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15100.0
|
2023-06-30 00:00:00 UTC
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US STOCKS-Futures rise ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-ahead-of-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.
Futures up: Dow 0.22%, S&P 0.33%, Nasdaq 0.50%
June 30 (Reuters) - U.S. stock index futures rose on Friday, the final trading day of the second quarter, ahead of key inflation data that could influence investor expectations on how long the Federal Reserve will maintain a tight monetary policy.
Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that the U.S. central bank will continue to raise interest rates, but stock markets were buoyant on signs of strength in the U.S. economy.
"The backdrop for equities is still no recession, inflation is sticky and financial conditions are still loose. So unless some trigger emerges, equities will remain bid," Peter Garnry, head of equity strategy at Saxo Bank, wrote in a morning note.
"Key risks ahead for U.S. equities remain potential expanded export controls on AI chips and the upcoming Q2 earnings season."
Despite a recent streak of losses, the three main U.S. indexes are on course to end June and the second quarter on a high note as investors expect the Fed's aggressive tightening will not derail the U.S. economy.
Meanwhile, artificial intelligence (AI)-inspired frenzy in technology and megacap stocks set the tech-heavy Nasdaq .IXIC for a near 30% gain in the first half - in what could be its best such performance in 40 years.
The Fed's preferred inflation gauge, the Personal Consumption Expenditure index (PCE) for May, will be released at 8:30 a.m. ET. Economists polled by Reuters expect core rates to remain steady at 4.7%.
Traders were pricing in an 86.8% chance that the Fed will hike rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CMEGroup's Fedwatch tool, up from roughly 72% a week earlier.
The odds of another 25 bps rate also grew to 26%, from 12% last week.
Meanwhile, Treasury yields continued to rise on bets of further rate hikes, with several parts of the yield curve reaching deeper levels of inversion, a sign that bond investors are increasingly worried about an economic slowdown.
The yield on two-year notes US2YT=RR, most reflective of short-term rate expectations, touched highest since early March at 4.93%, while benchmark 10-year yield US10YT=RR also jumped to March highs at 3.89%. US/
At 5:56 a.m. ET, Dow e-minis 1YMcv1 were up 75 points, or 0.22%, S&P 500 e-minis EScv1 were up 14.75 points, or 0.33%, and Nasdaq 100 e-minis NQcv1 were up 75 points, or 0.5%.
Nike Inc NKE.N fell 3.5% premarket after it forecast first-quarter revenue below Wall Street expectations as cost-conscious consumers in North America cut back on sneaker and sports apparel purchases.
Shares of other footwear makers Foot Locker Inc FL.N and Skechers USA SKX.N slipped 0.1% and 1.1%, respectively.
Apple Inc AAPL.O inched up 0.8% after Citigroup started coverage on the stock with a "buy" rating. If the premarket gains hold, the iPhone maker could hit $3 trillion in market capitalization when markets open.
Carnival Corp CCL.N rose 3.0% after Jefferies upgraded the cruise operator's stock to "buy" from "hold".
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shinjini Ganguli)
((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.
|
Apple Inc AAPL.O inched up 0.8% after Citigroup started coverage on the stock with a "buy" rating. Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that the U.S. central bank will continue to raise interest rates, but stock markets were buoyant on signs of strength in the U.S. economy. Traders were pricing in an 86.8% chance that the Fed will hike rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CMEGroup's Fedwatch tool, up from roughly 72% a week earlier.
|
Apple Inc AAPL.O inched up 0.8% after Citigroup started coverage on the stock with a "buy" rating. Futures up: Dow 0.22%, S&P 0.33%, Nasdaq 0.50% June 30 (Reuters) - U.S. stock index futures rose on Friday, the final trading day of the second quarter, ahead of key inflation data that could influence investor expectations on how long the Federal Reserve will maintain a tight monetary policy. Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that the U.S. central bank will continue to raise interest rates, but stock markets were buoyant on signs of strength in the U.S. economy.
|
Apple Inc AAPL.O inched up 0.8% after Citigroup started coverage on the stock with a "buy" rating. Futures up: Dow 0.22%, S&P 0.33%, Nasdaq 0.50% June 30 (Reuters) - U.S. stock index futures rose on Friday, the final trading day of the second quarter, ahead of key inflation data that could influence investor expectations on how long the Federal Reserve will maintain a tight monetary policy. Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that the U.S. central bank will continue to raise interest rates, but stock markets were buoyant on signs of strength in the U.S. economy.
|
Apple Inc AAPL.O inched up 0.8% after Citigroup started coverage on the stock with a "buy" rating. So unless some trigger emerges, equities will remain bid," Peter Garnry, head of equity strategy at Saxo Bank, wrote in a morning note. Despite a recent streak of losses, the three main U.S. indexes are on course to end June and the second quarter on a high note as investors expect the Fed's aggressive tightening will not derail the U.S. economy.
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15101.0
|
2023-06-30 00:00:00 UTC
|
Meta Platforms Is Suddenly Trying to Enter 1 of the Most Valuable Duopolies on the Planet
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-is-suddenly-trying-to-enter-1-of-the-most-valuable-duopolies-on-the-planet
|
nan
|
nan
|
There's an economy worth trillions of dollars worldwide that most of us interact with every single day: mobile apps. And according to Business of Apps, 95% of this valuable app economy is controlled by just two companies (excluding the app economy in China): Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL).
But fellow tech giant Meta Platforms (NASDAQ: META) sees a golden opportunity to break up this duopoly. And it's working toward this goal right now.
It may take a couple of years before any profound impacts are felt. But companies are jostling for position in this important space now, thanks to some recent changes in the European Union.
Why is Meta making a move now?
