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14800.0
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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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AAPL
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https://www.nasdaq.com/articles/tsmc-q2-profit-falls-23-beats-market-expectations-0
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nan
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nan
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Q2 profit T$181.8 bln vs T$172.55 bln analyst view
Q2 revenue down 13.7% on year at $15.68 bln
Adds milestone in second paragraph, background in sixth paragraph
TAIPEI, July 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW reported 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 strong period last year.
While the result beat analyst forecasts, it was the company's first on-year drop in quarterly profit since the second quarter of 2019 when it fell 7.6%.
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 drop 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.
TSMC, Asia's most valuable listed company, said second-quarter revenue dropped 13.7% year-on-year to $15.68 billion, in line with the company's previous forecast.
As the biggest maker of chips that power products as varied as phones, cars and advanced computers, TSMC TSM.N must navigate an uncertain industry outlook and a U.S.-China chip spat that could make it vulnerable.
TSMC's Taipei-listed shares fell 27.1% in 2022, but are up around 30% so far this year, giving the chipmaker a market value of $486.5 billion. The stock fell 0.3% on Thursday versus a 0.3% rise in the benchmark index .TWII.
($1 = 31.0580 Taiwan dollars)
(Reporting by Yimou Lee and Sarah Wu; Writing by Ben Blanchard; Editing by Jacqueline Wong & Shri Navaratnam)
((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 drop to T$181.8 billion ($5.85 billion) from T$237.0 billion a year earlier. Q2 profit T$181.8 bln vs T$172.55 bln analyst view Q2 revenue down 13.7% on year at $15.68 bln Adds milestone in second paragraph, background in sixth paragraph TAIPEI, July 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW reported 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 strong period last year. TSMC's Taipei-listed shares fell 27.1% in 2022, but are up around 30% so far this year, giving the chipmaker a market value of $486.5 billion.
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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 drop to T$181.8 billion ($5.85 billion) from T$237.0 billion a year earlier. Q2 profit T$181.8 bln vs T$172.55 bln analyst view Q2 revenue down 13.7% on year at $15.68 bln Adds milestone in second paragraph, background in sixth paragraph TAIPEI, July 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW reported 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 strong period last year. While the result beat analyst forecasts, it was the company's first on-year drop in quarterly profit since the second quarter of 2019 when it fell 7.6%.
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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 drop to T$181.8 billion ($5.85 billion) from T$237.0 billion a year earlier. Q2 profit T$181.8 bln vs T$172.55 bln analyst view Q2 revenue down 13.7% on year at $15.68 bln Adds milestone in second paragraph, background in sixth paragraph TAIPEI, July 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW reported 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 strong period last year. TSMC, Asia's most valuable listed company, said second-quarter revenue dropped 13.7% year-on-year to $15.68 billion, in line with the company's previous forecast.
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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 drop to T$181.8 billion ($5.85 billion) from T$237.0 billion a year earlier. Q2 profit T$181.8 bln vs T$172.55 bln analyst view Q2 revenue down 13.7% on year at $15.68 bln Adds milestone in second paragraph, background in sixth paragraph TAIPEI, July 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW reported 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 strong period last year. While the result beat analyst forecasts, it was the company's first on-year drop in quarterly profit since the second quarter of 2019 when it fell 7.6%.
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14801.0
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2023-07-20 00:00:00 UTC
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Why the Worry Warts Are Wrong About Apple Stock
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AAPL
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https://www.nasdaq.com/articles/why-the-worry-warts-are-wrong-about-apple-stock
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Should investors lose sleep at night because Apple (NASDAQ:AAPL) stock looks overbought?
Historically, betting against Apple hasn’t been a profitable trade. Even after booking huge gains in 2023’s first half, Apple’s shareholders will probably continue to enjoy decent returns in the coming quarters.
This doesn’t mean that the year’s second half will be mind-blowing like the first half was.
Admittedly, the pace of future returns might slow down somewhat. Apple remains a best-in-class technology company and we’re assigning Apple stock a confident “B” grade.
A Worry Wart’s Complaint About AAPL Stock
Here’s a headline that’s bound to raise some eyebrows. Hopefully, it won’t prompt investors to panic-sell their Apple shares. According to Fortune contributor Shawn Tully, “Now could be the worst time to buy” AAPL stock.
The author cited the cyclically adjusted price-to-earnings ratio, or CAPE ratio, which was developed by Robert Shiller many years ago.
As Tully explains, the CAPE ratio adjusts for cycles in earnings-related environments, such as when “earnings are either enjoying an unsustainable boom, or stuck in a temporary rut.”
Presumably, Apple would fall into the “unsustainable boom” category. There’s no denying the “boom” part. After all, Apple stock has rallied from $125 to $190 this year so far. But does Apple’s high CAPE ratio of 30.9x mean that the stock’s H1 2023 gains are “unsustainable”?
There are plenty of other valuation metrics, besides the CAPE ratio, that the worry warts could cite now. However, Apple has been overvalued for a while – several months at least – but the stock has continued to march upwards.
Apple stock just keeps on climbing the “wall of worry,” and it even seems to gain momentum from the bears’ fear.
Apple’s Investors Typically Win in the End
Instead of worrying about Apple’s valuation according to traditional metrics, consider this. As long as Apple continues to grow as a business, it can offer value to long-term investors.
That’s why Apple’s shareholders generally win in the end. Tully admitted that Apple’s inflation-adjusted EPS grew from $1.82 in fiscal 2013, to $3.75 in 2020. From there, it increased to $6.08 in 2021, and then $6.11 in 2022.
For growth-focused investors, that sustained pace of earnings growth suggests that Apple stock’s gains aren’t necessarily “unsustainable.”
There’s evidence that, despite the rise of inflation, shoppers have continued to buy iPhones in huge quantities.
Specifically, Apple’s iPhone sales in the United Kingdom surged to a record 1.5 billion pounds during the 12 months ending in September of 2022.
In the U.S., the iPhone’s market share reportedly increased from 49% 2022’s first quarter, to 53% in the first quarter of 2023.
No Need to Lose Sleep Over Apple Stock
In the final analysis, Apple has earned its place as a member of the “Magnificent Seven.” Apple stock is among the best-performing publicly listed technology stocks in 2023 so far.
Shoppers are still buying Apple’s products, and especially iPhones, in large numbers. The company’s long-term EPS growth has been outstanding.
Unless there’s negative sales or earnings data soon, there’s no compelling reason to worry about AAPL stock. So, we’re assigning the stock a “B” grade. The future returns should be decent for Apple’s shareholders, even after a powerful first-half-of-the-year rally.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Why the Worry Warts Are Wrong About Apple Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Should investors lose sleep at night because Apple (NASDAQ:AAPL) stock looks overbought? A Worry Wart’s Complaint About AAPL Stock Here’s a headline that’s bound to raise some eyebrows. According to Fortune contributor Shawn Tully, “Now could be the worst time to buy” AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Should investors lose sleep at night because Apple (NASDAQ:AAPL) stock looks overbought? A Worry Wart’s Complaint About AAPL Stock Here’s a headline that’s bound to raise some eyebrows. According to Fortune contributor Shawn Tully, “Now could be the worst time to buy” AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Should investors lose sleep at night because Apple (NASDAQ:AAPL) stock looks overbought? A Worry Wart’s Complaint About AAPL Stock Here’s a headline that’s bound to raise some eyebrows. According to Fortune contributor Shawn Tully, “Now could be the worst time to buy” AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Should investors lose sleep at night because Apple (NASDAQ:AAPL) stock looks overbought? A Worry Wart’s Complaint About AAPL Stock Here’s a headline that’s bound to raise some eyebrows. According to Fortune contributor Shawn Tully, “Now could be the worst time to buy” AAPL stock.
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14802.0
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2023-07-19 00:00:00 UTC
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Technology Sector Update for 07/19/2023: AAPL, U, MSFT, ATVI
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-07-19-2023%3A-aapl-u-msft-atvi
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nan
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nan
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Tech stocks were lower Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.5% and the Philadelphia Semiconductor index falling 1.1%.
In company news, Apple (AAPL) has been working on generative artificial intelligence tools to catch up with rivals, but it hasn't decided yet how to release the new technology to consumers, Bloomberg reported Wednesday. Apple shares were adding 0.5%.
Unity Software (U) was up 1.7% after the company launched its beta program for visionOS, the operating system that powers Apple's Vision Pro.
Microsoft (MSFT) and Activision Blizzard (ATVI) revised some terms of their planned deal and extended the time period by which the companies must close the deal as they seek to resolve the remaining regulatory hurdles. Microsoft shares fell1.9% and Activision dropped 0.5%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Apple (AAPL) has been working on generative artificial intelligence tools to catch up with rivals, but it hasn't decided yet how to release the new technology to consumers, Bloomberg reported Wednesday. Tech stocks were lower Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.5% and the Philadelphia Semiconductor index falling 1.1%. Unity Software (U) was up 1.7% after the company launched its beta program for visionOS, the operating system that powers Apple's Vision Pro.
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In company news, Apple (AAPL) has been working on generative artificial intelligence tools to catch up with rivals, but it hasn't decided yet how to release the new technology to consumers, Bloomberg reported Wednesday. Apple shares were adding 0.5%. Microsoft shares fell1.9% and Activision dropped 0.5%.
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In company news, Apple (AAPL) has been working on generative artificial intelligence tools to catch up with rivals, but it hasn't decided yet how to release the new technology to consumers, Bloomberg reported Wednesday. Unity Software (U) was up 1.7% after the company launched its beta program for visionOS, the operating system that powers Apple's Vision Pro. Microsoft (MSFT) and Activision Blizzard (ATVI) revised some terms of their planned deal and extended the time period by which the companies must close the deal as they seek to resolve the remaining regulatory hurdles.
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In company news, Apple (AAPL) has been working on generative artificial intelligence tools to catch up with rivals, but it hasn't decided yet how to release the new technology to consumers, Bloomberg reported Wednesday. Tech stocks were lower Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.5% and the Philadelphia Semiconductor index falling 1.1%. Microsoft shares fell1.9% and Activision dropped 0.5%.
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14803.0
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2023-07-19 00:00:00 UTC
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Apple tests generative AI tools to rival OpenAI's ChatGPT - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-tests-generative-ai-tools-to-rival-openais-chatgpt-bloomberg-news-0
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nan
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nan
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Updates shares, adds details from the report and background
July 19 (Reuters) - Apple AAPL.O is working on artificial intelligence(AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high.
The iPhone maker has built its own framework, known as "Ajax", to create large language models (LLMs) and is also testing a chatbot that some engineers call "Apple GPT", the report said,citing people with knowledge of the matter.
The company did not respond to a Reuters request for comment.
Apple has so far held back from any big moves in AI and even avoided mentioning the buzzword at its developer conference in June - in stark contrast to other tech giants such as Alphabet GOOGL.O and Microsoft MSFT.Owhich have made bold moves to incorporate the breakthrough technology.
Shares of Microsoft, Nvidia NVDA.O and Alphabet dropped more than 1% after the report.
Apple has, however, subtly pushed advanced AI in some of its products such as Apple Photos, on device texting, and the recently launched mixed-reality headset Vision Pro. Still, analysts say the company is behind peers in incorporating the new technology.
Apple's core AI product, voice assistant Siri, has also stagnated over the years.
The Bloomberg report said several teams are involved in the latest AI effort, which is led by John Giannandrea, the company's head of machine learning and AI, andCraig Federighi, Apple's top software engineering executive.
Apple's new virtual assistant summarizes text and answers questions based on data it has been trained with, and is being used internally for product prototyping, according to the report. Employees say the tool essentially replicates Bard, ChatGPT and Bing AI, and works as a web application.
Apple does not yet have a concrete plan for the tools it is developing, but it is aiming to make a significant AI-related announcement next year, according to the report.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath)
((yuvraj.malik@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.
|
Updates shares, adds details from the report and background July 19 (Reuters) - Apple AAPL.O is working on artificial intelligence(AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high. The iPhone maker has built its own framework, known as "Ajax", to create large language models (LLMs) and is also testing a chatbot that some engineers call "Apple GPT", the report said,citing people with knowledge of the matter. Apple's new virtual assistant summarizes text and answers questions based on data it has been trained with, and is being used internally for product prototyping, according to the report.
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Updates shares, adds details from the report and background July 19 (Reuters) - Apple AAPL.O is working on artificial intelligence(AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high. Apple's core AI product, voice assistant Siri, has also stagnated over the years. Employees say the tool essentially replicates Bard, ChatGPT and Bing AI, and works as a web application.
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Updates shares, adds details from the report and background July 19 (Reuters) - Apple AAPL.O is working on artificial intelligence(AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high. Apple has so far held back from any big moves in AI and even avoided mentioning the buzzword at its developer conference in June - in stark contrast to other tech giants such as Alphabet GOOGL.O and Microsoft MSFT.Owhich have made bold moves to incorporate the breakthrough technology. The Bloomberg report said several teams are involved in the latest AI effort, which is led by John Giannandrea, the company's head of machine learning and AI, andCraig Federighi, Apple's top software engineering executive.
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Updates shares, adds details from the report and background July 19 (Reuters) - Apple AAPL.O is working on artificial intelligence(AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high. The iPhone maker has built its own framework, known as "Ajax", to create large language models (LLMs) and is also testing a chatbot that some engineers call "Apple GPT", the report said,citing people with knowledge of the matter. Still, analysts say the company is behind peers in incorporating the new technology.
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14804.0
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2023-07-19 00:00:00 UTC
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Stocks advance as earnings pick up; Dow notches 8th day of gains
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AAPL
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https://www.nasdaq.com/articles/stocks-advance-as-earnings-pick-up-dow-notches-8th-day-of-gains
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, July 19 (Reuters) - The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow registering its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark.
Goldman Sachs rose 0.97% after reporting a 3-year low in profit but CEO David Solomon made upbeat comments about signs of a recovery in investment banking. That echoed comments from other big banks on Tuesday.
"Right now we are getting through the raft of companies that are smart and years ago had moved over to more reliable fee based income and that is what people are kind of working through their heads," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
"Banks are giving you the tenor of what is happening in business."
Citizens FinancialCFG.N jumped 6.39% and M&T BankMTB.Nrose 2.48% after both beat Wall Street estimates for second-quarter profit. US BancorpUSB.N reversed earlier losses to climb 6.46% higher as the Minneapolis-based lender posted a 28% jump in quarterly .
The Dow notched its eighth straight session of gains, its longest winning streak since September 2019.
But gains on the Nasdaq were held in check, weighed down by a 1.23% fall in Microsoft MSFT.O.after a report that Apple AAPL.O was working on artificial intelligence (AI) offerings. Nvidia NVDA.O, was off 0.88% and Alphabet GOOGL.O, down 1.40%, also lost ground.
Tesla TSLA.O was up 0.46% after the closing bell in choppy trading after the electric vehicle maker reported its gross margin fell in the second quarter from the previous three months.
Also after the close, Netflix NFLX.O lost 4.48% after the streaming video company handily beat Wall Street's earnings forecasts.
Second-quarter earningsare expected to have declined 8.2%, Refinitiv data showed, more than the 5.7% fall expected at the start of the month.
AT&TT.N ended the session up 8.48% after the telecom company said it did not intend to immediately remove lead cables from Lake Tahoe pending further analysis. Peer Verizon VZ.N added 5.27%.
Volume on U.S. exchanges was 10.98 billion shares, compared with the 10.57 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 2.05-to-1 ratio; on Nasdaq, a 1.32-to-1 ratio favored advancers.
The S&P 500 posted 40 new 52-week highs and no new lows; the Nasdaq Composite recorded 144 new highs and 60 new lows.
(Reporting by Chuck Mikolajczak; Editing by Richard Chang and Aurora Ellis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
But gains on the Nasdaq were held in check, weighed down by a 1.23% fall in Microsoft MSFT.O.after a report that Apple AAPL.O was working on artificial intelligence (AI) offerings. Goldman Sachs rose 0.97% after reporting a 3-year low in profit but CEO David Solomon made upbeat comments about signs of a recovery in investment banking. "Right now we are getting through the raft of companies that are smart and years ago had moved over to more reliable fee based income and that is what people are kind of working through their heads," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
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But gains on the Nasdaq were held in check, weighed down by a 1.23% fall in Microsoft MSFT.O.after a report that Apple AAPL.O was working on artificial intelligence (AI) offerings. By Chuck Mikolajczak NEW YORK, July 19 (Reuters) - The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow registering its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark. Citizens FinancialCFG.N jumped 6.39% and M&T BankMTB.Nrose 2.48% after both beat Wall Street estimates for second-quarter profit.
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But gains on the Nasdaq were held in check, weighed down by a 1.23% fall in Microsoft MSFT.O.after a report that Apple AAPL.O was working on artificial intelligence (AI) offerings. By Chuck Mikolajczak NEW YORK, July 19 (Reuters) - The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow registering its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark. Goldman Sachs rose 0.97% after reporting a 3-year low in profit but CEO David Solomon made upbeat comments about signs of a recovery in investment banking.
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But gains on the Nasdaq were held in check, weighed down by a 1.23% fall in Microsoft MSFT.O.after a report that Apple AAPL.O was working on artificial intelligence (AI) offerings. By Chuck Mikolajczak NEW YORK, July 19 (Reuters) - The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow registering its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark. Goldman Sachs rose 0.97% after reporting a 3-year low in profit but CEO David Solomon made upbeat comments about signs of a recovery in investment banking.
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14805.0
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2023-07-19 00:00:00 UTC
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Handling a Raging Bull Market (5 Tips)
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AAPL
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https://www.nasdaq.com/articles/handling-a-raging-bull-market-5-tips
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nan
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nan
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Change is the Only Constant on Wall Street
Just a handful of months ago, former tech darlings crashed, recession fears brewed, and new layoffs were announced on a seemingly daily basis. To make matters worse, the US Federal Reserve raised interest rates viciously to tamp down rampant inflation – triggering an unforeseen spat of bankruptcies in the regional banking sector.
Fast forward to 2023, and the Nasdaq is off to its most robust start to a year in its 52-year history. Though participation has recently broadened, the equity index star thus far is the Nasdaq 100 Index ETF (QQQ). QQQ, which contains large-cap tech darlings like Apple (AAPL) and Microsoft (MSFT), is up a scorching 45% year-to-date and is knocking on the door of all-time highs. Meanwhile, stocks like Meta Platforms (META), Nvidia (NVDA), and Tesla (TSLA) are each up more than 150% for the year (NVDA is up a mind-blowing 228%).
Image Source: Zacks Investment Research
What Now?
Once again, equity markets have successfully climbed the proverbial “Wall of Worry”. However, few investors and analysts saw a bull market coming, let alone this magnitude of returns. Regardless of whether you’ve caught the bull market, there is little value in “Monday morning quarterbacking.” An old Wall Street saying warns, “You’re only as good as your next trade.” With that sentiment in mind, today I will lay out 5 tips on how to handle a raging bull market.
5 Tips on How to Handle a Raging Bull Market
If you missed the move, don’t chase it. Investing is a highly emotional endeavor. Seeing your neighbor or friend making money in the market may trigger your “Fear of Missing Out” instinct. However, the only thing worse than missing a move is chasing a move and compounding your mistakes. Remember, stocks will pull back eventually and test their 50-day moving average, an area with favorable reward-to-risk in uptrends. With the QQQ stretched 9% above the 50-day moving average, now is not the time to chase.
Image Source: Zacks Investment Research
If you’re already long, know your time frame and strategy. When it comes to selling winners, there is no right or wrong method, and there are multiple ways to “skin the cat”. For example, you can sell into strength, use a trailing stop, or wait for a moving average break. What’s critical for investors is to be cognizant of what happens in a worse-case scenario. Ask yourself, “What would happen if the market pulled back 10% from here?”. Do you have a plan? Also, ensure that you’re not over-exposed to one particular industry group. Typically, stocks within an industry group are highly correlated and will pull back simultaneously.
Image Source: Zacks Investment Research
Conversely, don’t be short just because something is up a lot. Carvana (CVNA) is up more than 1,000% year-to-date. While it might be tempting to short a name like CVNA, it is important to remember that trends often last longer than most expect. Think back to GameStop (GME) in 2020 and 2021. While it may have been tempting to short, the stock ran from $1 to $100!
Image Source: Zacks Investment Research
GME’s move was so spectacular that multi-billion-dollar hedge fund Melvin Capital blew up due to its short position. Remember, “Markets can remain irrational longer than you can remain solvent.”
Have cash on hand and build a watchlist of stocks to buy on pullbacks. As I mentioned, trends tend to persist much longer than most anticipate. The average bull market lasts roughly four years, so remember, the trend is your friend. What separates savvy investors from amateurs is the ability to wait for“your pitch.” Like a lion waiting to pounce on its prey, wait for big winners like Microsoft (MSFT) to pull back to logical support areas.
Image Source: Zacks Investment Research
Pay attention to “price action versus news” and sentiment. Equity markets tend to price in the news ahead of time. For example, in late 2022, US equities bottomed the day inflation hit its highest level in 40 years. In other words, despite the “bad” news, markets priced in the future.
Image Source: Zacks Investment Research
On Wednesday, Apple shares spiked intraday on news that the largest US company is rushing to develop its own generative AI tools to compete with OpenAI. Though the news was “good”, the stock backed off into the close of the session – a sign that Apple and the market may need to pull back.
Image Source: Zacks Investment Research
Pictured: Stocks often retest their breakout zone after a long-term break out.
Furthermore, the NAAIM Exposure Index, a sentiment gauge representing the average exposure to US equity markets, is at its most bullish level since late last year.
Image Source: NAAIM
George Patton once said, “If everyone is thinking alike, then somebody isn’t thinking.”
Conclusion
In a raging bull market, investors best serve themselves by exuding patience, managing emotions, and implementing common-sense measures. If you don’t have a plan, get one and follow it. Avoid getting caught up in the bull market hysteria.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
GameStop Corp. (GME) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Carvana Co. (CVNA) : 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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QQQ, which contains large-cap tech darlings like Apple (AAPL) and Microsoft (MSFT), is up a scorching 45% year-to-date and is knocking on the door of all-time highs. 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 GameStop Corp. (GME) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. To make matters worse, the US Federal Reserve raised interest rates viciously to tamp down rampant inflation – triggering an unforeseen spat of bankruptcies in the regional banking sector.
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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 GameStop Corp. (GME) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. QQQ, which contains large-cap tech darlings like Apple (AAPL) and Microsoft (MSFT), is up a scorching 45% year-to-date and is knocking on the door of all-time highs. Meanwhile, stocks like Meta Platforms (META), Nvidia (NVDA), and Tesla (TSLA) are each up more than 150% for the year (NVDA is up a mind-blowing 228%).
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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 GameStop Corp. (GME) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. QQQ, which contains large-cap tech darlings like Apple (AAPL) and Microsoft (MSFT), is up a scorching 45% year-to-date and is knocking on the door of all-time highs. Regardless of whether you’ve caught the bull market, there is little value in “Monday morning quarterbacking.” An old Wall Street saying warns, “You’re only as good as your next trade.” With that sentiment in mind, today I will lay out 5 tips on how to handle a raging bull market.
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QQQ, which contains large-cap tech darlings like Apple (AAPL) and Microsoft (MSFT), is up a scorching 45% year-to-date and is knocking on the door of all-time highs. 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 GameStop Corp. (GME) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research What Now?
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14806.0
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2023-07-19 00:00:00 UTC
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US STOCKS-Stocks advance as earnings pick up; Dow notches 8th day of gains
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AAPL
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https://www.nasdaq.com/articles/us-stocks-stocks-advance-as-earnings-pick-up-dow-notches-8th-day-of-gains
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, July 19 (Reuters) - The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow on pace for its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark.
Goldman Sachs rose after reporting a 3-year low in profit but CEO David Solomon made upbeat comments about signs of a recovery in investment banking. That echoed comments from other big banks on Tuesday.
"Right now we are getting through the raft of companies that are smart and years ago had moved over to more reliable fee based income and that is what people are kind of working through their heads," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
"Banks are giving you the tenor of what is happening in business."
Citizens FinancialCFG.N jumped and M&T BankMTB.Nrose after both beat Wall Street estimates for second-quarter profit. US BancorpUSB.N reversed earlier losses to climb higher as the Minneapolis-based lender posted a 28% jump in quarterly .
The KBW regional bank index .KRX rose for a third straight session to reach its highest intraday level since March 21.
The Dow was on track for its eighth straight session of gains, its longest winning streak since September 2019.
But gains on the Nasdaq were held in check, weighed down by a fall in Microsoft MSFT.O.after a report that Apple AAPL.O was working on artificial intelligence (AI) offerings. Nvidia NVDA.O and Alphabet GOOGL.O also lost ground.
Tesla TSLA.O was little changed in choppy trade ahead of results expected after the bell. It will be the first of the megacap growth companies whose outsized gains have fueled a roughly 37% gain in the Nasdaq .IXIC this year to report earnings this quarter.
Results from Netflix NFLX.O and International Business Machines Corp IBM.N are also due after the closing bell.
Second-quarter earningsare expected to have declined 8.2%, Refinitiv data showed, more than the 5.7% fall expected at the start of the month.
AT&TT.N rose after the telecom company said it did not intend to immediately remove lead cables from Lake Tahoe pending further analysis. Peer Verizon VZ.N also added 5.4%.
HalliburtonHAL.Nshed after posting disappointing quarterly revenue, while Baker HughesBKR.O edged up 0.5% after beating earnings expectations.
(Reporting by Chuck Mikolajczak; Editing by Richard Chang and Aurora Ellis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But gains on the Nasdaq were held in check, weighed down by a fall in Microsoft MSFT.O.after a report that Apple AAPL.O was working on artificial intelligence (AI) offerings. Goldman Sachs rose after reporting a 3-year low in profit but CEO David Solomon made upbeat comments about signs of a recovery in investment banking. "Right now we are getting through the raft of companies that are smart and years ago had moved over to more reliable fee based income and that is what people are kind of working through their heads," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
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But gains on the Nasdaq were held in check, weighed down by a fall in Microsoft MSFT.O.after a report that Apple AAPL.O was working on artificial intelligence (AI) offerings. The KBW regional bank index .KRX rose for a third straight session to reach its highest intraday level since March 21. The Dow was on track for its eighth straight session of gains, its longest winning streak since September 2019.
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But gains on the Nasdaq were held in check, weighed down by a fall in Microsoft MSFT.O.after a report that Apple AAPL.O was working on artificial intelligence (AI) offerings. By Chuck Mikolajczak NEW YORK, July 19 (Reuters) - The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow on pace for its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark. Goldman Sachs rose after reporting a 3-year low in profit but CEO David Solomon made upbeat comments about signs of a recovery in investment banking.
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But gains on the Nasdaq were held in check, weighed down by a fall in Microsoft MSFT.O.after a report that Apple AAPL.O was working on artificial intelligence (AI) offerings. The Dow was on track for its eighth straight session of gains, its longest winning streak since September 2019. Results from Netflix NFLX.O and International Business Machines Corp IBM.N are also due after the closing bell.
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14807.0
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2023-07-19 00:00:00 UTC
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Technology Sector Update for 07/19/2023: SRT, AAPL, U, MSFT, ATVI
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-07-19-2023%3A-srt-aapl-u-msft-atvi
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nan
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nan
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Tech stocks were lower late Wednesday, with the Technology Select Sector SPDR Fund (XLK) declining 0.2% and the Philadelphia Semiconductor index falling 1%.
In company news, Startek (SRT) shares jumped almost 17% after CSP EAF II GP submitted an offer to buy all outstanding StarTek shares not already owned at $3.80 apiece in cash.
Apple (AAPL) has been working on generative artificial intelligence tools to catch up with rivals, but it hasn't decided yet how to release the new technology to consumers, Bloomberg reported Wednesday. Apple shares were adding 0.8%.
Unity Software (U) was up 3.2% after the company launched its beta program for visionOS, the operating system that powers Apple's Vision Pro.
Microsoft (MSFT) and Activision Blizzard (ATVI) revised some terms of their planned merger and extended deadline by which their combination as they seek to resolve the remaining regulatory hurdles. Microsoft shares fell1.2%, and Activision slipped 0.6%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has been working on generative artificial intelligence tools to catch up with rivals, but it hasn't decided yet how to release the new technology to consumers, Bloomberg reported Wednesday. Tech stocks were lower late Wednesday, with the Technology Select Sector SPDR Fund (XLK) declining 0.2% and the Philadelphia Semiconductor index falling 1%. Microsoft (MSFT) and Activision Blizzard (ATVI) revised some terms of their planned merger and extended deadline by which their combination as they seek to resolve the remaining regulatory hurdles.
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Apple (AAPL) has been working on generative artificial intelligence tools to catch up with rivals, but it hasn't decided yet how to release the new technology to consumers, Bloomberg reported Wednesday. In company news, Startek (SRT) shares jumped almost 17% after CSP EAF II GP submitted an offer to buy all outstanding StarTek shares not already owned at $3.80 apiece in cash. Apple shares were adding 0.8%.
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Apple (AAPL) has been working on generative artificial intelligence tools to catch up with rivals, but it hasn't decided yet how to release the new technology to consumers, Bloomberg reported Wednesday. In company news, Startek (SRT) shares jumped almost 17% after CSP EAF II GP submitted an offer to buy all outstanding StarTek shares not already owned at $3.80 apiece in cash. Microsoft (MSFT) and Activision Blizzard (ATVI) revised some terms of their planned merger and extended deadline by which their combination as they seek to resolve the remaining regulatory hurdles.
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Apple (AAPL) has been working on generative artificial intelligence tools to catch up with rivals, but it hasn't decided yet how to release the new technology to consumers, Bloomberg reported Wednesday. Tech stocks were lower late Wednesday, with the Technology Select Sector SPDR Fund (XLK) declining 0.2% and the Philadelphia Semiconductor index falling 1%. In company news, Startek (SRT) shares jumped almost 17% after CSP EAF II GP submitted an offer to buy all outstanding StarTek shares not already owned at $3.80 apiece in cash.
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14808.0
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2023-07-19 00:00:00 UTC
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US STOCKS-Wall St edges higher as earnings pick up; Dow aims for 8th day of gains
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-edges-higher-as-earnings-pick-up-dow-aims-for-8th-day-of-gains
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, July 19 (Reuters) - The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow on pace for its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark.
Goldman Sachs rose 1.56% after reporting a 3-year low in profit but CEO David Solomon made positive comments about signs of a recovery in investment banking. That echoed upbeat comments from other big banks on Tuesday.
"Right now we are getting through the raft of companies that are smart and years ago had moved over to more reliable fee based income and that is what people are kind of working through their heads," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
"Banks are giving you the tenor of what is happening in business."
Citizens FinancialCFG.N jumped 7.75% and M&T BankMTB.Nrose 2.51% after both beat Wall Street estimates for second-quarter profit. US BancorpUSB.N reversed earlier losses to surge 4.6% as the Minneapolis-based lender posted a 28% jump in quarterly .
The Dow was on track for its eighth straight session of gains, its longest winning streak since September 2019.
Tesla TSLA.O lost 0.42% ahead of results expected after the bell. It will be the first of the megacap growth companies whose outsized gains have fueled a roughly 37% gain in the Nasdaq .IXIC this year to report earnings this quarter.
Results from Netflix NFLX.O and International Business Machines Corp IBM.N are also due after the closing bell.
Second-quarter earningsare expected to have declined 8.2%, Refinitiv data showed, more than the 5.7% fall expected at the start of the month.
AT&TT.N rose 8.25% after the telecom company said it did not intend to immediately remove lead cables from Lake Tahoe pending further analysis. Peer Verizon VZ.N also added 5.4%.
HalliburtonHAL.Nshed 3.14% after posting disappointing quarterly revenue, while Baker HughesBKR.O edged up 0.5% after beating earnings expectations.
The S&P 500 posted 39 new 52-week highs and no new lows; the Nasdaq Composite recorded 135 new highs and 55 new lows.
(Reporting by Chuck Mikolajczak; Editing by Richard Chang)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and 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 Chuck Mikolajczak NEW YORK, July 19 (Reuters) - The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow on pace for its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark. Goldman Sachs rose 1.56% after reporting a 3-year low in profit but CEO David Solomon made positive comments about signs of a recovery in investment banking. "Right now we are getting through the raft of companies that are smart and years ago had moved over to more reliable fee based income and that is what people are kind of working through their heads," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
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Goldman Sachs rose 1.56% after reporting a 3-year low in profit but CEO David Solomon made positive comments about signs of a recovery in investment banking. It will be the first of the megacap growth companies whose outsized gains have fueled a roughly 37% gain in the Nasdaq .IXIC this year to report earnings this quarter. HalliburtonHAL.Nshed 3.14% after posting disappointing quarterly revenue, while Baker HughesBKR.O edged up 0.5% after beating earnings expectations.
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By Chuck Mikolajczak NEW YORK, July 19 (Reuters) - The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow on pace for its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark. Goldman Sachs rose 1.56% after reporting a 3-year low in profit but CEO David Solomon made positive comments about signs of a recovery in investment banking. It will be the first of the megacap growth companies whose outsized gains have fueled a roughly 37% gain in the Nasdaq .IXIC this year to report earnings this quarter.
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Goldman Sachs rose 1.56% after reporting a 3-year low in profit but CEO David Solomon made positive comments about signs of a recovery in investment banking. Results from Netflix NFLX.O and International Business Machines Corp IBM.N are also due after the closing bell. HalliburtonHAL.Nshed 3.14% after posting disappointing quarterly revenue, while Baker HughesBKR.O edged up 0.5% after beating earnings expectations.
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14809.0
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2023-07-19 00:00:00 UTC
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SPY and QQQ ETFs are Buzzing on Reddit: Is There More Upside Left?
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AAPL
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https://www.nasdaq.com/articles/spy-and-qqq-etfs-are-buzzing-on-reddit%3A-is-there-more-upside-left
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nan
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nan
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The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ) are among the widely-discussed ETFs (exchange-traded funds) on the popular social media platform Reddit. While these ETFs are buzzing on Reddit and have significantly gained mentions, their recent rallies give them limited upside potential (based on analysts’ price targets on their holdings).
But before we dig deeper into these buzzing Reddit ETFs, let’s understand how TipRanks determines the ratings and price targets on ETFs.
How Does TipRanks Determine Analyst Ratings on ETFs?
TipRanks leverages its proprietary technology to calculate the consensus analyst forecast and price targets for ETFs by taking all their underlying assets into consideration. At a glance, you will see the overall analyst rating, analyst price target, and upside or downside on an ETF.
Innovatively, TipRanks calculates a weighted average number based on the combination of all the ETFs’ holdings. For instance, the average price forecast for an ETF is calculated by multiplying each holding’s price target by its weight (allocation) in the ETF.
Is SPY ETF Good to Buy Now?
SPY is one of the most popular ETFs to diversify risk and earn steady returns. For instance, the SPDR S&P 500 ETF has the S&P 500 Index (SPX) as the benchmark and aims to provide similar returns.
Impressively, the ETF is highly diversified, offers exposure to 24 separate industry groups, and primarily focuses on large-cap stocks. Meanwhile, it has delivered an average annualized return of 12.72% in the past decade with a low expense ratio of 0.09%, which makes it a compelling long-term investment.
While SPY is an attractive investment, investors can wait for a better entry point. SPY has gained about 20% year-to-date. Thanks to the recent gains, SPY is trading at a forward price-to-earnings multiple of 20.74, which appears expensive given the estimated EPS growth forecast of 12.48% over the next three to five years.
Yes, the SPY ETF has an Outperform Smart Score of 8 out of 10 on TipRanks. However, per the recommendations of 6,294 analysts giving stock forecasts for SPY's holdings, the 12-month average SPY price target of $485.53 implies limited upside potential of 6.9% from current levels. Also, the SPY ETF carries a Moderate Buy consensus rating on TipRanks.
Among the analysts providing ratings on its holdings, 59.60% have given a Buy rating, 35.02% have assigned a Hold rating, and 5.39% have given a Sell rating.
Is QQQ Stock a Buy or Sell?
The recovery in mega-cap technology companies has led to significant growth in the QQQ ETF. For instance, QQQ has gained over 45% on a year-to-date basis, led by the rally in the shares of its top five holdings, which are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA).
Together, its top five holdings account for 43.53% of its total holdings, implying that its performance is highly dependent on them. While these tech giants are poised to deliver strong growth in the long term, their recent rallies and valuation concerns could restrict their upside potential in the short term. This is well reflected in analysts’ price forecast for QQQ over the next 12 months.
According to the recommendations of 1,730 analysts giving stock forecasts for QQQ's holdings, the 12-month average QQQ price target of $396.72 implies a mere 2.85% in upside potential from current levels.
Nonetheless, QQQ ETF, which has the Nasdaq-100 index (NDX) as its benchmark, sports an Outperform Smart Score of 8 out of 10 on TipRanks. It has consistently outperformed the broader markets and delivered solid returns. However, the recent run in its price is keeping analysts cautiously optimistic.
QQQ ETF has a Moderate Buy consensus rating. Among the analysts providing ratings on its holdings, 66.53% have given a Buy rating, 29.71% have assigned a Hold rating, and 3.76% have given a Sell rating.
The Bottom Line
Both these buzzing Reddit ETFs look like solid long-term investments for investors seeking exposure to top companies with relatively lower risk. SPY and QQQ offer diversification and consistently deliver attractive returns. However, both these ETFs have gained quite a lot, which limits their upside potential.
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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For instance, QQQ has gained over 45% on a year-to-date basis, led by the rally in the shares of its top five holdings, which are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA). While these ETFs are buzzing on Reddit and have significantly gained mentions, their recent rallies give them limited upside potential (based on analysts’ price targets on their holdings). TipRanks leverages its proprietary technology to calculate the consensus analyst forecast and price targets for ETFs by taking all their underlying assets into consideration.
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For instance, QQQ has gained over 45% on a year-to-date basis, led by the rally in the shares of its top five holdings, which are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA). While these ETFs are buzzing on Reddit and have significantly gained mentions, their recent rallies give them limited upside potential (based on analysts’ price targets on their holdings). However, per the recommendations of 6,294 analysts giving stock forecasts for SPY's holdings, the 12-month average SPY price target of $485.53 implies limited upside potential of 6.9% from current levels.
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For instance, QQQ has gained over 45% on a year-to-date basis, led by the rally in the shares of its top five holdings, which are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA). For instance, the average price forecast for an ETF is calculated by multiplying each holding’s price target by its weight (allocation) in the ETF. Among the analysts providing ratings on its holdings, 59.60% have given a Buy rating, 35.02% have assigned a Hold rating, and 5.39% have given a Sell rating.
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For instance, QQQ has gained over 45% on a year-to-date basis, led by the rally in the shares of its top five holdings, which are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA). While these ETFs are buzzing on Reddit and have significantly gained mentions, their recent rallies give them limited upside potential (based on analysts’ price targets on their holdings). TipRanks leverages its proprietary technology to calculate the consensus analyst forecast and price targets for ETFs by taking all their underlying assets into consideration.
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14810.0
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2023-07-19 00:00:00 UTC
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Why the Bull Market Rally Will Last Until 2025 (At Least)
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AAPL
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https://www.nasdaq.com/articles/why-the-bull-market-rally-will-last-until-2025-at-least
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Thecurrent stock marketrally may be the most hated of all time. And that may actually be a very bullish thing that keeps this party going for a lot longer.
The stock market soared in the first half of 2023. And in fact, tech stocks had their best first-half showing in about 40 years. And the second half of the year is off to a hot start, too, with socks rallying even higher here in July.
Many of our portfolios are up more than 60% this year alone!
Yet, despite the record gains on Wall Street, a lot of investors remain skeptical. Sure, most folks have ditched the “this is just a bear market rally” mantra. But now the popular thing is to say that “this rally is on its last legs” and that “a crash is imminent.”
The bears simply aren’t capitulating.
But they should – because the bear thesis now has zero historical backing.
In fact, if history is any indicator, there is a 100% chance that this stock market rally is just getting started.
In last year’s nasty bear market, stocks dropped more than 25%. Since 1950, stocks have suffered through eight similarly nasty drops of 25% or worse. Each time, once stocks bottomed and started rebounding, they rebounded for years.
Specifically, they rebounded for at least three years. And over those three years, the market averaged a ~60% return!
In the current bull market, we’re up 26% over nine months, compared to an average of 60% over three years.
Folks, don’t let the bears scare you: This stock market rally is just getting started.
And history says it will last until at least 2025. That’s why you need to keep on buying stocks. And specifically, keep on buying AI stocks.
The Final Word on Bull Market Gains
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. Just last week, it announced huge partnerships to power AI programs at both Intuit (INTU) and Moody’s (MCO).
I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest.
However, the company is still just a startup. It isn’t publicly traded yet.
But I found an investment “loophole” that allows you to take a stake in OpenAI now – before its highly anticipated IPO.
This is your chance to invest in the next big thing. Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss.
Learn all about it.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Why the Bull Market Rally Will Last Until 2025 (At Least) 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. Just last week, it announced huge partnerships to power AI programs at both Intuit (INTU) and Moody’s (MCO). More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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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 Thecurrent stock marketrally may be the most hated of all time. In last year’s nasty bear market, stocks dropped more than 25%.
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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 Thecurrent stock marketrally may be the most hated of all time. In last year’s nasty bear market, stocks dropped more than 25%.
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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 fact, if history is any indicator, there is a 100% chance that this stock market rally is just getting started. In last year’s nasty bear market, stocks dropped more than 25%.
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14811.0
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2023-07-19 00:00:00 UTC
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4 Stocks to Watch as Back-to-School Shopping Promises Growth
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AAPL
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https://www.nasdaq.com/articles/4-stocks-to-watch-as-back-to-school-shopping-promises-growth
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nan
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nan
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Parents and students are busy with last-minute shopping as schools across the United States are set to resume after the break. This could be positive news for struggling retailers, as rising costs have caused consumers to be more cautious with their spending.
Back-to-school sales are projected to grow and are expected to drive retail sales this year. The good sign is that inflation is finally cooling, while personal income has been steadily increasing over the month, which might prompt people to spend at ease. This makes for a good opportunity to invest in stocks like Apple, Inc. AAPL,HP Inc. HPQ, PC Connection, Inc. CNXN and Casey's General Stores, Inc. CASY.
Back-to-School Sales to Grow
According to a survey by the National Retail Federation (NRF), Americans are expected to spend a record $41.5 billion during the all-important back-to-school season this year. Although commodity prices have increased considerably over the past year, NRF forecasts consumers to spend 12.5% more than they did in 2022 during this back-to-school shopping window.
Last year, the back-to-school season saw $36.9 billion in sales.
The survey further shows that families with children in kindergarten through Grade 12 intend to spend an average of $890.07 this year on back-to-school expenses, which is $25 more per than the previous years.
In order to cover these costs, many families are cutting back on other discretionary spending.
Spending on college-related expenses is projected to reach $94 billion in 2023 compared with $74 billion in the prior year. On average, people are expected to spend around $1,367 per person, up from last year's average of $1,199.
Consumers are expected to spend more on laptops and tablets, with the demand for electronics projected to hit a record high.
The retail sector has been suffering over the past year. The Fed has increased interest rates by 500 basis points since March 2022, which has been making things difficult for the retail sector as people have been cutting down on spending.
However, the good thing is that the Fed paused its interest rate hike in June for the first time after 10 straight hikes. Moreover, the June inflation data indicated that inflation is slowing, which has raised optimism that the Fed might finally end its monetary tightening cycle. This definitely bodes well for retailers ahead of the all-important back-to-school season.
Stocks to Watch
Given this situation, it would be ideal to focus on these four stocks.
Apple, Inc. primarily runs its business around its flagship iPhone. However, the Services portfolio, which includes revenues from cloud services, App store, Apple Music, AppleCare, Apple Pay, and licensing and other services have now become the cash cow. Moreover, AAPL’s non-iPhone devices like Apple Watch and AirPod have gained significant traction. In fact, Apple dominates the Wearables and Hearables markets due to the growing adoption of Watch and AirPods.
Apple’s expected earnings growth rate for next year is 10.3%. Shares of AAPL have gained 4.4% in the past 30 days. Apple carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HP Inc. is the surviving entity following the November 2015 split of Hewlett-Packard Company into publicly traded entities — Hewlett Packard Enterprise Company and HP Inc. HPQ is a leading global provider of personal computing and other access devices. HP’s other products include imaging and printing products, and related technologies, solutions and services to individual consumers, SMBs and large enterprises, including customers in the government, health and education sectors.
HP’s expected earnings growth rate for next year is 6.3%. Shares of HPQ have gained 5.1 % over the past 30 days. HP presently has a Zacks Rank #3.
PC Connection, Inc. is a direct marketer of brand-name personal computers. CNXN also markets related peripherals, software, and networking products to business, education, government, and consumer end users located primarily in the United States.
PC Connection’s expected earnings growth rate for next year is 16.4%. Shares of CNXN have gained 1% in the past three months. PC Connection presently carries a Zacks Rank #3.
Casey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 Midwestern states, mainly Iowa, Missouri and Illinois. CASY also operates two stores under the name "Tobacco City," selling primarily tobacco and nicotine products, one liquor store and one grocery store.
Casey's General Stores’ expected earnings growth rate for next year is 8.9%. Shares of CASY have gained 6.3% in the past 30 days. CASY currently carries a Zacks Rank #2.
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
HP Inc. (HPQ) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
PC Connection, Inc. (CNXN) : 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 makes for a good opportunity to invest in stocks like Apple, Inc. AAPL,HP Inc. HPQ, PC Connection, Inc. CNXN and Casey's General Stores, Inc. CASY. Moreover, AAPL’s non-iPhone devices like Apple Watch and AirPod have gained significant traction. Shares of AAPL have gained 4.4% in the past 30 days.
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This makes for a good opportunity to invest in stocks like Apple, Inc. AAPL,HP Inc. HPQ, PC Connection, Inc. CNXN and Casey's General Stores, Inc. CASY. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report PC Connection, Inc. (CNXN) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, AAPL’s non-iPhone devices like Apple Watch and AirPod have gained significant traction.
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This makes for a good opportunity to invest in stocks like Apple, Inc. AAPL,HP Inc. HPQ, PC Connection, Inc. CNXN and Casey's General Stores, Inc. CASY. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report PC Connection, Inc. (CNXN) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, AAPL’s non-iPhone devices like Apple Watch and AirPod have gained significant traction.
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This makes for a good opportunity to invest in stocks like Apple, Inc. AAPL,HP Inc. HPQ, PC Connection, Inc. CNXN and Casey's General Stores, Inc. CASY. Moreover, AAPL’s non-iPhone devices like Apple Watch and AirPod have gained significant traction. Shares of AAPL have gained 4.4% in the past 30 days.
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14812.0
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2023-07-19 00:00:00 UTC
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Investors Heavily Search Apple Inc. (AAPL): Here is What You Need to Know
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AAPL
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https://www.nasdaq.com/articles/investors-heavily-search-apple-inc.-aapl%3A-here-is-what-you-need-to-know-5
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nan
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nan
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +4.7%, compared to the Zacks S&P 500 composite's +3.4% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has gained 4.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Apple is expected to post earnings of $1.20 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%.
For the current fiscal year, the consensus earnings estimate of $6 points to a change of -1.8% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $6.62 indicates a change of +10.3% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Apple, the consensus sales estimate for the current quarter of $81.21 billion indicates a year-over-year change of -2.1%. For the current and next fiscal years, $384.34 billion and $409.1 billion estimates indicate -2.5% and +6.4% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $94.84 billion in the last reported quarter, representing a year-over-year change of -2.5%. EPS of $1.52 for the same period compares with $1.52 a year ago.
Compared to the Zacks Consensus Estimate of $93.32 billion, the reported revenues represent a surprise of +1.63%. The EPS surprise was +5.56%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Earnings Estimate Revisions Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else.
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14813.0
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2023-07-19 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-0
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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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14814.0
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2023-07-19 00:00:00 UTC
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1 Warren Buffett ETF That Could Turn $200 Per Month Into $395,000
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-etf-that-could-turn-%24200-per-month-into-%24395000
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nan
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nan
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Building wealth in the stock market isn't always easy, but with the right investments, you could earn hundreds of thousands of dollars or more.
Warren Buffett is one of the most successful investors in the world, so it often pays to follow his lead when it comes to making money in the stock market. For the most part, Buffett's portfolio consists of individual stocks -- but there is one type of ETF he owns and widely recommends.
Image source: The Motley Fool.
ETFs, or exchange-traded funds, are baskets of securities bundled together into a single investment. By investing in just one ETF, you'll instantly own dozens or even hundreds of different stocks.
This particular ETF is known for being one of the safest out there, and it requires next to no effort on your end. Here's how it could turn just $200 per month into roughly $395,000 over time.
Buffett's most recommended investment
The only type of ETF in Buffett's portfolio is the S&P 500 ETF. Through his holding company, Berkshire Hathaway, he owns both the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
The S&P 500 ETF tracks the S&P 500 index itself, meaning it includes the same stocks as the index and aims to mirror its long-term performance.
The S&P 500 contains stocks from 500 of the largest companies in the U.S., ranging from tech giants like Apple and Amazon to household names like Visa and Coca-Cola. When you own an S&P 500 ETF, you'll instantly own a stake in all 500 of these companies.
Buffett has long recommended low-cost index funds similar to these ETFs. "In my view, for most people, the best thing to do is to own the S&P 500 index fund," he said during Berkshire Hathaway's 2020 annual shareholders meeting.
Back in 2008, Buffett also famously bet $1 million that an S&P 500 fund could beat a collection of actively managed hedge funds. He easily won that bet, with his investment earning returns of nearly 126% over 10 years, while the five hedge funds averaged returns of just 36% in that time.
Perhaps one of the biggest advantages of the S&P 500 ETF, however, is that it's an extremely low-maintenance investment. There's no need to research individual stocks, keep up with industry trends, or decide when to buy or sell. Simply invest whatever you can afford, then sit back and wait for your money to grow.
Building a $400,000 portfolio
Of course, nobody knows how the market will perform in the future. But the S&P 500 has a long history of earning positive average returns, so it's likely an S&P 500 ETF will also experience growth over time.
Historically, the index itself has earned an average rate of return of around 10% per year. In other words, the returns each year have averaged out to roughly 10% annually over decades.
If you were to invest in an S&P 500 ETF while earning a 10% average annual return, here's approximately how far $200 per month could go depending on how many years you invest:
NUMBER OF YEARS TOTAL SAVINGS
15 $76,000
20 $137,000
25 $236,000
30 $395,000
35 $650,000
40 $1,062,000
Data source: Author's calculations via Investor.gov
To accumulate $395,000 in savings, you'd need to invest consistently for around 30 years. But if you're able to give your money even a few more years to grow, you could earn exponentially more in total.
One of the downside of S&P 500 ETFs, however, is that they can only earn average returns. This type of investment is designed to follow the market, so it's impossible for it to beat the market. If earning above-average returns is a primary goal of yours, you may be better off investing in individual stocks.
You don't need to be a stock market expert to build wealth by investing. While the S&P 500 ETF won't be the right fit for everyone, if you're looking for a safer and more reliable long-term investment, it could be a fantastic addition to your portfolio.
10 stocks we like better than Vanguard S&P 500 ETF
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard S&P 500 ETF wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 17, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Vanguard S&P 500 ETF, and Visa. 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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Warren Buffett is one of the most successful investors in the world, so it often pays to follow his lead when it comes to making money in the stock market. For the most part, Buffett's portfolio consists of individual stocks -- but there is one type of ETF he owns and widely recommends. The S&P 500 contains stocks from 500 of the largest companies in the U.S., ranging from tech giants like Apple and Amazon to household names like Visa and Coca-Cola.
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For the most part, Buffett's portfolio consists of individual stocks -- but there is one type of ETF he owns and widely recommends. He easily won that bet, with his investment earning returns of nearly 126% over 10 years, while the five hedge funds averaged returns of just 36% in that time. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Vanguard S&P 500 ETF, and Visa.
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Buffett's most recommended investment The only type of ETF in Buffett's portfolio is the S&P 500 ETF. If you were to invest in an S&P 500 ETF while earning a 10% average annual return, here's approximately how far $200 per month could go depending on how many years you invest: See the 10 stocks *Stock Advisor returns as of July 17, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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But the S&P 500 has a long history of earning positive average returns, so it's likely an S&P 500 ETF will also experience growth over time. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard S&P 500 ETF wasn't one of them! The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Vanguard S&P 500 ETF, and Visa.
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14815.0
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2023-07-19 00:00:00 UTC
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ANALYSIS-French backlash scuppers appointment of US economist for EU Big Tech regulation
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AAPL
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https://www.nasdaq.com/articles/analysis-french-backlash-scuppers-appointment-of-us-economist-for-eu-big-tech-regulation
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nan
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nan
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By Foo Yun Chee
BRUSSELS, July 19 (Reuters) - A French-led backlash led to a U.S. economist withdrawing from a top European Union antitrust job on Wednesday, a move some economists said risks undermining competition policy-making.
EU antitrust chief, Margrethe Vestager, triggered the furore last week by picking Fiona Scott Morton as the chief economist of the EU's antitrust unit, the competition arm currently running probes into U.S. tech giants Alphabet GOOGL.O, Apple AAPL.O, Meta Platforms META.O, Microsoft MSFT.O and Amazon's AMZN.O bid for iRobot IRBT.O.
It is rare for the Commission to pick a non-EU national for such a senior job unless there are exceptional circumstances.
France has in recent years been vocal about its determination to drive Europe's independence and wants to remove all possible U.S. influence from policy-making as it pushes for strategic autonomy in key industries, such as technology.
Scott Morton, 56, a Yale economics professor who held the post of chief economist at the U.S. Department of Justice just over a decade ago, has acted as a consultant for some Big Tech companies including Apple, Amazon and Microsoft. She would have had to recuse herself for up to two years from cases involving companies which were her clients.
France, from President Emmanuel Macron to its media and lawmakers, led criticism of her appointment, but leaders of the main political parties at the European Parliament also opposed the move.
A spokesman for the French foreign ministry said its opposition "did not relate to the qualities of the person concerned but to the compatibility of this appointment with two principles which are at the heart of our conception of the European Union: sovereignty and the protection of the interests of European businesses and consumers."
French politicians from all sides welcomed Morton's decision on Wednesday.
The EU has forged a reputation as a global pioneer for formulating privacy rules to keep the U.S. tech giants in check, handing out huge fines to Google for various anti-competitive business practices and forcing Amazon to change the way it uses sellers' data.
Vestager said she accepted Scott Morton's decision to quit with regret but economists warned that the debacle will leave the bloc's competition commissioner weakened.
Vestager should have been more transparent on possible conflicts of interest, said EU lawmaker Paul Tang from the Netherlands.
"This transparency was needed to restore trust. Unfortunately, Vestager did not intend to give that transparency. That didn't help the candidature of Scott Morton," he said.
Vestager's defence of her choice at a hearing on Tuesday was disappointing, said EU lawmaker and French lawyer Stephanie Yon-Courtin, who opposed Scott Morton's appointment.
"Let's stop with criticism on nationalism. The issue with this nomination was neither American nor French, it is a matter of European interest," she said.
Namur University law professor Alexandre De Streel, who with Nobel economics Laureate Jean Tirole and Toulouse School of Economics' Jacques Cremer, has published academic papers jointly with Scott Morton and defended her appointment, said her decision to quit was a big loss for EU competition policy.
