boosting potential of its Vision Pro VR/AR headset that is due out in early 2024.
Sales of the iPhone set a new record with more than $51.3 billion worth of handsets sold. iPad and Mac sales flagged and sales fell by 3% overall. However, iPhone sales and increasing service revenue have been enough to satiate investors. Part of the reason investors remain keen on AAPL shares is the fact that the company’s Indian market is showing strong signs. The Rest of Asia segment has been a bright spot for the company and Foxconn, a major Apple supplier, is investing in India as well.
The Vision Pro cost is set to cost $3,499 at its release which also provides reason for optimism. All of that news propelled Apple in 2023. It didn’t benefit from the AI boom directly. That might be changing. The company has created its own AI chatbot giving investors one more reason to believe Apple’s growth will continue at its torrid pace.
AMD (AMD)
Source: Pamela Marciano / Shutterstock.com
As I write this, AMD (NASDAQ:AMD) stock is sinking on the news that Taiwan Semiconductor Manufacturing (NYSE:TSM) is warning of a deepening slump. The news sent chip stocks falling across the board. TSMC expects its revenues to fall by 10% in 2023 after giving guidance months earlier that sales would contract by 5%. Given that TSMC is the foundry that provides chips to a large percentage of chip firms the market reacted negatively.
However, there’s reason to believe that AMD will be affected to a much lesser degree than other chip firms. The answer is AI chips. TSMC management stated that end-market demand for its AI chips is expected to grow this year and beyond. That’s where AMD’s strength lies and TSMC is a major supplier to the firm.
The issue is going to affect other chip end markets including automotive, handphones, and industrial segments. AMD is chasing Nvidia and as its nearest competitor its chips are said to be roughly 80% as powerful as Nvidia’s chips.
UnitedHealth Group (UNH)
Source: Shutterstock
Now is likely a good time to buy UnitedHealth Group (NYSE:UNH), as another one of the best-performing stocks to buy. The shares are a buy simply for the fact that the company is fundamentally sound on 16% top-line growth year-over-year. Revenues reached $92.9 billion. UnitedHealth Group’s operational earnings increased by 14% as margins shrunk slightly during the period.
UnitedHealth Group’s medical care ratio increased from 81.5% to 83.2% in the second quarter. That’s another indication that operations remain more difficult for the firm than they were a year ago.
Despite the challenges, UnitedHealth Group’s strong growth provides investors enough reason to be optimistic. Management was satisfied with the results and consequently increased its earnings outlook for the year.
The good news for investors is that with an average target stock price of $570, UNH shares offer more than 10% upside according to Wall Street. There’s an additional 1.5% return for investors in the form of a dividend.
Coca-Cola (KO)
Source: Vova Shevchuk / Shutterstock.com
Coca-Cola (NYSE:KO) certainly has issues currently as concerns about aspartame threaten the company and its stock. I think those fears are largely unfounded given the scientific evidence. The aspartame issue will blow over. It may already have done so. That makes KO shares less risky as consumer staples look strong overall at the moment.
Let’s quickly understand the aspartame scare as it relates to Coca-Cola. The World Health Organization has stated that aspartame is possibly carcinogenic. However, the World Health Organization also states that a person weighing 154 pounds would have to drink 14 cans of aspartame-containing soda per day to reach a level that would be dangerous. In short, there’s little danger to health or KO stock.
At the same time, consumer staple shares are performing well of late and that also benefits Coca-Cola. It remains a great stock for capital preservation and income investors with a dividend yielding nearly 3%.
Novo Nordisk (NVO)
Source: PX Media / Shutterstock
Novo Nordisk (NYSE:NVO) could see potential upside with its Wegovy weight loss drug possibly receiving Medicare coverage. Novo Nordisk’s Wegovy is the first obesity medication on the market. However, there have been affordability concerns as the drug costs more than $16,000 annually without insurance. Medicare is currently prevented from covering the cost of obesity drugs.
A group of lawmakers is looking to change that and has put forth a bill to change coverage. The Treat and Reduce Obesity Act hopes to expand coverage of obesity treatments including Wegovy.
The result is that Novo Nordisk now has much greater future revenue potential due to expanded coverage. Back in May, Novo Nordisk was aiming for $3.72 billion in obesity sales by 2025. That figure had already doubled the firm’s previous expectations from its obesity portfolio. It’s reasonable to believe that Novo Nordisk should expect even better results out of the drug portfolio moving forward.
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 7 ‘Monster’ Stocks to Buy Right Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Best-Performing Stocks: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) skyrocket this year thanks to the dominance of its iPhone, new markets for the iPhone, and the revenue-boosting potential of its Vision Pro VR/AR headset that is due out in early 2024. Part of the reason investors remain keen on AAPL shares is the fact that the company’s Indian market is showing strong signs. However, the World Health Organization also states that a person weighing 154 pounds would have to drink 14 cans of aspartame-containing soda per day to reach a level that would be dangerous.
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Best-Performing Stocks: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) skyrocket this year thanks to the dominance of its iPhone, new markets for the iPhone, and the revenue-boosting potential of its Vision Pro VR/AR headset that is due out in early 2024. Part of the reason investors remain keen on AAPL shares is the fact that the company’s Indian market is showing strong signs. Best-Performing Stocks: Nvidia (NVDA) Source: Michael Vi / Shutterstock.com Nvidia (NASDAQ:NVDA) has dominated headlines as a must-have AI stock in 2023.
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Best-Performing Stocks: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) skyrocket this year thanks to the dominance of its iPhone, new markets for the iPhone, and the revenue-boosting potential of its Vision Pro VR/AR headset that is due out in early 2024. Part of the reason investors remain keen on AAPL shares is the fact that the company’s Indian market is showing strong signs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some of the best-performing stocks, including market monsters helped buoy a rebound in equities.
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Best-Performing Stocks: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) skyrocket this year thanks to the dominance of its iPhone, new markets for the iPhone, and the revenue-boosting potential of its Vision Pro VR/AR headset that is due out in early 2024. Part of the reason investors remain keen on AAPL shares is the fact that the company’s Indian market is showing strong signs. In fact, Microsoft recently announced that it has launched a new generative AI subscription for its Microsoft 365 business suite.
