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14900.0
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2023-07-13 00:00:00 UTC
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Apple's (AAPL) Streaming Service Receives 54 Emmy Nominations
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AAPL
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https://www.nasdaq.com/articles/apples-aapl-streaming-service-receives-54-emmy-nominations
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Apple's AAPL streaming service, Apple TV+, landed record-breaking 54 Emmy Award nominations across its original titles this year. This makes Apple TV+ the third most Emmy-nominated network in just more than three years since its global launch. The nominations encompass a range of categories, highlighting the diverse and high-quality content offered by the platform.
One of the stand-out shows on Apple TV+ is Ted Lasso, which has garnered 21 nominations, making it the most-nominated comedy for the third consecutive year. In a remarkable feat, the show has received nominations for all its original series regulars, a distinction shared by only a few other comedies in television history.
Another Apple original making a splash is the film STILL: A Michael J. Fox Movie, which leads this year's nominations for documentaries. The film has received seven Emmy Award nominations, including Outstanding Documentary or Nonfiction Special and Directing for a Documentary/Nonfiction Program. This recognition underscores Apple TV+'s commitment to producing thought-provoking and engaging content across different genres.
Apple's foray into late-night programming has also proven successful, as The Problem With Jon Stewart has received nominations for Outstanding Talk Series, Directing for a Variety Series and Outstanding Technical Direction. This milestone demonstrates Apple's ability to diversify its content offerings and cater to a wide range of viewer preferences.
Several other Apple Originals have received their first-time Emmy Award nominations, including Shrinking, Bad Sisters, Black Bird, Selena Gomez: My Mind & Me, Prehistoric Planet, Five Days at Memorial, and Hello Tomorrow!
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple's advertising campaigns have also garnered recognition, with the most nominations for Outstanding Commercial in any given year since the category's inception.
Apple TV+ Gaining From Quality Content
Apple TV+, despite having fewer subscribers than Netflix NFLX and Disney DIS, has been gaining recognition due to its impressive content portfolio that includes shows like Ted Lasso. Its animated movie The Boy, the Mole, the Fox and the Horse won an Oscar for Best Animated Short Film this year. Last year, Apple won three Academy Awards for CODA.
Apple’s impressive run at the Academy Awards has been instrumental in driving the recognition of Apple TV+ in the saturated streaming market currently dominated by the likes of Amazon AMZN, Netflix and Disney+.
Apple is expanding its footprint in the entertainment industry with plans to spend $1 billion on producing movies, per Bloomberg. The iPhone-maker partnered with Paramount for the distribution of its upcoming movie Killers of the Flower Moon.
Theatrical releases are expected to provide Apple with wider recognition as a movie producer. It has a solid pipeline of movies and shows for Apple TV+ streaming services, and it is working with renowned directors like Matthew Vaughn and Ridley Scott to improve content.
The growing popularity of Apple TV+, as well as services like Apple News and Fitness+, has been beneficial for Apple’s Services business, which has become a major revenue generator lately.
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. 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.
Apple shares have outperformed the Zacks Computer and Technology sector and Disney year to date. However, it has underperformed Netflix and Amazon. AAPL shares have gained 46.1%, whereas Amazon, Netflix and Disney have returned 55.7%, 50.6% and 3.8%, respectively. Meanwhile, the sector has grown 38%.
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. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
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.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's AAPL streaming service, Apple TV+, landed record-breaking 54 Emmy Award nominations across its original titles this year. AAPL shares have gained 46.1%, whereas Amazon, Netflix and Disney have returned 55.7%, 50.6% and 3.8%, respectively. 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.
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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. Apple's AAPL streaming service, Apple TV+, landed record-breaking 54 Emmy Award nominations across its original titles this year. AAPL shares have gained 46.1%, whereas Amazon, Netflix and Disney have returned 55.7%, 50.6% and 3.8%, respectively.
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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. Apple's AAPL streaming service, Apple TV+, landed record-breaking 54 Emmy Award nominations across its original titles this year. AAPL shares have gained 46.1%, whereas Amazon, Netflix and Disney have returned 55.7%, 50.6% and 3.8%, respectively.
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Apple's AAPL streaming service, Apple TV+, landed record-breaking 54 Emmy Award nominations across its original titles this year. AAPL shares have gained 46.1%, whereas Amazon, Netflix and Disney have returned 55.7%, 50.6% and 3.8%, respectively. 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.
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14901.0
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2023-07-13 00:00:00 UTC
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Apple Just Hit a $3 Trillion Market Cap. Here's Why It Could Get Even Bigger.
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AAPL
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https://www.nasdaq.com/articles/apple-just-hit-a-%243-trillion-market-cap.-heres-why-it-could-get-even-bigger.
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nan
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Every time Apple (NASDAQ: AAPL) has hit a major milestone -- such as a $500 billion market cap, $1 trillion market cap, etc., many investors make the mistake of thinking the company has become too big to continue to produce market-beating returns. And every time, those investors are proven wrong. Here's why the same thing could happen now that Apple has become the first $3 trillion company in the market.
*Stock prices used were the afternoon prices of July 11, 2023. The video was published on July 12, 2023.
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Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
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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Every time Apple (NASDAQ: AAPL) has hit a major milestone -- such as a $500 billion market cap, $1 trillion market cap, etc., many investors make the mistake of thinking the company has become too big to continue to produce market-beating returns. 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 their link they will earn some extra money that supports their channel.
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Every time Apple (NASDAQ: AAPL) has hit a major milestone -- such as a $500 billion market cap, $1 trillion market cap, etc., many investors make the mistake of thinking the company has become too big to continue to produce market-beating returns. 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 Matthew Frankel, CFP® has no position in any of the stocks mentioned.
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Every time Apple (NASDAQ: AAPL) has hit a major milestone -- such as a $500 billion market cap, $1 trillion market cap, etc., many investors make the mistake of thinking the company has become too big to continue to produce market-beating returns. 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 Matthew Frankel, CFP® has no position in any of the stocks mentioned.
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Every time Apple (NASDAQ: AAPL) has hit a major milestone -- such as a $500 billion market cap, $1 trillion market cap, etc., many investors make the mistake of thinking the company has become too big to continue to produce market-beating returns. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Matthew Frankel, CFP® has no position in any of the stocks mentioned. Their opinions remain their own and are unaffected by The Motley Fool.
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14902.0
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2023-07-13 00:00:00 UTC
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Invesco QQQ Trust ETF: Technical Indicators Signal a Strong Buy
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AAPL
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https://www.nasdaq.com/articles/invesco-qqq-trust-etf%3A-technical-indicators-signal-a-strong-buy
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nan
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Investors keen on investing in the technology sector could consider the Invesco QQQ Trust (NASDAQ:QQQ) ETF. This appealing ETF closely tracks the Nasdaq 100 Index (NDX) and provides an opportunity for investors to hold stocks from 10 different sectors. Interestingly, based on technical indicators, QQQ is still a Buy near its current levels.
Technical Analysis in Detail
According to TipRanks’ technical analysis tool, the QQQ ETF stock’s 50-day EMA (exponential moving average) is 349.63, making it a Buy. Further, the moving average convergence divergence (MACD) indicator also signals a Buy.
At the same time, QQQ’s price rate of change (ROC) of 0.35 points to a bullish trend. Also, the QQQ ETF’s Williams %R signals a Buy.
Overall, on the one-day time frame, QQQ stock is a Strong Buy, according to TipRanks’ easy-to-read technical summary signals. This is based on 16 Bullish, six Neutral, and zero Bearish signals.
Latest Update on QQQ ETF
The QQQ ETF’s impressive year-to-date rally of over 41% can be largely attributed to the substantial increase in stock prices of the top seven technology companies. These companies include Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA), Meta (META), and Alphabet (GOOGL) (GOOG). Together, these stocks account for more than 55% of the holdings in the QQQ ETF.
It is important to note that Nasdaq (NDAQ) has scheduled a special rebalance of the Nasdaq 100 Index before the market opens on July 24. The purpose of this rebalance is to mitigate the issue of overconcentration in the index by reducing the combined weight of these seven giants. According to the index’s methodology, it is expected that the total weighting of these stocks will decrease by between 6% to 8%.
Furthermore, The Trade Desk (TTD) will be added to the Nasdaq 100 prior to the market opening on July 17, 2023. TTD will be replacing Activision Blizzard (ATVI), which is set to be acquired by MSFT.
Is QQQ a Good ETF to Invest In?
As per 1,214 top Wall Street analysts providing ratings on the QQQ’s 102 holdings, the ETF comes in as a Moderate Buy, and the average QQQ price target of $392.47 implies 5.3% upside potential. It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations.
Moreover, according to TipRanks’ Smart Score System, QQQ stock has a Smart Score of 8 out of 10, which indicates that it could outperform the broader market over the long term.
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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These companies include Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA), Meta (META), and Alphabet (GOOGL) (GOOG). This appealing ETF closely tracks the Nasdaq 100 Index (NDX) and provides an opportunity for investors to hold stocks from 10 different sectors. Overall, on the one-day time frame, QQQ stock is a Strong Buy, according to TipRanks’ easy-to-read technical summary signals.
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These companies include Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA), Meta (META), and Alphabet (GOOGL) (GOOG). Technical Analysis in Detail According to TipRanks’ technical analysis tool, the QQQ ETF stock’s 50-day EMA (exponential moving average) is 349.63, making it a Buy. Latest Update on QQQ ETF The QQQ ETF’s impressive year-to-date rally of over 41% can be largely attributed to the substantial increase in stock prices of the top seven technology companies.
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These companies include Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA), Meta (META), and Alphabet (GOOGL) (GOOG). Investors keen on investing in the technology sector could consider the Invesco QQQ Trust (NASDAQ:QQQ) ETF. Latest Update on QQQ ETF The QQQ ETF’s impressive year-to-date rally of over 41% can be largely attributed to the substantial increase in stock prices of the top seven technology companies.
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These companies include Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA), Meta (META), and Alphabet (GOOGL) (GOOG). Also, the QQQ ETF’s Williams %R signals a Buy. It is important to note that Nasdaq (NDAQ) has scheduled a special rebalance of the Nasdaq 100 Index before the market opens on July 24.
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14903.0
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2023-07-13 00:00:00 UTC
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Apple Card’s Move from Goldman Sachs to Amex Could be a Big Deal
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AAPL
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https://www.nasdaq.com/articles/apple-cards-move-from-goldman-sachs-to-amex-could-be-a-big-deal
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nan
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Apple (NASDAQ:AAPL) has enjoyed profound success with its push into the realm of fintech, and its move into the space may be far from over. Despite the potential, Goldman Sachs (NYSE:GS) is ready to step back from its consumer ambitions, perhaps moving responsibilities (which include the Apple Card) over to American Express (NYSE:AXP), at least according to a Wall Street Journal report.
Indeed, any Apple Card shift from Goldman Sachs is not an Apple problem; it's more to do with Goldman, which has had mixed results with its consumer push.
Undoubtedly, Goldman Sachs is an investment banking behemoth, so moving into the consumer business was a step outside of its circle of competence. Regardless, if American Express picks up where Goldman Sachs left off, I do think the Amex-Apple partnership is one that could yield a lot of fruit for investors of both companies. Deal or not, though, I stand bullish on AXP and AAPL at this juncture.
American Express Would be Wise to Take Over for Goldman
American Express and Apple seem like a match made in heaven. First, both companies tend to cater to the very high end of their industries. Apple has its best-in-class smartphones that tend to lean towards the luxury side of the smartphone market. Meanwhile, American Express caters to affluent clientele with its pricy but perk-rich credit cards. Though Goldman Sachs caters to the very wealthy, as well, it's not exactly a consumer-facing brand.
In any case, an Amex-Apple deal is uncertain at this juncture. However, if I were at Amex, it'd be a deal too sweet to pass up. Of course, there will be challenges, as Amex will also be stepping slightly outside of its circle of competence. Regardless, Apple brings a massive customer base that could help Amex gain some meaningful ground over its peers in the credit card scene.
Who knows? The Apple Card may be the first of many offerings to come. I certainly would not be surprised if Amex lays the groundwork for Apple to offer the Apple Card Pro or something of the sort!
For now, I wouldn't get my hopes up for an Amex-Apple deal, as a Wall Street Journal report isn't to be taken as gospel. However, the move does certainly make sense for Goldman and Amex. Goldman can return to its roots by stepping back from the consumer end, while Amex looks to double down on its ambitions and bring its robust brand with it.
Where Will Apple's Financial Services Push Take It Next?
Apple's services push has been a remarkable driver of value for shareholders over the past several years. Indeed, financial services is an area where Apple could expand further. Apple's savings account and its competitive interest rate is a deal too good to pass up for most.
Looking farther ahead, Apple may be ready to go up toe-to-toe against the banks. With Amex aboard potentially, the firm may be able to expand Apple Pay Later to new countries and ramp up its disruption against other financial institutions.
Is AXP Stock a Buy, According to Analysts?
According to TipRanks’ analyst rating consensus, AXP stock comes in as a Hold. Out of 15 analyst ratings, there are six Buys, six Holds, and three Sell recommendations. The average American Express stock price target is $176.00, implying upside potential of just 1%. Analyst price targets range from a low of $125.00 per share to a high of $205.00 per share.
Is AAPL Stock a Buy, According to Analysts?
Moving onto AAPL, it has a Strong Buy consensus rating based on 24 Buys and seven Hold recommendations. The average Apple stock price target is $193.57, implying upside potential of 2%. Analyst price targets range from a low of $149.00 per share to a high of $240.00 per share.
The Bottom Line on Apple and Amex
An Apple-Amex deal would be a big win for both companies. Regardless, even if no dotted line gets inked anytime soon, I'd look for both companies to keep moving forward with their ambitions.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) has enjoyed profound success with its push into the realm of fintech, and its move into the space may be far from over. Deal or not, though, I stand bullish on AXP and AAPL at this juncture. Is AAPL Stock a Buy, According to Analysts?
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Apple (NASDAQ:AAPL) has enjoyed profound success with its push into the realm of fintech, and its move into the space may be far from over. Deal or not, though, I stand bullish on AXP and AAPL at this juncture. Is AAPL Stock a Buy, According to Analysts?
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Apple (NASDAQ:AAPL) has enjoyed profound success with its push into the realm of fintech, and its move into the space may be far from over. Deal or not, though, I stand bullish on AXP and AAPL at this juncture. Is AAPL Stock a Buy, According to Analysts?
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Is AAPL Stock a Buy, According to Analysts? Apple (NASDAQ:AAPL) has enjoyed profound success with its push into the realm of fintech, and its move into the space may be far from over. Deal or not, though, I stand bullish on AXP and AAPL at this juncture.
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14904.0
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2023-07-13 00:00:00 UTC
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46.44% of Warren Buffett's Berkshire Hathaway Portfolio Is Invested in This 1 Stock
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AAPL
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https://www.nasdaq.com/articles/46.44-of-warren-buffetts-berkshire-hathaway-portfolio-is-invested-in-this-1-stock
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nan
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nan
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Fool.com contributor Parkev Tatevosian highlights Warren Buffett's decision to allocate nearly half of his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio to Apple (NASDAQ: AAPL) stock.
*Stock prices used were the afternoon prices of July 10, 2023. The video was published on July 12, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 10, 2023
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. 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 Warren Buffett's decision to allocate nearly half of his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio to Apple (NASDAQ: AAPL) stock. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Fool.com contributor Parkev Tatevosian highlights Warren Buffett's decision to allocate nearly half of his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio to Apple (NASDAQ: AAPL) stock. 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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Fool.com contributor Parkev Tatevosian highlights Warren Buffett's decision to allocate nearly half of his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio to Apple (NASDAQ: AAPL) stock. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian highlights Warren Buffett's decision to allocate nearly half of his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio to Apple (NASDAQ: AAPL) stock. 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 Berkshire Hathaway.
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14905.0
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2023-07-13 00:00:00 UTC
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Should Schwab Fundamental U.S. Large Company Index ETF (FNDX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-fundamental-u.s.-large-company-index-etf-fndx-be-on-your-investing-radar-9
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nan
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The Schwab Fundamental U.S. Large Company Index ETF (FNDX) was launched on 08/13/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $11.62 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
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 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.92%.
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 18.50% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.47% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB).
The top 10 holdings account for about 20.13% of total assets under management.
Performance and Risk
FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses. The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
The ETF return is roughly 9.78% so far this year and is up about 15.83% in the last one year (as of 07/13/2023). In the past 52-week period, it has traded between $47.76 and $58.13.
The ETF has a beta of 1 and standard deviation of 17.21% for the trailing three-year period, making it a medium risk choice in the space. With about 735 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FNDX is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $51.45 billion in assets, Vanguard Value ETF has $100.02 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
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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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.47% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $11.62 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.47% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). The Schwab Fundamental U.S. Large Company Index ETF (FNDX) was launched on 08/13/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.47% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Alternatives Schwab Fundamental U.S. Large Company Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.47% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The Schwab Fundamental U.S. Large Company Index ETF (FNDX) was launched on 08/13/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
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2023-07-13 00:00:00 UTC
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Netflix (NFLX) Expands International Content With Indian Dramas
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-expands-international-content-with-indian-dramas
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Netflix NFLX announced that Indian comedy drama Choona, starring actor Jimmy Shergill, will be released on Aug 3. Directed by Pushpendra Nath Mishra of Taj Mahal 1989 fame, the story revolves around six small-town average joes with a disorganized heist plan to take vengeance on a powerful politician.
The company has been expanding its India-based content with a plethora of upcoming shows. Choona will follow Kohrra, which is set to release on Jul 15. It also announced the release of mystery thriller Do Patti, starring Kajol and Kriti Sanon in lead roles. These shows add to Netflix’s already popular content portfolio that includes Lust Stories 2, Scoop, Khakee – The Bihar Chapter, Rana Naidu, Class, Mission Majnu and more.
Globally, the company has been focussed on expanding its original content portfolio, with a range of foreign-language content like King the Land (Korean), Sleeping Dog (German) and The Surrogacy (Mexican).
Turkey’s rom-com Make Me Believe secured the first position on NFLX’s latest Top 10 Non-English Films list with 3.8 million views. Lust Stories 2 grabbed the third spot. Spain’s Through My Window: Across the Sea remained at the fourth position on the list with 2.6 million views.
The company is benefiting from strong viewership of foreign language-based films and shows amid stiff competition from its peers like Apple AAPL, Disney DIS and Amazon AMZN. Its focus on increasing the local content in India and other Asia Pacific countries has been fruitful.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
In the first quarter of 2023, Netflix recorded 1.5 million paid subscribers, up 33.9% year over year.
Moreover, the company is expected to benefit from the launch of paid sharing initiative as well as growing demand for cheaper ad-supported tier. It introduced paid sharing in four countries (Canada, New Zealand, Spain and Portugal) during the first quarter. Although Netflix witnessed subscription cancellations at the initial stage of the launch, there was a gradual improvement in consumer engagement.
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. The company has plans to launch the paid-sharing model in major markets like Brazil, Britain, France and Mexico.
Netflix’s 2023 Prospects
Netflix’s shares have risen 50.5% year to date, outperforming the Zacks Consumer Discretionary sector’s return of 13.5%. It also outperformed Apple and Disney but underperformed Amazon.
Shares of Apple, Disney and Amazon have returned 46.1%, 3.8% and 55.7%, respectively, on a year-to-date basis.
Netflix, which currently has a Zacks Rank #3 (Hold), is expected to benefit 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.
For the second quarter of 2023, total revenues are anticipated to be $8.242 billion, indicating growth of 3.4% year over year or 6% on a forex-neutral basis.
The Zacks Consensus Estimate for revenues is pegged at $8.26 billion, implying an improvement of 3.61% from that reported in the year-ago quarter.
Netflix projects earnings of $2.84 per share for the second quarter, indicating a 20% decline from that registered in the year-ago period.
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.
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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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The company is benefiting from strong viewership of foreign language-based films and shows amid stiff competition from its peers like Apple AAPL, Disney DIS and Amazon AMZN. 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. Directed by Pushpendra Nath Mishra of Taj Mahal 1989 fame, the story revolves around six small-town average joes with a disorganized heist plan to take vengeance on a powerful politician.
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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. The company is benefiting from strong viewership of foreign language-based films and shows amid stiff competition from its peers like Apple AAPL, Disney DIS and Amazon AMZN. Turkey’s rom-com Make Me Believe secured the first position on NFLX’s latest Top 10 Non-English Films list with 3.8 million views.
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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. The company is benefiting from strong viewership of foreign language-based films and shows amid stiff competition from its peers like Apple AAPL, Disney DIS and Amazon AMZN. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote In the first quarter of 2023, Netflix recorded 1.5 million paid subscribers, up 33.9% year over year.
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The company is benefiting from strong viewership of foreign language-based films and shows amid stiff competition from its peers like Apple AAPL, Disney DIS and Amazon AMZN. 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 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.
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2023-07-13 00:00:00 UTC
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Boise Cascade and Cross Country Healthcare have been highlighted as Zacks Bull and Bear of the Day
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AAPL
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https://www.nasdaq.com/articles/boise-cascade-and-cross-country-healthcare-have-been-highlighted-as-zacks-bull-and-bear-of
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For Immediate Release
Chicago, IL – July 13, 2023 – Zacks Equity Research shares Boise Cascade BCC as the Bull of the Day and Cross Country Healthcare CCRN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Dell Technologies DELL, HP Inc. HPQ and Apple AAPL.
Here is a synopsis of all five stocks:
Bull of the Day:
Boise Cascade is a Zacks Rank #1 (Buy) and it sports an A for Value and a B for Growth. This stock has been on a big rise since it last reported in early May. That earnings report was a big beat and led to higher earnings estimates. Let's explore more about this company in this Bull of The Day article.
Description
Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The company sells its products to dealers, home improvement centers, and specialty distributors. The company was incorporated in 2004 and is headquartered in Boise, Idaho.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Boise Cascade, I see three beats Zacks Consensus Estimate and one miss over the last calendar year. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
Last quarter saw EPS of $2.43 when $1.81 was expected. The $0.62 difference works out to be a 34% positive earnings surprise.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have increased for BCC.
This quarter has seen a move from $2.26 to $2.54.
Next quarter has moved from $2.61 to $2.65.
The full year numbers are certainly more important... and they are moving higher as well.
This year has moved from $8.66 to $8.93.
Next year is now up to $8.42, moving up from $7.37.
Valuation
When I first look at valuation, I go right to the forward PE. For BCC I see a 10.5x level which is just about half the 20.6x industry average. The price to book multiple of 1.7x is well below the 7.6x industry average as well. Finally we have a 0.5x price to sales multiple which is significantly lower than the 4x industry average. The valuation comparison to the industry average alone makes BCC worth a deeper look.
Bear of the Day:
Cross Country Healthcare is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently. This stock was added to the Stocks Under $10 service that I manage back in November of 2020 and was removed in July of 2022 for a 221% gain. Imagine my surprise to see it as a Zacks Rank #5 (Strong Sell) after I had been a strong advocate for the name for nearly two years!
This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Cross Country Healthcare, Inc. provides talent management and other consultative services for healthcare clients in the United States. The company operates in two segments, Nurse and Allied Staffing, and Physician Staffing. It serves various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The company was founded in 1986 and is headquartered in Boca Raton, Florida.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of CCRN, I see four straight beats of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CCRN I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.66 to $2.56 over the last 60 days.
The next year has moved from $2.73 to $2.55 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Potential Legislation
Investors who are looking to the longer term should do a little more research in the space. There are whispers that in the future that legislation will require a minimum number of nurses at a given hospital or healthcare facility. The details are still yet to be hammered out, but a new law like that could be a long term tailwind for CCRN.
Additional content:
Q2 PC Shipment Data Showing Signs of Stabilizing
The decline in global personal computer (PC) shipments continues for the seventh consecutive quarter, according to the latest data compiled by Gartner. Per the preliminary data released by the market research firm, PC shipments in the April-June 2023 quarter plunged 16.6% year over year to 59.7 million units.
However, the second-quarter PC shipment data shows a strong improvement from the first quarter when PC vendors had shipped 55.2 million units. The research firm sees the sequential improvement in PC shipments as an initial sign of stabilization in the PC market.
Mikako Kitagawa, Director Analyst at Gartner, stated that "The rate of decline in the PC market has slowed, indicating that shipment volumes may have reached their lowest point." She further added, "There has been progress in reducing PC inventory after more than a year of issues, supported by a gradual increase in business PC demand. Gartner expects that PC inventory will normalize by the end of 2023, and PC demand will return to growth starting in 2024."
Industry 5YR % Return
In 2020 and 2021, PC manufacturers had benefited from the increased demand amid the pandemic-induced remote-working and online-learning wave. The pandemic necessitated using PC systems for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.
However, the back-to-back seven quarters of declining PC shipments depict an end to the industry's demand boom. We believe that consumers have become more cautious about their spending due to inflationary pressure, rising interest rates and fears of a possible recession. Furthermore, enterprises are delaying their large IT spending amid macroeconomic challenges.
Per the data compiled by Gartner, all top vendors registered a decline in their PC shipments in the second quarter. Dell Technologies registered the highest fall of 21.8% to 10.4 million units, followed by Acer 21.1% to 4 million PCs.
HP Inc. and Apple both registered a modest decline in their PC shipments. While HP's PC shipments fell 0.9% to 13.5 million units, Apple's shipments dropped 0.3% to 5.3 million PCs.
Per Gartner, Lenovo continues to hold the top spot on the vendor list, followed by HP and Dell with a market share of 24%, 22.5% and 17.4%, respectively. Apple, Acer and ASUS ended the April-June quarter with a market share of 8.9%, 6.7% and 6.5%, respectively.
Among the leading vendors, Dell carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, Apple and HP Inc. each have a Zacks Rank #3 (Hold). Lenovo carries a Zacks Rank #4 (Sell).
Why Haven't You Looked at Zacks' Top Stocks?
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Zacks Investment Research
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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
HP Inc. (HPQ) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : 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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In addition, Zacks Equity Research provides analysis on Dell Technologies DELL, HP Inc. HPQ and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report Boise Cascade, L.L.C. Description Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada.
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In addition, Zacks Equity Research provides analysis on Dell Technologies DELL, HP Inc. HPQ and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report Boise Cascade, L.L.C. For Immediate Release Chicago, IL – July 13, 2023 – Zacks Equity Research shares Boise Cascade BCC as the Bull of the Day and Cross Country Healthcare CCRN as the Bear of the Day.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report Boise Cascade, L.L.C. In addition, Zacks Equity Research provides analysis on Dell Technologies DELL, HP Inc. HPQ and Apple AAPL. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either.
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In addition, Zacks Equity Research provides analysis on Dell Technologies DELL, HP Inc. HPQ and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report Boise Cascade, L.L.C. Over the last 60 days, earning estimates have increased for BCC.
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2023-07-13 00:00:00 UTC
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Guru Fundamental Report for AAPL - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-51
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
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Top Large-Cap Growth Stocks
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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2023-07-13 00:00:00 UTC
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US STOCKS-Wall St set to extend rally on signs of disinflation
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-extend-rally-on-signs-of-disinflation
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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.
Delta rises on FY profit forecast raise
PepsiCo gains on lifting FY revenue, profit outlook
Weekly jobless claims rise less than expended
June PPI at 0.1% vs est of 0.4%
Futures up: Dow 0.20%, S&P 0.38%, Nasdaq 0.74%
Updated at 08:45 a.m. ET/1245 GMT
By Johann M Cherian and Bansari Mayur Kamdar
July 13 (Reuters) - Wall Street was set to open higher on Thursday after producer prices data provided further evidence of inflation cooling in the world's largest economy, and stoked hopes that the Federal Reserve will soon end its monetary policy tightening.
A Labor Department report showed the producer prices index (PPI) cooled to 0.1% in June from 0.9% in May. Economists polled by Reuters expected producer inflation to have eased to 0.4%.
"This is further confirmation that inflation in the pipeline is beginning to wane," said Peter Cardillo, chief market economist at Spartan Capital Securities.
Traders continue to expect a 21% probability that the central bank will hike borrowing costs in its November meeting. IRPR
Markets have fully priced in a 25-basis-point rate hike later in July.
Rate-sensitive megacap growth names like Apple AAPL.O and Alphabet GOOGL.O added 0.6% and 1.6%, respectively, in premarket trading.
Slightly weighing on sentiment, a Labor Department report showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, indicating that the labor market remains tight
At 08:45 a.m. ET, Dow e-minis 1YMcv1 were up 70 points, or 0.2%, S&P 500 e-minis EScv1 were up 17.25 points, or 0.38%, and Nasdaq 100 e-minis NQcv1 were up 114.5 points, or 0.74%.
As U.S. inflation cools and growth remains resilient, bullish investors are now counting on the second-quarter earnings season to provide more fuel for the rally in stocks.
"The market is in a position to continue to rally, but as the flow of earnings hits Wall Street, investors will be very closely watching forecast rather than results," said Cardillo.
PepsiCoPEP.O added 2.4% on raising its annual revenue and profit forecasts for the second time, banking on resilient demand for its snacks and beverages as well as price hikes.
Delta Air LinesDAL.N gained 3.9% after it lifted its full-year profit outlook following stronger-than-expected second-quarter earnings on a relentless post-pandemic travel boom.
Other airlines including American Airlines AAL.O, United Airlines UAL.O and Southwest Airlines LUV.N added between 2.2% and 2.7%.
Overall, earnings for the S&P 500 constituents are expected to have dropped 6.4% in the second quarter, Refinitiv data showed.
Among other movers, Walt DisneyDIS.N rose 0.7% after the film conglomerate's board extended Chief Executive Officer Robert Iger's contract by two years.
Meta Platforms META.O, which recently launched Twitter-rival Threads, outpaced gains among big growth stocks, adding 1.4%. It is set to release a commercial artificial intelligence (AI) model, as per a report.
Markets will parse remarks by policymakers during the day, including Fed Board Governor Christopher Waller, to gauge the tone of the central bank on monetary policy tightening.
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Saumyadeb Chakrabarty and Maju Samuel)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap growth names like Apple AAPL.O and Alphabet GOOGL.O added 0.6% and 1.6%, respectively, in premarket trading. Delta rises on FY profit forecast raise PepsiCo gains on lifting FY revenue, profit outlook Weekly jobless claims rise less than expended June PPI at 0.1% vs est of 0.4% Futures up: Dow 0.20%, S&P 0.38%, Nasdaq 0.74% Updated at 08:45 a.m. ET/1245 GMT By Johann M Cherian and Bansari Mayur Kamdar July 13 (Reuters) - Wall Street was set to open higher on Thursday after producer prices data provided further evidence of inflation cooling in the world's largest economy, and stoked hopes that the Federal Reserve will soon end its monetary policy tightening. "The market is in a position to continue to rally, but as the flow of earnings hits Wall Street, investors will be very closely watching forecast rather than results," said Cardillo.
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Rate-sensitive megacap growth names like Apple AAPL.O and Alphabet GOOGL.O added 0.6% and 1.6%, respectively, in premarket trading. Delta rises on FY profit forecast raise PepsiCo gains on lifting FY revenue, profit outlook Weekly jobless claims rise less than expended June PPI at 0.1% vs est of 0.4% Futures up: Dow 0.20%, S&P 0.38%, Nasdaq 0.74% Updated at 08:45 a.m. ET/1245 GMT By Johann M Cherian and Bansari Mayur Kamdar July 13 (Reuters) - Wall Street was set to open higher on Thursday after producer prices data provided further evidence of inflation cooling in the world's largest economy, and stoked hopes that the Federal Reserve will soon end its monetary policy tightening. A Labor Department report showed the producer prices index (PPI) cooled to 0.1% in June from 0.9% in May.
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Rate-sensitive megacap growth names like Apple AAPL.O and Alphabet GOOGL.O added 0.6% and 1.6%, respectively, in premarket trading. Delta rises on FY profit forecast raise PepsiCo gains on lifting FY revenue, profit outlook Weekly jobless claims rise less than expended June PPI at 0.1% vs est of 0.4% Futures up: Dow 0.20%, S&P 0.38%, Nasdaq 0.74% Updated at 08:45 a.m. ET/1245 GMT By Johann M Cherian and Bansari Mayur Kamdar July 13 (Reuters) - Wall Street was set to open higher on Thursday after producer prices data provided further evidence of inflation cooling in the world's largest economy, and stoked hopes that the Federal Reserve will soon end its monetary policy tightening. Slightly weighing on sentiment, a Labor Department report showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, indicating that the labor market remains tight At 08:45 a.m.
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Rate-sensitive megacap growth names like Apple AAPL.O and Alphabet GOOGL.O added 0.6% and 1.6%, respectively, in premarket trading. Delta rises on FY profit forecast raise PepsiCo gains on lifting FY revenue, profit outlook Weekly jobless claims rise less than expended June PPI at 0.1% vs est of 0.4% Futures up: Dow 0.20%, S&P 0.38%, Nasdaq 0.74% Updated at 08:45 a.m. ET/1245 GMT By Johann M Cherian and Bansari Mayur Kamdar July 13 (Reuters) - Wall Street was set to open higher on Thursday after producer prices data provided further evidence of inflation cooling in the world's largest economy, and stoked hopes that the Federal Reserve will soon end its monetary policy tightening. Traders continue to expect a 21% probability that the central bank will hike borrowing costs in its November meeting.
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14910.0
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2023-07-12 00:00:00 UTC
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Better Buy: AMD vs. Apple
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-amd-vs.-apple
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nan
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nan
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Tech stocks have enjoyed a rally this year after falling out of favor in 2022. The market appears to be in recovery mode after last year's macroeconomic headwinds led to reductions in consumer spending. As a result, many stocks are trending up, making now an excellent time to invest in some of the industry's leaders before their stocks climb any higher.
Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) are two attractive options, with one producing powerful chips for multiple companies and the other the king of consumer tech. AMD and Apple's stocks have soared 75% and 47% since the start of the year. However, a potential bull market suggests they could have more room to rise. Meanwhile, advances in technologies like artificial intelligence (AI) and virtual/augmented reality (VR/AR) could further bolster the companies.
AMD and Apple are compelling investment options. However, before adding both to your portfolio, it's wise to get the most out of your investment by understanding which is currently the better buy. So, let's examine whether AMD or Apple's stock is the best option.
Advanced Micro Devices
Chipmakers like AMD have become a favorite on Wall Street this year thanks to the endless potential of markets like AI and cloud computing. These industries require high-powered chips to develop, with AMD one of a handful of companies producing the necessary hardware.
The company seemed to start 2023 at a disadvantage, with its biggest competitor, Nvidia, getting a head start in AI. However, the AI market is expected to expand at a compound annual growth rate (CAGR) of 37% through 2030, indicating there will be plenty of opportunities for AMD to snap up market share over the long term.
Meanwhile, many of Nvidia's clients are rooting for AMD as more competition means lower prices for AI chips. As a result, cloud giant Microsoft has stepped in to support AMD's AI chip expansion by providing financial and engineering resources with the aim of creating an alternative to Nvidia. The collaboration is promising, considering Microsoft holds exclusive licenses on multiple OpenAI models. The Windows company's guidance will likely prove invaluable to AMD.
It will take time for AMD to catch up to Nvidia. However, it has a better chance than most with its successful chip business and massive support from other tech companies.
Apple
This year, Apple has become the first company to achieve a market capitalization of $3 trillion. The achievement highlights the stability of Apple's stock over the years, with its shares rising over 1,000% in the last decade.
The company's priority on quality products presented with an easy-to-use design language has created immense brand loyalty worldwide and allowed Apple to charge a premium for its devices. As a result, the tech giant's annual revenue has risen 48% since 2018, with operating income up 68%.
Meanwhile, Apple has achieved a leading market share in multiple areas, including smartphones, tablets, smartwatches, and headphones. In fact, the company holds the third-largest market share in e-commerce in the U.S., only behind Amazon and Walmart, despite offering a significantly smaller lineup of products.
Apple has reached unseen heights in its 47 years of business. However, it continues to have a solid outlook with a growing digital services business and its recently unveiled VR/AR headset, the Vision Pro. The VR market alone is projected to grow at a CAGR of 45% through 2030. With Apple's history of success when entering new industries, an investment in the company could be an investment in the future leader of the high-growth market.
Is AMD or Apple the better buy?
AMD and Apple have enjoyed explosive growth over the last five and 10 years. They both hold crucial positions in tech and have the potential to profit substantially from the development of their respective industries. As a result, one of the best ways to determine the better buy is to assess which is currently trading at a better value.
Data by YCharts.
Two useful metrics when working out a stock's value are the forward price-to-earnings ratio (P/E) and the price-to-free-cash-flow ratio. The chart above indicates Apple is the preferable stock on both fronts, with its lower forward P/E and price-to-free-cash-flow ratios indicating it offers more value than AMD.
Moreover, Apple's position as a leader in multiple markets makes it the more reliable company. AMD has its work cut out for it to catch up to Nvidia while also having to contend with competitors like Intel and Amazon, which are also developing AI chips. Apple has plenty of competitors. However, its years of dominance suggest it won't be dethroned from the top spot any time soon, making its stock the better buy right now.
10 stocks we like better than Advanced Micro Devices
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 3, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Nvidia, and Walmart. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) are two attractive options, with one producing powerful chips for multiple companies and the other the king of consumer tech. Advanced Micro Devices Chipmakers like AMD have become a favorite on Wall Street this year thanks to the endless potential of markets like AI and cloud computing. As a result, cloud giant Microsoft has stepped in to support AMD's AI chip expansion by providing financial and engineering resources with the aim of creating an alternative to Nvidia.
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Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) are two attractive options, with one producing powerful chips for multiple companies and the other the king of consumer tech. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Apple, Nvidia, and Walmart. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) are two attractive options, with one producing powerful chips for multiple companies and the other the king of consumer tech. AMD and Apple's stocks have soared 75% and 47% since the start of the year. Apple This year, Apple has become the first company to achieve a market capitalization of $3 trillion.
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Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) are two attractive options, with one producing powerful chips for multiple companies and the other the king of consumer tech. Is AMD or Apple the better buy? That's right -- they think these 10 stocks are even better buys.
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14911.0
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2023-07-12 00:00:00 UTC
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JQUA: Why This Quality Factor ETF Should be on Your Radar
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AAPL
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https://www.nasdaq.com/articles/jqua%3A-why-this-quality-factor-etf-should-be-on-your-radar
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nan
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nan
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Launched in 2017, the JPMorgan U.S. Quality Factor ETF (NYSEARCA:JQUA) is one of a growing number of "quality factor" ETFs offered by asset managers in recent years that look to invest in companies with strong fundamentals such as healthy balance sheets, strong profitability, and earnings growth. Let’s take a look at JQUA and see why it's worthy of investor consideration.
What Does the JQUA ETF Do?
JQUA is JPMorgan’s (NYSE:JPM) quality factor ETF with $1.7 billion in assets under management (AUM). JQUA tracks the JP Morgan US Quality Factor Index, and JPMorgan says it “utilizes a rules-based approach that matches Russell 1000 sector weights and selects stocks based on quality and profitability characteristics.”
Its goal is to give its investors exposure to higher-quality stocks while reducing single-stock risks. It invests in large-cap and mid-cap stocks, and in keeping with its theme of "quality," it looks to identify stocks that show "profitability, quality of earnings, and solvency," according to the ETF's prospectus.
One aspect of JQUA that is important for investors to note is that it will invest at least 80% of its funds in this underlying index but that it can invest up to 10% of its assets in exchange-traded futures contracts.
The fund is managed by a seasoned team of four portfolio managers, who collectively boast 61 years of industry experience and 50 years at JPMorgan between them. JQUA also pays a dividend and currently yields 1.3%.
JQUA features a Neutral ETF Smart Score of 7 out of 10. 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. The score is data-driven and does not involve any human intervention. A Smart Score of 8 or higher is equivalent to an Outperform rating, while a Smart Score of 4 to 7 is considered Neutral, placing JQUA at the higher end of the Neutral range.
JQUA's Well-Balanced Portfolio
JQUA is very diversified. Not only does it sports 262 holdings, but its top 10 holdings make up under 20% of the fund, meaning that investors aren’t exposed to undue risk in a handful of large holdings. Below, you’ll find an overview of JQUA’s top 10 holdings using TipRank’s holdings tool.
Based on JQUA’s investment criteria, it’s unsurprising to see that its top holdings are stocks that most investors would consider to be blue-chip names, such as mega-cap tech names like Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL).
However, the fund isn't limited to just technology names. The tech sector makes up 30.9% of the fund, which is its largest weighting, but it also has double-digit percentage weightings in the consumer discretionary sector, healthcare, and industrials. Global payment networks Visa (NYSE:V) and Mastercard (NYSE:MA) also appear in JQUA's top 10 holdings, as does Warren Buffett's Berkshire Hathaway (NYSE:BRK.B) conglomerate.
Eight of JQUA's top 10 holdings feature Smart Scores of 8 or above (equivalent to an Outperform rating).
Is JQUA Stock a Buy, According to Analysts?
Turning to Wall Street, JQUA has a Moderate Buy consensus rating, as 59.51% of analyst ratings are Buys, 34.91% are Holds, and 5.58% are Sells. At $48.13, the average JQUA stock price target implies 7.8% upside potential.
Long-Term Performance
JQUA launched in 2017, so while it hasn’t been around for long enough to measure its performance over the course of a decade or more, we can begin to ascertain its long-term track record. As of the end of June, JQUAL had a one-year return of 20.8%. Over a three-year time horizon, it posted an impressive annualized total return of 15%. Lastly, over the past five years, its total annualized return is a solid 12.7%.
JQUA vs. The Market
JQUA’s returns have been solid, but you always want to track an ETF’s performance against the broader market to get a true gauge of how it is performing. Many ETFs fail to beat the market over time. Using the Vanguard S&P 500 ETF (NYSEARCA:VOO) as a proxy for the S&P 500 (SPX), we can measure JQUA’s performance against that of the broader market.
As of the end of June, VOO had a total return of 19.5% over the past year and annualized total returns of 14.6% and 12.3% over the past three and five years, respectively. Therefore, JQUA has beaten the broader market over each of these three time frames, albeit by a relatively narrow margin.
Separately, as JQUA focuses on companies with strong balance sheets and healthy profitability, it is worth checking out how it performed during a down market, as these are defensive qualities. In 2022, which was a difficult year for the market, JQUA lost 13.5%, which may not sound great, but it was better than the S&P 500's loss of 18.2%, and it held up far better than the Nasdaq (NDX) -- for example, the Invesco QQQ Trust ETF (NASDAQ:QQQ) struggled to a loss of 32.6% last year.
Below, you can take a look at a comparison of JQUA versus VOO using TipRanks' ETF Comparison Tool, which enables investors to compare up to 20 ETFs at a time based on a wide array of customizable criteria.
JQUA Has a Reasonable Expense Ratio
This ETF features a relatively reasonable expense ratio of 0.12%. With this fee structure in place, a JQUA investor putting $10,000 into the ETF would pay $154 over the course of 10 years, assuming the fee remains constant and that the fund returns 5% per year.
Investor Takeaway
There isn't really anything spectacular or novel about JQUA or its strategy of focusing on companies with strong fundamentals, but its diversified portfolio of blue-chip holdings, moderate expense ratio, and market-beating performance (albeit by a slim margin) make it a worthy option for investor consideration.
This isn't the type of ETF that you are buying with the expectation of it going parabolic or soaring to any type of massive short-term gains, as indicated by its Neutral ETF Smart Score and the modest upside potential from analyst ratings. Although that being said, this usually isn't a realistic expectation to begin with. However, it does look like a steady, reliable ETF that investors can view as a solid long-term holding based on the reasons discussed above.
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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Based on JQUA’s investment criteria, it’s unsurprising to see that its top holdings are stocks that most investors would consider to be blue-chip names, such as mega-cap tech names like Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL). Launched in 2017, the JPMorgan U.S. Quality Factor ETF (NYSEARCA:JQUA) is one of a growing number of "quality factor" ETFs offered by asset managers in recent years that look to invest in companies with strong fundamentals such as healthy balance sheets, strong profitability, and earnings growth. JQUA is JPMorgan’s (NYSE:JPM) quality factor ETF with $1.7 billion in assets under management (AUM).
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Based on JQUA’s investment criteria, it’s unsurprising to see that its top holdings are stocks that most investors would consider to be blue-chip names, such as mega-cap tech names like Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL). Launched in 2017, the JPMorgan U.S. Quality Factor ETF (NYSEARCA:JQUA) is one of a growing number of "quality factor" ETFs offered by asset managers in recent years that look to invest in companies with strong fundamentals such as healthy balance sheets, strong profitability, and earnings growth. As of the end of June, VOO had a total return of 19.5% over the past year and annualized total returns of 14.6% and 12.3% over the past three and five years, respectively.
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Based on JQUA’s investment criteria, it’s unsurprising to see that its top holdings are stocks that most investors would consider to be blue-chip names, such as mega-cap tech names like Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL). Launched in 2017, the JPMorgan U.S. Quality Factor ETF (NYSEARCA:JQUA) is one of a growing number of "quality factor" ETFs offered by asset managers in recent years that look to invest in companies with strong fundamentals such as healthy balance sheets, strong profitability, and earnings growth. With this fee structure in place, a JQUA investor putting $10,000 into the ETF would pay $154 over the course of 10 years, assuming the fee remains constant and that the fund returns 5% per year.
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Based on JQUA’s investment criteria, it’s unsurprising to see that its top holdings are stocks that most investors would consider to be blue-chip names, such as mega-cap tech names like Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL). Launched in 2017, the JPMorgan U.S. Quality Factor ETF (NYSEARCA:JQUA) is one of a growing number of "quality factor" ETFs offered by asset managers in recent years that look to invest in companies with strong fundamentals such as healthy balance sheets, strong profitability, and earnings growth. What Does the JQUA ETF Do?
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14912.0
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2023-07-12 00:00:00 UTC
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After Hours Most Active for Jul 12, 2023 : AAPL, QQQ, PCG, AMZN, GOOGL, INTC, CMCSA, BP, TFC, KO, T, HBI
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jul-12-2023-%3A-aapl-qqq-pcg-amzn-googl-intc-cmcsa-bp-tfc-ko-t
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 8.27 to 15,315.5. The total After hours volume is currently 88,696,037 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is -0.05 at $189.72, with 4,244,610 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.28 at $373.10, with 2,522,881 shares traded. This represents a 46.74% increase from its 52 Week Low.
Pacific Gas & Electric Co. (PCG) is -0.47 at $17.71, with 2,369,060 shares traded., following a 52-week high recorded in today's regular session.
Amazon.com, Inc. (AMZN) is +0.17 at $130.97, with 2,228,393 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Alphabet Inc. (GOOGL) is +0.1 at $119.03, with 2,192,782 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Intel Corporation (INTC) is +0.03 at $34.01, with 2,190,086 shares traded. INTC's current last sale is 107.97% of the target price of $31.5.
Comcast Corporation (CMCSA) is +0.01 at $42.35, with 1,948,092 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
BP p.l.c. (BP) is +0.015 at $36.31, with 1,928,434 shares traded. BP's current last sale is 84.44% of the target price of $43.
Truist Financial Corporation (TFC) is +0.01 at $33.03, with 1,483,122 shares traded. TFC's current last sale is 78.64% of the target price of $42.
Coca-Cola Company (The) (KO) is unchanged at $59.84, with 1,304,275 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
AT&T Inc. (T) is +0.01 at $15.13, with 1,225,314 shares traded. As reported by Zacks, the current mean recommendation for T is in the "buy range".
Hanesbrands Inc. (HBI) is unchanged at $4.69, with 1,083,587 shares traded. HBI's current last sale is 85.27% of the target price of $5.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.05 at $189.72, with 4,244,610 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Pacific Gas & Electric Co. (PCG) is -0.47 at $17.71, with 2,369,060 shares traded., following a 52-week high recorded in today's regular session.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.05 at $189.72, with 4,244,610 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
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Apple Inc. (AAPL) is -0.05 at $189.72, with 4,244,610 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 88,696,037 shares traded.
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Apple Inc. (AAPL) is -0.05 at $189.72, with 4,244,610 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is +0.17 at $130.97, with 2,228,393 shares traded.
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14913.0
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2023-07-12 00:00:00 UTC
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How To YieldBoost AAPL From 0.5% To 3.5% Using Options
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AAPL
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https://www.nasdaq.com/articles/how-to-yieldboost-aapl-from-0.5-to-3.5-using-options
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nan
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nan
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Shareholders of Apple Inc (Symbol: AAPL) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the December 2025 covered call at the $250 strike and collect the premium based on the $13.55 bid, which annualizes to an additional 2.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.5% annualized rate in the scenario where the stock is not called away. Any upside above $250 would be lost if the stock rises there and is called away, but AAPL shares would have to advance 32.3% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 39.5% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield.
Below is a chart showing AAPL's trailing twelve month trading history, with the $250 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the December 2025 covered call at the $250 strike gives good reward for the risk of having given away the upside beyond $250. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Apple Inc (considering the last 251 trading day closing values as well as today's price of $189.53) to be 29%. For other call options contract ideas at the various different available expirations, visit the AAPL Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Wednesday, the put volume among S&P 500 components was 1.79M contracts, with call volume at 3.02M, for a put:call ratio of 0.59 so far for the day. Compared to the long-term median put:call ratio of .65, that represents high call volume relative to puts; in other words, buyers are showing a preference for calls in options trading so far today. Find out which 15 call and put options traders are talking about today.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
X shares outstanding history
Top Ten Hedge Funds Holding ATEX
Microsoft YTD 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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Below is a chart showing AAPL's trailing twelve month trading history, with the $250 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the December 2025 covered call at the $250 strike gives good reward for the risk of having given away the upside beyond $250. Shareholders of Apple Inc (Symbol: AAPL) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the December 2025 covered call at the $250 strike and collect the premium based on the $13.55 bid, which annualizes to an additional 2.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.5% annualized rate in the scenario where the stock is not called away. Any upside above $250 would be lost if the stock rises there and is called away, but AAPL shares would have to advance 32.3% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 39.5% return from this trading level, in addition to any dividends collected before the stock was called.
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Shareholders of Apple Inc (Symbol: AAPL) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the December 2025 covered call at the $250 strike and collect the premium based on the $13.55 bid, which annualizes to an additional 2.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.5% annualized rate in the scenario where the stock is not called away. Any upside above $250 would be lost if the stock rises there and is called away, but AAPL shares would have to advance 32.3% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 39.5% return from this trading level, in addition to any dividends collected before the stock was called. Below is a chart showing AAPL's trailing twelve month trading history, with the $250 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the December 2025 covered call at the $250 strike gives good reward for the risk of having given away the upside beyond $250.
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Shareholders of Apple Inc (Symbol: AAPL) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the December 2025 covered call at the $250 strike and collect the premium based on the $13.55 bid, which annualizes to an additional 2.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.5% annualized rate in the scenario where the stock is not called away. Any upside above $250 would be lost if the stock rises there and is called away, but AAPL shares would have to advance 32.3% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 39.5% return from this trading level, in addition to any dividends collected before the stock was called. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield.
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Shareholders of Apple Inc (Symbol: AAPL) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the December 2025 covered call at the $250 strike and collect the premium based on the $13.55 bid, which annualizes to an additional 2.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.5% annualized rate in the scenario where the stock is not called away. Below is a chart showing AAPL's trailing twelve month trading history, with the $250 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the December 2025 covered call at the $250 strike gives good reward for the risk of having given away the upside beyond $250. For other call options contract ideas at the various different available expirations, visit the AAPL Stock Options page of StockOptionsChannel.com.
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14914.0
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2023-07-12 00:00:00 UTC
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At a $3 Trillion Market Cap, Has Apple's Stock Gotten Too Expensive?
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AAPL
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https://www.nasdaq.com/articles/at-a-%243-trillion-market-cap-has-apples-stock-gotten-too-expensive
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nan
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nan
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Apple's (NASDAQ: AAPL) stock price has already soared 45% this year, propelling it to a valuation topping $3 trillion. The tech giant's stock trades as if it were still a high-growth startup even though those days appear to be long gone. Given all this quick growth, some are wondering if the stock has already peaked for 2023.
Is Apple still a good investment opportunity, even at an inflated price tag?
Apple's growth rate slowed significantly in recent years
Over the past decade, Apple has averaged a revenue growth rate of around 10%. And that's with the tech company benefiting from a bump in activity during the pandemic. But with the economy coming back to more normal levels in many ways, Apple's growth rate is now below average and it even turned negative in recent quarters:
AAPL Revenue (Quarterly YoY Growth) data by YCharts
For the three months ending April 1, Apple's quarterly revenue was down 2.5% year over year. While services revenue was at an all-time high of $20.9 billion, it grew at a rate of only 5.5% year over year. Apple's diluted per-share profit of $1.52 for the period was identical to what it reported a year ago. But while the business is solid and generating strong profits, it's debatable whether it warrants such a high premium.
Apple's valuation is incredibly high
Apple's stock gains this year have dwarfed the S&P 500, which is up 15% since January. The stock's price-to-earnings (P/E) ratio isn't at its peak but it is much higher than its 10-year average:
AAPL PE Ratio data by YCharts
Between 2021 and 2022, meme stocks were hot and investors were paying obscene valuations for investments, and so Apple's P/E multiple during that time was inflated as well.
At over 30 times earnings, Apple should be generating a strong growth rate. Instead, its sales have been declining and that trend could continue. The consensus analyst price target for Apple's stock is just over $181, which is lower than where the stock closed on Monday ($188.61).
Why Apple could face challenges ahead
The analysts' consensus suggests some risk of a price drop, but there may be even more downside risk for the stock, especially if the economy falls into a recession this year and Apple's business struggles even more than it has of late.
While Apple did announce the Vision Pro headset, I'm not sold on this being a great opportunity for the business. Spending on the metaverse and headsets is what weighed down Meta Platforms' bottom line in recent years, and that could pose a similar problem for Apple if it gets too deep into that business. What has made Apple successful over the years is that it makes products that are easy to use and appeal to the masses. Headsets might appeal to gamers but I'm doubtful of just how much the company will gain from that. Inflation has led to consumers tightening their budgets, and demand for a $3,500 headset could be thin.
Apple's products and services as a whole could falter in future periods as consumers scale back on spending. Plus, investors shouldn't forget that student loan repayments will resume later this year, and that could mean even less discretionary income for consumers, creating another potential headwind for Apple.
Apple's stock isn't a buy at these levels
For Apple to be trading at such a high valuation, the business should be firing on all cylinders and growing at an impressive rate, with much more growth on the horizon. And that clearly isn't the case. While its fundamentals remain solid and this is a hugely successful and profitable business, the price is simply too high to make it a good buy right now.
If you have Apple's stock in your portfolio it can still be a good investment to hang on to for the long term. But prospective investors are better off buying other growth stocks where they can get more value for their money.
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
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. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) stock price has already soared 45% this year, propelling it to a valuation topping $3 trillion. But with the economy coming back to more normal levels in many ways, Apple's growth rate is now below average and it even turned negative in recent quarters: AAPL Revenue (Quarterly YoY Growth) data by YCharts For the three months ending April 1, Apple's quarterly revenue was down 2.5% year over year. The stock's price-to-earnings (P/E) ratio isn't at its peak but it is much higher than its 10-year average: AAPL PE Ratio data by YCharts Between 2021 and 2022, meme stocks were hot and investors were paying obscene valuations for investments, and so Apple's P/E multiple during that time was inflated as well.
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But with the economy coming back to more normal levels in many ways, Apple's growth rate is now below average and it even turned negative in recent quarters: AAPL Revenue (Quarterly YoY Growth) data by YCharts For the three months ending April 1, Apple's quarterly revenue was down 2.5% year over year. The stock's price-to-earnings (P/E) ratio isn't at its peak but it is much higher than its 10-year average: AAPL PE Ratio data by YCharts Between 2021 and 2022, meme stocks were hot and investors were paying obscene valuations for investments, and so Apple's P/E multiple during that time was inflated as well. Apple's (NASDAQ: AAPL) stock price has already soared 45% this year, propelling it to a valuation topping $3 trillion.
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But with the economy coming back to more normal levels in many ways, Apple's growth rate is now below average and it even turned negative in recent quarters: AAPL Revenue (Quarterly YoY Growth) data by YCharts For the three months ending April 1, Apple's quarterly revenue was down 2.5% year over year. Apple's (NASDAQ: AAPL) stock price has already soared 45% this year, propelling it to a valuation topping $3 trillion. The stock's price-to-earnings (P/E) ratio isn't at its peak but it is much higher than its 10-year average: AAPL PE Ratio data by YCharts Between 2021 and 2022, meme stocks were hot and investors were paying obscene valuations for investments, and so Apple's P/E multiple during that time was inflated as well.
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Apple's (NASDAQ: AAPL) stock price has already soared 45% this year, propelling it to a valuation topping $3 trillion. But with the economy coming back to more normal levels in many ways, Apple's growth rate is now below average and it even turned negative in recent quarters: AAPL Revenue (Quarterly YoY Growth) data by YCharts For the three months ending April 1, Apple's quarterly revenue was down 2.5% year over year. The stock's price-to-earnings (P/E) ratio isn't at its peak but it is much higher than its 10-year average: AAPL PE Ratio data by YCharts Between 2021 and 2022, meme stocks were hot and investors were paying obscene valuations for investments, and so Apple's P/E multiple during that time was inflated as well.