He faulted the Commission on its handling of the issue.
"The Commission should have explained much better that competition policy is engrained in business reality and therefore, having worked for firms should be seen as an asset and not a liability," he said.
Thirty-nine top economists on both sides of the Atlantic earlier this week rallied round Scott Morton with an open letter pointing to her vast experience, commitment to public service and call for a stronger regulation of large tech firms.
(Reporting by Foo Yun Chee;Editing by Elaine Hardcastle)
((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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EU antitrust chief, Margrethe Vestager, triggered the furore last week by picking Fiona Scott Morton as the chief economist of the EU's antitrust unit, the competition arm currently running probes into U.S. tech giants Alphabet GOOGL.O, Apple AAPL.O, Meta Platforms META.O, Microsoft MSFT.O and Amazon's AMZN.O bid for iRobot IRBT.O. Scott Morton, 56, a Yale economics professor who held the post of chief economist at the U.S. Department of Justice just over a decade ago, has acted as a consultant for some Big Tech companies including Apple, Amazon and Microsoft. The EU has forged a reputation as a global pioneer for formulating privacy rules to keep the U.S. tech giants in check, handing out huge fines to Google for various anti-competitive business practices and forcing Amazon to change the way it uses sellers' data.
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EU antitrust chief, Margrethe Vestager, triggered the furore last week by picking Fiona Scott Morton as the chief economist of the EU's antitrust unit, the competition arm currently running probes into U.S. tech giants Alphabet GOOGL.O, Apple AAPL.O, Meta Platforms META.O, Microsoft MSFT.O and Amazon's AMZN.O bid for iRobot IRBT.O. By Foo Yun Chee BRUSSELS, July 19 (Reuters) - A French-led backlash led to a U.S. economist withdrawing from a top European Union antitrust job on Wednesday, a move some economists said risks undermining competition policy-making. Scott Morton, 56, a Yale economics professor who held the post of chief economist at the U.S. Department of Justice just over a decade ago, has acted as a consultant for some Big Tech companies including Apple, Amazon and Microsoft.
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EU antitrust chief, Margrethe Vestager, triggered the furore last week by picking Fiona Scott Morton as the chief economist of the EU's antitrust unit, the competition arm currently running probes into U.S. tech giants Alphabet GOOGL.O, Apple AAPL.O, Meta Platforms META.O, Microsoft MSFT.O and Amazon's AMZN.O bid for iRobot IRBT.O. By Foo Yun Chee BRUSSELS, July 19 (Reuters) - A French-led backlash led to a U.S. economist withdrawing from a top European Union antitrust job on Wednesday, a move some economists said risks undermining competition policy-making. Namur University law professor Alexandre De Streel, who with Nobel economics Laureate Jean Tirole and Toulouse School of Economics' Jacques Cremer, has published academic papers jointly with Scott Morton and defended her appointment, said her decision to quit was a big loss for EU competition policy.
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EU antitrust chief, Margrethe Vestager, triggered the furore last week by picking Fiona Scott Morton as the chief economist of the EU's antitrust unit, the competition arm currently running probes into U.S. tech giants Alphabet GOOGL.O, Apple AAPL.O, Meta Platforms META.O, Microsoft MSFT.O and Amazon's AMZN.O bid for iRobot IRBT.O. By Foo Yun Chee BRUSSELS, July 19 (Reuters) - A French-led backlash led to a U.S. economist withdrawing from a top European Union antitrust job on Wednesday, a move some economists said risks undermining competition policy-making. Vestager should have been more transparent on possible conflicts of interest, said EU lawmaker Paul Tang from the Netherlands.
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14816.0
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2023-07-19 00:00:00 UTC
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B of A Securities Maintains Apple (AAPL) Neutral Recommendation
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AAPL
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https://www.nasdaq.com/articles/b-of-a-securities-maintains-apple-aapl-neutral-recommendation-3
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nan
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nan
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Fintel reports that on July 19, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation.
Analyst Price Forecast Suggests 0.77% 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 0.77% from its latest reported closing price of 193.73.
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 6401 funds or institutions reporting positions in Apple. This is a decrease of 1 owner(s) or 0.02% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.89%, an increase of 53.20%. Total shares owned by institutions decreased in the last three months by 2.31% to 9,917,439K shares.
The put/call ratio of AAPL is 0.93, 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 19, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.89%, an increase of 53.20%. The put/call ratio of AAPL is 0.93, indicating a bullish outlook.
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Fintel reports that on July 19, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.89%, an increase of 53.20%. The put/call ratio of AAPL is 0.93, indicating a bullish outlook.
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Fintel reports that on July 19, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.89%, an increase of 53.20%. The put/call ratio of AAPL is 0.93, indicating a bullish outlook.
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Fintel reports that on July 19, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.89%, an increase of 53.20%. The put/call ratio of AAPL is 0.93, indicating a bullish outlook.
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14817.0
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2023-07-18 00:00:00 UTC
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Spain antitrust watchdog fines Amazon, Apple $218 million
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AAPL
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https://www.nasdaq.com/articles/spain-antitrust-watchdog-fines-amazon-apple-%24218-million-0
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nan
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nan
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Adds CNMC quotes, detail throughout
MADRID, July 18 (Reuters) - Spain's antitrust watchdog on Tuesday said it had imposed fines worth a total 194.1 million euros ($218.03 million) on Amazon AMZN.O and Apple AAPL.O for colluding to limit the online sale of devices from Apple and competitors in Spain.
The two contracts the companies signed on Oct. 31, 2018 granting Amazon the status of authorized Apple dealer included anti-competitive clauses that affected the online market for electronic devices in Spain, CNMC, as the watchdog is known, said in a statement.
"The two companies restricted without justification the number of sellers of Apple products on the Amazon website in Spain," it said.
More than 90% of the existing retailers who were using Amazon's market place to sell Apple devices were blocked as a result, CNMC added.
Amazon also reduced the capacity of retailers in the European Union based outside Spain to access Spanish customers, the regulator said.
It also restricted the advertising Apple's competitors were allowed to place on its website when users searched for Apple products, CNMC said.
Following the deal between the two tech giants, the prices of Apple devices sold online rose in Spain, it added.
Apple was fined 143.6 million euros and Amazon 50.5 million euros. The two companies have two months to appeal the decision.
Representatives for Apple and Amazon did not immediately respond to requests for comment.
($1 = 0.8902 euros)
(Reporting by Inti Landauro; Editing by David Latona and Jan Harvey)
((Inti.Landauro@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 CNMC quotes, detail throughout MADRID, July 18 (Reuters) - Spain's antitrust watchdog on Tuesday said it had imposed fines worth a total 194.1 million euros ($218.03 million) on Amazon AMZN.O and Apple AAPL.O for colluding to limit the online sale of devices from Apple and competitors in Spain. The two contracts the companies signed on Oct. 31, 2018 granting Amazon the status of authorized Apple dealer included anti-competitive clauses that affected the online market for electronic devices in Spain, CNMC, as the watchdog is known, said in a statement. More than 90% of the existing retailers who were using Amazon's market place to sell Apple devices were blocked as a result, CNMC added.
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Adds CNMC quotes, detail throughout MADRID, July 18 (Reuters) - Spain's antitrust watchdog on Tuesday said it had imposed fines worth a total 194.1 million euros ($218.03 million) on Amazon AMZN.O and Apple AAPL.O for colluding to limit the online sale of devices from Apple and competitors in Spain. The two contracts the companies signed on Oct. 31, 2018 granting Amazon the status of authorized Apple dealer included anti-competitive clauses that affected the online market for electronic devices in Spain, CNMC, as the watchdog is known, said in a statement. Apple was fined 143.6 million euros and Amazon 50.5 million euros.
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Adds CNMC quotes, detail throughout MADRID, July 18 (Reuters) - Spain's antitrust watchdog on Tuesday said it had imposed fines worth a total 194.1 million euros ($218.03 million) on Amazon AMZN.O and Apple AAPL.O for colluding to limit the online sale of devices from Apple and competitors in Spain. The two contracts the companies signed on Oct. 31, 2018 granting Amazon the status of authorized Apple dealer included anti-competitive clauses that affected the online market for electronic devices in Spain, CNMC, as the watchdog is known, said in a statement. Apple was fined 143.6 million euros and Amazon 50.5 million euros.
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Adds CNMC quotes, detail throughout MADRID, July 18 (Reuters) - Spain's antitrust watchdog on Tuesday said it had imposed fines worth a total 194.1 million euros ($218.03 million) on Amazon AMZN.O and Apple AAPL.O for colluding to limit the online sale of devices from Apple and competitors in Spain. More than 90% of the existing retailers who were using Amazon's market place to sell Apple devices were blocked as a result, CNMC added. It also restricted the advertising Apple's competitors were allowed to place on its website when users searched for Apple products, CNMC said.
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14818.0
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2023-07-18 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-1
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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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14819.0
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2023-07-18 00:00:00 UTC
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Apple chided by appeals judge as it heads to US Supreme Court in antitrust case
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AAPL
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https://www.nasdaq.com/articles/apple-chided-by-appeals-judge-as-it-heads-to-us-supreme-court-in-antitrust-case
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nan
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By Mike Scarcella
July 18 (Reuters) - A U.S. appeals court judge criticized Apple AAPL.O on Monday over legal arguments it made as it prepares to ask the U.S. Supreme Court to strike down a ruling that could require the iPhone maker to change payment practices in its App Store.
In an order, Judge Milan Smith of the San Francisco-based 9th U.S. Circuit Court of Appeals said Apple had made statements in its bid for time to appeal to the Supreme Court that "may not be technically frivolous" but that ignore the factual record and rulings in the case.
Still, despite the criticism of Apple's legal arguments, Smith and two other judges gave Apple 90 days to file a petition with the justices and paused its ruling on payment through apps.
Apple plans to fight an injunction — which the 9th Circuit upheld in April — that says it can't ban links within apps available through Apple's App store that direct consumers to payment options outside of the App Store.
Such links and buttons would give developers a chance to bypass paying 30% sales commissions to Apple. "Fortnite" maker Epic Games in 2020 sued Apple over its commissions, accusing Apple of violating U.S. antitrust law.
Smith wrote the majority decision in April in the 9th Circuit that kept in place most of the order issued in 2021 by U.S. District Judge Yvonne Gonzalez Rogers. Smith defended the panel opinion in Monday's ruling.
"When our reasoning and the district court's findings are considered, Apple's arguments cannot withstand even the slightest scrutiny," Smith wrote.
An Apple spokesperson and lawyers for the company involved in the case did not immediately respond to requests for comment.
Apple's lawyers had asked the 9th Circuit to pause issuing the court's formal "mandate." The court's mandate would have imposed the injunction that Apple wants the Supreme Court to scrap. Epic Games opposed Apple's bid to delay the court's mandate.
In its filing, Apple questioned Epic's legal "standing" to bring the antitrust suit in the first place. Apple also challenged the scope of the 9th Circuit's injunction, saying it should apply only to Epic and its subsidiaries and not nationally to all developers.
But Apple's argument "overlooks aspects of the panel opinion's analysis that are inconvenient to its position," Smith wrote. Epic's role as a games distributor, Smith said, justified a broad-reaching injunction.
Smith said competition-law injunctions often have "incidental benefits to non-parties." That's because "antitrust law protects competition, not individual market participants," the judge wrote.
Apple seemed to make arguments that "challenge an imagined panel opinion on an imagined record," Smith wrote.
Epic chief executive Tim Sweeney in a tweet on Monday expressed disappointment that the injunction against Apple would remain paused for now. He said the 9th Circuit's order was "justice delayed, again."
The case is Epic Games Inc v. Apple Inc, 9th U.S. Circuit Court of Appeals, No. 21-16506.
(Reporting by Mike Scarcella; editing by Leigh Jones)
The views and 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 Mike Scarcella July 18 (Reuters) - A U.S. appeals court judge criticized Apple AAPL.O on Monday over legal arguments it made as it prepares to ask the U.S. Supreme Court to strike down a ruling that could require the iPhone maker to change payment practices in its App Store. Smith wrote the majority decision in April in the 9th Circuit that kept in place most of the order issued in 2021 by U.S. District Judge Yvonne Gonzalez Rogers. "When our reasoning and the district court's findings are considered, Apple's arguments cannot withstand even the slightest scrutiny," Smith wrote.
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By Mike Scarcella July 18 (Reuters) - A U.S. appeals court judge criticized Apple AAPL.O on Monday over legal arguments it made as it prepares to ask the U.S. Supreme Court to strike down a ruling that could require the iPhone maker to change payment practices in its App Store. Epic Games opposed Apple's bid to delay the court's mandate. Apple seemed to make arguments that "challenge an imagined panel opinion on an imagined record," Smith wrote.
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By Mike Scarcella July 18 (Reuters) - A U.S. appeals court judge criticized Apple AAPL.O on Monday over legal arguments it made as it prepares to ask the U.S. Supreme Court to strike down a ruling that could require the iPhone maker to change payment practices in its App Store. Still, despite the criticism of Apple's legal arguments, Smith and two other judges gave Apple 90 days to file a petition with the justices and paused its ruling on payment through apps. Apple plans to fight an injunction — which the 9th Circuit upheld in April — that says it can't ban links within apps available through Apple's App store that direct consumers to payment options outside of the App Store.
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By Mike Scarcella July 18 (Reuters) - A U.S. appeals court judge criticized Apple AAPL.O on Monday over legal arguments it made as it prepares to ask the U.S. Supreme Court to strike down a ruling that could require the iPhone maker to change payment practices in its App Store. "Fortnite" maker Epic Games in 2020 sued Apple over its commissions, accusing Apple of violating U.S. antitrust law. Smith defended the panel opinion in Monday's ruling.
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14820.0
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2023-07-18 00:00:00 UTC
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Noteworthy Tuesday Option Activity: MCFT, ENPH, AAPL
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AAPL
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-mcft-enph-aapl
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in MasterCraft Boat Holdings Inc (Symbol: MCFT), where a total of 2,513 contracts have traded so far, representing approximately 251,300 underlying shares. That amounts to about 151.8% of MCFT's average daily trading volume over the past month of 165,585 shares. Particularly high volume was seen for the $25 strike put option expiring October 20, 2023, with 2,004 contracts trading so far today, representing approximately 200,400 underlying shares of MCFT. Below is a chart showing MCFT's trailing twelve month trading history, with the $25 strike highlighted in orange:
Enphase Energy Inc. (Symbol: ENPH) saw options trading volume of 55,850 contracts, representing approximately 5.6 million underlying shares or approximately 146.7% of ENPH's average daily trading volume over the past month, of 3.8 million shares. Particularly high volume was seen for the $200 strike call option expiring July 21, 2023, with 5,000 contracts trading so far today, representing approximately 500,000 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $200 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) saw options trading volume of 646,544 contracts, representing approximately 64.7 million underlying shares or approximately 122.3% of AAPL's average daily trading volume over the past month, of 52.9 million shares. Especially high volume was seen for the $195 strike call option expiring July 21, 2023, with 87,569 contracts trading so far today, representing approximately 8.8 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 MCFT options, ENPH options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Stock MACD
SVNA shares outstanding history
TX Split 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 21, 2023, with 87,569 contracts trading so far today, representing approximately 8.8 million underlying shares of AAPL. Below is a chart showing ENPH's trailing twelve month trading history, with the $200 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 646,544 contracts, representing approximately 64.7 million underlying shares or approximately 122.3% of AAPL's average daily trading volume over the past month, of 52.9 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 MCFT 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 $200 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 646,544 contracts, representing approximately 64.7 million underlying shares or approximately 122.3% of AAPL's average daily trading volume over the past month, of 52.9 million shares. Especially high volume was seen for the $195 strike call option expiring July 21, 2023, with 87,569 contracts trading so far today, representing approximately 8.8 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 MCFT 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 $200 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 646,544 contracts, representing approximately 64.7 million underlying shares or approximately 122.3% of AAPL's average daily trading volume over the past month, of 52.9 million shares. Especially high volume was seen for the $195 strike call option expiring July 21, 2023, with 87,569 contracts trading so far today, representing approximately 8.8 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 MCFT 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 $200 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 646,544 contracts, representing approximately 64.7 million underlying shares or approximately 122.3% of AAPL's average daily trading volume over the past month, of 52.9 million shares. Especially high volume was seen for the $195 strike call option expiring July 21, 2023, with 87,569 contracts trading so far today, representing approximately 8.8 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 MCFT options, ENPH options, or AAPL options, visit StockOptionsChannel.com.
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14821.0
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2023-07-18 00:00:00 UTC
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After Hours Most Active for Jul 18, 2023 : SQQQ, QQQ, AAPL, BEKE, AMZN, TQQQ, ENB, EXC, T, BAC, KO, SNAP
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jul-18-2023-%3A-sqqq-qqq-aapl-beke-amzn-tqqq-enb-exc-t-bac-ko
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The NASDAQ 100 After Hours Indicator is down -25.1 to 15,816.25. The total After hours volume is currently 93,779,688 shares traded.
The following are the most active stocks for the after hours session:
ProShares UltraPro Short QQQ (SQQQ) is +0.05 at $16.71, with 4,228,208 shares traded., following a 52-week high recorded in today's regular session.
Invesco QQQ Trust, Series 1 (QQQ) is -0.39 at $385.35, with 2,632,360 shares traded., following a 52-week high recorded in today's regular session.
Apple Inc. (AAPL) is -0.36 at $193.37, with 2,033,904 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
KE Holdings Inc (BEKE) is unchanged at $14.36, with 1,907,753 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.15 at $132.68, with 1,788,795 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -0.11 at $46.21, with 1,753,132 shares traded., following a 52-week high recorded in today's regular session.
Enbridge Inc (ENB) is unchanged at $36.63, with 1,732,179 shares traded. ENB's current last sale is 84.52% of the target price of $43.34.
Exelon Corporation (EXC) is unchanged at $41.28, with 1,686,928 shares traded. EXC's current last sale is 92.76% of the target price of $44.5.
AT&T Inc. (T) is +0.09 at $13.54, with 1,608,297 shares traded., following a 52-week high recorded in today's regular session.
Bank of America Corporation (BAC) is -0.01 at $30.69, with 1,352,376 shares traded. Smarter Analyst Reports: Citi Halts Share Buyback Amid New Regulation
Coca-Cola Company (The) (KO) is unchanged at $60.57, with 1,204,619 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Snap Inc. (SNAP) is -0.04 at $13.33, with 1,175,129 shares traded.SNAP is scheduled to provide an earnings report on 7/25/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is -0.24 per share, which represents a -22 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.36 at $193.37, with 2,033,904 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is +0.05 at $16.71, with 4,228,208 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.36 at $193.37, with 2,033,904 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is +0.05 at $16.71, with 4,228,208 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.36 at $193.37, with 2,033,904 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Invesco QQQ Trust, Series 1 (QQQ) is -0.39 at $385.35, with 2,632,360 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.36 at $193.37, with 2,033,904 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -25.1 to 15,816.25.
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14822.0
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2023-07-18 00:00:00 UTC
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T. Rowe’s Blue Chip Growth ETF (TCHP): Plenty to Like, but Alternatives Abound
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AAPL
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https://www.nasdaq.com/articles/t.-rowes-blue-chip-growth-etf-tchp%3A-plenty-to-like-but-alternatives-abound
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nan
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nan
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The T. Rowe Price Blue Chip Growth ETF (NYSEARCA:TCHP) is a relatively new, growth-oriented ETF from asset manager T. Rowe Price (NASDAQ:TROW) that has raced out to an impressive gain of nearly 40% year to date. There’s a lot to like about the ETF, but there are also some considerations that investors should think about before deciding whether to invest. Let’s take a look at why.
What Does the TCHP ETF Do?
Launched in 2020, TCHP is a growth ETF from T. Rowe Price that “seeks to provide long-term capital growth” with income as a “secondary objective.” According to T. Rowe Price, TCHP “focuses on companies with leading market positions, seasoned management, and strong financial fundamentals.”
TCHP's Top Holdings
TCHP holds 78 positions, but its top 10 holdings account for 63% of assets, so the fund is fairly concentrated. In fact, its top two positions, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), combine to make up roughly 25% of the fund. TCHP isn’t alone in this regard, as Apple and Microsoft have accrued massive market caps with their gains this year and dominate the top holdings of many ETFs, but it's one thing that investors should be aware of.
Below, you can take a look at TCHP’s top 10 holdings using TipRanks’ holdings tool.
As you can see, outside of Apple and Microsoft, the rest of TCHP's top holdings are dominated by other mega-cap tech names like Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA), along with several other popular growth names like Visa (NYSE:V), Mastercard (NASDAQ:MA), and UnitedHealth Group (NYSE:UNH).
As you can see, these holdings boast some pretty impressive Smart Scores across the board. 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. An admirable seven out of TCHP’s top 10 holdings feature Smart Scores of 8 or above.
TCHP itself features an Outperform-equivalent ETF Smart Score of 8 out of 10.
Is TCHP Stock a Buy, According to Analysts?
Turning to Wall Street, TCHP has a Moderate Buy consensus rating, as 74.51% of analyst ratings are Buys, 22.45% are Holds, and 3.03% are Sells. At $30.12, the average TCHP stock price target implies 3.85% upside potential.
A Lot to Like, But…
With a strong portfolio, favorable views from analysts, and an Outperform-equivalent Smart Score, there is a lot to like about TCHP. However, looking beneath the surface, there is one major caveat that investors should consider before investing.
With a list of top holdings dominated by Microsoft, Apple, and other mega-cap tech stocks, TCHP isn’t all that different from many of the much larger and more well-known growth ETFs out there, like the Vanguard Growth ETF (NYSEARCA:VUG), the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG), or even top tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ), for that matter.
There is plenty of overlap between these funds -- in fact, TCHP and VUG share eight of the same top 10 holdings, TCHP and SCHG share nine of the same top 10 holdings, and TCHP and QQQ share seven of the same top 10 holdings.
As you can see, TCHP isn’t particularly differentiated from these popular funds. This wouldn’t be a major issue in and of itself if it wasn’t for another concern -- TCHP has a significantly higher expense ratio than each of these three alternatives. Now, TCHP is actively managed, so of course, it is going to have a higher expense ratio than these index ETFs, but with so much overlap between the funds, it’s somewhat difficult to make the case for a significantly higher expense ratio.
How much higher is it? TCHP has an expense ratio of 0.57%. This is over 10 times higher than the expense ratios for VUG and SCHG, which both charge just a minuscule 0.04%. It’s also nearly three times higher than QQQ’s expense ratio of 0.20%.
Clearly, TCHP is more expensive, but what does this look like on the ground? An investor putting $10,000 into TCHP would pay $57 in fees in year one, while an investor in QQQ would pay $20, and an investor in VUG or SCHG would pay just $4.
The disparity becomes even more pronounced over time as these fees compound over the years. Assuming the fees remain the same and each ETF returns 5% per year over the next ten years, the SCHG and VUG investors would pay just $51 in fees over the course of the decade. The QQQ investor would pay $255 in fees, and the TCHP investor would pay a significantly higher $714 in fees over a 10-year time frame.
Again, in fairness to TCHP, it is actively managed, so its fees are going to be higher than for an index ETF, but this is a pretty significant gap, especially given the fact that these funds don't look significantly different from a holdings perspective.
Furthermore, while they have low fees, QQQ, VUG, and SCHG have all been around for a long time and compiled excellent long-term track records when it comes to performance, with all three offering investors double-digit annualized returns for a decade or more. On the other hand, TCHP has only been around since 2020, so it has not yet compiled this type of reliable track record.
Investor Takeaway
None of this is to pick on TCHP, as it seems like a good fund and could yet go on to establish a fine track record of its own over the years, but it is worth pointing out that there are plenty of alternatives that offer investors similar exposure with lower costs and with longer track records. In and of itself, TCHP looks like a perfectly fine ETF, but investment opportunities never exist in a vacuum, and it's always important to consider alternatives.
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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In fact, its top two positions, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), combine to make up roughly 25% of the fund. TCHP isn’t alone in this regard, as Apple and Microsoft have accrued massive market caps with their gains this year and dominate the top holdings of many ETFs, but it's one thing that investors should be aware of. This wouldn’t be a major issue in and of itself if it wasn’t for another concern -- TCHP has a significantly higher expense ratio than each of these three alternatives.
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In fact, its top two positions, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), combine to make up roughly 25% of the fund. Launched in 2020, TCHP is a growth ETF from T. Rowe Price that “seeks to provide long-term capital growth” with income as a “secondary objective.” According to T. Rowe Price, TCHP “focuses on companies with leading market positions, seasoned management, and strong financial fundamentals.” TCHP's Top Holdings TCHP holds 78 positions, but its top 10 holdings account for 63% of assets, so the fund is fairly concentrated. As you can see, outside of Apple and Microsoft, the rest of TCHP's top holdings are dominated by other mega-cap tech names like Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA), along with several other popular growth names like Visa (NYSE:V), Mastercard (NASDAQ:MA), and UnitedHealth Group (NYSE:UNH).
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In fact, its top two positions, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), combine to make up roughly 25% of the fund. Launched in 2020, TCHP is a growth ETF from T. Rowe Price that “seeks to provide long-term capital growth” with income as a “secondary objective.” According to T. Rowe Price, TCHP “focuses on companies with leading market positions, seasoned management, and strong financial fundamentals.” TCHP's Top Holdings TCHP holds 78 positions, but its top 10 holdings account for 63% of assets, so the fund is fairly concentrated. With a list of top holdings dominated by Microsoft, Apple, and other mega-cap tech stocks, TCHP isn’t all that different from many of the much larger and more well-known growth ETFs out there, like the Vanguard Growth ETF (NYSEARCA:VUG), the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG), or even top tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ), for that matter.
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In fact, its top two positions, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), combine to make up roughly 25% of the fund. TCHP isn’t alone in this regard, as Apple and Microsoft have accrued massive market caps with their gains this year and dominate the top holdings of many ETFs, but it's one thing that investors should be aware of. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks.
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14823.0
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2023-07-18 00:00:00 UTC
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S&P 500, Nasdaq: Highest Levels in 15 Months
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AAPL
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https://www.nasdaq.com/articles/sp-500-nasdaq%3A-highest-levels-in-15-months
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nan
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nan
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Markets kept the rally going today across the board, with muted economic prints joining better-than-expected earnings reports for industry leaders making a heady brew for bullish investors. In fact, the S&P 500 and Nasdaq have now closed at their highest levels since April of 2022. The Dow gained +366 points on the session, +1.06%, while the S&P and Nasdaq grew +0.71% and +0.76%, respectively. The small-cap Russell 2000 again surpassed the field on the day, +1.27%, giving further oxygen to the notion this rally is far-reaching.
Fifteen minutes before today’s opening bell, we saw new figures for Industrial Production for June, which came in much lower than expected: -0.5% on headline was well off the 0.0% expected. The previous month’s revision went from -0.2% to a matching -0.5%, and the first negative read since early 2022.
Its sister report, Capacity Utilization, was also more muted than analysts were predicting: 78.9% on June headline was slightly below the 79.5% expected, while the May revision dipped 20 basis points to 79.4%. None of these are nightmare numbers, but they do reflect a further economic cooling — another arrow in the quiver for the Fed to not raise interest rates again a week from tomorrow.
Also, Business Inventories for May were even with expectations at +0.2%, up from +0.1% posted last time around. And the latest Homebuilder Confidence Index for July came out earlier today, staying high but slightly lower than the estimate to 56. Last month, we saw a surprise surge to 55, and today’s read marks the third-straight month above 50 on this index. By comparison, in December of last year this survey only came in at 31. Thus, we can see further evidence in the rebound for housing, even at elevated mortgage costs based on higher interest rates from the Fed.
Tomorrow is the most consequential Q2 earnings day yet: not only Tesla TSLA and Netflix NFLX results come out after the close, along with IBM IBM, Las Vegas Sands LVS and others, but also ahead of the open, with Goldman Sachs GS and United UAL among those companies reporting. Going back to Delta’s DAL earnings a week ago, we’ve overall seen a better-than-expected Q2 thus far. Tomorrow will go a long way in help us begin to understand if this is a far-reaching positive quarter or mostly concentrated to good airlines or financial institutions.
As much as we’re focused on the major market-impact events of this week, next Monday there’s a rare — but notable — thing happening that will affect investors in high-end tech names, or at least the seven biggest gainers of the Nasdaq 100 — a rebalancing of that sub-index, in order to more evenly distribute shares. This means that seven companies in the (non-financial institution) Nasdaq 100 have recently accounted for more than 50% of the sub-index, and those companies are: Nvidia NVDA, which is up a whopping +215% year to date; Microsoft MSFT, +51%, since the start of January; Meta Platforms META; Apple AAPL; Tesla TSLA; Amazon AMZN; and Alphabet GOOGL.
As of Monday morning, the total amount of Nasdaq 100 share for these seven companies will be reduced from 56% to 44%, with Nvidia and Microsoft taken down -3% each. Zacks Senior ETF Strategist Neena Mishra says, “This is great for investors… more diversification in funds of the Nasdaq.” Zacks Director of Research Sheraz Mian says, “This is a ‘technical’ issue that will wash out in a few days,” as these Magnificent 7 continue to outperform, but is nevertheless notable to investors in the near term.
Questions or comments about this article and/or author? Click here>>
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This means that seven companies in the (non-financial institution) Nasdaq 100 have recently accounted for more than 50% of the sub-index, and those companies are: Nvidia NVDA, which is up a whopping +215% year to date; Microsoft MSFT, +51%, since the start of January; Meta Platforms META; Apple AAPL; Tesla TSLA; Amazon AMZN; and Alphabet GOOGL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Las Vegas Sands Corp. (LVS) : 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. Markets kept the rally going today across the board, with muted economic prints joining better-than-expected earnings reports for industry leaders making a heady brew for bullish investors.
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This means that seven companies in the (non-financial institution) Nasdaq 100 have recently accounted for more than 50% of the sub-index, and those companies are: Nvidia NVDA, which is up a whopping +215% year to date; Microsoft MSFT, +51%, since the start of January; Meta Platforms META; Apple AAPL; Tesla TSLA; Amazon AMZN; and Alphabet GOOGL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Las Vegas Sands Corp. (LVS) : 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. Tomorrow is the most consequential Q2 earnings day yet: not only Tesla TSLA and Netflix NFLX results come out after the close, along with IBM IBM, Las Vegas Sands LVS and others, but also ahead of the open, with Goldman Sachs GS and United UAL among those companies reporting.
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This means that seven companies in the (non-financial institution) Nasdaq 100 have recently accounted for more than 50% of the sub-index, and those companies are: Nvidia NVDA, which is up a whopping +215% year to date; Microsoft MSFT, +51%, since the start of January; Meta Platforms META; Apple AAPL; Tesla TSLA; Amazon AMZN; and Alphabet GOOGL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Las Vegas Sands Corp. (LVS) : 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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This means that seven companies in the (non-financial institution) Nasdaq 100 have recently accounted for more than 50% of the sub-index, and those companies are: Nvidia NVDA, which is up a whopping +215% year to date; Microsoft MSFT, +51%, since the start of January; Meta Platforms META; Apple AAPL; Tesla TSLA; Amazon AMZN; and Alphabet GOOGL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Las Vegas Sands Corp. (LVS) : 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. Fifteen minutes before today’s opening bell, we saw new figures for Industrial Production for June, which came in much lower than expected: -0.5% on headline was well off the 0.0% expected.
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14824.0
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2023-07-18 00:00:00 UTC
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7 Remarkable Stocks That Could Join Apple, Microsoft, Nvidia, Amazon, and Alphabet in the $1 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/7-remarkable-stocks-that-could-join-apple-microsoft-nvidia-amazon-and-alphabet-in-the-%241
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nan
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nan
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Fool.com contributor and 25-year stock market veteran Eric Cuka shares the companies currently in the trillion-dollar club and the seven best stocks to buy that will likely join the ranks next.
*Stock prices used were the morning prices of July 18, 2023. The video was published on July 18, 2023.
Find out why Tesla is one of the 10 best stocks to buy now
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They just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of July 17, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Alphabet, Amazon.com, Apple, Broadcom, Microsoft, Nvidia, Tesla, and UnitedHealth Group. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tesla, and Visa. The Motley Fool recommends Broadcom and UnitedHealth Group. The Motley Fool has a disclosure policy.
Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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*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. Eric Cuka has positions in Alphabet, Amazon.com, Apple, Broadcom, Microsoft, Nvidia, Tesla, and UnitedHealth Group. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tesla, and Visa.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Alphabet, Amazon.com, Apple, Broadcom, Microsoft, Nvidia, Tesla, and UnitedHealth Group. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tesla, and Visa.
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*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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tesla, and Visa.
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Fool.com contributor and 25-year stock market veteran Eric Cuka shares the companies currently in the trillion-dollar club and the seven best stocks to buy that will likely join the ranks next. Find out why Tesla is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. *Stock Advisor returns as of July 17, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
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14825.0
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2023-07-18 00:00:00 UTC
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Is Apple Stock a Buy?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-a-buy-0
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nan
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nan
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Apple (NASDAQ: AAPL) has made a lot of headlines this year after unveiling its highly anticipated virtual/augmented reality (VR/AR) headset and becoming the first company to achieve a market cap of $3 trillion. As a result, the tech giant is probably on your radar for potential investment.
However, investing in a company that has already achieved so much can feel risky, as you might question how much room there realistically is left to expand. The good news is this isn't a massive issue in the tech industry. The sector's naturally innovative nature keeps it in a constant state of development, offering companies consistent long-term gains.
Meanwhile, Apple's dominance suggests it could benefit most in the future from technological advances, especially from the consumer-focused side of the market.
Here's why Apple's stock is a screaming long-term buy.
A lucrative future in artificial intelligence
All eyes have been on artificial intelligence (AI) this year, with the market projected to expand at a compound annual growth rate of 37% through 2030. As a result, companies that are very publicly focused on developing the sector, like Nvidia, Microsoft, Alphabet, and Amazon, have rallied investors. However, Apple could play a crucial role in the future of AI, even if it isn't super vocal about it.
Unlike many of its peers, Apple seems strategically intent on avoiding the term AI. While other companies are heavily using the phrase to garner investor support, the iPhone company is instead focused on debuting new software features that are quietly enabled by AI. In doing so, Apple is protecting its brand by making it harder to lump its business in with the other big names in AI and avoid comparisons. This strategy can reduce volatility in Apple's stock, as it won't be harshly affected by fluctuations in the AI market.
However, the dominance of its products means it will likely be the main driver of AI adoption by the public. At Apple's Worldwide Developer Conference in June, it unveiled several new AI-run software features. Improvements to the iPhone's autocorrect use a transformer language model, the same technology that led to OpenAI's ChatGPT. However, while other companies utilize massive server farms to run similar AI workloads, Apple impressively gets the job done directly on the iPhone.
In addition to its smartphone, the company has brought AI upgrades to the AirPod Pros, which can automatically turn off noise canceling when the user is in a conversation. As Apple continues to develop alongside AI, other products in its lineup will likely get upgrades, which could bolster consumer interest and revenue over the long term.
Apple is an unstoppable force in consumer tech
Economic declines hurt countless tech companies last year as inflation hikes caused reductions in consumer spending. The situation continued to challenge companies into the first quarter of 2023, with research from Counterpoint showing smartphone shipments fell by 17% year over year.
As a result, Samsung's smartphone market share in the U.S. stagnated at 27% for the quarter. Meanwhile, Motorola's decreased from 10% to 8%. However, the iPhone's massive dominance in the sector allowed it to take advantage of poor market conditions, with Apple's market share rising from 49% to 53% in Q1 2023.
Moreover, a similar phenomenon occurred in the personal computing industry. According to IDC, PC shipments tumbled 13% in Q2 2023, with companies like Lenovo and Dell experiencing declines of 18% and 22%. However, the same period saw Apple enjoy the only rise in PC shipments among its biggest competitors, with Mac shipments up 10% year over year.
This tech stock has proven its resilience amid uncertain market conditions and consumers' preferences for its products. This means that alongside a promising future in AI and a stock that has risen roughly 300% in the last five years, Apple is a no-brainer buy right now.
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*Stock Advisor returns as of July 10, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has made a lot of headlines this year after unveiling its highly anticipated virtual/augmented reality (VR/AR) headset and becoming the first company to achieve a market cap of $3 trillion. However, while other companies utilize massive server farms to run similar AI workloads, Apple impressively gets the job done directly on the iPhone. In addition to its smartphone, the company has brought AI upgrades to the AirPod Pros, which can automatically turn off noise canceling when the user is in a conversation.
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Apple (NASDAQ: AAPL) has made a lot of headlines this year after unveiling its highly anticipated virtual/augmented reality (VR/AR) headset and becoming the first company to achieve a market cap of $3 trillion. As a result, companies that are very publicly focused on developing the sector, like Nvidia, Microsoft, Alphabet, and Amazon, have rallied investors. As Apple continues to develop alongside AI, other products in its lineup will likely get upgrades, which could bolster consumer interest and revenue over the long term.
|
Apple (NASDAQ: AAPL) has made a lot of headlines this year after unveiling its highly anticipated virtual/augmented reality (VR/AR) headset and becoming the first company to achieve a market cap of $3 trillion. This strategy can reduce volatility in Apple's stock, as it won't be harshly affected by fluctuations in the AI market. Apple is an unstoppable force in consumer tech Economic declines hurt countless tech companies last year as inflation hikes caused reductions in consumer spending.
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Apple (NASDAQ: AAPL) has made a lot of headlines this year after unveiling its highly anticipated virtual/augmented reality (VR/AR) headset and becoming the first company to achieve a market cap of $3 trillion. As a result, companies that are very publicly focused on developing the sector, like Nvidia, Microsoft, Alphabet, and Amazon, have rallied investors. However, the iPhone's massive dominance in the sector allowed it to take advantage of poor market conditions, with Apple's market share rising from 49% to 53% in Q1 2023.
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14826.0
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2023-07-18 00:00:00 UTC
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Canada sees path forward on global digital services tax deal
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AAPL
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https://www.nasdaq.com/articles/canada-sees-path-forward-on-global-digital-services-tax-deal
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nan
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nan
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By Ismail Shakil and Steve Scherer
OTTAWA, July 18 (Reuters) - Canada sees a path forward in reaching international consensus on digital services taxes, and a decision to not back a global agreement on freezing the implementation of domestic taxes was taken in the national interest, Finance Minister Chrystia Freeland said on Tuesday.
The first part of the two-pillar deal aims to reallocate rights of taxation on about $200 billion in profits from the biggest and most profitable multinationals to the countries where their sales occur. The second pillar calls on governments to end tax competition between governments to attract investment by setting a global minimum corporate tax rate of 15% from next year.
(Reporting by Ismail Shakil and Steve Scherer in Ottawa Additional reporting by David Ljunggren in Ottawa Editing by Matthew Lewis)
((ismail.shakil@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 Ismail Shakil and Steve Scherer OTTAWA, July 18 (Reuters) - Canada sees a path forward in reaching international consensus on digital services taxes, and a decision to not back a global agreement on freezing the implementation of domestic taxes was taken in the national interest, Finance Minister Chrystia Freeland said on Tuesday. The second pillar calls on governments to end tax competition between governments to attract investment by setting a global minimum corporate tax rate of 15% from next year. (Reporting by Ismail Shakil and Steve Scherer in Ottawa Additional reporting by David Ljunggren in Ottawa Editing by Matthew Lewis) ((ismail.shakil@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 Ismail Shakil and Steve Scherer OTTAWA, July 18 (Reuters) - Canada sees a path forward in reaching international consensus on digital services taxes, and a decision to not back a global agreement on freezing the implementation of domestic taxes was taken in the national interest, Finance Minister Chrystia Freeland said on Tuesday. The second pillar calls on governments to end tax competition between governments to attract investment by setting a global minimum corporate tax rate of 15% from next year. (Reporting by Ismail Shakil and Steve Scherer in Ottawa Additional reporting by David Ljunggren in Ottawa Editing by Matthew Lewis) ((ismail.shakil@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 Ismail Shakil and Steve Scherer OTTAWA, July 18 (Reuters) - Canada sees a path forward in reaching international consensus on digital services taxes, and a decision to not back a global agreement on freezing the implementation of domestic taxes was taken in the national interest, Finance Minister Chrystia Freeland said on Tuesday. The first part of the two-pillar deal aims to reallocate rights of taxation on about $200 billion in profits from the biggest and most profitable multinationals to the countries where their sales occur. (Reporting by Ismail Shakil and Steve Scherer in Ottawa Additional reporting by David Ljunggren in Ottawa Editing by Matthew Lewis) ((ismail.shakil@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 Ismail Shakil and Steve Scherer OTTAWA, July 18 (Reuters) - Canada sees a path forward in reaching international consensus on digital services taxes, and a decision to not back a global agreement on freezing the implementation of domestic taxes was taken in the national interest, Finance Minister Chrystia Freeland said on Tuesday. The first part of the two-pillar deal aims to reallocate rights of taxation on about $200 billion in profits from the biggest and most profitable multinationals to the countries where their sales occur. The second pillar calls on governments to end tax competition between governments to attract investment by setting a global minimum corporate tax rate of 15% from next year.
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14827.0
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2023-07-18 00:00:00 UTC
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Use AI to Keep Powering Gains in a Changing World
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AAPL
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https://www.nasdaq.com/articles/use-ai-to-keep-powering-gains-in-a-changing-world
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Is your job at risk because of AI?
That’s a question a lot of folks are asking themselves these days. The emergence of AI is very exciting; but it’s also very scary. AI systems can do a lot of things that humans currently do for work – packaging orders, cooking food, writing ads, making movies, and more.
And Goldman Sachs estimates that 300 million full-time jobs will be replaced by AI by 2030.
That’s a lot of jobs.
And the reality of AI stealing jobs scares most people.
But we think it should excite them.
That’s because AI will replace jobs, not workers.
Artificial intelligence will serve as a tool that will help workers be more efficient – and in return, earn more money for the same amount of work.
Restaurants won’t replace chefs with robots. They’ll use robots alongside chefs to make more food than you can imagine and faster than ever before. And as a result, you won’t ever have to wait long for even the freshest of food.
Media firms won’t replace script writers. They’ll use software alongside writers to create better scripts than ever before. And we’ll be able to consume more and better content than ever before.
Legal firms won’t replace lawyers. They’ll use AI alongside them to provide better defense/prosecution and help our justice system deliver better, more equitable, and fairer outcomes.
AI will boost the labor market. Not kill it.
Boosting the Labor Market
Just consider my own career.
In my industry, AI will entirely redefine the rules of investing. AI-powered quantitative trading strategies will become increasingly prevalent. And at the same time, human-powered discretionary investment strategies will begin to fall to the wayside.
That may lead some to think that human stock-pickers will be out of a job in a few years.
But we’re confident that isn’t true.
Instead, the best investors will use both quantitative and discretionary strategies.
They’ll use quant strategies for short-term trading because that’s where AI and big data shine brightest. That will allow them to dissect and analyze real-time price data much faster and more accurately than any human. And as a result, they’ll be able to provide stunningly accurate short-term price predictions.
Looking for a bunch of short-term wins in the stock market? Use a quant strategy.
And if you’re looking for long-term home run hits in the stock market, you have to rely on a discretionary strategy.
After all, what pushes a stock up 1,000% or 2,000% over the course of five to 10 years? Most of the time, consumer behavior.
Consumers fell in love with iPhones and bought them in droves year after year. And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years.
Consumers fell in love with Netflix’s streaming service and subscribed in droves, which propelled Netflix (NFLX) stock more than 1,110% higher over the past 10 years.
And the same is true for Amazon Prime. Consumers fell in love with the service and signed up for it in droves, which pushed Amazon (AMZN) stock more than 770% higher over the past 10 years.
Indeed, consumer behavior drives long-term price trajectory.
AI Can Power Quant Trading Strategies
AI can’t accurately forecast consumer behavior (yet). It can’t tell you if everyone will love the next iPhone, if they’ll sign up for a new social media app, or if they’ll watch a particular movie or TV show.
But a well-connected human with a good intuition can give you a pretty accurate forecast of those things.
Therefore, if you really want to make money in the stock market over the next few years, you need to start employing a dual investment strategy.
Use the best quantitative strategies for short-term profits and the best discretionary strategies for long-term profits. Rack up fast short-term wins with AI and data. Score huge long-term wins with good intuition (and some lucky guesses, too).
It’s the best of both worlds.
The Final Word
That’s why, today, I’m going to tell you about one of my favorite discretionary investment strategies right now: Investing in the company that started this whole AI Boom – OpenAI, the creator of ChatGPT.
OpenAI has done a lot since ChatGPT’s launch in November 2022. The company’s valuation has already doubled.
But this is just the start.
I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest.
And that’s why you need to hear about a special loophole I discovered that will allow you to invest in OpenAI today.
This is your chance to invest in the next big thing.
Like investing in Apple in the 1980s or Amazon in the 1990s, this is an opportunity you can’t afford to miss.
Learn all about it.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
More From InvestorPlace
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The post Use AI to Keep Powering Gains in a Changing World 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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And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years. AI systems can do a lot of things that humans currently do for work – packaging orders, cooking food, writing ads, making movies, and more. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years. Media firms won’t replace script writers. AI Can Power Quant Trading Strategies AI can’t accurately forecast consumer behavior (yet).
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And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years. AI Can Power Quant Trading Strategies AI can’t accurately forecast consumer behavior (yet). Therefore, if you really want to make money in the stock market over the next few years, you need to start employing a dual investment strategy.
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And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years. AI Can Power Quant Trading Strategies AI can’t accurately forecast consumer behavior (yet). Therefore, if you really want to make money in the stock market over the next few years, you need to start employing a dual investment strategy.
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14828.0
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2023-07-18 00:00:00 UTC
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3 Warren Buffett Stocks That Everyone Should Own
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AAPL
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-that-everyone-should-own
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nan
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If you want to improve your investment acumen, it pays to learn from the best. And no investor is as prominent and successful as Warren Buffett.
Also known as the "Oracle of Omaha," the veteran investor has chalked up an amazing investment track record since he purchased his first investment at the tender age of 11. Together with his partner Charlie Munger, Buffett runs Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), an investment holding company with stakes in both listed stocks and wholly owned businesses.
Berkshire has grown into a $744 billion behemoth and has reported a 19.8% compounded annual gain from 1965 to 2022, handily beating the S&P 500 index's 9.9% return over the same period. Warren Buffett is well-known for his long-term focus and views buying stocks as becoming part-owners of businesses.
Going through Berkshire's portfolio is a useful way of looking for solid stocks that you can own for the long run. Here are three choice picks that you might consider adding to your portfolio.
Image source: Getty Images.
Apple
Apple (NASDAQ: AAPL) occupies an outsized position within Berkshire's portfolio, taking up 46% of its total value as of March 31, 2023. The technology company is responsible for revolutionizing the smartphone industry with the invention of its iconic iPhone back in 2007.
Apple is well-known for its innovative products and services and has a legion of loyal customers who dutifully purchase every new iteration of their devices such as iPads, iMacs, and Apple Watches. This strong brand loyalty generates steady recurring income for the business, enabling it to continue reporting increasing profits and cash flow.
Total revenue for the company rose steadily through the pandemic from $274.5 billion to $394.3 billion from fiscal 2020 (ending Sept. 30th) to fiscal 2022. Over the same period, net income jumped from $57.4 billion to $99.8 billion.
Free cash flow improved from $73.4 billion to $111.4 billion from the 2020 to 2022 fiscal year for an average of $92.6 billion in free cash flow generated. In tandem with rising free cash flow, Apple's annual dividend per share has also risen from $0.795 to $0.90.
The technology behemoth just released its latest new product Vision Pro, a mixed-reality headset that's easy to use and promises to revolutionize the wearable-technology sector. Apple has plans to sell it in 2024 at a retail price of $3,499. This will be the company's next big product and may bring in even higher revenue to support its dividend payouts.
Mastercard
Mastercard (NYSE: MA) may not take up a significant portion of Berkshire's portfolio, but the $381 billion payments-processing company is a giant within its industry. Mastercard has 3.1 billion cards in use as of March 31, up 9% year over year, and is present in more than 210 countries and regions.
The company's financials have been stellar. Revenue rose from $15.3 billion in 2020 to $22.2 billion in 2022, with net income climbing from $6.4 billion to $9.9 billion over the same period.
Free cash flow improved from $6.5 billion to $10.1 billion from 2020 to 2022, allowing Mastercard to increase its quarterly dividend from $0.40 to $0.49. Its current dividend has improved to $0.57 per quarter and has increased without fail since 2012, a fact that should delight income-seeking investors.
There could be more growth to come for the payments company as borders reopen and economies rebound from the pandemic with an increase in air travel and consumer spending. Mastercard is also working with partners to expand its presence and increase its capabilities.
Just two months ago, the company expanded its partnership with UniCredit to 13 banks in 12 markets across Europe for 20 million cards. This collaboration should increase Mastercard's customer base and enhance the customer experience in a win-win situation for both parties.
Floor & Decor
Like Mastercard, Floor & Decor (NYSE: FND) also occupies a small position within Berkshire's portfolio, but the $11.8 billion business has seen steady and consistent growth over the years. The flooring and tile specialist operates 194 warehouse stores and five design studios as of March 31, 2023, offering a wide range of flooring types and installation materials. Sales more than doubled from $1.7 billion to $4.3 billion from 2018 to 2022, with warehouse-store count surging from 100 to 191 in the same period.
Floor & Decor is still in expansion mode and recently opened its 200th store in May in Louisiana. Its fiscal 2023's first-quarter results saw continued revenue growth of 9.1% year over year to $1.1 billion, although higher expenses meant that net income inched up just 0.8% year over year at $71.5 million.
The company is also pursuing growth through acquisitions with the purchase of Salesmaster Flooring Solutions last month. Salesmaster is a flooring and installation supplies distributor that has around 80 employees. It will help to expand Floor & Decor's presence in the New York City and New England markets.
10 stocks we like better than Apple
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Royston Yang has positions in Apple and Mastercard. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Mastercard. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) occupies an outsized position within Berkshire's portfolio, taking up 46% of its total value as of March 31, 2023. This strong brand loyalty generates steady recurring income for the business, enabling it to continue reporting increasing profits and cash flow. The technology behemoth just released its latest new product Vision Pro, a mixed-reality headset that's easy to use and promises to revolutionize the wearable-technology sector.
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Apple Apple (NASDAQ: AAPL) occupies an outsized position within Berkshire's portfolio, taking up 46% of its total value as of March 31, 2023. Together with his partner Charlie Munger, Buffett runs Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), an investment holding company with stakes in both listed stocks and wholly owned businesses. Floor & Decor Like Mastercard, Floor & Decor (NYSE: FND) also occupies a small position within Berkshire's portfolio, but the $11.8 billion business has seen steady and consistent growth over the years.
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Apple Apple (NASDAQ: AAPL) occupies an outsized position within Berkshire's portfolio, taking up 46% of its total value as of March 31, 2023. Free cash flow improved from $73.4 billion to $111.4 billion from the 2020 to 2022 fiscal year for an average of $92.6 billion in free cash flow generated. Revenue rose from $15.3 billion in 2020 to $22.2 billion in 2022, with net income climbing from $6.4 billion to $9.9 billion over the same period.
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Apple Apple (NASDAQ: AAPL) occupies an outsized position within Berkshire's portfolio, taking up 46% of its total value as of March 31, 2023. Going through Berkshire's portfolio is a useful way of looking for solid stocks that you can own for the long run. Free cash flow improved from $6.5 billion to $10.1 billion from 2020 to 2022, allowing Mastercard to increase its quarterly dividend from $0.40 to $0.49.
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14829.0
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2023-07-18 00:00:00 UTC
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Stock Index Futures Muted Ahead of Key U.S. Retail Sales Data, U.S. Bank Earnings on Tap
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AAPL
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https://www.nasdaq.com/articles/stock-index-futures-muted-ahead-of-key-u.s.-retail-sales-data-u.s.-bank-earnings-on-tap
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September S&P 500 futures (ESU23) are down -0.03%, and September Nasdaq 100 E-Mini futures (NQU23) are down -0.10% this morning as market participants braced for the next round of quarterly reports while also awaiting crucial U.S. retail sales data.
In Monday’s trading session, the benchmark S&P 500 rose to a 15-month high, the blue-chip Dow posted a 7-month high, and the tech-heavy Nasdaq 100 notched a 1-1/2 year high. Tesla Inc (TSLA) gained over +3% after the company announced on Saturday that the first Cybertruck was built out of the company’s Gigafactory in Austin, Texas. Also, Apple Inc (AAPL) rose more than +1% after Morgan Stanley raised its price target on the stock to $220 from $190. In addition, Activision Blizzard Inc (ATVI) soared over +3% after a U.S. appeals court denied the Federal Trade Commission’s request to temporarily pause Microsoft’s (MSFT) planned $69 billion acquisition of the company. On the bearish side, Ford Motor Company (F) plunged more than -5% and was among the top percentage losers on the S&P 500 after the automaker cut the price on the electric version of its F-150 truck. Also, AT&T Inc (T) slid over -6% after Citi downgraded the stock to Neutral from Buy.
Data on Monday showed the U.S. NY Empire State Manufacturing index, a gauge of manufacturing activity in New York State on current business conditions, came in at +1.10 in July, stronger than expectations of -4.30.
U.S. Treasury Secretary Janet Yellen expressed confidence on Monday that the U.S. is on a “good path” to reduce inflation without significant harm to the labor market, and she does not anticipate the U.S. economy entering a recession.
Meanwhile, U.S. rate futures have priced in a 97.3% probability of a 25 basis point rate increase and a 2.7% chance of no hike at the next FOMC meeting in July.
On the earnings front, global companies like Bank of America (BAC), Morgan Stanley (MS), Prologis (PLD), Lockheed Martin (LMT), and Charles Schwab (SCHW) are set to report their quarterly figures today. Analysts anticipate aggregate S&P 500 earnings to notch an 8.1% year-over-year decline for the quarter, compared with an expected drop of 5.7% at the start of the month.
Today, all eyes are focused on U.S. Retail Sales data in a couple of hours. Economists, on average, forecast that June Retail Sales will stand at +0.5% m/m, compared to the previous value of +0.3% m/m.
Also, investors will likely focus on U.S. Core Retail Sales data, which came in at +0.1% m/m in May. Economists foresee the new figure to be +0.3% m/m.
U.S. Industrial Production data will be reported today. Economists foresee this figure to stand at 0.0% m/m in June, compared to the previous number of -0.2% m/m.
U.S. Manufacturing Production data will come in today as well. Economists expect June’s figure to be 0.0% m/m, compared to the previous number of +0.1% m/m.
In the bond markets, United States 10-Year rates are at 3.760%, down -0.98%.
The Euro Stoxx 50 futures are up +0.09% this morning as investor focus shifted from economic data and monetary policy to corporate earnings season. Healthcare, media, and materials stocks gained ground on Tuesday, while telecom stocks underperformed. Meanwhile, European Central Bank Governing Council member Ignazio Visco said Tuesday that inflation might subside more quickly due to the impact of declining commodity prices permeating through the economy. Also, ECB Governing Council member Klaas Knot expressed on Tuesday that monetary tightening beyond the upcoming meeting is far from certain. In corporate news, shares of Novartis Ag (NOVN.Z.IX) climbed more than +3% after the drugmaker boosted its full-year profit outlook and announced plans for a share buyback of up to $15 billion. Also, Tele2 Ab (TEL2B.S.DX) plunged about -10% after the company set higher guidance on capital expenditure.
