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14700.0
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2023-07-26 00:00:00 UTC
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3 No-Brainer Warren Buffett Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-no-brainer-warren-buffett-stocks-to-buy-right-now-7
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nan
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nan
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Each quarter, Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is required to release a 13F. This filing with the Securities and Exchange Commission (SEC) reveals any purchases or sales Buffett made in the Berkshire stock portfolio during the previous quarter.
Buffett's 13F filings are closely watched, as investors want to know what the Oracle of Omaha has been up to. It's important for investors not to make any trading decisions based on what Berkshire did, but the filing is interesting nonetheless.
Looking at the most recent 13F, there are three companies in particular that I think are no-brainer buys right now -- and it's not simply because Buffett owns them. Let's dig in and see why.
1. Bank of America
When it recently reported its Q2 2023 results, Bank of America (NYSE: BAC) demonstrated once again why it's one of the leading banks in the world and a favorite of Warren Buffett. Revenue increased by 11% to $25 billion, while earnings per share grew by 21% to $0.88. Both of these results beat analysts' expectations.
Bank of America's strength is in its diversified banking and investment offerings, particularly for consumers. The company added approximately 157,000 new checking accounts in Q2, marking the 18th consecutive quarter of growth in this category and demonstrating the power of the Bank of America brand in attracting new customers.
As interest rates have increased, Bank of America has benefited. Because it pays relatively low interest to its customers, it can make more money on its investments as rates rise without the pressure to raise the interest it pays its customers. In Q2 2023, Bank of America's net interest income grew by 14%. This makes Bank of America stock particularly attractive in higher-interest rate environments.
2. Apple
The big news with Apple (NASDAQ: AAPL) recently has been the announcement of its new mixed-reality device, the Vision Pro. This product has been rumored for years and marks Apple's first step into the world of immersive computing, mixing the real world with the digital world through the use of a pair of goggles.
Buffett has owned Apple stock for years, and he has publicly praised the company and its CEO Steve Jobs on several occasions. The purchase may have been surprising at the time, but it makes sense when you think about Buffett's preference for strong brands, reliable earnings, and competent management.
Apple also has another quality that Buffett enjoys as an investor in the company, and that's the return of capital to shareholders. Over the last 10 years, Apple has repurchased its own shares at an impressive pace, reducing its shares outstanding by more than 37% over that time frame.
In fact, in his 2021 annual letter to shareholders, Buffett explained how powerful share repurchases have been to Berkshire Hathaway's investment portfolio. Buffett stated that Apple's ownership increased by $160 million from share repurchases alone.
3. Johnson & Johnson
Another company in Buffett's portfolio with strong brand recognition is healthcare giant Johnson & Johnson (NYSE: JNJ). Ironically, the consumer health part of the business -- where products like Band-Aids helped J&J become a household name -- is no longer part of the company. Recently, Johnson & Johnson spun off its consumer business as a stand-alone company called Kenvue.
Even without its iconic consumer health brands, J&J is still worthy of Buffett's portfolio. What remains after the spinoff are very successful medical device and pharmaceutical segments. In Q2 2023, these segments posted year-over-year revenue growth of 13% and 3%, respectively. These strong results led management to increase its full-year guidance for both revenue and earnings per share.
Of particular interest to investors should be J&J's pipeline of pharmaceuticals. The company has 10 products in phase 3 trials and another six in phase 2. The progress being made in this pipeline has management guiding for $57 billion in pharmaceutical sales in 2025. This is important because as older products lose their exclusivity patents, the company will need new products to come to market and replace potential lost revenue.
10 stocks we like better than Bank of America
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 Bank of America 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. Jeff Santoro has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple The big news with Apple (NASDAQ: AAPL) recently has been the announcement of its new mixed-reality device, the Vision Pro. This filing with the Securities and Exchange Commission (SEC) reveals any purchases or sales Buffett made in the Berkshire stock portfolio during the previous quarter. The company added approximately 157,000 new checking accounts in Q2, marking the 18th consecutive quarter of growth in this category and demonstrating the power of the Bank of America brand in attracting new customers.
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Apple The big news with Apple (NASDAQ: AAPL) recently has been the announcement of its new mixed-reality device, the Vision Pro. Each quarter, Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is required to release a 13F. In fact, in his 2021 annual letter to shareholders, Buffett explained how powerful share repurchases have been to Berkshire Hathaway's investment portfolio.
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Apple The big news with Apple (NASDAQ: AAPL) recently has been the announcement of its new mixed-reality device, the Vision Pro. Bank of America When it recently reported its Q2 2023 results, Bank of America (NYSE: BAC) demonstrated once again why it's one of the leading banks in the world and a favorite of Warren Buffett. Johnson & Johnson Another company in Buffett's portfolio with strong brand recognition is healthcare giant Johnson & Johnson (NYSE: JNJ).
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Apple The big news with Apple (NASDAQ: AAPL) recently has been the announcement of its new mixed-reality device, the Vision Pro. Bank of America When it recently reported its Q2 2023 results, Bank of America (NYSE: BAC) demonstrated once again why it's one of the leading banks in the world and a favorite of Warren Buffett. Of particular interest to investors should be J&J's pipeline of pharmaceuticals.
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14701.0
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2023-07-26 00:00:00 UTC
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Why Spotify's Price Increases Are Great News
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AAPL
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https://www.nasdaq.com/articles/why-spotifys-price-increases-are-great-news
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nan
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nan
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Spotify's (NYSE: SPOT) prices haven't changed for years, but this week, management said there would be a small increase coming later this year. In this video, Travis Hoium quantifies how much of that increase will make its way to Spotify's bottom line.
*Stock prices used were end-of-day prices of July 24, 2023. The video was published on July 26, 2023.
10 stocks we like better than Spotify Technology
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 Spotify Technology 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
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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In this video, Travis Hoium quantifies how much of that increase will make its way to Spotify's bottom line. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. 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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14702.0
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2023-07-26 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Apple, Adidas and Anheuser-Busch
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-apple-adidas-and-anheuser-busch
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nan
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nan
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For Immediate Release
Chicago, IL – July 26, 2023 – Today, Zacks Investment Ideas feature highlights the Apple AAPL, Adidas ADDYY and Anheuser-Busch InBev BUD.
Messi to Miami: 3 Stocks to Benefit
Lionel Messi: The GOAT
Football is the world’s most popular sport, or as Americans call it, soccer. At the top of the sport is Lionel Messi, an Argentine soccer player widely regarded as one of the greatest soccer players of all time. Just how good is Messi? Messi has won a record seven “Ballon d’Or” (Golden Ball) awards – soccer’s version of Player of the Year.
During his time in the Champions League, Messi earned a record number of trophies, including four titles with the renowned soccer club Barcelona. To top it all off, as captain of the 2022 Argentine national team, Lionel Messi scored seven goals and steered the team to its first World Cup victory since 1986.
Shock Move to Miami
After playing for another premier soccer club, (Paris Saint Germain (PSG)), Messi had to decide on his next destination as his contract ran out. In a shock decision, Messi declined a record $500 million offer from Saudi Club Al Hilal to accept an offer from Major League Soccer’s (MLS) Inter Miami.
The decision was a shock for two reasons. First, MLS does not have nearly the same prestige as Messi’s previous teams, such as Barcelona. Second, Inter Miami was the worst team in the MLS last season. Regardless, the decision from the world’s most sought-after superstar has drastic business implications.
3 Winners
Apple
Messi’s deal with the MLS is yet another win for Apple. (As if AAPL needed another win). Last year, Apple inked a 10-year deal to broadcast all regular season matches via its Apple TV platform (this included Inter Miami matches). In fact, Apple helped to coerce the Argentine legend by offering him a slice of the subscription revenues – which will undoubtedly spike to record highs with the addition of Messi.
While the short-term implications are likely to be a drop in the bucket for a $3 trillion company, we will see if it gets mentioned on the upcoming AAPLearnings callon August 3rd. Regardless of the impact, AAPL’s positive Zacks Earnings ESP (Expected Surprise Prediction) score suggests the company is likely to surprise to the upside when it reports.
Adidas
Last year, Adidas severed ties with Kanye West after the famous rapper’s antisemitic comments went viral. Though the stock has stabilized since the initial hit, Adidas is still recovering from the more than $500 million expected hit to its operating profit.
However, the German athletic apparel and footwear company is seeking to fill the void. Though Adidas has sponsored Messi for years, Adidas made sure to lock him in by offering the star a slice of revenue from sales of Messi apparel. The move to Miami will likely trigger a whole new market of Messi fans and of Inter Miami (Adidas) apparel sales. Analysts agree. ADDYY earns a best possible Zacks Rank #1 (Strong Buy) rating, and four analysts have raised estimates for the current quarter in the past 60 days.
Anheuser-Busch InBev
Adidas is not the only company suffering from a public relations nightmare. Inbev, the parent company of Bud Light, suffered a boycott from its client base and a drop in sales after the company hired transgender TikTok personality Dylan Mulvaney to promote Bud Light during March Madness.
Though the Belgian beer juggernaut is still weathering the storm from the boycott, Messi’s longtime sponsor may benefit from the big move and help to smooth sales. Furthermore, from a valuation perspective, the boycott-induced drop in the stock has made it attractive again. BUD’s price-to-earnings ratio is at its lowest level since the COVID-19 pandemic lows.
Bud is also shaping up from a technical perspective. The stock is retaking its 200-day moving average after slicing below the level last month.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Adidas AG (ADDYY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – July 26, 2023 – Today, Zacks Investment Ideas feature highlights the Apple AAPL, Adidas ADDYY and Anheuser-Busch InBev BUD. (As if AAPL needed another win). While the short-term implications are likely to be a drop in the bucket for a $3 trillion company, we will see if it gets mentioned on the upcoming AAPLearnings callon August 3rd.
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For Immediate Release Chicago, IL – July 26, 2023 – Today, Zacks Investment Ideas feature highlights the Apple AAPL, Adidas ADDYY and Anheuser-Busch InBev BUD. Regardless of the impact, AAPL’s positive Zacks Earnings ESP (Expected Surprise Prediction) score suggests the company is likely to surprise to the upside when it reports. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – July 26, 2023 – Today, Zacks Investment Ideas feature highlights the Apple AAPL, Adidas ADDYY and Anheuser-Busch InBev BUD. (As if AAPL needed another win).
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For Immediate Release Chicago, IL – July 26, 2023 – Today, Zacks Investment Ideas feature highlights the Apple AAPL, Adidas ADDYY and Anheuser-Busch InBev BUD. (As if AAPL needed another win). While the short-term implications are likely to be a drop in the bucket for a $3 trillion company, we will see if it gets mentioned on the upcoming AAPLearnings callon August 3rd.
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14703.0
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2023-07-26 00:00:00 UTC
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Noteworthy Wednesday Option Activity: AMZN, ENPH, AAPL
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AAPL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-amzn-enph-aapl
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Amazon.com Inc (Symbol: AMZN), where a total volume of 500,094 contracts has been traded thus far today, a contract volume which is representative of approximately 50.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 94.6% of AMZN's average daily trading volume over the past month, of 52.9 million shares. Especially high volume was seen for the $130 strike call option expiring July 28, 2023, with 28,019 contracts trading so far today, representing approximately 2.8 million underlying shares of AMZN. Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange:
Enphase Energy Inc. (Symbol: ENPH) saw options trading volume of 33,538 contracts, representing approximately 3.4 million underlying shares or approximately 93.2% of ENPH's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $150 strike put option expiring August 04, 2023, with 3,038 contracts trading so far today, representing approximately 303,800 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $150 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) saw options trading volume of 376,568 contracts, representing approximately 37.7 million underlying shares or approximately 71.9% of AAPL's average daily trading volume over the past month, of 52.4 million shares. Especially high volume was seen for the $195 strike call option expiring July 28, 2023, with 48,718 contracts trading so far today, representing approximately 4.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange:
For the various different available expirations for AMZN options, ENPH options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Healthcare Dividend Stock List
VINP Videos
YLCO market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $195 strike call option expiring July 28, 2023, with 48,718 contracts trading so far today, representing approximately 4.9 million underlying shares of AAPL. Below is a chart showing ENPH's trailing twelve month trading history, with the $150 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 376,568 contracts, representing approximately 37.7 million underlying shares or approximately 71.9% of AAPL's average daily trading volume over the past month, of 52.4 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for AMZN options, ENPH options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing ENPH's trailing twelve month trading history, with the $150 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 376,568 contracts, representing approximately 37.7 million underlying shares or approximately 71.9% of AAPL's average daily trading volume over the past month, of 52.4 million shares. Especially high volume was seen for the $195 strike call option expiring July 28, 2023, with 48,718 contracts trading so far today, representing approximately 4.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for AMZN options, ENPH options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing ENPH's trailing twelve month trading history, with the $150 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 376,568 contracts, representing approximately 37.7 million underlying shares or approximately 71.9% of AAPL's average daily trading volume over the past month, of 52.4 million shares. Especially high volume was seen for the $195 strike call option expiring July 28, 2023, with 48,718 contracts trading so far today, representing approximately 4.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for AMZN options, ENPH options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing ENPH's trailing twelve month trading history, with the $150 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 376,568 contracts, representing approximately 37.7 million underlying shares or approximately 71.9% of AAPL's average daily trading volume over the past month, of 52.4 million shares. Especially high volume was seen for the $195 strike call option expiring July 28, 2023, with 48,718 contracts trading so far today, representing approximately 4.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for AMZN options, ENPH options, or AAPL options, visit StockOptionsChannel.com.
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14704.0
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2023-07-26 00:00:00 UTC
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POLL-Taiwan's economy seen returning to growth in Q2
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AAPL
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https://www.nasdaq.com/articles/poll-taiwans-economy-seen-returning-to-growth-in-q2
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nan
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nan
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*
For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI
*
Preliminary Q2 GDP seen at +0.8% y/y (prior qtr -2.87%)
*
Data due Friday, July 28, after 4 p.m. (0800 GMT)
TAIPEI, July 26 (Reuters) - Taiwan's export-dependent economy likely returned to growth in the second quarter thanks to resilient domestic consumption although exports remained weak, a Reuters poll showed on Wednesday.
Gross domestic product (GDP) likely expanded 0.8% in the April-June period versus a year earlier, the poll of 22 economists showed. GDP had contracted 2.87% year-on-year in the first quarter, with the economy slipping into recession.
The economists' forecasts for preliminary GDP data due on Friday varied widely from a contraction of 0.2% to growth of 2.0%.
Taiwan's exports fell more than expected in June, slumping the most in almost 14 years, with the government predicting a return to growth may not occur until November.
Second quarter exports dropped 16.9% compared with the same period last year, an improvement on the first quarter's annual contraction of 19.2%.
"Domestic consumption has not been bad," said analyst Woods Chen of Yuanta Investment Consulting.
"The decline in exports could lessen each month in the third quarter. We expect the central bank will not raise interest rates in September," he added.
The government said in May it expects full-year 2023 growth of 2.04%, its slowest pace in nearly eight years and lower than the 2.45% growth for 2022.
Bank DBS last week last week downgraded its full year GDP growth outlook for Taiwan to just 0.5% from a previous 1.6% citing poor export prospects, though upgraded its forecast for 2025 to 3.5% from 2.8%.
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 the post-COVID momentum faltering rapidly.
Taiwan is a key hub in the global technology supply chain for giants such as Apple Inc , and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) .
Taiwan's preliminary figures will be released in a statement with minimal commentary. Revised figures will be released a few weeks later, with more details and forward-looking forecasts. (Poll compiled by Veronica Khongwir and Carol Lee; Reporting by Faith Hung and Ben Blanchard; Editing by Stephen Coates) ((ben.blanchard@thomsonreuters.com;)) Keywords: TAIWAN ECONOMY/GDP (POLL)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Gross domestic product (GDP) likely expanded 0.8% in the April-June period versus a year earlier, the poll of 22 economists showed. Taiwan's exports fell more than expected in June, slumping the most in almost 14 years, with the government predicting a return to growth may not occur until November. 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 the post-COVID momentum faltering rapidly.
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI * Preliminary Q2 GDP seen at +0.8% y/y (prior qtr -2.87%) * Data due Friday, July 28, after 4 p.m. (0800 GMT) TAIPEI, July 26 (Reuters) - Taiwan's export-dependent economy likely returned to growth in the second quarter thanks to resilient domestic consumption although exports remained weak, a Reuters poll showed on Wednesday. The economists' forecasts for preliminary GDP data due on Friday varied widely from a contraction of 0.2% to growth of 2.0%. Bank DBS last week last week downgraded its full year GDP growth outlook for Taiwan to just 0.5% from a previous 1.6% citing poor export prospects, though upgraded its forecast for 2025 to 3.5% from 2.8%.
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI * Preliminary Q2 GDP seen at +0.8% y/y (prior qtr -2.87%) * Data due Friday, July 28, after 4 p.m. (0800 GMT) TAIPEI, July 26 (Reuters) - Taiwan's export-dependent economy likely returned to growth in the second quarter thanks to resilient domestic consumption although exports remained weak, a Reuters poll showed on Wednesday. Bank DBS last week last week downgraded its full year GDP growth outlook for Taiwan to just 0.5% from a previous 1.6% citing poor export prospects, though upgraded its forecast for 2025 to 3.5% from 2.8%. 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 the post-COVID momentum faltering rapidly.
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The economists' forecasts for preliminary GDP data due on Friday varied widely from a contraction of 0.2% to growth of 2.0%. Second quarter exports dropped 16.9% compared with the same period last year, an improvement on the first quarter's annual contraction of 19.2%. Revised figures will be released a few weeks later, with more details and forward-looking forecasts.
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14705.0
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2023-07-26 00:00:00 UTC
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Mark Zuckerberg Just Gave These Stocks a Boost
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AAPL
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https://www.nasdaq.com/articles/mark-zuckerberg-just-gave-these-stocks-a-boost
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nan
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nan
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When Meta Platforms (NASDAQ: META) announced that it is open-sourcing its artificial intelligence model there were some surprising winners. In this video, Motley Fool Contributor Travis Hoium highlights why Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM) are likely to benefit from the strategy.
*Stock prices used were end-of-day prices of July 20, 2023. The video was published on July 21, 2023.
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 17, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Qualcomm. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this video, Motley Fool Contributor Travis Hoium highlights why Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM) are likely to benefit from the strategy. 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 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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In this video, Motley Fool Contributor Travis Hoium highlights why Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM) are likely to benefit from the strategy. When Meta Platforms (NASDAQ: META) announced that it is open-sourcing its artificial intelligence model there were some surprising winners. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Qualcomm.
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In this video, Motley Fool Contributor Travis Hoium highlights why Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM) are likely to benefit from the strategy. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Qualcomm.
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In this video, Motley Fool Contributor Travis Hoium highlights why Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM) are likely to benefit from the strategy. The video was published on July 21, 2023. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Qualcomm.
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14706.0
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2023-07-26 00:00:00 UTC
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Want to Get Richer? 2 Top Stocks to Buy Now and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/want-to-get-richer-2-top-stocks-to-buy-now-and-hold-forever-8
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There are some stocks that you can buy with an almost guarantee that they'll provide consistent gains over the long term. The tech industry is a particularly good place to find such investment opportunities, thanks to the ever-developing nature of the sector. As a result, tech behemoths such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are attractive options, with both companies leading multiple high-growth markets.
Apple's stock has risen 301% in the last five years, as it has climbed to the top of consumer tech with the immense popularity of its products. Meanwhile, Microsoft shares aren't far behind, soaring 220% in the same period thanks to the dominance of its software offerings.
These companies have a long history of reliable stock growth and are making promising moves to expand into new areas of tech.
So, want to get richer? Here are two top stocks to buy now and hold forever.
1. Apple
By far, Apple's most successful product is the iPhone, regularly earning more than 50% of the company's revenue. Consumers have proven their preference for Apple's smartphones time and time again, most recently amid macroeconomic headwinds that brought down U.S. smartphone shipments by 17% in the first quarter of 2023.
The challenging period led Samsung's market share to stagnate at 27% and Motorola's to fall from 10% to 8%. However, Apple managed to use the iPhone's dominance to its advantage, with its market share rising from 49% to 53%.
Additionally, the iPhone has become one of the company's best tools in attracting consumers to its other devices. The tech giant's interconnected ecosystem of products makes shoppers far more likely to stick with Apple over a competitor if it is an option.
This strategy has allowed the company to achieve leading market shares in tablets, smartwatches, and headphones.
Apple's dominating position across consumer tech strengthens its prospects in nearly any market it enters, with the company most recently venturing into artificial intelligence (AI). The company is gradually adding AI-enabled software features across its product lineup, with Bloomberg reporting Apple is developing a competitor to OpenAI's ChatGPT.
The massive popularity of the iPhone and its other products could make Apple a leading driver of AI adoption by the public, allowing it to profit substantially from the high-growth sector.
A consistently rising stock that has soared 1,100% over the last 10 years, Apple is a no-brainer for those looking for a solid long-term buy.
2. Microsoft
As the home of potent brands such as Windows, Office, Xbox, and Azure, Microsoft has become the second most valuable company by market cap. The popularity of its software made its products crucial to the success of countless businesses worldwide, with the company's annual revenue rising 58% over the last five years and operating income increasing by 94%.
Microsoft's extensive financial resources allowed it to invest heavily in its business and developing markets, making the company one of the biggest names in AI.
Microsoft invested $1 billion in OpenAI in 2019, increasing that figure by $10 billion earlier this year. The partnership allowed the company to procure exclusive licenses on some of the start-up's most powerful AI models. With the new partnership, plus popular products like Office and Azure, Microsoft could have the tools to become the go-to for anyone seeking AI services.
Moreover, Microsoft is further investing in the industry by supporting Advanced Micro Devices' AI chip expansion, with the company providing financial and engineering resources.
Microsoft aims to create an alternative to Nvidia, with the idea that increased competition will reduce the cost of chips. However, the collaboration could also allow Microsoft to obtain hardware specifically designed for its AI models, giving it an edge in the market.
Microsoft shares climbed 974% in the last decade, profiting from the consistently expanding business. With the power of AI at its side, the stock is an excellent option to buy now and hold indefinitely.
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
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, 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 a result, tech behemoths such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are attractive options, with both companies leading multiple high-growth markets. Apple's dominating position across consumer tech strengthens its prospects in nearly any market it enters, with the company most recently venturing into artificial intelligence (AI). The massive popularity of the iPhone and its other products could make Apple a leading driver of AI adoption by the public, allowing it to profit substantially from the high-growth sector.
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As a result, tech behemoths such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are attractive options, with both companies leading multiple high-growth markets. Moreover, Microsoft is further investing in the industry by supporting Advanced Micro Devices' AI chip expansion, with the company providing financial and engineering resources. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, and Nvidia.
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As a result, tech behemoths such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are attractive options, with both companies leading multiple high-growth markets. Apple's dominating position across consumer tech strengthens its prospects in nearly any market it enters, with the company most recently venturing into artificial intelligence (AI). Microsoft's extensive financial resources allowed it to invest heavily in its business and developing markets, making the company one of the biggest names in AI.
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As a result, tech behemoths such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are attractive options, with both companies leading multiple high-growth markets. However, Apple managed to use the iPhone's dominance to its advantage, with its market share rising from 49% to 53%. That's right -- they think these 10 stocks are even better buys.
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14707.0
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2023-07-26 00:00:00 UTC
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What to Expect When Nasdaq-100 Rebalances
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AAPL
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https://www.nasdaq.com/articles/what-to-expect-when-nasdaq-100-rebalances
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nan
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As has been widely documented, the Nasdaq-100 Index (NDX) is heading toward a special rebalancing on Monday, July 24.
The widely followed benchmark usually rebalances once annually, in December, but special reconfiguration was needed. The magnificent seven of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Facebook parent Meta Platforms (NASDAQ: META) recently combined to command more than half the benchmark’s weight.
The rebalancing is aimed at reducing the concentration risk of actively managed funds and passive exchange traded funds, namely the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), that benchmark to NDX.
For investors concerned about this event, it’s not a cause to fret. In fact, NDX has been down this road before. In 1998, a special rebalance was needed after Microsoft alone controlled a quarter of the gauge. It happened again in 2011 when Apple commanded 20%, more than five times the allocation of the index’s second-largest component.
Implications for QQQ, QQQM
The history of unusual NDX rebalances is interesting.
“Over the next decade, that decision benefited the benchmark. (Well, almost the next decade, as my data source begins in April 1999.) It lost 40%, but Microsoft fared worse yet, losing 51%. A rough stretch, to be sure, but nonetheless the rebalance was helpful,” noted Morningstar’s John Rekenthaler.
Conversely, NDX and QQQ trailed Apple in the 10 years following the 2011 rebalance. Still, the index turned $10,000 into more than $64,000 over that span. Additionally, experienced ETF investors know that it’s common for an ETF to lag the performance of its best-performing holdings over lengthy periods.
Speaking of lengthy holding periods, as Rekenthaler pointed out, the Nasdaq-100 beat the bulk of large-cap growth funds over the past 24 years when costs are stripped out. That picture gets muddied when accounting for some high-fee active funds that follow the index. This underscores the benefits of QQQM’s annual fee of 0.15%, or $15 on a $10,000 stake. QQQ charges 0.20% per year.
NDX’s “performance illustrates one of his core beliefs: that the critical element of low-cost indexing is the first term, not the second. It is a faulty benchmark, but if it can be acquired on the cheap, it will likely outdo its investment rivals over the next 25 years, as it has done over the past quarter century,” concluded Rekenthaler.
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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The magnificent seven of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Facebook parent Meta Platforms (NASDAQ: META) recently combined to command more than half the benchmark’s weight. Speaking of lengthy holding periods, as Rekenthaler pointed out, the Nasdaq-100 beat the bulk of large-cap growth funds over the past 24 years when costs are stripped out. NDX’s “performance illustrates one of his core beliefs: that the critical element of low-cost indexing is the first term, not the second.
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The magnificent seven of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Facebook parent Meta Platforms (NASDAQ: META) recently combined to command more than half the benchmark’s weight. The rebalancing is aimed at reducing the concentration risk of actively managed funds and passive exchange traded funds, namely the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), that benchmark to NDX. Speaking of lengthy holding periods, as Rekenthaler pointed out, the Nasdaq-100 beat the bulk of large-cap growth funds over the past 24 years when costs are stripped out.
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The magnificent seven of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Facebook parent Meta Platforms (NASDAQ: META) recently combined to command more than half the benchmark’s weight. The rebalancing is aimed at reducing the concentration risk of actively managed funds and passive exchange traded funds, namely the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), that benchmark to NDX. Conversely, NDX and QQQ trailed Apple in the 10 years following the 2011 rebalance.
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The magnificent seven of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Facebook parent Meta Platforms (NASDAQ: META) recently combined to command more than half the benchmark’s weight. The widely followed benchmark usually rebalances once annually, in December, but special reconfiguration was needed. The rebalancing is aimed at reducing the concentration risk of actively managed funds and passive exchange traded funds, namely the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), that benchmark to NDX.
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14708.0
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2023-07-26 00:00:00 UTC
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Samsung unveils new foldable phones to challenge Apple's premium dominance
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AAPL
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https://www.nasdaq.com/articles/samsung-unveils-new-foldable-phones-to-challenge-apples-premium-dominance
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nan
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By Joyce Lee
SEOUL, July 26 (Reuters) - Samsung Electronics 005930.KS unveiled its latest foldable smartphones on Wednesday, keeping prices around the same level three years in a row as it seeks to challenge Apple's AAPL.O dominance in the premium market.
The world's largest smartphone maker pioneered the segment in 2019, betting that it would appeal to consumers looking for a bigger screento consume content, while its foldable displays keep the overall phone size compact.
Foldable phones remain a niche product category, carving out 5% of the global premium smartphone market, although the sector has grown rapidly from just 0.3% in 2019, according to research firm Counterpoint.
Samsung, a leader in the segment with 63% market share in the first quarter, is looking to accelerate the growth trajectory with an aggressive pricing plan and faster rollout, industry analysts said.
The company on Wednesday priced its new clamshell Galaxy Z Flip5 at $999.99, and the wide Galaxy Z Fold5 to start at $1,799.99 in the United States, the same as the launch prices of the last two years' models.
It made the folded Flip5 thinner than last year's model by improving the hinge - and enlarged the cover screen to 3.4 inches (8.64 cm), adding more capacity for interactions and an improved ability to take a selfie with the top-line main camera.
Samsung's 7.6-inch screen Fold5, lighter and thinner than last year's model, offers a bigger vapour chamber for better heat management when gaming or multitasking and a 41% thinner stylus.
Both models use Qualcomm's Snapdragon 8 Gen 2 chipsets.
The unveiling of the latest models comes weeks earlier than last year - seen by analysts as a bid to keep the limelight for longer before the next iPhone release.
"Competition with Apple's iPhone 15 series is inevitable. Consumers of foldable products are expanding from early adopters to general users, in particular... in China and Western Europe," said Jene Park, senior analyst at Counterpoint.
Because of advanced technology used for foldable displays and hinges, foldable phones are "significantly more expensive than general smartphones" to make, which can make price the biggest obstacle for a consumer, Park said.
In 2023, global foldable smartphone shipments are projected to reach 19 million units, up about 45% from 13.1 million in 2022, according to Counterpoint.
Apple had a 75% share of the premium smartphone market priced $600 or above in 2022, versus Samsung's 16%.
Samsung's new foldable phones will be available from Aug. 11 in select markets.
(Reporting by Joyce Lee; Editing by Miyoung Kim and Emelia Sithole-Matarise)
((joyce.lee@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Joyce Lee SEOUL, July 26 (Reuters) - Samsung Electronics 005930.KS unveiled its latest foldable smartphones on Wednesday, keeping prices around the same level three years in a row as it seeks to challenge Apple's AAPL.O dominance in the premium market. Foldable phones remain a niche product category, carving out 5% of the global premium smartphone market, although the sector has grown rapidly from just 0.3% in 2019, according to research firm Counterpoint. Samsung, a leader in the segment with 63% market share in the first quarter, is looking to accelerate the growth trajectory with an aggressive pricing plan and faster rollout, industry analysts said.
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By Joyce Lee SEOUL, July 26 (Reuters) - Samsung Electronics 005930.KS unveiled its latest foldable smartphones on Wednesday, keeping prices around the same level three years in a row as it seeks to challenge Apple's AAPL.O dominance in the premium market. Foldable phones remain a niche product category, carving out 5% of the global premium smartphone market, although the sector has grown rapidly from just 0.3% in 2019, according to research firm Counterpoint. Because of advanced technology used for foldable displays and hinges, foldable phones are "significantly more expensive than general smartphones" to make, which can make price the biggest obstacle for a consumer, Park said.
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By Joyce Lee SEOUL, July 26 (Reuters) - Samsung Electronics 005930.KS unveiled its latest foldable smartphones on Wednesday, keeping prices around the same level three years in a row as it seeks to challenge Apple's AAPL.O dominance in the premium market. Foldable phones remain a niche product category, carving out 5% of the global premium smartphone market, although the sector has grown rapidly from just 0.3% in 2019, according to research firm Counterpoint. Because of advanced technology used for foldable displays and hinges, foldable phones are "significantly more expensive than general smartphones" to make, which can make price the biggest obstacle for a consumer, Park said.
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By Joyce Lee SEOUL, July 26 (Reuters) - Samsung Electronics 005930.KS unveiled its latest foldable smartphones on Wednesday, keeping prices around the same level three years in a row as it seeks to challenge Apple's AAPL.O dominance in the premium market. Foldable phones remain a niche product category, carving out 5% of the global premium smartphone market, although the sector has grown rapidly from just 0.3% in 2019, according to research firm Counterpoint. Because of advanced technology used for foldable displays and hinges, foldable phones are "significantly more expensive than general smartphones" to make, which can make price the biggest obstacle for a consumer, Park said.
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14709.0
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2023-07-26 00:00:00 UTC
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Is Invesco FTSE RAFI US 1000 ETF (PRF) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-invesco-ftse-rafi-us-1000-etf-prf-a-strong-etf-right-now-8
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The Invesco FTSE RAFI US 1000 ETF (PRF) was launched on 12/19/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
PRF is managed by Invesco, and this fund has amassed over $6.28 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the FTSE RAFI US 1000 Index.
The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.39% for PRF, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.86%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For PRF, it has heaviest allocation in the Financials sector --about 19.70% of the portfolio --while Information Technology and Healthcare round out the top three.
Taking into account individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 17.87% of total assets under management.
Performance and Risk
Year-to-date, the Invesco FTSE RAFI US 1000 ETF has added roughly 9.76% so far, and it's up approximately 11.97% over the last 12 months (as of 07/26/2023). PRF has traded between $27.75 and $33.75 in this past 52-week period.
The fund has a beta of 1 and standard deviation of 16.90% for the trailing three-year period, which makes PRF a medium risk choice in this particular space. With about 1013 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $52.23 billion in assets, Vanguard Value ETF has $102.93 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The Invesco FTSE RAFI US 1000 ETF (PRF) was launched on 12/19/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). The Invesco FTSE RAFI US 1000 ETF (PRF) was launched on 12/19/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). The Invesco FTSE RAFI US 1000 ETF (PRF) was launched on 12/19/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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Taking into account individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The Invesco FTSE RAFI US 1000 ETF (PRF) was launched on 12/19/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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14710.0
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2023-07-26 00:00:00 UTC
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Toast Sets New Standard in Restaurant Management Platforms
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AAPL
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https://www.nasdaq.com/articles/toast-sets-new-standard-in-restaurant-management-platforms
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At first glance, it’s easy to mistake Toast, Inc. (NASDAQ: TOST) as a delivery application like Door Dash Inc. (NASDAQ: DASH) or an Uber Technologies Inc. (NASDAQ: UBER) Uber Eats service when placing a restaurant online order. However, it’s a complete restaurant ecosystem management platform.
The restaurant point-of-service POS platform offers an all-in-one restaurant ecosystem management platform. It’s taking the restaurant world literally by storm as it continues to grow its market penetration to 10% of the industry and is climbing.
Big Customers
Some of the largest restaurant chains in the country use the Toast platform, including the largest U.S. restaurant group Darden Restaurants Inc. (NYSE: DRI). Other well-known and popular restaurants include Bloomin’ Brands Inc. (NASDAQ: BLMN), Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) and The Cheesecake Factory Inc. (NASDAQ: CAKE). The company closed 5,500 locations in the latest quarter, surging its restaurant locations north of 85,000.
Toast Platform Features
The Toast POS platform includes customized hardware and a fully end-to-end cloud management platform. The POS system includes reporting, inventory and table management features. Its Toast bookings powered over 450,000 reservations in the latest quarter.
Toast also enables a customizable loyalty program and its online ordering platform, connected to the POS platform, to ensure streamlined tracking, order and payment processing. Payments are processed electronically through various options, including credit and debit cards, third-party processors, and Apple Inc. (NASDAQ: AAPL) Apple Pay.
The platform also includes marketing tools, including email marketing, social media and online advertising. The system offers payroll and team management solutions and integrates with various payroll management providers like ADP Inc. (NYSE: ADP) and Paychex (NASDAQ: PAYX).
Hypergrowth Continues
On May 9, 2023, Toast released its fiscal first-quarter 2023 results for March 2023. The company reported an adjusted earnings-per-share loss of 16 cents, excluding non-recurring items, versus consensus analyst estimates of a 7-cent loss, missing estimates by 9 cents. Revenues rose 53.1% year-over-year (YOY) to $819 million, beating analyst estimates of $763.11 million. Annual run rate (ARR) rose 55% to 987$ million.
Gross payment volume (GPV) rose 50% YoY to $26.7 billion. Toast added 5,500 new restaurant locations in the quarter, resulting in over 85,000 locations at the end of the quarter.
The company notes that small, medium-sized business (SMB) restaurants are a growth sweet spot for them. An example is that mid-Atlantic City tipped into a rapid growth stage, growing locations by 60% in two years, marking a 20% penetration amongst SMB restaurants.
CEO Insights
Toast CEO Chris Comparato commented, “Toast’s first quarter results marked a strong start to the year, coming in ahead of expectations thanks to the consistent execution of our core strategy: driving location growth, more deeply serving our customers across all segments of the restaurant industry, and pushing the industry forward through product innovation.”
He noted how the restaurant industry is undergoing a generational shift to cloud-based technology with Toast at the forefront. Despite uncertainty in the macro environment, customers spending at restaurants is still healthy. The company only has a 10% market share if the U.S. restaurant industry, so there's much room for growth.
Upside Guidance
Toast raised its Q2 2023 revenue guidance of $920 million to $950 million versus $903.91 million consensus analyst estimates. Adjusted EBITDA is expected to be down $10 million to break even. Toast also raised its full-year 2023 revenue guidance to $3.710 to $3.800 billion versus $3.65 billion consensus analyst estimates.
Its previous guidance was $3.57 billion to $3.66 billion. Adjusted EBITDA is expected to be down $10 million to $10 million from previous estimates of down $30 million to $10 million. On July 11, 2023, Jeffries upgraded Toast to a Buy rating with a $28 price target.
Toast Inc. analyst ratings and price targets are at MarketBeat.
Weekly Cup and Handle Attempt
The weekly candlestick chart TOST illustrates a potential cup and handle pattern. The cup lip line started to form after peaking out at the $26.04 level in February 2023, as shares fell to a low of $15.77 in March 2023.
The weekly market structure low (MSL) breakout triggered through $17.78 as shares made a rounding bottom that gained momentum, driving shares up to overshoot the cup lip line in July 2023.
However, repealing the $0.99 fee for the new version of its platform sent shares reeling by more than 16%, setting up a potential handle formation as shares tagged $21.52.
That caused the weekly relative strength index (RSI) to peak and reversed off the overbought 70-band. The company has stated that it won't have any material impact on its full-year 2023 guidance, which was raised earlier. Pullback support levels are $19.75, $18.44, $17.78 weekly MSL trigger and $16.98.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Payments are processed electronically through various options, including credit and debit cards, third-party processors, and Apple Inc. (NASDAQ: AAPL) Apple Pay. An example is that mid-Atlantic City tipped into a rapid growth stage, growing locations by 60% in two years, marking a 20% penetration amongst SMB restaurants. CEO Insights Toast CEO Chris Comparato commented, “Toast’s first quarter results marked a strong start to the year, coming in ahead of expectations thanks to the consistent execution of our core strategy: driving location growth, more deeply serving our customers across all segments of the restaurant industry, and pushing the industry forward through product innovation.” He noted how the restaurant industry is undergoing a generational shift to cloud-based technology with Toast at the forefront.
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Payments are processed electronically through various options, including credit and debit cards, third-party processors, and Apple Inc. (NASDAQ: AAPL) Apple Pay. Toast Platform Features The Toast POS platform includes customized hardware and a fully end-to-end cloud management platform. Upside Guidance Toast raised its Q2 2023 revenue guidance of $920 million to $950 million versus $903.91 million consensus analyst estimates.
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Payments are processed electronically through various options, including credit and debit cards, third-party processors, and Apple Inc. (NASDAQ: AAPL) Apple Pay. Big Customers Some of the largest restaurant chains in the country use the Toast platform, including the largest U.S. restaurant group Darden Restaurants Inc. (NYSE: DRI). CEO Insights Toast CEO Chris Comparato commented, “Toast’s first quarter results marked a strong start to the year, coming in ahead of expectations thanks to the consistent execution of our core strategy: driving location growth, more deeply serving our customers across all segments of the restaurant industry, and pushing the industry forward through product innovation.” He noted how the restaurant industry is undergoing a generational shift to cloud-based technology with Toast at the forefront.
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Payments are processed electronically through various options, including credit and debit cards, third-party processors, and Apple Inc. (NASDAQ: AAPL) Apple Pay. The company only has a 10% market share if the U.S. restaurant industry, so there's much room for growth. Upside Guidance Toast raised its Q2 2023 revenue guidance of $920 million to $950 million versus $903.91 million consensus analyst estimates.
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14711.0
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2023-07-26 00:00:00 UTC
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The Zacks Analyst Blog Highlights Spotify, Apple Music, Amazon Music, Sony and Live Nation
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-spotify-apple-music-amazon-music-sony-and-live-nation
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nan
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nan
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For Immediate Release
Chicago, IL – July 26, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Spotify SPOT, Apple Music AAPL, Amazon Music AMZN, Sony Corp. SONY and Live Nation LYV.
Here are highlights from Tuesday’s Analyst Blog:
Tune Into Stocks from the Global Music Industry for Huge Gains
In recent years, the global music industry has transformed into a thriving market. Revenues hit an extraordinary $26.2 billion in 2022, marking 9% year-over-year growth. This tempo is likely to continue, according to industry forecasts. The surge can be credited to the immense growth in streaming services, with platforms like Spotify, Apple Music and Amazon Music leading the symphony.
Key Players and Investment Opportunities
Companies like Universal Music Group (UMG), Warner Music Group (WMG) and Sony Music Entertainment rule the global recorded music industry. UMG alone made up 30% of the market in 2022. Investing in these market leaders or their parent companies — Vivendi, Access Industries, and Sony Corp. — can be a robust strategy.
The rise of music streaming has transformed the industry. As of 2022, Spotify had more than 345 million active users. Other tech giants have also entered the space, with Apple Music and Amazon Music holding significant market shares. Investing in these tech companies can offer exposure to the thriving music industry.
Plus, supplementary sectors like concert and tour promotion companies like Live Nation, music publishing entities like UMG and WMG and music tech startups are also witnessing commendable growth.
Upbeat Outlook for Global Music Industry
The share of streaming increased from 65.5% to 67% of music revenues in 2022. Subscription audio streams and ad-supported streams made up 48.3% and 18.7% share of music revenues, respectively. Performance rights accounted for 9.4% of the share. Performance rights revenues grew 8.6% in 2022, going back to the pre-pandemic levels, while income from sync grew 22.3%.
The United States, being the largest music market globally, plays a crucial role. Key drivers of this growth include the popularity of digital streaming and the resurgence of vinyl records and other physical formats.
Emerging markets offer another lucrative investment opportunity. Countries like India, China and Brazil have been witnessing a surge in demand for music content, promising lucrative returns. Global paid streaming penetration is expected to double by 2030.
Paid streaming revenues are projected to see a 10% CAGR through 2030. Music publishing revenues are expected to witness a 6% CAGR to reach $11.7 billion by 2030. Global live music bounced back 85% year over year in 2022 and topped the pre-pandemic levels. Global live music is expected to have witnessed a 4% CAGR through 2022, per the investment case offered by MUSQ Global Music Industry ETF.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
Spotify Technology (SPOT) : Free Stock Analysis Report
Sony Corporation (SONY) : 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 recently featured in the blog include: Spotify SPOT, Apple Music AAPL, Amazon Music AMZN, Sony Corp. SONY and Live Nation LYV. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets.
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Stocks recently featured in the blog include: Spotify SPOT, Apple Music AAPL, Amazon Music AMZN, Sony Corp. SONY and Live Nation LYV. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Key Players and Investment Opportunities Companies like Universal Music Group (UMG), Warner Music Group (WMG) and Sony Music Entertainment rule the global recorded music industry.
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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 Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Spotify SPOT, Apple Music AAPL, Amazon Music AMZN, Sony Corp. SONY and Live Nation LYV. Here are highlights from Tuesday’s Analyst Blog: Tune Into Stocks from the Global Music Industry for Huge Gains In recent years, the global music industry has transformed into a thriving market.
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Stocks recently featured in the blog include: Spotify SPOT, Apple Music AAPL, Amazon Music AMZN, Sony Corp. SONY and Live Nation LYV. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Tuesday’s Analyst Blog: Tune Into Stocks from the Global Music Industry for Huge Gains In recent years, the global music industry has transformed into a thriving market.
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14712.0
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2023-07-26 00:00:00 UTC
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META Earnings Today: Is Another Solid Beat in Store?
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AAPL
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https://www.nasdaq.com/articles/meta-earnings-today%3A-is-another-solid-beat-in-store
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nan
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nan
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Social media giant Meta Platforms (NASDAQ:META) is scheduled to announce its second-quarter results after the market closes on Wednesday, July 26. Expectations are high following the company’s solid performance in the first quarter. Moreover, the stellar launch of the rival Twitter app Threads has also impressed investors. Meta shares have skyrocketed over 142% year-to-date. Most analysts remain bullish on the stock and expect revenue growth to accelerate in the second quarter.
Analysts' Expectations from Meta’s Q2 Results
Meta returned to top-line growth in the first quarter after three quarters of decline in revenue due to the slowdown in digital ad spending owing to macro pressures, growing competition, and a change in Apple’s (NASDAQ:AAPL) iOS privacy policy.
Meta’s revenue grew 2.6% year-over-year to $28.6 billion in Q1. However, the first-quarter earnings per share (EPS) fell 19% to $2.20, with restructuring charges related to its streamlining efforts adversely impacting the bottom line by $0.44. Meta has slashed its workforce through multiple rounds of layoffs, calling 2023 the “year of efficiency.”
Coming to Q2 expectations, analysts anticipate EPS to grow over 18% year-over-year to $2.91. Revenue is projected to increase by almost 8% to $31.1 billion. The company had guided for Q2 revenue in the range of $29.5-$32.0 billion.
On Monday, Monness analyst Brian White reiterated a Buy rating on Meta with a price target of $275. White expects Meta’s revenue growth to accelerate in Q2 and the company to at least meet his revenue forecast of $31.26 billion and EPS estimate of $2.89. The analyst expects the company to benefit from improving advertising trends.
Additionally, White noted that while the company is focused on efficiency, it is making significant investments in AI-related initiatives and innovation.
Another Meta bull, Stifel analyst Mark Kelley, raised his price target to $336 from $280 last week and maintained a Buy rating on the stock. Ahead of Q2 earnings, Kelley modestly raised his digital advertising growth forecasts for 2023 and 2024, though he expects only “slightly better results” from ad-based companies compared to the top-line outperformance seen in the first quarter.
Technical Indicators Ahead of META’s Q2 Earnings
Heading into Q2 results, technical indicators reveal a Neutral stance on Meta Platforms. According to TipRanks’s easy-to-understand technical tool, META’s 50-Day EMA (exponential moving average) is 276.05, while its price is $291.61, making it a Buy. In contrast, META’s shorter duration EMA (20-day) signals that it is a Sell.
What is the Target Price for Meta?
Wall Street’s Strong Buy consensus rating on Meta is based on 36 Buys and three Holds. The average price target of $326.45 implies 10.9% upside from current levels.
Insights from Options Trading Activity
TipRanks now presents options activity to help investors plan their trades ahead of earnings releases. Options traders are pricing in a 9.70% move on Meta Platforms earnings. META shares have averaged a (1.16)% move in the last eight quarters. In particular, the stock rose 14% in reaction to Q1 2023 results.
The anticipated move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement.
Learn more about TipRanks’ Options tool here.
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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Analysts' Expectations from Meta’s Q2 Results Meta returned to top-line growth in the first quarter after three quarters of decline in revenue due to the slowdown in digital ad spending owing to macro pressures, growing competition, and a change in Apple’s (NASDAQ:AAPL) iOS privacy policy. Meta has slashed its workforce through multiple rounds of layoffs, calling 2023 the “year of efficiency.” Coming to Q2 expectations, analysts anticipate EPS to grow over 18% year-over-year to $2.91. Another Meta bull, Stifel analyst Mark Kelley, raised his price target to $336 from $280 last week and maintained a Buy rating on the stock.
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Analysts' Expectations from Meta’s Q2 Results Meta returned to top-line growth in the first quarter after three quarters of decline in revenue due to the slowdown in digital ad spending owing to macro pressures, growing competition, and a change in Apple’s (NASDAQ:AAPL) iOS privacy policy. Ahead of Q2 earnings, Kelley modestly raised his digital advertising growth forecasts for 2023 and 2024, though he expects only “slightly better results” from ad-based companies compared to the top-line outperformance seen in the first quarter. Technical Indicators Ahead of META’s Q2 Earnings Heading into Q2 results, technical indicators reveal a Neutral stance on Meta Platforms.
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Analysts' Expectations from Meta’s Q2 Results Meta returned to top-line growth in the first quarter after three quarters of decline in revenue due to the slowdown in digital ad spending owing to macro pressures, growing competition, and a change in Apple’s (NASDAQ:AAPL) iOS privacy policy. White expects Meta’s revenue growth to accelerate in Q2 and the company to at least meet his revenue forecast of $31.26 billion and EPS estimate of $2.89. Technical Indicators Ahead of META’s Q2 Earnings Heading into Q2 results, technical indicators reveal a Neutral stance on Meta Platforms.
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Analysts' Expectations from Meta’s Q2 Results Meta returned to top-line growth in the first quarter after three quarters of decline in revenue due to the slowdown in digital ad spending owing to macro pressures, growing competition, and a change in Apple’s (NASDAQ:AAPL) iOS privacy policy. According to TipRanks’s easy-to-understand technical tool, META’s 50-Day EMA (exponential moving average) is 276.05, while its price is $291.61, making it a Buy. Options traders are pricing in a 9.70% move on Meta Platforms earnings.
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14713.0
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2023-07-26 00:00:00 UTC
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LG Display posts 5th consecutive quarterly loss
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AAPL
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https://www.nasdaq.com/articles/lg-display-posts-5th-consecutive-quarterly-loss-0
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nan
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nan
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Adds revenue, paragraph 4
SEOUL, July 26 (Reuters) - South Korea's LG Display 034220.KS on Wednesday posted its fifth consecutive quarterly loss as weak seasonal demand for mobile display panels was compounded by continued weakness in premium TV demand in its key market Europe.