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14915.0
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2023-07-12 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
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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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14916.0
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2023-07-12 00:00:00 UTC
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The Paradox of Unprofitable High-Growth Stocks: Outperformance in the Face of Financial Challenges
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AAPL
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https://www.nasdaq.com/articles/the-paradox-of-unprofitable-high-growth-stocks%3A-outperformance-in-the-face-of-financial
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nan
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nan
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The Speculative Juices are Flowing
Parts of the 2023 market are beginning to feel like the post-COVID equity market that led to a Nasdaq 100 ETF (QQQ) double in just a few years. Like the market back then, big, institutional quality, and profitable companies like Apple (AAPL) and Microsoft (MSFT) are performing well. However, unprofitable, highly speculative tech stocks are also making a comeback. For example, Carvana (CVNA), a once-troubled e-commerce platform for buying and selling used cars, is up 600% - since the end of May!
Image Source: Zacks Investment Research
The meteoric move higher is beginning to feel eerily reminiscent of the advances seen in AMC Theaters (AMC) and GameStop (GME) during the “Wall Street Bets” craze of 2021.
Image Source: Zacks Investment Research
What Should Investors Make of the Moves in Unprofitable Tech Stocks?
Though one can argue about whether the move in a stock like Carvana is bubbly, the reasoning behind the move is much different than the reasoning behind the moves in the meme stocks like AMC or GameStop because:
Relativity Matters
In late 2022, many investors (including myself) thought there was a good chance that Carvana would go bankrupt. First, the stock was trading at all-time lows of ~$3 after trading as high as $376 just two years before. Second, the company was hemorrhaging cash at an alarming rate.
Image Source: Zacks Investment Research
However, the stock’s character changed drastically on June 8th when the company announced an improved financial outlook for the second quarter and shares rocketed by more than 50% in a single session as shorts rushed to cover.
The lesson is clear – profitability or financial health are not necessary for a company to have a large move higher. What is required is that, relative to the past, the fundamentals are seen as changing for the better. In Zacks Rank #2 (BUY) Carvana’s case, consensus EPS estimates suggest mid-double-digit growth over the next three quarters – a dramatic improvement versus the negative growth from the previous three quarters.
Image Source: Zacks Investment Research
Know the Market Environment
The last two years are proof that, most of the time, the market environment matters and is cyclical. For example, while tech was melting down in 2022, dividend and old-economy stocks outperformed. In 2023, the trend has cycled back, and non-dividend-paying stocks outperform dividend-payers.
Image Source: GFD
Cathie Wood’s active ARK Innovation ETF (ARKK) is a prime example of the move back to growth and innovation over safety and stability. Some of ARKK’s largest holdings include unprofitable yet highly innovative companies such as Unity Software (U), UiPath (PATH), and Coinbase (COIN). Earlier this week, ARKK emerged from a multi-month base structure and hit fresh 52-week highs.
Image Source: TradingView
Know your Mandate
Your investments should fit your personal goals. If you’re running a long-duration retirement portfolio, continuously adding to dividend payers almost always makes sense. Conversely, if you are actively trading and attempting to outperform the market, you can venture into high-performing momentum stocks that outperform in the current market. As always, risk mitigation is paramount, and combining both strategies can produce strong results.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
Yes, I Want to Help Protect My Portfolio Against Inflation >>
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
GameStop Corp. (GME) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
Carvana Co. (CVNA) : 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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Like the market back then, big, institutional quality, and profitable companies like Apple (AAPL) and Microsoft (MSFT) are performing well. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report GameStop Corp. (GME) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research However, the stock’s character changed drastically on June 8th when the company announced an improved financial outlook for the second quarter and shares rocketed by more than 50% in a single session as shorts rushed to cover.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report GameStop Corp. (GME) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. Like the market back then, big, institutional quality, and profitable companies like Apple (AAPL) and Microsoft (MSFT) are performing well. Image Source: Zacks Investment Research The meteoric move higher is beginning to feel eerily reminiscent of the advances seen in AMC Theaters (AMC) and GameStop (GME) during the “Wall Street Bets” craze of 2021.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report GameStop Corp. (GME) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. Like the market back then, big, institutional quality, and profitable companies like Apple (AAPL) and Microsoft (MSFT) are performing well. Image Source: Zacks Investment Research What Should Investors Make of the Moves in Unprofitable Tech Stocks?
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Like the market back then, big, institutional quality, and profitable companies like Apple (AAPL) and Microsoft (MSFT) are performing well. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report GameStop Corp. (GME) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research What Should Investors Make of the Moves in Unprofitable Tech Stocks?
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14917.0
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2023-07-12 00:00:00 UTC
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Is Apple Really Building a Car?
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AAPL
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https://www.nasdaq.com/articles/is-apple-really-building-a-car
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nan
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nan
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Apple (NASDAQ: AAPL) seems to be continuing its car efforts, recently moving them to Arizona. But the data on Apple's autonomous vehicle efforts aren't promising, which Travis Hoium highlights in this video.
*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 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
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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Apple (NASDAQ: AAPL) seems to be continuing its car efforts, recently moving them to Arizona. But the data on Apple's autonomous vehicle efforts aren't promising, which Travis Hoium highlights in this video. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL) seems to be continuing its car efforts, recently moving them to Arizona. Travis Hoium has positions in Alphabet, Apple, and General Motors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Tesla.
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Apple (NASDAQ: AAPL) seems to be continuing its car efforts, recently moving them to Arizona. 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.
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Apple (NASDAQ: AAPL) seems to be continuing its car efforts, recently moving them to Arizona. But the data on Apple's autonomous vehicle efforts aren't promising, which Travis Hoium highlights in this video. See the 10 stocks *Stock Advisor returns as of July 10, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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14918.0
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2023-07-12 00:00:00 UTC
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Nasdaq 100 Index Shake-Up Rattles High-Flying Stocks of 2023
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AAPL
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https://www.nasdaq.com/articles/nasdaq-100-index-shake-up-rattles-high-flying-stocks-of-2023
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nan
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nan
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Some of the best performers of 2023 sold off on news that the Nasdaq 100 index was conducting a special rebalancing later this month.
Nasdaq announced the rebalance on Friday, July 7, after the market’s close.
As most savvy investors know by now, the outperformance of the Nasdaq and to a lesser degree, the S&P 500 has been driven by seven mega-caps, hailing from the tech, consumer discretionary, and communication services sectors.
Those stocks dubbed the “Magnificent 7” and their year-to-date performances are:
Apple Inc. (NASDAQ: AAPL): 45.52%
Microsoft Corp. (NASDAQ: MSFT): 38.93%
Nvidia Corp. (NASDAQ: NVDA): 188.68%
Tesla Inc. (NASDAQ: TSLA): 118.87%
Amazon.com Inc. (NASDAQ: AMZN): 51.35%
Alphabet Inc. (NASDAQ: GOOGL): 31.98%
Meta Platforms Inc. (NASDAQ: META): 144.39%
While those stocks accounted for nearly all the market’s gains in the first half of the year, breadth began to improve in June. A Bank of America analyst recently noted that market breadth is normalizing, with 50% of stocks outperforming the S&P 500 in June, up from 23% in May.
Promise Of AI Stoked Gains
Prior to June, the seven big stocks, most of them rallying on the promise of AI, benefited more than the broader market. The S&P 500 was up 15.91% in the first half, while the Nasdaq 100, as tracked by the Invesco QQQ (NASDAQ: QQQ) was up nearly 39%.
The outperformance of the Nasdaq 100, relative to the S&P 500, was due to exactly the issue Nasdaq is addressing: The heavy weightings of the seven stocks above.
Rather than just shrugging off the prominence of those companies within the index, Nasdaq has said it’s time to adjust the index weightings.
Rules Of Rebalancing
It’s a little complex, but here’s how the Nasdaq rules work. If all stocks with a weighting of 4.5% or higher, together as a group, constitute more than 48% of the total index, then it’s time to rebalance. According to an already existing set of rules, when that happens, the rebalancing must set the weighting of all those stocks, collectively, at 40%.
As of July 11, Microsoft, Apple, Nvidia, and Amazon each had a weight greater than 4.5%. Six of the stocks sold off on July 10 on news of the rebalance, so the weightings of Tesla and Alphabet were slightly lower than 4.5% on July 11. Meta, whose weighting was already below 4.5%, traded higher on June 10. Its current weighting within the Nasdaq 100 is 4.362%.
Despite the selling in heavily weighted components, the QQQ ETF eked out a gain of 0.03% on July 10. It was trading higher again on July 11.
Changes Become Effective July 24
The rebalance will be based on closing prices on July 3, with more details about the mechanics due out on Friday, July 14. The changes will become effective on Monday, July 24, before the opening bell.
So what does this mean for investors, specifically those who hold shares in QQQ?
An ETF tracking an index must, according to its investment mandate, track the index as closely as possible. That means, of course, that the QQQ, whose assets under management total $201.16 billion, must sell shares of those large stocks so its holdings match the index weightings.
Some Stocks Will Get Heavier Weighting
In addition, the QQQ or other ETFs pegged to the Nasdaq 100 must buy enough shares of other stocks that receive heavier weightings as part of the rebalance.
In a note about the rebalance, Wells Fargo analysts named Starbucks Corp. (NASDAQ: SBUX), Mondelez International Inc. (NASDAQ: MDLZ), Booking Holdings Inc. (NASDAQ: MDLZ), Gilead Sciences Inc. (NASDAQ: GILD), Intuitive Surgical Inc. (NASDAQ: ISRG), Analog Devices Inc. (NASDAQ: ADI) and Automatic Data Processing Inc. (NASDAQ: ADP) as stocks likely to increase in weight.
The Nasdaq implemented a special rebalance twice before: in December 1998 and May 2011. This time around, no stocks will be removed or added as part of the rebalance.
The views and 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 stocks dubbed the “Magnificent 7” and their year-to-date performances are: Apple Inc. (NASDAQ: AAPL): 45.52% Microsoft Corp. (NASDAQ: MSFT): 38.93% Nvidia Corp. (NASDAQ: NVDA): 188.68% Tesla Inc. (NASDAQ: TSLA): 118.87% Amazon.com Inc. (NASDAQ: AMZN): 51.35% Alphabet Inc. (NASDAQ: GOOGL): 31.98% Meta Platforms Inc. (NASDAQ: META): 144.39% While those stocks accounted for nearly all the market’s gains in the first half of the year, breadth began to improve in June. As most savvy investors know by now, the outperformance of the Nasdaq and to a lesser degree, the S&P 500 has been driven by seven mega-caps, hailing from the tech, consumer discretionary, and communication services sectors. A Bank of America analyst recently noted that market breadth is normalizing, with 50% of stocks outperforming the S&P 500 in June, up from 23% in May.
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Those stocks dubbed the “Magnificent 7” and their year-to-date performances are: Apple Inc. (NASDAQ: AAPL): 45.52% Microsoft Corp. (NASDAQ: MSFT): 38.93% Nvidia Corp. (NASDAQ: NVDA): 188.68% Tesla Inc. (NASDAQ: TSLA): 118.87% Amazon.com Inc. (NASDAQ: AMZN): 51.35% Alphabet Inc. (NASDAQ: GOOGL): 31.98% Meta Platforms Inc. (NASDAQ: META): 144.39% While those stocks accounted for nearly all the market’s gains in the first half of the year, breadth began to improve in June. Some Stocks Will Get Heavier Weighting In addition, the QQQ or other ETFs pegged to the Nasdaq 100 must buy enough shares of other stocks that receive heavier weightings as part of the rebalance. In a note about the rebalance, Wells Fargo analysts named Starbucks Corp. (NASDAQ: SBUX), Mondelez International Inc. (NASDAQ: MDLZ), Booking Holdings Inc. (NASDAQ: MDLZ), Gilead Sciences Inc. (NASDAQ: GILD), Intuitive Surgical Inc. (NASDAQ: ISRG), Analog Devices Inc. (NASDAQ: ADI) and Automatic Data Processing Inc. (NASDAQ: ADP) as stocks likely to increase in weight.
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Those stocks dubbed the “Magnificent 7” and their year-to-date performances are: Apple Inc. (NASDAQ: AAPL): 45.52% Microsoft Corp. (NASDAQ: MSFT): 38.93% Nvidia Corp. (NASDAQ: NVDA): 188.68% Tesla Inc. (NASDAQ: TSLA): 118.87% Amazon.com Inc. (NASDAQ: AMZN): 51.35% Alphabet Inc. (NASDAQ: GOOGL): 31.98% Meta Platforms Inc. (NASDAQ: META): 144.39% While those stocks accounted for nearly all the market’s gains in the first half of the year, breadth began to improve in June. Some Stocks Will Get Heavier Weighting In addition, the QQQ or other ETFs pegged to the Nasdaq 100 must buy enough shares of other stocks that receive heavier weightings as part of the rebalance. In a note about the rebalance, Wells Fargo analysts named Starbucks Corp. (NASDAQ: SBUX), Mondelez International Inc. (NASDAQ: MDLZ), Booking Holdings Inc. (NASDAQ: MDLZ), Gilead Sciences Inc. (NASDAQ: GILD), Intuitive Surgical Inc. (NASDAQ: ISRG), Analog Devices Inc. (NASDAQ: ADI) and Automatic Data Processing Inc. (NASDAQ: ADP) as stocks likely to increase in weight.
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Those stocks dubbed the “Magnificent 7” and their year-to-date performances are: Apple Inc. (NASDAQ: AAPL): 45.52% Microsoft Corp. (NASDAQ: MSFT): 38.93% Nvidia Corp. (NASDAQ: NVDA): 188.68% Tesla Inc. (NASDAQ: TSLA): 118.87% Amazon.com Inc. (NASDAQ: AMZN): 51.35% Alphabet Inc. (NASDAQ: GOOGL): 31.98% Meta Platforms Inc. (NASDAQ: META): 144.39% While those stocks accounted for nearly all the market’s gains in the first half of the year, breadth began to improve in June. Some of the best performers of 2023 sold off on news that the Nasdaq 100 index was conducting a special rebalancing later this month. Changes Become Effective July 24 The rebalance will be based on closing prices on July 3, with more details about the mechanics due out on Friday, July 14.
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14919.0
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2023-07-12 00:00:00 UTC
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How Many Miles Is Tesla Driving Autonomously?
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AAPL
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https://www.nasdaq.com/articles/how-many-miles-is-tesla-driving-autonomously
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nan
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nan
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Tesla (NASDAQ: TSLA) is considered an autonomous driving leader by many investors, but is that true? In the state of California, Tesla has reported shockingly few miles in fully autonomous mode, even with a safety driver, indicating that it may be falling behind. Travis Hoium covers the details in this video.
*Stock prices used were end-of-day prices of July 9, 2023. The video was published on July 10, 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 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. 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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In the state of California, Tesla has reported shockingly few miles in fully autonomous mode, even with a safety driver, indicating that it may be falling behind. *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.
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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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*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. 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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*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. Travis Hoium has positions in Alphabet, Apple, and General Motors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Tesla.
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14920.0
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2023-07-12 00:00:00 UTC
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Should Schwab U.S. Large-Cap ETF (SCHX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-u.s.-large-cap-etf-schx-be-on-your-investing-radar-1
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Schwab U.S. Large-Cap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009.
The fund is sponsored by Charles Schwab. It has amassed assets over $33.48 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
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 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.47%.
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 28.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 25.61% of total assets under management.
Performance and Risk
SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Total Stock Market measures all U.S. equity securities with readily available prices. The index includes approximately the largest 750 stocks and is float-adjusted market-capitalization weighted.
The ETF return is roughly 16.88% so far this year and was up about 16.86% in the last one year (as of 07/12/2023). In the past 52-week period, it has traded between $42.25 and $52.50.
The ETF has a beta of 1.01 and standard deviation of 18.44% for the trailing three-year period, making it a medium risk choice in the space. With about 760 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHX is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $336.69 billion in assets, SPDR S&P 500 ETF has $420 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
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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Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Schwab U.S. Large-Cap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009.
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Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). 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.
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Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab U.S. Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Schwab U.S. Large-Cap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009.
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14921.0
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2023-07-12 00:00:00 UTC
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EXPLAINER-What is Nasdaq's special rebalancing and its impact?
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AAPL
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https://www.nasdaq.com/articles/explainer-what-is-nasdaqs-special-rebalancing-and-its-impact-0
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nan
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By Sruthi Shankar and Medha Singh
July 11 (Reuters) - A "special rebalance" of the Nasdaq 100 index .NDX will take place later this month as exchange operator NasdaqNDAQ.O looks to reduce the concentration of heavyweight companies that account for nearly half of the index's weight.
A blistering rally in growth and technology stocks has lifted the Nasdaq 100 index by 37.5% this year. That compares with a 14.8% gain for the benchmark S&P 500 .SPX.
Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O combined account for 43.8% weight in the index, according to Refinitiv data as of Monday's close. As part of the rebalance that will come down to 38.5%.
"There is some concern that this handful of names is distorting the health of the overall stock market, which is likely what's spurring the special rebalancing," said Art Hogan, chief market strategist at B Riley Wealth.
The adjustment will be based on shares outstanding as of July 3, with changes set to be announced on July 14 and taking effect before the market opens on July 24.
WHAT IS A SPECIAL REBALANCING?
A special rebalancing, which is part of Nasdaq 100's methodology to maintain compliance with a U.S. Securities and Exchange Commission rule on fund diversification, has taken place twice before, in 2011 and 1998, said Cameron Lilja, global head of index product and operations at Nasdaq.
The special rebalancing may be conducted at any time if the aggregate weight of companies, each having more than 4.5% weight in the index, tops 48%, according to Nasdaq. During the rebalancing, it is capped at 40%.
Microsoft has the largest weight at 12.91%, followed by Apple at 12.47%, Nvidia 7.04%, Amazon 6.89% and Tesla 4.50%, according to Refinitiv data.
A recent rally in Tesla's shares pushed the aggregate weight above 48%, triggering the rebalance, Wells Fargo strategists said in a client note.
COULD THE S&P 500 FOLLOW SUIT?
Rebalancing of weights in the S&P 500 takes place when the aggregate of companies, with each having weight greater than 4.8%, exceeds 50% of the total index, according to S&P Dow Jones Indices.
Apple and Microsoft are the only two firms with weight over 4.5% in the S&P 500. The top five firms, with the most influence in the S&P 500 that also include Amazon, Nvidia and Tesla, make up for 22.2% of the index's total market value.
An S&P spokesperson said that they "do not typically comment on other index providers' actions and potential changes to our indices".
WHICH STOCKS COULD SEE A BUMP IN WEIGHT?
Wells Fargo index strategists estimate Starbucks SBUX.O, Mondelez MDLZ.O, Booking Holdings BKNG.O, Gilead Sciences GILD.O, Intuitive Surgical ISRG.O, Analog Devices ADI.O and Automatic Data Processing ADP.O will see their weight increase in the Nasdaq 100 index.
Meanwhile Microsoft, Apple, Nvidia, Amazon, Tesla, Meta Platforms and Alphabet's influence in the index could reduce, according to the strategists.
"The smaller companies will end up representing a greater percentage of the entire index," said Sam Stovall, chief investment strategist at CFRA Research.
"It will require portfolio managers to add to their positions in these companies, which will boost their share prices."
PUTTING BRAKES ON MEGACAP RALLY
Apple, which touched $3 trillion in market capitalization late last month, fell 1% on Monday following the news. Other megacap stocks including Microsoft, Alphabet and Amazon fell between 0.7% and 2.5%.
Changes to the index will force investment funds that track it to adjust their portfolios and sell shares of companies that have their weight in the index reduced.
A host of funds that track the Nasdaq 100, including popular exchange traded fund, the $200 billion Invesco QQQ ETF QQQ.O, are expected to be impacted by the rebalancing.
Weights of 7 largest U.S. stocks on Nasdaq 100 and S&P 500 indexes https://tmsnrt.rs/43jq9NV
(Reporting by Sruthi Shankar, Medha Singh and Bansari Mayur Kamdar in Bengaluru; Additional reporting by David Randall in New York; Editing by Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O combined account for 43.8% weight in the index, according to Refinitiv data as of Monday's close. A recent rally in Tesla's shares pushed the aggregate weight above 48%, triggering the rebalance, Wells Fargo strategists said in a client note. "The smaller companies will end up representing a greater percentage of the entire index," said Sam Stovall, chief investment strategist at CFRA Research.
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Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O combined account for 43.8% weight in the index, according to Refinitiv data as of Monday's close. By Sruthi Shankar and Medha Singh July 11 (Reuters) - A "special rebalance" of the Nasdaq 100 index .NDX will take place later this month as exchange operator NasdaqNDAQ.O looks to reduce the concentration of heavyweight companies that account for nearly half of the index's weight. Other megacap stocks including Microsoft, Alphabet and Amazon fell between 0.7% and 2.5%.
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Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O combined account for 43.8% weight in the index, according to Refinitiv data as of Monday's close. By Sruthi Shankar and Medha Singh July 11 (Reuters) - A "special rebalance" of the Nasdaq 100 index .NDX will take place later this month as exchange operator NasdaqNDAQ.O looks to reduce the concentration of heavyweight companies that account for nearly half of the index's weight. The special rebalancing may be conducted at any time if the aggregate weight of companies, each having more than 4.5% weight in the index, tops 48%, according to Nasdaq.
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Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O combined account for 43.8% weight in the index, according to Refinitiv data as of Monday's close. By Sruthi Shankar and Medha Singh July 11 (Reuters) - A "special rebalance" of the Nasdaq 100 index .NDX will take place later this month as exchange operator NasdaqNDAQ.O looks to reduce the concentration of heavyweight companies that account for nearly half of the index's weight. The special rebalancing may be conducted at any time if the aggregate weight of companies, each having more than 4.5% weight in the index, tops 48%, according to Nasdaq.
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14922.0
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2023-07-12 00:00:00 UTC
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Apple Stock (NASDAQ:AAPL): Near-Term Headwinds Could Limit Further Upside
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AAPL
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https://www.nasdaq.com/articles/apple-stock-nasdaq%3Aaapl%3A-near-term-headwinds-could-limit-further-upside
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nan
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nan
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Apple’s (NASDAQ:AAPL) revenue has declined for two consecutive quarters, as macro pressures continue to weigh on consumer spending on discretionary items. Nonetheless, AAPL shares have rallied about 55% so far this year amid optimism around generative artificial intelligence (AI) and confidence in the tech giant’s ability to continue to grow in the long term. While most Wall Street analysts remain bullish on Apple, the upside in the stock could be limited in the near term due to ongoing macro pressures.
Analysts Stay Bullish on AAPL Stock
Apple’s overall revenue declined 3% year-over-year to about $95 billion in the fiscal second quarter (ended April 1, 2023), following a 5% fall in the prior quarter. High inflation and macro pressures have impacted consumers’ wallets, with discretionary spending taking a backseat. Apple expects its June quarter revenue decline rate to be similar to the March quarter.
Despite the ongoing challenges, Apple’s iPhone business and its Services segment remain resilient. It is worth noting that iPhone revenue increased 1.5% during Q2 FY23, even as the broader smartphone industry sales plunged as per IDC estimates. Revenue from the company’s higher-margin Services business increased 5.5% in Q2 FY23.
On Tuesday, KeyBanc analyst Brandon Nispel increased his price target for Apple stock to $200 from $180 and reiterated a Buy rating on the stock. While the analyst’s long-term view is bullish, he told investors that he is neutral on the stock in the near term due to his below-consensus hardware revenue estimates for Q3 FY23.
The analyst explained that the excitement around Apple’s new product launches and investors' preference for safer bets “is resulting in an elevated multiple” for the stock.
Last week, Bank of America analyst Wamsi Mohan noted that as per SensorTower data, App Store revenues in Q3 FY23 increased 5.9% year-over-year to $6.6 billion, with total downloads on iPhone and iPad increasing 4.3%. Also, App Store dollars per download grew 1.5% in the fiscal third quarter. Overall Mohan highlighted that App Store trends improved marginally in the June quarter from the March quarter.
However, Mohan continues to have a Hold rating on the stock with a price target of $190 based on risk-reward balance, as positive catalysts related to new product launches (AR/VR headset) and stable iPhone sales are offset by a potentially weaker consumer spending backdrop in the second half of the year.
Is Apple a Buy, Sell, or Hold?
Wall Street’s Strong Buy consensus rating on AAPL is based on 24 Buys and seven Holds. The average price target of $193.57 implies only 3% upside potential.
Investors looking for AAPL’s most accurate and profitable analyst could follow TD Cowen analyst Krish Sankar. Copying the analyst’s trades on this stock and holding each position for one year could result in 96% of your transactions generating a profit, with an average return of 52.4% per trade.
Conclusion
While most Wall Street analysts remain bullish on Apple due to its long-term growth potential backed by production innovation, brand value, and high-margin Services business, the average price target indicates limited upside due to the impact of macro pressures on the tech giant’s business.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple’s (NASDAQ:AAPL) revenue has declined for two consecutive quarters, as macro pressures continue to weigh on consumer spending on discretionary items. Nonetheless, AAPL shares have rallied about 55% so far this year amid optimism around generative artificial intelligence (AI) and confidence in the tech giant’s ability to continue to grow in the long term. Analysts Stay Bullish on AAPL Stock Apple’s overall revenue declined 3% year-over-year to about $95 billion in the fiscal second quarter (ended April 1, 2023), following a 5% fall in the prior quarter.
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Apple’s (NASDAQ:AAPL) revenue has declined for two consecutive quarters, as macro pressures continue to weigh on consumer spending on discretionary items. Nonetheless, AAPL shares have rallied about 55% so far this year amid optimism around generative artificial intelligence (AI) and confidence in the tech giant’s ability to continue to grow in the long term. Analysts Stay Bullish on AAPL Stock Apple’s overall revenue declined 3% year-over-year to about $95 billion in the fiscal second quarter (ended April 1, 2023), following a 5% fall in the prior quarter.
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Analysts Stay Bullish on AAPL Stock Apple’s overall revenue declined 3% year-over-year to about $95 billion in the fiscal second quarter (ended April 1, 2023), following a 5% fall in the prior quarter. Apple’s (NASDAQ:AAPL) revenue has declined for two consecutive quarters, as macro pressures continue to weigh on consumer spending on discretionary items. Nonetheless, AAPL shares have rallied about 55% so far this year amid optimism around generative artificial intelligence (AI) and confidence in the tech giant’s ability to continue to grow in the long term.
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Apple’s (NASDAQ:AAPL) revenue has declined for two consecutive quarters, as macro pressures continue to weigh on consumer spending on discretionary items. Nonetheless, AAPL shares have rallied about 55% so far this year amid optimism around generative artificial intelligence (AI) and confidence in the tech giant’s ability to continue to grow in the long term. Analysts Stay Bullish on AAPL Stock Apple’s overall revenue declined 3% year-over-year to about $95 billion in the fiscal second quarter (ended April 1, 2023), following a 5% fall in the prior quarter.
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14923.0
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2023-07-12 00:00:00 UTC
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Google Stock Is Insanely Cheap
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AAPL
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https://www.nasdaq.com/articles/google-stock-is-insanely-cheap
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nan
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nan
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Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) shares sold off earlier this year on fear that AI was going to threaten the company's search business. But that threat seems to have subsided and Travis Hoium thinks this will be a great long-term buy for investors.
*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 Alphabet
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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. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. 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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But that threat seems to have subsided and Travis Hoium thinks this will be a great long-term buy for investors. 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 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. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft.
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10 stocks we like better than Alphabet When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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But that threat seems to have subsided and Travis Hoium thinks this will be a great long-term buy for investors. 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.
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14924.0
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2023-07-11 00:00:00 UTC
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Best Performing Active ETFs of 1H 2023
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AAPL
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https://www.nasdaq.com/articles/best-performing-active-etfs-of-1h-2023
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nan
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nan
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Active ETFs, which currently represent less than 6% of total assets, have gathered over 20% of all net flows this year. This increasing investor interest in active strategies is driven by uncertain market conditions and the belief that certain managers may be able to navigate market turbulence successfully.
According to the S&P Indices vs. Active report (SPIVA), 51% of active funds in the U.S. large-cap stocks category underperformed the benchmark in 2022, marking their best underperformance since 2009. However, active managers performed better in the small-cap value and small-cap core categories.
The Valkyrie Bitcoin Miners ETF WGMI has surged more than 245% this year, primarily attributed to Bitcoin's strong rebound and hopes for a spot ETF.
The Meet Kevin Pricing Power ETF PP has seen an impressive gain of over 53% year-to-date, largely due to Tesla's TSLA surge.
Cathie Wood's ARK Next Generation Internet ETF ARKW is up over 53% this year but has seen outflows. Coinbase COIN and GBTC GBTC are among its top holdings.
The Fidelity Blue Chip Growth ETF FBCG is a non-transparent active ETF that focuses on investing in global growth stocks. As of May 31, its top holdings included Apple AAPL, Microsoft MSFT, Alphabet GOOG, Nvidia NVDA, and Amazon AMZN.
To learn more, please watch the short video above.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Alphabet Inc. (GOOG) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
ARK Next Generation Internet ETF (ARKW): ETF Research Reports
Grayscale Bitcoin Trust (GBTC): ETF Research Reports
The Meet Kevin Pricing Power ETF (PP): ETF Research Reports
Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
Valkyrie Bitcoin Miners ETF (WGMI): 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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As of May 31, its top holdings included Apple AAPL, Microsoft MSFT, Alphabet GOOG, Nvidia NVDA, and Amazon AMZN. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports Grayscale Bitcoin Trust (GBTC): ETF Research Reports The Meet Kevin Pricing Power ETF (PP): ETF Research Reports Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. The Meet Kevin Pricing Power ETF PP has seen an impressive gain of over 53% year-to-date, largely due to Tesla's TSLA surge.
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As of May 31, its top holdings included Apple AAPL, Microsoft MSFT, Alphabet GOOG, Nvidia NVDA, and Amazon AMZN. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports Grayscale Bitcoin Trust (GBTC): ETF Research Reports The Meet Kevin Pricing Power ETF (PP): ETF Research Reports Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. The Fidelity Blue Chip Growth ETF FBCG is a non-transparent active ETF that focuses on investing in global growth stocks.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports Grayscale Bitcoin Trust (GBTC): ETF Research Reports The Meet Kevin Pricing Power ETF (PP): ETF Research Reports Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. As of May 31, its top holdings included Apple AAPL, Microsoft MSFT, Alphabet GOOG, Nvidia NVDA, and Amazon AMZN. The Fidelity Blue Chip Growth ETF FBCG is a non-transparent active ETF that focuses on investing in global growth stocks.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports Grayscale Bitcoin Trust (GBTC): ETF Research Reports The Meet Kevin Pricing Power ETF (PP): ETF Research Reports Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. As of May 31, its top holdings included Apple AAPL, Microsoft MSFT, Alphabet GOOG, Nvidia NVDA, and Amazon AMZN. Active report (SPIVA), 51% of active funds in the U.S. large-cap stocks category underperformed the benchmark in 2022, marking their best underperformance since 2009.
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14925.0
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2023-07-11 00:00:00 UTC
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After Hours Most Active for Jul 11, 2023 : COIN, KO, CL, KMI, NEM, RIG, TFC, RIVN, EMB, AAPL, QQQ, KBWB
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jul-11-2023-%3A-coin-ko-cl-kmi-nem-rig-tfc-rivn-emb-aapl-qqq
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -7.21 to 15,111.85. The total After hours volume is currently 62,685,350 shares traded.
The following are the most active stocks for the after hours session:
Coinbase Global, Inc. (COIN) is -0.15 at $89.00, with 2,125,698 shares traded. COIN's current last sale is 141.27% of the target price of $63.
Coca-Cola Company (The) (KO) is +0.0001 at $59.52, with 1,922,515 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Colgate-Palmolive Company (CL) is unchanged at $75.39, with 1,871,788 shares traded. As reported by Zacks, the current mean recommendation for CL is in the "buy range".
Kinder Morgan, Inc. (KMI) is -0.01 at $17.24, with 1,845,344 shares traded. KMI's current last sale is 86.2% of the target price of $20.
Newmont Corporation (NEM) is -0.15 at $43.16, with 1,813,653 shares traded. As reported by Zacks, the current mean recommendation for NEM is in the "buy range".
Transocean Ltd. (RIG) is +0.01 at $8.23, with 1,720,541 shares traded., following a 52-week high recorded in today's regular session.
Truist Financial Corporation (TFC) is unchanged at $32.48, with 1,601,546 shares traded. TFC's current last sale is 77.33% of the target price of $42.
Rivian Automotive, Inc. (RIVN) is -0.07 at $24.78, with 1,582,671 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is +0.02 at $85.49, with 1,455,364 shares traded. This represents a 11.98% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.06 at $188.02, with 1,435,937 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.12 at $368.29, with 1,432,110 shares traded. This represents a 44.85% increase from its 52 Week Low.
Invesco KBW Bank ETF (KBWB) is -0.07 at $42.02, with 1,201,432 shares traded. This represents a 16.11% increase from its 52 Week Low.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.06 at $188.02, with 1,435,937 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Transocean Ltd. (RIG) is +0.01 at $8.23, with 1,720,541 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.06 at $188.02, with 1,435,937 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 KO is in the "buy range".
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.06 at $188.02, with 1,435,937 shares traded. The total After hours volume is currently 62,685,350 shares traded.
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Apple Inc. (AAPL) is -0.06 at $188.02, with 1,435,937 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 -7.21 to 15,111.85.
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14926.0
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2023-07-11 00:00:00 UTC
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VUG vs. SCHG: Which is the Top Growth ETF?
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AAPL
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https://www.nasdaq.com/articles/vug-vs.-schg%3A-which-is-the-top-growth-etf
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nan
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nan
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In 2023, growth stocks, primarily led by a revitalized tech sector excited by the promise of AI advancements, have been the market frontrunners. This surge is, in part, due to easing inflation concerns that previously plagued growth stocks last year.
Against this bullish backdrop, two of the market’s top growth ETFs have raced out to impressive year-to-date gains just over halfway through 2023 -- the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) has returned 35.1% so far in 2023, while the Vanguard Growth ETF (NYSEARCA:VUG) has returned a slightly lower 32.8%.
So, which of these two popular blue chip growth ETFs is the better buy now?
Which Stocks Do These ETFs Hold?
SCHG is an ETF from Charles Schwab with $19.2 billion in assets under management (AUM) that invests in the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. VUG is a much larger ETF from Vanguard with $92.1 billion in AUM that invests in an index that tracks the returns of large-cap growth stocks.
Both ETFs feature strong collections of top growth stocks. VUG owns 240 stocks, and its top 10 holdings make up about half of the fund. Below, you’ll find an overview of VUG’s top 10 holdings using TipRanks’ holdings tool.
Meanwhile, SCHG has a similar portfolio construction, holding 242 stocks, and its top 10 holdings make up a slightly higher 55.6% of the fund. Check out SCHG’s top 10 holdings below.
As you can see, there is plenty of overlap between the top holdings of the two funds. Both heavily feature the mega-cap technology stocks that have done much of the heavy lifting to propel the market higher all year. Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) are the top four holdings for both funds, and they share eight of the same top 10 holdings.
The top holdings of both funds also feature strong Smart Scores. Nine of VUG’s top 10 holdings feature Smart Scores of 8 or better, while eight of SCHG’s do. 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 Smart Score of 8 or higher is equivalent to an Outperform rating.
VUG and SCHG both feature ETF Smart Scores of 8 out of 10.
Both VUG and SCHG are dividend payers, although they don't sport the types of yields that will draw in income investors. VUG currently yields 0.6%, while SCHG yields a slightly lower 0.45%.
Is VUG Stock a Buy, According to Analysts?
Turning to Wall Street, VUG has a Moderate Buy consensus rating, as 66.84% of analyst ratings are Buys, 29.84% are Holds, and 3.32% are Sells. At $302.69, the average VUG stock price target implies 7.5% upside potential.
Is SCHG Stock a Buy, According to Analysts?
Looking at SCHG, it has a Moderate Buy consensus rating, as 68.05% of analyst ratings are Buys, 28.38% are Holds, and 3.57% are Sells. At $80.35, the average SCHG stock price target implies 7.75% upside potential.
Investor-Friendly Fees
One area where these two ETFs really stand out is in terms of their fees. Both SCHG and VUG feature very attractive expense ratios. In fact, they both charge just 0.04% in fees. This is among the most advantageous fees you will find in the market today.
An investor allocating $10,000 towards SCHG or VUG would pay just a barely-noticeable $4 in fees in year one. Assuming a return of 5% a year over the next decade and that the current expense ratios remain constant, this same investor would pay only $51 in fees over 10 years.
Long-Term Performance Comparison
In addition to their low costs, these ETFs also stand out because of the impressive performances that they have put up over the long term.
As of June’s close, VUG had an impressive one-year total return of 28% and a three-year annualized total return of 12.6%. Over the past five years, it posted an excellent 14.5% annualized total return, and over the past decade, it posted an even better 14.9% annualized total return.
Moving onto SCHG, as of the end of June as well, it had a one-year total return of 30%. Further, it posted a three-year annualized total return of 14.4%, a five-year annualized total return of 15.4%, and a stellar 10-year annualized return of 15.7%. So, as good as VUG has been, as you can see, SCHG managed to outperform it over each of these time frames.
Long-time investors know that it’s very difficult to beat the market over the long run. Using the popular Vanguard S&P 500 ETF (NYSEARCA:VOO) as a proxy for the S&P 500 (SPX), both SCHG and VUG have beaten VOO's one-year total return of 19.5%.
Meanwhile, its three-year annualized return of 14.6% is better than VUG’s but trails that of SCHG. Further, both VUG and SCHG beat VOO’s five-year annualized total return of 12.3%, and both trump its 10-year annualized total return of 12.8% as well.
Therefore, while SCHG has outperformed VUG over time, both of these ETFs are pretty good investment vehicles in that they have been beating the broader market over the long run.
Below, you’ll find a comparison of VUG and SCHG based on performance, fees, and a variety of other criteria, with VOO added in for good measure, using TipRanks’ ETF Comparison Tool, which enables investors to compare up to 20 ETFs at once.
Investor Takeaway
These are both low-fee, investor-friendly ETFs with great portfolios and great long-term performances to match. While past performance is no guarantee of future results, SCHG has beaten VUG over each of the time frames discussed above, making it the top choice between the two, but both look like great ETFs as they have both beaten the broader market over the course of the past decade.
I believe these are ETFs that investors can view as core long-term holdings that they can build their portfolios around. With growth stocks surging so far in 2023, investors can consider starting positions in these ETFs and then dollar-cost averaging into them over time during periods of market weakness.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) are the top four holdings for both funds, and they share eight of the same top 10 holdings. SCHG is an ETF from Charles Schwab with $19.2 billion in assets under management (AUM) that invests in the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. VUG is a much larger ETF from Vanguard with $92.1 billion in AUM that invests in an index that tracks the returns of large-cap growth stocks.
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Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) are the top four holdings for both funds, and they share eight of the same top 10 holdings. At $302.69, the average VUG stock price target implies 7.5% upside potential. At $80.35, the average SCHG stock price target implies 7.75% upside potential.
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Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) are the top four holdings for both funds, and they share eight of the same top 10 holdings. Against this bullish backdrop, two of the market’s top growth ETFs have raced out to impressive year-to-date gains just over halfway through 2023 -- the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) has returned 35.1% so far in 2023, while the Vanguard Growth ETF (NYSEARCA:VUG) has returned a slightly lower 32.8%. Further, both VUG and SCHG beat VOO’s five-year annualized total return of 12.3%, and both trump its 10-year annualized total return of 12.8% as well.
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Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) are the top four holdings for both funds, and they share eight of the same top 10 holdings. Which Stocks Do These ETFs Hold? Nine of VUG’s top 10 holdings feature Smart Scores of 8 or better, while eight of SCHG’s do.
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14927.0
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2023-07-11 00:00:00 UTC
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Unusual Call Option Trade in Apple (AAPL) Worth $1,763.28K
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AAPL
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https://www.nasdaq.com/articles/unusual-call-option-trade-in-apple-aapl-worth-%241763.28k
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nan
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nan
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On July 11, 2023 at 15:24:24 ET an unusually large $1,763.28K block of Call contracts in Apple (AAPL) was bought, with a strike price of $190.00 / share, expiring in 556 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 2.28 sigmas above the mean, placing it in the 98.80th 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 6398 funds or institutions reporting positions in Apple. This is a decrease of 9 owner(s) or 0.14% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 77.38%. Total shares owned by institutions decreased in the last three months by 2.31% to 9,919,710K shares.
The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 1.92% 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 1.92% from its latest reported closing price of 188.61.
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 11, 2023 at 15:24:24 ET an unusually large $1,763.28K block of Call contracts in Apple (AAPL) was bought, with a strike price of $190.00 / share, expiring in 556 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 2.28 sigmas above the mean, placing it in the 98.80th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 77.38%.
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On July 11, 2023 at 15:24:24 ET an unusually large $1,763.28K block of Call contracts in Apple (AAPL) was bought, with a strike price of $190.00 / share, expiring in 556 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 2.28 sigmas above the mean, placing it in the 98.80th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 77.38%.
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On July 11, 2023 at 15:24:24 ET an unusually large $1,763.28K block of Call contracts in Apple (AAPL) was bought, with a strike price of $190.00 / share, expiring in 556 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 2.28 sigmas above the mean, placing it in the 98.80th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 77.38%.
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On July 11, 2023 at 15:24:24 ET an unusually large $1,763.28K block of Call contracts in Apple (AAPL) was bought, with a strike price of $190.00 / share, expiring in 556 day(s) (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 2.28 sigmas above the mean, placing it in the 98.80th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 77.38%.
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14928.0
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2023-07-11 00:00:00 UTC
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China's Huawei poised to overcome US ban with return of 5G phones -research firms
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AAPL
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https://www.nasdaq.com/articles/chinas-huawei-poised-to-overcome-us-ban-with-return-of-5g-phones-research-firms
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nan
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nan
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By David Kirton
SHENZHEN, China, July 12 (Reuters) - China's Huawei Technologies is plotting a return to the 5G smartphone industry by the end of this year, according to research firms, signalling a comeback after a U.S. ban on equipment sales decimated its consumer electronics business.
Huawei declined to comment. SMIC did not respond to a request for comment.
The Shenzhen-based tech giant once vied with Apple AAPL.O and Samsung 005930.KS to be the world's biggest handset maker until rounds of U.S. restrictions beginning in 2019 cut its access to chipmaking tools essential for producing its most advanced models.
The U.S. and European governments have labelled Huawei a security risk, a charge the company denies. Since then, Huawei has only sold limited batches of 5G models using stockpiled chips.
Stuck selling last-generation 4G handsets, Huawei fell from most rankings worldwide last year, when sales reached a low point, though it rose to a 10% market share in China in the first quarter, according to consultancy Canalys.
5G FORECASTS
One of the research firms said it expected Huawei to use SMIC's N+1 manufacturing process, though with a forecast yield rate of usable chips below 50%, 5G shipments would be limited to around 2 million to 4 million units. A second firm estimated shipments could reach 10 million units, without providing further details.
Huawei shipped 240.6 million smartphones worldwide in 2019, its peak year, according to Canalys, before selling its Honor unit that accounted for nearly a fifth of shipments that year.
Huawei could produce 5G versions of flagship models like the iPhone rival P60 this year, with new launches likely in early 2024, the three research firms said, adding they were basing such predictions on information they had received via checks with contacts in Huawei's supply chain and recent company announcements.
However, U.S. restrictions cut Huawei off from Google's Android operating system and the bundle of developer services upon which most Android apps are based, limiting Huawei handsets' appeal outside of China.
CHIP DESIGN TOOLS
The research firms noted Huawei in March announced it had made breakthroughs in electronic design automation (EDA) tools for chips produced at and above 14 nanometre (nm) technology.
Chip design companies use EDA software to produce the blueprints for chips before they are mass manufactured at fabs.
The research firms, citing their own industry sources, believe Huawei's EDA software could be used with SMIC's N+1 manufacturing process to make chips at the equivalent of 7 nm, the powerful semiconductors typically used in 5G phones.
Washington barred SMIC from obtaining an advanced chipmaking tool called an EUV machine from Dutch firm ASML ASML.AS that is critical in the process of making 7 nm chips.
But some analysts have found signs SMIC has nevertheless managed to produce 7 nm chips by tweaking simpler DUV machines it could still purchase freely from ASML.
The second research firm said it noticed Huawei had asked SMIC to produce chip components below 14 nm this year for 5G products.
The forecast yield rate of less than 50% means that 5G chips are "going to be costly", said Doug Fuller who researches chips at the Copenhagen Business School.
"I guess if Huawei wants to eat the cost they can do this, but I don't see such chips as price competitive," Fuller said.
($1 = 7.2023 Chinese yuan renminbi)
(Reporting by David Kirton; Editing by Jamie Freed)
((David.Kirton@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 Shenzhen-based tech giant once vied with Apple AAPL.O and Samsung 005930.KS to be the world's biggest handset maker until rounds of U.S. restrictions beginning in 2019 cut its access to chipmaking tools essential for producing its most advanced models. Stuck selling last-generation 4G handsets, Huawei fell from most rankings worldwide last year, when sales reached a low point, though it rose to a 10% market share in China in the first quarter, according to consultancy Canalys. The research firms, citing their own industry sources, believe Huawei's EDA software could be used with SMIC's N+1 manufacturing process to make chips at the equivalent of 7 nm, the powerful semiconductors typically used in 5G phones.
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The Shenzhen-based tech giant once vied with Apple AAPL.O and Samsung 005930.KS to be the world's biggest handset maker until rounds of U.S. restrictions beginning in 2019 cut its access to chipmaking tools essential for producing its most advanced models. One of the research firms said it expected Huawei to use SMIC's N+1 manufacturing process, though with a forecast yield rate of usable chips below 50%, 5G shipments would be limited to around 2 million to 4 million units. The research firms noted Huawei in March announced it had made breakthroughs in electronic design automation (EDA) tools for chips produced at and above 14 nanometre (nm) technology.
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The Shenzhen-based tech giant once vied with Apple AAPL.O and Samsung 005930.KS to be the world's biggest handset maker until rounds of U.S. restrictions beginning in 2019 cut its access to chipmaking tools essential for producing its most advanced models. One of the research firms said it expected Huawei to use SMIC's N+1 manufacturing process, though with a forecast yield rate of usable chips below 50%, 5G shipments would be limited to around 2 million to 4 million units. Huawei could produce 5G versions of flagship models like the iPhone rival P60 this year, with new launches likely in early 2024, the three research firms said, adding they were basing such predictions on information they had received via checks with contacts in Huawei's supply chain and recent company announcements.
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The Shenzhen-based tech giant once vied with Apple AAPL.O and Samsung 005930.KS to be the world's biggest handset maker until rounds of U.S. restrictions beginning in 2019 cut its access to chipmaking tools essential for producing its most advanced models. One of the research firms said it expected Huawei to use SMIC's N+1 manufacturing process, though with a forecast yield rate of usable chips below 50%, 5G shipments would be limited to around 2 million to 4 million units. The research firms noted Huawei in March announced it had made breakthroughs in electronic design automation (EDA) tools for chips produced at and above 14 nanometre (nm) technology.
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14929.0
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2023-07-11 00:00:00 UTC
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US STOCKS-S&P 500, Dow rise ahead of monthly inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-rise-ahead-of-monthly-inflation-data
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nan
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nan
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(For a Reuters live blog on U.S., UK and European stock markets, click [LIVE/] or type LIVE/ in a news window.)
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JPMorgan gains on Jefferies' upgrade ahead of results
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Amazon dangles deeper 'Prime Day' discounts for US shoppers
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Indexes mixed: Dow up 0.37%, S&P adds 0.13%, Nasdaq slips 0.06%
(Updated at 09:46 a.m. ET/1346 GMT)
By Johann M Cherian and Bansari Mayur Kamdar
July 11 (Reuters) - The Dow and the S&P 500 rose on Tuesday ahead of inflation data, as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening.
The latest data, due on Wednesday, is expected to show consumer prices cooled on an annual basis in June, which could influence bets on another rate hike after the July meeting.
Investors have already raised their expectations of a 25 basis-point rate hike later this month after last week's jobs report pointed to a resilient U.S. economy.
In the previous session, the main U.S. stock indexes closed a choppy session slightly higher after Fed officials signaled the central bank was nearing the end of its monetary tightening cycle.
"Investors are spending a lot of time thinking about the CPI data," said Peter Andersen, founder of Andersen Capital Management.
"They're hoping that those numbers will be a little cooled, which might signal to the Fed that rate hikes are working and that there may be an earlier end to future rate hikes."
New York Fed President John Williams in an interview with the Financial Times said the central bank is not done raising rates. He added that the economy is yet to feel the full impact of past rate hikes.
Weighing on the tech-heavy Nasdaq, megacap growth stocks such as Apple and Alphabet slipped 0.3% and 0.1%, extending Monday's losses as Nasdaq Inc said it would rebalance its Nasdaq 100 index to address the benchmark's "overconcentration."
"The impact (of the rebalance) may be modest," said Art Hogan, chief market strategist at B Riley Wealth.
"The big-cap Nasdaq index is going to adjust weightings vs. a full addition or deletion. Also, far more money tracks the S&P 500, which is why S&P 500 component changes get a lot more attention than Nasdaq 100 moves."
Amazon.com outpaced megacap peers, up 1.5%, going into the "Prime Day" 48-hour shopping event, which falls on July 11-12.
At 09:46 a.m. ET, the Dow Jones Industrial Average was up 125.25 points, or 0.37%, at 34,069.65, the S&P 500 was up 5.68 points, or 0.13%, at 4,415.21, and the Nasdaq Composite was down 8.45 points, or 0.06%, at 13,677.04.
Nine of the top 11 S&P 500 sectors advanced in early trading, with energy leading gains by 0.6% each on the back of gains in commodity prices. [O/R] [MET/L]
Leading gains on the Dow, Salesforce advanced 3.1% after the cloud services firm said it would increase prices of some of its cloud and marketing tools, a first in seven years.
Most big banks also rose, with JPMorgan Chase climbing 0.6% after Jefferies upgraded the stock to "buy" ahead of quarterly results later this week.
Wall Street banks are expected to report higher profits for the second quarter as rising interest payments offset a downturn in dealmaking.
Advancing issues outnumbered decliners by a 2.83-to-1 ratio on the NYSE and a 1.35-to-1 ratio on the Nasdaq.
The S&P index recorded 29 new 52-week highs and one new low, while the Nasdaq recorded 43 new highs and 12 new lows. (Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Shinjini Ganguli, Arun Koyyur and Maju Samuel) ((johann.mcherian@thomsonreuters.com;)) Keywords: USA STOCKS/ (UPDATE 3)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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* JPMorgan gains on Jefferies' upgrade ahead of results * Amazon dangles deeper 'Prime Day' discounts for US shoppers * Indexes mixed: Dow up 0.37%, S&P adds 0.13%, Nasdaq slips 0.06% (Updated at 09:46 a.m. ET/1346 GMT) By Johann M Cherian and Bansari Mayur Kamdar July 11 (Reuters) - The Dow and the S&P 500 rose on Tuesday ahead of inflation data, as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening. The latest data, due on Wednesday, is expected to show consumer prices cooled on an annual basis in June, which could influence bets on another rate hike after the July meeting. Most big banks also rose, with JPMorgan Chase climbing 0.6% after Jefferies upgraded the stock to "buy" ahead of quarterly results later this week.
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* JPMorgan gains on Jefferies' upgrade ahead of results * Amazon dangles deeper 'Prime Day' discounts for US shoppers * Indexes mixed: Dow up 0.37%, S&P adds 0.13%, Nasdaq slips 0.06% (Updated at 09:46 a.m. ET/1346 GMT) By Johann M Cherian and Bansari Mayur Kamdar July 11 (Reuters) - The Dow and the S&P 500 rose on Tuesday ahead of inflation data, as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening. In the previous session, the main U.S. stock indexes closed a choppy session slightly higher after Fed officials signaled the central bank was nearing the end of its monetary tightening cycle. Most big banks also rose, with JPMorgan Chase climbing 0.6% after Jefferies upgraded the stock to "buy" ahead of quarterly results later this week.
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* JPMorgan gains on Jefferies' upgrade ahead of results * Amazon dangles deeper 'Prime Day' discounts for US shoppers * Indexes mixed: Dow up 0.37%, S&P adds 0.13%, Nasdaq slips 0.06% (Updated at 09:46 a.m. ET/1346 GMT) By Johann M Cherian and Bansari Mayur Kamdar July 11 (Reuters) - The Dow and the S&P 500 rose on Tuesday ahead of inflation data, as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening. "They're hoping that those numbers will be a little cooled, which might signal to the Fed that rate hikes are working and that there may be an earlier end to future rate hikes." Weighing on the tech-heavy Nasdaq, megacap growth stocks such as Apple and Alphabet slipped 0.3% and 0.1%, extending Monday's losses as Nasdaq Inc said it would rebalance its Nasdaq 100 index to address the benchmark's "overconcentration."
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* JPMorgan gains on Jefferies' upgrade ahead of results * Amazon dangles deeper 'Prime Day' discounts for US shoppers * Indexes mixed: Dow up 0.37%, S&P adds 0.13%, Nasdaq slips 0.06% (Updated at 09:46 a.m. ET/1346 GMT) By Johann M Cherian and Bansari Mayur Kamdar July 11 (Reuters) - The Dow and the S&P 500 rose on Tuesday ahead of inflation data, as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening. Investors have already raised their expectations of a 25 basis-point rate hike later this month after last week's jobs report pointed to a resilient U.S. economy. "They're hoping that those numbers will be a little cooled, which might signal to the Fed that rate hikes are working and that there may be an earlier end to future rate hikes."
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14930.0
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2023-07-11 00:00:00 UTC
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Notable Tuesday Option Activity: AMZN, AAPL, ENPH
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AAPL
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https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-amzn-aapl-enph
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Amazon.com Inc (Symbol: AMZN), where a total of 445,198 contracts have traded so far, representing approximately 44.5 million underlying shares. That amounts to about 82.1% of AMZN's average daily trading volume over the past month of 54.2 million shares. Particularly high volume was seen for the $130 strike call option expiring July 14, 2023, with 61,687 contracts trading so far today, representing approximately 6.2 million underlying shares of AMZN. Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange:
Apple Inc (Symbol: AAPL) saw options trading volume of 395,485 contracts, representing approximately 39.5 million underlying shares or approximately 72.1% of AAPL's average daily trading volume over the past month, of 54.8 million shares. Particularly high volume was seen for the $190 strike call option expiring July 14, 2023, with 58,752 contracts trading so far today, representing approximately 5.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $190 strike highlighted in orange:
And Enphase Energy Inc. (Symbol: ENPH) options are showing a volume of 24,910 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 68.8% of ENPH's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $180 strike call option expiring July 14, 2023, with 2,016 contracts trading so far today, representing approximately 201,600 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $180 strike highlighted in orange:
For the various different available expirations for AMZN options, AAPL options, or ENPH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
GLYC Stock Predictions
VALQ Videos
APU Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $190 strike call option expiring July 14, 2023, with 58,752 contracts trading so far today, representing approximately 5.9 million underlying shares of AAPL. Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 395,485 contracts, representing approximately 39.5 million underlying shares or approximately 72.1% of AAPL's average daily trading volume over the past month, of 54.8 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $190 strike highlighted in orange: And Enphase Energy Inc. (Symbol: ENPH) options are showing a volume of 24,910 contracts thus far today.
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Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 395,485 contracts, representing approximately 39.5 million underlying shares or approximately 72.1% of AAPL's average daily trading volume over the past month, of 54.8 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $190 strike highlighted in orange: And Enphase Energy Inc. (Symbol: ENPH) options are showing a volume of 24,910 contracts thus far today. Particularly high volume was seen for the $190 strike call option expiring July 14, 2023, with 58,752 contracts trading so far today, representing approximately 5.9 million underlying shares of AAPL.
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Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 395,485 contracts, representing approximately 39.5 million underlying shares or approximately 72.1% of AAPL's average daily trading volume over the past month, of 54.8 million shares. Particularly high volume was seen for the $190 strike call option expiring July 14, 2023, with 58,752 contracts trading so far today, representing approximately 5.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $190 strike highlighted in orange: And Enphase Energy Inc. (Symbol: ENPH) options are showing a volume of 24,910 contracts thus far today.
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Below is a chart showing AMZN's trailing twelve month trading history, with the $130 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 395,485 contracts, representing approximately 39.5 million underlying shares or approximately 72.1% of AAPL's average daily trading volume over the past month, of 54.8 million shares. Particularly high volume was seen for the $190 strike call option expiring July 14, 2023, with 58,752 contracts trading so far today, representing approximately 5.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $190 strike highlighted in orange: And Enphase Energy Inc. (Symbol: ENPH) options are showing a volume of 24,910 contracts thus far today.
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14931.0
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2023-07-11 00:00:00 UTC
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EXPLAINER-What is Nasdaq's special rebalancing and its impact?
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AAPL
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https://www.nasdaq.com/articles/explainer-what-is-nasdaqs-special-rebalancing-and-its-impact
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nan
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By Sruthi Shankar and Medha Singh
July 11 (Reuters) - A "special rebalance" of the Nasdaq 100 index .NDX will take place later this month as exchange operator NasdaqNDAQ.O looks to reduce the concentration of heavyweight companies that account for nearly half of the index's weight.
A blistering rally in growth and technology stocks has lifted the Nasdaq 100 index by 37.5% this year. That compares with a 14.8% gain for the benchmark S&P 500 .SPX.
Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O combined account for 43.8% weight in the index, according to Refinitiv data as of Monday's close. As part of the rebalance that will come down to 38.5%.
"There is some concern that this handful of names is distorting the health of the overall stock market, which is likely what's spurring the special rebalancing," said Art Hogan, chief market strategist at B Riley Wealth.