The European economic data slate is mainly empty on Tuesday.
Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.37%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.32%.
China’s Shanghai Composite closed lower today as worries about a slowdown in the country persisted, dampening market sentiment. Also, disappointing economic data prompted economists at several prominent banks to revise their outlooks downward. JPMorgan Chase & Co., Morgan Stanley, and Citigroup Inc. slashed their projections for economic growth this year to 5% after China reported a “weak” second-quarter GDP reading. Shares of Hong Kong-listed property stocks tumbled on Tuesday, with Longfor Properties Co Ltd and Country Garden Services Holdings Co Ltd slumping more than -9%. Technology stocks listed in Hong Kong also plunged, with Tencent Holdings Ltd dropping over -4% and Alibaba Group Holding Ltd falling more than -3%. At the same time, weak economic data increased the likelihood of additional stimulus measures from Beijing. Reports from local media indicated that the People’s Bank of China might consider reducing its key interest rates and bank reserve requirements in the third quarter as part of efforts to boost economic growth.
Japan’s Nikkei 225 Stock Index closed moderately higher today, driven primarily by gains in bank and chip-related stocks. The Nikkei had initially surged up to 1% in the session but later relinquished most of those gains when Hong Kong’s Hang Seng opened sharply lower, dragging down other regional stock indexes. Meanwhile, chip-making equipment giant Tokyo Electron rose about +1%, and chipmaker Renesas Electronics gained over +2%. Investors are preparing for a series of significant events next week, which include monetary policy decisions from the Bank of Japan and the U.S. Federal Reserve and the intensification of the Japanese earnings season. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up 1.29% to 20.49.
The Japanese Tertiary Industry Activity Index stood at +1.2% m/m, stronger than expectations of +0.4% m/m.
Pre-Market U.S. Stock Movers
Masimo Corporation (MASI) tumbled over -26% in pre-market trading after the medtech provider reported weaker-than-expected preliminary Q2 revenue and said it would be cutting costs in the second half of 2023.
Karyopharm Therapeutics Inc (KPTI) soared more than +28% in pre-market trading after the U.S. FDA awarded Fast Track designation for selinexor for the treatment of patients with myelofibrosis.
Pinterest Inc (PINS) climbed over +3% in pre-market trading after Evercore ISI upgraded the stock to Outperform from In Line.
The Trade Desk (TTD) fell more than -1% in pre-market trading after New Street downgraded the stock to Sell from Neutral.
Genpact Limited (G) dropped over -1% in pre-market trading after Citi downgraded the stock to Neutral from Buy.
Acumen Pharmaceuticals Inc (ABOS) plunged over -10% in pre-market trading after the company proposed an underwritten public offering of its common stock to raise $100 million.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - July 18th
Bank of America (BAC), Morgan Stanley (MS), Prologis (PLD), Lockheed Martin (LMT), Charles Schwab (SCHW), PNC Financial (PNC), Interactive Brokers (IBKR), Bank of NY Mellon (BK), Omnicom (OMC), JB Hunt (JBHT), Synchrony Financial (SYF), Pinnacle (PNFP), Western Alliance (WAL), Hancock Whitney (HWC), United Community Banks (UCBI), Fulton (FULT), AAR (AIR), Bank First National (BFC), Mercantile (MBWM), Cambridge Bancorp (CATC), Equity Bancshares Inc (EQBK).
More Stock Market News from Barchart
3 Buy Rated Crypto Firms Ready to Soar!Stocks Close Higher on Lower Bond Yields and Positive Comments from Yellen3 Passive Income Streams For Retirees Who Just Want To RelaxInvestors Beware: APRN Stock is Shockingly Irrelevant
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also, Apple Inc (AAPL) rose more than +1% after Morgan Stanley raised its price target on the stock to $220 from $190. In addition, Activision Blizzard Inc (ATVI) soared over +3% after a U.S. appeals court denied the Federal Trade Commission’s request to temporarily pause Microsoft’s (MSFT) planned $69 billion acquisition of the company. On the earnings front, global companies like Bank of America (BAC), Morgan Stanley (MS), Prologis (PLD), Lockheed Martin (LMT), and Charles Schwab (SCHW) are set to report their quarterly figures today.
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Also, Apple Inc (AAPL) rose more than +1% after Morgan Stanley raised its price target on the stock to $220 from $190. On the earnings front, global companies like Bank of America (BAC), Morgan Stanley (MS), Prologis (PLD), Lockheed Martin (LMT), and Charles Schwab (SCHW) are set to report their quarterly figures today. The Euro Stoxx 50 futures are up +0.09% this morning as investor focus shifted from economic data and monetary policy to corporate earnings season.
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Also, Apple Inc (AAPL) rose more than +1% after Morgan Stanley raised its price target on the stock to $220 from $190. Japan’s Nikkei 225 Stock Index closed moderately higher today, driven primarily by gains in bank and chip-related stocks. You can see more pre-market stock movers here Today’s U.S. Earnings Spotlight: Tuesday - July 18th Bank of America (BAC), Morgan Stanley (MS), Prologis (PLD), Lockheed Martin (LMT), Charles Schwab (SCHW), PNC Financial (PNC), Interactive Brokers (IBKR), Bank of NY Mellon (BK), Omnicom (OMC), JB Hunt (JBHT), Synchrony Financial (SYF), Pinnacle (PNFP), Western Alliance (WAL), Hancock Whitney (HWC), United Community Banks (UCBI), Fulton (FULT), AAR (AIR), Bank First National (BFC), Mercantile (MBWM), Cambridge Bancorp (CATC), Equity Bancshares Inc (EQBK).
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Also, Apple Inc (AAPL) rose more than +1% after Morgan Stanley raised its price target on the stock to $220 from $190. On the earnings front, global companies like Bank of America (BAC), Morgan Stanley (MS), Prologis (PLD), Lockheed Martin (LMT), and Charles Schwab (SCHW) are set to report their quarterly figures today. In the bond markets, United States 10-Year rates are at 3.760%, down -0.98%.
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14830.0
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2023-07-18 00:00:00 UTC
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3 Financial Stocks That Shine on the Bottom Line
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AAPL
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https://www.nasdaq.com/articles/3-financial-stocks-that-shine-on-the-bottom-line
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nan
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It hasn't been the best year for financial stocks, especially those involving banking. In the months since Silicon Valley Bank's collapse, the sector has vastly underperformed the broader market. The S&P 500 is up by more than 17% year to date, while the financial sector is little changed.
Even so, some companies in that sector are still flourishing and bringing in profits.
Data source: YCharts.
1. Visa
Few businesses have a competitive advantage quite as strong as credit card and payment processing giant Visa (NYSE: V). Regarding reach, there's no close second to Visa -- it has more than 100 million merchants in its network. This is such an advantage for Visa because it makes money by taking a small percentage of every transaction on its payment network.
The more merchants in its network, the more transactions it can facilitate. In Visa's fiscal 2023 Q2 (ended March 31), revenue rose by 11% year over year, but its net income growth outpaced that, increasing by 17% to $4.3 billion.
Visa's strong financial performance was a byproduct of inflation and increased payment volumes (up 10%), processed transactions (up 12%), and cross-border transactions (up 24%).
Much of the investment it took to build Visa's vast merchant network occurred years ago. So now, the company is in a position to benefit from it without incurring too many additional costs. It's not like it relies on physical products that require set costs per item sold.
For perspective: Visa's 53% profit margin is comfortably above those of competitors American Express (26%) and Discover Financial Services (12.8%).
Data source: YCharts.
2. Bank of America
Bank of America (NYSE: BAC) is the country's second-largest bank by assets, trailing only JPMorgan Chase. This hasn't been the best year for its stock, though -- it's down 11% year to date. Yet Bank of America's bottom line is going strong.
In the first quarter, revenue increased 13% year over year to $26.3 billion, but maybe more importantly, net income rose 15% to $8.2 billion.
Bank of America has benefited greatly from the Federal Reserve's rapid and steep increases to benchmark interest rates over the past year and a half. When the federal funds rate rises, it allows Bank of America to raise the interest rates it charges on mortgages, auto loans, personal loans, and credit card balances. Its $14.4 billion in net interest income in Q1 2023 was $2.9 billion more than in Q1 2022.
In the wake of the regional banking panic earlier this year, consumers have fled smaller institutions and moved their money to "too big to fail" banks like Bank of America. Its overall customer balances are down year over year as consumers spent down some of their savings, but it added 130,000 new consumer checking accounts in Q1, bringing its total to 36.1 million -- a company record.
The scale that earned it a too-big-to-fail designation is the key to Bank of America's long-term stability. That in itself doesn't make the bank a good investment, but it is a key selling point.
Add in Bank of America's dividend, which at current share prices yields roughly 3% (about double the average yield of the S&P 500 now), and it's clear why this is a stock that investors can feel comfortable holding long term.
3. Berkshire Hathaway
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is a conglomerate with around 60 subsidiaries across many industries. It also owns one of the world's most followed and analyzed stock portfolios, with large stakes in companies such as Apple, Bank of America, Coca-Cola, and dozens more.
Berkshire Hathaway's stock price has fairly consistently outpaced the broader market, and made a lot of investors richer along the way. Its Q1 revenue was up by more than 20% year over year, but that pales in comparison to its 536% net income growth. This was driven mostly by higher investment income.
Operating earnings -- profits from its wholly owned businesses such as Geico (and a metric the company's legendary Chief Executive Officer Warren Buffett prefers to focus on) -- exceeded $8 billion, which beat analysts' expectations.
Berkshire Hathaway is positioned to remain a great long-term investment long after the now 92-year-old Buffett is no longer leading the company. Its portfolio is one of the biggest beneficiaries of compound growth, and dividend income is sure to pad its bottom line for quite some time. The conglomerate is projected to receive over $6 billion in dividend income in 2023 alone.
The company spent around $4.4 billion buying back its own shares in Q1, which should signal to investors that Buffett and his team believe that the shares are priced at a good value and their long-term potential remains strong.
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Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, and Visa. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bank of America has benefited greatly from the Federal Reserve's rapid and steep increases to benchmark interest rates over the past year and a half. Berkshire Hathaway's stock price has fairly consistently outpaced the broader market, and made a lot of investors richer along the way. Operating earnings -- profits from its wholly owned businesses such as Geico (and a metric the company's legendary Chief Executive Officer Warren Buffett prefers to focus on) -- exceeded $8 billion, which beat analysts' expectations.
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In Visa's fiscal 2023 Q2 (ended March 31), revenue rose by 11% year over year, but its net income growth outpaced that, increasing by 17% to $4.3 billion. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, and Visa.
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Bank of America Bank of America (NYSE: BAC) is the country's second-largest bank by assets, trailing only JPMorgan Chase. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, and Visa.
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This hasn't been the best year for its stock, though -- it's down 11% year to date. Its $14.4 billion in net interest income in Q1 2023 was $2.9 billion more than in Q1 2022. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, and Visa.
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14831.0
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2023-07-18 00:00:00 UTC
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PREVIEW-TSMC Q2 earnings seen down 27% y/y, Q3 looks better
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AAPL
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https://www.nasdaq.com/articles/preview-tsmc-q2-earnings-seen-down-27-y-y-q3-looks-better
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nan
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nan
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By Faith Hung and Ben Blanchard
TAIPEI, July 18 (Reuters) - Taiwanese chipmaker TSMC is expected to report a 27% fall in second-quarter net profit on Thursday, as global economic woes dent demand for semiconductors, though analysts say business performance is likely to improve in the current quarter.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, the world's largest contract chipmaker and a major Apple AAPL.O and Nvidia NVDA.O supplier, is likely to report net profit for the April-June period of T$172.53 billion ($5.58 billion), down from T$237.0 billion a year earlier, according to the average of 21 analysts polled by Reuters.
The forecast decline in profit partly reflects a robust performance in the previous year, when the company was still riding high on pent-up post-pandemic demand.
Analysts at Taiwan's Fubon Investment said they expected the second quarter to be the bottom of the current downcycle but that while the situation should improve in the third quarter, it would be weaker than normal given continued inventory build ups that are still being worked through.
One senior Taiwan fund manger told Reuters that third quarter profit would bounce back given expectations for AI demand and launches of new iPhones ahead of the year-end holiday shopping season.
"Taiwan has not really benefited from electric vehicles, since the market is in China and most EV suppliers are in China. But artificial intelligence (AI) is a different story," he said, requesting anonymity citing company policy. "Taiwan will benefit most from AI because the entire AI supply chain can be found here."
The second quarter is traditionally a slow period for sales for the tech industry with demand usually picking up in the third quarter and towards the year-end shopping season.
TSMC TSM.N, Asia's most valuable listed company, posted a surprise rise in net profit for the quarter ended March, up 2% from a year earlier. But that was still the smallest quarterly growth since mid-2019 as global economic woes hurt demand for chips.
Last month, the company said quickly rising demand for AI applications was driving a lot of orders and that it expected a better performance in the second half than the first.
The bright outlook for AI applications has in part driven up TSMC's Taipei-listed stock by almost 30% so far this year, outperforming the broader market .TWII, which is up around 22%.
The company will provide guidance for the third quarter and update previous forecasts on itsearnings callat 0600 GMT on Thursday.
TSMC's second quarter revenue came in at T$480.8 billion($15.53 billion), according to Reuters calculations, in the middle of an April forecast range of $15.2 billion to $16 billion, compared to $18.16 billion for the year-ago period.
($1 = 30.9600 Taiwan dollars)
(Reporting by Faith Hung and Ben Blanchard Editing by Shri Navaratnam)
((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) 2330.TW, the world's largest contract chipmaker and a major Apple AAPL.O and Nvidia NVDA.O supplier, is likely to report net profit for the April-June period of T$172.53 billion ($5.58 billion), down from T$237.0 billion a year earlier, according to the average of 21 analysts polled by Reuters. By Faith Hung and Ben Blanchard TAIPEI, July 18 (Reuters) - Taiwanese chipmaker TSMC is expected to report a 27% fall in second-quarter net profit on Thursday, as global economic woes dent demand for semiconductors, though analysts say business performance is likely to improve in the current quarter. One senior Taiwan fund manger told Reuters that third quarter profit would bounce back given expectations for AI demand and launches of new iPhones ahead of the year-end holiday shopping season.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, the world's largest contract chipmaker and a major Apple AAPL.O and Nvidia NVDA.O supplier, is likely to report net profit for the April-June period of T$172.53 billion ($5.58 billion), down from T$237.0 billion a year earlier, according to the average of 21 analysts polled by Reuters. By Faith Hung and Ben Blanchard TAIPEI, July 18 (Reuters) - Taiwanese chipmaker TSMC is expected to report a 27% fall in second-quarter net profit on Thursday, as global economic woes dent demand for semiconductors, though analysts say business performance is likely to improve in the current quarter. The forecast decline in profit partly reflects a robust performance in the previous year, when the company was still riding high on pent-up post-pandemic demand.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, the world's largest contract chipmaker and a major Apple AAPL.O and Nvidia NVDA.O supplier, is likely to report net profit for the April-June period of T$172.53 billion ($5.58 billion), down from T$237.0 billion a year earlier, according to the average of 21 analysts polled by Reuters. By Faith Hung and Ben Blanchard TAIPEI, July 18 (Reuters) - Taiwanese chipmaker TSMC is expected to report a 27% fall in second-quarter net profit on Thursday, as global economic woes dent demand for semiconductors, though analysts say business performance is likely to improve in the current quarter. TSMC's second quarter revenue came in at T$480.8 billion($15.53 billion), according to Reuters calculations, in the middle of an April forecast range of $15.2 billion to $16 billion, compared to $18.16 billion for the year-ago period.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, the world's largest contract chipmaker and a major Apple AAPL.O and Nvidia NVDA.O supplier, is likely to report net profit for the April-June period of T$172.53 billion ($5.58 billion), down from T$237.0 billion a year earlier, according to the average of 21 analysts polled by Reuters. By Faith Hung and Ben Blanchard TAIPEI, July 18 (Reuters) - Taiwanese chipmaker TSMC is expected to report a 27% fall in second-quarter net profit on Thursday, as global economic woes dent demand for semiconductors, though analysts say business performance is likely to improve in the current quarter. The forecast decline in profit partly reflects a robust performance in the previous year, when the company was still riding high on pent-up post-pandemic demand.
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14832.0
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2023-07-18 00:00:00 UTC
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7 Brilliant Blue-Chip Stocks to Buy for Explosive Profits
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AAPL
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https://www.nasdaq.com/articles/7-brilliant-blue-chip-stocks-to-buy-for-explosive-profits
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Blue-chip stocks offer investors equity in established, financially sound firms with strong reputations. They’re generally market leaders and tend to be household names familiar to those outside the investing world. In short, they’re likely to provide returns to investors in almost every case.
Blue-chip stocks often include dividends and are known for reliable earnings. That suggests moderate growth for the most part and not explosive profits. However, 2023 has shown that even the largest publicly traded firms can see their stock price increase rapidly. These companies offer that same potential and could certainly experience explosive growth. The base case is steady, reliable profitability and dividend income.
Apple (AAPL)
Source: askarim / Shutterstock
Apple (NASDAQ:AAPL) stock has firmly established itself as among the most reliable tech investments. It was the go-to big tech investment for capital preservation during the 2022 downturn. Investor belief in the firm remained strong as growth stocks suffered last year. The ubiquity of the iPhone arguably made that so.
In any case, Apple represents safety and is the largest firm in the world by market capitalization. Investors know that it’s a safe place to place tech money during a downturn and expect that it will rebound well in those instances.
That notion is precisely why KeyBanc analysts believe Apple share prices won’t slow down even as consumers weaken. Apple’s elevated multiple is justified, in their opinion, due to safety and excitement around the Apple Vision Pro VR headset. At $3,499, it could spike revenues when it’s released in early 2024. Apple isn’t stopping at a $3 trillion market cap. Many pundits expect Apple to reach $5 trillion before 2030, which should result in ever higher share prices.
MercadoLibre (MELI)
Source: Shutterstock
MercadoLibre (NASDAQ:MELI) stock remains muted despite massive growth. The fact that MercadoLibre shares continue to trade for $1,150 is a great opportunity because there is clear explosive growth potential. Perhaps nothing indicates that truth more than that MELI stock’s consensus target price is $1,563.
There’s a strong case to be made that it’s simply a matter of time before prices shoot upward. The Latin American eCommerce firm dominates its geography. It is the equivalent of Amazon for customers in Latin America and continues to grow rapidly. This makes it one of those top blue-chip stocks.
Revenues increased by 58% during the most recent quarter, reaching $3.0 billion. Simply put, a few firms with the company’s reach and size are growing at similar rates. Additionally, MercadoLibre is profitable, with a net income that more than tripled year-over-year in Q1, reaching $201 million. The company dominates eCommerce from Mexico to Argentina and its incredible growth sets the stage for explosive profits moving forward.
AMD (AMD)
Source: Pamela Marciano / Shutterstock.com
AMD’s (NASDAQ:AMD) AI chips could disrupt those from its biggest rival. That hasn’t been the case thus far. Instead, Nvidia (NASDAQ:NVDA) has amassed a giant lead, but AMD is perceived to be the strongest challenger to Nvidia’s AI chip throne.
AMD’s AI chips are currently estimated to be 80% as fast as those from Nvidia. Intel (NASDAQ:INTC) is also considered to be in the running but has slipped significantly of late overall. That implies that Intel has probably fallen back farther behind AMD.
MosaicML’s assessment of AMD’s AI chips is most important for AMD. Research from the company pegs AMD’s chips at 80% as fast as Nvidia’s. CEO Hanlin Tang notes that AMD has done exceptionally well on the software side, which has proven to be an Achille’s heel for companies.
MosiacML expects AMD to continue closing the gap that exists between it and Nvidia. As that happens, AMD shares will continue to have explosive upside potential.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) stocks’ potential for explosive profits lies in an ugly truth underpinning the American consumer. Americans’ credit card debt has eclipsed the $1 trillion mark. The average interest rates on a new card are 24%. Put those factors together, and it’s easy to see why Visa has a lot of potential at the moment.
I think it’s the most important factor for Visa and other credit card companies right now. Visa’s earnings report touted resurgent travel and cross-border payment volumes for a strong first quarter. While those factors certainly matter, I believe Visa’s bigger opportunity will be born out of the current era. High-interest rates will equate to strong future cash flows for the firm as Americans overextend themselves en masse. There’s a price to be paid, and Visa investors stand to benefit from it.
Additionally, Visa offers income through its dividend with a modest yield of 0.74%. It’s part of those top blue-chip stocks you should have your eye on.
Wingstop (WING)
Source: Shutterstock
Wingstop (NASDAQ:WING) has emerged as a great growth story as America’s recent chicken obsession continues. The stock is definitely one to watch due to its continuing growth potential.
The company has a long track record of same-store sales growth for the last 19 years. Same-store sales growth increased by 20.1% during the first quarter, meaning there’s plenty of growth left. The company recently opened its 2,000th restaurant globally and is on a mission to open 7,000 restaurants.
There continues to be room for global expansion for Wingstop. It finished the first quarter with 243 international restaurants and 1,996 restaurants overall. System-wide sales, which tallies all sales for company-owned and franchised restaurants, increased by 30.4% during the quarter reaching $821.6 million. Revenues increased by 42.7% to $108.7 million(1). Wingstop reminds me of Chipotle (NYSE:CMG) in that people underestimate how valuable their shares can be.
Walmart (WMT)
Source: Ford
Walmart (NYSE:WMT) probably isn’t a blue-chip stock that can explode particularly quickly. It carries a beta of 0.50, implying that it will continue to move more slowly than the stock market. Nevertheless, it does have explosive upside potential because the world’s largest retailer is chipping away at its nearest competitor’s strength.
Amazon (NASDAQ:AMZN) is the second-largest global retailer and the largest eCommerce firm, with $513 billion in 2022 revenues. Walmart reported roughly $60 billion more in 2022 sales.
Here’s the point: Walmart is steadily chipping away at Amazon’s eCommerce dominance with eCommerce revenues that increased by 26% in the first quarter. Walmart may never become bigger than Amazon in eCommerce, but the company has a knack for using its power to carve out significant positions in markets it enters. The firm opened its first full grocery store in 1988 and was the largest grocer within a few decades.
Realty Income (O)
Source: Shutterstock
Realty Income (NYSE:O) operates a leasing business focused on convenience store retail properties that provide a reliable income for investors. It is a REIT stock meaning it is legally obligated to return 90% of its income to investors.
I’d argue that most of Realty Income’s upside lies therein. It provides a strong dividend income yielding more than 5%. That said, O stock does have roughly 15% upside based on analysts’ average target price. The firm leases commercial space. That’s a potential red flag as many have grown concerned about the commercial real estate sector. However, the company leases to large, stable firms like Walgreens and 7-Eleven, not riskier areas like office space. This is why it’s one of those top blue-chip stocks.
What I particularly like about Realty Income is that the firm has grown faster than the market overall over the past decade. That doesn’t factor in the dividend meaning actual returns are much higher. Realty Income is explosively profitable over the long term and shouldn’t be overlooked.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post 7 Brilliant Blue-Chip Stocks to Buy for Explosive Profits 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 firmly established itself as among the most reliable tech investments. The company dominates eCommerce from Mexico to Argentina and its incredible growth sets the stage for explosive profits moving forward. High-interest rates will equate to strong future cash flows for the firm as Americans overextend themselves en masse.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has firmly established itself as among the most reliable tech investments. MercadoLibre (MELI) Source: Shutterstock MercadoLibre (NASDAQ:MELI) stock remains muted despite massive growth. Realty Income (O) Source: Shutterstock Realty Income (NYSE:O) operates a leasing business focused on convenience store retail properties that provide a reliable income for investors.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has firmly established itself as among the most reliable tech investments. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Blue-chip stocks offer investors equity in established, financially sound firms with strong reputations. Visa (V) Source: Kikinunchi / Shutterstock.com Visa (NYSE:V) stocks’ potential for explosive profits lies in an ugly truth underpinning the American consumer.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has firmly established itself as among the most reliable tech investments. In any case, Apple represents safety and is the largest firm in the world by market capitalization. Revenues increased by 58% during the most recent quarter, reaching $3.0 billion.
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14833.0
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2023-07-18 00:00:00 UTC
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A Bull Market Is Coming: 1 Incredible Growth Stock Down 34% to Buy Now and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-1-incredible-growth-stock-down-34-to-buy-now-and-hold-forever
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nan
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nan
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Depending on how you slice it, stocks may have already entered a new bull market. The S&P 500 has rallied more than 16.5% year to date, while the Nasdaq Composite index has soared more than 23%. But while index-shaping titans, including Nvidia, Microsoft, and Apple, have recently rocketed to record highs, there are still some great growth stocks that trade at big discounts.
If you're on the hunt for investment opportunities that could deliver impressive rallies in this market, read on to see why building a position in this top company could have a huge payoff.
This hot growth stock has room to run
With the company's share price up roughly 68% in 2023, Airbnb (NASDAQ: ABNB) has already seen some strong gains across this year's trading. On the other hand, the stock remains down roughly 34% from its high despite the company generally recording strong business performance.
Airbnb grew its free cash flow 49% annually last year to reach $3.4 billion and swung into GAAP profitability with a net income of $1.9 billion. Revenue for the year rose 40% to reach $8.4 billion. On a currency-adjusted basis, annual sales growth was even more impressive -- coming in at 46%.
While the business is seeing some growth deceleration this year due to a challenging basis of comparison and some macroeconomic pressures, it has continued to post encouraging sales momentum and margins. Revenue rose 20% year over year in the first quarter to reach approximately $1.8 billion, or 24% on a currency-adjusted basis, and the company recorded its first-ever period of Q1 profitability with net income of $117 million. Additionally, the rental specialist recorded its best-ever free cash flow (FCF) of $1.6 billion in the period.
Airbnb has continued to show it can grow profitably at scale, and the company still has a long runway for expansion.
A business with proven flexibility
Airbnb deftly navigated challenges posed by the pandemic and has returned to posting strong growth and record sales and earnings. An asset-light model gives the company flexibility to adjust spending on sales and marketing and other categories, and it's helping the business address current macroeconomic headwinds and uncertainty.
While Airbnb anticipates that average daily rates will see some pressure this year, it expects that cost-cutting and other efficiency initiatives will be enough to offset lower rates and sustain margins. It's even possible that macroeconomic challenges will accelerate the progression of some trends that will benefit the company over the long term.
For example, economic pressures could cause more people to host properties as rental stays to generate supplemental income. Check out this quote from the company's fourth-quarterearnings calloutlining growth catalysts for host listings on its platform:
Hosts are attracted to the supplemental income that they can earn on Airbnb, which is often critical during tough times. Second, our product improvements are working. Over the past two years, we've made it more attractive and easier to become a host.
Airbnb is foregrounding supply growth as a major component of its long-term expansion strategy, and things are proceeding at an encouraging pace. The company saw supply growth accelerate in the first quarter, with the number of total host listings on its platform increasing 18% year over year -- up from 16% growth in Q4.
With the rental specialist rolling out its new low-cost Airbnb Rooms offering in the second quarter, supply should continue to expand along an even wider range of price points. This should help continue to attract new travelers to the platform and provide new opportunities for hosts. In general, the company has continued to do a good job rolling out new features and offerings for guests and hosts, and its platform looks poised to benefit from the long-term growth of the travel and property rental markets.
Airbnb is still attractively priced
With a market capitalization of roughly $90 billion, Airbnb is trading at roughly 36.5 times this year's expected earnings.
ABNB Market Cap data by YCharts.
Alternatively, the company is valued at roughly 24 times the $3.8 billion in free cash flow that it generated over the trailing-12-month (TTM) period. With the rental specialist growing FCF 33% year over year in Q1 and its net income margin swinging to 6% from -1% in the prior-year period, there's enough positive momentum here to support the company's growth-dependent valuation.
A TTM FCF margin of 44% shows that Airbnb's business has become a cash-generating machine, and the company looks well-positioned to continue growing revenue at a rate that translates into strong returns for long-term shareholders.
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Keith Noonan has positions in Airbnb. The Motley Fool has positions in and recommends Airbnb, 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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But while index-shaping titans, including Nvidia, Microsoft, and Apple, have recently rocketed to record highs, there are still some great growth stocks that trade at big discounts. In general, the company has continued to do a good job rolling out new features and offerings for guests and hosts, and its platform looks poised to benefit from the long-term growth of the travel and property rental markets. A TTM FCF margin of 44% shows that Airbnb's business has become a cash-generating machine, and the company looks well-positioned to continue growing revenue at a rate that translates into strong returns for long-term shareholders.
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Revenue rose 20% year over year in the first quarter to reach approximately $1.8 billion, or 24% on a currency-adjusted basis, and the company recorded its first-ever period of Q1 profitability with net income of $117 million. Airbnb is still attractively priced With a market capitalization of roughly $90 billion, Airbnb is trading at roughly 36.5 times this year's expected earnings. With the rental specialist growing FCF 33% year over year in Q1 and its net income margin swinging to 6% from -1% in the prior-year period, there's enough positive momentum here to support the company's growth-dependent valuation.
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This hot growth stock has room to run With the company's share price up roughly 68% in 2023, Airbnb (NASDAQ: ABNB) has already seen some strong gains across this year's trading. The company saw supply growth accelerate in the first quarter, with the number of total host listings on its platform increasing 18% year over year -- up from 16% growth in Q4. Airbnb is still attractively priced With a market capitalization of roughly $90 billion, Airbnb is trading at roughly 36.5 times this year's expected earnings.
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This hot growth stock has room to run With the company's share price up roughly 68% in 2023, Airbnb (NASDAQ: ABNB) has already seen some strong gains across this year's trading. While the business is seeing some growth deceleration this year due to a challenging basis of comparison and some macroeconomic pressures, it has continued to post encouraging sales momentum and margins. The company saw supply growth accelerate in the first quarter, with the number of total host listings on its platform increasing 18% year over year -- up from 16% growth in Q4.
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14834.0
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2023-07-18 00:00:00 UTC
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If You Invested $10,000 in BlackBerry in 2008, This Is How Much You Would Have Today
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AAPL
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https://www.nasdaq.com/articles/if-you-invested-%2410000-in-blackberry-in-2008-this-is-how-much-you-would-have-today
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nan
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nan
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BlackBerry's (NYSE: BB) stock closed at its all-time high of $147.55 on June 19, 2008. Back then, the Canadian tech company was still known as Research in Motion, and its BlackBerry handsets controlled about 40% of the U.S. smartphone market and 20% of the global smartphone market.
But 15 years later, BlackBerry no longer produces smartphones. It lost that market to Apple (NASDAQ: AAPL) and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, which rendered its keyboard devices obsolete with a new generation of touchscreen phones. Instead, it's now a company that generates most of its revenue from cybersecurity software, Internet of Things (IoT) software, and patent licensing fees.
Image source: Getty Images.
That bold shift, which was led by Chief Executive Officer John Chen over the past 10 years, brought BlackBerry back from the brink. However, BlackBerry has a share price of about $5 today, so a $10,000 investment at its record high 15 years ago would have withered to about $340. Let's see why BlackBerry's stock crashed -- and whether it will ever rise back to triple-digit levels again.
How BlackBerry lost the mobile market
BlackBerry lost the mobile market to Apple and Google for three simple reasons. First, it initially underestimated the appeal of touchscreen-based smartphones and stubbornly insisted that its enterprise users would stick with its keyboard-based devices. It also believed the fortified security of its BlackBerry devices would prevent its enterprise customers from switching over to iOS and Android devices.
However, the growing popularity of iOS and Android devices among mainstream consumers drove more companies to introduce bring-your-own device (BYOD) policies to allow the usage of personal devices for work. Apple, Google, and most Android device makers also upgraded their security standards to enterprise levels, which undermined the notion that only BlackBerry devices were secure enough for businesses and government organizations.
Second, BlackBerry's App World didn't host nearly as many apps as Apple's App Store and Google Play. Back in 2010, BlackBerry only offered about 2,500 apps, compared to 250,000 apps on the App Store and 100,000 apps on Google Play. Therefore, developers were less likely to develop new BlackBerry apps for that tiny market, which caused fewer people to buy BlackBerry devices because they lacked the latest apps.
Instead of quickly pivoting to Android to close that "app gap," BlackBerry stuck with its own operating system for its first group of touchscreen phones, which included the Storm (2008), Torch (2010), and Porsche Design P'9982 (2013). Those phones, along with its short-lived PlayBook tablet, all failed to gain a foothold in the mobile market.
Finally, BlackBerry launched its first Android phone, the Priv, in 2015 -- long after Samsung had emerged as the leader of the premium market. BlackBerry attempted to differentiate the Priv from other Android devices with more robust security features and a physical keyboard, but it simply couldn't justify its price of $700, which was roughly the same as the price of Apple's iPhone 6S, Google's Nexus 6P, and Samsung's Galaxy Note 5 that year.
The Priv's failure prompted BlackBerry to finally stop producing its own phones. It subsequently outsourced its brand and designs to TCL, a Chinese maker of cheaper Android devices, but that 11th-hour deal couldn't salvage BlackBerry's share of the smartphone market, which had fallen to about zero at the end of 2016.
What's next for the new BlackBerry?
As its smartphone business died, BlackBerry expanded its cybersecurity business with several acquisitions (most notably Cylance in 2019) while nurturing the growth of QNX -- the most popular embedded OS for connected cars and trucks -- to expand its IoT segment. It also sold a large portion of its patents to generate cash earlier this year.
This new BlackBerry is a lot leaner than the old one, and it expects its total revenue to increase at a compound annual growth rate (CAGR) of 12%-15% from fiscal 2023 to fiscal 2026. It believes that its cybersecurity business will clock a CAGR of 9%-12% as its IoT segment expands at a CAGR of 18%-22%.
Those growth rates seem stable, but BlackBerry will likely rely heavily on the expansion of the automotive market to boost its IoT revenue and offset the slower growth of its cybersecurity business, which faces intense competition from higher-growth endpoint security platforms like CrowdStrike and SentinelOne.
That said, BlackBerry should have a brighter future as a software company than as a hardware maker. However, I doubt its stock will return to the triple digits -- which would require more than a 20-fold gain from current levels -- anytime soon.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet, Apple, and CrowdStrike. The Motley Fool has positions in and recommends Alphabet, Apple, and CrowdStrike. The Motley Fool recommends BlackBerry. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It lost that market to Apple (NASDAQ: AAPL) and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, which rendered its keyboard devices obsolete with a new generation of touchscreen phones. That bold shift, which was led by Chief Executive Officer John Chen over the past 10 years, brought BlackBerry back from the brink. Instead of quickly pivoting to Android to close that "app gap," BlackBerry stuck with its own operating system for its first group of touchscreen phones, which included the Storm (2008), Torch (2010), and Porsche Design P'9982 (2013).
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It lost that market to Apple (NASDAQ: AAPL) and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, which rendered its keyboard devices obsolete with a new generation of touchscreen phones. How BlackBerry lost the mobile market BlackBerry lost the mobile market to Apple and Google for three simple reasons. Second, BlackBerry's App World didn't host nearly as many apps as Apple's App Store and Google Play.
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It lost that market to Apple (NASDAQ: AAPL) and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, which rendered its keyboard devices obsolete with a new generation of touchscreen phones. How BlackBerry lost the mobile market BlackBerry lost the mobile market to Apple and Google for three simple reasons. Apple, Google, and most Android device makers also upgraded their security standards to enterprise levels, which undermined the notion that only BlackBerry devices were secure enough for businesses and government organizations.
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It lost that market to Apple (NASDAQ: AAPL) and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, which rendered its keyboard devices obsolete with a new generation of touchscreen phones. Instead, it's now a company that generates most of its revenue from cybersecurity software, Internet of Things (IoT) software, and patent licensing fees. BlackBerry attempted to differentiate the Priv from other Android devices with more robust security features and a physical keyboard, but it simply couldn't justify its price of $700, which was roughly the same as the price of Apple's iPhone 6S, Google's Nexus 6P, and Samsung's Galaxy Note 5 that year.
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14835.0
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2023-07-18 00:00:00 UTC
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Apple vs. Microsoft: Which Is the Better Dividend Stock?
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AAPL
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https://www.nasdaq.com/articles/apple-vs.-microsoft%3A-which-is-the-better-dividend-stock
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nan
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nan
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When investing in dividend stocks, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two prominent names that often come up for consideration. Both companies have a long history of generating significant returns for their shareholders. Even more, each company has been able to pay a steadily growing dividend to investors over the last decade while also delivering market-beating returns in their share prices. But which tech giant's shares are the more attractive bet for investors looking for a reliable stream of growing income?
To decide whether Apple or Microsoft is a better dividend stock, let's compare the two companies on three key factors dividend investors should consider when buying a stock for its income stream: dividend history, payout ratio, and valuation.
Dividend history
Though both Apple and Microsoft boast impressive dividend history, Microsoft has Apple beat on this front. The company has paid a dividend every year since 2003 and has rewarded investors with annual increases to its dividend for 11 consecutive years. Apple has similarly delivered 11 years of consecutive increases, but its current streak of dividend payments only started in 2012.
Microsoft is also notably growing its dividend at a faster rate than Apple. The company's most recent increase was 10% per share. This put the quarterly dividend at $0.68, or $2.72 annually. As of this writing, this dividend payout gives Microsoft a dividend yield of about 0.8%. Apple's last dividend increase came in at 4.3%. The current payout puts Apple's dividend yield at 0.5%.
Payout ratio
The battle between Microsoft and Apple as dividend stocks heats up when you consider the two companies' payout ratios, or the percentage of their earnings they are currently paying out in dividends.
Apple's payout ratio is extremely low, at just 16%. This suggests the company has huge room to continue growing its dividend over time -- even if earnings fail to grow or even contract. Microsoft's payout ratio is still low, albeit not as low as Apple's. The software specialist's payout ratio is 28%, leaving plenty of breathing room for the quarterly cash payout.
Valuation
Coming in with the tiebreaker is Apple's more conservative valuation. The stock trades at 33 times earnings, while Microsoft trades at about 38 times earnings. While analysts do notably expect more rapid earnings growth from Microsoft over the next five years than Apple, Microsoft's valuation is high enough that it seems to be pricing in all of the company's expected long-term growth. On the other hand, Apple's more conservative valuation leaves a little more room for the tech company to potentially surprise to the upside regarding earnings growth over the next five to 10 years.
With all this said, Microsoft may be the better bet for investors prioritizing dividend yield today. Of course, both companies have quite low dividend yields. So, if a substantial dividend yield is a priority, investors may want to consider different ideas altogether. But for the patient investor who does need a large stream of cash today but still wants to own a solid long-term dividend stock, Apple is a decent idea.
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*Stock Advisor returns as of July 17, 2023
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple 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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When investing in dividend stocks, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two prominent names that often come up for consideration. Even more, each company has been able to pay a steadily growing dividend to investors over the last decade while also delivering market-beating returns in their share prices. On the other hand, Apple's more conservative valuation leaves a little more room for the tech company to potentially surprise to the upside regarding earnings growth over the next five to 10 years.
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When investing in dividend stocks, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two prominent names that often come up for consideration. To decide whether Apple or Microsoft is a better dividend stock, let's compare the two companies on three key factors dividend investors should consider when buying a stock for its income stream: dividend history, payout ratio, and valuation. The current payout puts Apple's dividend yield at 0.5%.
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When investing in dividend stocks, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two prominent names that often come up for consideration. To decide whether Apple or Microsoft is a better dividend stock, let's compare the two companies on three key factors dividend investors should consider when buying a stock for its income stream: dividend history, payout ratio, and valuation. Dividend history Though both Apple and Microsoft boast impressive dividend history, Microsoft has Apple beat on this front.
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When investing in dividend stocks, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two prominent names that often come up for consideration. Even more, each company has been able to pay a steadily growing dividend to investors over the last decade while also delivering market-beating returns in their share prices. To decide whether Apple or Microsoft is a better dividend stock, let's compare the two companies on three key factors dividend investors should consider when buying a stock for its income stream: dividend history, payout ratio, and valuation.
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14836.0
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2023-07-18 00:00:00 UTC
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Spain antitrust watchdog fines Amazon, Apple $218 million
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AAPL
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https://www.nasdaq.com/articles/spain-antitrust-watchdog-fines-amazon-apple-%24218-million
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nan
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nan
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MADRID, July 18 (Reuters) - Spain's antitrust watchdog CNMC on Tuesday said it had imposed fines worth 194 million euros ($218.2 million) in total on Amazon and Apple for colluding to limit the free sale of devices from Apple and competitors on Amazon's Spanish websites.
($1 = 0.8891 euros) (Reporting by Inti Landauro; Editing by David Latona) ((Inti.Landauro@thomsonreuters.com;)) Keywords: SPAIN ANTITRUST/AMAZON APPLE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MADRID, July 18 (Reuters) - Spain's antitrust watchdog CNMC on Tuesday said it had imposed fines worth 194 million euros ($218.2 million) in total on Amazon and Apple for colluding to limit the free sale of devices from Apple and competitors on Amazon's Spanish websites. ($1 = 0.8891 euros) (Reporting by Inti Landauro; Editing by David Latona) ((Inti.Landauro@thomsonreuters.com;)) Keywords: SPAIN ANTITRUST/AMAZON APPLE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MADRID, July 18 (Reuters) - Spain's antitrust watchdog CNMC on Tuesday said it had imposed fines worth 194 million euros ($218.2 million) in total on Amazon and Apple for colluding to limit the free sale of devices from Apple and competitors on Amazon's Spanish websites. ($1 = 0.8891 euros) (Reporting by Inti Landauro; Editing by David Latona) ((Inti.Landauro@thomsonreuters.com;)) Keywords: SPAIN ANTITRUST/AMAZON APPLE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MADRID, July 18 (Reuters) - Spain's antitrust watchdog CNMC on Tuesday said it had imposed fines worth 194 million euros ($218.2 million) in total on Amazon and Apple for colluding to limit the free sale of devices from Apple and competitors on Amazon's Spanish websites. ($1 = 0.8891 euros) (Reporting by Inti Landauro; Editing by David Latona) ((Inti.Landauro@thomsonreuters.com;)) Keywords: SPAIN ANTITRUST/AMAZON APPLE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MADRID, July 18 (Reuters) - Spain's antitrust watchdog CNMC on Tuesday said it had imposed fines worth 194 million euros ($218.2 million) in total on Amazon and Apple for colluding to limit the free sale of devices from Apple and competitors on Amazon's Spanish websites. ($1 = 0.8891 euros) (Reporting by Inti Landauro; Editing by David Latona) ((Inti.Landauro@thomsonreuters.com;)) Keywords: SPAIN ANTITRUST/AMAZON APPLE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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14837.0
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2023-07-18 00:00:00 UTC
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GLOBAL MARKETS-Global shares rise, US shares mixed as Fed seen on target for rate hike
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AAPL
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https://www.nasdaq.com/articles/global-markets-global-shares-rise-us-shares-mixed-as-fed-seen-on-target-for-rate-hike
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nan
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nan
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By Herbert Lash
NEW YORK, July 18 (Reuters) - Global stock markets rose while shares on Wall Street were mixed on Tuesday after U.S. retail sales rose less than expected in June, but consumers boosted or maintained spending elsewhere, raising the odds the Federal Reserve hikes interest rates next week.
Retail sales increased 0.2% last month, the U.S. Commerce Department said, but, excluding automobiles, gasoline, building materials and food services, core retail sales increased 0.6% in June. Headline data for May also was revised higher to show sales gaining 0.5% instead of 0.3% as previously reported.
The dollar slid to a 15-month low against a basket of currencies, and Treasury yields also fell even as futures pointed to a 97.3% probability that the Fed will hike rates by 25 basis points on July 26, according to CME Group's FedWatch Tool.
The dollar index =USD fell 0.12% and the euro EUR= rose 0.08% to $1.1243, after hitting a fresh 17-month high of $1.1276
The major U.S. stock indices were mixed, with the S&P 500 and Dow Industrials rising and the Nasdaq falling, in a sign investors are shifting investments away from the tech-oriented megacap stocks that have dominated returns this year.
Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O led the Nasdaq lower.
"The Magnificent Seven that outperformed the first five months of the year will probably consolidate a little bit and underperform," said Thomas Hayes, chairman and managing member of Great Hill Capital LLC in New York.
The Dow and the S&P 500, meanwhile, crept higher after some of the top U.S. lenders, including Morgan Stanley and Bank of America, reported upbeat earnings for the second quarter.
The Dow Jones Industrial Average .DJI rose 1.05%, the S&P 500 .SPX gained 0.37% and the Nasdaq Composite .IXIC dropped 0.13%.
In Europe, the pan-regional STOXX 600 index .STOXX rose 0.61% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.36%.
Asian stocks fell earlier in the session as markets caught up with growth data from Monday showing the post-pandemic bounce in China's economy was over.
Deutsche Bank said it was lowering its forecast for China's economic growth this year, following similar moves on Monday by J.P. Morgan, Morgan Stanley and Citigroup.
"China is super important to Europe," said Fiona Cincotta, senior markets analyst at City Index. "There are a lot of concerns about what weakness in China could mean for Germany and the German economy, and I think we're seeing that being played on in the DAX, which is struggling to push higher."
Besides the Fed, the European Central Bank and the Bank of Japan also hold policy meetings next week.
Expectations that the Fed and the ECB will diverge on rate hikes have caused the dollar to weaken recently.
Euro zone government bond yields were down, with the German 10-year yield hitting its lowest since June 29 at 2.337%, down around 1.1 basis points on the day DE10YT=RR.
The yield on U.S. 10-year notes US10YT=RR was down 3.9 bps at 3.7539%.
Oil prices were little changed on Tuesday as investors weighed a possible tightening of U.S. crude supplies against weaker-than-expected Chinese economic growth.
U.S. crude CLc1 rose 1.48% to $75.25 per barrel and Brent LCOc1 was at $79.45, up 1.21%.
Spot gold XAU= added 1.4% to $1,982.30 an ounce.
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
(Reporting by Elizabeth Howcroft; Additional reporting by Selina Li in Hong Kong; Editing by Chizu Nomiyama and Jonathan Oatis)
((Elizabeth.Howcroft@thomsonreuters.com; +44 02075427104;))
The views and 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 Corp MSFT.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O led the Nasdaq lower. "The Magnificent Seven that outperformed the first five months of the year will probably consolidate a little bit and underperform," said Thomas Hayes, chairman and managing member of Great Hill Capital LLC in New York. The Dow and the S&P 500, meanwhile, crept higher after some of the top U.S. lenders, including Morgan Stanley and Bank of America, reported upbeat earnings for the second quarter.
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Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O led the Nasdaq lower. By Herbert Lash NEW YORK, July 18 (Reuters) - Global stock markets rose while shares on Wall Street were mixed on Tuesday after U.S. retail sales rose less than expected in June, but consumers boosted or maintained spending elsewhere, raising the odds the Federal Reserve hikes interest rates next week. The dollar slid to a 15-month low against a basket of currencies, and Treasury yields also fell even as futures pointed to a 97.3% probability that the Fed will hike rates by 25 basis points on July 26, according to CME Group's FedWatch Tool.
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Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O led the Nasdaq lower. By Herbert Lash NEW YORK, July 18 (Reuters) - Global stock markets rose while shares on Wall Street were mixed on Tuesday after U.S. retail sales rose less than expected in June, but consumers boosted or maintained spending elsewhere, raising the odds the Federal Reserve hikes interest rates next week. The dollar index =USD fell 0.12% and the euro EUR= rose 0.08% to $1.1243, after hitting a fresh 17-month high of $1.1276 The major U.S. stock indices were mixed, with the S&P 500 and Dow Industrials rising and the Nasdaq falling, in a sign investors are shifting investments away from the tech-oriented megacap stocks that have dominated returns this year.
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Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O led the Nasdaq lower. By Herbert Lash NEW YORK, July 18 (Reuters) - Global stock markets rose while shares on Wall Street were mixed on Tuesday after U.S. retail sales rose less than expected in June, but consumers boosted or maintained spending elsewhere, raising the odds the Federal Reserve hikes interest rates next week. In Europe, the pan-regional STOXX 600 index .STOXX rose 0.61% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.36%.
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14838.0
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2023-07-17 00:00:00 UTC
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Mirror, Mirror, on the Wall, Which Is the Cheapest FAANG Stock of Them All?
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AAPL
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https://www.nasdaq.com/articles/mirror-mirror-on-the-wall-which-is-the-cheapest-faang-stock-of-them-all
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nan
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nan
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Regardless of how well or poorly the broad-market indexes have performed, new and tenured investors have gravitated to the FAANG stocks for more than a decade.
When I say "FAANG" stocks, I'm referring to:
Facebook, which is now part of Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now part of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
The reason these companies are so widely owned has to do with their long-term outperformance and industry-based competitive advantages.
Image source: Getty Images.
With regard to the latter, all five of these companies have well-defined moats or edges that have, thus far, proved insurmountable.
Meta Platforms had more than half of the world's adult population visit at least one of its social media sites (Facebook, WhatsApp, Instagram, or Facebook Messenger) during the first quarter.
Apple's iPhone has consistently accounted for around half, if not more, of U.S. smartphone market share since introducing a 5G-capable iPhone.
Amazon is responsible for bringing in about 40% of U.S. online retail sales.
Netflix is the global and international leader of streaming service market share.
Alphabet's internet search engine Google has accounted for no less than 90% of worldwide search share dating back to March 2015.
They're also crushing the major U.S. stock indexes in the return column. Over the trailing-10-year period, through July 13, Apple, Netflix, Meta, Amazon, and Alphabet (Class A shares, GOOGL), in that order, have produced returns of around 1,150%, 1,120%, 1,110%, 773%, and 440%. By comparison, the benchmark S&P 500 has gained 168% over the same timeline.
These are five highly trusted businesses -- but they're not identical on a valuation basis.
Based on forward P/E, there's one FAANG that's clearly cheaper than the others
Although there are a number of ways to evaluate stocks from a fundamental perspective, the forward price-to-earnings (P/E) ratio is one of the most common metrics used. The forward P/E is derived by dividing a company's share price into Wall Street's consensus earnings per share (EPS) for the upcoming year.
Based on Wall Street's consensus EPS for these companies in 2024, here's what the forward P/Es currently look like for the FAANG stocks:
Alphabet (Class A shares, GOOGL): forward P/E of 19.9
Meta Platforms: forward P/E of 21.3
Apple: forward P/E of 29
Netflix: forward P/E of 31.1
Amazon: forward P/E of 52.1
This traditional fundamental metric suggests Alphabet, the parent of Google, streaming platform YouTube, and autonomous vehicle company Waymo, is the cheapest of the FAANG stocks at just shy of 20 times forward-year earnings.
What's noteworthy about Alphabet is that it'll continue to benefit from its foundational search engine, which is generating copious amount of cash flow, while enjoying potentially faster growth rates from its ancillary segments. This includes its cloud infrastructure service division, Google Cloud, as well as YouTube, the second most-visited social media platform behind Meta's Facebook.
Google Cloud is a particularly interesting growth opportunity. The March-ended quarter marked the first time that Alphabet's cloud infrastructure service segment recorded an operating profit ($191 million). Enterprise cloud spending is still in its early stages, and the operating margin associated with cloud services tends to leave advertising margins in the dust.
Image source: Getty Images.
Cash flow is a much better measure of value with the FAANG stocks
However, a traditional forward-year earnings metric may not be the best way to value the FAANG stocks. While it's a metric that works nicely on mature companies, the willingness of the FAANGs to reinvest a sizable percentage of their operating cash flow back into their respective businesses makes cash flow a far better measure of value.
Using Wall Street's forward-year cash-flow-per-share estimates, here's how the FAANG stocks rank:
Meta Platforms: 11.9 times forward-year cash flow
Amazon: 13 times forward-year cash flow
Alphabet: 13.5 times forward-year cash flow
Apple: 23.9 times forward-year cash flow
Netflix: 32.1 times forward-year cash flow
As you can see, focusing on cash-flow generation changes things quite a bit. Netflix and Apple, which are considerably cheaper than Amazon on the basis of forward earnings, are exceptionally pricey when you factor in their operating cash flow when compared to Amazon. In fact, based on its cash flow potential over the next couple of years, Amazon is cheaper than it's ever been as a publicly traded company.
But when it comes to the best deal among the FAANGs, Meta Platforms stands head and shoulders above its peers. That might come as a surprise considering that Meta's shares have more than tripled off their 2022 bear market low.
Meta's foundation continues to be its top-tier social media real estate. Facebook, Instagram, WhatsApp, and Facebook Messenger are among the most-downloaded apps on the planet. Soon, we might be adding Threads to the list. Threads signed up more than 100 million members in only five days. Even though Meta's social media user growth has slowed considerably, it's still the clear go-to for advertisers looking to reach a wide audience. Meta generated slightly more than 98% of its first-quarter revenue from advertising.
The company's potential in virtual reality and the metaverse is exciting, too. Meta unveiled its mixed reality headset, the Quest 3, in early June, and its Reality Labs segment has been pouring billions of dollars into becoming an on-ramp for the 3D virtual environment known as the metaverse. Thanks to its abundant cash flow and sizable net-cash balance, Meta has the luxury of making these investments for its future.
Lastly, don't overlook that Meta has shareholder-friendly levers it can pull. With Reality Labs' operating losses standing out like a sore thumb last year, Meta reduced its full-year expenditure guidance (for the entire company) by $5 billion at the midpoint. Tightening its belt a bit, coupled with the company's board approving an up to $40 billion share buyback, is another way Meta can potentially make itself more attractive to investors.
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 10, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When I say "FAANG" stocks, I'm referring to: Facebook, which is now part of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now part of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The reason these companies are so widely owned has to do with their long-term outperformance and industry-based competitive advantages. What's noteworthy about Alphabet is that it'll continue to benefit from its foundational search engine, which is generating copious amount of cash flow, while enjoying potentially faster growth rates from its ancillary segments. With Reality Labs' operating losses standing out like a sore thumb last year, Meta reduced its full-year expenditure guidance (for the entire company) by $5 billion at the midpoint.
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When I say "FAANG" stocks, I'm referring to: Facebook, which is now part of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now part of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The reason these companies are so widely owned has to do with their long-term outperformance and industry-based competitive advantages. Based on Wall Street's consensus EPS for these companies in 2024, here's what the forward P/Es currently look like for the FAANG stocks: Alphabet (Class A shares, GOOGL): forward P/E of 19.9 Meta Platforms: forward P/E of 21.3 Apple: forward P/E of 29 Netflix: forward P/E of 31.1 Amazon: forward P/E of 52.1 This traditional fundamental metric suggests Alphabet, the parent of Google, streaming platform YouTube, and autonomous vehicle company Waymo, is the cheapest of the FAANG stocks at just shy of 20 times forward-year earnings. Using Wall Street's forward-year cash-flow-per-share estimates, here's how the FAANG stocks rank: Meta Platforms: 11.9 times forward-year cash flow Amazon: 13 times forward-year cash flow Alphabet: 13.5 times forward-year cash flow Apple: 23.9 times forward-year cash flow Netflix: 32.1 times forward-year cash flow As you can see, focusing on cash-flow generation changes things quite a bit.