The Apple Inc AAPL.O supplier posted an 881 billion won ($689 million) operating loss for the April-June quarter versus a 488 billion won loss in the year-ago quarter.
The result was in line with a forecast of an 889 billion won loss from 16 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate. It had reduced losses from the first quarter's 1.1 trillion won.
Revenue fell 15% from year earlier to 4.7 trillion won.
Mobile display panel orders are concentrated in the second half of the year, when panels for Apple's smartphones are produced before the holiday season.
(Reporting by Joyce Lee and Ju-min Park; Editing by Tom Hogue and Muralikumar Anantharaman)
((joyce.lee@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple Inc AAPL.O supplier posted an 881 billion won ($689 million) operating loss for the April-June quarter versus a 488 billion won loss in the year-ago quarter. Adds revenue, paragraph 4 SEOUL, July 26 (Reuters) - South Korea's LG Display 034220.KS on Wednesday posted its fifth consecutive quarterly loss as weak seasonal demand for mobile display panels was compounded by continued weakness in premium TV demand in its key market Europe. (Reporting by Joyce Lee and Ju-min Park; Editing by Tom Hogue and Muralikumar Anantharaman) ((joyce.lee@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple Inc AAPL.O supplier posted an 881 billion won ($689 million) operating loss for the April-June quarter versus a 488 billion won loss in the year-ago quarter. Adds revenue, paragraph 4 SEOUL, July 26 (Reuters) - South Korea's LG Display 034220.KS on Wednesday posted its fifth consecutive quarterly loss as weak seasonal demand for mobile display panels was compounded by continued weakness in premium TV demand in its key market Europe. The result was in line with a forecast of an 889 billion won loss from 16 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate.
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The Apple Inc AAPL.O supplier posted an 881 billion won ($689 million) operating loss for the April-June quarter versus a 488 billion won loss in the year-ago quarter. Adds revenue, paragraph 4 SEOUL, July 26 (Reuters) - South Korea's LG Display 034220.KS on Wednesday posted its fifth consecutive quarterly loss as weak seasonal demand for mobile display panels was compounded by continued weakness in premium TV demand in its key market Europe. (Reporting by Joyce Lee and Ju-min Park; Editing by Tom Hogue and Muralikumar Anantharaman) ((joyce.lee@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple Inc AAPL.O supplier posted an 881 billion won ($689 million) operating loss for the April-June quarter versus a 488 billion won loss in the year-ago quarter. Adds revenue, paragraph 4 SEOUL, July 26 (Reuters) - South Korea's LG Display 034220.KS on Wednesday posted its fifth consecutive quarterly loss as weak seasonal demand for mobile display panels was compounded by continued weakness in premium TV demand in its key market Europe. It had reduced losses from the first quarter's 1.1 trillion won.
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14714.0
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2023-07-26 00:00:00 UTC
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LG Display posts 5th consecutive quarterly loss
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AAPL
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https://www.nasdaq.com/articles/lg-display-posts-5th-consecutive-quarterly-loss
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nan
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nan
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SEOUL, July 26 (Reuters) - South Korea's LG Display 034220.KS on Wednesday posted its fifth consecutive quarterly loss as poor demand for mobile display panels was compounded by continued weakness in premium TV demand in its key market Europe.
The Apple AAPL.O supplier posted an 881 billion won ($689 million) operating loss for the April-June quarter versus a 488 billion won loss a year earlier.
The result was in line with a forecast of an 889 billion won loss from 16 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate.
(Reporting by Joyce Lee and Ju-min Park; Editing by Tom Hogue)
((joyce.lee@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple AAPL.O supplier posted an 881 billion won ($689 million) operating loss for the April-June quarter versus a 488 billion won loss a year earlier. SEOUL, July 26 (Reuters) - South Korea's LG Display 034220.KS on Wednesday posted its fifth consecutive quarterly loss as poor demand for mobile display panels was compounded by continued weakness in premium TV demand in its key market Europe. (Reporting by Joyce Lee and Ju-min Park; Editing by Tom Hogue) ((joyce.lee@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple AAPL.O supplier posted an 881 billion won ($689 million) operating loss for the April-June quarter versus a 488 billion won loss a year earlier. SEOUL, July 26 (Reuters) - South Korea's LG Display 034220.KS on Wednesday posted its fifth consecutive quarterly loss as poor demand for mobile display panels was compounded by continued weakness in premium TV demand in its key market Europe. The result was in line with a forecast of an 889 billion won loss from 16 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate.
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The Apple AAPL.O supplier posted an 881 billion won ($689 million) operating loss for the April-June quarter versus a 488 billion won loss a year earlier. SEOUL, July 26 (Reuters) - South Korea's LG Display 034220.KS on Wednesday posted its fifth consecutive quarterly loss as poor demand for mobile display panels was compounded by continued weakness in premium TV demand in its key market Europe. (Reporting by Joyce Lee and Ju-min Park; Editing by Tom Hogue) ((joyce.lee@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple AAPL.O supplier posted an 881 billion won ($689 million) operating loss for the April-June quarter versus a 488 billion won loss a year earlier. SEOUL, July 26 (Reuters) - South Korea's LG Display 034220.KS on Wednesday posted its fifth consecutive quarterly loss as poor demand for mobile display panels was compounded by continued weakness in premium TV demand in its key market Europe. The result was in line with a forecast of an 889 billion won loss from 16 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate.
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14715.0
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2023-07-26 00:00:00 UTC
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AAPL Factor-Based Stock Analysis - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-warren-buffett-1
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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14716.0
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2023-07-26 00:00:00 UTC
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Will Apple Stock End the Year Above $200 Per Share?
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AAPL
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https://www.nasdaq.com/articles/will-apple-stock-end-the-year-above-%24200-per-share
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) is renowned for innovation and steady revenue growth, making Apple stock a perennial favorite, with some market experts predicting a potential $4 trillion valuation by 2025.
As Apple stock has already surged over 40% this year, investors eagerly await its future performance in 2023. While I remain long on this stock, I have to admit that this valuation (driven mainly by multiple expansion) may come with increased risks.
Let’s dive into reasons to remain optimistic, and cautious, with Apple stock right now, and explore whether this stock has what it takes to end the year above the $200 per share level (assuming no splits).
AAPL Hits $3 Trillion Milestone
Investors who want to exercise caution can hold their Apple positions without aggressively adding more. Achieving a $3 trillion market capitalization is impressive, but Apple faces challenges in maintaining rapid growth.
Sensible investors should carefully monitor Apple’s future moves. It’s crucial to remember that no stock continuously rises in a straight line, and prudent position sizing is vital for long-term success.
In 2023, Apple has risen 46%, while Nvidia (NASDAQ:NVDA) has surged 185%, becoming the first trillion-dollar chipmaker. Tesla (NASDAQ:TSLA) and Meta Platforms (NASDAQ:META) have doubled, and Microsoft added 40%.
Apple’s push above the $3 trillion milestone comes after launching an expensive augmented-reality headset, and continued excitement about potential margin expansion due to the proliferation of AI technology across the tech sector.
Why You Should Have AAPL in Your Portfolio
If you own or plan to invest in AAPL stock, consider its long-term potential for substantial gains. While short-term growth may continue modestly, or even potentially decline over the near-term, Apple’s stability and cash flow strength should not be ignored.
Morgan Stanley analyst Erik Woodring highlighted several growth catalysts for AAPL, including a potential hardware subscription service and expansion into emerging markets like India. Apple’s AR/VR device business holds the potential for significant revenue growth.
With sell-side earnings forecasts, Apple might achieve this valuation within two years. Over a 5- to 10-year period, continued double-digit earnings growth could add trillions more to the stock’s valuation.
For long-term growth investors, entering or adding to a position in AAPL stock is a favorable consideration.
AAPL bulls are gaining momentum, aiming currently for $170 resistance, a crucial level in the stock’s range. The ongoing struggle between bears and bulls could lead to a significant breakthrough, potentially pushing the price above $200 by year-end.
Is AAPL Stock Going to $200?
While Apple’s achievement of a $3 trillion market cap is noteworthy, it doesn’t significantly affect the long-term bullish outlook for the stock.
The above catalysts suggest that the stock has the potential for sustained growth. Thus, a $200 per share valuation (roughly $3.1 trillion valuation) is certainly within the realm of possibility by the end of the year.
Based on analyst projections, Apple’s share price should reach $220 by the end of 2023, $250 in 2024, and $315 in 2025.
Thus, there’s widespread belief that such a number isn’t only possible, but likely. That’s assuming that current market conditions hold, and some sort of shock doesn’t send the market lower as it did in 2022.
We’ll see. For now, I remain cautiously optimistic for holding Apple as a core position in the portfolio. As far as defensive tech is concerned, Apple is one of the best picks.
On the date of publication, Chris MacDonald has a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post Will Apple Stock End the Year Above $200 Per Share? 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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Morgan Stanley analyst Erik Woodring highlighted several growth catalysts for AAPL, including a potential hardware subscription service and expansion into emerging markets like India. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is renowned for innovation and steady revenue growth, making Apple stock a perennial favorite, with some market experts predicting a potential $4 trillion valuation by 2025. AAPL Hits $3 Trillion Milestone Investors who want to exercise caution can hold their Apple positions without aggressively adding more.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is renowned for innovation and steady revenue growth, making Apple stock a perennial favorite, with some market experts predicting a potential $4 trillion valuation by 2025. For long-term growth investors, entering or adding to a position in AAPL stock is a favorable consideration. AAPL Hits $3 Trillion Milestone Investors who want to exercise caution can hold their Apple positions without aggressively adding more.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is renowned for innovation and steady revenue growth, making Apple stock a perennial favorite, with some market experts predicting a potential $4 trillion valuation by 2025. AAPL Hits $3 Trillion Milestone Investors who want to exercise caution can hold their Apple positions without aggressively adding more. Why You Should Have AAPL in Your Portfolio If you own or plan to invest in AAPL stock, consider its long-term potential for substantial gains.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is renowned for innovation and steady revenue growth, making Apple stock a perennial favorite, with some market experts predicting a potential $4 trillion valuation by 2025. Why You Should Have AAPL in Your Portfolio If you own or plan to invest in AAPL stock, consider its long-term potential for substantial gains. Is AAPL Stock Going to $200?
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14717.0
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2023-07-25 00:00:00 UTC
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AAPL Quantitative Stock Analysis - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-warren-buffett-2
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
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Top Large-Cap Growth Stocks
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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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14718.0
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2023-07-25 00:00:00 UTC
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French antitrust watchdog issues statement of objection over Apple app tracking
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AAPL
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https://www.nasdaq.com/articles/french-antitrust-watchdog-issues-statement-of-objection-over-apple-app-tracking
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Adds background after second paragraph
PARIS, July 25 (Reuters) - France's antitrust watchdog on Tuesday said it had issued a statement of objection against Apple AAPL.O, citing concerns the U.S. technology company could have used "discriminatory and non-transparent conditions" for using user data for advertising purposes on iPhones.
The statement triggers a proper antitrust procedure during which the company will be able to express its point of view, the watchdog said.
Four French online advertising industry groups filed an antitrust complaint in 2020 against Apple over changes the company made to privacy features when it started to ask iPhone owners whether they were ready to allow apps to gather data used to define and send targeted ads.
The mechanism "gives users more control by requiring all apps to ask permission before tracking them," Apple said in an e-mailed statement, adding that it will "continue to engage constructively" with the French antitrust regulator.
The four associations - IAB France, MMAF, SRI and UDECAM - said the changes brought by Apple did not meet European Union privacy rules, which Apple denies.
The feature lead to revenue declines for publishers, industry lobby groups said.
(Reporting by Tassilo Hummel and Mathieu Rosemain; Editing by Susan Fenton and Mark Porter)
((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background after second paragraph PARIS, July 25 (Reuters) - France's antitrust watchdog on Tuesday said it had issued a statement of objection against Apple AAPL.O, citing concerns the U.S. technology company could have used "discriminatory and non-transparent conditions" for using user data for advertising purposes on iPhones. Four French online advertising industry groups filed an antitrust complaint in 2020 against Apple over changes the company made to privacy features when it started to ask iPhone owners whether they were ready to allow apps to gather data used to define and send targeted ads. The mechanism "gives users more control by requiring all apps to ask permission before tracking them," Apple said in an e-mailed statement, adding that it will "continue to engage constructively" with the French antitrust regulator.
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Adds background after second paragraph PARIS, July 25 (Reuters) - France's antitrust watchdog on Tuesday said it had issued a statement of objection against Apple AAPL.O, citing concerns the U.S. technology company could have used "discriminatory and non-transparent conditions" for using user data for advertising purposes on iPhones. Four French online advertising industry groups filed an antitrust complaint in 2020 against Apple over changes the company made to privacy features when it started to ask iPhone owners whether they were ready to allow apps to gather data used to define and send targeted ads. (Reporting by Tassilo Hummel and Mathieu Rosemain; Editing by Susan Fenton and Mark Porter) ((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background after second paragraph PARIS, July 25 (Reuters) - France's antitrust watchdog on Tuesday said it had issued a statement of objection against Apple AAPL.O, citing concerns the U.S. technology company could have used "discriminatory and non-transparent conditions" for using user data for advertising purposes on iPhones. Four French online advertising industry groups filed an antitrust complaint in 2020 against Apple over changes the company made to privacy features when it started to ask iPhone owners whether they were ready to allow apps to gather data used to define and send targeted ads. The mechanism "gives users more control by requiring all apps to ask permission before tracking them," Apple said in an e-mailed statement, adding that it will "continue to engage constructively" with the French antitrust regulator.
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Adds background after second paragraph PARIS, July 25 (Reuters) - France's antitrust watchdog on Tuesday said it had issued a statement of objection against Apple AAPL.O, citing concerns the U.S. technology company could have used "discriminatory and non-transparent conditions" for using user data for advertising purposes on iPhones. The statement triggers a proper antitrust procedure during which the company will be able to express its point of view, the watchdog said. Four French online advertising industry groups filed an antitrust complaint in 2020 against Apple over changes the company made to privacy features when it started to ask iPhone owners whether they were ready to allow apps to gather data used to define and send targeted ads.
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14719.0
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2023-07-25 00:00:00 UTC
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If You Can Only Buy 1 Long-Term Stock, It Better Be One of These Names
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AAPL
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https://www.nasdaq.com/articles/if-you-can-only-buy-1-long-term-stock-it-better-be-one-of-these-names
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The best long-term stocks are the kind of investment you can buy and forget about almost immediately. The stock market is filled with chatter about how different events might impact long-term prospects. However, companies that have solid foundations, a compelling product or service and boatloads of cash can ride out just about any storm.
If you’re looking for long-term picks, it makes sense to consider defensive industries. Most sectors tend to rise and fall alongside the economy, but there are a handful that tend to see strong demand no matter the economic conditions. A good place to start is the defence sector. This is considered an essential spend for most governments— in the United States, President Joe Biden’s 2024 defense budget request was $100 billion higher than 2023 levels.
Another good way to find solid long-term stocks to buy is looking in beaten-down sectors. Often, the long-term picks in sectors that have been abandoned are undervalued because investors have thrown the baby out with the bath water, so to speak.
The tech sector is worth visiting in this capacity. Although tech stocks have made an impressive comeback since the start of the year, they’re still well below their 2021 highs. Higher interest rates mean valuations started to look lofty in the sector. However, there are still some solid picks in the sector that are absolutely worth buying and forgetting. In this sector, its important to look for companies that have solid cashflow and plenty of experience reinventing themselves. It’s tempting to pick up a hot new stock that’s capitalizing on the next big tech trend. However, if the aim is to buy a stock and hold on to it for the long-term, larger, more established bluechips like these are the way to go.
Long-term Stocks to Buy: Microsoft (NASDAQ:MSFT)
Source: NYCStock / Shutterstock.com
Microsoft (NASDAQ:MSFT) has been around for decades, and its no stranger to reinvention, making it a strong pick among long-term stocks to buy. However, it boasts a business with several strong segments. Having siad that, when one part starts to struggle, the others can pick up the slack. Currently, it’s personal computing that’s lagging, reflecting the challenging consumer environment. However, Microsoft’s cloud business has been able to offset this weakness.
Cloud is likely to be Microsoft’s growth engine for the next few years, but CEO Satya Nadella is keen to continue building out AI as a future growth platform. For now, it remains a shiny new toy with little commercial value, but that’s likely to change as the group embeds it into its existing suite of products.
Plus, Microsoft is sitting on a net cash pile of more than $50 billion. That means the group will have no trouble maneuvering through a tricky economic climate while still returning cash to shareholders.
BAE Systems (NASDAQ:BAESY)
Source: Flying Camera / Shutterstock.com
The defence sector boasts plenty of long-term stocks to buy, and BAE Systems (NASDAQ:BAESY) is no exception. BAE makes military equipment like aircraft carriers and fighter jets, so demand for these products is relatively stable. The current environment has meant most governments are keen to increase spending in this area. BAE has been able to snag many of those dollars.
What’s nice about the defence space is revenue visibility. The contracts tend to stretch far into the future with revenue spread across many years. BAE’s order book was sitting at around £59 billion ($79 billion), and that’s only expected to rise as orders increase.
While defence is insulated, it’s not immune to ups and downs. Elevated defence budgets are a feature of geopolitical turmoil. Once resolved, we could see orders slow down. Howeer, BAE’s using the current influx of cash to build out strategic parts of the business like Cyber & Intelligence. With a dividend of close to 3% and plenty of cash running through the business to cover it, BAE is a strong pick for long-term investors.
Apple (NASDAQ:AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple (NASDAQ:AAPL) has long been at the top of investors’ list when it comes to long-term stocks to buy. The group has its finger on the pulse of what consumers want, and it has created an ecosystem that’s difficult to escape. The result has been a band of loyal followers who are consistently willing to upgrade their phones despite the premium. This was evident in the most recent results, which showed that despite lacklustre product sales, iPhone sales were at record highs. Given the handsets make up more than half of revenue, this was undoubtedly a good thing.
However, Apple’s keen to build out other parts of the business. Services are the next frontier, with the group’s streaming, music and fitness services all acting as new growth engines. Growth here is stoked by strong iPhone sales— the more people with Apple phones, the more people caught up in the group’s net.
Apple’s also got a strong balance sheet that supports the group’s commitment to returning cash to shareholders. Buybacks have been a feature for Apple investors and that’s not expected to stop anytime soon.
On the date of publication, Marie Brodbeck held BAE and Apple. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marie Brodbeck has a Finance degree from Duquesne University and has been a financial journalist for more than a decade. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN.
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It doesn’t matter if you have $500 or $5 million. Do this now.
The post If You Can Only Buy 1 Long-Term Stock, It Better Be One of These 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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Apple (NASDAQ:AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) has long been at the top of investors’ list when it comes to long-term stocks to buy. This is considered an essential spend for most governments— in the United States, President Joe Biden’s 2024 defense budget request was $100 billion higher than 2023 levels. Often, the long-term picks in sectors that have been abandoned are undervalued because investors have thrown the baby out with the bath water, so to speak.
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Apple (NASDAQ:AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) has long been at the top of investors’ list when it comes to long-term stocks to buy. Long-term Stocks to Buy: Microsoft (NASDAQ:MSFT) Source: NYCStock / Shutterstock.com Microsoft (NASDAQ:MSFT) has been around for decades, and its no stranger to reinvention, making it a strong pick among long-term stocks to buy. BAE Systems (NASDAQ:BAESY) Source: Flying Camera / Shutterstock.com The defence sector boasts plenty of long-term stocks to buy, and BAE Systems (NASDAQ:BAESY) is no exception.
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Apple (NASDAQ:AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) has long been at the top of investors’ list when it comes to long-term stocks to buy. Long-term Stocks to Buy: Microsoft (NASDAQ:MSFT) Source: NYCStock / Shutterstock.com Microsoft (NASDAQ:MSFT) has been around for decades, and its no stranger to reinvention, making it a strong pick among long-term stocks to buy. BAE Systems (NASDAQ:BAESY) Source: Flying Camera / Shutterstock.com The defence sector boasts plenty of long-term stocks to buy, and BAE Systems (NASDAQ:BAESY) is no exception.
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Apple (NASDAQ:AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) has long been at the top of investors’ list when it comes to long-term stocks to buy. A good place to start is the defence sector. Long-term Stocks to Buy: Microsoft (NASDAQ:MSFT) Source: NYCStock / Shutterstock.com Microsoft (NASDAQ:MSFT) has been around for decades, and its no stranger to reinvention, making it a strong pick among long-term stocks to buy.
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14720.0
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2023-07-25 00:00:00 UTC
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Morgan Stanley Reiterates Apple (AAPL) Overweight Recommendation
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https://www.nasdaq.com/articles/morgan-stanley-reiterates-apple-aapl-overweight-recommendation
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Fintel reports that on July 25, 2023, Morgan Stanley reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 0.27% 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 0.27% from its latest reported closing price of 192.75.
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 13 owner(s) or 0.20% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.92%, an increase of 42.71%. Total shares owned by institutions increased in the last three months by 38.18% to 14,009,876K 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 5.82% 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 2.96% 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 2.21% 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 1.81% 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 1.49% 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 25, 2023, Morgan Stanley reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.92%, an increase of 42.71%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on July 25, 2023, Morgan Stanley reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.92%, an increase of 42.71%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on July 25, 2023, Morgan Stanley reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.92%, an increase of 42.71%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on July 25, 2023, Morgan Stanley reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.92%, an increase of 42.71%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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14721.0
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2023-07-25 00:00:00 UTC
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Messi to Miami (3 Stocks to Benefit)
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AAPL
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https://www.nasdaq.com/articles/messi-to-miami-3-stocks-to-benefit
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Lionel Messi: The GOAT
Football is the world’s most popular sport, or as Americans call it, soccer. At the top of the sport is Lionel Messi, an Argentine soccer player widely regarded as one of the greatest soccer players of all time. Just how good is Messi? Messi has won a record seven “Ballon d’Or” (Golden Ball) awards – soccer’s version of Player of the Year. During his time in the Champions League, Messi earned a record number of trophies, including four titles with the renowned soccer club Barcelona. To top it all off, as captain of the 2022 Argentine national team, Lionel Messi scored seven goals and steered the team to its first World Cup victory since 1986.
Shock Move to Miami
After playing for another premier soccer club, (Paris Saint Germain (PSG)), Messi had to decide on his next destination as his contract ran out. In a shock decision, Messi declined a record $500 million offer from Saudi Club Al Hilal to accept an offer from Major League Soccer’s (MLS) Inter Miami. The decision was a shock for two reasons. First, MLS does not have nearly the same prestige as Messi’s previous teams, such as Barcelona. Second, Inter Miami was the worst team in the MLS last season. Regardless, the decision from the world’s most sought-after superstar has drastic business implications.
3 Winners
Apple (AAPL)
Messi’s deal with the MLS is yet another win for Apple. (As if AAPL needed another win). Last year, Apple inked a 10-year deal to broadcast all regular season matches via its Apple TV platform (this included Inter Miami matches). In fact, Apple helped to coerce the Argentine legend by offering him a slice of the subscription revenues – which will undoubtedly spike to record highs with the addition of Messi. While the short-term implications are likely to be a drop in the bucket for a $3 trillion company, we will see if it gets mentioned on the upcoming AAPLearnings callon August 3rd. Regardless of the impact, AAPL’s positive Zacks Earnings ESP (Expected Surprise Prediction) score suggests the company is likely to surprise to the upside when it reports.
Image Source: Zacks Investment Research
Adidas (ADDYY)
Last year, Adidas severed ties with Kanye West after the famous rapper’s antisemitic comments went viral. Though the stock has stabilized since the initial hit, Adidas is still recovering from the more than $500 million expected hit to its operating profit.
Image Source: Zacks Investment Research
However, the German athletic apparel and footwear company is seeking to fill the void. Though Adidas has sponsored Messi for years, Adidas made sure to lock him in by offering the star a slice of revenue from sales of Messi apparel. The move to Miami will likely trigger a whole new market of Messi fans and of Inter Miami (Adidas) apparel sales. Analysts agree. ADDYY earns a beast possible Zacks Rank #1 (Strong Buy) rating, and four analysts have raised estimates for the current quarter in the past 60 days.
Image Source: Zacks Investment Research
Anheuser-Busch InBev (BUD)
Adidas is not the only company suffering from a public relations nightmare. Inbev, the parent company of Bud Light, suffered a boycott from its client base and a drop in sales after the company hired transgender TikTok personality Dylan Mulvaney to promote Bud Light during March Madness.
Though the Belgian beer juggernaut is still weathering the storm from the boycott, Messi’s longtime sponsor may benefit from the big move and help to smooth sales. Furthermore, from a valuation perspective, the boycott-induced drop in the stock has made it attractive again. BUD’s price-to-earnings ratio is at its lowest level since the COVID-19 pandemic lows.
Image Source: Zacks Investment Research
Bud is also shaping up from a technical perspective. The stock is retaking its 200-day moving average after slicing below the level last month.
Image Source: TradingView
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Adidas AG (ADDYY) : 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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3 Winners Apple (AAPL) Messi’s deal with the MLS is yet another win for Apple. (As if AAPL needed another win). While the short-term implications are likely to be a drop in the bucket for a $3 trillion company, we will see if it gets mentioned on the upcoming AAPLearnings callon August 3rd.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report To read this article on Zacks.com click here. 3 Winners Apple (AAPL) Messi’s deal with the MLS is yet another win for Apple. (As if AAPL needed another win).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report To read this article on Zacks.com click here. 3 Winners Apple (AAPL) Messi’s deal with the MLS is yet another win for Apple. (As if AAPL needed another win).
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3 Winners Apple (AAPL) Messi’s deal with the MLS is yet another win for Apple. (As if AAPL needed another win). While the short-term implications are likely to be a drop in the bucket for a $3 trillion company, we will see if it gets mentioned on the upcoming AAPLearnings callon August 3rd.
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14722.0
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2023-07-25 00:00:00 UTC
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3 Stocks to Buy Before They Become Future Dividend Aristocrats
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-before-they-become-future-dividend-aristocrats
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dividend aristocrats are companies that have increased their dividends in each of the past 25 years. Companies that are achieved this status have been massive value creators. However, there are bound to be additions or changes in the list of dividend aristocrats in the coming decade. The focus of this article is to identify potential dividend aristocrat stocks that are worth buying at current levels.
The key screening criteria is picking out quality businesses with growth tailwinds. That can come in the form of innovation, industry growth and positive commodity price trend. Of course, the businesses discussed have an investment-grade balance sheet and they are already blue-chip stocks. Given the current cash flows and the growth outlook, these potential dividend aristocrat stocks are poised for robust total returns.
Let’s discuss the reasons you want to be bullish on these top stocks for dividend growth.
Apple (AAPL)
Source: askarim / Shutterstock
Apple (NASDAQ:AAPL) stock has trended higher by 54% year-to-date. At the forward price-earnings ratio of 32, the stock still looks attractive. At the same time, I believe it’s one of the top stocks for dividend growth.
Currently, AAPL stock offers an annual dividend of 96 cents, which translates into a dividend yield of 0.5%. Given the company’s cash flow potential, I expect robust dividend growth through the decade. Apple will also continue to create value through aggressive share repurchases.
To put things into perspective, Apple reported an operating cash flow of $62.5 billion for the first half of 2023. Additionally, the company has a robust cash buffer of $166 billion. Besides investing in innovation-driven growth, there is ample flexibility to boost dividends.
From a revenue perspective, the company’s services and wearable segment are potential growth drivers. The iPhone product remains the cash cow, and potential entry into electric vehicles will ensure that growth sustains. Those factors will support robust dividend upside visibility.
Albemarle Corporation (ALB)
Source: IgorGolovniov/Shutterstock.com
Albemarle Corporation (NYSE:ALB) stock looks undervalued at a forward price-earnings ratio of 10.95. The reason for ALB stock being depressed is the correction in lithium prices in 2023. However, it’s worth noting that the supply gap for lithium is likely to be significant by 2035. The long-term upside potential for lithium remains intact. The correction, therefore, presents an attractive entry opportunity.
Coming to dividends, ALB stock has an annual payout of $1.6, which implies a dividend yield of 0.76%. There are two reasons to believe that dividend growth will be robust through the decade.
First, I expect lithium to remain in an uptrend, and with a higher realized price, free cash flow is likely to swell. Further, Albemarle has guided for sales volume growth in the range of 20% to 30% annually through 2027. As the company boosts its lithium conversion capacity, revenue and cash flow growth will be robust.
Occidental Petroleum (OXY)
Source: Pavel Kapysh / Shutterstock.com
Occidental Petroleum (NYSE:OXY) stock has remained sideways in the last 12 months. With a significant correction in oil, OXY stock has remained resilient. One reason is Warren Buffett boosting his stake in the stock to 25%. Further, Occidental has continued to witness an improvement in fundamentals.
From a dividend perspective, OXY stock has an annualized dividend of 72 cents, which translates into a yield of 1.16%. I believe that the stock is poised for robust dividend growth.
There are two reasons to be bullish. First, Occidental has low break-even assets. Even with a relatively depressed oil price, the company reported free cash flow (FCF) of $1.7 billion for Q1 2023. As a matter of fact, the company believes that dividends are sustainable even at $40 per barrel of oil. Plus, the company’s FCF is likely to swell as the commodity trends higher.
Further, Occidental is focused on deleveraging. The company already commands an investment-grade rating. This is important as I expect credit metrics to improve along with overall financial flexibility. Besides the flexibility to invest in exploration programs for growth, Occidental can accelerate dividends and repurchases.
On the date of publication, Faisal Humayun 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.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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The post 3 Stocks to Buy Before They Become Future Dividend Aristocrats appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has trended higher by 54% year-to-date. Currently, AAPL stock offers an annual dividend of 96 cents, which translates into a dividend yield of 0.5%. Given the current cash flows and the growth outlook, these potential dividend aristocrat stocks are poised for robust total returns.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has trended higher by 54% year-to-date. Currently, AAPL stock offers an annual dividend of 96 cents, which translates into a dividend yield of 0.5%. Albemarle Corporation (ALB) Source: IgorGolovniov/Shutterstock.com Albemarle Corporation (NYSE:ALB) stock looks undervalued at a forward price-earnings ratio of 10.95.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has trended higher by 54% year-to-date. Currently, AAPL stock offers an annual dividend of 96 cents, which translates into a dividend yield of 0.5%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Dividend aristocrats are companies that have increased their dividends in each of the past 25 years.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has trended higher by 54% year-to-date. Currently, AAPL stock offers an annual dividend of 96 cents, which translates into a dividend yield of 0.5%. Given the company’s cash flow potential, I expect robust dividend growth through the decade.
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14723.0
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2023-07-25 00:00:00 UTC
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Will Higher Ad Revenues Aid Meta Platforms (META) Q2 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-higher-ad-revenues-aid-meta-platforms-meta-q2-earnings
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nan
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nan
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Meta Platforms’ META second-quarter 2023 results, set to be reported on Jul 26, are expected to reflect the benefits of higher advertising revenues.
Our model estimate for second-quarter advertising revenues is pegged at $28.95 billion, indicating growth of 2.8% year over year.
In the first quarter of 2023, advertising revenues (99.3% of Family of Apps revenues) increased 4.1% year over year to $28.10 billion and accounted for 98.1% of revenues.
Meta’s focus on improving ad ranking and measurement by leveraging artificial intelligence (AI) has been a key catalyst driving advertisers’ return on investment. The increasing level of automation supported by AI is expected to have driven adoption for its solutions like Advantage+ and Shopping in the to-be-reported quarter.
Moreover, an increased level of investment in automation is expected to have expanded the usage of click-to-message ads among large advertisers. Click-to-message ads are particularly popular with small advertisers in Southeast Asia and Latin America.
Meta Platforms, Inc. Revenue (TTM)
Meta Platforms, Inc. revenue-ttm | Meta Platforms, Inc. Quote
Advertising revenues in Asia-Pacific are likely to grow 1.4% in the second quarter of 2023, per our model. United States and Canada advertising revenues are expected to grow 4.5% while Rest of the World is anticipated to climb 2.5% year over year, per our estimate.
Meta’s plan to tackle ad targeting-related headwinds is expected to have positively impacted the ad-revenue growth rate in the to-be-reported quarter. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. Measuring these outcomes has also become difficult, thereby hurting its ad revenue growth.
Click here to know how Meta’s overall second-quarter performance is likely to be.
AI, ML & Metaverse Driving Prospects
Meta, which currently carries a Zacks Rank #2 (Buy), is banking its future on building the metaverse, which is a shared virtual 3D world, or multiverse created using virtual and augmented reality.
Moreover, Instagram’s growing popularity in international markets, particularly in Asia, has been helping Meta expand its user base. Much of it can be attributed to the growing popularity of short-form videos, Reels on Instagram.
Reels have been attracting Gen-Z to the platform amid competition from Snapchat, Twitter and TikTok. AI has helped in improving recommendations, which drove a more than 24% increase in time spent on Instagram.
To increase revenues, Meta has been growing video monetization, especially in short-form videos like Reels using AI and machine learning.
Meta has also shown commitment to prioritizing user safety and well-being through initiatives aimed at enhancing parental supervision, messaging privacy, and time management on its platforms. These factors are expected to have driven user base growth in second-quarter 2023.
Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger or WhatsApp) on a given day, is expected to be 3.044 billion, indicating growth of 5.7% year over year, per our model.
Family Monthly Active People or MAP is expected to increase 5.1% year over year to 3.837 billion, per our model.
What Do the Estimates Say?
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.87 per share, up a couple of cents over the past 30 days and indicating 16.67% growth from the figure reported in the year-ago quarter.
Meta expects total revenues between $29.5 billion and $32 billion for the second quarter of 2023. Unfavorable forex is expected to hurt year-over-year top-line growth by less than 1%.
The consensus estimate for second-quarter revenues is currently pegged at $30.91 billion, indicating growth of 7.26% from the figure reported in the year-ago quarter.
Upcoming Earnings to Watch For
Meta belongs to the Zacks Internet Software industry. Investors are eagerly waiting for the upcoming earnings of Fortinet FTNT and BILL Holdings BILL, two other top-ranked stocks in the same industry.
Fortinet and BILL sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
While Fortinet is set to report its quarterly earnings on Aug 3, BILL is scheduled to report on Aug 17.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Fortinet, Inc. (FTNT) : Free Stock Analysis Report
BILL Holdings, Inc. (BILL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta has also shown commitment to prioritizing user safety and well-being through initiatives aimed at enhancing parental supervision, messaging privacy, and time management on its platforms.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Our model estimate for second-quarter advertising revenues is pegged at $28.95 billion, indicating growth of 2.8% year over year.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Meta Platforms’ META second-quarter 2023 results, set to be reported on Jul 26, are expected to reflect the benefits of higher advertising revenues.
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It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Our model estimate for second-quarter advertising revenues is pegged at $28.95 billion, indicating growth of 2.8% year over year.
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14724.0
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2023-07-25 00:00:00 UTC
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Quality Dividend Growth ETF DGRW Nears $10 Billion
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AAPL
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https://www.nasdaq.com/articles/quality-dividend-growth-etf-dgrw-nears-%2410-billion
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nan
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nan
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Following its tenth birthday, the WisdomTree US Quality Dividend Growth Fund (DGRW) is nearing another milestone. The quality dividend growth ETF is rapidly approaching $10 billion in AUM. Should it cross that threshold, it would be the first time DGRW has seen its AUM rise into the tens of billions. That may invite investors and advisors to take a closer look at why its AUM may be spiking.
[caption id="attachment_528453" align="aligncenter" width="624"] DGRW is nearing $10 billion in AUM.[/caption]
DGRW’s AUM has grown due to both price influence and inflows over the last month, up $603 million on net. More than half of that, however, owes to $322.6 million in net inflows in that same time frame. So why might investors be driving flows into the strategy? For just a 28 basis point (bps) fee, DGRW has returned 5.3% over the last month, outperforming both its ETF Database Category and Factset Segment averages.
A Quality Dividend Growth ETF Approach
The quality dividend growth ETF may emphasize dividends, but not in the way investors might think. Rather than mainly leaning on adding current income, DGRW uses dividends first and foremost as an indicator. Specifically, DGRW looks for firms with dividend growth that also pass its quality screen. That sets it apart from other strategies that also emphasize dividend growth but look at past dividend performance rather than growth potential.
DGRW pairs forward-looking earnings estimates with historical return on assets (ROA) and return on equity (ROE) growth. The strategy does tend to lean towards larger names but does weight individual firms and sectors at 5% and 20% respectively.
See more: "10 Years of DGRW"
Why consider a quality dividend growth ETF right now? With the Fed closer and closer to engineering a “soft landing,” investors may be eager to get in for an optimist’s rally. That may be true, but before diving into a disruptive innovation fund, consider how DGRW offers growth exposure with a quality, dividend view. The strategy still holds mega-cap tech leaders like Apple (AAPL) but fills out its roster with firms looking forward to future dividend growth.
For more news, information, and analysis, visit the Modern Alpha 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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The strategy still holds mega-cap tech leaders like Apple (AAPL) but fills out its roster with firms looking forward to future dividend growth. For just a 28 basis point (bps) fee, DGRW has returned 5.3% over the last month, outperforming both its ETF Database Category and Factset Segment averages. That may be true, but before diving into a disruptive innovation fund, consider how DGRW offers growth exposure with a quality, dividend view.
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The strategy still holds mega-cap tech leaders like Apple (AAPL) but fills out its roster with firms looking forward to future dividend growth. Following its tenth birthday, the WisdomTree US Quality Dividend Growth Fund (DGRW) is nearing another milestone. The quality dividend growth ETF is rapidly approaching $10 billion in AUM.
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The strategy still holds mega-cap tech leaders like Apple (AAPL) but fills out its roster with firms looking forward to future dividend growth. A Quality Dividend Growth ETF Approach The quality dividend growth ETF may emphasize dividends, but not in the way investors might think. That sets it apart from other strategies that also emphasize dividend growth but look at past dividend performance rather than growth potential.
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The strategy still holds mega-cap tech leaders like Apple (AAPL) but fills out its roster with firms looking forward to future dividend growth. Following its tenth birthday, the WisdomTree US Quality Dividend Growth Fund (DGRW) is nearing another milestone. The quality dividend growth ETF is rapidly approaching $10 billion in AUM.
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14725.0
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2023-07-25 00:00:00 UTC
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How Advisors Use Direct Indexing to Attract, Retain Clients
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AAPL
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https://www.nasdaq.com/articles/how-advisors-use-direct-indexing-to-attract-retain-clients
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nan
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nan
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Thanks to the evolution of the internet and social media, today’s retail investors have access to an increasing amount of investment analytics, news, and research. Many of those resources are free. Registered investment advisors are encountering an increasingly sophisticated group of clients and prospective clients.
One way advisors can meet the demands of today’s more knowledgeable clients is with direct indexing. They can access related offerings through one of the most trusted names in the asset management industry. Vanguard, one of the largest issuers of exchange traded funds and index funds, offers Vanguard Personalized Indexing.
Fortunately for advisors, explaining the concept of a direct or personalized index to clients isn’t difficult. Put simply, a direct indexing strategy consists of owning equities in a separately managed account. That account is designed to deliver performance that is closely tied to that of a well-known stock index.
For example, an advisor offering direct indexing services can offer a client a separately managed account consisting of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and other mega-cap tech stocks to closely track the performance of the Nasdaq-100 or S&P 500 Growth indexes.
As Vanguard noted, it’s not necessary for that account to hold all of the index’s components to approximate its performance.
Advisors Embracing Direct Indexing
More asset allocators and advisors are warming to the idea of direct indexing. In a recent interview with Vanguard, David Murdock, managing partner at Bordeaux Wealth Advisors, highlighted the advantages of personalized indexing in terms of reshaping client conversations.
“Because what you can talk about here are the benefits to investing. You get to talk about tax savings, you get to talk about ways you can customize a portfolio, you get to talk about the things that they care about, which is what they keep at the end of the day. So, it brings in this qualitative discussion that we really like,” he told Vanguard.
Murdock’s point about tax savings is highly relevant. Direct indexing is a pivotal tool in helping advisors deliver tax efficiencies to affluent clients.
“Using the most advanced tax-loss harvesting technology, we can help you save time and capture potentially up to 1%-2% or more annually in after-tax alpha for your high-net-worth clients,” added Vanguard.
One or two percent in one year might not sound like much. Over time, however, that can result in clients keeping larger sums of capital for themselves.
For more news, information, and analysis, visit the Direct Indexing 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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For example, an advisor offering direct indexing services can offer a client a separately managed account consisting of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and other mega-cap tech stocks to closely track the performance of the Nasdaq-100 or S&P 500 Growth indexes. Thanks to the evolution of the internet and social media, today’s retail investors have access to an increasing amount of investment analytics, news, and research. In a recent interview with Vanguard, David Murdock, managing partner at Bordeaux Wealth Advisors, highlighted the advantages of personalized indexing in terms of reshaping client conversations.
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For example, an advisor offering direct indexing services can offer a client a separately managed account consisting of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and other mega-cap tech stocks to closely track the performance of the Nasdaq-100 or S&P 500 Growth indexes. Vanguard, one of the largest issuers of exchange traded funds and index funds, offers Vanguard Personalized Indexing. Put simply, a direct indexing strategy consists of owning equities in a separately managed account.
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For example, an advisor offering direct indexing services can offer a client a separately managed account consisting of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and other mega-cap tech stocks to closely track the performance of the Nasdaq-100 or S&P 500 Growth indexes. Vanguard, one of the largest issuers of exchange traded funds and index funds, offers Vanguard Personalized Indexing. Advisors Embracing Direct Indexing More asset allocators and advisors are warming to the idea of direct indexing.
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For example, an advisor offering direct indexing services can offer a client a separately managed account consisting of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and other mega-cap tech stocks to closely track the performance of the Nasdaq-100 or S&P 500 Growth indexes. Registered investment advisors are encountering an increasingly sophisticated group of clients and prospective clients. Advisors Embracing Direct Indexing More asset allocators and advisors are warming to the idea of direct indexing.
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14726.0
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2023-07-25 00:00:00 UTC
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Will Cloudflare Go Back Into Rally Mode After Q2 Earnings Report?
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AAPL
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https://www.nasdaq.com/articles/will-cloudflare-go-back-into-rally-mode-after-q2-earnings-report
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nan
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nan
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The recent rally in erstwhile tech leader Cloudflare Inc. (NYSE: NET) is a good reminder of why it’s important to stay up to speed on sector rotation, as it can have a big impact on your overall return.
The stock recently rebounded from a decline after its most recent earnings report. Cloudflare is up 4.03% in the past month and up 6% in the past three months. Those aren’t exactly eye-popping gains, but a look at the Cloudflare chart shows the stock holding 4.8% above its 50-day average, and just above its 21-day line.
The company provides web security, content delivery, and performance optimization services to help Web sites operate faster and more safely.
Its global network has expanded to 300 cities in more than 100 countries and interconnects with over 11,500 networks globally, including major Internet Service Providers, cloud services, and enterprise customers. It’s in the process of extending its network directly to office buildings.
Customers Include Walmart, Apple
It serves about 20% of Web sites worldwide, quite an accomplishment for a company that only went public in September 2019. As you can imagine, it boasts large corporate customers, including Walmart Inc. (NYSE: WMT) and Apple Inc. (NASDAQ: AAPL).
On July 17, the stock cleared a secondary buy point above $72, but the stock reversed lower for three sessions in a row.
This is a stock worth keeping an eye on for now, as the company reports its second quarter on August 3, after the market’s close.
In the most recent quarter, revenue grew by 37% while earnings increased by 700%. Earnings have been increasing at sky-high rates in the past three quarters. In 2022, the company pivoted to profitability for the first time.
Even with that outstanding growth, the stock fell after the first-quarter report, as the company lowered guidance for the second quarter.
Lowered Q2 Guidance
In the earnings release statement, chief financial officer Thomas Seifert said, “Increasing macroeconomic uncertainty over the course of the first quarter resulted in a material lengthening of sales cycles and a significant backend-weighting of linearity.”
Revenue linearity refers to the consistency of a company's revenue generation throughout a specific period, such as a quarter or a year. When a company achieves revenue linearity, it means that its revenue is relatively steady and predictable over time. This predictability is essential for financial planning and forecasting, as it provides investors and analysts with a more stable outlook for the company's financial performance.
Seifert was saying, in corporate-speak, that he expected more revenue to come in during the second half of the year, versus what was earlier expected.
He added, “Despite the continued reacceleration of our new pipeline generation and our sustained high win rates and renewal rates during the first quarter, our guidance assumes these external headwinds will persist through the end of the fiscal year.”
Strong Year-Over-Year Gains Expected
For the second quarter, the company expects total revenue between $305.0 to $306.0 million. At the midpoint, that would be an increase of 30%, not at all shabby, but generally, when a company lowers guidance, markets have a conniption.
It expects net income per share between 7 cents and 8 cents. At the midpoint, that would be an increase of 650%, again, not exactly something to sneeze at.
For the full year, Wall Street expects Cloudflare to earn 34 cents a share, an increase of 163% over 2022. The company guided towards earnings in a range between 34 cents and 35 cents, with annual revenue coming in between $1.28 billion and $1.284 billion.
How To Evaluate Cloudflare's Potential
Here’s a way to look at Cloudflare, at least until we get quarterly results that may give more insight into the stock’s potential for the rest of 2023.
Keep in mind: Techs as a whole have been rallying, although they, as with most companies reporting these days, continue to hedge their forward-looking statements with allusions to headwinds, or even potential headwinds.
Cloudflare's earnings guidance was an acknowledgment of uncertainty among its customers, but when you look at the percentage gains expected, you get a sense of why the stock quickly rebounded after the initial panic selling.
Investors sometimes get anchored to an investment thesis that no longer applies. For example, earlier this year, many investors continued to have a sense of schadenfreude about the dismal 2022 performance of the ARK Innovation ETF (NYSEARCA: ARKK).
Watch How The Broad Sector Is Performing
However, amid all the chuckling, they failed to notice that the ETF was staging a solid rebound. It’s up 53.43% year-to-date, as the broader tech sector has been in rally mode. The Technology Select Sector SPDR Fund (NYSEARCA: XLK), which tracks the S&P 500 info tech sector, has posted a 2023 return of 42.15%.
With a market capitalization of $22.10 billion, Cloudflare qualifies for S&P 500 membership, but is not yet a component.
The stock has some work to do before proving itself, both fundamentally and technically, but it’s a good watchlist candidate as it continues holding above key technical indicators, and while sales and earnings growth are expected to remain robust, despite the lowered guidance.
The views and 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 imagine, it boasts large corporate customers, including Walmart Inc. (NYSE: WMT) and Apple Inc. (NASDAQ: AAPL). The recent rally in erstwhile tech leader Cloudflare Inc. (NYSE: NET) is a good reminder of why it’s important to stay up to speed on sector rotation, as it can have a big impact on your overall return. Cloudflare's earnings guidance was an acknowledgment of uncertainty among its customers, but when you look at the percentage gains expected, you get a sense of why the stock quickly rebounded after the initial panic selling.
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As you can imagine, it boasts large corporate customers, including Walmart Inc. (NYSE: WMT) and Apple Inc. (NASDAQ: AAPL). The recent rally in erstwhile tech leader Cloudflare Inc. (NYSE: NET) is a good reminder of why it’s important to stay up to speed on sector rotation, as it can have a big impact on your overall return. Lowered Q2 Guidance In the earnings release statement, chief financial officer Thomas Seifert said, “Increasing macroeconomic uncertainty over the course of the first quarter resulted in a material lengthening of sales cycles and a significant backend-weighting of linearity.” Revenue linearity refers to the consistency of a company's revenue generation throughout a specific period, such as a quarter or a year.
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As you can imagine, it boasts large corporate customers, including Walmart Inc. (NYSE: WMT) and Apple Inc. (NASDAQ: AAPL). Lowered Q2 Guidance In the earnings release statement, chief financial officer Thomas Seifert said, “Increasing macroeconomic uncertainty over the course of the first quarter resulted in a material lengthening of sales cycles and a significant backend-weighting of linearity.” Revenue linearity refers to the consistency of a company's revenue generation throughout a specific period, such as a quarter or a year. He added, “Despite the continued reacceleration of our new pipeline generation and our sustained high win rates and renewal rates during the first quarter, our guidance assumes these external headwinds will persist through the end of the fiscal year.” Strong Year-Over-Year Gains Expected For the second quarter, the company expects total revenue between $305.0 to $306.0 million.
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As you can imagine, it boasts large corporate customers, including Walmart Inc. (NYSE: WMT) and Apple Inc. (NASDAQ: AAPL). In the most recent quarter, revenue grew by 37% while earnings increased by 700%. Earnings have been increasing at sky-high rates in the past three quarters.