The adjustment will be based on shares outstanding as of July 3, with changes set to be announced on July 14 and taking effect before the market opens on July 24.
WHAT IS A SPECIAL REBALANCING?
A special rebalancing, which is part of Nasdaq 100's methodology to maintain compliance with a U.S. Securities and Exchange Commission rule on fund diversification, has taken place twice before, in 2011 and 1998, said Cameron Lilja, global head of index product and operations at Nasdaq.
The special rebalancing may be conducted at any time if the aggregate weight of companies, each having more than 4.5% weight in the index, tops 48%, according to Nasdaq. During the rebalancing, it is capped at 40%.
Microsoft has the largest weight at 12.91%, followed by Apple at 12.47%, Nvidia 7.04%, Amazon 6.89% and Tesla 4.50%, according to Refinitiv data.
A recent rally in Tesla's shares pushed the aggregate weight above 48%, triggering the rebalance, Wells Fargo strategists said in a client note.
COULD THE S&P 500 FOLLOW SUIT?
Rebalancing of weights in the S&P 500 takes place when the aggregate of companies, with each having weight greater than 4.8%, exceeds 50% of the total index, according to S&P Dow Jones Indices.
Apple and Microsoft are the only two firms with weight over 4.5% in the S&P 500. The top five firms, with the most influence in the S&P 500 that also include Amazon, Nvidia and Tesla, make up for 22.2% of the index's total market value.
An S&P spokesperson said that they "do not typically comment on other index providers' actions and potential changes to our indices".
WHICH STOCKS COULD SEE A BUMP IN WEIGHT?
Wells Fargo index strategists estimate Starbucks SBUX.O, Mondelez MDLZ.O, Booking Holdings BKNG.O, Gilead Sciences GILD.O, Intuitive Surgical ISRG.O, Analog Devices ADI.O and Automatic Data Processing ADP.O will see their weight increase in the Nasdaq 100 index.
Meanwhile Microsoft, Apple, Nvidia, Amazon, Tesla, Meta Platforms and Alphabet's influence in the index could reduce, according to the strategists.
"The smaller companies will end up representing a greater percentage of the entire index," said Sam Stovall, chief investment strategist at CFRA Research.
"It will require portfolio managers to add to their positions in these companies, which will boost their share prices."
PUTTING BRAKES ON MEGACAP RALLY
Apple, which touched $3 trillion in market capitalization late last month, fell 1% on Monday following the news. Other megacap stocks including Microsoft, Alphabet and Amazon fell between 0.7% and 2.5%.
Changes to the index will force investment funds that track it to adjust their portfolios and sell shares of companies that have their weight in the index reduced.
A host of funds that track the Nasdaq 100, including popular exchange traded fund, the $200 billion Invesco QQQ ETF QQQ.O, are expected to be impacted by the rebalancing.
Weights of 7 largest U.S. stocks on Nasdaq 100 and S&P 500 indexes https://tmsnrt.rs/43jq9NV
(Reporting by Sruthi Shankar, Medha Singh and Bansari Mayur Kamdar in Bengaluru; Additional reporting by David Randall in New York; Editing by Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O combined account for 43.8% weight in the index, according to Refinitiv data as of Monday's close. A recent rally in Tesla's shares pushed the aggregate weight above 48%, triggering the rebalance, Wells Fargo strategists said in a client note. "The smaller companies will end up representing a greater percentage of the entire index," said Sam Stovall, chief investment strategist at CFRA Research.
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Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O combined account for 43.8% weight in the index, according to Refinitiv data as of Monday's close. By Sruthi Shankar and Medha Singh July 11 (Reuters) - A "special rebalance" of the Nasdaq 100 index .NDX will take place later this month as exchange operator NasdaqNDAQ.O looks to reduce the concentration of heavyweight companies that account for nearly half of the index's weight. Other megacap stocks including Microsoft, Alphabet and Amazon fell between 0.7% and 2.5%.
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Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O combined account for 43.8% weight in the index, according to Refinitiv data as of Monday's close. By Sruthi Shankar and Medha Singh July 11 (Reuters) - A "special rebalance" of the Nasdaq 100 index .NDX will take place later this month as exchange operator NasdaqNDAQ.O looks to reduce the concentration of heavyweight companies that account for nearly half of the index's weight. The special rebalancing may be conducted at any time if the aggregate weight of companies, each having more than 4.5% weight in the index, tops 48%, according to Nasdaq.
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Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O combined account for 43.8% weight in the index, according to Refinitiv data as of Monday's close. By Sruthi Shankar and Medha Singh July 11 (Reuters) - A "special rebalance" of the Nasdaq 100 index .NDX will take place later this month as exchange operator NasdaqNDAQ.O looks to reduce the concentration of heavyweight companies that account for nearly half of the index's weight. The special rebalancing may be conducted at any time if the aggregate weight of companies, each having more than 4.5% weight in the index, tops 48%, according to Nasdaq.
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14932.0
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2023-07-11 00:00:00 UTC
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OMFL, NVDY: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/omfl-nvdy%3A-big-etf-inflows
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Invesco Russell 1000Dynamic Multifactor ETF, which added 31,050,000 units, or a 35.3% increase week over week. Among the largest underlying components of OMFL, in morning trading today Apple is off about 0.3%, and Microsoft is lower by about 0.9%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the NVDY ETF, which added 275,000 units, for a 37.9% increase in outstanding units.
VIDEO: OMFL, NVDY: Big ETF Inflows
The views and 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 OMFL, in morning trading today Apple is off about 0.3%, and Microsoft is lower by about 0.9%. And on a percentage change basis, the ETF with the biggest increase in inflows was the NVDY ETF, which added 275,000 units, for a 37.9% increase in outstanding units. VIDEO: OMFL, NVDY: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Invesco Russell 1000Dynamic Multifactor ETF, which added 31,050,000 units, or a 35.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the NVDY ETF, which added 275,000 units, for a 37.9% increase in outstanding units. VIDEO: OMFL, NVDY: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Invesco Russell 1000Dynamic Multifactor ETF, which added 31,050,000 units, or a 35.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the NVDY ETF, which added 275,000 units, for a 37.9% increase in outstanding units. VIDEO: OMFL, NVDY: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Invesco Russell 1000Dynamic Multifactor ETF, which added 31,050,000 units, or a 35.3% increase week over week. Among the largest underlying components of OMFL, in morning trading today Apple is off about 0.3%, and Microsoft is lower by about 0.9%. And on a percentage change basis, the ETF with the biggest increase in inflows was the NVDY ETF, which added 275,000 units, for a 37.9% increase in outstanding units.
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14933.0
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2023-07-11 00:00:00 UTC
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EU looks to take lead in metaverse world, avoid Big Tech dominance
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AAPL
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https://www.nasdaq.com/articles/eu-looks-to-take-lead-in-metaverse-world-avoid-big-tech-dominance
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By Foo Yun Chee
BRUSSELS, July 11 (Reuters) - The European Commission on Tuesday set out a plan in a bid to take the lead in the metaverse - shared virtual worlds accessible through the internet - and to prevent Big Tech dominating a nascent sphere that could boost economic growth.
The EU initiative comes as Facebook owner Meta Platforms META.O, Microsoft MSFT.O and Apple AAPL.O work on metaverse products or services, prompting fears that the companies may get an unfair advantage over smaller rivals.
The EU executive said its initiative aims to reflect EU values and fundamental rights and create an open and interoperable metaverse, an area where it estimates theglobal marketsize will exceed 800 billion euros by 2030 from 27 billion last year.
The scheme includes bringing together creators, media companies and others to create an industrial ecosystem, setting up regulatory sandboxes to help companies test out the metaverse and rolling out skills development programmes as well virtual public services.
"We need to have people at the centre and shape it according to our EU digital rights and principles, to address the risks regarding privacy or disinformation. We want to make sure Web 4.0 becomes an open, secure, trustworthy, fair and inclusive digital environment for all," Commission Vice President Margrethe Vestager said in a statement.
Last week, she said that there are no plans to regulate the metaverse for now but expects the raft of rules enacted in recent years, including privacy, market power and the upcoming artificial intelligence regulation to apply to the new field.
(Reporting by Foo Yun Chee)
((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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The EU initiative comes as Facebook owner Meta Platforms META.O, Microsoft MSFT.O and Apple AAPL.O work on metaverse products or services, prompting fears that the companies may get an unfair advantage over smaller rivals. By Foo Yun Chee BRUSSELS, July 11 (Reuters) - The European Commission on Tuesday set out a plan in a bid to take the lead in the metaverse - shared virtual worlds accessible through the internet - and to prevent Big Tech dominating a nascent sphere that could boost economic growth. We want to make sure Web 4.0 becomes an open, secure, trustworthy, fair and inclusive digital environment for all," Commission Vice President Margrethe Vestager said in a statement.
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The EU initiative comes as Facebook owner Meta Platforms META.O, Microsoft MSFT.O and Apple AAPL.O work on metaverse products or services, prompting fears that the companies may get an unfair advantage over smaller rivals. By Foo Yun Chee BRUSSELS, July 11 (Reuters) - The European Commission on Tuesday set out a plan in a bid to take the lead in the metaverse - shared virtual worlds accessible through the internet - and to prevent Big Tech dominating a nascent sphere that could boost economic growth. The EU executive said its initiative aims to reflect EU values and fundamental rights and create an open and interoperable metaverse, an area where it estimates theglobal marketsize will exceed 800 billion euros by 2030 from 27 billion last year.
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The EU initiative comes as Facebook owner Meta Platforms META.O, Microsoft MSFT.O and Apple AAPL.O work on metaverse products or services, prompting fears that the companies may get an unfair advantage over smaller rivals. By Foo Yun Chee BRUSSELS, July 11 (Reuters) - The European Commission on Tuesday set out a plan in a bid to take the lead in the metaverse - shared virtual worlds accessible through the internet - and to prevent Big Tech dominating a nascent sphere that could boost economic growth. The EU executive said its initiative aims to reflect EU values and fundamental rights and create an open and interoperable metaverse, an area where it estimates theglobal marketsize will exceed 800 billion euros by 2030 from 27 billion last year.
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The EU initiative comes as Facebook owner Meta Platforms META.O, Microsoft MSFT.O and Apple AAPL.O work on metaverse products or services, prompting fears that the companies may get an unfair advantage over smaller rivals. By Foo Yun Chee BRUSSELS, July 11 (Reuters) - The European Commission on Tuesday set out a plan in a bid to take the lead in the metaverse - shared virtual worlds accessible through the internet - and to prevent Big Tech dominating a nascent sphere that could boost economic growth. The EU executive said its initiative aims to reflect EU values and fundamental rights and create an open and interoperable metaverse, an area where it estimates theglobal marketsize will exceed 800 billion euros by 2030 from 27 billion last year.
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14934.0
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2023-07-11 00:00:00 UTC
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5 Bear Myths Debunked
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AAPL
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https://www.nasdaq.com/articles/5-bear-myths-debunked
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nan
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nan
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Entering 2023, many investors were skeptical after the drubbing that US markets took in 2022. Inflation soared, geopolitical tensions came to a fever pitch, and earnings fell. Last year tech stocks lagged, and the Nasdaq 100 ETF (QQQ) fell 32.58%. However, as markets often do, thus far in 2023, they have fed off uncertainty and have climbed the wall of worry. The best example is the Q’s – the tech-heavy index is higher by 37.94% year-to-date. Now, the question on investors’ minds is, “What’s next for stocks?” Below I will debunk 5 bear myths:
“Market Breadth is Insufficient”
On Wall Street, breadth refers to the overall participation and direction of the stocks that make up the market indices. By gauging the number of advancing stocks versus the number of declining stocks, stock market breadth provides investors with valuable insights into the market’s strength and the level of underlying support in the market. Though stock market indices can rise for a while with limited leadership, participation must eventually broaden out to have a sustained advance.
Meta Platforms (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) have been dubbed “The Magnificent Seven” because of their incredible performance of late. For example, Apple is not worth nearly $3 trillion. Because of their outstanding performance, these mega-cap tech stocks have been responsible for a large portion of the year’s gains. However, recently, market breadth is broadening out in a big way. After a slow start to the year, the Nasdaq-100 Equal Weight Index ETF (QQQE) is up 21.1% year-to-date and just broke to new highs.
Image Source: Zacks Investment Research
Though the market-cap index is drastically outperforming, the argument of lack of market breadth is dissipating quickly. Furthermore, the broadening out of the market is not just occurring in tech – the small-cap Russell 2000 Index ETF (IWM) is showing signs of life. While the Qs were flat on Monday, IWM ramped a healthy 1.71% and is on the verge of a major breakout.
Image Source: TradingView
“Earnings Are Still Flat to Down”
Though the above statement is true, history tells us that equity markets tend to bottom long before earnings do. In the three past major earnings slowdowns (the internet bubble burst, Global Financial Crisis, and the COVID correction), stocks bottomed long before earnings did. In other words, investors tend to discount rebounding earnings ahead of time.
Image Source: Zacks Investment Research
“Everyone is Bullish Now”
Several sentiment indicators are indeed showing excess bullishness However, this is normal during the infancy of a bull market. Nevertheless, one important sentiment indicator remains negative. According to Bloomberg, Wall Street Strategists are sticking to their cautious equity views into the second half of the year. On average, analysts expect negative returns for the second half of the year.
Image Source: Bloomberg
The past four times analysts predicted lower second halves in the aggregate, stocks finished the year’s second half higher each time.
“Inflation is Still a Problem for Stocks”
While inflation may still be elevated, what is important for investors to note is that it is dropping on a relative basis. According to Truflation’s real-time US inflation gauge, the inflation rate has decreased to 2.3% from over 11% a year ago.
Image Source: Truflation
Furthermore, used car prices plummeted by 3.8% last month, marking the largest drop in three years. Used car prices are a leading indicator when it comes to inflation.
“Strong Jobs #’s Will Lead to a Hawkish Fed”
Last week, the ADP jobs number suggested that the US added 497,000 jobs – beating expectations of 235,000. However, the payrolls number, which tends to be much more accurate, has been revised lower every month in 2023. In other words, though the jobs market is strong, it is not as strong as the ADP number suggests.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
iShares Russell 2000 ETF (IWM): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta Platforms (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) have been dubbed “The Magnificent Seven” because of their incredible performance of late. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Though the market-cap index is drastically outperforming, the argument of lack of market breadth is dissipating quickly.
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Meta Platforms (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) have been dubbed “The Magnificent Seven” because of their incredible performance of late. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. By gauging the number of advancing stocks versus the number of declining stocks, stock market breadth provides investors with valuable insights into the market’s strength and the level of underlying support in the market.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta Platforms (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) have been dubbed “The Magnificent Seven” because of their incredible performance of late. Now, the question on investors’ minds is, “What’s next for stocks?” Below I will debunk 5 bear myths: “Market Breadth is Insufficient” On Wall Street, breadth refers to the overall participation and direction of the stocks that make up the market indices.
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Meta Platforms (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) have been dubbed “The Magnificent Seven” because of their incredible performance of late. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. By gauging the number of advancing stocks versus the number of declining stocks, stock market breadth provides investors with valuable insights into the market’s strength and the level of underlying support in the market.
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14935.0
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2023-07-11 00:00:00 UTC
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US STOCKS-Wall St set to open higher ahead of monthly inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-ahead-of-monthly-inflation-data
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nan
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nan
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By Johann M Cherian and Bansari Mayur Kamdar
July 11 (Reuters) - Wall Street was set to open higher on Tuesday ahead of inflation data as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening.
The latest data, due on Wednesday, is expected to show consumer prices cooled on an annual basis in June, which could influence bets on another rate hike after the July meeting.
Investors have already raised their expectations of a 25 basis-point rate hike later this month after last week's jobs report pointed to a resilient U.S. economy.
Market participants will also keep a close tab on comments from several central bank policymakers who are expected to speak during the week.
In the previous session, the main U.S. stock indexes closed a choppy session slightly higher after Fed officials signaled the central bank was the end of its monetary tightening cycle.
"Investors are spending a lot of time thinking about the CPI data," said Peter Andersen, founder of Andersen Capital Management.
"They're hoping that those numbers will be a little cooled, which might signal to the Fed that rate hikes are working and that there may be an earlier end to future rate hikes."
The yield on two-year U.S. Treasury notes US2YT=RR, which move in line with short-term interest rate expectations, ticked further down from a 16-year high.
In premarket trading, megacap growth stocks such as Apple AAPL.O and Tesla TSLA.O rose 0.4% and 0.2%, recovering from Monday's losses as Nasdaq Inc NDAQ.Osaid it would rebalance its Nasdaq 100 index .NDX to address the benchmark's "overconcentration."
"The impact (of the rebalance) may be modest," said Art Hogan, chief market strategist at B Riley Wealth.
"The big-cap Nasdaq index is going to adjust weightings vs. a full addition or deletion. Also, far more money tracks the S&P 500, which is why S&P 500 component changes get a lot more attention than Nasdaq 100 moves."
Amazon.comAMZN.O led gains among megacap peers, up 0.8%, going into the "Prime Day" 48-hour shopping event, which falls on July 11-12 this year.
The online retailer hopes to tempt U.S. shoppers to open inflation-thinned wallets by offering deeper discounts on a wide range of goods and services, including its first-ever travel discounts.
At 08:15 a.m. ET, Dow e-minis 1YMcv1 were up 44 points, or 0.13%, S&P 500 e-minis EScv1 were up 8 points, or 0.18%, and Nasdaq 100 e-minis NQcv1 were up 36.75 points, or 0.24%.
Most big banks also gained, with JPMorgan Chase JPM.N climbing 1.2% after Jefferies upgraded the stock to "buy" ahead of quarterly results later this week.
Wall Street banks are expected to report higher profits for the second quarter as rising interest payments offset a downturn in dealmaking.
The S&P 500 banks index .SPXBK has shed 9% so far this year in the aftermath of the biggest crisis since 2008 that pummeled regional lenders.
Zions Bancorp ZION.O and Truist Financial TFC.N eased 1.5% and 0.7%, respectively, after Jefferies cut its rating on the banks to "hold".
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Shinjini Ganguli, Arun Koyyur and Maju Samuel)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In premarket trading, megacap growth stocks such as Apple AAPL.O and Tesla TSLA.O rose 0.4% and 0.2%, recovering from Monday's losses as Nasdaq Inc NDAQ.Osaid it would rebalance its Nasdaq 100 index .NDX to address the benchmark's "overconcentration." By Johann M Cherian and Bansari Mayur Kamdar July 11 (Reuters) - Wall Street was set to open higher on Tuesday ahead of inflation data as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening. The latest data, due on Wednesday, is expected to show consumer prices cooled on an annual basis in June, which could influence bets on another rate hike after the July meeting.
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In premarket trading, megacap growth stocks such as Apple AAPL.O and Tesla TSLA.O rose 0.4% and 0.2%, recovering from Monday's losses as Nasdaq Inc NDAQ.Osaid it would rebalance its Nasdaq 100 index .NDX to address the benchmark's "overconcentration." By Johann M Cherian and Bansari Mayur Kamdar July 11 (Reuters) - Wall Street was set to open higher on Tuesday ahead of inflation data as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening. In the previous session, the main U.S. stock indexes closed a choppy session slightly higher after Fed officials signaled the central bank was the end of its monetary tightening cycle.
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In premarket trading, megacap growth stocks such as Apple AAPL.O and Tesla TSLA.O rose 0.4% and 0.2%, recovering from Monday's losses as Nasdaq Inc NDAQ.Osaid it would rebalance its Nasdaq 100 index .NDX to address the benchmark's "overconcentration." By Johann M Cherian and Bansari Mayur Kamdar July 11 (Reuters) - Wall Street was set to open higher on Tuesday ahead of inflation data as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening. In the previous session, the main U.S. stock indexes closed a choppy session slightly higher after Fed officials signaled the central bank was the end of its monetary tightening cycle.
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In premarket trading, megacap growth stocks such as Apple AAPL.O and Tesla TSLA.O rose 0.4% and 0.2%, recovering from Monday's losses as Nasdaq Inc NDAQ.Osaid it would rebalance its Nasdaq 100 index .NDX to address the benchmark's "overconcentration." By Johann M Cherian and Bansari Mayur Kamdar July 11 (Reuters) - Wall Street was set to open higher on Tuesday ahead of inflation data as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening. In the previous session, the main U.S. stock indexes closed a choppy session slightly higher after Fed officials signaled the central bank was the end of its monetary tightening cycle.
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14936.0
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2023-07-11 00:00:00 UTC
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Apple (AAPL) Boosts Apple News Content With Popular Podcast
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-boosts-apple-news-content-with-popular-podcast
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nan
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nan
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Apple AAPL is keeping no stone unturned to make Apple News a hit. The service has exciting news for sports fans with the return of the popular podcast After the Whistle with Brendan Hunt and Rebecca Lowe for a second season. This podcast promises to bring complete coverage of the 2023 Women's World Cup tournament to listeners worldwide.
After the Whistle is hosted by Brendan Hunt, the actor and co-creator of the Emmy Award-winning Apple TV+ series Ted Lasso, and Rebecca Lowe, the host of NBC Sports' Premier League coverage for the past 10 seasons.
Apple is positioning After the Whistle as a must-listen podcast for soccer enthusiasts during the Women's World Cup. Apple News is leveraging its platform to promote the podcast. Users can listen to the trailer for the new season in Apple News and Apple Podcasts, and they can follow the show to stay up to date on every episode during the World Cup tournament.
This move is likely to attract a large and dedicated audience, which could translate into increased user engagement and potential advertising revenues for Apple. Moreover, this integration of podcast content within Apple's ecosystem enhances user experience and strengthens Apple's position as a leading provider of digital media and entertainment.
Quality Content Driving Apple TV+ Growth
Apple has been strengthening its footprint in the digital media and entertainment market through its streaming service, Apple TV+.
The streaming platform, despite having fewer subscribers than Netflix NFLX and Disney DIS, has been gaining recognition due to its impressive content portfolio that includes shows like Ted Lasso. Its animated movie The Boy, the Mole, the Fox and the Horse won an Oscar for Best Animated Short Film this year. Last year, Apple won three Academy Awards for CODA.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple’s impressive run at the Academy Awards has been instrumental in driving recognition of Apple TV+ in the saturated streaming market currently dominated by the likes of Amazon AMZN, Netflix and Disney+.
Apple TV+ is also expanding into different genres, like live sports.
Growing Services Revenues to Aid Growth
The growing popularity of Apple TV+ as well as services like Apple News and Fitness+ have been beneficial for Apple’s Services business, which has become a major revenue-generating source in recent times.
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.
Upcoming new features like – Listen with family and friends using Collaborative Playlists, Apple Music Sing experience with Continuity Camera, addition of the SharePlay feature to car, the ability to stream the entire catalog of Apple Music radio shows on Apple Podcasts, browsing offline maps with just a tap using Apple Maps, daily crosswords with Puzzles on Apple News, audio stories from Apple News+ on Apple Podcasts and several others – are expected to boost service segment growth.
For the fiscal third quarter, Services’ revenue growth is expected to be similar to the March quarter. 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.
Apple shares have outperformed the Zacks Computer and Technology sector and Disney year to date. However, it has underperformed both Netflix and Amazon. AAPL shares have gained 45.2%, Amazon, Netflix and Disney have returned 51.3%, 49.8% and 1.4%, respectively, while the sector has grown 35.6%.
This Zacks Rank #3 (Hold) company expects the June quarter’s (fiscal third) year-over-year revenue growth to be similar to that of the March quarter due to unfavorable forex. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 are pegged at $81.11 billion, indicating a 2.23% year-over-year decline.
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.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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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Apple AAPL is keeping no stone unturned to make Apple News a hit. AAPL shares have gained 45.2%, Amazon, Netflix and Disney have returned 51.3%, 49.8% and 1.4%, respectively, while the sector has grown 35.6%. 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.
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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. Apple AAPL is keeping no stone unturned to make Apple News a hit. AAPL shares have gained 45.2%, Amazon, Netflix and Disney have returned 51.3%, 49.8% and 1.4%, respectively, while the sector has grown 35.6%.
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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. Apple AAPL is keeping no stone unturned to make Apple News a hit. AAPL shares have gained 45.2%, Amazon, Netflix and Disney have returned 51.3%, 49.8% and 1.4%, respectively, while the sector has grown 35.6%.
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Apple AAPL is keeping no stone unturned to make Apple News a hit. AAPL shares have gained 45.2%, Amazon, Netflix and Disney have returned 51.3%, 49.8% and 1.4%, respectively, while the sector has grown 35.6%. 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.
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14937.0
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2023-07-11 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-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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14938.0
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2023-07-11 00:00:00 UTC
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Keybanc Maintains Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/keybanc-maintains-apple-aapl-overweight-recommendation-0
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nan
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nan
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Fintel reports that on July 11, 2023, Keybanc maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 1.92% 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 1.92% from its latest reported closing price of 188.61.
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 6398 funds or institutions reporting positions in Apple. This is a decrease of 9 owner(s) or 0.14% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 77.38%. Total shares owned by institutions decreased in the last three months by 2.31% to 9,919,710K shares.
The put/call ratio of AAPL is 0.87, 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 11, 2023, Keybanc maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 77.38%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on July 11, 2023, Keybanc maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 77.38%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on July 11, 2023, Keybanc maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 77.38%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on July 11, 2023, Keybanc maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 77.38%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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14939.0
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2023-07-11 00:00:00 UTC
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Foxconn Withdraws From $19.5 Bln India Semiconductor JV Project
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AAPL
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https://www.nasdaq.com/articles/foxconn-withdraws-from-%2419.5-bln-india-semiconductor-jv-project
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nan
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nan
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(RTTNews) - Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has pulled out of a $19.5 billion semiconductor joint venture deal with Indian conglomerate Vedanta.
The JV project to produce semiconductor and display components in Gujrat, the home state of Indian Prime Minister Narendra Modi, was signed in September last year. Foxconn reportedly said the decision to withdraw from the deal was by mutual agreement.
Meanwhile, Foxconn said it remained confident about India's semiconductor ambitions and is in talks with several Indian and international partners to move forward with the plans to make semiconductors in the country.
While announcing the deal last year, Foxconn and Vedanta had agreed to invest nearly $20 billion in Gujrat to set up semiconductor and display production plants. Foxconn was to bring technical expertise to the venture, while Vedanta agreed to finance the project.
Vedanta had agreed to setup a display manufacturing unit with an investment of $11.95 billion and separate chip-related production units by investing $7.58 billion. The Vedanta-Foxconn joint venture project, which aimed to start manufacturing display and chip products within two years, was also expected to create more than 100,000 jobs in Gujarat.
The Taiwanese firm, which is moving some supply chains out of China amid increased tensions between the US and China, has already started building multiple factory sites across India, including one in Telangana and another in Karnataka state.
Foxconn recently announced plans to venture into making of electric vehicles, saying that it considers electric vehicles as the next growth targets. According to reports, the company was also considering setting up an EV manufacturing plant in India.
The company already manufactures iPhones at its Sriperumbudur factory on the outskirts of Chennai, India.
Foxconn operates the world's biggest iPhone factory in the Zhengzhou city, called iPhone City. The major plant was hit hard last year by worker unrest following Covid-19 spread and related restrictions.
In late June, Foxconn and automotive company Stellantis N.V. said they have formed a 50/50 joint venture named SiliconAuto, to design and sell semiconductors for the automotive industry, including Stellantis, starting in 2026.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has pulled out of a $19.5 billion semiconductor joint venture deal with Indian conglomerate Vedanta. The JV project to produce semiconductor and display components in Gujrat, the home state of Indian Prime Minister Narendra Modi, was signed in September last year. The Vedanta-Foxconn joint venture project, which aimed to start manufacturing display and chip products within two years, was also expected to create more than 100,000 jobs in Gujarat.
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(RTTNews) - Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has pulled out of a $19.5 billion semiconductor joint venture deal with Indian conglomerate Vedanta. While announcing the deal last year, Foxconn and Vedanta had agreed to invest nearly $20 billion in Gujrat to set up semiconductor and display production plants. Vedanta had agreed to setup a display manufacturing unit with an investment of $11.95 billion and separate chip-related production units by investing $7.58 billion.
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(RTTNews) - Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has pulled out of a $19.5 billion semiconductor joint venture deal with Indian conglomerate Vedanta. While announcing the deal last year, Foxconn and Vedanta had agreed to invest nearly $20 billion in Gujrat to set up semiconductor and display production plants. In late June, Foxconn and automotive company Stellantis N.V. said they have formed a 50/50 joint venture named SiliconAuto, to design and sell semiconductors for the automotive industry, including Stellantis, starting in 2026.
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Meanwhile, Foxconn said it remained confident about India's semiconductor ambitions and is in talks with several Indian and international partners to move forward with the plans to make semiconductors in the country. While announcing the deal last year, Foxconn and Vedanta had agreed to invest nearly $20 billion in Gujrat to set up semiconductor and display production plants. According to reports, the company was also considering setting up an EV manufacturing plant in India.
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14940.0
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2023-07-11 00:00:00 UTC
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Apple Store goes live on WeChat mini programme
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AAPL
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https://www.nasdaq.com/articles/apple-store-goes-live-on-wechat-mini-programme
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nan
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nan
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BEIJING, July 11 (Reuters) - Apple Store's official online store went live on Tencent's WeChat mini programme on Tuesday, according to the Chinese messaging platform.
Users can buy Apple products including iPhone 14, iPad and Mac on WeChat, the announcement read.
(Reporting by Beijing Newsroom; Editing by Jacqueline Wong)
((qiaoyi.li@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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BEIJING, July 11 (Reuters) - Apple Store's official online store went live on Tencent's WeChat mini programme on Tuesday, according to the Chinese messaging platform. Users can buy Apple products including iPhone 14, iPad and Mac on WeChat, the announcement read. (Reporting by Beijing Newsroom; Editing by Jacqueline Wong) ((qiaoyi.li@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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BEIJING, July 11 (Reuters) - Apple Store's official online store went live on Tencent's WeChat mini programme on Tuesday, according to the Chinese messaging platform. Users can buy Apple products including iPhone 14, iPad and Mac on WeChat, the announcement read. (Reporting by Beijing Newsroom; Editing by Jacqueline Wong) ((qiaoyi.li@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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BEIJING, July 11 (Reuters) - Apple Store's official online store went live on Tencent's WeChat mini programme on Tuesday, according to the Chinese messaging platform. Users can buy Apple products including iPhone 14, iPad and Mac on WeChat, the announcement read. (Reporting by Beijing Newsroom; Editing by Jacqueline Wong) ((qiaoyi.li@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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BEIJING, July 11 (Reuters) - Apple Store's official online store went live on Tencent's WeChat mini programme on Tuesday, according to the Chinese messaging platform. Users can buy Apple products including iPhone 14, iPad and Mac on WeChat, the announcement read. (Reporting by Beijing Newsroom; Editing by Jacqueline Wong) ((qiaoyi.li@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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14941.0
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2023-07-11 00:00:00 UTC
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Should iShares S&P 500 Growth ETF (IVW) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-500-growth-etf-ivw-be-on-your-investing-radar-8
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nan
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nan
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Launched on 05/22/2000, the iShares S&P 500 Growth ETF (IVW) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $32.79 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
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.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. 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
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 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.90%.
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 36.80% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.42% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 42.47% of total assets under management.
Performance and Risk
IVW seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large capitalization growth sector of the U.S. equity market.
The ETF has added roughly 19.48% so far this year and it's up approximately 10.69% in the last one year (as of 07/11/2023). In the past 52-week period, it has traded between $56.73 and $71.43.
The ETF has a beta of 1.05 and standard deviation of 22.44% for the trailing three-year period, making it a medium risk choice in the space. With about 235 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 500 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, IVW is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $91.74 billion in assets, Invesco QQQ has $201.24 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
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.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares S&P 500 Growth ETF (IVW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.42% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : 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 $32.79 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.42% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : 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. 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.
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Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.42% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Launched on 05/22/2000, the iShares S&P 500 Growth ETF (IVW) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.42% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : 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. 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.
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14942.0
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2023-07-11 00:00:00 UTC
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Should SPDR MSCI USA StrategicFactors ETF (QUS) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-msci-usa-strategicfactors-etf-qus-be-on-your-investing-radar-8
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nan
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nan
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Launched on 04/15/2015, the SPDR MSCI USA StrategicFactors ETF (QUS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $972.68 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.61%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 24.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META).
The top 10 holdings account for about 22.14% of total assets under management.
Performance and Risk
QUS seeks to match the performance of the MSCI USA Factor Mix A-Series Index before fees and expenses. The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
The ETF return is roughly 11.28% so far this year and is up about 11.80% in the last one year (as of 07/11/2023). In the past 52-week period, it has traded between $101.25 and $123.02.
The ETF has a beta of 0.91 and standard deviation of 16.24% for the trailing three-year period, making it a medium risk choice in the space. With about 627 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR MSCI USA StrategicFactors ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QUS is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $334.02 billion in assets, SPDR S&P 500 ETF has $415.84 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
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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Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Launched on 04/15/2015, the SPDR MSCI USA StrategicFactors ETF (QUS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Alternatives SPDR MSCI USA StrategicFactors ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing.
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14943.0
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2023-07-11 00:00:00 UTC
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Apple opens store on China's WeChat platform
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AAPL
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https://www.nasdaq.com/articles/apple-opens-store-on-chinas-wechat-platform
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nan
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nan
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Recasts, adds background on Apple's China business
BEIJING, July 11 (Reuters) - Tencent's 0700.HK WeChat said on Tuesday that iPhone maker Apple AAPL.O had opened a store on its social media platform, marking an expansion of the U.S. firm's retail channels in the world's second largest economy.
The announcement by WeChat, China's dominant messaging app which also provides e-commerce, livestreaming and payment services, said users would be able to buy Apple products including iPhones, iPads and Macs from the store.
Apple and Tencent did not immediately respond to requests for further comment.
The move by Apple comes as Chinese consumers increasingly turn to social media platforms such as WeChat and ByteDance's Douyin, the Chinese version of TikTok, to shop.
Besides its own stores and website, Apple already operates a shop on Alibaba Group's 9988.HK Tmall online marketplace. Apple also tried marketing its products on a livestream in China for the first time in May with an hour-long show.
China's smartphone sales in the first quarter fell 5% year on year, marking the lowest first-quarter sales figure for the country since 2014, according to data from Counterpoint Research.
However, during the quarter Apple recorded a 19.9% share of the Chinese smartphone market - its biggest since 2014 - as it increased sales by 6% year-on-year in a declining market, the research firm said.
(Reporting by Beijing Newsroom, Sophie Yu and Brenda Goh; Editing by Jacqueline Wong and Jamie Freed)
((qiaoyi.li@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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Recasts, adds background on Apple's China business BEIJING, July 11 (Reuters) - Tencent's 0700.HK WeChat said on Tuesday that iPhone maker Apple AAPL.O had opened a store on its social media platform, marking an expansion of the U.S. firm's retail channels in the world's second largest economy. The announcement by WeChat, China's dominant messaging app which also provides e-commerce, livestreaming and payment services, said users would be able to buy Apple products including iPhones, iPads and Macs from the store. Besides its own stores and website, Apple already operates a shop on Alibaba Group's 9988.HK Tmall online marketplace.
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Recasts, adds background on Apple's China business BEIJING, July 11 (Reuters) - Tencent's 0700.HK WeChat said on Tuesday that iPhone maker Apple AAPL.O had opened a store on its social media platform, marking an expansion of the U.S. firm's retail channels in the world's second largest economy. The move by Apple comes as Chinese consumers increasingly turn to social media platforms such as WeChat and ByteDance's Douyin, the Chinese version of TikTok, to shop. China's smartphone sales in the first quarter fell 5% year on year, marking the lowest first-quarter sales figure for the country since 2014, according to data from Counterpoint Research.
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Recasts, adds background on Apple's China business BEIJING, July 11 (Reuters) - Tencent's 0700.HK WeChat said on Tuesday that iPhone maker Apple AAPL.O had opened a store on its social media platform, marking an expansion of the U.S. firm's retail channels in the world's second largest economy. The announcement by WeChat, China's dominant messaging app which also provides e-commerce, livestreaming and payment services, said users would be able to buy Apple products including iPhones, iPads and Macs from the store. However, during the quarter Apple recorded a 19.9% share of the Chinese smartphone market - its biggest since 2014 - as it increased sales by 6% year-on-year in a declining market, the research firm said.
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Recasts, adds background on Apple's China business BEIJING, July 11 (Reuters) - Tencent's 0700.HK WeChat said on Tuesday that iPhone maker Apple AAPL.O had opened a store on its social media platform, marking an expansion of the U.S. firm's retail channels in the world's second largest economy. The move by Apple comes as Chinese consumers increasingly turn to social media platforms such as WeChat and ByteDance's Douyin, the Chinese version of TikTok, to shop. Apple also tried marketing its products on a livestream in China for the first time in May with an hour-long show.
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14944.0
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2023-07-10 00:00:00 UTC
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EU seals new US data transfer pact but challenge ahead
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AAPL
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https://www.nasdaq.com/articles/eu-seals-new-us-data-transfer-pact-but-challenge-ahead
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nan
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nan
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By Foo Yun Chee
BRUSSELS, July 10 (Reuters) - The European Commission announced a new data transfer pact with the United States on Monday, seeking to end the legal uncertainty plaguing thousands of companies which transfer personal data across the Atlantic.
However, the move was immediately criticised by non-profit group noyb, led by privacy activist Max Schrems, which said it would challenge the agreement.
The Commission and the United States had been struggling to reach a new agreement after Europe's top court annulled two previous pacts that underpinned the transfer of personal data across the Atlantic for services ranging from cloud infrastructure to payroll and banking.
The EU executive said measures taken by the United States ensured an adequate level of protection for Europeans' personal data transferred across the Atlantic for commercial use.
It said new binding safeguards, such as that limiting U.S. intelligence services' access to EU data to what is "necessary and proportionate" and the setting up of a Data Protection Review Court for Europeans, address the concerns raised by Europe's top court.
EU justice chief Didier Reynders said he was confident of fending off any legal challenge.
"The principles of the data privacy framework are solid and I am convinced that we have made significant progress which meets the requirements of the European Court of Justice case law," he told a news conference.
"I am very confident of fighting, defending the new data agreement."
Schrems said the latest revision was inadequate.
"Just announcing that something is 'new', 'robust' or 'effective' does not cut it before the Court of Justice. We would need changes in U.S. surveillance law to make this work," he said in a statement.
"We have various options for a challenge already in the drawer, although we are sick and tired of this legal ping-pong. We currently expect this to be back at the Court of Justice by the beginning of next year," Schrems added.
Lobbying group DigitalEurope, whose members include Airbus AIR.PA, Amazon AMZN.O, Apple AAPL.O, Ericsson ERICb.ST, Nokia NOKIA.HE, Philips PHG.AS and Samsung 005930.KS welcomed the deal.
"Data flows underpin the EU's annual 1 trillion euros of service exports to the United States, and this decision will give companies more confidence to conduct business and help our economies to grow," its Director-General Cecilia Bonefeld-Dahl said.
Earlier this year, EU privacy watchdog the European Data Protection Board said the latest data agreement still fell short and urged the Commission to do more to protect Europeans' privacy rights.
Europe's top court scuppered the previous two deals after challenges by Schrems because of concerns about U.S. intelligence agencies accessing European citizens' private data.
(Reporting by Foo Yun Chee; editing by Philip Blenkinsop and Christina Fincher)
((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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Lobbying group DigitalEurope, whose members include Airbus AIR.PA, Amazon AMZN.O, Apple AAPL.O, Ericsson ERICb.ST, Nokia NOKIA.HE, Philips PHG.AS and Samsung 005930.KS welcomed the deal. The Commission and the United States had been struggling to reach a new agreement after Europe's top court annulled two previous pacts that underpinned the transfer of personal data across the Atlantic for services ranging from cloud infrastructure to payroll and banking. "The principles of the data privacy framework are solid and I am convinced that we have made significant progress which meets the requirements of the European Court of Justice case law," he told a news conference.
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Lobbying group DigitalEurope, whose members include Airbus AIR.PA, Amazon AMZN.O, Apple AAPL.O, Ericsson ERICb.ST, Nokia NOKIA.HE, Philips PHG.AS and Samsung 005930.KS welcomed the deal. By Foo Yun Chee BRUSSELS, July 10 (Reuters) - The European Commission announced a new data transfer pact with the United States on Monday, seeking to end the legal uncertainty plaguing thousands of companies which transfer personal data across the Atlantic. The Commission and the United States had been struggling to reach a new agreement after Europe's top court annulled two previous pacts that underpinned the transfer of personal data across the Atlantic for services ranging from cloud infrastructure to payroll and banking.
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Lobbying group DigitalEurope, whose members include Airbus AIR.PA, Amazon AMZN.O, Apple AAPL.O, Ericsson ERICb.ST, Nokia NOKIA.HE, Philips PHG.AS and Samsung 005930.KS welcomed the deal. By Foo Yun Chee BRUSSELS, July 10 (Reuters) - The European Commission announced a new data transfer pact with the United States on Monday, seeking to end the legal uncertainty plaguing thousands of companies which transfer personal data across the Atlantic. It said new binding safeguards, such as that limiting U.S. intelligence services' access to EU data to what is "necessary and proportionate" and the setting up of a Data Protection Review Court for Europeans, address the concerns raised by Europe's top court.
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Lobbying group DigitalEurope, whose members include Airbus AIR.PA, Amazon AMZN.O, Apple AAPL.O, Ericsson ERICb.ST, Nokia NOKIA.HE, Philips PHG.AS and Samsung 005930.KS welcomed the deal. By Foo Yun Chee BRUSSELS, July 10 (Reuters) - The European Commission announced a new data transfer pact with the United States on Monday, seeking to end the legal uncertainty plaguing thousands of companies which transfer personal data across the Atlantic. The Commission and the United States had been struggling to reach a new agreement after Europe's top court annulled two previous pacts that underpinned the transfer of personal data across the Atlantic for services ranging from cloud infrastructure to payroll and banking.
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14945.0
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2023-07-10 00:00:00 UTC
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EV Stocks: Here’s Where to Invest $1,000 Right Now
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AAPL
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https://www.nasdaq.com/articles/ev-stocks%3A-heres-where-to-invest-%241000-right-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s no secret that the past couple of years have brought volatile, less-than-ideal financial conditions for many corporations. As we continue to move toward a post-pandemic state of recovery, any signal of economic normalcy stands as a symbol of hope and optimism for better times ahead. One of such signal appeared on June 30, as many major indexes finished the first half of the year on a positive note.
Most notably, all eleven sectors of the S&P had favorable closings as Apple (NASDAQ:AAPL) stock reached a historic $3 trillion market cap. The Dow Jones saw gains, growing about 4.6% over this period (the best since last November). Ultimately, this strong half-year finish can provide promise to investors who have experienced a shaky past as we transition into the second half of 2023.
A similar upbeat performance is possible to be seen across all sectors, and these three EV stocks are among the best options to buy right now.
Rivian Automotive (RIVN)
Source: Michael Vi / Shutterstock
Rivian Automotive (NASDAQ:RIVN) is an electric vehicle producer focused on light duty trucks. Despite RIVN stock decreasing -3.92% year-to-date, Rivian is still operating with excellent financials. In Q1, more than 9,000 vehicles were produced, and almost 8,000 of them were delivered. This resulted in a Q1 revenue of $661 million, representing a 595.8% year-over-year increase. Notably, Q1 non-GAAP earnings per share came in at -$1.25, which beat consensus by $0.34.
Rivian’s biggest growth catalyst is the implementation of its new technologies. Specifically, I’m focused on the Enduro drive units and LFP battery packs.
Rivian’s Enduro production line is the company’s first use of an internally-developed plant software platform. This platform aids in the rapid bring-up of equipment. Using this platform will give Rivian greater control over its equipment, allowing Enduro to provide material cost improvements. As a reference, the implementation of Enduro and LFP battery packs into the Rivian EDV during Q1 reduced the EDV bill of materials by 25%. This implementation, which is expected to expand into the Rivian R1 during Q2, as well as the R2 coming out in 2026, will furt reduce costs and assist in the company’s goal of achieving profitability sooner than later.
Yahoo Finances reports 20 analysts covering this stock. Currently, RIVN stock carries a mean analyst price target of $22.85, spanning from $11.00 to $40.00. Many notable firms have assigned Rivian a “buy” rating, with no downgrades in sight. The company’s focus on cost reductions as well as its vertically integrated business model serves as a unique competitive advantage for Rivian. Thus, I’m confident this is a stock that can continue growing, alongside the EV industry.
Stellantis N.V. (STLA)
Source: Antonello Marangi / Shutterstock.com
Stellantis N.V. (NYSE:STLA) is an international automotive manufacturing corporation that designs, develops, manufactures, and sells automobiles for over 16 different automobile brands.
Stellantis boasts strong financials, with revenue growing at a 40.6% compounded annual growth rate this past year. For Q1 2023, revenue was at $52.5 billion, beating out analyst expectations by $2.45 billion. Dividend growth for the company has grown 28.8% year-over-year, and cash from operations totaled an astounding $21.37B over the trailing twelve months. This is over 100-times greater than the sector median, and a great indicator of Stellantis’ profitability.
Stellantis is currently developing two batteries for its EVs. The first is a nickel cobalt-free alternative battery which will have a lower production cost and lighter weight. The second is a nickel-based battery with a higher average charge capacity than the cobalt-free alternative and lithium-ion cells. Both batteries will have a high level of synergy, sharing components and production processes to further lower production costs.
Additionally, Stellanntis has bought a 19.99% stake in Kuniko, a Norwegian commodities company that specializes in mining low-carbon nickel and cobalt sulfate, which will be essential for Stellantis to produce its batteries in the future. Stellantis is also launching free2move, a charging company designed to meet customers’ charging needs at home or on the go. With the mandated standardization of charging ports for all EVs in North America, this will definitely be an opportunity for Stellantis to drive revenue growth, utilizing a wider customer base.
Lastly, STLA stock is up 23.5% year-to-date, and 10 analysts have predicted an average predicted 12-month upside of 30.29%. Its healthy financials, commitment to electrification, R&D battery developments, and investments in the growing EV market are all reasons to buy this stock.
First Solar (FSLR)
Source: IgorGolovniov / Shutterstock.com
First Solar Incorporated (NASDAQ:FSLR) is a global leader in providing photovoltaic solar energy solutions, specializing in the design, manufacturing, and sale of cadmium telluride solar modules for converting sunlight into electricity, serving customers worldwide.
The global photovoltaics market is poised for strong growth. Currently, it is valued at $93.15 billion in 2022, with forecasts for this sector to grow at a 10.1% compounded annual growth rate to $243.81 billion by 2032. The growth of the photovoltaic industry is driven by many factors. One notable factor to consider is favorable government policies encouraging the adoption of solar. Another is derived from utility-driven large-scale solar installations. And finally, there’s plenty of demand for residential solar PV systems as well.
First Solar has been experiencing robust growth, with forward revenue growth of 16.30% expected by analysts. Moreover, in FY 2023, First Solar demonstrated outstanding operational performance. Notably, the company has achieved an impressive 5-year average operating cash flow growth of 62.26%. This comes in significantly higher than the sector average of 11.10%, and makes this a stock to buy in my view.
FSLR stock presents itself as an enticing investment opportunity. This is a company that’s displayed impressive financial performance and surpassed its competitors in many metrics. But it’s also a company that’s shown a commitment to innovate with its unique photovoltaic technologies. All in all, this is a company that promises a sustainable and efficient future, and I like that.
On the date of publication, Michael Que 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.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga, and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments
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The post EV Stocks: Here’s Where to Invest $1,000 Right Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most notably, all eleven sectors of the S&P had favorable closings as Apple (NASDAQ:AAPL) stock reached a historic $3 trillion market cap. Additionally, Stellanntis has bought a 19.99% stake in Kuniko, a Norwegian commodities company that specializes in mining low-carbon nickel and cobalt sulfate, which will be essential for Stellantis to produce its batteries in the future. With the mandated standardization of charging ports for all EVs in North America, this will definitely be an opportunity for Stellantis to drive revenue growth, utilizing a wider customer base.
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Most notably, all eleven sectors of the S&P had favorable closings as Apple (NASDAQ:AAPL) stock reached a historic $3 trillion market cap. Rivian Automotive (RIVN) Source: Michael Vi / Shutterstock Rivian Automotive (NASDAQ:RIVN) is an electric vehicle producer focused on light duty trucks. Stellantis boasts strong financials, with revenue growing at a 40.6% compounded annual growth rate this past year.
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Most notably, all eleven sectors of the S&P had favorable closings as Apple (NASDAQ:AAPL) stock reached a historic $3 trillion market cap. Rivian Automotive (RIVN) Source: Michael Vi / Shutterstock Rivian Automotive (NASDAQ:RIVN) is an electric vehicle producer focused on light duty trucks. Its healthy financials, commitment to electrification, R&D battery developments, and investments in the growing EV market are all reasons to buy this stock.
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Most notably, all eleven sectors of the S&P had favorable closings as Apple (NASDAQ:AAPL) stock reached a historic $3 trillion market cap. Stellantis boasts strong financials, with revenue growing at a 40.6% compounded annual growth rate this past year. Its healthy financials, commitment to electrification, R&D battery developments, and investments in the growing EV market are all reasons to buy this stock.
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14946.0
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2023-07-10 00:00:00 UTC
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Foxconn dumps $19.5 bln Vedanta chip plan in blow to India
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AAPL
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https://www.nasdaq.com/articles/foxconn-dumps-%2419.5-bln-vedanta-chip-plan-in-blow-to-india
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nan
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nan
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By Ben Blanchard, Munsif Vengattil and Aditya Kalra
TAIPEI/BENGALURU, July 10 (Reuters) - Taiwan's Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta, it said on Monday, in a setback to Prime Minister Narendra Modi's chipmaking plans for India.
The world's largest contract electronics maker signed a pact with Vedanta last year to set up semiconductor and display production plants in Modi's home state of Gujarat.
"Foxconn 2354.TW has determined it will not move forward on the joint venture with Vedanta," a Foxconn statement said without elaborating on the reasons.
The company said it had worked with Vedanta for more than a year to bring "a great semiconductor idea to reality", but they had mutually decided to end the joint venture and it will remove its name from an entity that is now fully owned by Vedanta.
Vedanta said it is fully committed to its semiconductor project and had "lined up other partners to set up India’s first foundry". "Vedanta has redoubled its efforts" to fulfil Modi's vision, it added in a statement.
A source familiar with the matter said concerns about incentive approval delays by India's government had contributed to Foxconn's decision to pull out of the venture. New Delhi had also raised several questions on the cost estimates provided to request incentives from the government, the source added.
Modi has made chipmaking a top priority for India's economic strategy in pursuit of a "new era" in electronics manufacturing and Foxconn's move represents a blow to his ambitions of luring foreign investors to make chips locally for the first time.
“This deal falling through is definitely a setback for the ‘Make in India’ push,” said Neil Shah, Vice President of research at Counterpoint, adding that it also does not reflect well on Vedanta and "raises eyebrows and doubts for other companies".
Deputy IT minister Rajeev Chandrasekhar said Foxconn's decision had "no impact" on India's plans, adding that both companies were "valued investors" in the country.
He said it was not for the government to "get into why or how two private companies choose to partner or choose not to".
'IMPORTANT STEP'
Foxconn is best known for assembling iPhones and other Apple AAPL.O products but in recent years it has been expanding into chips to diversify its business.
Most of the world's chip output is limited to a few countries, such as Taiwan, with India a late entrant. The Vedanta-Foxconn venture announced its chipmaking plans in Gujarat last September, with Modi calling the project "an important step" in boosting India's chipmaking ambitions.
But his plan had been slow to take off. Among other problems encountered by the Vedanta-Foxconn project were deadlocked talks to involve European chipmaker STMicroelectronics STMPA.PA as a tech partner, Reuters has previously reported.
While Vedanta-Foxconn managed to get STMicro on board for licensing technology, India's government had made clear it wanted the European company to have more "skin in the game", such as a stake in the partnership.
STMicro was not keen on that and the talks remained in limbo, a source has said.
The Indian government has said it remains confident of attracting investors for chipmaking. Micron last month said it will invest up to $825 million in a chip testing and packaging unit, not for manufacturing. With support from India's federal government and the state of Gujarat, the total investment will be $2.75 billion.
India, which expects its semiconductor market to be worth $63 billion by 2026, last year received three applications to set up plants under a $10 billion incentive scheme.
These were from the Vedanta-Foxconn joint venture, Singapore-based IGSS Ventures and global consortium ISMC, which counts Tower Semiconductor TSEM.TA as a tech partner.
The $3 billion ISMC project has stalled, too, owing to Tower being acquired by Intel, while another $3 billion plan by IGSS was also halted because it wanted to re-submit its application.
India has re-invited applications for the incentive scheme from companies.
Timeline: Foxconn withdraws from Vedanta chip plan in India https://reut.rs/3XQDHzu
Modi's chip making plan flounders as firms struggle to find tech partners https://reut.rs/3NO0hns
(Reporting by Munsif Vengattil in Bengaluru, Ben Blanchard in Taipei, Aditya Kalra in New Delhi; Additional reporting by Rishika Sadam; Editing by David Goodman and Alexander Smith)
((munsif.vengattil@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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Foxconn is best known for assembling iPhones and other Apple AAPL.O products but in recent years it has been expanding into chips to diversify its business. By Ben Blanchard, Munsif Vengattil and Aditya Kalra TAIPEI/BENGALURU, July 10 (Reuters) - Taiwan's Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta, it said on Monday, in a setback to Prime Minister Narendra Modi's chipmaking plans for India. Modi has made chipmaking a top priority for India's economic strategy in pursuit of a "new era" in electronics manufacturing and Foxconn's move represents a blow to his ambitions of luring foreign investors to make chips locally for the first time.
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Foxconn is best known for assembling iPhones and other Apple AAPL.O products but in recent years it has been expanding into chips to diversify its business. By Ben Blanchard, Munsif Vengattil and Aditya Kalra TAIPEI/BENGALURU, July 10 (Reuters) - Taiwan's Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta, it said on Monday, in a setback to Prime Minister Narendra Modi's chipmaking plans for India. These were from the Vedanta-Foxconn joint venture, Singapore-based IGSS Ventures and global consortium ISMC, which counts Tower Semiconductor TSEM.TA as a tech partner.
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Foxconn is best known for assembling iPhones and other Apple AAPL.O products but in recent years it has been expanding into chips to diversify its business. By Ben Blanchard, Munsif Vengattil and Aditya Kalra TAIPEI/BENGALURU, July 10 (Reuters) - Taiwan's Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta, it said on Monday, in a setback to Prime Minister Narendra Modi's chipmaking plans for India. The Vedanta-Foxconn venture announced its chipmaking plans in Gujarat last September, with Modi calling the project "an important step" in boosting India's chipmaking ambitions.
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Foxconn is best known for assembling iPhones and other Apple AAPL.O products but in recent years it has been expanding into chips to diversify its business. By Ben Blanchard, Munsif Vengattil and Aditya Kalra TAIPEI/BENGALURU, July 10 (Reuters) - Taiwan's Foxconn has withdrawn from a $19.5 billion semiconductor joint venture with Indian metals-to-oil conglomerate Vedanta, it said on Monday, in a setback to Prime Minister Narendra Modi's chipmaking plans for India. "Foxconn 2354.TW has determined it will not move forward on the joint venture with Vedanta," a Foxconn statement said without elaborating on the reasons.
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14947.0
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2023-07-10 00:00:00 UTC
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SMH, XLK Deliver Dramatic Returns in 2023
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AAPL
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https://www.nasdaq.com/articles/smh-xlk-deliver-dramatic-returns-in-2023
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nan
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nan
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Technology and semiconductor ETFs have been generating a lot of buzz among investors and advisors this year. Considering the importance of technology to the global economy, especially as digitization and automation continue to ramp up, funds capturing the space are likely to see sustained interest from investors.
However, many investors are uncertain about which ETFs to invest in and how they should access these slices of the markets. Should they adopt a broad approach or opt for a more granular strategy? In this article, we will explore the performance and characteristics of key ETFs representing the semiconductor and technology categories, respectively, using advanced data analytics tools provided by LOGICLY.
SMH & XLK in Focus
The VanEck Semiconductor ETF (SMH) offers investors a way to track the performance of U.S.-listed businesses involved in the production of semiconductors. With an inception date of December 20, 2011, the fund has an established track record. The fund has a substantial $9.0 billion in AUM, making it the largest ETF to focus on the semiconductor industry. SMH also comes with an expense ratio of 0.35%, in the middle of the range for its peers.
The fund's top holdings include NVIDIA Corporation (19.36%), Taiwan Semiconductor Manufacturing Co. (11.42%), Broadcom Inc. (5.28%), and ASML Holding NV ADR (5.05%). In all, the fund's underlying index includes 25 securities.
See more: “PBE Offers Exposure to Surging Catalent Stock”
The Technology Select Sector SPDR Fund (XLK), which launched on December 16, 1998, has a broader sector-wide focus and offers investors the opportunity to gain exposure to several tech powerhouses. The fund has $49.1 billion in AUM -- it's among the 50 largest U.S.-listed ETFs and ranks as the second-largest technology ETF.
XLK's top holdings among the 66 securities in its portfolio include Apple Inc. (23.47%), Microsoft Corporation (23.12%), NVIDIA Corporation (4.70%), and Broadcom Inc. (4.31%). With a 0.10% expense ratio, the fund costs less than the majority of its peers.