In October, the E.U. published two new pieces of legislation: the Digital Services Act and the Digital Markets Act. And with these new pieces of legislation, Apple and Alphabet may not be able to funnel mobile users toward its native app stores like it's done in the past. Users may find it increasingly simple to use alternative app stores or simply bypass stores altogether by downloading an app directly from an ad.
As reported by The Verge, Meta Platforms plans to experiment with some app developers on its Facebook platform later this year. The experiment will be on devices powered by the Android operating system, which is connected to Alphabet's Google Play Store. Developers can run ads on Facebook to allow downloads with a single click -- consumers won't be redirected to the Google Play Store.
Meta's upcoming experiment is a new development in this story. But the story already started with Microsoft (NASDAQ: MSFT) earlier this year. In March, the head of Microsoft Gaming, Phil Spencer, referenced the E.U.'s new legislation, saying that the company intends to launch a mobile app store for video games.
Just how valuable is this space?
If Microsoft's video game app store idea sounds familiar, it might be because Fortnite's Epic Games tried to get around parts of Apple's App Store in 2020. The video game developer was tired of giving up a large percentage of its revenue to Apple when users made in-app purchases. Therefore, it offered its in-game currency at a cheaper price on its website, which got Fortnite kicked off the App Store.
For perspective, Apple's take rate -- what it keeps on transactions in the App Store -- can reach 30%. This is a quality, high-margin revenue stream. Consider that Apple now manages 975 million paid subscriptions, taking a cut from each. Simply put, this is a lot of money up for grabs, and it's not surprising that Microsoft and Meta Platforms want to break up the current duopoly.
Circling back for a moment, Meta Platforms says that it doesn't intend to make money from its new app download experiment. But I don't believe the company has charitable long-term plans -- Meta Platforms absolutely wants to make money from apps.
For evidence, when Meta Platforms was emphasizing the build-out of its metaverse platform, it was reportedly looking to take a 47.5% cut of digital-asset sales, which is way more than the hefty fees charged by Apple and Alphabet in their app stores. Therefore, one would expect an app store from Meta to eventually have a take rate comparable to its rivals.
Apple and Epic Games eventually went to court in the U.S., with Apple walking away mostly victorious. However, the E.U. is an entirely different market, and different rules apply. And in the E.U., it seems that Apple's and Alphabet's hold on the app economy is about to get weaker because of the Digital Services Act and the Digital Markets Act, allowing for the rise of alternative app stores and alternative payment methods.
Companies will need to be compliant with the E.U.'s new legislation by March 2024.
Why is Meta experimenting only with Android?
Meta Platforms is only experimenting with Android right now, and it may be because Android already allows some alternative app downloads on its platform. Alphabet has a partnership with a small-cap stock called Digital Turbine. And Digital Turbine's flagship software is SingleTap, a product that allows for app downloads directly from an ad with one click -- there's no redirection to the Google Play Store.
The Verge report doesn't mention Digital Turbine when talking about Meta Platforms' upcoming download experiment. But it wouldn't be surprising if there was a connection.
Keep an eye on the horizon
This is a big market that will potentially be disrupted by some of the biggest tech companies in the world. However, investors today really don't know how any of this will shake out.
Most consumers aren't aware of the take rates for Apple or Alphabet because it's not an issue that impacts them directly. So it's unclear whether users even want alternatives for app downloads or in-app payments. In the end, old consumer habits may die hard.
Therefore, we know that there are changes coming in the E.U. market for the app economy. But it will take time for investors to discern what the financial ramifications will be.
10 stocks we like better than Meta Platforms
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 26, 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. Jon Quast has positions in Digital Turbine. The Motley Fool has positions in and recommends Alphabet, 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.
|
And according to Business of Apps, 95% of this valuable app economy is controlled by just two companies (excluding the app economy in China): Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). Developers can run ads on Facebook to allow downloads with a single click -- consumers won't be redirected to the Google Play Store. The video game developer was tired of giving up a large percentage of its revenue to Apple when users made in-app purchases.
|
And according to Business of Apps, 95% of this valuable app economy is controlled by just two companies (excluding the app economy in China): Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). As reported by The Verge, Meta Platforms plans to experiment with some app developers on its Facebook platform later this year. Developers can run ads on Facebook to allow downloads with a single click -- consumers won't be redirected to the Google Play Store.
|
And according to Business of Apps, 95% of this valuable app economy is controlled by just two companies (excluding the app economy in China): Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). If Microsoft's video game app store idea sounds familiar, it might be because Fortnite's Epic Games tried to get around parts of Apple's App Store in 2020. And in the E.U., it seems that Apple's and Alphabet's hold on the app economy is about to get weaker because of the Digital Services Act and the Digital Markets Act, allowing for the rise of alternative app stores and alternative payment methods.
|
And according to Business of Apps, 95% of this valuable app economy is controlled by just two companies (excluding the app economy in China): Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). As reported by The Verge, Meta Platforms plans to experiment with some app developers on its Facebook platform later this year. If Microsoft's video game app store idea sounds familiar, it might be because Fortnite's Epic Games tried to get around parts of Apple's App Store in 2020.
|
15102.0
|
2023-06-30 00:00:00 UTC
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Where Will Apple Stock Be in 1 Year?
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AAPL
|
https://www.nasdaq.com/articles/where-will-apple-stock-be-in-1-year-1
|
nan
|
nan
|
2023 has been a rewarding year for Apple (NASDAQ: AAPL) investors as the stock has soared 42% so far, driven by the resilience of the company's iPhone sales, which continue to defy the crash in the broader smartphone market. Shares of the technology giant now sit at 52-week highs following their impressive rally.