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14691.0
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2023-07-26 00:00:00 UTC
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Microsoft Corrects On Solid Results: AI Is Priced Into The Market
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AAPL
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https://www.nasdaq.com/articles/microsoft-corrects-on-solid-results%3A-ai-is-priced-into-the-market
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nan
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nan
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Microsoft (NASDAQ: MSFT) had an outstanding quarter, but it was not enough to spur the market to rally. The takeaway from the post-release action is that AI is priced into the market, and the stock may not reach new highs this year.
The AI hype plays into Microsoft’s standing as a Top-Rated, Most Upgraded, and Most Searched/Followed Stock on the Marketbeat.com platform, factors that pushed the stock to its current highs. Even the analysts front-run market, opening the door to downward revisions this quarter.
Thirty-five analysts have Microsoft pegged at a consensus of Moderate Buy with a price target trending strongly higher. The most recent targets are well above the current price action, consistent with the broad consensus.
This could lead the market to new highs, but it will take more conviction from the analyst community. The market should follow if they come out reiterating current above-consensus targets or even raising them.
If not, the analysts may cap gains in the market until later in the year. If they lower their targets, shares of MSFT will fall further. In this scenario, Microsoft will return to more attractive levels, presenting a better bargain and yield.
Microsoft stock trades at 32X earnings, consistent with other mega-tech like Apple (NASDAQ: AAPL), but it only pays about 0.77% in yield. Investors looking for growth may be stymied by the valuation, which is no attraction for income investors.
The bottom line is that Microsoft’s stellar quarter, good as it was, was nothing more than what the market was secretly hoping for, and the guidance might not be enough to keep the bulls running.
Microsoft Has Solid Quarter Powered By AI
Microsoft had an outstanding quarter with revenue of $56.2 billion, up 8.3% compared to last year. The gains were driven by strength in most segments and outperformed the Marketbeat.com consensus estimate by $0.710 billion or 130 basis points.
Intelligent Cloud was the strongest performing segment, with a gain of 15% underpinned by a 26% increase in Azure Cloud. Product and Business Processes grew by 10% while More Personal Computing fell by 4.0%.
The margin news is also good, with GAAP earnings outpacing the top-line strength by 400 basis points. The GAAP earnings were reported at $2.69 or up 20% YOY and 540 bps better than expected. The factor weighing on the market most heavily is guidance. The company is guiding for systemwide growth and strength in AI and cloud, but nothing more than was expected.
The news failed to inspire any analyst commentary in the first 12 hours after the report, suggesting they are rethinking their targets. If the good news were actually "good," the analysts would be gushing.
An Institutional Headwind For MSFT Share Prices
The institutions own a lot of Microsoft, about 73%, so they are a force to be reckoned with. They’ve been buying on balance for the last year at a pace of more than 2:1, but a shift in the activity suggests a top could be in play. Institutional activity spiked in Q1 when shares were confirming a bottom at a long-term low, and it has slacked off since.
The Q3 activity is bearish on balance and suggests profit-taking has begun within the group. If this continues, MSFT shares will have difficulty moving higher.
The post-release price action is not favorable to higher share prices. The market is down 3.5% in premarket action and could move lower. The correction could take the stock to $320 or lower if the market does not regain traction soon. That is consistent with the long-term EMA. MSFT could be in for a much bigger decline if that fails as support.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft stock trades at 32X earnings, consistent with other mega-tech like Apple (NASDAQ: AAPL), but it only pays about 0.77% in yield. Thirty-five analysts have Microsoft pegged at a consensus of Moderate Buy with a price target trending strongly higher. The bottom line is that Microsoft’s stellar quarter, good as it was, was nothing more than what the market was secretly hoping for, and the guidance might not be enough to keep the bulls running.
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Microsoft stock trades at 32X earnings, consistent with other mega-tech like Apple (NASDAQ: AAPL), but it only pays about 0.77% in yield. Microsoft (NASDAQ: MSFT) had an outstanding quarter, but it was not enough to spur the market to rally. The most recent targets are well above the current price action, consistent with the broad consensus.
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Microsoft stock trades at 32X earnings, consistent with other mega-tech like Apple (NASDAQ: AAPL), but it only pays about 0.77% in yield. Microsoft (NASDAQ: MSFT) had an outstanding quarter, but it was not enough to spur the market to rally. The takeaway from the post-release action is that AI is priced into the market, and the stock may not reach new highs this year.
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Microsoft stock trades at 32X earnings, consistent with other mega-tech like Apple (NASDAQ: AAPL), but it only pays about 0.77% in yield. The takeaway from the post-release action is that AI is priced into the market, and the stock may not reach new highs this year. If not, the analysts may cap gains in the market until later in the year.
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14692.0
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2023-07-26 00:00:00 UTC
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After Hours Most Active for Jul 26, 2023 : META, TLGA, AMZN, AAPL, DBX, GOOG, XOM, BAC, DIS, SQQQ, BOND, VZ
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jul-26-2023-%3A-meta-tlga-amzn-aapl-dbx-goog-xom-bac-dis-sqqq
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nan
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The NASDAQ 100 After Hours Indicator is up 24.78 to 15,524.05. The total After hours volume is currently 82,290,730 shares traded.
The following are the most active stocks for the after hours session:
Meta Platforms, Inc. (META) is +12.96 at $311.53, with 7,479,649 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $2.87. As reported by Zacks, the current mean recommendation for META is in the "buy range".
TLG Acquisition One Corp. (TLGA) is +3.29 at $10.63, with 6,395,022 shares traded., following a 52-week high recorded in today's regular session.
Amazon.com, Inc. (AMZN) is unchanged at $128.15, with 3,537,205 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Apple Inc. (AAPL) is +0.03 at $194.53, with 2,759,145 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.2. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Dropbox, Inc. (DBX) is unchanged at $26.72, with 2,605,579 shares traded. As reported by Zacks, the current mean recommendation for DBX is in the "buy range".
Alphabet Inc. (GOOG) is +0.18 at $129.84, with 2,342,063 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 $1.34. , following a 52-week high recorded in today's regular session.
Exxon Mobil Corporation (XOM) is unchanged at $105.09, with 2,095,152 shares traded.XOM is scheduled to provide an earnings report on 7/28/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 2.04 per share, which represents a 414 percent increase over the EPS one Year Ago
Bank of America Corporation (BAC) is unchanged at $32.41, with 1,906,060 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 92.6% of the target price of $35.