10-Year Performance Comparison of the Funds
[caption id="attachment_526152" align="aligncenter" width="625"] SMH and XLK 10-Year Performance based on data from LOGICLY.[/caption]
With the assistance of LOGICLY's charting tools, we can examine the 10-year performance difference between these two funds. SMH and XLK displayed relatively similar performance, closely tracking each other, until 2016. That's when the trendlines on the performance graph start to noticeably diverge. However, that gap widened even more rapidly in the wake of the 2020 market crash sparked by the pandemic.
The COVID-19 pandemic highlighted the importance of technology for the global economy, but even more so, it highlighted how increasingly vital semiconductors are to that technology. The semiconductor shortage sparked mainly by pandemic-related supply chain issues was perhaps most visibly disruptive to the automobile industry but also saw its effects leave a mark on the communications, aerospace, and defense industries, among others.
From July 2013 to July 2023, SMH returned 775.53%, while XLK trailed with a return of 535.34%.
See more: “Multi-Factor ETF OMFL Outpaces Benchmarks YTD”
Recent Performance
While the cumulative performance over the past 10 years provides an overview for investors, both funds have done very well year-to-date. XLK is up 38.18% a little more than halfway through the year, so the broad technology sector is doing pretty well compared to the SPDR S&P 500 ETF Trust (SPY), which is up 15.54% year-to-date. However, semiconductors are key drivers of XLK's performance, and SMH is up 46.89%, significantly more than SPY or even XLK.
A lot of that can be attributed to the performance of NVIDIA Corporation, which represents nearly 20% of SMH's portfolio and is up more than 190% year-to-date. XLK also offers exposure to NVIDIA, but with a weight of less than 5% in the stock, it has not benefited as much.
For an investor looking to gain broad exposure to large-cap stocks in the technology sector, XLK is likely a perfectly acceptable investment. Keep in mind that it provides exposure to the largest players in the semiconductor industry under its broad technology mandate, so investors in that fund aren't missing out entirely on the semiconductor boom. However, investors who want to get exposure to the vital components that power the technology sector may want to consider a dedicated fund like SMH.
For more news, information, and analysis, visit the Beyond Basic Beta 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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Considering the importance of technology to the global economy, especially as digitization and automation continue to ramp up, funds capturing the space are likely to see sustained interest from investors. In this article, we will explore the performance and characteristics of key ETFs representing the semiconductor and technology categories, respectively, using advanced data analytics tools provided by LOGICLY. XLK is up 38.18% a little more than halfway through the year, so the broad technology sector is doing pretty well compared to the SPDR S&P 500 ETF Trust (SPY), which is up 15.54% year-to-date.
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SMH & XLK in Focus The VanEck Semiconductor ETF (SMH) offers investors a way to track the performance of U.S.-listed businesses involved in the production of semiconductors. The fund's top holdings include NVIDIA Corporation (19.36%), Taiwan Semiconductor Manufacturing Co. (11.42%), Broadcom Inc. (5.28%), and ASML Holding NV ADR (5.05%). XLK's top holdings among the 66 securities in its portfolio include Apple Inc. (23.47%), Microsoft Corporation (23.12%), NVIDIA Corporation (4.70%), and Broadcom Inc. (4.31%).
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SMH & XLK in Focus The VanEck Semiconductor ETF (SMH) offers investors a way to track the performance of U.S.-listed businesses involved in the production of semiconductors. See more: “PBE Offers Exposure to Surging Catalent Stock” The Technology Select Sector SPDR Fund (XLK), which launched on December 16, 1998, has a broader sector-wide focus and offers investors the opportunity to gain exposure to several tech powerhouses. Keep in mind that it provides exposure to the largest players in the semiconductor industry under its broad technology mandate, so investors in that fund aren't missing out entirely on the semiconductor boom.
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SMH & XLK in Focus The VanEck Semiconductor ETF (SMH) offers investors a way to track the performance of U.S.-listed businesses involved in the production of semiconductors. For an investor looking to gain broad exposure to large-cap stocks in the technology sector, XLK is likely a perfectly acceptable investment. Keep in mind that it provides exposure to the largest players in the semiconductor industry under its broad technology mandate, so investors in that fund aren't missing out entirely on the semiconductor boom.
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14948.0
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2023-07-10 00:00:00 UTC
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Market heavyweights dip ahead of Nasdaq 100 rebalance
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AAPL
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https://www.nasdaq.com/articles/market-heavyweights-dip-ahead-of-nasdaq-100-rebalance
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nan
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nan
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July 10 (Reuters) - Shares of Apple AAPL.O, Microsoft MSFT.O and other heavyweight companies dipped on Monday after Nasdaq Inc NDAQ.O said it would rebalance its Nasdaq 100 index .NDX to address the benchmark's "overconcentration."
Apple dropped 1.1%, leaving its market capitalization at $2.967 trillion. Itclosed above the $3 trillion threshold for the first time on June 30. Alphabet GOOGL.O and Amazon AMZN.O fell over 2%, while Microsoft and Tesla TSLA.O each slid more than 1%.
Wall Street's most valuable stocks declined after Nasdaq said late on Friday it would carry out a "Special Rebalance" of the index to "address overconcentration in the index by redistributing the weights."
The adjustment will be based on shares outstanding as of July 3, with changes announced on July 14 and taking effect before the market opens on July 24.
The Nasdaq 100 includes 100 of the largest companies that trade on the Nasdaq exchange, and changes to the index will force investment funds that track it to adjust their portfolios and sell shares of companies that have their weight in the index reduced.
Wall Street's most valuable companies have been among the biggest winners in the U.S. stock market's recovery this year, further increasing their weight in the Nasdaq 100, and also in the Nasdaq Composite .IXIC and S&P 500 .SPX.
While the S&P 500 has gained 15% year to date, Nvidia NVDA.O has surged 189% and Tesla has more than doubled. Microsoft, Amazon and Apple have climbed between 38% and 51% in 2023.
(Reporting by Noel Randewich; Editing by Richard Chang)
((noel.randewich@tr.com; Twitter: @randewich;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 10 (Reuters) - Shares of Apple AAPL.O, Microsoft MSFT.O and other heavyweight companies dipped on Monday after Nasdaq Inc NDAQ.O said it would rebalance its Nasdaq 100 index .NDX to address the benchmark's "overconcentration." The Nasdaq 100 includes 100 of the largest companies that trade on the Nasdaq exchange, and changes to the index will force investment funds that track it to adjust their portfolios and sell shares of companies that have their weight in the index reduced. While the S&P 500 has gained 15% year to date, Nvidia NVDA.O has surged 189% and Tesla has more than doubled.
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July 10 (Reuters) - Shares of Apple AAPL.O, Microsoft MSFT.O and other heavyweight companies dipped on Monday after Nasdaq Inc NDAQ.O said it would rebalance its Nasdaq 100 index .NDX to address the benchmark's "overconcentration." Wall Street's most valuable stocks declined after Nasdaq said late on Friday it would carry out a "Special Rebalance" of the index to "address overconcentration in the index by redistributing the weights." Wall Street's most valuable companies have been among the biggest winners in the U.S. stock market's recovery this year, further increasing their weight in the Nasdaq 100, and also in the Nasdaq Composite .IXIC and S&P 500 .SPX.
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July 10 (Reuters) - Shares of Apple AAPL.O, Microsoft MSFT.O and other heavyweight companies dipped on Monday after Nasdaq Inc NDAQ.O said it would rebalance its Nasdaq 100 index .NDX to address the benchmark's "overconcentration." The Nasdaq 100 includes 100 of the largest companies that trade on the Nasdaq exchange, and changes to the index will force investment funds that track it to adjust their portfolios and sell shares of companies that have their weight in the index reduced. Wall Street's most valuable companies have been among the biggest winners in the U.S. stock market's recovery this year, further increasing their weight in the Nasdaq 100, and also in the Nasdaq Composite .IXIC and S&P 500 .SPX.
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July 10 (Reuters) - Shares of Apple AAPL.O, Microsoft MSFT.O and other heavyweight companies dipped on Monday after Nasdaq Inc NDAQ.O said it would rebalance its Nasdaq 100 index .NDX to address the benchmark's "overconcentration." Apple dropped 1.1%, leaving its market capitalization at $2.967 trillion. Microsoft, Amazon and Apple have climbed between 38% and 51% in 2023.
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14949.0
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2023-07-10 00:00:00 UTC
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Rivian options buyers may be helping drive stock higher
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AAPL
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https://www.nasdaq.com/articles/rivian-options-buyers-may-be-helping-drive-stock-higher
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nan
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nan
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By Saqib Iqbal Ahmed
NEW YORK, July 10 (Reuters) - Investors are piling into bullish options bets on the shares of Rivian Automotive RIVN.O, with some market participants saying the buying has helped the electric vehicle (EV) maker's stock notch a record nine-day winning streak.
Rivian shares, which took off last week after the company reported better-than-expected quarterly vehicle deliveries, have risen 83% over the last eight trading sessions. Some 831,000 Rivian options contracts traded on Monday, or two times its average daily volume.
Much of the options trading has consisted of investors buying "super short-dated calls," said Daniel Kirsch, head of options at Piper Sandler, adding that the options activity had helped drive Rivian's shares higher.
Large purchases of out-of-the-money call options - contracts that are not profitable but stand to gain in value as the stock climbs - can sometimes give an additional lift to a stock's price.
Such a phenomenon - sometimes called a gamma squeeze - occurs when market makers who sold the call options hedge their risk by buying the underlying stock, helping push the share price higher as a result. The phenomenon has occurred with shares of various companies popular with options buyers over the last few years, from AMC to Tesla.
"It reminds me a lot of what people would do with Tesla when it was going up every day ... buying the shortest dated out-of-the money calls and trying to get it to ramp higher," Kirsch said, noting that Rivian's options trading was driven by a mix of retail and institutional players.
Rivian was the third most heavily traded individual company in the U.S. options market on Monday, behind much larger companies Tesla and Apple Inc AAPL.O, with about 42% of the trading volume in contracts set to expire on Friday.
Options on another EV name, Nio Inc NIO.O, were also actively traded on Monday, making it the 10th most heavily traded individual company in the options market.
(Reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Will Dunham)
((saqib.ahmed@thomsonreuters.com; @SaqibReports; +1 332 219 1971))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rivian was the third most heavily traded individual company in the U.S. options market on Monday, behind much larger companies Tesla and Apple Inc AAPL.O, with about 42% of the trading volume in contracts set to expire on Friday. By Saqib Iqbal Ahmed NEW YORK, July 10 (Reuters) - Investors are piling into bullish options bets on the shares of Rivian Automotive RIVN.O, with some market participants saying the buying has helped the electric vehicle (EV) maker's stock notch a record nine-day winning streak. Rivian shares, which took off last week after the company reported better-than-expected quarterly vehicle deliveries, have risen 83% over the last eight trading sessions.
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Rivian was the third most heavily traded individual company in the U.S. options market on Monday, behind much larger companies Tesla and Apple Inc AAPL.O, with about 42% of the trading volume in contracts set to expire on Friday. Much of the options trading has consisted of investors buying "super short-dated calls," said Daniel Kirsch, head of options at Piper Sandler, adding that the options activity had helped drive Rivian's shares higher. Options on another EV name, Nio Inc NIO.O, were also actively traded on Monday, making it the 10th most heavily traded individual company in the options market.
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Rivian was the third most heavily traded individual company in the U.S. options market on Monday, behind much larger companies Tesla and Apple Inc AAPL.O, with about 42% of the trading volume in contracts set to expire on Friday. Much of the options trading has consisted of investors buying "super short-dated calls," said Daniel Kirsch, head of options at Piper Sandler, adding that the options activity had helped drive Rivian's shares higher. Options on another EV name, Nio Inc NIO.O, were also actively traded on Monday, making it the 10th most heavily traded individual company in the options market.
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Rivian was the third most heavily traded individual company in the U.S. options market on Monday, behind much larger companies Tesla and Apple Inc AAPL.O, with about 42% of the trading volume in contracts set to expire on Friday. Much of the options trading has consisted of investors buying "super short-dated calls," said Daniel Kirsch, head of options at Piper Sandler, adding that the options activity had helped drive Rivian's shares higher. Such a phenomenon - sometimes called a gamma squeeze - occurs when market makers who sold the call options hedge their risk by buying the underlying stock, helping push the share price higher as a result.
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2023-07-10 00:00:00 UTC
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Unemployment Data, Social Media Happenings, and Stocks to Watch
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AAPL
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https://www.nasdaq.com/articles/unemployment-data-social-media-happenings-and-stocks-to-watch
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In this podcast, Motley Fool host Dylan Lewis and senior analysts Jason Moser and Matt Argersinger discuss:
Whiplash in employment data and the certainty of rate hikes for the rest of the year.
Meta's new app, Threads, and what it means for Twitter.
Some surprises from the first half of 2023 and stories to watch for the rest of the year.
Two stocks on their radar: Vesta Real Estate and Topgolf Callaway.
Motley Fool host Deidre Woollard spoke with Ben Smith about the cycles in digital media, his new book Traffic, and how one legacy media company has managed to stay on top throughout all the shifts.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on July 07, 2023.
Dylan Lewis: Will the credit crunch ever come? Motley Fool Money starts now.
It's the Motley Fool Money radio show. I'm Dylan Lewis joining me in studio, Motley Fool Senior Analyst Jason Moser and Matt Argersinger, great to have you both here guys. All right. We've got predictions on the second half of the year, a look at the evolution of digital media, and of course, stocks on our radar, but we are kicking things off looking at the big picture. Matt, we got an update on unemployment numbers and employment numbers this week from two different sources, and I have to say, trying to pay attention to these numbers at a little bit of whiplash, looking at the results.
Matt Argersinger: Yeah, you're not the only one, Dylan. It was like a head fake on Thursday when the ADP came out, which is all about private sector jobs and they reported a job growth of almost 500,000. So we're setting up for Friday's labor report thinking, wow, we might make it a big number there too, but no, the labor department came out with a report that's showed payroll numbers rose just 209,000. That's actually the lowest number since way back in December 2020. It's a big disappointment there. There's methodology difference between the ADP and the labor department ADP's looking at actual paychecks. Labor department is more of a survey. Take your pick, but over time these numbers tend to converge, but if you look at the first six months of the year going by just the BLS numbers, which also includes some downward revisions, we're now showing an average monthly gain, job gain of 278,000. Still pretty strong, but that's actually down a lot from almost 400,000. The 400,000 monthly average we had for the first six months of 2022. There is a slowing happening in employment. We're starting to see that. Same time though, get hourly earnings, excuse me, of 0.4%. That was slightly higher than expected, 4.4% from a year ago. There's still some inflation pressure on wages and the unemployment rate is still near historic lows at just 3.6%. Unfortunately we do this when we look at economic data. It's like on one hand, job growth is definitely slowing, on the other hand, wage growth is still high and the employment picture is pretty strong. I think the big question is, does this change the idea that the Fed is going to keep raising rates? No, I don't think so.
Dylan Lewis: Yes. One thing I want to ask you about money because I was reading just the other day that we are at a point now where the rate of people leaving their jobs. I mean, over the last three years, we see people just pick up and leave their job and go do something else. Could they've had that luxury for a while. It's it's been a workers mark and that rate is coming back down to pre-pandemic levels. In other words, people are not picking up or leaving their jobs just to go do whatever else anymore. You feel like that maybe is a sign that we're getting to a point where this jobs market is becoming a little bit more stressed and folks see that, maybe it's not so easy just to go do something else as it was before.
Matt Argersinger: Well, I agree. I think the slack that was not as there as it was, and I think that's just one of the things the Fed is trying to step on, and I think you can conclude that it's succeeding just given the momentum we're seeing or the trend we're seeing, I should say, in the monthly averages, but it just feels like there's still a way to go.
Dylan Lewis: Matt, you mentioned that we are still seeing wages go up. That's slowing a little bit, but we're paying attention to that because we know that that's going to play into the long-term picture for inflation, and some of the moves that the Fed winds up making. Looking at minutes from the Fed meeting recently, getting look at those this week, I think we have to see expectations of additional rate hikes with almost no doubt.
Matt Argersinger: No doubt, yeah. I think two rate hikes is easy. There's even potential now for a third retag Lisa's small possibility before the end of the year. It's just to me. It's such a sharp contrast where we were just a few months ago when a lot of analysts were saying, oh no, actually we're setting up for cuts before the end of the year. That is completely out the window yet the market seems unfazed by that, which is a surprise to me. I think we have to collectively go from thinking, all right, how high will rates go? And instead start thinking about how long our rate is going to continue to stay high because I think a lot of people had the expectation this is going to be relatively short-term. We're going to see a sharp reversal once we saw inflation moderate a little bit. It doesn't seem like that's the case.
Dylan Lewis: No. It's a really different world and a different set of parameters for investors. If you imagine a world where rates are going to stay high. This high or higher for a long period of time. I guarantee you that's not what a lot investors thought about certainly coming into this year.
Matt Argersinger: It's a huge adjustment and I think something that a lot of people are getting themselves used to as they're looking at businesses and just how things may play out for the rest of the year. Jason, anything on the rate environment or the macro environment for you?
Jason Moser: I regard to rates, I just continue to wonder, I mean, going forward we're going to see a point here where obviously folks are going to settle into the jobs that they have. They were seeing The student loan repayments are going to read the student loan payments are going to resume. At some point, I think we're going to see 2024, a lot of numbers start to flow through the economy. That makes me wonder if we won't see a little bit more of a discussion of perhaps cutting those rates because I think there are a lot of things connected to these inflation numbers that lead me to believe that maybe 2024, we're going to see inflation come down a little bit more meaningfully than perhaps we've been expecting it to.
Matt Argersinger: Switching gears and over to social media, we are seeing competition in the space heating up. This weak Meta launched its Twitter rival Threads, and it is reportedly the most rapidly downloaded app of all time. Jason, are you surprised by the adoption we've seen for this new launch?
Jason Moser: I'm not. I don't know why. I'm impressed with the numbers, but to me that makes sense. I mean, 50 million plus people signing up for it. That's a lot. That's impressive. Don't get me wrong, but I mean, Instagram has got two billion users. I mean, this thing is tethered to Instagram. I mean, I expected these numbers to be gangbusters and so I'm not surprised that they are. I mean, this is the time for Meta to take a shot. I mean, Twitter is just hit us data chaos. I mean, Musk has had to unwind a lot of things that were done. Twitter, the platform over the years, and he's taking a bit of a different approach with a bit of a different philosophy. This is a point of time where Twitter is very vulnerable and it makes a lot of sense for Meta to get out there and give this a world. Twitter has got a ton of issues. I don't know. I don't think Threads is going to replace Twitter. I mean, you and I were talking about this yesterday. I see a world will both exists. I think Threads actually it can be very complimentary to Instagram, but I don't think we're going to see most people migrate from Twitter to Instagram, and that really it's because of the free speech issue. I mean, I'm not saying you're going to get pure free speech on any platform, but I think there is a large audience out there that wants the most free speech they can get. That's not going to happen on Meta's platforms. It's just not. They've laid down the gauntlet there and we know that with Twitter, that's really one of Musk's primary priorities. He wants to focus on a free speech platform, which is why he also knows that pivoting away from ad supported is not optional. That's why he knows that the clock is ticking and he's got to figure out other ways to monetize this platform beyond just advertising dollars, and that's understandable. Advertisers love free speech to a degree, but you got to be careful there. They are dollars at work and they're not going to let just anything to be said. That makes a lot of sense. I think is just going to be very interesting to see how these two platforms co-exist because they are very similar.
Matt Argersinger: Yeah, I like one of the last point you made about the advertisers because I do believe both of these platforms can exist, but the advantage, of course, that Meta has and Instagram has is the advertisers know they have more data, I think on those users. If those users start gravitating over to the more text-based Twitter like platform that Threads is, I got to believe Meta can monetize those users a lot better than Twitter has, and that's been a big problem in Twitter. I think Meta can figure it out. To that point. I mean, Meta, Instagram, and Threads. I mean, if you look at the terms of use. These are data harvesting machines. I mean, they collect a lot of data. Some people care about that, some people don't, and you have to make that decision, but I think an interesting dynamic yours that Instagram ultimately wants to make Threads part of the fediverse. Now, the fediverse this network of social media servers that essentially brings Threads beyond just Meta social media network. It extends it out to things like mastered on, and I think WordPress is a part of the fediverse. In other words, it broadens your social media landscape, so to speak, beyond just Meta controlled properties. You asked, why would they do that? Well, I mean, it's going to give them an opportunity to collect data on a bunch of users that they may not even have on their platforms to begin with, and ultimately, it just gives them an opportunity to monetize even more so while they're not even advertising with Threads right now. You know that's coming, and I think that fediverse angle is just an interesting one and it tells you a little bit of the longer-term aspirations for Meta in regard to monetizing these platforms. Looking at the dynamics here, I can't help but see Meta as just a more flexible and dynamic competitor in the space. They have a Cash-cow business despite all of the missteps they've had over the last couple of years, and I think they can afford to be a little platform agnostic here, Jason, because this is not the only game in town for them whereas Twitter, a little bit more resigned to the fact that this is the app and Musk has to make it work.
Jason Moser: Meta does not need this to succeed at all. Twitter doesn't need it to fail, but I guarantee a Twitter doesn't want it to gain attraction because you're right. I mean, the one competitive advantage of the Meta has, it's just a massive user base and they can scale anything virtually overnight as we've seen, and circuit board can succeed in replacing Metaverse, which investors painted with a fediverse, which I didn't even know existed. Hey, that's what a rabbit to pull out of a averse.
Matt Argersinger: That's the thing. You learn something new every day.
Dylan Lewis: It's all about branding. Earlier this summer, sticking with tech, Apple unveiled its latest product, the VisionPro headset. This week we got an update on the company's plans. It will be reducing its production targets for their vice, apparently because manufacturers, we're having a hard time with the devices complexity Jason. What does this news do for your expectations of the VisionPro.
Jason Moser: Apple building a complex device, I mean color me shocked. This thing looks like it's got a lot of moving parts to it. I'm not terribly surprised. Apple is very methodical on the way they move into markets like these, and we knew this was going to be a very slow process even if everything went according to plan. Clearly, they're going to be some delays here, tech supply issues or some problems with the displays there. What I think is more fascinating and we've been talking a lot about this and the cost of this device. We're already talking about the cheaper version. When does it come. They're already saying, they're working on a cheaper version that's two years out. It goes back to, I think, this expensive first device. This is really to set the tone, help developers build experiences that make this device relevant and ultimately attractive to consumers. The one they start rolling out, there is more affordable devices, it's a little bit of an easier sale.
Dylan Lewis: Yeah. This was never going to be a mass-market device. I wonder, does it just make sense for Apple to get this right. Because the people that are going to be the early adopters are going to be the ones that are really shaping the narrative around this and the use cases for this that's why we're seeing them ratchet some of these production volumes down.
Jason Moser: I think that's exactly right. That's why you're seeing companies like Microsoft, Unity and Adobe jump all in really on developing experiences with this device because they know there's going to be something there, but the only way they can get something there is to ultimately have the experiences. The technology is fascinating, but we go back to what are the use cases for these headsets, a solution in search of a problem.
Dylan Lewis: After the break, we've got surprises from the first half of 2023 and some things to keep an eye on for the rest of the year. Stay right here. This is Motley Fool Money. [MUSIC]. Welcome back to Motley Fool Money. I'm Dylan Lewis here in studio with Jason Moser and Matt Argersinger. This is our first show for the second half of 2023. I thought it might make sense for us to look back at the year that has been so far, and maybe also what investors can expect for the rest of the year. Let's start with the rearview. Jason, looking back so far on 2023, what is something that surprised you?
Jason Moser: Something that surprised me. We have probably even talked a lot about deserves more attention to the state of Disney today is not great. They are really going through some growing pains. The juxtaposition between Netflix and Disney share prices year-to-date and over the last 12 months is pretty fascinating. Year-to-date, Netflix up about 50%, trailing 12 months, it's up about 140%. Disney, 2%, and down 7.5% respectively. That's just fascinating to think about, particularly when you consider the enthusiasm. Not all that long ago is they were launching their streaming service. But you look at that. They got off to a great start with the streaming strategy and that was a lot of growth pulled forward very quickly for obvious reasons. The theatrical releases are not performing well. ESPN is in a state of chaos. The strategy there still isn't fully clear. Their mass layoffs. They've gotten rid of a lot of talent, restructuring the business. Now just yesterday we see word on the street is that Iger wants to extend his contract out beyond 2024 when it expires, guys, it's only mid-2023. I don't know about you, but that tells me that he realizes they've got a lot of problems and it's going to take a little while to fix them. To me, this has just been fascinating to see Disney go from such a wonderful story to not such a wonderful story.
Dylan Lewis: Jason, Disney is one of those cornerstone stocks where I think a lot of people start out early investing, buying them. I think a lot of people would look at Disney at $160 billion, company, look at Netflix at 195 billion and say, what gives. When you look at the business right now, is this something that hits value play territory or is it more value trap territory?
Jason Moser: It's a very good question. To me personally, I think it's value opportunity just because they've got too much going for it between the properties and in the IP and then the streaming platform. I think is going to take a while. I think the most would say opportunity, but they have to figure out the economics of the streaming business and that's going to take some time. But you've looked at the company day, it's valued around 23 times normalized full-year estimates, that's not crazy cheap either. You go back to 2019, they chalked up better than $6 in earnings per share. This year it's going to be half that. There is the dividend catalysts potential. They have had that dividends to spend for awhile. We expect that to resume it by the end of the year. I would imagine that the street will receive that news also.
Dylan Lewis: Matt looking over at the first half of 2023, what jumps out to you?
Matt Argersinger: I'm so surprised where we are today given what just happened in the spring, which is we had , Credit Suisse, First Republic, a few other smaller banks fail. There is real fear that we're going to have this financial contagion. Americans, especially small businesses, start to worry about things they really had not worried about in the past, like uninsured deposits. There are ear that banks are going to pull back for the lending market. There was the bogeyman commercial real estate in the office space, especially with all the debt that was coming due. Yet we are few months later and it doesn't seem like that risk is on any investors radar right now. To me, it just seemed very palpable at the time. Most banks have weathered the storm. The housing market has been incredibly resilient, despite mortgage rates being at multi-decade highs. I think to me that's the biggest surprise. We went through this really tumultuous time where there was just really big fears about the financial part of this market and the economy. It didn't come to bear.
Dylan Lewis: Shifting gears little bit to the future. Do you think that this is something that can materialize in the second half of the year and people should continue to be paying attention to?
Matt Argersinger: I think so. But the problem is, I think it's going to be very staggered and uneven. Yes, there are a lot of office properties that will be foreclosed on, debt will get extended or renegotiated. Some banks will have higher charge-offs. But it's going to be rolling across the economy and the markets as opposed to something that's happening all at once and dropping a big bomb on everything.
Dylan Lewis: Jason, as you're looking forward to the rest of 2023, what are you keeping an eye on?
Jason Moser: I think something to keep an eye on a student loan payments are set to start backup in October. Don't overlook this right there about 44 million with federal student loan debt today, the data I've been able to dig up says about 18% of those kept paying during the pause, which means a lot of people weren't paying over the last three years, estimate around $250 monthly bill and there's a lot of money that may not be going back into the economy, typically retail and services here, going into 2024. Then you add to that the excess savings that American households accumulated during the pandemic that has now essentially been depleted. It just puts the consumer in a tougher spot here going into 2024. Keep an eye on those impacts.
Dylan Lewis: Do you think that may factor into some of the credit crunch stuff Matt was just talking about.
Matt Argersinger: It absolutely could. I think it also could help bring that inflation number down because they definitely are correlated.
Dylan Lewis: Matt, what about you what are you looking out for for the second half of the year?
Matt Argersinger: Earlier last month, I should say on the show we talked about some of the parts of the market that really are participating in this rally that we've had. It's been a really impressive for alley. There's financials for obvious reasons. We just discussed energy, real estate. Momentum is a powerful force in the market so I'm not expecting big turnarounds here, but if you let me be a homer for a second, I have to. I think I'm going to zero in on commercial real estate. If you look at the XRE or the Vanguard Real Estate, ETF, real estate has just really underperformed, really for about 18 months now. It's trailing the market by about 1,500 basis-points depending on what measure you use. I'm that's partly justified. We know the situation with office real estate in this post-pandemic work-from-home world that we live in, but it is not a monolith. You've got industrial, you got hotels, retail, self-storage, datacenters, multifamily. A lot of these markets are performing really well. Barons actually had a really lengthy report this past weekend about some of the values they're seeing in the commercial real estate space. Office is a much smaller part of this one trillion-dollar public REITs market that we are in. It's around 3% now. If you think about what's happening in the industrial space, near-shoring, or what's happening in the multi-family space. The housing markets still going like bonkers. This is going to play off for years, but I think the Renaissance for commercial real estate starts in second half.
Dylan Lewis: Matt, Jason, we'll see you guys a little bit later in the show. But up next, we've got to look at the digital media landscape. Stay with us. This is Motley Fool Money. Welcome back to Motley Fool Money. I'm Dylan Lewis. Over the past two decades, few industries have changed as quickly as media, from blogging to the rush in social media and subscription, everything. Ben Smith has seen it all. He was a columnist at The New York Times and the founding Editor-in-Chief for BuzzFeed. Motley Fool Money's Deidre Woollard spoke with Smith about the cycles in digital media, his new book traffic, and how one legacy media company has managed to stay on top through all the shifts.
Deidre Woollard: I was excited to talk to you because I read this book and it was a bit of nostalgia for me. I worked at Weblogs, which was a Gawker competitor like early odds. You just capture so much of that energy in the moment, I think people sometimes they miss how revolutionary blogging was at the time. How do you feel that the professional first blog networks, how did they change the news landscape?
Ben Smith: Yeah, I feel exactly the same way and it's funny to think now because I think now when I tell people about blogs, particularly young people, I feel like I'm referring to some technology from the distant path.
Deidre Woollard: All right.
Ben Smith: Like we're blogging, there was this thing called blogging back in the day but no, I don't think I thought about it in quite such abstracts rooms at the time because I think when you were there, I was writing blogs for like the New York Daily News and the New York Observer. But similarly, this very new thing and fundamentally there for a long time, if you had some that you wanted to report on or say you needed either a printing press or a broadcast tower, you get it out. Suddenly you didn't and that was a big change. Then for me, it was like political scoops and reporting. There's just something so incredibly invigorating, but just talking directly to your sources, actually, in my case, and to your readers around the traditional distribution around your bosses and the editors and what they thought. It was very liberating and I think it was a very Utopian moment actually, like, I felt like this is the future and it's all positive.
Deidre Woollard: Though the early days of high traffic websites, so much of it as you talk about in the book, so much of it was about being sticky. How do you get people to stay around, be on the site longer, visit more frequently? Then that's the first wave. Then you've got the second wave that comes with social media changing all of that. How did that change the world of blogs?
Ben Smith: Yeah, well, let's see. They're right. There was this world that was intelligence. Some of the blogs were produce social media people had relationship with their commenters that were sometimes for better and for worse, like a little like Twitter and talk to other bloggers. A clunky way like I would write some attack and as recline and then I'd email us through and say, hey, I attacked you would you mind linking you and you and I link that I gave you a good link. Please link me back. If you were in that world as you were too like you really felt the traffic, the reader is the energy move to social media in this very tangible way, if you were living in it, suddenly everybody was over there and I found myself writing for Twitter, a writing blog post in the hopes that they would go viral on Twitter basically. I think in all these online publishers of that era into different theories saw that coming. Probably, the person who saw it most clearly was Jonah Peretti who created BuzzFeed and hired me in 2012. After this conversation, where at first he was talking about all this futuristic mumbo-jumbo. I didn't really understand. But the notion of a consumer who opens Facebook opens Twitter rather than opening your website really was where people in politics were already living and the notion of doing these organizations front-page was Twitter, which was what BuzzFeed news really launched as was very compelling for me.
Deidre Woollard: Let's talk a little bit about when you went to go work for Jonah because you weren't sold on the idea at first?
Ben Smith: Yeah. I think I looked at BuzzFeed and thought like, this is a cat website and what is news doing here? But I think the thing that Jonah Peretti had seen was that the early most amateur and silly beginnings of social content and social media, which were cap pictures and memes and site dominated by sites like nine gag, which you may remember like real bottom of the Internet. Weird copyright free zones that this world was starting to move into professional content and move up market and into news.
Deidre Woollard: Well, I think that's an interesting thing because you've got Gawker, which is doing both gossipy stuff and then trying to do news. Buzzfeed has that beginning in cat videos and top 10 lists and things like that, and then evolves into a more serious base. You start to get things like Huffington Post winning Pulitzer's. What was that marriage like between the traffic getting stuff and the more serious stuff?
Ben Smith: I would say at first it had this really clear logic to it. Like wow, like Facebook, Twitter, they're swallowing everything and let's do news. By the way, consumers love it. Consumers think it's cool that on their Facebook page there's a New York Times article and a picture of a cat and an update about their friends kid like what a fun mix. I think there was this period when the Facebook news-feed in particular was a fun novelty that people liked, Buzzfeed was built to reflect that content mix and God bless. I think the thing that ultimately, I think those publishers and Facebook never really recovered from, was at some point that just turned into this nightmarish really toxic Stu that nobody really wanted a part of. Consumers, ultimately more than business types or journalists said, hey, wait a second, we would like to sort these things out. Facebook bumble's around for a while, does a lot of damage, but ultimately response essentially by throwing news off the platform. Like if you open your Facebook feed, you're not going to see any news now. I think the drew that direction of travel changed very abruptly for reasons that had, I think a lot to do with the politics and culture of the 2010s which they fed that also were very shaped by.
Deidre Woollard: How did Jonah Peretti adapt when that started to happen?
Ben Smith: I don't think any of these companies adapted successfully. I think if you look around now, universities trading and $0.50 and being threatened with delisting Vice. What is collapsed into one of its lenders essentially as he's going to own it. You go through the roster of those companies and they were basically a bad on a certain kind of future for digital in which digital would be like Cable. Content companies would build on the backs of distribution companies and share the winnings, and the distribution companies had no interest in sharing the winnings. Then the distribution companies themselves, I think will not endure as long as Cable did or has. I think when you say like these big fundamental pieces of that vision didn't work. You can then I think all these companies and Jonah and I and others made all mistakes. But it's actually hard. The fact that they've all come to the same place suggests that they are a bigger challenge.
Deidre Woollard: Well, you also talk in the book about the New York Times, and you talk about that moment where it was floundering. Now it's reinvented itself. What do you think the Times eventually figured out about doing new media?
Ben Smith: It's so interesting, like I went out to write this book about the birth of Internet media, and the winner turns out to be the New York Times where I was at the time actually depressing. But no, it was interesting. This is a business story. There is this strategy in the business world, a fast following. You know that you can win, you don't have to be first, if you follow fast, and the Times did not do that, they followed slow. They watched other places, notably the Washington Post flail around chasing Internet gurus and Internet trends. They plused a lot of money, they preserve their like core value proposition, which is great journalism. They essentially waited out the period in which it was impossible to do a subscription business on the Internet and that wasn't like a cultural shift hopefully Netflix and Spotify and particularly trained people to pay. The Times had been patient, had retained its relationship with its readers, retained its brand. Sell-off assets was essentially a release out floors their building. They were throwing the furniture into the fire to keep the lights, to keep the room warm. But ultimately emerged with this incredibly strong subscription business then build around that in some ways, reassembled the old news bundle and built crosswords, and cooking, and in a weird way, it's like all the stuff that you used to get an a prints Sunday paper.
Deidre Woollard: Do you think there's any lesson we can learn from the way that online content has evolved into maybe how streaming is going to shake out.
Ben Smith: That's a really great question that I don't have a clear answer to. Actually, I think people tend to overall learn the lessons of the last one.
Deidre Woollard: Indeed.
Ben Smith: I think the overlearning what was advertising is terrible and dead. Subscriptions are the only possible business for media. They are pure and good. You saw that in streaming, you saw that in Substack world. Then they learned the old lesson that incremental subscription business gets harder and harder, and growth gets really hard, and inexpensive and churny. The advertising business is actually like it has a lot going for it. I actually think the media business is tough business. You got to be really connected to an audience, really telling people interesting things for them, and then pretty like non-ideological about revenue. I think that's what the big media companies are now realizing having had this blinkered ideology about the only possible business is subscription.
Deidre Woollard: Thinking over all about traffic in general, that's like you call it yet the tide of human attention and your book cover has this waved. Like taking that wave idea, Pfizer blogs, social media, newsletters we talked about is the next wave video content. Is it something else? Is it the metaverse? I don't think it's the metaverse, but it's [laughs] What might it be?
Ben Smith: I think the news business is you have to be clear with these other what we're talking about, and I think obviously short video is this dominant medium right now. TikTok, huge. But if you're trying to get really useful information about equities or understand what's happening in AI or in politics, short video isn't necessarily the best way. Text remains a pretty useful technology. Audio is useful, and so I'm not sure. There will no doubt be very cool things in the metaverse, but the news among other things, just isn't the most lucrative business in the world. It's not going to be the one building the most elaborate three-dimensional spaces for us all to live in.
Deidre Woollard: Given that news isn't the most lucrative business, what is it about it that has kept you going at it and coming back to it and still being excited about the next story.
Ben Smith: Man, I'm just a total junkie. Like I love scoops. I like knowing what's going on, wake up every morning totally curious. We did probably like lowest stakes journalism that you're going to do. We covered the advertising conference in Canada last week, which was interesting and useful. But this media newsletter that i right with Max Tony, and at some point I was like there and Ken, about 1:30 in the morning cheerfully like editing the newsletter and he's like, we were sharing an Airbnb. He's like I'm going to sleep, what are you doing? He's like, I think I would probably do this if nobody paid me.
Deidre Woollard: Nice.
Ben Smith: Like I'm having a good time. Actually, that is something that I think I took, and maybe you did too from that early era, which it was amateur.
Deidre Woollard: It was definitely amateur.
Ben Smith: Like in the sense of that word. That like you're doing it because you love it. It didn't feel like it was you were making car widgets for a factory. Like you were talking directly to people who are interested in what you would say.
Dylan Lewis: Ben Smith's book, Traffic, is out now and you can catch Ben's latest efforts at semafore.com. Coming up after the break, Jason Moser and Matt Argersinger return with a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money. As always, people on the program may have interest in the stocks they talked about, and the Motley Fool may have formal recommendations for or against them, so don't buy or sell stocks based solely on what you hear.
I'm Dylan Lewis joined again by Jason Moser and Matt Argersinger. We're going to get to our radar stocks in a second but first, Amazon's Prime Day is next week and we're getting an early look at deals ahead of the official start on July 11th. Jason, as you're thinking about Prime Day and you're thinking about Amazon's business and these two things coming together, what are you paying attention to?
Jason Moser: It's nice when you can just hit a switch and turn on sales like Amazon can, and it's pretty impressive. Amazon Prime now has over 200 million prime members around the world and the US accounts for around 75% of that total. Maybe it's a little bit saturated here, but certainly plenty of global opportunity. But to give you an idea of what Prime Day means to the business, it's not insignificant. Sales during Prime Day in 2022 reached over $12 billion. The average prime subscriber spends about $1,400 per year. When you look at this and couple that together with the fact that Prime really it's only available in 23 countries, which I honestly thought it was more, but maybe that also speaks to the opportunity that's still out there.
Dylan Lewis: Matt, Jason mentioned that we're starting to see a little bit maturity in North American market. When you look at Prime and its role with Amazon, is this a loyalty play? Is there something else that people should be factoring in here?
Matt Argersinger: Yeah. It is loyalty play and if you look at the retention rates are amazing. For US members, it's 93% renew their Prime membership. It might be reaching a point where it's no longer really a growth opportunity in the US, but that's OK. I think Costco is an example of where the membership ranks aren't really growing there either. But the reliable cash flow, but the spending that those members bring, and the pricing power that Amazon and Costco have within for those members is still really powerful. It's fine if that is the future for the business is just a retention cash flow, at least for the US.
Jason Moser: With Costco, the focus on the member. That's one thing they do so well. I think Amazon does that pretty well also. It's just the focus on the member, so important.
Dylan Lewis: You got to be obsessed with the customer experience.
Matt Argersinger: They've well pulled that.
Dylan Lewis: It's the founding idea of Amazon. Let's get over to stocks on our radar. Our man behind the glass, Dan Boyd is going to hit you with a question. Matt, you're up first. What are you looking at this week?
Matt Argersinger: I got to give credit to my man, Tyler Crowe, a longtime Fool contributor. He mentioned this one to me earlier this week. Vesta Real Estate, VTMX is the ticker. It's a new IPO to the US market. They listed their American depository shares just at the end of June. It's the largest US IPO by a Mexican company and more than a decade. That's according to Bloomberg. Vesta is a major developer, operator of industrial real estate in Mexico, so think industrial parks, warehouses, logistics, light manufacturing. More than 200 properties, a 33.7 million square feet, occupancy rate of almost 97% as of the end of March. If you think about the trends of bringing back manufacturing capacity in North America, near-shoring, supply chain redundancy, there's a huge need for that space and Mexico is the perfect place for North American manufacturing. You've got a business that is really growing impressively, pays a nice dividend. I think it's a company that's in the right spot and now at the right time for US investors.
Dylan Lewis: Dan, a question about Vesta Real Estate.
Dan Boyd: Not really a question, Dylan, more of a comment. I think bringing a week-old stock to stocks on our radar is cheating, as what could be more interesting than a brand-new big IPO?
Dylan Lewis: Yeah. his got a good point here.
Jason Moser: Love that, Dylan. Love it.
Matt Argersinger: At first it was going to be like a back-end company.
Dylan Lewis: It was good by ripped.
Matt Argersinger: I thought he was going week-old as in like me. I'm weak and old. [laughs]
Dylan Lewis: Well, I think what he's doing is he's teeing you up for a very hard pitch here, Jason, for your stock.
Jason Moser: It's always a hard pitch with Dan. Like his comments and not his questions. His questions are difficult to answer. But Dan, I'm going to give this one a wall here. Hopefully, you've been to top golf before, but my radar stock this week is Topgolf Callaway Brands. Ticker is MODG. Dan, what I'm not thumbing through the latest issue of watercolor artists, I'm likely catching up on the latest issue of Golf Digest. Exciting stuff I know, but I found a fascinating data point just the other day in reading through my latest issue of Golf Digest. I'm not even lying here, guys. I'm really like that. The National Golf Foundation noted that for the first time ever, the number of off-course golfers has surpassed the number of on-course golfers. Now, an off-course golfer is someone who likes to hit golf balls and likes the game of golf, but they don't want to go playing a round of golf on the golf course. Whereas like, I love to go play golf, so you're going to catch me on the golf course. But there are a lot of folks that just love to go hit golf balls, so they would be on versus off. But of the 41.1 million total, there are 15.5 million off-course golfers versus only 13.2 million on-course. The remaining is a combination. Like I would be on-course, off-course. I like to go to top golf and I like hybrid. I don't think [OVERLAPPING] so I love it all, man. I don't think this is an outlier, though. I think this is a trend we may see continue, and I think a driver of this trend, see what I did there. I think a driver of this trend is Topgolf, which Callaway acquired a couple of years back. Callaway is a keystone brand in the golf world, I hate Callaway irons, Mattie. Hell no. I use an Odyssey.
Matt Argersinger: You're a man of the sport. That the brand.
Jason Moser: Bringing Topgolf into the mix here, I always thumb my nose at golf as an investment. Having the experience in the industry, I know it's a tough game, it is an expensive game. But bringing Topgolf into their universe, I think gives them an opportunity to grow in a different direction. Think like a Dave and Buster's for golfers, which I think is just very fascinating. It takes golf beyond just that traditional on-course golf demographic. I'm digging more into Topgolf Callaway Brands here to see if it's worthy of a recommendation.
Dylan Lewis: Dan, a lot of narrative flare, a lot of personal experience there. A question about Callaway Golf.
Dan Boyd: No. I have a comment, so Jason will enjoy this. I am not an on-course golfer. I've actually never played golf on course. But I've been to Topgolf many times.
Jason Moser: So he's an off-course golfer.
Dan Boyd: Yeah. If you guys ever want to go see a grown man swing a golf club like a baseball bat, because I have no idea what I'm doing, let's go to Topgolf.
Jason Moser: I'm all in.
Dylan Lewis: Sounds like we have similar technique, Dan. Which company is going on your watch list, Dan?
Dan Boyd: I'm sorry, Jason. As much as I love Topgolf, I just love a new IPO, especially one as big as Vesta.
Jason Moser: Nice
Dylan Lewis: Guys. Jason, Matt, thanks so much for being here in bring your stocks on the radar. That's going to do it for this week's Motley Fool Money radio show. This show is mixed by Dan Boyd. I'm Dylan Lewis. Thanks for listening. We'll see you next time.
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. SVB Financial provides credit and banking services to The Motley Fool. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dan Boyd has positions in Amazon.com, Costco Wholesale, and Walt Disney. Deidre Woollard has positions in Adobe, Amazon.com, Apple, Costco Wholesale, Meta Platforms, Microsoft, and Walt Disney. Dylan Lewis has positions in Spotify Technology. Jason Moser has positions in Adobe, Amazon.com, Apple, Unity Software, and Walt Disney. Matthew Argersinger has positions in Amazon.com, Netflix, Pfizer, Unity Software, and Walt Disney. The Motley Fool has positions in and recommends Adobe, Amazon.com, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Pfizer, Spotify Technology, Unity Software, and Walt Disney. The Motley Fool recommends Dave & Buster's Entertainment, SVB Financial, and Topgolf Callaway Brands and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe, short January 2024 $155 calls on Walt Disney, and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool host Dylan Lewis and senior analysts Jason Moser and Matt Argersinger discuss: Whiplash in employment data and the certainty of rate hikes for the rest of the year. They have a Cash-cow business despite all of the missteps they've had over the last couple of years, and I think they can afford to be a little platform agnostic here, Jason, because this is not the only game in town for them whereas Twitter, a little bit more resigned to the fact that this is the app and Musk has to make it work. I mean, the one competitive advantage of the Meta has, it's just a massive user base and they can scale anything virtually overnight as we've seen, and circuit board can succeed in replacing Metaverse, which investors painted with a fediverse, which I didn't even know existed.
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In this podcast, Motley Fool host Dylan Lewis and senior analysts Jason Moser and Matt Argersinger discuss: Whiplash in employment data and the certainty of rate hikes for the rest of the year. The Motley Fool has positions in and recommends Adobe, Amazon.com, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Pfizer, Spotify Technology, Unity Software, and Walt Disney. The Motley Fool recommends Dave & Buster's Entertainment, SVB Financial, and Topgolf Callaway Brands and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe, short January 2024 $155 calls on Walt Disney, and short January 2024 $430 calls on Adobe.
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In this podcast, Motley Fool host Dylan Lewis and senior analysts Jason Moser and Matt Argersinger discuss: Whiplash in employment data and the certainty of rate hikes for the rest of the year. Dylan Lewis: Jason, Disney is one of those cornerstone stocks where I think a lot of people start out early investing, buying them. Don't overlook this right there about 44 million with federal student loan debt today, the data I've been able to dig up says about 18% of those kept paying during the pause, which means a lot of people weren't paying over the last three years, estimate around $250 monthly bill and there's a lot of money that may not be going back into the economy, typically retail and services here, going into 2024.
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Motley Fool host Deidre Woollard spoke with Ben Smith about the cycles in digital media, his new book Traffic, and how one legacy media company has managed to stay on top throughout all the shifts. Matt Argersinger: It's a huge adjustment and I think something that a lot of people are getting themselves used to as they're looking at businesses and just how things may play out for the rest of the year. Dylan Lewis: Matt, Jason, we'll see you guys a little bit later in the show.
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14951.0
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2023-07-10 00:00:00 UTC
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Apple executives fight subpoenas in shareholders' lawsuit against Qualcomm
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AAPL
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https://www.nasdaq.com/articles/apple-executives-fight-subpoenas-in-shareholders-lawsuit-against-qualcomm
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By Mike Scarcella
July 10 (Reuters) - Apple's AAPL.O chief operating officer and a top corporate lawyer at the company are fighting an effort that could require them to answer questions in a private securities class action against chip maker Qualcomm QCOM.O in U.S. court in California.
Lawyers for Jeffrey Williams, who has served as Apple's chief operating office since 2015, and Bruce Watrous, the company's chief corporate and commercial counsel, on Friday asked a U.S. judge to quash subpoenas from Qualcomm and the plaintiffs in the investors' lawsuit.
Apple, Williams and Watrous are not parties to the 2017 lawsuit, which alleged Qualcomm made misrepresentations about certain business practices that artificially boosted shares between 2012 and 2017.
The complaint accused San Diego-based Qualcomm and executives of hiding anticompetitive sales and licensing practices.
Apple, which is Qualcomm's biggest customer, did not immediately respond on Monday to a request for comment.
Attorneys for the plaintiffs and a Qualcomm representative did not immediately respond to similar requests.
In the investor lawsuit, U.S. Magistrate Judge Michael Berg in May said Qualcomm and the plaintiffs could question two current or former Apple employees. Qualcomm and the plaintiffs said they agreed to that number of Apple deposition witnesses.
Qualcomm wants to inquire about communication between Apple and the Federal Trade Commission, and Apple's cooperation with the agency, related to an antitrust case the FTC brought in 2017 against Qualcomm.
Qualcomm defeated the FTC's case over business practices that are central to the private securities class action.
The lawyers for Apple and the two executives said they earlier provided testimony and documents in the FTC action.
Apple also said its "communications with the FTC are not relevant to the securities litigation between Qualcomm and its shareholders regarding alleged false statements by Qualcomm."
Qualcomm "seems to have seized the opportunity to harass Apple, its former litigation opponent," lawyers for Apple said.
Qualcomm has disputed allegations in the investors' lawsuit. A judge in March ruled that the case could move forward as a class action.
A case management hearing is scheduled for Aug. 28.
The case is In re Subpoenas Issued to Jeffrey Williams and Bruce Watrous Jr, U.S. District Court for the Northern District of California, 5:23-mc-80181.
For Apple et al: Richard Doren of Gibson, Dunn & Crutcher
For Qualcomm: Robert Van Nest of Keker, Van Nest & Peters; Anthony Ryan of Cravath, Swaine & Moore; and Steven Strauss of Cooley
For plaintiffs: Jonathan Uslaner of Bernstein Litowitz Berger & Grossman; and Gregg Levin of Motley Rice
Read more:
Qualcomm must face shareholder class action over sales practices
Qualcomm faces renewed consumer antitrust lawsuit in U.S. court
(Reporting by Mike Scarcella; editing by Leigh Jones)
((Mike.Scarcella@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella July 10 (Reuters) - Apple's AAPL.O chief operating officer and a top corporate lawyer at the company are fighting an effort that could require them to answer questions in a private securities class action against chip maker Qualcomm QCOM.O in U.S. court in California. Apple, Williams and Watrous are not parties to the 2017 lawsuit, which alleged Qualcomm made misrepresentations about certain business practices that artificially boosted shares between 2012 and 2017. For Apple et al: Richard Doren of Gibson, Dunn & Crutcher For Qualcomm: Robert Van Nest of Keker, Van Nest & Peters; Anthony Ryan of Cravath, Swaine & Moore; and Steven Strauss of Cooley For plaintiffs: Jonathan Uslaner of Bernstein Litowitz Berger & Grossman; and Gregg Levin of Motley Rice Read more: Qualcomm must face shareholder class action over sales practices Qualcomm faces renewed consumer antitrust lawsuit in U.S. court (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella July 10 (Reuters) - Apple's AAPL.O chief operating officer and a top corporate lawyer at the company are fighting an effort that could require them to answer questions in a private securities class action against chip maker Qualcomm QCOM.O in U.S. court in California. Lawyers for Jeffrey Williams, who has served as Apple's chief operating office since 2015, and Bruce Watrous, the company's chief corporate and commercial counsel, on Friday asked a U.S. judge to quash subpoenas from Qualcomm and the plaintiffs in the investors' lawsuit. For Apple et al: Richard Doren of Gibson, Dunn & Crutcher For Qualcomm: Robert Van Nest of Keker, Van Nest & Peters; Anthony Ryan of Cravath, Swaine & Moore; and Steven Strauss of Cooley For plaintiffs: Jonathan Uslaner of Bernstein Litowitz Berger & Grossman; and Gregg Levin of Motley Rice Read more: Qualcomm must face shareholder class action over sales practices Qualcomm faces renewed consumer antitrust lawsuit in U.S. court (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella July 10 (Reuters) - Apple's AAPL.O chief operating officer and a top corporate lawyer at the company are fighting an effort that could require them to answer questions in a private securities class action against chip maker Qualcomm QCOM.O in U.S. court in California. Lawyers for Jeffrey Williams, who has served as Apple's chief operating office since 2015, and Bruce Watrous, the company's chief corporate and commercial counsel, on Friday asked a U.S. judge to quash subpoenas from Qualcomm and the plaintiffs in the investors' lawsuit. Qualcomm wants to inquire about communication between Apple and the Federal Trade Commission, and Apple's cooperation with the agency, related to an antitrust case the FTC brought in 2017 against Qualcomm.
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By Mike Scarcella July 10 (Reuters) - Apple's AAPL.O chief operating officer and a top corporate lawyer at the company are fighting an effort that could require them to answer questions in a private securities class action against chip maker Qualcomm QCOM.O in U.S. court in California. Lawyers for Jeffrey Williams, who has served as Apple's chief operating office since 2015, and Bruce Watrous, the company's chief corporate and commercial counsel, on Friday asked a U.S. judge to quash subpoenas from Qualcomm and the plaintiffs in the investors' lawsuit. Qualcomm defeated the FTC's case over business practices that are central to the private securities class action.
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14952.0
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2023-07-10 00:00:00 UTC
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TQQQ, KESG: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/tqqq-kesg%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 6,250,000 units were destroyed, or a 1.3% decrease week over week. Among the largest underlying components of TQQQ, in morning trading today Microsoft is off about 1.6%, and Apple is lower by about 0.9%.
And on a percentage change basis, the ETF with the biggest outflow was the KESG ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
VIDEO: TQQQ, KESG: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of TQQQ, in morning trading today Microsoft is off about 1.6%, and Apple is lower by about 0.9%. And on a percentage change basis, the ETF with the biggest outflow was the KESG ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: TQQQ, KESG: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 6,250,000 units were destroyed, or a 1.3% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KESG ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: TQQQ, KESG: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 6,250,000 units were destroyed, or a 1.3% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KESG ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: TQQQ, KESG: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 6,250,000 units were destroyed, or a 1.3% decrease week over week. Among the largest underlying components of TQQQ, in morning trading today Microsoft is off about 1.6%, and Apple is lower by about 0.9%. And on a percentage change basis, the ETF with the biggest outflow was the KESG ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
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14953.0
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2023-07-10 00:00:00 UTC
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Here's My Top Stock to Buy Now--And It's Not Even Close
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AAPL
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https://www.nasdaq.com/articles/heres-my-top-stock-to-buy-now-and-its-not-even-close
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nan
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The stock market has been in recovery mode this year after a dramatic sell-off in 2022 brought on by macroeconomic headwinds. Easing inflation has rallied investors and led the Nasdaq Composite index to rise 31% since Jan. 1. As a result, it's not a bad time to consider investing in solid growth stocks with a history of consistent gains before they rise higher.
Apple (NASDAQ: AAPL) is by far my top pick right now, with its potent brand and popular products likely to keep the company growing for decades. The tech giant's stock has soared 48% year to date, making it the first company to surpass a market cap of $3 trillion. However, the company still has a solid long-term outlook, making it a compelling buy to hold over the next decade.
Here's why Apple is my top stock to buy right now.
A stock that won't stop
There's been some criticism surrounding Apple's stock rise this year, with analysts pointing to its price-to-earnings ratio of 33, which indicates it's currently overvalued. The concern is well founded, and the company's shares are on the expensive side. However, its high price point further reflects the stability and low volatility of its stock.
In the first two quarters of 2023, Apple has reported year-over-year revenue declines of 5% and 3% as it recovers from an economically challenging 2022. Yet investors have continued to trust the long-term prospects of the company, keeping its stock trending up. While many companies might suffer significant stock declines after such earnings results, Wall Street sees Apple's short-term hurdles as investment opportunities.
Data by YCharts
The company's consistency is evident in its five-year stock growth. As seen in the chart above, Apple has enjoyed a significantly higher stock increase since 2018 than any other company in the "Big Five" of tech. Apple's focus on delivering high-quality products and services to consumers has granted it immense brand loyalty and allowed its business to continue on a growth path.
Over the long term, the company's leading market shares in multiple areas of its product lineup suggest it will retain its $3 trillion market cap, with the potential to soar far higher.
Slowly diversifying its earnings away from the iPhone
Apple's highest-earnings product by far is the iPhone. The smartphone segment regularly earns over 50% of its revenue, and has become a useful tool to attract consumers to its other offerings. However, with so much of Apple's business riding on the iPhone, it can feel risky to dedicate a large amount of your portfolio to the company. But the tech giant is on a path that is gradually allowing it to lean less on iPhone sales.
In 2019 Apple made a massive push into digital services with the launch of Apple TV+, Arcade, News+, and Fitness+. The company had already entered the industry with its Music platform in 2015, but the further expansion into subscription-based services has led its related segment to become the second-highest-earning part of its business. What's more, services revenue growth came to 14% last year, double the iPhone's growth.
Meanwhile, the digital side of the business provides attractive profit margins, with services hitting 72% in 2022. Comparatively, product profit margins came to 36% in the same period.