Investors may now be asking themselves if Apple stock has room to run higher and deliver more upside over the next year. According to a consensus of 38 analysts covering Apple, the stock has a median price target of $189 for the next 12 months. That's the level Apple is trading at right now, suggesting that there may not be more upside on offer. However, the high price target from analysts of $220 a share indicates that Apple could jump 17% over the next year.
Does Apple have what it takes to hit the top price target price set by Wall Street analysts? Let's find out.
Apple's growth is expected to accelerate over the next year
The iPhone is Apple's biggest source of revenue. The device produced 55% of Apple's revenue in the first six months of fiscal 2023 (ended April 1), generating $117 billion in sales over the past couple of quarters. The company's iPhone 14 series thrived during difficult times, pushing Apple's iPhone average selling price (ASP) to $988 in March 2023 from $882 in the same period last year.
It is worth noting that Apple's iPhone shipments were down just 2% year over year in the first quarter of 2023 when the overall smartphone market was down nearly 15%. This suggests customers are willing to open their wallets for iPhones, which is exactly where the opportunity lies for Apple.
The company started ramping up the production of its next-generation iPhones, which are expected to hit the market in September this year. Supply-chain rumors suggest that Apple is going all out to ensure that there is no shortage of supply when its new iPhones come out. One report suggests that the company procured double the number of panels in June and July this year as compared to the same time last year when the iPhone 14 models went into production.
On the other hand, noted Apple analyst Dan Ives of Wedbush Securities points out that the upcoming iPhone models could see tremendous demand thanks to an installed base of 250 million iPhones that haven't been upgraded in four years. Throw in the fact that Apple is expected to raise prices when it releases its next-generation smartphones, the company is likely to benefit from a combination of strong volumes and higher ASPs.
Additionally, Apple could get a boost from its recently announced Vision Pro mixed-reality headset. Priced from $3,499, this headset will hit the market early next year, and market research firm TrendForce says that Apple could ship 200,000 units of this device. This could translate into an additional $700 million in revenue, at least.
Also, the Vision Pro could give Apple's services business a shot in the arm since the company is developing an ecosystem of apps for the device to help users make the most of it. According to Apple, the "Vision Pro has an all-new App Store where users can discover apps and content from developers, and access hundreds of thousands of familiar iPhone and iPad apps that run great and automatically work with the new input system for Vision Pro."
All this explains why Apple's growth is expected to pick up nicely in fiscal 2024 (which will begin in October 2023).
Stronger growth could lead to more upside
Analysts are forecasting a 2% decline in Apple's revenue in the current fiscal year to $385 billion. However, the company's revenue is expected to jump 6.5% in fiscal 2024 (which will end in September 2024) to $410 billion. The company's earnings are expected to jump 10% to $6.57 per share in fiscal 2024 following a decline in the current one.
An improvement in Apple's growth could translate into a stronger stock-price performance over the next year, so it won't be surprising to see the tech giant achieve the Street-high price target referenced above.
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 June 26, 2023
Harsh Chauhan 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.
|
2023 has been a rewarding year for Apple (NASDAQ: AAPL) investors as the stock has soared 42% so far, driven by the resilience of the company's iPhone sales, which continue to defy the crash in the broader smartphone market. Throw in the fact that Apple is expected to raise prices when it releases its next-generation smartphones, the company is likely to benefit from a combination of strong volumes and higher ASPs. An improvement in Apple's growth could translate into a stronger stock-price performance over the next year, so it won't be surprising to see the tech giant achieve the Street-high price target referenced above.
|
2023 has been a rewarding year for Apple (NASDAQ: AAPL) investors as the stock has soared 42% so far, driven by the resilience of the company's iPhone sales, which continue to defy the crash in the broader smartphone market. The company started ramping up the production of its next-generation iPhones, which are expected to hit the market in September this year. Stronger growth could lead to more upside Analysts are forecasting a 2% decline in Apple's revenue in the current fiscal year to $385 billion.
|
2023 has been a rewarding year for Apple (NASDAQ: AAPL) investors as the stock has soared 42% so far, driven by the resilience of the company's iPhone sales, which continue to defy the crash in the broader smartphone market. Apple's growth is expected to accelerate over the next year The iPhone is Apple's biggest source of revenue. The company's iPhone 14 series thrived during difficult times, pushing Apple's iPhone average selling price (ASP) to $988 in March 2023 from $882 in the same period last year.
|
2023 has been a rewarding year for Apple (NASDAQ: AAPL) investors as the stock has soared 42% so far, driven by the resilience of the company's iPhone sales, which continue to defy the crash in the broader smartphone market. Investors may now be asking themselves if Apple stock has room to run higher and deliver more upside over the next year. The company started ramping up the production of its next-generation iPhones, which are expected to hit the market in September this year.
|
15103.0
|
2023-06-30 00:00:00 UTC
|
AAPL Crosses Above Average Analyst Target
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AAPL
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https://www.nasdaq.com/articles/aapl-crosses-above-average-analyst-target
|
nan
|
nan
|
In recent trading, shares of Apple Inc (Symbol: AAPL) have crossed above the average analyst 12-month target price of $189.25, changing hands for $189.59/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 27 different analyst targets within the Zacks coverage universe contributing to that average for Apple Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $140.00. And then on the other side of the spectrum one analyst has a target as high as $225.00. The standard deviation is $18.448.
But the whole reason to look at the average AAPL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAPL crossing above that average target price of $189.25/share, investors in AAPL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $189.25 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Apple Inc:
RECENT AAPL ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 18 19 19 18
Buy ratings: 3 3 3 3
Hold ratings: 7 4 3 3
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 1.59 1.4 1.34 1.35
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AAPL — FREE.