Walt Disney Company (The) (DIS) is -0.01 at $85.85, with 1,866,002 shares traded. As reported by Zacks, the current mean recommendation for DIS is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is -0.09 at $17.67, with 1,720,870 shares traded. This represents a 7.88% increase from its 52 Week Low.
PIMCO Active Bond Exchange-Traded Fund Exchange-Traded Fund (BOND) is +0.02 at $91.62, with 1,668,277 shares traded. This represents a 5.79% increase from its 52 Week Low.
Verizon Communications Inc. (VZ) is +0.01 at $34.35, with 1,613,484 shares traded. VZ's current last sale is 82.77% of the target price of $41.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.03 at $194.53, with 2,759,145 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. Apple Inc. (AAPL) is +0.03 at $194.53, with 2,759,145 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 +0.03 at $194.53, with 2,759,145 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Apple Inc. (AAPL) is +0.03 at $194.53, with 2,759,145 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session:
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14693.0
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2023-07-26 00:00:00 UTC
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3 "Hedge Fund Hotels" Pulling into Support
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AAPL
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https://www.nasdaq.com/articles/3-hedge-fund-hotels-pulling-into-support
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nan
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nan
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The Retail Investor Dilemma
At any given moment, retail investors can instantaneously enter and exit any stock out of the thousands that are publicly traded. Because of the internet, commission-free trading, and more information accessible than ever in human history, small, individual investors are empowered more than ever before. However, the positives mentioned above also come with a caveat. With so much power at their fingertips, retail investors often fall victim to psychological errors, overtrading, and paralysis by analysis.
A Solution: Seek Institutional Quality Stocks
The first step to fighting the “retail investor dilemma” described above is to gravitate toward institutional quality stocks – that is stocks that mutual funds, pension funds, and other large investment firms favor. There are 3 main reasons retail investors should select institutional quality stocks, including:
High Liquidity, Low Beta
All else equal being equal, institutional quality stocks are much easier to hold onto and trade smoother than illiquid. For example, an illiquid stock trading 50,000 shares daily can tank on bad news and be difficult to exit if just a few mid-size investors jump ship. Conversely, a liquid stock like Apple (AAPL), which trades close to 100 million shares a day on average, can absorb such “tape bombs.” In fact, AAPL has a beta of 1.28, meaning that based on its historical volatility it is only 28% more volatile than the S&P 500 Index.
Image Source: Zacks Investment Research
Due Diligence
One of the key benefits of being an institutional investor is that mutual funds have large research teams, the best platforms, and some of the brightest minds. In other words, if an investor like Warren Buffet owns a stock, you can bet he has done his research. Using Apple as an example once more, the tech juggernaut has beaten earnings expectations in 20 of the past 21 quarters.
Image Source: Zacks Investment Research
Time Horizon
While institutions have an advantage in research, retail investors have the advantage of flexibility and execution. It can take months, and in some instances, years for a large institution to build a position. On the other hand, retail investors can purchase all the shares they desire in a single day and piggyback on the institutional catalyst (retail investors can also exit rapidly if things go wrong). Remember, large investors cannot hide – their accumulation footprints can be observed by examining a price and volume chart.
3 Institutional-Quality Stocks Pulling Back
Palo Alto Networks (PANW)
Zacks Rank #1 (Strong Buy) stock PANW is a leader in the cyber-security space. The company benefits from increased adoption in its next-generation security platforms as the rise in remote work spurs demand for more robust security. PANW has the ingredients of an institutional leader. Last quarter’s earnings rose 83% year-over-year, it is part of a top 25% ranked industry, and analysts anticipate robust double-digit earnings growth for the remainder of 2023.
Image Source: Zacks Investment Research
Microsoft (MSFT)
Wednesday, shares of Microsoft retreated after the company reported fourth-quarter fiscal 2023 earnings that improved 20.6% year-over-year and beat Zacks Consensus Estimates by 5.91%. Why did the stock pull back?
1. MSFT shares recovered all of the losses from the 2022 bear market and are returning to all-time highs. Often, the first test of a big resistance zone is a cause for a pullback.
2. The strong earnings were likely priced into shares – remember, even the strongest stocks pull back.
3. Management tempered AI expectations and said revenue derived from AI would be a “slow ramp up”.
Investors would be wise to treat Microsoft’s earnings retreat as normal action. The company was strong before its AI rollout, and any AI revenues next quarter, mixed with tempered expectations, should propel the stock higher into year-end. Also, MSFT is the third largest holding in Zacks Rank #1 mutual fund Fidelity Contra Fund (FCNTX). Managed by legendary investor Will Danoff, FCNTX is one of Wall Street’s largest and most successful funds.
Image Source: Zacks Investment Research
Amazon (AMZN)
Though iconic CEO Jeff Bezos is no longer at the helm, Amazon continues to benefit from solid e-commerce sales (recently recorded record “Prime Day” sales) and its dominance in the cloud space (AWS). Unlike MSFT, AMZN shares may be attractive to bargain hunters. The stock remains well off its all-time highs while its price-to-sales ratio hovers near all-time lows.
Image Source: Zacks Investment Research
Conclusion
The three stocks mentioned above are true market leaders with institutional backing. The pullbacks seen in PANW, MSFT, and AMZN should not cloud investor judgement - each has robust fundamentals and a plethora of catalysts. Furthermore, the first pullback to the 10-week moving average after a significant breakout tends to be an area where institutions step in to buy shares.
Image Source: TradingView
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Get Your Free (FCNTX): Fund 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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Conversely, a liquid stock like Apple (AAPL), which trades close to 100 million shares a day on average, can absorb such “tape bombs.” In fact, AAPL has a beta of 1.28, meaning that based on its historical volatility it is only 28% more volatile than the S&P 500 Index. 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 Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Get Your Free (FCNTX): Fund Analysis Report To read this article on Zacks.com click here. For example, an illiquid stock trading 50,000 shares daily can tank on bad news and be difficult to exit if just a few mid-size investors jump ship.
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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 Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Get Your Free (FCNTX): Fund Analysis Report To read this article on Zacks.com click here. Conversely, a liquid stock like Apple (AAPL), which trades close to 100 million shares a day on average, can absorb such “tape bombs.” In fact, AAPL has a beta of 1.28, meaning that based on its historical volatility it is only 28% more volatile than the S&P 500 Index. There are 3 main reasons retail investors should select institutional quality stocks, including: High Liquidity, Low Beta All else equal being equal, institutional quality stocks are much easier to hold onto and trade smoother than illiquid.