Moreover, the recent debut of Apple's first virtual/augmented reality (VR/AR) headset, the Vision Pro, could further diversify its earnings in the long run. The device has debuted at a starting price of $3,499, pricing out many consumers. However, future iterations of the device could see Apple bring down the price and make it more accessible to the masses. If done right, the Vision Pro has the potential to bolster the company's services business as consumers seek entertainment options for the headset and pave a path for Apple to become the leader of the high-growth VR/AR sector.
Apple is dominating consumer tech, which has allowed it to build a lucrative services business. As it continues to diversify its earnings, the company is easily one of the most reliable long-term investments available. Its P/E may be high, but holding its stock for the next five to ten years will likely offer far higher gains.
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 3, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. 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, 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 (NASDAQ: AAPL) is by far my top pick right now, with its potent brand and popular products likely to keep the company growing for decades. While many companies might suffer significant stock declines after such earnings results, Wall Street sees Apple's short-term hurdles as investment opportunities. Apple's focus on delivering high-quality products and services to consumers has granted it immense brand loyalty and allowed its business to continue on a growth path.
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Apple (NASDAQ: AAPL) is by far my top pick right now, with its potent brand and popular products likely to keep the company growing for decades. The tech giant's stock has soared 48% year to date, making it the first company to surpass a market cap of $3 trillion. A stock that won't stop There's been some criticism surrounding Apple's stock rise this year, with analysts pointing to its price-to-earnings ratio of 33, which indicates it's currently overvalued.
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Apple (NASDAQ: AAPL) is by far my top pick right now, with its potent brand and popular products likely to keep the company growing for decades. A stock that won't stop There's been some criticism surrounding Apple's stock rise this year, with analysts pointing to its price-to-earnings ratio of 33, which indicates it's currently overvalued. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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Apple (NASDAQ: AAPL) is by far my top pick right now, with its potent brand and popular products likely to keep the company growing for decades. However, the company still has a solid long-term outlook, making it a compelling buy to hold over the next decade. Meanwhile, the digital side of the business provides attractive profit margins, with services hitting 72% in 2022.
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14954.0
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2023-07-10 00:00:00 UTC
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AAPL Stock Spotlight: Apple Looks Juicy, but Beware the Worm
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AAPL
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https://www.nasdaq.com/articles/aapl-stock-spotlight%3A-apple-looks-juicy-but-beware-the-worm
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s tempting to just succumb to the overwhelmingly positive sentiment surrounding Apple (NASDAQ:AAPL) stock and just give it an “A” rating. Yet, we’re assigning the stock a “B” grade for now, because of potential issues concerning Apple’s smartphone sales.
Of course, we’re not detracting from Apple’s achievements. The company is among a handful of big-tech names leading this year’s stock-market rally.
However, it’s important for investors to see both sides of the issue before considering any share purchases or sales, even with a revered tech titan like Apple.
AAPL Stock’s Momentum Is Undeniable
As the financial press celebrates Apple’s astounding achievement of a $3 trillion market capitalization, one can only feel sorry for the perma-bulls and short-sellers.
As Wedbush analyst Dan Ives put it, the “Apple bears and skeptics continue to scratch their heads,” with many complaining about Apple’s apparently “‘broken growth story’ this year in a tougher backdrop to which we firmly believe the exact opposite has happened.”
With the bears continually being on the wrong side of the trade, it’s easy to find Apple bulls on Wall Street. For example, Citi analysts recently gave AAPL stock a “buy” rating and an ambitious price target of $240.
According to The Fly, the Citi analysts cited Apple’s “continued gross margin expansion” as a factor that Wall Street is apparently underestimating. The analysts observed Apple “consistently gaining share from Android phones.”
Apple’s Soft Smartphone Sales May Be a Concern
Clearly, Apple is a darling of the market right now. AAPL stock is likely to maintain its momentum in the short term. However, don’t assume that Apple is a perfect business with no issues.
UBS analyst David Vogt recently revealed a cautionary tone about Apple. He found that Apple’s iPhone “sell-through” for the month of May totaled 14.5 million units. That might sound like a lot of smartphones being sold. However, it’s Apple’s lowest monthly iPhone sell-through since August 2022.
This also marks eight consecutive months of decline, as well as a 2% decrease compared to May of 2022. Sell-through for iPhones in the U.S and Europe dropped 12% and 13%, respectively, on a year-over-year.
Apple is involved in a variety of businesses. Yet, smartphones are Apple’s bread and butter, so to speak. If Apple falters in this area, the tide of sentiment on Wall Street could turn against the company later this year. Vogt may have had this consideration in mind when he reduced his rating on AAPL stock from “buy” to “neutral.”
Don’t Fight the Trend With AAPL Stock
Apple is a favorite among today’s investors, so betting against it could be a costly mistake. Don’t be surprised, then, if Apple’s market cap continues to grow throughout the year.
Apple’s smartphone sales may be on the softer side. That’s a concern to remember, so there’s no need to over-leverage yourself on AAPL stock today. Instead, investors might think about holding their current Apple shares, or possibly adding just a few to their portfolios.
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.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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The post AAPL Stock Spotlight: Apple Looks Juicy, but Beware the Worm 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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AAPL Stock’s Momentum Is Undeniable As the financial press celebrates Apple’s astounding achievement of a $3 trillion market capitalization, one can only feel sorry for the perma-bulls and short-sellers. The $1 Investment You MUST Take Advantage of Right Now The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post AAPL Stock Spotlight: Apple Looks Juicy, but Beware the Worm appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s tempting to just succumb to the overwhelmingly positive sentiment surrounding Apple (NASDAQ:AAPL) stock and just give it an “A” rating.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s tempting to just succumb to the overwhelmingly positive sentiment surrounding Apple (NASDAQ:AAPL) stock and just give it an “A” rating. For example, Citi analysts recently gave AAPL stock a “buy” rating and an ambitious price target of $240. AAPL Stock’s Momentum Is Undeniable As the financial press celebrates Apple’s astounding achievement of a $3 trillion market capitalization, one can only feel sorry for the perma-bulls and short-sellers.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s tempting to just succumb to the overwhelmingly positive sentiment surrounding Apple (NASDAQ:AAPL) stock and just give it an “A” rating. AAPL Stock’s Momentum Is Undeniable As the financial press celebrates Apple’s astounding achievement of a $3 trillion market capitalization, one can only feel sorry for the perma-bulls and short-sellers. For example, Citi analysts recently gave AAPL stock a “buy” rating and an ambitious price target of $240.
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For example, Citi analysts recently gave AAPL stock a “buy” rating and an ambitious price target of $240. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s tempting to just succumb to the overwhelmingly positive sentiment surrounding Apple (NASDAQ:AAPL) stock and just give it an “A” rating. AAPL Stock’s Momentum Is Undeniable As the financial press celebrates Apple’s astounding achievement of a $3 trillion market capitalization, one can only feel sorry for the perma-bulls and short-sellers.
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14955.0
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2023-07-10 00:00:00 UTC
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US STOCKS-Nasdaq, S&P 500 futures slip ahead of inflation numbers
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-sp-500-futures-slip-ahead-of-inflation-numbers
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nan
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nan
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By Johann M Cherian and Bansari Mayur Kamdar
July 10 (Reuters) - The S&P 500 and the Nasdaq futures edged lower on Monday as investors stayed on the sidelines ahead of a key inflation report, while weak data out of China fanned worries of a looming economic slowdown.
All eyes will be on U.S. inflation data this week that will feed into the Federal Reserve's interest rate decision later in the month. A Reuters poll of economists showed they suspect that growth in consumer prices likely slowed in June.
Wall Street's main indexes ended the week lower on Friday after a mixed jobs report showed the domestic economy added fewest jobs in two-and-a-half years in June, although a decline in unemployment and higher-than-anticipated wage growth pointed to a still strong labor market.
Traders still expect the U.S. central bank to raise rates by 25 basis points later this month, but are divided on the rate hike trajectory for the rest of the year.
Most megacap technology and growth stocks, valuations in which come under pressure when borrowing costs rise, eased in premarket trading, with Apple AAPL.O and Alphabet GOOGL.O down 0.7% each.
The second-quarter earnings reporting period kicks off this week and investors will assess the impact of tight monetary conditions and fears of an impending economic slowdown on businesses.
Big banks such as JPMorgan Chase JPM.N and Citigroup C.N are expected to report on Friday. Investors expect the results to throw some light on the health of the lenders in the aftermath of the biggest crisis since 2008 earlier this year that pummeled the banking sector.
"The major concern is the rising Fed rates that will continue putting pressure on the U.S. banking system," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
"And the regional banks remain the most in danger."
Overall, earnings for the S&P 500 constituents are expected to fall 5.7% in the second quarter, Refintiv data showed.
At 07:00 a.m. ET, Dow e-minis 1YMcv1 were up 19 points, or 0.06%, S&P 500 e-minis EScv1 were down 4.5 points, or 0.1%, and Nasdaq 100 e-minis NQcv1 were down 41.25 points, or 0.27%.
U.S.-listed shares of Chinese automakers including Xpeng XPEV.N, Li Auto LI.O and NIO NIO.N fell between 0.8% and 2.5% after China Association of Auto Manufacturers (CAAM) retracted a pledge over the weekend to avoid "abnormal pricing".
Meanwhile, China's producer pricesfor June fell at their fastest pace in over seven years, while consumer prices teetered on the edge of deflation, adding to concerns about the health of the world's second-largest economy.
Ichan Enterprises IEP.O added 5.7% after a report said Carl Icahn and banks have finalized amended loan agreements that untie the activist investor's personal loans from the trading price of his firm.
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Saumyadeb Chakrabarty and Shinjini Ganguli)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most megacap technology and growth stocks, valuations in which come under pressure when borrowing costs rise, eased in premarket trading, with Apple AAPL.O and Alphabet GOOGL.O down 0.7% each. By Johann M Cherian and Bansari Mayur Kamdar July 10 (Reuters) - The S&P 500 and the Nasdaq futures edged lower on Monday as investors stayed on the sidelines ahead of a key inflation report, while weak data out of China fanned worries of a looming economic slowdown. The second-quarter earnings reporting period kicks off this week and investors will assess the impact of tight monetary conditions and fears of an impending economic slowdown on businesses.
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Most megacap technology and growth stocks, valuations in which come under pressure when borrowing costs rise, eased in premarket trading, with Apple AAPL.O and Alphabet GOOGL.O down 0.7% each. By Johann M Cherian and Bansari Mayur Kamdar July 10 (Reuters) - The S&P 500 and the Nasdaq futures edged lower on Monday as investors stayed on the sidelines ahead of a key inflation report, while weak data out of China fanned worries of a looming economic slowdown. Wall Street's main indexes ended the week lower on Friday after a mixed jobs report showed the domestic economy added fewest jobs in two-and-a-half years in June, although a decline in unemployment and higher-than-anticipated wage growth pointed to a still strong labor market.
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Most megacap technology and growth stocks, valuations in which come under pressure when borrowing costs rise, eased in premarket trading, with Apple AAPL.O and Alphabet GOOGL.O down 0.7% each. By Johann M Cherian and Bansari Mayur Kamdar July 10 (Reuters) - The S&P 500 and the Nasdaq futures edged lower on Monday as investors stayed on the sidelines ahead of a key inflation report, while weak data out of China fanned worries of a looming economic slowdown. Wall Street's main indexes ended the week lower on Friday after a mixed jobs report showed the domestic economy added fewest jobs in two-and-a-half years in June, although a decline in unemployment and higher-than-anticipated wage growth pointed to a still strong labor market.
|
Most megacap technology and growth stocks, valuations in which come under pressure when borrowing costs rise, eased in premarket trading, with Apple AAPL.O and Alphabet GOOGL.O down 0.7% each. By Johann M Cherian and Bansari Mayur Kamdar July 10 (Reuters) - The S&P 500 and the Nasdaq futures edged lower on Monday as investors stayed on the sidelines ahead of a key inflation report, while weak data out of China fanned worries of a looming economic slowdown. Traders still expect the U.S. central bank to raise rates by 25 basis points later this month, but are divided on the rate hike trajectory for the rest of the year.
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14956.0
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2023-07-10 00:00:00 UTC
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Why Buying The Dip In Alphabet (Google) Could Yield Big Returns
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AAPL
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https://www.nasdaq.com/articles/why-buying-the-dip-in-alphabet-google-could-yield-big-returns
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nan
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nan
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Alphabet shares (NASDAQ: GOOGL) are finding support at a previous area of resistance, pointing toward a potential upside in the stock if buyers can continue to stand firm. On the year, shares of the tech giant are up 35.42%, trading near a previous breakout level of $116. The stock has shown relative strength to the broader market and is trading near an attractive risk: reward long entry if the uptrend remains intact.
The Relative Strength In GOOGL
Year-to-date, the shares of GOOGL have experienced an impressive increase of 35.42%, clearly surpassing the performance of the benchmark SPDR S&P 500 ETF Trust (NYSE: SPY), which has gained a respectable 14.67% during the same period. However, this growth is not limited to just the current year. Since hitting its lowest point in March 2020, GOOGL has surged 91.43%, demonstrating its resilience and ability to outpace the market. The SPY has also witnessed a notable increase of 59.84% during the same timeframe. These impressive figures highlight the remarkable relative strength and outperformance of GOOGL, making it a standout performer in the market.
Regarding performance, GOOGL is closely aligned with the Invesco QQQ (NASDAQ: QQQ) ETF, as both have witnessed significant growth. The technology-focused QQQ ETF has surged by an impressive 37.54% year-to-date. Within the ETF, GOOGL holds a substantial weighting of 7.41% when combining its class A and C common stock. This places GOOGL among the top holdings in the ETF, with only Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) boasting higher weightings.
Heavy Institutional Buying Over 12 Months
Over the last twelve months, GOOGL has experienced tremendous institutional buying, thanks to last year's third quarter. In the previous twelve months, total institutional inflows have been $234.70 billion and $18.92 billion in outflows. $192 billion of the total inflow came in the third quarter of last year.
Analyst Predict Upside
GOOGL has a Moderate Buy rating based on 37 analyst ratings and a consensus price target of $129.54, which predicts an 8.42% upside. The stock has a high price target prediction of $160 and a low prediction of $113.
Month over month, since April, analysts have been steadily reducing their Rating from Buy to Hold. In April, 34 analysts had GOOGL as a Buy. That figure decreased to 32 in June and is currently 29. Currently, 29 analysts have GOOGL as a Buy, 7 as a Hold, and 1 as a Strong Buy.
Technical Analysis
Between May and September last year, shares of GOOGL resisted the $120 area and failed to hold above on four separate attempts, thereby turning that area into a significant resistance zone. After breaking out in May, the stock broke above $120 resistance and has since firmly held above. Short-term key moving averages have converged as the stock has consolidated near the level, like the 5-day SMA and 50-day SMA.
Together with the contraction in range and volume, a breakout in the stock seems likely to be an outcome. If the volume can increase and GOOGL can break over last week's high of $122.61, the breakout will be confirmed, and a move toward $130 could be achievable in the short term. Of course, given the stock's close correlation to the QQQs, keeping an eye on the broader sector and the ETF will be important.
The views and 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 places GOOGL among the top holdings in the ETF, with only Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) boasting higher weightings. Alphabet shares (NASDAQ: GOOGL) are finding support at a previous area of resistance, pointing toward a potential upside in the stock if buyers can continue to stand firm. The stock has shown relative strength to the broader market and is trading near an attractive risk: reward long entry if the uptrend remains intact.
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This places GOOGL among the top holdings in the ETF, with only Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) boasting higher weightings. Regarding performance, GOOGL is closely aligned with the Invesco QQQ (NASDAQ: QQQ) ETF, as both have witnessed significant growth. Heavy Institutional Buying Over 12 Months Over the last twelve months, GOOGL has experienced tremendous institutional buying, thanks to last year's third quarter.
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This places GOOGL among the top holdings in the ETF, with only Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) boasting higher weightings. Alphabet shares (NASDAQ: GOOGL) are finding support at a previous area of resistance, pointing toward a potential upside in the stock if buyers can continue to stand firm. Heavy Institutional Buying Over 12 Months Over the last twelve months, GOOGL has experienced tremendous institutional buying, thanks to last year's third quarter.
|
This places GOOGL among the top holdings in the ETF, with only Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) boasting higher weightings. These impressive figures highlight the remarkable relative strength and outperformance of GOOGL, making it a standout performer in the market. Regarding performance, GOOGL is closely aligned with the Invesco QQQ (NASDAQ: QQQ) ETF, as both have witnessed significant growth.
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14957.0
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2023-07-10 00:00:00 UTC
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Should Vanguard Russell 1000 ETF (VONE) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-etf-vone-be-on-your-investing-radar-8
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nan
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nan
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The Vanguard Russell 1000 ETF (VONE) was launched on 09/22/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $3.66 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
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.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.43%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.50% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.99% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
Performance and Risk
VONE seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of large-capitalization stocks in the United States.
The ETF has added about 15.31% so far this year and is up roughly 14.12% in the last one year (as of 07/10/2023). In the past 52-week period, it has traded between $162.86 and $201.68.
The ETF has a beta of 1.02 and standard deviation of 18.53% for the trailing three-year period, making it a medium risk choice in the space. With about 1014 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VONE is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $331.90 billion in assets, SPDR S&P 500 ETF has $419.95 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
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.
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 Russell 1000 ETF (VONE): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.99% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Vanguard Russell 1000 ETF (VONE) was launched on 09/22/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.99% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). The Vanguard Russell 1000 ETF (VONE) was launched on 09/22/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.99% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.99% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Vanguard Russell 1000 ETF (VONE) was launched on 09/22/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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14958.0
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2023-07-10 00:00:00 UTC
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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-core-sp-u.s.-growth-etf-iusg-a-strong-etf-right-now-8
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nan
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nan
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Making its debut on 07/24/2000, smart beta exchange traded fund iShares Core S&P U.S. Growth ETF (IUSG) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $13.59 billion, making it one of the largest ETFs in the Style Box - All Cap Growth. This particular fund seeks to match the performance of the S&P 900 Growth Index before fees and expenses.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.04% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For IUSG, it has heaviest allocation in the Information Technology sector --about 35.30% of the portfolio --while Healthcare and Consumer Discretionary round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 12.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 40.17% of total assets under management.
Performance and Risk
The ETF has gained about 18.94% and is up about 11.21% so far this year and in the past one year (as of 07/10/2023), respectively. IUSG has traded between $78.88 and $99.02 during this last 52-week period.
IUSG has a beta of 1.05 and standard deviation of 22.12% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 476 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Morningstar U.S. Equity ETF (ILCB) tracks MORNINGSTAR US LARGE-MID CAP INDEX and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. IShares Morningstar U.S. Equity ETF has $779.55 million in assets, iShares Morningstar Growth ETF has $1.74 billion. ILCB has an expense ratio of 0.03% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Core S&P U.S. Growth ETF (IUSG): 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 Morningstar U.S. Equity ETF (ILCB): ETF Research Reports
iShares Morningstar Growth ETF (ILCG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 12.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): 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 Morningstar U.S. Equity ETF (ILCB): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
|
Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): 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 Morningstar U.S. Equity ETF (ILCB): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 12.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Making its debut on 07/24/2000, smart beta exchange traded fund iShares Core S&P U.S. Growth ETF (IUSG) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): 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 Morningstar U.S. Equity ETF (ILCB): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 12.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Making its debut on 07/24/2000, smart beta exchange traded fund iShares Core S&P U.S. Growth ETF (IUSG) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 12.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): 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 Morningstar U.S. Equity ETF (ILCB): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 07/24/2000, smart beta exchange traded fund iShares Core S&P U.S. Growth ETF (IUSG) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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14959.0
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2023-07-10 00:00:00 UTC
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Is Visa Stock a Buy?
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AAPL
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https://www.nasdaq.com/articles/is-visa-stock-a-buy-1
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nan
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nan
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Visa (NYSE: V) is the world's leading payments processing network, servicing over 200 countries and handling more than $14.3 trillion in payment volume in the 12 months ending on March 31. Through its extensive reach and brand recognition, Visa has become a household name and quintessential blue chip stock.
Few people would argue that it isn't a great business. But being a great business doesn't make a stock a no-brainer investment. Does that apply to Visa? Let's see.
Competitors won't catch up to its reach anytime soon
When it comes to businesses you can feel comfortable holding for the long term, a lot comes down to their competitive moat. Without it, a company's longevity is consistently at risk, since it could struggle to hold on to its market position and profitability in the face of increased competition.
In Visa's case, its competitive moat is its vast reach. At the end of 2022, Visa has over 100 million merchant locations, almost 40 million more than just a few years ago.
If you own an American Express or Discover credit card, there's a good chance you have run into a merchant, retailer, or restaurant that didn't accept your card. But I'll bet that none of those places refused Visa. Its vast reach is to thank for that.
With the head start Visa has and its impressive growth rates, it's very unlikely one of its competitors will match that reach anytime in the foreseeable future. Add in the growing demand for electronic payments as the world progressively becomes more digital, and the company is in a good position to thrive over the long term.
You can't argue with its financials
In the second quarter of 2023, Visa made $8 billion in revenue, up 11% year over year. In its fiscal 2022, it made $29.3 billion, up 22% from the year prior. Its 2022 revenue got a boost from higher inflation (Visa takes a percentage of transactions, so higher transaction totals equal more revenue). And the company is a cash cow because of its high margins.
The company's large network didn't happen overnight; it's a by-product of lots of investment. But many of these investments were made years ago, so Visa now gets to reap the rewards with minimal added costs.
Few companies' margins are remotely comparable. The chart below shows how lucrative a position Visa is in with its industry and business model.
V Profit Margin data by YCharts
The stock isn't necessarily cheap
Shares have been impressive over the last decade, more than doubling the returns of the S&P 500. The stock has been lucrative for investors who have been along for the ride, but it could make prospective investors hesitant as it reaches levels many would consider expensive.
Its price-to-earnings ratio is 31.6; the S&P 500's is around 19.6, and American Express and Discover are about 17.8 and 7.8, respectively.
However, when it comes to Visa, I view it through the lens of whether you would feel comfortable holding it for the next 20 years. And the answer is yes. It might not be cheap, but I'm confident it has the long-term growth potential to warrant its valuation.
If you're worried about current prices, consider dollar-cost averaging your way into a stake instead of investing a lump sum.
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 3, 2023
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. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Nike, Visa, Walmart, and Walt Disney. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, and short January 2024 $155 calls on Walt Disney. 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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Competitors won't catch up to its reach anytime soon When it comes to businesses you can feel comfortable holding for the long term, a lot comes down to their competitive moat. Add in the growing demand for electronic payments as the world progressively becomes more digital, and the company is in a good position to thrive over the long term. V Profit Margin data by YCharts The stock isn't necessarily cheap Shares have been impressive over the last decade, more than doubling the returns of the S&P 500.
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See the 10 stocks *Stock Advisor returns as of July 3, 2023 Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Nike, Visa, Walmart, and Walt Disney. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, and short January 2024 $155 calls on Walt Disney.
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You can't argue with its financials In the second quarter of 2023, Visa made $8 billion in revenue, up 11% year over year. See the 10 stocks *Stock Advisor returns as of July 3, 2023 Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, and short January 2024 $155 calls on Walt Disney.
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But being a great business doesn't make a stock a no-brainer investment. Competitors won't catch up to its reach anytime soon When it comes to businesses you can feel comfortable holding for the long term, a lot comes down to their competitive moat. You can't argue with its financials In the second quarter of 2023, Visa made $8 billion in revenue, up 11% year over year.
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14960.0
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2023-07-10 00:00:00 UTC
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1 FAANG Stock That's a Surefire Buy in July and 1 to Avoid Like the Plague
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AAPL
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https://www.nasdaq.com/articles/1-faang-stock-thats-a-surefire-buy-in-july-and-1-to-avoid-like-the-plague
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nan
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nan
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Investors have been taken on quite the ride by Wall Street over the past two years. They've seen the major stock indexes claim all-time highs, hurtle into a bear market, and now bounce back at a ferocious pace.
As is standard when stock market volatility picks up, investors have responded by gravitating to the FAANG stocks.
When I refer to "FAANG," I'm talking about:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Image source: Getty Images.
The FAANGs are industry-leading businesses that have crushed the broader market over the trailing-10-year period. Whereas the benchmark S&P 500 is up by a respectable 170% over the trailing decade, Alphabet (Class A shares, GOOGL), Amazon, Meta Platforms, Apple, and Netflix are respectively higher by 438%, 798%, 1,100%, 1,190%, and 1,260% over the same period.
These are also companies with seemingly sustained catalysts and massive moats.
Meta Platforms' social media real estate is unrivaled, with 3.81 billion monthly active users visiting its family of apps during the March-ended quarter.
Apple accounts for around half of all U.S. smartphone market share and has the most impressive capital-return program on the planet.
Amazon's e-commerce marketplace brings in approximately $0.40 of every $1 spent in U.S. online retail sales.
Netflix pivoted its first-mover advantages in the streaming space into the No. 1 share in domestic and international markets.
Alphabet's internet search engine, Google, is responsible for nearly 93% of worldwide search share.
Despite being industry leaders and outperformers, no two FAANG stocks are the same. As we move into July, one FAANG remains historically inexpensive and offers abundant upside, while another looks entirely avoidable.
The FAANG stock that's a surefire buy in July: Amazon
Among the FAANGs, it's e-commerce behemoth Amazon that stands out as a surefire buy for patient investors in July.
As with all stocks, Amazon does have headwinds it's contending with. For example, numerous economic indicators suggest there's an above-average likelihood of a U.S. recession taking shape in the coming months or quarters. Amazon generates a lot of its revenue from its online marketplace. During recessions, it's normal for consumer and enterprise buying activity to slow, which would undoubtedly be bad news for the company's online retail sales.
The other big challenge for Amazon is that it's not cheap in the traditional sense of the word. Amazon's management team has always been big on reinvesting back into the business, which comes at a cost to the company's bottom line. Investors tend to pay closer attention to valuation during and immediately after a bear market.
While both of these headwinds are tangible and shouldn't be swept under the rug, neither makes a particularly strong case to avoid Amazon. If investors do a bit of digging into what's really spinning the wheels for this company, there's a good chance they'll see the same value I do.
Perhaps the most overlooked aspect of Amazon is that its top revenue segment -- the e-commerce marketplace -- is of relatively low importance to its cash flow generation. What's far more important for Amazon is that its three significantly higher-margin ancillary divisions are firing on all cylinders.
For instance, Amazon Web Services (AWS) is the world's No. 1 cloud infrastructure service provider, with a 32% share in the March-ended quarter, according to estimates from Canalys. Enterprise cloud spending is still in its early stages and offers sustained double-digit growth potential. More importantly, cloud service margins can run circles around online retail margins. Despite accounting for roughly a sixth of Amazon's net sales, AWS regularly generates the lion's share of the company's operating income.
The same can be said for subscriptions services, which is another sustainably fast-growing, cash-cow segment for Amazon. More than 200 million people worldwide have signed up for Prime, as of April 2021, and this figure has more than likely increased since Amazon landed the exclusive rights to Thursday Night Football.
Advertising services is the third segment of importance. Amazon is one of the most-trafficked websites on the planet, making it a logical target for advertisers wanting to target users. Over the past six reported quarters (Q4 2021-Q1 2023), advertising services have grown by no less than 21% on a year-over-year, currency-neutral basis.
The key point here is that cash flow matters far more to Amazon's future any other metric. During the 2010s, Amazon closed out every year trading at 23 to 37 times its cash flow. By comparison, investors can purchase shares of Amazon right now for 17 times consensus cash flow for 2023, 13 times forecast cash flow for 2024, and roughly 9 times projected cash flow for 2026. Amazon's stock is cheaper than it's ever been.
Image source: Apple.
The FAANG stock to avoid like the plague in July: Apple
However, not all FAANG stocks are necessarily going to be winners. Although tech stock Apple powered through the $3 trillion market cap mark to close out the first half of the year, it's the FAANG stock that's worth avoiding like the plague in July.
To be clear, a company doesn't reach a $3 trillion valuation by accident. Apple has had plenty of catalysts working in its favor for quite some time. As noted, it's the undisputed leader in smartphone sales in the United States. Since introducing a 5G-capable iPhone, Apple has seen its quarterly share of U.S. smartphone sales jump to as much as 60%.
Apple is also making significant headway with its services segment. CEO Tim Cook is overseeing a natural evolution of Apple's operations that should further increase customer loyalty, improve the company's operating margin over time, and somewhat minimize the sales fluctuations observed during major iPhone replacement cycles.
However, it's pretty much impossible to pitch Apple as a good value at the moment given what we're seeing in the company's quarterly operating results and its guidance.
From the start of 2013 through 2018, investors had the opportunity to buy shares of Apple for between 10 and 15 times forward-year earnings. With Apple averaging a double-digit growth rate and its iPhones flying off store shelves, this proved to be a phenomenal deal.
At the moment, investors would have to pay 31 times Wall Street's consensus earnings for fiscal 2023 (Apple's fiscal year ends in late September) and a multiple of 28 times forward-year earnings to own shares of the United States' largest publicly traded company. The kicker is Apple's sales and profits are both slated to decline by around 2% in fiscal 2023 -- even with the help of above-average inflation.
Apple's issues are twofold. First, personal-computing sales have fallen off a cliff as life returns to some semblance of normal following the worst of the COVID-19 pandemic. Sales of Mac in the first half of fiscal 2023 are down nearly 30%. Secondly, Apple's iPhone 14 didn't ramp as expected, with iPhone sales $5.1 billion below where they were at this time last year.
To build on the above, Apple's recently introduced virtual reality glasses, known as the Vision Pro, may disappoint. According to a report from The Financial Times, two people familiar with the company, along with Apple's Chinese manufacturer, told FT that it only plans to produce 400,000 units instead of the 1 million units it had hoped to sell.
It's been a long time since Apple was as fundamentally unattractive as it is now, which is what makes it an easy avoid in July.
Find out why Amazon.com 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. Amazon.com is on the list -- but there are nine others you may be overlooking.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When I refer to "FAANG," I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. Meta Platforms' social media real estate is unrivaled, with 3.81 billion monthly active users visiting its family of apps during the March-ended quarter. During recessions, it's normal for consumer and enterprise buying activity to slow, which would undoubtedly be bad news for the company's online retail sales.
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When I refer to "FAANG," I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. By comparison, investors can purchase shares of Amazon right now for 17 times consensus cash flow for 2023, 13 times forecast cash flow for 2024, and roughly 9 times projected cash flow for 2026. At the moment, investors would have to pay 31 times Wall Street's consensus earnings for fiscal 2023 (Apple's fiscal year ends in late September) and a multiple of 28 times forward-year earnings to own shares of the United States' largest publicly traded company.
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When I refer to "FAANG," I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. The FAANG stock that's a surefire buy in July: Amazon Among the FAANGs, it's e-commerce behemoth Amazon that stands out as a surefire buy for patient investors in July. By comparison, investors can purchase shares of Amazon right now for 17 times consensus cash flow for 2023, 13 times forecast cash flow for 2024, and roughly 9 times projected cash flow for 2026.
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When I refer to "FAANG," I'm talking about: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. Advertising services is the third segment of importance. At the moment, investors would have to pay 31 times Wall Street's consensus earnings for fiscal 2023 (Apple's fiscal year ends in late September) and a multiple of 28 times forward-year earnings to own shares of the United States' largest publicly traded company.
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14961.0
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2023-07-10 00:00:00 UTC
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Dow Movers: MSFT, HON
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-msft-hon
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nan
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nan
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In early trading on Monday, shares of Honeywell International topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.8%. Year to date, Honeywell International has lost about 3.5% of its value.
And the worst performing Dow component thus far on the day is Microsoft, trading down 1.9%. Microsoft is showing a gain of 37.9% looking at the year to date performance.
Two other components making moves today are Apple, trading down 1.2%, and Amgen, trading up 1.7% on the day.
VIDEO: Dow Movers: MSFT, HON
The views and 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 early trading on Monday, shares of Honeywell International topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.8%. And the worst performing Dow component thus far on the day is Microsoft, trading down 1.9%. Microsoft is showing a gain of 37.9% looking at the year to date performance.
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In early trading on Monday, shares of Honeywell International topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.8%. Year to date, Honeywell International has lost about 3.5% of its value. And the worst performing Dow component thus far on the day is Microsoft, trading down 1.9%.
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In early trading on Monday, shares of Honeywell International topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.8%. And the worst performing Dow component thus far on the day is Microsoft, trading down 1.9%. Two other components making moves today are Apple, trading down 1.2%, and Amgen, trading up 1.7% on the day.
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In early trading on Monday, shares of Honeywell International topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.8%. And the worst performing Dow component thus far on the day is Microsoft, trading down 1.9%. VIDEO: Dow Movers: MSFT, HON The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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14962.0
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2023-07-09 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-50
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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
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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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14963.0
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2023-07-09 00:00:00 UTC
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Is Taiwan Semiconductor Stock a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-taiwan-semiconductor-stock-a-buy-now-0
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nan
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nan
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Taiwan Semiconductor (NYSE: TSM) has become one of the most important companies in the world, producing computer chips for Apple, NVIDIA, and even Intel. In this video, Travis Hoium covers the company's incredible margins and shows why the stock is cheap for investors today.
*Stock prices used were end-of-day prices of July 5, 2023. The video was published on July 7, 2023.
10 stocks we like better than Taiwan Semiconductor Manufacturing
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 3, 2023
Travis Hoium has positions in Apple and Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy. 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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Taiwan Semiconductor (NYSE: TSM) has become one of the most important companies in the world, producing computer chips for Apple, NVIDIA, and even Intel. In this video, Travis Hoium covers the company's incredible margins and shows why the stock is cheap for investors today. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing.
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See the 10 stocks *Stock Advisor returns as of July 3, 2023 Travis Hoium has positions in Apple and Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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10 stocks we like better than Taiwan Semiconductor Manufacturing When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of July 3, 2023 Travis Hoium has positions in Apple and Intel. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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See the 10 stocks *Stock Advisor returns as of July 3, 2023 Travis Hoium has positions in Apple and Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. Their opinions remain their own and are unaffected by The Motley Fool.
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14964.0
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2023-07-09 00:00:00 UTC
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Can Shiba Inu Reach $1?
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AAPL
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https://www.nasdaq.com/articles/can-shiba-inu-reach-%241-9
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nan
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nan
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Even though Shiba Inu (CRYPTO: SHIB) is down nearly 92% from an all-time high in October 2021, investors are still holding out hope that this popular meme coin will have one more explosive rally.
Certainly, Shiba Inu does have a very passionate community of supporters and investors. But does Shiba Inu, which recently traded at just $0.000007482, have enough explosive upside to make the move to the $1 mark? There are two important factors to consider.
Coin supply
The first factor to keep in mind is Shiba Inu's circulating coin supply, which is currently 589 trillion. This is a massive number, and the biggest reason why Shiba Inu is still trading at such a low price. Dividing any market cap number -- no matter how big -- by an unfathomably large number like 589 trillion will always give you a very, very small number. It's just simple mathematics.
Image source: Getty Images.
For example, if Shiba Inu were ever to reach the $1 price level, it would imply a market cap of $589 trillion based on the current supply. That's a ridiculously large number, given that the total market cap of the entire crypto market is just over $1 trillion today.
Moreover, think about a market cap comparison with Apple (NASDAQ: AAPL), currently the world's most valuable company. In June, Apple hit a market cap of $3 trillion. So, even if you think that Shiba Inu is just as valuable as Apple, this would require the total circulating coin supply of Shiba Inu to shrink by 99.5%, in order to bring it down to 3 trillion.
Granted, Shiba Inu has embarked on a number of coin burning campaigns in order to bring down the total circulating supply. But, as seen in the examples above, even removing tens of billions of coins from the circulating supply is really just a drop in the bucket.
Utility
The other big factor for Shiba Inu involves "utility." This is a popular crypto buzzword to describe a crypto that actually has real-world value. In all fairness, it is possible to use Shiba Inu for some online payments, so that is a form of utility. For example, you can now pay for some airline flights with Shiba Inu. And, if you're a crypto millionaire, some Gucci stores in the U.S. now accept Shiba Inu. But those are really just outlier examples. You can't, for example, go to your local supermarket and pay with Shiba Inu.
The real utility for Shiba Inu is a new project called Shibarium. This is a Layer 2 blockchain that is designed to make Shiba Inu run faster and more efficiently. The goal is to bring down transaction fees, improve overall efficiency, and make it more attractive to develop on the Shiba Inu blockchain. The ultimate goal is to have hundreds of new projects, including new metaverse and Web3 projects, helping to create new value for Shiba Inu.
From my perspective, the upcoming public launch of Shibarium is the primary growth catalyst for Shiba Inu. Right now, Shibarium is still in test mode, with the official launch now expected to be sometime in mid-August. If Shibarium can announce a few big partnerships early, that could be a big win for Shiba Inu. Moreover, a new coin burning mechanism will likely be included as part of Shibarium, which should help with the coin supply problem. Every time a new transaction takes place on the blockchain, a small amount of Shiba Inu will be removed from the total supply.
Is there a path to $1?
Investing in Shiba Inu now is a highly speculative endeavor. While some short-term upside momentum might be possible with the launch of Shibarium, the long-term future of Shiba Inu will always be determined by its coin supply. Until Shiba Inu can find a way to bring its coin supply down to a reasonable level, it's mathematically impossible for the price of Shiba Inu to reach the $1 mark.
Keep in mind, too, that the market for meme coins is very crowded right now. When Shiba Inu originally launched in 2020, it did so primarily with Dogecoin (CRYPTO: DOGE) as its only competition. But now there are many different dog-themed meme coin competitors. Add in the fact that many crypto speculators seem to have moved on to Bitcoin Ordinals, and I'm highly skeptical about any sort of super-rally that would send Shiba Inu soaring to the $1 mark anytime soon.
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.
See the 10 stocks
*Stock Advisor returns as of July 3, 2023
Dominic Basulto has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, think about a market cap comparison with Apple (NASDAQ: AAPL), currently the world's most valuable company. Even though Shiba Inu (CRYPTO: SHIB) is down nearly 92% from an all-time high in October 2021, investors are still holding out hope that this popular meme coin will have one more explosive rally. For example, if Shiba Inu were ever to reach the $1 price level, it would imply a market cap of $589 trillion based on the current supply.
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Moreover, think about a market cap comparison with Apple (NASDAQ: AAPL), currently the world's most valuable company. Coin supply The first factor to keep in mind is Shiba Inu's circulating coin supply, which is currently 589 trillion. So, even if you think that Shiba Inu is just as valuable as Apple, this would require the total circulating coin supply of Shiba Inu to shrink by 99.5%, in order to bring it down to 3 trillion.
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Moreover, think about a market cap comparison with Apple (NASDAQ: AAPL), currently the world's most valuable company. Coin supply The first factor to keep in mind is Shiba Inu's circulating coin supply, which is currently 589 trillion. So, even if you think that Shiba Inu is just as valuable as Apple, this would require the total circulating coin supply of Shiba Inu to shrink by 99.5%, in order to bring it down to 3 trillion.
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Moreover, think about a market cap comparison with Apple (NASDAQ: AAPL), currently the world's most valuable company. Even though Shiba Inu (CRYPTO: SHIB) is down nearly 92% from an all-time high in October 2021, investors are still holding out hope that this popular meme coin will have one more explosive rally. But does Shiba Inu, which recently traded at just $0.000007482, have enough explosive upside to make the move to the $1 mark?
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14965.0
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2023-07-08 00:00:00 UTC
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The Nasdaq Had Its Best First Half in 40 Years: History Says This Will Happen Next
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AAPL
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https://www.nasdaq.com/articles/the-nasdaq-had-its-best-first-half-in-40-years%3A-history-says-this-will-happen-next
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Investor sentiment has improved substantially year to date as cooling inflation, a resilient labor market, and stronger-than-expected economic growth have mitigated recession fears to some degree. By no means has the possibility of a recession disappeared, but all three major U.S. stock indexes still increased in value in the first half of 2023.
The blue chip Dow Jones Industrial Average jumped 3.8%, and the broad-based S&P 500 increased 15.9%. But the technology-centric Nasdaq Composite (NASDAQINDEX: ^IXIC) stole the spotlight by soaring 31.7%. That was the index's best first half since 1983 and its third best since its inception in 1971.
Here's what history says will happen next.
History says the Nasdaq could decline in the short term
The Nasdaq Composite's phenomenal performance in the first half of 2023 is only outshone by its returns in two other years: 1975 and 1983. However, the technology-heavy index declined in the second half of both those years. Specifically, it fell 10.8% in the latter half of 1975 after skyrocketing 43.4% during the first. And it fell 13.4% during the second half of 1983 after climbing 38.2% earlier in the year.
Two data points hardly qualify as a pattern, and investors should remember that past results never guarantee future returns, but there is no denying the Nasdaq could decline during the latter half of 2023. Historically, during years when the index rose more than 30% in the first half, it also dropped by an average of 12.1% in the second half.
But there is some good news for patient investors.
History says the Nasdaq is headed higher in the long term
The Nasdaq Composite has battled three recessions and several monumental market crashes in the last 30 years, but the index still returned 1,840% (or 10.4% annually) during that time period, more than doubling the overall return of the S&P 500. Investors have good reason to believe that outperformance will continue. Three decades' worth of data certainly qualifies as a pattern.
Patient investors can capitalize on that by periodically purchasing shares of a Nasdaq Composite index fund. The Fidelity Nasdaq Composite Index ETF (NASDAQ: ONEQ) measures the performance of more than 1,000 growth stocks, many of which come from the information technology sector. The fund provides exposure to some of the largest and most innovative companies in the world, meaning fundholders are well positioned to benefit from explosive growth in areas like artificial intelligence (AI), cloud computing, and digital advertising.
Details on the top five holdings are provided below.
1. Apple (NASDAQ: AAPL) has a strong market presence in smartphones, tablets, and smartwatches, and its services business is thriving atop an installed base of 2 billion active devices. For instance, Apple runs the most popular mobile app store in the world, and Apple Pay is the most popular in-store mobile wallet in the U.S.
2. Microsoft (NASDAQ: MSFT) is the market leader in several enterprise software categories, including business intelligence, enterprise resource planning, office productivity, and certain cybersecurity verticals. Microsoft Azure is also the second-largest cloud computing business in the world, and its exclusive partnership with OpenAI could be a meaningful growth driver.
3. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is the largest adtech company in the world due to the popularity of web properties like Google Search and YouTube. Alphabet also runs the third-largest cloud computing business in the world, and its subsidiary Waymo was the first company to launch a commercial autonomous ride-hailing service.
4. Amazon (NASDAQ: AMZN) runs the most visited online marketplace on the planet, and its ability to engage consumers and collect shopper data has helped it become the third-largest adtech company in the world. Additionally, Amazon Web Services has led the cloud computing market for 12 consecutive years.
5. Nvidia (NASDAQ: NVDA) is the market leader in workstation graphics and supercomputer accelerators, and its graphics processing units are the gold standard in AI infrastructure. Nvidia has also branched into subscription software products and cloud services, building on its brand authority as a chipmaker. Those products further its ability to capitalize on trends like machine learning, robotics, virtual reality, and the metaverse.
Here's the bottom line: The Nasdaq Composite may or may not decline in the second half of 2023, but history says patient investors who buy and hold a Nasdaq Composite index fund will be well rewarded over the long term.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Fidelity Commonwealth Trust-Fidelity Nasdaq Composite Index ETF 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
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. Trevor Jennewine has positions in Amazon.com and Nvidia. 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 a strong market presence in smartphones, tablets, and smartwatches, and its services business is thriving atop an installed base of 2 billion active devices. Investor sentiment has improved substantially year to date as cooling inflation, a resilient labor market, and stronger-than-expected economic growth have mitigated recession fears to some degree. The fund provides exposure to some of the largest and most innovative companies in the world, meaning fundholders are well positioned to benefit from explosive growth in areas like artificial intelligence (AI), cloud computing, and digital advertising.
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Apple (NASDAQ: AAPL) has a strong market presence in smartphones, tablets, and smartwatches, and its services business is thriving atop an installed base of 2 billion active devices. Here's the bottom line: The Nasdaq Composite may or may not decline in the second half of 2023, but history says patient investors who buy and hold a Nasdaq Composite index fund will be well rewarded over the long term. 10 stocks we like better than Fidelity Commonwealth Trust-Fidelity Nasdaq Composite Index ETF When our analyst team has a stock tip, it can pay to listen.
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Apple (NASDAQ: AAPL) has a strong market presence in smartphones, tablets, and smartwatches, and its services business is thriving atop an installed base of 2 billion active devices. History says the Nasdaq could decline in the short term The Nasdaq Composite's phenomenal performance in the first half of 2023 is only outshone by its returns in two other years: 1975 and 1983. History says the Nasdaq is headed higher in the long term The Nasdaq Composite has battled three recessions and several monumental market crashes in the last 30 years, but the index still returned 1,840% (or 10.4% annually) during that time period, more than doubling the overall return of the S&P 500.
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Apple (NASDAQ: AAPL) has a strong market presence in smartphones, tablets, and smartwatches, and its services business is thriving atop an installed base of 2 billion active devices. Patient investors can capitalize on that by periodically purchasing shares of a Nasdaq Composite index fund. Here's the bottom line: The Nasdaq Composite may or may not decline in the second half of 2023, but history says patient investors who buy and hold a Nasdaq Composite index fund will be well rewarded over the long term.
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14966.0
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2023-07-08 00:00:00 UTC
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What Delta and General Mills Reveal About the Economy
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AAPL
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https://www.nasdaq.com/articles/what-delta-and-general-mills-reveal-about-the-economy
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In this podcast, Motley Fool senior analyst Bill Barker and host Ricky Mulvey discuss:
Delta's investor day and rosy profit guidance.
General Mills hitting a pricing-power limit.
How Costco is solving its free-rider problem.
AutoZone's CEO, Bill Rhodes, stepping down and the retailer's "unappreciated" success story.
Plus Motley Fool senior analyst Jason Moser and contributor Matt Frankel check in on regional banks, and Apple's consumer finance play.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Costco Wholesale 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 June 30, 2023
This video was recorded on June 28, 2023.
Ricky Mulvey: Pricing power at the grocery store may finally be hitting a wall. You're listening to Motley Fool Money.
[music]
Joining us now is Bill Barker. Bill, good to see you.
Bill Barker: Good to be here. Thanks for having me.
Ricky Mulvey: Let's start with Delta's investor day. Delta Airlines held that on Tuesday, where it bumped earnings by a smidge and free cash flow generation guidance by a billion dollars, from $2 billion to $3 billion. Bill, a lot of that margin revenue comes from the Delta SkyMiles card. When you look at these numbers, is this a travel rebound story, a consumer debt story, or maybe a little bit of both?
Bill Barker: I suppose a little bit of both. Although I think investors in Delta are going to want to focus on the travel rebound part of the story, which is pretty positive. I think that the industry association is now predicting that 2023 is going to come close, not quite match 2019's levels of travelers and revenue. We're not back to pre-pandemic levels.
There's good reason for that, with business travel still being, I would say, highly curtailed fighting against the pent-up vacation and individual travel stories. It's certainly much better levels than last year, and Delta's investor day put a spotlight on that, and the work isn't finished, but it's a lot closer to being back to where it was than it has been for a long time.
Ricky Mulvey: One of the surprising pieces, to me, was the rebound, especially for those premium seats on Delta flights. That's where they drive a lot of revenue and margin. The story was, is that that was supposed to stay down. In the hybrid work model, businesses continue to cut travel spending. But Delta says that's where it's driving a lot of growth again. What do you think is happening with that?
Bill Barker: Well, certainly, the business travel is growing from a very, very low base in the last year. Then you've got people that are willing to spend right now. They haven't taken those vacations. They haven't done the travel to see family that they had wanted to in the past couple of years.
It's easier to travel now. I know last year, I was flying back from Europe. May of last year. Still had to come up with a negative COVID test to fly back into the country. That's no longer the case. That hasn't been the case for awhile.
The people who are willing to spend for business class and first class and Economy Plus are there. They've got money left over from all the travel they didn't take in the previous couple of years.
But the airlines would love to see the actual business travel return to a significant fraction of where it was in 2019. I don't know how many years it's going to take for that to occur given how much business people are willing to do on Zoom still.
Ricky Mulvey: It seems like airlines are more cyclical than the average business. You've got to worry about fuel costs, global macroeconomic factors. Is this an area you look at for long-term investing or generally avoid?
Bill Barker: Well, in terms of long-term investing, investing through a number of cycles, I think it's a good question. I prefer to arrive when things look worst for airlines because the implication of cycles is that there'll be a good spot and a bad spot within this cycle.
Investing through the cycles, historically, airlines have not been good businesses. They've not done a great job of staying out of bankruptcy, so you've periodically been wiped out in a lot of cases. And then they come out of bankruptcy and with a better business plan.
Certainly, the seat capacity, seat utilization is infinitely better now than it was 20 years ago. They do have real algorithms that are putting the right number of people onto flights. Makes it unpleasant, often, for travelers, but a full airplane is what they need, and that's mostly what they get.
I'd say it's a vastly improved business to where it was 20 years ago. But still, as we are finding out, we're still working our way back to cycle highs. We're not there yet. It's been four years of a down cycle.
Ricky Mulvey: Let's move on to General Mills, which is telling a little bit of a different story about the economy. General Mills stock took a small hit this morning. The maker of Cheerios, Pillsbury, Fruit Roll-Ups announced a dividend raise, total sales increase on the year. But it looks like the pricing power might be hitting a wall for this consumer goods giant.
Bill Barker: Yeah, there's not much cyclical about eating. Do it every day, and you're going to tomorrow and for many years to come. It doesn't have the highs and lows by any means.
General Mills brands, you look at them, they're the ones that you've grown up with, you know, whether it's Lucky Charms or Bisquick or so many... Pillsbury. There are things you know from however old you are, you probably learned about them through commercials from your earliest days.
What they're looking at now is the population is not growing that fast, and they're going to be looking at more or less inflation plus population growth as the benchmark. Unless eating habits change dramatically, that's the growth you can look for here. Absent, really discovering, a better selection of things that people want to eat.
Of course, a lot of their historical legacy brands are on the wrong side of the nutritional and health trends. I don't know that they've got a better-looking future than their past.
Ricky Mulvey: Seems like a lot of disrespect for the Lucky Charms, there, Bill Barker.
Bill Barker: I love Lucky Charms. There aren't enough people like me. That's the problem. For General Mills, I think, is that there are too many people that have decided to pay attention to all the nutritional information.
Ricky Mulvey: What a shame for their shareholders.
General Mills I think, also ran out of some room to cut around the edges. Maybe people are finally getting fed up with the shrink-flation. General Mills is not the only culprit in this phenomenon, but they did cut family-size cereals by an ounce. Members of the Reddit community have pointed out the Pillsbury Toaster Strudels are getting smaller, and the amount of frosting in packets is also diminishing. Even for your current customers, they might not be delighting them like they used to.
Bill Barker: No. A couple of places in their earnings report, they refer to lower organic pound volume. They're maybe selling the same number of packages but with less weight, and they are ending up with slightly improved revenue but really not quite keeping up with inflation.
Inflation is going a little hotter than what they added to year over year. Net sales increased 6%. Inflation was a little bit higher than that over the previous 12 months.
I think that this story is going to look very similar from quarter to quarter, from year to year. But there are limits on what people will put up with in terms of being charged the same or more for less and less. The media is putting a spotlight on that, and that's not helping General Mills.
Ricky Mulvey: Let's move on to Costco. Now, Costco is cracking down on membership sharing. Maybe they're taking a page out of Netflix. Bill, the retailer says that it is now asking shoppers to show photo ID at self-checkout registers. Does this signal anything to you, or is this just a fun news story?
Bill Barker: I think it signals an interest in supporting their membership. Members are asked to pay an annual fee, and by definition, they're subsidizing the nonmembers, the free riders that are borrowing somebody else's memberships.
So I think that the honest members -- not that there's really, wouldn't go so far as to call sharing a membership dishonest. But the people who are playing by the rules are subsidizing the free riders, and it's in Costco's interests to, with very crowded stores, much of the time, to make sure that the ones who are getting in the door are the ones who are supposed to be getting in the door and paying for the privilege to do so.
Ricky Mulvey: We'll, also, I think it's worth noting just how important those membership fees are to Costco and the investors in the stock.
Bill Barker: The membership fees are the lion's share of the profits here. They are dedicated to keeping costs low and running a very, very tight margin operation outside of the membership fees, and people are glad to pay them. Find value in the membership fees. Renew at extremely high rates, way, way, way above 90%.
They don't get raised every year. I think we're about due, but I think that Costco has done a great job of keeping the loyalty through service and through not frequently raising prices on the membership.
Ricky Mulvey: Big news for AutoZone. Its CEO, Bill Rhodes, announced that he is stepping down in January of 2024 after leading the company for 18 years. Bill, this is someone that we don't talk about a lot. But this guy has been a tremendous friend to shareholders during his tenure.
Bill Barker: This is an underreported story, I think, or underappreciated by many who haven't followed it. AutoZone has just done a tremendous job of, for long-term shareholders, largely following a model of aggressively buying back its own shares. Not overexpanding, not wasting money on acquisitions. Not necessarily empire building as much as just taking as much money as it can, borrowing a little bit as well to fund share buybacks.
And the result has been, for long-term shareholders, a compounding, increasing ownership stake in the company that's reflected in the share price, which is $2,400-some today. There are many, many, many happy shareholders who are going to be sorry to see Rhodes go.
Ricky Mulvey: I think one reason this isn't getting a lot of attention is because there's not a lot of drama associated with it, and that makes the story a little bit juicier. This transition is probably a relatively boring one with about six months to go to hand the reins to Philip Daniele. He is a vice president of merchandising, marketing, and supply chain teams, and he's the guy who's going to succeed Rhodes.
Bill Barker: Yeah. A stable leadership team. Rhodes, sticking around, though not in the CEO position. I think that the market is going to continue to look for the past business practices to continue.
It might be a little harder, with interest rates at 6% running a buyback, which is partially debt fueled, rather than the near-0% interest rates that were available for a large chunk of the last decade. Nevertheless, I don't think that you're going to see a big change in the business model here, and AutoZone and O'Reilly are likely to continue feasting on the carcass of advanced auto.
Ricky Mulvey: Yeah. I think it's worth discussing the balance sheet, flagging funding share buybacks, free, that debt. Right now, AutoZone has about $750 million in cash and receivables, but it's got $8 billion in payables, current debt, and retirement benefits. Is this a real problem in a rising interest rate world?
Bill Barker: Well, it's a growing payment that they need to make to fuel all this. The thing is that the car repair business is extremely predictable. We know how many older cars there are, we know how many new cars there are. We know that the age of the entire fleet. You know that when there is a particularly tough winter in terms of weather, the number of potholes that that creates, and then how much additional damage happens to cars. So there really aren't new variables that appear.
So it makes the predictability of the cash flows something sustainable and allows a little taking on more debt than you otherwise would like to see as observed. I'm sure shareholders would love to see less debt on the balance sheet. But they can't complain with what the debt that has been put onto the balance sheet so far as translated to in terms of equity. So I wouldn't look for the same returns to shareholders over the coming decade that they've had over the last decade. But I continue to have faith in this company.
Ricky Mulvey: Bill Barker, appreciate your time and your insight.
Bill Barker: Thanks for having me.
[music]
Ricky Mulvey: Apple has entered the battle for your deposits. Jason Moser and Matt Frankel take a look at the tech giant's offering and check in on regional banks.
Jason Moser: Hey, Matt, it's great to catch up with you again. It's been a while.
Matt Frankel: Yeah. I haven't seen you in a few months now.
Jason Moser: [laughs] Well, we want to get back to what we've done so long and talking financials and, and talking banks. Particularly today, we want to dive into banks and talk about the regional banks in this fight for deposits.
Interest rates, of course, have moved up considerably, making these deposit accounts a little bit more attractive for consumers these days, and as such, these banks need to compete a little bit more for those deposits. Looking at the state of regional banks today and specifically in regard to deposits, how are these regional banks holding up yet?
Matt Frankel: So it's been a strange dynamic this year, to say the least. So when interest rates started to rise last year, a lot of consumers started to take their money out of the big banks, which pay nothing. My Wells Fargo account pays 0.01% still. [laughs] They started moving out of the accounts like that into regional banks, which can afford to pay more. They generally have lower regulatory costs, for example, and can offer a little bit more with still having the convenience of an in-person bank.
Then when this banking panic happened, if you will, earlier this year, people started to move their money out of regional banks at a rapid pace, especially in March and April. Since then, it seems to have calmed down
There's a few reasons for it, but we're starting to finally see some positive numbers. Recent Federal Reserve data shows that overall, U.S. bank deposits are starting to increase for the first time in a while. A lot of people are just taking their money out of banks and putting them into Treasury bonds and nonbank assets like that. Now that seems to have stabilized.
A few of the most affected banks are starting to report good numbers. Western Alliance Bank was one of the big, hard-hit ones in the panic. They recently said that their deposit base grew by $2 billion in the recent three-month period. So we're seeing some positive numbers come out of the regional banks. They're doing a lot to bolster consumers' confidence in the regional banking system.
Jason Moser: Yeah, it does feel like a lot of this just stemmed from a lack of awareness on the consumer's part, maybe, that regardless where their money was parked, FDIC insurance is a real thing, and maybe folks weren't, I don't know if there's a crisis of confidence, I guess, is really what it all boiled down to. But but at the end of the day, the funds are still insured, whether it's a regional bank or a big bank.