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14727.0
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2023-07-25 00:00:00 UTC
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Better Chip Stock: Taiwan Semiconductor (TSMC) vs. Qualcomm
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AAPL
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https://www.nasdaq.com/articles/better-chip-stock%3A-taiwan-semiconductor-tsmc-vs.-qualcomm
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nan
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nan
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TSMC (NYSE: TSM) and Qualcomm (NASDAQ: QCOM) represent two very different ways to invest in the growing semiconductor market. TSMC is the world's largest and most advanced contract chipmaker, and it manufactures the smallest, densest, and most power-efficient chips for fabless chipmakers. Qualcomm, one of the world's leading producers of mobile chipsets and baseband modems, is one of those clients.
TSMC is a bellwether of the semiconductor market, since its foundries serve a broad range of end markets, but Qualcomm's fate is tightly tethered to the cyclical smartphone market. TSMC only generated a third of its revenue from the smartphone market in its latest quarter, while the rest came from the high-performance computing (HPC), automotive, Internet of Things (IoT), and digital consumer electronics (DCE) markets. Qualcomm still generated more than three-quarters of its chipmaking revenues from its smartphone chips and modems last quarter.
Over the past 12 months, TSMC's stock rose 11% as Qualcomm's stock tumbled 20%. Let's see why that happened -- and if TSMC remains a better buy than Qualcomm.
Image source: Getty Images.
Both companies face cyclical slowdowns
TSMC and Qualcomm operate different business models, but both companies struggled with the cyclical slowdown of the broader semiconductor market. That deceleration was caused by slower sales of PCs in a post-pandemic market, the end of the initial 5G upgrade cycle in smartphones, and macroeconomic headwinds for enterprise-oriented chips.
TSMC's revenue rose 34% (in USD terms) to $75.9 billion in 2022, but it's bracing for a 10% decline in 2023 as most of its end markets cool off. The only bright spot in the first half of the year was its auto business, which grew as the EV and connected vehicle markets expanded, but that growth was offset by the declines of most of its other markets. Analysts expect TSMC's revenue to decline 8% for the full year.
As TSMC's revenue growth slows down, it's delaying the start of production at its Arizona plant from 2024 to 2025 (partly due to a shortage of skilled workers), and expects its 2023 capital expenditures would land at the low end of its prior forecast of $32 billion to $36 billion. But even as it reins in its spending, analysts expect its earnings per ADR to drop 23% this year.
Qualcomm's revenue surged 32% in fiscal 2022 (which ended last September), but analysts expect a 27% decline in fiscal 2023 as the smartphone market weakens. Intense competition from MediaTek in the low-to-mid-range markets and first-party chips from leading smartphone makers could exacerbate that slowdown. Qualcomm also expects to lose Apple (NASDAQ: AAPL) as its top 5G modem customer in fiscal 2024 as the iPhone maker rolls out its own modems.
Qualcomm diversifying its business away from smartphones by expanding its automotive and IoT chip businesses, but those two segments only generated 23% of its chipmaking revenues last quarter. It's also exposing itself to more competition from other chipmakers like Nvidia and Mobileye by entering those markets. It's cutting costs and buying back more shares as its revenues shrink, but analysts still expect its adjusted EPS to decline 41% this year.
Which company will recover faster?
TSMC remains one to two chip generations ahead of its closest competitors, Intel and Samsung, in the race to manufacture smaller and denser chips, so it could bounce back quickly when the semiconductor market recovers. That's why analysts expect its revenue and earnings per ADR to grow 22% and 24%, respectively, in 2024.
Qualcomm faces more near-term challenges than TSMC. In addition to competition from MediaTek and its upcoming loss of Apple's orders, it needs to juggle the saturation of the smartphone market with the unpredictable growth of its automotive and IoT businesses. Nevertheless, Wall Street still expects Qualcomm's revenue and adjusted EPS to grow 9% and 16%, respectively, in fiscal 2024 as it gradually overcomes those challenges.
Which stock is more reasonably valued?
TSMC trades at 19 times forward earnings and pays a forward yield of 1.8%. Qualcomm has a lower forward multiple of 13 but pays out a higher forward dividend yield of 2.6%. Qualcomm might seem like the cheaper stock, but that discount reflects its slower growth and an uncertain outlook for the smartphone market.
TSMC is still reasonably valued, and I believe its competitive advantages, diversification, and stronger growth make it a more compelling buy than Qualcomm right now.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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Leo Sun has positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Apple, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Qualcomm also expects to lose Apple (NASDAQ: AAPL) as its top 5G modem customer in fiscal 2024 as the iPhone maker rolls out its own modems. That deceleration was caused by slower sales of PCs in a post-pandemic market, the end of the initial 5G upgrade cycle in smartphones, and macroeconomic headwinds for enterprise-oriented chips. It's cutting costs and buying back more shares as its revenues shrink, but analysts still expect its adjusted EPS to decline 41% this year.
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Qualcomm also expects to lose Apple (NASDAQ: AAPL) as its top 5G modem customer in fiscal 2024 as the iPhone maker rolls out its own modems. Both companies face cyclical slowdowns TSMC and Qualcomm operate different business models, but both companies struggled with the cyclical slowdown of the broader semiconductor market. The Motley Fool has positions in and recommends Apple, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing.
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Qualcomm also expects to lose Apple (NASDAQ: AAPL) as its top 5G modem customer in fiscal 2024 as the iPhone maker rolls out its own modems. TSMC is a bellwether of the semiconductor market, since its foundries serve a broad range of end markets, but Qualcomm's fate is tightly tethered to the cyclical smartphone market. Both companies face cyclical slowdowns TSMC and Qualcomm operate different business models, but both companies struggled with the cyclical slowdown of the broader semiconductor market.
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Qualcomm also expects to lose Apple (NASDAQ: AAPL) as its top 5G modem customer in fiscal 2024 as the iPhone maker rolls out its own modems. Qualcomm still generated more than three-quarters of its chipmaking revenues from its smartphone chips and modems last quarter. That's why analysts expect its revenue and earnings per ADR to grow 22% and 24%, respectively, in 2024.
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14728.0
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2023-07-25 00:00:00 UTC
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Should You Invest in the Fidelity MSCI Information Technology Index ETF (FTEC)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-fidelity-msci-information-technology-index-etf-ftec-7
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nan
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nan
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Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Fidelity MSCI Information Technology Index ETF (FTEC), a passively managed exchange traded fund launched on 10/21/2013.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $7.37 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. FTEC seeks to match the performance of the MSCI USA IMI Information Technology Index before fees and expenses.
The MSCI USA IMI Information Technology Index represents the performance of the information technology sector in the U.S. equity market.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.68%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 90.60% of the portfolio.
Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 22.82% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA).
The top 10 holdings account for about 62.50% of total assets under management.
Performance and Risk
The ETF has added about 40.73% and is up about 27.83% so far this year and in the past one year (as of 07/25/2023), respectively. FTEC has traded between $88.99 and $135.73 during this last 52-week period.
The ETF has a beta of 1.15 and standard deviation of 26.11% for the trailing three-year period, making it a medium risk choice in the space. With about 361 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Information Technology Index ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FTEC is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $51.13 billion in assets, Vanguard Information Technology ETF has $53.55 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 22.82% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. You should consider the Fidelity MSCI Information Technology Index ETF (FTEC), a passively managed exchange traded fund launched on 10/21/2013.
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Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 22.82% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 22.82% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Alternatives Fidelity MSCI Information Technology Index ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 22.82% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
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14729.0
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2023-07-25 00:00:00 UTC
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Should Invesco S&P 500 Revenue ETF (RWL) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-sp-500-revenue-etf-rwl-be-on-your-investing-radar-8
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nan
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nan
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco S&P 500 Revenue ETF (RWL) is a passively managed exchange traded fund launched on 02/22/2008.
The fund is sponsored by Invesco. It has amassed assets over $2.05 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.53%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 18.50% of the portfolio. Consumer Discretionary and Consumer Staples round out the top three.
Looking at individual holdings, Walmart Inc (WMT) accounts for about 3.98% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL).
The top 10 holdings account for about 23.33% of total assets under management.
Performance and Risk
RWL seeks to match the performance of the OFI Revenue Weighted Large Cap Index before fees and expenses. The S&P 500 Revenue-Weighted Index is constructed by using a rules-based methodology that re-weights the constituent securities of the S&P 500 Index according to the revenue earned by the companies in the parent index- subject to a maximum 5% per company weighting.
The ETF has added about 12.33% so far this year and is up roughly 14.91% in the last one year (as of 07/25/2023). In the past 52-week period, it has traded between $67.11 and $82.40.
The ETF has a beta of 0.99 and standard deviation of 16.56% for the trailing three-year period, making it a medium risk choice in the space. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Revenue ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RWL is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $52.27 billion in assets, Vanguard Value ETF has $103.07 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Walmart Inc (WMT) accounts for about 3.98% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Click to get this free report Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco S&P 500 Revenue ETF (RWL) is a passively managed exchange traded fund launched on 02/22/2008.
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Click to get this free report Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Walmart Inc (WMT) accounts for about 3.98% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco S&P 500 Revenue ETF (RWL) is a passively managed exchange traded fund launched on 02/22/2008.
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Click to get this free report Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Walmart Inc (WMT) accounts for about 3.98% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Alternatives Invesco S&P 500 Revenue ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Walmart Inc (WMT) accounts for about 3.98% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Click to get this free report Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets.
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14730.0
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2023-07-25 00:00:00 UTC
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1 Green Flag for Apple in 2023, and 1 Red Flag
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AAPL
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https://www.nasdaq.com/articles/1-green-flag-for-apple-in-2023-and-1-red-flag-0
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nan
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nan
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Apple (NASDAQ: AAPL) has rallied investors this year, with its sock up 50% since Jan. 1. Wall Street grew particularly bullish as Apple neared a market cap of $3 trillion and then became the first company to achieve such a milestone in June.
The company's long history of consistent growth has made it one of the most reliable investment options. As a result, it's not surprising Warren Buffett's holding company, Berkshire Hathaway, dedicates 46% of its portfolio to the iPhone company.
However, before going all in on Apple, it's wise to be aware of the positives and negatives of its business. So, here is one green flag and one red flag for Apple in 2023.
Green flag: Massive potential in artificial intelligence
Since the launch of OpenAI's ChatGPT last November, all eyes have been on the artificial intelligence (AI) market. Companies like Microsoft and Nvidia have enjoyed monster rallies since Jan. 1. thanks to their potential in the industry. Meanwhile, Apple has largely stayed out of the hype. However, a recent report suggests the company is gearing up to make a promising push into the industry.
On July 19, Bloomberg reported Apple is quietly developing AI tools that could soon rival OpenAI's offerings. The company has created its own framework to build language models and has used this to develop an AI chatbot that engineers have nicknamed Apple GPT. The news boosted the company's stock by about 2% on Wednesday.
While Apple hasn't made the splash in AI that other companies have, it isn't a stranger to the market. The company is gradually bringing AI upgrades across its lineup of products.
In June, Apple debuted an update to the iPhone's autocorrect that uses language models similar to ChatGPT to learn how users text. Additionally, AirPod Pros now have an AI-enabled feature that automatically turns off noise cancellation when the wearer engages in conversation.
Apple's massive dominance in consumer tech could see it play a crucial role in AI and be a major driver in getting the technology into the hands of millions of shoppers.
Red flag: A slightly expensive option
While Apple's recent bull run has been lucrative for investors, it has also made its stock more expensive for newcomers.
The company's price-to-earnings ratio (P/E) has risen 54% year to date and sits at around 33. Meanwhile, its price-to-free-cash-flow (P/FCF) ratio is also on the high side at about 32. Both metrics are useful in determining the value of a stock, with a P/E of less than 20 usually signaling a bargain and a P/FCF below 10 indicating the same.
Data by YCharts
The good news is, as shown in the chart above, Apple's stock is still one of the cheaper options among the five biggest tech companies. Its P/E is lower than Amazon, Microsoft, and Meta Platforms, with only Alphabet offering slightly more value.
However, Apple stock's rise of 304% over the last five years has offered investors more growth than any of the other companies in the chart. Comparatively, the company with the second-highest growth is Microsoft, with its stock up 226%.
Apple's P/E and P/FCF may suggest its stock is an expensive option right now, but the company's history of consistent gains and growing potential in AI will likely boost its shares far higher over the next five to 10 years. The key with Apple -- and most stocks -- is to keep a long-term perspective, which can set the stage for a significant return on your investment.
Apple is at the forefront of multiple areas of tech and is quickly expanding. With the power of AI and the iPhone at its side, Apple will likely continue on its current growth trajectory, making its stock an attractive option in 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of 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, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has rallied investors this year, with its sock up 50% since Jan. 1. The company has created its own framework to build language models and has used this to develop an AI chatbot that engineers have nicknamed Apple GPT. Apple's massive dominance in consumer tech could see it play a crucial role in AI and be a major driver in getting the technology into the hands of millions of shoppers.
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Apple (NASDAQ: AAPL) has rallied investors this year, with its sock up 50% since Jan. 1. Green flag: Massive potential in artificial intelligence Since the launch of OpenAI's ChatGPT last November, all eyes have been on the artificial intelligence (AI) market. Red flag: A slightly expensive option While Apple's recent bull run has been lucrative for investors, it has also made its stock more expensive for newcomers.
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Apple (NASDAQ: AAPL) has rallied investors this year, with its sock up 50% since Jan. 1. Data by YCharts The good news is, as shown in the chart above, Apple's stock is still one of the cheaper options among the five biggest tech companies. However, Apple stock's rise of 304% over the last five years has offered investors more growth than any of the other companies in the chart.
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Apple (NASDAQ: AAPL) has rallied investors this year, with its sock up 50% since Jan. 1. The company's long history of consistent growth has made it one of the most reliable investment options. However, Apple stock's rise of 304% over the last five years has offered investors more growth than any of the other companies in the chart.
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14731.0
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2023-07-25 00:00:00 UTC
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3 Millionaire-Maker Autonomous Driving Stocks to Buy Before the Window Closes
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AAPL
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https://www.nasdaq.com/articles/3-millionaire-maker-autonomous-driving-stocks-to-buy-before-the-window-closes
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Autonomous driving will be one of the applications for artificial intelligence that will impact consumers over the next decade or more. That means it’s time for investors to look for high-potential autonomous driving stocks that can drive growth in their portfolios.
Tesla (NASDAQ:TSLA) is an obvious name to consider. One of the big news that came out of the company’s earnings report was its plans to spend $1 billion on its autonomous driving initiative titled “Project Dojo.” This will be another reason that TSLA will be a growth stock to watch for years to come.
And it can easily make some investors millionaires. However, for this list of high-potential autonomous driving stocks, I’ve decided to look beyond Tesla. This list includes one undervalued large-cap and two small mid-cap companies that are attractively priced for the outsized gains that define millionaire-making stocks.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
Qualcomm (NASDAQ:QCOM) is frequently thought of for its leadership in developing patents and intellectual property in the mobile device chip sector. Notably, the company (for now) continues to supply chips for Apple (NASDAQ:AAPL).
But Qualcomm has also become a serious competitor in the autonomous vehicle market. In January 2023, the company unveiled its Snapdragon Ride platform. This car-based computer system can provide Level 1 (parking assistance) to Level 5 (no human driver) autonomous capabilities. The company is currently working with many automakers to seed this system into the market.
Currently QCOM stock looks undervalued at just over 13x earnings. The company is expected to increase earnings by approximately 20%, which aligns with anticipated stock price growth of 17%. And considering that this is only the beginning of a multi-year cycle in autonomous driving, QCOM can be one of the autonomous driving stocks with big returns.
Ambarella (AMBA)
Source: Mikbiz / Shutterstock
Ambarella (NASDAQ:AMBA) is known for its system-on-a-chip (SOC) designs that it calls Computer Vision. As it relates to autonomous vehicles, the company’s hardware platforms “deliver the flexibility required to implement all levels of automation, including partial, conditional, high, and full autonomy.”
Earlier this year, Ambarella was selected by Hyperview, a Shanghai-based company, to provide its SOCs for its autonomous driving platforms. This gives the company a foothold in the Chinese market.
That would be welcome news for investors since Ambarella is not profitable and wis not expected to be through 2025. However, analysts are giving the stock a 19% upside from its current level. And institutional ownership in AMBA stock sits at over 78% with buying activity outpacing selling activity by over 2:1.
Ambarella can’t be considered an inexpensive stock. But with a long runway for growth, it’s a solid choice as one of the high-potential autonomous vehicle stocks.
Luminar Technologies (LAZR)
Source: Nor Gal / Shutterstock
If you’re going to invest in high-potential autonomous vehicle stocks, you should be familiar with LiDAR technology. This is the backbone of self-driving cars, and Luminar Technologies (NASDAQ:LAZR) is one of the leaders in this space.
However, like many groundbreaking technologies, LiDAR comes at a premium to existing radar technologies. That’s been a drag on LAZR stock. And investors should be mindful that Luminar continues to be unprofitable which could bring about further share dilution.
On the other hand, Luminar has secured contracts with several automakers. This will help LiDAR adoption as will the company’s efforts to make LiDAR sensors more aesthetically pleasing.
With a market cap of just over $2 billion dollars, Luminar could still be considered a small-cap stock. And like many small-caps it carries significant short interest. For LAZR stock that sits at over 27% as of this writing. But that’s part of the risk-reward that investors must consider with millionaire-maker stocks. The long-term outlook for LAZR stock could be a risk worth taking. And institutional investors seem to agree. They own 64% of the company’s stock and buying (in terms of dollars invested) has outpaced selling by over 5:1.
On the date of publication, Chris Markoch 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.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Notably, the company (for now) continues to supply chips for Apple (NASDAQ:AAPL). One of the big news that came out of the company’s earnings report was its plans to spend $1 billion on its autonomous driving initiative titled “Project Dojo.” This will be another reason that TSLA will be a growth stock to watch for years to come. This list includes one undervalued large-cap and two small mid-cap companies that are attractively priced for the outsized gains that define millionaire-making stocks.
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Notably, the company (for now) continues to supply chips for Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Autonomous driving will be one of the applications for artificial intelligence that will impact consumers over the next decade or more. Ambarella (AMBA) Source: Mikbiz / Shutterstock Ambarella (NASDAQ:AMBA) is known for its system-on-a-chip (SOC) designs that it calls Computer Vision.
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Notably, the company (for now) continues to supply chips for Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Autonomous driving will be one of the applications for artificial intelligence that will impact consumers over the next decade or more. As it relates to autonomous vehicles, the company’s hardware platforms “deliver the flexibility required to implement all levels of automation, including partial, conditional, high, and full autonomy.” Earlier this year, Ambarella was selected by Hyperview, a Shanghai-based company, to provide its SOCs for its autonomous driving platforms.
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Notably, the company (for now) continues to supply chips for Apple (NASDAQ:AAPL). Luminar Technologies (LAZR) Source: Nor Gal / Shutterstock If you’re going to invest in high-potential autonomous vehicle stocks, you should be familiar with LiDAR technology. With a market cap of just over $2 billion dollars, Luminar could still be considered a small-cap stock.
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14732.0
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2023-07-25 00:00:00 UTC
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ANALYSIS-Sensing end of Fed hikes, some investors return to dividend stocks
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AAPL
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https://www.nasdaq.com/articles/analysis-sensing-end-of-fed-hikes-some-investors-return-to-dividend-stocks
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By David Randall
NEW YORK, July 25 (Reuters) - Some investors are giving the shares of dividend-rich companies a second look as expectations grow that the Federal Reserve is nearing the end of a rate-hiking cycle that has lifted bond yields to their highest level in nearly two decades.
The Fed’s most aggressive rate increases in a generation have pushed short-term Treasury yields above 5%, their highest level since 2007, widening the options for income-seeking investors after a decade marked by historically low rates. That has helped pressure many of the market’s popular dividend-paying stocks, which investors had turned to when rates were far lower.
With markets betting the Fed is unlikely to raise rates much further, some investors say the shares of dividend payers are starting to look appealing again, as they look for opportunities for income if Treasury yields head lower.
"The 5% you're getting from Treasuries looks to be transitory and that will take some pressure off of these sectors competing for yield," said Jurrien Timmer, director of global macro at Fidelity Investments. "The dividend-paying value side of the market is a pretty compelling place to go to maintain that return."
A nascent resurgence of interest in dividend-paying stocks can be seen in inflows to the $11.7 billion ProShares S&P 500 Dividend Aristocrats ETF NOBL.Z, which brought in $33 million in net inflows over the two weeks that ended July 19, its largest two-week gain since January, according to Lipper data.
The fund, which tracks companies that have increased dividends annually for the past 25 years, is up around 7.5% this year, compared with a nearly 19% gain for the S&P 500.
Meanwhile, 44% of global fund managers polled by BoFA Global Research said they now expect high-dividend stocks to outperform those that pay low dividends, a nine percentage-point increase from the previous month.
Timmer is increasingly focusing on financial and energy stocks, betting both sectors will benefit from what he expects to be an economic soft landing that skirts a painful recession.
Overall, S&P 500 companies have been less generous to investors this year, a trend driven in part by lower oil prices forcing energy companies to cut back on payouts, according to Howard Silverblatt, senior index analyst, product management, for S&P Dow Jones Indices.
Companies have increased their payouts by an average of 9.1% so far in 2023, compared with 11.8% in the same time last year, while 14 companies have either suspended or lowered their dividends since the start of the year, up from four a year ago, the firm’s data showed.
Nevertheless, investors are seeking out dividend-paying stocks as a source of total return this year in anticipation that bond yields may falter while stocks continue to gain, Silverblatt said.
“If you are going into dividend paying stocks now, you are taking that risk because you think there's a high probability that the market goes up," he said.
Another reason for dividend payers’ appeal is a broadening of the market’s rally from the cluster of huge tech and growth stocks that led gains for most of the year into other areas. The S&P 500 energy and financials sectors are up 5.7% and 5.6% this month, respectively, compared with a 2.5% gain for the broader index.
"If that belief in a recession fades a little bit there’s more air cover to broaden the market out to some of these dividend payers that hadn't really participated in the rally until a few weeks ago," said Cliff Corso, chief investment officer at Advisors Asset Management. "We see that trend continuing as the Fed gets close to its ultimate stopping point."
Corso is searching for dividend-paying companies in cyclical sectors such as financials, where valuations are less expensive.
Still, some investors are skeptical an economic soft landing would be particularly beneficial for dividend-payers. Bryant VanCronkhite, a portfolio manager at Allspring Global Investments, is looking for companies that are seeking to grow revenues through acquisitions, which he considers a better use of capital than returning dividends to shareholders.
"We're looking for companies that may not have the highest yield, but the capacity to grow yields down the line" due to their larger earnings base, he said.
(Reporting by David Randall; Editing by Ira Iosebashvili)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.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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With markets betting the Fed is unlikely to raise rates much further, some investors say the shares of dividend payers are starting to look appealing again, as they look for opportunities for income if Treasury yields head lower. "If that belief in a recession fades a little bit there’s more air cover to broaden the market out to some of these dividend payers that hadn't really participated in the rally until a few weeks ago," said Cliff Corso, chief investment officer at Advisors Asset Management. Bryant VanCronkhite, a portfolio manager at Allspring Global Investments, is looking for companies that are seeking to grow revenues through acquisitions, which he considers a better use of capital than returning dividends to shareholders.
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Timmer is increasingly focusing on financial and energy stocks, betting both sectors will benefit from what he expects to be an economic soft landing that skirts a painful recession. Nevertheless, investors are seeking out dividend-paying stocks as a source of total return this year in anticipation that bond yields may falter while stocks continue to gain, Silverblatt said. Another reason for dividend payers’ appeal is a broadening of the market’s rally from the cluster of huge tech and growth stocks that led gains for most of the year into other areas.
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Overall, S&P 500 companies have been less generous to investors this year, a trend driven in part by lower oil prices forcing energy companies to cut back on payouts, according to Howard Silverblatt, senior index analyst, product management, for S&P Dow Jones Indices. Companies have increased their payouts by an average of 9.1% so far in 2023, compared with 11.8% in the same time last year, while 14 companies have either suspended or lowered their dividends since the start of the year, up from four a year ago, the firm’s data showed. Nevertheless, investors are seeking out dividend-paying stocks as a source of total return this year in anticipation that bond yields may falter while stocks continue to gain, Silverblatt said.
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By David Randall NEW YORK, July 25 (Reuters) - Some investors are giving the shares of dividend-rich companies a second look as expectations grow that the Federal Reserve is nearing the end of a rate-hiking cycle that has lifted bond yields to their highest level in nearly two decades. Timmer is increasingly focusing on financial and energy stocks, betting both sectors will benefit from what he expects to be an economic soft landing that skirts a painful recession. Nevertheless, investors are seeking out dividend-paying stocks as a source of total return this year in anticipation that bond yields may falter while stocks continue to gain, Silverblatt said.
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14733.0
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2023-07-25 00:00:00 UTC
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Tune Into Stocks From the Global Music Industry for Huge Gains
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AAPL
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https://www.nasdaq.com/articles/tune-into-stocks-from-the-global-music-industry-for-huge-gains
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nan
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In recent years, the global music industry has transformed into a thriving market. Revenues hit an extraordinary $26.2 billion in 2022, marking 9% year-over-year growth. This tempo is likely to continue, according to industry forecasts. The surge can be credited to the immense growth in streaming services, with platforms like Spotify SPOT, Apple Music AAPL and Amazon Music AMZN leading the symphony.
Key Players and Investment Opportunities
Companies like Universal Music Group (UMG), Warner Music Group (WMG) and Sony Music Entertainment rule the global recorded music industry. UMG alone made up 30% of the market in 2022. Investing in these market leaders or their parent companies — Vivendi, Access Industries, and Sony Corporation SONY — can be a robust strategy.
The rise of music streaming has transformed the industry. As of 2022, Spotify had more than 345 million active users. Other tech giants have also entered the space, with Apple Music and Amazon Music holding significant market shares. Investing in these tech companies can offer exposure to the thriving music industry.
Plus, supplementary sectors like concert and tour promotion companies like Live Nation LYV, music publishing entities like UMG and WMG and music tech startups are also witnessing commendable growth.
Upbeat Outlook for Global Music Industry
The share of streaming increased from 65.5% to 67% of music revenues in 2022. Subscription audio streams and ad-supported streams made up 48.3% and 18.7% share of music revenues, respectively. Performance rights accounted for 9.4% of the share. Performance rights revenues grew 8.6% in 2022, going back to the pre-pandemic levels, while income from sync grew 22.3%.
The United States, being the largest music market globally, plays a crucial role. Key drivers of this growth include the popularity of digital streaming and the resurgence of vinyl records and other physical formats.
Emerging markets offer another lucrative investment opportunity. Countries like India, China and Brazil have been witnessing a surge in demand for music content, promising lucrative returns. Global paid streaming penetration is expected to double by 2030.
Paid streaming revenues are projected to see a 10% CAGR through 2030. Music publishing revenues are expected to witness a 6% CAGR to reach $11.7 billion by 2030. Global live music bounced back 85% year over year in 2022 and topped the pre-pandemic levels. Global live music is expected to have witnessed a 4% CAGR through 2022, per the investment case offered by MUSQ Global Music Industry ETF MUSQ.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
Spotify Technology (SPOT) : Free Stock Analysis Report
Sony Corporation (SONY) : Free Stock Analysis Report
MUSQ Global Music Industry ETF (MUSQ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The surge can be credited to the immense growth in streaming services, with platforms like Spotify SPOT, Apple Music AAPL and Amazon Music AMZN leading the symphony. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report MUSQ Global Music Industry ETF (MUSQ): ETF Research Reports To read this article on Zacks.com click here. Key drivers of this growth include the popularity of digital streaming and the resurgence of vinyl records and other physical formats.
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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 Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report MUSQ Global Music Industry ETF (MUSQ): ETF Research Reports To read this article on Zacks.com click here. The surge can be credited to the immense growth in streaming services, with platforms like Spotify SPOT, Apple Music AAPL and Amazon Music AMZN leading the symphony. Key Players and Investment Opportunities Companies like Universal Music Group (UMG), Warner Music Group (WMG) and Sony Music Entertainment rule the global recorded music industry.
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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 Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report MUSQ Global Music Industry ETF (MUSQ): ETF Research Reports To read this article on Zacks.com click here. The surge can be credited to the immense growth in streaming services, with platforms like Spotify SPOT, Apple Music AAPL and Amazon Music AMZN leading the symphony. Key Players and Investment Opportunities Companies like Universal Music Group (UMG), Warner Music Group (WMG) and Sony Music Entertainment rule the global recorded music industry.
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The surge can be credited to the immense growth in streaming services, with platforms like Spotify SPOT, Apple Music AAPL and Amazon Music AMZN leading the symphony. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report MUSQ Global Music Industry ETF (MUSQ): ETF Research Reports To read this article on Zacks.com click here. Key Players and Investment Opportunities Companies like Universal Music Group (UMG), Warner Music Group (WMG) and Sony Music Entertainment rule the global recorded music industry.
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14734.0
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2023-07-25 00:00:00 UTC
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Should Vanguard Russell 1000 Growth ETF (VONG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-growth-etf-vong-be-on-your-investing-radar-8
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Vanguard Russell 1000 Growth ETF (VONG), a passively managed exchange traded fund launched on 09/22/2010.
The fund is sponsored by Vanguard. It has amassed assets over $13.37 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.77%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 44% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.09% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
Performance and Risk
VONG seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of large-capitalization growth stocks in the United States.
The ETF has added roughly 31.29% so far this year and is up about 21.09% in the last one year (as of 07/25/2023). In the past 52-week period, it has traded between $53.17 and $73.40.
The ETF has a beta of 1.07 and standard deviation of 22.90% for the trailing three-year period, making it a medium risk choice in the space. With about 512 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VONG is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $94.29 billion in assets, Invesco QQQ has $208.88 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Russell 1000 Growth ETF (VONG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.09% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $13.37 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.09% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). You should consider the Vanguard Russell 1000 Growth ETF (VONG), a passively managed exchange traded fund launched on 09/22/2010.
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Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.09% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Russell 1000 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.09% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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14735.0
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2023-07-24 00:00:00 UTC
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Wells Fargo Maintains Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/wells-fargo-maintains-apple-aapl-overweight-recommendation
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nan
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Fintel reports that on July 24, 2023, Wells Fargo maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 0.16% Upside
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 an increase of 0.16% from its latest reported closing price of 191.94.
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 6390 funds or institutions reporting positions in Apple. This is a decrease of 15 owner(s) or 0.23% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.91%, an increase of 45.88%. Total shares owned by institutions increased in the last three months by 37.90% to 14,010,479K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.82% 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 2.96% 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 2.21% 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 1.81% 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 1.49% 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 24, 2023, Wells Fargo maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.91%, an increase of 45.88%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on July 24, 2023, Wells Fargo maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.91%, an increase of 45.88%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on July 24, 2023, Wells Fargo maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.91%, an increase of 45.88%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on July 24, 2023, Wells Fargo maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.91%, an increase of 45.88%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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14736.0
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2023-07-24 00:00:00 UTC
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SPOT Stock Falls 5% as Spotify Hikes Prices
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AAPL
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https://www.nasdaq.com/articles/spot-stock-falls-5-as-spotify-hikes-prices
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Shares of audio streaming and media services provider Spotify (NYSE:SPOT) hit a snag on Monday as management announced price hikes for its premium subscription plans. Primarily, the move aligns with the enterprise’s efforts to bolster profitability amid a difficult economic environment. However, that same environment also imposes a difficult balance for SPOT stock, which tightropes between financial and consumer concerns.
According to a Reuters report, Spotify earlier today raised prices across several countries, including the U.S. and the U.K. “The move will result in a $1 price increase for Spotify’s U.S. plans, with the premium single now starting at $10.99, duo at $14.99, family at $16.99 and the student plan at $5.99,” the news agency stated.
Unfortunately, investors took a dim view regarding the matter, sending SPOT stock down 5% in the late morning session. Still, it’s not an entirely unexpected decision.
Per Reuters, rival services by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) have all issued price hikes this year. Further, YouTube – under the Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) umbrella – also raised prices last week on its monthly and annual premium plans.
SPOT Stock Slipped as the Industry Faces Tough Decisions
In all fairness, it would be inaccurate to characterize SPOT stock as a troubled investment. Since the beginning of this year, shares have approximately doubled in market value. Still, Monday’s red ink represents a significant departure from SPOT’s robust performance so far in 2023.
Fundamentally, management likely felt it had little choice but to raise prices for its premium plans. According to investment data aggregator Gurufocus, SPOT stock benefits from a solid top-line trend. On a per-share basis, Spotify’s three-year revenue growth rate clocks in at 15.2%. This stat ranks better than 64.93% of companies listed in the interactive media space.
At the same time, the company’s trailing-year operating and net margins sits at 6.66% and 6.51% below zero, respectively. While the Spotify brand continues to gain prominence, it consistently produces red ink on the bottom line. As of the first quarter of 2023, Spotify’s retained losses amount to $4.15 billion.
Throughout this year, management announced layoffs in a bid to improve profitability. Naturally, the price hikes align with this goal. However, the move may be a double-edged sword as it may alienate consumers for the same reason why Spotify made the decision: an ambiguous economic backdrop.
Analysts Remain Optimistic
For now, analysts remain bullish on SPOT stock, pegging shares a consensus moderate buy. This assessment breaks down as 17 buys, seven holds and zero sells. However, the average price target lands at $171.75, representing only 5% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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The post SPOT Stock Falls 5% as Spotify Hikes Prices 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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Per Reuters, rival services by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) have all issued price hikes this year. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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Per Reuters, rival services by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) have all issued price hikes this year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of audio streaming and media services provider Spotify (NYSE:SPOT) hit a snag on Monday as management announced price hikes for its premium subscription plans. Analysts Remain Optimistic For now, analysts remain bullish on SPOT stock, pegging shares a consensus moderate buy.
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Per Reuters, rival services by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) have all issued price hikes this year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of audio streaming and media services provider Spotify (NYSE:SPOT) hit a snag on Monday as management announced price hikes for its premium subscription plans. According to a Reuters report, Spotify earlier today raised prices across several countries, including the U.S. and the U.K. “The move will result in a $1 price increase for Spotify’s U.S. plans, with the premium single now starting at $10.99, duo at $14.99, family at $16.99 and the student plan at $5.99,” the news agency stated.
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Per Reuters, rival services by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) have all issued price hikes this year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Shares of audio streaming and media services provider Spotify (NYSE:SPOT) hit a snag on Monday as management announced price hikes for its premium subscription plans. SPOT Stock Slipped as the Industry Faces Tough Decisions In all fairness, it would be inaccurate to characterize SPOT stock as a troubled investment.
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14737.0
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2023-07-24 00:00:00 UTC
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These 3 Music Streaming Services Have All Announced Price Hikes. Is Spotify Next?
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AAPL
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https://www.nasdaq.com/articles/these-3-music-streaming-services-have-all-announced-price-hikes.-is-spotify-next
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nan
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nan
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Music listeners are paying more to stream their favorite hits today than they were just a year ago. Unless they listen on Spotify (NYSE: SPOT), that is.
YouTube Music is the latest streaming service to raise prices, asking customers to pay $1 more per month. The new $10.99 per month price tag from the Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) company matches the pricing levels of Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) after their music services performed price hikes in October and January, respectively.
Meanwhile, Spotify continues to charge U.S. listeners just $9.99 per month for an individual plan. Should investors expect the streaming music leader to follow suit?
A long-awaited price hike
Investors have been expecting a U.S. price hike from Spotify since it reported its third-quarter earnings last year. They may be waiting a bit longer still.
CEO Daniel Ek said increasing prices in the U.S. is something he'd like to do during the third-quarterearnings calllast fall. Before they could push through a price hike, though, they'd need new deals with the record labels, either label-by-label or with the Recording Industry Association of America (RIAA) as a whole.
No such deal has materialized so far. Or, if it has, management is holding back on the price hike. And it has a good reason to wait.
Spotify's adding tens of millions of new users
Spotify is adding more users than it ever has before.
Its total monthly active users grew by 33 million in the fourth quarter and another 26 million in the first quarter (both new records at the time). Paid subscribers are up 15 million over the last six months, surpassing expectations. For the last five quarters, Spotify has seen accelerating user growth.
And North America has played a substantial role in that growth. The region accounted for 39% of premium subscribers in the first quarter of 2022, and it accounted for the same percentage at the end of the first quarter of 2023.
That is to say, the U.S. is still adding a lot of new paid users. That's something Ek noted the company could benefit from as competitors raised prices. Spotify already has industry-leading subscriber churn rates. If the competition is charging more, it's even less likely a subscriber will cancel and go to another service. Spotify's low subsciption price looks like a significant business advantage.
A price hike will come
It's unlikely Spotify will be able to justify keeping its price at $9.99 per month indefinitely. Pressure from both labels and investors will ultimately lead to an increase for U.S. subscribers.
When Spotify does raise prices -- after seeing the beginnings of slowing subscriber growth in the U.S., perhaps -- it should provide a meaningful boost to its gross margin. While the streamer will likely have to pay about two-thirds of revenue to the labels and songwriters, it won't incur any additional operating expenses. As such, a price hike will push the music-streaming business closer to management's long-term goal of a 30% gross margin.
But the longer Spotify waits to raise prices, the more market share it can grab from the big tech companies it's competing against. It's seemingly already seeing benefits in the two quarters it's reported since Apple first made its Apple Music price hike. Investors should look for that trend to continue when Spotify reports its second-quarter numbers.
Despite Spotify stock's run-up in price this year, its EV/Sales ratio of about 2.5 is still around the lows it saw in 2019. And with the strong potential for revenue acceleration and margin expansion on the horizon, it looks like there's still an opportunity to add Spotify to your portfolio.
10 stocks we like better than Spotify Technology
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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. Adam Levy has positions in Alphabet, Amazon.com, and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Spotify Technology. 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 new $10.99 per month price tag from the Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) company matches the pricing levels of Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) after their music services performed price hikes in October and January, respectively. While the streamer will likely have to pay about two-thirds of revenue to the labels and songwriters, it won't incur any additional operating expenses. But the longer Spotify waits to raise prices, the more market share it can grab from the big tech companies it's competing against.
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The new $10.99 per month price tag from the Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) company matches the pricing levels of Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) after their music services performed price hikes in October and January, respectively. A long-awaited price hike Investors have been expecting a U.S. price hike from Spotify since it reported its third-quarter earnings last year. Spotify's adding tens of millions of new users Spotify is adding more users than it ever has before.
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The new $10.99 per month price tag from the Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) company matches the pricing levels of Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) after their music services performed price hikes in October and January, respectively. A long-awaited price hike Investors have been expecting a U.S. price hike from Spotify since it reported its third-quarter earnings last year. A price hike will come It's unlikely Spotify will be able to justify keeping its price at $9.99 per month indefinitely.
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The new $10.99 per month price tag from the Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) company matches the pricing levels of Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) after their music services performed price hikes in October and January, respectively. A long-awaited price hike Investors have been expecting a U.S. price hike from Spotify since it reported its third-quarter earnings last year. For the last five quarters, Spotify has seen accelerating user growth.
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14738.0
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2023-07-24 00:00:00 UTC
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If You Can Only Buy One 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-stock-it-better-be-one-of-these-3-names
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Every investment you make should be your single best stock to buy. Just 14 stocks account for over 90% of Berkshire Hathaway‘s (NYSE:BRK-A, NYSE:BRK-B) $377 billion investment portfolio. Warren Buffett lives by what he calls his “20-slot rule” and you should too. The 20-slot rule has investors imagine they get a stock investment punch card that has only 20 slots available. After making 20 investments, they can’t make anymore. Such an exercise really focuses your mind to only choosing the best stocks to buy.
“You’d really have to think carefully about what you did,” Buffett said. “And you’d be forced to load up on what you really think about. So you’d do much better.”
So, if you think of your next investment as one of only a handful you can buy in your lifetime, it should probably be one of these three stocks.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple (NASDAQ:AAPL) is certainly one that Buffett likely believes everyone should own. It is his single biggest investment that represents more than 46% of Berkshire Hathaway’s portfolio – and there’s solid reasoning behind such a large bet.
Although products generate the most revenue, services are the most profitable. iPhones, Macs and other hardlines had 36% gross margins on $74 billion in sales. The App Store, Apple Music, Apple Pay and iCloud had $21 billion in sales, but margins of 71%. Services growth is where Apple’s future lies.
But don’t ignore the growth in products, because they fuel the services business. The iPhone in particular is a massive driving force. Wall Street often gets it wrong when it comes to predicting the lifespan of Apple’s premiere product. Yet there is plenty more to come and at least one analyst sees that Apple is one of the best stocks to buy.
Wedbush Securities analyst, Dan Ives, predicts Apple is poised to benefit from another major upgrade cycle. He estimates there are 250 million iPhones that have not been upgraded in the past four years. The next iteration of the iPhone will drive consumers to purchase a new one. They will also likely pay more for the device, boosting Apple’s revenue and profits. Ives also predicts services will soon be a $100 billion business for Apple.
Apple’s stock is not cheap on traditional metrics like price-to-earnings or price-to-sales. The tech giant, though, has rarely been a discounted stock. However the opportunity for growth remains clear for the foreseeable future. Apple is one of the best single investment stocks you can buy today.
Genuine Parts (GPC)
Source: Shutterstock
Auto parts retailer Genuine Parts (NYSE:GPC) may seem an odd choice for a must-own stock. This boring company owns the 9,600-store NAPA Auto Parts chain. It also owns an industrial replacement parts and supplies distribution business serving repair shops, service stations and fleet operators. It may seem lackluster, but it’s actually one of the best stocks to buy.
Genuine Parts was founded in 1928. It survived recessions and depressions, world wars, political upheavals, natural disasters and a global pandemic or two. It also paid a dividend for 75 years. Genuine Parts has raised the payout for 67 consecutive years. That makes it a Dividend King, a small, select group of stocks that increased their dividend for 50 years or more.
The retailer is benefitting from unique circumstances in the auto industry. There remains a critical shortage of parts and labor at vehicle manufacturers. Fewer vehicles are making it to dealer lots, forcing consumers to keep their existing vehicles on the road longer. That increases demand for replacement parts, thereby allowing Genuine Parts to raise its prices.
Genuine Parts reported record second quarter sales of $5.9 billion last week. It generated adjusted profits of $2.44 per share, up 11% from last year. The retailer also raised full-year earnings guidance from a range of $8.95 to $9.10 per share to $9.15 to $9.30 per share.
Genuine Parts trades at 15 times next year’s earnings and for a fraction of sales. With a dividend payout ratio of just 44%, there’s plenty of safety built in with more room for further increases.
SPDR S&P 500 ETF Trust (SPY)
Source: Immersion Imagery / Shutterstock
Arguably even more head-scratching than Genuine Parts for inclusion on this list is the SPDR S&P 500 ETF Trust (NYSEARCA:SPY). Yet the exchange traded fund is here because of its superior historical performance. Over rolling 20-year periods for the past century, it never had a losing year.
According to data from Crestmont Research, between 1900 and 2023 the SPDR ETF enjoyed 104 consecutive years of positive returns for investors. It analyzed the rolling 20-year total returns, including dividends paid. So long as an investor held and didn’t sell, they would never have a year of negative returns.
It goes to show the old adage that the plain vanilla choice of investing — the S&P 500 index — is still the best option for most investors. Buy it, set it and forget it.
The S&P 500 was not actually created until 1957. Crestmont Research had to look at other indexes with similar components that did exist back then. It was able to extrapolate their data and estimate the hypothetical returns going back to the start of the century.
Perhaps even better for investors, though, is that today’s stock market is much different than it was back in 1900 — or even 1957 for that matter. More current returns are even better. That’s why I say that for the vast majority of investors the SPDR 500 ETF Trust is one of the best stocks to buy.
On the date of publication, Rich Duprey held a LONG position in GPC stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post If You Can Only Buy One 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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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is certainly one that Buffett likely believes everyone should own. It also owns an industrial replacement parts and supplies distribution business serving repair shops, service stations and fleet operators. 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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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is certainly one that Buffett likely believes everyone should own. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Every investment you make should be your single best stock to buy. Genuine Parts (GPC) Source: Shutterstock Auto parts retailer Genuine Parts (NYSE:GPC) may seem an odd choice for a must-own stock.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is certainly one that Buffett likely believes everyone should own. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Every investment you make should be your single best stock to buy. Apple is one of the best single investment stocks you can buy today.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is certainly one that Buffett likely believes everyone should own. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Every investment you make should be your single best stock to buy. Apple is one of the best single investment stocks you can buy today.
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14739.0
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2023-07-24 00:00:00 UTC
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Deutsche Bank Maintains Apple (AAPL) Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/deutsche-bank-maintains-apple-aapl-buy-recommendation-1
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nan
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Fintel reports that on July 24, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 0.16% Upside
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 an increase of 0.16% from its latest reported closing price of 191.94.
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 6390 funds or institutions reporting positions in Apple. This is a decrease of 15 owner(s) or 0.23% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.91%, an increase of 45.88%. Total shares owned by institutions increased in the last three months by 37.90% to 14,010,479K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.82% 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 2.96% 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 2.21% 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 1.81% 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 1.49% 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 24, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.91%, an increase of 45.88%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on July 24, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.91%, an increase of 45.88%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on July 24, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.91%, an increase of 45.88%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on July 24, 2023, Deutsche Bank maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.91%, an increase of 45.88%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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14740.0
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2023-07-24 00:00:00 UTC
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Taiwan Semiconductor Stock (NYSE:TSM): Great Value after Its Q2 Dip
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AAPL
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https://www.nasdaq.com/articles/taiwan-semiconductor-stock-nyse%3Atsm%3A-great-value-after-its-q2-dip
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nan
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nan
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Shares of Taiwan Semiconductor (NYSE:TSM) dipped by about 5% last Thursday following the company's Q2 report, with results coming in somewhat mixed. Specifically, the semiconductor manufacturing giant is currently facing several industry headwinds, resulting in shaky demand dynamics that have, in turn, negatively affected its short-term financials.
Although Taiwan Semiconductor may continue to face such pressure for the remainder of the current year, substantial improvements are anticipated starting next year. The semiconductor industry is expected to experience a vigorous rebound in earnings as macroeconomic uncertainties gradually ease, revitalizing demand for semiconductors.
Overall, I believe that shares of Taiwan Semiconductor appear heavily discounted against the company's future earnings growth estimates, likely signaling a buying opportunity following the recent dip. Accordingly, I am bullish on TSM stock.
What is Currently Negatively Affecting TSM's Operations?
TSM's operations have faced several challenges lately due to the semiconductor industry's undergoing a down cycle. As the leading semiconductor foundry, TSM plays a crucial role in enabling the world's largest technology companies, such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Qualcomm (NASDAQ:QCOM), and Advanced Micro Devices (NASDAQ:AMD), to bring their chips to life using its proprietary technology.
The current short-term downturn can be attributed to a convergence of various factors, including surging inflation, geopolitical tensions, and the ongoing aftermath of the pandemic, during which consumers purchased electronic devices in bulk.
This complex interplay of these circumstances has resulted in heightened macroeconomic uncertainty, a decline in consumer spending, and notable fluctuations in the demand for semiconductors. Moreover, reduced spending on consumer electronics, such as PCs, smartphones, and tablets, has further contributed to a diminished demand for the semiconductors that power these devices, ultimately impacting TSM's performance.
Q2 Results: Financials Weighed Down by Macroeconomic Challenges
Due to the current challenges just mentioned, TSM's financials were weighted down in Q2. In particular, second-quarter revenue fell 6.2% sequentially or 13.7% year-over-year to $15.7 billion, with global economic conditions dampening end-market demand, which led to an unfavorable inventory adjustment by TSM's customers.
Gross margins also fell by 220 basis points sequentially to 54.1%, primarily reflecting lower capacity utilization and higher electricity costs. Thankfully, more rigorous cost control and a more favorable foreign exchange rate partially offset these challenges. Nevertheless, despite the industry's cyclical downturn, TSM continued to invest in R&D for its N3 and N2 technologies development, which further compressed operating margins by 350 basis points to 42%. As a result, EPADR (earnings per American Depositary Receipt) fell by 26.5% to $1.14 from last year.
Weak Performance to Persist This Year, but a Recovery Looms
A somewhat soft environment for semiconductors is expected to persist throughout the rest of this year. TSM's management expects Q3 revenues to land between $16.7 billion and $17.5 billion, which indicates a 9.2% sequential improvement but a year-over-year decline of 14.9% from last year's $20.2 billion.
Further, gross margins are expected to range between 51.5% and 53.5%, while operating margins should range between 38% and 40%. This indicates a further decline from last quarter's gross and operating margins of 54.1% and 42.0% and a steep drop from Q3-2022's gross and operating margins of 60.4% and 50.6%.
That said, TSM's performance is expected to improve in the near future as macro challenges ease, lifting the industry from its current downturn. Management noted their optimistic Q4 outlook during the postearnings call anticipating a substantial ramp-up of TSM's 3-nanometer production, which should boost gross margins by three to four percentage points from Q3. Additionally, management foresees a long-term gross margin of 53% and higher, indicating a potential recovery in profitability.
This theme is also reflected in Wall Street's estimates, which also seem to forecast a recovery in the semiconductor industry and, therefore, in TSM's revenues and profitability. While earnings per ADR are anticipated to be approximately 25% lower in Fiscal 2023 compared to the previous year, they are forecasted to make a robust rebound of 24% to reach $6.12 in Fiscal 2024. Moreover, earnings per ADR are expected to experience a significant increase of 34% to reach $8.19 in Fiscal 2025.