10 ETFs With Most Upside To Analyst Targets »
Also see:
DBCP market cap history
RAVE Historical Stock Prices
Funds Holding ALLB
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In recent trading, shares of Apple Inc (Symbol: AAPL) have crossed above the average analyst 12-month target price of $189.25, changing hands for $189.59/share. And so with AAPL crossing above that average target price of $189.25/share, investors in AAPL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $189.25 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average AAPL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
|
In recent trading, shares of Apple Inc (Symbol: AAPL) have crossed above the average analyst 12-month target price of $189.25, changing hands for $189.59/share. But the whole reason to look at the average AAPL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAPL crossing above that average target price of $189.25/share, investors in AAPL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $189.25 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
|
And so with AAPL crossing above that average target price of $189.25/share, investors in AAPL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $189.25 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Apple Inc (Symbol: AAPL) have crossed above the average analyst 12-month target price of $189.25, changing hands for $189.59/share. But the whole reason to look at the average AAPL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
|
In recent trading, shares of Apple Inc (Symbol: AAPL) have crossed above the average analyst 12-month target price of $189.25, changing hands for $189.59/share. But the whole reason to look at the average AAPL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAPL crossing above that average target price of $189.25/share, investors in AAPL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $189.25 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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15104.0
|
2023-06-30 00:00:00 UTC
|
Apple's market value breaches $3 trillion mark again
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AAPL
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https://www.nasdaq.com/articles/apples-market-value-breaches-%243-trillion-mark-again
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nan
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nan
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Adds background; Updates shares
June 30 (Reuters) - Apple Inc's AAPL.O market capitalization on Friday breached the $3 trillion mark for the first time since January last year, as investors bet on the iPhone maker's ability to grow its revenue even as it explores new markets such as virtual reality.
Shares of Apple, which is also the world's most valuable- listed company, were up 1.3% at $191.99 in morning trading.
Apple's market value briefly peaked above $3 trillion in intra-day trading on Jan. 3, 2022, before closing the session just below that mark.
The latest gains in Apple shares come as technology stocks rebound on bets that the Federal Reserve may be slowing its pace of interest rate hikes as well as on the buzz around artificial intelligence.
Apple's better-than-expected iPhone sales during its second quarter and the introduction of new products, including an augmented-reality headset called the Vision Pro in June, highlight the tech giant's resiliency in an uncertain economy.
Currently, four other U.S. companies have a valuation of more than $1 trillion - Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Nvidia Corp NVDA.O.
Apple shares have jumped nearly 46% this year, while those of Tesla TSLA.O and Meta Platforms META.O have more than doubled.
A near 180% gain in shares of Nvidia in 2023 has catapulted the chipmaker into the trillion-dollar club.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Anil D'Silva)
((tiyashi.datta@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.
|
Adds background; Updates shares June 30 (Reuters) - Apple Inc's AAPL.O market capitalization on Friday breached the $3 trillion mark for the first time since January last year, as investors bet on the iPhone maker's ability to grow its revenue even as it explores new markets such as virtual reality. The latest gains in Apple shares come as technology stocks rebound on bets that the Federal Reserve may be slowing its pace of interest rate hikes as well as on the buzz around artificial intelligence. Apple's better-than-expected iPhone sales during its second quarter and the introduction of new products, including an augmented-reality headset called the Vision Pro in June, highlight the tech giant's resiliency in an uncertain economy.
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Adds background; Updates shares June 30 (Reuters) - Apple Inc's AAPL.O market capitalization on Friday breached the $3 trillion mark for the first time since January last year, as investors bet on the iPhone maker's ability to grow its revenue even as it explores new markets such as virtual reality. Apple's market value briefly peaked above $3 trillion in intra-day trading on Jan. 3, 2022, before closing the session just below that mark. The latest gains in Apple shares come as technology stocks rebound on bets that the Federal Reserve may be slowing its pace of interest rate hikes as well as on the buzz around artificial intelligence.
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Adds background; Updates shares June 30 (Reuters) - Apple Inc's AAPL.O market capitalization on Friday breached the $3 trillion mark for the first time since January last year, as investors bet on the iPhone maker's ability to grow its revenue even as it explores new markets such as virtual reality. The latest gains in Apple shares come as technology stocks rebound on bets that the Federal Reserve may be slowing its pace of interest rate hikes as well as on the buzz around artificial intelligence. (Reporting by Tiyashi Datta in Bengaluru; Editing by Anil D'Silva) ((tiyashi.datta@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.
|
Adds background; Updates shares June 30 (Reuters) - Apple Inc's AAPL.O market capitalization on Friday breached the $3 trillion mark for the first time since January last year, as investors bet on the iPhone maker's ability to grow its revenue even as it explores new markets such as virtual reality. Shares of Apple, which is also the world's most valuable- listed company, were up 1.3% at $191.99 in morning trading. Apple's market value briefly peaked above $3 trillion in intra-day trading on Jan. 3, 2022, before closing the session just below that mark.
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15105.0
|
2023-06-30 00:00:00 UTC
|
What Can Investors Expect in the Second Half of 2023?
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AAPL
|
https://www.nasdaq.com/articles/what-can-investors-expect-in-the-second-half-of-2023
|
nan
|
nan
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A
merica will spend this weekend preparing to celebrate the country's independence, a time of mixed emotions for a British person who now lives in and appreciates this country. More relevant to what I do here than my conflicted feelings on the Fourth, though, is the fact that today also marks the end of the first half of the year, and this half has been one that surprised a lot of people who follow the stock market.