But you mentioned something there that I want to dig into a little bit more. You mentioned a phrase, "nonbank instruments," and that makes me think of Apple. And Apple now, they're rolling out a banking relationship or a banking product, a savings account, I think it is.
It's interesting. Apple is not a bank. It's the home of those same types of regulatory constraints that banks typically are, but they partner with banks, I think maybe in this case it's Goldman Sachs. Is the Apple bank a threat, do you think, to regional banks? Are they feeling pressure from this?
Matt Frankel: Like you said, Apple is not a bank. They have no desire to be a bank. There's a lot of regulatory headaches that come with that. They don't want to be a bank.
Jason Moser: Yeah.
Matt Frankel: What they're doing is they're essentially offering a Goldman Sachs savings account product that they're just slapping their name on. Big companies do this kind of stuff all the time. Big brands, they slap their name on products to get them to sell. That's what they do. That's the whole premise of a brand like Coca-Cola acquiring a new up-and-coming beverage: could sell better under their brand.
We saw a lot of early traction from the Apple savings account. It pays a 4.15% APY, which is pretty good. In the first four days of its debut, which happened in April -- which was right after the big banking panics; take that for what you will -- it attracted about a billion dollars' worth of deposits in four days. That had people thinking, is this going to destroy the banking system as we know it? Doesn't every other person in the world use Apple? Between me and you and the two people behind the glass, I'm sure at least two of us have an iPhone.
It's understandable why people would think that that could be a big disruptor, but there are a few things to keep in mind. No. 1, that APY makes them competitive with other online-based banks, not dominant. I'm a SoFi customer, for example, and mine pays 4.3% right now, so better than the Apple savings account. It's not the highest rate you're going to get out there.
The rollout has not been without its speed bumps. If you Google "Apple savings account," all the news stories that come up are how people can't get their money in a timely manner.
Jason Moser: I was going to bring that up. That's the one thing that stood out. I've not used this product, and I'm not going to use it. It's not something I'm interested in. But I've already read enough of those stories where people couldn't get their money. I mean, that, to me, would be the most frustrating thing of all. You can't get your money, I'm out.
Matt Frankel: I don't expect it to necessarily be overnight. If I withdraw from my online savings account at 4:00 p.m. today, I don't necessarily expect it to be there tomorrow, but maybe the next day, it should be there. Not two weeks later, I'm still wondering where my money is and going back and forth with customer support.
There have been some hiccups, and hiccups like that will kill a bank. Can you imagine if some of these regional banks came out in the weeks following the crisis and people couldn't get their money?
Jason Moser: That's the reason for being right there: They're supposed to do one thing and do it really well.
Matt Frankel: We're in the depths of a crisis that people could easily get their money with these regional banks.
The third reason that I'm not too worried about Apple is other fintechs have a lot more to offer in the financial context. Apple's a big ecosystem, but the savings is like an adjacent product. It makes sense because that's where people's Apple Card rewards points are being deposited into. That's where the cash back goes.
But as far as the primary place somebody puts their savings, people don't want to deal with two or three or four banks. They want everything in one place.
Jason Moser: Yeah.
Matt Frankel: I mentioned SoFi. The reason I use SoFi, it's not just because they have a good APY. I can get that in other places. It's because I can also have my investment account in that same place. I can also get a mortgage from them if I want to. I can also finance my car. I can also do a student loan refinance. I can also have a credit card through them. I can have a big banking relationship with a lot of these other fintechs that you can't with Apple.
Yes, it's a niche product. It serves a purpose well. The Apple credit card, it's a nice user base, it's desirable, but I don't think it's going to be a serious bank disruptor. There's something like $14 trillion of deposit volume in the last month in the U.S. banking system. That $1 billion might sound like a big amount of money, but in the scheme of things, it's really not that big in banking. So I don't worry about Apple really being a big competitor to the rest of the banking system.
Jason Moser: Well, in regard to the regional banks, it does sound like, I mean, at least Apple, isn't necessarily the threat that maybe some thought it could have been. But when you're putting those regional banks up against the big banks and looking at the evolution of this industry, it seems like we're seeing more consolidation, and that likely will continue. Do you view regional bank stocks is a good investment today?
Matt Frankel: I would say if you're going to invest in regional banks... I mean, we've talked on podcasts a lot about doing a basket approach. I would say even an ETF approach with regional banks makes a lot of sense right now. Especially with some being really volatile, some being really stable.
The regional bank SPDR ETF, the ticker symbol's KRE, is still down about 30% for the year. It was down 43% in early May at the lows. It's come back a little bit. But that's a great way if you want regional banking exposure but don't... you believe in the system itself but don't want to bet on any individual regional banks, that's a really good way to go.
I kind of like the regional banks that have specialized in certain things. As an example, Ally Financial's in my portfolio. They're an auto lender. They are really good at auto lending. They used to be part of GM before they spun off. They have a great business model, great leadership, and most of their deposit clients are under that $250,000 FDIC limit, so they don't really have to worry about uninsured deposits. It's really just a straight savings-and-loan play. Not a lot of business banking there.
I like those if you're going to play an individual name, but my biggest bank stocks are still the big banks. Bank of America and Wells Fargo is still my two largest bank investments.
Jason Moser: Very interesting indeed. Well, we will leave it there, Matt. Thank you so much.
Matt Frankel: Thanks for having me. I hope to do more of these with you.
Ricky Mulvey: As always, people on the program may own stocks mentioned, and the Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear. I'm Ricky Mulvey. Thanks for listening. We'll be back tomorrow.
Wells Fargo 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. Ally is an advertising partner of The Ascent, a Motley Fool company. Bill Barker has positions in Apple and Bank of America. Jason Moser has positions in Apple. Matthew Frankel, CFP® has positions in Ally Financial, Bank of America, General Motors, Goldman Sachs Group, SoFi Technologies, and Wells Fargo. Ricky Mulvey has positions in Netflix. The Motley Fool has positions in and recommends Apple, Bank of America, Costco Wholesale, Goldman Sachs Group, and Netflix. The Motley Fool recommends Delta Air Lines, General Motors, and Western Alliance Bancorporation and recommends the following options: long January 2024 $47.50 calls on Coca-Cola and 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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In this podcast, Motley Fool senior analyst Bill Barker and host Ricky Mulvey discuss: Delta's investor day and rosy profit guidance. Plus Motley Fool senior analyst Jason Moser and contributor Matt Frankel check in on regional banks, and Apple's consumer finance play. Ricky Mulvey: As always, people on the program may own stocks mentioned, and the Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear.
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In this podcast, Motley Fool senior analyst Bill Barker and host Ricky Mulvey discuss: Delta's investor day and rosy profit guidance. Plus Motley Fool senior analyst Jason Moser and contributor Matt Frankel check in on regional banks, and Apple's consumer finance play. The Motley Fool recommends Delta Air Lines, General Motors, and Western Alliance Bancorporation and recommends the following options: long January 2024 $47.50 calls on Coca-Cola and long January 2025 $25 calls on General Motors.
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So when interest rates started to rise last year, a lot of consumers started to take their money out of the big banks, which pay nothing. Then when this banking panic happened, if you will, earlier this year, people started to move their money out of regional banks at a rapid pace, especially in March and April. But that's a great way if you want regional banking exposure but don't... you believe in the system itself but don't want to bet on any individual regional banks, that's a really good way to go.
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There aren't enough people like me. They don't want to be a bank. Not a lot of business banking there.
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14967.0
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2023-07-08 00:00:00 UTC
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2 Roaring Stocks to Hold for the Next 20 Years
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AAPL
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https://www.nasdaq.com/articles/2-roaring-stocks-to-hold-for-the-next-20-years-0
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nan
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nan
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Last year's stock market sell-off highlighted the importance of investing in solid growth stocks over the long term. Doing so can safeguard your investment from temporary headwinds like the economic declines that burdened many companies in 2022. Meanwhile, choosing to invest in businesses with a history of consistent financial growth and significant market share in their respective industries can further boost the potential for reliable gains.
Apple (NASDAQ: AAPL) and Costco (NASDAQ: COST) are two attractive options, with one leading the consumer tech market and the other making promising inroads in other aspects of retail worldwide. These companies' stocks have risen over 150% in the last five years, with annual revenue increasing by over 48% in the same period. Furthermore, Apple and Costco are home to potent brands that have amassed immense brand loyalty from consumers, strengthening the arguments in support of their stocks.
Here are two roaring stocks to hold for the next 20 years.
1. Apple
As the most valuable company in the world with a market cap of $3 trillion, it's no surprise Apple is a favorite on Wall Street. In fact, investment mogul Warren Buffett's holding company Berkshire Hathaway has entrusted the iPhone company with 47% of its portfolio. For reference, its second-biggest holding is Bank of America, with 8%.
Data by YCharts.
Apple is renowned for its stock's stability and reliable growth, even in economically challenging conditions. As the chart above shows, Apple experienced the smallest stock decline last year out of what's considered the "Big Five" of tech. Despite the entire industry suffering pullback from consumer spending, the company reported an 8% year-over-year rise in revenue. Meanwhile, its highest earnings segment, the iPhone, enjoyed a 14% increase in revenue as demand remained high for its smartphones.
Apple's stock makes a particularly attractive long-term investment thanks to its nearly unrivaled brand loyalty. This allegiance from consumers allowed the company to overtake Alphabet's Android for a majority market share in U.S. smartphones last year and similarly achieve leading market shares in many of its other product categories. The connectivity between all of the tech company's products has become a winning strategy that makes consumers less likely to use competing devices if Apple is an option.
Moreover, the MacBook manufacturer's dominance in consumer tech strengthens the potential of its recently revealed virtual/augmented reality (VR/AR) headset, the Vision Pro. According to Fortune Business Insights, the VR market is projected to expand at a compound annual growth rate of 45% through 2029 and hit $227 billion. The first Vision Pro will likely be held back by its price tag of $3,499. However, future generations of the device could see the price come down and allow Apple to dominate the high-growth sector.
As a stock that has risen 305% in the last five years and over 1,100% in the last decade, Apple is an excellent stock to hold for 20 years and beyond.
2. Costco
Similar to Apple, Costco has managed to attract loyal customers worldwide. The company's wholesale setting and annual subscription fee have allowed it to offer shoppers competitive pricing, making it one of the best retail stocks available. The chart below shows that Costco shares have enjoyed significantly more growth since 2018 than retail competitors such as Amazon, Walmart, and Target.
Data by YCharts.
Meanwhile, the company's earnings have continued on a promising trajectory, with annual revenue up 60% in the last five years and operating income up 74%.
Additionally, despite Costco's founding nearly four decades ago, the company is nowhere near hitting its ceiling. The retail giant boasts 855 locations in 14 countries and has massive growth potential. Costco has four or fewer locations in six of those countries, suggesting plenty of expansion opportunities within those regions and beyond.
For instance, the company opened its first store in France in 2017, with the location becoming a massive hit with locals. Costco has since opened a second location and plans to have 15 stores in the country by 2025.
Costco's stock is slightly expensive according to its price-to-earnings ratio of 40. However, its consistent stock growth and swiftly rising earnings make it an attractive option to buy now and hold indefinitely.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 3, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. 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. 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, Bank of America, Berkshire Hathaway, Costco Wholesale, Meta Platforms, Microsoft, Target, 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 (NASDAQ: AAPL) and Costco (NASDAQ: COST) are two attractive options, with one leading the consumer tech market and the other making promising inroads in other aspects of retail worldwide. Meanwhile, choosing to invest in businesses with a history of consistent financial growth and significant market share in their respective industries can further boost the potential for reliable gains. The company's wholesale setting and annual subscription fee have allowed it to offer shoppers competitive pricing, making it one of the best retail stocks available.
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Apple (NASDAQ: AAPL) and Costco (NASDAQ: COST) are two attractive options, with one leading the consumer tech market and the other making promising inroads in other aspects of retail worldwide. However, its consistent stock growth and swiftly rising earnings make it an attractive option to buy now and hold indefinitely. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, Costco Wholesale, Meta Platforms, Microsoft, Target, and Walmart.
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Apple (NASDAQ: AAPL) and Costco (NASDAQ: COST) are two attractive options, with one leading the consumer tech market and the other making promising inroads in other aspects of retail worldwide. Last year's stock market sell-off highlighted the importance of investing in solid growth stocks over the long term. As a stock that has risen 305% in the last five years and over 1,100% in the last decade, Apple is an excellent stock to hold for 20 years and beyond.
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Apple (NASDAQ: AAPL) and Costco (NASDAQ: COST) are two attractive options, with one leading the consumer tech market and the other making promising inroads in other aspects of retail worldwide. These companies' stocks have risen over 150% in the last five years, with annual revenue increasing by over 48% in the same period. As a stock that has risen 305% in the last five years and over 1,100% in the last decade, Apple is an excellent stock to hold for 20 years and beyond.
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14968.0
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2023-07-08 00:00:00 UTC
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If You Invested $2,000 in Berkshire Hathaway in 2017, 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-%242000-in-berkshire-hathaway-in-2017-this-is-how-much-you-would-have-today
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nan
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nan
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Since Warren Buffett took over the company in 1965, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has made shareholders a lot of money. Between 1965 and 2022, the large conglomerate generated compounded annual gains of 19.8%, which compares nicely to the broader benchmark S&P 500's 9.9% average gain.
Zooming in, Berkshire has also made many moves in recent years and has seen its stock hit all-time highs. If you invested $2,000 in 2017, here's how much you'd have today.
Finding different ways to put money to work
One of Berkshire's big moves over the last six years was continuing to build its stake in the consumer tech giant Apple (NASDAQ: AAPL), which Buffett first purchased in 2016. He has previously talked about how he first got interested in Apple after noticing how distraught his friend was when he couldn't find his iPhone.
Image source: Motley Fool.
In 2017, Buffett and Berkshire got serious about Apple, boosting their position from 230 million shares at the end of 2016 to nearly 662 million shares at the end of 2017. Currently, Apple consumes more than 46% of Berkshire's more than $375 billion equities portfolio.
It's been a tremendous investment for Berkshire. Since the start of 2017, Apple's stock is up roughly 560%.
When the pandemic hit in 2020, most investors' investing approach changed dramatically, given that the world had transformed massively. Berkshire made a lot of big changes, including selling off all of its airline stocks and a lot of bank stocks, as well.
The conglomerate remained patient immediately after the onset of the pandemic but then began to deploy some of its massive cash hoard. It started with Berkshire repurchasing a lot of its own stock: nearly $25 billion in 2020 and more than $27 billion in 2021.
Then Berkshire began to venture into other sectors. The pandemic and Russia's eventual invasion of Ukraine would start what would ultimately be another big foray into energy stocks and acquisitions. Berkshire would acquire Dominion Energy in 2020 and then initiate major stakes in the U.S. domestic oil producers Occidental Petroleum and Chevron.
In 2022, Berkshire invested $60 billion in various stocks in the first six months of the year, not including stock sales. These new positions included multibillion-dollar stakes in Citigroup, Paramount, and Activision Blizzard.
Berkshire has also looked abroad, investing in the initial public offering of the Brazilian fintech Nu Holdings and building large multibillion-dollar positions in five of Japan's large trading companies. Buffett seems to like them because they remind him of Berkshire.
If you had invested $2,000 in Berkshire...
It's been a bumpy last six years, especially when you think about market conditions since the pandemic began, but Berkshire has managed to perform well. It's also proven to be a rock at times when the market has struggled -- like last year.
So if you had invested $2,000 in Berkshire's stock at the very beginning of 2017, you'd now have $4,277. If you had invested $2,000 in the broader benchmark S&P 500 index, you'd now have $3,972, making Berkshire's stock the better investment.
10 stocks we like better than Berkshire Hathaway
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 3, 2023
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has positions in Citigroup and Nu and has the following options: long January 2024 $80 calls on Citigroup. The Motley Fool has positions in and recommends Activision Blizzard, Apple, and Berkshire Hathaway. The Motley Fool recommends Chevron. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Finding different ways to put money to work One of Berkshire's big moves over the last six years was continuing to build its stake in the consumer tech giant Apple (NASDAQ: AAPL), which Buffett first purchased in 2016. The pandemic and Russia's eventual invasion of Ukraine would start what would ultimately be another big foray into energy stocks and acquisitions. Berkshire would acquire Dominion Energy in 2020 and then initiate major stakes in the U.S. domestic oil producers Occidental Petroleum and Chevron.
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Finding different ways to put money to work One of Berkshire's big moves over the last six years was continuing to build its stake in the consumer tech giant Apple (NASDAQ: AAPL), which Buffett first purchased in 2016. Since Warren Buffett took over the company in 1965, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has made shareholders a lot of money. These new positions included multibillion-dollar stakes in Citigroup, Paramount, and Activision Blizzard.
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Finding different ways to put money to work One of Berkshire's big moves over the last six years was continuing to build its stake in the consumer tech giant Apple (NASDAQ: AAPL), which Buffett first purchased in 2016. Berkshire made a lot of big changes, including selling off all of its airline stocks and a lot of bank stocks, as well. In 2022, Berkshire invested $60 billion in various stocks in the first six months of the year, not including stock sales.
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Finding different ways to put money to work One of Berkshire's big moves over the last six years was continuing to build its stake in the consumer tech giant Apple (NASDAQ: AAPL), which Buffett first purchased in 2016. In 2022, Berkshire invested $60 billion in various stocks in the first six months of the year, not including stock sales. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them!
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14969.0
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2023-07-08 00:00:00 UTC
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2 Top Stocks to Buy for the Next Bull Market
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AAPL
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https://www.nasdaq.com/articles/2-top-stocks-to-buy-for-the-next-bull-market
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nan
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nan
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The growth-centric Nasdaq Composite has bounced back sharply after a steep downturn last year. No one can know with certainty whether this marks the beginning of a new bull market, but plenty of solid companies are positioned to outperform for shareholders over the next several years.
Two that look very promising are Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX). Both stocks have been rising recently as investors price in more growth ahead. Here's why investors should consider adding these top stocks to their nest egg today.
Apple
Apple is an iconic brand with a large base of loyal customers, but the iPhone maker is facing some near-term obstacles with sluggish demand and potential production hurdles for the new Vision Pro headset. Nonetheless, this is a valuable consumer brand worth buying before the economy revs up again.
The new Vision Pro headset received a muted response from investors when unveiled last month. The device won't launch until next year and will come with a hefty price tag. Apple is reportedly cutting production to less than 400,000 units, following an initial plan to make 1 million units in 2024. The production cut doesn't appear to be based on weak consumer interest but rather a shortage in micro-OLED (organic light-emitting diode) displays.
Meanwhile, iPhone sales, which generate half of Apple's revenue, grew slightly last quarter, while the rest of the product lineup experienced lower sales year over year. The consensus analyst estimate calls for Apple's revenue to decline 2.3% for fiscal 2023.
Some of the recent sales weakness can be attributed to high inflation and other economic issues. The economy won't always be facing headwinds like we've seen over the last year. Reasons the stock is still worth buying include the growing installed base of active devices and the company's enormous annual free cash flow that has swelled to almost $100 billion.
The growth in the installed base is particularly bullish for Apple's services business (e.g., App Store, subscriptions), which generates a much higher profit margin than hardware sales. Services revenue grew 5.5% year over year last quarter, which gives Apple the operational diversity it needs to maintain sales volumes when product sales weaken.
Apple delivered earnings growth of nearly 15% per year over the last decade. With over $385 billion in annual revenue, its size may limit earnings growth potential over the next 10 years. However, Apple's enormous free cash flows will allow management to continue rewarding shareholders through capital returns (e.g., quarterly dividends) and developing new products that keep revenue, and the stock, marching higher for many years.
Netflix
Netflix stock has rebounded sharply after its tumble last year over subscriber losses. While the declines proved to be temporary, it shows that Netflix is starting to reach saturation in its largest markets. But Netflix could see accelerating revenue from its paid sharing initiative and the rollout of ad-supported subscription plans, which generate more revenue per subscriber than the basic plan.
In the streaming video market, there is Netflix and Alphabet's YouTube sitting on top, and then everyone else. Another streaming service that rivals Netflix in the breadth of content is Amazon Prime Video, but Netflix is known to have a greater variety of highly rated shows and movies. Netflix's subscriber total of 232 million is almost on par with Amazon's entire Prime membership base, which was over 200 million at the start of 2022.
One near-term obstacle Netflix will have to navigate is the ongoing writers' strike. In May, Netflix reportedly halted production for the next season of Stranger Things. Even if the strike results in more production delays, the company's existing content library, which is massive, is a valuable asset to maintain subscriber growth.
Netflix could enjoy a tailwind from its efforts to get more users to pay up for a subscription. Management had previously estimated over 100 million households were borrowing accounts. Converting even a small portion of those users into paying subscribers spells a significant revenue opportunity.
Quarterly subscriber growth has hovered around 5% over the last year, but paid sharing and growth in ad-supported plans should push average revenue per subscriber higher. This is a major catalyst for accelerating revenue growth. Analysts expect revenue to grow over 7% this year before accelerating to over 12% next year.
Based on management's second-quarter guidance, Netflix can convert this incremental revenue to more earnings growth, given it already generates an industry-leading operating margin of 19%. Analysts are forecasting 21% annual earnings growth over the next five years, which should push the stock much higher from where it trades now.
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 3, 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. John Ballard has positions in Amazon.com. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, 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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Two that look very promising are Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX). Reasons the stock is still worth buying include the growing installed base of active devices and the company's enormous annual free cash flow that has swelled to almost $100 billion. The growth in the installed base is particularly bullish for Apple's services business (e.g., App Store, subscriptions), which generates a much higher profit margin than hardware sales.
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Two that look very promising are Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX). Reasons the stock is still worth buying include the growing installed base of active devices and the company's enormous annual free cash flow that has swelled to almost $100 billion. However, Apple's enormous free cash flows will allow management to continue rewarding shareholders through capital returns (e.g., quarterly dividends) and developing new products that keep revenue, and the stock, marching higher for many years.
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Two that look very promising are Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX). Meanwhile, iPhone sales, which generate half of Apple's revenue, grew slightly last quarter, while the rest of the product lineup experienced lower sales year over year. Services revenue grew 5.5% year over year last quarter, which gives Apple the operational diversity it needs to maintain sales volumes when product sales weaken.
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Two that look very promising are Apple (NASDAQ: AAPL) and Netflix (NASDAQ: NFLX). Quarterly subscriber growth has hovered around 5% over the last year, but paid sharing and growth in ad-supported plans should push average revenue per subscriber higher. * 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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14970.0
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2023-07-08 00:00:00 UTC
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1 Remarkable Growth ETF That Could Turn $50 Per Week Into $1 Million
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AAPL
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https://www.nasdaq.com/articles/1-remarkable-growth-etf-that-could-turn-%2450-per-week-into-%241-million
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nan
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nan
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Investing in the stock market is one of the most effective ways to build long-term wealth, but choosing the right investments is critical.
While the market has been rebounding in recent weeks, many investors are understandably concerned about an upcoming recession. Investing in an exchange-traded fund (ETF) can help limit your risk while still maximizing your returns.
An ETF is a basket of securities bundled together in a single investment. When you invest in just one ETF, then, you're actually investing in dozens or even hundreds of different stocks. That diversification helps reduce your risk, particularly during periods of market volatility.
There are thousands of ETFs out there, but there's one growth ETF, in particular, that could help protect your savings while still turning $50 per week into a million dollars or more -- with next to no effort on your end.
A growth ETF that packs a punch
Growth ETFs are designed to beat the market, and they contain stocks that have the potential for above-average returns. While they can carry more risk than broad-market funds (such as S&P 500 ETFs), they're also more likely to earn higher returns over time.
One fantastic growth ETF that effectively balances risk and reward is the Vanguard Growth ETF (NYSEMKT: VUG).
The Vanguard Growth ETF contains 240 stocks from a variety of industries, though around half of the fund is comprised of stocks in the tech sector. It also has a rock-bottom expense ratio of just 0.04%, which is far lower than many other growth ETFs and could save you thousands of dollars in fees over time.
Perhaps the best advantage of this fund, however, is its mix of blue chip stocks and up-and-coming companies.
This ETF's top 10 holdings make up around half of the fund's total composition, and these 10 stocks are from behemoth companies ranging from Apple and Amazon to Visa and Home Depot.
The other half of the fund is made up of hundreds of smaller stocks from up-and-coming companies. While these stocks carry more risk than their blue chip counterparts, they also have more potential for explosive growth. If any one of these stocks goes on to become a superstar performer, it could result in lucrative returns.
In other words, this fund helps balance risk and reward by equally weighting safer, solid blue chip stocks with smaller stocks loaded with potential. If you're nervous about market volatility but still want to make the most of your money, this ETF could be a smart option.
Building a million-dollar portfolio
There are never any guarantees when investing, but this fund is designed to beat the market over time. By investing consistently for many years, you can transform just $50 per week into hundreds of thousands of dollars or more.
Over the past 10 years, the Vanguard Growth ETF has earned an average rate of return of just under 15% per year.
To play it safe, however, let's assume that over the long haul, your investment only earns an average return of 12% per year (which is just above the stock market's historic average of 10% per year).
If you were to invest $50 per week while earning a 12% average annual return, here's approximately how much you'd accumulate over time:
NUMBER OF YEARS TOTAL SAVINGS
20 $173,000
25 $320,000
30 $579,000
35 $1,036,000
40 $1,841,000
Data source: Author's calculations via Investor.gov
To reach $1 million in total savings, you'll need to invest consistently for 35 years. But if you have even five more years to invest, you could nearly double your total earnings and close in on the $2 million mark.
If this ETF significantly outperforms the market and earns average returns higher than 12% per year, you could earn far more over time.
Time is your most valuable resource when investing in the stock market, and the sooner you get started, the more you can accumulate over time. The Vanguard Growth ETF is a smart fit for many portfolios, and it can help limit your risk while maximizing your long-term earnings.
10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard Growth ETF wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 3, 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 Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Home Depot, Vanguard Index Funds-Vanguard Growth ETF, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This ETF's top 10 holdings make up around half of the fund's total composition, and these 10 stocks are from behemoth companies ranging from Apple and Amazon to Visa and Home Depot. The Vanguard Growth ETF is a smart fit for many portfolios, and it can help limit your risk while maximizing your long-term earnings. The Motley Fool has positions in and recommends Amazon.com, Apple, Home Depot, Vanguard Index Funds-Vanguard Growth ETF, and Visa.
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One fantastic growth ETF that effectively balances risk and reward is the Vanguard Growth ETF (NYSEMKT: VUG). The Vanguard Growth ETF is a smart fit for many portfolios, and it can help limit your risk while maximizing your long-term earnings. The Motley Fool has positions in and recommends Amazon.com, Apple, Home Depot, Vanguard Index Funds-Vanguard Growth ETF, and Visa.
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A growth ETF that packs a punch Growth ETFs are designed to beat the market, and they contain stocks that have the potential for above-average returns. The Vanguard Growth ETF contains 240 stocks from a variety of industries, though around half of the fund is comprised of stocks in the tech sector. 10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF When our analyst team has a stock tip, it can pay to listen.
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By investing consistently for many years, you can transform just $50 per week into hundreds of thousands of dollars or more. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard Growth ETF wasn't one of them! The Motley Fool has positions in and recommends Amazon.com, Apple, Home Depot, Vanguard Index Funds-Vanguard Growth ETF, and Visa.
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14971.0
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2023-07-07 00:00:00 UTC
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Here is What to Know Beyond Why Apple Inc. (AAPL) is a Trending Stock
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AAPL
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-apple-inc.-aapl-is-a-trending-stock-5
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nan
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nan
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +6.2%, compared to the Zacks S&P 500 composite's +3.1% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has gained 7%. 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.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-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%.
The consensus earnings estimate of $6 for the current fiscal year indicates a year-over-year change of -1.8%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.62 indicates a change of +10.4% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $81.11 billion indicates a year-over-year change of -2.2%. 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty 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.
Conclusion
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.
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
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the next fiscal year, the consensus earnings estimate of $6.62 indicates a change of +10.4% from what Apple is expected to report a year ago.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up.
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14972.0
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2023-07-07 00:00:00 UTC
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Warren Buffett Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-detailed-fundamental-analysis-aapl-3
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
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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14973.0
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2023-07-07 00:00:00 UTC
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Apple vs. Meta Platforms: The Headset Battle is Underway
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AAPL
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https://www.nasdaq.com/articles/apple-vs.-meta-platforms%3A-the-headset-battle-is-underway
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nan
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nan
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Apple (NASDAQ:AAPL) stock has been rising steadily -- more than a month after its Vision Pro reveal. Apple's headset (or spatial computer) is poised to go toe to toe with that of Meta Platforms' (NASDAQ:META). Indeed, Meta has been investing billions into the Metaverse for over a year now. Still, the company has yet to convince most of us to purchase a headset and stay plugged in long enough for Meta to monetize meaningfully.
Indeed, it could take years before Meta's metaverse makes a meaningful impact on overall earnings, which are dominated by ads from the social media family of apps. However, just because Meta and its Quest headset are off to a slow start does not mean Meta won't eventually be able to make a significant mark on the field of spatial computing.
It's unclear how spatial computing will take off at this juncture. As it always does, Apple's going the "premium" route with mind-blowing, top-of-the-line technologies. As you'd imagine, the inclusion of the absolute best hardware comes at the cost of a hefty price tag -- $3,500. Indeed, many people were shocked when the sticker price was announced.
Though it's far too early to tell if the spatial computer is worth the price of admission, given that only a limited number of people have actually tried the headset, I do think it's hard not to give Apple the edge when it comes to the headset battle with Meta.
Nevertheless, let's use TipRanks' Comparison Tool to have a closer look at Apple and Meta as they duke it out over the coming years.
Meta Platforms Has Its Bases Well-Covered as the Metaverse Race Kicks Off
Undoubtedly, Meta currently sports the more affordable option with its baseline Quest headset, with the latest (Quest 3) iteration going for $500. Indeed, Meta has the low-to-mid-end of the market pretty well-covered. Still, there are a lot of competitors in that corner of the market.
Though we may be entering an era where headset tech is in a place to take off with the average tech-savvy consumer, I do believe Apple is right to start at the high end first while opening the door to a cheaper, low-to-mid-end device at some point down the road when costs of such technologies begin to come down.
Over the medium term, it may take a genuinely high-end device to offer the type of immersive experience that gets the rest of us excited to buy a headset and plug into the VR/AR experiences. Most notably, high-end devices stand to better tackle the biggest hurdle stopping consumers from making the jump to VR -- motion sickness.
Though Meta also has the Quest Pro on the high end, the $1,000 price tag doesn't come close to that of the Apple Vision Pro. Indeed, there's a lot of premium placed on the Apple brand. That said, given the innovation packed into its Pro headset, an argument can be made that the headset isn't exactly as expensive as it could be when you consider the massive sums poured into the project over the years (you have to consider more than just the cost of the parts).
For now, Meta seems to have hit the ground running, while Apple is less than a year away from storming out of the gate.
The High End of the Market May be What Determines Who Wins the Metaverse Race
The price to get a headset can be quite excessive, especially with a recession potentially looming. Low-to-mid-end headsets seem to offer the perfect mix of tech and affordability. Still, I do believe that the high end of the market is where most of the money will be made, at least in the early days of the Metaverse's rise. Meta recently made the move to Pro, while Apple is kicking things off with its Pro.
Indeed, it's hard to tell which Pro headset will end up packing the most punch. The sticker price suggests Apple could take the high end of the market by a long shot. In any case, I would not count future Meta Pro iterations out of the game quite yet. It's also possible that taking a margin hit by offering a lower price could be the better call in the early days of the Metaverse.
In any case, it'll take more than competitively-priced Pro-level hardware to entice users. At the end of the day, a metaverse headset can only be genuinely immersive if the software behind it rises up to the test.
Apple's a company that's perfected bringing out the best in hardware and software. As such, I think it will be hard to top Apple's visionOS operating system on the software side. Gestures used to control the Vision Pro headset looked so intuitive that it seemed almost magical.
Can Meta make software play as well with its hardware as Apple can? Only time will tell.
Is AAPL Stock a Buy, According to Analysts?
Apple comes in as a Strong Buy on TipRanks, with 24 Buys and seven Holds given in the past three months by Wall Street analysts. Still, the average AAPL stock price target of $192.93 implies just 1.2% upside potential.
Is META Stock a Buy, According to Analysts?
Meta's a Strong Buy as well, with 36 Buys and four Holds ratings. The average META stock price target of $302.37 implies 4.1% upside potential.
Conclusion
It'll be fun to see how the headset race pans out. Undoubtedly, the two bitter rivals are sure to give consumers plenty of options as a new dimension of entertainment comes to be, but I believe Apple may be right to start on the Pro end while working its way down to more affordable options. Currently, analysts seem just a tad more bullish on Meta, with more Buys per Hold rating and slightly higher 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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Apple (NASDAQ:AAPL) stock has been rising steadily -- more than a month after its Vision Pro reveal. Is AAPL Stock a Buy, According to Analysts? Still, the average AAPL stock price target of $192.93 implies just 1.2% upside potential.
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Still, the average AAPL stock price target of $192.93 implies just 1.2% upside potential. Apple (NASDAQ:AAPL) stock has been rising steadily -- more than a month after its Vision Pro reveal. Is AAPL Stock a Buy, According to Analysts?
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Apple (NASDAQ:AAPL) stock has been rising steadily -- more than a month after its Vision Pro reveal. Is AAPL Stock a Buy, According to Analysts? Still, the average AAPL stock price target of $192.93 implies just 1.2% upside potential.
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Apple (NASDAQ:AAPL) stock has been rising steadily -- more than a month after its Vision Pro reveal. Is AAPL Stock a Buy, According to Analysts? Still, the average AAPL stock price target of $192.93 implies just 1.2% upside potential.
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14974.0
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2023-07-07 00:00:00 UTC
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The 3 Best Momentum Stocks to Buy in July
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AAPL
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https://www.nasdaq.com/articles/the-3-best-momentum-stocks-to-buy-in-july
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Momentum stocks offer investors the opportunity to capitalize on strong and continued upward price changes. At the same time, it is an inherently and undeniably risky trading method. Investing in momentum stocks can sometimes counter the notion that time in the market yields better results on average than timing the market.
But for those who identify the right shares at the right time, the rewards far outstrip those more conservative investors swear by. Directional movements are often slow to gain speed but difficult to stop once it hits, hence the name “momentum.” This kind of trading relies more on technical analysis than fundamentals, with catalysts often jump-starting the action.
Viking Therapeutics (VKTX)
Source: Billion Photos / Shutterstock
Viking Therapeutics (NASDAQ:VKTX) is one of the more exciting biopharma stocks out there. The firm is developing novel therapies to address endocrine and metabolic disorders. It has more than quintupled in price over the past year moving from $3 to more than $16 currently.
One thing to note about momentum stocks is that timing is incredibly important. Catching a momentum stock at the beginning of its downturn is often disastrous. I don’t think that’s the case here, but it should be noted that VKTX has gone from $24 to $16 over the last few weeks.
The reason I don’t believe Viking Therapeutics is going to go on a prolonged selling spree is that nothing negative has happened to the firm. It is pretty much the same company it was with the same pipeline of drugs continuing to progress through clinical trials. That includes drugs in phase 2 clinical trials that show great promise in reducing liver fat in non-alcohol-induced fatty liver disease and weight loss drugs that are in phase 1 trials. Instead, VKTX shares likely grew so rapidly that I assume traders are taking profits off the table.
Aehr Test Systems (AEHR)
Source: Shutterstock
Aehr Test Systems (NASDAQ:AEHR) is a small semiconductor firm with a booming stock. It sells test systems for burn-in and testing logic used in the semiconductor industry. Aehr Test Systems creates components for failure testing which it then assembles into systems. The firm has installed more than 2,500 of those systems globally to date.
Its shares have moved from $18 to above $41 in 2023 and traded below $7 a year ago. The company recently reported record bookings from EV semiconductors testing. Firm-wide sales were over $17 million and bookings reached $33.3 million. Its total bookings reached $41 million. Net sales increased by 40% over the last nine months as well.
Part of the reason Aehr Test Systems is currently doing so well is that it serves the burgeoning EV sector. Demand for the complex chips in demand across the EV industry has spurred the company’s shares higher, making investors a lot of money during the process.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Apple (NASDAQ:AAPL) is moving higher still as a variety of factors propel the stock above a $3 trillion valuation.
The iPhone is a product that simply has no equal. It is the lifeblood of Apple in its current form and accounted for $205.5 billion of the company’s $394 billion in 2022 revenues. Apple has seen iPhone sales begin to slow and expects a slight contraction in top-line results this year.
However, that hasn’t resulted in bearishness. The company has tapped into the market in India which offers great potential. Further, its VR/AR headset with a price tag of $3,499.00 promises to be an interesting money maker as its first new product in a decade.
It’s somewhat ironic that Apple has such strong momentum given the company posted back-to-back quarters of falling revenue. That’s a testament to how much investors believe in the company as it expands into emerging markets with the iPhone. All the company will need is a bit of positive information in any of those areas and it can move higher still.
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 The 3 Best Momentum Stocks to Buy 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: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is moving higher still as a variety of factors propel the stock above a $3 trillion valuation. Directional movements are often slow to gain speed but difficult to stop once it hits, hence the name “momentum.” This kind of trading relies more on technical analysis than fundamentals, with catalysts often jump-starting the action. 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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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is moving higher still as a variety of factors propel the stock above a $3 trillion valuation. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Momentum stocks offer investors the opportunity to capitalize on strong and continued upward price changes. Viking Therapeutics (VKTX) Source: Billion Photos / Shutterstock Viking Therapeutics (NASDAQ:VKTX) is one of the more exciting biopharma stocks out there.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is moving higher still as a variety of factors propel the stock above a $3 trillion valuation. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Momentum stocks offer investors the opportunity to capitalize on strong and continued upward price changes. Investing in momentum stocks can sometimes counter the notion that time in the market yields better results on average than timing the market.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL) is moving higher still as a variety of factors propel the stock above a $3 trillion valuation. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Momentum stocks offer investors the opportunity to capitalize on strong and continued upward price changes. Investing in momentum stocks can sometimes counter the notion that time in the market yields better results on average than timing the market.
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14975.0
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2023-07-07 00:00:00 UTC
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2 Soaring Stocks to Buy Now for Growth and Value
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AAPL
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https://www.nasdaq.com/articles/2-soaring-stocks-to-buy-now-for-growth-and-value
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nan
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nan
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Wall Street posted a rather calm start to the second quarter despite some swings, including on Friday. Investors barely flinched at the Fed’s June minutes, the hot ADP jobs report, and the lower-than-projected U.S. nonfarm payroll figures.
The Fed minutes hardly provided any novel insights into what Jay Powell and the Fed plan on doing to fight inflation. The scorching hot ADP jobs report was largely ignored on Thursday, all things considered, because Wall Street focuses on the more reliable U.S. nonfarm payroll data.
U.S. employers added 209K workers in June, which came in short of the 240K Wall Street estimate. This was the first time the jobs report came in below projections in over a year and it helped investors breathe a small sigh of relief.
Of course, the labor market remains on sturdy footing despite the Fed’s best efforts to cool the economy, with the U.S. adding tons of jobs and the unemployment rate ticking down to 3.6% from 3.7%.
Image Source: Zacks Investment Research
Wall Street has been forced to price in slightly higher rates for slightly longer, sending bond yields higher as well. Thankfully, Wall Street and Main Street appear to be adapting to the new higher-rate environment, and the economy is stabilizing and crucially normalizing following the Covid shocks.
Plus, all 11 S&P 500 sectors climbed in June, following a tech-heavy rally for most of 2023.
Given this backdrop, let’s dive into two stocks that have soared in 2023 and over the last decade that investors might want to buy for both near-term and long-term upside since they offer a wonderful combination of growth and value.
Jabil (JBL)
Jabil provides manufacturing services to companies in telecommunications and tons of other industries. The firm’s client list includes the likes of Apple (AAPL) and other giants in critical and game-changing industries to help make everything from smartphones and home appliances to healthcare tech and beyond.
Jabil serves original equipment manufacturers and product companies across multiple industries and end markets, including compute & storage, appliances, automotive, healthcare, telecom, energy & industrial, and more.
Image Source: Zacks Investment Research
Jabil’s diversification and expertise helped it grow steadily for years, including 12% average revenue growth between FY18 and FY22—posted 14% sales growth in its fiscal 2022. JBL topped our Q3 FY23 estimates in mid-June and provided upbeat guidance once again as it flexes its reliance and showcases how vital its offerings are during economic booms and cooldowns.
JBL’s positive earnings revisions activity helps it land a Zacks Rank #1 (Strong Buy) right now. And Zacks estimates call for JBL’s revenue to climb again in FY23 and FY24 to help boost its adjusted earnings by 11% and 10%, respectively.
Image Source: Zacks Investment Research
JBL is set to benefit from a broader onshoring/reshoring push from U.S. companies and the federal government. And five out of the six brokerage recommendations Zacks has are “Strong Buys,” alongside one “Hold.”
JBL shares have soared 115% over the past 12 months and 63% YTD to nearly double the Zacks Tech sector. Jabil stock is now up 405% during the last 10 years vs. the tech sector’s 255%, and it hit fresh highs again on Friday.
Image Source: Zacks Investment Research
Despite its long-term and recent outperformance, Jabil trades at a 50% discount to the Zacks Tech sector at 12.8X forward 12-month earnings. This also marks 31% value compared to its own 10-year highs and only a slight premium to its median over this stretch.
JBL also pays a small dividend at the moment and its tiny payout ratio offers plenty of long-term upside for dividend expansion.
HCA Healthcare, Inc. (HCA)
HCA Healthcare is a hospital chain titan that operates across roughly 20 U.S. states and the U.K. The firm currently runs around 180 hospitals and approximately 2,300 ambulatory sites of care, which includes surgery centers, freestanding emergency rooms, urgent care centers, and physician clinics.
HCA Healthcare has posted impressively steady top-line expansion over the last decade given its size and standing in an area of the economy that’s rarely impacted by wider swings in spending—outside of the initial Covid shutdowns.
HCA Healthcare has shaken off all of the Covid setbacks, with it much easier to hire nurses and other workers and retain them compared to early on during the pandemic. Plus, people are back to getting both vital as well as voluntary procedures that many held off on during 2020. HCA’s revenue climbed 14% in FY21 and another 3% in FY22.
Image Source: Zacks Investment Research
HCA Healthcare beat our Q1 earnings and revenue estimates and provided upbeat guidance. HCA's same facility admissions jumped 4.4% and same facility equivalent admissions popped 7.5% on the back of “strong demand” for its services.
HCA’s FY23 and FY24 consensus earnings estimates have trended higher since its last release to help it land a Zacks Rank #2 (Buy) right now. Zacks estimates call for HCA Healthcare’s revenue to climb over 5% both this year and next to help its adjusted EPS figures pop by 7% and 9%, respectively.
HCA Healthcare shares have soared 70% in the last year to top its highly-ranked Medical – Hospital industry’s (top 14% of all Zacks industries) 55% run. HCA is up 22% in 2023 and it hit fresh highs on June 30.
HCA is currently trading well above both its 50-day and 200-day moving averages. This is all part of a 680% surge over the last 10 years to more than double its industry and blow away the S&P 500’s 170%.
Image Source: Zacks Investment Research
HCA Healthcare currently trades at a 20% discount to the S&P 500 and a 30% discount to the Zacks Medical sector despite blowing it away over the last five years, up 177% vs. an -18% drop. Trading at 15.6X forward 12-month earnings, HCA also offers 18% value vs. its own five-year highs.
HCA Healthcare is one of the biggest hospital chains and it currently pays a dividend that yields 0.8%, with a very sustainable 14% payout ratio. Plus, it still trades 8% below its average Zacks Price target, and 16 of the 22 brokerage recommendations Zacks has are “Strong Buys,” with only one “Sell” ranking. It is worth pointing out that HCA Healthcare is set to release its Q2 earnings results on July 27.
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
Jabil, Inc. (JBL) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The firm’s client list includes the likes of Apple (AAPL) and other giants in critical and game-changing industries to help make everything from smartphones and home appliances to healthcare tech and beyond. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. The scorching hot ADP jobs report was largely ignored on Thursday, all things considered, because Wall Street focuses on the more reliable U.S. nonfarm payroll data.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. The firm’s client list includes the likes of Apple (AAPL) and other giants in critical and game-changing industries to help make everything from smartphones and home appliances to healthcare tech and beyond. Image Source: Zacks Investment Research Despite its long-term and recent outperformance, Jabil trades at a 50% discount to the Zacks Tech sector at 12.8X forward 12-month earnings.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. The firm’s client list includes the likes of Apple (AAPL) and other giants in critical and game-changing industries to help make everything from smartphones and home appliances to healthcare tech and beyond. Image Source: Zacks Investment Research HCA Healthcare beat our Q1 earnings and revenue estimates and provided upbeat guidance.
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The firm’s client list includes the likes of Apple (AAPL) and other giants in critical and game-changing industries to help make everything from smartphones and home appliances to healthcare tech and beyond. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. employers added 209K workers in June, which came in short of the 240K Wall Street estimate.
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14976.0
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2023-07-07 00:00:00 UTC
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After Hours Most Active for Jul 7, 2023 : INTC, AAPL, BAC, KO, TLT, QQQ, GOOGL, PLTR, RIVN, ABBV, HL, RLJ
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jul-7-2023-%3A-intc-aapl-bac-ko-tlt-qqq-googl-pltr-rivn-abbv-hl
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 3.48 to 15,040.33. The total After hours volume is currently 80,191,351 shares traded.
The following are the most active stocks for the after hours session:
Intel Corporation (INTC) is +0.01 at $31.86, with 5,468,000 shares traded. INTC's current last sale is 101.14% of the target price of $31.5.
Apple Inc. (AAPL) is +0.04 at $190.72, with 2,121,469 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Bank of America Corporation (BAC) is +0.04 at $28.57, with 1,935,820 shares traded. BAC's current last sale is 81.63% of the target price of $35.
Coca-Cola Company (The) (KO) is +0.03 at $59.79, with 1,919,473 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
iShares 20+ Year Treasury Bond ETF (TLT) is -0.06 at $99.02, with 1,767,722 shares traded. This represents a 7.81% increase from its 52 Week Low.
Invesco QQQ Trust, Series 1 (QQQ) is +0.34 at $366.58, with 1,686,982 shares traded. This represents a 44.18% increase from its 52 Week Low.
Alphabet Inc. (GOOGL) is +0.02 at $119.50, with 1,360,677 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Palantir Technologies Inc. (PLTR) is +0.02 at $15.36, with 1,261,941 shares traded. PLTR's current last sale is 192% of the target price of $8.
Rivian Automotive, Inc. (RIVN) is +0.1505 at $24.85, with 1,227,904 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
AbbVie Inc. (ABBV) is unchanged at $135.50, with 1,127,388 shares traded. ABBV's current last sale is 81.14% of the target price of $167.
Hecla Mining Company (HL) is unchanged at $5.11, with 1,061,217 shares traded. As reported by Zacks, the current mean recommendation for HL is in the "buy range".
RLJ Lodging Trust (RLJ) is unchanged at $10.43, with 1,026,384 shares traded. RLJ's current last sale is 69.53% of the target price of $15.
The views and 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 +0.04 at $190.72, with 2,121,469 shares traded. iShares 20+ Year Treasury Bond ETF (TLT) is -0.06 at $99.02, with 1,767,722 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.04 at $190.72, with 2,121,469 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
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Apple Inc. (AAPL) is +0.04 at $190.72, with 2,121,469 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 80,191,351 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.04 at $190.72, with 2,121,469 shares traded. The NASDAQ 100 After Hours Indicator is up 3.48 to 15,040.33.
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14977.0
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2023-07-07 00:00:00 UTC
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Wall St Week Ahead-As earnings loom, investors weigh recession resilience
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-as-earnings-loom-investors-weigh-recession-resilience
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nan
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nan
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By David Randall
NEW YORK, July 7 (Reuters) - As second-quarter earnings approach, investors are looking at beaten-down sectors which might gain ground regardless of whether the U.S. economy falls into recession this year.
While the benchmark S&P 500 .SPXhas gained nearly 15% year-to-date driven by a handful of megacap growth and technology names, some sectors have lagged, including the S&P 500 healthcare, which is down 4.7%. The financials sector is down 2%, while energy is nearly 9% lower.
These unloved sectors are growing attractive to investors increasingly torn over whether a long-feared U.S. recession will ever materialize.
Global fund managers increased their allocations to healthcare and banks by about 5 percentage points in June, while cutting holdings of popular recession plays such as cash and consumer staples companies, BofA Global said.
Large asset managers such as BlackRock and Wells Fargo highlighted healthcare as a favored sector in their recent outlooks for the rest of the year.
Some large banks have improved their U.S. economicoutlooks, with Goldman Sachs cutting the chance of a recession within the next 12 months to 25% from 35%. The Commerce Department, meanwhile, increased its estimate for first-quarter Gross Domestic Product growth to an 2% annualized rate from its initial 1.3% estimate.
Quincy Krosby, chief global strategist for LPL Financial noted a "tug of war" in the market over the likelihood of a recession.
"But until we hear from companies that they are cutting their labor force, then we think that we will not have a dire earnings season and some of these lagging sectors will become more favorable," she said.
The U.S. economy added the fewest jobs in 2-1/2 years in June, but persistently strong wage growth pointed to still-tight labor market conditions, , all but ensuring the Federal Reserve will resume raising interest rates later this month.
That will likely continue to weigh on stocks overall as borrowing costs increase. Overall, earnings in the S&P 500 are expected to fall 5.7% in the second quarter, largely due to declining margins, Refintiv data showed.
Despite that dim picture, "cheap" valuations and stable healthcare earnings make the sector increasingly attractive to invest in if the economy does slow in the second half, said Sameer Samana, seniorglobal marketstrategist for Wells Fargo Investment Institute.
The healthcare sector trades at a forward price-to-earnings ratio of 17.6, well below the 20.1 ratio of the broad S&P 500.
"We think the Fed will do whatever it takes to get inflation back down close to 2%, and that's why we think we will see a Fed-induced recession" in the coming months, he said.
HEALTHCARE, FINANCIALS
Medical devices and diagnostics are still benefiting from a backlog of delayed care during the coronavirus pandemic, and demand could continue to grow regardless of the direction of the economy, said Max Wasserman, a portfolio manager at Miramar Capital. He is bullish on companies such as Abbott Laboratories ABT.N, which is down nearly 3% year to date.
"As things continue reopening we expect to see more data that confirms that people are coming back into the healthcare system," he said.
Financials will likely continue to benefit from the Fed rate-hiking and the belief that worst of this year's regional banking crisis has passed, said Tom Ognar, a portfolio manager at Allspring Global Investments.
He is focusing on companies such as LPL Financial Holdings Inc LPLA.O and Morgan Stanley MS.N in the wealth management sector that appear to have more secular growth opportunities than the big banks, he said.
Big banks start reporting second-quarter results next week.
"If rates stay higher for longer and the Fed has to battle inflation for longer that will only mean that these companies will earn more for longer and buy back more stock," he said.
A market shift away from the handful of megacap technology and growth stocks that have powered the rally in the S&P 500 is not a given, cautioned John Quealy, chief investment officer at Trillium Asset Management.
"The cash flow profiles of some of those (megacap) companies are tremendously attractive, especially if we fall into a recessionary environment."
Overall, the Russell 1000 Growth Index is up 27.5% year to date, compared with a 2.9% gain in the financials and healthcare-heavy Russell 1000 Value.
Yet a continued rally in megacaps will likely stretch their valuations further, prompting some investors to rotate toward healthcare and financials, LPL Financial's Krosby said.
"Everything is at a discount."
Energy, Materials, Healthcare Earnings Expected to Slide https://tmsnrt.rs/3JM4MOm
(Reporting by David Randall; editing by Megan Davies, Michelle Price and Richard Chang)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S. economy added the fewest jobs in 2-1/2 years in June, but persistently strong wage growth pointed to still-tight labor market conditions, , all but ensuring the Federal Reserve will resume raising interest rates later this month. Medical devices and diagnostics are still benefiting from a backlog of delayed care during the coronavirus pandemic, and demand could continue to grow regardless of the direction of the economy, said Max Wasserman, a portfolio manager at Miramar Capital. Financials will likely continue to benefit from the Fed rate-hiking and the belief that worst of this year's regional banking crisis has passed, said Tom Ognar, a portfolio manager at Allspring Global Investments.
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Global fund managers increased their allocations to healthcare and banks by about 5 percentage points in June, while cutting holdings of popular recession plays such as cash and consumer staples companies, BofA Global said. Despite that dim picture, "cheap" valuations and stable healthcare earnings make the sector increasingly attractive to invest in if the economy does slow in the second half, said Sameer Samana, seniorglobal marketstrategist for Wells Fargo Investment Institute. Energy, Materials, Healthcare Earnings Expected to Slide https://tmsnrt.rs/3JM4MOm (Reporting by David Randall; editing by Megan Davies, Michelle Price and Richard Chang) ((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Global fund managers increased their allocations to healthcare and banks by about 5 percentage points in June, while cutting holdings of popular recession plays such as cash and consumer staples companies, BofA Global said. Despite that dim picture, "cheap" valuations and stable healthcare earnings make the sector increasingly attractive to invest in if the economy does slow in the second half, said Sameer Samana, seniorglobal marketstrategist for Wells Fargo Investment Institute. He is focusing on companies such as LPL Financial Holdings Inc LPLA.O and Morgan Stanley MS.N in the wealth management sector that appear to have more secular growth opportunities than the big banks, he said.
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Global fund managers increased their allocations to healthcare and banks by about 5 percentage points in June, while cutting holdings of popular recession plays such as cash and consumer staples companies, BofA Global said. "We think the Fed will do whatever it takes to get inflation back down close to 2%, and that's why we think we will see a Fed-induced recession" in the coming months, he said. Yet a continued rally in megacaps will likely stretch their valuations further, prompting some investors to rotate toward healthcare and financials, LPL Financial's Krosby said.
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14978.0
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2023-07-07 00:00:00 UTC
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Midyear ETF Market Outlook & Investing Strategies
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AAPL
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https://www.nasdaq.com/articles/midyear-etf-market-outlook-investing-strategies
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nan
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nan
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(1:20) - BlackRock's Investment Guide: What Should Investors Expect In The 2nd Half?
(6:50) - What Are The Three Themes That Could Drive Your Portfolio?
(15:00) - Investing Into Mega Forces That Will Revolutionize Industries
(19:35) - Breaking Down The Recent ETF Inflows: What Should You Know Right Now?
(24:20) - Episode Roundup: AGG, BND, QUAL, DGRO, VIG, USMV, IRBO, BOTZ
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for the second half of 2023. BlackRock, the world’s largest asset manager, offers more than 400 US-listed ETFs.
BlackRock expects inflation to remain sticky, forcing the Fed to keep rates higher for longer. In this environment, investors may want to be nimble with their asset allocation based on incoming macroeconomic data.
The asset manager recommends focusing on bonds as an income generator in portfolios. Investors could consider the iShares Core U.S. Aggregate Bond ETF AGG or the Vanguard Total Bond Market ETF BND.
The firm expects a mild slowdown but thinks that the near-term upside for markets is capped and that downside risks are underappreciated. Investors could consider high-quality large-cap companies.
The iShares MSCI USA Quality Factor ETF QUAL and the SPDR MSCI USA StrategicFactors ETF QUS provide exposure to high-quality stocks. Apple AAPL, Microsoft MSFT, and Nvidia NVDA are the top holdings in these ETFs.
Low volatility ETFs like the iShares MSCI USA Min Vol Factor ETF USMV underperform the broader indexes during strong bull markets but hold up relatively well during market declines.
BlackRock’s third theme is all about capitalizing on megaforces like AI . Take a look at the iShares Robotics & Artificial Intelligence Multisector ETF IRBO and the Global X Robotics & Artificial Intelligence ETF BOTZ.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
Disclosure: Neena owns QUAL & IRBO in the ETF Investor Portfolio.
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
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports
Vanguard Total Bond Market ETF (BND): ETF Research Reports
iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports
iShares Core U.S. Aggregate Bond ETF (AGG): ETF Research Reports
Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL, Microsoft MSFT, and Nvidia NVDA are the top holdings in these ETFs. 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 iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports Vanguard Total Bond Market ETF (BND): ETF Research Reports iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports iShares Core U.S. (24:20) - Episode Roundup: AGG, BND, QUAL, DGRO, VIG, USMV, IRBO, BOTZ Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for the second half of 2023.
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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 iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports Vanguard Total Bond Market ETF (BND): ETF Research Reports iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports iShares Core U.S. Apple AAPL, Microsoft MSFT, and Nvidia NVDA are the top holdings in these ETFs. The iShares MSCI USA Quality Factor ETF QUAL and the SPDR MSCI USA StrategicFactors ETF QUS provide exposure to high-quality stocks.
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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 iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports Vanguard Total Bond Market ETF (BND): ETF Research Reports iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports iShares Core U.S. Apple AAPL, Microsoft MSFT, and Nvidia NVDA are the top holdings in these ETFs. (24:20) - Episode Roundup: AGG, BND, QUAL, DGRO, VIG, USMV, IRBO, BOTZ Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for the second half of 2023.
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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 iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports Vanguard Total Bond Market ETF (BND): ETF Research Reports iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports iShares Core U.S. Apple AAPL, Microsoft MSFT, and Nvidia NVDA are the top holdings in these ETFs. The asset manager recommends focusing on bonds as an income generator in portfolios.