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When I say "FAANG" stocks, I'm referring to: Facebook, which is now part of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now part of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The reason these companies are so widely owned has to do with their long-term outperformance and industry-based competitive advantages. Based on Wall Street's consensus EPS for these companies in 2024, here's what the forward P/Es currently look like for the FAANG stocks: Alphabet (Class A shares, GOOGL): forward P/E of 19.9 Meta Platforms: forward P/E of 21.3 Apple: forward P/E of 29 Netflix: forward P/E of 31.1 Amazon: forward P/E of 52.1 This traditional fundamental metric suggests Alphabet, the parent of Google, streaming platform YouTube, and autonomous vehicle company Waymo, is the cheapest of the FAANG stocks at just shy of 20 times forward-year earnings. Using Wall Street's forward-year cash-flow-per-share estimates, here's how the FAANG stocks rank: Meta Platforms: 11.9 times forward-year cash flow Amazon: 13 times forward-year cash flow Alphabet: 13.5 times forward-year cash flow Apple: 23.9 times forward-year cash flow Netflix: 32.1 times forward-year cash flow As you can see, focusing on cash-flow generation changes things quite a bit.
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When I say "FAANG" stocks, I'm referring to: Facebook, which is now part of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now part of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The reason these companies are so widely owned has to do with their long-term outperformance and industry-based competitive advantages. This includes its cloud infrastructure service division, Google Cloud, as well as YouTube, the second most-visited social media platform behind Meta's Facebook. Cash flow is a much better measure of value with the FAANG stocks However, a traditional forward-year earnings metric may not be the best way to value the FAANG stocks.
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14839.0
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2023-07-17 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-15
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $193.99, moving +1.73% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.39%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 3.12% over the past month. This has outpaced the Computer and Technology sector's gain of 2.41% and lagged the S&P 500's gain of 3.16% in that time.
Investors will be hoping for strength from Apple as it approaches its next earnings release, which is expected to be August 3, 2023. On that day, Apple is projected to report earnings of $1.20 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $81.11 billion, down 2.23% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6 per share and revenue of $384.34 billion, which would represent changes of -1.8% and -2.53%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 0.06% higher. Apple is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Apple is holding a Forward P/E ratio of 31.8. For comparison, its industry has an average Forward P/E of 9.8, which means Apple is trading at a premium to the group.
We can also see that AAPL currently has a PEG ratio of 2.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
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 the most recent trading day at $193.99, moving +1.73% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 2.54. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Apple (AAPL) closed the most recent trading day at $193.99, moving +1.73% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 2.54. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Apple (AAPL) closed the most recent trading day at $193.99, moving +1.73% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 2.54. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Apple (AAPL) closed the most recent trading day at $193.99, moving +1.73% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 2.54. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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14840.0
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2023-07-17 00:00:00 UTC
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Apple (AAPL) Rumored to Bring Tap to Pay on iPhone to Brazil
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-rumored-to-bring-tap-to-pay-on-iphone-to-brazil
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Apple AAPL is reportedly testing the Tap to Pay on iPhone feature in Brazil. Per a latest 9TO5Mac article, some users of the Brazil payments platform, InfinitePay, received “early access to Tap to Pay on iPhone through the InfinitePay app.”
Tap To Pay on iPhone was first introduced in the United States in 2022. The feature is currently supported by Square, payment platform Adyen, Stripe, GoDaddy and Clover. Chase, North American Bancard and Worldpay are the upcoming partners.
In April, Apple launched Tap to Pay on iPhone in Taiwan, which is supported by CTBC Bank, TapPay and Taipei Fubon Bank. In May, Apple expanded its footprint by launching the feature in Australia.
Apple recently expanded Tap to Pay on iPhone in the U.K. This capability enables millions of merchants, ranging from small enterprises to large retailers, to seamlessly and securely accept payments through Apple Pay, contactless credit and debit cards, and other digital wallets using only their iPhone as a payment terminal and a partner-enabled iOS app.
Several payment platforms and app developers in the U.K. are integrating Tap to Pay on iPhone into their iOS apps, offering it as a payment acceptance option for their business customers. Revolut and Tyl by NatWest are among the first payment platforms to adopt this feature, with others, such as Adyen, Dojo, myPOS, Stripe, SumUp, Viva Wallet, Worldline and Zettle by PayPal PYPL, following suit soon. Notably, Apple Store locations in the U.K. will roll out Tap to Pay on iPhone in the coming weeks.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple is collaborating with leading payment platforms and app developers to ensure the widespread adoption of Tap to Pay on iPhone. This feature is compatible with contactless credit and debit cards from major payment networks like American Express, Mastercard and Visa.
Apple's Tap to Pay Expansion to Aid Prospects
Apple shares have returned 46.8%, outperforming the Zacks Computer & Technology sector’s growth of 40.5%. The company has been benefiting from the steady shipment of iPhone 14 and 14 Plus, as well as expanding its footprint in emerging markets.
Apple’s business primarily consists of its flagship iPhone. The company’s expanding install base is expected to boost the adoption of the Tap To Pay feature. It is also expanding Apple Pay to Central America countries, including Guatemala, El Salvador and Panama. AAPL is also reportedly expanding Apple Pay to Vietnam soon.
Expanding support is driving the adoption of Apple Pay, which is now available in more than 80 countries. In April, PayPal announced support for Apple Pay as a checkout option for small businesses.
Growing subscriber base and improving customer engagement are tailwinds for the services business. Apple is expanding service offerings with the new features and enhancements in its upcoming iOS 17, iPadOS 17, macOS Sonoma, watchOS 10 and tvOS 17. Expanding content on Apple TV+ bodes well for Apple.
The Services portfolio currently has more than 975 million paid subscribers and accounted for 22% of sales in the fiscal second quarter. Services revenues increased 5.5% from the year-ago quarter to $20.77 billion.
For the fiscal third quarter, Services’ revenue growth is expected to be similar to the March-end quarter’s reported figure. Apple expects services to be negatively impacted by challenging macroeconomic conditions, as well as weakness in digital advertising and mobile gaming.
The Zacks Consensus Estimate for third-quarter fiscal 2023 revenues for the Services segment is pegged at $20.79 billion, indicating 6.05% year-over-year growth.
This Zacks Rank #3 (Hold) company expects the June-end quarter’s (fiscal third) year-over-year revenue growth to be similar to that reported in the March-end quarter due to unfavorable forex.
The Zacks Consensus Estimate for Apple’s fiscal third-quarter earnings has increased by a couple of cents to $1.20 per share over the past 30 days. The consensus estimate for revenues is pegged at $81.11 billion, indicating a 2.23% year-over-year decline.
Stocks to Consider
Cadence Design Systems CDNS and Salesforce CRM are better-ranked stocks in the broader sector, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Cadence Design Systems and Salesforce have returned 73% and 49.9%, respectively, on a year-to-date basis.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Salesforce Inc. (CRM) : Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : 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 is reportedly testing the Tap to Pay on iPhone feature in Brazil. AAPL is also reportedly expanding Apple Pay to Vietnam soon. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : 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 Salesforce Inc. (CRM) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is reportedly testing the Tap to Pay on iPhone feature in Brazil. AAPL is also reportedly expanding Apple Pay to Vietnam soon.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is reportedly testing the Tap to Pay on iPhone feature in Brazil. AAPL is also reportedly expanding Apple Pay to Vietnam soon.
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Apple AAPL is reportedly testing the Tap to Pay on iPhone feature in Brazil. AAPL is also reportedly expanding Apple Pay to Vietnam soon. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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14841.0
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2023-07-17 00:00:00 UTC
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US STOCKS-Wall St kicks off week higher as investors await more earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-kicks-off-week-higher-as-investors-await-more-earnings
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Ford down after slashing prices of F-150 Lightning trucks
Tesla gains after building first Cybertruck
Apple rises as MS hikes PT
AT&T hits 30-yr low on Citi downgrade
Indexes up: Dow 0.25%, S&P 0.31%, Nasdaq 0.64%
Updated at 11:37 a.m. ET/1537 GMT
By Bansari Mayur Kamdar and Johann M Cherian
July 17 (Reuters) - The tech-heavy Nasdaq led Wall Street higher on Monday supported by megacap growth stocks including Apple and Tesla, ahead of quarterly results from industry heavyweights through the week.
Second-quarter earnings are gathering momentum, with Tesla TSLA.O due to report on Wednesday, while Bank of America BAC.N, Morgan Stanley MS.N, Goldman Sachs GS.N and Netflix NFLX.O are also lined up through the rest of the week.
Of the 30 companies in the S&P 500 that have reported earnings as of Friday, 80% beat analyst expectations, according to Refinitiv data.
"Investors are looking at the fact that the economy has been really resilient and corporate earnings so far are coming in pretty well," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
Apple AAPL.O climbed 1.2% after Morgan Stanley raised its target price on the iPhone maker.
TeslaTSLA.O gained 1.9% after the company said on Sunday it had built its first Cybertruck, after two years of delays.
Rival Ford Motor F.Nshed 4.9% after the carmaker slashed the prices of its popular electric F-150 Lightning trucks.
Other automakers like Rivian RIVN.O and General Motors GM.N slid more than 3% each.
At 11:37 a.m. ET, the Dow Jones Industrial Average .DJI was up 87.28 points, or 0.25%, at 34,596.31, the S&P 500 .SPX was up 13.76 points, or 0.31%, at 4,519.18, and the Nasdaq Composite .IXIC was up 90.25 points, or 0.64%, at 14,203.95.
The three major U.S. indexes ended last week over 2% higher after data provided further evidence that the economy had entered a disinflation phase, stoking hopes that the Federal Reserve will soon end its monetary policy tightening.
New York Fed Manufacturing data showed the general business conditions index fell to 1.1 from 6.6 in June, indicating activity changed little during the month.
On Friday, JPMorgan ChaseJPM.N, Wells FargoWFC.N and CitigroupC.N showed big U.S. banks got a profit boost from higher rates and painted a picture of a resilient economy, with sparks of hope in some businesses like deal-making that have been in the dumps of late.
The strong opening rally in lenders, however, quickly fizzled out with most financials ending Friday's session lower as investors feared things were as good as they would get for a while.
The banking index .SPXBK advanced 1.4% by mid-day trading, recovering Friday's sharp losses.
Activision BlizzardATVI.O rose 3.2% after Microsoft MSFT.O said it has signed an agreement to keep "Call of Duty" on PlayStation following its acquisition.
Also helping the stock, a U.S. appeals court on Friday rejected the Federal Trade Commission's request to pause Microsoft's $69 billion purchase.
AT&T T.N tumbled 5.3% to a 30-year low after Citi downgraded the telecom operator over risks tied to lead cables.
Elsewhere, datashowed the Chinese economy grew at a frail pace in the second quarter.
Advancing issues outnumbered decliners by a 1.41-to-1 ratio on the NYSE and a 1.87-to-1 ratio on the Nasdaq.
The S&P index recorded 44 new 52-week highs and four new lows, while the Nasdaq recorded 104 new highs and 50 new lows.
Megacaps lead rally on tech-heavy Nasdaq https://tmsnrt.rs/3rsBSwl
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Nivedita Bhattacharjee and Maju Samuel)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O climbed 1.2% after Morgan Stanley raised its target price on the iPhone maker. Ford down after slashing prices of F-150 Lightning trucks Tesla gains after building first Cybertruck Apple rises as MS hikes PT AT&T hits 30-yr low on Citi downgrade Indexes up: Dow 0.25%, S&P 0.31%, Nasdaq 0.64% Updated at 11:37 a.m. ET/1537 GMT By Bansari Mayur Kamdar and Johann M Cherian July 17 (Reuters) - The tech-heavy Nasdaq led Wall Street higher on Monday supported by megacap growth stocks including Apple and Tesla, ahead of quarterly results from industry heavyweights through the week. Second-quarter earnings are gathering momentum, with Tesla TSLA.O due to report on Wednesday, while Bank of America BAC.N, Morgan Stanley MS.N, Goldman Sachs GS.N and Netflix NFLX.O are also lined up through the rest of the week.
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Apple AAPL.O climbed 1.2% after Morgan Stanley raised its target price on the iPhone maker. Ford down after slashing prices of F-150 Lightning trucks Tesla gains after building first Cybertruck Apple rises as MS hikes PT AT&T hits 30-yr low on Citi downgrade Indexes up: Dow 0.25%, S&P 0.31%, Nasdaq 0.64% Updated at 11:37 a.m. ET/1537 GMT By Bansari Mayur Kamdar and Johann M Cherian July 17 (Reuters) - The tech-heavy Nasdaq led Wall Street higher on Monday supported by megacap growth stocks including Apple and Tesla, ahead of quarterly results from industry heavyweights through the week. The S&P index recorded 44 new 52-week highs and four new lows, while the Nasdaq recorded 104 new highs and 50 new lows.
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Apple AAPL.O climbed 1.2% after Morgan Stanley raised its target price on the iPhone maker. Ford down after slashing prices of F-150 Lightning trucks Tesla gains after building first Cybertruck Apple rises as MS hikes PT AT&T hits 30-yr low on Citi downgrade Indexes up: Dow 0.25%, S&P 0.31%, Nasdaq 0.64% Updated at 11:37 a.m. ET/1537 GMT By Bansari Mayur Kamdar and Johann M Cherian July 17 (Reuters) - The tech-heavy Nasdaq led Wall Street higher on Monday supported by megacap growth stocks including Apple and Tesla, ahead of quarterly results from industry heavyweights through the week. The three major U.S. indexes ended last week over 2% higher after data provided further evidence that the economy had entered a disinflation phase, stoking hopes that the Federal Reserve will soon end its monetary policy tightening.
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Apple AAPL.O climbed 1.2% after Morgan Stanley raised its target price on the iPhone maker. Ford down after slashing prices of F-150 Lightning trucks Tesla gains after building first Cybertruck Apple rises as MS hikes PT AT&T hits 30-yr low on Citi downgrade Indexes up: Dow 0.25%, S&P 0.31%, Nasdaq 0.64% Updated at 11:37 a.m. ET/1537 GMT By Bansari Mayur Kamdar and Johann M Cherian July 17 (Reuters) - The tech-heavy Nasdaq led Wall Street higher on Monday supported by megacap growth stocks including Apple and Tesla, ahead of quarterly results from industry heavyweights through the week. Of the 30 companies in the S&P 500 that have reported earnings as of Friday, 80% beat analyst expectations, according to Refinitiv data.
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14842.0
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2023-07-17 00:00:00 UTC
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US STOCKS-Wall St ends higher with earnings poised to ramp up
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-ends-higher-with-earnings-poised-to-ramp-up
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nan
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By Chuck Mikolajczak
NEW YORK, July 17 (Reuters) - U.S. stocks ended higher to kick off the trading week on Monday, buoyed by gains in financial and technology shares as investors awaited the next round of quarterly results this week as earnings season gathers speed.
Companies scheduled to report earnings this week include Tesla TSLA.O and Netflix NFLX.O, while more big banks in the form of Bank of America BAC.N, Morgan Stanley MS.N and Goldman Sachs GS.N are also on the docket to post results, following reports from peers such as JP Morgan JPM.N and Citigroup C.Nlast week.
Investors will be paying attention to company outlooks, with earnings for the quarter expected to decline 8.1%, according to Refinitiv data, a bigger decline than the 5.7% fall expected at the start of the month.
"Obviously, we are about to get all these (earnings) reports but it feels to me earnings are going to be good and at the end of the day, how do you value stocks – based on the earnings and dividends," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.
"By and large, the market in its totality continues to be reasonably priced if not kind of cheap. My bigger concern going forward is the Fed is going to start doing things it doesn’t need to do to win the inflation battle but will ultimately now really start to hurt the economy."
Equities have rallied recently, with the S&P 500 and Nasdaq climbing to 15-month highs as economic data has pointed to a resilient economy, with inflation cooling and a solid labor market.
Markets have largely priced in a 25-basis-point rake hike by the Federal Reserve at its policy meeting next week, with expectations at 97.3%, according to CME's FedWatch Tool.
According to preliminary data, the S&P 500 .SPX gained 16.87 points, or 0.37%, to end at 4,522.29 points, while the Nasdaq Composite .IXIC gained 131.25 points, or 0.91%, to 14,242.26. The Dow Jones Industrial Average .DJI rose 73.79 points, or 0.21%, to 34,582.82.
The S&P and Nasdaq have advanced in five of the past six sessions.
Tesla TSLA.O gained after the company said on Saturday it had built its first Cybertruck, after two years of delays.
In contrast, Ford Motor tumbled after the automaker cut the price of its F-150 Lightning trucks, the latest salvo in a deepening price war among electric vehicle makers. Peers General Motors GM.N and Rivian RIVN.O also slumped.
Apple AAPL.O advanced after Morgan Stanley raised its target price on the iPhone maker to $220 from $190, citing a bullish outlook on India as an emerging growth driver for the company.
Bank shares recovered from Friday's losses, with the S&P 500 bank index .SPXBK up and the KBW regional bank index .KRX also advancing.
Activision BlizzardATVI.O rose after Microsoft MSFT.O said it has signed an agreement to keep "Call of Duty" on PlayStation following its acquisition.
In addition, Microsoft was granted a two-month pause of its appeal over Britain's block against the deal to give the parties more time to reach an agreement.
AT&T T.N slumped to a 30-year low after Citi downgraded the telecom operator over risks tied to lead cables left buried in the United States. Verizon shares also dropped to their lowest level in nearly 13 years.
Ford cuts F-150 Lightning prices after 4 hikes https://tmsnrt.rs/43vHa7M
(Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O advanced after Morgan Stanley raised its target price on the iPhone maker to $220 from $190, citing a bullish outlook on India as an emerging growth driver for the company. Equities have rallied recently, with the S&P 500 and Nasdaq climbing to 15-month highs as economic data has pointed to a resilient economy, with inflation cooling and a solid labor market. AT&T T.N slumped to a 30-year low after Citi downgraded the telecom operator over risks tied to lead cables left buried in the United States.
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Apple AAPL.O advanced after Morgan Stanley raised its target price on the iPhone maker to $220 from $190, citing a bullish outlook on India as an emerging growth driver for the company. Investors will be paying attention to company outlooks, with earnings for the quarter expected to decline 8.1%, according to Refinitiv data, a bigger decline than the 5.7% fall expected at the start of the month. According to preliminary data, the S&P 500 .SPX gained 16.87 points, or 0.37%, to end at 4,522.29 points, while the Nasdaq Composite .IXIC gained 131.25 points, or 0.91%, to 14,242.26.
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Apple AAPL.O advanced after Morgan Stanley raised its target price on the iPhone maker to $220 from $190, citing a bullish outlook on India as an emerging growth driver for the company. By Chuck Mikolajczak NEW YORK, July 17 (Reuters) - U.S. stocks ended higher to kick off the trading week on Monday, buoyed by gains in financial and technology shares as investors awaited the next round of quarterly results this week as earnings season gathers speed. Companies scheduled to report earnings this week include Tesla TSLA.O and Netflix NFLX.O, while more big banks in the form of Bank of America BAC.N, Morgan Stanley MS.N and Goldman Sachs GS.N are also on the docket to post results, following reports from peers such as JP Morgan JPM.N and Citigroup C.Nlast week.
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Apple AAPL.O advanced after Morgan Stanley raised its target price on the iPhone maker to $220 from $190, citing a bullish outlook on India as an emerging growth driver for the company. Companies scheduled to report earnings this week include Tesla TSLA.O and Netflix NFLX.O, while more big banks in the form of Bank of America BAC.N, Morgan Stanley MS.N and Goldman Sachs GS.N are also on the docket to post results, following reports from peers such as JP Morgan JPM.N and Citigroup C.Nlast week. Markets have largely priced in a 25-basis-point rake hike by the Federal Reserve at its policy meeting next week, with expectations at 97.3%, according to CME's FedWatch Tool.
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14843.0
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2023-07-17 00:00:00 UTC
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Biden meets labor organizers from Starbucks, Minor League Baseball
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AAPL
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https://www.nasdaq.com/articles/biden-meets-labor-organizers-from-starbucks-minor-league-baseball
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nan
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By Nandita Bose
WASHINGTON, July 17 (Reuters) - President Joe Biden and Senator Bernie Sanders met with young labor organizers from Starbucks and Minor League Baseball among others at the White House on Monday as a growing number of worker strikes grip the country.
After decades of declining union membership, organized labor is witnessing a resurgence in the U.S., as sky-high costs of living, housing shortages and technological disruptions have bred unusual levels of solidarity among workers in disparate industries, from dockworkers to Hollywood screenwriters.
Employees seeking better working conditions and higher pay have recently organized unions at companies such as Starbucks SBUX.O, Amazon.com AMZN.O, and Apple AAPL.O even as businesses have become more aggressive in pushing back against union activity.
Biden and Senator Sanders, who chairs a committee on labor issues, was expected to congratulate organizers for the work they have done and discuss the president's "belief that worker power is essential to growing the economy from the middle out and bottom up," White House Press Secretary Karine Jean-Pierre said.
In a tweet on Monday night, Biden said he and Sanders met with young labor leaders to discuss their fight for better pay and benefits.
"The presence of a union means there is democracy. And organizing or joining a union - that's democracy in action," Biden tweeted.
Administration officials in Monday's meeting included Acting Secretary of Labor Julie Su, White House National Economic Council Director Lael Brainard, and White House Director of Governmental Affairs Tom Perez, the official said.
Biden, who is often referred to as the most pro-union president in U.S. history by labor leaders, had a similar meeting with union activists from Amazon and Starbucks at the White House last year.
(Reporting by Nandita Bose in Washington; Editing by Sonali Paul)
((nandita.bose@thomsonreuters.com; +12023545868; Reuters Messaging: nandita.bose.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Employees seeking better working conditions and higher pay have recently organized unions at companies such as Starbucks SBUX.O, Amazon.com AMZN.O, and Apple AAPL.O even as businesses have become more aggressive in pushing back against union activity. By Nandita Bose WASHINGTON, July 17 (Reuters) - President Joe Biden and Senator Bernie Sanders met with young labor organizers from Starbucks and Minor League Baseball among others at the White House on Monday as a growing number of worker strikes grip the country. After decades of declining union membership, organized labor is witnessing a resurgence in the U.S., as sky-high costs of living, housing shortages and technological disruptions have bred unusual levels of solidarity among workers in disparate industries, from dockworkers to Hollywood screenwriters.
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Employees seeking better working conditions and higher pay have recently organized unions at companies such as Starbucks SBUX.O, Amazon.com AMZN.O, and Apple AAPL.O even as businesses have become more aggressive in pushing back against union activity. By Nandita Bose WASHINGTON, July 17 (Reuters) - President Joe Biden and Senator Bernie Sanders met with young labor organizers from Starbucks and Minor League Baseball among others at the White House on Monday as a growing number of worker strikes grip the country. In a tweet on Monday night, Biden said he and Sanders met with young labor leaders to discuss their fight for better pay and benefits.
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Employees seeking better working conditions and higher pay have recently organized unions at companies such as Starbucks SBUX.O, Amazon.com AMZN.O, and Apple AAPL.O even as businesses have become more aggressive in pushing back against union activity. By Nandita Bose WASHINGTON, July 17 (Reuters) - President Joe Biden and Senator Bernie Sanders met with young labor organizers from Starbucks and Minor League Baseball among others at the White House on Monday as a growing number of worker strikes grip the country. Biden and Senator Sanders, who chairs a committee on labor issues, was expected to congratulate organizers for the work they have done and discuss the president's "belief that worker power is essential to growing the economy from the middle out and bottom up," White House Press Secretary Karine Jean-Pierre said.
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Employees seeking better working conditions and higher pay have recently organized unions at companies such as Starbucks SBUX.O, Amazon.com AMZN.O, and Apple AAPL.O even as businesses have become more aggressive in pushing back against union activity. By Nandita Bose WASHINGTON, July 17 (Reuters) - President Joe Biden and Senator Bernie Sanders met with young labor organizers from Starbucks and Minor League Baseball among others at the White House on Monday as a growing number of worker strikes grip the country. After decades of declining union membership, organized labor is witnessing a resurgence in the U.S., as sky-high costs of living, housing shortages and technological disruptions have bred unusual levels of solidarity among workers in disparate industries, from dockworkers to Hollywood screenwriters.
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14844.0
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2023-07-17 00:00:00 UTC
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Buffett cut Activision stake before judge approved Microsoft merger
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AAPL
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https://www.nasdaq.com/articles/buffett-cut-activision-stake-before-judge-approved-microsoft-merger
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nan
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By Jonathan Stempel
July 17 (Reuters) - Warren Buffett's Berkshire Hathaway BRKa.N sold 70% of its investment in Activision Blizzard ATVI.O in the second quarter, appearing to miss out on some gains when a federal judge said Microsoft MSFT.O can complete its $68.7 billion purchase of the video game maker.
In a regulatory filing on Monday, Berkshire said it owned about 14.7 million Activision shares, or 1.9%, worth $1.24 billion on June 30, down from 49.4 million shares, or 6.3%, on March 31.
The filing did not discuss the prices of any sales, or whether Berkshire bought or sold Activision stock in July.
Berkshire did not immediately respond to a request for comment.
The Activision investment was a form of arbitrage, with Buffett viewing investors as too pessimistic that regulators would approve combining Microsoft's Xbox gaming console business with the publisher of the "Call of Duty" and "Candy Crush" franchises.
One of Berkshire's portfolio managers invested in Activision in late 2021, with Buffett boosting the stake to nearly 10% in 2022.
The billionaire told shareholders at Berkshire's annual meeting in April 2022 he did not know whether regulators would bless the merger, which valued Activision at $95 per share, but "one thing we do know is Microsoft has the money."
Berkshire's remaining Activision stake - 14,658,121 shares - is exactly the size it was before Buffett started buying, suggesting that he has exited the arbitrage bet.
Activision shares rose 10% to $90.99 on July 11 after U.S. District Judge Jacqueline Scott Corley in San Francisco rejected U.S. Federal Trade Commission arguments that the merger would hurt competition in cloud gaming, consoles and subscription services.
Britain's competition regulator, the Competition and Markets Authority, also opposed the merger, but agreed to a stay on Microsoft's appeal to allow more time to resolve their dispute.
Berkshire is based in Omaha, Nebraska. It also owns dozens of businesses such as the BNSF railroad and Geico car insurer, as well as stocks such as Apple AAPL.O and Bank of America BAC.N.
(Reporting by Jonathan Stempel in New York Editing by Matthew Lewis)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It also owns dozens of businesses such as the BNSF railroad and Geico car insurer, as well as stocks such as Apple AAPL.O and Bank of America BAC.N. By Jonathan Stempel July 17 (Reuters) - Warren Buffett's Berkshire Hathaway BRKa.N sold 70% of its investment in Activision Blizzard ATVI.O in the second quarter, appearing to miss out on some gains when a federal judge said Microsoft MSFT.O can complete its $68.7 billion purchase of the video game maker. The Activision investment was a form of arbitrage, with Buffett viewing investors as too pessimistic that regulators would approve combining Microsoft's Xbox gaming console business with the publisher of the "Call of Duty" and "Candy Crush" franchises.
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It also owns dozens of businesses such as the BNSF railroad and Geico car insurer, as well as stocks such as Apple AAPL.O and Bank of America BAC.N. By Jonathan Stempel July 17 (Reuters) - Warren Buffett's Berkshire Hathaway BRKa.N sold 70% of its investment in Activision Blizzard ATVI.O in the second quarter, appearing to miss out on some gains when a federal judge said Microsoft MSFT.O can complete its $68.7 billion purchase of the video game maker. In a regulatory filing on Monday, Berkshire said it owned about 14.7 million Activision shares, or 1.9%, worth $1.24 billion on June 30, down from 49.4 million shares, or 6.3%, on March 31.
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It also owns dozens of businesses such as the BNSF railroad and Geico car insurer, as well as stocks such as Apple AAPL.O and Bank of America BAC.N. By Jonathan Stempel July 17 (Reuters) - Warren Buffett's Berkshire Hathaway BRKa.N sold 70% of its investment in Activision Blizzard ATVI.O in the second quarter, appearing to miss out on some gains when a federal judge said Microsoft MSFT.O can complete its $68.7 billion purchase of the video game maker. In a regulatory filing on Monday, Berkshire said it owned about 14.7 million Activision shares, or 1.9%, worth $1.24 billion on June 30, down from 49.4 million shares, or 6.3%, on March 31.
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It also owns dozens of businesses such as the BNSF railroad and Geico car insurer, as well as stocks such as Apple AAPL.O and Bank of America BAC.N. By Jonathan Stempel July 17 (Reuters) - Warren Buffett's Berkshire Hathaway BRKa.N sold 70% of its investment in Activision Blizzard ATVI.O in the second quarter, appearing to miss out on some gains when a federal judge said Microsoft MSFT.O can complete its $68.7 billion purchase of the video game maker. In a regulatory filing on Monday, Berkshire said it owned about 14.7 million Activision shares, or 1.9%, worth $1.24 billion on June 30, down from 49.4 million shares, or 6.3%, on March 31.
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14845.0
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2023-07-17 00:00:00 UTC
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7 Growth Stocks to Buy to go Beyond the ‘Magnificent 7’
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AAPL
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https://www.nasdaq.com/articles/7-growth-stocks-to-buy-to-go-beyond-the-magnificent-7
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The ‘Magnificent 7’ stocks have garnered a lot of attention in 2023 for pulling equities out of a bear market and into a bull run. Headlines have seized upon their colossal influence noting that they are largely responsible for the turnaround. Those firms include Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG,GOOGL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA), and were up by $3.35 trillion by early June while the 93 other tech companies in the Nasdaq 100 were up a mere $635 million.
The numbers are impressive. Yet investors can’t help but wonder if other growth stocks are ripe with opportunity. The logic is simple and sound: There are plenty of other strong growth firms worth considering and a rising tide should pull all ships higher.
Applied Digital (APLD)
Source: Shutterstock
Applied Digital (NASDAQ:APLD) stock represents an early-stage data center firm that is growing rapidly and boasts impressive metrics relative to its age. It is a name to consider in the field of high-performance computing (HPC).
The company garners all of its sales as hosting revenue. Those revenues reached just above $1 million dollars for the 3-month period that ended Feb. 28, 2022. A year later those revenues increased to above $14 million during the same period. Equally as important, Applied Digital was able to derive a $3.56 million profit from those revenues proving that its business model is solid and well-executed.
Perhaps more impressive, Applied Digital is rapidly growing to accommodate AI services into its product mix. A few weeks ago the company announced that it had secured its second and largest to date customer for its AI Cloud service.
Sai Computing, Applied Digital’s wholly owned subsidiary, landed a contract worth up to $460 million over 36 months for AI Cloud services. Therefore, it is reasonable to anticipate that Applied Digital will continue to grow at a rapid pace that is likely to push share prices higher.
Progyny (PGNY)
Source: Monkey Business Images / Shutterstock.com
Progyny (NASDAQ:PGNY) provides fertility benefits management to employers and manages all stages of the fertility treatment process. The company currently covers 5.4 lives and management believes that’s just the beginning of the opportunity.
That’s a reasonable assertion given an aging U.S. population that is choosing to have children later. As a result, the fertility services market is expected to grow by more than 16% annually between 2022 and 2031.
Growth has been even more rapid at Progyny which saw Q1 revenues increase by 50% year-over-year. Progyny reported its highest-ever figures for revenue, gross profit, and EBITDA during any quarter in its history. The firm also generated its highest-ever cash flows in the first quarter. Progyny produced a net gain a year ago and that net gain increased in Q1 by 255% reaching $17.678 million.
In short, Progyny is one of the faster-growing fertility firms in what is a booming market with lots of growth ahead. Record growth, profitability, and operations within a market with a long runway all mean Progyny can continue to grow quickly.
SolarEdge (SEDG)
Source: rafapress / Shutterstock.com
Investors in SolarEdge (NASDAQ:SEDG) stock have a lot to be impressed by and good reason to be optimistic. Wall Street is certainly optimistic about SolarEdge and expects shares to rise by another $90 beyond their current price.
It’s reasonable that Wall Street should be high on the company given the strength of the company’s most recent earnings report. Sales increased by 44% to $943.9 million during the first quarter. Solar sales accounted for $908 of the total $943.9 million in revenues and increased by 49% on a year-over-year basis.
However, SolarEdge has shown signs of slowing growth. Prior quarter growth rates are lower with sales having grown by 6% since the fourth quarter. Solar sales growth was slightly better at 9% but still much less than the year-over-year growth.
This isn’t necessarily a bad sign overall. SolarEdge’s net income increased from $33 million to $138 million. It is maturing and providing good income. It can still capture new growth elsewhere but for now investors should be thankful for its maturation and income.
Block (SQ)
Source: Sergei Elagin / Shutterstock
Block (NYSE:SQ) is one of the more prominent fintech stocks around. Its businesses touch on a wide swath of financial services, but its profits are driven by Cash App and Square. Cash App accounted for $974 million of the company’s $1.71 billion in gross profits during the first quarter. Square accounted for the remaining $770 million.
The company has grown from Point of Sale (POS) leader to mobile payments to buy-now-pay-later and more. It continues to grow rapidly even as it has reached a massive scale. Revenues reached $4.99 billion in Q1. That’s a large-scale firm by most standards and one that grew by 26% year-over-year.
What might be surprising to some investors is the fact that Block, despite making so much money, still recorded a net loss of $16.84 million during the quarter. There’s a positive takeaway here, though: Block’s net loss a year prior exceeded $204 million. Watch out once Block figures out how to generate gains. And that could occur very soon.
GitLab (GTLB)
Source: rafapress / Shutterstock.com
GitLab (NASDAQ:GTLB) helps organizations plan, build, secure, and deploy software quicker. It is what is called a DevSecOps platform that offers an approach to design software with a complete IT lifecycle in mind.
The company has certainly found customers for its product/service mix as Q1 revenues grew by 45% to $126.9 million.
Customers with annual recurring revenues (ARR) of $5,000 or more increased by 43% while customers with an ARR above $100,000 were up by 39%. ARR is particularly important to software firms like GitLab that depend heavily on subscriptions for revenues. Convincing customers to buy is the most difficult part, and once onboard they can be incrementally upsold. That is precisely what GitLab has done based on its net retention rate of 128%. That means GitLab is retaining and expanding its customer base.
GitLab is expected to post sales between $129-130 million in Q2. The company reported $101 million in revenues during Q2 last year. Growth is likely to be closer to 30% rather than the 45% growth in Q1. However, 30% growth is still phenomenal and worth investing in.
Crowdstrike (CRWD)
Source: T. Schneider / Shutterstock.com
There’s no denying that Wall Street remains highly upbeat on Crowdstrike (NASDAQ:CRWD) stock. The consensus shows that the firm’s shares are worth $175 but still trade at $150.
The cybersecurity firm has seen its shares increase in value by nearly 50% in 2023. They currently trade for $150 but the good news there is that they traded above $200 less than a year ago. That suggests there is further room to rally this year.
Revenues grew by 42% in Q1. That was exactly in line with ARR growth of 42% during the same period. Those figures are also suggestive of the idea that CRWD shares can grow further this year.
Like most tech firms, Crowdstrike is telegraphing the idea that AI represents an incredible opportunity. Its CEO noted as much in the earnings release which should signal the market that Crowdstrike is a name in the subject. What is perhaps most impressive about Crowdstrike is the fact that it reported a net income this quarter of $0.5 million. That represented a significant improvement over the $31.5 million net loss a year prior.
Albemarle (ALB)
Source: IgorGolovniov/Shutterstock.com
Albemarle (NYSE:ALB) shares have boomed during the pandemic era, with the stock more than tripling in value. The lithium producer has become the go-to name for investors seeking to get on board with the EV boom.
That has been a scary ride at times as lithium prices plummeted late in 2022. That sent prices tumbling and investors headed toward the door. However, lithium remains integral to current generation EV battery production and will also feature in future solid-state battery production. Share prices have rebounded and have reached a stasis of sorts.
That means it’s time to revisit Albemarle’s recent and frankly incredible growth. Sales increased by 129% reaching $2.6 billion. Net income grew by 389% reaching $1.2 billion. Albemarle isn’t a tech company like each of the ‘Magnificent 7’. Instead, it offers growth in a commodity that is fueling a booming EV industry. Lithium growth isn’t slowing anytime soon and that means Albemarle will continue to grow steadily
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post 7 Growth Stocks to Buy to go Beyond the ‘Magnificent 7’ 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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Those firms include Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG,GOOGL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA), and were up by $3.35 trillion by early June while the 93 other tech companies in the Nasdaq 100 were up a mere $635 million. Lithium growth isn’t slowing anytime soon and that means Albemarle will continue to grow steadily On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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Those firms include Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG,GOOGL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA), and were up by $3.35 trillion by early June while the 93 other tech companies in the Nasdaq 100 were up a mere $635 million. Applied Digital (APLD) Source: Shutterstock Applied Digital (NASDAQ:APLD) stock represents an early-stage data center firm that is growing rapidly and boasts impressive metrics relative to its age. Progyny produced a net gain a year ago and that net gain increased in Q1 by 255% reaching $17.678 million.
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Those firms include Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG,GOOGL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA), and were up by $3.35 trillion by early June while the 93 other tech companies in the Nasdaq 100 were up a mere $635 million. Applied Digital (APLD) Source: Shutterstock Applied Digital (NASDAQ:APLD) stock represents an early-stage data center firm that is growing rapidly and boasts impressive metrics relative to its age. Progyny produced a net gain a year ago and that net gain increased in Q1 by 255% reaching $17.678 million.
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Those firms include Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG,GOOGL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA), and were up by $3.35 trillion by early June while the 93 other tech companies in the Nasdaq 100 were up a mere $635 million. SolarEdge’s net income increased from $33 million to $138 million. The company reported $101 million in revenues during Q2 last year.
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14846.0
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2023-07-17 00:00:00 UTC
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Morgan Stanley Maintains Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/morgan-stanley-maintains-apple-aapl-overweight-recommendation-1
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nan
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Fintel reports that on July 17, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 0.81% 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 0.81% from its latest reported closing price of 190.69.
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 6400 funds or institutions reporting positions in Apple. This is a decrease of 5 owner(s) or 0.08% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.88%, an increase of 61.42%. Total shares owned by institutions decreased in the last three months by 2.30% to 9,917,493K 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 17, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.88%, an increase of 61.42%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on July 17, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.88%, an increase of 61.42%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on July 17, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.88%, an increase of 61.42%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on July 17, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.88%, an increase of 61.42%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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14847.0
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2023-07-17 00:00:00 UTC
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Stocks gain as fresh earnings awaited
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AAPL
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https://www.nasdaq.com/articles/stocks-gain-as-fresh-earnings-awaited
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, July 17 (Reuters) - U.S. stocks rose to kick off the trading week on Monday, led by gains in financial and technology shares as investors looked toward the next round of quarterly results as earnings season gathers speed.
Companies scheduled to report earnings this week include Tesla TSLA.O and Netflix NFLX.O, while more big banks in the form of Bank of America BAC.N, Morgan Stanley MS.N and Goldman Sachs GS.N are also on the docket to post results, following reports from peers such as JP Morgan JPM.N and Citigroup C.Nlast week.
Investors will be paying attention to company outlooks, with earnings for the quarter expected to decline 8.1%, according to Refinitiv data, a bigger decline than the 5.7% fall expected at the start of the month.
"Obviously, we are about to get all these (earnings) reports but it feels to me earnings are going to be good and at the end of the day, how do you value stocks – based on the earnings and dividends," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.
"By and large, the market in its totality continues to be reasonably priced if not kind of cheap. My bigger concern going forward is the Fed is going to start doing things it doesn’t need to do to win the inflation battle but will ultimately now really start to hurt the economy."
Equities have rallied recently, with the S&P 500 and Nasdaq climbing to 15-month highs as economic data has pointed to a resilient economy, with inflation cooling and a solid labor market.
The Dow Jones Industrial Average .DJI rose 92.24 points, or 0.27%, to 34,601.27, the S&P 500 .SPX gained 17.05 points, or 0.38%, to 4,522.47 and the Nasdaq Composite .IXIC added 118.64 points, or 0.84%, to 14,232.35.
In contrast, Ford Motor tumbled 5.37% after the automaker cut the price of its F-150 Lightning trucks, the latest salvo in a deepening price war among electric vehicle makers. Peers General Motors GM.N and Rivian RIVN.O lost 2.91% and 3.47%, respectively.
Apple AAPL.O advanced 1.57% after Morgan Stanley raised its target price on the iPhone maker.
Bank shares recovered from Friday's losses, with the S&P 500 bank index .SPXBK up 1.96% and the KBW regional bank index .KRX gained 2.47%.
Activision BlizzardATVI.O rose 3.70% after Microsoft MSFT.O said it has signed an agreement to keep "Call of Duty" on PlayStation following its acquisition.
In addition, Microsoft was granted a two-month pause of its appeal over Britain's block against the acquisition to give the parties more time to reach an agreement.
AT&T T.N slumped 6.71% to a 30-year low after Citi downgraded the telecom operator over risks tied to lead cables left buried in the United States. Verizon shares dropped 7.59%.
Advancing issues outnumbered declining ones on the NYSE by a 1.52-to-1 ratio; on Nasdaq, a 1.95-to-1 ratio favored advancers.
The S&P 500 posted 53 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 137 new highs and 67 new lows.
Ford cuts F-150 Lightning prices after 4 hikes https://tmsnrt.rs/43vHa7M
(Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O advanced 1.57% after Morgan Stanley raised its target price on the iPhone maker. By Chuck Mikolajczak NEW YORK, July 17 (Reuters) - U.S. stocks rose to kick off the trading week on Monday, led by gains in financial and technology shares as investors looked toward the next round of quarterly results as earnings season gathers speed. Equities have rallied recently, with the S&P 500 and Nasdaq climbing to 15-month highs as economic data has pointed to a resilient economy, with inflation cooling and a solid labor market.
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Apple AAPL.O advanced 1.57% after Morgan Stanley raised its target price on the iPhone maker. Investors will be paying attention to company outlooks, with earnings for the quarter expected to decline 8.1%, according to Refinitiv data, a bigger decline than the 5.7% fall expected at the start of the month. The S&P 500 posted 53 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 137 new highs and 67 new lows.
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Apple AAPL.O advanced 1.57% after Morgan Stanley raised its target price on the iPhone maker. By Chuck Mikolajczak NEW YORK, July 17 (Reuters) - U.S. stocks rose to kick off the trading week on Monday, led by gains in financial and technology shares as investors looked toward the next round of quarterly results as earnings season gathers speed. Companies scheduled to report earnings this week include Tesla TSLA.O and Netflix NFLX.O, while more big banks in the form of Bank of America BAC.N, Morgan Stanley MS.N and Goldman Sachs GS.N are also on the docket to post results, following reports from peers such as JP Morgan JPM.N and Citigroup C.Nlast week.
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Apple AAPL.O advanced 1.57% after Morgan Stanley raised its target price on the iPhone maker. Companies scheduled to report earnings this week include Tesla TSLA.O and Netflix NFLX.O, while more big banks in the form of Bank of America BAC.N, Morgan Stanley MS.N and Goldman Sachs GS.N are also on the docket to post results, following reports from peers such as JP Morgan JPM.N and Citigroup C.Nlast week. Equities have rallied recently, with the S&P 500 and Nasdaq climbing to 15-month highs as economic data has pointed to a resilient economy, with inflation cooling and a solid labor market.
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14848.0
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2023-07-17 00:00:00 UTC
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Unusual Put Option Trade in Apple (AAPL) Worth $1,248.75K
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AAPL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-apple-aapl-worth-%241248.75k
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nan
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nan
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On July 17, 2023 at 10:53:54 ET an unusually large $1,248.75K block of Put contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 340 day(s) (on June 21, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 1.56 sigmas above the mean, placing it in the 93.94th 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 6400 funds or institutions reporting positions in Apple. This is a decrease of 5 owner(s) or 0.08% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.88%, an increase of 61.42%. Total shares owned by institutions decreased in the last three months by 2.30% to 9,917,493K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 0.81% 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 0.81% from its latest reported closing price of 190.69.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.82% 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.
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 17, 2023 at 10:53:54 ET an unusually large $1,248.75K block of Put contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 340 day(s) (on June 21, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 1.56 sigmas above the mean, placing it in the 93.94th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.88%, an increase of 61.42%.
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On July 17, 2023 at 10:53:54 ET an unusually large $1,248.75K block of Put contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 340 day(s) (on June 21, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 1.56 sigmas above the mean, placing it in the 93.94th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.88%, an increase of 61.42%.
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On July 17, 2023 at 10:53:54 ET an unusually large $1,248.75K block of Put contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 340 day(s) (on June 21, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 1.56 sigmas above the mean, placing it in the 93.94th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.88%, an increase of 61.42%.
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On July 17, 2023 at 10:53:54 ET an unusually large $1,248.75K block of Put contracts in Apple (AAPL) was sold, with a strike price of $190.00 / share, expiring in 340 day(s) (on June 21, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 1.56 sigmas above the mean, placing it in the 93.94th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.88%, an increase of 61.42%.
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14849.0
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2023-07-17 00:00:00 UTC
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Netflix (NFLX) Expands Regional Portfolio With Upcoming K-Drama
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-expands-regional-portfolio-with-upcoming-k-drama
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nan
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nan
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Netflix NFLX announced the production of an upcoming Korean drama, The Trunk, starring Korea’s A-listers, Gong Yoo of Train to Busan and Goblin fame and Seo Hyun-jin, known for Another Miss Oh and The Beauty Inside.
The show, written by Park Eun-young of Hwarang: The Poet Warrior Youth and directed by Kim Gyu-tae of Our Blues fame, the story revolves around a marriage arrangement service, where clients are arranged into a contract marriage for a year with their most suited partner and the series of secrets that unfold after a mysterious trunk floats ashore.
Netflix is investing heavily in Korean-language content since Korea emerged as an entertainment superpower with K-pop groups like BTS, K-dramas like Squid Game and the Oscar-winning Korean movie Parasite dominating the entertainment industry globally.
Netflix has also experienced record-breaking hits from Korean series like Squid Game, All of Us Are Dead and The Glory, with the streaming giant announcing an investment of $2.5 billion in South-Korean creative content over the next four years, building on an already strong portfolio of Korean movies, series and reality shows.
Globally, Netflix has been focused on strengthening its regional content portfolio with a plethora of foreign-language shows like Kohrra (Indian), The Surrogacy (Mexican) and Sleeping Dog (German).
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Turkey’s rom-com Make Me Believe holds the #1 position in its latest Top 10 Non-English Films list with 3.8 million views. Lust Stories 2 grabbed the #3 spot with 3 million views and Spain’s Through My Window: Across the Sea firmly stands at #4 with 2.6 million views.
Although facing stiff competition from peers like Apple AAPL, Disney DIS and Amazon AMZN, Netflix seems to be expecting an increasing trend in its subscriber base with strategies like releasing more non-English content and launching the paid sharing model in four countries — Canada, New Zealand, Spain and Portugal — during the first quarter.
Netflix launched its paid-sharing model in the United States on May 23, notifying members that their accounts cannot be shared for free with users outside their residences. It also plans to launch the same model into major markets like Brazil, Britain, France and Mexico.
Encouraging 2023 for Netflix
Netflix shares have surged 49.9% year to date, outperforming the Zacks Consumer Discretionary sector’s return of 13.3%. It outperformed Apple, which has returned 46.8% and Disney, which has returned 2% on a year-to-date basis.
However, this Zacks Rank #3 (Hold) company underperformed Amazon, which has returned 60.3% on a year-to-date basis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix’s diversified content portfolio, subjected to heavy investments in the production and distribution of localized, foreign-language content, has been aiding its growth.
For the second quarter of 2023, the company forecasts earnings of $2.84 per share, indicating an almost 20% decline from the figure reported in the year-ago quarter. The Zacks Consensus Estimate stands at $2.82 per share, up by a penny over the past 30-days.
Total revenues are anticipated to be $8.242 billion, suggesting growth of 3.4% year over year or 6% on a forex-neutral basis. The consensus mark for revenues stands at $8.26 billion, indicating 3.63% growth from the figure reported in the year-ago quarter.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
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 facing stiff competition from peers like Apple AAPL, Disney DIS and Amazon AMZN, Netflix seems to be expecting an increasing trend in its subscriber base with strategies like releasing more non-English content and launching the paid sharing model in four countries — Canada, New Zealand, Spain and Portugal — during the first 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 announced the production of an upcoming Korean drama, The Trunk, starring Korea’s A-listers, Gong Yoo of Train to Busan and Goblin fame and Seo Hyun-jin, known for Another Miss Oh and The Beauty Inside.
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Although facing stiff competition from peers like Apple AAPL, Disney DIS and Amazon AMZN, Netflix seems to be expecting an increasing trend in its subscriber base with strategies like releasing more non-English content and launching the paid sharing model in four countries — Canada, New Zealand, Spain and Portugal — during the first 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. The consensus mark for revenues stands at $8.26 billion, indicating 3.63% growth from the figure reported in the year-ago quarter.
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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 facing stiff competition from peers like Apple AAPL, Disney DIS and Amazon AMZN, Netflix seems to be expecting an increasing trend in its subscriber base with strategies like releasing more non-English content and launching the paid sharing model in four countries — Canada, New Zealand, Spain and Portugal — during the first quarter. Netflix has also experienced record-breaking hits from Korean series like Squid Game, All of Us Are Dead and The Glory, with the streaming giant announcing an investment of $2.5 billion in South-Korean creative content over the next four years, building on an already strong portfolio of Korean movies, series and reality shows.
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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 facing stiff competition from peers like Apple AAPL, Disney DIS and Amazon AMZN, Netflix seems to be expecting an increasing trend in its subscriber base with strategies like releasing more non-English content and launching the paid sharing model in four countries — Canada, New Zealand, Spain and Portugal — during the first quarter. The consensus mark for revenues stands at $8.26 billion, indicating 3.63% growth from the figure reported in the year-ago quarter.
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14850.0
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2023-07-17 00:00:00 UTC
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Should You Invest in the Vanguard Information Technology ETF (VGT)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-vanguard-information-technology-etf-vgt-7
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nan
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nan
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If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Vanguard Information Technology ETF (VGT), a passively managed exchange traded fund launched on 01/26/2004.
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.
Additionally, sector ETFs offer convenient 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 7, placing it in top 44%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $53.56 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses.
The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.69%.
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 90.70% of the portfolio.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.31% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
Performance and Risk
The ETF has added about 40.86% and is up roughly 35.24% so far this year and in the past one year (as of 07/17/2023), respectively. VGT has traded between $300.84 and $450.08 during this last 52-week period.
The ETF has a beta of 1.15 and standard deviation of 26.12% for the trailing three-year period, making it a medium risk choice in the space. With about 367 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Information 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, VGT 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.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. IShares U.S. Technology ETF has $13.13 billion in assets, Technology Select Sector SPDR ETF has $51.41 billion. IYW has an expense ratio of 0.39% and XLK charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Information Technology ETF (VGT): 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
iShares U.S. Technology ETF (IYW): 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 22.31% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard Information Technology ETF (VGT): 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 iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $53.56 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report Vanguard Information Technology ETF (VGT): 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 iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.31% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index.
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Click to get this free report Vanguard Information Technology ETF (VGT): 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 iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.31% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.31% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard Information Technology ETF (VGT): 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 iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Vanguard Information Technology ETF (VGT), a passively managed exchange traded fund launched on 01/26/2004.
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14851.0
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2023-07-17 00:00:00 UTC
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Rare Stock Indicators Show the Market Will Keep Rocketing
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AAPL
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https://www.nasdaq.com/articles/rare-stock-indicators-show-the-market-will-keep-rocketing
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “Rare Stock Indicators Show the Market Will Keep Rocketing” was previously published in April 2023. It has since been updated to include the most relevant information available.
The massive 2023 stock market rally has taken a lot of folks by surprise – but not us.
We saw this huge rally coming. In late 2022, we re-structured our portfolios to prep for a massive stock market boom. As our result, our model portfolios are soaring this year! One has rallied as much as 60% this year alone.
Why were so bullish?
A lot of reasons. We thought inflation would crash (it has), the economy would restabilize (it has), and the Fed would end its rate-hiking campaign (it has).
But one of the most important reasons we grew increasingly bullish on stocks in early 2023 was because the market did something it has never done before. And that told us that a massive stock market boom was coming.
The Triple Barrel Buy Signal
On the second Thursday of the year – Jan. 12 – the stock market fired off an unprecedented “Triple Barrel” buy signal.
That is, on that day, three major, ultra-rare, and ultra-predictive stock market breadth thrust signals were all triggered – the Breakaway Momentum, Whaley Breadth Thrust, and Triple 70 Thrust indicators.
The Breakaway Momentum indicator is triggered when the number of 10-day advancing stocks in the market exceeds the number of 10-day declining stocks by about 2-to-1. This is very rare and tends to only happen when bear markets are ending and bull markets are starting.
The Whaley Breadth Thrust indicator is triggered when the number of five-day advancing stocks in the market exceeds the number of five-day declining stocks by about 3-to-1. This, too, is very rare and tends to only happen when bear markets are ending and bull markets are starting.
And the Triple 70 Thrust indicator is triggered when the percentage of rising stocks in the market exceeds 70% for three consecutive days. Likewise, this is also very rare. And it tends to only happen when bear markets are ending and new bull markets are starting.
All three ultra-rare, ultra-predictive “bear market ending” technical indicators flashed on the same day in the middle of January.
Triple-Barrel Stock Indicators Preempt Mega Rallies
That’s the first time ever that all three have flashed on the same day.
In the past, we’ve only had “Double Barrel” buy signals – instances where two signals were triggered on the same day. That has happened just seven times since World War II.
In all seven instances, the stock market was higher three, six, nine, and 12 months later.
In other words, in January of this year, the stock market triggered an ultra-rare technical buy signal that has a 100% track record of calling the end of bear markets and the start of new bull markets.
We don’t argue with data that compelling.
Therefore, when the stock market flashed this signal in January, we doubled down on our 2023 bull thesis. And we told subscribers that a huge bull market breakout was on the way.
That breakout has arrived.
It won’t stop anytime soon.
Following the Historical Pattern
Look at the chart above. Whenever we get a Double or Triple Barrel Buy Signal, the stock rally doesn’t just die six months later. It lasts for a full 12 months, and often, it lasts for years.
This breakout rally looks like it will last for years.
Specifically, we’re observing strong parallels between the AI stock breakout of 2023 and the internet stock breakout of 1991. We believe those parallels will persist for the foreseeable future.
Therefore, we think we are due for a tech stock boom throughout the 2020s that will look a lot like the dot-com boom of the 1990s – which, as history proves, was the biggest tech bull market of all time.
Investors made fortunes in the dot-com boom by investing in internet stocks.
And they’ll make fortunes in this stock market boom by investing in AI stocks.
The Final Word on These Powerful Stock Indicators
That’s why I’m going to tell you all about a loophole I discovered that will allow you to invest in 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. Just last week, it announced huge partnerships to power AI programs at both Intuit (INTU) and Moody’s (MCO).
I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest.
And that’s why you need to hear about this loophole today. It 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 Rare Stock Indicators Show the Market Will Keep Rocketing appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s — this is an opportunity you can’t afford to miss. And the Triple 70 Thrust indicator is triggered when the percentage of rising stocks in the market exceeds 70% for three consecutive days. The Final Word on These Powerful Stock Indicators That’s why I’m going to tell you all about a loophole I discovered that will allow you to invest in the company that started this whole AI Boom – OpenAI, the creator of ChatGPT.