Such wild swings in profitability highlight TSM's highly-cyclical business model, serving as a reminder that this year's seemingly unfavorable results are typical market reactions and should not overly concern investors.
Is TSM Stock a Buy, According to Analysts?
Regarding Wall Street’s sentiment, Taiwan Semiconductor features a Strong Buy consensus rating based on four Buys and one Hold assigned in the past three months. At $125.00, the average TSM stock price target implies 27.2% upside potential.
Takeaway - A Discounted Valuation Relative to Earnings Growth Potential
While Taiwan Semiconductor stock faced a 5% dip following its admittedly mixed Q2 report, the company's short-term challenges are not unexpected given the cyclical nature of the semiconductor industry. As macroeconomic uncertainties gradually ease, a robust rebound is expected, which should result in a strong rebound in TSM's profitability.
In fact, based on Wall Street's estimates, the stock is currently trading at approximately 16 times its Fiscal 2024 expected EPADR and 11 times its Fiscal 2025 expected EPADR, presenting exceptionally attractive multiples for an industry behemoth like TSM, upon which a great chunk of the globe's semiconductor manufacturing capacity relies.
Consequently, I view the current dip in TSM stock as a compelling buying opportunity, given that shares seem heavily discounted when considering their earnings growth projections.
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 the leading semiconductor foundry, TSM plays a crucial role in enabling the world's largest technology companies, such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Qualcomm (NASDAQ:QCOM), and Advanced Micro Devices (NASDAQ:AMD), to bring their chips to life using its proprietary technology. The current short-term downturn can be attributed to a convergence of various factors, including surging inflation, geopolitical tensions, and the ongoing aftermath of the pandemic, during which consumers purchased electronic devices in bulk. In particular, second-quarter revenue fell 6.2% sequentially or 13.7% year-over-year to $15.7 billion, with global economic conditions dampening end-market demand, which led to an unfavorable inventory adjustment by TSM's customers.
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As the leading semiconductor foundry, TSM plays a crucial role in enabling the world's largest technology companies, such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Qualcomm (NASDAQ:QCOM), and Advanced Micro Devices (NASDAQ:AMD), to bring their chips to life using its proprietary technology. Takeaway - A Discounted Valuation Relative to Earnings Growth Potential While Taiwan Semiconductor stock faced a 5% dip following its admittedly mixed Q2 report, the company's short-term challenges are not unexpected given the cyclical nature of the semiconductor industry. As macroeconomic uncertainties gradually ease, a robust rebound is expected, which should result in a strong rebound in TSM's profitability.
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As the leading semiconductor foundry, TSM plays a crucial role in enabling the world's largest technology companies, such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Qualcomm (NASDAQ:QCOM), and Advanced Micro Devices (NASDAQ:AMD), to bring their chips to life using its proprietary technology. The semiconductor industry is expected to experience a vigorous rebound in earnings as macroeconomic uncertainties gradually ease, revitalizing demand for semiconductors. Takeaway - A Discounted Valuation Relative to Earnings Growth Potential While Taiwan Semiconductor stock faced a 5% dip following its admittedly mixed Q2 report, the company's short-term challenges are not unexpected given the cyclical nature of the semiconductor industry.
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As the leading semiconductor foundry, TSM plays a crucial role in enabling the world's largest technology companies, such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Qualcomm (NASDAQ:QCOM), and Advanced Micro Devices (NASDAQ:AMD), to bring their chips to life using its proprietary technology. Although Taiwan Semiconductor may continue to face such pressure for the remainder of the current year, substantial improvements are anticipated starting next year. In fact, based on Wall Street's estimates, the stock is currently trading at approximately 16 times its Fiscal 2024 expected EPADR and 11 times its Fiscal 2025 expected EPADR, presenting exceptionally attractive multiples for an industry behemoth like TSM, upon which a great chunk of the globe's semiconductor manufacturing capacity relies.
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14741.0
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2023-07-24 00:00:00 UTC
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Nasdaq-100 Rebalance: What ETF Investors Should Know
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AAPL
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https://www.nasdaq.com/articles/nasdaq-100-rebalance%3A-what-etf-investors-should-know
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nan
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nan
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The stock market rally this year has been driven mainly by the "Magnificent Seven" stocks. Nvidia NVDA has more than tripled, while Meta META and Tesla TSLA have more than doubled year-to-date. The tech-heavy Nasdaq 100 index has surged over 40% this year, leading to these seven stocks accounting for over 55% of the index.
The index includes the 100 largest non-financial companies that trade on the exchange and is tracked by funds with about $300 billion AUM globally, including the ultra-popular Invesco QQQ QQQ and its cheaper alternative, NASDAQ 100 ETF ETF QQQM.
The benchmark follows a modified market capitalization-weighted methodology. According to the index rules, constituents with weights exceeding 4.5% collectively cannot account for more than 48% of the index.
In the event these limits are exceeded, the index undergoes a Special Rebalance. The third Special Rebalance took effect before the market opened on July 24th. The previous two rebalances were carried out in 1998 and 2011.
As a result of the Special Rebalance, the combined weight of the seven biggest stocks was reduced to about 43% from over 55%. Microsoft MSFT and Nvidia experienced the most significant cuts, each down about 3%, while Apple AAPL regained the top spot with a relatively small decrease of 1%. Broadcom AVGO saw the biggest increase in weighting, rising from 2.5% to 3.1%.
To learn more, please watch the short video above.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
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Invesco QQQ (QQQ): ETF Research Reports
Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports
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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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Microsoft MSFT and Nvidia experienced the most significant cuts, each down about 3%, while Apple AAPL regained the top spot with a relatively small decrease of 1%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The index includes the 100 largest non-financial companies that trade on the exchange and is tracked by funds with about $300 billion AUM globally, including the ultra-popular Invesco QQQ QQQ and its cheaper alternative, NASDAQ 100 ETF ETF QQQM.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Microsoft MSFT and Nvidia experienced the most significant cuts, each down about 3%, while Apple AAPL regained the top spot with a relatively small decrease of 1%. The index includes the 100 largest non-financial companies that trade on the exchange and is tracked by funds with about $300 billion AUM globally, including the ultra-popular Invesco QQQ QQQ and its cheaper alternative, NASDAQ 100 ETF ETF QQQM.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Microsoft MSFT and Nvidia experienced the most significant cuts, each down about 3%, while Apple AAPL regained the top spot with a relatively small decrease of 1%. The tech-heavy Nasdaq 100 index has surged over 40% this year, leading to these seven stocks accounting for over 55% of the index.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Microsoft MSFT and Nvidia experienced the most significant cuts, each down about 3%, while Apple AAPL regained the top spot with a relatively small decrease of 1%. The stock market rally this year has been driven mainly by the "Magnificent Seven" stocks.
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14742.0
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2023-07-24 00:00:00 UTC
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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-outpaces-stock-market-gains%3A-what-you-should-know-16
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nan
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nan
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Apple (AAPL) closed at $192.75 in the latest trading session, marking a +0.42% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 10.86%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 2.82% over the past month. This has outpaced the Computer and Technology sector's gain of 2.6% and lagged the S&P 500's gain of 3.98% in that time.
Apple will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. The company is expected to report EPS of $1.20, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $81.21 billion, down 2.11% from the year-ago period.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $384.52 billion. These results would represent year-over-year changes of -1.8% and -2.49%, respectively.
It is also important to note the recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Apple currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 32.01. Its industry sports an average Forward P/E of 9.64, so we one might conclude that Apple is trading at a premium comparatively.
Investors should also note that AAPL has a PEG ratio of 2.53 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Mini computers was holding an average PEG ratio of 2.41 at yesterday's closing price.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) closed at $192.75 in the latest trading session, marking a +0.42% move from the prior day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $384.52 billion. Investors should also note that AAPL has a PEG ratio of 2.53 right now.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) closed at $192.75 in the latest trading session, marking a +0.42% move from the prior day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $384.52 billion.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) closed at $192.75 in the latest trading session, marking a +0.42% move from the prior day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $384.52 billion.
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Apple (AAPL) closed at $192.75 in the latest trading session, marking a +0.42% move from the prior day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $384.52 billion. Investors should also note that AAPL has a PEG ratio of 2.53 right now.
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14743.0
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2023-07-24 00:00:00 UTC
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Apple faces $1 bln UK lawsuit by apps developers over app store fees
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AAPL
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https://www.nasdaq.com/articles/apple-faces-%241-bln-uk-lawsuit-by-apps-developers-over-app-store-fees
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nan
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nan
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By Foo Yun Chee
BRUSSELS, July 25 (Reuters) - Apple AAPL.O on Tuesday found itself the target of a 785-million-pound ($1 billion) class action lawsuit brought by more than 1,500 apps developers in the UK over its App Store fees.
Apple's services business, which includes the App Store, has seen revenues grow at a rapid pace in the last few years and now hovers around $20 billion per quarter.
However, the commissions of 15% to 30% that the company charges some app makers for use of an in-app payment system has been criticised by apps developers and targeted by antitrust regulators in several countries.
Apple has previously said that 85% of developers on the App Store do not pay any commission and that it helps European developers to access markets and customers in 175 countries around the world through the App Store.
The UK lawsuit at the Competition Appeal Tribunal is being brought by Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia and a former economist at the OECD, on behalf of 1,566 app developers.
He is being advised by law firm Geradin Partners.
"Apple's charges to app developers are excessive, and only possible due to its monopoly on the distribution of apps onto iPhones and iPads," Ennis said in a statement.
"The charges are unfair in their own right, and constitute abusive pricing. They harm app developers and also app buyers."
($1 = 0.7802 pounds)
(Reporting by Foo Yun Chee; Editing by Aurora Ellis)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.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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By Foo Yun Chee BRUSSELS, July 25 (Reuters) - Apple AAPL.O on Tuesday found itself the target of a 785-million-pound ($1 billion) class action lawsuit brought by more than 1,500 apps developers in the UK over its App Store fees. Apple's services business, which includes the App Store, has seen revenues grow at a rapid pace in the last few years and now hovers around $20 billion per quarter. The UK lawsuit at the Competition Appeal Tribunal is being brought by Sean Ennis, a professor at the Centre for Competition Policy at the University of East Anglia and a former economist at the OECD, on behalf of 1,566 app developers.
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By Foo Yun Chee BRUSSELS, July 25 (Reuters) - Apple AAPL.O on Tuesday found itself the target of a 785-million-pound ($1 billion) class action lawsuit brought by more than 1,500 apps developers in the UK over its App Store fees. "Apple's charges to app developers are excessive, and only possible due to its monopoly on the distribution of apps onto iPhones and iPads," Ennis said in a statement. ($1 = 0.7802 pounds) (Reporting by Foo Yun Chee; Editing by Aurora Ellis) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.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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By Foo Yun Chee BRUSSELS, July 25 (Reuters) - Apple AAPL.O on Tuesday found itself the target of a 785-million-pound ($1 billion) class action lawsuit brought by more than 1,500 apps developers in the UK over its App Store fees. Apple has previously said that 85% of developers on the App Store do not pay any commission and that it helps European developers to access markets and customers in 175 countries around the world through the App Store. "Apple's charges to app developers are excessive, and only possible due to its monopoly on the distribution of apps onto iPhones and iPads," Ennis said in a statement.
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By Foo Yun Chee BRUSSELS, July 25 (Reuters) - Apple AAPL.O on Tuesday found itself the target of a 785-million-pound ($1 billion) class action lawsuit brought by more than 1,500 apps developers in the UK over its App Store fees. Apple's services business, which includes the App Store, has seen revenues grow at a rapid pace in the last few years and now hovers around $20 billion per quarter. However, the commissions of 15% to 30% that the company charges some app makers for use of an in-app payment system has been criticised by apps developers and targeted by antitrust regulators in several countries.
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14744.0
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2023-07-24 00:00:00 UTC
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Is ProShares S&P Technology Dividend Aristocrats ETF (TDV) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-proshares-sp-technology-dividend-aristocrats-etf-tdv-a-strong-etf-right-now
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nan
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nan
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Making its debut on 11/05/2019, smart beta exchange traded fund ProShares S&P Technology Dividend Aristocrats ETF (TDV) provides investors broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Proshares. It has amassed assets over $200.64 million, making it one of the average sized ETFs in the Technology ETFs. TDV, before fees and expenses, seeks to match the performance of the S&P TECHNOLOGY DIVIDEND ARISTOCRATS INDX.
The S&P Technology Dividend Aristocrats Index targets companies from information technology, internet and direct marketing retail, interactive home entertainment, and interactive media and services segments of the economy.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.45%, making it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 1.30%.
Performance and Risk
So far this year, TDV return is roughly 21.29%, and it's up approximately 16.92% in the last one year (as of 07/24/2023). During this past 52-week period, the fund has traded between $49.99 and $67.53.
TDV has a beta of 1.05 and standard deviation of 20.78% for the trailing three-year period. With about 40 holdings, it has more concentrated exposure than peers.
Alternatives
ProShares S&P Technology Dividend Aristocrats ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $24.51 billion in assets, Vanguard Dividend Appreciation ETF has $70.83 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting.
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Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $24.51 billion in assets, Vanguard Dividend Appreciation ETF has $70.83 billion.
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Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 11/05/2019, smart beta exchange traded fund ProShares S&P Technology Dividend Aristocrats ETF (TDV) provides investors broad exposure to the Technology ETFs category of the market. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index.
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Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 11/05/2019, smart beta exchange traded fund ProShares S&P Technology Dividend Aristocrats ETF (TDV) provides investors broad exposure to the Technology ETFs category of the market. TDV, before fees and expenses, seeks to match the performance of the S&P TECHNOLOGY DIVIDEND ARISTOCRATS INDX.
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14745.0
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2023-07-24 00:00:00 UTC
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Driven by AI boom, TSMC to invest $2.9 bln in advanced chip plant in Taiwan
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AAPL
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https://www.nasdaq.com/articles/driven-by-ai-boom-tsmc-to-invest-%242.9-bln-in-advanced-chip-plant-in-taiwan
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nan
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nan
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By Sarah Wu and Yimou Lee
TAIPEI, July 25 (Reuters) - Driven by a surge in demand for artificial intelligence, Taiwanese chip maker TSMC 2330.TW plans to invest nearly T$90 billion ($2.87 billion) in an advanced packaging facility in northern Taiwan, the company said on Tuesday.
"To meet market needs, TSMC is planning to establish an advanced packaging fab in the Tongluo Science Park," the company said in a statement.
CEO C.C. Wei said last week that TSMC is unable to fulfil customer demand driven by the AI boom and plans to roughly double its capacity for advanced packaging - which involves placing multiple chips into a single device, lowering the added cost of more powerful computing.
For advanced packaging, especially TSMC's chip on wafer on substrate (CoWoS), capacity is "very tight," Wei said after the company reported a 23% fall in second-quarter profit.
"We are increasing our capacity as quickly as possible. We expect this tightening will be released next year, probably towards the end of next year."
The world's largest contract chipmaker said TSMC's position as the leading manufacturer of AI chips - including for chip designers Nvidia Corp NVDA.O and Advanced Micro Devices AMD.O - has not offset broader end market weakness as the global economy recovers more slowly than it had expected.
The Tongluo Science Park administration has officially approved TSMC's application to lease land, the company said, adding the new plant in the northern county of Miaoli would create about 1500 jobs.
Even as the leading Apple AAPL.O supplier ramps up its expansion abroad, it plans to keep its most advanced chip technology in Taiwan, a global powerhouse in manufacturing semiconductors that power everything from smartphones to electric vehicles.
($1 = 31.3230 Taiwan dollars)
(Reporting by Sarah Wu and Yimou Lee; Editing by Kim Coghill and Jamie Freed)
((s.wu@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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Even as the leading Apple AAPL.O supplier ramps up its expansion abroad, it plans to keep its most advanced chip technology in Taiwan, a global powerhouse in manufacturing semiconductors that power everything from smartphones to electric vehicles. Wei said last week that TSMC is unable to fulfil customer demand driven by the AI boom and plans to roughly double its capacity for advanced packaging - which involves placing multiple chips into a single device, lowering the added cost of more powerful computing. The Tongluo Science Park administration has officially approved TSMC's application to lease land, the company said, adding the new plant in the northern county of Miaoli would create about 1500 jobs.
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Even as the leading Apple AAPL.O supplier ramps up its expansion abroad, it plans to keep its most advanced chip technology in Taiwan, a global powerhouse in manufacturing semiconductors that power everything from smartphones to electric vehicles. By Sarah Wu and Yimou Lee TAIPEI, July 25 (Reuters) - Driven by a surge in demand for artificial intelligence, Taiwanese chip maker TSMC 2330.TW plans to invest nearly T$90 billion ($2.87 billion) in an advanced packaging facility in northern Taiwan, the company said on Tuesday. "To meet market needs, TSMC is planning to establish an advanced packaging fab in the Tongluo Science Park," the company said in a statement.
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Even as the leading Apple AAPL.O supplier ramps up its expansion abroad, it plans to keep its most advanced chip technology in Taiwan, a global powerhouse in manufacturing semiconductors that power everything from smartphones to electric vehicles. By Sarah Wu and Yimou Lee TAIPEI, July 25 (Reuters) - Driven by a surge in demand for artificial intelligence, Taiwanese chip maker TSMC 2330.TW plans to invest nearly T$90 billion ($2.87 billion) in an advanced packaging facility in northern Taiwan, the company said on Tuesday. Wei said last week that TSMC is unable to fulfil customer demand driven by the AI boom and plans to roughly double its capacity for advanced packaging - which involves placing multiple chips into a single device, lowering the added cost of more powerful computing.
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Even as the leading Apple AAPL.O supplier ramps up its expansion abroad, it plans to keep its most advanced chip technology in Taiwan, a global powerhouse in manufacturing semiconductors that power everything from smartphones to electric vehicles. By Sarah Wu and Yimou Lee TAIPEI, July 25 (Reuters) - Driven by a surge in demand for artificial intelligence, Taiwanese chip maker TSMC 2330.TW plans to invest nearly T$90 billion ($2.87 billion) in an advanced packaging facility in northern Taiwan, the company said on Tuesday. "To meet market needs, TSMC is planning to establish an advanced packaging fab in the Tongluo Science Park," the company said in a statement.
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14746.0
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2023-07-24 00:00:00 UTC
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Apple's AI Plans Are Bigger Than You Think
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AAPL
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https://www.nasdaq.com/articles/apples-ai-plans-are-bigger-than-you-think
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nan
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nan
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New reports show that Apple (NASDAQ: AAPL) is testing its own ChatGPT-style product, and with a single launch it could reach over a billion users. Better yet, Apple can now lean on open-source models. In this video, Travis Hoium digs into what we know and how Apple is well positioned in AI.
*Stock prices used were end-of-day prices of July 20, 2023. The video was published on July 21, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 17, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms. 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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New reports show that Apple (NASDAQ: AAPL) is testing its own ChatGPT-style product, and with a single launch it could reach over a billion users. 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 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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New reports show that Apple (NASDAQ: AAPL) is testing its own ChatGPT-style product, and with a single launch it could reach over a billion users. 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 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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New reports show that Apple (NASDAQ: AAPL) is testing its own ChatGPT-style product, and with a single launch it could reach over a billion users. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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New reports show that Apple (NASDAQ: AAPL) is testing its own ChatGPT-style product, and with a single launch it could reach over a billion users. In this video, Travis Hoium digs into what we know and how Apple is well positioned in AI. That's right -- they think these 10 stocks are even better buys.
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14747.0
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2023-07-24 00:00:00 UTC
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Monday's ETF with Unusual Volume: RPG
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AAPL
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https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-rpg
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nan
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nan
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The Invesco S&P 500— Pure Growth ETF is seeing unusually high volume in afternoon trading Monday, with over 155,000 shares traded versus three month average volume of about 31,000. Shares of RPG were up about 0.6% on the day.
Components of that ETF with the highest volume on Monday were Apple, trading up about 0.6% with over 23.1 million shares changing hands so far this session, and Pfizer, up about 0.7% on volume of over 8.4 million shares. Freeport-mcmoran is the component faring the best Monday, up by about 3.6% on the day, while Gilead Sciences is lagging other components of the Invesco S&P 500— Pure Growth ETF, trading lower by about 3.7%.
VIDEO: Monday's ETF with Unusual Volume: RPG
The views and 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 S&P 500— Pure Growth ETF is seeing unusually high volume in afternoon trading Monday, with over 155,000 shares traded versus three month average volume of about 31,000. Components of that ETF with the highest volume on Monday were Apple, trading up about 0.6% with over 23.1 million shares changing hands so far this session, and Pfizer, up about 0.7% on volume of over 8.4 million shares. VIDEO: Monday's ETF with Unusual Volume: RPG The views and 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 S&P 500— Pure Growth ETF is seeing unusually high volume in afternoon trading Monday, with over 155,000 shares traded versus three month average volume of about 31,000. Freeport-mcmoran is the component faring the best Monday, up by about 3.6% on the day, while Gilead Sciences is lagging other components of the Invesco S&P 500— Pure Growth ETF, trading lower by about 3.7%. VIDEO: Monday's ETF with Unusual Volume: RPG The views and 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 S&P 500— Pure Growth ETF is seeing unusually high volume in afternoon trading Monday, with over 155,000 shares traded versus three month average volume of about 31,000. Components of that ETF with the highest volume on Monday were Apple, trading up about 0.6% with over 23.1 million shares changing hands so far this session, and Pfizer, up about 0.7% on volume of over 8.4 million shares. Freeport-mcmoran is the component faring the best Monday, up by about 3.6% on the day, while Gilead Sciences is lagging other components of the Invesco S&P 500— Pure Growth ETF, trading lower by about 3.7%.
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Components of that ETF with the highest volume on Monday were Apple, trading up about 0.6% with over 23.1 million shares changing hands so far this session, and Pfizer, up about 0.7% on volume of over 8.4 million shares. Freeport-mcmoran is the component faring the best Monday, up by about 3.6% on the day, while Gilead Sciences is lagging other components of the Invesco S&P 500— Pure Growth ETF, trading lower by about 3.7%. VIDEO: Monday's ETF with Unusual Volume: RPG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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14748.0
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2023-07-24 00:00:00 UTC
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9% of Warren Buffett's Portfolio Is Invested in These 2 Offbeat Stocks
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AAPL
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https://www.nasdaq.com/articles/9-of-warren-buffetts-portfolio-is-invested-in-these-2-offbeat-stocks
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nan
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nan
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Warren Buffett's track record as an investor over the decades is so strong that he's often considered to be the most popular investor of all time. Sample this: Between 1964 and 2022, Class A shares of his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) generated a total return of 3,787,464%. The S&P 500, meanwhile, gained 24,708% during the period, including dividends.
Buffett owns many stocks through Berkshire, which is why beginner and seasoned investors alike often track his portfolio, especially his largest holdings. Although Apple alone constitutes almost 46% of Buffett's $372 billion portfolio, the bulk of the remaining investment is in 7 stocks, with each constituting 2% or more of his portfolio. Of these, only two oil stocks made the list, and combined, they make up 9% of his holdings.
He typically invests in stable, boring businesses, and the oil and gas industry is anything but stable given the volatility in commodity prices. Back in 2020, Buffett even admitted that an investment in an oil production company is merely an "investment that depends on the price of oil."
The sector is an offbeat investment for him, but there's a reason he chose two particular oil and gas stocks to pump billions of dollars into.
Warren Buffett. Image source: The Motley Fool.
A top-notch dividend growth stock
Chevron (NYSE: CVX) is one of the largest integrated energy companies in the world, and the second-largest energy company in the U.S. in terms of market capitalization. Buffett and his team first bought shares of Chevron in the third quarter of 2020 amid the stock's sell-off. Although they have trimmed their position in recent months, Chevron is still the fifth-largest holding in Berkshire's portfolio, at 5.5%.
Buffett loves financially strong companies with consistently growing cash flows and return on capital. And 2022 was a banner year for Chevron, with its earnings and cash flow hitting all-time highs, driven by record U.S. oil production. Chevron's return on capital employed of 20.3% last year was also its highest since 2011.
Buffett loves a consistent dividend policy, and several of the stocks he owns have been growing their dividends for years now. Chevron increased its dividend for the 36th straight year in early 2023. Its dividend growth in the past five years has also outpaced that of rival ExxonMobil (NYSE: XOM), the only other oil stock with a streak of consecutive annual dividend increases that is longer than 25 years.
Strong financials, regular and growing dividends, and a target to grow free cash flow at an average annual rate of 10% or more through 2027 are some of the reasons Chevron stock could remain a steady holding in Buffett's portfolio.
This Buffett oil stock is hugely diversified
If there's one stock that Buffett has been buying hand over fist in recent months, it's Occidental Petroleum (NYSE: OXY). He already owned warrants and preferred stock in Occidental before disclosing a position in its common stock in March last year. He has consistently bought Occidental shares since.
The latest filing from Berkshire Hathaway, as of this writing, shows that it bought another 2.1 million shares between June 26 and 28. Buffett now owns more than a 25% stake in Occidental, and the stock makes up 3.5% of his portfolio.
Although the company is one of the largest oil and gas producers in the U.S., it also operates a midstream and marketing segment that includes a low-carbon-ventures business focused on the carbon capture and sequestration (CCS) market. ExxonMobil estimates the CCS market to be worth $4 trillion by 2050.
Occidental also has a chemical subsidiary called OxyChem, an important cash generator that produces chemicals like chlorine and caustic soda that are used in several industries.
That makes Occidental one of the most diversified energy companies, and it's faring well: It earned record net income and a return on capital employed of 28% in 2022. Earlier this year, the company increased its dividend by 38%.
Last year, Berkshire received regulatory approval to buy a 50% stake in Occidental, fueling speculation that Buffett will eventually acquire the company. Although he ruled out that idea at Berkshire Hathaway's latest annual shareholder meeting, the stock looks like one that might have found an almost permanent place in his portfolio.
10 stocks we like better than Chevron
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 Chevron 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
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Chevron. 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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And 2022 was a banner year for Chevron, with its earnings and cash flow hitting all-time highs, driven by record U.S. oil production. That makes Occidental one of the most diversified energy companies, and it's faring well: It earned record net income and a return on capital employed of 28% in 2022. Last year, Berkshire received regulatory approval to buy a 50% stake in Occidental, fueling speculation that Buffett will eventually acquire the company.
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Sample this: Between 1964 and 2022, Class A shares of his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) generated a total return of 3,787,464%. A top-notch dividend growth stock Chevron (NYSE: CVX) is one of the largest integrated energy companies in the world, and the second-largest energy company in the U.S. in terms of market capitalization. Buffett loves financially strong companies with consistently growing cash flows and return on capital.
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Strong financials, regular and growing dividends, and a target to grow free cash flow at an average annual rate of 10% or more through 2027 are some of the reasons Chevron stock could remain a steady holding in Buffett's portfolio. This Buffett oil stock is hugely diversified If there's one stock that Buffett has been buying hand over fist in recent months, it's Occidental Petroleum (NYSE: OXY). See the 10 stocks *Stock Advisor returns as of July 17, 2023 Neha Chamaria has no position in any of the stocks mentioned.
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Buffett loves a consistent dividend policy, and several of the stocks he owns have been growing their dividends for years now. Buffett now owns more than a 25% stake in Occidental, and the stock makes up 3.5% of his portfolio. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway.
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14749.0
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2023-07-24 00:00:00 UTC
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Are You Ready for a Small Cap Surge?
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AAPL
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https://www.nasdaq.com/articles/are-you-ready-for-a-small-cap-surge
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
You may have noticed. The 2023 stock market rally has been very unbalanced. The so-called Magnificent 7 mega-cap tech stocks – Meta (META), Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Tesla (TSLA), and Nvidia (NVDA) – are up nearly 60% so far this year.
The other 493 stocks in the S&P 500 are up just 4%.
It’s been a mega-cap tech-dominated stock market rally so far in 2023.
But we think that is about to change in a major way.
It isn’t unusual that large-cap stocks dominated the stock market rally in the first half of 2023. In fact, it is very normal.
We’re in a new bull market. There’s really no arguing that. The length and magnitude of this rally off October lows has no historical precedent as a bear market rally. It is 100% consistent with a new bull market.
And every new bull market starts with large caps.
That’s because at the start of new bull markets, investors start to become more confident; but they still remain largely cautious. Therefore, they aren’t willing to get too risky, so they buy only “safe stocks” – large caps.
This is Phase 1 of every new bull market – the Large-Cap Domination.
But at some point in every new bull market – usually about six to nine months after the market actually bottoms – we see a major shift.
Optimism and greed replace skepticism and caution. Folks start to take increasingly riskier bets. They leave the large-cap stocks and start piling into small caps.
This is Phase 2 of every new bull market – the small cap surge.
And we’re about to enter Phase 2 of this new bull market.
The Small Cap Shift
Typically, the bull market shift starts once small caps start to meaningfully outperform large-cap stocks. This is best captured by a steep drop in the S&P 500 to Russell 2000 performance ratio.
Such a steep drop happened in December 1990, three months after the stock market bottomed and right before small caps surged 340% higher over the next decade.
Another steep drop also happened in April 2003, seven months after the stock market bottomed from the dot-com crash and right before small-cap stocks surged 130% higher over the next few years.
It also happened in November 2009 (eight months after the stock market bottomed in the 2008 financial crisis) and September 2020 (six months after the stock market bottomed in the COVID crash). Each time, small caps soared over the next few months and years.
And this dynamic appears to be playing out again right now.
That is, the S&P 500 to Russell 2000 performance ratio dropped sharply in June. It has continued to drop in July.
This looks like this could be the start of a small-cap shift and subsequent surge.
We expect that in the second half of 2023, stocks will keep rallying very strongly. But the rally will look a lot different than the one we saw in the first half of the year.
Large-cap tech stocks will stall out. Small caps will soar.
This is a major shift.
And if you’re prepared for it, you could make a ton of money in small-cap stocks in the second half of this year.
The Final Word
What better way to play this shift than to invest in the tiny company that kick-started this whole stock market rally?
Since ChatGPT’s launch in November 2022, right around when stocks bottomed, AI stocks have been the market’s biggest winners.
ChatGPT is this stock market’s “firestarter,” if you will.
And I’ve unearthed a backdoor way to invest in it.
Click here to learn more.
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 Are You Ready for a Small Cap Surge? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The so-called Magnificent 7 mega-cap tech stocks – Meta (META), Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Tesla (TSLA), and Nvidia (NVDA) – are up nearly 60% so far this year. Such a steep drop happened in December 1990, three months after the stock market bottomed and right before small caps surged 340% higher over the next decade. The Final Word What better way to play this shift than to invest in the tiny company that kick-started this whole stock market rally?
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The so-called Magnificent 7 mega-cap tech stocks – Meta (META), Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Tesla (TSLA), and Nvidia (NVDA) – are up nearly 60% so far this year. The Small Cap Shift Typically, the bull market shift starts once small caps start to meaningfully outperform large-cap stocks. Such a steep drop happened in December 1990, three months after the stock market bottomed and right before small caps surged 340% higher over the next decade.
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The so-called Magnificent 7 mega-cap tech stocks – Meta (META), Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Tesla (TSLA), and Nvidia (NVDA) – are up nearly 60% so far this year. The Small Cap Shift Typically, the bull market shift starts once small caps start to meaningfully outperform large-cap stocks. Another steep drop also happened in April 2003, seven months after the stock market bottomed from the dot-com crash and right before small-cap stocks surged 130% higher over the next few years.
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The so-called Magnificent 7 mega-cap tech stocks – Meta (META), Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Tesla (TSLA), and Nvidia (NVDA) – are up nearly 60% so far this year. The other 493 stocks in the S&P 500 are up just 4%. But at some point in every new bull market – usually about six to nine months after the market actually bottoms – we see a major shift.
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14750.0
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2023-07-24 00:00:00 UTC
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Spotify raises prices for its premium plans in the US
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AAPL
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https://www.nasdaq.com/articles/spotify-raises-prices-for-its-premium-plans-in-the-us
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nan
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nan
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July 24 (Reuters) - Spotify Technology SPOT.N said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy.
Spotify, which competes with rival services from Apple AAPL.O and Amazon.com AMZN.O, has been under pressure to focus on profitability over user growth as recession-wary customers cut down on unnecessary spending.
The cost of Spotify's ad-free premium plans would now all be priced at an additional $1 with the premium single at $10.99, duo $14.99, family $16.99 and the student costing $5.99.
Shares of the company were up more than 1% in trading before the bell.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shailesh Kuber)
((Samrhitha.A@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Spotify, which competes with rival services from Apple AAPL.O and Amazon.com AMZN.O, has been under pressure to focus on profitability over user growth as recession-wary customers cut down on unnecessary spending. July 24 (Reuters) - Spotify Technology SPOT.N said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shailesh Kuber) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Spotify, which competes with rival services from Apple AAPL.O and Amazon.com AMZN.O, has been under pressure to focus on profitability over user growth as recession-wary customers cut down on unnecessary spending. July 24 (Reuters) - Spotify Technology SPOT.N said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy. The cost of Spotify's ad-free premium plans would now all be priced at an additional $1 with the premium single at $10.99, duo $14.99, family $16.99 and the student costing $5.99.
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Spotify, which competes with rival services from Apple AAPL.O and Amazon.com AMZN.O, has been under pressure to focus on profitability over user growth as recession-wary customers cut down on unnecessary spending. July 24 (Reuters) - Spotify Technology SPOT.N said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy. The cost of Spotify's ad-free premium plans would now all be priced at an additional $1 with the premium single at $10.99, duo $14.99, family $16.99 and the student costing $5.99.
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Spotify, which competes with rival services from Apple AAPL.O and Amazon.com AMZN.O, has been under pressure to focus on profitability over user growth as recession-wary customers cut down on unnecessary spending. July 24 (Reuters) - Spotify Technology SPOT.N said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy. The cost of Spotify's ad-free premium plans would now all be priced at an additional $1 with the premium single at $10.99, duo $14.99, family $16.99 and the student costing $5.99.
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14751.0
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2023-07-24 00:00:00 UTC
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Apple aims to keep iPhone shipments steady - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-aims-to-keep-iphone-shipments-steady-bloomberg-news-0
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nan
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nan
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Adds details from report in para 2 and shares in para 4
July 24 (Reuters) - Apple AAPL.O is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, Bloomberg News said on Monday citing people familiar with the matter.
The company is aiming to hold shipments steady despite a projected decline in the overall smartphone market, the report said, adding Apple is considering raising the price for Pro models.
Apple did not immediately respond to a Reuters request for comment.
Shares of the iPhone-maker inched higher in trading before the bell.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri)
((Samrhitha.A@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report in para 2 and shares in para 4 July 24 (Reuters) - Apple AAPL.O is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, Bloomberg News said on Monday citing people familiar with the matter. The company is aiming to hold shipments steady despite a projected decline in the overall smartphone market, the report said, adding Apple is considering raising the price for Pro models. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report in para 2 and shares in para 4 July 24 (Reuters) - Apple AAPL.O is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, Bloomberg News said on Monday citing people familiar with the matter. The company is aiming to hold shipments steady despite a projected decline in the overall smartphone market, the report said, adding Apple is considering raising the price for Pro models. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report in para 2 and shares in para 4 July 24 (Reuters) - Apple AAPL.O is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, Bloomberg News said on Monday citing people familiar with the matter. The company is aiming to hold shipments steady despite a projected decline in the overall smartphone market, the report said, adding Apple is considering raising the price for Pro models. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report in para 2 and shares in para 4 July 24 (Reuters) - Apple AAPL.O is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, Bloomberg News said on Monday citing people familiar with the matter. The company is aiming to hold shipments steady despite a projected decline in the overall smartphone market, the report said, adding Apple is considering raising the price for Pro models. Apple did not immediately respond to a Reuters request for comment.
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14752.0
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2023-07-24 00:00:00 UTC
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Is a Beat Likely for Tyler Technologies (TYL) in Q2 Earnings?
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AAPL
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https://www.nasdaq.com/articles/is-a-beat-likely-for-tyler-technologies-tyl-in-q2-earnings
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nan
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Tyler Technologies TYL is likely to beat expectations when it reports second-quarter 2023 results after market close on Jul 26.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.86 per share, down 1% from the year-ago quarter’s earnings of $1.88. The consensus mark for revenues stands at $490.7 million, calling for a 4.7% increase from the year-ago quarter.
Tyler surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 2.8%.
In the last reported quarter, TYL’s non-GAAP earnings of $1.76 per share surpassed the Zacks Consensus Estimate by 5 cents. However, revenues of $471.9 million came slightly lower than the consensus mark of $473.7 million.
Let’s see how things have shaped up for the upcoming announcement.
Tyler Technologies, Inc. Price and EPS Surprise
Tyler Technologies, Inc. price-eps-surprise | Tyler Technologies, Inc. Quote
Factors to Consider
Tyler’s second-quarter top line is likely to have benefited from the demand for its subscription-based software-as-a-service (SaaS) solutions as the public sector continued to transition from on-premise and outdated systems to scalable cloud-based systems. Our estimate for the company’s second-quarter Subscription segment revenues is pegged at $289.6 million, implying a year-over-year increase of 13.2%.
However, public sector entities’ continued shift to SaaS at an accelerated pace is likely to have negatively impacted Tyler’s Software Licenses and Royalties segment revenues. Our estimate suggests the said segment’s revenues to decline 37.1% year over year to $9.4 million.
The completion of COVID-19 initiatives is likely to have hurt the Professional Services segment’s top line. Our estimate for Professional Services revenues stands at $66.1 million, indicating a year-over-year decline of 8.1%.
Overall, our estimate for the company’s Total Subscriptions, Professional Services and Maintenance revenues, which include all the four abovementioned segments, is pegged at $469.4 million. This calls for a year-over-year increase of 5.6%.
In addition, the company’s closed acquisitions over the past 12 months are anticipated to have brought incremental revenues during the quarter under review. TYL bought three businesses in the last 12 months, namely Safeground Analytics, Rapid and Quatred.
However, ongoing macroeconomic and geopolitical issues might have disrupted Tyler’s business during the period in discussion. Inflationary pressures might have led public sector entities to delay procurement processes and lengthen sales cycles, which could have hurt Tyler’s revenues in the quarter under review.
Additionally, the acceleration in the shift to the cloud in the new business and the related decline in license revenues are likely to have weighed on operating margins. Also, higher operating expenses are expected to have clipped TYL’s profitability during the quarter to be reported.
Earnings Whispers
Our proven model predicts an earnings beat for Tyler this earnings 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, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.87 per share) and the Zacks Consensus Estimate ($1.86 per share), is +0.54%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: TYL sports a Zacks Rank #1.
Other Stocks With the Favorable Combination
Per our model, Apple AAPL, Block SQ and Alibaba BABA also have the right combination of elements to post an earnings beat in their upcoming releases.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +5.82%. 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%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.20 per share, flat with the year-ago quarter. It is estimated to report revenues of $81.21 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Block is slated to report second-quarter 2023 results on Aug 3. The company has a Zacks Rank #3 and an Earnings ESP of +12.99% at present. Block’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on one occasion and matching it once, the average surprise being 22.6%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 35 cents per share, suggesting a whopping increase of 94.4% from the year-ago quarter’s earnings of 18 cents. Block’s quarterly revenues are estimated to increase 15.4% year over year to $5.08 billion.
Alibaba carries a Zacks Rank #3 and has an Earnings ESP of +6.19%. The company is anticipated to report first-quarter fiscal 2024 results on Aug 3. 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
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
Tyler Technologies, Inc. (TYL) : 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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Other Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA also 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 Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report To read this article on Zacks.com click here. However, public sector entities’ continued shift to SaaS at an accelerated pace is likely to have negatively impacted Tyler’s Software Licenses and Royalties segment revenues.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA also 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 35 cents per share, suggesting a whopping increase of 94.4% from the year-ago quarter’s earnings of 18 cents.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA also have the right combination of elements to post an earnings beat in their upcoming releases. Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.87 per share) and the Zacks Consensus Estimate ($1.86 per share), is +0.54%.
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Other Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA also 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 Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Tyler Technologies TYL is likely to beat expectations when it reports second-quarter 2023 results after market close on Jul 26.
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2023-07-24 00:00:00 UTC
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Apple aims to keep iPhone shipments steady - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-aims-to-keep-iphone-shipments-steady-bloomberg-news
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nan
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nan
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July 24 (Reuters) - Apple AAPL.O is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, Bloomberg News said on Monday citing people familiar with the matter.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri)
((Samrhitha.A@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 24 (Reuters) - Apple AAPL.O is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, Bloomberg News said on Monday citing people familiar with the matter. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 24 (Reuters) - Apple AAPL.O is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, Bloomberg News said on Monday citing people familiar with the matter. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 24 (Reuters) - Apple AAPL.O is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, Bloomberg News said on Monday citing people familiar with the matter. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 24 (Reuters) - Apple AAPL.O is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, Bloomberg News said on Monday citing people familiar with the matter. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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14754.0
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2023-07-24 00:00:00 UTC
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Technology Sector Update for 07/24/2023: WKEY, SPOT, AAPL, XLK, XSD
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-07-24-2023%3A-wkey-spot-aapl-xlk-xsd
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nan
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nan
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Technology stocks were mixed premarket Monday, as the Technology Select Sector SPDR Fund (XLK) was 0.3% higher and the SPDR S&P Semiconductor ETF (XSD) was recently down 0.7%.
WISeKey International Holding (WKEY) was more than 3% higher after saying its SEALSQ (LAES) unit signed a distribution agreement with electronics distributor Symmetry Electronics for North America.
Spotify Technology (SPOT) was slightly lower after saying it will increase the price of its premium subscription services in various regions, including the US and Canada.
Apple (AAPL) is asking suppliers to make approximately 85 million iPhone 15 units this year, which is about the same as last year, despite an expected decline in the overall smartphone market, according to Bloomberg. Apple was marginally advancing in recent premarket activity.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is asking suppliers to make approximately 85 million iPhone 15 units this year, which is about the same as last year, despite an expected decline in the overall smartphone market, according to Bloomberg. Technology stocks were mixed premarket Monday, as the Technology Select Sector SPDR Fund (XLK) was 0.3% higher and the SPDR S&P Semiconductor ETF (XSD) was recently down 0.7%. WISeKey International Holding (WKEY) was more than 3% higher after saying its SEALSQ (LAES) unit signed a distribution agreement with electronics distributor Symmetry Electronics for North America.
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Apple (AAPL) is asking suppliers to make approximately 85 million iPhone 15 units this year, which is about the same as last year, despite an expected decline in the overall smartphone market, according to Bloomberg. Technology stocks were mixed premarket Monday, as the Technology Select Sector SPDR Fund (XLK) was 0.3% higher and the SPDR S&P Semiconductor ETF (XSD) was recently down 0.7%. Apple was marginally advancing in recent premarket activity.
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Apple (AAPL) is asking suppliers to make approximately 85 million iPhone 15 units this year, which is about the same as last year, despite an expected decline in the overall smartphone market, according to Bloomberg. Technology stocks were mixed premarket Monday, as the Technology Select Sector SPDR Fund (XLK) was 0.3% higher and the SPDR S&P Semiconductor ETF (XSD) was recently down 0.7%. WISeKey International Holding (WKEY) was more than 3% higher after saying its SEALSQ (LAES) unit signed a distribution agreement with electronics distributor Symmetry Electronics for North America.
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Apple (AAPL) is asking suppliers to make approximately 85 million iPhone 15 units this year, which is about the same as last year, despite an expected decline in the overall smartphone market, according to Bloomberg. Technology stocks were mixed premarket Monday, as the Technology Select Sector SPDR Fund (XLK) was 0.3% higher and the SPDR S&P Semiconductor ETF (XSD) was recently down 0.7%. WISeKey International Holding (WKEY) was more than 3% higher after saying its SEALSQ (LAES) unit signed a distribution agreement with electronics distributor Symmetry Electronics for North America.
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14755.0
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2023-07-24 00:00:00 UTC
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Here's Where Warren Buffett Has Invested Over $100 Billion Right Now (and It's Not Apple)
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AAPL
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https://www.nasdaq.com/articles/heres-where-warren-buffett-has-invested-over-%24100-billion-right-now-and-its-not-apple
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nan
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nan
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Warren Buffett has scooped up several stocks for Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio this year. He's added significantly to several positions. The legendary investor has also initiated new stakes in a handful of companies.
But one of Buffett's favorites hasn't received nearly as much attention. Here's where Buffett has invested over $100 billion of Berkshire's money right now.
Image source: Getty Images.
Berkshire's second-biggest position
I'm not referring to Apple (NASDAQ: AAPL), by the way. Sure, Berkshire owns nearly $179 billion worth of the technology giant. That's enough to make Apple by far the biggest holding in Berkshire's portfolio.
Buffett also has more than $100 billion invested in another security. Is it Bank of America or American Express? Maybe Coca-Cola? No to all of these.
Actually, Berkshire's second-biggest position isn't a stock. As of March 31, 2023, the conglomerate had nearly $104 billion piled into U.S. Treasury bills.
U.S. Treasury bonds come with various maturities all the way up to 30 years. However, Treasury bills are all short-term investments with maturities of one year or less.
"Every Monday"
Buffett stated in a CNBC interview earlier this year that Berkshire buys U.S. Treasury bills "every Monday." He said that "the only question is whether we buy three months or six months [maturities]." This isn't anything new for Berkshire Hathaway. Buffett told CNBC's Becky Quick, "[O]n Monday, we always buy Treasury bills."
That's in line with what Buffett wrote in his latest letter to Berkshire Hathaway shareholders: "Berkshire will always hold a boatload of cash and U.S. Treasury bills."
What is different, though, is just how much cash Berkshire is investing in Treasuries. Berkshire currently has one of the highest levels of short-term investments in the company's history. In addition to its Treasury bills, the conglomerate also has $23.8 billion in cash and cash equivalents.
BRK.B short term investments (quarterly) data by YCharts.
Why such a massive stockpile? It's almost certainly because Buffett believes that most stocks are overvalued right now. The metric that he once said was "probably the best single measure of where valuations stand at any given moment" supports that view.
The "Buffett indicator" divides the total market cap of the stock market by the country's gross domestic product (GDP). And the U.S. version of the indicator is currently higher than it was in 2000 before the dot-com bubble burst.
Be like Buffett?
Buffett has put an amount worth nearly 14% of Berkshire Hathaway's total valuation into Treasury bills. Should you be like Buffett?
Some might be leery of investing so heavily in Treasuries. After all, the stock market is booming so far in 2023. You could have a fear of missing out on even greater gains. But there are two key arguments in favor of Buffett's approach.
First, there's the fact that valuations truly are at historically high levels. It could be just a matter of time before the market runs out of steam.
Second, Treasury bills currently provide pretty good returns. All short-term Treasuries have yields of more than 5% right now. And they're widely viewed as the safest investments on the planet.
I'd add one other factor to consider: Buffett has been a successful investor for a long time. When he thinks it's prudent to build up a huge stockpile in Treasuries, he's probably right.
10 stocks we like better than Berkshire Hathaway
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 17, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire's second-biggest position I'm not referring to Apple (NASDAQ: AAPL), by the way. Buffett has put an amount worth nearly 14% of Berkshire Hathaway's total valuation into Treasury bills. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them!
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Berkshire's second-biggest position I'm not referring to Apple (NASDAQ: AAPL), by the way. Warren Buffett has scooped up several stocks for Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio this year. See the 10 stocks *Stock Advisor returns as of July 17, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company.
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Berkshire's second-biggest position I'm not referring to Apple (NASDAQ: AAPL), by the way. "Every Monday" Buffett stated in a CNBC interview earlier this year that Berkshire buys U.S. Treasury bills "every Monday." That's in line with what Buffett wrote in his latest letter to Berkshire Hathaway shareholders: "Berkshire will always hold a boatload of cash and U.S. Treasury bills."
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Berkshire's second-biggest position I'm not referring to Apple (NASDAQ: AAPL), by the way. However, Treasury bills are all short-term investments with maturities of one year or less. What is different, though, is just how much cash Berkshire is investing in Treasuries.
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14756.0
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2023-07-24 00:00:00 UTC
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SPY, KALL: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/spy-kall%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 22,500,000 units were destroyed, or a 2.3% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 1%, and Microsoft is up by about 0.7%.
And on a percentage change basis, the ETF with the biggest outflow was the KALL ETF, which lost 100,000 of its units, representing a 25.0% decline in outstanding units compared to the week prior.
VIDEO: SPY, KALL: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is up about 1%, and Microsoft is up by about 0.7%. And on a percentage change basis, the ETF with the biggest outflow was the KALL ETF, which lost 100,000 of its units, representing a 25.0% decline in outstanding units compared to the week prior. VIDEO: SPY, KALL: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 22,500,000 units were destroyed, or a 2.3% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KALL ETF, which lost 100,000 of its units, representing a 25.0% decline in outstanding units compared to the week prior. VIDEO: SPY, KALL: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 22,500,000 units were destroyed, or a 2.3% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KALL ETF, which lost 100,000 of its units, representing a 25.0% decline in outstanding units compared to the week prior. VIDEO: SPY, KALL: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 22,500,000 units were destroyed, or a 2.3% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 1%, and Microsoft is up by about 0.7%. And on a percentage change basis, the ETF with the biggest outflow was the KALL ETF, which lost 100,000 of its units, representing a 25.0% decline in outstanding units compared to the week prior.