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14979.0
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2023-07-07 00:00:00 UTC
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Technology Sector Update for 07/07/2023: UBER, DASH, BABA, META, AAPL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-07-07-2023%3A-uber-dash-baba-meta-aapl
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nan
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nan
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Tech stocks were mixed late Friday, with the Technology Select Sector SPDR Fund (XLK) down 0.4% and the Philadelphia Semiconductor index adding 0.1%.
In company news, Uber (UBER) shares rose 2%, and DoorDash (DASH) climbed nearly 1%. A New York state judge temporarily halted a new law requiring minimum wage payments for app-based food delivery workers, Bloomberg reported.
Alibaba's (BABA) cloud division unveiled the Tongyi Wanxiang artificial intelligence image generator that will be initially available in beta form to enterprise clients, Reuters reported. Alibaba shares were up 8%.
Meta Platforms (META) Chief Executive Mark Zuckerberg said that the user count for its new app Threads has reached 70 million. Meta shares were shedding 0.4%.
Apple (AAPL) aims to launch its Vision Pro mixed-reality headset with appointments and in-store promotions in some US markets in early 2024 with the product expected to be the iPhone maker's most complex launch ever, Bloomberg reported. Apple was down 0.4%.
The views and 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) aims to launch its Vision Pro mixed-reality headset with appointments and in-store promotions in some US markets in early 2024 with the product expected to be the iPhone maker's most complex launch ever, Bloomberg reported. Tech stocks were mixed late Friday, with the Technology Select Sector SPDR Fund (XLK) down 0.4% and the Philadelphia Semiconductor index adding 0.1%. A New York state judge temporarily halted a new law requiring minimum wage payments for app-based food delivery workers, Bloomberg reported.
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Apple (AAPL) aims to launch its Vision Pro mixed-reality headset with appointments and in-store promotions in some US markets in early 2024 with the product expected to be the iPhone maker's most complex launch ever, Bloomberg reported. In company news, Uber (UBER) shares rose 2%, and DoorDash (DASH) climbed nearly 1%. A New York state judge temporarily halted a new law requiring minimum wage payments for app-based food delivery workers, Bloomberg reported.
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Apple (AAPL) aims to launch its Vision Pro mixed-reality headset with appointments and in-store promotions in some US markets in early 2024 with the product expected to be the iPhone maker's most complex launch ever, Bloomberg reported. Alibaba's (BABA) cloud division unveiled the Tongyi Wanxiang artificial intelligence image generator that will be initially available in beta form to enterprise clients, Reuters reported. Meta Platforms (META) Chief Executive Mark Zuckerberg said that the user count for its new app Threads has reached 70 million.
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Apple (AAPL) aims to launch its Vision Pro mixed-reality headset with appointments and in-store promotions in some US markets in early 2024 with the product expected to be the iPhone maker's most complex launch ever, Bloomberg reported. Tech stocks were mixed late Friday, with the Technology Select Sector SPDR Fund (XLK) down 0.4% and the Philadelphia Semiconductor index adding 0.1%. Alibaba shares were up 8%.
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14980.0
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2023-07-07 00:00:00 UTC
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Is Franklin U.S. Large Cap Multifactor Index ETF (FLQL) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-franklin-u.s.-large-cap-multifactor-index-etf-flql-a-strong-etf-right-now-3
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nan
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nan
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A smart beta exchange traded fund, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) debuted on 04/26/2017, and offers broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $903.28 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. This particular fund seeks to match the performance of the LibertyQ US Large Cap Equity Index before fees and expenses.
The LibertyQ US Large Cap Equity Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.15%.
The fund has a 12-month trailing dividend yield of 1.91%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 33% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.39% of the fund's total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO).
Its top 10 holdings account for approximately 26.77% of FLQL's total assets under management.
Performance and Risk
The ETF return is roughly 13.41% so far this year and is up about 15.30% in the last one year (as of 07/07/2023). In the past 52-week period, it has traded between $36.61 and $44.77.
The ETF has a beta of 0.92 and standard deviation of 16.21% for the trailing three-year period. With about 212 holdings, it effectively diversifies company-specific risk.
Alternatives
Franklin U.S. Large Cap Multifactor Index ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $332.84 billion in assets, SPDR S&P 500 ETF has $419.12 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.39% of the fund's total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.39% of the fund's total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO). A smart beta exchange traded fund, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) debuted on 04/26/2017, and offers broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.39% of the fund's total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO). A smart beta exchange traded fund, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) debuted on 04/26/2017, and offers broad exposure to the Style Box - Large Cap Blend category of the market.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.39% of the fund's total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) debuted on 04/26/2017, and offers broad exposure to the Style Box - Large Cap Blend category of the market.
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14981.0
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2023-07-07 00:00:00 UTC
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Should iShares Russell Top 200 ETF (IWL) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-etf-iwl-be-on-your-investing-radar-6
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nan
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nan
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The iShares Russell Top 200 ETF (IWL) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $930.69 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.38%.
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 31.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.80% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 33.15% of total assets under management.
Performance and Risk
IWL seeks to match the performance of the Russell Top 200 Index before fees and expenses. The Russell Top 200 Index is a float-adjusted, capitalization-weighted index that measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has added roughly 18.32% so far this year and it's up approximately 17.38% in the last one year (as of 07/07/2023). In the past 52-week period, it has traded between $84.55 and $106.73.
The ETF has a beta of 0.99 and standard deviation of 18.47% for the trailing three-year period, making it a medium risk choice in the space. With about 197 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWL is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $332.84 billion in assets, SPDR S&P 500 ETF has $419.12 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
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.
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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iShares Russell Top 200 ETF (IWL): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.80% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The iShares Russell Top 200 ETF (IWL) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.80% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares Russell Top 200 ETF (IWL) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.80% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell Top 200 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.80% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares Russell Top 200 ETF (IWL) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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14982.0
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2023-07-07 00:00:00 UTC
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Should Motley Fool 100 Index ETF (TMFC) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-motley-fool-100-index-etf-tmfc-be-on-your-investing-radar-7
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The Motley Fool 100 Index ETF (TMFC) was launched on 01/30/2018, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Motley Fool Asset Management. It has amassed assets over $502.68 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
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
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. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.20%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 42% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.14% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG).
The top 10 holdings account for about 56.86% of total assets under management.
Performance and Risk
TMFC seeks to match the performance of the MOTLEY FOOL 100 INDEX before fees and expenses. The Motley Fool 100 Index is an index of US stocks, recommended by The Motley Fool, LLC (TMF) analysts, either in the Motley Fool IQ analyst opinion database or TMF research publications. From this recommendation pool, the index chooses the 100 largest US companies by market cap and weights them according to market capitalization. The index undergoes quarterly reconstitution.
The ETF has added about 33.13% so far this year and it's up approximately 23.66% in the last one year (as of 07/07/2023). In the past 52-week period, it has traded between $29.82 and $40.80.
The ETF has a beta of 1.07 and standard deviation of 22.79% for the trailing three-year period. With about 99 holdings, it effectively diversifies company-specific risk.
Alternatives
Motley Fool 100 Index 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, TMFC is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $91.94 billion in assets, Invesco QQQ has $198.98 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
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.
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
Motley Fool 100 Index ETF (TMFC): ETF Research Reports
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.14% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : 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. The Motley Fool 100 Index ETF (TMFC) was launched on 01/30/2018, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.14% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Costs When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.14% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). The Motley Fool 100 Index ETF (TMFC) was launched on 01/30/2018, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.14% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : 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. The Motley Fool 100 Index ETF (TMFC) was launched on 01/30/2018, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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14983.0
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2023-07-07 00:00:00 UTC
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Should John Hancock Multifactor Large Cap ETF (JHML) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-john-hancock-multifactor-large-cap-etf-jhml-be-on-your-investing-radar-8
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The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by John Hancock. It has amassed assets over $766.34 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.29%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.45%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 23% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 15.01% of total assets under management.
Performance and Risk
JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses. The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
The ETF return is roughly 11.07% so far this year and was up about 14.27% in the last one year (as of 07/07/2023). In the past 52-week period, it has traded between $45.43 and $54.99.
The ETF has a beta of 1.01 and standard deviation of 17.72% for the trailing three-year period, making it a medium risk choice in the space. With about 771 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JHML is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $332.84 billion in assets, SPDR S&P 500 ETF has $419.12 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $766.34 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Alternatives John Hancock Multifactor Large Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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14984.0
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2023-07-07 00:00:00 UTC
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Is iShares MSCI ACWI Low Carbon Target ETF (CRBN) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-ishares-msci-acwi-low-carbon-target-etf-crbn-a-strong-etf-right-now-8
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Making its debut on 12/08/2014, smart beta exchange traded fund iShares MSCI ACWI Low Carbon Target ETF (CRBN) provides investors broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $854.53 million, which makes it one of the larger ETFs in the World ETFs. This particular fund, before fees and expenses, seeks to match the performance of the MSCI ACWI Low Carbon Target Index.
The MSCI ACWI Low Carbon Target Index is designed to address two dimensions of carbon exposure ? carbon emissions and potential carbon emissions from fossil fuel reserves.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.20%.
The fund has a 12-month trailing dividend yield of 1.76%.
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.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
CRBN's top 10 holdings account for about 15.89% of its total assets under management.
Performance and Risk
Year-to-date, the iShares MSCI ACWI Low Carbon Target ETF has added about 12.54% so far, and is up about 14.19% over the last 12 months (as of 07/07/2023). CRBN has traded between $126.30 and $156.70 in this past 52-week period.
The fund has a beta of 0.95 and standard deviation of 17.34% for the trailing three-year period, which makes CRBN a low risk choice in this particular space. With about 1350 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI ACWI Low Carbon Target ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $7.28 billion in assets, iShares ESG Aware MSCI USA ETF has $14.55 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares MSCI ACWI Low Carbon Target ETF (CRBN): 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
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): 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 iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. This particular fund, before fees and expenses, seeks to match the performance of the MSCI ACWI Low Carbon Target Index.
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Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): 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 iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): 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 iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Making its debut on 12/08/2014, smart beta exchange traded fund iShares MSCI ACWI Low Carbon Target ETF (CRBN) provides investors broad exposure to the World ETFs category of the market.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): 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 iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 12/08/2014, smart beta exchange traded fund iShares MSCI ACWI Low Carbon Target ETF (CRBN) provides investors broad exposure to the World ETFs category of the market.
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14985.0
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2023-07-07 00:00:00 UTC
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My Top Growth Cryptocurrencies to Buy in July
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https://www.nasdaq.com/articles/my-top-growth-cryptocurrencies-to-buy-in-july
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For the first six months of the year, Bitcoin (CRYPTO: BTC) was the standout performer in the crypto market. Bitcoin is up more than 80% for the year, now accounting for a staggering 50% of the capitalization of the entire crypto market. But there's more to crypto than just Bitcoin.
Right now, I have two growth cryptocurrencies on my radar for July: Solana (CRYPTO: SOL) and Render Token (CRYPTO: RNDR). Due to their superior growth prospects, both have the potential to soar much higher than Bitcoin in the second half of 2023. Let's take a closer look.
Solana
Solana is a top Layer-1 blockchain once known as a potential "Ethereum-killer." The problem is that Solana is still trying to recover from the meltdown of crypto exchange FTX last year. Due to its extensive links with the former chief executive officer of the exchange, Sam Bankman-Fried, Solana was arguably the crypto hit hardest by the FTX collapse.
On top of that, in early June, the U.S. Securities and Exchange Commission (SEC) named Solana as an "unregistered security" in lawsuits filed against cryptocurrency exchanges Coinbase Global (NASDAQ: COIN) and Binance (CRYPTO: BNB). So let's be clear: Solana is hardly a safe investment, and you have to be willing to take on quite a bit of risk.
That said, Solana has performed significantly better than expected this year. Despite so many regulatory issues swirling around it, Solana has almost doubled year. And at less than $20, it is still well below where it was trading when the FTX collapse occurred. As Solana's core metrics, such as those related to non-fungible tokens (NFTs), return to pre-FTX levels, I fully expect Solana to regain its price level from November 2022.
As a sign of better things yet to come, Solana recently surpassed Ethereum in terms of 24-hour NFT sales volume for the first time in its history. But that's just the start of the Solana comeback. In mid-April, Solana introduced its $1,000 Saga "crypto phone." This mobile phone launch is the next key step in the company's mobile crypto strategy, which has been under way for over a year.
From my perspective, the launch of a new hardware product this year is a potentially huge growth catalyst for Solana and one big reason I'm bullish on the company's long-term future prospects. According to Solana, the new mobile crypto strategy could result in the onboarding of many new blockchain users around the globe.
Render Token
Render is the crypto token of the Render Network, a distributed graphics processing unit (GPU) rendering network built using blockchain technology. In layperson's terms, the Render Network is where you go when you need more computing power for "rendering" (i.e., creating) hyper-realistic digital worlds. This is important for video games, metaverse worlds, and just about any form of high-end entertainment content. As such, Render has the support of some top names in Hollywood, including renowned film director J.J. Abrams.
From my perspective, Render is a "pick-and-shovel play" for the digital gold rush. Instead of trying to determine which metaverse world or video game will be the next big hit, you're investing in a network powering the creation of all forms of digital entertainment. In short, Render is providing picks and shovels to digital creators. If you've ever created a brief video on your computer and then waited a seemingly interminable amount of time for it to render, you can appreciate the problem Render is trying to solve.
Image source: Getty Images.
Year to date, Render Token is up almost 400%. And there could be plenty more growth ahead since the need for raw computing power is not going away anytime soon. Consider, for example, the impact new generative artificial intelligence (AI) technology has already had on creativity. With just a single text prompt, it's now possible to create ultra-realistic photos and videos. As another example, take Apple's (NASDAQ: AAPL) recent launch of a $3,000 mixed-reality headset. Developers will need to create 3D, immersive experiences for this headset, right?
But can they outperform Bitcoin?
In the first six months of 2023, only a handful of top cryptocurrencies with market capitalizations above $500 million outperformed Bitcoin. Both Solana and Render were in that group. The big question, of course, is whether they can continue to outperform Bitcoin over the second half of 2023. There is, for example, still quite a bit of regulatory risk swirling around Solana.
So if you're risk-averse or skeptical that the crypto market can rally much higher this year, you might be better off just sticking to Bitcoin. But if you have a big risk appetite and are looking for huge potential growth opportunities in the crypto market, both Solana and Render could be worth a closer look.
10 stocks we like better than Solana
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Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, Coinbase Global, Render Token, and Solana. 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 another example, take Apple's (NASDAQ: AAPL) recent launch of a $3,000 mixed-reality headset. Due to its extensive links with the former chief executive officer of the exchange, Sam Bankman-Fried, Solana was arguably the crypto hit hardest by the FTX collapse. From my perspective, the launch of a new hardware product this year is a potentially huge growth catalyst for Solana and one big reason I'm bullish on the company's long-term future prospects.
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As another example, take Apple's (NASDAQ: AAPL) recent launch of a $3,000 mixed-reality headset. Right now, I have two growth cryptocurrencies on my radar for July: Solana (CRYPTO: SOL) and Render Token (CRYPTO: RNDR). In layperson's terms, the Render Network is where you go when you need more computing power for "rendering" (i.e., creating) hyper-realistic digital worlds.
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As another example, take Apple's (NASDAQ: AAPL) recent launch of a $3,000 mixed-reality headset. Right now, I have two growth cryptocurrencies on my radar for July: Solana (CRYPTO: SOL) and Render Token (CRYPTO: RNDR). Render Token Render is the crypto token of the Render Network, a distributed graphics processing unit (GPU) rendering network built using blockchain technology.
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As another example, take Apple's (NASDAQ: AAPL) recent launch of a $3,000 mixed-reality headset. But there's more to crypto than just Bitcoin. In layperson's terms, the Render Network is where you go when you need more computing power for "rendering" (i.e., creating) hyper-realistic digital worlds.
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2023-07-07 00:00:00 UTC
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Nearly Half of Warren Buffett's Dividend Income Comes From Just 3 Stocks
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https://www.nasdaq.com/articles/nearly-half-of-warren-buffetts-dividend-income-comes-from-just-3-stocks
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For the better part of six decades, Warren Buffett, the billionaire CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has been dazzling Wall Street with his investing prowess. As of June 30, 2023, Berkshire's Class A shares (BRK.A) have climbed an aggregate of 4,184,390% since the Oracle of Omaha took the reins in the mid-1960s.
Buffett's secret to success is truly no secret at all. For decades, he's discussed how he qualifies his investments and laid out other intangible factors that may work into his investment process.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
However, one catalyst that doesn't get nearly enough credit for Berkshire Hathaway's phenomenal performance since the mid-1960s is Warren Buffett's love of dividend stocks. Companies that pay a regular dividend are almost always profitable on a recurring basis and have well-defined long-term growth outlooks.
Perhaps more importantly, income stocks have been significant long-term outperformers, when compared to stocks that don't offer a dividend. According to a study published in 2013 from J.P. Morgan Asset Management, a division of banking giant JPMorgan Chase, publicly traded companies that initiated and grew their payouts between 1972 and 2012 delivered an annualized return of 9.5%. By comparison, publicly traded companies not offering a dividend generated just a 1.6% annualized return over the same 40-year stretch.
Berkshire Hathaway's investment portfolio is packed with profitable, time-tested, dividend-paying stocks. In 2023 alone, Buffett and his team should oversee the collection of around $6 billion in dividend income.
But what you might not realize is that close to half of this dividend income -- approximately $2.75 billion -- will come from just three stocks.
Occidental Petroleum: $961,373,018 in annual dividend income (includes preferred stock dividends)
One of the more interesting aspects of Berkshire Hathaway's investment portfolio is that two of its three most-prolific income stocks have very modest yields. The first of the two being energy stock Occidental Petroleum (NYSE: OXY), which sports just a 1.3% yield.
Since the start of 2022, Warren Buffett and his investing lieutenants, Ted Weschler and Todd Combs, have overseen the purchase of more than 224 million shares of Occidental common stock. These shares are netting Berkshire $161,373,018 in annual dividend income.
However, Berkshire Hathaway also holds $10 billion worth of Occidental Petroleum preferred stock that yields 8% annually -- ergo, the extra $800 million in annual income. This $10 billion in preferred stock stems from capital Berkshire supplied to Occidental in 2019 to facilitate its acquisition of Anadarko.
The 25.1% stake Berkshire Hathaway has taken in Occidental Petroleum over the past 18 months is indicative of the belief that energy commodities, such as crude oil and natural gas, will tread water or (more than likely) rise over time. A couple of macro catalysts back up the idea that crude prices can remain elevated.
First, there's the ongoing war between Russia and Ukraine, which has thrown a pretty big monkey wrench into Europe's energy supply needs. There's also the COVID-19 pandemic. Even though the worst of the pandemic appears to be over, energy companies worldwide reduced their capital investments for the past three-plus years. This lack of investment in new drilling and infrastructure is likely to keep a tight lid on crude oil supply. That's usually a recipe for higher spot oil prices.
Although higher energy commodity prices would be good news for the entire oil and gas sector, it's particularly important for Occidental Petroleum. Despite being an integrated operator with downstream chemical plants, Occidental generates the bulk of its revenue from drilling. In other words, it's far more sensitive to swings in the spot price of crude oil than its peers. Since Occidental is still lugging around a sizable amount of debt tied to its Anadarko acquisition, higher oil prices are needed to generate the cash flow necessary to continue reducing its debt.
Bank of America: $908,909,765 in annual dividend income
The second most-important dividend stock in Warren Buffett's portfolio is Bank of America (NYSE: BAC), which is more commonly known as "BofA." The more than 1 billion shares of BofA held by Berkshire Hathaway nets Buffett's company close to $909 million in yearly dividend income.
Note, as of the time of this writing on July 2, 2023, Bank of America hadn't made an announcement regarding its dividend payout for the upcoming year. However, it had no trouble passing the recent Federal Reserve stress test, and a number of its peers have modestly raised their quarterly payouts. At worst, BofA should generate nearly $909 million for Berkshire Hathaway over the next 12 months.
Bank stocks are beneficiaries of a simple numbers game. Even though banks are cyclical, and therefore prone to weakness during recessions, the length of recessions is substantially shorter than expansions. Whereas every recession after World War II has lasted between two and 18 months, expansions are almost always measured in multiple years. Lengthy periods of growth are what allow banks like BofA to reap the rewards of loan growth.
Speaking of loans, Bank of America finds itself ideally positioned during the current rate-hiking cycle. Among big banks, none is more sensitive to changes in interest rates than BofA. With this rate-hiking cycle being among the steepest on record, it means Bank of America is generating billions of dollars in added net-interest income each quarter. Keep in mind that Fed Chair Jay Powell expects two additional rate hikes this year.
Another reason we're seeing Bank of America return plenty of capital to its shareholders is because of its wise investments in digitization. As of the March-ended quarter, BofA had 45 million active customers banking online or via mobile app. What's more, 51% of total sales were completed digitally, and 68 million more payments were sent via Zelle than with a check. This digital push is considerably cheaper than in-person interactions for Bank of America, and it's having a positive impact on its operating efficiency.
Image source: Apple.
Apple: $878,937,967 in annual dividend income
The third big-time dividend stock that collectively accounts for nearly half of the annual dividend income Warren Buffett oversees for Berkshire Hathaway is Apple (NASDAQ: AAPL).
As a result of its strong share-price performance, Apple sports a rather unimpressive 0.5% yield. But because the Oracle of Omaha has 47% of his company's invested assets tied up in Apple, the nearly 915.6 million shares owned equates to almost $879 million in yearly dividend income.
During Berkshire Hathaway's annual shareholder meeting in early May, Warren Buffett referred to Apple as "a better business than any we own." It's a strong statement that reflects Apple's phenomenal management, ongoing innovation, and its unrivaled capital-return program.
Apple's leadership often fails to receive the credit it's due for steering the ship. Since taking over as CEO in 2011, Tim Cook has maintained his company's dominance in U.S. smartphone market share, as well as helped Apple evolve as a platform's company. The steady growth in subscription services should help the company steadily improve its operating margin over time, as well as lessen the sales volatility experienced during major iPhone replacement cycles.
It's also a company that's allows its innovations to do the talking. For instance, there have been numerous evolutions of the iPhone to account for wireless infrastructure download-speed upgrades. Likewise, the recent unveiling of the Vision Pro, a spatial computer worn on a users' face, represents the next potential leap in Apple's product lineup.
But there's pretty much no question that the reason Warren Buffett loves Apple is the company's unsurpassed capital-return program. Even with just a 0.5% yield, Apple's nominal-dollar payout for dividends tops $15 billion. That's among the highest in the world.
Further, Apple has repurchased approximately $586 billion worth of its common stock over the last 10 years. The amount of money Apple has put to work buying back its stock is more than the current market cap of 492 out of the remaining 499 S&P 500 companies.
10 stocks we like better than Occidental Petroleum
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 Occidental Petroleum 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 June 30, 2023
JPMorgan Chase and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and JPMorgan Chase. The Motley Fool 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: $878,937,967 in annual dividend income The third big-time dividend stock that collectively accounts for nearly half of the annual dividend income Warren Buffett oversees for Berkshire Hathaway is Apple (NASDAQ: AAPL). According to a study published in 2013 from J.P. Morgan Asset Management, a division of banking giant JPMorgan Chase, publicly traded companies that initiated and grew their payouts between 1972 and 2012 delivered an annualized return of 9.5%. The 25.1% stake Berkshire Hathaway has taken in Occidental Petroleum over the past 18 months is indicative of the belief that energy commodities, such as crude oil and natural gas, will tread water or (more than likely) rise over time.
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Apple: $878,937,967 in annual dividend income The third big-time dividend stock that collectively accounts for nearly half of the annual dividend income Warren Buffett oversees for Berkshire Hathaway is Apple (NASDAQ: AAPL). However, Berkshire Hathaway also holds $10 billion worth of Occidental Petroleum preferred stock that yields 8% annually -- ergo, the extra $800 million in annual income. The more than 1 billion shares of BofA held by Berkshire Hathaway nets Buffett's company close to $909 million in yearly dividend income.
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Apple: $878,937,967 in annual dividend income The third big-time dividend stock that collectively accounts for nearly half of the annual dividend income Warren Buffett oversees for Berkshire Hathaway is Apple (NASDAQ: AAPL). Occidental Petroleum: $961,373,018 in annual dividend income (includes preferred stock dividends) One of the more interesting aspects of Berkshire Hathaway's investment portfolio is that two of its three most-prolific income stocks have very modest yields. Bank of America: $908,909,765 in annual dividend income The second most-important dividend stock in Warren Buffett's portfolio is Bank of America (NYSE: BAC), which is more commonly known as "BofA."
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Apple: $878,937,967 in annual dividend income The third big-time dividend stock that collectively accounts for nearly half of the annual dividend income Warren Buffett oversees for Berkshire Hathaway is Apple (NASDAQ: AAPL). However, one catalyst that doesn't get nearly enough credit for Berkshire Hathaway's phenomenal performance since the mid-1960s is Warren Buffett's love of dividend stocks. Bank of America: $908,909,765 in annual dividend income The second most-important dividend stock in Warren Buffett's portfolio is Bank of America (NYSE: BAC), which is more commonly known as "BofA."
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14987.0
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2023-07-07 00:00:00 UTC
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Taiwan June exports slump the most in 14 years on weak China, US demand
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https://www.nasdaq.com/articles/taiwan-june-exports-slump-the-most-in-14-years-on-weak-china-us-demand
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By Roger Tung and Faith Hung
TAIPEI, July 7 (Reuters) - Taiwan's exports fell more than expected in June, slumping the most in almost 14 years, as the island struggled with persistent weakness in demand from the U.S. and China for its hi-tech products.
AsTaiwan is often considered a bellwether of global electronics demand, the sharp slump adds to worries about a much weaker second half of the year.
June exports plunged 23.4% in value from a year earlier to $32.32 billion, the finance ministry said on Friday, the 10th consecutive month of decline. That was worse than a fall of 14.1% in May and missed a Reuters poll forecast for a 13.35% contraction.
Taiwan's export-reliant economy will probably grow more slowly in 2023 than previously forecast, the government has said. First-quarter GDP fell by a revised 2.87% year-on-year, its worst performance since 2009 and suggesting the economy has slipped into recession.
Total shipments of electronic components in June fell 21.3% from the year before to $13.58 billion, with semiconductor exports down 20.8%.
The outlook remains grim, the ministry said on Friday, adding that it expected exports in July to drop between 16% and 19.5% on-year and forecasting "considerable pressure" on foreign trade from global interest rate rises to control inflation as well as broader global economic uncertainties.
The chance that exports will return to growth in September has "dramatically decreased," the ministry said, adding that would be more likely to occur in November.
Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, besides providing chips for auto companies and lower-end consumer goods.
United Microelectronics Corp 2303.TW, a smaller competitor of TSMC's, reported on Thursday that June sales dropped 23.2% on the year.
At $11.99 billion in June, Taiwan's exports to China were down 22.2% from a year earlier, after the prior month's drop of 19.4%.
Exports to the United States fell 25.2% in June, after slipping an annual 3.5% in May.
Taiwan's June imports, often seen as a leading indicator of re-exports of finished products, dropped 29.9% to $26.36 billion. That compared with economists' forecast of a 16.7% fall and a 21.7% decline in May.
(Reporting by Roger Tung and Faith Hung; Editing by Ben Blanchard, Devika Syamnath and Kim Coghill)
((faith.hung@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, besides providing chips for auto companies and lower-end consumer goods. By Roger Tung and Faith Hung TAIPEI, July 7 (Reuters) - Taiwan's exports fell more than expected in June, slumping the most in almost 14 years, as the island struggled with persistent weakness in demand from the U.S. and China for its hi-tech products. AsTaiwan is often considered a bellwether of global electronics demand, the sharp slump adds to worries about a much weaker second half of the year.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, besides providing chips for auto companies and lower-end consumer goods. By Roger Tung and Faith Hung TAIPEI, July 7 (Reuters) - Taiwan's exports fell more than expected in June, slumping the most in almost 14 years, as the island struggled with persistent weakness in demand from the U.S. and China for its hi-tech products. The outlook remains grim, the ministry said on Friday, adding that it expected exports in July to drop between 16% and 19.5% on-year and forecasting "considerable pressure" on foreign trade from global interest rate rises to control inflation as well as broader global economic uncertainties.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, besides providing chips for auto companies and lower-end consumer goods. By Roger Tung and Faith Hung TAIPEI, July 7 (Reuters) - Taiwan's exports fell more than expected in June, slumping the most in almost 14 years, as the island struggled with persistent weakness in demand from the U.S. and China for its hi-tech products. The outlook remains grim, the ministry said on Friday, adding that it expected exports in July to drop between 16% and 19.5% on-year and forecasting "considerable pressure" on foreign trade from global interest rate rises to control inflation as well as broader global economic uncertainties.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, besides providing chips for auto companies and lower-end consumer goods. By Roger Tung and Faith Hung TAIPEI, July 7 (Reuters) - Taiwan's exports fell more than expected in June, slumping the most in almost 14 years, as the island struggled with persistent weakness in demand from the U.S. and China for its hi-tech products. Total shipments of electronic components in June fell 21.3% from the year before to $13.58 billion, with semiconductor exports down 20.8%.
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14988.0
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2023-07-07 00:00:00 UTC
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3 Large Semiconductor Makers Offering Dividends & Price Growth
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https://www.nasdaq.com/articles/3-large-semiconductor-makers-offering-dividends-price-growth
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Investors seeking dividends may overlook semiconductors, but some companies from the industry, including Broadcom Inc. (NASDAQ: AVGO), NXP Semiconductors N.V. (NASDAQ: NXPI) and United Microelectronics Corp. (NYSE: UMC) are showing strong price growth and also pay dividends.
Semiconductor stocks, as a group, are not typically known for paying high dividends. The industry is highly competitive, and often characterized by its fast-paced nature. That means companies reinvest profits into research and development, capital expenditures, and innovation to launch new projects and keep up with ever-changing demand. For example, the recent demand for AI chips has sent companies scurrying to make investments in that area.
That focus on growth and reinvestment often results in lower dividend payouts compared to more mature and income-oriented sectors.
Some chip companies pay dividends, although it is less common compared to other sectors. Chip companies may choose to pay dividends if they are in a mature stage, generate consistent income, and want to attract investors. Dividends can signal to the market that a company is stable.
Here’s a look at three chip companies that recently increased their dividends.
Broadcom's New Deal With Apple
The California-based company recently inked a multi-billion dollar deal with Apple Inc. (NASDAQ: AAPL) for chips that help iPhones and other Apple devices communicate with mobile data networks. It’s an extension of a previous contract the companies had, which had a June expiration date.
Broadcom, which has a long history of profitability, pays an annual dividend of $18.40. MarketBeat’s Broadcom dividend data show a yield of 2.17% and a 13-year track record of boosting the shareholder payout.
Broadcom stock has returned 37.75% in the past three months and 55.79% year-to-date, as the chip industry has flourished. The stock broke out of a cup-with-handle base in mid-May.
Broadcom’s analyst ratings show a view of “moderate buy” on the stock. Since the company’s most recent earnings report, in early June, nine analysts boosted their price targets on the stock.
Combining strong price appreciation with dividends can offer a balanced investment approach, although investing for price growth generally means taking more risk.
NXP Semiconductors Cleared Cup Base
Netherlands-based NXP manufactures semiconductors for applications including automotive, secure identification solutions, wireless communications, analog power management, and connectivity. It’s one of the largest chip producers for the automotive market.
The stock broke out of a cup-shaped pattern on June 14; shares are up 15.93% in the past month.
MarketBeat’s NXP Semiconductors dividend data reveal a yield of 1.99% and a yearly payout of $4.06. The company boosted its payout for the past three years.
Analysts expect NXP to grow earnings by 12% this year, a signal that the dividend may also be increased. Earnings grew at a rate of 29% in the most recent quarter, despite year-over-year revenue coming in flat.
On July 6, NXP said it doesn’t foresee any material impact on revenue from China’s latest round of export curbs, which apply to certain automotive and communications chips it makes.
NXP Semiconductors analyst ratings show a consensus view of “moderate buy.”
United Microelectronics Makes Chips For Others
United Microelectronics Corporation functions as a semiconductor foundry, meaning that it provides advanced technology and manufacturing services for chips designed by its customers.
The Taiwan-based company specializes in the production of integrated circuits for various applications and industries including consumer electronics, communications, and automotive.
It has a market capitalization of $19.20 billion and a solid track record of profitability.
United Microelectronics’ dividend yield is extremely healthy, at 5.87%. Keep in mind: As share prices decline, the yield rises. UMC’s stock is still down significantly from its December 2021 high, and the stock has been trading lower in the past two weeks.
Nonetheless, the longer-term trend has been positive, with the stock showing a year-to-date gain of 26.89% and a one-month gain of 1.42%.
That downward trend could continue if sales continue declining, as was the case in the most recent quarter, as well as in the month of June.
The company increased its dividend in each of the past three years. It pays a dividend yearly, rather than the more common quarterly payments of American companies.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Broadcom's New Deal With Apple The California-based company recently inked a multi-billion dollar deal with Apple Inc. (NASDAQ: AAPL) for chips that help iPhones and other Apple devices communicate with mobile data networks. That means companies reinvest profits into research and development, capital expenditures, and innovation to launch new projects and keep up with ever-changing demand. On July 6, NXP said it doesn’t foresee any material impact on revenue from China’s latest round of export curbs, which apply to certain automotive and communications chips it makes.
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Broadcom's New Deal With Apple The California-based company recently inked a multi-billion dollar deal with Apple Inc. (NASDAQ: AAPL) for chips that help iPhones and other Apple devices communicate with mobile data networks. Investors seeking dividends may overlook semiconductors, but some companies from the industry, including Broadcom Inc. (NASDAQ: AVGO), NXP Semiconductors N.V. (NASDAQ: NXPI) and United Microelectronics Corp. (NYSE: UMC) are showing strong price growth and also pay dividends. NXP Semiconductors Cleared Cup Base Netherlands-based NXP manufactures semiconductors for applications including automotive, secure identification solutions, wireless communications, analog power management, and connectivity.
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Broadcom's New Deal With Apple The California-based company recently inked a multi-billion dollar deal with Apple Inc. (NASDAQ: AAPL) for chips that help iPhones and other Apple devices communicate with mobile data networks. Investors seeking dividends may overlook semiconductors, but some companies from the industry, including Broadcom Inc. (NASDAQ: AVGO), NXP Semiconductors N.V. (NASDAQ: NXPI) and United Microelectronics Corp. (NYSE: UMC) are showing strong price growth and also pay dividends. Here’s a look at three chip companies that recently increased their dividends.
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Broadcom's New Deal With Apple The California-based company recently inked a multi-billion dollar deal with Apple Inc. (NASDAQ: AAPL) for chips that help iPhones and other Apple devices communicate with mobile data networks. Here’s a look at three chip companies that recently increased their dividends. The stock broke out of a cup-shaped pattern on June 14; shares are up 15.93% in the past month.
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14989.0
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2023-07-07 00:00:00 UTC
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3 Growth Stocks to Make Your ‘Get Rich’ Dreams Come True
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https://www.nasdaq.com/articles/3-growth-stocks-to-make-your-get-rich-dreams-come-true
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Growth stocks power an investors’ portfolio. These are stocks that consistently outperform the market over a long period of time. Since the 2008 financial crisis, growth stocks have been largely confined to shares of technology companies. With their innovations, increasingly large footprints, and rapidly-expanding earnings, tech stocks have dominated market performance over the last decade.
With the exception of 2022, when higher interest rates led to what came to be known as the “tech wreck,” the growth of tech stocks has continued largely unabated. This year, technology stocks have come roaring back in a big way.
The Nasdaq surged 33% in H1 2023, its strongest first half since 1983, outperforming the S&P 500’s 16% gain. With the markets surging into the year’s second half, let’s look at three growth stocks to make your “get rich” dreams come true.
Tesla (TSLA)
Source: franz12 / Shutterstock.com
Electric vehicle (EV) maker Tesla (NASDAQ:TSLA) continues to be a monster growth stock. The company’s share price just jumped 7% in a single trading session after it reported better-than-expected second quarter production and delivery numbers.
Wall Street had expected 445,925 EV deliveries for Q2 ended on June 30. Tesla beat that estimate by more than 20,000 vehicles, delivering 466,140 EVs for the quarter. The recent 7% increase brings TSLA stock’s year-to-date gain to 160%. Over the past five years, the company’s share price is up 1,259%, at the time of writing.
Tesla’s EV charging network is utilized by competitors General Motors (NYSE:GM) and Ford (NYSE:F), marking the company’s investments in its infrastructure a proven success. Tesla’s charging network is now expected to be a future driver of profitability moving forward. Indeed, investors ought to consider that Tesla currently owns and operates 60% of the fast chargers in the U.S., according to data from the U.S. Department of Energy.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Another technology stock that is riding high currently and remains a strong growth stock is consumer electronics giant Apple (NASDAQ:AAPL). After all, Apple just became the first publicly-traded company in history to achieve a $3 trillion market capitalization.
With that milestone, Apple has cemented its position as the world’s most valuable public company. The $3 trillion market cap was eclipsed amid a market surge which saw AAPL stock gain more than 50% year-to-date. The company’s share price is up 310% over the past five years, and up 1,190% over the past decade.
Investors are attracted to AAPL stock not just for its growth, but also its strong balance sheet and ample free cash flow. Apple is a leader in stock buybacks and also pays a dividend, something not all mega-cap tech stocks do.
The company’s dividend is currently 24 cents a share, yielding 0.5%. Apple reached a $1 trillion market cap in mid-2018 and hit $2 trillion in August 2020. Some analysts are predicting it won’t be long until the stock reaches $4 trillion.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Yet another high-return growth stock that can help investors growth their wealth is Meta Platforms (NASDAQ:META). The owner of Facebook has officially launched its Twitter rival called “Threads” integrated with Instagram. This launch on July 6 is one that’s gone off without a hitch, and many are heralding as the next stage in Meta’s social media domination.
If the company can effectively replace Twitter as the “town square” for discussion, Meta will have yet another feather in its cap to tout, as the company continues to see positive momentum (particularly when compared to its social media peers).
With a large user base and a track record of successful feature introductions, Meta Platforms poses a significant challenge to Twitter, according to analysts. Meta Platforms continues to innovate, with its stock up 129% this year and more than 1,000% over the past decade.
On the date of publication, Joel Baglole held long positions in GM and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The views and 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 Another technology stock that is riding high currently and remains a strong growth stock is consumer electronics giant Apple (NASDAQ:AAPL). The $3 trillion market cap was eclipsed amid a market surge which saw AAPL stock gain more than 50% year-to-date. Investors are attracted to AAPL stock not just for its growth, but also its strong balance sheet and ample free cash flow.
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On the date of publication, Joel Baglole held long positions in GM and AAPL. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Another technology stock that is riding high currently and remains a strong growth stock is consumer electronics giant Apple (NASDAQ:AAPL). The $3 trillion market cap was eclipsed amid a market surge which saw AAPL stock gain more than 50% year-to-date.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Another technology stock that is riding high currently and remains a strong growth stock is consumer electronics giant Apple (NASDAQ:AAPL). The $3 trillion market cap was eclipsed amid a market surge which saw AAPL stock gain more than 50% year-to-date. Investors are attracted to AAPL stock not just for its growth, but also its strong balance sheet and ample free cash flow.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Another technology stock that is riding high currently and remains a strong growth stock is consumer electronics giant Apple (NASDAQ:AAPL). The $3 trillion market cap was eclipsed amid a market surge which saw AAPL stock gain more than 50% year-to-date. On the date of publication, Joel Baglole held long positions in GM and AAPL.
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14990.0
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2023-07-06 00:00:00 UTC
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Wall St logs sharp losses as labor market strength stokes rate-hike fears
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AAPL
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https://www.nasdaq.com/articles/wall-st-logs-sharp-losses-as-labor-market-strength-stokes-rate-hike-fears
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nan
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nan
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By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian
July 6 (Reuters) - Wall Street's main indexes ended sharply lower on Thursday in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates.
The S&P 500 posted its biggest daily percentage drop since May 23. The Dow logged its biggest single-day fall since May 2.
Private payrolls surged far more than expected in June, data showed, suggesting the labor market remained solid despite growing risks of a recession. A separate report showed U.S. job openings dropped in May, but remained at elevated levels.
A day before the monthly U.S employment report, evidence of a solid labor market spurred expectations the Fed will keep interest rates higher for longer to tame stubborn inflation.
“We don’t see any softening in the labor market,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “The Fed doesn’t have to worry about the jobs market. When you look at their mandate, they have no reason not to keep hiking and to keep hiking for a while.”
The Dow Jones Industrial Average .DJI fell 366.38 points, or 1.07%, to 33,922.26, the S&P 500 .SPX lost 35.23 points, or 0.79%, to 4,411.59 and the Nasdaq Composite .IXIC dropped 112.61 points, or 0.82%, to 13,679.04.
All 11 S&P 500 sectors ended down. Energy .SPNY led declines among the sectors, dropping about 2.5%, while consumer discretionary .SPLRCD slumped nearly 1.7%.
Gains in megacap stocks mitigated declines for the major indexes, which ended above their session lows. Microsoft MSFT.O rose 0.9% while Apple AAPL.O was up 0.3%.
Treasury yields jumped following the labor market data. The benchmark 10-year yield US10YT=RR burst above 4% while the two-year US2YT=RR Treasury yield, which typically moves in step with interest rate expectations, hit a 16-year high.
U.S. interest rate futures saw an increased probability of another rate hike by the Federal Reserve in November, according to CME's FedWatch.
The Fed did not hike rates in June but is widely expected to resume increases at its July meeting. Dallas Fed President Lorie Logan said there was a case for a rate rise at the June policy meeting.
In company news, Exxon Mobil Corp XOM.N shares fell 3.7% after the oil major signaled a sharp fall in second-quarter operating profits on lower natural gas prices and weaker oil refining margins.
Second-quarter corporate reports will arrive in coming weeks with S&P 500 earnings expected to fall 5.7% from a year-ago, according to Refinitiv data.
“You have a situation where rates are going higher, profits are not really moving," said King Lip, chief strategist at Baker Avenue Wealth Management. "That’s usually not a good combination for stocks.”
JetBlue AirwaysJBLU.O shares dropped 7.2% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines.
Declining issues outnumbered advancing ones on the NYSE by a 6.01-to-1 ratio; on Nasdaq, a 3.25-to-1 ratio favored decliners.
The S&P 500 posted 4 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 27 new highs and 118 new lows.
About 11.7 billion shares changed hands in U.S. exchanges, compared with the 11.1 billion daily average over the last 20 sessions.
(Reporting by Lewis Krauskopf in New York, Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi, Shinjini Ganguli 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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Microsoft MSFT.O rose 0.9% while Apple AAPL.O was up 0.3%. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes ended sharply lower on Thursday in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. Private payrolls surged far more than expected in June, data showed, suggesting the labor market remained solid despite growing risks of a recession.
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Microsoft MSFT.O rose 0.9% while Apple AAPL.O was up 0.3%. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes ended sharply lower on Thursday in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. Private payrolls surged far more than expected in June, data showed, suggesting the labor market remained solid despite growing risks of a recession.
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Microsoft MSFT.O rose 0.9% while Apple AAPL.O was up 0.3%. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes ended sharply lower on Thursday in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. A day before the monthly U.S employment report, evidence of a solid labor market spurred expectations the Fed will keep interest rates higher for longer to tame stubborn inflation.
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Microsoft MSFT.O rose 0.9% while Apple AAPL.O was up 0.3%. The S&P 500 posted its biggest daily percentage drop since May 23. Treasury yields jumped following the labor market data.
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14991.0
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2023-07-06 00:00:00 UTC
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3 Momentum Stock Picks with Strong Stories
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AAPL
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https://www.nasdaq.com/articles/3-momentum-stock-picks-with-strong-stories
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nan
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nan
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I
typically favor a contrarian style over one based on momentum, meaning that I like to look for things that are unpopular and undervalued and are about to climb, rather than things that are already popular and at or near their highs, but which could have further to go. However, sometimes that isn’t the best approach, and now is one of those times.
Recently, the stock market has been quite resilient in the face of some gathering clouds on the economic front. All of the major indices are posting gains on the year despite the fact that interest rates are higher than they have been for a long time, and that a slowdown of some kind looks inevitable. The market's strength, though, hasn’t been about the overall economic picture. It has been led by themes -- in particular, the massive opportunities unleashed in tech by the AI revolution. Stocks like Nvidia have seen massive gains this year so definitely qualify as momentum picks, but even when looking for current strength, a roughly 200% gain in six months makes me think there may be a better entry point available before too long in even that obvious pick in the AI space.
There are, however, other narratives out there that can continue to play out but where there is a little more value to be had.
The EV story, for example, seems to have been around forever, but is still really in its early stages. In 2022, only fourteen percent of new cars sold were electric. That leaves plenty of room for growth. Some of that demand will be met by the major manufacturers of conventional vehicles who have all, with varying degrees of reluctance and enthusiasm, committed themselves to the electric revolution, but the biggest beneficiary will probably continue to be the company that has the biggest market share in the space, Tesla (TSLA).
Some would argue that Tesla’s biggest strength to this point, the company’s founder, Elon Musk, has become more of a distraction than an asset recently, what with talk of a cage fight with Mark Zuckerberg and all, but Musk has been saying and doing things that can politely be called “controversial” for years now, and that hasn't seemed to hurt the company or its stock. TSLA is bigger than Musk now, and even if times get tough, the shift to EVs will continue until something better comes along. The momentum here is easy to justify on that basis and in the circumstances, a P/E in the mid-seventies for a company that has a recent history of big upside shocks in terms of output actually looks quite reasonable.
The second pick is also a secular story of upcoming growth, although this one is more company-specific than global trend. Apple (AAPL) will be launching the iPhone 15 soon, presumably in September. It isn’t hard to see why it should be a success, generating excitement that goes beyond the usual level of buzz that accompanies an upcoming phone launch. I have no inside information or anything, but I feel confident in predicting that the phrase “AI” will play a prominent role in the hype around the 15.
Now, it may or may not be that AI technology is in some way incorporated into the phone or is relevant to how it operates and what it offers, but that won’t be the point. By now, everyone has heard of AI, and everyone wants a part of it, so there will be lot of FOMO around when the new product becomes available. Even without that added push, AAPL has always tended to climb in the runup to a launch as the rumors gain pace, so now looks like a decent time to buy despite the strong start to the year.
I would argue that both TSLA and AAPL are now mature companies and more about manufacturing and selling consumer products than disruptive innovation, but the market still views them as tech stocks. However, not every growth story with sustainable momentum right now is tech-based.
Rapidly rising interest rates after a period of historic lows have created a weird situation in the housing market. Rates near zero persisted for so long that almost every homeowner took advantage of them, refinancing if they weren’t buying for the first time. As a result, many of us are now locked into mortgages with rates around or below 3%, which is great for us in some ways but not if we want or need to move. In that situation, we would face the prospect of paying off our 3% interest mortgage and taking out another at more than double that, so selling right now is only ever a last resort.
That has created a serious shortage of existing homes on the market, which is bad for buyers, particularly first-time buyers, but good for homebuilders. They are struggling to keep up with soaring demand, meaning big margins and more growth to come. All homebuilders have benefitted from that trend, but the biggest boost has been to those who specialize in starter homes rather than higher-end custom properties, meaning companies such as DR Horton (DHI).
DHI is a true momentum stock, having nearly doubled year to date, but that has been based on real earnings growth. That is why, despite the look of the chart above, DHI still has a trailing P/E of just over 8. That would be decent value in any circumstances, but with rates likely to stay higher for longer, worsening the shortage of existing homes for sale and therefore increasing the demand for new housing, it looks like a steal, even after such a strong first half.
Analyzing momentum stocks is a different process to assessing value in a contrarian way. You are not really looking at value metrics, but more at why the stock has posted gains. If the bullish narrative still applies, then there is further to go in the move and, on that basis, AAPL, TSLA, and DHI are all stocks that fit a “buy high, sell higher” approach and offer good potential upside. They may have soared recently, but can still outperform in any conditions other than a bruising recession.
The views and 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 the bullish narrative still applies, then there is further to go in the move and, on that basis, AAPL, TSLA, and DHI are all stocks that fit a “buy high, sell higher” approach and offer good potential upside. Apple (AAPL) will be launching the iPhone 15 soon, presumably in September. Even without that added push, AAPL has always tended to climb in the runup to a launch as the rumors gain pace, so now looks like a decent time to buy despite the strong start to the year.
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If the bullish narrative still applies, then there is further to go in the move and, on that basis, AAPL, TSLA, and DHI are all stocks that fit a “buy high, sell higher” approach and offer good potential upside. Apple (AAPL) will be launching the iPhone 15 soon, presumably in September. Even without that added push, AAPL has always tended to climb in the runup to a launch as the rumors gain pace, so now looks like a decent time to buy despite the strong start to the year.
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If the bullish narrative still applies, then there is further to go in the move and, on that basis, AAPL, TSLA, and DHI are all stocks that fit a “buy high, sell higher” approach and offer good potential upside. Apple (AAPL) will be launching the iPhone 15 soon, presumably in September. Even without that added push, AAPL has always tended to climb in the runup to a launch as the rumors gain pace, so now looks like a decent time to buy despite the strong start to the year.
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I would argue that both TSLA and AAPL are now mature companies and more about manufacturing and selling consumer products than disruptive innovation, but the market still views them as tech stocks. Apple (AAPL) will be launching the iPhone 15 soon, presumably in September. Even without that added push, AAPL has always tended to climb in the runup to a launch as the rumors gain pace, so now looks like a decent time to buy despite the strong start to the year.
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14992.0
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2023-07-06 00:00:00 UTC
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SPY, NVDL: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/spy-nvdl%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,300,000 units, or a 1.3% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.8%, and Microsoft is higher by about 0.5%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the NVDL ETF, which added 370,000 units, for a 35.6% increase in outstanding units.
VIDEO: SPY, NVDL: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is off about 0.8%, and Microsoft is higher by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the NVDL ETF, which added 370,000 units, for a 35.6% increase in outstanding units. VIDEO: SPY, NVDL: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,300,000 units, or a 1.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the NVDL ETF, which added 370,000 units, for a 35.6% increase in outstanding units. VIDEO: SPY, NVDL: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,300,000 units, or a 1.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the NVDL ETF, which added 370,000 units, for a 35.6% increase in outstanding units. VIDEO: SPY, NVDL: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,300,000 units, or a 1.3% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.8%, and Microsoft is higher by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the NVDL ETF, which added 370,000 units, for a 35.6% increase in outstanding units.
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14993.0
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2023-07-06 00:00:00 UTC
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Buy This Tech Stock Down 30% for Long-Term Chip and AI Growth?
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AAPL
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https://www.nasdaq.com/articles/buy-this-tech-stock-down-30-for-long-term-chip-and-ai-growth
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nan
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nan
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Taiwan Semiconductor Manufacturing Co. (TSM) or TSMC is the largest chip manufacturer on the planet, with foundries that build the most cutting-edge semiconductors that drive technological advancements such as artificial intelligence and beyond.
Taiwan Semiconductor stock has surged nearly 35% YTD, yet TSMC still trades roughly 30% below its peaks and 12% under its average Zacks price target heading into its Q2 FY23 earnings release on July 20.
The Basics
Taiwan Semi reportedly holds nearly 60% of the crucial chip foundry market. Chip companies around the world turn to foundries such as TSMC for production because the costs, time involved, and know-how to actually make the chips are simply enormous—and becoming more costly and complex by the day.
Taiwan Semi is currently the dominant player in the space and it continues to benefit from its founding idea of focusing only on manufacturing. TSMC is one of the only pure-play chip manufacturers on the market since some of its competitors design and build their own chips. For example, Taiwan Semi is the only company listed in the Zacks Semiconductor - Circuit Foundry industry.
Image Source: Zacks Investment Research
Taiwan Semi boasts clients such as Nvidia (NVDA), Apple (AAPL), and many other tech titans. Taiwan Semi is a leader in the 5nm space and actively rolling out next-generation 3nm chips. Taiwan Semi is already seeing increased demand for AI-focused chips and other areas of the economy that require the smallest, fastest chips possible such as smartphones and beyond.
TSMC is actively expanding outside of Taiwan amid tensions between the U.S. and China. Taiwan Semi is currently building a semiconductor fabrication plant in Arizona, spurred by incentives from the U.S. government.
Other Fundamentals
TSMC averaged roughly 18% revenue growth in the five-year period between FY18 and FY22, including 29% expansion in 2022. But Taiwan Semi faces near-term headwinds in the traditionally cyclical chip market. Zacks estimates call for TSMC’s adjusted EPS to slip 19% in FY23 on 6% lower sales. This year is projected to mark the company’s first YoY revenue decline since 2009.
But in the forward-looking world of Wall Street, investors should care more about the fact that TSMC is expected to bounce back in FY24. Zacks estimates call for the Taiwan Semi to post 18% adjusted earnings growth to get within touching distance of its record 2022 profits. The company is also projected to report 15% revenue expansion in FY24 to help it easily post a new all-time high of $82.01 billion.
Image Source: Zacks Investment Research
TSMC’s earnings revisions have held up recently to help it land a Zacks Rank #3 (Hold). And its most recent FY24 EPS estimate came in 5% above the current consensus.
TSM stock has soared 950% in the last 15 years vs. the Zacks Tech sector’s 333%, which includes a 62% run over the past three years compared to tech’s 37%. Yet, TSMC is down 16% in the last 24 months to trade around 30% below its all-time highs.
TSMC found support near its 50-week moving average in May. The nearby chart showcases its strong pop off its 200-day in April to help it trade solidly above both its 50-day and its 200-day. Taiwan Semi stock also completed the bullish golden cross, where the shorter-term moving average climbs back above the longer-dated trendline, earlier this year.
On the valuation front, TSMC trades at a 48% discount to its own highs and 30% below the Zacks Tech sector at 17.4X forward earnings. Taiwan Semi stock also trades at only a 12% premium to its own 10-year median despite soaring 440% during the time period.
TSMC pays a dividend that yields 1.4% at the moment. And four out of the six brokerage recommendations that Zacks has for Taiwan Semi are “Strong Buys,” alongside one “Buy,” and one “Hold.” Plus, it boasts a very sturdy balance sheet.
Image Source: Zacks Investment Research
Bottom Line
Taiwan Semi is not in an ideal situation politically, with the U.S. and China fighting for control over semiconductor production. This factor alone might keep many investors away.
But it is worth remembering that TSMC builds the chips that fuel tech innovation and likely will for decades to come despite geopolitical worries given its sheer size and cutting-edge capabilities. And some might want to consider TSMC as a way to gain exposure to AI alongside Nvidia and others.
[Disclosure: Ben Rains owns TSMC shares in his own personal portfolio.]
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Taiwan Semi boasts clients such as Nvidia (NVDA), Apple (AAPL), and many other tech titans. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. Taiwan Semiconductor stock has surged nearly 35% YTD, yet TSMC still trades roughly 30% below its peaks and 12% under its average Zacks price target heading into its Q2 FY23 earnings release on July 20.
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Image Source: Zacks Investment Research Taiwan Semi boasts clients such as Nvidia (NVDA), Apple (AAPL), and many other tech titans. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks estimates call for the Taiwan Semi to post 18% adjusted earnings growth to get within touching distance of its record 2022 profits.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Taiwan Semi boasts clients such as Nvidia (NVDA), Apple (AAPL), and many other tech titans. Taiwan Semiconductor Manufacturing Co. (TSM) or TSMC is the largest chip manufacturer on the planet, with foundries that build the most cutting-edge semiconductors that drive technological advancements such as artificial intelligence and beyond.
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Image Source: Zacks Investment Research Taiwan Semi boasts clients such as Nvidia (NVDA), Apple (AAPL), and many other tech titans. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. The Basics Taiwan Semi reportedly holds nearly 60% of the crucial chip foundry market.
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14994.0
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2023-07-06 00:00:00 UTC
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Guide to Single-Stock ETF Investing
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AAPL
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https://www.nasdaq.com/articles/guide-to-single-stock-etf-investing
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nan
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nan
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Exchange-Traded Funds (ETFs) have seen a rapid progress since their inception. In its initial days, plain vanilla ETFs used to track broad market indices, but these have grown to cover a wide array of investment themes, sectors, and styles over the years.
In this pursuit, one of the latest changes in the ETF space has been the advent of single-stock ETFs. These funds, as the name suggests, focus on a single stock rather than a bunch.
In the past one year, single-stock ETFs made up 7% of total new U.S .ETF listings, per a J.P. Morgan report. Since July 2022, about 30 single stock ETFs have been listed in the United States, which have gathered about $1.1 billion in total assets.
Inside Single-Stock ETFs
Single-Stock ETFs are fundamentally a new type of funds that look to track the performance of a single company’s stock. While traditional ETFs follow a basket of multiple stocks or other assets to lower concentration risk, Single-Stock ETFs bet on a single entity. This basically allows investors buy shares of an ETF that imitate the performance of an individual company's equity, rather than a diversified portfolio.
Pros of Single-Stock ETF Investing
Investors should note that many times some high-priced stocks normally remain unreachable for smaller investors. Single-stock ETFs can make these stocks accessible to all, as the ETF shares may be priced lower than the underlying stock.
Secondly, they can provide easier access to certain foreign stocks. For example, investors may find it difficult to buy shares of foreign companies due to regulatory complications. However, an ETF based on a single foreign company's stock, if traded on a domestic exchange, can easily be bought, thereby avoiding these issues.
Then, issuers are able to offer inverse/leveraged exposure to a single stock when the stock is packed within an ETF. With this structure, investors get scope to multiply their returns, though with greater risks.