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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 Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Get Your Free (FCNTX): Fund Analysis Report To read this article on Zacks.com click here. Conversely, a liquid stock like Apple (AAPL), which trades close to 100 million shares a day on average, can absorb such “tape bombs.” In fact, AAPL has a beta of 1.28, meaning that based on its historical volatility it is only 28% more volatile than the S&P 500 Index. A Solution: Seek Institutional Quality Stocks The first step to fighting the “retail investor dilemma” described above is to gravitate toward institutional quality stocks – that is stocks that mutual funds, pension funds, and other large investment firms favor.
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Conversely, a liquid stock like Apple (AAPL), which trades close to 100 million shares a day on average, can absorb such “tape bombs.” In fact, AAPL has a beta of 1.28, meaning that based on its historical volatility it is only 28% more volatile than the S&P 500 Index. 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 Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Get Your Free (FCNTX): Fund Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Due Diligence One of the key benefits of being an institutional investor is that mutual funds have large research teams, the best platforms, and some of the brightest minds.
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14694.0
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2023-07-26 00:00:00 UTC
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3 Warren Buffett Stocks That Have Doubled in Value in 5 Years
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-that-have-doubled-in-value-in-5-years
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Want a quick way to find some quality investments? Take a look at Berkshire Hathaway's portfolio. It contains many solid companies that some of the world's smartest investors, including billionaire Warren Buffett, have vetted.
Three stocks that are not only solid investments in that portfolio but have also doubled in the past five years are Apple (NASDAQ: AAPL), T-Mobile US (NASDAQ: TMUS), and Mastercard (NYSE: MA). Let's see what the future portends for them now.
1. Apple
Apple is a favorite of Buffett's, and for good reason -- the company is a money-making machine with a loyal customer base. The company's revenue has soared and profits have risen at an even higher rate over the past five years, which has made the tech stock a hot buy for investors.
AAPL Revenue (Annual) data by YCharts
Over the past five years, its share price has quadrupled. At a multiple of 33 times earnings, the $3 trillion company isn't a cheap buy, but it is still growing.
This year the company unveiled its Vision Pro headset, which gives users a mixed-reality experience that can be popular in the metaverse. It uses over a dozen cameras, and at a price tag of $3,499, it may quickly contribute to Apple's top line. The company is also working on a chatbot that could rival ChatGPT, paving the way for another growth opportunity in artificial intelligence.
With so much growth potential still out there for the business, it's easy to see why Apple's stock remains a popular one for growth investors. If it's successful in these new ventures, the company's valuation should continue to climb in the years ahead, making it a good long-term buy.
2. T-Mobile
T-Mobile has been another popular stock to own over the past five years, as the un-carrier has generated returns north of 140% during that time frame. The telecom company's focus on customer satisfaction at all costs has paid off. In February, J.D. Power gave T-Mobile top marks for customer care, ranking it first among mobile network operators for an 11th consecutive year.
Its merger with Sprint in 2020 expanded the company's reach and size. In 2022, revenue of just under $80 billion was 77% higher than the $45 billion it reported in 2019. And as the companies fine-tune their operations and capitalize on synergies, profitability should improve (2022 net income of $2.6 billion was actually less than the $3.5 billion profit T-Mobile posted three years ago). T-Mobile estimates that synergies from the deal could top $7.5 billion.
An increase in profitability and continued levels of high customer satisfaction should ensure that T-Mobile remains a great buy for the foreseeable future.
3. Mastercard
As of the start of July, Mastercard stock was up over 100% over the past five years. The credit card company is a great investment to hold, because as the economy grows and consumer spending rises, so too do credit card transactions. From $17 billion in revenue in 2019, the company's top line has jumped to over $22 billion this past year, for an increase of 32%. Its free cash flow has also been strong, totaling $10 billion in 2022, which is up by a similar amount (35%) from three years earlier.
One of the credit card company's future growth opportunities could come from crypto. Mastercard has partnered with multiple exchanges to offer cards linked to cryptocurrencies. The company has been focusing on making crypto more accessible to users, and even offers crypto consulting services. With the growing popularity of Bitcoin and other digital currencies, this could help drive even more growth for Mastercard in the future.
Between crypto, economic growth, and the continued strength of e-commerce, Mastercard's top and bottom lines should only get better in the long run, making it a great buy for long-term investors.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Bitcoin, and Mastercard. The Motley Fool recommends T-Mobile US and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Three stocks that are not only solid investments in that portfolio but have also doubled in the past five years are Apple (NASDAQ: AAPL), T-Mobile US (NASDAQ: TMUS), and Mastercard (NYSE: MA). AAPL Revenue (Annual) data by YCharts Over the past five years, its share price has quadrupled. The company's revenue has soared and profits have risen at an even higher rate over the past five years, which has made the tech stock a hot buy for investors.
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Three stocks that are not only solid investments in that portfolio but have also doubled in the past five years are Apple (NASDAQ: AAPL), T-Mobile US (NASDAQ: TMUS), and Mastercard (NYSE: MA). AAPL Revenue (Annual) data by YCharts Over the past five years, its share price has quadrupled. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Bitcoin, and Mastercard.
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Three stocks that are not only solid investments in that portfolio but have also doubled in the past five years are Apple (NASDAQ: AAPL), T-Mobile US (NASDAQ: TMUS), and Mastercard (NYSE: MA). AAPL Revenue (Annual) data by YCharts Over the past five years, its share price has quadrupled. The company's revenue has soared and profits have risen at an even higher rate over the past five years, which has made the tech stock a hot buy for investors.
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Three stocks that are not only solid investments in that portfolio but have also doubled in the past five years are Apple (NASDAQ: AAPL), T-Mobile US (NASDAQ: TMUS), and Mastercard (NYSE: MA). AAPL Revenue (Annual) data by YCharts Over the past five years, its share price has quadrupled. From $17 billion in revenue in 2019, the company's top line has jumped to over $22 billion this past year, for an increase of 32%.
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14695.0
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2023-07-26 00:00:00 UTC
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Foxconn unit in talks for $200 mln components plant in India's Tamil Nadu -sources
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AAPL
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https://www.nasdaq.com/articles/foxconn-unit-in-talks-for-%24200-mln-components-plant-in-indias-tamil-nadu-sources
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By Praveen Paramasivam and Munsif Vengattil
CHENNAI, India, July 26 (Reuters) - A Foxconn 2317.TW subsidiary is in talks with India's Tamil Nadu state to invest up to $200 million to build a new plant for electronic components in the southern region, two sources with direct knowledge told Reuters on Wednesday.