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14757.0
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2023-07-24 00:00:00 UTC
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IVV, AAPL, MSFT, AMZN: ETF Inflow Alert
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AAPL
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https://www.nasdaq.com/articles/ivv-aapl-msft-amzn%3A-etf-inflow-alert
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.8 billion dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 757,800,000 to 764,050,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 1%, Microsoft Corporation (Symbol: MSFT) is up about 0.7%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.2%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $458.82 as the 52 week high point — that compares with a last trade of $456.52. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
AEIS market cap history
Funds Holding FYC
HRZN Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 1%, Microsoft Corporation (Symbol: MSFT) is up about 0.7%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.2%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 1%, Microsoft Corporation (Symbol: MSFT) is up about 0.7%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.2%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $458.82 as the 52 week high point — that compares with a last trade of $456.52. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 1%, Microsoft Corporation (Symbol: MSFT) is up about 0.7%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.8 billion dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 757,800,000 to 764,050,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $458.82 as the 52 week high point — that compares with a last trade of $456.52.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 1%, Microsoft Corporation (Symbol: MSFT) is up about 0.7%, and Amazon.com Inc (Symbol: AMZN) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.8 billion dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 757,800,000 to 764,050,000). Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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14758.0
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2023-07-24 00:00:00 UTC
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Spotify raises prices for its premium plans across several countries
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AAPL
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https://www.nasdaq.com/articles/spotify-raises-prices-for-its-premium-plans-across-several-countries
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nan
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nan
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Adds details and background throughout
July 24 (Reuters) - Spotify Technology SPOT.N on Monday raised prices for its premium plans across several countries including the United States and United Kingdom, as the music-streaming company looks to boost profitability in an uncertain economy.
The move will result in a $1 price increase for Spotify's U.S. plans, with the premium single now starting at $10.99, duo at $14.99, family at $16.99 and the student plan at $5.99.
Spotify has moved in recent months to boost margins with hundreds of layoffs and a restructuring of the podcast unit, which it had built up with billions of dollars in investment.
The price increases come at a time when streaming services, both audio and video, are under rising investor pressure to boost profitability after years of prioritizing user growth.
Rivals services from Apple AAPL.O and Amazon.com AMZN.O and Tidal have all increased prices this year, while YouTube also hiked prices last week on its monthly and annual premium plans in the U.S. for the first time since the subscription service was launched in 2018.
Spotify, which had indicated in April that it would raise prices in 2023, had also raised prices in 46 countries last year.
The Sweden-based company is due to report its results for the second quarter on Tuesday.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shailesh Kuber)
((Samrhitha.A@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rivals services from Apple AAPL.O and Amazon.com AMZN.O and Tidal have all increased prices this year, while YouTube also hiked prices last week on its monthly and annual premium plans in the U.S. for the first time since the subscription service was launched in 2018. Adds details and background throughout July 24 (Reuters) - Spotify Technology SPOT.N on Monday raised prices for its premium plans across several countries including the United States and United Kingdom, as the music-streaming company looks to boost profitability in an uncertain economy. Spotify has moved in recent months to boost margins with hundreds of layoffs and a restructuring of the podcast unit, which it had built up with billions of dollars in investment.
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Rivals services from Apple AAPL.O and Amazon.com AMZN.O and Tidal have all increased prices this year, while YouTube also hiked prices last week on its monthly and annual premium plans in the U.S. for the first time since the subscription service was launched in 2018. Adds details and background throughout July 24 (Reuters) - Spotify Technology SPOT.N on Monday raised prices for its premium plans across several countries including the United States and United Kingdom, as the music-streaming company looks to boost profitability in an uncertain economy. The move will result in a $1 price increase for Spotify's U.S. plans, with the premium single now starting at $10.99, duo at $14.99, family at $16.99 and the student plan at $5.99.
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Rivals services from Apple AAPL.O and Amazon.com AMZN.O and Tidal have all increased prices this year, while YouTube also hiked prices last week on its monthly and annual premium plans in the U.S. for the first time since the subscription service was launched in 2018. Adds details and background throughout July 24 (Reuters) - Spotify Technology SPOT.N on Monday raised prices for its premium plans across several countries including the United States and United Kingdom, as the music-streaming company looks to boost profitability in an uncertain economy. The move will result in a $1 price increase for Spotify's U.S. plans, with the premium single now starting at $10.99, duo at $14.99, family at $16.99 and the student plan at $5.99.
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Rivals services from Apple AAPL.O and Amazon.com AMZN.O and Tidal have all increased prices this year, while YouTube also hiked prices last week on its monthly and annual premium plans in the U.S. for the first time since the subscription service was launched in 2018. Adds details and background throughout July 24 (Reuters) - Spotify Technology SPOT.N on Monday raised prices for its premium plans across several countries including the United States and United Kingdom, as the music-streaming company looks to boost profitability in an uncertain economy. Spotify has moved in recent months to boost margins with hundreds of layoffs and a restructuring of the podcast unit, which it had built up with billions of dollars in investment.
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14759.0
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2023-07-24 00:00:00 UTC
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Should WisdomTree U.S. LargeCap Dividend ETF (DLN) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-dividend-etf-dln-be-on-your-investing-radar-8
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nan
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nan
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Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $3.66 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.28%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.47%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 18.70% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 26.1% of total assets under management.
Performance and Risk
DLN seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index before fees and expenses. The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
The ETF has gained about 6.57% so far this year and is up about 10.81% in the last one year (as of 07/24/2023). In the past 52-week period, it has traded between $55.26 and $65.27.
The ETF has a beta of 0.89 and standard deviation of 14.84% for the trailing three-year period, making it a medium risk choice in the space. With about 301 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DLN is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $52.06 billion in assets, Vanguard Value ETF has $102.54 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $3.66 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
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Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. LargeCap Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
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14760.0
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2023-07-23 00:00:00 UTC
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The "Magnificent Seven" Stocks Are Soaring Toward a Bull Market: 2 Ideal Index Funds to Buy Now
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AAPL
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https://www.nasdaq.com/articles/the-magnificent-seven-stocks-are-soaring-toward-a-bull-market%3A-2-ideal-index-funds-to-buy
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nan
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nan
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The S&P 500 (SNPINDEX: ^GSPC) soared 15.9% in the first half of 2023, and the index is now just 5% below its all-time high. Seven stocks, dubbed the "Magnificent Seven" by Wall Street, accounted for 73% of those gains. In other words, they are almost single-handedly driving the S&P 500 toward bull market territory.
Investors familiar with the FAANG stocks will recognize many of the Magnificent Seven. The group includes:
Apple (NASDAQ: AAPL)
Microsoft (NASDAQ: MSFT)
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)
Amazon (NASDAQ: AMZN)
Nvidia (NASDAQ: NVDA)
Tesla (NASDAQ: TSLA)
Meta Platforms (NASDAQ: META)
Those seven companies are collectively worth more than $11 trillion -- here's what investors should know.
Image source: Getty Images.
Wall Street is bullish on the Magnificent Seven stocks
The Magnificent Seven produced returns ranging from 36% to 190% in the first half of the year, but Wall Street remains bullish on the entire group. All seven stocks have a consensus rating of "buy" among analysts, according to CNN Business, and the highest 12-month price targets imply upside of 20% for Tesla, 23% for Apple, 27% for Meta Platforms, 27% for Microsoft, 56% for Alphabet, 63% for Amazon, and 63% for Nvidia.
Of course, investors should never put too much faith in short-term price targets. Not even the wisest Wall Street analysts can predict the future. That said, all seven stocks are backed by a solid investment thesis.
1. Apple
Apple has a dominant presence in several consumer electronics verticals, especially tablets, smartwatches, and smartphones. But its burgeoning services business is the future because it allows the company to monetize its installed base of 2 billion devices with adjacent products like cloud storage, mobile app fees, and financial services. Apple has a particularly strong foothold in two of those markets. Its App Store pulls in twice as much revenue as its closest rival, and Apple Pay is the most popular mobile wallet in the U.S.
2. Microsoft
Microsoft is the market leader in enterprise software-as-a-service products, and Microsoft Azure is the second-largest provider of cloud services in the world. The company is leaning into artificial intelligence (AI) in both segments, and Morgan Stanley analyst Keith Weiss recently said Microsoft was the software company best positioned to monetize generative AI.
3. Alphabet
Alphabet's Google is the largest adtech company in the world due to the immense popularity of Google Search and YouTube, and Google Cloud Platform is the third-largest cloud services provider. Also noteworthy, Alphabet-owned Waymo was the first company to commercialize autonomous ride-hailing services, and the robotaxi market is expected to explode in the coming decade.
4. Amazon
Amazon operates the most-visited e-commerce marketplace in the world, and its ability to engage consumers and collect shopper data has snowballed into a booming digital ad business. Amazon has quietly become the third-largest adtech company in the world, and it's gaining ground on Google and Meta. Additionally, Amazon Web Services has led the cloud computing market for 12 years and counting, and it was recently recognized as a leader in cloud AI developer services.
5. Nvidia
Nvidia holds more than 90% market share in workstation graphics chips and supercomputer accelerators, and Forrester Research says its semiconductors are synonymous with AI infrastructure. Nvidia has also solidified its importance in the data center by branching into high-performance networking equipment, and it has extended its ability to monetize AI by delving into subscription software and cloud services.
6. Tesla
Tesla is the market leader in battery electric vehicle sales, and it reported the highest operating margin among volume carmakers last year, an accomplishment that supports CEO Elon Musk in his conviction that the company possesses superior manufacturing capabilities. Tesla will undoubtedly benefit as electric vehicles become more prevalent, but its largest opportunities lie in autonomous vehicles. Tesla plans to build a robotaxi next year, entering a market that Ark Invest estimates will be $9 trillion by 2030.
7. Meta Platforms
Meta Platforms is the second-largest adtech company in the world. That success stems from the immense popularity of its social media networks: Instagram, WhatsApp, and Facebook all ranked among the 10 most-downloaded mobile apps worldwide in 2022. Those platforms already reach billions of users each day, but Meta is leaning into AI to improve user engagement and sharpen its advertising capabilities.
How to invest in the Magnificent Seven stocks
Investors looking for exposure to the Magnificent Seven can, of course, buy all seven stocks. But index funds like the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) may be more prudent options because they diversify your investment across a broader range of businesses.
The Vanguard S&P 500 ETF tracks 500 large-cap stocks that represent a blend of value and growth, and 24% of its assets are invested in the Magnificent Seven. Alternatively, the Vanguard Mega Cap Growth ETF tracks 96 large-cap growth stocks, and 56% of its assets are invested in the Magnificent Seven.
Here's the bottom line: Both index funds bear below-average expense ratios, but the Vanguard S&P 500 ETF is the less risky option because it allocates capital across a more diversified group of businesses. However, the Vanguard Mega Cap Growth ETF has been the better performer. It returned 325% over the last decade, while the Vanguard S&P 500 ETF returned 225%.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of July 17, 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. Trevor Jennewine has positions in Amazon.com, Nvidia, Tesla, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The group includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Those seven companies are collectively worth more than $11 trillion -- here's what investors should know. All seven stocks have a consensus rating of "buy" among analysts, according to CNN Business, and the highest 12-month price targets imply upside of 20% for Tesla, 23% for Apple, 27% for Meta Platforms, 27% for Microsoft, 56% for Alphabet, 63% for Amazon, and 63% for Nvidia. Nvidia has also solidified its importance in the data center by branching into high-performance networking equipment, and it has extended its ability to monetize AI by delving into subscription software and cloud services.
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The group includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Those seven companies are collectively worth more than $11 trillion -- here's what investors should know. Alternatively, the Vanguard Mega Cap Growth ETF tracks 96 large-cap growth stocks, and 56% of its assets are invested in the Magnificent Seven. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF.
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The group includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Those seven companies are collectively worth more than $11 trillion -- here's what investors should know. All seven stocks have a consensus rating of "buy" among analysts, according to CNN Business, and the highest 12-month price targets imply upside of 20% for Tesla, 23% for Apple, 27% for Meta Platforms, 27% for Microsoft, 56% for Alphabet, 63% for Amazon, and 63% for Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF.
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The group includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Those seven companies are collectively worth more than $11 trillion -- here's what investors should know. All seven stocks have a consensus rating of "buy" among analysts, according to CNN Business, and the highest 12-month price targets imply upside of 20% for Tesla, 23% for Apple, 27% for Meta Platforms, 27% for Microsoft, 56% for Alphabet, 63% for Amazon, and 63% for Nvidia. How to invest in the Magnificent Seven stocks Investors looking for exposure to the Magnificent Seven can, of course, buy all seven stocks.
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14761.0
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2023-07-23 00:00:00 UTC
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3 Things About Microsoft Stock That Smart Investors Know
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AAPL
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https://www.nasdaq.com/articles/3-things-about-microsoft-stock-that-smart-investors-know
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nan
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nan
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Investors are about to get a flood of fresh information about Microsoft's (NASDAQ: MSFT) business. The software giant will announce fiscal 2023 fourth-quarter results on July 25, in a report that will likely feature an official outlook for the fiscal year 2024. There are big questions around the company's growth opportunities, profitability, and cash demand trends heading into that announcement.
Smart investors know how to separate important growth metrics from the noise around quarter-to-quarter sales volatility. With that in mind, let's look at three factors that really make this stock stand out as an investment today.
1. Microsoft's business is diverse
One great reason to like Microsoft stock is its diversity. You can own exposure to enterprise cloud services by buying Amazon, for example. Add Palo Alto Networks (NASDAQ: PANW) to your portfolio for the cybersecurity industry. And purchase Take-Two Interactive to benefit from long-term growth in the video game industry.
Or you could just buy Microsoft and gain exposure to all of these growth niches and more, including artificial intelligence (AI) and productivity software. There's value in owning such a diverse grouping of expansion opportunities all under one brand umbrella. Even if a few of Microsoft's big bets don't pay off, returns from the winners will likely offset those disappointments.
2. Microsoft is highly profitable
Microsoft's financial metrics have worsened a bit since the pandemic highs reported in 2021 and early 2022. But the company remains one of the most efficient generators of both cash and profits.
Take last quarter, for example, when operating income jumped 15% year over year after accounting for currency exchange rate swings. That boost resulted in a whopping $22.4 billion of profit on just $53 billion of sales.
MSFT Operating Margin (TTM) data by YCharts
Few companies can achieve anything like the resulting operating margin of 44% of sales. Apple (NASDAQ: AAPL), by comparison, sports a 29% margin today. Amazon's rate is closer to 3%, and Palo Alto Networks has only just recently achieved profitability.
3. Microsoft is a pricey stock
As you might expect, an investor will have to pay a premium for these valuable assets. Microsoft stock is now valued at over 12 times annual sales, roughly even with faster-growing Palo Alto Networks. You could own Apple for a relative bargain of 8 times sales. Amazon is cheaper still at less than 3 times sales.
It's possible that Microsoft's valuation will come down closer to these peers in the coming quarters, especially if the company announces disappointing sales results in late July or forecasts a tough operating year ahead. But the more likely scenario is that the business will continue steadily winning market share in several huge global tech industries. It won't be long before the cyclical downturn ends in its operating system segment or in its consumer tech devices division, either.
That bright long-term outlook, plus Microsoft's industry-leading profit margins, ample cash flow, and rising dividend payment, all make it an extremely attractive stock to consider putting in your portfolio. For tech stock investors who don't want to take excess risk in searching out the next big thing in a fast-moving industry, this business offers a great way to gain exposure to these trends in one of the most valuable companies on the planet.
10 stocks we like better than Microsoft
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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. Demitri Kalogeropoulos has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Palo Alto Networks, and Take-Two Interactive Software. 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), by comparison, sports a 29% margin today. It won't be long before the cyclical downturn ends in its operating system segment or in its consumer tech devices division, either. That bright long-term outlook, plus Microsoft's industry-leading profit margins, ample cash flow, and rising dividend payment, all make it an extremely attractive stock to consider putting in your portfolio.
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Apple (NASDAQ: AAPL), by comparison, sports a 29% margin today. Investors are about to get a flood of fresh information about Microsoft's (NASDAQ: MSFT) business. It's possible that Microsoft's valuation will come down closer to these peers in the coming quarters, especially if the company announces disappointing sales results in late July or forecasts a tough operating year ahead.
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Apple (NASDAQ: AAPL), by comparison, sports a 29% margin today. Microsoft's business is diverse One great reason to like Microsoft stock is its diversity. Microsoft stock is now valued at over 12 times annual sales, roughly even with faster-growing Palo Alto Networks.
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Apple (NASDAQ: AAPL), by comparison, sports a 29% margin today. For tech stock investors who don't want to take excess risk in searching out the next big thing in a fast-moving industry, this business offers a great way to gain exposure to these trends in one of the most valuable companies on the planet. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them!
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14762.0
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2023-07-23 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-54
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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14763.0
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2023-07-22 00:00:00 UTC
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Unusual Put Option Trade in Apple (AAPL) Worth $874.38K
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AAPL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-apple-aapl-worth-%24874.38k
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nan
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nan
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On July 20, 2023 at 15:15:22 ET an unusually large $874.38K block of Put contracts in Apple (AAPL) was bought, with a strike price of $195.00 / share, expiring in 22 day(s) (on August 11, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.13 sigmas above the mean, placing it in the 85.26th 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 6395 funds or institutions reporting positions in Apple. This is a decrease of 6 owner(s) or 0.09% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.90%, an increase of 51.19%. Total shares owned by institutions decreased in the last three months by 2.31% to 9,917,341K shares.
The put/call ratio of AAPL is 0.92, 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 1.47% 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 1.47% from its latest reported closing price of 195.10.
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?
Bank Julius Baer & Co. Ltd, Zurich holds 4,098,544K shares representing 26.06% ownership of the company. In it's prior filing, the firm reported owning 4,138K shares, representing an increase of 99.90%. The firm increased its portfolio allocation in AAPL by 10.16% over the last quarter.
Berkshire Hathaway holds 915,560K shares representing 5.82% 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 2.96% 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 2.21% 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 1.81% 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.
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 20, 2023 at 15:15:22 ET an unusually large $874.38K block of Put contracts in Apple (AAPL) was bought, with a strike price of $195.00 / share, expiring in 22 day(s) (on August 11, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.13 sigmas above the mean, placing it in the 85.26th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.90%, an increase of 51.19%.
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On July 20, 2023 at 15:15:22 ET an unusually large $874.38K block of Put contracts in Apple (AAPL) was bought, with a strike price of $195.00 / share, expiring in 22 day(s) (on August 11, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.13 sigmas above the mean, placing it in the 85.26th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.90%, an increase of 51.19%.
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On July 20, 2023 at 15:15:22 ET an unusually large $874.38K block of Put contracts in Apple (AAPL) was bought, with a strike price of $195.00 / share, expiring in 22 day(s) (on August 11, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.13 sigmas above the mean, placing it in the 85.26th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.90%, an increase of 51.19%.
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On July 20, 2023 at 15:15:22 ET an unusually large $874.38K block of Put contracts in Apple (AAPL) was bought, with a strike price of $195.00 / share, expiring in 22 day(s) (on August 11, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.13 sigmas above the mean, placing it in the 85.26th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.90%, an increase of 51.19%.
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14764.0
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2023-07-22 00:00:00 UTC
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Got $1,000? 5 Buffett Stocks to Buy and Hold Forever.
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AAPL
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https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever.-0
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nan
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nan
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Warren Buffett's approach to picking stocks may not be particularly exciting, but that's not his goal -- it's to consistently make money. His conglomerate Berkshire Hathaway has certainly done that over the past few decades, even if it occasionally trails the S&P 500 benchmark in some years. He thinks in the long term and doesn't sweat the temporary headwinds. You'd be wise to mirror his style and poach a few of his picks.
Owning just five of Buffett's top holdings could bear plenty of fruit, given enough time. Here are your five best "forever" Buffett bets, even if you're only starting out with $1,000.
1. Kroger
Kroger (NYSE: KR) operates 2,750 grocery stores under a handful of different banners peppered across most of the country. In fact, it's the United States' second-biggest grocer, only trailing Walmart, and there's enough business for both.
Kroger's edge is the fact that it's much more than just your typical grocer. It's a vertically integrated food seller, prominently featuring its own private-label goods and in some cases producing its own products.
Around one-fifth of its top line comes from sales of house brands, which not only translates into higher profit margins, but also means its supply chains are shorter. Then there's the monetization of all the web traffic that Kroger.com draws.
This chain of grocery stores will never be a high-growth investment. What it lacks in speed, however, it makes up for in raw muscle. It's no wonder Buffett and his team like it.
2. Capital One
Capital One Financial (NYSE: COF) is a somewhat misunderstood credit card company. While it does tend to address a sliver of the consumer market that's not well served by more-familiar credit card names, it doesn't take on risks that don't reward its shareholders.
As Ian Lapey, a portfolio manager at Gabelli Funds, points out, "The company has never lost money since going public in 1994 and [tangible book value] has compounded at about 14% a year."
The strongest bullish argument for buying Capital One shares now? You can step into them at around the same price that Buffett did. Berkshire only bought the 9.9 million shares it now owns during the first quarter of this year.
3. American Express
Technically, it's another credit card company. American Express (NYSE: AXP) and Capital One are dramatically different entities, though. Not only do they aim to serve different segments of the same market, but American Express' business model is also still centered around its fee-based charge cards offering tons of cardholder perks.
Case in point: The American Express Platinum Card gives holders $200 worth of annual credits toward hotel stays, access to lounges at airports, up to $240 worth of yearly savings on streaming services, and more. The card costs its holders $695 per year, but for frequent users, the benefits that Amex has negotiated with a wide array of service providers can easily pay for the card.
Buffett's Berkshire has held a stake in American Express for decades now, initiating its position in 1991.
4. Coca-Cola
One of Buffett's most-quoted pieces of wisdom is "Buy what you know." And he practices what he preaches. Berkshire has held a huge stake in Coca-Cola (NYSE: KO) for a long, long time, and his favorite beverage is Coke.
The pick makes plenty of sense. Buffett loves value stocks and dividends. The company has raised its payout every year for the past 61 years. You won't find a much better-pedigreed dividend stock.
The brunt of the bullish argument, though, is the company's universal marketability. It is one of the world's best-known brands, and one of the biggest brand families. Dasani, Fanta, Gold Peak, Minute Maid, and Powerade are just some of the other labels that make up the company, giving Coca-Cola a product and a price point for nearly every consumer.
5. Apple
Last but not least, add Apple (NASDAQ: AAPL) to your list of Buffett stocks to buy and hold forever. Buffett tends to eschew technology stocks, recognizing their apparent fortunes can turn on a dime. That's just not his thing.
Yet, Apple isn't your typical technology company. It might be more accurate to describe it as a consumer services company that relies on technology to deliver those services. That's particularly true given that high-margin digital services now account for nearly one-fourth of Apple's top line, and roughly one-third of its operating profit.
A superior product (the iPhone) takes care of the rest, continuing to add users to its digital ecosystem despite broadly slowing smartphone sales. More than 2 billion Apple devices are now regularly used worldwide, with most of them the highly popular smartphone.
As of the end of the first quarter, Berkshire Hathaway held roughly $150 billion worth of Apple stock, easily making it the fund's single biggest position.
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
American Express is an advertising partner of The Ascent, a Motley Fool company. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Walmart. 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 Last but not least, add Apple (NASDAQ: AAPL) to your list of Buffett stocks to buy and hold forever. Not only do they aim to serve different segments of the same market, but American Express' business model is also still centered around its fee-based charge cards offering tons of cardholder perks. Dasani, Fanta, Gold Peak, Minute Maid, and Powerade are just some of the other labels that make up the company, giving Coca-Cola a product and a price point for nearly every consumer.
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Apple Last but not least, add Apple (NASDAQ: AAPL) to your list of Buffett stocks to buy and hold forever. Kroger Kroger (NYSE: KR) operates 2,750 grocery stores under a handful of different banners peppered across most of the country. As of the end of the first quarter, Berkshire Hathaway held roughly $150 billion worth of Apple stock, easily making it the fund's single biggest position.
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Apple Last but not least, add Apple (NASDAQ: AAPL) to your list of Buffett stocks to buy and hold forever. As of the end of the first quarter, Berkshire Hathaway held roughly $150 billion worth of Apple stock, easily making it the fund's single biggest position. See the 10 stocks *Stock Advisor returns as of July 17, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company.
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Apple Last but not least, add Apple (NASDAQ: AAPL) to your list of Buffett stocks to buy and hold forever. American Express Technically, it's another credit card company. Yet, Apple isn't your typical technology company.
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14765.0
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2023-07-22 00:00:00 UTC
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2 Growth Stocks to Invest $1,000 in Right Now
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https://www.nasdaq.com/articles/2-growth-stocks-to-invest-%241000-in-right-now-1
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The stock market has recovered well in 2023 following last year's doldrums when surging inflation and the Federal Reserve's interest rate hikes led investors to press the panic button and move away from equities. The S&P 500 is up 18% this year, while the tech-laden Nasdaq Composite has delivered bigger gains of 34%. The good part is that this stock market rally seems to have legs thanks to a healthy jobs market, the receding probability of a recession, and a marked slowdown in inflation that could eventually lead the Fed to lower interest rates.
Shares of Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP) have benefited from the broader stock market surge, logging gains of 50% and 95% year to date. More importantly, both stocks seem capable of sustaining their rallies and delivering more upside to investors.
If you have $1,000 available to invest that isn't needed to bolster an emergency fund, pay off monthly bills, or pay down short-term debt obligations, you might want to put it toward purchasing shares of one (or both) of these stocks. Let's look at the reasons why such an investment could turn out to be a smart move right now.
1. Apple
A $1,000 investment in Apple stock at the end of 2022 is now worth $1,500. There were a few solid reasons to buy shares of Apple at the end of last year, such as the company's growing business and its attractive valuation. For example, Apple stock was trading at 21 times trailing earnings at the end of 2022, and the company was delivering resilient growth despite the slowdown in the smartphone market.
Apple is now trading at a relatively expensive 32 times trailing earnings. However, the stock looks like a solid buy even at these levels, since the tech giant could deliver stronger-than-expected growth once it launches its next-generation smartphone lineup. Wedbush Securities analyst Daniel Ives upped his price target on Apple stock to $220 from $205 last month, pointing out that the company is on the cusp of a major iPhone upgrade cycle.
According to Ives, there are around 250 million iPhones that haven't been upgraded in more than four years. The launch of this year's iPhone 15 is expected to encourage those users to upgrade to Apple's latest smartphones, and more importantly, bump the company's average selling price (ASP) per unit as well. Given that the company has sold an estimated 224 million iPhones over the past four quarters, the company could enjoy a double-digit bump in volumes over the next year if all those 250 million iPhones are upgraded.
Additionally, Ives points out that the improving mix of the higher-priced Pro and Pro Max models in Apple's smartphone sales should give Apple's iPhone ASP a shot in the arm. According to a report from Consumer Intelligence Research Partners (CIRP), Apple's iPhone ASP reportedly increased to $988 in March 2023 from $882 in the same period a year ago.
It is worth noting that a potential increase in the price of the company's next-generation iPhones -- potentially up to $200 as per some analysts -- could push iPhone ASP beyond $1,000. As a result, Apple could enjoy a nice mix of volume and ASP growth once it launches its next series of iPhones. This could help the company outperform Wall Street's growth expectations over the next year and may even help it hit the Street-high price target of $240, which would be a 23% increase from current levels.
So a $1,000 investment in Apple stock could turn out to be a profitable investment thanks to the iPhone catalyst, as well as the other growth drivers that the company is sitting on.
2. Shopify
A $1,000 investment in Shopify stock at the end of 2022 has nearly doubled by now, driven by the company's solid first-quarter 2023 results released in May. Moreover, the company's decision to divest its logistics business and focus on its e-commerce platform seems to have boosted investors' confidence.
The company delivered better-than-expected revenue growth in Q1, with its revenue increasing 25% year over year to $1.5 billion. Shopify's growth rate accelerated from the same period in 2022 when the company had a year-over-year revenue jump of 22%. More importantly, Shopify expects to sustain its healthy momentum in the second quarter as well, with a 25% increase in revenue over the year-ago quarter.
Again, that points toward a significant acceleration when compared to the 16% year-over-year revenue growth the company delivered in Q2 2022. This jump in Shopify's growth this year isn't surprising, given the potential improvement in the e-commerce market's prospects this year.
According to eMarketer, the e-commerce market witnessed a marked slowdown in growth in 2022, as sales grew just 7% following a 17% jump in 2021. This year, e-commerce sales growth is expected to increase by 9%. As a result, the demand for Shopify's e-commerce solutions -- which help merchants bring their businesses online by helping them build a store on the internet, sell their products internationally, find customers through advertisements, collect payments, and get access to capital -- should ideally improve this year.
Analysts anticipate Shopify's top line to jump 20% in 2023 to $6.7 billion, but it won't be surprising to see the company deliver faster growth, considering the trends in the first two quarters. Also, Shopify is sitting on a total addressable market (TAM) worth $160 billion, which means that it could keep growing at a nice pace for a long time. This explains why the company's revenue is expected to increase over the next couple of years.
SHOP Revenue Estimates for Current Fiscal Year data by YCharts
However, investors will have to pay a rich multiple to benefit from Shopify's growth. The stock sports a price-to-sales ratio of almost 15. That is substantially higher than the sales multiple of 8 at the end of 2022. But then, Shopify is relatively cheaper compared to its five-year average sales multiple of 30.
The company's stronger growth this year, along with the massive long-term revenue opportunity, suggests that it can justify its rich valuation and deliver more upside, which is why someone with $1,000 of investible cash might consider buying Shopify before it is too late.
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
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple 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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Shares of Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP) have benefited from the broader stock market surge, logging gains of 50% and 95% year to date. The stock market has recovered well in 2023 following last year's doldrums when surging inflation and the Federal Reserve's interest rate hikes led investors to press the panic button and move away from equities. Wedbush Securities analyst Daniel Ives upped his price target on Apple stock to $220 from $205 last month, pointing out that the company is on the cusp of a major iPhone upgrade cycle.
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Shares of Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP) have benefited from the broader stock market surge, logging gains of 50% and 95% year to date. For example, Apple stock was trading at 21 times trailing earnings at the end of 2022, and the company was delivering resilient growth despite the slowdown in the smartphone market. The launch of this year's iPhone 15 is expected to encourage those users to upgrade to Apple's latest smartphones, and more importantly, bump the company's average selling price (ASP) per unit as well.
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Shares of Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP) have benefited from the broader stock market surge, logging gains of 50% and 95% year to date. For example, Apple stock was trading at 21 times trailing earnings at the end of 2022, and the company was delivering resilient growth despite the slowdown in the smartphone market. So a $1,000 investment in Apple stock could turn out to be a profitable investment thanks to the iPhone catalyst, as well as the other growth drivers that the company is sitting on.
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Shares of Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP) have benefited from the broader stock market surge, logging gains of 50% and 95% year to date. Apple A $1,000 investment in Apple stock at the end of 2022 is now worth $1,500. For example, Apple stock was trading at 21 times trailing earnings at the end of 2022, and the company was delivering resilient growth despite the slowdown in the smartphone market.
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14766.0
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2023-07-21 00:00:00 UTC
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Meta Platforms (META) to Report Q2 Earnings: What to Expect
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https://www.nasdaq.com/articles/meta-platforms-meta-to-report-q2-earnings%3A-what-to-expect-0
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nan
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Meta Platforms META is set to report its second-quarter 2023 results on Jul 26.
Meta expects total revenues between $29.5 billion and $32 billion for the second quarter of 2023. Unfavorable forex is expected to hurt year-over-year top-line growth by less than 1%.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $30.84 billion, indicating an increase of 7.01% from the year-ago quarter’s reported figure.
The consensus mark for earnings stands at $2.85 per share, up by a cent over the past 30 days, suggesting growth of 15.85% from the figure reported in the year-ago quarter.
Meta Platforms, Inc. Price and EPS Surprise
Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote
Meta’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 15.46%.
Meta had a terrific second quarter of 2023, outperforming the Zacks Internet Software industry. While the shares of the social media giant have returned 35.4%, the industry has risen 16.3%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Meta’s second-quarter top line is expected to have benefited from Facebook’s expanding user base (more than 3 billion daily active users) and growing adoption of reels. Higher engagement level is helping to steady its user growth across all regions, particularly Asia Pacific.
Our model estimate for Asia Pacific Daily Active Users (DAUs) in the second quarter is pegged at 883 million, indicating 5.6% year-over-year growth, the fastest among the regions followed by the Rest of World, which we expect to grow 3.3% to 652 million DAUs.
In terms of Monthly Active Users (MAUs), our estimate for Asia Pacific is pegged at 1.339 billion, suggesting 2.6% year-over-year growth. The Rest of World MAUs is expected to grow 2.4% to 982 million MAUs.
Increased engagement for Meta’s offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. Effective usage of artificial intelligence has been helping the company keep its users engaged.
Our model estimate for Meta’s worldwide DAU is pegged at 2.034 billion, indicating 3.4% growth year over year. MAU is pegged at 2.985 billion, indicating a 1.7% increase year over year.
Nevertheless, Meta’s top line is expected to reflect the negative impact of the challenging macroeconomic environment and high inflation that is anticipated to have kept ad spending budgets under pressure. This is likely to have weighed on ad revenues in the to-be-reported quarter.
The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. However, measuring these outcomes is tough.
In the first quarter of 2023, Meta’s ad revenues represented 98.1% of total revenues, which increased 4.2% year over year to $31.25 billion.
Our estimate for second-quarter 2023 ad revenues is pegged at $28.95 billion, indicating 2.8% year-over-year growth.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the exact case here.
Meta has an Earnings ESP of +5.89% and currently has a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
Tyler Technologies TYL has an Earnings ESP of +0.54% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tyler shares have gained 25.3% year to date. TYL is set to report its second-quarter 2023 results on Jul 27.
Cadence Design Systems CDNS has an Earnings ESP of +0.67% and a Zacks Rank #1.
Cadence Design shares have gained 48.6% year to date. CDNS is set to report its second-quarter 2023 results on Jul 24.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for second-quarter revenues is pegged at $30.84 billion, indicating an increase of 7.01% from the year-ago quarter’s reported figure.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Our model estimate for Asia Pacific Daily Active Users (DAUs) in the second quarter is pegged at 883 million, indicating 5.6% year-over-year growth, the fastest among the regions followed by the Rest of World, which we expect to grow 3.3% to 652 million DAUs.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Meta Platforms, Inc. Price and EPS Surprise Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote Meta’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 15.46%.
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The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for second-quarter revenues is pegged at $30.84 billion, indicating an increase of 7.01% from the year-ago quarter’s reported figure.
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14767.0
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2023-07-21 00:00:00 UTC
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WINN ETF: Can You Really Win with This ETF?
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https://www.nasdaq.com/articles/winn-etf%3A-can-you-really-win-with-this-etf
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The aptly-named Harbor Long-Term Growers ETF (NYSE:WINN) is an actively-managed ETF focused on long-term growth stocks that has posted a sizzling gain of nearly 40% year-to-date so far in 2023. The ETF looks promising and has a lot going for it, but there are also some factors that investors should consider carefully before deciding whether WINN is the right choice for their portfolios. Let’s dive right into it.
What is the WINN ETF?
WINN is an actively-managed ETF from Harbor Capital that “seeks long-term growth of capital by employing a proprietary combination of bottom-up, fundamental research and systematic portfolio construction,” according to Harbor Capital.
The team behind WINN believes that “companies with sustainable competitive advantages have the potential to drive superior levels of long-term growth and generate strong returns for shareholders,” and it’s hard to argue with this logic. The fund launched in February of 2022 and has about $175 million in assets under management (AUM).
WINN's Portfolio
So, what type of portfolio does this bottom-up, systematic approach create in practice? See below for an overview of WINN’s top 10 holdings using TipRanks’ holdings tool.
WINN holds 73 positions, and its top 10 holdings make up 57.6% of the fund. Top holdings Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) combine to make up nearly a quarter of the fund. The rest of the top 10 is dominated by the rest of the "Magnificent Seven" tech names, which are Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), and Meta Platforms (NASDAQ:META). Then, Eli Lilly (NYSE:LLY), Visa (NYSE:V), and Uber (NYSE:UBER) make up the remaining top holdings.
This is a relatively strong portfolio, as eight of the top 10 holdings feature Smart Scores of 8 out of 10 or better. 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. WINN itself registers an impressive ETF Smart Score of 8 out of 10.
Is WINN Stock a Buy, According to Analysts?
Turning to Wall Street, WINN has a Moderate Buy consensus rating, as 76.64% of analyst ratings are Buys, 20.87% are Holds, and 2.49% are Sells. At $20.27, the average WINN stock price target implies 8.18% upside potential.
What's Not to Like?
So far, this sounds like a pretty good ETF, so what's not to like? For all the talk of bottom-up research and systematic portfolio construction, it’s hard to see real differentiation or alpha here based on WINN's portfolio. While it takes a research-heavy, active approach, WINN doesn’t look all that different from popular growth index ETFs like the Vanguard Growth ETF (NYSEARCA:VUG) or the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) when looking at its top holdings.
WINN and VUG have 8 of the same top 10 holdings. Below, you’ll find an overview of VUG’s top 10 holdings, and if you looked at the table above showing WINN's top positions, it probably looks pretty familiar.
VUG's Top 10 Holdings
Similarly, WINN and SCHG also feature 8 of the same top 10 positions. See below for SCHG's top 10 holdings.
SCHG's Top 10 Holdings
In fact, because the aforementioned "Magnificent Seven" stocks have grown so much in market cap this year, WINN’s top holdings look fairly similar to those of the broadest of broad market index ETFs, like the Vanguard S&P 500 ETF (NYSEARCA:VOO). Take a look at VOO's top 10 holdings below.
VOO's Top 10 Holdings
This isn't WINN's fault per se, but the level to which the Magnificent Seven stocks have grown this year makes them large components for many index funds. Because it includes these seven stocks, the challenge for WINN is that it does not offer much differentiation from these index funds.
The further issue is that in addition to this lack of differentiation, it also charges a much higher expense than these funds. WINN’s expense ratio of 0.57% is orders of magnitude higher than those of VUG, SCHG (which both have expense ratios of 0.04%), or VOO (which has an even lower expense ratio of 0.03%).
So in year one, an investor initially investing $10,000 into WINN would pay $57 in fees, while an investor putting the same amount into VUG or SCHG would pay just $4. Meanwhile, an investor allocating the same amount to VOO would pay just $3.
This wide gulf in fees really becomes even more pronounced over time. Assuming that fees remain the same and that each of these funds returns 5% per year over a 10-year investment horizon, the investor who initially invested $10,000 in VUG or SCHG would pay just a minuscule $51 in fees over the course of the decade. Meanwhile, the investor who allocated the same amount to VOO would pay an even lower $39 in fees, a total so low that you almost barely notice it over 10 years.
However, an investor in WINN would almost certainly notice the $714 in fees they would pay for holding WINN for the same 10-year timeframe. This total is 18 times higher than the total expenses for VOO and 14 times higher than those of SCHG and VUG.
WINN's Performance Track Record
As you can see, WINN doesn’t offer a lot of differentiation versus these low-cost index funds, but it is a lot more expensive than them. WINN only launched in 2022, so while its lack of a long-term track record is through no fault of its own, it can’t yet match the long-term performance track records that these popular ETFs have compiled for many years.
For example, SCHG has beaten the market with a stellar 15.7% total annualized return over the past years, while VUG posted an impressive 14.9% total annualized return over the same time frame. The S&P 500 fund, VOO, has a total annualized return of 12.8% over the same time period.
WINN may certainly one day be able to make this same case for itself, but for now, it will take a while before it can match the long-term track record of its more established growth counterparts.
Conclusion
WINN looks like a solid ETF with a sound strategy, a favorable rating from analysts, and even an outperform-equivalent Smart Score. There isn’t really much of an issue with the ETF itself, and it could well be an ETF to keep an eye on in the future.
However, for now, it’s hard to really see a compelling reason to invest in WINN ahead of larger, more established ETFs like VUG and SCHG, which offer much of the same exposure at a far lower cost and with a longer track record of results under their belts.
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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Top holdings Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) combine to make up nearly a quarter of the fund. The team behind WINN believes that “companies with sustainable competitive advantages have the potential to drive superior levels of long-term growth and generate strong returns for shareholders,” and it’s hard to argue with this logic. VOO's Top 10 Holdings This isn't WINN's fault per se, but the level to which the Magnificent Seven stocks have grown this year makes them large components for many index funds.
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Top holdings Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) combine to make up nearly a quarter of the fund. The aptly-named Harbor Long-Term Growers ETF (NYSE:WINN) is an actively-managed ETF focused on long-term growth stocks that has posted a sizzling gain of nearly 40% year-to-date so far in 2023. WINN is an actively-managed ETF from Harbor Capital that “seeks long-term growth of capital by employing a proprietary combination of bottom-up, fundamental research and systematic portfolio construction,” according to Harbor Capital.
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Top holdings Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) combine to make up nearly a quarter of the fund. While it takes a research-heavy, active approach, WINN doesn’t look all that different from popular growth index ETFs like the Vanguard Growth ETF (NYSEARCA:VUG) or the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) when looking at its top holdings. VUG's Top 10 Holdings Similarly, WINN and SCHG also feature 8 of the same top 10 positions.
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Top holdings Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) combine to make up nearly a quarter of the fund. WINN holds 73 positions, and its top 10 holdings make up 57.6% of the fund. This is a relatively strong portfolio, as eight of the top 10 holdings feature Smart Scores of 8 out of 10 or better.
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2023-07-21 00:00:00 UTC
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Buying Tesla Stock Today Could Be Like Buying Apple Stock in 2009, According to This Wall Street Strategist
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https://www.nasdaq.com/articles/buying-tesla-stock-today-could-be-like-buying-apple-stock-in-2009-according-to-this-wall
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Tesla (NASDAQ: TSLA) reported solid financial results for the second quarter, beating expectations across the board. Deliveries soared 83% year over year as the company leaned into discounts, revenue rose 47% to $24.9 billion, and net income climbed 20% to $0.78 per diluted share. But Wall Street took issue with the price cuts, which pushed Tesla's operating margin to a two-year low, and the stock price slipped 10% following the report.
Wedbush analyst Dan Ives had a different reaction. He raised his price target on Tesla stock to $350 per share, and he praised Tesla for sacrificing profits in the short term. Ives said he believes prioritizing volume over margins today will make Tesla more profitable as it monetizes its full self-driving (FSD) technology in the future.
Ives elaborated in his research note on Tesla by drawing an interesting comparison: "We view Tesla where Apple (NASDAQ: AAPL) was in the 2008/2009 period, as [the company] was just starting to monetize its services." Ives opined that Tesla is playing chess while other automakers are playing checkers.
Where was Apple in 2008 and 2009?
Apple had a market cap of $175 billion at the beginning of 2008. That figure dropped as low as $70 billion during the year before rising to $190 billion by the end of 2009.
Of course, Apple is worth a lot more today. In fact, it recently became the first $3 trillion company, meaning its market cap has increased more than 15-fold in less than 14 years.
Hardware innovation undoubtedly played a role. Apple benefits from immense brand authority and consumer loyalty born of its ability to stay on the cutting edge of consumer electronics. The last 14 years have seen the company launch several new generations of the iPhone, debut the iPad and Apple Watch, and design the M1 and M2 chips. But Apple has also branched into services during that time, a move that unleashed its profitability. Dan Ives said he believes that evolution is responsible for much of its share price appreciation.
Apple surpassed 2 billion active devices this year, and it monetizes that installed based with adjacent services like iCloud storage, Apple Pay, and App Store downloads. The company also provides subscription content like Apple News+, Apple TV+, and Apple Music. Those services generate recurring revenue that earns much higher margins than cyclical hardware sales. Indeed, Apple achieved a gross profit margin of 36.1% in 2008, but that figure has since risen 710 basis points to 43.2% over the trailing 12 months.
Wedbush strategist Dan Ives says Tesla is in a similar position today. Wall Street has yet to recognize its true earnings potential because the company is just starting to build a software and services business atop its electric car business.
Artificial intelligence (AI) software and services
Tesla has two tremendous opportunities in artificial intelligence (AI) software and services, something that Ives argues is not reflected in the stock price. The first opportunity involves selling its FSD software directly to drivers, or licensing its FSD software to other automakers. Either way, CEO Elon Musk says the product earns close to 100% gross margin, and the global autonomous vehicle market is projected to grow at 35% annually to approach $2.4 trillion by 2032, according to Precedence Research.
The second opportunity involves using FSD-equipped cars to commercialize autonomous ride-hailing services. Tesla has not discussed a specific timeline, but the company plans to build a robotaxi next year, and the long-term implications are staggering. Ark Invest estimates that autonomous ride-hailing platforms will earn $9 trillion in annual revenue by 2030, and Musk says robotaxis could push gross margins to 70% (or higher), representing a radical increase in profitability from the 18.2% gross margin reported in the most recent quarter.
Tesla is working from a position of strength in both markets. The company has collected more autonomous driving data than other automakers, an advantage that hints at superior AI software, and its cars are outfitted with what Musk calls the "most efficient inference computer in the world."
Buying Tesla stock today could be like buying Apple stock in 2009
Tesla shareholders are unlikely to see 15-fold returns over the next 14 years, but the premise behind Ives' analogy to Apple is still valid: Tesla is currently building its hardware base in preparation for its evolution into AI software and services. So investors who focus on minute margin fluctuations from one quarter to the next may miss the big picture. At some point, assuming all goes smoothly, FSD software sales and robotaxi services could launch Tesla into the stratosphere by opening new revenue streams that earn much higher margins.
To that end, Ark Invest estimates that Tesla could be worth $7.9 trillion by 2027, and Musk says the company's valuation could increase tenfold from its current level, implying a market cap of roughly $8.5 trillion at some point in the future. Those projections make a compelling case for buying a small position in this growth stock today.
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Trevor Jennewine has positions in Tesla. The Motley Fool has positions in and recommends 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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Ives elaborated in his research note on Tesla by drawing an interesting comparison: "We view Tesla where Apple (NASDAQ: AAPL) was in the 2008/2009 period, as [the company] was just starting to monetize its services." Either way, CEO Elon Musk says the product earns close to 100% gross margin, and the global autonomous vehicle market is projected to grow at 35% annually to approach $2.4 trillion by 2032, according to Precedence Research. The company has collected more autonomous driving data than other automakers, an advantage that hints at superior AI software, and its cars are outfitted with what Musk calls the "most efficient inference computer in the world."
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Ives elaborated in his research note on Tesla by drawing an interesting comparison: "We view Tesla where Apple (NASDAQ: AAPL) was in the 2008/2009 period, as [the company] was just starting to monetize its services." Artificial intelligence (AI) software and services Tesla has two tremendous opportunities in artificial intelligence (AI) software and services, something that Ives argues is not reflected in the stock price. Ark Invest estimates that autonomous ride-hailing platforms will earn $9 trillion in annual revenue by 2030, and Musk says robotaxis could push gross margins to 70% (or higher), representing a radical increase in profitability from the 18.2% gross margin reported in the most recent quarter.
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Ives elaborated in his research note on Tesla by drawing an interesting comparison: "We view Tesla where Apple (NASDAQ: AAPL) was in the 2008/2009 period, as [the company] was just starting to monetize its services." Artificial intelligence (AI) software and services Tesla has two tremendous opportunities in artificial intelligence (AI) software and services, something that Ives argues is not reflected in the stock price. Buying Tesla stock today could be like buying Apple stock in 2009 Tesla shareholders are unlikely to see 15-fold returns over the next 14 years, but the premise behind Ives' analogy to Apple is still valid: Tesla is currently building its hardware base in preparation for its evolution into AI software and services.
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Ives elaborated in his research note on Tesla by drawing an interesting comparison: "We view Tesla where Apple (NASDAQ: AAPL) was in the 2008/2009 period, as [the company] was just starting to monetize its services." Where was Apple in 2008 and 2009? Ark Invest estimates that autonomous ride-hailing platforms will earn $9 trillion in annual revenue by 2030, and Musk says robotaxis could push gross margins to 70% (or higher), representing a radical increase in profitability from the 18.2% gross margin reported in the most recent quarter.
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2023-07-21 00:00:00 UTC
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TSMC Delays Start Of Chip Production In Arizona Plant
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https://www.nasdaq.com/articles/tsmc-delays-start-of-chip-production-in-arizona-plant
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(RTTNews) - Chip giant Taiwan Semiconductor Manufacturing Co Ltd. or TSMC (TSM) has delayed its plan to initiate production at its factory in Arizona State, citing a shortage of skilled workers. The chip production, which was expected to start in 2024, has now been pushed to 2025.
TSMC's planned fab in Arizona started construction in April 2021 with an aggressive schedule for mass production of chips to support the United States to meet its surging demand for new advanced chips.
During the chipmaker's second-quarterearnings callon Thursday, Chairman Mark Liu said, "We are now entering a critical phase of handling and installing the most advanced and dedicated equipment. However, we are encountering certain challenges as there is an insufficient number of skilled workers with the specialized expertise required for equipment installation in a semiconductor-grade facility."
Liu further said the company is working on improving the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time. The company now expects the production schedule of N4 process technology to be pushed out by 2025.
In December 2022, at an event in the factory in Arizona that was attended by U.S. President Joe Biden, TSMC had said its new plant was expected to start producing 4 -nanometer or nm processors in 2024.