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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. That is, on that day, three major, ultra-rare, and ultra-predictive stock market breadth thrust signals were all triggered – the Breakaway Momentum, Whaley Breadth Thrust, and Triple 70 Thrust indicators. The Breakaway Momentum indicator is triggered when the number of 10-day advancing stocks in the market exceeds the number of 10-day declining stocks by about 2-to-1.
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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 Editor’s note: “Rare Stock Indicators Show the Market Will Keep Rocketing” was previously published in April 2023. The Whaley Breadth Thrust indicator is triggered when the number of five-day advancing stocks in the market exceeds the number of five-day declining stocks by about 3-to-1.
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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. Whenever we get a Double or Triple Barrel Buy Signal, the stock rally doesn’t just die six months later. This breakout rally looks like it will last for years.
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14852.0
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2023-07-17 00:00:00 UTC
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Bear of the Day: GoPro, Inc. (GPRO)
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AAPL
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https://www.nasdaq.com/articles/bear-of-the-day%3A-gopro-inc.-gpro
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nan
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nan
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GoPro, Inc. (GPRO) stock skyrocketed for several months following its 2014 IPO, only to tumble for years, finally bottoming during the initial Covid-crash. The action-focused camera maker has once again seen its stock fall after a solid run as Wall Street reacts negatively to its fading earnings outlook and lack of sustainable sales growth.
A Tough-to-Capture Market
GoPro makes small, mountable cameras that shoot both videos and photos. GPRO’s offerings grew popular within the action sports world, from the ski slopes to mountain bike trails, and beyond. GoPro’s various small high-resolution cameras are waterproof, with impressive stabilization features and much more.
All in all, GoPro cameras appeal to people taking pictures and videos in situations where their smartphones won’t cut it. But the problem for GoPro is that its addressable market appears not to be growing much, and it was always somewhat niche to begin with. Worse yet, Apple (AAPL) and other smartphones feature better cameras than ever.
GoPro posted around $1.6 billion in sales in 2015. Unfortunately, it has been nearly all downhill from there for GPRO, with its sales falling YoY in five out of the past seven years. The company did grow its sales by roughly 30% in FY21 as consumers spent heavily.
Image Source: Zacks Investment Research
GoPro’s revenue then fell around 6% in 2022 and it is projected to come in roughly flat in 2023. On top of that, its adjusted earnings tumbled around 48% last year and they are projected to fall another 72% to $0.13 a share in FY23, based on current Zacks estimates.
That said, GPRO’s sales are expected to bounce back in FY24 to the tune of 12% growth. Plus, its adjusted earnings are projected to rebound in a huge way as well.
Image Source: Zacks Investment Research
Bottom Line
Unfortunately for GoPro, its earnings outlook has already tanked as the economy normalized following the Covid chaos. The company’s adjusted EPS revisions continue to trend in the wrong direction. Plus, its most accurate/most recent estimate for FY24 came in 25% below the current consensus.
GoPro’s downward earnings revisions trends help it land a Zacks Rank #5 (Strong Sell) right now. GoPro also continues to face tons of competition from improving smartphones like Apple’s iPhone and beyond.
Any investors interested in trying to buy GPRO might want to wait until the company releases its Q2 results on August 3.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
GoPro, Inc. (GPRO) : 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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Worse yet, Apple (AAPL) and other smartphones feature better cameras than ever. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report GoPro, Inc. (GPRO) : Free Stock Analysis Report To read this article on Zacks.com click here. The action-focused camera maker has once again seen its stock fall after a solid run as Wall Street reacts negatively to its fading earnings outlook and lack of sustainable sales growth.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report GoPro, Inc. (GPRO) : Free Stock Analysis Report To read this article on Zacks.com click here. Worse yet, Apple (AAPL) and other smartphones feature better cameras than ever. Image Source: Zacks Investment Research GoPro’s revenue then fell around 6% in 2022 and it is projected to come in roughly flat in 2023.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report GoPro, Inc. (GPRO) : Free Stock Analysis Report To read this article on Zacks.com click here. Worse yet, Apple (AAPL) and other smartphones feature better cameras than ever. The action-focused camera maker has once again seen its stock fall after a solid run as Wall Street reacts negatively to its fading earnings outlook and lack of sustainable sales growth.
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Worse yet, Apple (AAPL) and other smartphones feature better cameras than ever. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report GoPro, Inc. (GPRO) : Free Stock Analysis Report To read this article on Zacks.com click here. Unfortunately, it has been nearly all downhill from there for GPRO, with its sales falling YoY in five out of the past seven years.
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14853.0
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2023-07-17 00:00:00 UTC
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US STOCKS-Wall St inches up as investors await more earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-inches-up-as-investors-await-more-earnings
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By Bansari Mayur Kamdar and Johann M Cherian
July 17 (Reuters) - The S&P 500 and the Dow edged up on Monday, as investors awaited quarterly results from industry heavyweights through the week, while Apple and Tesla boosted the tech-heavy Nasdaq.
Second-quarter earnings are gathering momentum, with Tesla TSLA.O due to report on Wednesday, while Bank of America BAC.N, Morgan Stanley MS.N, Goldman Sachs GS.N and Netflix NFLX.O are also lined up through the rest of the week.
Of the 30 companies in the S&P 500 that have reported earnings as of Friday, 80% beat analyst expectations, according to Refinitiv data.
Supporting Nasdaq .IXIC, Apple AAPL.O climbed 1.1% after Morgan Stanley raised its target price on the iPhone maker.
TeslaTSLA.O gained 3.2% after the company said on Sunday it had built its first Cybertruck, after two years of delays.
Rival Ford Motor F.Nshed 4.2% after the car maker slashed the prices of its popular electric F-150 Lightning trucks, with the base variant now costing about 17% less.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was up 20.57 points, or 0.06%, at 34,529.60, the S&P 500 .SPX was up 2.83 points, or 0.06%, at 4,508.25, and the Nasdaq Composite .IXIC was up 33.78 points, or 0.24%, at 14,147.48.
Seven of the 11 major S&P 500 sectors declined in early trading, led by utilities .SPLRCU, which shed 0.6%.
The three major U.S. indexes ended last week over 2% higher after consumer prices and producer prices data provided further evidence that the economy had entered a disinflation phase, stoking hopes that the Federal Reserve will soon end its monetary policy tightening.
On Friday, JPMorgan ChaseJPM.N, Wells FargoWFC.N and CitigroupC.N showed big U.S. banks got a profit boost from higher rates and painted a picture of a resilient economy, with sparks of hope in some businesses like deal-making that have been in the dumps of late.
The strong opening rally in lenders, however, quickly fizzled out with most financials ending Friday's session lower as investors feared things were as good as they would get for a while.
"The market wants more information from earnings to see whether or not the strength in the last couple of months is justified," said Thomas Hayes, chairman at Great Hill Capital LLC.
Activision BlizzardATVI.O rose 3.0% after Microsoft MSFT.O said it has signed an agreement to keep "Call of Duty" on PlayStation following its acquisition.
Also helping the stock, a U.S. appeals court on Friday rejected the Federal Trade Commission's request to pause Microsoft's $69 billion purchase.
Lackluster Chinese economic data weighed on investors' minds on Monday as the world's second largest economy grew at a frail pace in the second quarter.
During the week, investors also await retail sales and new homes figures for June.
Declining issues outnumbered advancers for a 1.20-to-1 ratio on the NYSE and a 1.26-to-1 ratio on the Nasdaq.
The S&P index recorded 20 new 52-week highs and four new lows, while the Nasdaq recorded 50 new highs and 33 new lows.
Megacaps lead rally on tech-heavy Nasdaq https://tmsnrt.rs/3rsBSwl
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Nivedita Bhattacharjee and Maju Samuel)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Supporting Nasdaq .IXIC, Apple AAPL.O climbed 1.1% after Morgan Stanley raised its target price on the iPhone maker. By Bansari Mayur Kamdar and Johann M Cherian July 17 (Reuters) - The S&P 500 and the Dow edged up on Monday, as investors awaited quarterly results from industry heavyweights through the week, while Apple and Tesla boosted the tech-heavy Nasdaq. Second-quarter earnings are gathering momentum, with Tesla TSLA.O due to report on Wednesday, while Bank of America BAC.N, Morgan Stanley MS.N, Goldman Sachs GS.N and Netflix NFLX.O are also lined up through the rest of the week.
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Supporting Nasdaq .IXIC, Apple AAPL.O climbed 1.1% after Morgan Stanley raised its target price on the iPhone maker. By Bansari Mayur Kamdar and Johann M Cherian July 17 (Reuters) - The S&P 500 and the Dow edged up on Monday, as investors awaited quarterly results from industry heavyweights through the week, while Apple and Tesla boosted the tech-heavy Nasdaq. The three major U.S. indexes ended last week over 2% higher after consumer prices and producer prices data provided further evidence that the economy had entered a disinflation phase, stoking hopes that the Federal Reserve will soon end its monetary policy tightening.
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Supporting Nasdaq .IXIC, Apple AAPL.O climbed 1.1% after Morgan Stanley raised its target price on the iPhone maker. By Bansari Mayur Kamdar and Johann M Cherian July 17 (Reuters) - The S&P 500 and the Dow edged up on Monday, as investors awaited quarterly results from industry heavyweights through the week, while Apple and Tesla boosted the tech-heavy Nasdaq. The three major U.S. indexes ended last week over 2% higher after consumer prices and producer prices data provided further evidence that the economy had entered a disinflation phase, stoking hopes that the Federal Reserve will soon end its monetary policy tightening.
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Supporting Nasdaq .IXIC, Apple AAPL.O climbed 1.1% after Morgan Stanley raised its target price on the iPhone maker. By Bansari Mayur Kamdar and Johann M Cherian July 17 (Reuters) - The S&P 500 and the Dow edged up on Monday, as investors awaited quarterly results from industry heavyweights through the week, while Apple and Tesla boosted the tech-heavy Nasdaq. Of the 30 companies in the S&P 500 that have reported earnings as of Friday, 80% beat analyst expectations, according to Refinitiv data.
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14854.0
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2023-07-17 00:00:00 UTC
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Should Invesco Dynamic Large Cap Growth ETF (PWB) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-dynamic-large-cap-growth-etf-pwb-be-on-your-investing-radar-8
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco Dynamic Large Cap Growth ETF (PWB), a passively managed exchange traded fund launched on 03/03/2005.
The fund is sponsored by Invesco. It has amassed assets over $654.51 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.55%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.45%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 37.30% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Salesforce Inc (CRM) accounts for about 3.87% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).
The top 10 holdings account for about 34.92% of total assets under management.
Performance and Risk
PWB seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses. The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
The ETF return is roughly 19.48% so far this year and it's up approximately 20.66% in the last one year (as of 07/17/2023). In the past 52-week period, it has traded between $56.26 and $71.22.
The ETF has a beta of 1.01 and standard deviation of 22.63% for the trailing three-year period, making it a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic 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, PWB is an outstanding 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 $94.71 billion in assets, Invesco QQQ has $210.35 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : 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, Salesforce Inc (CRM) accounts for about 3.87% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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 $654.51 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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, Salesforce Inc (CRM) accounts for about 3.87% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco Dynamic Large Cap Growth ETF (PWB), a passively managed exchange traded fund launched on 03/03/2005.
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Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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, Salesforce Inc (CRM) accounts for about 3.87% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco Dynamic Large Cap Growth ETF (PWB), a passively managed exchange traded fund launched on 03/03/2005.
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Looking at individual holdings, Salesforce Inc (CRM) accounts for about 3.87% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco Dynamic Large Cap Growth ETF (PWB), a passively managed exchange traded fund launched on 03/03/2005.
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14855.0
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2023-07-17 00:00:00 UTC
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Meet the 2 Warren Buffett Holdings That Would Have Made Investors Money 104 Out of 104 Times Since 1900 (With a Catch)
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https://www.nasdaq.com/articles/meet-the-2-warren-buffett-holdings-that-would-have-made-investors-money-104-out-of-104
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nan
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When Warren Buffett speaks, Wall Street and investors tend to pay close attention. That's because the Oracle of Omaha has led Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) Class A Shares (BRK.A) to an aggregate return of 4,242,338%, through the closing bell on July 12, 2023, since becoming CEO in the mid-1960s. It's precisely why attendance at Berkshire Hathaway's annual shareholder meetings grew from a few dozen people in 1973 to well over 30,000 shareholders and investors this year.
What's particularly noteworthy about Warren Buffett is that he's not afraid to share what factors he looks for in long-term investments.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
What does Warren Buffett look for in a long-term investment?
For instance, the Oracle of Omaha prefers putting Berkshire Hathaway's money to work in businesses that have well-defined, sustainable competitive advantages. Tech stock Apple (NASDAQ: AAPL), which Buffett referred to as "a better business than any we own" during the latest annual shareholder meeting, is the ideal example of a company with a sustained moat.
Although Apple faces plenty of competition from smartphone developers, it's been riding its first-mover advantages in the smartphone market for well over a decade. Since introducing a 5G-capable version of the iPhone in the fourth quarter of 2020, Apple has consistently accounted for around 50% (if not more) of U.S. domestic smartphone share.
The Oracle of Omaha also appreciates businesses with top-notch capital-return programs. Apple has repurchased approximately $586 billion worth of its common stock over the trailing decade. Meanwhile, energy stock Chevron (NYSE: CVX) has raised its base annual dividend for 36 consecutive years, and its board recently OK'd an up to $75 billion share repurchase program. Buffett is a huge fan of buyback programs that reduce a company's outstanding share count which, over time, gives existing shareholders a larger stake in the business.
Additionally, Warren Buffett gravitates to cyclical sectors, industries, and companies. Cyclical stocks ebb and flow with the overall health of the U.S. or global economy. Buffett and his investing team realize that recessions are a normal and inevitable part of the long-term economic cycle. Rather than foolishly trying to time when these downturns will occur, he and his team have packed Berkshire's portfolio and owned assets with cyclical businesses that can take advantage of periods of expansion, which statistically last a lot longer than recessions.
Lastly, Warren Buffett favors portfolio concentration. Even though the Oracle of Omaha and his investing lieutenants, Ted Weschler and Todd Combs, are overseeing more than 50 securities in Berkshire Hathaway's portfolio at the moment, just over a dozen holdings account for 90% of the company's $372 billion investment portfolio. In other words, Warren Buffett strongly believes in putting an outsized amount of capital to work in his perceived-to-be "best" ideas.
Image source: Getty Images.
These two Warren Buffett holdings have never failed investors -- but there's a catch
Riding Warren Buffett's coattails has been a moneymaking strategy for new and tenured investors alike for decades.
But not all of Warren Buffett's holdings are created equally. Two of Berkshire Hathaway's investments have been flawless moneymakers since the start of 1900 -- but come with a catch. These two investments in question being the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO). Both of these exchange-traded funds (ETFs) attempt to mirror the performance of the benchmark S&P 500 (SNPINDEX: ^GSPC).
Every year, market analytics company Crestmont Research refreshes its dataset of what a hypothetical investor would have generated in total returns, including dividends, if they'd purchased an S&P 500 tracking index and held that position for 20 years.
The interesting thing about this dataset is that Crestmont was able to back-test its rolling 20-year total return data to 1900. Some of you might be scratching your head given that the S&P didn't come into existence until 1923, and didn't contain 500 components until 1957. However, since other major stock indexes contained similar components, Crestmont was able to trace these hypothetical returns all the way back to 1900, providing it with 104 rolling 20-year periods of total return data (1919-2022).
^SPX data by YCharts.
Crestmont's dataset showed that all 104 ending years produced a positive total return. In other words, if an investor had hypothetically purchased an S&P 500 tracking index at any point since the beginning of 1900 and (key point!) held that position for 20 years (this is the aforementioned catch), they made money every single time.
Wall Street doesn't offer much in the way of guarantees, which is what makes a 104 out of 104 performance all the more impressive. It's also why the Oracle of Omaha strongly suggests everyday investors buy index funds, such as the SPDR S&P 500 ETF Trust or Vanguard S&P 500 ETF, to grow their wealth.
While it's true that neither the S&P 500 ETF Trust nor Vanguard S&P 500 ETF have been around since the beginning of 1900, the index they mirror has a flawless track record of making patient investors money for more than a century. If history continues to repeat itself, investors willing to buy and hold these ETFs for 20 years (or longer) should have no trouble building wealth on Wall Street.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF. 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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Tech stock Apple (NASDAQ: AAPL), which Buffett referred to as "a better business than any we own" during the latest annual shareholder meeting, is the ideal example of a company with a sustained moat. Meanwhile, energy stock Chevron (NYSE: CVX) has raised its base annual dividend for 36 consecutive years, and its board recently OK'd an up to $75 billion share repurchase program. Rather than foolishly trying to time when these downturns will occur, he and his team have packed Berkshire's portfolio and owned assets with cyclical businesses that can take advantage of periods of expansion, which statistically last a lot longer than recessions.
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Tech stock Apple (NASDAQ: AAPL), which Buffett referred to as "a better business than any we own" during the latest annual shareholder meeting, is the ideal example of a company with a sustained moat. For instance, the Oracle of Omaha prefers putting Berkshire Hathaway's money to work in businesses that have well-defined, sustainable competitive advantages. It's also why the Oracle of Omaha strongly suggests everyday investors buy index funds, such as the SPDR S&P 500 ETF Trust or Vanguard S&P 500 ETF, to grow their wealth.
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Tech stock Apple (NASDAQ: AAPL), which Buffett referred to as "a better business than any we own" during the latest annual shareholder meeting, is the ideal example of a company with a sustained moat. These two Warren Buffett holdings have never failed investors -- but there's a catch Riding Warren Buffett's coattails has been a moneymaking strategy for new and tenured investors alike for decades. Every year, market analytics company Crestmont Research refreshes its dataset of what a hypothetical investor would have generated in total returns, including dividends, if they'd purchased an S&P 500 tracking index and held that position for 20 years.
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Tech stock Apple (NASDAQ: AAPL), which Buffett referred to as "a better business than any we own" during the latest annual shareholder meeting, is the ideal example of a company with a sustained moat. Berkshire Hathaway CEO Warren Buffett. What does Warren Buffett look for in a long-term investment?
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14856.0
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2023-07-17 00:00:00 UTC
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QQQ ETF: Should Investors Worry as the Nasdaq-100 Index Gets a Makeover?
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https://www.nasdaq.com/articles/qqq-etf%3A-should-investors-worry-as-the-nasdaq-100-index-gets-a-makeover
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The Nasdaq-100 index (NDX) will undergo a “Special Rebalance” before the market opens on Monday, July 24, 2023. In simple terms, rebalancing means that the index will readjust the weight of its components. Several ETFs, including the famous Invesco QQQ Trust (QQQ) ETF (Exchange-Traded fund) that have the NDX index as their benchmark, will be impacted as they are required to make adjustments to their portfolios. However, investors shouldn’t worry much as the move doesn’t include removing or adding any securities.
The rebalancing intends to lower the Nasdaq-100 Index’s concentration in a handful of mega-cap stocks. For instance, the buzz around Generative AI (Artificial Intelligence) and overall buying in shares of large technology companies, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) have increased their weightage in the Nasdaq-100 Index.
Thus, through rebalancing, the index will be redistributing the weight of these large companies to lower overconcentration risk. Meanwhile, ETFs will have to sell some of their holdings to realign their portfolio and reallocate these funds to other stocks in the portfolio.
Is QQQ a Buy or a Sell?
The announcement of the rebalancing of the Nasdaq-100 Index didn’t have any negative impact on QQQ’s price. The ETF inched up around 3.5% in the past five trading days. Overall, the ETF is up about 43% on a year-to-date basis.
The QQQ ETF has an Outperform Smart Score of eight on TipRanks, suggesting it has the potential to outperform the broader market averages. Moreover, per the recommendations of 1,732 analysts giving stock forecasts for the holdings of QQQ, the 12-month average Invesco QQQ Trust ETF price target of $397.12 implies 4.76% upside potential from current levels. Also, the ETF carries a Moderate Buy consensus rating on TipRanks.
Among these analysts (providing ratings on its holdings), 66.51% have given a Buy rating, 29.73% have assigned a Hold rating, and 3.75% have given a Sell rating.
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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For instance, the buzz around Generative AI (Artificial Intelligence) and overall buying in shares of large technology companies, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) have increased their weightage in the Nasdaq-100 Index. The Nasdaq-100 index (NDX) will undergo a “Special Rebalance” before the market opens on Monday, July 24, 2023. However, investors shouldn’t worry much as the move doesn’t include removing or adding any securities.
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For instance, the buzz around Generative AI (Artificial Intelligence) and overall buying in shares of large technology companies, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) have increased their weightage in the Nasdaq-100 Index. Several ETFs, including the famous Invesco QQQ Trust (QQQ) ETF (Exchange-Traded fund) that have the NDX index as their benchmark, will be impacted as they are required to make adjustments to their portfolios. Moreover, per the recommendations of 1,732 analysts giving stock forecasts for the holdings of QQQ, the 12-month average Invesco QQQ Trust ETF price target of $397.12 implies 4.76% upside potential from current levels.
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For instance, the buzz around Generative AI (Artificial Intelligence) and overall buying in shares of large technology companies, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) have increased their weightage in the Nasdaq-100 Index. Several ETFs, including the famous Invesco QQQ Trust (QQQ) ETF (Exchange-Traded fund) that have the NDX index as their benchmark, will be impacted as they are required to make adjustments to their portfolios. Moreover, per the recommendations of 1,732 analysts giving stock forecasts for the holdings of QQQ, the 12-month average Invesco QQQ Trust ETF price target of $397.12 implies 4.76% upside potential from current levels.
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For instance, the buzz around Generative AI (Artificial Intelligence) and overall buying in shares of large technology companies, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) have increased their weightage in the Nasdaq-100 Index. Thus, through rebalancing, the index will be redistributing the weight of these large companies to lower overconcentration risk. Is QQQ a Buy or a Sell?
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14857.0
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2023-07-17 00:00:00 UTC
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Preparing for Upcoming QQQ Changes
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https://www.nasdaq.com/articles/preparing-for-upcoming-qqq-changes
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nan
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In what amounts to some fun for indexing and something advisors and investors should be aware of, Nasdaq recently announced it is rolling out a special rebalance of the Nasdaq-100 Index (NDX).
That’s relevant to advisors and investors engaged with the Invesco QQQ (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) – both of which follow NDX. The rebalancing act is also noteworthy because NDX is usually rebalanced just once a year, in December.
The upcoming special rebalance is prompted by Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other tech darlings taking on usually large percentages of NDX. At the start of this month, the six largest holdings in QQQ and QQQM combined for about half of each ETF’s roster. This sparked concerns about concentration risk. Nasdaq is moving to ameliorate those worries, and the changes in QQQ and QQQM will take effect on July 24.
What Investors Should Expect
For the moment, Nasdaq hasn’t unveiled details on what the NDX rebalancing will look like. However, it’s a safe bet it will result in lower allocations to the likes of Apple, Microsoft, Nvidia (NASDAQ: NVDA), and other scorching hot mega-cap growth names.
“We expect the weights of the Magnificent Seven to drop, but not by an extreme amount. The percentage of assets in the index’s top 10 holdings has consistently perched above 50%,” noted Morningstar analyst Bryan Armour. “So, the adjustments are not expected to change the current level of 59% significantly. Nasdaq will publish the planned changes a week ahead of the rebalance, which we will update here when available.”
Overall, the changes in QQQ and QQQM aren’t likely to be monumental. They certainly won’t be cause for alarm among investors. If anything, the upcoming NDX adjustments will further highlight the advantages of the ETF wrapper over actively managed mutual funds.
“Mutual funds may be especially susceptible to capital gains distributions. An ETF like QQQ is among the most heavily traded securities in the United States, which results in plenty of opportunities for it to utilize in-kind creations and redemptions to purge low tax-basis securities, making capital gains distributions unlikely,” added Armour.
When NDX rebalances, billions of dollars of QQQ and QQQM member firms will be bought and sold. However, investors in those ETFs won’t be getting stuck with capital gains distributions. That’s a good thing. Plus, as Armour noted, downside in the names being sold should be limited because those are highly liquid stocks.
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 upcoming special rebalance is prompted by Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other tech darlings taking on usually large percentages of NDX. However, it’s a safe bet it will result in lower allocations to the likes of Apple, Microsoft, Nvidia (NASDAQ: NVDA), and other scorching hot mega-cap growth names. The percentage of assets in the index’s top 10 holdings has consistently perched above 50%,” noted Morningstar analyst Bryan Armour.
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The upcoming special rebalance is prompted by Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other tech darlings taking on usually large percentages of NDX. That’s relevant to advisors and investors engaged with the Invesco QQQ (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) – both of which follow NDX. An ETF like QQQ is among the most heavily traded securities in the United States, which results in plenty of opportunities for it to utilize in-kind creations and redemptions to purge low tax-basis securities, making capital gains distributions unlikely,” added Armour.
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The upcoming special rebalance is prompted by Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other tech darlings taking on usually large percentages of NDX. In what amounts to some fun for indexing and something advisors and investors should be aware of, Nasdaq recently announced it is rolling out a special rebalance of the Nasdaq-100 Index (NDX). That’s relevant to advisors and investors engaged with the Invesco QQQ (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) – both of which follow NDX.
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The upcoming special rebalance is prompted by Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other tech darlings taking on usually large percentages of NDX. That’s relevant to advisors and investors engaged with the Invesco QQQ (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) – both of which follow NDX. “Mutual funds may be especially susceptible to capital gains distributions.
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14858.0
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2023-07-17 00:00:00 UTC
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2 Cathie Wood Stocks to Buy in July 2023 and 1 to Sell
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AAPL
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https://www.nasdaq.com/articles/2-cathie-wood-stocks-to-buy-in-july-2023-and-1-to-sell
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Cathie Wood of ARK Invest is among the most well-known growth-oriented fund managers. Her flagship ARK Innovation ETF (ARKK) lost over two-thirds of value last year. However, year to date (YTD) the ETF has gained 55% and is outperforming the Nasdaq Composite ($NASX) by a wide margin in 2023.
Despite the rise in 2023, ARKK is still well below its February 2021 peak. Almost all of the holdings of the ETF are growth names and many are loss-making companies – the latter has especially been out of favor with investors amid tightening credit markets.
www.barchart.com
Fed’s rate hikes led to a turmoil in growth stocks and Wood’s favorite names plummeted. However, the US CPI rose at an annualized pace of 3% in June – down 6.1 percentage points from the peak in the corresponding month last year.
The Fed’s June dot pot showed another 50-basis point rate hike in 2023 and markets are almost unanimous that Fed would raise rates by 25 basis points later this month. However, the CME FedWatch Tool shows that investors believe that interest rates in 2024 will be lower than what they currently are.
Put differently, traders believe that Fed will stop raising rates later this year and cut them next year amid a slowing economy. If Fed indeed embarks on monetary policy easing, growth names including Cathie Wood stocks might see better days ahead. I believe Teladoc Health (TDOC) and Meta Platforms (META) are two Cathie Wood stocks that look like a buy now.
Cathie Wood has warmed up to Meta Platforms stock
Meta Platforms stock hit a 52-week high last week and with gains of 156%, it is the second-best performing S&P 500 (SPY) stock this year. Wood has been gradually buying Meta stock over the last month making it the first time since 2021 when she bought shares of the Mark Zuckerberg-led company.
Zuckerburg has described 2023 as the “year of efficiency” for Meta and looking at the price action, markets have welcomed the company's cost-cut actions. Meta now expects its total expenses in 2023 to be between $86 billion to $92 billion – which is significantly below the $94 billion to $100 billion that it forecast originally.
Meta’s cost-cut efforts would help it boost its earnings and analysts expect its earnings to rise 21.8% and 25.6% respectively in 2023 and 2024 – which is over twice the expected revenue growth in both these years.
www.barchart.com
It has also launched Threads which would compete with Elon Musk’s Twitter and the platform has hit the milestone of 150 million users within a week. To put that in perspective, it took ChatGPT around 2 months to reach 100 million users Incidentally, Wood bought more Meta shares after the launch of Threads, and ARKK’s stake in the company is now valued at around $50 million.
While there are risks associated with Meta, I believe it is still one of the Wood stocks worth buying now.
Teladoc Health Stock Looks a Good Buy
Teladoc Health was among the so-called stay-at-home winners and like other companies in the once coveted group, it is also witnessing a growth slowdown.
Take, for instance, its revenues rose 98% in 2020 and 85.8% in 2021. However, in 2022, its revenues rose “only” 18.4% which is below the 32.4% growth that it reported in 2019 – the last year before the COVID-19 pandemic.
www.barchart.com
The company’s growth is expected to slow down further this year and it has forecast a topline growth between 7%-11% for 2023.
However, I believe that the healthcare market hasn’t still been disrupted by digitization, unlike many other industries. It is no wonder then that tech giants like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) have made forays into healthcare.
Earlier this year, Teladoc Health launched an integrated app and during the Q1 2023earnings callit said that the app has higher user engagement and multiproduct utilization.
While Teladoc Health posted a massive loss of $13.5 billion in 2022 it was on account of impairment charge as it wrote down the value of its assets in all four quarters last year. The company expects to post positive free cash flows of $100 million in 2023 which looks encouraging.
In terms of valuation, TDOC looks reasonably priced at 1.56x its forward revenues. Wall Street analysts have a Moderate Buy rating on TDOC stock and its mean target price of $31.37 is 26.6% above its current market price.
Coinbase is 1 Cathie Wood stock to sell after the rally
Wood is among the biggest backers of cryptocurrencies and blockchain and ARK Investment Management holds a 6.5% stake in cryptocurrency exchange Coinbase (COIN) – which makes it the second biggest stockholder.
Wall Street looks bearish on the stock though and analysts rate COIN stock a Hold:
www.barchart.com
Of the 22 analysts that cover COIN, 5 rate it a Strong Buy, 1 a Moderate Buy, 9 a Hold, 2 a Moderate Sell, and 5 a Strong Sell.
Coinbase stock has more than tripled this year and the rally gained traction last week after a US federal judge ruled in Ripple’s (XRPUSDT) favor and said that the XRP token is not a security.
Coinbase believes that the court ruling strengthens its case as it is also involved in a legal battle with the SEC which accuses it of “operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency.”
Speaking with CNBC, Coinbase’s chief legal officer Paul Grewal said, “I think we will win. Now, I thought we would win before this decision. We think this decision has only further strengthened the case.”
However, I believe there is still too much regulatory uncertainty associated with cryptocurrency regulation given the SEC’s crackdown and would avoid COIN stock at least at these price levels as it now trades at 9x its next-12-month sales which looks on the higher side.
On the date of publication, Mohit Oberoi had a position in: ARKK , META , TDOC , AMZN , GOOG , AAPL , MSFT , QQQ , SPY . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the date of publication, Mohit Oberoi had a position in: ARKK , META , TDOC , AMZN , GOOG , AAPL , MSFT , QQQ , SPY . It is no wonder then that tech giants like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) have made forays into healthcare. Coinbase stock has more than tripled this year and the rally gained traction last week after a US federal judge ruled in Ripple’s (XRPUSDT) favor and said that the XRP token is not a security.
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On the date of publication, Mohit Oberoi had a position in: ARKK , META , TDOC , AMZN , GOOG , AAPL , MSFT , QQQ , SPY . It is no wonder then that tech giants like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) have made forays into healthcare. Coinbase is 1 Cathie Wood stock to sell after the rally Wood is among the biggest backers of cryptocurrencies and blockchain and ARK Investment Management holds a 6.5% stake in cryptocurrency exchange Coinbase (COIN) – which makes it the second biggest stockholder.
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It is no wonder then that tech giants like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) have made forays into healthcare. On the date of publication, Mohit Oberoi had a position in: ARKK , META , TDOC , AMZN , GOOG , AAPL , MSFT , QQQ , SPY . I believe Teladoc Health (TDOC) and Meta Platforms (META) are two Cathie Wood stocks that look like a buy now.
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It is no wonder then that tech giants like Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) have made forays into healthcare. On the date of publication, Mohit Oberoi had a position in: ARKK , META , TDOC , AMZN , GOOG , AAPL , MSFT , QQQ , SPY . I believe Teladoc Health (TDOC) and Meta Platforms (META) are two Cathie Wood stocks that look like a buy now.
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14859.0
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2023-07-17 00:00:00 UTC
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Investors Like Adobe's Potential To Leverage Generative AI
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AAPL
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https://www.nasdaq.com/articles/investors-like-adobes-potential-to-leverage-generative-ai
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nan
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nan
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A few decades ago, a comedian named Murray Langston made a splash with an alter ego he dubbed “the unknown comic.” Langson was funny, but nobody knew who he was, since he performed with a bag over his head.
You could think of Adobe Inc. (NASDAQ: ADBE) is the unknown tech that’s one of the most heavily weighted Nasdaq 100 stocks.
However, the stock has been on the rise, due to, you guessed it: The company’s growing investments and capabilities of leveraging generative AI.
Beyond The Magnificent 7
While the so-called “Magnificent 7,” including Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA), Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META) have been leading the market, even to the point of CNBC’s Jim Cramer telling his viewers to continue holding those stocks; investors would be wise to keep an eye on other big growth names, as well.
Adobe is well known for its content-creation and business software but not so well known as a stock these days, despite being a mega-cap with the 12th largest weighting in the Nasdaq 100.
Is ESG Investing Dead? Fund Outflows Signal Tough Times
If you do any kind of online content creation or office work, you’ve undoubtedly run across Adobe, whose products include Photoshop, Illustrator, and Acrobat. Its video editing software, Premiere Pro, is widely used by YouTubers and other creators.
Adobe stock has posted the following returns:
1 month: 6.90%
3 months: 37.17%
Year-to-date: 50.76%
The company’s earnings growth gradually accelerated over the past three quarters, from 9% to 17%. Revenue grew 10% in the most recent quarter, to $4.816 billion, the highest quarterly revenue in the company’s history.
Its business is organized into three reportable segments:
Digital Media
Digital Experience
Publishing and Advertising
The first two business units are focused on cloud-based technologies for video editing and design.
Publishing and advertising is home to legacy products, such as Adobe PostScript, which enables accurate printing and rendering of complex graphics, fonts, and documents on various devices and platforms. It’s sold via licensing arrangements with printer manufacturers.
The Future Is In The Cloud
But clearly, the future is in evolving digital media that allow users to create images and videos.
The company has migrated customers to cloud-based services, and now incorporates AI into its analytics and content management offerings.
Its cloud-based strategies are designed to make workflow easier for customers. The company generates revenue through subscriptions and licensing.
In the most recent quarterlyearnings call digital media president David Wadhwani referenced one of the company’s biggest opportunities as a growing number of content creators turn to digital video.
5X Increase In Content Production
“We're sitting at a moment where companies are telling us that there's a 5x increase in content production coming out in the next couple of years. And you see a host of new media types coming out,” he said.
In addition to organic growth, Adobe has a strategy of acquiring companies. In the fourth quarter of fiscal 2021, it completed the acquisition of Frame.io, a privately held company that provides a cloud-based video collaboration platform for approximately $1.24 billion. It’s now part of Adobe’s Digital Media segment.
That same year, it acquired Workfront, a privately held company that provides a workflow platform, for approximately $1.52 billion in cash. It’s now part of the Digital Experience segment.
Adobe is in the midst of trying to acquire Figma, a collaborative cloud-based design tool. Regulators in the U.K. have not OK’d the deal, citing concerns about reduced competition.
That hasn’t hurt the company’s share price, though.
Bolted Out Of Tight Formation
The Adobe chart shows the stock bolting out of a three-weeks-tight formation the week of July 10. As of July 13, it was hovering just below a structure high of $518.74. It’s currently in buy range, although investors should use caution, as recent big price moves occurred in light trading volume.
In the second-quarter conference call, CEO Shantanu Narayen spoke at length about Adobe's ability to leverage its expertise in creative software and digital content workflows through the use of AI.
Adobe recently incorporated generative AI features into its Creative Cloud and Experience Cloud platforms. It’s not difficult to imagine how the technology might be incorporated into Adobe’s design and editing software.
Adobe analyst ratings show a consensus view of “moderate buy,” with 18 analysts boosting their price targets or ratings after the June 16 quarterly report.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Beyond The Magnificent 7 While the so-called “Magnificent 7,” including Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA), Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META) have been leading the market, even to the point of CNBC’s Jim Cramer telling his viewers to continue holding those stocks; investors would be wise to keep an eye on other big growth names, as well. A few decades ago, a comedian named Murray Langston made a splash with an alter ego he dubbed “the unknown comic.” Langson was funny, but nobody knew who he was, since he performed with a bag over his head. Fund Outflows Signal Tough Times If you do any kind of online content creation or office work, you’ve undoubtedly run across Adobe, whose products include Photoshop, Illustrator, and Acrobat.
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Beyond The Magnificent 7 While the so-called “Magnificent 7,” including Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA), Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META) have been leading the market, even to the point of CNBC’s Jim Cramer telling his viewers to continue holding those stocks; investors would be wise to keep an eye on other big growth names, as well. Its business is organized into three reportable segments: Digital Media Digital Experience Publishing and Advertising The first two business units are focused on cloud-based technologies for video editing and design. In the fourth quarter of fiscal 2021, it completed the acquisition of Frame.io, a privately held company that provides a cloud-based video collaboration platform for approximately $1.24 billion.
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Beyond The Magnificent 7 While the so-called “Magnificent 7,” including Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA), Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META) have been leading the market, even to the point of CNBC’s Jim Cramer telling his viewers to continue holding those stocks; investors would be wise to keep an eye on other big growth names, as well. Its business is organized into three reportable segments: Digital Media Digital Experience Publishing and Advertising The first two business units are focused on cloud-based technologies for video editing and design. In the most recent quarterlyearnings call digital media president David Wadhwani referenced one of the company’s biggest opportunities as a growing number of content creators turn to digital video.
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Beyond The Magnificent 7 While the so-called “Magnificent 7,” including Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA), Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META) have been leading the market, even to the point of CNBC’s Jim Cramer telling his viewers to continue holding those stocks; investors would be wise to keep an eye on other big growth names, as well. Its business is organized into three reportable segments: Digital Media Digital Experience Publishing and Advertising The first two business units are focused on cloud-based technologies for video editing and design. In the most recent quarterlyearnings call digital media president David Wadhwani referenced one of the company’s biggest opportunities as a growing number of content creators turn to digital video.
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14860.0
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2023-07-17 00:00:00 UTC
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Dividend Investors — Can a 2.4%-Yielding ETF be Better Than a 13%-Yielding ETF?
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AAPL
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https://www.nasdaq.com/articles/dividend-investors-can-a-2.4-yielding-etf-be-better-than-a-13-yielding-etf
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In a comparison to see if an ETF with a 13% dividend yield or one with a 2.4% dividend yield would be a better choice for dividend investors, it would seemingly be obvious that the ETF with the 13% yield would be the superior option. However, here’s why that’s not necessarily the case. Let’s take a look at the Global X SuperDividend ETF (NYSEARCA:SDIV) and the iShares Core Dividend Growth ETF (NYSEARCA:DGRO) to find out why the answer isn’t as clear-cut as it may seem once you go beyond the surface level.
What are SDIV and DGRO?
SDIV is the "super dividend ETF" from Global X. This ETF has about $784 million in assets under management (AUM) and, as mentioned above, yields a massive 13%. It does this by investing in an index composed of 100 of the highest-yielding equities in the world. Notably, SDIV pays out dividends on a monthly basis, as opposed to the quarterly basis that most stocks and ETFs pay on.
Meanwhile, DGRO is a dividend growth ETF from BlackRock’s (NYSE:BLK) iShares that yields a far lower 2.4% and also pays a dividend on a monthly basis. It invests in U.S. stocks with growing dividends, and it is much larger than SDIV, with $24 billion in assets under management.
So far, things are looking good for SDIV in this comparison, but let's look further.
Comparing Their Holdings
DGRO holds 430 positions, and its top 10 holdings make up just 25.9% of the fund, so this ETF offers investors plenty of diversification. Below, you’ll find an overview of DGRO’s top 10 holdings using TipRanks’ holdings tool.
As you can see, this is a strong group of holdings, and most investors would generally agree that these are blue-chip stocks, whether they are mega-cap tech leaders like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Broadcom (NASDAQ:AVGO), international energy giants like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), or other well-respected stocks like JPMorgan Chase (NYSE:JPM).
Meanwhile, SDIV holds 100 positions, and its top 10 holdings account for just 13.4% of the fund, so this is a pretty diversified ETF with low concentration risk. Below, you’ll find an overview of SDIV’s top 10 holdings using TipRanks’ holdings tool.
As you can see, its holdings look quite a bit different from those of DGRO. Most investors would be hard-pressed to find names that they recognize here, let alone names that are widely seen as blue-chip holdings.
In fairness to SDIV, it looks like DGRO is the clear-cut winner in this category, but it’s possible that some of these holdings are diamonds in the rough, so let’s give DRGO the edge for the better portfolio but move on to the next category, performance track record, to get a clearer picture of which is the superior ETF.
Comparing Their Performances
Here’s where the rubber really meets the road in this comparison. When looking at the performance of both ETFs over time, a real difference begins to emerge.
Looking at total return, which combines returns from price appreciation with dividends being reinvested, DGRO has been a pretty solid performer in recent years. As of the end of the quarter that ended in June, DGRO had a one-year total return of 11%. Going out to three years, it has posted an impressive annualized return of 13.6%.
Over the past five years, DGRO has had an annualized total return of 11.1%. Finally, going back to its inception in 2014, DGRO’s total annualized return is 10.9%. As you can see, when combining returns from dividends and price appreciation, DGRO has consistently given its investors double-digit returns for a long time.
Now let’s take a look at SDIV’s track record compared to DGRO over the same time period. As of the end of the June quarter, SDIV’s total return over the past year was -8.1%. This means that even with its large dividend yield, investors have still lost 8.1% on their investments. Zooming out to three years, the results look a little better, with a three-year annualized total return of -2.7%. However, this means that investors still lost money and lagged the performance of DGRO by a significant margin.
Over the past five years, SDIV has had an unsightly annualized total return of -10.4%. Even over a 10-year time frame, SDIV produced an annualized return of -2.3%, and since its inception in 2011, it has lost money with a total annualized return of -1.9%.
Disparity in Fees
Despite losing money over each of these time frames and significantly underperforming both DGRO and the broader market, SDIV actually charges fees that are significantly higher than those of DGRO. SDIV has an expense ratio of 0.58% versus just 0.08% for DGRO.
This means that an investor allocating $10,000 to SDIV would pay $58 in fees in the first year, while an investor putting $10,000 into DGRO would pay just $8. Fees add up over time, so the difference is even greater over a longer time horizon.
For example, over the course of a decade, assuming a 5% return per year and that fees remain the same, the DGRO investor would pay $103 in fees, while the SDIV investor would pay a much higher $759. This large difference in expenses hardly seems justified, given SDIV’s underperformance.
Below, you can view a comparison of DGRO and SDIV using TipRanks’ ETF comparison tool, which allows investors to compare up to 20 ETFs at once based on a wide variety of customizable factors.
The Winner Is...
So, while DGRO investors made double-digit returns on a consistent basis, SDIV investors have actually lost money over the long run, even when its massive double-digit dividend yield is taken into account. This is why investors should look beyond just the attention-grabbing dividend yield and look at an ETF’s performance over time and why a dividend ETF with a 2.4% dividend yield like DGRO can be superior to a dividend ETF with a 13% dividend yield like SDIV.
In this comparison between two dividend ETFs with very different approaches, I believe DGRO is the winner as the better choice for dividend investors (and all investors, for that matter).
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you can see, this is a strong group of holdings, and most investors would generally agree that these are blue-chip stocks, whether they are mega-cap tech leaders like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Broadcom (NASDAQ:AVGO), international energy giants like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), or other well-respected stocks like JPMorgan Chase (NYSE:JPM). It invests in U.S. stocks with growing dividends, and it is much larger than SDIV, with $24 billion in assets under management. However, this means that investors still lost money and lagged the performance of DGRO by a significant margin.
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As you can see, this is a strong group of holdings, and most investors would generally agree that these are blue-chip stocks, whether they are mega-cap tech leaders like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Broadcom (NASDAQ:AVGO), international energy giants like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), or other well-respected stocks like JPMorgan Chase (NYSE:JPM). Let’s take a look at the Global X SuperDividend ETF (NYSEARCA:SDIV) and the iShares Core Dividend Growth ETF (NYSEARCA:DGRO) to find out why the answer isn’t as clear-cut as it may seem once you go beyond the surface level. As you can see, when combining returns from dividends and price appreciation, DGRO has consistently given its investors double-digit returns for a long time.
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As you can see, this is a strong group of holdings, and most investors would generally agree that these are blue-chip stocks, whether they are mega-cap tech leaders like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Broadcom (NASDAQ:AVGO), international energy giants like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), or other well-respected stocks like JPMorgan Chase (NYSE:JPM). In a comparison to see if an ETF with a 13% dividend yield or one with a 2.4% dividend yield would be a better choice for dividend investors, it would seemingly be obvious that the ETF with the 13% yield would be the superior option. So, while DGRO investors made double-digit returns on a consistent basis, SDIV investors have actually lost money over the long run, even when its massive double-digit dividend yield is taken into account.
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As you can see, this is a strong group of holdings, and most investors would generally agree that these are blue-chip stocks, whether they are mega-cap tech leaders like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Broadcom (NASDAQ:AVGO), international energy giants like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), or other well-respected stocks like JPMorgan Chase (NYSE:JPM). Meanwhile, DGRO is a dividend growth ETF from BlackRock’s (NYSE:BLK) iShares that yields a far lower 2.4% and also pays a dividend on a monthly basis. Below, you can view a comparison of DGRO and SDIV using TipRanks’ ETF comparison tool, which allows investors to compare up to 20 ETFs at once based on a wide variety of customizable factors.
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14861.0
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2023-07-17 00:00:00 UTC
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MORNING BID EUROPE-Bland China data leaves market hungry for stimulus
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AAPL
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https://www.nasdaq.com/articles/morning-bid-europe-bland-china-data-leaves-market-hungry-for-stimulus
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nan
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nan
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A look at the day ahead in European and global markets from Wayne Cole
It could have been worse, is about the best that can be said of China's data dump today. The Q2 GDP number of +0.8% q/q just pipped forecasts, but y/y undershot at 6.3% suggesting revisions somewhere to the past.
Industrial output in June beat by rising 4.4% on year, but retail sales missed at 3.1% and property sales suffered the largest monthly drop this year, so making for a rather mixed bag.
The market reaction was disgruntled with Chinese shares down and the yuan easing. Investors' favourite liquid China proxy, the Aussie dollar, was modestly under water as analysts suspect Beijing will allow the yuan to keep depreciating as one form of indirect stimulus.
The data underlined the need for much more serious fiscal spending but Beijing seems in no hurry to satiate market wishes this time. The central bank left one-year rates unchanged on Monday, and analysts seem resigned to wait for a Politburo meeting later this month for fresh steps.
Earnings season is well underway and Tesla TSLA.O is the first of the tech giants to report on Wednesday, with much riding on whether it can meet high expectations.
BofA expects it and the six other tech behemoths to boast earnings growth of an average of 19% over the next 12 months, more than double the 8% estimated for the rest of the S&P 500.
Worth noting that the phenomenal rise in the seven's market capitalisation will prompt a re-weighting of the Nasdaq on July 24, which will see their weighting fall to 44% of the index from 56%. Apple's AAPL.O weighting will drop by around 4ppt to 12% and Microsoft MSFT.O the same to 10%.
Goldman Sachs says passive funds that track NDX will rebalance their portfolios but the 2011 special rebalance experience suggests the stock-level impact will be limited.
Key developments that could influence markets on Monday:
- ECB Board member Fabio Panetta at G20 Finance Ministers and Central Bank Governors meeting in Gandhinagar, India
- ECB President Christine Lagarde gives pre-recorded speech, board members Frank Elderson and Philip R. Lane appear at 9th ECB conference on central, eastern and south-eastern European (CESEE) countries
- Federal Reserve Bank of New York issues Empire State Manufacturing Survey for July
Megacap stocks soar in 2023 https://tmsnrt.rs/3pWulp4
China GDP growth - Q/Q https://tmsnrt.rs/3pPWbU8
Emerging market financial conditions - Goldman Sachs index https://tmsnrt.rs/3JYFVad
(By Wayne Cole; Editing by Jacqueline Wong)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's AAPL.O weighting will drop by around 4ppt to 12% and Microsoft MSFT.O the same to 10%. Investors' favourite liquid China proxy, the Aussie dollar, was modestly under water as analysts suspect Beijing will allow the yuan to keep depreciating as one form of indirect stimulus. The central bank left one-year rates unchanged on Monday, and analysts seem resigned to wait for a Politburo meeting later this month for fresh steps.
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Apple's AAPL.O weighting will drop by around 4ppt to 12% and Microsoft MSFT.O the same to 10%. A look at the day ahead in European and global markets from Wayne Cole It could have been worse, is about the best that can be said of China's data dump today. Industrial output in June beat by rising 4.4% on year, but retail sales missed at 3.1% and property sales suffered the largest monthly drop this year, so making for a rather mixed bag.
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Apple's AAPL.O weighting will drop by around 4ppt to 12% and Microsoft MSFT.O the same to 10%. Industrial output in June beat by rising 4.4% on year, but retail sales missed at 3.1% and property sales suffered the largest monthly drop this year, so making for a rather mixed bag. Worth noting that the phenomenal rise in the seven's market capitalisation will prompt a re-weighting of the Nasdaq on July 24, which will see their weighting fall to 44% of the index from 56%.
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Apple's AAPL.O weighting will drop by around 4ppt to 12% and Microsoft MSFT.O the same to 10%. A look at the day ahead in European and global markets from Wayne Cole It could have been worse, is about the best that can be said of China's data dump today. The Q2 GDP number of +0.8% q/q just pipped forecasts, but y/y undershot at 6.3% suggesting revisions somewhere to the past.
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14862.0
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2023-07-16 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-52
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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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14863.0
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2023-07-16 00:00:00 UTC
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2 Hot Stocks to Buy and Hold Until You Retire
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AAPL
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https://www.nasdaq.com/articles/2-hot-stocks-to-buy-and-hold-until-you-retire-9
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nan
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nan
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The stock market has experienced a lot of fluctuations in the last few years, with the COVID-19 pandemic bolstering many tech and e-commerce companies. Then, 2022's economic turbulence and rising interest rates caused a wide array of stocks to plunge. And so far, 2023 has been a year of recovery as easing inflation and technological advances have made Wall Street bullish again.
All of that market volatility has highlighted for investors the importance of buying solid growth stocks and holding them for the long term. Meanwhile, companies with significant market shares in high-growth industries can almost guarantee consistent gains over multiple decades. The tech industry is a particularly attractive area to find these types of stocks, thanks to its innovative nature.
Consequently, many tech stocks have massive growth potential over the long term. Here are two of the best stocks to buy and hold until you retire.
1. Apple
It shouldn't be surprising that Apple (NASDAQ: AAPL) is on this list. After years of strong stock growth, the tech giant became the first company to achieve a market cap of $3 trillion in 2023. Its share price has soared 886% in the last 10 years, more than many of its peers have achieved in the same period, including Alphabet, Microsoft, and Meta.
Apple's consistent growth has caught the eye of some of the most famous investors. For instance, it now accounts for 46% of the value of Berkshire Hathaway's equity portfolio. Comparatively, its second-largest holding is Bank of America, which accounts for 8%. Berkshire CEO Warren Buffett has long been a major proponent of Apple, speaking on how its immense brand loyalty is one of its biggest selling points. In April, the investing mogul said, "If someone offered you $10,000 to never buy an iPhone again, you wouldn't take it."
While surprising, the sentiment rings true for many consumers who would sooner give up countless other brands for other devices before straying from Apple. The company has strategically created an interconnected ecosystem for all its products, making its established customers unlikely to turn to the competition if Apple is an option. This allegiance from consumers has seen the company's annual revenue climb 409% since 2014, with operating income up 386%.
Meanwhile, Apple has achieved leading market shares in many of its product categories, including smartphones, tablets, headphones, and smartwatches. Its dominance in consumer tech makes it a powerful driver of growth for lucrative markets like artificial intelligence (AI) and virtual/augmented reality (VR/AR), as its products will likely be the ones that get VR/AR technology to mass adoption. With years of consistent stock growth and nearly unrivaled brand loyalty, Apple is an attractive stock to hold until retirement and beyond.
2. Amazon
As far as investing in companies with significant market shares in high-growth markets, Amazon (NASDAQ: AMZN) is one of the best options. The company dominates e-commerce and cloud computing, strengthening its long-term outlook.
According to a forecast from Statista, the e-commerce market is projected to hit nearly $4 trillion this year and expand at a compound annual rate of 11% through 2027. The figures align with the fact that online retail sales only made up about 15% of all purchases last year, indicating the market is nowhere near hitting its ceiling. Meanwhile, Amazon is easily the biggest name in the industry in multiple countries. The company holds a 38% market share in e-commerce in the U.S. alone, while Walmart holds the second-largest share at 6%. As a result, Amazon is best positioned to profit from the sector's long-term growth.
Moreover, its Amazon Web Services (AWS) cloud unit has diversified its business and given it a powerful position in one of the most lucrative industries of 2023. As the world's biggest cloud infrastructure provider, AWS has a massive advantage in the future of AI. The company may not have been the first in the industry, but it has the brand power and a long list of clients that give it massive potential in that high-growth market.
In the first six months of this year, the company bolstered its generative AI offerings by adding two new services on AWS, and announced it is developing its own AI chips. Alongside its e-commerce dominance, Amazon's stock is a no-brainer for those looking for a decades-long investment.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 10, 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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, Meta Platforms, Microsoft, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple It shouldn't be surprising that Apple (NASDAQ: AAPL) is on this list. Berkshire CEO Warren Buffett has long been a major proponent of Apple, speaking on how its immense brand loyalty is one of its biggest selling points. Its dominance in consumer tech makes it a powerful driver of growth for lucrative markets like artificial intelligence (AI) and virtual/augmented reality (VR/AR), as its products will likely be the ones that get VR/AR technology to mass adoption.
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Apple It shouldn't be surprising that Apple (NASDAQ: AAPL) is on this list. With years of consistent stock growth and nearly unrivaled brand loyalty, Apple is an attractive stock to hold until retirement and beyond. Amazon As far as investing in companies with significant market shares in high-growth markets, Amazon (NASDAQ: AMZN) is one of the best options.
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Apple It shouldn't be surprising that Apple (NASDAQ: AAPL) is on this list. After years of strong stock growth, the tech giant became the first company to achieve a market cap of $3 trillion in 2023. With years of consistent stock growth and nearly unrivaled brand loyalty, Apple is an attractive stock to hold until retirement and beyond.
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Apple It shouldn't be surprising that Apple (NASDAQ: AAPL) is on this list. With years of consistent stock growth and nearly unrivaled brand loyalty, Apple is an attractive stock to hold until retirement and beyond. Amazon As far as investing in companies with significant market shares in high-growth markets, Amazon (NASDAQ: AMZN) is one of the best options.