Brand Cheng, CEO of Foxconn Industrial Internet (FII) 601138.SS, and other company representatives last week met Tamil Nadu officials including its chief minister to discuss investments in the state, the government said in a statement after the meeting, without elaborating.
FII, which makes communication, mobile network and cloud computing equipment, has shared a plan with state officials to initially invest $180 million to $200 million in the facility, said one of the sources.
Foxconn, the world's largest contract electronics manufacturer, and a spokesperson for Tamil Nadu's industries department declined to comment.
The sources, who declined to be named as the talks are private, did not elaborate on the plan or say if parts made at the proposed facility would be used in iPhones or another company's products.
Foxconn aims to complete the plant by 2024, with further investments expected afterward, the first source said.
A final decision has not been made, both sources said.
Foxconn is also in talks with western Gujarat stateas it eyes entry into India's semiconductor sector. Its chairman Young Liu is expected to speak at an annual semiconductor event hosted by the government this week.
Last week, Karnataka state government in south India said it held talks with FII, which had committed to invest $1.07 billion for a new plant.
(Reporting by Praveen Paramasivam in Chennai and Munsif Vengattil in Bengaluru; Additional reporting by Sarah Wu in Taipei; Editing by Aditya Kalra and Richard Chang)
((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Brand Cheng, CEO of Foxconn Industrial Internet (FII) 601138.SS, and other company representatives last week met Tamil Nadu officials including its chief minister to discuss investments in the state, the government said in a statement after the meeting, without elaborating. Foxconn, the world's largest contract electronics manufacturer, and a spokesperson for Tamil Nadu's industries department declined to comment. The sources, who declined to be named as the talks are private, did not elaborate on the plan or say if parts made at the proposed facility would be used in iPhones or another company's products.
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By Praveen Paramasivam and Munsif Vengattil CHENNAI, India, July 26 (Reuters) - A Foxconn 2317.TW subsidiary is in talks with India's Tamil Nadu state to invest up to $200 million to build a new plant for electronic components in the southern region, two sources with direct knowledge told Reuters on Wednesday. Brand Cheng, CEO of Foxconn Industrial Internet (FII) 601138.SS, and other company representatives last week met Tamil Nadu officials including its chief minister to discuss investments in the state, the government said in a statement after the meeting, without elaborating. FII, which makes communication, mobile network and cloud computing equipment, has shared a plan with state officials to initially invest $180 million to $200 million in the facility, said one of the sources.
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By Praveen Paramasivam and Munsif Vengattil CHENNAI, India, July 26 (Reuters) - A Foxconn 2317.TW subsidiary is in talks with India's Tamil Nadu state to invest up to $200 million to build a new plant for electronic components in the southern region, two sources with direct knowledge told Reuters on Wednesday. Brand Cheng, CEO of Foxconn Industrial Internet (FII) 601138.SS, and other company representatives last week met Tamil Nadu officials including its chief minister to discuss investments in the state, the government said in a statement after the meeting, without elaborating. FII, which makes communication, mobile network and cloud computing equipment, has shared a plan with state officials to initially invest $180 million to $200 million in the facility, said one of the sources.
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By Praveen Paramasivam and Munsif Vengattil CHENNAI, India, July 26 (Reuters) - A Foxconn 2317.TW subsidiary is in talks with India's Tamil Nadu state to invest up to $200 million to build a new plant for electronic components in the southern region, two sources with direct knowledge told Reuters on Wednesday. Brand Cheng, CEO of Foxconn Industrial Internet (FII) 601138.SS, and other company representatives last week met Tamil Nadu officials including its chief minister to discuss investments in the state, the government said in a statement after the meeting, without elaborating. The sources, who declined to be named as the talks are private, did not elaborate on the plan or say if parts made at the proposed facility would be used in iPhones or another company's products.
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14696.0
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2023-07-26 00:00:00 UTC
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GOOGL & MSFT Earnings: A Tale of Two Tech Titans
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https://www.nasdaq.com/articles/googl-msft-earnings%3A-a-tale-of-two-tech-titans
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It was a tale of two cities – or, in this case, a tale of two tech titans and their summer earnings reports.
Last night, Alphabet (GOOGL) absolutely crushed estimates, and GOOGL stock jumped in response. Microsoft (MSFT), on the other hand, delivered mixed results. And MSFT stock dropped as a result.
Does that mean GOOGL stock is a great buy and MSFT stock is a sell here?
Hardly.
Both are fantastic long-term investment opportunities for one very simple reason: the AI Boom.
It’s clear we are entering the Age of AI. In this era, companies will spend an arm and a leg on AI software and hardware to automate and optimize their operations. According to UBS, the market for AI technologies will grow by more than 60% per year to over $300 billion by 2027.
This is a huge growth opportunity.
And both Microsoft and Alphabet find themselves at the epicenter of the boom.
The Breakdown on Earnings
Why, then, is GOOGL soaring in response to earnings, while MSFT stock is dropping? After all, aren’t both firms benefiting from the AI Boom?
They are – but last night’s earnings reports weren’t about this boom. Instead, that’s something that will play out over the course of the next five to 10 years. Here in the summer of 2023, it isn’t yet significantly impacting earnings statements.
Rather, earnings this summer are being impacted by the macroeconomic situation – which, frankly, is improving quite dramatically right now.
Just yesterday morning, we learned that consumer confidence in the U.S. jumped to a two-year high in July.
The economy is back!
And that’s why GOOGL stock is soaring right now while MSFT stock is struggling.
Alphabet runs a much more economically sensitive business than Microsoft.
MSFT Earnings Don’t Surprise
The core of Microsoft’s business is its cloud business and, primarily, its Azure cloud infrastructure division. Enterprise spending on cloud infrastructure is pretty steadfast and resilient to macroeconomic changes. In both good times and bad, companies spend big on cloud infrastructure.
And over the past few quarters, Microsoft’s cloud business has been steady as a rock. It was steady again last quarter, too. Overall cloud revenues rose 15%, as they did in the prior quarter. The Microsoft ship is sailing smoothly ahead.