TSMC, which produces the most advanced processors, including the chips in Apple's latest iPhones, iPads, and Macs, also said then that it would invest $40 billion in the new advanced chip factory, where Apple Inc. and other chip companies AMD and Nvidia would be first customers. Apple CEO Tim Cook tweeted then that the tech major would be the site's largest customer.
The construction of a second factory in Phoenix was expected to start in 2023, to be ready by 2026, which would produce 3nm chips, the smallest and most complex processors currently available.
TSMC's factories in Arizona are partially subsidized under the U.S. Government's CHIPS and Science Act, signed by Biden in August last year, which is a legislative package that contains $52 billion for domestic chip production.
TSMC earlier expected the two factories in Arizona to produce more than 600,000 wafers annually by 2026, which, according to White House officials, would be enough to meet the entire US demand for advanced chips.
As per reports, the company also planned to produce 2nm chips by 2025 in its overseas facilities mainly in Taiwan.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Chip giant Taiwan Semiconductor Manufacturing Co Ltd. or TSMC (TSM) has delayed its plan to initiate production at its factory in Arizona State, citing a shortage of skilled workers. Liu further said the company is working on improving the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time. TSMC earlier expected the two factories in Arizona to produce more than 600,000 wafers annually by 2026, which, according to White House officials, would be enough to meet the entire US demand for advanced chips.
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TSMC's planned fab in Arizona started construction in April 2021 with an aggressive schedule for mass production of chips to support the United States to meet its surging demand for new advanced chips. The company now expects the production schedule of N4 process technology to be pushed out by 2025. TSMC, which produces the most advanced processors, including the chips in Apple's latest iPhones, iPads, and Macs, also said then that it would invest $40 billion in the new advanced chip factory, where Apple Inc. and other chip companies AMD and Nvidia would be first customers.
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TSMC's planned fab in Arizona started construction in April 2021 with an aggressive schedule for mass production of chips to support the United States to meet its surging demand for new advanced chips. TSMC, which produces the most advanced processors, including the chips in Apple's latest iPhones, iPads, and Macs, also said then that it would invest $40 billion in the new advanced chip factory, where Apple Inc. and other chip companies AMD and Nvidia would be first customers. TSMC's factories in Arizona are partially subsidized under the U.S. Government's CHIPS and Science Act, signed by Biden in August last year, which is a legislative package that contains $52 billion for domestic chip production.
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The chip production, which was expected to start in 2024, has now been pushed to 2025. TSMC's planned fab in Arizona started construction in April 2021 with an aggressive schedule for mass production of chips to support the United States to meet its surging demand for new advanced chips. TSMC, which produces the most advanced processors, including the chips in Apple's latest iPhones, iPads, and Macs, also said then that it would invest $40 billion in the new advanced chip factory, where Apple Inc. and other chip companies AMD and Nvidia would be first customers.
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2023-07-21 00:00:00 UTC
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Tech’s Top-Heavy. Consider These Equal-Weight ETFs
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https://www.nasdaq.com/articles/techs-top-heavy-consider-these-equal-weight-etfs
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T
o say the technology sector is dominating the 2023 investment landscape is an understatement and the implications of the group’s impressive year-to-date run extend beyond sheer performance.
Consider the case of supposedly diverse market-capitalization-weighted indexes. As just one example, the S&P 500 currently allocates 28.56% of its weight to tech stocks. That’s more than combined weight assigned to the healthcare and financial services sectors, the index’s second- and third-largest sector weights, respectively.
Impressive rallies by the likes of Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA) and Meta Platforms (META) recently triggered an unscheduled rebalance of the famed Nasdaq-100 Index (NDX). That step was taken to reduce growing concentration risk in that benchmark and the related exchange traded funds.
Speaking of ETFs, these instruments can be the ideal avenues through which investors can combat sector and individual stock concentration risk because while cap-weighted funds dominate the landscape, there are plenty of equal-weight alternatives. And yes, some equal-weight tech ETFs provide robust tech exposure.
Invesco S&P 500 Equal Weight Technology ETF (RSPT)
The Invesco S&P 500 Equal Weight Technology ETF (RSPT) is the prime destination among dedicated tech ETFs apply the equal-weight methodology. The $3.19 billion ETF, which turns 17 years old in November, holds 66 stocks. Fun fact: None of those holdings exceed a weight of 1.74%.
Compare that with RSPT’s cap-weight rivals, some of which allocate 44%-45% of their rosters to just Apple and Microsoft. RSPT’s near-term relevance could be enhanced by a historical look at the Herfindahl-Hirschman Index (HHI).
“Tech’s current adjusted HHI level of 9.6 is in the 99th percentile of observations, indicating an extreme level of concentration for the sector compared to the long-term average of 4.9,” according to S&P Dow Jones Indices. “When concentration has been relatively high in the past, it has subsequently tended to decline.”
Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE)
The Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) follows the NASDAQ-100 Equal Weighted Index – the equal-weight counterpart to the aforementioned NDX. In simple terms, each member of QQQE’s roster is set at a weight of 1% when the fund rebalances.
Predictably, that leads to significant differences between the Direxion fund and those tracking the cap-weighted NDX. For example, QQQE allocates less than 60% of its combined weight to the technology, communication services and consumer discretionary sectors. In NDX, those sectors combine for over 80%.
“Typically, an equal-weighted approach can introduce more risk to a broad-based portfolio of large, mid, and small caps, given that smaller companies tend to be more volatile than large-cap stocks,” according to Direxion. “But this has not been the case with the Nasdaq-100®, whose smallest constituents are still considered large-cap. Over the last decade, equal- and market-cap weighted strategies have exhibited similar levels of 30-day volatility.”
ALPS Disruptive Technologies ETF (DTEC)
The ALPS Disruptive Technologies ETF (DTEC) merits a place in the equal-weight tech ETF conversation because it not does provide equal-weight exposure to 10 disruptive themes, it equally weights its components.
Those themes are Healthcare Innovation, Internet of Things, Clean Energy and Smart Grid, Cloud Computing, Data and Analytics, FinTech, Robotics and Artificial Intelligence, Cybersecurity, 3D Printing, and Mobile Payments.
The $112.38 million DTEC follows the Indxx Disruptive Technologies Index and turns six years old in December.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Impressive rallies by the likes of Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA) and Meta Platforms (META) recently triggered an unscheduled rebalance of the famed Nasdaq-100 Index (NDX). Speaking of ETFs, these instruments can be the ideal avenues through which investors can combat sector and individual stock concentration risk because while cap-weighted funds dominate the landscape, there are plenty of equal-weight alternatives. “Typically, an equal-weighted approach can introduce more risk to a broad-based portfolio of large, mid, and small caps, given that smaller companies tend to be more volatile than large-cap stocks,” according to Direxion.
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Impressive rallies by the likes of Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA) and Meta Platforms (META) recently triggered an unscheduled rebalance of the famed Nasdaq-100 Index (NDX). Invesco S&P 500 Equal Weight Technology ETF (RSPT) The Invesco S&P 500 Equal Weight Technology ETF (RSPT) is the prime destination among dedicated tech ETFs apply the equal-weight methodology. “When concentration has been relatively high in the past, it has subsequently tended to decline.” Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) The Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) follows the NASDAQ-100 Equal Weighted Index – the equal-weight counterpart to the aforementioned NDX.
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Impressive rallies by the likes of Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA) and Meta Platforms (META) recently triggered an unscheduled rebalance of the famed Nasdaq-100 Index (NDX). Invesco S&P 500 Equal Weight Technology ETF (RSPT) The Invesco S&P 500 Equal Weight Technology ETF (RSPT) is the prime destination among dedicated tech ETFs apply the equal-weight methodology. “When concentration has been relatively high in the past, it has subsequently tended to decline.” Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) The Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) follows the NASDAQ-100 Equal Weighted Index – the equal-weight counterpart to the aforementioned NDX.
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Impressive rallies by the likes of Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA) and Meta Platforms (META) recently triggered an unscheduled rebalance of the famed Nasdaq-100 Index (NDX). Speaking of ETFs, these instruments can be the ideal avenues through which investors can combat sector and individual stock concentration risk because while cap-weighted funds dominate the landscape, there are plenty of equal-weight alternatives. The $3.19 billion ETF, which turns 17 years old in November, holds 66 stocks.
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14771.0
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2023-07-21 00:00:00 UTC
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Pre-Markets Up After Nasdaq, S&P Selloff; AXP, SLB, CMA Report
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https://www.nasdaq.com/articles/pre-markets-up-after-nasdaq-sp-selloff-axp-slb-cma-report
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Yesterday’s pullback on the Nasdaq and S&P 500 brought an end to a solid streak of daily market gains this July, at least temporarily. The Dow notched its winning streak to nine-straight sessions, helping the index keep up with its faster-growing brethren. In this morning’s pre-market, the Dow is +88 points, the S&P 500 is +20 and the Nasdaq is up a solid +100 points.
As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). This is likely to cause a near-term disturbance in Nasdaq futures and, if yesterday’s -2% selloff was part of this, it already has.
We don’t have any major economic reports out this morning, but next week brings us plenty: Manufacturing and Services PMI; Case-Shiller home prices; Durable Goods; Advanced Retail, Wholesale and Trade in Goods; Pending Home Sales and next Friday’s big Personal Consumption Expenditures (PCE) report for June. Sandwiched mid-week is the next Fed meeting, where odds are still good another 25 basis-point (bps) rate hike will be forthcoming. A Fed funds rate of between 5.25-5.50% would be the highest we’ve seen since March of 2001.
American Express AXP posted mixed Q2 earnings this morning, with earnings of $2.89 per share outpacing the Zacks consensus by 9 cents, on record-high revenues of $15.05 billion, which missed the $15.52 billion estimate by -2.34%. The credit card giant is still up nicely on the top line from $13.4 billion posted a year ago, but shares are selling off in the pre-market on the news, -3%. Year to date, the company has been relatively in line with the S&P overall. For more on AXP’s earnings, click here.
Oilfield services leader Schlumberger SLB was also mixed in its Q2 results this morning, beating on the bottom line by a penny to earnings of 72 cents per share on top-line sales of $8.1 billion, below the $8.23 billion projected (though up from the $6.77 billion reported in the year-ago quarter). Shares are selling off -2.4% on the news, working off the +7% gains the company had made in the market year to date. For more on SLB’s earnings, click here.
Zacks Rank #5 (Strong Sell)-rated Comerica CMA posted surprise beats on both top and bottom lines this morning, with earnings of $2.01 per share easily ahead of the $1.89 in the Zacks consensus, on $924 million in revenues which outperformed the $904.8 million analysts were expecting, This is now the fifth-straight quarter the Texas-based financial services firm has surpassed earnings expectations. For more on CMA’s earnings, click here.
Questions or comments about this article and/or author? Click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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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As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). 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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The credit card giant is still up nicely on the top line from $13.4 billion posted a year ago, but shares are selling off in the pre-market on the news, -3%.
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As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). 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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. American Express AXP posted mixed Q2 earnings this morning, with earnings of $2.89 per share outpacing the Zacks consensus by 9 cents, on record-high revenues of $15.05 billion, which missed the $15.52 billion estimate by -2.34%.
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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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). American Express AXP posted mixed Q2 earnings this morning, with earnings of $2.89 per share outpacing the Zacks consensus by 9 cents, on record-high revenues of $15.05 billion, which missed the $15.52 billion estimate by -2.34%.
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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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). American Express AXP posted mixed Q2 earnings this morning, with earnings of $2.89 per share outpacing the Zacks consensus by 9 cents, on record-high revenues of $15.05 billion, which missed the $15.52 billion estimate by -2.34%.
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14772.0
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2023-07-21 00:00:00 UTC
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Is This the Bottom for the Semiconductor Market?
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AAPL
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https://www.nasdaq.com/articles/is-this-the-bottom-for-the-semiconductor-market
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nan
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nan
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The video focuses on recent commentary about the semiconductor market. Check out the short video to learn what semiconductor investors Jose Najarro and Billy Duberstein had to say. Also, consider subscribing and click the special offer link below.
*Stock prices used were the market prices of July 13, 2023. The video was published on July 21, 2023.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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 Taiwan Semiconductor Manufacturing 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
Billy Duberstein has positions in Apple and Taiwan Semiconductor Manufacturing. Jose Najarro has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, HP, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Check out the short video to learn what semiconductor investors Jose Najarro and Billy Duberstein had to say. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! The Motley Fool has positions in and recommends Apple, HP, and Taiwan Semiconductor Manufacturing.
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Check out the short video to learn what semiconductor investors Jose Najarro and Billy Duberstein had to say. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Billy Duberstein has positions in Apple and Taiwan Semiconductor Manufacturing. Jose Najarro has positions in Taiwan Semiconductor Manufacturing.
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10 stocks we like better than Taiwan Semiconductor Manufacturing When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Billy Duberstein has positions in Apple and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, HP, and Taiwan Semiconductor Manufacturing.
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Check out the short video to learn what semiconductor investors Jose Najarro and Billy Duberstein had to say. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Billy Duberstein has positions in Apple and Taiwan Semiconductor Manufacturing. Their opinions remain their own and are unaffected by The Motley Fool.
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14773.0
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2023-07-21 00:00:00 UTC
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Warren Buffett Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-detailed-fundamental-analysis-aapl-5
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
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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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14774.0
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2023-07-21 00:00:00 UTC
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Pre-Markets in Green to Close First Big Q2 Earnings Week
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AAPL
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https://www.nasdaq.com/articles/pre-markets-in-green-to-close-first-big-q2-earnings-week
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nan
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nan
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Yesterday’s pullback on the Nasdaq and S&P 500 brought an end to a solid streak of daily market gains this July, at least temporarily. The Dow notched its winning streak to nine-straight sessions, helping the index keep up with its faster-growing brethren. In this morning’s pre-market, the Dow is +88 points, the S&P 500 is +20 and the Nasdaq is up a solid +100 points.
As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). This is likely to cause a near-term disturbance in Nasdaq futures and, if yesterday’s -2% selloff was part of this, it already has.
We don’t have any major economic reports out this morning, but next week brings us plenty: Manufacturing and Services PMI; Case-Shiller home prices; Durable Goods; Advanced Retail, Wholesale and Trade in Goods; Pending Home Sales and next Friday’s big Personal Consumption Expenditures (PCE) report for June. Sandwiched mid-week is the next Fed meeting, where odds are still good another 25 basis-point (bps) rate hike will be forthcoming. A Fed funds rate of between 5.25-5.50% would be the highest we’ve seen since March of 2001.
American Express AXP posted mixed Q2 earnings this morning, with earnings of $2.89 per share outpacing the Zacks consensus by 9 cents, on record-high revenues of $15.05 billion, which missed the $15.52 billion estimate by -2.34%. The credit card giant is still up nicely on the top line from $13.4 billion posted a year ago, but shares are selling off in the pre-market on the news, -3%. Year to date, the company has been relatively in line with the S&P overall.
Oilfield services leader Schlumberger SLB was also mixed in its Q2 results this morning, beating on the bottom line by a penny to earnings of 72 cents per share on top-line sales of $8.1 billion, below the $8.23 billion projected (though up from the $6.77 billion reported in the year-ago quarter). Shares are selling off -2.4% on the news, working off the +7% gains the company had made in the market year to date.
Zacks Rank #5 (Strong Sell)-rated Comerica CMA posted surprise beats on both top and bottom lines this morning, with earnings of $2.01 per share easily ahead of the $1.89 in the Zacks consensus, on $924 million in revenues which outperformed the $904.8 million analysts were expecting, This is now the fifth-straight quarter the Texas-based financial services firm has surpassed earnings expectations.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Schlumberger Limited (SLB) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Comerica Incorporated (CMA) : 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
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). 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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The credit card giant is still up nicely on the top line from $13.4 billion posted a year ago, but shares are selling off in the pre-market on the news, -3%.
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As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). 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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. American Express AXP posted mixed Q2 earnings this morning, with earnings of $2.89 per share outpacing the Zacks consensus by 9 cents, on record-high revenues of $15.05 billion, which missed the $15.52 billion estimate by -2.34%.
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As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). 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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank #5 (Strong Sell)-rated Comerica CMA posted surprise beats on both top and bottom lines this morning, with earnings of $2.01 per share easily ahead of the $1.89 in the Zacks consensus, on $924 million in revenues which outperformed the $904.8 million analysts were expecting, This is now the fifth-straight quarter the Texas-based financial services firm has surpassed earnings expectations.
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As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). 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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Yesterday’s pullback on the Nasdaq and S&P 500 brought an end to a solid streak of daily market gains this July, at least temporarily.
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14775.0
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2023-07-21 00:00:00 UTC
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2 Unparalleled Growth Stocks to Buy and Hold No Matter What the Market Does in 2023
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AAPL
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https://www.nasdaq.com/articles/2-unparalleled-growth-stocks-to-buy-and-hold-no-matter-what-the-market-does-in-2023
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nan
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nan
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Investors have been hearing talk of a potential recession for nearly a year now. While the global economy still faces an array of challenges that present hurdles for companies across virtually every industry, certain companies continue to prove their resilience.
Two such resilient companies are Apple and Chewy, and their shares make excellent buy-and-hold investments now, regardless of whether another bear market appears on the horizon in 2023.
1. Apple
Apple (NASDAQ: AAPL) maintained its dominant position in the world of consumer tech through a fair number of economic cycles. While smartphones remain its top source of revenue and profits, it has consistently demonstrated that the versatility of its business model can lend it resilience in a wide range of market environments. Even though shifting consumer spending patterns have resulted in decelerating growth on its top and bottom lines, Apple still has a rock-solid balance sheet.
Over the trailing three-year period, Apple's annual revenue increased by 44%, while its operating income rose by 80%. Meanwhile, it boosted its cash on hand by 51%. In its most recently reported quarter, net sales totaled $95 billion and net income came to $24 billion. Both those figures were down slightly on a year-over-year basis, but were up 63% and 115%, respectively, on a three-year basis.
Currently, smartphones account for a little over half of Apple's net sales, while more than one-fifth is attributable to its services segment, which includes the App Store, as well as a wide variety of subscription-based offerings such as Apple TV+ and Apple Music. It also includes its financial products, like its recently launched "buy now, pay later" service and its advertising segment.
Besides the fact that Apple has proven to be a cash and profit machine time and time again throughout the years, I love the fact that it's a business with a proven ability to maintain its strong financial position from its flagship products while dipping into fragmented, lucrative industries.
Take its advertising business, for example. VP of Advertising Todd Veresi stated last year that Apple's goal is to take this business to $10 billion annually in the coming years. Meanwhile, market research firm Insider Intelligence estimates that Apple already rakes in $4 billion in revenue annually from advertising, and investment bank Evercore pegs the company's annual ad revenue potential at $30 billion by 2026.
The tech giant hit another all-time high for its installed base of devices in the most recent quarter. Patient investors can still expect a lot of upside from this stock.
2. Chewy
Chewy (NYSE: CHWY) has come a long way from its early days as an online pet goods retailer. It's now a behemoth that boasts a footprint across many lucrative areas of the pet care market. While many retailers have found the current economic environment difficult to swallow, Chewy benefits from the reality that much of the spending by owners on their pets and animals is not discretionary in nature.
From food to bedding to medicines to pet health insurance plans to easy access to licensed vets through Chewy's telehealth service, the company is rapidly evolving into a one-stop shop designed to meet the needs of pet owners in the digital age. Management noted on the company's fiscal first-quarterearnings callthat spending on healthcare, consumables, and nondiscretionary items accounted for the majority of its sales for the period.
In fact, these categories accounted for more than 84% of Chewy's net sales in its fiscal first quarter, which ended April 30. Recurring sales are the driving force behind Chewy's overall net sales growth. The company reported $2.8 billion in net sales for fiscal Q1, up 15% on a year-over-year basis. Sales derived from Chewy's Autoship program were responsible for about 75% of that total -- more than $2 billion.
Not only are customers buying from Chewy regularly, they are also, on average, spending more with the company. In fiscal Q1, net sales per active customer (NSPAC) over the preceding four quarters hit $512. This was an increase of nearly 15% from the previous year. Both the Autoship sales figure and the NSPAC figure set records for Chewy.
Chewy is slowly but surely building a track record of profitability. Fiscal 2022 was the first year the company turned a profit on an annual basis, and it booked $22 million in net income in its most recent quarter. There's a lot to like about this business, and with its recent announcement that it plans to expand into its first international market (Canada) later this year, the best may be yet 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
Rachel Warren has positions in Apple. The Motley Fool has positions in and recommends Apple and Chewy. 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) maintained its dominant position in the world of consumer tech through a fair number of economic cycles. While smartphones remain its top source of revenue and profits, it has consistently demonstrated that the versatility of its business model can lend it resilience in a wide range of market environments. While many retailers have found the current economic environment difficult to swallow, Chewy benefits from the reality that much of the spending by owners on their pets and animals is not discretionary in nature.
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Apple Apple (NASDAQ: AAPL) maintained its dominant position in the world of consumer tech through a fair number of economic cycles. Over the trailing three-year period, Apple's annual revenue increased by 44%, while its operating income rose by 80%. In its most recently reported quarter, net sales totaled $95 billion and net income came to $24 billion.
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Apple Apple (NASDAQ: AAPL) maintained its dominant position in the world of consumer tech through a fair number of economic cycles. Currently, smartphones account for a little over half of Apple's net sales, while more than one-fifth is attributable to its services segment, which includes the App Store, as well as a wide variety of subscription-based offerings such as Apple TV+ and Apple Music. Besides the fact that Apple has proven to be a cash and profit machine time and time again throughout the years, I love the fact that it's a business with a proven ability to maintain its strong financial position from its flagship products while dipping into fragmented, lucrative industries.
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Apple Apple (NASDAQ: AAPL) maintained its dominant position in the world of consumer tech through a fair number of economic cycles. In fact, these categories accounted for more than 84% of Chewy's net sales in its fiscal first quarter, which ended April 30. The company reported $2.8 billion in net sales for fiscal Q1, up 15% on a year-over-year basis.
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14776.0
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2023-07-21 00:00:00 UTC
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Should Schwab U.S. Large-Cap Growth ETF (SCHG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-u.s.-large-cap-growth-etf-schg-be-on-your-investing-radar-1
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nan
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nan
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund launched on 12/11/2009.
The fund is sponsored by Charles Schwab. It has amassed assets over $19.76 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.44%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 45.70% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 52.33% of total assets under management.
Performance and Risk
SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is float-adjusted market-capitalization weighted and includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index.
The ETF has gained about 37.95% so far this year and it's up approximately 23.07% in the last one year (as of 07/21/2023). In the past 52-week period, it has traded between $54.19 and $78.02.
The ETF has a beta of 1.09 and standard deviation of 24.29% for the trailing three-year period, making it a medium risk choice in the space. With about 246 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Large-Cap Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SCHG is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $94.17 billion in assets, Invesco QQQ has $209.99 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $19.76 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund launched on 12/11/2009.
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Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund launched on 12/11/2009.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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2023-07-21 00:00:00 UTC
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Looking for Tech Stocks? These 3 Are Great Buys
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AAPL
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https://www.nasdaq.com/articles/looking-for-tech-stocks-these-3-are-great-buys-10
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The tech industry is booming in 2023, a stark contrast to last year's economic-driven sell-off. Wall Street is increasingly bullish about high-growth markets like artificial intelligence (AI) and cloud computing, with some of the sectors' leaders enjoying monster rallies since Jan. 1.
As tech companies recover from 2022's macroeconomic headwinds, now is an excellent time to consider investing before their shares rise higher. The tech sector is filled with reliable options that have a history of consistent gains over the long term.
And if last year's market volatility proved anything, it's the importance of buying market-leading stocks and holding over many years to safeguard your investments from temporary headwinds.
Here are three great tech-stock buys right now.
1. Apple
As the world's most valuable company, with a market cap of $3 trillion, it's hard to go wrong with Apple (NASDAQ: AAPL). The stock has risen more than 300% in the last five years, attracting some of the most successful investors.
For instance, Warren Buffett's holding company Berkshire Hathaway has entrusted it with over 46% of its portfolio. The investment has clearly paid off, as Apple's stock has risen more than 635% since Berkshire first invested in 2016.
One of the biggest reasons to buy this tech stock is its immense brand loyalty from consumers. The company has developed a product model that keeps shoppers returning over the long term, which has seen annual revenue rise 48% in the last five years and operating income increase by 68%.
The company is home to some of the world's most popular products, along with a booming digital services business, making Apple's stock a no-brainer.
2. AMD
Investors have grown particularly bullish about Advanced Micro Devices (NASDAQ: AMD) this year, with its stock up 79% since Jan. 1. The company's growing potential in AI has strengthened its outlook and gained support from Wall Street.
According to data from Grand View Research, the AI market is expected to have a compound annual growth rate of 37% through 2030. High-powered chips are required to run and develop AI models, making companies like AMD crucial to the market's growth.
The company's biggest competitor, Nvidia, got a head start in the AI chip game. However, AMD has pivoted large parts of its business to the sector in a bid to catch up. The company has enlisted the help of Microsoft (NASDAQ: MSFT), which is supporting AMD's AI chip expansion with financial and engineering resources.
Meanwhile, AMD's recently released AI graphic processing unit (GPU), the MI300X, has reportedly caught the eye of Amazon Web Services, which is testing it for potential use.
AMD shares have skyrocketed 594% since 2018. A history of growth and solid prospects in AI make it a tech stock worth considering this year.
3. Microsoft
There are a lot of reasons to invest in Microsoft. The company is the second-most-valuable company in the world. Potent products such as Windows, Office, Xbox, Azure, and LinkedIn have bolstered its business and made its stock one of the most reliable investments. Shares gained 243% over the last five years, with annual revenue growth of 58%.
In 2023, Microsoft has strategically become one of the biggest names in AI. The company invested $1 billion in ChatGPT developer OpenAI in 2019 and has since added $10 billion to that figure. The partnership allowed Microsoft to obtain exclusive licenses on some of the start-up's most advanced AI models, giving the Windows company an edge over competitors like Amazon and Alphabet.
Consequently, in the last six months, Microsoft added AI upgrades to several of its home-grown platforms, such as Word, Excel, and Azure. The company's dominance in productivity software and solid position in cloud computing, paired with OpenAI's technology, could help it become the go-to for anyone seeking AI services.
If that turns out to be the case, Microsoft investors could enjoy massive gains over the long term, making its stock an excellent option right now.
10 stocks we like better than Apple
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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 Advanced Micro Devices, Alphabet, Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple As the world's most valuable company, with a market cap of $3 trillion, it's hard to go wrong with Apple (NASDAQ: AAPL). Wall Street is increasingly bullish about high-growth markets like artificial intelligence (AI) and cloud computing, with some of the sectors' leaders enjoying monster rallies since Jan. 1. Meanwhile, AMD's recently released AI graphic processing unit (GPU), the MI300X, has reportedly caught the eye of Amazon Web Services, which is testing it for potential use.
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Apple As the world's most valuable company, with a market cap of $3 trillion, it's hard to go wrong with Apple (NASDAQ: AAPL). High-powered chips are required to run and develop AI models, making companies like AMD crucial to the market's growth. If that turns out to be the case, Microsoft investors could enjoy massive gains over the long term, making its stock an excellent option right now.
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Apple As the world's most valuable company, with a market cap of $3 trillion, it's hard to go wrong with Apple (NASDAQ: AAPL). And if last year's market volatility proved anything, it's the importance of buying market-leading stocks and holding over many years to safeguard your investments from temporary headwinds. High-powered chips are required to run and develop AI models, making companies like AMD crucial to the market's growth.
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Apple As the world's most valuable company, with a market cap of $3 trillion, it's hard to go wrong with Apple (NASDAQ: AAPL). The investment has clearly paid off, as Apple's stock has risen more than 635% since Berkshire first invested in 2016. Shares gained 243% over the last five years, with annual revenue growth of 58%.
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14778.0
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2023-07-21 00:00:00 UTC
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3 Stocks Warren Buffett Is Buying That Violate Some of His Core Investing Principles
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AAPL
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https://www.nasdaq.com/articles/3-stocks-warren-buffett-is-buying-that-violate-some-of-his-core-investing-principles
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If you've ever wondered why Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett garners so much attention, just pull up a long-term chart of the company and you'll have a better understanding.
In his 58-plus years as CEO, he's overseen an aggregate increase in his company's Class A shares (BRK.A) of 4,180,982% through the closing bell on July 14, 2023. On an annualized basis, as of the end of 2022, Buffett's company has doubled the total return of the broad-based S&P 500 since he took over (19.8% vs.9.9%).
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
The Oracle of Omaha's outperformance is a reflection of his investing discipline. He has an abundance of unwritten rules he abides by, such as investing for the long term, putting money to work in businesses with well-defined moats, and buying into companies with trusted management teams.
However, you might be surprised to learn that Buffett has been violating some of his core investing principles with three important stock holdings.
"Buy a wonderful company at a fair price"
Despite growth stocks leading the broader market higher for more than a decade, Warren Buffett and his investing team have remained almost exclusively focused on value stocks. As the Oracle of Omaha has previously opined, "It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price."
Although Berkshire Hathaway's portfolio is filled with a number of great businesses, one, in particular, is about as far removed from a "fair price" as it's been in more than a decade. I'm talking about Berkshire's largest holding, tech stock Apple (NASDAQ: AAPL).
When Buffett and his team opened a position in Apple in the first quarter of 2016, it was consistently growing its sales by a double-digit percentage. More importantly, the company was valued at between 10x and 15x forward-year earnings. This made the United States' leading smartphone provider a phenomenal value.
But things have changed drastically in 2023. Apple's iPhone 14 hasn't flown off retail shelves as quickly as expected (first-half fiscal 2023 sales for iPhone are down $5.1 billion from the comparable period last year), and Mac sales are down 30% through the first six months of the current fiscal year. Wall Street's consensus calls for sales and profits to decline by 2% to 3% this year, which includes the positive tailwind of above-average inflation.
Even with the company's growth engine completely stalled, Warren Buffett and his team have effectively been paying close to 30x current and forward-year earnings to buy additional shares of Apple. Berkshire added 20.4 million shares to its already outsized position in the March-ended quarter.
For an investor who prides himself on getting a good deal, Buffett is certainly turning a blind eye to Apple's valuation.
"I never attempt to make money on the stock market"
Warren Buffett is also no stranger to pounding the table on long-term investing. He's suggested that you should "only buy something that you'd be perfectly happy to hold if the market shut down for 10 years."
A somewhat lesser-known quote on having a long-term mindset made by Buffett is:
I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
While there are plenty of stocks in Berkshire Hathaway's portfolio that have some impressive tenure, such as Coca-Cola, American Express, and Moody's -- which have been respective holdings since 1988, 1993, and 2000 -- the Oracle of Omaha's foray into gaming company Activision Blizzard (NASDAQ: ATVI) is a clear violation of Buffett's claim of never attempting to make money on the stock market.
During Berkshire Hathaway's 2022 annual shareholder meeting, Buffett told his audience of more than 30,000 shareholders and investors that his company's stake in Activision Blizzard is a merger/arbitrage play. Microsoft (NASDAQ: MSFT) made an all-cash offer of $95 per share to acquire Activision in January 2022, but the uncertainty of closing the deal due to possible antitrust concerns led shares of the company to trade substantially below Microsoft's offer price.
Although Buffett and his team have reduced their holdings in Activision Blizzard in three consecutive quarters (ended March 2023), they collectively purchased roughly 68.4 million shares of Activision stock in the first half of 2022 with the intent of making this a short-term arbitrage play.
To be completely fair, Buffett's short-term bet looks like it worked out. With a U.S. District Court judge tossing the Federal Trade Commission's injunction request last week, the merger looks like it's cleared its biggest hurdle. Nevertheless, this trade is in stark contrast to Buffett's typical buy-and-hold ethos.
Image source: Getty Images.
"I do not like debt and do not like to invest in companies that have too much debt"
Warren Buffett and his investing lieutenants, Todd Combs and Ted Weschler, are traditional, fundamentals-focused investors. They prefer analyzing income statements and balance sheets and aren't into taking shortcuts with charting software and other investing tools.
Considering the Oracle of Omaha's desire to buy wonderful companies at a fair price, it's not surprising that he avoids heavily indebted businesses. In Buffett's words,
I do not like debt and do not like to invest in companies that have too much debt, particularly long-term debt. With long-term debt, increases in interest rates can drastically affect company profits and make cash flows less predictable.
While it's sage advice, it hasn't stopped Buffett or his team from purchasing north of 224 million shares of energy stock Occidental Petroleum (NYSE: OXY) since the start of 2022. In the quarter that Berkshire Hathaway opened its position, Occidental had nearly $25.9 billion in net long-term debt, much of which came from its 2019 acquisition of Anadarko. Occidental's large debt load gives it far less flexibility than its peers in the oil and gas exploration and production space.
To boot, the Federal Reserve has undertaken its most aggressive rate-hiking cycle in four decades, which could make future refinancing pricey.
There are two guesses I can offer as to why Buffett broke one of his core investing principles and overlooked a glaring flaw in Occidental Petroleum's balance sheet. The first is the expectation that energy commodity prices would climb.
The tight global supply of oil is particularly good news for Occidental, which, despite being an integrated operator with downstream chemical plants, generates the bulk of its revenue from drilling. A sizable uptick in the spot price of crude oil would provide an outsized lift to its operating cash flow.
The other reason Buffett may have broken one of his key investing "rules" is because Berkshire Hathaway is sitting on nearly 83.9 million warrants of Occidental with an exercise price of roughly $59.62 per share. These warrants, along with $10 billion in preferred stock yielding 8% annually, were received in 2019 for the $10 billion Berkshire provided Occidental to help close its acquisition of Anadarko. Buffett would prefer Occidental's share price stay well above this exercise price.
10 stocks we like better than Apple
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*Stock Advisor returns as of July 10, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, Microsoft, and Moody's. 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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I'm talking about Berkshire's largest holding, tech stock Apple (NASDAQ: AAPL). He has an abundance of unwritten rules he abides by, such as investing for the long term, putting money to work in businesses with well-defined moats, and buying into companies with trusted management teams. Even with the company's growth engine completely stalled, Warren Buffett and his team have effectively been paying close to 30x current and forward-year earnings to buy additional shares of Apple.
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I'm talking about Berkshire's largest holding, tech stock Apple (NASDAQ: AAPL). If you've ever wondered why Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett garners so much attention, just pull up a long-term chart of the company and you'll have a better understanding. Even with the company's growth engine completely stalled, Warren Buffett and his team have effectively been paying close to 30x current and forward-year earnings to buy additional shares of Apple.
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I'm talking about Berkshire's largest holding, tech stock Apple (NASDAQ: AAPL). "Buy a wonderful company at a fair price" Despite growth stocks leading the broader market higher for more than a decade, Warren Buffett and his investing team have remained almost exclusively focused on value stocks. As the Oracle of Omaha has previously opined, "It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price."
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I'm talking about Berkshire's largest holding, tech stock Apple (NASDAQ: AAPL). While there are plenty of stocks in Berkshire Hathaway's portfolio that have some impressive tenure, such as Coca-Cola, American Express, and Moody's -- which have been respective holdings since 1988, 1993, and 2000 -- the Oracle of Omaha's foray into gaming company Activision Blizzard (NASDAQ: ATVI) is a clear violation of Buffett's claim of never attempting to make money on the stock market. That's right -- they think these 10 stocks are even better buys.
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14779.0
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2023-07-21 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Apple, Visa and Broadcom
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-apple-visa-and-broadcom
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For Immediate Release
Chicago, IL – July 21, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Visa V and Broadcom AVGO.
3 Stocks to Buy for Strong Cash-Generating Abilities
Strong cash flows reflect financial stability, allowing companies to pay down debt, pursue growth opportunities, and shell out dividend payments. These companies are also better equipped to weather an economic downturn, providing another beneficial advantage for investors from a long-term standpoint.
And for those interested in investing in strong cash flows, three companies – Apple, Visa and Broadcom – are all cash-generating machines. Let’s take a closer look at each.
Broadcom
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices. The company’s earnings outlook has modestly improved over the last several months.
For those with an appetite for income, Broadcom has that covered; AVGO shares currently yield a solid 2% annually, more than double the Zacks Electronics – Semiconductor industry average. Dividend growth is also there, with the payout growing by nearly 20% over the last five years.
And the company has the cash flow to back up the dividend payments, with Broadcom generating $4.4 billion in free cash flow throughout its latest quarter. The company’s free cash flow has remained on a solid trajectory.
Visa
Visa, a multinational financial services company, facilitates electronic funds transfers through Visa-branded debit, credit, and prepaid cards. The financial titan reported free cash flow of $3.6 billion in its latest quarter, 13% higher than the year-ago period.
The company has been a consistent earnings performer, exceeding top and bottom line expectations in 13 consecutive quarters. Keep an eye out for the company’s upcoming quarterly release on July 25th; estimates suggest 6% earnings growth on 11% higher revenues.
Visa shares could also entice growth-focused investors, with estimates alluding to 14% earnings growth in its current fiscal year (FY23) and an additional 13% in FY24. Sales growth is also expected to be solid, forecasted to improve by 11% and 10% in FY23 and FY24, respectively.
Apple
Apple is one of the biggest cash-generating machines in the S&P 500. The technology titan created $25.6 billion in free cash flow throughout its 2023 Q2, owing to its successful operations.
Apple shares have become a bit rich regarding valuation, perhaps steering away those implementing a value-conscious approach. Shares currently trade at a 32.5X forward earnings multiple (F1), well higher than the 24.9X five-year median and approaching highs of 35.6X in 2021.
The company is scheduled to unveil its Q3 release on August 3rd. Analysts have been modestly bullish for the quarter to be reported, with the $1.20 per share estimate up nearly 2% over the last 60 days. iPhone revenue will also be closely watched; the Zacks Consensus estimate for iPhone sales stands at $40.1 billion, modestly lower than the year-ago period.
Bottom Line
Companies boasting strong cash-generating abilities can be great investments, as they have plenty of cash to fuel growth, pay out dividends, and easily wipe out debt.
And as mentioned above, these companies are better equipped to handle an economic downturn, undeniably a positive.
For those seeking cash-generators, all three above fit the criteria.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
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Apple Inc. (AAPL) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – July 21, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Visa V and Broadcom AVGO. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. For those with an appetite for income, Broadcom has that covered; AVGO shares currently yield a solid 2% annually, more than double the Zacks Electronics – Semiconductor industry average.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – July 21, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Visa V and Broadcom AVGO. 3 Stocks to Buy for Strong Cash-Generating Abilities Strong cash flows reflect financial stability, allowing companies to pay down debt, pursue growth opportunities, and shell out dividend payments.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – July 21, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Visa V and Broadcom AVGO. 3 Stocks to Buy for Strong Cash-Generating Abilities Strong cash flows reflect financial stability, allowing companies to pay down debt, pursue growth opportunities, and shell out dividend payments.
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For Immediate Release Chicago, IL – July 21, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Visa V and Broadcom AVGO. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. And for those interested in investing in strong cash flows, three companies – Apple, Visa and Broadcom – are all cash-generating machines.
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14780.0
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2023-07-21 00:00:00 UTC
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3 Artificial Intelligence Stocks With More Potential Than Any Cryptocurrency
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AAPL
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https://www.nasdaq.com/articles/3-artificial-intelligence-stocks-with-more-potential-than-any-cryptocurrency-0
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nan
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At different times in recent years, the crypto market has been one of the most profitable and volatile places to invest. For instance, since 2018, the value of the best-known cryptocurrency, Bitcoin, has experienced highs of $64,000 and lows of $5,100 and currently sits at about $30,000.
And despite over 20,000 different cryptocurrencies on the market, none have delivered the long-term growth stability found in the tech industry.
Tech companies are in a near-constant state of innovation and development, which can almost guarantee consistent gains over many years. In 2023, all eyes have been on the booming artificial intelligence (AI) market, which is projected to expand at a compound annual rate of 37% through 2030. As a result, AI stocks are increasingly attractive investments this year and could offer more reliable gains than the crypto market.
Here are three AI stocks with more potential than any cryptocurrency.
1. AMD
Shares of Advanced Micro Devices (NASDAQ: AMD) have soared over 600% in the last five years, nearly double the growth of Bitcoin. The company has profited massively from technological advances that have increased demand for high-powered chips, granting it solid positions in multiple markets.
Wall Street has grown particularly bullish on AMD in 2023, boosting its stock by roughly 80% year to date, almost entirely based on its prospects in AI.
The semiconductor company isn't the first to get into AI, with fellow chipmaker Nvidia having a head start as the primary supplier of graphics processing units (GPUs) to OpenAI's ChatGPT. But AMD has massive support from many of Nvidia's clients and other tech companies that hope increased competition will bring down the cost of AI chips.
As a result, cloud giant Microsoft is bolstering AMD's AI chip expansion by supplying financial and engineering resources. The partnership is helping AMD bring the fight to Nvidia, with the company launching its most powerful GPU to date in mid-June.
It remains to be seen what companies the new chip will attract as clients. However, AMD's long history of success in the chip industry and solid leadership from CEO Lisa Su suggest it could soon match Nvidia's AI offerings and profit substantially from the growing sector.
2. Apple
Apple might not be the first name that comes to mind when considering AI companies, but its dominance in consumer tech puts it in the unique position as the one that will likely be the main driver of public adoption of the technology. Apple is using AI to power many of its software features across its product lineup.
Companies like Microsoft and Alphabet have frequently spoken about their AI endeavors, while Apple has taken a quieter approach and instead focused on impressing with AI-enabled software updates.
In June, it announced a revamp to the iPhone's autocorrect, which uses a language model similar to ChatGPT's to learn a user's texting style. Meanwhile, AirPod Pros will receive an AI upgrade that automatically turns off noise canceling when the wearer engages in a conversation.
Apple holds leading market shares across its product lineup, including smartphones, headphones, tablets, and smartwatches. As AI develops, it will likely continue adding new features to its devices, profiting from boosted sales as they attract shoppers.
Apple, which has risen roughly 300% since 2018, has more potential than any cryptocurrency and is far more reliable.
3. Amazon
Amazon (NASDAQ: AMZN) seemingly fell behind its biggest competitor, Microsoft, in AI, but has made substantial strides in the industry this year. Meanwhile, its leading market share in cloud computing with Amazon Web Services (AWS) could be a significant advantage over the long term.
Rather than attempt to compete with ChatGPT and Alphabet's similar service, Bard, Amazon aims to fulfill other generative AI needs. At the start of July, the company unveiled two new AI tools for AWS users.
The first is called Bedrock, which uses language models to help clients create custom chatbots, image-generation services, and content like full ad campaigns. AWS also introduced CodeWhisperer, a tool that makes software development more efficient by producing code.
In addition, Amazon is one of the few cloud companies going into hardware development. It is producing AI chips that, according to CEO Andy Jassy, will have "much better price-performance than you'll find anywhere else." As the home of the world's biggest cloud platform, its brand recognition could eventually put it on equal footing with Nvidia and AMD.
Amazon has become a household name with the resources to expand and succeed in nearly any market. Its growing venture into AI and other businesses makes it a better investment than any cryptocurrency.
10 stocks we like better than Advanced Micro Devices
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Bitcoin, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The semiconductor company isn't the first to get into AI, with fellow chipmaker Nvidia having a head start as the primary supplier of graphics processing units (GPUs) to OpenAI's ChatGPT. However, AMD's long history of success in the chip industry and solid leadership from CEO Lisa Su suggest it could soon match Nvidia's AI offerings and profit substantially from the growing sector. The first is called Bedrock, which uses language models to help clients create custom chatbots, image-generation services, and content like full ad campaigns.
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As a result, AI stocks are increasingly attractive investments this year and could offer more reliable gains than the crypto market. Shares of Advanced Micro Devices (NASDAQ: AMD) have soared over 600% in the last five years, nearly double the growth of Bitcoin. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Bitcoin, Microsoft, and Nvidia.
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As a result, AI stocks are increasingly attractive investments this year and could offer more reliable gains than the crypto market. But AMD has massive support from many of Nvidia's clients and other tech companies that hope increased competition will bring down the cost of AI chips. Apple Apple might not be the first name that comes to mind when considering AI companies, but its dominance in consumer tech puts it in the unique position as the one that will likely be the main driver of public adoption of the technology.
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As a result, AI stocks are increasingly attractive investments this year and could offer more reliable gains than the crypto market. Here are three AI stocks with more potential than any cryptocurrency. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Bitcoin, Microsoft, and Nvidia.
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14781.0
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2023-07-20 00:00:00 UTC
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2 Best Value Stocks to Buy Right Now
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https://www.nasdaq.com/articles/2-best-value-stocks-to-buy-right-now-0
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Value stocks have historically outperformed most other asset classes. During the latest bear market, for instance, investors leaned heavily into value stocks as a hedge against inflation and a weakening global economy.
With the tide seemingly turning in the market, however, growth stocks will probably start to outperform value-oriented assets over the next few years. Nonetheless, some value stocks are still worth buying as this shift in sentiment unfolds. Here is a brief overview of two top-shelf value stocks that stand out as superb buys in this dynamic market.
Image source: Getty Images.
Berkshire Hathaway: A diversified powerhouse
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is a diversified holding company that operates a wide range of businesses in different industries. The company is led by Warren Buffett, one of the most successful and respected investors in history.
The company owns and controls many well-known companies, such as Geico, BNSF Railway, Berkshire Hathaway Energy, Dairy Queen, and Duracell. These businesses provide stable and consistent earnings for the holding company.
Berkshire Hathaway also invests in a large number of publicly traded companies, such as Apple, Bank of America, Coca-Cola, American Express, and T-Mobile. These investments give the holding company exposure to some of the most profitable and dominant companies in the world.
Berkshire Hathaway has a long history of delivering market-beating returns to its shareholders. Since 1965, its stock has generated compound annual returns of 19.8% per year, compared to 9.9% for the S&P 500. Now, the holding company's stock performance did lag behind the market during the previous bull market, but it has regained its edge over the past year.
BRK.A data by YCharts
With the challenges posed by rising interest rates and a possible economic slowdown, Berkshire's resilient portfolio of stocks and businesses should continue to drive market-beating returns -- especially with its shares trading at a mere 2.6 times trailing sales.
British American Tobacco: A resilient tobacco giant
British American Tobacco is one of the largest tobacco companies in the world, with a presence in more than 180 countries and a portfolio of popular brands such as Dunhill, Lucky Strike, Pall Mall, Kent, Rothmans, and Camel. The company also has a growing presence in the reduced-risk products segment, which includes e-cigarettes, heated tobacco products, and oral nicotine products.
British American Tobacco has been able to maintain its profitability and cash flow despite the challenges facing the tobacco industry, such as declining smoking rates, regulatory pressures, and increased competition. Wall Street analysts, in fact, expect the tobacco giant to grow its earnings per share by double digits over the next few years, thanks heavily to its opportunity in the rapidly growing noncombustible product category.
Perhaps most importantly, though, British American Tobacco offers an extremely generous dividend. At current levels, the company's stock pays a mouthwatering 8.47% yield on an annualized basis. This noteworthy yield is also well supported by the company's earnings, as evinced by its fairly reasonable 74.2% trailing-12-month payout ratio. Moreover, its shares are attractively priced at under 7 times projected earnings, which is cheap for a blue chip dividend stock. This favorable mix of yield and attractive price point ought to appeal to dyed-in-the-wool value investors.
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American Express is an advertising partner of The Ascent, a Motley Fool company. George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends British American Tobacco P.l.c. and T-Mobile US and recommends the following options: long January 2024 $40 calls on British American Tobacco P.l.c., long January 2024 $47.50 calls on Coca-Cola, and short January 2024 $40 puts on British American Tobacco P.l.c. 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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During the latest bear market, for instance, investors leaned heavily into value stocks as a hedge against inflation and a weakening global economy. Berkshire Hathaway also invests in a large number of publicly traded companies, such as Apple, Bank of America, Coca-Cola, American Express, and T-Mobile. BRK.A data by YCharts With the challenges posed by rising interest rates and a possible economic slowdown, Berkshire's resilient portfolio of stocks and businesses should continue to drive market-beating returns -- especially with its shares trading at a mere 2.6 times trailing sales.
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Berkshire Hathaway: A diversified powerhouse Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is a diversified holding company that operates a wide range of businesses in different industries. British American Tobacco: A resilient tobacco giant British American Tobacco is one of the largest tobacco companies in the world, with a presence in more than 180 countries and a portfolio of popular brands such as Dunhill, Lucky Strike, Pall Mall, Kent, Rothmans, and Camel. and T-Mobile US and recommends the following options: long January 2024 $40 calls on British American Tobacco P.l.c., long January 2024 $47.50 calls on Coca-Cola, and short January 2024 $40 puts on British American Tobacco P.l.c.
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British American Tobacco: A resilient tobacco giant British American Tobacco is one of the largest tobacco companies in the world, with a presence in more than 180 countries and a portfolio of popular brands such as Dunhill, Lucky Strike, Pall Mall, Kent, Rothmans, and Camel. 10 stocks we like better than Berkshire Hathaway 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 American Express is an advertising partner of The Ascent, a Motley Fool company.
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Berkshire Hathaway has a long history of delivering market-beating returns to its shareholders. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! The Motley Fool has positions in and recommends Apple and Berkshire Hathaway.