We came into 2023 with a seeming unanimity among analysts and commentators – it was going to be a tough start to the year. At the time, that seemed to make perfect sense in so many ways. The Fed was tightening consistently after a decade or more of ultra-low rates and easy money. Everyone thought they knew what that meant – rising rates led to slowing growth, with an actual recession very likely, and that meant markets were headed lower.
The problem with that set of assumptions, though, was the last part. Higher rates would slow growth for sure, but as I pointed out at the end of last year, that didn’t mean markets were going to fall. In fact, given that rate hikes were a known commodity and their impact had been priced into the big drop in growth stocks in 2022, I said at the time that a bounce back was actually more likely than more losses. That is why I found myself looking for opportunities such as that in Apple (AAPL), a stock that I wrote about in late December as something to buy, rather than looking for places to hide to start the year.
There was also a second part to that consensus view around the end of the year though, and that is relevant now. Just about everyone believed back then that the Fed would stop or drastically slow rate hikes by around the middle of 2023, allowing markets to bounce back strongly. As I am sure you are aware, we saw that this month with the Fed announcing a “pause.” But that news, like news of slower growth in the first half of the year, was known and priced into stocks long before it broke. That is why the S&P 500 is now, two weeks later, only around 1% above where it opened on the day the pause was announced and the rate-sensitive Nasdaq is actually lower.
So, there are a couple of obvious questions for investors. If the popular assumptions about market moves were wrong in the first half of the year, which they clearly were given that the Nasdaq is close to 40% above where it closed 2022, does that mean they will be wrong about H2 as well? Is a drop therefore coming over the next six months? Unfortunately, the answer in both cases is most likely to be “yes.”
If you can detach yourself from the euphoria engendered by strong momentum for a while, ask yourself one question. Even if a soft landing is the eventual outcome after a year or more of rate hikes that saw rates go from zero to five or six percent, is it likely that the Nasdaq repeats its first half performance? If it did, it would mean that the index would have basically doubled in 2023, a year of slowing growth. I don’t know about you, but to me that sounds unlikely. It is actually even more unlikely because it is now what the consensus view is becoming. A lot of the analysts who confidently told us as the year began that stocks were heading lower have now been convinced that all is in fact well and are forecasting further gains.
So, while I am grateful for the gains over the last six months, I have to think there will be a price of some kind to pay in the second half of the year. If everything turns out fine, that price could be as low as less than expected gains as the story unfolds, but with perfection priced in, it is likely to be somewhat higher. A significant drop is even possible should the impact of rate hikes start to be felt in a more acute way.
I came into this year kicking against the consensus, and I am doing so again at half-time. That may be partly the product of me being the kind of contrary person who can go to a party celebrating another country’s victory over mine, but it is also based on decades of experience that has taught me to always question what looks like unanimity in financial markets. It is that experience, not my ornery nature, that makes me cautious about the next six months.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That is why I found myself looking for opportunities such as that in Apple (AAPL), a stock that I wrote about in late December as something to buy, rather than looking for places to hide to start the year. In fact, given that rate hikes were a known commodity and their impact had been priced into the big drop in growth stocks in 2022, I said at the time that a bounce back was actually more likely than more losses. That may be partly the product of me being the kind of contrary person who can go to a party celebrating another country’s victory over mine, but it is also based on decades of experience that has taught me to always question what looks like unanimity in financial markets.
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That is why I found myself looking for opportunities such as that in Apple (AAPL), a stock that I wrote about in late December as something to buy, rather than looking for places to hide to start the year. Everyone thought they knew what that meant – rising rates led to slowing growth, with an actual recession very likely, and that meant markets were headed lower. Higher rates would slow growth for sure, but as I pointed out at the end of last year, that didn’t mean markets were going to fall.
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That is why I found myself looking for opportunities such as that in Apple (AAPL), a stock that I wrote about in late December as something to buy, rather than looking for places to hide to start the year. More relevant to what I do here than my conflicted feelings on the Fourth, though, is the fact that today also marks the end of the first half of the year, and this half has been one that surprised a lot of people who follow the stock market. As I am sure you are aware, we saw that this month with the Fed announcing a “pause.” But that news, like news of slower growth in the first half of the year, was known and priced into stocks long before it broke.
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That is why I found myself looking for opportunities such as that in Apple (AAPL), a stock that I wrote about in late December as something to buy, rather than looking for places to hide to start the year. Higher rates would slow growth for sure, but as I pointed out at the end of last year, that didn’t mean markets were going to fall. In fact, given that rate hikes were a known commodity and their impact had been priced into the big drop in growth stocks in 2022, I said at the time that a bounce back was actually more likely than more losses.
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15106.0
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2023-06-30 00:00:00 UTC
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US STOCKS-Wall St set for higher open as data signals easing inflation
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-higher-open-as-data-signals-easing-inflation
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nan
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nan
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By Sruthi Shankar and Johann M Cherian
June 30 (Reuters) - U.S. stock indexes were on track to open higher on Friday, setting up Wall Street for a strong quarterly performance, as signs of easing inflation offered relief to investors worried about more interest rate hikes from the Federal Reserve.
A Commerce Department report showed the Personal Consumption Expenditure index (PCE), the Fed's preferred inflation gauge, advanced 3.8% compared to a 4.3% rise in April. Excluding the volatile food and energy components, the PCE price index gained 0.3% after rising 0.4% in the previous month.
"It is showing hints of stability and that we're headed in the right direction," said Peter Andersen, founder of Andersen Capital Management in Boston.
"As we close out this quarter and turn to the second half, I'm optimistic that the economy and the consumer are in good shape and will continue to recover."
Traders were pricing in an 86.8% chance that the Fed will hike rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CMEGroup's Fedwatch tool, down slightly from the 89.3% seen on Thursday.
Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that the U.S. central bank will continue to raise interest rates, but stock markets were buoyant on signs of strength in the U.S. economy.
Despite a recent streak of losses, the three main U.S. indexes are on course to end June and the second quarter on a high note as investors expect the Fed's aggressive tightening will not derail the U.S. economy.
Meanwhile, artificial intelligence (AI)-inspired frenzy in technology and megacap stocks set the tech-heavy Nasdaq .IXIC for a near 30% gain in the first half - in what could be its best such performance in 40 years.
Treasury yields slipped following the data, with the yield on two-year notes US2YT=RR, most reflective of short-term rate expectations, dipping from March highs to 4.86%, while benchmark 10-year yield US10YT=RR also fell to 3.83%. US/
At 8:55 a.m. ET, Dow e-minis 1YMcv1 were up 163 points, or 0.47%, S&P 500 e-minis EScv1 were up 27.75 points, or 0.63%, and Nasdaq 100 e-minis NQcv1 were up 131.75 points, or 0.87%.
Apple Inc AAPL.O rose 1.3% in premarket trading after Citigroup started coverage on the stock with a "buy" rating. If the premarket gains hold, the iPhone maker is set to hit $3 trillion in market capitalization when markets open.
Nike Inc NKE.N fell 2.7% after it forecast first-quarter revenue below Wall Street expectations as cost-conscious consumers in North America cut back on sneaker and sports apparel purchases.
Carnival Corp CCL.N rose 3.2% after Jefferies upgraded the cruise operator's stock to "buy" from "hold".
Adobe ADBE.O slipped 0.5% after the UK's competition regulator ordered a second round of review of its deal to buy Figma.
(Reporting by Sruthi Shankar, Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Shinjini Ganguli)
((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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Apple Inc AAPL.O rose 1.3% in premarket trading after Citigroup started coverage on the stock with a "buy" rating. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stock indexes were on track to open higher on Friday, setting up Wall Street for a strong quarterly performance, as signs of easing inflation offered relief to investors worried about more interest rate hikes from the Federal Reserve. Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that the U.S. central bank will continue to raise interest rates, but stock markets were buoyant on signs of strength in the U.S. economy.
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Apple Inc AAPL.O rose 1.3% in premarket trading after Citigroup started coverage on the stock with a "buy" rating. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stock indexes were on track to open higher on Friday, setting up Wall Street for a strong quarterly performance, as signs of easing inflation offered relief to investors worried about more interest rate hikes from the Federal Reserve. Excluding the volatile food and energy components, the PCE price index gained 0.3% after rising 0.4% in the previous month.
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Apple Inc AAPL.O rose 1.3% in premarket trading after Citigroup started coverage on the stock with a "buy" rating. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stock indexes were on track to open higher on Friday, setting up Wall Street for a strong quarterly performance, as signs of easing inflation offered relief to investors worried about more interest rate hikes from the Federal Reserve. Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that the U.S. central bank will continue to raise interest rates, but stock markets were buoyant on signs of strength in the U.S. economy.
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Apple Inc AAPL.O rose 1.3% in premarket trading after Citigroup started coverage on the stock with a "buy" rating. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stock indexes were on track to open higher on Friday, setting up Wall Street for a strong quarterly performance, as signs of easing inflation offered relief to investors worried about more interest rate hikes from the Federal Reserve. A Commerce Department report showed the Personal Consumption Expenditure index (PCE), the Fed's preferred inflation gauge, advanced 3.8% compared to a 4.3% rise in April.
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15107.0
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2023-06-30 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aapl-2
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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 Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
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.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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 Twin Momentum Investor model based on the published strategy of Dashan Huang. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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15108.0
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2023-06-30 00:00:00 UTC
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Daily Markets: Investors Look to Key Inflation Data That Could Guide Future Fed Action
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AAPL
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https://www.nasdaq.com/articles/daily-markets-investors-look-to-key-inflation-data-that-could-guide-future-fed-action
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nan
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nan
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Today’s Big Picture
Asia-Pacific equity markets finished the day mixed. Hong Kong’s Hang Seng dropped 0.09%, Japan’s Nikkei declined 0.14%, and Taiwan’s TAIEX fell 0.16%. Australia’s ASX All Ordinaries gained 0.16%, South Korea’s KOSPI rose 0.56%, China’s Shanghai Composite rallied 0.62%, and India’s SENSEX closed 1.26% higher to set a new all-time high, nudged ahead by Technology and Auto stocks, as well as strong U.S. data.
European markets are up across the board in midday trading and futures point to a healthy open.
Before equity markets open, at 8:30 AM ET we will receive the May Personal Income & Spending report as well as the May data for the Personal Consumption Expenditure (PCE) price index. As we’ve shared often, the PCE price index, and especially the core PCE price index are key inflation barometers for the Fed. Following Fed Chair Powell reconfirming the prospects for two additional rate hikes this year, investors will be closely watching today’s PCE data to gauge inflation fighting progress and the probability the Fed will hike two more times in the coming months. Should the May core PCE price index come in hotter than expected or show little progress relative to its April 4.7% YoY print, we could see stocks end a vibrant June on a weak note.
Data Download
International Economy
China’s NBS Manufacturing PMI rose to 49 in June from 48.8 in May, matching market estimates while pointing to the third straight month of contraction in factory activity. The latest figure came amid growing signs that China’s post-pandemic recovery lost steam, with new orders (48.6 vs 48.3 in May), buying activity (48.9 vs 49.0) and export sales (46.4 vs 47.2) all extending declines. The NBS Non-Manufacturing PMI for China declined to 53.2 in June from 54.5 a month earlier with new orders remaining weak (49.5 vs 49.5 in May) and foreign sales shrinking for the second consecutive month (49.0 vs 49.7).