Nothing is wrong with these results. There just wasn’t any upside surprise to excite investors in yesterday’s earnings report. And given that MSFT stock ran up to a premium valuation ahead of its earnings release, it is only reasonable to see shares give back some gains in the absence of a big upside surprise.
Totally natural. Nothing to worry about.
But the story is much different with Alphabet…
GOOGL’s Upside Surprise
The core of Alphabet’s business is its ad business. Sure, Alphabet also operates a cloud business through Google Cloud. But the vast majority of the company’s revenues and profits come from its Google Search and YouTube advertising businesses.
Those businesses are exceptionally sensitive to macroeconomic changes.
When the economy hits a rough patch, consumers pull back on spending, which, in turn, leads to advertisers pulling back on their spend. Advertising is one of the most economically sensitive industries out there.
That’s why Alphabet’s Google Search and YouTube ad businesses have been struggling. The economy hit a rough patch in 2022 that extended into 2023. As a result, both businesses saw their revenue growth rates actually go negative.
But that changed this quarter.
As the economy turns a corner, Alphabet’s ad businesses are starting to turn a corner, too. Google Search revenues rose 5% last quarter. YouTube revenues rose 4%. Both businesses are growing again for the first time in a year.
That is an upside surprise.
And it was a big-enough upside surprise to drive GOOGL stock significantly higher, especially since the stock was pretty cheap going into the report.
Long story short, the rally in GOOGL stock and decline in MSFT stock is thanks to the fact that the economy is turning a corner, and Alphabet operates a more economically sensitive business than Microsoft. As a result, the former is benefitting from the economic turnaround more than the latter.
It’s that simple.
But the more important thing to remember here is that GOOGL and MSFT stock are both fantastic long-term investments because of their exposure to the AI Boom.
The Final Word on GOOGL & MSFT Earnings
It’s becoming clear that we’re in a new bull market defined by the rapid proliferation of AI technologies across the global economy.
And if you want to make big money in the stock market over the next few years, you need to buy the best AI stocks out there.
And what better AI stock to buy than the company that started this whole AI Boom – OpenAI, the creator of ChatGPT.
Since ChatGPT’s launch in November 2022, the company’s valuation has already 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 GOOGL stock…
Though I did 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 this AI “loophole.”
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post GOOGL & MSFT Earnings: A Tale of Two Tech Titans 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. And given that MSFT stock ran up to a premium valuation ahead of its earnings release, it is only reasonable to see shares give back some gains in the absence of a big upside surprise. The Final Word on GOOGL & MSFT Earnings It’s becoming clear that we’re in a new bull market defined by the rapid proliferation of AI technologies across the global economy.
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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 both good times and bad, companies spend big on cloud infrastructure. When the economy hits a rough patch, consumers pull back on spending, which, in turn, leads to advertisers pulling back on their spend.
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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. MSFT Earnings Don’t Surprise The core of Microsoft’s business is its cloud business and, primarily, its Azure cloud infrastructure division. Long story short, the rally in GOOGL stock and decline in MSFT stock is thanks to the fact that the economy is turning a corner, and Alphabet operates a more economically sensitive business than Microsoft.
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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. Both are fantastic long-term investment opportunities for one very simple reason: the AI Boom. And if you want to make big money in the stock market over the next few years, you need to buy the best AI stocks out there.
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14697.0
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2023-07-26 00:00:00 UTC
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Big Tech under pressure as Microsoft results put AI costs in spotlight
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AAPL
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https://www.nasdaq.com/articles/big-tech-under-pressure-as-microsoft-results-put-ai-costs-in-spotlight
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nan
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By Shreyashi Sanyal and Amruta Khandekar
July 26 (Reuters) - A number of U.S. big tech companies fell on Wednesday as Microsoft's results signaled how the high-stakes battle for AI supremacy will cost the tech giants that have seen their shares rally in recent months on hype around the technology.
Microsoft's MSFT.O shares fell 3.6% in early trading as the company laid out an aggressive AI-related spending plan, saying deeper investments in AI are required before gains trickle to the bottom line.
Microsoft is set to shed about $100 billion from its market capitalization if the loses hold until close of trading. Its shares had gained 46.4% up to yesterday's close.
"AI will generate a lot of revenue and earnings for such firms, but a lot of investors have been buying the rumor and now that we have earnings, they are taking profits," Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest said.
"There's still a lot of excitement around AI, but nobody quite understands what that means for the bottom line of many of these companies."
The NYSE FANG+ index .NYFANG, which houses many megacap growth names, was down 0.2%. The index has risen about 76% so far this year, driven by the frenzy around AI.
Google-parent AlphabetGOOGL.O was an outlier. Its shares rose 5.6% after the company beat expectations for second-quarter results. Alphabet looks set to add about $100 billion to its market capitalization.
The recent rally has driven up Microsoft's valuation. The stock is trading at 31 times 12-month forward earnings, compared to a PE multiple of 20 for Alphabet.
"The tone set by quarterly results over the next week will be crucial to the performance of tech stocks through the rest of the third quarter."
FED FEARS vs. AI BOOST
Stuart Cole, chief macro economist at Equiti Capital, said tech stocks tend to be fairly exposed to such sentiment around central bank policy as many of them are reliant on robust economic growth to deliver the returns they promise.
Meta Platforms Inc's META.O shares rose 1.0% after Alibaba's 9988.HK cloud computing division said it has become the first Chinese enterprise to support the company's open-source artificial intelligence (AI) model Llama.
Amazon shares dropped 1.3% after a media report said the Federal Trade Commission is finalizing an antitrust lawsuit against Amazon.
Snap Inc SNAP.N shares tumbled 18.3% after the photo messaging app-owner reported a weaker third-quarter forecast than analysts had expected on Tuesday.
The company's Snapchat app has added a new AI-powered chatbot that can answer questions to attract more users, but Shmulik notes the company has struggled to consistently grow revenue and catch up to rivals like Facebook-owner Meta.
"Snapchat is running to stay in the same place while peers enviously get back on the ad growth track," Shmulik said.