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14782.0
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2023-07-20 00:00:00 UTC
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China's sagging economy looms over quarterly results around the world
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AAPL
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https://www.nasdaq.com/articles/chinas-sagging-economy-looms-over-quarterly-results-around-the-world
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By Noel Randewich
July 20 (Reuters) - China's frail growth could weigh on companies with exposure to the world's second-largest economy, including Apple AAPL.O, big chipmakers and luxury retailers as they report quarterly results in the next few weeks.
Wall Street is bracing for a steep drop in second-quarter U.S. earnings, with profit margins expected to be hurt by U.S. inflation and weaker spending. Both U.S. and European companies with exposure to China could be hit by that economy's sluggish growth as its post-COVID momentum has faltered rapidly.
China's weak economic figures have weighed on its stock market, limiting the Shanghai Composite Index's .SSEC gain in 2023 to 2.6%, compared to the S&P 500's .SPX 18% increase.
"The post-zero COVID reopening has been disappointing by basically all measures in China, and the country's hesitance to do broad-based consumer-facing stimulus is weighing on sentiment," said Ross Mayfield, investment strategy analyst at Baird. "That's going to have a spillover effect on the European and U.S. companies that are levered to the country."
Early reports suggest that spillover is real. Swiss engineering group ABB ABBN.S said Thursday that its orders in China fell 9% in the second quarter, while Cartier-owner Richemont CFR.S this week posted quarterly sales in Asia that were slightly lower than expected.
Richemont's outlook for the year was "somewhat tempered" due to uncertainties in the Chinese macroeconomy that could affect both high-end and aspirational consumers, according to analysts at Bernstein who took part in a call with executives.
With China's youth unemployment hitting a record 21% in June, young consumers may favor moderately-priced products and services and forgo big ticket purchases.
Tesla sold a record 247,217 China-made vehicles in the second quarter, but on Wednesday reported lower gross margins due to the company's price war with rivals, including Chinese competitors NIO 9866.HK and Xpeng 9868.HK.
Upcoming reports from NXP Semiconductors NV NXPI.O on July 24 and Texas Instruments TXN.O on July 25 will serve as barometers for chip demand. China accounted for 36% of NXP's revenue last year and half of Texas Instruments' revenue.
Analysts estimate NXP reporting a 3.2% drop in quarterly revenue, with Texas Instruments' revenue tumbling 16%, which would be its steepest drop since 2009, according to Refinitiv.
Corning Inc GLW.N, whose Gorilla glass is used in smartphones made by Apple and Samsung Electronics 005930.KS, is expected on July 25 to report a 21% drop in adjusted net income, according to Refinitiv.
The specialty glass maker blamed "anticipated recession-level demand" for weak results in its previous quarterly report last April. China accounted for 30% of Corning's net sales last year.
Apple, the world's most valuable company, saw its sales in China dip 2.9% in its March quarter, worse than the 2.5% drop in overall revenue. Analysts on average see the iPhone maker's revenue falling 1.7% to $81.6 billion for the June quarter, which would be the lowest in two years, according to Refinitiv.
Coffee maker Starbucks SBUX.O in May reported quarterly results that beat estimates, powered by recovering demand in China.
U.S. companies that operate in China are also facing uncertainty related to trade disputes between Washington and Beijing, particularly in semiconductors. Chipmakers are currently grappling with Washington's sweeping set of rules imposed in October to hobble China's chip industry.
"Many companies' manufacturing base is heavily Chinese-based, so are companies planning to diversify their manufacturing base or even 're-shore' back to the US? If so, that's presumably higher-cost and would weigh on gross margins," said David Klink, senior analyst with Huntington Private Bank.
Chinese stocks lag as traders worry about frail economy https://tmsnrt.rs/3XVsdui
Apple's quarterly revenue seen dipping to lowest since 2021 https://tmsnrt.rs/46RbYmf
GRAPHIC-China's faltering growth https://tmsnrt.rs/46OtQOD
GRAPHIC-China's export slide steepens in June https://tmsnrt.rs/44EVOug
GRAPHIC-Apple's quarterly revenue seen dipping to lowest since 2021 https://tmsnrt.rs/43uLsMK
FACTBOX-Major banks slash China growth forecasts as weak data underlines policy needs
WRAPUP 6-China's frail Q2 GDP growth raises urgency for more policy support
(Reporting by Noel Randewich in Oakland, California; additional reporting by Chavi Mehta in Bangalore, Caroline Valetkovitch in New York and Mimosa Spencer in Paris; editing by David Gaffen and Nick Zieminski)
((noel.randewich@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Noel Randewich July 20 (Reuters) - China's frail growth could weigh on companies with exposure to the world's second-largest economy, including Apple AAPL.O, big chipmakers and luxury retailers as they report quarterly results in the next few weeks. "The post-zero COVID reopening has been disappointing by basically all measures in China, and the country's hesitance to do broad-based consumer-facing stimulus is weighing on sentiment," said Ross Mayfield, investment strategy analyst at Baird. Tesla sold a record 247,217 China-made vehicles in the second quarter, but on Wednesday reported lower gross margins due to the company's price war with rivals, including Chinese competitors NIO 9866.HK and Xpeng 9868.HK.
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By Noel Randewich July 20 (Reuters) - China's frail growth could weigh on companies with exposure to the world's second-largest economy, including Apple AAPL.O, big chipmakers and luxury retailers as they report quarterly results in the next few weeks. Analysts estimate NXP reporting a 3.2% drop in quarterly revenue, with Texas Instruments' revenue tumbling 16%, which would be its steepest drop since 2009, according to Refinitiv. Chinese stocks lag as traders worry about frail economy https://tmsnrt.rs/3XVsdui Apple's quarterly revenue seen dipping to lowest since 2021 https://tmsnrt.rs/46RbYmf GRAPHIC-China's faltering growth https://tmsnrt.rs/46OtQOD GRAPHIC-China's export slide steepens in June https://tmsnrt.rs/44EVOug GRAPHIC-Apple's quarterly revenue seen dipping to lowest since 2021 https://tmsnrt.rs/43uLsMK FACTBOX-Major banks slash China growth forecasts as weak data underlines policy needs WRAPUP 6-China's frail Q2 GDP growth raises urgency for more policy support (Reporting by Noel Randewich in Oakland, California; additional reporting by Chavi Mehta in Bangalore, Caroline Valetkovitch in New York and Mimosa Spencer in Paris; editing by David Gaffen and Nick Zieminski) ((noel.randewich@tr.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Noel Randewich July 20 (Reuters) - China's frail growth could weigh on companies with exposure to the world's second-largest economy, including Apple AAPL.O, big chipmakers and luxury retailers as they report quarterly results in the next few weeks. Analysts estimate NXP reporting a 3.2% drop in quarterly revenue, with Texas Instruments' revenue tumbling 16%, which would be its steepest drop since 2009, according to Refinitiv. Chinese stocks lag as traders worry about frail economy https://tmsnrt.rs/3XVsdui Apple's quarterly revenue seen dipping to lowest since 2021 https://tmsnrt.rs/46RbYmf GRAPHIC-China's faltering growth https://tmsnrt.rs/46OtQOD GRAPHIC-China's export slide steepens in June https://tmsnrt.rs/44EVOug GRAPHIC-Apple's quarterly revenue seen dipping to lowest since 2021 https://tmsnrt.rs/43uLsMK FACTBOX-Major banks slash China growth forecasts as weak data underlines policy needs WRAPUP 6-China's frail Q2 GDP growth raises urgency for more policy support (Reporting by Noel Randewich in Oakland, California; additional reporting by Chavi Mehta in Bangalore, Caroline Valetkovitch in New York and Mimosa Spencer in Paris; editing by David Gaffen and Nick Zieminski) ((noel.randewich@tr.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Noel Randewich July 20 (Reuters) - China's frail growth could weigh on companies with exposure to the world's second-largest economy, including Apple AAPL.O, big chipmakers and luxury retailers as they report quarterly results in the next few weeks. China accounted for 36% of NXP's revenue last year and half of Texas Instruments' revenue. Analysts estimate NXP reporting a 3.2% drop in quarterly revenue, with Texas Instruments' revenue tumbling 16%, which would be its steepest drop since 2009, according to Refinitiv.
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14783.0
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2023-07-20 00:00:00 UTC
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3 Stocks to Buy for Strong Cash-Generating Abilities
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-for-strong-cash-generating-abilities
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Strong cash flows reflect financial stability, allowing companies to pay down debt, pursue growth opportunities, and shell out dividend payments. These companies are also better equipped to weather an economic downturn, providing another beneficial advantage for investors from a long-term standpoint.
And for those interested in investing in strong cash flows, three companies – Apple AAPL, Visa V, and Broadcom AVGO – are all cash-generating machines. Let’s take a closer look at each.
Broadcom
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices. The company’s earnings outlook has modestly improved over the last several months.
Image Source: Zacks Investment Research
For those with an appetite for income, Broadcom has that covered; AVGO shares currently yield a solid 2% annually, more than double the Zacks Electronics – Semiconductor industry average. Dividend growth is also there, with the payout growing by nearly 20% over the last five years.
Image Source: Zacks Investment Research
And the company has the cash flow to back up the dividend payments, with Broadcom generating $4.4 billion in free cash flow throughout its latest quarter. As we can see below, the company’s free cash flow has remained on a solid trajectory.
Image Source: Zacks Investment Research
Visa
Visa, a multinational financial services company, facilitates electronic funds transfers through Visa-branded debit, credit, and prepaid cards. The financial titan reported free cash flow of $3.6 billion in its latest quarter, 13% higher than the year-ago period.
Image Source: Zacks Investment Research
The company has been a consistent earnings performer, exceeding top and bottom line expectations in 13 consecutive quarters. Keep an eye out for the company’s upcoming quarterly release on July 25th; estimates suggest 6% earnings growth on 11% higher revenues.
Visa has enjoyed strong sales growth, as illustrated in the chart below.
Image Source: Zacks Investment Research
Visa shares could also entice growth-focused investors, with estimates alluding to 14% earnings growth in its current fiscal year (FY23) and an additional 13% in FY24. Sales growth is also expected to be solid, forecasted to improve by 11% and 10% in FY23 and FY24, respectively.
Apple
Apple is one of the biggest cash-generating machines in the S&P 500. The technology titan created $25.6 billion in free cash flow throughout its 2023 Q2, owing to its successful operations.
Image Source: Zacks Investment Research
Apple shares have become a bit rich regarding valuation, perhaps steering away those implementing a value-conscious approach. Shares currently trade at a 32.5X forward earnings multiple (F1), well higher than the 24.9X five-year median and approaching highs of 35.6X in 2021.
The company is scheduled to unveil its Q3 release on August 3rd. Analysts have been modestly bullish for the quarter to be reported, with the $1.20 per share estimate up nearly 2% over the last 60 days. iPhone revenue will also be closely watched; the Zacks Consensus estimate for iPhone sales stands at $40.1 billion, modestly lower than the year-ago period.
Image Source: Zacks Investment Research
Bottom Line
Companies boasting strong cash-generating abilities can be great investments, as they have plenty of cash to fuel growth, pay out dividends, and easily wipe out debt.
And as mentioned above, these companies are better equipped to handle an economic downturn, undeniably a positive.
For those seeking cash-generators, all three above – Apple AAPL, Visa V, and Broadcom AVGO – fit the criteria.
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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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And for those interested in investing in strong cash flows, three companies – Apple AAPL, Visa V, and Broadcom AVGO – are all cash-generating machines. For those seeking cash-generators, all three above – Apple AAPL, Visa V, and Broadcom AVGO – fit the criteria. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. And for those interested in investing in strong cash flows, three companies – Apple AAPL, Visa V, and Broadcom AVGO – are all cash-generating machines. For those seeking cash-generators, all three above – Apple AAPL, Visa V, and Broadcom AVGO – fit the criteria.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. And for those interested in investing in strong cash flows, three companies – Apple AAPL, Visa V, and Broadcom AVGO – are all cash-generating machines. For those seeking cash-generators, all three above – Apple AAPL, Visa V, and Broadcom AVGO – fit the criteria.
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And for those interested in investing in strong cash flows, three companies – Apple AAPL, Visa V, and Broadcom AVGO – are all cash-generating machines. For those seeking cash-generators, all three above – Apple AAPL, Visa V, and Broadcom AVGO – fit the criteria. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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14784.0
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2023-07-20 00:00:00 UTC
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Netflix (NFLX) Q2 Earnings Beat, Revenues Rise Y/Y on User Gain
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https://www.nasdaq.com/articles/netflix-nflx-q2-earnings-beat-revenues-rise-y-y-on-user-gain
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Netflix NFLX reported second-quarter 2023 earnings of $3.29 per share, which beat the Zacks Consensus Estimate by 16.25% and increased 2.8% year over year.
Revenues of $8.19 billion increased 2.7% year over year but lagged the consensus mark by 0.93%. On a foreign-exchange neutral basis, revenues grew 6% year over year.
The streaming giant gained 5.89 million paid subscribers globally, thanks to a crackdown on password-sharing and the introduction of paid sharing in more than 100 countries in May, which represents more than 80% of Netflix’s revenue base. The company lost 0.97 million paid subscribers in the year-ago quarter.
Netflix now expects revenue growth to accelerate in the second half of 2023, driven by the launch of paid sharing. However, it anticipates foreign-exchange neutral average revenues per membership (ARM) to be flat to slightly down year over year due to limited price increases over the past 12 months and immaterial revenues from advertising and paid-sharing.
ARM decreased 3% year over year on a reported basis and 1% on a foreign-exchange neutral basis in the second quarter. ARM declined due to a higher mix of membership growth from lower ARM countries and limited price increases over the past 12 months.
Netflix scrapped the basic ad-free plan for new and rejoining members in Canada and is doing the same for U.K. and U.S.-based subscribers.
Netflix, Inc. Price, Consensus and EPS Surprise
Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote
At the end of the second quarter, the company had 238.39 million paid subscribers globally, up 8% year over year.
Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, it benefited from a strong content portfolio in the reported quarter.
Hit shows like The Night Agent, Beef, Queen Charlotte: A Bridgerton Story and Love is Blind S4 helped Netflix win subscribers. Noteworthy movies include Murder Mystery 2, The Mother and Extraction 2.
Shares of this Zacks Rank #3 (Hold) company have declined almost 6% in pre-market trading. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s shares have outperformed Amazon, Disney and Apple year to date. While Netflix shares have gained 62%, Amazon, Disney and Apple returned 61.1%, 50.2% and 0.2%, respectively.
Netflix’s Segmental Revenue Details
The United States and Canada (“UCAN") reported revenues of $3.60 billion, which rose 1.7% year over year and accounted for 44% of total revenues. The figure missed our model estimate of $3.71 billion, primarily due to lower ARPU.
ARPU climbed 1% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for UCAN increased 3.1% from the year-ago quarter to 75.57 million. The company gained 1.17 million paid subscribers compared with the year-ago quarter’s loss of 1.3 million.
Europe, Middle East & Africa (“EMEA”) reported revenues of $2.56 billion, which increased 4.3% year over year and accounted for 31.3% of total revenues. The figure beat our model estimate of $2.51 billion. ARPU decreased 2.7% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for EMEA increased 9.4% from the year-ago quarter to 79.81 million. Netflix gained 2.43 million paid subscribers compared with the year-ago quarter’s net loss of 0.77 million.
Latin America’s (“LATAM”) revenues of $1.08 billion increased 4.6% year over year, contributing 13.2% of total revenues. The figure beat our model estimate of $1.07 billion.
ARPU declined 1% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for LATAM rose 7.2% from the year-ago quarter to 42.47 million. It gained 1.22 million paid subscribers in the reported quarter.
Asia Pacific’s (“APAC”) revenues of $919 million increased 1.2% year over year and accounted for 11.2% of total revenues. The figure missed our model estimate of $926.7 million, primarily due to lower ARPU.
ARPU decreased 7% year over year on a foreign-exchange neutral basis.
The paid subscriber base for APAC jumped 16.5% from the year-ago quarter to 40.55 million. The company added 1.07 million paid subscribers in the quarter, down 0.9% year over year.
Operating Details
Marketing expenses increased 9.1% year over year to $627.2 million. As a percentage of revenues, marketing expenses increased 40 basis points (bps) to 7.7%.
Operating income increased 15.8% year over year to $1.83 billion, beating Netflix’s guidance of $1.71 billion. Operating margin expanded 250 bps on a year-over-year basis to 22.3%.
Balance Sheet & Free Cash Flow
Netflix had $8.58 billion of cash and cash equivalents as of Jun 30, 2023 compared with $7.83 billion as of Mar 31, 2023.
Total debt was $14.47 billion as of Jun 30, 2023 compared with $14.44 billion as of Mar 31, 2023.
Streaming content obligations were $20.90 billion as of Jun 30, 2023 compared with $21.53 billion as of Mar 31, 2023.
Netflix reported a free cash flow of $1.34 billion compared with a free cash flow of $2.1 billion in the previous quarter.
Guidance
For the third quarter of 2023, Netflix forecasts earnings of $3.52 per share, indicating an almost 10% increase from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for the same is pegged at $3.14 per share, currently lower than the company’s expectation, but up 1.29% from the figure reported in the year-ago quarter.
Total revenues are anticipated to be $8.52 billion, suggesting growth of 7% year over year and also on a forex-neutral basis. The consensus mark for revenues stands at $8.63 billion, higher than the company’s expectation and indicating 8.96% growth from the figure reported in the year-ago quarter.
The quarterly operating margin is projected to be 22.2% compared with the 19.8% reported in the year-ago quarter.
For 2023, Netflix expects the operating margin to be in the 18-20% range. It expects to generate a free cash flow of at least $5 billion, higher than its previous guidance of $3.5 billion.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, it benefited from a strong content portfolio in the reported quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Hit shows like The Night Agent, Beef, Queen Charlotte: A Bridgerton Story and Love is Blind S4 helped Netflix win subscribers.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, it benefited from a strong content portfolio in the reported quarter. ARM declined due to a higher mix of membership growth from lower ARM countries and limited price increases over the past 12 months.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, it benefited from a strong content portfolio in the reported quarter. Netflix, Inc. Price, Consensus and EPS Surprise Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote At the end of the second quarter, the company had 238.39 million paid subscribers globally, up 8% year over year.
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Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, it benefited from a strong content portfolio in the reported quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix NFLX reported second-quarter 2023 earnings of $3.29 per share, which beat the Zacks Consensus Estimate by 16.25% and increased 2.8% year over year.
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14785.0
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2023-07-20 00:00:00 UTC
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Technology Sector Update for 07/20/2023: AAPL, SAP, OMCL, RCAT
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-07-20-2023%3A-aapl-sap-omcl-rcat
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nan
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Tech stocks were lower late Thursday with the Technology Select Sector SPDR Fund (XLK) declining 2% and the Philadelphia Semiconductor index slumping 3.6%.
In company news, Apple (AAPL) is facing a potential shortage of new iPhone models, the iPhone 15 Pro and Pro Max, at the September launch as the company struggles with manufacturing larger screens for the units, The Information reported Thursday. Apple shares dropped 0.9%.
SAP (SAP) shares were down 6.3% after the company reported Thursday Q2 adjusted earnings of 1.07 euros ($1.19) a share, up from 0.95 euros a year earlier. Analysts polled by Capital IQ expected 1.16 euros.
Omnicell (OMCL) shares dropped 6.8% after Wells Fargo downgraded the company to underweight from overweight and cut its price target to $56 from $65.
Red Cat (RCAT) was up 2.6% after it said Thursday its Teal 2 military-grade small unmanned aircraft system is available for sale through the GSA Advantage website, an ordering service in the General Services Administration for use by government agencies.
The views and 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 company news, Apple (AAPL) is facing a potential shortage of new iPhone models, the iPhone 15 Pro and Pro Max, at the September launch as the company struggles with manufacturing larger screens for the units, The Information reported Thursday. Tech stocks were lower late Thursday with the Technology Select Sector SPDR Fund (XLK) declining 2% and the Philadelphia Semiconductor index slumping 3.6%. Omnicell (OMCL) shares dropped 6.8% after Wells Fargo downgraded the company to underweight from overweight and cut its price target to $56 from $65.
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In company news, Apple (AAPL) is facing a potential shortage of new iPhone models, the iPhone 15 Pro and Pro Max, at the September launch as the company struggles with manufacturing larger screens for the units, The Information reported Thursday. Apple shares dropped 0.9%. SAP (SAP) shares were down 6.3% after the company reported Thursday Q2 adjusted earnings of 1.07 euros ($1.19) a share, up from 0.95 euros a year earlier.
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In company news, Apple (AAPL) is facing a potential shortage of new iPhone models, the iPhone 15 Pro and Pro Max, at the September launch as the company struggles with manufacturing larger screens for the units, The Information reported Thursday. SAP (SAP) shares were down 6.3% after the company reported Thursday Q2 adjusted earnings of 1.07 euros ($1.19) a share, up from 0.95 euros a year earlier. The views and 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 company news, Apple (AAPL) is facing a potential shortage of new iPhone models, the iPhone 15 Pro and Pro Max, at the September launch as the company struggles with manufacturing larger screens for the units, The Information reported Thursday. Tech stocks were lower late Thursday with the Technology Select Sector SPDR Fund (XLK) declining 2% and the Philadelphia Semiconductor index slumping 3.6%. Apple shares dropped 0.9%.
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14786.0
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2023-07-20 00:00:00 UTC
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NFLX & TSLA Earnings: Our 10 Major Takeaways
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AAPL
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https://www.nasdaq.com/articles/nflx-tsla-earnings%3A-our-10-major-takeaways
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The first batch of mega-cap tech earnings arrived last night, as streaming giant Netflix (NFLX) and EV titan Tesla (TSLA) announced their quarterly reports.
At first glance, the numbers weren’t great. After all, both TSLA and NFLX stock dropped after earnings were released.
However, a detailed analysis of Netflix’s and Tesla’s earnings shows that the two tech giants actually had pretty strong quarters – and that things will only get better from here.
Plus, these two earnings reports suggest that investors should keep buying all dips in tech stocks as they emerge.
With that said, let’s take a look at our 10 biggest takeaways from NFLX and TSLA earnings reports.
TSLA Earnings: “A Tale of Two Cities”
Electric vehicle demand remains very strong. Tesla’s core automotive topline metrics were very strong. Its affordable models 3 and Y saw huge growth of nearly 100% in the quarter. And the more-expensive models S and X also experienced a very nice growth rebound, indicating strong demand for Tesla EVs across all price points. Management also sounded confident about go-forward demand trends, maintaining a target for full-year auto volumes to increase by more than 50%. Clearly, EV demand remains very strong at the current moment, especially at Tesla.
EV price cuts are likely done, and profit margins should start improving. The big weakness in Tesla’s earnings report was its automotive gross margin, which dropped below 20% for the first time since before the pandemic (it peaked above 30% in early 2022). This 10-plus-point drop in gross margins is due mostly to price cuts. But on the company’s conference call, management implied that they are done with price cuts. They also put a huge emphasis on cost-cutting efforts going forward. With price cuts in the rear-view mirror and cost cuts on the way, it increasingly appears that Tesla’s profit margins bottomed this quarter. Next quarter, they should start to reexpand for the first time since 2021.
The solar industry is feeling the Fed-driven heat. Solar deployments at Tesla dropped a whopping 32% in the quarter. That’s mostly thanks to the fact that solar project developers are increasingly delaying new solar projects since interest rates are at such high levels. It does seem like interest rates have peaked. Therefore, the worst of this headwind for the solar industry has likely passed. However, the industry’s sensitivity to interest rates is something to monitor going forward.
The energy storage industry remains on fire. While the solar industry is getting hit hard by higher interest rates, the energy storage industry is not. Tesla’s solar deployments dropped 32% in the quarter. But its energy storage deployments rose 222% in that same time. These two alternative energy industries are experiencing “A Tale of Two Cities.” And the energy storage industry’s impressive resilience to high interest rates emphasizes that energy storage stocks are a “Strong Buy” at the moment.
Tesla stock will likely rebound from this selloff. Overall, it appears the major headwind that has weighed on Tesla stock over the past 18 months – falling profit margins – will become a tailwind next quarter. We expect the combination of resilient topline growth and reexpanding profit margins will drive TSLA stock higher in the second half of 2023.
NFLX Earnings: Password-Sharing Crackdown Shines, Ad Business Doesn’t
The password-sharing crackdown is working to reenergize paid subscriber growth. Netflix added nearly 6 million paid subscribers in the second quarter of 2023. And management expects to add another ~6 million paid subs next quarter. Those are some of the best subscriber growth numbers the company has reported since the pandemic. And they are due to the early success of Netflix’s password-sharing crackdown efforts. Turns out, there were a lot of password-sharers out there. And most of them would rather pay a little extra than lose access to the streaming platform.
The ad business is ramping very slowly. While Netflix’s password-sharing crackdown is going very well, its new ad business is struggling. The company continues to grow the number of members it has on its ad tiers. But the growth is proving to be painfully slow. It’s not yet robust enough to offset the lower average revenue per paid subscriber due to the password-sharing crackdown. The result? Accelerated paid subscriber growth is not yet turning into accelerated overall revenue growth.
Netflix is in the early innings of a big growth rebound. Although Netflix’s revenue growth rates didn’t meaningfully accelerate in the quarter, they are expected to jump to nearly 10% next quarter and above 10% in Q4. In other words, Netflix’s big growth rebound will start to be reflected next quarter, mostly as a result of the ad business gaining traction. If the projections prove true, Netflix is in the first inning of a big, multi-quarter growth rebound, powered by its password-sharing crackdown efforts and ad tier ramp.
Profit margins remain very good and stable in the streaming business. Netflix is impressively trying to execute a growth turnaround without spending an arm and a leg. And as a result, its profit margins are hanging around the 20% level. If the company can successfully pull off this growth turnaround, then it could be looking at a multi-year stretch of double-digit revenue growth with steady profit margin expansion. That’s a bullish combination.
Netflix stock should have a strong showing over the next 12 months. We think the one glaring weakness in Netflix’s business today – the new ad tier – will improve meaningfully over the next few quarters as the macroeconomic environment stabilizes, consumer spending trends rebound, and corporations start advertising again. Therefore, we think that over the next 12 months, both of Netflix’s new growth efforts will start firing on all cylinders. Once they start working together, NFLX stock is likely to climb to new highs.
The General Takeaway
Overall, the stock market isn’t posting a great reaction to last night’s mega-cap tech earnings reports. But we think both Netflix and Tesla actually delivered very solid numbers that broadly emphasize the bull thesis for each stock.
Furthermore, we think those earnings reports underscore the current bull thesis on all tech stocks.
The simple reality is that tech was eating the world before artificial intelligence showed up to the party. Now AI is here, and it means technology firms will gobble up the global economy.
We’re confident that tech will be the global economy in five years.
Netflix will control media. Tesla will control energy. Alphabet (GOOGL) will control information. And Microsoft (MSFT) will control work.
That’s the reality we live in today.
Invest in this AI Revolution. Or get crushed by it. The choice is yours – but we think the right answer is obvious.
The Final Word on NFLX & TSLA Earnings
And what better AI stock to buy than the company that started this whole AI Boom – OpenAI, the creator of ChatGPT.
In case you missed it, OpenAI has done a lot since ChatGPT’s launch in November 2022. And 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…
Though I did manage to unearth an investment “loophole” that allows you to take a stake in OpenAI now – before its highly anticipated IPO.
We believe 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 NFLX & TSLA Earnings: Our 10 Major Takeaways 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. If the projections prove true, Netflix is in the first inning of a big, multi-quarter growth rebound, powered by its password-sharing crackdown efforts and ad tier ramp. We think the one glaring weakness in Netflix’s business today – the new ad tier – will improve meaningfully over the next few quarters as the macroeconomic environment stabilizes, consumer spending trends rebound, and corporations start advertising again.
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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 The first batch of mega-cap tech earnings arrived last night, as streaming giant Netflix (NFLX) and EV titan Tesla (TSLA) announced their quarterly reports. These two alternative energy industries are experiencing “A Tale of Two Cities.” And the energy storage industry’s impressive resilience to high interest rates emphasizes that energy storage stocks are a “Strong Buy” at the moment.
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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 The first batch of mega-cap tech earnings arrived last night, as streaming giant Netflix (NFLX) and EV titan Tesla (TSLA) announced their quarterly reports. These two alternative energy industries are experiencing “A Tale of Two Cities.” And the energy storage industry’s impressive resilience to high interest rates emphasizes that energy storage stocks are a “Strong Buy” at the moment.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. In other words, Netflix’s big growth rebound will start to be reflected next quarter, mostly as a result of the ad business gaining traction. If the projections prove true, Netflix is in the first inning of a big, multi-quarter growth rebound, powered by its password-sharing crackdown efforts and ad tier ramp.
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14787.0
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2023-07-20 00:00:00 UTC
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3 Growth Stocks to Buy to Turn $10,000 Into $1 Million
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AAPL
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https://www.nasdaq.com/articles/3-growth-stocks-to-buy-to-turn-%2410000-into-%241-million
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The current bull market is ablaze with money to be made right now.
After a brutal decline in 2022, stocks have come roaring back in the last eight months, led by a resurgence in technology stocks. In 2023, the Nasdaq is already up an incredible 40%, while the benchmark S&P 500 has gained 20%. The bulls are firmly in control once again.
Yet even with this year’s strong run, many stocks remain below their all-time highs. They’re only just beginning to recover from the terrible declines suffered last year as the U.S. Federal Reserve steadily raised interest rates to lower inflation. Also, this year’s rally has been concentrated in a handful of tech stocks.
Many well-known and excellent companies have stocks that remain undervalued. It’s not too late for investors to grab shares and ride them to long-term wealth. Here are three growth stocks to buy to turn $10,000 into $1 million.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple’s (NASDAQ:AAPL) stock has a lot of momentum pushing it forward. The consumer electronics giant’s share price is currently sitting at an all-time high on a split-adjusted basis of just under $200.
And Apple is currently the only publicly traded company with a $3 trillion market capitalization, making it the most valuable concern in the world. The company is riding high on a number of catalysts, including continued strong demand for its signature iPhone, as well as the launch of a new augmented reality headset.
Now word comes that Apple is developing its own version of artificial intelligence sensation ChatGPT. According to multiple media reports, Apple is hard at work creating its own AI large language model internally. AAPL engineers refer to the AI project as “machine learning,” a concept which originated in the 1940s but debuted in the 1950s. It was the originator of AI.
Apple tech experts engineers already have a prototype chatbot that employees refer to as “Apple GPT.” The company plans to integrate the technology into future products and devices. AAPL stock is up 56% this year with no signs of slowing down.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
If there’s one segment of the tech sector that is red hot right now, it is semiconductors. Advanced Micro Devices (NASDAQ:AMD) is gaining ground in the space.
Fueled by the hype surrounding AI, the share price of AMD has increased 82% this year. In the last five years, AMD stock has gained 605%, making it one of the best performing tech stocks around. Yet even with the mammoth run, AMD shares look like they can keep rising.
With demand for microchips and semiconductors expected to grow exponentially in coming years, the possibilities are endless for AMD stock. In June of this year, AMD introduced its generative AI chip called the “MI300X.” The company claims that the chip is the most advanced accelerator for generative AI applications.
Plans are in the works for it to power Microsoft’s (NASDAQ:MSFT) Azure virtual machines. AMD chips also power most video game consoles, including the latest versions of the Xbox and PlayStation. Additionally, AMD continues to take market share away from rival chipmaker Intel (NASDAQ:INTC) in the data center market.
Chipotle (CMG)
Source: Joshua Resnick / Shutterstock.com
Not all of the growth is in tech. What about Chipotle (NYSE:CMG)? The popular Mexican quick service restaurant chain has seen its stock takeoff like a tech security this year. Since January, CMG stock has risen 56%, bringing its five year gains to 376%.
Thirty years after it was founded, Chipotle remains in full growth mode, recently announcing plans to expand to the Middle East for the first time. Chipotle currently has 3,200 outlets in the U.S. with just over 50 locations in Canada and Europe. Plenty of room is out there for further international expansion.
Robust earnings have helped make CMG stock a constant outperformer and one of the top restaurant stocks to own. For this year’s Q1, Chipotle reported that its same-store sales rose 11%, even as its menu prices rose an average of 10% from a year earlier. This suggests that consumers can’t get enough of Chipotle, remaining loyal even when prices rise, due to impacts of inflation. CMG stock continues to be a high-growth investment.
On the date of publication, Joel Baglole held long positions in AAPL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post 3 Growth Stocks to Buy to Turn $10,000 Into $1 Million 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: Eric Broder Van Dyke / Shutterstock.com Apple’s (NASDAQ:AAPL) stock has a lot of momentum pushing it forward. AAPL engineers refer to the AI project as “machine learning,” a concept which originated in the 1940s but debuted in the 1950s. AAPL stock is up 56% this year with no signs of slowing down.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple’s (NASDAQ:AAPL) stock has a lot of momentum pushing it forward. AAPL engineers refer to the AI project as “machine learning,” a concept which originated in the 1940s but debuted in the 1950s. AAPL stock is up 56% this year with no signs of slowing down.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple’s (NASDAQ:AAPL) stock has a lot of momentum pushing it forward. AAPL engineers refer to the AI project as “machine learning,” a concept which originated in the 1940s but debuted in the 1950s. AAPL stock is up 56% this year with no signs of slowing down.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple’s (NASDAQ:AAPL) stock has a lot of momentum pushing it forward. AAPL engineers refer to the AI project as “machine learning,” a concept which originated in the 1940s but debuted in the 1950s. AAPL stock is up 56% this year with no signs of slowing down.
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2023-07-20 00:00:00 UTC
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Credit Suisse Maintains Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/credit-suisse-maintains-apple-aapl-outperform-recommendation-0
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Fintel reports that on July 20, 2023, Credit Suisse maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 1.47% 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 1.47% from its latest reported closing price of 195.10.
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 6395 funds or institutions reporting positions in Apple. This is a decrease of 6 owner(s) or 0.09% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.90%, an increase of 51.19%. Total shares owned by institutions decreased in the last three months by 2.31% to 9,917,341K shares.
The put/call ratio of AAPL is 0.92, indicating a bullish outlook.
What are Other Shareholders Doing?
Bank Julius Baer & Co. Ltd, Zurich holds 4,098,544K shares representing 26.06% ownership of the company. In it's prior filing, the firm reported owning 4,138K shares, representing an increase of 99.90%. The firm increased its portfolio allocation in AAPL by 10.16% over the last quarter.
Berkshire Hathaway holds 915,560K shares representing 5.82% 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 2.96% 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 2.21% 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 1.81% 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.
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 20, 2023, Credit Suisse maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.90%, an increase of 51.19%. The put/call ratio of AAPL is 0.92, indicating a bullish outlook.
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Fintel reports that on July 20, 2023, Credit Suisse maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.90%, an increase of 51.19%. The put/call ratio of AAPL is 0.92, indicating a bullish outlook.
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Fintel reports that on July 20, 2023, Credit Suisse maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.90%, an increase of 51.19%. The put/call ratio of AAPL is 0.92, indicating a bullish outlook.
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Fintel reports that on July 20, 2023, Credit Suisse maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.90%, an increase of 51.19%. The put/call ratio of AAPL is 0.92, indicating a bullish outlook.
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14789.0
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2023-07-20 00:00:00 UTC
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Logitech (LOGI) to Report Q1 Earnings: What's in Store?
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AAPL
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https://www.nasdaq.com/articles/logitech-logi-to-report-q1-earnings%3A-whats-in-store
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nan
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nan
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Logitech International LOGI is slated to report first-quarter fiscal 2024 results on Jul 24.
The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $905.2 million, indicating a decrease of 22% from the year-ago quarter. The consensus mark for non-GAAP earnings stands at 47 cents per share, suggesting a significant decline of 36.5% year over year. Earnings estimate for the first quarter has been revised a penny northward in the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters and missed the same on two occasions, the average surprise being 2.8%.
Let’s see how things have shaped up before the upcoming announcement.
Logitech International S.A. Price and EPS Surprise
Logitech International S.A. price-eps-surprise | Logitech International S.A. Quote
Factors to Consider
Logitech’s fiscal fourth-quarter earnings are likely to have been negatively impacted by the weakened demand for personal computers (PCs), the main sales booster for its PC peripheral products. Per the latest Gartner report, worldwide PC shipments declined 16.6% year over year to 59.7 million units in the second quarter of 2023.
In 2020 and 2021, Logitech benefited from the elevated demand for its Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device tools, mainly driven by the heightening of work-from-home and learn-from-home trends.
However, the weakening global economy amid ongoing macroeconomic and geopolitical issues enhanced global recessionary concerns, thereby prompting enterprises to postpone their large IT spending plan. Furthermore, continued industry layoffs on growing recessionary concerns are hampering the demand for PC peripheral products by organizations.
Additionally, a lack of the need for product refreshes is expected to have negatively impacted the demand for Logitech’s products in the to-be-reported quarter. The majority of the global working population refreshed PC and related peripheral products about just 2 years ago in the wake of the pandemic-led work-from-home trend.
Our estimates for Logitech’s Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device first-quarter revenues are pegged at $186.5 million, $40.4 million, $168.9 million and $140.5 million, respectively. The estimated revenue figures for Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device depict a year-over-year decline of 24.2%, 31.9%, 25.8% and 23.3%, respectively.
Additionally, the softened demand for gaming products and accessories is likely to have hurt Logitech’s Gaming category’s performance in the first quarter. The demand for gaming products shot up due to the growing popularity of online video games and eSports amid the stay-at-home scenario during the pandemic. However, the demand softened due to the reopening of economic and business activities. Our estimate suggests the company’s Gaming revenues to decline 16.7% year over year to $235.7 million in the to-be-reported quarter.
Furthermore, declining consumer spending amid high inflation and interest rates is likely to have hurt the demand for Logitech’s Mobile Speakers, Tablet & Other Accessories and Audio & Wearables products. Our estimate of $14.9 million for Mobile Speakers revenues implies a decline of 33.2%, while sales of Tablet & Other Accessories are anticipated to fall 7.1% to $61.9 million. Our estimate for Audio & Wearables stands at $51.4 million, suggesting a decline of 25.9% from the year-ago quarter.
However, the company’s cost-saving initiative, which includes headcount reduction, is likely to have partially offset the negative impacts of the aforementioned factors on profitability.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for LOGI 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 Logitech has an Earnings ESP of +0.86%, it carries a Zacks Rank #4 (Sell). 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, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +10.19%. 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%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.20 per share, flat with the year-ago quarter. It is estimated to report revenues of $81.21 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Block is slated to report second-quarter 2023 results on Aug 3. The company has a Zacks Rank #3 and an Earnings ESP of +12.99% at present. Block’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on one occasion and matching it once, the average surprise being 22.6%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 35 cents per share, suggesting a whopping increase of 94.4% from the year-ago quarter’s earnings of 18 cents. Block’s quarterly revenues are estimated to increase 15.4% year over year to $5.08 billion.
Alibaba carries a Zacks Rank #3 and has an Earnings ESP of +6.19%. The company is anticipated to report first-quarter fiscal 2024 results on Aug 3. 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 $31.21 billion, suggesting a year-over-year rise of 1.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Logitech International S.A. (LOGI) : 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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Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ 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 Logitech International S.A. (LOGI) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. In 2020 and 2021, Logitech benefited from the elevated demand for its Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device tools, mainly driven by the heightening of work-from-home and learn-from-home trends.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Logitech International S.A. (LOGI) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Our estimates for Logitech’s Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device first-quarter revenues are pegged at $186.5 million, $40.4 million, $168.9 million and $140.5 million, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Logitech International S.A. (LOGI) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Logitech International S.A. Price and EPS Surprise Logitech International S.A. price-eps-surprise | Logitech International S.A. Quote Factors to Consider Logitech’s fiscal fourth-quarter earnings are likely to have been negatively impacted by the weakened demand for personal computers (PCs), the main sales booster for its PC peripheral products.
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Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ 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 Logitech International S.A. (LOGI) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $905.2 million, indicating a decrease of 22% from the year-ago quarter.
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2023-07-20 00:00:00 UTC
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25 Millionaire-Maker AI Stocks to Buy Now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
To say that artificial intelligence is transforming the world would be a drastic understatement. The launch of ChatGPT has pushed AI into full focus, with the chatbot reaching 1 million users in less than one week. This new technology is revolutionizing entire fields, performing many human tasks from office work to construction. It is also helping companies take significant steps forward toward producing fully autonomous vehicles. Whether you’re excited by the rise of AI or nervous about what it will mean for the future of humanity, it is impossible not to pay attention to it. For investors, this means assessing the best AI stocks to buy as the market’s newest gold rush continues
InvestorPlace analyst Luke Lango sees tremendous opportunity in the new AI boom. He recently described the industry as having a moment similar to the release of the iPhone, which changed everything for Apple (NASDAQ:AAPL). In his words:
“The AI megatrend is just getting started. ChatGPT really kickstarted this AI frenzy back in November 2022. We’re basically just seven months into the AI Boom. By comparison, the Internet Boom lasted almost 10 years – from the launch of the world’s first website in 1991 to the peak of the dot-com bubble in 2000.
Compared to other big booms like gold in the 1970s, housing in the 2000s, and cryptos in the 2010s, this AI Boom is still both relatively young and small. It has a lot of runway ahead of it.”
More and more companies are embracing the new technology, implementing machine learning and generative AI in their operations and products.
This means that the best AI stocks to buy aren’t always firms that operate strictly in the space. Companies across multiple sectors can offer investors exposure to the booming market as they double down on AI investment.
What are the best buys for investors seeking to cash in? Let’s take a closer look at the best AI stocks that still have room to run.
AI Stocks to Buy: Adobe (ADBE)
Source: r.classen / Shutterstock.com
While it’s perhaps best known as the maker of Photoshop, Adobe (NASDAQ:ADBE) has a long history of innovation in the graphic design and document management space. It surged during the Covid-19 pandemic of 2020, and while ADBE stock has since come down, it is making impressive progress, up 50% in 2023. It has demonstrated strong fundamentals, reporting better-than-expected earnings for Q2 2023. As a result, Wall Street analysts are optimistic about its growth prospects heading into the second half of the year.
The AI boom should give investors and analysts even more reason to embrace ADBE stock.
As the economy transitions toward further reliance on AI, Adobe is primed to ride this wave to the top. It is incorporating generative AI into its well-known products. In May 2023, it added AI as a “Creative Co-Pilot” to Photoshop to enhance the beloved software’s features. This will likely make it an even more popular tool among graphic design professionals and other creatives who depend upon it, making ADBE a clear choice among AI stocks to buy.
Alphabet (GOOG, GOOGL)
Source: salarko / Shutterstock.com
All Silicon Valley giants are working overtime to help spur the AI revolution. It’s no surprise that Google’s parent company would be at the forefront.
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) got off to a somewhat rocky start when its AI chatbot Bard displayed clear misinformation. However, the company’s significant progress on the AI front shouldn’t go unappreciated.
In the months since, Google hasn’t slowed down in its quest to dominate this market. As the MIT Technology Review reports, it’s “throwing generative AI at everything,” applying it to products both past and present. Google’s PaLM 2 language model is already part of 25 products, including Google Maps, Google Sheets and Gmail. The company plans on using this new tech to help improve the user search experience too.
No matter where the AI market goes from here, Alphabet will lead the movement. It has the size and resources to invest in research and development wherever it needs to and scale production at any time.
Amazon (AMZN)
Source: Mike Mareen / Shutterstock.com
For all the attention it has received, the modern AI revolution did not begin with ChatGPT. It really began when Amazon (NASDAQ:AMZN) introduced the world to its Alexa device in 2014. Since then, the world has become accustomed to turning on lights, music and many other things through voice commands. Years later, Amazon has only redoubled its focus in AI, using it to optimize its products and services. The company is working to increase the speed at which it delivers packages by using AI to help it strategically place inventory.
Unlike many of its Big Tech rivals, Amazon isn’t necessarily trying to produce a chatbot of its own to rival ChatGPT. Moreover, it has decided to provide users with the tools they need to build their own. It responded to the rise of the chatbot by adding two new AI language models to its Amazon Web Services platform.
Amazon is also highly focused on robotics. It is attempting to acquire iRobot (NASDAQ:IRBT), the company behind the Roomba vacuum cleaner. More recently, it announced a partnership with AI startup Hugging Face, a software development hub that counts many tech sector giants as clients. Like Alphabet, Amazon is in an excellent position to continue growing by cornering new parts of the AI market.
Autodesk (ADSK)
Source: JHVEPhoto / Shutterstock.com
Contrary to its name, Autodesk (NASDAQ:ADSK) doesn’t operate strictly in the automotive space. It is actually a dynamic software producer that supports many companies across multiple sectors, primarily serving architects and engineers. Its primary software products are Revit and Fusion 360, which are geared toward architectural design and manufacturing. These programs help make Autodesk a great bet for investors seeking AI exposure. As InvestorPlace contributor Vandita Jadeja reports:
“These two are the main products of the company and using generative AI for the same will pay off in the long-term. Through these tools, engineers can set a range of parameters and have the software run simulations. It can save a lot of time and money. Its products can build structures and 3D animations which will help meet the changing demands of the industry.”
It may not be a name that immediately comes to mind when someone thinks of AI stocks to buy. That said, Autodesk’s technology is likely to see a surge in demand as the AI revolution continues to develop.
As Jadeja also notes, it successfully meets the needs of a very large industry and one in which there isn’t much competition. Additionally, the company boasts strong financials and encouraging growth prospects. While ADSK stock has been fairly volatile over the past year, it is poised to ride the AI boom to new heights.
AI Stocks to Buy: Baidu (BIDU)
Source: Andrey Solovev / Shutterstock.com
A leader in China’s tech market, Baidu (NASDAQ:BIDU) has a reach that spans many sectors, including IT, electronics and electric vehicles. It stands to reason that such a dynamic tech company would be focused on incorporating AI into its operations and Baidu is doing exactly that. But this Chinese tech innovator is taking it further and attempting to develop its own answer to ChatGPT. It recently claimed that its Ernie AI model has outperformed the chatbot “in comprehensive ability scores” and outperformed “GPT-4 in several Chinese capabilities.”
Baidu’s plans for AI don’t stop at its chatbot, though. It is making significant progress delivering driverless taxis to various Chinese cities. And while some companies are acquiring AI startups, Baidu has announced plans to roll out a venture fund to invest in companies that focus on AI applications that generate content. This could give it valuable exposure to some of the market’s hottest new AI innovators before they go public, thereby sending shares soaring.
As InvestorPlace contributor Chris MacDonald noted, while U.S. investors often overlook BIDU stock, the AI boom is a great reminder why they shouldn’t.
Berkshire Grey (BGRY)
Source: Shutterstock
This little-known penny stock is one of the companies helping shape the future of work.
Despite its name, Berkshire Grey (NASDAQ:BGRY) isn’t owned by Warren Buffett. Based in Massachusetts, this AI innovator produces intelligent robotic automation solutions for industries such as e-commerce and retail. As noted, industry-leader Amazon is focused on optimizing AI to help reduce operating costs and maximize shipping efficiency. This means that companies in Berkshire Grey’s space will likely see a surge in demand for their robotic solutions as these trends take over and human workers are gradually phased out.
BRGY stock has been fairly volatile lately, but it currently trades at less than $1.50 per share. That should be highly enticing for investors who can stomach some risk. Penny stocks can make potential buyers nervous, but there are some key reasons to be optimistic about Berkshire Grey. As InvestorPlace contributor Alex Sirois reports, it touts “impressive productivity increases, including a 70% reduction in overhead costs and 90% faster truck unload times for its customers.” Amazon and its peers are likely to take notice and when they do, BGRY could skyrocket out of the penny stock category.
BYD Company (BYDDY)
Source: shutterstock.com/Trygve Finkelsen
One of the most exciting aspects of the AI revolution is the possibility that it will take us to a future with driverless cars.
Electric vehicle producers are laser-focused on reaching this goal before their competitors do. While Tesla (NASDAQ:TSLA) is getting most of the attention, investors would be better served to focus on other automakers. BYD Company (OTCMKTS:BYDDY) is quietly leading China’s EV race and it is doubling down on incorporating AI in its vehicles. It has partnered with industry-leading chipmaker Nvidia (NASDAQ:NVDA) to bring the cutting edge DRIVE Orin platform to its new energy vehicles.
More recently, the company took a major step forward when it partnered with AI and metaverse innovator MeetKai. On July 11, the latter announced the launch of BYD World, an “interactive virtual dealership experience dedicated to providing new opportunities for customers to interact with the BYD brand and its products in Americas.” This could be BYD’s ticket into the U.S. market after it has already sold more vehicles than Tesla in China. This type of innovation makes it an excellent bet among both EV and AI stocks to buy as it gears up to expand its global reach. It has been touted as having the potential to reach a trillion-dollar valuation.
CrowdStrike (CRWD)
Source: T. Schneider / Shutterstock.com
We can’t talk about markets being changed by AI without discussing cybersecurity. CrowdStrike (NASDAQ:CRWD) has been dominating that field for years, offering cybersecurity and data protection. Now AI is poised to help improve the tech solutions upon which many companies depend. Forbes reports that “76% of enterprises have prioritized AI and machine learning in their IT budgets.” Additionally, demand for cybersecurity services is growing faster than the human workforce. This means that the firms prioritizing AI will have a clear advantage. And CrowdStrike is at the forefront of this movement. It recently introduced Charlotte AI, a generative AI analyst created to help users navigate its CrowdStrike Falcon platform.