Retail Sales in Germany decreased 3.6% YoY in May.
The preliminary (flash) consumer price inflation rate in the Euro Area decreased to 5.5% YoY in June, down from 6.1% in the previous month and slightly below market expectations of 5.6%. However, the flash June core CPI rate, which excludes energy, food, alcohol and tobacco, in the Euro Area increased for the first time in three months to 5.4%, up from 5.3% in May, but below market forecasts of 5.5%.
Domestic Economy
In addition to the May Personal Income & Spending report and the May PCE data out this morning, we also have the final June figure for the University of Michigan Consumer Sentiment Index. The market sees that coming in at 63.9 vs. 59.2 in May.
Markets
Equities continued on their cautiously optimistic risk-off track as sectors were up almost across the board yesterday, except for Communication Services (-0.54%), pulled down by Meta Platforms (META) dropping 1.32% and Alphabet (GOOG, GOOGL) both declining around 0.90%, and Consumer Staples (-0.10%) seeing Proctor & Gamble (PG) [-0.41%], McCormack & Co (MKC) [-5.52%] and Coca-Cola (KO) [-0.83%] contribute to over 200% of that sector’s return. Sector results played out in the broad indexes to have the Nasdaq Composite close flat, the S&P 500 gain 0.45%, the Dow rose 0.80% and the Russell 2000 closed 1.23% higher. In individual names, pre-July 4 travel snags weighed on United Airlines (UAL) as shared slid 4.58% on passenger delays and flight cancellations.
Here’s how the major market indicators stack up year-to-date:
Dow Jones Industrial Average: 2.94%
S&P 500: 14.51%
Nasdaq Composite: 29.86%
Russell 2000: 6.83%
Bitcoin (BTC-USD): 83.54%
Ether (ETH-USD): 54.64%
Stocks to Watch
Before U.S. equity markets begin trading today, Constellation Brands (STZ) is expected to report its quarterly results.
Nike (NKE) shares are trading off in pre-market trading following the company’s mixed May quarter earnings report last night that included weaker than expected gross margins due to higher product input costs, elevated freight and logistics costs, higher markdowns and continued unfavorable changes in net foreign currency exchange rates. North America revenue rose 5% to 45.36 billion and while revenue in Greater China soared 25% higher to $1.8 billion, Nike’s Wholesale revenue fell 2%, more than expected. That miss is weighing on shares of Dick’s Sporting Goods (DKS).
indie Semiconductor (INDI) launched an integrated automotive wireless power charging system-on-chip (SoC) that offers the industry's highest level of integration.
JetBlue (JBLU) has expanded its presence in the transatlantic market to Europe with new service between JFK Airport in NY and Paris Charles de Gaulle Airport. In 2024, the company plans to launch service between Boston and Paris.
Foxconn Technology (FXCOF) will invest $246 million in two new projects in Vietnam's northern province of Quang Ninh with a focus on the production and assembly of telecom and electric vehicle (EV) parts.
Per currently available World Bank GDP Data, what’s the difference between Apple (AAPL) and France? Not much as the company just crossed the $3 trillion market capitalization threshold, valuing it higher than the most recently recorded GDP of that country, ranked #7 globally.
IPOs
Readers looking to dig deeper into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page.
After Today’s Market Close
As we head into what for some will be a long weekend, given the July 4th holiday this coming Tuesday, there are no companies slated to report their quarterly results after equities stop trading today. Those looking for more on upcoming quarterly earnings reports should head on over to Nasdaq’s Earnings Calendar.
On the Horizon
Monday, July 3
Japan: Manufacturing PMI – June
China: Caixin Manufacturing PMI – June
Eurozone: Manufacturing PMI – June
UK: Manufacturing PMI - June
US: S&P Global June Manufacturing PMI (Final) – June
US: ISM Manufacturing Index – June
US: Construction Spending – May
US: Equity markets close at 1 PM ET.
Tuesday, July 4
Korea: Consumer Price Index – June
Germany: Imports/Export - May
US: Equity markets closed for the July 4th holiday
Wednesday, July 5
Japan: Services PMI – June
China: Caixin Services PMI – June
Eurozone: Services PMI – June
UK: Services PMI - June
US: Weekly MBA Mortgage Applications
US: ADP Employment Change Report – June
US: Factory Orders – May
Thursday, July 6
Eurozone: Retail Sales - May
US: Challenger Job Cuts Report – June
US: Weekly Initial & Continuing Jobless Claims
US: S&P Global Services PMI (Final) – June
US: ISM Non-Manufacturing Index – June
US: Jolts Job Openings Report – May
US: Weekly EIA Natural Gas Inventories
US: Weekly EIA Crude Oil Inventories
Friday, July 7
US: Employment Report – June
Thought for the Day
“It takes time to create excellence. If it could be done quickly, more people would do it.” ~ John Wooden
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Per currently available World Bank GDP Data, what’s the difference between Apple (AAPL) and France? Australia’s ASX All Ordinaries gained 0.16%, South Korea’s KOSPI rose 0.56%, China’s Shanghai Composite rallied 0.62%, and India’s SENSEX closed 1.26% higher to set a new all-time high, nudged ahead by Technology and Auto stocks, as well as strong U.S. data. Should the May core PCE price index come in hotter than expected or show little progress relative to its April 4.7% YoY print, we could see stocks end a vibrant June on a weak note.