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14864.0
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2023-07-16 00:00:00 UTC
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Warren Buffett Doesn't Diversify Investments Across Stocks. Should You?
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-doesnt-diversify-investments-across-stocks.-should-you
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nan
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nan
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Whether you started investing today or decades ago, you've probably heard a lot about the importance of diversification. That's the idea of spreading your investments across a variety of stocks and industries. You can even go beyond that by investing in various types of assets -- such as stocks, bonds, and cryptocurrency, for example.
But guess what? World famous investor Warren Buffett isn't one to diversify when investing in stocks. In fact, the billionaire has even criticized the idea. As head of Berkshire Hathaway, Buffett's portfolio is focused on a narrow selection of industries -- and the biggest positions are in a handful of stocks. We all would love to score even a bit of Buffett's success. Does that mean we should drop diversification from our strategy?
A focus on just a few sectors
First, let's consider the composition of Buffett's portfolio and exactly what he's said about diversification. As my colleague Sean Williams wrote recently, more than 90% of Buffett's portfolio is concentrated in only four sectors: technology, financial, consumer staples, and energy. And one stock alone -- Apple -- accounts for more than 45% of the fund's total value.
Buffett has made many statements about diversification. But the following two quotes sum up his views.
"Diversification is protection against ignorance," Buffett said. "It makes little sense if you know what you are doing."
He also said: "A lot of great fortunes in the world have been made by owning a single wonderful business. If you understand the business, you don't need to own very many of them."
It's a good idea to look at both of these comments together to get a true understanding of Buffett's views. He means investors shouldn't expect diversification to replace research and knowledge. You shouldn't diversify across a bunch of companies that you don't understand -- but count on success because you've bought into various industries and companies.
Whether you invest in one company or one hundred, researching and understanding the company/companies and their business is essential. As Buffett says, if you happen to find one fantastic business, you could make a fortune through that one particular investment. But, as he's acknowledged, that doesn't happen every day.
'A dozen truly good decisions'
Buffett, in his most recent shareholder letter, said that he has made many investment choices over the years that haven't worked out. "Our satisfactory results have been the product of about a dozen truly good decisions," he wrote.
Now, let's talk about whether you should follow Buffett and forget about diversification. It's a great idea to incorporate many Buffett ideas into our own investment strategies: investing for the long-term and buying quality stocks at reasonable prices are two good examples.
But most of us don't have Buffett's resources. We're investors with smaller portfolios -- and that means we have to operate a bit differently. We still should research and understand every company and industry we aim to invest in. But, like Buffett, even when you do that, you probably won't win on every investment. When Buffett loses on one investment, he still has the resources to win overall.
Smaller investors, though, could be crushed by one bad decision -- if they've put most of their eggs in that basket. And that's why most of us could benefit from diversification. If you choose carefully, you'll offer yourself many opportunities for success rather than just one or two.
Diversification doesn't require huge amounts of cash. If you only have a small amount to invest, you still can spread it across various stocks and industries -- even sometimes buying fractional shares of a market leader like Buffett favorite, Apple.
So, yes, all investors should aim to be like Buffett. But you can only do that by adapting this great investor's strategy to suit your own resources and situation.
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
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As my colleague Sean Williams wrote recently, more than 90% of Buffett's portfolio is concentrated in only four sectors: technology, financial, consumer staples, and energy. 'A dozen truly good decisions' Buffett, in his most recent shareholder letter, said that he has made many investment choices over the years that haven't worked out. If you only have a small amount to invest, you still can spread it across various stocks and industries -- even sometimes buying fractional shares of a market leader like Buffett favorite, Apple.
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As head of Berkshire Hathaway, Buffett's portfolio is focused on a narrow selection of industries -- and the biggest positions are in a handful of stocks. It's a great idea to incorporate many Buffett ideas into our own investment strategies: investing for the long-term and buying quality stocks at reasonable prices are two good examples. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
World famous investor Warren Buffett isn't one to diversify when investing in stocks. It's a great idea to incorporate many Buffett ideas into our own investment strategies: investing for the long-term and buying quality stocks at reasonable prices are two good examples. If you only have a small amount to invest, you still can spread it across various stocks and industries -- even sometimes buying fractional shares of a market leader like Buffett favorite, Apple.
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A focus on just a few sectors First, let's consider the composition of Buffett's portfolio and exactly what he's said about diversification. It's a good idea to look at both of these comments together to get a true understanding of Buffett's views. But most of us don't have Buffett's resources.
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14865.0
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2023-07-16 00:00:00 UTC
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Wall St Week Ahead-Investors brace for earnings from ‘Magnificent Seven’ US growth giants
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-investors-brace-for-earnings-from-magnificent-seven-us-growth-giants-0
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nan
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nan
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By Lewis Krauskopf
NEW YORK, July 14 (Reuters) - A handful of massive growth and technology names that have dominated the U.S. stock market in 2023 are set to report earnings in coming weeks, potentially determining the path for this year’s equity rally.
Lately dubbed the “Magnificent Seven” by investors, shares of the U.S. companies with the biggest market values soared between 40% and over 200% so far this year. Those moves have accounted for a lion's share of the S&P 500's 17% year-to-date rise and propelled the index to its highest level since April 2022.
The outsized gains have come with big earnings expectations for the seven companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O. BofA Global Research projects they will increase earnings by an average of 19% over the next 12 months, more than double the an 8% estimated rise for the rest of the S&P 500.
They will need strong results to justify premium valuations. Those companies trade at an overall trailing price-to-earnings ratio of about 40 times, versus 15 times for the S&P 500 excluding those companies, according to BofA.
Their results may be crucial to the market as a whole. Fueled by their recent gains, megacap stocks have climbed to dominate benchmark indexes, causing headaches for some managers of active funds. In the S&P 500, the seven stocks comprise 27.9% of the index's weight.
Investors will look beyond second quarter results, said Bill Callahan, an investment strategist at Schroders.
“It’s also how do these big companies, which are carrying the market ... guide for the rest of the year and into 2024,” he said.
Overall, the seven companies account for 14.3% of overall S&P 500 estimated earnings for the second quarter, and 9.3% of estimated revenue, according to Tajinder Dhillon, senior research analyst at Refinitiv.
Among the reports in the previous quarter, Nvidia was one of the standouts. The semiconductor company's revenue forecast blew past estimates as it said it was boosting supply to meet surging demand for its artificial-intelligence chips, further fanning the market's excitement over AI. Nvidia shares are up well over 200% this year
Tesla is the first of the growth giants to report, with earnings expected on Wednesday. The Elon Musk-led company this month said it delivered a record number of vehicles in the second quarter.
Microsoft and Meta are among the companies due to report the following week, and investors are expected to focus on how companies are seeking to harness AI.
While AI benefits may not immediately materialize for every company, investors are eager to learn "more about how they are going to convert that into money, essentially," said Thomas Martin, senior portfolio manager at Globalt Investments.
"It’s going to take some time for that to work its way through and to show up," said Martin, who is overweight some of the megacap stocks. "Along the way, people are going to want to see some sort of progress."
There are signs market gains are broadening beyond the megacaps. The equal-weight S&P 500 .SPXEW, a proxy for the average stock, is modestly beating the S&P 500 over the past month -- up 3.6% versus about 3% for its counterpart. The equal-weight version trailed badly for most of 2023.
Strong U.S. data have driven confidence the economy can avoid a long-feared recession. A so-called "soft-landing" could lift cyclical stocks such as industrials and small-caps that are trading at cheaper valuations.
But many investors say the corporate giants are nevertheless here to stay as critical holdings.
Yung-Yu Ma, chief investment officer at BMO Wealth Management said that while “there is a lot priced in” to megacaps’ valuations, that did not mean they are overvalued.
"If you think about the megacaps broadly ... they have gone from a core holding of a portfolio to an almost absolute necessary major component of the portfolio once you factor in trends such as AI," he said.
Megacap stocks soar in 2023 https://tmsnrt.rs/3pWulp4
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The outsized gains have come with big earnings expectations for the seven companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O. By Lewis Krauskopf NEW YORK, July 14 (Reuters) - A handful of massive growth and technology names that have dominated the U.S. stock market in 2023 are set to report earnings in coming weeks, potentially determining the path for this year’s equity rally. The semiconductor company's revenue forecast blew past estimates as it said it was boosting supply to meet surging demand for its artificial-intelligence chips, further fanning the market's excitement over AI.
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The outsized gains have come with big earnings expectations for the seven companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O. Nvidia shares are up well over 200% this year Tesla is the first of the growth giants to report, with earnings expected on Wednesday. Megacap stocks soar in 2023 https://tmsnrt.rs/3pWulp4 (Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The outsized gains have come with big earnings expectations for the seven companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O. By Lewis Krauskopf NEW YORK, July 14 (Reuters) - A handful of massive growth and technology names that have dominated the U.S. stock market in 2023 are set to report earnings in coming weeks, potentially determining the path for this year’s equity rally. Those companies trade at an overall trailing price-to-earnings ratio of about 40 times, versus 15 times for the S&P 500 excluding those companies, according to BofA.
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The outsized gains have come with big earnings expectations for the seven companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O. They will need strong results to justify premium valuations. Their results may be crucial to the market as a whole.
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14866.0
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2023-07-15 00:00:00 UTC
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Tesla Isn't Leading Autonomous Driving, This Company Is
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AAPL
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https://www.nasdaq.com/articles/tesla-isnt-leading-autonomous-driving-this-company-is
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nan
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nan
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Tesla (NASDAQ: TSLA) is considered a leader in autonomous driving, but there are a lot of companies that have reported more fully autonomous miles than Tesla. In fact, there are companies operating fully autonomous fleets today. In this video, Travis Hoium covers the leaders and where Tesla is falling behind.
*Stock prices used were end-of-day prices of July 9, 2023. The video was published on July 10, 2023.
10 stocks we like better than General Motors
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They just revealed what they believe are the ten best stocks for investors to buy right now... and General Motors 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. Travis Hoium has positions in Alphabet, Apple, and General Motors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. If you choose to subscribe through their link they will earn some extra money that supports their channel.
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Travis Hoium has positions in Alphabet, Apple, and General Motors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors.
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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. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors.
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In this video, Travis Hoium covers the leaders and where Tesla is falling behind. 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. Travis Hoium has positions in Alphabet, Apple, and General Motors.
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14867.0
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2023-07-15 00:00:00 UTC
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Great News for Apple Stock and Microsoft Stock Investors
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AAPL
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https://www.nasdaq.com/articles/great-news-for-apple-stock-and-microsoft-stock-investors
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nan
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nan
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Fool.com contributor Parkev Tatevosian discusses a recent update from a market research firm showing computer sales improved in the second quarter of 2023.
*Stock prices used were the afternoon prices of July 12, 2023. The video was published on July 14, 2023.
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 10, 2023
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian discusses a recent update from a market research firm showing computer sales improved in the second quarter of 2023. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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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 10, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Microsoft.
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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. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Parkev Tatevosian, CFA has positions in Apple.
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See the 10 stocks *Stock Advisor returns as of July 10, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has a disclosure policy. His opinions remain his own and are unaffected by The Motley Fool.
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14868.0
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2023-07-15 00:00:00 UTC
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1 Super Stock That Could Join Apple, Microsoft, Nvidia, Amazon, and Google in the $1 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/1-super-stock-that-could-join-apple-microsoft-nvidia-amazon-and-google-in-the-%241-trillion
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nan
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Fool.com contributor Parkev Tatevosian highlights one unstoppable stock with all the characteristics of a market-leading valuation.
*Stock prices used were the afternoon prices of July 12, 2023. The video was published on July 14, 2023.
10 stocks we like better than Visa
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 Visa 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
Parkev Tatevosian, CFA has positions in Visa. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian highlights one unstoppable stock with all the characteristics of a market-leading valuation. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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*Stock prices used were the afternoon prices of July 12, 2023. 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 10, 2023 Parkev Tatevosian, CFA has positions in Visa.
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10 stocks we like better than Visa When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Parkev Tatevosian, CFA has positions in Visa.
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See the 10 stocks *Stock Advisor returns as of July 10, 2023 Parkev Tatevosian, CFA has positions in Visa. The Motley Fool has positions in and recommends Visa. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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14869.0
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2023-07-15 00:00:00 UTC
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The Boom in Immersive Technology
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AAPL
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https://www.nasdaq.com/articles/the-boom-in-immersive-technology
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nan
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nan
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In this podcast, Motley Fool senior analyst Jason Moser and contributor Matt Frankel discuss:
Apple's bet on spatial computing.
A major interface problem for headset adoption.
Meta's VR subscription service.
Less obvious companies that could benefit from a boom in immersive tech.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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
This video was recorded on July 08, 2023.
Matt Frankel: From reports that I've read, Meta, they're not having trouble selling their Quest headsets. I mentioned 20 million sold so far, the overwhelming majority is the newer, the Quest 2, and the Quest 3s do up later this year. They're struggling with retention, meaning keeping people engaged. A lot of tech companies have a similar problem. How many people bought a Peloton during COVID and now it's a Cove Rack? Because engagement fell off after a while. Well, Meta is having a similar problem.
Mary Long: I'm Mary Long and that's Motley Fool Contributor, Matt Frankel. He caught up with Jason Moser to talk about the boom in immersive technology. They discuss how Apple's Vision Pro stands out from Meta's Quest headset, the consumer and industrial use cases for immersive tech, and three less obvious companies that could benefit from this trend.
Jason Moser: Matt, this week we're jumping into the wide world of immersive technology. We've got virtual reality, augmented reality, there's mixed reality. These are all certainly becoming more popular conversations these days. Today we want to cover the latest in Apple's headset aspirations. We'll also talk about Meta's latest subscription offering, and we're also going to talk about some alternative ways to invest in this new computing paradigm beyond the obvious names. But Matt, let's get started here with Apple because this is the big news. Recently Apple releasing its new headset; the Vision Pro. This is something that we've been waiting for for a long time. Always rumors out there that they were going to be releasing something at some point now we finally actually got it. Matt, it's a great look in a piece of hardware. I'm still not fully sold on mass adoption for something like this, particularly at that price tag. What do you think?
Matt Frankel: I think it's historically been a mistake to underestimate Apple fans' willingness to spend money. [laughs]
Jason Moser: That's an evergreen thesis.
Matt Frankel: It really is.
Jason Moser: It really is.
Matt Frankel: How many people said the iPhone was too expensive when it first came out? At the time, you could walk into any AT&T or Verizon store and walk out with a free phone if you signed a contract, not so with the iPhone but people still bought it because it was a superior product. All the early reviews say that with the Vision Pro, you get what you pay for. I did see that they're cutting targets on production. The original goal was about a million units in the first year then they slashed that, I think 400,000. Now we're hearing that some suppliers are only planning on about 150,000 in the first year. I'm not sure that I buy it. I think the adoption is going to be greater than we think. I think the million might actually be a relatively conservative target given Apple, there are over two billion active Apple devices throughout the world. You need 0.1% of their customer base to adapt this product.
Jason Moser: I do fully agree with you on that notion that you should never really underestimate what Apple fans will do. I have always said they can stamp their logo on a rock and just sell three million of them immediately no questions asked because people would just view it as a special rock for some reason. The power of that brand. I'm really not kidding. I really believe they could do that. So you're welcome, Tim Cook if you're looking for a new product line. But yeah, it is one of those things. When you look at this versus something like formerly Oculus, but the Meta's Quest line, the pricing is what really stands out to me and I think we'd all agree that the Vision Pro of today isn't going to be the Vision Pro of 10 years from now or even five years. This is their first step. This is their playbook. Let others get out there, test the waters, and bring new hardware, new concepts that they're figuring out what works and what doesn't work. Then Apple jumps in there with its own interpretation of that hardware, of that software in making it do what they think is most valuable. I don't think this is any different, honestly. It's not like headsets are that new. Meta has been at this for a while with Oculus. There are a lot of early adopters.
The price points for those Metal headsets are considerably lower. You're talking about something in that $500-1,000 range for a Quest headset, generally speaking, versus that initial $3,500 price tag for Vision Pro. That's going to be considerably different. Now the one thing I do think in regard to this very first iteration of the Vision Pro. I don't think this is meant for the mass consumer. I think this is that tool that gets out there and really helps Apple build this spatial computing ecosystem. That's where it's going to take some time to develop, of course, but it can really pay off because to your point there on devices, Apple is also closing in on one billion subscriptions, and that is just extremely powerful. Oftentimes subscriptions that people aren't even thinking about. They're just set on rebuild every month and Apple's got such an audience, they really are very loyal to the brand and its offerings. Again, while they are slashing that guidance for the initial offerings though there's some tech supply issues and other some problem with the displays. But they are working on cheaper versions of this hardware that's still a couple of years out at least, but they are already thinking in that direction of, hey, if we want to get mass consumer adoption here, we are going to need to bring that price tag down. I have no doubt that happens. I think the bigger question really is the use case. What do you find the real use case to be with something like a Vision Pro or even just headsets in general?
Matt Frankel: It feels like what they're trying to do is different than what Meta is trying to do. For Meta it's like a gaming product. It's not a computer replacement. Apple is trying to do a replacement for a laptop, for a TV. They're talking about the potential for 3D movies and things like that. Instead of your TV, instead of your laptop, if it can effectively replace those two things, 3,500 doesn't sound that ridiculous. You mentioned that they are planning a cheaper version two years from now. With Meta, Meta sold about 20 million of its headsets. The overwhelming majority is that lower-price Quest 2 headset their second iteration, which I can see the same thing being true for Apple. But they've sold 20 million headsets without an existing hardware ecosystem that Apple already has.
Jason Moser: Yeah.
Matt Frankel: Apple has that advantage. Apple is not going to sell 20 million of the initial version of it. But there's a lot of demand for this and especially if the functionality justifies the price tag, which the initial reports are that it does to some degree. It supposedly leaps and downs beyond even the Quest Pro from Meta in terms of just the technology. We'll see how it plays out. But I believe I remember you being an iPhone user are you on the waiting list for this?
Jason Moser: I'm an iPhone user and no, I'm not on the waiting list for Vision Pro. I've got two kids to put through college, so this is definitely on the back burner for a little while. I'm always fascinated by new technology. I wouldn't consider myself an early adopter, but I do like to get in there and tinker around these things to understand what they are or problems that they're trying to solve. I think one of the interesting dynamics with Vision Pro that is not reflected as something like the Quest is that the Vision Pro, it looks like it incorporates mixed reality, augmented reality, and virtual reality into one experience. Those are different, virtual reality being that immersing yourself into an entirely new digital world, shutting yourself off from that outside world, whereas Augmented Reality is more overlaying that digital world on top of the physical world. There are use cases for both. Quest historically has been a VR device. I think to your point that is something that could potentially open up a lot of additional use cases for something like the Vision Pro as it evolves. I think the other key for Vision Pro and for all of these heads is ultimately the form factor, it's the interface. I don't know how long if you've ever put any of these headsets on.
I've never put on a Vision Pro, but I've heard the same thing in regard to Vision Pro, they are very cumbersome after extended wearing. You put one of those things on for like an hour, you really start to feel it. You do see the need for this form factor to change, for it to come, its size needs to be reduced. It needs to be a bit more seamless and a little bit more tolerable for longer periods of time. I have no doubt that will happen. But it is going to take a while. The evolution of these things, it's going to take some time because if you figure where we are today with the Quest, and it's been around for some time like you said, around 20 million units sold in total, it's still fundamentally the same design more or less. It's just this big, cumbersome headset. I think ultimately the form factor needs to come down. It does make me wonder, I think about this from time to time. I have to ask you. There's a part of me that's really starting to believe that maybe the headset isn't the way. Maybe that's not the interface that ultimately brings spatial computing to the masses. The caveat there is that if they can whittle this thing down to make it small enough to where it's like a pair of eyeglasses and I think that changes everything. I don't know if they can get it to that. Maybe they can. But what do you think? These headsets, in their current iteration today, it just doesn't seem like that's something that allows for mass adoption.
Matt Frankel: I would bet the team at Google agrees with you. Remember the Google Glass that they were developing 10 years ago?
Jason Moser: Oh, yeah.
Matt Frankel: That was essentially a pair of glasses.
Jason Moser: Yeah.
Matt Frankel: The problem is the technology is not there to make the necessary infrastructure inside of it small enough to fit in the pair of glasses and have the technology of the Vision Pro right now. The holy grail, you're right, you could be wearing one right now and I would have no idea because you're wearing a pair of glasses if you could do everything that the Vision Pro is going to do. Google ended up discontinuing the glass actually this year after about 10 year development period because they just couldn't get it to where it needed to be and prefer to focus on the software instead of the hardware. But you're right, they're really cumbersome. The Vision Pro, it's designed to be, like you said, an augmented reality, not a virtual reality headset. In two years we could see people walking around the grocery stores wearing a Vision Pro. Right now you generally don't see people wearing the Meta Quest 2 walking around a grocery store or anything like that right now, but that's absolutely a possibility with the Vision Pro.
Jason Moser: Yeah.
Matt Frankel: The new reality might be people walking around and driving around even with these other heads.
Jason Moser: I reckon it's possible, but I'm going to bet against it. How about that?
Matt Frankel: That's the goal, to complement reality instead of replacement.
Jason Moser: Yeah.
Matt Frankel: That would be better accomplished with something the size of a pair of glasses.
Jason Moser: No question. You take it to the next step. You talk about wearing these things outside of the home in overlaying the digital on top of the physical to bring more use cases into your everyday life. Driving, for example. We've got companies that are building windshields that incorporate this augmented reality technology, sands headset. You don't need a headset to use these windshields. That's what makes me wonder regarding these headsets. We've already got companies that are building out this technology and overlaying the digital on top of the physical without necessarily having to incorporate a headset into the mix. It does make me wonder, but again, I do listen, I know the form factor is going to come down. I know the size is going to become less and less of an issue as time goes on. I think that's going to be a big piece to the puzzle where that should help not only Apple but all headset makers. Speaking of all headset makers, I wanted to talk about Meta for a second here too. You mentioned I think earlier just regarding the Quest, the Quest serves a gaming population primarily. I think that's right for the most part. Meta, really leading into that they launched a VR subscription service with their Quest line to really capitalize on that population. This is a service, $7.99 a month. It's something that looks like it is catering specifically to that gaming audience.
Matt Frankel: From reports that I've read, they're not having trouble selling their Quest headsets. I mentioned 20 million sold so far.
Jason Moser: Yeah.
Matt Frankel: The overwhelming majority is the newer, Quest 2. The Quest 3s do up later this year. They're struggling with retention, meaning keeping people engaged.
Jason Moser: Yeah.
Matt Frankel: A lot of tech companies have a similar problem. How many people bought a Peloton during COVID and now it's a coat rack? Because engagement fell off after a while. Meta's having a similar problem, especially with the newer cohorts, like people who got a Quest as a present last year or something like that. They're having trouble keeping them engaged. So not only would this be a recurring revenue stream and things like that, but it would help solve the problem of keeping people engaged. With a subscription, they get new games every month. It's more of a refresh cycle and keeping people engaged than just selling the hardware and being done with that.
Jason Moser: Yeah. Again, going back to those core use cases and I think that for headsets in general, we've seen an easy core use case that we've discovered is in entertainment. I think gaming is the big part of that thesis there. From that perspective, gaming is obviously one of the larger market opportunities out there for investors to be digging into. It's also one where we're seeing a lot of competitive jockeying in this space, companies trying to really establish their position. We got Microsoft trying to acquire Activision Blizzard. That may or may not work out, but you know what a powerhouse Activision Blizzard is in that space. Technically they still have a hollow lens, which is their version of the Vision Pro. But again, it's tremendous technology. There are certain use cases where it's really proven very helpful. I think healthcare is one. I think that speaks to a lot of these headsets. We see the industrial use cases for a lot of these headsets. It's the consumer use cases that become a little bit more difficult to really fully understand beyond something just like entertainment, gaming, things like that.
Matt Frankel: That's what Apple is trying to do. If there's one thing Apple's good at, I mentioned their customers will spend money, but Apple's really good at justifying the cost. They're very good at it. Their ecosystem pairs really well together. People are willing to spend money, pay a premium for the Apple Watch, for example, because it pairs so well with everything else Apple. If they can accomplish that with the Apple headset the Vision Pro, then great. I think that that's where they're trying to go to move beyond just gaming applications, like I mentioned, to be a laptop replacement. Instead of buying four monitors, if I could just look and see four monitors in the air in my room, that could justify a $3,500 price tag.
Jason Moser: Certainly very possible.
Matt Frankel: If they could replace having a projector and a projection screen on my wall to watch movies, it could justify that price tag. That's an ambitious price. This is not the first ambitious price that has come from Apple. I think if it's anything like other product launches, they could do a good job at justifying it.
Jason Moser: I think ultimately what they're going to do here is what they do so well, getting that first iteration out there and just learning, discovering the use cases, what they're doing well, where they need to shore things up. This is a company with more resources than most countries on the face of this Earth. [laughs] I certainly do not doubt they will give it their all. I like your statement at the top of the show. You just cannot underestimate. You cannot underestimate Apple. They're so talented in what they do and they always seem to figure out a way and the brand power, they're a very loyal user base indeed. To be continued. We'll certainly enjoy following along the progress here and revisiting down the line. Matt, before we wrap it up here, we wanted to talk a little bit about just some alternative ways for folks to consider getting exposure to the immersive technology space. Because we talk so much about these big tech companies, the hardware, the headsets. These are the obvious players in this space because we talk about them so much. They're always in the headlines. But there are a lot of other ways to really invest in immersive technology. There are companies that'll help powering these headsets. There companies that are capitalizing on the software, incorporating these types of experiences into their business models. We wanted to just throw a few extra ideas out there. I know you have one. I'll kick us off here with one and then go to you.
But one that I continue to cover, one I like, I've talked about it on Twitter before and I've actually recommended it in both of my services here at the Fool. It's a Cadence Design Systems. The ticker is C-D-N-S. Cadence Design Systems, this is a company that produce the software, the hardware, and the intellectual property that helps its customers build their electronic products. Cadence customers are the customers that deliver electronic products from things like chips and boards to systems for market applications, hyperscale computing, 5G communications, automotive, aerospace. Cadence is a company that's helping all of this happen. If you look at some of the customers of Cadence, we're talking about companies like Nvidia and AMD, Samsung, Microsoft, Marvell, even Qualcomm to name a few. Cadence Design Systems, probably, and the name maybe not as many are familiar with, but a company that has a really entrenched position in the value chain beyond just immersive technology, but absolutely playing a role in helping this immersive technology takeoff. What's a company you've been following that you think offers an opportunity for investors?
Matt Frankel: Mine is a great complement to Cadence Design Systems. They're more on the software side of things. I like Applied Materials, they're more on the hardware side. They make the systems that semiconductor manufacturers use to make chips. They use very complex machinery. When you think of electronics circuits considering nanometers, you can't just buy a 3D printer and make a chip.
Jason Moser: I wish it were that easy.
Matt Frankel: You need very specialized equipment to do that and that's where Applied Materials comes in. You mentioned the end game of augmented reality devices is something that looks like a pair of glasses. That's going to need increasingly complex and smaller chips and that's going to create a ton of demand for Applied Materials products if they can keep up with the technology and really keep up with what their customers need. It's already been a 10-bagger over the past ten years. A very profitable company of about a 30% operating margin. Their semiconductor equipment industry is expected to roughly double in size by 2030 and they should be a very natural beneficiary of that.
Jason Moser: I like that. I like that a lot. In wrapping it up one more, this is a company that really utilizes immersive technology in its business. But I think a lot of folks out there are familiar with Axon Enterprise. Ticker is A-X-O-N. Axon Enterprise, they develop, they manufacture, and sell what they call conducted energy weapons or CEWs. Just think TASER. This is the TASER company. This is the company that sells the TASER brand here in the US and internationally. It's got the TASER side of the business, that's the hardware side. Then it has the software and system side of the business. It creates a very attractive recurring revenue stream, I think for the business while locking customers and on that hardware as well. But Axon uses immersive technology for training and whatnot with things like Axon VR, which actually uses headsets as a part of the curriculum. This is a business that's utilizing virtual reality and immersive technology to become better, to differentiate itself. I think not only with Axon but many companies you're seeing they're utilizing immersive technology as ways to educate and train, and that ultimately is a great feature of immersive technology.
Matt Frankel: I like Axon. We talked about the three big players that make the hardware, the products. Axon is another one that has a lot of potential there. There's a lot of applications for augmented reality and what they do, so that's an interesting one.
Jason Moser: Indeed. Well, we'll leave it there. Matt, thanks so much for joining us this weekend. It was great catching up with you again.
Matt Frankel: Always fun to be here. Hope we can do this again soon.
Mary Long: As always, people on the program may have an interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy yourselves stocks based solely on what you hear. I'm Mary Long. Thanks for listening. We'll see you tomorrow.
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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jason Moser has positions in Alphabet and Apple. Mary Long has no position in any of the stocks mentioned. Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Apple, Applied Materials, Axon Enterprise, Cadence Design Systems, Meta Platforms, Microsoft, Nvidia, Peloton Interactive, and Qualcomm. The Motley Fool recommends Marvell Technology and Verizon Communications. 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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They discuss how Apple's Vision Pro stands out from Meta's Quest headset, the consumer and industrial use cases for immersive tech, and three less obvious companies that could benefit from this trend. But they are working on cheaper versions of this hardware that's still a couple of years out at least, but they are already thinking in that direction of, hey, if we want to get mass consumer adoption here, we are going to need to bring that price tag down. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Apple, Applied Materials, Axon Enterprise, Cadence Design Systems, Meta Platforms, Microsoft, Nvidia, Peloton Interactive, and Qualcomm.
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In this podcast, Motley Fool senior analyst Jason Moser and contributor Matt Frankel discuss: Apple's bet on spatial computing. They discuss how Apple's Vision Pro stands out from Meta's Quest headset, the consumer and industrial use cases for immersive tech, and three less obvious companies that could benefit from this trend. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Apple, Applied Materials, Axon Enterprise, Cadence Design Systems, Meta Platforms, Microsoft, Nvidia, Peloton Interactive, and Qualcomm.
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They discuss how Apple's Vision Pro stands out from Meta's Quest headset, the consumer and industrial use cases for immersive tech, and three less obvious companies that could benefit from this trend. When you look at this versus something like formerly Oculus, but the Meta's Quest line, the pricing is what really stands out to me and I think we'd all agree that the Vision Pro of today isn't going to be the Vision Pro of 10 years from now or even five years. Matt Frankel: The problem is the technology is not there to make the necessary infrastructure inside of it small enough to fit in the pair of glasses and have the technology of the Vision Pro right now.
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When you look at this versus something like formerly Oculus, but the Meta's Quest line, the pricing is what really stands out to me and I think we'd all agree that the Vision Pro of today isn't going to be the Vision Pro of 10 years from now or even five years. Matt Frankel: That's what Apple is trying to do. There are companies that'll help powering these headsets.
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14870.0
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2023-07-15 00:00:00 UTC
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3 Stocks I'm Holding Forever
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AAPL
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https://www.nasdaq.com/articles/3-stocks-im-holding-forever
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Forever may seem like a long holding period, but that's the goal for buy-and-hold investors. Right now, there's no reason to be selling these great companies, which Travis Hoium highlights in this video.
*Stock prices used were end-of-day prices of July 11, 2023. The video was published on July 12, 2023.
10 stocks we like better than Axon Enterprise
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 Axon Enterprise 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
Travis Hoium has positions in Apple, Axon Enterprise, and Spotify Technology. The Motley Fool has positions in and recommends Apple, Axon Enterprise, 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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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Spotify Technology. If you choose to subscribe through their link, they will earn some extra money that supports their channel.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Travis Hoium has positions in Apple, Axon Enterprise, and Spotify Technology. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Spotify Technology.
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10 stocks we like better than Axon Enterprise When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Travis Hoium has positions in Apple, Axon Enterprise, and Spotify Technology. The Motley Fool has positions in and recommends Apple, Axon Enterprise, 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 Axon Enterprise wasn't one of them! See the 10 stocks *Stock Advisor returns as of July 10, 2023 Travis Hoium has positions in Apple, Axon Enterprise, and Spotify Technology. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Spotify Technology.
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14871.0
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2023-07-14 00:00:00 UTC
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2 No-Brainer Growth Stocks Up 46% and 63% to Buy Before the Next Bull Market
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AAPL
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https://www.nasdaq.com/articles/2-no-brainer-growth-stocks-up-46-and-63-to-buy-before-the-next-bull-market
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nan
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Bear markets come and go, but great stocks can outlast these periods and thrive in a wide variety of markets. While investors are eagerly awaiting a prolonged bull market, it's still a great time to invest in quality businesses for the long term.
Whenever the next bull market does present itself, here are two companies you may want to already have in your basket of stocks. Let's get started.
1. Apple
Apple (NASDAQ: AAPL) faced some mixed sentiment from investors in 2023 as its top and bottom lines decelerated slightly amid ongoing economic volatility and fluctuating consumer spending. Still, the stock is trading up 46% from the start of this year as it has continued to report a record installed base of devices, generous profits, and impressive results from its rapidly growing services segment.
Looking back at Apple's results for the first half of its fiscal 2023 (ended April 1), the company generated total net sales of $212 billion on net income of $54 billion. Of that net-sales total, $117 billion was derived from iPhone sales. In short, smartphones -- a space in which Apple retains aglobal marketshare of around 21% -- still account for more than half of Apple's top line.
However, the second-largest driver of its results in the six-month window was its services segment, which includes services like Apple Music, Apple Pay, and iCloud, as well as its advertising wing. Apple's services segment brought in total net sales of $42 billion in that period.
Given the rise and popularity of subscription-based services along with other digital-based offerings, Apple has a lot of room to grow this wing of its business even as it remains heavily reliant on hardware sales. This segment also includes its recently launched, high-yield savings account as well as the buy now, pay later service it rolled out this past spring.
Even as consumer-spending patterns shifted from things to experiences over the recent quarters given the resurgence of options like cross-border travel, these are dynamics that naturally shift with the passage of time. Demand for Apple's products isn't going anywhere even if some consumers are reining in spending on big-ticket items right now.
The company's market leadership and impressive balance sheet backed by considerable profits and cash are all green flags for investors. With the introduction of its Vision Pro headset in 2024, which represents Apple's first launch of an entirely new hardware product in close to a decade, the next era of growth for this tech behemoth could be just around the corner.
2. Airbnb
Airbnb (NASDAQ: ABNB) saw shares rocket up 63% since the start of 2023. The company hit a number of record financial goalposts recently as a surge in bookings, as well as listings available on the platform, is driving historical revenue and profits.
This year, Airbnb reported its highest first-quarter revenue ever. This was also the inaugural time that Airbnb generated a Q1 profit. During the three-month period, the company raked in revenue of $1.8 billion, while net income came in at $117 million.
That revenue figure represented an increase of 20% from the year-ago period. Taking a step back, Airbnb's revenue for Q1 was up by a notable 117% from the same quarter in 2019. A surge in both short and long-term bookings drove gross booking value to more than $20 billion for Q1 2023, up 105% on a four-year basis.
As one of many strategies to keep this momentum going, Airbnb is continuing to roll out upgrades to its platform to make stays more accessible and affordable, an important point given the ongoing economic concerns many consumers have. The company launched Airbnb Rooms recently, where the average nightly price is $67, and more than 80% of stays in this segment are under $100 a night. CEO Brian Chesky said the following about this new stay offering:
[W]hat we wanted to do is offer a product that we thought could capture this affordability segment that we think more and more people are going to be interested in in this economy and also launch a product that would be very relevant to the next generation of travelers. And essentially, I wanted to launch a product that the 26-year-old me would have wanted.
Currently, 45% of all bookings on Airbnb are for stays of seven nights or more. And 18% of all stays booked are long-term stays, which are 28 days or more. Clearly, travelers are looking to Airbnb to serve a variety of accommodation use cases. This fact also offers a measure of resilience to the business, which can enhance Airbnb's growth potential and differentiate it from other travel-facing brands over the long term.
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Rachel Warren has positions in Apple. The Motley Fool has positions in and recommends Airbnb and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) faced some mixed sentiment from investors in 2023 as its top and bottom lines decelerated slightly amid ongoing economic volatility and fluctuating consumer spending. Still, the stock is trading up 46% from the start of this year as it has continued to report a record installed base of devices, generous profits, and impressive results from its rapidly growing services segment. Given the rise and popularity of subscription-based services along with other digital-based offerings, Apple has a lot of room to grow this wing of its business even as it remains heavily reliant on hardware sales.
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Apple Apple (NASDAQ: AAPL) faced some mixed sentiment from investors in 2023 as its top and bottom lines decelerated slightly amid ongoing economic volatility and fluctuating consumer spending. Looking back at Apple's results for the first half of its fiscal 2023 (ended April 1), the company generated total net sales of $212 billion on net income of $54 billion. However, the second-largest driver of its results in the six-month window was its services segment, which includes services like Apple Music, Apple Pay, and iCloud, as well as its advertising wing.
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Apple Apple (NASDAQ: AAPL) faced some mixed sentiment from investors in 2023 as its top and bottom lines decelerated slightly amid ongoing economic volatility and fluctuating consumer spending. Looking back at Apple's results for the first half of its fiscal 2023 (ended April 1), the company generated total net sales of $212 billion on net income of $54 billion. However, the second-largest driver of its results in the six-month window was its services segment, which includes services like Apple Music, Apple Pay, and iCloud, as well as its advertising wing.
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Apple Apple (NASDAQ: AAPL) faced some mixed sentiment from investors in 2023 as its top and bottom lines decelerated slightly amid ongoing economic volatility and fluctuating consumer spending. Still, the stock is trading up 46% from the start of this year as it has continued to report a record installed base of devices, generous profits, and impressive results from its rapidly growing services segment. Apple's services segment brought in total net sales of $42 billion in that period.
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2023-07-14 00:00:00 UTC
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Apple’s $3 Trillion Milestone: What’s Next for AAPL Stock Investors?
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AAPL
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https://www.nasdaq.com/articles/apples-%243-trillion-milestone%3A-whats-next-for-aapl-stock-investors
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. Will the rest of 2023 also bring huge gains to Apple’s shareholders?
It’s difficult to predict, as there are many moving parts. Ultimately, cautious investors can choose to stay in the trade with Apple but don’t have to aggressively add to their positions.
There’s been a lot of buzz because Apple recently achieved a market capitalization of $3 trillion. That’s an impressive milestone, no doubt.
Now, it’s a good time for sensible investors to consider Apple’s next moves, as it won’t be easy for the tech titan to continue growing at such a rapid rate.
Apple is still a solid company, but always remember that no stock can just go up in a straight line. Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock.
A AR Pricey Headset and AAPL Stock
Apple’s augmented reality headset, known as the Vision Pro, is the company’s “most significant product since the Apple Watch,” according to Bloomberg.
Some financial traders might assume that the Vision Pro’s rollout will quickly boost Apple’s market cap.
However, it’s not wise to jump to conclusions. Certainly, it’s not a positive sign that Apple is reportedly slashing its production goal for the Vision Pro headset.
According to South China Morning Post (citing Financial Times), Apple initial objective was to produce 1 million Vision Pro units in the first year. Now, the goal is only to produce 400,000 units in 2024.
Apple might blame “complex design issues,” but it’s entirely possible that there are other contributing factors.
In particular, Apple may have been overconfident in assigning a $3,499 price tag on the Vision Pro headset. All in all, it’s not 100% clear that Apple’s expensive VR gear will be a blockbuster seller.
Apple Seeks Opportunities in India
On the positive side of the equation, Apple is evidently looking to India for potential growth opportunities. This represents a huge emerging market with an expanding middle class.
Apple apparently recognizes this, as the company opened two flagship stores in India earlier this year. Furthermore, Apple CEO Tim Cook reportedly attended those two store openings.
In addition, Apple is apparently probing production opportunities in India. This makes sense during a time of tensions between the U.S. and China.
Reportedly, Apple seeks to “manufacture 25% of the world’s iPhones” in India, versus 3.5% today. Diversifying its smartphone production could prove to be a very smart strategy for Apple, so this is probably a bullish development for AAPL stock.
Have a Plan With AAPL Stock
As you can see, Apple’s current and prospective investors have a lot to consider. Apple achieved a $3 trillion market cap quickly this year, but the next milestones might not happen so easily.
It’s fine to have a share position in Apple, but just don’t make any assumptions of easy success with AAPL stock. As usual, position sizing will be crucial.
The future will probably be bright for Apple and its stakeholders. Still, when all is said and done, there’s no need to chase rallies or over-leverage yourself. In other words, sensible investors can maintain their current share positions in Apple for now, or just add to them gradually.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Apple’s $3 Trillion Milestone: What’s Next for AAPL Stock Investors? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It’s fine to have a share position in Apple, but just don’t make any assumptions of easy success with AAPL stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. It’s fine to have a share position in Apple, but just don’t make any assumptions of easy success with AAPL stock. Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. A AR Pricey Headset and AAPL Stock Apple’s augmented reality headset, known as the Vision Pro, is the company’s “most significant product since the Apple Watch,” according to Bloomberg. Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. The post Apple’s $3 Trillion Milestone: What’s Next for AAPL Stock Investors? Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock.
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7 Hypergrowth Stocks That AI Is Loving in July
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AAPL
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https://www.nasdaq.com/articles/7-hypergrowth-stocks-that-ai-is-loving-in-july
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Some stocks have skyrocketed year to date. Indeed, shares of some technology companies more than doubled over the last six months. This rally has been fueled by improving investor sentiment and excitement about artificial intelligence. These hypergrowth stocks appear to be carrying their momentum into the year’s second half, continuing to rally to new heights.
Now, some tech stocks have achieved astronomical valuations simply due to portfolio rebalancing. While some analysts continue to predict a market downturn, there doesn’t appear to be any pullback in a number of hypergrowth stocks that keep outperforming the broader market by a wide margin. We asked artificial intelligence for its hypergrowth stock picks, and this is what it came up with.
Here are seven hypergrowth stocks that AI is loving in July.
Carvana (CVNA)
Source: Ken Wolter / Shutterstock.com
It might not be for everybody, but one hypergrowth stock that AI is loving in July is Carvana (NYSE:CVNA).
Through six months of the year, CVNA stock has gained 740%. In January, the share price traded at less than $5 apiece. Today, it is near $40. Notably, the meteoric rise of the online used car retailer is widely attributed to a short squeeze. With more than 60% of Carvana’s stock sold short (meaning traders are betting it will go down), retail investors saw this potential short-squeeze target as one to buy.
Apparently, AI didn’t take the effects of a short squeeze into account when recommending CVNA stock. The huge gains in Carvana’s share price this year make little sense. This is especially true when one considers that prices for used vehicles have been spiraling downward. The latest data showed that used car prices in the U.S. fell 4.2% in June from May of this year. Declining prices for used cars is one of the biggest factors in pushing the inflation rate down in America. But try telling that to the “apes” on r/WallStreetBets.
Marathon Digital Holdings (MARA)
Source: Yev_1234 / Shutterstock
Marathon Digital Holdings (NASDAQ:MARA) is a leading cryptocurrency miner, and its stock has been surging this year. So far in 2023, MARA stock is up nearly 400%. This move has been driven higher by the huge rebound in crypto asset prices, notably Bitcoin (BTC-USD), which has rallied 83% year to date and is trading above $30,000 at the time of writing. Other cryptocurrencies such as Ethereum (ETH-USD) are also on the upswing, driving demand and momentum for MARA stock.
In May, Marathon Digital reported that its Bitcoin production surged 74% year-over-year in Q1. It also said its cash holdings rose by $12 million, and the company managed to lower its net debt by $50 million.
Certainly, this is all music to the ears of analysts and investors. Marathon Digital also increased its Bitcoin holdings by 3,132 BTC, and said it plans to further expand its Bitcoin mining operations as crypto prices remain buoyant heading into this year’s second half. Other crypto mining stocks have also risen sharply this year, but MARA stock gets the nod from AI.
C3.ai (AI)
Source: Shutterstock
Perhaps a bit ironically, one of the stock recommendations on this list is pure-play artificial intelligence company C3.ai (NYSE:AI). In many respects, this recommendation makes sense, given the extreme hypergrowth seen in this stock year to date. Since January, AI stock has increased 264%, trouncing the performance of nearly every other security available. Retail investors, in particular, seem to love C3.ai, piling into the stock as they search for any investments related to the artificial intelligence theme.
No mention was made of the fact that C3.ai is a comparatively small company and stock. The company generated only $72.4 million of revenue in its most recent quarter, and holds a market capitalization of $4.65 billion. Additionally, the growing short interest in C3.ai should be considered. Currently, more than a quarter of AI stock is sold short by professional traders, meaning they are betting that the share price will decline in coming months.
Still, for now, momentum seems to be on the side of C3.ai, and it continues to be a hypergrowth stock AI thinks is worth buying.
Nvidia (NVDA)
Source: Below the Sky / Shutterstock.com
Microchip and semiconductor company Nvidia (NASDAQ:NVDA) was the best-performing stock in the S&P 500 benchmark during the first half of 2023. NVDA stock gained 190% between January and the end of June, far outpacing the index’s 16% first half gain. Indeed, NVDA stock continues to be in hypergrowth mode and is now up 206% on the year. Like C3.ai, Nvidia’s bull run can largely be attributed to the role its chips and semiconductors play in artificial intelligence applications.
Seen as a key player in the AI arms race, NVDA stock is now up more than 600% over the last five years. The current rally has pushed the stock to a market capitalization above $1 trillion, officially making Nvidia a mega-cap technology concern. Despite the big run this year, Nvidia’s share price is seen as having more runway ahead. The company is certainly doing all it can to capitalize on the hype surrounding AI, recently unveiling a new supercomputer called DGX GH200 that will help companies create chatbots more powerful than ChatGPT.
Tesla (TSLA)
Source: sdx15 / Shutterstock.com
Electric vehicle maker Tesla (NASDAQ:TSLA) is another AI recommended hypergrowth stock, having risen 152% so far this year. Momentum in the stock has only grown since Tesla announced better-than-expected second quarter production and delivery numbers. The closest approximation to sales the company has, Tesla reported 466,140 vehicle deliveries in Q2, crushing Wall Street forecasts. The rise in deliveries coincided with incentives and discounts offered to buyers in the first half of the year, as well as a $7,500 U.S. federal tax credit.
Tesla’s stock has also come roaring back since company CEO Elon Musk shifted his focus back to the EV maker and away from Twitter, the social media company he bought last fall for $44 billion. There had been concerns among analysts that Tesla faced competitive threats from larger, more established automakers. However, those worries seem to have been calmed by news that players such as Ford Motor Co. (NYSE:F) will pay Tesla for access its charging network, further cementing the company’s lead in the EV market.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Maybe it’s because Apple’s (NASDAQ:AAPL) share price has rallied 52% this year. Or maybe it’s because the company recently became the first publicly traded company to achieve a $3 trillion market capitalization. Whatever the reason, consumer electronics giant Apple is an AI-predicted hypergrowth stock.
Having officially achieved a $3 trillion market valuation, Apple is today the world’s most valuable company. Apple is also one of the few mega-cap technology companies whose gains this year are not driven by its role in artificial intelligence.
Compared to its peers, Apple has relatively little exposure to artificial intelligence. Rather, investors seem to be attracted to the company for its strong balance sheet, impressive free cash flow, and the popularity of its electronic devices like iPhones and MacBook computers. Apple also continues to push into new areas such as online payments and augmented reality headsets. Most recently, Apple announced that it has opened a new store on the popular Chinese social media app WeChat, expanding its reach in the nation of 1.4 billion people.
Amazon (AMZN)
Source: Jonathan Weiss / Shutterstock.com
Momentum behind e-commerce company Amazon (NASDAQ:AMZN) is expected to grow, with its latest Prime Day sales event that ran between July 11 and July 12. Bank of America (NYSE:BAC) analysts forecast that the latest Prime Day will generate $12 billion in sales for Amazon, which would represent 10% year-over-year growth and give the company’s Q3 earnings a nice boost. It could also help to further boost AMZN stock, which is already up more than 50% this year.
Beyond Prime Day, Amazon also recently opened its new second headquarters in Arlington, Virginia and announced plans to unveil a host of new technologies at an event scheduled to take place on September 20. The company said it will release its latest and greatest tech devices at a “Devices and Services” event in September. While it’s not clear what products Amazon plans to unveil at the upcoming event, the company launched the Kindle Scribe e-reader, Halo Rise sleep tracker device, and the Eero PoE 6 router at its similar 2022 event. Stay tuned.
On the date of publication, Joel Baglole held long positions in NVDA, AAPL and BAC. 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 7 Hypergrowth Stocks That AI Is Loving in July appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Maybe it’s because Apple’s (NASDAQ:AAPL) share price has rallied 52% this year. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and BAC. However, those worries seem to have been calmed by news that players such as Ford Motor Co. (NYSE:F) will pay Tesla for access its charging network, further cementing the company’s lead in the EV market.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Maybe it’s because Apple’s (NASDAQ:AAPL) share price has rallied 52% this year. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and BAC. Marathon Digital Holdings (MARA) Source: Yev_1234 / Shutterstock Marathon Digital Holdings (NASDAQ:MARA) is a leading cryptocurrency miner, and its stock has been surging this year.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Maybe it’s because Apple’s (NASDAQ:AAPL) share price has rallied 52% this year. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and BAC. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some stocks have skyrocketed year to date.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Maybe it’s because Apple’s (NASDAQ:AAPL) share price has rallied 52% this year. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and BAC. Here are seven hypergrowth stocks that AI is loving in July.
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2023-07-14 00:00:00 UTC
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Wall St Week Ahead-Investors brace for earnings from ‘Magnificent Seven’ US growth giants
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-investors-brace-for-earnings-from-magnificent-seven-us-growth-giants
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nan
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By Lewis Krauskopf
NEW YORK, July 14 (Reuters) - A handful of massive growth and technology names that have dominated the U.S. stock market in 2023 are set to report earnings in coming weeks, potentially determining the path for this year’s equity rally.
Lately dubbed the “Magnificent Seven” by investors, shares of the U.S. companies with the biggest market values soared between 40% and over 200% so far this year. Those moves have accounted for a lion's share of the S&P 500's 17% year-to-date rise and propelled the index to its highest level since April 2022.
The outsized gains have come with big earnings expectations for the seven companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O. BofA Global Research projects they will increase earnings by an average of 19% over the next 12 months, more than double the an 8% estimated rise for the rest of the S&P 500.
They will need strong results to justify premium valuations. Those companies trade at an overall trailing price-to-earnings ratio of about 40 times, versus 15 times for the S&P 500 excluding those companies, according to BofA.
Their results may be crucial to the market as a whole. Fueled by their recent gains, megacap stocks have climbed to dominate benchmark indexes, causing headaches for some managers of active funds. In the S&P 500, the seven stocks comprise 27.9% of the index's weight.
Investors will look beyond second quarter results, said Bill Callahan, an investment strategist at Schroders.
“It’s also how do these big companies, which are carrying the market ... guide for the rest of the year and into 2024,” he said.
Overall, the seven companies account for 14.3% of overall S&P 500 estimated earnings for the second quarter, and 9.3% of estimated revenue, according to Tajinder Dhillon, senior research analyst at Refinitiv.
Among the reports in the previous quarter, Nvidia was one of the standouts. The semiconductor company's revenue forecast blew past estimates as it said it was boosting supply to meet surging demand for its artificial-intelligence chips, further fanning the market's excitement over AI. Nvidia shares are up well over 200% this year
Tesla is the first of the growth giants to report, with earnings expected on Wednesday. The Elon Musk-led company this month said it delivered a record number of vehicles in the second quarter.
Microsoft and Meta are among the companies due to report the following week, and investors are expected to focus on how companies are seeking to harness AI.
While AI benefits may not immediately materialize for every company, investors are eager to learn "more about how they are going to convert that into money, essentially," said Thomas Martin, senior portfolio manager at Globalt Investments.
"It’s going to take some time for that to work its way through and to show up," said Martin, who is overweight some of the megacap stocks. "Along the way, people are going to want to see some sort of progress."
There are signs market gains are broadening beyond the megacaps. The equal-weight S&P 500 .SPXEW, a proxy for the average stock, is modestly beating the S&P 500 over the past month -- up 3.6% versus about 3% for its counterpart. The equal-weight version trailed badly for most of 2023.
Strong U.S. data have driven confidence the economy can avoid a long-feared recession. A so-called "soft-landing" could lift cyclical stocks such as industrials and small-caps that are trading at cheaper valuations.
But many investors say the corporate giants are nevertheless here to stay as critical holdings.
Yung-Yu Ma, chief investment officer at BMO Wealth Management said that while “there is a lot priced in” to megacaps’ valuations, that did not mean they are overvalued.
"If you think about the megacaps broadly ... they have gone from a core holding of a portfolio to an almost absolute necessary major component of the portfolio once you factor in trends such as AI," he said.
Megacap stocks soar in 2023 https://tmsnrt.rs/3pWulp4
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The outsized gains have come with big earnings expectations for the seven companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O. By Lewis Krauskopf NEW YORK, July 14 (Reuters) - A handful of massive growth and technology names that have dominated the U.S. stock market in 2023 are set to report earnings in coming weeks, potentially determining the path for this year’s equity rally. The semiconductor company's revenue forecast blew past estimates as it said it was boosting supply to meet surging demand for its artificial-intelligence chips, further fanning the market's excitement over AI.
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The outsized gains have come with big earnings expectations for the seven companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O. Nvidia shares are up well over 200% this year Tesla is the first of the growth giants to report, with earnings expected on Wednesday. Megacap stocks soar in 2023 https://tmsnrt.rs/3pWulp4 (Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The outsized gains have come with big earnings expectations for the seven companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O. By Lewis Krauskopf NEW YORK, July 14 (Reuters) - A handful of massive growth and technology names that have dominated the U.S. stock market in 2023 are set to report earnings in coming weeks, potentially determining the path for this year’s equity rally. Those companies trade at an overall trailing price-to-earnings ratio of about 40 times, versus 15 times for the S&P 500 excluding those companies, according to BofA.
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The outsized gains have come with big earnings expectations for the seven companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O. They will need strong results to justify premium valuations. Their results may be crucial to the market as a whole.
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2023-07-14 00:00:00 UTC
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3 Unstoppable Growth Stocks to Buy If There's a Market Sell-Off
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AAPL
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https://www.nasdaq.com/articles/3-unstoppable-growth-stocks-to-buy-if-theres-a-market-sell-off
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nan
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Macroeconomic headwinds caused a stock market sell-off last year, effectively putting shares of some valuable companies on sale. The market downturn presented countless investment opportunities while also highlighting the resilience of some companies' businesses.
As a result, it's not a bad idea to become familiar with some of the best growth stocks, so you're ready to load up in the event of another sell-off.
The tech industry has long had a reputation for offering investors consistent gains thanks to its wealth of growth stocks. The innovative nature of the sector keeps earnings and stock prices trending upward. The chart below shows that the Nasdaq-100 Technolgy Sector index has enjoyed significantly more growth over the last decade than the Nasdaq Composite, proving how lucrative that market can be for investors.
Data by YCharts.
Here are three unstoppable growth stocks to buy if there's a stock market sell-off.
1. Apple
As the world's most valuable company with a market cap of $3 trillion, it's not surprising that Apple (NASDAQ: AAPL) doesn't have its stock go on sale often. Shares are known for stability, rising roughly 300% in the last five years.