Lastly, when offered in an ETF form, such single-stock product can offer tax efficiency. Like traditional ETFs, Single-Stock ETFs have the potential for tax advantages related to capital gains distributions, depending on jurisdiction and specific circumstances. But that stock itself won’t let you enjoy such benefit.
Cons of Single-Stock ETFs
Despite those benefits, single-stock ETFs also come with its shares of risks that investors must be mindful of.
Concentration Risk: The most apparent risk is the company-specific concertation risks. If the single stock that the ETF holds performs poorly, the entire ETF’s performance will be awful. Unlike, traditional ETFs that, this newbie can’t make up poor performance of one stock with better performance of others.
Liquidity Risk: Single-stock ETFs may be less liquid than the underlying stock, especially if they are newly launched or not widely held. This could result in wider bid-ask spreads and likely snags in buying or selling the ETF at wanted prices.
Tracking Error: Like any ETF, single-stock ETFs may experience tracking error, which is a deviation between the ETF’s performance and the performance of the underlying stock. This could occur due to fees, rebalancing, or other factors.
ETFs in Focus
Below we highlight a few single-stock ETFs.
On Tesla (TSLA):
Direxion Daily TSLA Bull 1.5X Shares ETF TSLL – $777.6 million AUM
On Nvidia (NVDA):
Graniteshares NVDA 1.5X Daily ETF NVDL – $86.6 million
AXS 1.25x NVDA Bear Daily ETF NVDS – $101.5 million
On Microsoft (MSFT):
Direxion Daily MSFT Bull 1.5X Shares MSFU – $29.9 million
Direxion Daily MSFT Bear 1X Shares MSFD – $8.6 million
On Apple (AAPL):
Direxion Daily AAPL Bull 1.5X Shares AAPU – $29.0 million
Direxion Daily AAPL Bear 1X Shares AAPD – $26.9 million
On Amazon (AMZN):
Direxion Daily AMZN Bull 1.5X Shares AMZU – $32.9 million
Direxion Daily AMZN Bear 1X Shares AMZD – $5.5 million
(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.)
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
AXS 1.25X NVDA Bear Daily ETF (NVDS): ETF Research Reports
Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports
Direxion Daily AAPL Bear 1X Shares (AAPD): ETF Research Reports
Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports
Direxion Daily AMZN Bear 1X Shares (AMZD): ETF Research Reports
Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports
Direxion Daily MSFT Bear 1X Shares (MSFD): ETF Research Reports
Direxion Daily MSFT Bull 1.5X Shares (MSFU): ETF Research Reports
GraniteShares 1.5x Long NVDA Daily ETF (NVDL): 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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On Tesla (TSLA): Direxion Daily TSLA Bull 1.5X Shares ETF TSLL – $777.6 million AUM On Nvidia (NVDA): Graniteshares NVDA 1.5X Daily ETF NVDL – $86.6 million AXS 1.25x NVDA Bear Daily ETF NVDS – $101.5 million On Microsoft (MSFT): Direxion Daily MSFT Bull 1.5X Shares MSFU – $29.9 million Direxion Daily MSFT Bear 1X Shares MSFD – $8.6 million On Apple (AAPL): Direxion Daily AAPL Bull 1.5X Shares AAPU – $29.0 million Direxion Daily AAPL Bear 1X Shares AAPD – $26.9 million On Amazon (AMZN): Direxion Daily AMZN Bull 1.5X Shares AMZU – $32.9 million Direxion Daily AMZN Bear 1X Shares AMZD – $5.5 million (Disclaimer: This article has been written with the assistance of Generative AI. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report AXS 1.25X NVDA Bear Daily ETF (NVDS): ETF Research Reports Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports Direxion Daily AAPL Bear 1X Shares (AAPD): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Direxion Daily AMZN Bear 1X Shares (AMZD): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports Direxion Daily MSFT Bear 1X Shares (MSFD): ETF Research Reports Direxion Daily MSFT Bull 1.5X Shares (MSFU): ETF Research Reports GraniteShares 1.5x Long NVDA Daily ETF (NVDL): ETF Research Reports To read this article on Zacks.com click here. In its initial days, plain vanilla ETFs used to track broad market indices, but these have grown to cover a wide array of investment themes, sectors, and styles over the years.
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On Tesla (TSLA): Direxion Daily TSLA Bull 1.5X Shares ETF TSLL – $777.6 million AUM On Nvidia (NVDA): Graniteshares NVDA 1.5X Daily ETF NVDL – $86.6 million AXS 1.25x NVDA Bear Daily ETF NVDS – $101.5 million On Microsoft (MSFT): Direxion Daily MSFT Bull 1.5X Shares MSFU – $29.9 million Direxion Daily MSFT Bear 1X Shares MSFD – $8.6 million On Apple (AAPL): Direxion Daily AAPL Bull 1.5X Shares AAPU – $29.0 million Direxion Daily AAPL Bear 1X Shares AAPD – $26.9 million On Amazon (AMZN): Direxion Daily AMZN Bull 1.5X Shares AMZU – $32.9 million Direxion Daily AMZN Bear 1X Shares AMZD – $5.5 million (Disclaimer: This article has been written with the assistance of Generative AI. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report AXS 1.25X NVDA Bear Daily ETF (NVDS): ETF Research Reports Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports Direxion Daily AAPL Bear 1X Shares (AAPD): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Direxion Daily AMZN Bear 1X Shares (AMZD): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports Direxion Daily MSFT Bear 1X Shares (MSFD): ETF Research Reports Direxion Daily MSFT Bull 1.5X Shares (MSFU): ETF Research Reports GraniteShares 1.5x Long NVDA Daily ETF (NVDL): ETF Research Reports To read this article on Zacks.com click here. While traditional ETFs follow a basket of multiple stocks or other assets to lower concentration risk, Single-Stock ETFs bet on a single entity.
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On Tesla (TSLA): Direxion Daily TSLA Bull 1.5X Shares ETF TSLL – $777.6 million AUM On Nvidia (NVDA): Graniteshares NVDA 1.5X Daily ETF NVDL – $86.6 million AXS 1.25x NVDA Bear Daily ETF NVDS – $101.5 million On Microsoft (MSFT): Direxion Daily MSFT Bull 1.5X Shares MSFU – $29.9 million Direxion Daily MSFT Bear 1X Shares MSFD – $8.6 million On Apple (AAPL): Direxion Daily AAPL Bull 1.5X Shares AAPU – $29.0 million Direxion Daily AAPL Bear 1X Shares AAPD – $26.9 million On Amazon (AMZN): Direxion Daily AMZN Bull 1.5X Shares AMZU – $32.9 million Direxion Daily AMZN Bear 1X Shares AMZD – $5.5 million (Disclaimer: This article has been written with the assistance of Generative AI. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report AXS 1.25X NVDA Bear Daily ETF (NVDS): ETF Research Reports Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports Direxion Daily AAPL Bear 1X Shares (AAPD): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Direxion Daily AMZN Bear 1X Shares (AMZD): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports Direxion Daily MSFT Bear 1X Shares (MSFD): ETF Research Reports Direxion Daily MSFT Bull 1.5X Shares (MSFU): ETF Research Reports GraniteShares 1.5x Long NVDA Daily ETF (NVDL): ETF Research Reports To read this article on Zacks.com click here. Tracking Error: Like any ETF, single-stock ETFs may experience tracking error, which is a deviation between the ETF’s performance and the performance of the underlying stock.
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On Tesla (TSLA): Direxion Daily TSLA Bull 1.5X Shares ETF TSLL – $777.6 million AUM On Nvidia (NVDA): Graniteshares NVDA 1.5X Daily ETF NVDL – $86.6 million AXS 1.25x NVDA Bear Daily ETF NVDS – $101.5 million On Microsoft (MSFT): Direxion Daily MSFT Bull 1.5X Shares MSFU – $29.9 million Direxion Daily MSFT Bear 1X Shares MSFD – $8.6 million On Apple (AAPL): Direxion Daily AAPL Bull 1.5X Shares AAPU – $29.0 million Direxion Daily AAPL Bear 1X Shares AAPD – $26.9 million On Amazon (AMZN): Direxion Daily AMZN Bull 1.5X Shares AMZU – $32.9 million Direxion Daily AMZN Bear 1X Shares AMZD – $5.5 million (Disclaimer: This article has been written with the assistance of Generative AI. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report AXS 1.25X NVDA Bear Daily ETF (NVDS): ETF Research Reports Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports Direxion Daily AAPL Bear 1X Shares (AAPD): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Direxion Daily AMZN Bear 1X Shares (AMZD): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports Direxion Daily MSFT Bear 1X Shares (MSFD): ETF Research Reports Direxion Daily MSFT Bull 1.5X Shares (MSFU): ETF Research Reports GraniteShares 1.5x Long NVDA Daily ETF (NVDL): ETF Research Reports To read this article on Zacks.com click here. Single-stock ETFs can make these stocks accessible to all, as the ETF shares may be priced lower than the underlying stock.
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14995.0
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2023-07-06 00:00:00 UTC
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After Hours Most Active for Jul 6, 2023 : INTC, KVUE, LUMN, KEY, AAPL, BAC, RIVN, AMZN, GERN, QQQ, BEKE, T
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jul-6-2023-%3A-intc-kvue-lumn-key-aapl-bac-rivn-amzn-gern-qqq
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The NASDAQ 100 After Hours Indicator is down -10.17 to 15,079.28. The total After hours volume is currently 90,699,965 shares traded.
The following are the most active stocks for the after hours session:
Intel Corporation (INTC) is unchanged at $31.97, with 4,309,947 shares traded. INTC's current last sale is 101.49% of the target price of $31.5.
Kenvue Inc. (KVUE) is +0.01 at $25.62, with 3,145,514 shares traded. KVUE's current last sale is 91.5% of the target price of $28.
Lumen Technologies, Inc. (LUMN) is unchanged at $2.09, with 2,819,074 shares traded. LUMN's current last sale is 59.71% of the target price of $3.5.
KeyCorp (KEY) is -0.0392 at $9.39, with 2,812,392 shares traded. KEY's current last sale is 64.76% of the target price of $14.5.
Apple Inc. (AAPL) is +0.04 at $191.85, with 2,662,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Bank of America Corporation (BAC) is +0.04 at $28.32, with 2,569,574 shares traded. BAC's current last sale is 80.91% of the target price of $35.
Rivian Automotive, Inc. (RIVN) is +0.06 at $21.68, with 2,502,843 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.07 at $128.29, with 2,435,440 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Geron Corporation (GERN) is unchanged at $3.14, with 1,975,622 shares traded. As reported by Zacks, the current mean recommendation for GERN is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.19 at $367.27, with 1,958,456 shares traded. This represents a 44.45% increase from its 52 Week Low.
KE Holdings Inc (BEKE) is unchanged at $14.19, with 1,579,739 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
AT&T Inc. (T) is +0.02 at $15.89, with 1,469,433 shares traded. As reported by Zacks, the current mean recommendation for T 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 +0.04 at $191.85, with 2,662,616 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.04 at $191.85, with 2,662,616 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
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Apple Inc. (AAPL) is +0.04 at $191.85, with 2,662,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 90,699,965 shares traded.
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Apple Inc. (AAPL) is +0.04 at $191.85, with 2,662,616 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 -10.17 to 15,079.28.
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14996.0
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2023-07-06 00:00:00 UTC
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The "Motley Fool Money" Half-Year Review
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AAPL
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https://www.nasdaq.com/articles/the-motley-fool-money-half-year-review
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In this podcast, Motley Fool Chief Investment Officer Andy Cross and senior analysts Jason Moser and Ron Gross discuss:
Revised first-quarter GDP data.
Nike earnings coming in a bit light.
The Biden administration's proposed new artificial intelligence chip-export restrictions for China.
Two stocks on their radar: Amazon and Winmark.
Motley Fool host Deidre Woollard catches up with Dave Meyer, the VP of Growth and Analytics at Bigger Pockets to talk through how the housing market has held up this year in the face of higher rates, and whether trends like aging in place and sunbelt migration are here to stay.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on June 30, 2023.
Ron Gross: As the first half of 2023 comes to a close, we've got some encouraging economic data, and earnings from Nike, and we'll look at how the housing market has held up so far this year. Motley Fool Money starts now.
It's the Motley Fool Money radio show. I'm Ron Gross sitting in for Dylan Lewis. Joining me today are Senior Analysts Andy Cross and Jason Moser. Fools, how you doing? Fools, believe it or not, 2023 is half over. The stock market has rebounded nicely from the 2022 lows, with the S&P up about 15.5% and the Nasdaq up a whopping 31.5%. By the way, Apple's market cap now tops $3 trillion. Today we're going to talk semiconductors and spice and everything Nike. See what I did there, Fools. But we begin with the big macro. On Thursday, revised data showed that the economy actually increased at a 2% annualized pace in the first quarter, up from the previous estimate of 1.3%, and we got some encouraging inflation data on Friday. Earlier in the week, Fed Chairman Jerome Powell said that more interest rate increases are unlikely as the job market remains strong. So Andy, not bad. All things considered, is good news actually good news here, or does this just give the Fed cover to continue to raise interest?
Andy Cross: The good news is that the US economy, the most important in the world, is doing pretty well, especially considering where many economists and, frankly, investors had thought we were heading at the start of 2023. Inflation moderating, things are looking up. But that quarter rate, Ron, is still two times where the Fed really wants to be, so the strong economy in that pesky inflation gives more cover for the Fed to raise rates, probably at least once, maybe even two or three times this year, as the Fed Chair implied. The odds are running right now at about 85% for another 25 basis increase next month after Chair Powell said his remarks over in Europe this week. When you think about the real GDP, it got revised to 2%, annualized up from the 1.3 pace that they had originally forecasted, and the Q2 estimates have been steadily moving up with the Atlanta Fed now. The GDP now forecasted at 1.8%, which is about where S&P Global is estimating as well. Consumer spending up 4.2% in the quarter revised from an increase of 3.8% as the strongest in about two years, although from that PCE number, just today, it saw that May data, that spending, is moderating up just 0.1% versus an increase of 0.6%, and that's month-to-month where it was in April. You have the US economy strong, you have employment still very strong. We are starting to see a little bit of moderation on the employment, but unemployment rate at 3.7%, so only 6.1 million Americans out of work, so that economy still looks strong. Very interesting thing is that the stocks are just rolling with this. You talked about the impressive market performance this year. I think that investors have gotten used to, we might have another one or two increases, but business is strong, the recession that everyone was forecasting might get pushed out, and things are looking pretty good for the US economy, and that speaks well for businesses and for stocks.
Ron Gross: I just hope that consumer spending is not at the expense, so to speak, of their savings or of higher credit card levels. Consumers be careful out there.
Andy Cross: For sure.
Ron Gross: On Thursday, McCormick reported strong results and raised its full year profit outlook, but the stock actually sold off a bit, Jason. You tell me, what am I missing here?
Jason Moser: Ron, you buy the rumor and sell the news. That's what they say. Seriously, though, I don't think you're missing anything here. With the slight sell-off there, as well as the raised earnings guidance, this still puts the stock around 33 times the full-year forecast. It's not a cheap stock still, so to speak. It's a little bit of a lofty multiple [inaudible] for this company. But it does garner that lofty multiple for a number of reasons: its competitive position, the nature of what they sell, its Dividend Aristocrat status. So to me, this is nothing more than maybe a little profit-taking. But I think the good news is, when you look at the quarter, the results were really strong all the way across. Volumes are up, they're maintaining pricing, and they're controlling costs, and that's really all you can ask. Management is taking a very confident tone regarding the back half of the year as well. Maybe something the market took a little bit of a note of here, we do have a leadership transition. Long-time CEO Lawrence Kurzius is going to be moving over to Executive Chairman. COO Brendan Foley will become the next CEO, starting in September. Foley has been with the company for about a decade, very experienced in this space. He was with Heinz before joining McCormick, and I think, ultimately, again, going back to the numbers, they really tell an encouraging story. Revenue was up 10%, excluding currency impacts, gross margin, up 310 basis points, earnings per share, up 25%, raised guidance, like you said, and as I mentioned, pricing remained strong, and costs are staying at our controls, so I think a very encouraging quarter for the company.
Ron Gross: More importantly, do you have a favorite flavor of Cholula Hot Sauce?
Jason Moser: I'm an OG. I've tried that lime, which is good, but really, I'm an OG.
Ron Gross: Andy.
Andy Cross: Same with me. I dislike straight-up. What I grew up with, and that's what I'm sticking with.
Ron Gross: The correct answer is sweet habanero.
Andy Cross: I have to give it a shot.
Ron Gross: On Thursday, Nike reported fourth-quarter sales that topped expectations, but profits came in slightly lower than expected. Andy, the report looks solid to me from a revenue perspective. But gross margins were down; overhead expenses were up. I ask you, do we have an expense problem here?
Andy Cross: No, more of a challenge than I'd say a problem, Ron. Margins were actually a little bit higher than the consensus analyst estimates, and those margins should really improve down the line next year with the CFO saying on the call, we can now see around the corner on the transitory cost headwinds that pressure the profitability in fiscal 2022 and fiscal 2023, they just finished their fiscal 2023, by the way, and we are confident that we will deliver above average margin improvement in fiscal 2024, that's the next 12 months. Let's look at the quarter revenue. It's up 5%. These are all not adjusting for the strong currency. Nike Direct, up 15%, Nike-owned stores, up 24%, Nike Digital, up 17%, and Nike digital now about one-quarter of revenues versus where that was pre-pandemic, which was about 10%. Wholesale was a little bit of the weakness. That was down 2%. Big strength in China, Ron, 25% when you back up the strong dollar, with footwear, up 22%, and apparel, up 36%. Now on the margin side, as you mentioned, margins were down 140 basis points to 43.6% on those higher input costs, elevated freight and logistics costs, but they expect that to roll over and improve pretty dramatically in 2024, so admin costs, up 8% too, as you mentioned, overhead expenses, up 10%, on a lot of higher wages. The one impressive part to the story was really on the inventory side. We saw inventories flat on a dollar basis and actually down on a unit basis. Nike inventories were up 16% last quarter, so that is a real improvement. They increased the dividend payouts by 9%. You have a stock that sells at about 30 times earnings, so I wouldn't be in a rush to go out and buy this. But Nike is such an institution when it comes to footwear, when it comes to retail apparel, when it comes to sports apparel, and they continue to innovate and get a lot of different athletes and new products out there. I think I wouldn't be too worried about the margin story this quarter.
Ron Gross: General Mills reported mixed results, and its profit outlook was softer than investors were hoping for. Jason, a lot of talk on the call about retailers keeping inventories tight. Was that the primary drag here?
Jason Moser: I think you're right. That was certainly part of the call. Supply chain and inventory dynamics continue to be a part of the story with companies like General Mills. But management did speak to this specifically on the call. They really don't see this as a General Mills specific problem. Furthermore, they don't really see it as a problem going forward. It boiled down for them to two of their largest customers just trying to right-size their balance sheets and their inventory levels, and that just trickles through General Mills numbers. But the numbers were respectable, and organic net sales grew 5%. That was partially offset by those inventory headwinds we're just talking about. Adjusted gross margin, up 120 basis points. Operating profit of 889 million, essentially flat from a year ago. Now these adjusted numbers account for some investments and some divestitures made over the past year so that we understand each other, Ron. You look at me sometimes with those quizzical looks. I'm, like, that's the adjustment.
Ron Gross: Earning is essentially flat at 1.12. I think the outlook for the upcoming year looks strong. They're getting these inventory levels right-sized. They do feel organic net sales were poised to grow 3-4% for the coming year, and the best news really, this is why you own the stock, they raised the dividend by 9% for the quarter, so all in all, I think, not so bad. Solid dividend, only 17 times forward. I say only 17 times forward, so not bad.
Jason Moser: Everybody likes cereal.
Ron Gross: Sounds good. Coming up, we'll talk airlines and drugstores, and we'll see what's going on with the Biden administration and the computer chip industry. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. I'm Ron Gross here in studio with Andy Cross and Jason Moser. Earlier in the week, Delta reported strong quarterly results and management raised its 2023 guidance. Andy, Delta shares are up 42% this year as the airline continues to recover in a post-pandemic world. Is there still room for improvement here, or are we almost fully recovered?
Andy Cross: Reinstating that dividend earlier this month definitely helped drive some of the gains, now about a 0.9%. They had $0.10 quarterly dividend, that was versus a 40 cent quarterly before the pandemic, before they cut it. So a lot of enthusiasm for air travel on Delta. It's one of the best out there. You mentioned the quarter that they had, revenue was up 45%, and 14% higher than the March quarter of 2019, then an operating income of more than 500 million versus a loss. Operating expenses, up 26%, with non-fuel costs up 24%. So again, revenues up 45%, cost up in the mid-20s. That's a really good quarter. Their guidance was strong. Revenue, up 17-20%, operating margin of 10-12% guided. That will equate to about an earnings per share somewhere between $5 or $6. So you have a stock that sells at $46, maybe $6 of earnings, that's about a seven times forward guidance for the year. You have a little bit of a dividend. No wonder the stock has performed so well, especially with so much interest in air travel, capacity has come back. They're starting to see both consumer really ramp up on spending when it comes to air. A little bit of business, they're small and medium-sized businesses. Travel has come back. They're still waiting a little bit on some of the large and some of the international. So really Delta, really getting it done in the stock. While it has a nice run, look for a little pullback before you start adding to it.
Ron Gross: NVIDIA and other chip companies were down this week, and report is that the Biden administration is considering new artificial intelligence chip export restrictions for China. The report indicated that the curbs could come as quickly as next month. Jason, are NVIDIA and, potentially, AMD, the companies most impacted by this, or do you think this will have repercussions across the industry?
Jason Moser: I think they are two of the obvious suspects. I would throw Marvell and, honestly, others in there as well, as at least exposed to this. Marvell has 42% of its revenue coming from China. AMD and NVIDIA has more around 22%. But I think this really also goes to the nature of the technology that's being shipped out right here. This is about artificial intelligence. This is about military-grade applications and the likes. So companies like NVIDIA and AMD are two that are really playing in that sandbox, but again, so is Marvell. If you look at these three companies and their AI aspirations, recently, NVIDIA guided for 64% revenue growth, thanks in large part to "a steep increase in demand related to generative AI and large language models." AMD's CEO Lisa Su says AI is "our Number 1 strategic priority." Then you look at Marvell, they're talking about their AI revenue doubling this fiscal year to $400 million and then doubling again from that next fiscal year to $800 million. So you look at these companies, they're all exposed. Worth noting too, the Netherlands just announced they're getting on board here with these restrictions. The reason this matters, the Netherlands is home to ASML. They make the machinery that is required to produce the most advanced chips, so just interesting to see how they're siding on the US side of this equation so far.
Ron Gross: After an initial sell-off on Monday, Carnival shares shot higher this week on strong bookings and better-than-expected results. Andy, Carnival stock is up 130% so far this year, but that is still way off from pre-pandemic levels. What stood out to you in this report?
Andy Cross: Ron, the $17 stock today, that hit almost 70 in 2018 when it was making three billion operating profits versus losses for the past four years. But the turnaround is clearly in place, and investors are warming up to that. You saw revenues more than double this quarter, ticket revenues up 144%, onboard revenues of 59%. They're going to start generating some of their EBITDA, or earnings before interest, taxes, and depreciation, and amortization of more than 600 million this quarter versus a loss of 928 million in Q2 22. That was above our high-end guidance of 600-700 million. Cruise ticket prices are now above 2019 levels. Net per diem are suspending onboard when you're on the cruise ships were up 7.5%. That was above guidance. Their guidance for 2023, they expect 100% occupancy, even with a 5.7% more capacity into their ships with higher overall net ticket prices compared to 2019. So when you look at this business, you're saying, wow, the cruise business is cruising right along, doing quite well. But overall, I got to say, it's not a great business when you look at the long-term trends of Carnival. It just meander. There's a long returns on capital of the low double-digit operating margin. Even operating margin can be quite good. But there's so much capital that has to go into these businesses. I think the returns are really pretty much more like market-matching at best. Especially after this, Ron, I wouldn't chase Carnival, especially when it sells at probably 33 times or so forward earnings.
Ron Gross: Earlier in the week, Walgreens' stock fell sharply as the company lowered its financial outlook amid weaker consumer spending. Jason, I'm curious, is this a macro problem in your eyes or something specific to Walgreens?
Jason Moser: Probably a little bit of both. I'm going to waffle there, Ron.
Andy Cross: Waffle away.
Jason Moser: Thank you. It does look like the headwinds are going to continue for some time to come. Management set the table for a potentially challenging fiscal 2024. Any time you see mention of the word turnaround and the release, and we saw that here, that's a bit of a yellow flag, at least. There are a couple of main dynamics at play here though, the demand for COVID shots and testing has cooled off considerably. That's clearly not a Walgreens-specific problem. CVS was just talking about the very same thing last month, and I think that these companies are going to have to gear for that going forward. But management also did note, there is a more cautious and value-driven consumer out there. One thing that's sticking out of my mind here now that we've seen this Supreme Court ruling come down in regard to the student debt relief, and then we know these payments are going to start back up here around October, it's reasonable to think that consumer might be a little bit more crimped here in the near term. So it'll be just keeping an eye on that as far as retailers go.
The good part for Walgreens though they do continue to invest in their US healthcare segment, and they continue to grow the top line in that business, but it's one where they continued to invest a lot as well. So it's recording operating losses, but it brings more of a tech flavor to their business in healthcare solutions, so partnerships with things like VillageMD, Shields, and CareCentrix. These are working well for the company, but the bottom line, at the end of the day, you're right, they cut full-year earnings guidance by about 12%. That's a big deal for a company like this that has a track record of really meeting and beating expectations on a regular basis. So I don't know. I feel like there's probably a light at the end of the tunnel, and maybe this represents a time for investors to get interested in the stock. But it also looks like the near-term headwinds are going to continue for Walgreens for some time to come.
Ron Gross: Quick answer, yes or no. Jason, the Nasdaq is higher or lower at the end of the year than it is now. I won't hold you to it.
Jason Moser: Yes.
Ron Gross: Andy.
Andy Cross: Yes.
Ron Gross: I say no.
Andy Cross: I'm going to hold you to that, Ron.
Ron Gross: All right, Fools. We'll see you a little bit later in the show. Up next, the conversation with Dave Meyer, the VP of Growth and Analytics at BiggerPockets on the state of the housing market. You're listening to Motley Fool Money. Welcome back to Motley Fool Money. I'm Ron Gross. We're halfway through the year, so it makes sense to check in on where things are sitting across the market. Motley Fool Money's Deidre Woollard caught up with Dave Meyer, the VP of Growth and Analytics at BiggerPockets to talk through how the housing market has held up so far this year in the face of higher interest rates and weather trends like aging in place and Sunbelt migration are here to stay.
Deidre Woollard: We're right about the halfway point of the year. What would you say has been some of the main stories in real estate, so far?
Dave Meyer: I think there are two primary stories in real estate. The first is about inventory. We all know that mortgage rates are rising, so I guess you could say that is the story, but that is the well-known story. I think the thing that people were not necessarily expecting is that inventory, or supply in the real estate market, would come down at the same time as higher interest rates were pulling demand out of the market, and it would provide some stability in the housing market, and so overall, I think what most people who follow the housing market are surprised to see is how resilient it has been in the face of rising interest rates in 2023.
Deidre Woollard: It's true. Existing home sales have been down about 20%, but prices have fallen, I think, about 3%. So really what we're seeing is, you don't have that massive price drop that people thought that we might have.
Dave Meyer: That's right, and I know that's confusing to people because there is demand leaving the market. We do see that there are fewer home sales, we do see mortgage purchase applications are down, but inventory is historically low. Redfin actually just came out a couple of days ago and said that May of 2023 was the lowest amount of inventory they've ever seen in their history of tracking that. So that helps provide some background context for why prices aren't in freefall while some people were expecting them to be.
Deidre Woollard: Do you have any predictions for the future for the rest of the year? Is this inventory crisis going to resolve itself?
Dave Meyer: I don't think it's going to anytime soon. There are some pretty big factors that are driving this extremely low inventory. The first is, of course, the rapid increase in interest rates and that has created what people in the industry are calling the lock-in effect, and that's basically that people don't want to move because if they wanted to make a lateral move and go to a similar house, they would be paying significantly more, sometimes 40% more on their mortgage. If they wanted to move up, it would be extremely expensive, and I think one of the main dynamics going on here is that, even if you wanted to downsize, maybe you're an empty nester, and you're looking to downsize, you could be paying just as much or more to have a smaller house, and so that's really keeping people in place. That to me is the primary dynamic. But there are other trends. We've seen the average homeowner is now staying in their home for more than 12 years, whereas if you go back to 2005, it was six-and-a-half years. So it's nearly double. People are staying in their homes longer, so we're just not seeing the same velocity of sales that we were used to in previous decades. Of course, during periods of economic uncertainty, you also just see people not wanting to make big financial decisions like moving.
Deidre Woollard: That's true. One of the factors that I'm watching is the whole aging-in-place phenomenon because we thought that people were going to move to Arizona or Florida, and certainly people are moving to Arizona and Florida. But most people really are wanting to age in place, and that I think is going to have to shake out at some point. Our baby boomers are in their late '70s now. It doesn't seem possible that everyone's going to be able to stay in their homes into their '90s. Over the long term, how should we be thinking about that demographic shift?
Dave Meyer: It's really interesting. I think we're just starting to see. We've heard a lot about the intention for people to age in place, but as you alluded to, we don't know if that's really what's going to happen. I do think this dynamic is one of the main reasons we're seeing that increase in homeowner tenure increase as people don't move out or go to another living situation. But I think this has a big impact, not just on total supply, but it really stops and clogs up the entire housing market system as it works. Typically there's this pattern where young families, people in their late '20s or early '30s, they buy a "starter home". Then a couple of years later, they move up to their family home. Maybe they have one or two of those, maybe if they have kids growing up. Then at a certain point, they want to downsize into a smaller place. But given some of the things we've been talking about, we're not really seeing people downsize, and that means that they are clogging up this whole upward trajectory of people and the changing hands of these different property types. What you see is that the type of housing that the boomers are in are often the same type of homes that are for first-time homebuyers because they're the smaller where they've downsized into them. So that creates this bottleneck, and as you've probably seen, first-time homes, smaller homes, starter homes are just not really available, and I think this is one of the major drivers of that is that boomers are not vacating them.
Deidre Woollard: That's true. The starter home thing is tending to exist less because people, mostly, I think due to the impact of student loans, they're buying their first home later. They're buying their first home later. They're trying to save money before that. They expect to stay in their homes much longer. Like the NAR profile of home buyers and sellers, we talked about people staying in their homes like 7-10 years. They forecast when they ask people how long they think they're going to stay in their home, they're saying 15, 20 years which may or may not play out. But there is this expectation that, I'm buying my forever home the first time, and that's just it.
Dave Meyer: That would be a big change in dynamics, but it does seem more that that's what's happening. We also see builders reacting to that because builders are now not building the "starter home," which most people categorize as a home of 1400 square feet or less. We're now seeing the average home that people buy, even on the first one, is 2500 square feet. That would be more conducive to what most people would want if they had a couple of kids, and so we see those people buying those right away probably in preparation for what you're saying. It's that they don't intend to leave. They don't want to do the starter home, the family home. They just want to get in one home and stay there for as long as they can.
Deidre Woollard: It's interesting. The other part of this, I think, is new homes. The new home, permits and everything, had been down about last year, so maybe starting to go up a little bit now. But home builders, they want to try to time the market. They want to build when people are ready to buy. But at this point, one of the things I'm noticing is that, with existing home inventory being so low, new home inventory is a greater part of the total homes for sale. I wonder, do you think that's going to be a long-term trend?
Dave Meyer: I think it's one of those interesting dynamics going on, and my guess is that, at least for the time being, I don't see really how some of these impediments to inventory alleviate themselves in the short term. The lock-in effect doesn't seem to be going away. People seem to be wanting to stay in their homes longer, and honestly, it's not a good experience to buy or sell a house right now. It's really stressful to people. I think people are avoiding it, and builders are reacting to that. During normal years, new home sales, new construction, comprises about 11% of total home sales. It's above 30 right now, and in some places, it's even higher, and builders are seeing this as a huge opportunity, I think. You see, yes, it is down from the peak, but just in May, new permits went up 5% month-over-month, which is a pretty considerable increase, and I think most people, myself included, thought builders were going to be really pretty bearish over the next couple of months. But I think the opposite, at least in single-family home construction, is happening. I do think they're staying away from commercial construction, but that's another topic.
Deidre Woollard: I think this month was the first time the builder sentiment survey went back up over 50%, which means builders are feeling more positive, and I think the incentives that they're having to offer have dropped a little bit too, so it really is a sign that people are back out there looking, and I think part of that is, the sticker shock of the mortgages may have sunk in a little bit. Thinking about mortgage rates, do you think that we are in now getting into a more stable place?
Dave Meyer: It's very difficult to forecast mortgage rates these days.
Deidre Woollard: It certainly is.
Dave Meyer: But my best guess is that we're probably going to see similar mortgage rates through the rest of the year, which is high sixes, somewhere around there. We have obviously heard that the Fed intends to raise interest rates another 25 or 50 basis points which would put upward pressure on mortgage rates. But what I think people need to know about where mortgage rates stand right now is that they are most closely correlated with the yield on the 10-year treasury, not with the federal funds rate, and normally, the spread between the yield on the tenure and mortgage rate is about 170, 190 basis points. Right now, it's about 320 basis points, and so there is a huge risk premium in mortgage rates, and so there is room. I think you could see it going either way. Like the Fed raises interest rates, mortgage rates could go up. But if inflation keeps coming down, even if the Fed raises interest rates, if that spread starts to come down, there is reason to believe mortgage rates will at least be stable. A lot of economists are forecasting that mortgage rates will come down, maybe not by the end of this year but probably early in 2024, maybe to the low sixes.
Deidre Woollard: Sunbelt migration, big story for the last decade or so. Do you see that as the future? I'm starting to see some data showing up, maybe a little bit more of a move to some of the Midwest areas just because of people chasing value. What are you seeing in terms of demographic trends?
Dave Meyer: People think I'm crazy, but I've been saying that I'm long on the Midwest for a long time. I just think we see these big macro trends that our people want affordability. They don't need to be close to the economic engines as they used to be, like San Francisco or New York. You can live remotely, not everyone, but more and more people can, and I think we're going to see a lot of the cities in the Midwest that are affordable and start to grow, and I think the quality of life, which is hard to measure, it's hard to quantify, but that seem to be another major predictor of where people are going to live. Obviously, everyone defines quality of life a little bit differently. But generally speaking, the cities that rank high for high quality of life do start to see big trends.
Dave Meyer: I don't think the Southeast is really going anywhere. I don't think we're going to see like an exodus from that at all. But I do think like their relative growth rate will probably slow, and we'll see some other places, like you said, Midwest. You see places, like in Arkansas, which is the Southeast but is not what most people think of. I think most people think of the Carolinas and Tennessee and Georgia and Florida. So some of these other places really start to grow, mostly at the expense of Western cities which are seeing the biggest out migration.
Ron Gross: You can catch more from Dave on BiggerPockets on the market podcast. Coming up after the break, Andy Cross and Jason Moser return with a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money.
As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. Welcome back to Motley Fool Money.
Ron Gross here with Andy Cross and Jason Moser. Fools, we have time for two quick stories before we hit stocks on our radar. Prices of sriracha, if I say that correctly, the spicy ketchup like sauce are as high as $70 on eBay and $124 on Amazon. Huy Fong Foods has been struggling with a years-long shortage of the chilis that are used to make the sauce which is hurting production and causing some shortages. Gentlemen, thoughts. Are you a fan of this product? Would you pay up for this product?
Andy Cross: Big fan. I have it in my fridge now. I don't know that I'm going to pay up for it. The thing is funny. These things feed on themselves. They're like runs on banks. [laughs] The more these thing is published, the more panic it creates, and it bids that price up and up and up. But I tell you, it's a good sauce. I use it on its own and also as ingredient for other sauces.
Jason Moser: I got a bottle sitting in my closet that I don't think. If you need some, you know where to call.
Ron Gross: Sticking with the theme, on Independence Day, Pepsi will unveil Pepsi Colachup, which is perhaps exactly what you're thinking it is. Ketchup infused, yes, with Pepsi. Guys, I got to say on a hamburger or a hotdog, it may not be ridiculous.
Jason Moser: Maybe not. I have heard of soda in barbecue sauces before, Stubbs and Dr. Pepper, for example. Stubbs is owned by McCormick, by the way. Throw that in there. Really what this boils down that reminds me the beginning of the season here, I need to go ahead and make up a new match. My big daddies boy, howdy mustard sauce. [laughs] We just call it the house sauce at home. It's that recipe that I made up. We talked about it before on the show, Ron, and maybe as we celebrate freedom this year, maybe I should celebrate by giving that recipe out finally, after all these years.
Ron Gross: You can add some like Mr. Pibb or Dr. Pepper to it.
Jason Moser: No, it just doesn't require.
Andy Cross: I'm waiting for the Mountain Dew-infused mayonnaise, and I'm going to drop off a bottle at Ron's house.
Jason Moser: You need to build up an IPA barbecue sauce.
Ron Gross: Fools, it's time for a couple of stocks on our radar, and I'll bring in our man, Dan Boyd, to ask a question and pick his favorite. Jason Moser, you're up first. What do you got?
Jason Moser: I've been keeping an eye on Amazon, ticker AMZN, and I think this is just a story to watch play out over these next several weeks. We get the FTC planning to file a suit targeting Amazon's core online marketplace in the coming weeks. This is something that has been a long time coming. The main allegation by the FTC is that Amazon uses its power to reward the online merchants that use its logistics service and punish the ones that don't. Now if that's true, that certainly doesn't sound right. So it's going to be interesting to see how this really goes. They've also got the FTC investigating Amazon's deal to buy Roomba. We're looking at actions being taken against [Alphabet's] Google, obviously Microsoft Activision Blizzard on the microscope. Just it's a tough time to be big.
Andy Cross: Amazon, you say? Am I pronouncing it correctly? I'm not familiar with it.
Jason Moser: Newfangled company. You'll hear more about it.
Andy Cross: In England, they pronounce it Amazon.
Ron Gross: Dan, a question from you.
Dan Boyd: Yeah, sure. So Amazon is one of these companies that has its claws in every part of everyday life for the majority of Americans, at least. Is anything the FTC going to do to disrupt that, or are they going to sit back and continue to be one of the most important companies in our economy?
Jason Moser: I have a feeling they're not going to be able to do a whole heck of a lot. It just remains to be seen. These things are always so tricky, and typically companies, they negotiate ways to spin things off or sell little pieces off to appease regulators. But time will tell.
Dan Boyd: Andy, you're up. What are you looking at?
Andy Cross: Let's go from a 1.3. trillion-dollar company to a 1.2 billion-dollar company. Dan, this is a very small company, so tread carefully. It's Winmark, symbol W-I-N-A. It operates as a franchisor of five secondhand resale brands like Play It Again Sports, Plato's Closet, which is for teens, Once Upon A Child, children's cloths, Style Encore, women's clothing, and Dan, Music Go Round, musical instruments, secondhand, you can buy. It also owns a little technology leasing arm. It has nearly 1300 franchises in the US and Canada that sign 10-year lease terms and pay franchise and royalty fees 4-5% of the sales. As a franchisor, Winmark provides services and support to their franchise partners, like marketing and technology, e-commerce. Since 2010, they've recycled almost 1.6 million products. They get a second life as part of another user, and that's more than 450 items per day. Such speaks a little bit to the sustainability play here. Winmark speaks really to the interest of consumers in reusing and recycling products to support that more sustainable lifestyle rather than having to buy a bunch of new products from a store. That takes a lot more energy to make. This whole thing creates a really outstanding business model, Dan, 94% gross margins, 60% plus operating margins, and 40% plus free cash flow margins, with not a lot of assets, really only 40 million of assets for an 80 million in sales and 40 million in profits. So a single-digit grower, but it's increased the dividend more than 40% annualized for the past few yea rs, Winmark, W-I-N-A. Dan?
Dan Boyd: I was independently, of this podcast, looking at this stock to purchase this week already. I love this stock as a dad. I love buying things secondhand. It is a great way to get good products on the cheap. So I'm a big fan of Winmark Corporation.
Andy Cross: The stock is up 40% and sells at 35 times free cash flow. So it is a little bit pricey, so maybe just wait for a little pullback.
Ron Gross: But do you have a favorite, Dan? I think I know the answer to this. Little known Amazon or Winmark?
Jason Moser: Go Winmark, Ron.
Ron Gross: Andy Cross, Jason Moser, thanks for being here. That's going to do it for this week's Motley Fool Money. Our engineer is Dan Boyd. I'm Ron Gross. Thanks for listening. We'll see you next week.
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. Andy Cross has positions in Activision Blizzard, Alphabet, Nvidia, PepsiCo, and S&P Global. Dan Boyd has positions in Activision Blizzard and Amazon.com. Deidre Woollard has positions in Alphabet, Amazon.com, Apple, CVS Health, Nike, and Nvidia. Jason Moser has positions in Alphabet, Amazon.com, Apple, and Nike. Ron Gross has positions in Amazon.com, Apple, and Nike. The Motley Fool has positions in and recommends ASML, Activision Blizzard, Advanced Micro Devices, Alphabet, Amazon.com, Apple, Nike, Nvidia, S&P Global, and Winmark. The Motley Fool recommends CVS Health, Carnival Corp., Delta Air Lines, Marvell Technology, and eBay and recommends the following options: long January 2025 $47.50 calls on Nike and short July 2023 $47.50 calls on eBay. 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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Motley Fool host Deidre Woollard catches up with Dave Meyer, the VP of Growth and Analytics at Bigger Pockets to talk through how the housing market has held up this year in the face of higher rates, and whether trends like aging in place and sunbelt migration are here to stay. Revenue was up 10%, excluding currency impacts, gross margin, up 310 basis points, earnings per share, up 25%, raised guidance, like you said, and as I mentioned, pricing remained strong, and costs are staying at our controls, so I think a very encouraging quarter for the company. Motley Fool Money's Deidre Woollard caught up with Dave Meyer, the VP of Growth and Analytics at BiggerPockets to talk through how the housing market has held up so far this year in the face of higher interest rates and weather trends like aging in place and Sunbelt migration are here to stay.
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In this podcast, Motley Fool Chief Investment Officer Andy Cross and senior analysts Jason Moser and Ron Gross discuss: Revised first-quarter GDP data. This whole thing creates a really outstanding business model, Dan, 94% gross margins, 60% plus operating margins, and 40% plus free cash flow margins, with not a lot of assets, really only 40 million of assets for an 80 million in sales and 40 million in profits. The Motley Fool recommends CVS Health, Carnival Corp., Delta Air Lines, Marvell Technology, and eBay and recommends the following options: long January 2025 $47.50 calls on Nike and short July 2023 $47.50 calls on eBay.
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Motley Fool Money's Deidre Woollard caught up with Dave Meyer, the VP of Growth and Analytics at BiggerPockets to talk through how the housing market has held up so far this year in the face of higher interest rates and weather trends like aging in place and Sunbelt migration are here to stay. I think the thing that people were not necessarily expecting is that inventory, or supply in the real estate market, would come down at the same time as higher interest rates were pulling demand out of the market, and it would provide some stability in the housing market, and so overall, I think what most people who follow the housing market are surprised to see is how resilient it has been in the face of rising interest rates in 2023. As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
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Motley Fool Money's Deidre Woollard caught up with Dave Meyer, the VP of Growth and Analytics at BiggerPockets to talk through how the housing market has held up so far this year in the face of higher interest rates and weather trends like aging in place and Sunbelt migration are here to stay. The new home, permits and everything, had been down about last year, so maybe starting to go up a little bit now. Ron Gross here with Andy Cross and Jason Moser.
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If You Like JEPI, You’ll Love This ETF with an 11.8% Yield
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If you like the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) then you’re going to love its 11.8%-yielding counterpart, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ). What’s the difference between JEPI and JEPQ, and is JEPQ a strong choice for investors to build their portfolios around? Let’s find out.
What’s the Difference Between JEPI and JEPQ?
JEPI is JPMorgan’s well-known and much-discussed covered-call ETF that yields about 10.5% and pays a monthly dividend that has taken the market by storm since its 2020 launch. With $10 billion in net inflows this year as of late June, it is now the market’s most popular actively-managed ETF.
JEPQ takes a similar approach to JEPI, selling one-month, out-of-the-money call options to generate income and paying a monthly dividend to its holders (investors should be aware that these distribution payments can vary from month to month).
JEPQ sports an even larger dividend yield than JEPI at 11.8%. The ETF is much smaller than JEPI, with about $4 billion in assets under management compared to $28 billion for JEPI. JEPQ is also newer than JEPI, having launched in May of 2022.
The key difference is that while JEPI invests in large-cap U.S. stocks and seeks to deliver a significant portion of the total returns of the S&P 500 (SPX) with less volatility, JEPQ takes a similar approach but instead uses the Nasdaq 100 (NDX) as its investment universe.
Like JEPI, JEPQ sports a 0.35% expense ratio, which is higher than that of many of the popular passively-managed index funds but isn't bad for an actively-managed fund.
Lastly, note that JEPI and JEPQ are run by the same team of portfolio managers.
JEPQ's "Magnificent" Portfolio
JEPQ holds 81 stocks, and its top 10 holdings account for 58.7% of assets. Therefore, JEPQ is much more concentrated than JEPI, where the top 10 holdings make up just 17.5% of assets. For instance, its top two holdings, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), combine to make up almost 25% of the fund.
Below is an overview of JEPQ’s top 10 holdings using TipRanks’ holdings tool.
Because it is investing in Nasdaq stocks, JEPQ’s portfolio is much more tech-centric than JEPI’s. The much-discussed "magnificent seven" (the aforementioned Microsoft and Apple, plus Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA)), which have driven much of the overall market’s gains this year, are all present within JEPQ’s top 10 holdings and combine to comprise roughly half of the fund.
Beyond the magnificent seven, the rest of the fund includes many other large-cap growth stocks, including plenty of software names and semiconductor companies. There are also positions in a few Nasdaq-listed consumer staple stocks, such as Costco (NASDAQ:COST), Pepsico (NASDAQ:PEP), and Mondelez (NASDAQ:MDLZ).
Is JEPQ Stock a Buy, According to Analysts?
Turning to Wall Street, JEPQ has a Moderate Buy consensus rating, as 70.6% of analyst ratings are Buys, 26.6% are Holds, and 2.8% are Sells. At $50.46, the average JEPQ stock price target implies 5.3% upside potential.
JEPQ's Performance
JEPQ only launched in May of 2022, so it doesn’t yet have a long track record that potential investors can evaluate. However, it has a strong total return of 24.9% year-to-date and 16.4% over the past year.
No Free Lunch
As is the case with JEPI, investors should consider the fact that to achieve this high yield, some sacrifices need to be made. By selling covered calls to generate income, JEPQ likely forgoes some upside when the stocks it holds are surging. You can see this dynamic playing out in real time this year, using a basic Nasdaq 100 ETF like the Invesco QQQ Trust ETF (NASDAQ:QQQ) as an easily-investable proxy for the Nasdaq.
QQQ has a total return of 40.4% year-to-date, while JEPQ’s total return for 2023 is 24.9%, outperforming JEPQ by a wide margin. QQQ is also outperforming JEPQ over the past year, with a total return of 26.4% versus JEPQ's total return of 16.4%.
A total return of 24.9% just over halfway through the year is not something many investors will complain about, but it has to be said that it lags the total return of a simple Nasdaq ETF like QQQ by a significant margin. The same can be said for the trailing-12 month returns. We don’t know if this gap will persist over time, but for now, it seems fair to say that JEPQ is underperforming the Nasdaq during a bull market.
In fairness to JEPQ, part of its strategy is to mitigate volatility and downside, so it's also possible that we could see JEPQ outperform vanilla Nasdaq ETFs like QQQ during the next bear market. The tech sector and the Nasdaq were in a bear market last year, but JEPQ only launched in May of 2022, nearly midway through the year, so we don't yet know how it would perform during a full market cycle.
Nevertheless, JEPQ's counterpart, JEPI, held up better than the broader market last year, so it does seem likely that JEPQ would be able to do the same.
However, this might be something many investors are okay with. There are many investors out there who like the downside protection that JEPQ offers and are okay with forgoing some capital appreciation in order to achieve this. Furthermore, some income-oriented investors are satisfied with the idea of a double-digit dividend yield and a monthly dividend payment that they can rely on.
Investor Takeaway
For these reasons, whether an investment in an ETF like JEPQ suits your portfolio depends on your individual preferences and investment goals. Because it gives less exposure to the long-term upside of the market, I wouldn’t make JEPQ my only holding or the largest piece of my portfolio.
However, I am intrigued by the idea of adding the power and ingenuity of many of the world’s top technology companies, like Microsoft, Nvidia, and Tesla, to my portfolio with an ETF that also comes with an 11.8% dividend yield.
Because of this combination, JEPQ can fit in nicely as one component of a well-rounded portfolio. JPMorgan explains that JEPQ's role in a portfolio is to add income and provide diversified equity exposure with lower risk while also "maintaining prospects for capital appreciation," and this is a sensible way to look at a vehicle like JEPQ.
While it might not surpass the Nasdaq in terms of total returns, viewing it as a unique asset that substitutes the fixed income component in a portfolio could be worthwhile. This asset can generate income and possibly offer some distinctive exposure in case of a market downturn, making it an attractive option.
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, its top two holdings, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), combine to make up almost 25% of the fund. JEPI is JPMorgan’s well-known and much-discussed covered-call ETF that yields about 10.5% and pays a monthly dividend that has taken the market by storm since its 2020 launch. However, I am intrigued by the idea of adding the power and ingenuity of many of the world’s top technology companies, like Microsoft, Nvidia, and Tesla, to my portfolio with an ETF that also comes with an 11.8% dividend yield.
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For instance, its top two holdings, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), combine to make up almost 25% of the fund. If you like the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) then you’re going to love its 11.8%-yielding counterpart, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ). JEPQ takes a similar approach to JEPI, selling one-month, out-of-the-money call options to generate income and paying a monthly dividend to its holders (investors should be aware that these distribution payments can vary from month to month).
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For instance, its top two holdings, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), combine to make up almost 25% of the fund. If you like the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) then you’re going to love its 11.8%-yielding counterpart, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ). The much-discussed "magnificent seven" (the aforementioned Microsoft and Apple, plus Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA)), which have driven much of the overall market’s gains this year, are all present within JEPQ’s top 10 holdings and combine to comprise roughly half of the fund.
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For instance, its top two holdings, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), combine to make up almost 25% of the fund. JEPQ's "Magnificent" Portfolio JEPQ holds 81 stocks, and its top 10 holdings account for 58.7% of assets. Because it is investing in Nasdaq stocks, JEPQ’s portfolio is much more tech-centric than JEPI’s.
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14998.0
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2023-07-06 00:00:00 UTC
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Opportunities Abound With Equal-Weight Sector ETFs
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AAPL
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https://www.nasdaq.com/articles/opportunities-abound-with-equal-weight-sector-etfs
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nan
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nan
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Reports made much of a small number of stocks accounting for massive portions of broader market returns early this year. In other words, concentration risk is again on market participants’ radars. If concentration risk is an issue, it certainly pertains to sector ETFs. Take the case of the Technology Select Sector Index. Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) combine for about 46% of that index’s weight.
In the cap-weighted Communication Services Select Sector Index, Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOG) combine for roughly 46%. Investors can find more sector-level diversification with Invesco’s lineup of equal-weight sector ETFs.
As is the case with broad market equal-weight strategies such as the Invesco S&P 500® Equal Weight ETF (RSP), there are times when equal-weight sector ETFs will lag their cap-weighted counterparts. There are also times when the more diverse sector funds will top cap weighting. Those occasions are not linear across all 11 GICS sectors.
Some Equal-Weight Sector ETFs Standing Out
Over the past year, some equal-weight sector ETFs stood tall. For example, the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) beat its cap-weighted rival by a handsome margin over the past 12 months, according to S&P Dow Jones Indices data.
The research firm also observed that during that period, the Invesco S&P 500 Equal Weight Industrials ETF (RSPN) and the Invesco S&P 500® Equal Weight Health Care ETF (RSPH) were superior bets relative to their cap-weighted competitors. The Invesco S&P 500 Equal Weight Real Estate ETF (RSPR) declined during that period. This is likely due to rising interest rates, but it performed less poorly than the equivalent cap-weighted real estate ETF.
Many saw the equal-weight financial services and technology ETFs as laggards during that span, but both cases are easily explained. The Invesco S&P 500 Equal Weight Technology ETF (RSPT) doesn’t feature the big weights like Apple and Microsoft that are found in a cap-weighted tech ETF. In terms of the Invesco S&P 500 Equal Weight Financials ETF (RSPF), that fund was hindered by exposure to smaller regional banks, which were slammed earlier this year amid multiple bank failures.
As for near-term catalysts that could propel some of the aforementioned equal-weight ETFs, S&P Dow Jones notes that the equal-weight consumer discretionary and industrial benchmarks tilt towards the size factor. A smaller stock resurgence could boost RSPD and RSPN. On the other hand, RSPH has a value tilt, indicating it could benefit from a rebound in value equities.
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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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) combine for about 46% of that index’s weight. Reports made much of a small number of stocks accounting for massive portions of broader market returns early this year. For example, the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) beat its cap-weighted rival by a handsome margin over the past 12 months, according to S&P Dow Jones Indices data.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) combine for about 46% of that index’s weight. In the cap-weighted Communication Services Select Sector Index, Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOG) combine for roughly 46%. As is the case with broad market equal-weight strategies such as the Invesco S&P 500® Equal Weight ETF (RSP), there are times when equal-weight sector ETFs will lag their cap-weighted counterparts.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) combine for about 46% of that index’s weight. As is the case with broad market equal-weight strategies such as the Invesco S&P 500® Equal Weight ETF (RSP), there are times when equal-weight sector ETFs will lag their cap-weighted counterparts. Some Equal-Weight Sector ETFs Standing Out Over the past year, some equal-weight sector ETFs stood tall.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) combine for about 46% of that index’s weight. As is the case with broad market equal-weight strategies such as the Invesco S&P 500® Equal Weight ETF (RSP), there are times when equal-weight sector ETFs will lag their cap-weighted counterparts. The Invesco S&P 500 Equal Weight Technology ETF (RSPT) doesn’t feature the big weights like Apple and Microsoft that are found in a cap-weighted tech ETF.
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14999.0
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2023-07-06 00:00:00 UTC
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Google delays release of fully custom phone chip until 2025 - The Information
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AAPL
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https://www.nasdaq.com/articles/google-delays-release-of-fully-custom-phone-chip-until-2025-the-information
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nan
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nan
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Add details from report in paragraphs 2-3
July 6 (Reuters) - Alphabet Inc's GOOGL.O Google has delayed the release of a fully custom chip for its Pixel smartphones until 2025, The Information reported on Thursday, citing two people familiar with the matter.
Google originally planned to release the chip, internally called Redondo, next year to replace the semicustom chips it currently designs with Samsung Electronics 005930.KS, the report said.
The tech giant will also switch from Samsung to Taiwan Semiconductor Manufacturing Co (TSMC) 2330.TW for making the chips, called Tensors, according to The Information.
The world's largest contract chipmaker counts companies such as Apple AAPL.O and Nvidia NVDA.O among its customers.
Google and TSMC did not immediately respond to Reuters' requests for comment.
Google will stick with Samsung for another year and wait until 2025 to introduce a fully custom design chip, internally code-named Laguna, according to The Information.
The Laguna chip will be based on TSMC's 3-nanometer manufacturing process, currently the world's most advanced chipmaking process, the report added.
(Reporting by Chavi Mehta in Bengaluru; Editing by Shilpi Majumdar)
((Chavi.Mehta@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 world's largest contract chipmaker counts companies such as Apple AAPL.O and Nvidia NVDA.O among its customers. The tech giant will also switch from Samsung to Taiwan Semiconductor Manufacturing Co (TSMC) 2330.TW for making the chips, called Tensors, according to The Information. Google will stick with Samsung for another year and wait until 2025 to introduce a fully custom design chip, internally code-named Laguna, according to The Information.
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The world's largest contract chipmaker counts companies such as Apple AAPL.O and Nvidia NVDA.O among its customers. Google originally planned to release the chip, internally called Redondo, next year to replace the semicustom chips it currently designs with Samsung Electronics 005930.KS, the report said. Google will stick with Samsung for another year and wait until 2025 to introduce a fully custom design chip, internally code-named Laguna, according to The Information.
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The world's largest contract chipmaker counts companies such as Apple AAPL.O and Nvidia NVDA.O among its customers. Add details from report in paragraphs 2-3 July 6 (Reuters) - Alphabet Inc's GOOGL.O Google has delayed the release of a fully custom chip for its Pixel smartphones until 2025, The Information reported on Thursday, citing two people familiar with the matter. Google originally planned to release the chip, internally called Redondo, next year to replace the semicustom chips it currently designs with Samsung Electronics 005930.KS, the report said.
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The world's largest contract chipmaker counts companies such as Apple AAPL.O and Nvidia NVDA.O among its customers. The tech giant will also switch from Samsung to Taiwan Semiconductor Manufacturing Co (TSMC) 2330.TW for making the chips, called Tensors, according to The Information. Google will stick with Samsung for another year and wait until 2025 to introduce a fully custom design chip, internally code-named Laguna, according to The Information.
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