(Reporting by Shreyashi Sanyal and Amruta Khandekar in Bengaluru; Additional reporting by Lucy Raitano in London and Johann M Cherian; Editing by Amanda Cooper and Saumyadeb Chakrabarty)
((Shreyashi.Sanyal@thomsonreuters.com; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft's MSFT.O shares fell 3.6% in early trading as the company laid out an aggressive AI-related spending plan, saying deeper investments in AI are required before gains trickle to the bottom line. FED FEARS vs. AI BOOST Stuart Cole, chief macro economist at Equiti Capital, said tech stocks tend to be fairly exposed to such sentiment around central bank policy as many of them are reliant on robust economic growth to deliver the returns they promise. Meta Platforms Inc's META.O shares rose 1.0% after Alibaba's 9988.HK cloud computing division said it has become the first Chinese enterprise to support the company's open-source artificial intelligence (AI) model Llama.
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By Shreyashi Sanyal and Amruta Khandekar July 26 (Reuters) - A number of U.S. big tech companies fell on Wednesday as Microsoft's results signaled how the high-stakes battle for AI supremacy will cost the tech giants that have seen their shares rally in recent months on hype around the technology. Microsoft's MSFT.O shares fell 3.6% in early trading as the company laid out an aggressive AI-related spending plan, saying deeper investments in AI are required before gains trickle to the bottom line. (Reporting by Shreyashi Sanyal and Amruta Khandekar in Bengaluru; Additional reporting by Lucy Raitano in London and Johann M Cherian; Editing by Amanda Cooper and Saumyadeb Chakrabarty) ((Shreyashi.Sanyal@thomsonreuters.com; Twitter: https://twitter.com/s_shreyashi;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Shreyashi Sanyal and Amruta Khandekar July 26 (Reuters) - A number of U.S. big tech companies fell on Wednesday as Microsoft's results signaled how the high-stakes battle for AI supremacy will cost the tech giants that have seen their shares rally in recent months on hype around the technology. Microsoft's MSFT.O shares fell 3.6% in early trading as the company laid out an aggressive AI-related spending plan, saying deeper investments in AI are required before gains trickle to the bottom line. FED FEARS vs. AI BOOST Stuart Cole, chief macro economist at Equiti Capital, said tech stocks tend to be fairly exposed to such sentiment around central bank policy as many of them are reliant on robust economic growth to deliver the returns they promise.
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By Shreyashi Sanyal and Amruta Khandekar July 26 (Reuters) - A number of U.S. big tech companies fell on Wednesday as Microsoft's results signaled how the high-stakes battle for AI supremacy will cost the tech giants that have seen their shares rally in recent months on hype around the technology. The index has risen about 76% so far this year, driven by the frenzy around AI. Its shares rose 5.6% after the company beat expectations for second-quarter results.
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2023-07-26 00:00:00 UTC
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Better Artificial Intelligence Stock: Apple vs. Amazon
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AAPL
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https://www.nasdaq.com/articles/better-artificial-intelligence-stock%3A-apple-vs.-amazon
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If you're interested in the stock market, chances are you've heard about the current boom in artificial intelligence (AI). Many companies active in the high-growth sector have enjoyed monster rallies this year as the AI market is projected to expand at a compound annual rate of 37% through 2030. As a result, it's not a bad idea to add an AI stock to your list of holdings. And with so many companies entering the market, there are plenty to choose from.
As two of the biggest names in tech, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options with increasing potential in AI. These companies are gradually expanding their positions in the industry and could profit significantly from its development. So let's assess whether Apple or Amazon is the better AI stock.
Apple: Could soon rival ChatGPT
Apple has largely avoided the AI buzz this year. However, a recent Bloomberg report revealed the company has been quietly developing a rival to OpenAI's ChatGPT using a homegrown framework for building language models. Engineers have reportedly nicknamed it Apple GPT, with the company working on various AI tools to eventually release to consumers.
The tech giant has gradually expanded its AI offerings this year, focusing on software upgrades in its product lineup. At its Worldwide Developer Conference in June, Apple announced a revamp of the iPhone's autocorrect that uses an AI language model to learn a user's texting style. Meanwhile, Air Pod Pros will offer an AI-enabled feature that automatically turns off noise cancellation when wearers begin a conversation.
Apple holds a leading market share in smartphones, tablets, headphones, and smartwatches. Its substantial dominance in tech could attract millions of users to its AI services in the future, making its stock a compelling way to back the quickly growing sector.
Amazon: Expanding in AI software and hardware
Amazon seemingly started the year at a disadvantage, with its biggest competitor, Microsoft, getting a head start in AI cloud services as the biggest investor of OpenAI. However, the retail giant has spent the last six months making significant strides in the market.
In June, Amazon added two new AI tools to its cloud platform, Amazon Web Services (AWS). The first is Bedrock, which allows clients to use language models to build custom chatbots and image-generation services. The second is CodeWhisperer, a code generator that makes software development more efficient.
Moreover, Amazon has become one of the only cloud companies to expand into the hardware side of AI by developing its own chips. The e-commerce company will soon take on the likes of Nvidia by launching two chips, Inferentia and Trainium, which CEO Andy Jassy says will have "much better price-performance than you'll find anywhere else."
As the home of the world's largest cloud platform with AWS, Amazon could gain an edge against competitors like Microsoft and Alphabet. Meanwhile, expanding positions in both AI software and hardware only improves its potential as its dominance could spread across multiple areas of the industry.
Is Apple or Amazon the better AI stock?
Apple and Amazon have developing positions in different areas of artificial intelligence, with one focused on upgrading its product lineup and the other on attracting cloud clients. However, both companies are steadily developing their generative AI offerings, which could bring them into direct competition.
As a result, the better option lies in which is the more reliable stock. Amazon likely faces an uphill battle with steep competitors in the cloud and chip markets, having to contend with tech giants like Microsoft and Nvidia. However, consumers have already proven their overwhelming preference for Apple products over competing devices. Consequently, Apple could have an easier time getting its AI services into the hands of the public than most companies.
Additionally, Apple's stock has risen 301% over the last five years, while Amazon's has increased by 43%. The significant difference further solidifies Apple as the more reliable option and the better artificial intelligence stock.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of July 17, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As two of the biggest names in tech, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options with increasing potential in AI. At its Worldwide Developer Conference in June, Apple announced a revamp of the iPhone's autocorrect that uses an AI language model to learn a user's texting style. Its substantial dominance in tech could attract millions of users to its AI services in the future, making its stock a compelling way to back the quickly growing sector.
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As two of the biggest names in tech, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options with increasing potential in AI. The tech giant has gradually expanded its AI offerings this year, focusing on software upgrades in its product lineup. Apple and Amazon have developing positions in different areas of artificial intelligence, with one focused on upgrading its product lineup and the other on attracting cloud clients.