Even in 2022's economic downturn, when numerous tech companies suffered from reductions in consumer spending and stock losses, Apple experienced the lowest share price decline of the five biggest tech companies.
Data by YCharts.
Apple's consistent growth is mainly due to the potency of its products. The iPhone overtook Alphabet's Android last year in smartphone market share in the U.S., with Apple hitting the 50% mark.
The achievement is promising because the iPhone is one of the biggest growth drivers for the company's other businesses. The connectivity among all its devices promotes ease of use and means consumers are less likely to turn to competing products if Apple is an option.
This strategy has seen the company achieve leading market shares in nearly all its product categories, including tablets, smartphones, headphones, and smartwatches.
Likewise, the company's dominance in consumer tech bodes well for the long-term prospects of its recently unveiled virtual/augmented reality (VR/AR) headset, the Vision Pro. The VR market is projected to expand at a compound annual rate of 45% through 2030, making Apple's stock an attractive buy at almost any time, but especially in the event of a sell-off.
2. Microsoft
Like Apple, Microsoft (NASDAQ: MSFT) is rarely down for long. The chart above, featuring the big five of tech, shows the company wasn't far behind Apple among the lowest declining tech stocks last year.
Since its founding nearly 50 years ago, Microsoft has proved itself to be a king in software development, with digital products like Windows, Office, and Azure crucial to the productivity of countless businesses and consumers worldwide.
The company's stock has climbed 225% in the last five years. Meanwhile, annual revenue has risen by 58% and operating income by 94% in the same period. Microsoft has achieved massive success in tech, including dominant positions in operating systems, productivity software, video games, and cloud computing. And it doesn't appear to be slowing down, with its prospects in the high-growth artificial intelligence (AI) market.
Microsoft's $10 billion investment in ChatGPT developer OpenAI in 2019 could be one of the best decisions in the company's history. That has allowed it to procure exclusive licenses on multiple AI models and bring AI upgrades to many of its products.
With the power of its popular software brands and OpenAI, Microsoft could become the go-to for anyone seeking AI services. As a result, this growth stock is a no-brainer during a market downturn.
3. Advanced Micro Devices
Shares of Advanced Micro Devices (NASDAQ: AMD) are up roughly 80% since Jan. 1. Wall Street has grown bullish over the company's potential in AI, with its chip business likely to play a crucial role in the sector's growth.
Chipmakers appear to be one of the best stock investments this year as technological advances are likely to bolster demand for the long term. Several areas of tech need powerful hardware to develop, with AMD being one of the few companies producing the chips required.
The semiconductor company's chips already power numerous devices and platforms, including game consoles, laptops, cloud services, custom-built PCs, and more. So one of the best reasons to invest in AMD is to benefit from the growth of each of these markets.
In 2022, macroeconomic hurdles caused shares to plunge 55% throughout the year, mainly driven by declines in the PC industry. But the sell-off proved to be the best time to load up on AMD, with its meteoric rise this year. Consequently, it's a must-buy if the market takes a dive, as its stock is unlikely to stay down forever.
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 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, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple As the world's most valuable company with a market cap of $3 trillion, it's not surprising that Apple (NASDAQ: AAPL) doesn't have its stock go on sale often. The chart below shows that the Nasdaq-100 Technolgy Sector index has enjoyed significantly more growth over the last decade than the Nasdaq Composite, proving how lucrative that market can be for investors. The VR market is projected to expand at a compound annual rate of 45% through 2030, making Apple's stock an attractive buy at almost any time, but especially in the event of a sell-off.
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Apple As the world's most valuable company with a market cap of $3 trillion, it's not surprising that Apple (NASDAQ: AAPL) doesn't have its stock go on sale often. Advanced Micro Devices Shares of Advanced Micro Devices (NASDAQ: AMD) are up roughly 80% since Jan. 1. The semiconductor company's chips already power numerous devices and platforms, including game consoles, laptops, cloud services, custom-built PCs, and more.
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Apple As the world's most valuable company with a market cap of $3 trillion, it's not surprising that Apple (NASDAQ: AAPL) doesn't have its stock go on sale often. Here are three unstoppable growth stocks to buy if there's a stock market sell-off. Even in 2022's economic downturn, when numerous tech companies suffered from reductions in consumer spending and stock losses, Apple experienced the lowest share price decline of the five biggest tech companies.
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Apple As the world's most valuable company with a market cap of $3 trillion, it's not surprising that Apple (NASDAQ: AAPL) doesn't have its stock go on sale often. The chart above, featuring the big five of tech, shows the company wasn't far behind Apple among the lowest declining tech stocks last year. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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14876.0
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2023-07-14 00:00:00 UTC
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After Hours Most Active for Jul 14, 2023 : ATVI, TTD, QQQ, MTCH, FACT, AMZN, AAPL, BEKE, XOM, ANF, T, KO
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jul-14-2023-%3A-atvi-ttd-qqq-mtch-fact-amzn-aapl-beke-xom-anf-t
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nan
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The NASDAQ 100 After Hours Indicator is down -3.29 to 15,562.31. The total After hours volume is currently 78,646,851 shares traded.
The following are the most active stocks for the after hours session:
Activision Blizzard, Inc (ATVI) is +0.06 at $90.13, with 15,626,209 shares traded. As reported by Zacks, the current mean recommendation for ATVI is in the "buy range".
The Trade Desk, Inc. (TTD) is -0.05 at $87.95, with 8,678,909 shares traded. As reported by Zacks, the current mean recommendation for TTD is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.091 at $378.98, with 2,731,232 shares traded. This represents a 49.05% increase from its 52 Week Low.
Match Group, Inc. (MTCH) is unchanged at $48.07, with 2,481,065 shares traded. As reported by Zacks, the current mean recommendation for MTCH is in the "buy range".
Complete Solaria, Inc (FACT) is -0.06 at $7.60, with 2,091,371 shares traded., following a 52-week high recorded in today's regular session.
Amazon.com, Inc. (AMZN) is -0.0408 at $134.64, with 1,790,206 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Apple Inc. (AAPL) is +0.12 at $190.81, with 1,708,144 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
KE Holdings Inc (BEKE) is unchanged at $15.11, with 1,257,020 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Exxon Mobil Corporation (XOM) is +0.01 at $100.95, with 892,914 shares traded. XOM's current last sale is 80.76% of the target price of $125.
Abercrombie & Fitch Company (ANF) is +0.025 at $34.91, with 751,669 shares traded. ANF's current last sale is 104.21% of the target price of $33.5.
AT&T Inc. (T) is +0.02 at $14.52, with 721,011 shares traded. As reported by Zacks, the current mean recommendation for T is in the "buy range".
Coca-Cola Company (The) (KO) is +0.014 at $60.91, with 680,884 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.12 at $190.81, with 1,708,144 shares traded. Complete Solaria, Inc (FACT) is -0.06 at $7.60, with 2,091,371 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is +0.12 at $190.81, with 1,708,144 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for ATVI is in the "buy range".
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Apple Inc. (AAPL) is +0.12 at $190.81, with 1,708,144 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 78,646,851 shares traded.
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Apple Inc. (AAPL) is +0.12 at $190.81, with 1,708,144 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -3.29 to 15,562.31.
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14877.0
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2023-07-14 00:00:00 UTC
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Netflix (NFLX) Gears Up for Q2 Earnings: What's in the Cards?
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-gears-up-for-q2-earnings%3A-whats-in-the-cards
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nan
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nan
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Netflix NFLX is set to report its second-quarter 2023 results on Jul 19.
The company expects its second-quarter earnings to be $2.84 per share, suggesting a year-over-year decline of 11.25%.
The Zacks Consensus Estimate for earnings is currently pegged at $2.81 per share, unchanged over the past 30 days. The figure indicates a 12.19% decline from the year-ago quarter.
Netflix expects total revenues to increase 3.4% year over year to $8.242 billion. The consensus mark for second-quarter revenues is currently pegged at $8.26 billion, suggesting 3.63% growth from the figure reported in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, the average negative surprise being 3.86%.
Netflix, Inc. Price, Consensus and EPS Surprise
Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
Netflix’s second-quarter 2023 results are expected to reflect the impact of paid sharing launch in the United States. The company launched its paid-sharing model in the United States on May 23, notifying members that their accounts cannot be shared for free with users outside their residences.
Moreover, ad-supported low-priced plans are expected to have a modest incremental benefit toward top-line growth in the to-be-reported quarter. The company’s sprawling games portfolio is also expected to have provided a boost to user engagement in the to-be-reported quarter.
Netflix, which currently has a Zacks Rank #3 (Hold), is expected to have benefited from its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nevertheless, stiff competition from streaming services like Disney’s DIS Disney+, HBO Max, Comcast’s CMCSA Peacock, Paramount+, Apple’s AAPL Apple TV+, and Amazon has been a headwind for Netflix. It is also facing competition for consumer time from linear TV, YouTube, short-form entertainment like TikTok, and gaming.
Nevertheless, Netflix’s strong content portfolio is expected to have helped keep the subscriber base intact in the second quarter of 2023.
The company’s shares have gained 52.7% year to date, outperforming the Zacks Broadcast Radio and Television industry’s growth of 31.9%. It has also outperformed Apple, Comcast and Disney.
Shares of Apple, Comcast and Disney have returned 46.6%, 21.7% and 4.1%, respectively.
Top-Line Growth Estimates Positive in Q2
The Zacks Consensus Estimate for paid total streaming net membership additions is pegged at 1.609 million. Netflix gained 1.75 million paid subscribers globally in the first quarter of 2022.
The consensus mark for second-quarter 2023 APAC revenues is pegged at $959 million, indicating 5.6% growth from the figure reported in the year-ago quarter.
Our estimate for Asia-Pacific is pegged at $926.7 million, indicating 2.1% year-over-year growth.
The Zacks Consensus Estimate for Latin America (LATAM) revenues is pegged at $1.08 billion, suggesting 4.6% growth from the figure reported in the previous quarter.
Our estimate for LATAM revenues is pegged at $1.07 billion, indicating 3.9% year-over-year growth.
Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.59 billion, suggesting 5.3% growth from the figure reported in the year-ago quarter.
Our estimate for Europe, Middle East & Africa revenues is pegged at $2.51 billion, suggesting 2% year-over-year growth.
The Zacks Consensus Estimate for the United States and Canada revenues stands at $3.65 billion, indicating 3.1% growth from the figure reported in the year-ago quarter.
Our estimate for the United States and Canada revenues stands at $3.71 billion, indicating 4.8% year-over-year growth.
Upcoming Earnings
Comcast is set to report its second-quarter 2023 results on Jul 27, while Apple’s and Disney’s third-quarter fiscal 2023 results are set for Aug 3 and 9, respectively.
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
Comcast Corporation (CMCSA) : 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.
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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Nevertheless, stiff competition from streaming services like Disney’s DIS Disney+, HBO Max, Comcast’s CMCSA Peacock, Paramount+, Apple’s AAPL Apple TV+, and Amazon has been a headwind for Netflix. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : 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. The Zacks Consensus Estimate for Latin America (LATAM) revenues is pegged at $1.08 billion, suggesting 4.6% growth from the figure reported in the previous quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : 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. Nevertheless, stiff competition from streaming services like Disney’s DIS Disney+, HBO Max, Comcast’s CMCSA Peacock, Paramount+, Apple’s AAPL Apple TV+, and Amazon has been a headwind for Netflix. Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.59 billion, suggesting 5.3% growth from the figure reported in the year-ago quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : 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. Nevertheless, stiff competition from streaming services like Disney’s DIS Disney+, HBO Max, Comcast’s CMCSA Peacock, Paramount+, Apple’s AAPL Apple TV+, and Amazon has been a headwind for Netflix. The Zacks Consensus Estimate for Latin America (LATAM) revenues is pegged at $1.08 billion, suggesting 4.6% growth from the figure reported in the previous quarter.
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Nevertheless, stiff competition from streaming services like Disney’s DIS Disney+, HBO Max, Comcast’s CMCSA Peacock, Paramount+, Apple’s AAPL Apple TV+, and Amazon has been a headwind for Netflix. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : 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. The company expects its second-quarter earnings to be $2.84 per share, suggesting a year-over-year decline of 11.25%.
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14878.0
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2023-07-14 00:00:00 UTC
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See Which Of The Latest 13F Filers Holds Apple
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AAPL
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https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-apple-9
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nan
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nan
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At Holdings Channel, we have reviewed the latest batch of the 31 most recent 13F filings for the 06/30/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 21 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
First Financial Corp IN Existing -1,724 +$366
Sturgeon Ventures LLP Existing +199 +$1,052
Sharkey Howes & Javer Existing -86 +$145
Oxinas Partners Wealth Management LLC Existing +12,753 +$3,331
CFM Wealth Partners LLC Existing -2,546 +$8,368
Venture Visionary Partners LLC Existing -4,703 +$9,705
CCG Wealth Management LLC Existing -1,425 +$104
626 Financial LLC Existing -1,361 +$1,173
Joule Financial LLC Existing -487 +$113
Sightline Wealth Advisors LLC Existing +44 +$7
Park Avenue Securities LLC Existing +8,322 +$11,442
Integrated Advisors Network LLC Existing -33,198 +$2,100
Cornerstone Wealth Management LLC Existing -6,542 +$9,202
LVW Advisors LLC Existing -46,581 -$5,032
Trinity Wealth Management LLC Existing -336 +$136
Gilman Hill Asset Management LLC Existing -475 +$558
Navalign LLC Existing +685 +$3,635
Valeo Financial Advisors LLC Existing -29,774 +$12,154
Touchstone Capital Inc. Existing +1 +$38
FOCUS Wealth Advisors LLC Existing -1,247 +$192
Inscription Capital LLC Existing -11,146 +$848
Aggregate Change: -119,627 +$59,637
In terms of shares owned, we count 6 of the above funds having increased existing AAPL positions from 03/31/2023 to 06/30/2023, with 15 having decreased their positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the AAPL share count in the aggregate among all of the funds which held AAPL at the 06/30/2023 reporting period (out of the 535 we looked at in total). We then compared that number to the sum total of AAPL shares those same funds held back at the 03/31/2023 period, to see how the aggregate share count held by hedge funds has moved for AAPL. We found that between these two periods, funds reduced their holdings by 545,094 shares in the aggregate, from 82,299,996 down to 81,754,902 for a share count decline of approximately -0.66%. The overall top three funds holding AAPL on 06/30/2023 were:
» FUND SHARES OF AAPL HELD
1. Nordea Investment Management AB 17,232,589
2. Cambridge Investment Research Advisors Inc. 4,890,447
3. Perfromance Wealth Partners LLC 4,113,346
4-10 Find out the full Top 10 Hedge Funds Holding AAPL »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Apple Inc (Symbol: AAPL).
10 S&P 500 Components Hedge Funds Are Buying »
Also see:
Stock RSI
Funds Holding RFUN
PPA Dividend 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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At Holdings Channel, we have reviewed the latest batch of the 31 most recent 13F filings for the 06/30/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 21 of these funds. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Apple Inc (Symbol: AAPL). Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers:
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Existing +1 +$38 FOCUS Wealth Advisors LLC Existing -1,247 +$192 Inscription Capital LLC Existing -11,146 +$848 Aggregate Change: -119,627 +$59,637 In terms of shares owned, we count 6 of the above funds having increased existing AAPL positions from 03/31/2023 to 06/30/2023, with 15 having decreased their positions. Perfromance Wealth Partners LLC 4,113,346 4-10 Find out the full Top 10 Hedge Funds Holding AAPL » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 31 most recent 13F filings for the 06/30/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 21 of these funds.
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Existing +1 +$38 FOCUS Wealth Advisors LLC Existing -1,247 +$192 Inscription Capital LLC Existing -11,146 +$848 Aggregate Change: -119,627 +$59,637 In terms of shares owned, we count 6 of the above funds having increased existing AAPL positions from 03/31/2023 to 06/30/2023, with 15 having decreased their positions. Perfromance Wealth Partners LLC 4,113,346 4-10 Find out the full Top 10 Hedge Funds Holding AAPL » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 31 most recent 13F filings for the 06/30/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 21 of these funds.
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At Holdings Channel, we have reviewed the latest batch of the 31 most recent 13F filings for the 06/30/2023 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 21 of these funds. We then compared that number to the sum total of AAPL shares those same funds held back at the 03/31/2023 period, to see how the aggregate share count held by hedge funds has moved for AAPL. Perfromance Wealth Partners LLC 4,113,346 4-10 Find out the full Top 10 Hedge Funds Holding AAPL » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods.
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14879.0
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2023-07-14 00:00:00 UTC
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iShares Core S&P 500 ETF Experiences Big Inflow
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AAPL
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https://www.nasdaq.com/articles/ishares-core-sp-500-etf-experiences-big-inflow-6
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.8 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 753,150,000 to 757,200,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.2%, Microsoft Corporation (Symbol: MSFT) is up about 2.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 1.1%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $453.75 as the 52 week high point — that compares with a last trade of $452.91. 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:
Joel Greenblatt Stock Picks
EWD Options Chain
DBL Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.2%, Microsoft Corporation (Symbol: MSFT) is up about 2.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 1.1%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.2%, Microsoft Corporation (Symbol: MSFT) is up about 2.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 1.1%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $453.75 as the 52 week high point — that compares with a last trade of $452.91. 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 ».
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.2%, Microsoft Corporation (Symbol: MSFT) is up about 2.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.8 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 753,150,000 to 757,200,000). 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 $453.75 as the 52 week high point — that compares with a last trade of $452.91.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 0.2%, Microsoft Corporation (Symbol: MSFT) is up about 2.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.8 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 753,150,000 to 757,200,000). 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 $453.75 as the 52 week high point — that compares with a last trade of $452.91.
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14880.0
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2023-07-14 00:00:00 UTC
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Stock Market News for Jul 14, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-jul-14-2023
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nan
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nan
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U.S. stocks closed sharply higher on Thursday to record their fourth straight day of gains led by a tech rally after fresh data showed that the producer price inflation slowed further in June. This raised hopes that the Fed could finally end its interest rate hike campaign. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.1% or 47.71 points to end at 34,395.14 points.
The S&P 500 jumped 0.9% or 37.88 points to close at 4,510.04 points, finishing above the 4,500 mark for the first time since Apr 5, 2022, when it ended at 4,545.86 points. Communication services and tech stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) rose 1.3%. The Communication Services Select Sector SPDR (XLC) and Consumer Discretionary Select Sector SPDR (XLY) gained 1.5% and 0.9%, respectively. Ten of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq advanced 1.6% or 219.61 points to finish at 14,138.57 points.
The fear-gauge CBOE Volatility Index (VIX) was up 0.52% to 13.61. Advancers outnumbered decliners on the NYSE by a 2.90-to-1 ratio. On Nasdaq, a 1.93-to-1 ratio favored advancing issues. A total of 10.82 billion shares were traded on Thursday, lower than the last 20-session average of 11.11 billion.
Cooling Inflation Boosts Investors’ Confidence
Stocks extended their rally for the fourth consecutive session on Thursday as the latest batch of economic data showed that inflation eased further in June and the Fed’s aggressive interest rate hike stance managed to bring down inflation without pushing the economy into a recession.
The Bureau of Labor Statistics reported on Thursday that the producer price index (PPI) rose a modest 0.1% month over month in June, beating analysts’ expectation of an increase of 0.2%. Core PPI, which excludes the volatile energy and food prices, also rose 0.1%, which came in line with expectations.
The PPI data came a day after data showed that the consumer price index (CPI) rose 0.2% month over month in June, its slowest pace of increase since March 2021. The back-to-back data released over the week has raised hopes among investors that the Fed might finally end its interest rate hike campaign in the coming days.
The encouraging data saw borrowing costs dropping further, with the 10-year Treasury yield dropping to 3.759% after hovering around 4.1% at the beginning of the week. This is the lowest level since Jun 28.
Tech stocks led the rally with big tech companies recording gains. Shares of Microsoft Corporation (MSFT) gained 1.6%, while Netflix, Inc. (NFLX) advanced 1.4%. Also, Apple Inc. (AAPL) ended 0.4%. Microsoft has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Investors are now looking forward to the second-quarter earnings season, with some of the major banks scheduled to report their quarterly results.
Economic Data
In other economic data, the Labor Department reported that jobless claims totaled 237,000 for the week ending Jul 8, a decrease of 12,000 from the previous week’s revised level. The previous week’s level was revised up by 1,000 to 249,000. The four-week moving average was 246,750, a decrease of 6,750 from the previous week’s revised average of 253,500.
Continuing claims came in at 1,729,000, an increase of 11,000 from the previous week’s revised level of 1,718,000. The 4-week moving average was 1,735,250 a decrease of 10,750 from the previous week's revised average of 1,746,000.
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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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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Also, Apple Inc. (AAPL) ended 0.4%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed sharply higher on Thursday to record their fourth straight day of gains led by a tech rally after fresh data showed that the producer price inflation slowed further in June.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report To read this article on Zacks.com click here. Also, Apple Inc. (AAPL) ended 0.4%. U.S. stocks closed sharply higher on Thursday to record their fourth straight day of gains led by a tech rally after fresh data showed that the producer price inflation slowed further in June.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report To read this article on Zacks.com click here. Also, Apple Inc. (AAPL) ended 0.4%. Cooling Inflation Boosts Investors’ Confidence Stocks extended their rally for the fourth consecutive session on Thursday as the latest batch of economic data showed that inflation eased further in June and the Fed’s aggressive interest rate hike stance managed to bring down inflation without pushing the economy into a recession.
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Also, Apple Inc. (AAPL) ended 0.4%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed sharply higher on Thursday to record their fourth straight day of gains led by a tech rally after fresh data showed that the producer price inflation slowed further in June.
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14881.0
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2023-07-14 00:00:00 UTC
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If I Could Only Buy 5 Stocks, Here's What They Would Be
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AAPL
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https://www.nasdaq.com/articles/if-i-could-only-buy-5-stocks-heres-what-they-would-be
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nan
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nan
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I own several dozen stocks in my portfolio, but some are smaller and speculative positions I'm comfortable with because my portfolio is diverse. However, if I could only put my money into a handful of stocks, I'd be completely fine owning just these five for the long haul.
*Stock prices used were the afternoon prices of July 11, 2023. The video was published on July 12, 2023.
10 stocks we like better than Berkshire Hathaway
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*Stock Advisor returns as of July 10, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Matthew Frankel, CFP® has positions in Amazon.com, Berkshire Hathaway, Realty Income, and Walt Disney. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Walt Disney. The Motley Fool recommends Realty Income and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
Matthew Frankel 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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However, if I could only put my money into a handful of stocks, I'd be completely fine owning just these five for the long haul. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Walt Disney.
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Matthew Frankel, CFP® has positions in Amazon.com, Berkshire Hathaway, Realty Income, and Walt Disney. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Walt Disney. The Motley Fool recommends Realty Income and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney.
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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. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Walt Disney. The Motley Fool recommends Realty Income and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney.
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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! Matthew Frankel, CFP® has positions in Amazon.com, Berkshire Hathaway, Realty Income, and Walt Disney. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Walt Disney.
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14882.0
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2023-07-14 00:00:00 UTC
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Can Shiba Inu Reach $0.01?
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AAPL
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https://www.nasdaq.com/articles/can-shiba-inu-reach-%240.01-2
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nan
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nan
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Without a doubt, Shiba Inu (CRYPTO: SHIB) probably had the best run in crypto market history. The token absolutely skyrocketed in the first 10 months of 2021. Certainly, some investors got rich very quickly.
But as of this writing, this digital asset, which ranks as the 17th most valuable in the world, is down more than 90% from its all-time high of $0.00008845 in October 2021. And now, investors might be eyeing Shiba Inu in the hopes of another rapid rise.
Can Shiba Inu reach $0.01 per token, amounting to a monster gain of 133,000% from today's price? Let's look at some factors working in its favor, as well as why I don't think this is ever going to happen.
Why it could happen
Perhaps, like every other cryptocurrency, the most important factor in Shiba Inu's favor is its community of supporters. Dogecoin, its inspiration, has seen public displays of support from the likes of billionaires Elon Musk and Mark Cuban. So, it's not crazy to believe that Shiba Inu was trying to ride its own hype cycle to prominence. The token's official Twitter account has nearly 4 million followers, a sign of the amount of attention it gets.
But Shiba Inu has one main advantage over Dogecoin, and that's the fact that it's built to be compatible with the overall Ethereum ecosystem. This means Shiba Inu's tokens can work with various wallets and exchanges, for example.
Shiba Inu has a potential catalyst on the horizon that could push up its price. Shibarium is a Layer-2 solution that's created on top of Shiba Inu's main network. The entire premise of this development is to reduce transaction fees and speed up settlement times. And by creating a more efficient blockchain network, maybe Shiba Inu can become a top cryptocurrency when it comes to decentralized applications, specifically for gaming and metaverse use cases.
Why it's not a likely outcome
Some might think that the bullish arguments that I laid out above are compelling enough to lift the price of the token to a penny over time. But I'm not so convinced.
To its credit, Shiba Inu does have a burning strategy in place to reduce its token supply. However, there are currently a whopping 589 trillion coins in circulation. A massive number of coins would need to be burned and removed from circulation to have any meaningful impact on the outstanding supply.
But if we assume that the price of one token does reach $0.01, and the circulating supply stays at its current level, this means the network's market cap would be $5.9 trillion. That's a ridiculously large amount, equal to roughly 25% of the total gross domestic product of the U.S.
For comparison's sake, this would make Shiba Inu more valuable than FAANG stocks like Apple or Amazon. Is it likely that Shiba Inu will be worth more than these dominant businesses that sell products and services that are essential to consumers and businesses? I don't think so.
And I just don't see a reason for the existence of Shiba Inu in the first place. Only 762 merchants accept Shiba Inu for payment, a minuscule number. Shiba Inu also seriously lacks when it comes to attracting developers to work on advancing its network. This doesn't bode well for its future.
There are now a bunch of other dog-themed meme coins out there competing for speculators' dollars. Besides Dogecoin and Shiba Inu, there's also Baby Dogecoin, Jindo Inu, and Alaska Inu.
For long-term investors who aren't trying to time the market and achieve a quick profit, it's better to turn your attention to Bitcoin or Ethereum, as these cryptocurrencies have much more potential. Therefore, investors should think twice before deciding to buy Shiba Inu.
10 stocks we like better than Shiba Inu
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 Shiba Inu wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of July 10, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Bitcoin, and Ethereum. 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 by creating a more efficient blockchain network, maybe Shiba Inu can become a top cryptocurrency when it comes to decentralized applications, specifically for gaming and metaverse use cases. That's a ridiculously large amount, equal to roughly 25% of the total gross domestic product of the U.S. For comparison's sake, this would make Shiba Inu more valuable than FAANG stocks like Apple or Amazon. For long-term investors who aren't trying to time the market and achieve a quick profit, it's better to turn your attention to Bitcoin or Ethereum, as these cryptocurrencies have much more potential.
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Can Shiba Inu reach $0.01 per token, amounting to a monster gain of 133,000% from today's price? This means Shiba Inu's tokens can work with various wallets and exchanges, for example. Shibarium is a Layer-2 solution that's created on top of Shiba Inu's main network.
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Besides Dogecoin and Shiba Inu, there's also Baby Dogecoin, Jindo Inu, and Alaska Inu. 10 stocks we like better than Shiba Inu When our analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu wasn't one of them!
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Can Shiba Inu reach $0.01 per token, amounting to a monster gain of 133,000% from today's price? Let's look at some factors working in its favor, as well as why I don't think this is ever going to happen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu wasn't one of them!
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14883.0
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2023-07-14 00:00:00 UTC
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2 Under-the-Radar Gaming Stocks You Can Buy and Hold for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/2-under-the-radar-gaming-stocks-you-can-buy-and-hold-for-the-next-decade-8
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nan
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nan
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The video games market is projected to achieve a value of $385 billion in 2023 and rise another 36% by 2027, hitting $522 billion. Thanks to a never-ending stream of new content and technological advances, the industry is one of the most consistently expanding sectors.
Like clockwork, the developing nature of the market forces consumers to upgrade their gaming hardware every few years to continue playing the newest titles, and companies can benefit from reliable long-term growth.
As a result, it's not surprising many of the world's biggest tech companies have entered the games industry. Meanwhile, the market's consistent growth is a compelling reason to add a gaming stock to your portfolio and hold it for the long term. The right stock can strengthen your holdings and lower investment risk.
It might be tempting to seek stocks for some of the market's most dominant players, such as Sony, Nintendo, and Microsoft. However, some lesser-known options could offer more growth over the long term.
Here are two under-the-radar gaming stocks you can buy and hold for the next decade.
1. Advanced Micro Devices
All eyes have been on Advanced Micro Devices' (NASDAQ: AMD) prospects in artificial intelligence (AI) in 2023. However, before the current boom in AI, the chipmaker was best known for its contributions to gaming. AMD is one of the biggest suppliers of chips in the space, and as technology continues to develop, demand for its hardware will likely soar.
AMD is an attractive gaming stock as its chips allow it to benefit from multiple areas of gaming, including consoles and PCs. The company has a lucrative position as the exclusive supplier of chips to Sony's PlayStation 5 and Microsoft's Xbox Series X|S. These companies' consoles are easily two of the most popular gaming machines in the world, with AMD's stock an excellent way to benefit from the sales of both.
In fact, last year's economic downturn caused many tech companies to suffer declines in consumer spending. However, AMD's gaming segment earned its largest portion of revenue in fiscal 2022 and reported growth of 21% year over year, driven almost entirely by high demand for Sony and Microsoft's consoles.
Moreover, AMD's line of consumer computer components, such as graphics processing units (GPUs) and central processing units (CPUs), has had massive success in the personal computer (PC) gaming community. The company's hardware is used to power custom-built gaming computers worldwide and has boosted AMD's client segment over the years.
The segment had some trouble amid PC market declines last year. However, as inflation eases, AMD will be well positioned to profit from the industry's recovery and growth.
AMD's stock rose about 565% in the last five years. With the power of gaming and AI, it has the potential to continue on its current growth trajectory over the next half-decade.
2. Apple
Apple (NASDAQ: AAPL) might not be the first company that comes to mind in a discussion about gaming. However, the tech giant's high-profit App Store, filled with countless mobile games, and its subscription-based service Apple Arcade, have made it the third-largest games company in the world by revenue, only after Tencent and Sony.
In 2021, Apple earned an estimated $15.3 billion in games revenue, an increase of 18% from the previous year. The company's revenue grew more than any of the most renowned names in the market, including Microsoft, Sony, and Nintendo.
The iPhone maker's success in gaming is primarily driven by its App Store, where games make up about 70% of the platform's revenue. Apple charges a 30% standard commission on all app purchases, with that fee falling to 15% after a year. However, it's the free-to-play games that offer in-app purchases that have given a massive boost to the company's gaming earnings.
The explosive rise of these games helped make Apple's services segment the second-highest earning part of its business, hitting $78 billion in fiscal 2022. Meanwhile, revenue growth achieved 14%, double that of the iPhone.
Additionally, Apple's virtual/augmented reality headset, the Vision Pro, could see the company venture into the hardware side of gaming. The device launched at a starting price of $3,499, locking out many consumers. However, if future generations of the Vision Pro launch at more competitive pricing, the company could use it to expand its position in VR/AR gaming.
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 10, 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 Tencent. The Motley Fool recommends Nintendo. 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) might not be the first company that comes to mind in a discussion about gaming. Like clockwork, the developing nature of the market forces consumers to upgrade their gaming hardware every few years to continue playing the newest titles, and companies can benefit from reliable long-term growth. The company's hardware is used to power custom-built gaming computers worldwide and has boosted AMD's client segment over the years.
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Apple Apple (NASDAQ: AAPL) might not be the first company that comes to mind in a discussion about gaming. Advanced Micro Devices All eyes have been on Advanced Micro Devices' (NASDAQ: AMD) prospects in artificial intelligence (AI) in 2023. Moreover, AMD's line of consumer computer components, such as graphics processing units (GPUs) and central processing units (CPUs), has had massive success in the personal computer (PC) gaming community.
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Apple Apple (NASDAQ: AAPL) might not be the first company that comes to mind in a discussion about gaming. AMD is an attractive gaming stock as its chips allow it to benefit from multiple areas of gaming, including consoles and PCs. However, AMD's gaming segment earned its largest portion of revenue in fiscal 2022 and reported growth of 21% year over year, driven almost entirely by high demand for Sony and Microsoft's consoles.
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Apple Apple (NASDAQ: AAPL) might not be the first company that comes to mind in a discussion about gaming. However, AMD's gaming segment earned its largest portion of revenue in fiscal 2022 and reported growth of 21% year over year, driven almost entirely by high demand for Sony and Microsoft's consoles. The company's hardware is used to power custom-built gaming computers worldwide and has boosted AMD's client segment over the years.
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14884.0
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2023-07-14 00:00:00 UTC
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Could This 1 Stock Be a Winner From China's Possible Export Curbs on Rare Earth Metals?
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AAPL
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https://www.nasdaq.com/articles/could-this-1-stock-be-a-winner-from-chinas-possible-export-curbs-on-rare-earth-metals
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nan
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nan
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The semiconductor and tech manufacturing industries are on high alert since China fired off a response in the ongoing trade tensions between the U.S. and China. After facing a couple of years of chip and chip technology export bans -- specifically surrounding those needed to build advanced AI systems -- China placed export restrictions on niche semiconductor materials gallium and germanium. Companies will have to begin applying for licenses to buy these materials from China, which plays a dominant role in producing them.
The fear now is that export curbs could spread to rare earth metals, which China has an even more dominant role in supplying. It's happened before: China halted Japan's access to rare earths in 2010 during a spat over territorial disputes over small some small islands.
That has reinvigorated some optimism for U.S.-based MP Materials (NYSE: MP). Shares are down 15% over the last year as inflated prices in many mined products have moderated, but the stock rallied a bit following China's move on semiconductors. Could this be a winning investment in the battle for rare earth metals supply?
MP as an EV play
Rare earth metals are usually considered to be a group of 15 elements on the periodic table, ranging from lanthanum (La) to lutetium (Lu). They are often added to other base materials used in things like semiconductors, batteries, and magnets, which are used to power all sorts of electrical motion devices in areas like healthcare, industrial applications, and wind turbines. While rare earths often exist together in trace amounts among other more common elements, rare earths aren't exactly all that rare. So what makes them scarce?
As MP CEO and founder James Litinsky said at a recent investor conference, "What is really rare is having an economic enough concentration to process [rare earths] efficiently." In other words, it takes substantial monetary investment and hoop jumping to get into the rare earths mining game.
Because of the complex processes needed to separate and refine rare earths, as well as environmental issues, China mopped up market share of this niche of the mining industry over the last few decades. And besides accounting for the majority of rare earth supply, China also has a stranglehold on its refinement. Litinsky also pointed out that 90% of rare earth magnets are made in China.
With geopolitical tensions hot, and reliance on powerful magnets for things like electric vehicles (EVs) ballooning, this is the geographical void MP is filling. It and one other company (Lynas Rare Earths (OTC: LYSDY)) are the only two public suppliers operating at significant scale not domiciled in China. MP is particularly focusing on neodymium and praseodymium (often combined under the symbol NdPr) from its Mountain Pass mine just outside of Las Vegas. The two elements are used in magnets, especially in the nascent EV industry.
More than just mining is needed
Litinsky noted that MP now represents "15% of global rare earth content," and has the potential to scale its operations higher. But in keeping with the previously mentioned statement that rare earths' scarcity comes from capital investment intensity, MP is doing more than just mining raw rare earth elements.
To meet the extraordinary growth expected over the next decade (perhaps an average of 20% to 30% growth in rare earth materials demand), MP commissioned rare earth refining at its mining site. And in an additional "third phase" of its expansion, it broke ground on a new "downstream" magnet alloys plant in Texas last year.
The project is being built in conjunction with a supply agreement with General Motors (NYSE: GM) as it tries to ramp up its premium EV sales. Besides providing the refined metals needed in EV motors, MP will also be able to recycle existing rare earths already on the market -- a significant capability, as some tech companies like Apple (NASDAQ: AAPL) have noted their desire to reduce dependence on new supplies of rare earths and source from recyclers instead due to environmental concerns.
Risks for MP, despite a tidal wave of demand
Like any emerging growth business, MP faces challenges. Tesla (NASDAQ: TSLA) made waves when it said it's cut rare earths down by about 25% in its Model 3s. An upcoming EV model (likely a more affordable entry-level car) may not utilize rare earth magnets at all. Existing EV models probably won't ditch more expensive rare earth magnets in high-end powerful motors, but cheaper EVs are needed to continue to propel global adoption. If engineers can figure out how to make non-rare-earth magnets more efficient, MP could lose out on some sales.
Additionally, like any mined product, rare earth market prices can vary wildly from one year to the next -- which has a very direct effect on sales, and ultimately profitability. That has been a key driver in MP's recent earnings reports, as rare earth market prices are down some 50% from 2022 levels.
Data by YCharts.
Nevertheless, rare earth demand is expected to outstrip supply in the coming decade, and geopolitical scuffles between the U.S. and China might only exacerbate the problem. That is what has kept MP on my watchlist since I started "digging" into the company last year. Rare earth prices are down in 2023, but could be poised for a rally as tech manufacturing around the globe is set to heat up in 2024. MP stock currently trades for 45 times analysts' expected earnings per share for 2023, but just under 21 times expected 2024 earnings. It's also very well funded, with cash and short-term investments of nearly $1.2 billion, offset by debt of $679 million.
MP is on my watchlist. If mined material prices start to bottom out and rebound later this year, MP could shoot up my list of stocks to buy.
10 stocks we like better than MP Materials
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 MP Materials 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
Nicholas Rossolillo and his clients have positions in Apple and Tesla. The Motley Fool has positions in and recommends Apple and Tesla. The Motley Fool recommends General Motors and MP Materials and recommends the following options: long January 2025 $25 calls on General Motors. 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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Besides providing the refined metals needed in EV motors, MP will also be able to recycle existing rare earths already on the market -- a significant capability, as some tech companies like Apple (NASDAQ: AAPL) have noted their desire to reduce dependence on new supplies of rare earths and source from recyclers instead due to environmental concerns. MP as an EV play Rare earth metals are usually considered to be a group of 15 elements on the periodic table, ranging from lanthanum (La) to lutetium (Lu). They are often added to other base materials used in things like semiconductors, batteries, and magnets, which are used to power all sorts of electrical motion devices in areas like healthcare, industrial applications, and wind turbines.
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Besides providing the refined metals needed in EV motors, MP will also be able to recycle existing rare earths already on the market -- a significant capability, as some tech companies like Apple (NASDAQ: AAPL) have noted their desire to reduce dependence on new supplies of rare earths and source from recyclers instead due to environmental concerns. To meet the extraordinary growth expected over the next decade (perhaps an average of 20% to 30% growth in rare earth materials demand), MP commissioned rare earth refining at its mining site. MP stock currently trades for 45 times analysts' expected earnings per share for 2023, but just under 21 times expected 2024 earnings.
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Besides providing the refined metals needed in EV motors, MP will also be able to recycle existing rare earths already on the market -- a significant capability, as some tech companies like Apple (NASDAQ: AAPL) have noted their desire to reduce dependence on new supplies of rare earths and source from recyclers instead due to environmental concerns. But in keeping with the previously mentioned statement that rare earths' scarcity comes from capital investment intensity, MP is doing more than just mining raw rare earth elements. To meet the extraordinary growth expected over the next decade (perhaps an average of 20% to 30% growth in rare earth materials demand), MP commissioned rare earth refining at its mining site.
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Besides providing the refined metals needed in EV motors, MP will also be able to recycle existing rare earths already on the market -- a significant capability, as some tech companies like Apple (NASDAQ: AAPL) have noted their desire to reduce dependence on new supplies of rare earths and source from recyclers instead due to environmental concerns. The two elements are used in magnets, especially in the nascent EV industry. If mined material prices start to bottom out and rebound later this year, MP could shoot up my list of stocks to buy.
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14885.0
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2023-07-14 00:00:00 UTC
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Got $3,000? 2 Tech Stocks to Buy and Hold for the Long Term
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AAPL
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https://www.nasdaq.com/articles/got-%243000-2-tech-stocks-to-buy-and-hold-for-the-long-term-9
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If you have extra cash to invest, Taiwan Semiconductor Manufacturing (NYSE: TSM) and Apple (NASDAQ: AAPL) are two stocks that should deliver satisfactory returns over the next five years and beyond.
Taiwan Semiconductor Manufacturing, or TSMC as it is also known, has a bright future providing advanced computing chips for the world's leading semiconductor companies. Apple is one of the most valuable brands in the world, generating $385 billion annually in revenue from products and services.
If you have $3,000 available to invest that isn't needed to pay monthly bills, bolster an emergency fund, or pay off short-term debt, you might want to consider investing $1,500 in each of these two tech stocks as part of a diversified portfolio. Here's why.
1. Taiwan Semiconductor Manufacturing
TSMC is the world's leading chip foundry with a 58% market share, according to Statista. As such, it is in business to manufacture processors for other semiconductor companies.
Increasing demand, especially in data centers, has driven tremendous growth for the business in recent years. Over the last 10 years, revenue rose 15% per year, with earnings up nearly 20%. However, slowing demand from macroeconomic headwinds pressured results this year. Despite revenue increasing 29% in 2022, the stock fell hard, as the market anticipated slowing demand heading into 2023. This materialized as expected, with revenue in the month of June down 11% over May.
Still, the stock price has been rising, up 35% year to date. This is largely based on the long-term demand for products that will require more-advanced chips, especially in 5G wireless products and high-performance computing (e.g., data centers). Management previously stated that it believed the second quarter would represent the bottom of the recent sales slump. In fact, demand for artificial intelligence (AI) applications might only expand the company's growth potential, since AI requires tremendous amounts of computing power.
New technologies are a long-term catalyst for the leading foundry in the world. TSMC is currently producing the latest 3-nanometer chip technology that will go to market in the second half of the year. The company is also working on the next-generation 2nm technology planned for production in 2025.
TSMC's ability to invest in future technologies to stay ahead of the curve is a key advantage and explains why it commands such a high share of the foundry industry. It is extremely profitable, generating nearly a 44% margin. With so much profit, TSMC can stay on the cutting edge of innovation for customers.
Despite the rebound in the stock, it is still trading at an attractive valuation. Its forward price-to-earnings (P/E) ratio of 20 represents a discount to the S&P 500's 25 multiple, suggesting Taiwan Semiconductor might be undervalued considering the long-term secular demand for advanced chips across every sector of the global economy. It also pays an above-average dividend yield of 1.77%.
2. Apple
Apple stock has surged to new highs this year, which might surprise investors, considering total sales fell nearly $10 billion year over year to $212 billion through the first half of the fiscal year. The lower sales translated to a small dip in profits, too, but reports about the upcoming iPhone 15's pricing might have investors expecting a return to growth next year.
Over the last 10 years, Apple increased revenue by nearly 10% per year, with earnings rising nearly 15%. Apple's brand strength and pricing power should allow the company to grow enough over the next decade for the stock to climb in line with the broader market, if not outperform it.
Apple is reportedly planning to hike the price of the iPhone 15 Pro models, according to Haitong International Securities analyst Jeff Pu. This follows similar price increases in international markets last year, but apparently, the company is preparing to further separate the pricing between the high-end models and the standard version.
While some might expect lower demand as a result of the price hikes, it could be good news for shareholders. The company reported a March-quarter record for iPhone and services last quarter. Demand outstripped supply after the launch of the iPhone 14 last year due to supply shortages from China, but a similar story could play out this year for different reasons. Apple has been adding enough features to the Pro models in recent years to drive up demand for the more expensive versions. It can ask a higher price while giving customers more improvements, such as extending the battery life, adding more advanced health tracking features, and including other upgrades that build more pricing power into the business.
A price increase of $100 to $200 for the Pro models might amount to a $5 to $10 increase per month for customers who buy their phones with Apple's interest-free financing. In return, the company can pad its top and bottom lines.
The stock is not cheap, trading at a forward P/E of 31 with a low dividend yield of 0.5%. But even Warren Buffett was buying more shares in the first quarter. Companies that can raise prices on their products are worth more than the average business.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you have extra cash to invest, Taiwan Semiconductor Manufacturing (NYSE: TSM) and Apple (NASDAQ: AAPL) are two stocks that should deliver satisfactory returns over the next five years and beyond. TSMC's ability to invest in future technologies to stay ahead of the curve is a key advantage and explains why it commands such a high share of the foundry industry. Its forward price-to-earnings (P/E) ratio of 20 represents a discount to the S&P 500's 25 multiple, suggesting Taiwan Semiconductor might be undervalued considering the long-term secular demand for advanced chips across every sector of the global economy.
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If you have extra cash to invest, Taiwan Semiconductor Manufacturing (NYSE: TSM) and Apple (NASDAQ: AAPL) are two stocks that should deliver satisfactory returns over the next five years and beyond. Taiwan Semiconductor Manufacturing, or TSMC as it is also known, has a bright future providing advanced computing chips for the world's leading semiconductor companies. Taiwan Semiconductor Manufacturing TSMC is the world's leading chip foundry with a 58% market share, according to Statista.
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If you have extra cash to invest, Taiwan Semiconductor Manufacturing (NYSE: TSM) and Apple (NASDAQ: AAPL) are two stocks that should deliver satisfactory returns over the next five years and beyond. Apple Apple stock has surged to new highs this year, which might surprise investors, considering total sales fell nearly $10 billion year over year to $212 billion through the first half of the fiscal year. This follows similar price increases in international markets last year, but apparently, the company is preparing to further separate the pricing between the high-end models and the standard version.
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If you have extra cash to invest, Taiwan Semiconductor Manufacturing (NYSE: TSM) and Apple (NASDAQ: AAPL) are two stocks that should deliver satisfactory returns over the next five years and beyond. Taiwan Semiconductor Manufacturing, or TSMC as it is also known, has a bright future providing advanced computing chips for the world's leading semiconductor companies. Taiwan Semiconductor Manufacturing TSMC is the world's leading chip foundry with a 58% market share, according to Statista.
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2023-07-14 00:00:00 UTC
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Is This Top Tech Stock About to Become the Next $3 Trillion Company?
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https://www.nasdaq.com/articles/is-this-top-tech-stock-about-to-become-the-next-%243-trillion-company
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Microsoft (NASDAQ: MSFT) is on the brink of joining the most exclusive stock market club in the world.
At least, that's according to a noted tech sector analyst who believes the company's share price can swell to hit the once-unthinkable $3 trillion market cap. The stock still has some distance to go, with that metric standing at a mere $2.47 trillion as of this writing. Let's gaze into the crystal ball to see whether this prognosticator's projection might be realistic.
Artificial intelligence, genuine growth
That $3 trillion mark is freshly significant for many market players, as that's the level Microsoft peer/rival Apple (NASDAQ: AAPL) reached at the end of June -- the only U.S. stock to have ever done so. Since then, unfortunately for Apple shareholders like myself, it's retreated somewhat but is still hovering just shy of that level.
The person who believes Microsoft can join the $3 trillion club is veteran tech industry analyst Dan Ives of Wedbush Securities. In his view, the reigning king of Redmond could become a member of that grouping in 2024.
For Microsoft watchers, it won't come as a shock to learn Ives' main line of reasoning behind this confident prediction -- the company's deep involvement in artificial intelligence (AI). It's heavily invested in OpenAI, the privately held company responsible for the ultra-popular ChatGPT app.
Microsoft, of course, isn't plowing capital into OpenAI to keep a bunch of AI specialists employed or to altruistically push the technology forward. The company intends to harness AI to bolster its own offerings, both of the free variety (with its Bing search engine) and paid, notably its rather successful and ever-growing Azure cloud computing service.
This is the foundation of Ives' belief that Microsoft's market cap will reach $3 trillion next year. According to his estimates, having OpenAI in its hip pocket means Microsoft can reap an additional $35 to $40 in spending (for AI add-ons) for every $100 currently laid out by clients on Azure services.
Of the company's three operating segments, intelligent cloud -- the one to which Azure belongs -- booked a 25% annual increase in revenue in fiscal 2022. That was the highest growth among the trio and widened the segment's lead in terms of contribution to overall revenue (at 38%, up from 34% only two years prior).
In other words, in a world always hungry for cloud functionalities, Azure is big and quickly getting ever bigger. We can imagine the effect an AI-powered jump in Azure spending might have on that dynamic.
Unstoppable AI
Microsoft doesn't exist in a vacuum, of course. Ives feels that numerous companies involved in AI will reap the benefits of the technology's popularity in the months and years to come. Not only that, in his view, this will spill over into a sustained bull market for tech companies in general.
For instance, he's counting on Apple to continue to shatter the market cap record. He feels it can even reach the $4 trillion line by 2025.
I think the analyst's predictions are very realistic, both for the entirety of the tech sector and for Microsoft specifically (and Apple, while we're at it). Planet Earth is only at the very beginning of the AI Revolution, and Microsoft is in the vanguard. It might even top mighty Apple's market cap if it plays the situation well.
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Eric Volkman has positions in Apple. 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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Artificial intelligence, genuine growth That $3 trillion mark is freshly significant for many market players, as that's the level Microsoft peer/rival Apple (NASDAQ: AAPL) reached at the end of June -- the only U.S. stock to have ever done so. For Microsoft watchers, it won't come as a shock to learn Ives' main line of reasoning behind this confident prediction -- the company's deep involvement in artificial intelligence (AI). The company intends to harness AI to bolster its own offerings, both of the free variety (with its Bing search engine) and paid, notably its rather successful and ever-growing Azure cloud computing service.
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Artificial intelligence, genuine growth That $3 trillion mark is freshly significant for many market players, as that's the level Microsoft peer/rival Apple (NASDAQ: AAPL) reached at the end of June -- the only U.S. stock to have ever done so. The person who believes Microsoft can join the $3 trillion club is veteran tech industry analyst Dan Ives of Wedbush Securities. This is the foundation of Ives' belief that Microsoft's market cap will reach $3 trillion next year.
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Artificial intelligence, genuine growth That $3 trillion mark is freshly significant for many market players, as that's the level Microsoft peer/rival Apple (NASDAQ: AAPL) reached at the end of June -- the only U.S. stock to have ever done so. For Microsoft watchers, it won't come as a shock to learn Ives' main line of reasoning behind this confident prediction -- the company's deep involvement in artificial intelligence (AI). This is the foundation of Ives' belief that Microsoft's market cap will reach $3 trillion next year.
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Artificial intelligence, genuine growth That $3 trillion mark is freshly significant for many market players, as that's the level Microsoft peer/rival Apple (NASDAQ: AAPL) reached at the end of June -- the only U.S. stock to have ever done so. This is the foundation of Ives' belief that Microsoft's market cap will reach $3 trillion next year. According to his estimates, having OpenAI in its hip pocket means Microsoft can reap an additional $35 to $40 in spending (for AI add-ons) for every $100 currently laid out by clients on Azure services.
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14887.0
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2023-07-14 00:00:00 UTC
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90% of Warren Buffett's $372 Billion Portfolio Is Invested in Only 14 Stocks
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AAPL
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https://www.nasdaq.com/articles/90-of-warren-buffetts-%24372-billion-portfolio-is-invested-in-only-14-stocks
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On Friday, July 7, Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) Class A shares (BRK.A) hit a new all-time high. For CEO Warren Buffett, it represents just another day in the office.
Since the Oracle of Omaha became CEO more than 58 years ago, he's overseen an aggregate gain in his company's Class A shares of 4,215,087%, as of July 7th. Through the end of 2022, his company had doubled up on the annualized total returns (including dividends) of the benchmark S&P 500 -- 19.8% for Berkshire, vs. 9.9% for the S&P 500.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Buffett's secret formula is truly no secret at all. He regularly spills the beans on what characteristics he looks for in an investment, such as trustworthy management teams and businesses with sustainable competitive advantages.
But the one factor that's led to Buffett's success that doesn't get nearly enough attention is his penchant for portfolio concentration. The Oracle of Omaha strongly believes that a higher percentage of invested assets should be put to work in his and his investment team's top ideas. As of last weekend, 90% ($333.6 billion) of the $372 billion portfolio Buffett oversees at Berkshire Hathaway was invested in only 14 stocks.
1. Apple: $174.6 billion (46.9% of invested assets)
Tech stock Apple (NASDAQ: AAPL) was described by the Oracle of Omaha as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting, so it's really no surprise that it makes up nearly 47% of invested assets.
Apple is one of the world's most-recognized brands and has a rock-solid management team that's overseeing its transition to a services-oriented company. It also doesn't hurt that Apple has repurchased $586 billion worth of its common stock over the past 10 years and has one of the world's largest nominal-dollar dividends. Buffett loves a company with a juicy capital-return program.
2. Bank of America: $29.5 billion (7.9% of invested assets)
Bank stocks are, arguably, Warren Buffett's favorite industry to invest in. Money-center giant Bank of America (NYSE: BAC) is his unquestioned favorite of the bunch.
Not only does Bank of America benefit from loan growth during disproportionately long periods of U.S. economic expansion, but it's the most interest-rate-sensitive of America's big banks. With the Fed undertaking its most aggressive rate-hiking cycle in four decades, it's lining BofA's coffers with added net interest income.
3. American Express: $25.7 billion (6.9% of invested assets)
Did I mention that Warren Buffett loves financial stocks? Credit-services provider American Express (NYSE: AXP) has been a continuous holding since 1993 and currently represents Berkshire's third-largest position by market value.
What makes American Express special is its ability to play both sides of a transaction. It's the No. 3 payment processor in the U.S. (i.e., collecting fees from merchants) and also lends to businesses and consumers, which allows it to earn interest and fees. With a keen focus on attracting affluent clientele, AmEx is better-positioned than most lenders to navigate a challenging economic environment.
4. Coca-Cola: $23.9 billion (6.4% of invested assets)
The Oracle of Omaha also loves wholesome brands, such as beverage stock Coca-Cola (NYSE: KO), which is the longest continuously held stock in Berkshire Hathaway's portfolio (since 1988).
Coca-Cola's geographic diversity is what keeps its needle pointing higher. It has operations in all but three countries (Cuba, North Korea, and Russia), and its product portfolio sports 26 global brands generating at least $1 billion in annual sales. Like Apple, it doesn't hurt that Coke is one of the most well-known brands in the world.
5. Chevron: $20.4 billion (5.5% of invested assets)
Despite Buffett and his team selling over 30 million shares of energy stock Chevron (NYSE: CVX) during the first quarter, it still clocks in as Berkshire's fifth-largest holding, with a market value north of $20 billion.
By holding a $20.4 billion position in Chevron Buffett is signaling an expectation of higher oil prices to come. This belief is likely fueled by Russia's war with Ukraine, which may hamper Europe's energy needs, as well as more than three years of capital underinvestment by global energy majors during the COVID-19 pandemic. The tight supply of crude oil could lift global spot prices and boost margins for Chevron's highly profitable drilling segment.
Image source: Getty Images.
6. Occidental Petroleum: $13.1 billion (3.5% of invested assets)
Speaking of drilling, Warren Buffett and his investing lieutenants, Ted Weschler and Todd Combs, have purchased 224.1 million shares of oil stock Occidental Petroleum (NYSE: OXY) since the beginning of 2022.