This isn’t CrowdStrike’s first foray into AI, either. Far from it. In August 2022, the company rolled out AI-powered indicators of attack (IOAs), created by “cloud-native machine learning models.” On top of that, CRWD has continuously earned its place among both cybersecurity and AI stocks to buy.
GitLab (GTLB)
Source: Lori Butcher / Shutterstock.com
The current AI-centric economic landscape puts companies like GitLab (NASDAQ:GTLB) in a perfect position. For years, this innovative DevOps platform has helped tech developers and teams build software. It enables collaboration which has been of paramount importance in the age of remote work. Now, more and more companies are rushing to enter the AI race while entrepreneurs are scrambling to build the next great AI startup. Both these trends stand to create significant demand for a platform like GitLab. As Sirois notes:
“The reason that investors are so focused on GitLab is clear. The company has rapidly added AI features to its platform (10 recently), and posted revenue that was $9 million above analyst expectations, at $127 million. GitLab’s CEO Sid Sijbrandij was resolute in his belief that AI will help GitLab to make software for organizations faster than it could prior.”
AI Stocks to Buy: First Solar (FSLR)
Source: IgorGolovniov / Shutterstock.com
Despite some volatility over the past six months, First Solar (NASDAQ:FSLR) has repeatedly proven that it can’t be kept down. This clean energy leader has risen more than 35% year to date (YTD). While it may not instantly come to mind when you think of AI stocks, that doesn’t mean it should be counted out.
Like all innovative manufacturers, First Solar has found ways to incorporate AI into its production to help improve its output and efficiency. In June 2021, the company invested $680 million in expanding its manufacturing capacity by building a new facility in Ohio. It stated that the new facility would “produce a higher degree of automation, precision, and continuous improvement” by combining worker power with AI and IOT connectivity.
First Solar also offers investors AI exposure through partnerships. It has teamed up with Microsoft (NASDAQ:MSFT) to help the tech giant achieve its goal of becoming carbon neutral. Microsoft has made it clear that this will be achieved by further harnessing the growing power of AI and data science. First Solar has been making ample use of Microsoft’s technologies for some time, demonstrating the importance of AI for the manufacturing and clean energy markets.
Hyundai Motors (HYMTF)
Source: shutterstock.com/AntonovVitalii
This South Korean automaker doesn’t get as much attention as other car names. But to overlook Hyundai (OTCMKTS:HYMTF) would be to make a critical mistake.
In June 2021, it completed the acquisition of Boston Dynamics, a company with years of progress demonstrating the power of robotic technology. One year later, it announced plans to launch the Boston Dynamics AI Institute, a project geared toward advancing AI and robotics. The company has already demonstrated progress on this front, sharing a video on its website of a robot helping potential buyers shop for cars.
Hyundai’s AI advancements don’t stop there. It is also highly focused on autonomous driving. As part of this, it announced that its IONIQ 5 robo-taxi would be hitting the streets in 2023. One of its South Korea-based affiliates has partnered with leading chipmaker Qualcomm (NASDAQ:QCOM) to further its autonomous driving tech. If this progress continues, Hyundai is likely to pose a threat to the other automakers who want to win the driverless race.
Innodata (INOD)
Source: carlos castilla/Shutterstock
You might not know the name Innodata (NASDAQ:INOD), but if you’re seeking cheap AI stocks to buy before they explode, you absolutely should.
This company has surged more than 200% over the past six months and it still trades at less than $11 per share. Innodata operates in the business process solution space, helping companies solve complex data and engineering challenges through AI. And while it isn’t a household name yet, the company’s growth speaks for itself. InvestorPlace contributor Ian Cooper notes that for all the explosive growth it has seen recently, INOD stock has plenty of room to run as the AI boom powers it higher. In his words:
“[The company] was selected by a leading cloud infrastructure and platform services company to provide large-scale data collection for a new AI computer vision initiative. Innodata also just signed a significant application re-engineering agreement to enable a customer to more fully leverage Innodata-built artificial intelligence/machine learning (AI/ML) models.”
Cooper also notes that Innodata could stand to benefit from the increasing trend of tech giants acquiring smaller AI firms. In either case, the company is a likely winner among lesser-known AI innovators.
Luminar Technologies (LAZR)
Source: JHVEPhoto/shutterstock.com
Automakers are focused on winning the driverless race… and Luminar (NASDAQ:LAZR) is helping several industry leaders get there.
This innovative startup produces lidar technology designed to make autonomous driving safer for everyone. It does this by helping vehicles detect their surroundings by sending out distance-measuring laser beams. And while Elon Musk has criticized this type of technology, he may live to eat his words. Other experts have praised Luminar’s innovations and speculated that its tech could help other automakers finish ahead of Tesla.
There’s good reason for this optimism. Luminar remains highly focused on growth through partnerships. In June 2023, it announced an agreement to bring its AI-based driving software to automated trucking company Plus. Before that, it collaborated with autonomous driving leader Pony.ai on a new sensing platform. Automakers clearly trust Luminar’s technology to help them make driverless cars safe.
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
As one of the tech sector’s leading companies, it makes sense that Microsoft (NASDAQ:MSFT) would be helping lead the charge toward an AI-driven future. This Silicon Valley behemoth has plenty going for it, none the least of which is its multibillion-dollar investment in ChatGPT maker OpenAI. That alone would be enough to earn MSFT a place on a list of the top AI stocks to buy. But the company has plenty of other projects that make it worth betting on for investors seeking AI exposure. Its cloud computing platform Microsoft Azure includes many important features such as tools for users to create their own AI solutions.
Like its Big Tech peers, Microsoft has the resources to continue scaling its operations. It offers users the opportunity to do almost any business-related task that involves AI, from developing conversational AI bots to complex machine learning models. As the company continues incorporating advanced AI tools into its vast array of products, MSFT stock will only continue growing. Shares are up 50% over the past six months and they aren’t about to slow down as the AI boom picks up steam.
AI Stocks to Buy: MicroStrategy (MSTR)
Source: JOCA_PH / Shutterstock.com
When this company makes headlines, it’s often for crypto-related matters. After all, the business intelligence consultancy currently owns $4.6 billion in Bitcoin (BTC-USD) and its co-founder Michael Saylor is a leading Bitcoin evangelist.
But MicroStrategy (NASDAQ:MSTR) has been on a truly impressive winning streak recently, rising more than 200% over the past two quarters. The recent crypto rally has certainly helped, but it isn’t the only reason.
Known for producing enterprise analytics software, this company has also been busy incorporating AI-based tools into its tech. Its Data Whisperer program features a chatbot that helps users understand their data. It also uses AI models to bring new insights to customers by evaluating data to spot new trends and outlying factors. Meanwhile, the company has been exploring partnerships with industry leaders. As InvestorPlace contributor Tyrik Torres notes:
“Recently, MicroStrategy announced a multi-year partnership with Microsoft to integrate MicroStrategy’s analytics into Microsoft’s Azure OpenAI service. This makes it one of those AI stocks with triple digit returns potentially in the future.”
Mobileye Global (MBLY)
Source: VanderWolf Images / Shutterstock.com
Like Luminar, Mobileye (NASDAQ:MBLY) is helping power the autonomous driving revolution.
The company produces advanced driver assistance systems (ADAS), which it claims have been deployed in more than 135 million vehicles. Pus, Mobileye produces both software and hardware systems, including chips and censors. This puts it in an excellent position to help automakers continue advancing toward a driverless future. In 2022, it began testing its tech in self-driving cars in both the U.S. and Germany in order to train its AI to handle a wider variety of road conditions.
InvestorPlace contributor Tom Taulli sees MBLY as a potential winner among AI stocks to buy. He notes that while the company’s last earnings report did not thrill Wall Street, investors should regard it as an opportunity to pick up a valuable AI stock at a better valuation before it gains momentum. Taulli also adds that Mobileye comes with key advantages, such as a “patent portfolio, proprietary algorithms and rich data repositories.” All these factors could help MBLY keep rising as demand for autonomous driving solutions continues to grow.
Nvidia (NVDA)
Source: Poetra.RH / Shutterstock.com
Since 2022, it’s been impossible to discuss AI stocks without the conversation turning to Nvidia (NASDAQ:NVDA). To say that this chipmaker has been the breakout stock of the year would be an understatement. It reached a trillion-dollar market cap during the AI boom and it seems as though the Silicon Valley darling is there to stay. It has soared over 150% over the past six months and while this may not seem sustainable, the company is showing no signs of slowing down. Many companies depend on Nvidia’s products to continue their AI efforts. This includes ChatGPT, which is said to be powered by Nvidia chips.
It doesn’t take much to see that this puts Nvidia in a position of power as the AI revolution rages on. In fact, it may be the most likely winner of the new AI-driven economy. Between the AI and metaverse, more and more companies will come to rely on Nvidia’s products, sending demand sky high. Simply having ChatGPT as a client would make it a clear choice among AI stocks to buy.
But as InvestorPlace’s Louis Navellier notes, Nvidia’s potential far exceeds the chatbot. The economy is moving in a new direction, creating a wave that NVDA stock is perfectly tailored to ride.
Palantir Technologies (PLTR)
Source: Ascannio / Shutterstock.com
The rise of machine learning is an excellent development for Big Data analytics. This means that firms in the space will be working overtime to implement AI into their day-to-day operations. Palantir Technologies (NYSE:PLTR) is up more than 170% year to date as the firm that helps other companies embrace Big Data.
The Financial Times recently described the rise of AI as the crisis that Palantir has been looking for. Palantir recently demonstrated its new AI platform’s military applications, and company insiders have claimed to be seeing “unprecedented demand” for it. Palantir also recently announced a partnership with autonomous drone technology producer AirMatrix, furthering its AI exposure even more.
Rockwell Automation (ROK)
Source: JHVEPhoto / Shutterstock
Lango has described the AI boom as a “Mt. Everest-sized opportunity in AI robotics.” This means that established leaders in the space will have significant room to run as more companies prioritize automation. Rockwell Automation (NYSE:ROK) is exactly such a company. It focuses primarily on creating industrial automation and control systems, but its products and services are vast, spanning as far as cybersecurity and network solutions.
Rockwell hasn’t seen the type of gains that some companies on this list have this year. Investors should be careful to see the big picture, though. ROK stock has been gradually gaining momentum as the AI boom has taken off, demonstrating slow-but-steady growth. The company boasts robust financials and a truly global reach that will only expand more as demand for its products continues. As a trusted leader in the automation space, Rockwell will have a clear advantage in the coming year.
AI Stocks to Buy: SoundHound AI (SOUN)
Source: Tada Images / Shutterstock
This stock likely isn’t on the radar of too many investors. But SoundHound AI (NASDAQ:SOUN) is worthy of investor attention.
The company has already proven that its audio and speech recognition technology has major applications for industries such as food service and automotive, as well as for contact centers. Its conversational AI tools can help businesses with tasks such as answering phones and taking messages and reservations. As workers opt away from these jobs, more and more small businesses will be seeking automated solutions. If you need help answering the phone, SoundHound might have exactly what you need.
Despite still trading below $5, SOUN stock has made impressive progress this year, rising 175% YTD. Cooper has also flagged it as a likely acquisition target, and with demand growing for its tech, it’s easy to see why. Additionally, SoundHound also saw a significant boost recently after being added to the Russell 2000 and Russell 3000 indices. This will help the company gain legitimacy in the eyes of the financial community and will likely spur further investment.
Splunk (SPLK)
Source: Michael Vi / Shutterstock.com
For a leader in the workplace AI space, Splunk (NASDAQ:SPLK) hasn’t risen by as much as some of its peers. However, that just means investors have an opportunity to pick up a valuable stock at a discount.
This company also helps clients analyze and sort through their data. If Palantir is benefitting from the new data boom, Splunk could very well follow. It also features a generative AI tool used to enhance user experiences. This interface also allows the user to create Splunk Processing Language (SPL) queries. All this is meant to make Splunk’s valuable features more accessible to users.
On top of all that, the company recently reported fiscal Q1 2024 earnings and they did not disappoint. Splunk surpassed analyst estimates, reporting an 11% increase in revenue while annual recurring revenue rose by 16%. Even more impressive is its positive free cash flow, which saw a year-over-year (YOY) increase of 253%. When we consider all that, it’s not hard to see why Wall Street analysts remain highly bullish on SPLK stock.
Stem (STEM)
Source: petrmalinak / Shutterstock
Another company that often gets overshadowed by its larger peers, Stem (NYSE:STEM) offers investors exposure to both the AI and clean energy markets.
This perch at the intersection of these two growing sectors, combined with its low price point of less than $10, should make it an enticing play for investors who don’t mind a little risk. STEM stock has been on a winning streak this month, rising more than 26% and making it clear it doesn’t intend to slow down. Part of this is likely due to AI driven momentum. Stem’s Athena platform uses this new tech to maximize “energy asset performance and investments,” providing a valuable service. As I previously reported :
“The rising costs of electricity are creating a highly favorable economic landscape for Stem. As more and more companies invest in clean energy solutions, programs like Athena will become necessary for management and efficiency purposes. Stem’s revenue has been rising steadily this year, but the company is poised to soar in the coming years as it plays a critical role in both the green and AI revolutions.”
Symbotic (SYM)
Source: shutterstock.com/Allies Interactive
Based in Wilmington, Massachusetts, this warehouse automation innovator is also riding the robotics boom that Lango discussed. Symbotic (NASDAQ:SYM) has surged by an astonishing 275% YTD, proving just how powerful the demand for warehouse automation is. It produces both robots driven by AI and an automation platform for warehouses. It has partnered with retail powerhouses such as Walmart (NYSE:WMT) and Albertsons (NYSE:ACI). Other companies are likely to follow as demand for robotic solutions in warehouse and shipping facilities increases. This technology can allow companies to decrease their operating costs and increase shipping efficiency, making it a worthwhile investment.
“Symbotic is also poised to benefit from higher spending by consumers on physical products, a phenomenon that I expect to begin occurring in earnest during the current quarter,” notes InvestorPlace contributor Larry Ramer.
That’s just one of the reasons that Ramer considers SYM stock to be one of the best ways to gain AI exposure.
Teradyne (TER)
Source: Michael Vi / Shutterstock.com
One of the world’s largest robotic technology producers, Teradyne (NASDAQ:TER) designs and manufactures automatic test equipment but it also produces collaborative robots, designed to work alongside humans. The company has taken significant steps to expand its AI operations, acquiring both Universal Robots and Mobile Industrial Robots. These deals give it a sizable share of an already booming market that is likely to only increase as industry trends spur demand for the type of robotic solutions that Teradyne provides.
Teradyne’s power lies in the fact that it both manufactures top-of-the-line equipment and creates robots designed to help automate away mundane tasks. Those are two areas in which demand isn’t fading, allowing it a clear pathway to growth. It has also partnered with companies in the automotive, defense and aerospace sectors, giving investors even more reason to bet on it. For these reasons, InvestorPlace contributor Faizan Farooque believes it has the potential to deliver “life-changing returns.”
AI Stocks to Buy: Wearable Devices (WLDS)
Source: shutterstock.com/LDprod
This may seem like an unconventional choice for a list of the best AI stocks to buy. But pay attention.
Wearable Devices (NASDAQ:WLDS) is developing an AI-based “wearable neural interface” that could take it out of penny stock territory. Wearable Devices wants to put this device in the form of a wristband that can control technology with “subtle finger movements.”
Earlier this year, the company received a $900,00 grant from the Israel Innovation Authority (IIA) to develop the neural interface, sending shares soaring. It has had an overall outstanding year, rising 215% YTD and still trading at less than $2 per share.
If investors don’t mind some risk, WLDS could prove a highly profitable investment if it can get its flagship device to market. Its technology could prove to be the next big thing in AI, assuming it can keep developing it successfully.
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, Samuel O’Brient 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.
Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.
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The post 25 Millionaire-Maker AI Stocks to Buy 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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He recently described the industry as having a moment similar to the release of the iPhone, which changed everything for Apple (NASDAQ:AAPL). As InvestorPlace contributor Alex Sirois reports, it touts “impressive productivity increases, including a 70% reduction in overhead costs and 90% faster truck unload times for its customers.” Amazon and its peers are likely to take notice and when they do, BGRY could skyrocket out of the penny stock category. In August 2022, the company rolled out AI-powered indicators of attack (IOAs), created by “cloud-native machine learning models.” On top of that, CRWD has continuously earned its place among both cybersecurity and AI stocks to buy.
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He recently described the industry as having a moment similar to the release of the iPhone, which changed everything for Apple (NASDAQ:AAPL). AI Stocks to Buy: Baidu (BIDU) Source: Andrey Solovev / Shutterstock.com A leader in China’s tech market, Baidu (NASDAQ:BIDU) has a reach that spans many sectors, including IT, electronics and electric vehicles. Innodata also just signed a significant application re-engineering agreement to enable a customer to more fully leverage Innodata-built artificial intelligence/machine learning (AI/ML) models.” Cooper also notes that Innodata could stand to benefit from the increasing trend of tech giants acquiring smaller AI firms.
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He recently described the industry as having a moment similar to the release of the iPhone, which changed everything for Apple (NASDAQ:AAPL). And while some companies are acquiring AI startups, Baidu has announced plans to roll out a venture fund to invest in companies that focus on AI applications that generate content. AI Stocks to Buy: SoundHound AI (SOUN) Source: Tada Images / Shutterstock This stock likely isn’t on the radar of too many investors.
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He recently described the industry as having a moment similar to the release of the iPhone, which changed everything for Apple (NASDAQ:AAPL). Amazon is also highly focused on robotics. It stands to reason that such a dynamic tech company would be focused on incorporating AI into its operations and Baidu is doing exactly that.
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2023-07-20 00:00:00 UTC
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F5 (FFIV) Readies to Report Q3 Earnings: What's in the Offing?
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https://www.nasdaq.com/articles/f5-ffiv-readies-to-report-q3-earnings%3A-whats-in-the-offing
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F5 FFIV is scheduled to report third-quarter fiscal 2023 results on Jul 24.
For the fiscal third quarter, F5 estimates revenues in the range of $690-$710 million ($700 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $698.6 million, suggesting a year-over-year increase of 3.6%.
The company anticipates non-GAAP earnings in the range of $2.78-$2.90 per share ($2.84 at the midpoint). The Zacks Consensus Estimate stands at $2.86 per share, indicating a year-over-year increase of approximately 11.3%. Earnings estimates for the quarter have remained unchanged over the past 60 days.
The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 7.1%.
F5, Inc. Price and EPS Surprise
F5, Inc. price-eps-surprise | F5, Inc. Quote
Factors to Consider
The persistent macro uncertainty and its impact on customer spending are likely to have negatively impacted F5’s third-quarter top line, particularly the Product segment, which comprises Software and Systems sub-divisions. Our estimate of $333.8 million for Product segment revenues indicates a year-over-year improvement of 2.3%, which is much lower than the increase of 14.5% registered in the second quarter.
Softness in the Software sub-segment’s performance is anticipated to have weighed on the Product division’s overall performance. On its second-quarterearnings conference call the company stated that it no longer sees 15% to 20% year-over-year growth in Software revenues in fiscal 2023, considering recent quarters’ performances and the current environment for new software projects.
In the second quarter, revenues from the Software sub-segment declined 13% year over year to $131.9 million. Our estimate for Software’s third-quarter revenues is currently pegged at $143.7 million, depicting a 19.7% drop from the year-ago quarter.
However, the recovery in the Systems sub-division is likely to have more than offset the weak performance of Software. An improvement in the supply chain is likely to have helped the company clear the backlog for its Systems products in the third quarter. This is likely to have boosted its Systems sub-segment revenues during the to-be-reported quarter. Our estimate of $190.1 million for Systems’ revenues indicates robust 28.9% year-over-year growth.
Furthermore, high-maintenance renewals and a positive impact of the price increase introduced in the fourth quarter fiscal of 2022 are expected to have boosted F5’s Services segment revenues in the third quarter. Our estimate for the Services division’s third-quarter revenues is pegged at $362.4 million, suggesting an expected 4.1% increase from the year-ago quarter’s $348 million.
Additionally, the company’s cost-saving initiatives, which include headcount reduction, eliminating portions of its facilities footprint and travel reduction, are likely to have boosted the bottom line in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for FFIV 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 F5 carries a Zacks Rank #3 at present, 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, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +10.19%. 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%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.20 per share, flat with the year-ago quarter. It is estimated to report revenues of $81.21 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Block is slated to report second-quarter 2023 results on Aug 3. The company has a Zacks Rank #3 and an Earnings ESP of +12.99% at present. Block’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on one occasion and matching it once, the average surprise being 22.6%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 35 cents per share, suggesting a whopping increase of 94.4% from the year-ago quarter’s earnings of 18 cents. Block’s quarterly revenues are estimated to increase 15.4% year over year to $5.08 billion.
Alibaba carries a Zacks Rank #3 and has an Earnings ESP of +6.19%. The company is anticipated to report first-quarter fiscal 2024 results on Aug 3. 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 $31.21 billion, suggesting a year-over-year rise of 1.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
F5, Inc. (FFIV) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
Block, Inc. (SQ) : 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, Apple AAPL, Block SQ 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 F5, Inc. (FFIV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Our estimate of $333.8 million for Product segment revenues indicates a year-over-year improvement of 2.3%, which is much lower than the increase of 14.5% registered in the second quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report F5, Inc. (FFIV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Our estimate for the Services division’s third-quarter revenues is pegged at $362.4 million, suggesting an expected 4.1% increase from the year-ago quarter’s $348 million.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report F5, Inc. (FFIV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.20 per share, flat with the year-ago quarter.
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Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ 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 F5, Inc. (FFIV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Our estimate of $333.8 million for Product segment revenues indicates a year-over-year improvement of 2.3%, which is much lower than the increase of 14.5% registered in the second quarter.
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14792.0
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2023-07-20 00:00:00 UTC
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Unity Software (U) Launches Beta for visionOS Integration
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https://www.nasdaq.com/articles/unity-software-u-launches-beta-for-visionos-integration
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Unity Software U recently introduced the beta program for visionOS, which incorporates access to Unity PolySpatial. This integration allows creators to develop experiences that operate within visionOS, utilizing the impressive capabilities of Apple AAPL Vision Pro.
The combination of Unity Software's innovative PolySpatial technology with Apple's RealityKit-managed app rendering ensures a consistent and seamless user experience, aligning Unity-created content with other apps in visionOS.
The company collaborated closely with Apple to provide support for visionOS and PolySpatial, enabling users to enjoy their favorite Unity apps in all new spatial environments made possible by Apple Vision Pro.
With the launch of visionOS' beta program and the incorporation of Unity PolySpatial, creators gain the ability to develop fresh and innovative experiences or adapt existing ones for visionOS. Creators can preview their creations directly from the Unity Editor to Apple Vision Pro, allowing for swift iteration.
The new authoring workflows streamline the process of seamlessly blending content with the real world, while robust input tools enable users to control their content naturally with just their eyes and hands on Vision Pro.
Unity Software Inc. Price and Consensus
Unity Software Inc. price-consensus-chart | Unity Software Inc. Quote
Unity’s Recent AI Initiative to Attract Big-Ticket Customers
The company has been actively investing in AI recently. This move is expected to attract big-ticket customers.
Customers generating more than $100,000 has been growing in the past few quarters. This trend is expected to continue in the upcoming quarter.
The Zacks Consensus Estimate for Customers generating more than $100,000 in the current quarter is pegged at 1356.25, indicating year-over-year growth of 25%. The Zacks Consensus Estimate for revenues is pegged at $2.1 billion, indicating year-over-year growth of 51.01%.
Shares of Unity Software have decreased 69.6% in the past year compared with the Zacks Computer and Technology sector’s decline of 42.5% in the same period due to macroeconomic headwinds and execution in the critical business segment.
U has introduced a specialized AI marketplace within the Unity Asset Store, offering carefully curated solutions to expedite AI-powered game development and gameplay improvements. With the recent launch of Unity Sentis and Unity Muse, developers can now access an expanding array of AI tools, including Unity Verified Solutions, community-built solutions and emerging AI technologies. This centralized AI marketplace streamlines the process for Unity developers, making it quicker and more straightforward to discover relevant AI solutions for their projects.
The company recently unveiled Unity Industry, a collection of optimized products and services tailored for enterprises in various sectors, such as manufacturing, infrastructure, energy and retail. These offerings enable businesses to create and implement interactive real-time 3D experiences on multiple platforms, including web, mobile, PC and augmented reality. With Unity Industry, enterprises can build and deploy immersive experiences that engage users on any device.
Unity Software, being a leader in creating and growing real time 3D content, wants to maintain its position in the market with its recent efforts.
Zacks Rank & Key Picks
Currently, Unity Software carries a Zacks Rank #3 (Hold).
Airbnb ABNB and Adobe ADBE are some better-ranked stocks from the broader sector which investors can consider. Currently, ABNB sports a Zacks Rank #1 (Strong Buy) and ADBE carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Airbnb have gained 70.2% year to date. The Zacks Consensus Estimate for ABNB’s 2023 revenues is pegged at $9.52 billion, indicating year-over-year growth of 13.3%. The consensus mark for earnings is pegged at 78 cents per share, which has remained unchanged over the past 30 days.
Shares of Adobe have surged 56.6% year to date. The Zacks Consensus Estimate for ADBE’s 2023 revenues is pegged at $19.31 billion, indicating year-over-year growth of 9.67%. The consensus mark for earnings is pegged at $3.97 per share, which has increased by 2 cents over the past 30 days.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Unity Software Inc. (U) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : 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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This integration allows creators to develop experiences that operate within visionOS, utilizing the impressive capabilities of Apple AAPL Vision Pro. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Unity Software have decreased 69.6% in the past year compared with the Zacks Computer and Technology sector’s decline of 42.5% in the same period due to macroeconomic headwinds and execution in the critical business segment.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. This integration allows creators to develop experiences that operate within visionOS, utilizing the impressive capabilities of Apple AAPL Vision Pro. Unity Software Inc. Price and Consensus Unity Software Inc. price-consensus-chart | Unity Software Inc. Quote Unity’s Recent AI Initiative to Attract Big-Ticket Customers The company has been actively investing in AI recently.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. This integration allows creators to develop experiences that operate within visionOS, utilizing the impressive capabilities of Apple AAPL Vision Pro. Unity Software Inc. Price and Consensus Unity Software Inc. price-consensus-chart | Unity Software Inc. Quote Unity’s Recent AI Initiative to Attract Big-Ticket Customers The company has been actively investing in AI recently.
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This integration allows creators to develop experiences that operate within visionOS, utilizing the impressive capabilities of Apple AAPL Vision Pro. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Unity Software Inc. Price and Consensus Unity Software Inc. price-consensus-chart | Unity Software Inc. Quote Unity’s Recent AI Initiative to Attract Big-Ticket Customers The company has been actively investing in AI recently.
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2023-07-20 00:00:00 UTC
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TSMC Q2 profit falls 23%, beats market expectations
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https://www.nasdaq.com/articles/tsmc-q2-profit-falls-23-beats-market-expectations
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TAIPEI, July 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 23.3% fall in second-quarter net profit on Thursday as global economic woes dented demand for chips used in applications as varied as cars, cellphones and servers and coming off a high base last year.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw April-June net profit fall to T$181.8 billion ($5.85 billion) from T$237.0 billion a year earlier.
That compared with the T$172.55 billion average of 21 analyst estimates compiled by Refinitiv.
($1 = 31.0580 Taiwan dollars)
(Reporting by Yimou Lee and Sarah Wu; Writing by Ben Blanchard; Editing by Jacqueline Wong)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw April-June net profit fall to T$181.8 billion ($5.85 billion) from T$237.0 billion a year earlier. TAIPEI, July 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 23.3% fall in second-quarter net profit on Thursday as global economic woes dented demand for chips used in applications as varied as cars, cellphones and servers and coming off a high base last year. That compared with the T$172.55 billion average of 21 analyst estimates compiled by Refinitiv.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw April-June net profit fall to T$181.8 billion ($5.85 billion) from T$237.0 billion a year earlier. TAIPEI, July 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 23.3% fall in second-quarter net profit on Thursday as global economic woes dented demand for chips used in applications as varied as cars, cellphones and servers and coming off a high base last year. ($1 = 31.0580 Taiwan dollars) (Reporting by Yimou Lee and Sarah Wu; Writing by Ben Blanchard; Editing by Jacqueline Wong) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw April-June net profit fall to T$181.8 billion ($5.85 billion) from T$237.0 billion a year earlier. TAIPEI, July 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 23.3% fall in second-quarter net profit on Thursday as global economic woes dented demand for chips used in applications as varied as cars, cellphones and servers and coming off a high base last year. ($1 = 31.0580 Taiwan dollars) (Reporting by Yimou Lee and Sarah Wu; Writing by Ben Blanchard; Editing by Jacqueline Wong) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw April-June net profit fall to T$181.8 billion ($5.85 billion) from T$237.0 billion a year earlier. TAIPEI, July 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 23.3% fall in second-quarter net profit on Thursday as global economic woes dented demand for chips used in applications as varied as cars, cellphones and servers and coming off a high base last year. That compared with the T$172.55 billion average of 21 analyst estimates compiled by Refinitiv.
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14794.0
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2023-07-20 00:00:00 UTC
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Better Buy: Apple Stock vs. Microsoft Stock
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https://www.nasdaq.com/articles/better-buy%3A-apple-stock-vs.-microsoft-stock
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Many tech stocks have enjoyed a surge in 2023, as markets like artificial intelligence (AI), cloud computing, and virtual/augmented reality (VR/AR) have made investors bullish. As some of the biggest names in the sector, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) shares have climbed 49% and 44%, respectively, since Jan. 1.
Apple's dominance in consumer tech has produced one of the most reliable growth stocks available. Meanwhile, Microsoft has proven itself as the king of software, with growing positions in AI. However, before adding both stocks to your list of holdings, it's a good idea to get the most out of your investment by understanding which is the better buy: Apple's or Microsoft's stock.
Apple: Consistent demand for the iPhone
It has been over 16 years since the first iPhone launched, yet the business continues to provide reliable revenue growth, reporting a 7% year-over-year increase in Apple's fiscal 2022. The massive success of the smartphone has led it to become the highest-earning part of the company's business, making up over 50% of its revenue. The immense popularity of the iPhone has allowed Apple to charge a premium for the device, which bolstered the business last year despite an economic downturn.
According to a recent study by Counterpoint, macroeconomic headwinds caused smartphone shipments to decline 17% in the first quarter of 2023. Consumer pullback led many industry leaders to experience declining or stagnating market share. However, consistent iPhone sales saw Apple grow its position in smartphones, with its market share rising from 49% to 53%.
Meanwhile, Samsung's market share stayed the same at 27%, and Motorola's share fell from 10% to 8%. The potency of Apple's smartphones allowed it to capitalize on market challenges, proving the resiliency of its business.
Apple's dominant role in smartphones is a powerful tool when touting its other products. The iPhone has often been described as a gateway to other Apple devices, proven by its leading position in many product categories. Alongside stock growth of roughly 300% in the last five years, the company's shares are an attractive option for investors.
Microsoft: Massive potential in AI
While Apple is leading the consumer tech market, Microsoft has similar dominance in software. The tech giant is home to powerful brands such as Windows, Office, Azure, Xbox, and LinkedIn, which have granted reliable revenue gains. Since 2019, Microsoft's annual revenue has climbed 58% year over year, with operating income rising 94%.
The company's financial success has given it the resources to expand to other sectors, like AI. For instance, in 2019, Microsoft invested $1 billion in ChatGPT developer OpenAI. The partnership looks likely to be one of the company's smartest moves, allowing Microsoft to procure exclusive licenses on some of the start-up's most advanced AI models.
The Windows company has so far brought AI upgrades to several of its widely used services, such as its Office productivity suite, cloud service Azure, and search engine Bing. As a result, Microsoft has quickly become one of the biggest names in AI, a promising position considering the market is projected to expand at a compound annual growth rate of 37% through 2030.
Like Apple, Microsoft has a history of providing investors with consistent gains. Its stock has soared 225% since 2018. Paired with its prospects in AI, Microsoft's stock is another great option.
Is Apple or Microsoft the better buy?
Apple and Microsoft are pretty evenly matched as the world's first- and second-most valuable companies by market cap. However, the below chart uses two metrics to show how Apple's stock trades at a better value. The iPhone company's price-to-earnings ratio (P/E) and price-to-free cash flow (P/FCF) are quite a few points below the same figures for Microsoft, suggesting it is the cheaper option.
Data by YCharts
P/E is calculated by dividing a company's share price by its earnings per share. Meanwhile, P/FCF compares a company's share price to its free cash flow. With both metrics, the lower the figure, the better the value. These valuation metrics can be useful to determine whether a stock is trading at a bargain or is overvalued. An optimal P/E and P/FCF would customarily be under 20 to be considered undervalued. As a result, Apple stock may not be a bargain buy, but it is a chapter option when compared to Microsoft.
Furthermore, it is still early days for the AI market, with Microsoft likely to continue facing steep competition for years to come. Meanwhile, Apple has already proven its products are the preferred choice in its industry. The iPhone company's immense brand loyalty from consumers makes it seem like the more reliable choice.
So if you can only buy one, Apple is the better buy. However, keeping Microsoft on your radar for future investment is not a bad idea.
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 10, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As some of the biggest names in the sector, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) shares have climbed 49% and 44%, respectively, since Jan. 1. Many tech stocks have enjoyed a surge in 2023, as markets like artificial intelligence (AI), cloud computing, and virtual/augmented reality (VR/AR) have made investors bullish. The tech giant is home to powerful brands such as Windows, Office, Azure, Xbox, and LinkedIn, which have granted reliable revenue gains.
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As some of the biggest names in the sector, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) shares have climbed 49% and 44%, respectively, since Jan. 1. However, consistent iPhone sales saw Apple grow its position in smartphones, with its market share rising from 49% to 53%. Microsoft: Massive potential in AI While Apple is leading the consumer tech market, Microsoft has similar dominance in software.
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As some of the biggest names in the sector, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) shares have climbed 49% and 44%, respectively, since Jan. 1. However, before adding both stocks to your list of holdings, it's a good idea to get the most out of your investment by understanding which is the better buy: Apple's or Microsoft's stock. Microsoft: Massive potential in AI While Apple is leading the consumer tech market, Microsoft has similar dominance in software.
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As some of the biggest names in the sector, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) shares have climbed 49% and 44%, respectively, since Jan. 1. Alongside stock growth of roughly 300% in the last five years, the company's shares are an attractive option for investors. As a result, Apple stock may not be a bargain buy, but it is a chapter option when compared to Microsoft.
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14795.0
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2023-07-20 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-53
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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14796.0
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2023-07-20 00:00:00 UTC
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Should You Invest in the iShares U.S. Technology ETF (IYW)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-technology-etf-iyw-8
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nan
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nan
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The iShares U.S. Technology ETF (IYW) was launched on 05/15/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $13.54 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IYW seeks to match the performance of the Dow Jones U.S. Technology Index before fees and expenses.
The Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.39%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.38%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 84.10% of the portfolio. Telecom and Industrials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 19.44% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL).
The top 10 holdings account for about 64.16% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Technology ETF return is roughly 52.17% so far, and is up about 34.13% over the last 12 months (as of 07/20/2023). IYW has traded between $70.72 and $113.48 in this past 52-week period.
The ETF has a beta of 1.14 and standard deviation of 27.44% for the trailing three-year period, making it a medium risk choice in the space. With about 144 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IYW is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $52.17 billion in assets, Vanguard Information Technology ETF has $54.74 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares U.S. Technology ETF (IYW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 19.44% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $13.54 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 19.44% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 19.44% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 19.44% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.39%, making it one of the least expensive products in the space.
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14797.0
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2023-07-20 00:00:00 UTC
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Four Reasons Why Apple Could Soar To New Highs In Q3
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AAPL
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https://www.nasdaq.com/articles/four-reasons-why-apple-could-soar-to-new-highs-in-q3
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nan
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nan
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If you look at the chart of Apple’s (NASDAQ: AAPL) stock price and wonder if it can bob to another new high, the odds are high that it can do so. This is among the world’s most-followed, most-traded, and widely held names. When the economy is doing well, it goes hand-in-hand that Apple will also do well.
While there are many headwinds in the economy, the recession that everyone feared has yet to materialize, and there are signs of strength. Amazon (NASDAQ: AMZN), for 1, reported a record Prime Day event with rising volume and average ticket prices.
Apple products aren’t on par with the average Amazon purchase, but Amazon’s strength is a sign of consumer strength that bodes well for all consumer stocks. Apple is only the most visible.
#1 - Apple Is A Most-Followed Stock
Apple is high on the list of Marketbeat.com’s Most Followed Stocks. The name ranks 2nd behind Microsoft (NASDAQ: MSFT) on the 7-day comparison but takes a firm lead over the long term.
Apple is the #1 most followed stock for the last 3 months and holds the position by a wide margin. This signifies a deep commitment from retail investors, who primarily cause rapid price movements.
They (we) like Apple and will flood into the name given the proper catalysts. Those catalysts can and do include analysts' activity, institutional signals, performance, and charts.
#2 - Apple Is A Most-Upgraded Stock
Apple is also high on the list of Most Upgraded Stocks. The Most Upgraded Stocks have the most support from the analysts' community, which can support the market in 2 ways. The 1st is their following, the institutional and “big money” investors who rely on them for advice and management services.
They represent a significant portion of the market; a lot of that capital is “buy-and-hold” generational money and can produce significant head and tailwinds for any market; when the analysts are Buying a stock, so do their clients.
The 2nd is the impact on the retail market. When the analysts are upgraded and raising price targets, the retail market tends to follow the big money into the name. Regarding Apple, it has a large analyst following, 33 tracked by Marketbeat, but not the largest. They rate the stock at Moderate Buy, which has held steady for several years.
The price target may hold the stock back in the near term; it is 5% below the current action but trending higher compared to last month, last quarter, and last year.
The catalyst for the analyst might be the upcoming earnings report when Apple outperforms its estimates. Another round of price target increases could get the market to a new high, and the most recently set stock price targets are already well into the all-time high territory. As for the earnings estimates, the bar is set low, with most analysts lowering their targets since last quarter.
#3 - The Institutions Are Buying Apple
The institutions are the single greatest force within the stock market. They physically represent managed money by analysts, managers, banks, retirement funds, and private investment firms. They own 58% of Apple stock and have bought it on balance for the last 12 months. The buying has been strong and outpaced selling by 2.4:1. Coincidentally, institutional activity ramped up in Q1 and Q2, coincident with the current rally in share prices.
The Technical Outlook: Apple Is In Rally Mode
Apple shares are in rally mode, which looks like a strong one. The market is solidly up at +50% for the year and forming a bullish flag pattern. Assuming the Q2 results are good, the market should break to a new high by late summer. In that scenario, based on the technical indications, it could gain another $40 to $60.
The views and 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 look at the chart of Apple’s (NASDAQ: AAPL) stock price and wonder if it can bob to another new high, the odds are high that it can do so. Amazon (NASDAQ: AMZN), for 1, reported a record Prime Day event with rising volume and average ticket prices. The name ranks 2nd behind Microsoft (NASDAQ: MSFT) on the 7-day comparison but takes a firm lead over the long term.
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If you look at the chart of Apple’s (NASDAQ: AAPL) stock price and wonder if it can bob to another new high, the odds are high that it can do so. Another round of price target increases could get the market to a new high, and the most recently set stock price targets are already well into the all-time high territory. They physically represent managed money by analysts, managers, banks, retirement funds, and private investment firms.
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If you look at the chart of Apple’s (NASDAQ: AAPL) stock price and wonder if it can bob to another new high, the odds are high that it can do so. #1 - Apple Is A Most-Followed Stock Apple is high on the list of Marketbeat.com’s Most Followed Stocks. #2 - Apple Is A Most-Upgraded Stock Apple is also high on the list of Most Upgraded Stocks.
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If you look at the chart of Apple’s (NASDAQ: AAPL) stock price and wonder if it can bob to another new high, the odds are high that it can do so. #1 - Apple Is A Most-Followed Stock Apple is high on the list of Marketbeat.com’s Most Followed Stocks. #2 - Apple Is A Most-Upgraded Stock Apple is also high on the list of Most Upgraded Stocks.
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14798.0
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2023-07-20 00:00:00 UTC
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2 Explosive Growth Stocks to Buy in 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/2-explosive-growth-stocks-to-buy-in-2023-and-beyond-1
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nan
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nan
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Macroeconomic headwinds last year caused steep declines across the tech sector as reductions in consumer spending hampered quarterly results. However, tech stocks have returned to favor in 2023, alongside easing inflation. As a result, now is an excellent time to fill up on tech stocks that have massive potential over the long term before they rise any higher.
Companies active in innovative industries like artificial intelligence (AI) and consumer tech can be an excellent way to ensure consistent gains over many years. In fact, market leaders Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) have enjoyed stock growth of about 79% and 47%, respectively, since Jan. 1 as investors have noted their long-term potential.
Despite their stocks' monster growth this year, AMD and Apple have positions in multiple high-profit industries that suggest they're not done rising yet. So, here are two explosive growth stocks to buy in 2023 and beyond.
1. AMD: Profiting from several areas of tech
Technological advances have made adding a chipmaker to your portfolio a smart idea, and AMD is an attractive choice. As the tech market develops, demand for powerful chips is rising across different sectors. As a result, AMD stock offers the chance to benefit from the growth of several industries.
The company's hardware can be found across the tech market in popular game consoles such as Sony's PlayStation 5 and Microsoft's Xbox Series X|S, numerous PCs and laptops, handheld gaming machines, and powering cloud platforms like Azure and Alphabet's Google Cloud through its data center chips.
Meanwhile, AMD has increasing potential in AI. The company is playing catch-up in the market, with its biggest competitor Nvidia seemingly getting a head start. But AMD has made promising strides to match Nvdia's AI offerings.
AMD partnered with cloud giant Microsoft to bolster its artificial intelligence chip expansion. The Windows company is highly motivated to create an alternative to Nvidia to reduce the cost of chips supporting AI workloads. As a result, Microsoft is providing AMD with financial and engineering resources, which could take its business far.
AMD shares skyrocketed about 581% in the last five years. In the same period, its annual revenue has risen 264%, with operating income up 180%. With the power of AI at its side and recent advances across the tech industry, the company could continue on its current growth trajectory.
2. Apple: Outperforming the competition
While many tech companies were harshly affected by last year's economic declines, Apple proved the strength of its business by outperforming many of its peers. The chart below illustrates how the iPhone company experienced a more moderate stock decline amid 2022's sell-off than some of the biggest names in tech.
Data by YCharts.
Moreover, according to research from Counterpoint, U.S. smartphone shipments declined by 17% in the first quarter of 2023. The drop made it challenging for many companies in the industry, with Samsung's market share remaining at 27% year over year and Motorola's share falling from 10% to 8%. But the same quarter saw Apple take advantage of the market slump and grow its smartphone market share from 49% to 53%.
A similar situation occurred in the personal computing market. IDC data shows global PC shipments fell 13% in the second quarter, with companies like Lenovo, Dell, and Acer experiencing declines between 18% to 22%. Yet Apple enjoyed PC shipment growth of 10% in the same period and was the only company on IDC's list to report an improvement for the quarter.
Apple's consistent ability to outperform the competition even with economic hurdles to clear makes it one of the most reliable growth stocks available. Its stock gained 304% in the last five years, becoming the first company to achieve a market cap of $3 trillion this year.
Along with consistent product demand and a recent venture into the high-growth virtual/augmented reality market, it all means Apple's stock is too good to pass up in 2023.
10 stocks we like better than Advanced Micro Devices
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, market leaders Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) have enjoyed stock growth of about 79% and 47%, respectively, since Jan. 1 as investors have noted their long-term potential. Macroeconomic headwinds last year caused steep declines across the tech sector as reductions in consumer spending hampered quarterly results. Companies active in innovative industries like artificial intelligence (AI) and consumer tech can be an excellent way to ensure consistent gains over many years.
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In fact, market leaders Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) have enjoyed stock growth of about 79% and 47%, respectively, since Jan. 1 as investors have noted their long-term potential. 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 Advanced Micro Devices, Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia.
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In fact, market leaders Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) have enjoyed stock growth of about 79% and 47%, respectively, since Jan. 1 as investors have noted their long-term potential. Its stock gained 304% in the last five years, becoming the first company to achieve a market cap of $3 trillion this year. 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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In fact, market leaders Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) have enjoyed stock growth of about 79% and 47%, respectively, since Jan. 1 as investors have noted their long-term potential. Despite their stocks' monster growth this year, AMD and Apple have positions in multiple high-profit industries that suggest they're not done rising yet. As the tech market develops, demand for powerful chips is rising across different sectors.
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14799.0
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2023-07-20 00:00:00 UTC
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Taiwan June export orders slump for 10th month, outlook may improve on AI
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AAPL
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https://www.nasdaq.com/articles/taiwan-june-export-orders-slump-for-10th-month-outlook-may-improve-on-ai
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nan
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nan
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Recasts, adds details throughout
June export orders -24.9 y/y vs -20.0% poll forecast
Export orders from China -19.7% y/y vs -20.9% in May
Ministry sees July orders between -17.1% and -20.7% y/y
Economy Minister sees orders pick up in H2 on AI demand
TAIPEI, July 20 (Reuters) - Taiwan's export orders fell for the tenth consecutive month in June, as weak China demand, inflation, and high interest rates continued to offset surging demand for the island's artificial intelligence (AI) supply chain.
Taiwan's export orders, a bellwether for worldwide technology demand, fell 24.9% from a year ago to $44.18 billion, the Ministry of Economic Affairs said on Thursday.
The rate of contraction worsened from a 17.6% drop in May and a 20.0% predicted fall in a Reuters poll.
The ministry reiterated previous warnings that persistently high inflation and rising interest rates, along with the global repercussions of the war between Russia and Ukraine, could continue to impede economic growth momentum in the months ahead.
"The overall trends haven't changed much in terms of the international economic situation," Economy Minister Wang Mei-hua told reporters earlier on Thursday.
"But for Taiwan's exports in the second half of the year, things will gradually heat up, due to growing demand for the AI supply chain."
Orders for telecommunications products fell 27.4% and electronic products fell 22.0% from a year earlier, the ministry said.
Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies.
TSMC on Thursday forecast a 10% drop in 2023 sales after reporting a 23% fall in second-quarter earnings as global economic woes dented demand for chips.
The ministry said it expected export orders in July to fall by between 17.1% and 20.7% from a year earlier.
Taiwan's June orders from China were 19.7% lower on year, versus a 20.9% drop in the prior month.
Orders from the United States fell 23.6% from a year earlier, versus a 13.5% drop during the same period.
Orders from Europe slumped 44.2% versus May's 34.9% slide. Orders from Japan dropped 17.0% year-on-year.
(Reporting by Faith Hung and Jeanny Kao; Additional reporting by Ben Blanchard; Editing by Kim Coghill)
((faith.hung@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. Taiwan's export orders, a bellwether for worldwide technology demand, fell 24.9% from a year ago to $44.18 billion, the Ministry of Economic Affairs said on Thursday. The ministry reiterated previous warnings that persistently high inflation and rising interest rates, along with the global repercussions of the war between Russia and Ukraine, could continue to impede economic growth momentum in the months ahead.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. Recasts, adds details throughout June export orders -24.9 y/y vs -20.0% poll forecast Export orders from China -19.7% y/y vs -20.9% in May Ministry sees July orders between -17.1% and -20.7% y/y Economy Minister sees orders pick up in H2 on AI demand TAIPEI, July 20 (Reuters) - Taiwan's export orders fell for the tenth consecutive month in June, as weak China demand, inflation, and high interest rates continued to offset surging demand for the island's artificial intelligence (AI) supply chain. Orders for telecommunications products fell 27.4% and electronic products fell 22.0% from a year earlier, the ministry said.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. Recasts, adds details throughout June export orders -24.9 y/y vs -20.0% poll forecast Export orders from China -19.7% y/y vs -20.9% in May Ministry sees July orders between -17.1% and -20.7% y/y Economy Minister sees orders pick up in H2 on AI demand TAIPEI, July 20 (Reuters) - Taiwan's export orders fell for the tenth consecutive month in June, as weak China demand, inflation, and high interest rates continued to offset surging demand for the island's artificial intelligence (AI) supply chain. Taiwan's export orders, a bellwether for worldwide technology demand, fell 24.9% from a year ago to $44.18 billion, the Ministry of Economic Affairs said on Thursday.
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Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. Recasts, adds details throughout June export orders -24.9 y/y vs -20.0% poll forecast Export orders from China -19.7% y/y vs -20.9% in May Ministry sees July orders between -17.1% and -20.7% y/y Economy Minister sees orders pick up in H2 on AI demand TAIPEI, July 20 (Reuters) - Taiwan's export orders fell for the tenth consecutive month in June, as weak China demand, inflation, and high interest rates continued to offset surging demand for the island's artificial intelligence (AI) supply chain. Taiwan's export orders, a bellwether for worldwide technology demand, fell 24.9% from a year ago to $44.18 billion, the Ministry of Economic Affairs said on Thursday.
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