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As two of the biggest names in tech, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options with increasing potential in AI. So let's assess whether Apple or Amazon is the better AI stock. Amazon: Expanding in AI software and hardware Amazon seemingly started the year at a disadvantage, with its biggest competitor, Microsoft, getting a head start in AI cloud services as the biggest investor of OpenAI.
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As two of the biggest names in tech, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options with increasing potential in AI. Moreover, Amazon has become one of the only cloud companies to expand into the hardware side of AI by developing its own chips. Is Apple or Amazon the better AI stock?
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14699.0
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2023-07-26 00:00:00 UTC
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3 Millionaire-Maker Metaverse Stocks to Buy Before the Window Closes
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AAPL
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https://www.nasdaq.com/articles/3-millionaire-maker-metaverse-stocks-to-buy-before-the-window-closes
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The rapid pace of the digital world is paving the way for novel investment opportunities, with the metaverse at the forefront. This expansive virtual domain is effectively shaking up existing industries while creating fresh ones, and these stocks are a savvy choice for investors looking to secure a lucrative future.
Investors can capitalize on this digital transformation by aligning with companies at the forefront of metaverse technologies, opening avenues for substantial gains. Given the myriad of potential applications, it’s no wonder the metaverse has attracted significant investments from tech giants and corporations alike. These developments point to the metaverse as a hotbed for long-term growth, prompting investors to wager on the best metaverse stocks to buy. While the initial shine of metaverse stocks may have dulled, despite a more cautious sentiment, there may still be metaverse stocks with high returns.
Nvidia (NVDA)
Source: Poetra.RH / Shutterstock.com
With its innovative technology and market prominence, Nvidia (NASDAQ:NVDA) has become a major force in the metaverse realm. Its pioneering GPUs facilitate the development of attractive virtual realities, and its cutting-edge AI tech builds on immersive virtual interactions. What sets Nvidia apart is its incredible Omniverse platform, a groundbreaking sandbox for metaverse applications, facilitating seamless collaboration among creatives.
Jensen Huang, Nvidia’s chief executive officer (CEO), envisions the Omniverse as a unified data platform linked to the internet, fostering innovation across enterprises. This proposition sets the stage for businesses navigating the 3D data maze. One prominent example is Amazon (NASDAQ:AMZN) leveraging Omniverse to craft AI-empowered digital twins of its warehouses, thereby enhancing design, workflows and robotic solutions.
Nvidia’s pioneering technology and strategic initiatives underscore its potential as a key player in the emerging metaverse landscape. For investors looking to bank on AI and the metaverse, Nvidia is certainly one to keep an eye on for the long haul.
Roblox (RBLX)
Source: Miguel Lagoa / Shutterstock.com
Roblox (NYSE:RBLX) stands out in the sphere of metaverse investments; its distinction lies in its functionality as a robust content creation tool, empowering users to build, share and effectively monetize their games. However, contrary to popular belief, Roblox is not merely a game; it’s a full-fledged development kit with a broad user base that spans from children to adults.
After its post-pandemic wobble, Roblox is picking up the pace again. The company’s recent advertising campaigns have stirred positive sentiment among analysts, leading to an upgrade in the stock. Moreover, its first-quarter results echo this upward trend, with sales up by a remarkable 22% year-over-year, reaching $655.3 million. Additionally, Bookings have witnessed a similar rise, up 23% year-over-year to $773.8 million. Plus, Roblox had a 22% bump in daily active users to 66.1 million and a remarkable 23% year-over-year jump in user engagement hours to 14.5 billion.
Unity Software (U)
Source: viewimage / Shutterstock.com
Unity Software (NYSE:U) is a crucial piece of the metaverse puzzle, commanding about 50% of the global game engine market. Its widespread adoption enables the company to effectively build vast, diverse content capable of crafting immersive 3D experiences across platforms.
Currently, Unity basks in the glow of multiple growth catalysts. A key highlight is its powerful earnings performance, beating sales expectations and effectively revising its full-year revenue forecast upwards. Moreover, the platform’s collaboration with Apple (NASDAQ:AAPL) to bring 3D apps to its headset marks another major milestone.
Furthermore, Unity’s unveiling of an AI software marketplace has been a beacon for its success. With the ability to choose from AI software capable of generating game dialogue, textures or graphics from companies such as Polyhive, Unity’s users can elevate their game creation undertakings, pushing the metaverse concept further.
On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post 3 Millionaire-Maker Metaverse Stocks to Buy Before the Window Closes 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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Moreover, the platform’s collaboration with Apple (NASDAQ:AAPL) to bring 3D apps to its headset marks another major milestone. This expansive virtual domain is effectively shaking up existing industries while creating fresh ones, and these stocks are a savvy choice for investors looking to secure a lucrative future. Jensen Huang, Nvidia’s chief executive officer (CEO), envisions the Omniverse as a unified data platform linked to the internet, fostering innovation across enterprises.
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Moreover, the platform’s collaboration with Apple (NASDAQ:AAPL) to bring 3D apps to its headset marks another major milestone. Nvidia (NVDA) Source: Poetra.RH / Shutterstock.com With its innovative technology and market prominence, Nvidia (NASDAQ:NVDA) has become a major force in the metaverse realm. Roblox (RBLX) Source: Miguel Lagoa / Shutterstock.com Roblox (NYSE:RBLX) stands out in the sphere of metaverse investments; its distinction lies in its functionality as a robust content creation tool, empowering users to build, share and effectively monetize their games.
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Moreover, the platform’s collaboration with Apple (NASDAQ:AAPL) to bring 3D apps to its headset marks another major milestone. These developments point to the metaverse as a hotbed for long-term growth, prompting investors to wager on the best metaverse stocks to buy. While the initial shine of metaverse stocks may have dulled, despite a more cautious sentiment, there may still be metaverse stocks with high returns.
|
Moreover, the platform’s collaboration with Apple (NASDAQ:AAPL) to bring 3D apps to its headset marks another major milestone. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The rapid pace of the digital world is paving the way for novel investment opportunities, with the metaverse at the forefront. Nvidia (NVDA) Source: Poetra.RH / Shutterstock.com With its innovative technology and market prominence, Nvidia (NASDAQ:NVDA) has become a major force in the metaverse realm.
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