The thesis with Occidental is the same as Chevron but with one big twist. While both companies are integrated operators with downstream and/or midstream segments, Occidental generates an outsized percentage of its revenue from drilling. This means an upswing in the price of crude would really pump up its operating cash flow.
7. Kraft Heinz: $11.5 billion (3.1% of invested assets)
Consumer staples stock Kraft Heinz (NASDAQ: KHC) checks in as Berkshire Hathaway's seventh-biggest holding by market value.
Although Kraft Heinz saw a nice rebound in its organic growth rate during the COVID-19 pandemic -- i.e., easy-to-prepare meals were popular choices when people were staying home -- it's Buffett's worst-performing stock on an unrealized basis. Kraft Heinz's balance sheet is bogged down by a significant amount of long-term debt and goodwill.
8. Moody's: $8.4 billion (2.3% of invested assets)
On the other hand, credit-ratings agency Moody's (NYSE: MCO) is one of Berkshire's top-performing current holdings, based on unrealized returns.
For more than a decade, historically low lending rates encouraged borrowing, which kept Moody's credit-rating division busy. But with rates now climbing and the U.S./global economic outlook uncertain, Moody's Analytics segment, which aids in risk assessment and corporate compliance, can shine.
9. Mitsubishi: $5.7 billion (1.5% of invested assets)
Despite Buffett's company being a decisive net seller of equities between October 2022 and April 2023, one area in which the Oracle of Omaha is finding value is Japan's trading companies, the largest of which is Mitsubishi (OTC: MSBHF).
The lure of Japan's trading houses is that they've become increasingly diversified over the years and are cheap. Buying into a well-known Japanese company like Mitsubishi gives Buffett's company exposure to energy, infrastructure, and real estate for a price-to-earnings ratio in the high single digits.
10. Itochu: $4.6 billion (1.2% of invested assets)
Itochu (OTC: ITOCY)(OTC: ITOCF) is the second of five Japanese trading houses into which Berkshire Hathaway has put money to work multiple times. The yen-to-dollar translation of this stake works out to a $4.6 billion market value, as of July 7, 2023.
Although Itochu is probably known best for its textile segment, it's a company that has an ever-growing profile of revenue channels. It offers an energy segment that trades in energy commodities, a food division that produces and distributes food products, and a financial services segment that provides venture-capital services, to name a few.
11. Mitsui: $4.6 billion (1.2% of invested assets)
The third Japanese trading house that makes an appearance among Warren Buffett's top-14 holdings is Mitsui (OTC: MITSY)(OTC: MITSF), which also happens to be the third-largest trading house by market cap behind Mitsubishi and Itochu.
The story here is the same as above. Mitsui trades at a microscopic 7x trailing-12-month earnings, generates predictable cash flow, and has a wide array of businesses that extend well beyond its original trading channels. Similar to its peers, the company deals in the trading of energy resources and food products and is involved in various finance and real estate ventures.
12. Activision Blizzard: $4.1 billion (1.1% of invested assets)
Gaming company Activision Blizzard (NASDAQ: ATVI) accounts for a little over 1% of Berkshire's invested assets, but isn't anything like the 11 holdings listed above.
Whereas Buffett and his team almost always buy stakes in businesses with the intent of holding for the long term, the Oracle of Omaha has clearly stated that his company's Activision position is a short-term arbitrage play. Microsoft made a $95 all-cash offer to acquire Activision Blizzard in January 2022. Earlier this week, a U.S. district court judge denied the Federal Trade Commission's injunction efforts to block the merger, which seemingly gives the OK for the deal to proceed.
13. HP: $3.8 billion (1% of invested assets)
Warren Buffett loves predictability and a good deal, which is exactly what personal-computing (PC) and printing-services provider HP (NYSE: HPQ) offers.
Although HP's growth days have long passed, PC sales and cash-flow generation tend to be predictable. Mature companies like HP typically have hearty capital-return programs, which, as noted, Buffett appreciates. HP is yielding almost 3.4% and has repurchased around $13 billion worth of its common stock over the trailing three years.
14. DaVita: $3.7 billion (1% of invested assets)
Last but not least, kidney dialysis services provider DaVita (NYSE: DVA) is the 14th company that collectively account for about 90% of the $372 billion investment portfolio Warren Buffett oversees for Berkshire Hathaway.
DaVita represents what I'd refer to as a numbers-game investment. The Centers for Disease Control and Prevention estimates that 35.5 million people (about 1 in 7 U.S. adults) have chronic kidney disease (CKD). The problem is that as many as 90% of these people are unaware they have CKD. DaVita finds itself servicing a trend that should continually grow as the U.S. population ages and medical screening technology improves.
10 stocks we like better than Walmart
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart 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 3, 2023
Bank of America and American Express are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Bank of America, Berkshire Hathaway, HP, Microsoft, and Moody's. The Motley Fool recommends Chevron and Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $174.6 billion (46.9% of invested assets) Tech stock Apple (NASDAQ: AAPL) was described by the Oracle of Omaha as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting, so it's really no surprise that it makes up nearly 47% of invested assets. Although Kraft Heinz saw a nice rebound in its organic growth rate during the COVID-19 pandemic -- i.e., easy-to-prepare meals were popular choices when people were staying home -- it's Buffett's worst-performing stock on an unrealized basis. Whereas Buffett and his team almost always buy stakes in businesses with the intent of holding for the long term, the Oracle of Omaha has clearly stated that his company's Activision position is a short-term arbitrage play.
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Apple: $174.6 billion (46.9% of invested assets) Tech stock Apple (NASDAQ: AAPL) was described by the Oracle of Omaha as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting, so it's really no surprise that it makes up nearly 47% of invested assets. Kraft Heinz: $11.5 billion (3.1% of invested assets) Consumer staples stock Kraft Heinz (NASDAQ: KHC) checks in as Berkshire Hathaway's seventh-biggest holding by market value. Mitsui: $4.6 billion (1.2% of invested assets) The third Japanese trading house that makes an appearance among Warren Buffett's top-14 holdings is Mitsui (OTC: MITSY)(OTC: MITSF), which also happens to be the third-largest trading house by market cap behind Mitsubishi and Itochu.
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Apple: $174.6 billion (46.9% of invested assets) Tech stock Apple (NASDAQ: AAPL) was described by the Oracle of Omaha as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting, so it's really no surprise that it makes up nearly 47% of invested assets. Chevron: $20.4 billion (5.5% of invested assets) Despite Buffett and his team selling over 30 million shares of energy stock Chevron (NYSE: CVX) during the first quarter, it still clocks in as Berkshire's fifth-largest holding, with a market value north of $20 billion. DaVita: $3.7 billion (1% of invested assets) Last but not least, kidney dialysis services provider DaVita (NYSE: DVA) is the 14th company that collectively account for about 90% of the $372 billion investment portfolio Warren Buffett oversees for Berkshire Hathaway.
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Apple: $174.6 billion (46.9% of invested assets) Tech stock Apple (NASDAQ: AAPL) was described by the Oracle of Omaha as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting, so it's really no surprise that it makes up nearly 47% of invested assets. As of last weekend, 90% ($333.6 billion) of the $372 billion portfolio Buffett oversees at Berkshire Hathaway was invested in only 14 stocks. See the 10 stocks Stock Advisor returns as of July 3, 2023 Bank of America and American Express are advertising partners of The Ascent, a Motley Fool company.
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2023-07-14 00:00:00 UTC
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EXCLUSIVE-Worried about obscenity, India asks streamers for content checks
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https://www.nasdaq.com/articles/exclusive-worried-about-obscenity-india-asks-streamers-for-content-checks
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By Aditya Kalra and Munsif Vengattil
NEW DELHI, July 14 (Reuters) - India has told Netflix NFLX.O, Disney DIS.N and other streaming services that their content should be independently reviewed for obscenity and violence before being shown online, according to a government document and sources.
The proposal was delivered to the streaming platforms at a June 20 meeting at the Information and Broadcasting Ministry. The streaming companies, also referred to as OTT platforms, objected and no decision was reached, according to government minutes of the talks and an industry source who attended.
The ministry "highlighted concerns regarding obscene and vulgar content on OTT platforms, as expressed by Members of Parliament, citizen groups, and the general public," said the minutes, which are not public but were seen by Reuters.
Netflix and Amazon have become hugely popular in India, which is set to grow into a $7 billion market for the sector by 2027, according to Media Partners Asia.
Top Bollywood stars feature in online material, some of which has faced criticism from lawmakers and the public for scenes deemed vulgar or offensive to religious sentiments.
Though all films in Indian cinemas are reviewed and certified by a government-appointed board, streamed content is not.
Officials in the meeting asked the industry to consider an independent panel to review content so that unsuitable material could be weeded out, two people who attended said.
The industry objected but the officials asked them to consider the idea, they added.
The government highlighted the need for a "more proactive approach" to ensure that streaming content, "including international content", aligns with a so-called code of ethics, the minutes showed.
That code already mandates providers to exercise caution on content that could incite violence or be sensitive for religious reasons.
The meeting was attended by Amazon AMZN.O, Disney, Netflix, Reliance's RELI.NS broadcast unit, Viacom18, and Apple AAPL.O TV.
The companies and the ministry did not respond to requests for comments.
'PROPAGATE VULGARITY'
The discussions signal growing scrutiny of India's fast-growing streaming market.
The proposal also comes as streaming giants protest a government order to add 50-second tobacco health warnings in each piece of content, and two years after India ordered the setting up self-regulatory bodies for complaints about streaming content.
Industry executives say India's streaming regulations are among the world's most stringent.
At an April event, when the government agreed to a partnership with Amazon to promote film and television, Information and Broadcasting Minister Anurag Thakur said streaming platforms should "not propagate vulgarity and abuse camouflaged as creative expression".
Thakur has said complaints about obscene content were increasing and the government was willing to change regulations if need be to address the problem.
Indian officials also proposed at the meeting the formation of an expert panel to set age ratings, instead of platforms doing that themselves, one of the attendees said.
The platforms said they would ensure strong parental controls and "special care would be taken in respect of suitability of the international content", the minutes showed.
Suhasini Maniratnam of the Digital Publisher Content Grievance Council, told the gathering pre-censorship could hurt the industry growth and cost jobs, and that given the high volume of content "there is a need to specifically act" against obscene and vulgar content.
(Reporting by Aditya Kalra in New Delhi and Munsif Vengattil in Bengaluru; editing by Robert Birsel)
((aditya.kalra@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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The meeting was attended by Amazon AMZN.O, Disney, Netflix, Reliance's RELI.NS broadcast unit, Viacom18, and Apple AAPL.O TV. By Aditya Kalra and Munsif Vengattil NEW DELHI, July 14 (Reuters) - India has told Netflix NFLX.O, Disney DIS.N and other streaming services that their content should be independently reviewed for obscenity and violence before being shown online, according to a government document and sources. Top Bollywood stars feature in online material, some of which has faced criticism from lawmakers and the public for scenes deemed vulgar or offensive to religious sentiments.
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The meeting was attended by Amazon AMZN.O, Disney, Netflix, Reliance's RELI.NS broadcast unit, Viacom18, and Apple AAPL.O TV. By Aditya Kalra and Munsif Vengattil NEW DELHI, July 14 (Reuters) - India has told Netflix NFLX.O, Disney DIS.N and other streaming services that their content should be independently reviewed for obscenity and violence before being shown online, according to a government document and sources. The ministry "highlighted concerns regarding obscene and vulgar content on OTT platforms, as expressed by Members of Parliament, citizen groups, and the general public," said the minutes, which are not public but were seen by Reuters.
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The meeting was attended by Amazon AMZN.O, Disney, Netflix, Reliance's RELI.NS broadcast unit, Viacom18, and Apple AAPL.O TV. By Aditya Kalra and Munsif Vengattil NEW DELHI, July 14 (Reuters) - India has told Netflix NFLX.O, Disney DIS.N and other streaming services that their content should be independently reviewed for obscenity and violence before being shown online, according to a government document and sources. The proposal also comes as streaming giants protest a government order to add 50-second tobacco health warnings in each piece of content, and two years after India ordered the setting up self-regulatory bodies for complaints about streaming content.
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The meeting was attended by Amazon AMZN.O, Disney, Netflix, Reliance's RELI.NS broadcast unit, Viacom18, and Apple AAPL.O TV. The proposal was delivered to the streaming platforms at a June 20 meeting at the Information and Broadcasting Ministry. The ministry "highlighted concerns regarding obscene and vulgar content on OTT platforms, as expressed by Members of Parliament, citizen groups, and the general public," said the minutes, which are not public but were seen by Reuters.
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14889.0
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2023-07-14 00:00:00 UTC
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GRAPHIC-Take Five: Buddy, can you spare a dollar?
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https://www.nasdaq.com/articles/graphic-take-five%3A-buddy-can-you-spare-a-dollar
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nan
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nan
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July 14 (Reuters) - A meeting of global finance ministers, earnings from U.S. companies whose market value exceeds that of some nations' entire economies, and a pulse-check for Chinese growth are in the market spotlight.
The G20 gather in India to discuss loans to developing countries, among other things, while Tesla TSLA.O kicks off earnings season for the mega-caps. All this takes place against a backdrop of an epic dollar sell-off as the U.S. economy cools and markets bet the Federal Reserve is nearly done raising rates.
Here's a look at the week ahead in markets from Rae Wee in Singapore, Lewis Krauskopf in New York and Naomi Rovnick, Karin Strohecker and Amanda Cooper in London.
1/LET'S TALK MONEY
How to funnel more sustainable financing to developing economies and get multilateral lenders to increase loans tops the agenda for Group of 20 finance chiefs meeting in the Indian city of Gandhinagar on July 17-18.
Some of the world's poorest nations have seen their borrowing costs and debt burdens soar as global interest rates were ramped up. Efforts to restructure for those that tipped into default have been painfully slow.
Regulation of cryptocurrencies, as well as talks on a multilateral agreement on taxing conglomerates with cross-border operations will be held at the gathering that will set the tone for a leaders' summit in New Delhi in September.
U.S. Treasury Secretary Janet Yellen, the World Bank's new President Ajay Banga and International Monetary Fund chief Kristalina Georgieva are among those attending, as are senior treasury officials from Russia and China, according to Indian officials.
2/CHINA'S FORLORN FIVE?
China kickstarts the week with the release of second-quarter gross domestic product data. Last year's low base-effect, when COVID lockdowns hit largest swathes of the economy, will likely offer a glow to the latest figures, but the devil is in the detail.
Months of disappointing higher-frequency data makes a repeat of the first-quarter's above-consensus growth improbable, and has some investors questioning whether the government's 5% full-year target is realistic.
Mounting deflationary pressure and a slump in trade are the latest red flags on the health of China, which as recently as six months ago had investors betting on a robust recovery.
Patience is wearing thin, as markets wait for Beijing to unveil a highly anticipated stimulus package, with hopes this month's Politburo meeting could help turn sentiment around.
3/MEGA EARNINGS TIME
Second-quarter earnings season kicks into gear next week, with Tesla TSLA.O the first of the megacaps to report results.
The Elon Musk-led electric vehicle maker posts results on Wednesday. Tesla is one of seven huge stocks whose outsized gains in 2023 have boosted the wider U.S. stock market.
There are signs the rally is broadening to other sectors, but if Tesla or any other megacaps disappoint this quarter, the hit to equity indexes could be severe.
Other megacap firms, such as Apple AAPL.O and Amazon AMZN.O report in coming weeks.
A slew of other big companies also post results. Bank earnings continue, with Bank of America BAC.L on Tuesday and Goldman Sachs GS.N on Wednesday. On the docket also are Johnson & Johnson JNJ.N, Netflix NFLX.O and Philip Morris. PM.N
4/BUY, BUY BABY
UK inflation may be moderating, although the economy remains vulnerable, as high living costs collide with high debt burdens.
Analysts expect Wednesday's June inflation report to show price increases slowed from the 8.7% annual rate in May.
That may not dissuade the Bank of England from cranking rates higher, given the sizzling pace of wage growth.
Rate rises are snaking slowly through the economy, as over 85% of homeowners are on fixed-rate mortgages and many of them are still protected by cheap rates agreed in prior years.
But about a million households will see their payments jump by at least 500 pounds ($651.80) a month for their home loans by 2026, the BoE estimates.
And data on house prices and new car registrations will show how confident consumers are about their finances.
5/GOING AGAINST THE GRAIN
A U.N.-brokered deal that guarantees the safe passage of Black Sea grain from Ukraine ports expires on Monday. Under the year-old agreement, over 32 million tonnes of corn, wheat and other grains have been exported and the price of many of these staples has dropped sharply, helping to cool inflation.
But Russia says it sees no grounds to prolong the pact and says commitments to remove hurdles to Russian food and fertiliser exports have not been fulfilled.
No new ships have been registered to travel to Ukraine since June 26 and the clock is ticking. Ukraine is shipping roughly half the corn and wheat it did before the war. Others such as Brazil, have stepped up supplies. But a global food crisis is far from over. In 2022, a record number experienced acute hunger, according to the U.N., and global stocks of wheat and corn are running at multi-year lows.
($1 = 0.7671 pounds)
Africa, Oceania see rising hunger since the pandemic https://tmsnrt.rs/3XQAnEy
Emerging markets face high borrowing costs https://tmsnrt.rs/3Dvia69
China Q2 2023 GDP forecast https://tmsnrt.rs/3D8vKfs
UK core CPI on the horizon https://tmsnrt.rs/3XOOQk8
Megacap tech stocks outperform Wall Street https://tmsnrt.rs/3NJml2K
(Compiled by Amanda Cooper; Editing by Kim Coghill)
((amanda.cooper@thomsonreuters.com; +442031978531; Twitter: https://twitter.com/a_coops1))
The views and 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 megacap firms, such as Apple AAPL.O and Amazon AMZN.O report in coming weeks. Regulation of cryptocurrencies, as well as talks on a multilateral agreement on taxing conglomerates with cross-border operations will be held at the gathering that will set the tone for a leaders' summit in New Delhi in September. Mounting deflationary pressure and a slump in trade are the latest red flags on the health of China, which as recently as six months ago had investors betting on a robust recovery.
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Other megacap firms, such as Apple AAPL.O and Amazon AMZN.O report in coming weeks. Some of the world's poorest nations have seen their borrowing costs and debt burdens soar as global interest rates were ramped up. Analysts expect Wednesday's June inflation report to show price increases slowed from the 8.7% annual rate in May.
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Other megacap firms, such as Apple AAPL.O and Amazon AMZN.O report in coming weeks. July 14 (Reuters) - A meeting of global finance ministers, earnings from U.S. companies whose market value exceeds that of some nations' entire economies, and a pulse-check for Chinese growth are in the market spotlight. How to funnel more sustainable financing to developing economies and get multilateral lenders to increase loans tops the agenda for Group of 20 finance chiefs meeting in the Indian city of Gandhinagar on July 17-18.
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Other megacap firms, such as Apple AAPL.O and Amazon AMZN.O report in coming weeks. Second-quarter earnings season kicks into gear next week, with Tesla TSLA.O the first of the megacaps to report results. Analysts expect Wednesday's June inflation report to show price increases slowed from the 8.7% annual rate in May.
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14890.0
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2023-07-14 00:00:00 UTC
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Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-nasdaq-100-etf-qqqm-be-on-your-investing-radar-7
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on 10/13/2020.
The fund is sponsored by Invesco. It has amassed assets over $14.14 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
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. 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
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 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.63%.
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 50.80% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.55% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 55.16% of total assets under management.
Performance and Risk
QQQM seeks to match the performance of the NASDAQ-100 INDEX before fees and expenses. The NASDAQ-100 Index includes securities of 100 of the largest domestic and international nonfinancial companies listed on Nasdaq.
The ETF return is roughly 42.80% so far this year and is up about 33.49% in the last one year (as of 07/14/2023). In the past 52-week period, it has traded between $107 and $155.94.
The ETF has a beta of 1.16 and standard deviation of 24.46% for the trailing three-year period. With about 102 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco NASDAQ 100 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, QQQM 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 $94.63 billion in assets, Invesco QQQ has $209.29 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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Invesco NASDAQ 100 ETF (QQQM): 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, Microsoft Corp (MSFT) accounts for about 12.55% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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. You should consider the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on 10/13/2020.
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Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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, Microsoft Corp (MSFT) accounts for about 12.55% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). You should consider the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on 10/13/2020.
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Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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, Microsoft Corp (MSFT) accounts for about 12.55% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Alternatives Invesco NASDAQ 100 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, Microsoft Corp (MSFT) accounts for about 12.55% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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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14891.0
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2023-07-14 00:00:00 UTC
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Should You Invest in the Technology Select Sector SPDR ETF (XLK)?
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https://www.nasdaq.com/articles/should-you-invest-in-the-technology-select-sector-spdr-etf-xlk-8
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If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Technology Select Sector SPDR ETF (XLK), a passively managed exchange traded fund launched on 12/16/1998.
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.
Investor-friendly, sector ETFs provide many options 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 8, placing it in top 50%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $51.38 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. XLK seeks to match the performance of the Technology Select Sector Index before fees and expenses.
The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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 0.10%, 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
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 99.70% of the portfolio.
Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 23.38% of total assets, followed by Apple Inc. (AAPL) and Nvidia Corporation (NVDA).
The top 10 holdings account for about 66.85% of total assets under management.
Performance and Risk
Year-to-date, the Technology Select Sector SPDR ETF has added roughly 42.18% so far, and is up about 37.78% over the last 12 months (as of 07/14/2023). XLK has traded between $116.56 and $176.25 in this past 52-week period.
The ETF has a beta of 1.12 and standard deviation of 25.52% for the trailing three-year period, making it a medium risk choice in the space. With about 69 holdings, it effectively diversifies company-specific risk.
Alternatives
Technology Select Sector SPDR 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, XLK 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.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. IShares U.S. Technology ETF has $13.14 billion in assets, Vanguard Information Technology ETF has $53.75 billion. IYW has an expense ratio of 0.39% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
iShares U.S. Technology ETF (IYW): 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, Microsoft Corporation (MSFT) accounts for about 23.38% of total assets, followed by Apple Inc. (AAPL) and Nvidia Corporation (NVDA). Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $51.38 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 23.38% of total assets, followed by Apple Inc. (AAPL) and Nvidia Corporation (NVDA). The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 23.38% of total assets, followed by Apple Inc. (AAPL) and Nvidia Corporation (NVDA). Alternatives Technology Select Sector SPDR 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, Microsoft Corporation (MSFT) accounts for about 23.38% of total assets, followed by Apple Inc. (AAPL) and Nvidia Corporation (NVDA). Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): 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 0.10%, making it one of the least expensive products in the space.
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14892.0
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2023-07-13 00:00:00 UTC
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Thursday's ETF with Unusual Volume: DGRW
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https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-dgrw
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The WisdomTree U.S. Quality Dividend Growth Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 1.4 million shares traded versus three month average volume of about 481,000. Shares of DGRW were up about 0.2% on the day.
Components of that ETF with the highest volume on Thursday were Nvidia, trading up about 1.9% with over 19.3 million shares changing hands so far this session, and Apple, up about 0.4% on volume of over 16.4 million shares. Phinia is the component faring the best Thursday, higher by about 5.2% on the day, while Progressive is lagging other components of the WisdomTree U.S. Quality Dividend Growth Fund ETF, trading lower by about 12.6%.
VIDEO: Thursday's ETF with Unusual Volume: DGRW
The views and 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 WisdomTree U.S. Quality Dividend Growth Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 1.4 million shares traded versus three month average volume of about 481,000. Components of that ETF with the highest volume on Thursday were Nvidia, trading up about 1.9% with over 19.3 million shares changing hands so far this session, and Apple, up about 0.4% on volume of over 16.4 million shares. Phinia is the component faring the best Thursday, higher by about 5.2% on the day, while Progressive is lagging other components of the WisdomTree U.S. Quality Dividend Growth Fund ETF, trading lower by about 12.6%.
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The WisdomTree U.S. Quality Dividend Growth Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 1.4 million shares traded versus three month average volume of about 481,000. Phinia is the component faring the best Thursday, higher by about 5.2% on the day, while Progressive is lagging other components of the WisdomTree U.S. Quality Dividend Growth Fund ETF, trading lower by about 12.6%. VIDEO: Thursday's ETF with Unusual Volume: DGRW The views and 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 WisdomTree U.S. Quality Dividend Growth Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 1.4 million shares traded versus three month average volume of about 481,000. Components of that ETF with the highest volume on Thursday were Nvidia, trading up about 1.9% with over 19.3 million shares changing hands so far this session, and Apple, up about 0.4% on volume of over 16.4 million shares. Phinia is the component faring the best Thursday, higher by about 5.2% on the day, while Progressive is lagging other components of the WisdomTree U.S. Quality Dividend Growth Fund ETF, trading lower by about 12.6%.
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The WisdomTree U.S. Quality Dividend Growth Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 1.4 million shares traded versus three month average volume of about 481,000. Phinia is the component faring the best Thursday, higher by about 5.2% on the day, while Progressive is lagging other components of the WisdomTree U.S. Quality Dividend Growth Fund ETF, trading lower by about 12.6%. VIDEO: Thursday's ETF with Unusual Volume: DGRW The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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14893.0
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2023-07-13 00:00:00 UTC
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Tune Into the Launch of the First Music ETF
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https://www.nasdaq.com/articles/tune-into-the-launch-of-the-first-music-etf
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MUSQ launched its first-ever ETF named MUSQ Global Music Industry ETF MUSQ early this week. The fund offers a unique “pure play” exposure to the $26.6 billion global music industry. This is a pioneering move that promises to reshape the economic landscape of the music industry. This novel financial instrument offers investors a unique opportunity to tap into the music industry's financial rhythm, marking a significant evolution in the perception and approach toward music-related investments.
MUSQ in Focus
The new ETF aims to offer investors a way to align their portfolios with the entire music industry ecosystem, including streaming services (34.2%), content and distribution (35.3%), live events and ticketing (9.47%), satellite and broadcast radio (7%), as well as music equipment and technology (13.17%). It tracks the MUSQ Global Music Industry Index and holds 48 stocks in its basket (see: all the World ETFs here).
MUSQ is skewed toward the top three firms – Amazon AMZN, Apple AAPL and Alphabet GOOGL – with more than 7% share each. Other firms do not hold more than 3.6% of the total portfolio. Some of the other music names include Universal Music, Warner Music, Live Nation, Spotify, Sony Music, Hybe and SM Entertainment.
The new ETF comes with an expense ratio of 0.78%.
How Will it Fit in a Portfolio?
The ETF could be an intriguing choice for investors seeking exposure to the fast-growing music industry, which has come a long way since the days of the phonograph in 1877. It could be an attractive way to tap global growth opportunities with the development of new monetization methods, rising global paid streaming penetration, as well as the resurgence of live music events post-pandemic.
The global music industry has technologically transformed over the years from reel-to-reel, 8-tracks, cassettes, and CDs, to the digital age. There has been a drastic change in the way individuals consume music, both live and recorded. Currently, the music industry is experiencing a renaissance fueled by the advent of digitization, AI, social media and streaming platforms (read: Why AI ETFs Will Continue to Prevail in the Long Run).
The global music industry witnessed record revenues of $26.2 billion in 2022, representing a 9% increase over 2021. According to the ETF issuer, the global music market is expected to grow at a compound annual rate of 11.8% from 2022-2026. Global paid streaming penetration is expected to double by 2030 while paid streaming revenues are projected to witness a 10% CAGR through 2030. Music publishing revenues are expected to witness a 6% CAGR to reach $11.7 billion by 2030. Goldman Sachs predicts the global music industry to rise at a compound annual rate of 12% to reach $53.2 billion by 2030, according to data cited in the product’s white paper.
ETF Competition
The new product is expected to get a first-mover advantage as it is the only pure-play ETF tracking the music industry. However, it follows last year’s launch of KPOP & Korean Entertainment ETF KPOP, which invested in firms associated with the fast-growing Korean pop music industry. The fund has garnered $2.8 million in AUM.
Another fund, the Clouty Tune ETF TUNE, launched last month, provides exposure to a global portfolio of companies identified as being engaged in the music, media and entertainment industries. TUNE has amassed $0.5 million in its asset base.
Bottom Line
It will not be difficult for the new ETFs to garner sufficient investor interest, redefine the financial landscape of the music industry and generate decent total returns net of expense ratio. Investors, as it is, are looking for exposure to this underserved corner of the space.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
KPOP and Korean Entertainment ETF (KPOP): ETF Research Reports
Clouty Tune ETF (TUNE): ETF Research Reports
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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MUSQ is skewed toward the top three firms – Amazon AMZN, Apple AAPL and Alphabet GOOGL – with more than 7% share each. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report KPOP and Korean Entertainment ETF (KPOP): ETF Research Reports Clouty Tune ETF (TUNE): ETF Research Reports MUSQ Global Music Industry ETF (MUSQ): ETF Research Reports To read this article on Zacks.com click here. The ETF could be an intriguing choice for investors seeking exposure to the fast-growing music industry, which has come a long way since the days of the phonograph in 1877.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report KPOP and Korean Entertainment ETF (KPOP): ETF Research Reports Clouty Tune ETF (TUNE): ETF Research Reports MUSQ Global Music Industry ETF (MUSQ): ETF Research Reports To read this article on Zacks.com click here. MUSQ is skewed toward the top three firms – Amazon AMZN, Apple AAPL and Alphabet GOOGL – with more than 7% share each. MUSQ launched its first-ever ETF named MUSQ Global Music Industry ETF MUSQ early this week.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report KPOP and Korean Entertainment ETF (KPOP): ETF Research Reports Clouty Tune ETF (TUNE): ETF Research Reports MUSQ Global Music Industry ETF (MUSQ): ETF Research Reports To read this article on Zacks.com click here. MUSQ is skewed toward the top three firms – Amazon AMZN, Apple AAPL and Alphabet GOOGL – with more than 7% share each. MUSQ launched its first-ever ETF named MUSQ Global Music Industry ETF MUSQ early this week.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report KPOP and Korean Entertainment ETF (KPOP): ETF Research Reports Clouty Tune ETF (TUNE): ETF Research Reports MUSQ Global Music Industry ETF (MUSQ): ETF Research Reports To read this article on Zacks.com click here. MUSQ is skewed toward the top three firms – Amazon AMZN, Apple AAPL and Alphabet GOOGL – with more than 7% share each. The fund offers a unique “pure play” exposure to the $26.6 billion global music industry.
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14894.0
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2023-07-13 00:00:00 UTC
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3 Stocks to Buy for Artificial Intelligence (AI) Exposure
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-for-artificial-intelligence-ai-exposure
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nan
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nan
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As everybody knows by now, artificial intelligence (AI) has been Wall Street’s shiny new toy in 2023, with companies speaking on the technology in a snowballing fashion.
And it’s easy to understand why, as the technology undoubtedly has a bright future and allows us to achieve feats that otherwise felt impossible.
Interestingly enough, three companies – Palo Alto Networks PANW, Arista Networks ANET, and Apple AAPL – all stand to be big beneficiaries of the technology.
For those interested in gaining exposure to the technology, let’s take a closer look at each.
Arista Networks
In late April, Arista Networks unveiled a new cloud-delivered, AI-driven network identity service for enterprise security and IT operations. The stock is a Zacks Rank #2 (Buy), with the revisions trend particularly notable for its current fiscal year.
Image Source: Zacks Investment Research
The company has been a consistent earnings performer, exceeding both top and bottom line expectations in 14 consecutive quarters. Just in its latest release, ANET posted a 6% EPS beat and reported revenue 3.5% above expectations.
As we can see in the chart below, the company’s revenue growth has been rapid over the last several years.
Image Source: Zacks Investment Research
Palo Alto Networks
Palo Alto Networks, a current Zacks Rank #1 (Strong Buy), operates Cortex, the company’s integrated suite of AI-driven, intelligent products for the Security Operations Center (SOC). Analysts have raised their earnings expectations across the board.
Image Source: Zacks Investment Research
The company’s growth profile is impossible to ignore, with estimates suggesting 70% earnings growth in its current fiscal year (FY23) on 25% higher revenues. And looking ahead to FY24, estimates allude to an additional 16% growth in earnings and a 21% revenue climb.
Image Source: Zacks Investment Research
Apple
Apple has seemingly become a ‘Dark Horse’ in the AI race, with many not recognizing the company’s exposure. While the tech titan hasn’t unveiled any ground-breaking technology, it’s quietly been implementing AI features, including an improved iPhone autocorrect model.
Apple shares are undoubtedly pricey, with the current 31.7X forward earnings multiple sitting well above the 24.8X five-year median. Still, investors have had no issue forking up the premium given the company’s rock-solid standing, with AAPL shares up nearly 50% in 2023.
Image Source: Zacks Investment Research
The company has long been viewed as a cash flow king, and for understandable reasons; Apple generated roughly $25.6 billion in free cash flow throughout its latest quarter. Strong cash flows allow companies to pay down debt, shell out dividends, and fuel growth.
Image Source: Zacks Investment Research
Bottom Line
With the rapid rise of interest in AI technology, it’s no surprise that several notable technology giants stand to benefit.
While the technology is still in its early phases, the long-term potential has investors ecstatic, seeing a massive opportunity to reap some gains.
And all three stocks above – Palo Alto Networks PANW, Arista Networks ANET, and Apple AAPL – stand to be big beneficiaries of the technology.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
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
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : 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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Interestingly enough, three companies – Palo Alto Networks PANW, Arista Networks ANET, and Apple AAPL – all stand to be big beneficiaries of the technology. Still, investors have had no issue forking up the premium given the company’s rock-solid standing, with AAPL shares up nearly 50% in 2023. And all three stocks above – Palo Alto Networks PANW, Arista Networks ANET, and Apple AAPL – stand to be big beneficiaries of the technology.
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And all three stocks above – Palo Alto Networks PANW, Arista Networks ANET, and Apple AAPL – stand to be big beneficiaries of the technology. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Interestingly enough, three companies – Palo Alto Networks PANW, Arista Networks ANET, and Apple AAPL – all stand to be big beneficiaries of the technology.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Interestingly enough, three companies – Palo Alto Networks PANW, Arista Networks ANET, and Apple AAPL – all stand to be big beneficiaries of the technology. Still, investors have had no issue forking up the premium given the company’s rock-solid standing, with AAPL shares up nearly 50% in 2023.
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Interestingly enough, three companies – Palo Alto Networks PANW, Arista Networks ANET, and Apple AAPL – all stand to be big beneficiaries of the technology. Still, investors have had no issue forking up the premium given the company’s rock-solid standing, with AAPL shares up nearly 50% in 2023. And all three stocks above – Palo Alto Networks PANW, Arista Networks ANET, and Apple AAPL – stand to be big beneficiaries of the technology.
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14895.0
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2023-07-13 00:00:00 UTC
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Stock Market News for Jul 13, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-jul-13-2023
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nan
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nan
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U.S. stocks ended sharply higher on Wednesday, with the Nasdaq and S&P 500 closing at their highest levels in more than a year, as fresh data showed that inflation slowed further in June to its smallest annual increase since early 2021. This raised hopes that the Fed might soon put an end to its interest rate hikes. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.3% or 86.01 points to close at 34,347.43 points.
The S&P 500 gained 0.7% or 32.90 points to end at 4,472.16 points, recording its highest closing level since Apr 8, 2022. Materials, utilities, communication services and tech stocks were the best performers on the index.
The Materials Select Sector SPDR (XLB) rose 1.3%. The Technology Select Sector SPDR (XLK) climbed 1.1%. The Communication Services Select Sector SPDR (XLC) and Utilities Select Sector SPDR (XLU) added 1.2% and 1.5%, respectively. Nine of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 1.2% or 158.26 points to finish at 13,918.96 points, recording its highest closing level since Apr 5, 2022.
The fear-gauge CBOE Volatility Index (VIX) was down 8.76% to 13.54. Advancers outnumbered decliners on the NYSE by a 3.23-to-1 ratio. On Nasdaq, a 1.93-to-1 ratio favored advancing issues. A total of 11.20 billion shares were traded on Wednesday, higher than the last 20-session average of 11.15 billion.
Inflation Data Raises Optimism
Stocks have been trading higher this week after taking a beating last week as investors eagerly awaited the release of the all-important inflation data. The optimism got a further boost on Wednesday sending stocks on a rally as Treasury yields and the U.S. dollar fell following the release of the consumer price index reading.
Fresh data for June showed inflation increasing at its slowest pace since March 2021. The Consumer Price Index (CPI) rose a meager 0.2% in June on a month-over-month basis. Economists had projected a 0.3% increase. On a year-over-year basis, CPI rose 3% in June from May’s 4%. Economists had projected a rise of 3.1%.
Core CPI, which excludes the volatile energy and food costs, also rose a modest 0.2%, its smallest increase in nearly two years. Also, the annual rate of inflation fell to 5% in June from 5.3% in the prior month.
The data was cheered by investors, sending stocks on a rally. The Fed has indicated that two more rate hikes of 25 basis points each would be required this year, with the majority of the market participants believing that the first will come in July.
However, Wednesday’s CPI inflation data raised optimism that the Fed may also be close to putting an end to its interest rate hikes. Tech companies, which are sensitive to higher interest rates, got a boost following the CPI reading. Shares of Apple Inc. AAPL increased 0.9%, while NVIDIA Corporation NVDA increased 3.5%. NVIDIA has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Investors are now waiting for the producer price index report, another closely watched gauge of inflation, which is due on Thursday. Also, they are looking forward to the start of the second-quarter earnings season, which will unofficially kick start this week with some of the country’s biggest banks releasing their quarterly results.
Economic Data
In other economic data released on Wednesday, economic activity in the United States increased marginally in May and June, according to the Fed’s latest Beige Book report. The report also said that the slow momentum is likely to prevail as five out of its 12 districts recorded modest growth, while two reported marginal declines. Five other districts reported flat activity.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
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
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. AAPL increased 0.9%, while NVIDIA Corporation NVDA increased 3.5%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks ended sharply higher on Wednesday, with the Nasdaq and S&P 500 closing at their highest levels in more than a year, as fresh data showed that inflation slowed further in June to its smallest annual increase since early 2021.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL increased 0.9%, while NVIDIA Corporation NVDA increased 3.5%. The Communication Services Select Sector SPDR (XLC) and Utilities Select Sector SPDR (XLU) added 1.2% and 1.5%, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL increased 0.9%, while NVIDIA Corporation NVDA increased 3.5%. U.S. stocks ended sharply higher on Wednesday, with the Nasdaq and S&P 500 closing at their highest levels in more than a year, as fresh data showed that inflation slowed further in June to its smallest annual increase since early 2021.
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Shares of Apple Inc. AAPL increased 0.9%, while NVIDIA Corporation NVDA increased 3.5%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Inflation Data Raises Optimism Stocks have been trading higher this week after taking a beating last week as investors eagerly awaited the release of the all-important inflation data.
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14896.0
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2023-07-13 00:00:00 UTC
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Microsoft Next to Join $3T Club? ETFs to Benefit
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AAPL
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https://www.nasdaq.com/articles/microsoft-next-to-join-%243t-club-etfs-to-benefit
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nan
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nan
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After Apple’s AAPL market cap hit the $3 trillion mark on Jun 30, investment world got busy in finding the next joiner in that club. And Wedbush believes Microsoft MSFT is the likely member, as quoted on CNBC.
Microsoft is a great AI story and is riding on strong growth from Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenues have been driven by growth in Azure and other cloud services. Productivity and Business Processes revenues continues to increase due to strong adoption of Office 365 Commercial solutions.
The company has hit headlines this year with its partnership with ChatGPT creator OpenAI and smarten up the Bing search engine with artificial intelligence technology. Steady performance in Talent Solutions aided LinkedIn revenues. However, increasing spend on Azure enhancements amid stiff competition in the cloud space remains a concern. Subdued economic outlook may hit Microsoft's Windows business.
What Do Indicators Say About Microsoft’s Valuation?
Going by valuation metrics, the P/E (ttm) of MSFT is 36.1 times versus the industry-average of 37.3 times. The forward P/E of MSFT is 35.0 times versus the industry score of 29.6 times. Though the latter measure points to a higher valuation of Microsoft than the industry, a higher P/E is not always a sign of worry. It shows investors’ confidence in a particular stock within the bunch.
Investors should note that the return-on-equity of Microsoft is 39%, higher than the industry average of 25.4%. Plus, return-on-assets Microsoft is marginally higher than the industry measure. The estimated 3-5-year EPS growth of MSFT is, however, 11.7% versus the industry measure of 16.4%.
Investors should note that the MSFT stock has a Zacks Rank #3 (Hold). It has a Growth Score of ‘B’ and the top-most Momentum score of ‘A’, at the time of writing.
Are ETFs Better Bets?
Investors intending to follow Wedbush’s suggestion but still wary of the still cloud competition may take the ETF route. This is because ETFs helps investors to mitigate one company’s average performance with the other companies’ stellar results.
Below we highlight a few ETFs with heavy exposure to Microsoft for investors seeking to bet on the stock with much lower risk.
Select Sector SPDR Technology ETF XLK – MSFT holds the second spot with 22.81% weight. The fund has a Zacks Rank #1.
Vanguard Information Technology ETF VGT – MSFT occupies the first location with 20.68% weight. The fund has a Zacks Rank #1.
Fidelity MSCI Information Technology Index ETF FTEC – MSFT takes the second spot with 20.68% weight. The fund has a Zacks Rank #1.
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
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): 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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After Apple’s AAPL market cap hit the $3 trillion mark on Jun 30, investment world got busy in finding the next joiner in that club. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Microsoft is a great AI story and is riding on strong growth from Intelligent Cloud and Productivity and Business Processes.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. After Apple’s AAPL market cap hit the $3 trillion mark on Jun 30, investment world got busy in finding the next joiner in that club. Select Sector SPDR Technology ETF XLK – MSFT holds the second spot with 22.81% weight.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. After Apple’s AAPL market cap hit the $3 trillion mark on Jun 30, investment world got busy in finding the next joiner in that club. Investors should note that the MSFT stock has a Zacks Rank #3 (Hold).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. After Apple’s AAPL market cap hit the $3 trillion mark on Jun 30, investment world got busy in finding the next joiner in that club. Investors should note that the MSFT stock has a Zacks Rank #3 (Hold).
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14897.0
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2023-07-13 00:00:00 UTC
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After Hours Most Active for Jul 13, 2023 : ROIV, IBN, AMZN, INTC, T, CMCSA, HPE, WBD, AAPL, BEKE, TFC, WMB
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jul-13-2023-%3A-roiv-ibn-amzn-intc-t-cmcsa-hpe-wbd-aapl-beke-tfc
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -4.81 to 15,567.17. The total After hours volume is currently 87,922,626 shares traded.
The following are the most active stocks for the after hours session:
Roivant Sciences Ltd. (ROIV) is -0.1 at $11.50, with 3,453,390 shares traded. As reported by Zacks, the current mean recommendation for ROIV is in the "buy range".
ICICI Bank Limited (IBN) is unchanged at $23.40, with 3,345,610 shares traded. As reported by Zacks, the current mean recommendation for IBN is in the "strong buy range".
Amazon.com, Inc. (AMZN) is -0.11 at $134.19, with 3,263,964 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Intel Corporation (INTC) is -0.1 at $33.77, with 3,051,052 shares traded. INTC's current last sale is 107.21% of the target price of $31.5.
AT&T Inc. (T) is unchanged at $15.12, with 2,899,710 shares traded. As reported by Zacks, the current mean recommendation for T is in the "buy range".
Comcast Corporation (CMCSA) is unchanged at $42.56, with 2,819,281 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Hewlett Packard Enterprise Company (HPE) is unchanged at $17.32, with 2,444,963 shares traded. HPE's current last sale is 98.97% of the target price of $17.5.
Warner Bros. Discovery, Inc. (WBD) is -0.09 at $13.01, with 2,373,138 shares traded. As reported by Zacks, the current mean recommendation for WBD is in the "buy range".
Apple Inc. (AAPL) is -0.14 at $190.40, with 2,050,787 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
KE Holdings Inc (BEKE) is unchanged at $15.96, with 1,785,156 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Truist Financial Corporation (TFC) is +0.06 at $33.68, with 1,700,693 shares traded.TFC is scheduled to provide an earnings report on 7/20/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 0.99 per share, which represents a 120 percent increase over the EPS one Year Ago
Williams Companies, Inc. (The) (WMB) is unchanged at $34.26, with 1,440,398 shares traded. WMB's current last sale is 95.17% of the target price of $36.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.14 at $190.40, with 2,050,787 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for IBN is in the "strong buy range".
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Apple Inc. (AAPL) is -0.14 at $190.40, with 2,050,787 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for ROIV is in the "buy range".
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Apple Inc. (AAPL) is -0.14 at $190.40, with 2,050,787 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
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Apple Inc. (AAPL) is -0.14 at $190.40, with 2,050,787 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -4.81 to 15,567.17.
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14898.0
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2023-07-13 00:00:00 UTC
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If You Invested $1,000 in Meta Platforms in 2022, This Is How Much You Would Have Today
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AAPL
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https://www.nasdaq.com/articles/if-you-invested-%241000-in-meta-platforms-in-2022-this-is-how-much-you-would-have-today
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nan
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nan
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Meta Platforms (NASDAQ: META), the tech giant formerly known as Facebook, saw its shares surge to an all-time high of $382.18 during the buying frenzy in growth stocks on Sept. 7, 2021. That marked a ten-bagger gain from its IPO price of $38 in 2012. But by Nov. 4, 2022, Meta's stock had sunk to a seven-year low of $88.09.
Therefore, a $1,000 investment in its IPO would have briefly blossomed to over $10,000 before withering back to about $2,300. The bulls gave up on Meta as Apple's (NASDAQ: AAPL) privacy-oriented iOS update, fierce competition from ByteDance's TikTok, and the macroeconomic headwinds all curbed the growth of its core advertising business.
Image source: Meta Platforms.
Even as Meta's growth cooled off, it continued to burn billions of dollars on its unprofitable Reality Labs (virtual and augmented reality) business. It also ramped up its investments in its short video platform Reels, which it admitted was tougher to monetize than its News Feed ads. That combination of slowing growth and rising expenses made Meta an easy target for the bears as rising interest rates rattled the tech sector.
However, Meta's stock subsequently bounced back to nearly $300 again. So you had invested $1,000 into Meta when most the bulls were retreating, your investment would have more than tripled to about $3,400 in just eight months. Let's see why Meta recovered so quickly -- and if it can generate even bigger gains.
Why did the bulls rush back to Meta again?
The bears believed Meta's advertising business, which accounted for 97% of its revenues in 2022, would face existential challenges as Apple's iOS changes disrupted its ability to craft targeted ads from third-party data. They also expected TikTok to continue pulling younger users and advertisers away from Facebook and Instagram.
That's why Meta's advertising revenues declined year over year for three consecutive quarters through the end of 2022. But in the first quarter of 2023, that losing streak finally ended when its advertising revenues rose 4% year over year.
METRIC
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Meta Ad Revenue
$27.0B
$28.2B
$27.2B
$32.2B
$28.1B
Growth (YOY)
6%
(2%)
(4%)
(4%)
4%
Data source: Meta Platforms. YOY = Year-over-year.
That recovery was driven by Chinese cross-border e-commerce platforms like Pinduoduo's Temu, Alibaba's AliExpress, and Shein -- which all ramped up their ad spending to reach more overseas buyers. That expansion largely offset the macro-induced weakness of its financial and tech verticals. A higher number of total ad impressions also offset its declining ad prices.
As Meta's near-term ad sales stabilize, it's addressing Apple's iOS changes by gathering more first-party data for its targeted ads. It's also countering TikTok with Reels -- which it claims are already being reshared more than two billion times every day -- and it recently challenged Twitter with Threads, which surpassed 100 million sign-ups within its first week.
Meta is also still adding more new users to its core ecosystem. In the first quarter, the total number of monthly active people across its Family of Apps (Facebook, Instagram, Messenger, and WhatsApp) rose 5% year over year to 3.81 billion. That's already nearly half of the world's population, so Meta should remain a top advertising platform alongside Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google -- even if its near-term outlook has been clouded by platform, macro, and competitive challenges. That's why analysts still expect Meta's revenue to rise 9% in 2023 and 11% in 2024.
But what about Meta's profitability and valuations?
Meta has been aggressively cutting costs with three rounds of layoffs over the past year. But it doesn't plan to abandon the costly expansion of its Reality Labs segment, since it remains bullish on the future of VR and AR markets. It also recently launched its latest Quest 3 headset to keep pace with Apple's recent introduction of its Vision Pro headset.
However, the bulls will point out that Meta still generated roughly the same operating margin (25%) as Alphabet in the first quarter of 2023. That's because Alphabet also subsidizes the growth of many of its lower-margin businesses (such as Google Cloud) with its higher-margin advertising revenues. Furthermore, Meta is firmly profitable and it was still sitting on $11.6 billion in cash and equivalents -- as well as $25.9 billion marketable securities -- at the end of its first quarter. That healthy balance sheet should make Meta more appealing than many other tech stocks if interest rates stay elevated.
Analysts expect Meta's earnings to grow 36% in 2023 and 25% in 2024 -- as the recovery of its profitable ad business offsets the expansion of its unprofitable Reality Labs segment -- and its stock still looks reasonably valued at 25 times forward earnings. Alphabet, which is expected to grow at a slower rate than Meta, trades at 22 times forward earnings.
Meta has had a great run so far, but it could soar even higher if the macro environment improves. Investors might be kicking themselves for missing out on Meta's gains over the past eight months, but it's not too late to buy this blue-chip tech stock.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, and Meta Platforms. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The bulls gave up on Meta as Apple's (NASDAQ: AAPL) privacy-oriented iOS update, fierce competition from ByteDance's TikTok, and the macroeconomic headwinds all curbed the growth of its core advertising business. The bears believed Meta's advertising business, which accounted for 97% of its revenues in 2022, would face existential challenges as Apple's iOS changes disrupted its ability to craft targeted ads from third-party data. That recovery was driven by Chinese cross-border e-commerce platforms like Pinduoduo's Temu, Alibaba's AliExpress, and Shein -- which all ramped up their ad spending to reach more overseas buyers.
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The bulls gave up on Meta as Apple's (NASDAQ: AAPL) privacy-oriented iOS update, fierce competition from ByteDance's TikTok, and the macroeconomic headwinds all curbed the growth of its core advertising business. Growth (YOY) 6% (2%) (4%) (4%) 4% Data source: Meta Platforms. That's already nearly half of the world's population, so Meta should remain a top advertising platform alongside Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google -- even if its near-term outlook has been clouded by platform, macro, and competitive challenges.
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The bulls gave up on Meta as Apple's (NASDAQ: AAPL) privacy-oriented iOS update, fierce competition from ByteDance's TikTok, and the macroeconomic headwinds all curbed the growth of its core advertising business. Meta Platforms (NASDAQ: META), the tech giant formerly known as Facebook, saw its shares surge to an all-time high of $382.18 during the buying frenzy in growth stocks on Sept. 7, 2021. Analysts expect Meta's earnings to grow 36% in 2023 and 25% in 2024 -- as the recovery of its profitable ad business offsets the expansion of its unprofitable Reality Labs segment -- and its stock still looks reasonably valued at 25 times forward earnings.
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The bulls gave up on Meta as Apple's (NASDAQ: AAPL) privacy-oriented iOS update, fierce competition from ByteDance's TikTok, and the macroeconomic headwinds all curbed the growth of its core advertising business. Growth (YOY) 6% (2%) (4%) (4%) 4% Data source: Meta Platforms. Analysts expect Meta's earnings to grow 36% in 2023 and 25% in 2024 -- as the recovery of its profitable ad business offsets the expansion of its unprofitable Reality Labs segment -- and its stock still looks reasonably valued at 25 times forward earnings.
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14899.0
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2023-07-13 00:00:00 UTC
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RSPT: Right Idea for More Balanced Approach to Tech
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AAPL
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https://www.nasdaq.com/articles/rspt%3A-right-idea-for-more-balanced-approach-to-tech
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nan
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nan
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In the first half of 2023, the cap-weighted version of the S&P 500 Information Technology Index beat the S&P 500 by 26% -- one of the widest margins on record for a six-month stretch. As advisors and investors know, that outperformance was driven in large part by a small cohort of mega-cap stocks. As a result, some broad indexes now feature significant weights to a small number of tech and communications services stocks.
Translation: Concentration risk is a growing concern in the indexing community.
To that point, NASDAQ recently announced a special rebalance of the cap-weighted version of the NASDAQ-100 Index (NDX) to reduce the dominance of Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and friends. Fortunately for investors looking for a more diverse approach to this high-flying sector, the Invesco S&P 500 Equal Weight Technology ETF (RSPT) stands at the ready.
RSPT Standing on Its Own Merit
Enthusiasm for cap-weighted tech exchange traded funds is palpable and understandable. However, it’s worth noting that RSPT is no shrinking violet. The Invesco ETF is higher by 22.52% year-to-date. That’s impressive when considering that none of its 66 holdings exceed a weight of 1.69%.
Compare that with the cap-weighted version of the S&P 500 Information Technology Index, where Apple alone commands of 23% of that gauge. That’s one example of concentration risk in the tech sector. The Herfindahl-Hirschman Index (HHI) indicates that those concerns are warranted.
“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.”
Typically, one way for concentration risk on cap-weighted ETFs to correct is for market values to decline. That’s not guaranteed to happen with tech over the near term. If anything, it’s a risky bet to make. However, that ominous scenario highlights the advantages of RSPT’s diversification benefits.
Something else to ponder regarding RSPT: While history doesn’t always repeat, it often rhymes. That’s potentially good news because RSPT has history on its side.
“The tendency of Tech concentration to reverse has important implications for the performance of equal-weight sector strategies,” added S&P Dow Jones. “Typically, after peaks in concentration (such as during 1990, 1999 and 2002), equal-weighted Tech has outperformed.”
For more news, information, and analysis, visit the Portfolio Strategies 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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To that point, NASDAQ recently announced a special rebalance of the cap-weighted version of the NASDAQ-100 Index (NDX) to reduce the dominance of Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and friends. In the first half of 2023, the cap-weighted version of the S&P 500 Information Technology Index beat the S&P 500 by 26% -- one of the widest margins on record for a six-month stretch. Fortunately for investors looking for a more diverse approach to this high-flying sector, the Invesco S&P 500 Equal Weight Technology ETF (RSPT) stands at the ready.
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To that point, NASDAQ recently announced a special rebalance of the cap-weighted version of the NASDAQ-100 Index (NDX) to reduce the dominance of Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and friends. Fortunately for investors looking for a more diverse approach to this high-flying sector, the Invesco S&P 500 Equal Weight Technology ETF (RSPT) stands at the ready. Compare that with the cap-weighted version of the S&P 500 Information Technology Index, where Apple alone commands of 23% of that gauge.
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To that point, NASDAQ recently announced a special rebalance of the cap-weighted version of the NASDAQ-100 Index (NDX) to reduce the dominance of Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and friends. Fortunately for investors looking for a more diverse approach to this high-flying sector, the Invesco S&P 500 Equal Weight Technology ETF (RSPT) stands at the ready. “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.
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To that point, NASDAQ recently announced a special rebalance of the cap-weighted version of the NASDAQ-100 Index (NDX) to reduce the dominance of Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and friends. Fortunately for investors looking for a more diverse approach to this high-flying sector, the Invesco S&P 500 Equal Weight Technology ETF (RSPT) stands at the ready. That’s one example of concentration risk in the tech sector.
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