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Per currently available World Bank GDP Data, what’s the difference between Apple (AAPL) and France? The preliminary (flash) consumer price inflation rate in the Euro Area decreased to 5.5% YoY in June, down from 6.1% in the previous month and slightly below market expectations of 5.6%. On the Horizon Monday, July 3 Japan: Manufacturing PMI – June China: Caixin Manufacturing PMI – June Eurozone: Manufacturing PMI – June UK: Manufacturing PMI - June US: S&P Global June Manufacturing PMI (Final) – June US: ISM Manufacturing Index – June US: Construction Spending – May US: Equity markets close at 1 PM ET.
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Per currently available World Bank GDP Data, what’s the difference between Apple (AAPL) and France? Nike (NKE) shares are trading off in pre-market trading following the company’s mixed May quarter earnings report last night that included weaker than expected gross margins due to higher product input costs, elevated freight and logistics costs, higher markdowns and continued unfavorable changes in net foreign currency exchange rates. On the Horizon Monday, July 3 Japan: Manufacturing PMI – June China: Caixin Manufacturing PMI – June Eurozone: Manufacturing PMI – June UK: Manufacturing PMI - June US: S&P Global June Manufacturing PMI (Final) – June US: ISM Manufacturing Index – June US: Construction Spending – May US: Equity markets close at 1 PM ET.
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Per currently available World Bank GDP Data, what’s the difference between Apple (AAPL) and France? As we’ve shared often, the PCE price index, and especially the core PCE price index are key inflation barometers for the Fed. The preliminary (flash) consumer price inflation rate in the Euro Area decreased to 5.5% YoY in June, down from 6.1% in the previous month and slightly below market expectations of 5.6%.
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15109.0
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2023-06-30 00:00:00 UTC
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Citigroup Initiates Coverage of Apple (AAPL) with Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/citigroup-initiates-coverage-of-apple-aapl-with-buy-recommendation
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nan
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nan
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Fintel reports that on June 30, 2023, Citigroup initiated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 2.84% Downside
As of June 1, 2023, the average one-year price target for Apple is 183.88. The forecasts range from a low of 119.18 to a high of $219.45. The average price target represents a decrease of 2.84% from its latest reported closing price of 189.25.
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 6406 funds or institutions reporting positions in Apple. This is an increase of 5 owner(s) or 0.08% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.86%, an increase of 27.54%. Total shares owned by institutions decreased in the last three months by 2.37% to 9,917,788K shares.
The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.82% ownership of the company. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.21% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.81% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.49% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
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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Fintel reports that on June 30, 2023, Citigroup initiated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.86%, an increase of 27.54%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on June 30, 2023, Citigroup initiated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.86%, an increase of 27.54%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on June 30, 2023, Citigroup initiated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.86%, an increase of 27.54%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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Fintel reports that on June 30, 2023, Citigroup initiated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.86%, an increase of 27.54%. The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
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15110.0
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2023-06-30 00:00:00 UTC
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2 Buffett Stocks to Buy and Hold Forever
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https://www.nasdaq.com/articles/2-buffett-stocks-to-buy-and-hold-forever-1
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Warren Buffett knows a thing or two about picking stocks. As CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), he delivered a staggering return of 3,787,464% to the company's shareholders from 1965 to 2022.
He has applied a proven strategy of buying shares in wonderful businesses and holding onto them for years. Two of the largest holdings in Berkshire Hathaway's equity portfolio are Coca-Cola (NYSE: KO) and Apple (NASDAQ: AAPL). Here's why they should deliver good returns for many years.
Coca-Cola
Coca-Cola enjoys a dominant position as the top non-alcoholic beverage company in the world. Its iconic brand is the primary reason Buffett initially invested in the stock more than 30 years ago. As of the end of 2023's first quarter, Berkshire still held 400 million shares of the beverage giant.
The stock has gained 40% over the last five years, and factoring in dividends, it has returned almost 61%. While the company has faced more competition in recent years, it's impressive that its market share in the non-alcoholic beverage segment has continued to march higher: From 42% in 2004, it rose gradually to a high of 46.3% in 2021, according to Statista.
Keep in mind, Coca-Cola has underperformed the total return of S&P 500 index, including dividends, over the last five- and 10-year periods. This isn't a high-growth business that is going to deliver big returns. But the stock's above-average dividend yield of 3% could help boost your portfolio's income, if that's what you're looking for.
Coke stock has also been somewhat less volatile over the last year compared to the broader market, which is why investors consider it a top defensive stock when market uncertainty rises.
Data by YCharts
However, Coke has performed roughly in line with the market's return over the last three years, as revenue and earnings growth has been much stronger since the pandemic. Some consumer brands have relied almost exclusively on price increases to keep growing and offset inflationary costs, but Coke has also grown its unit volumes despite charging more for its products.
Coke owns numerous brands, including Minute Maid, Powerade, and Simply. It's seeing balanced demand across its soda, water, coffee, and juice brands. The only categories that saw declines in unit case volume last quarter were sports drinks and teas.
These results reflect the company's marketing expertise and global distribution system, which is a key part of its competitive advantage. Coke's strategy is to invest in marketing and innovation to keep its beverages relevant to consumers. Its stellar adjusted revenue and earnings growth of 12% year over year in the first quarter shows that it's a well-oiled machine.
Coca-Cola is simply a world-class consumer products company that should deliver satisfactory returns for a long time.
Apple
Apple is the largest holding in Berkshire Hathaway's stock portfolio. As of the end of the first quarter, it held over 915 million shares worth over $150 billion. That dwarfs its Coca-Cola stake, which was valued at almost $25 billion. Buffett loves both for their dominant brand presences in their respective industries, but there's another characteristic they share that speaks to their competitive advantages.
People around the world consume more than 2 billion servings of Coke products a day. Likewise, Apple has more than 2 billion active devices in people's hands worldwide. But what's better about Apple's position is that many of these users have credit cards on file with the company, making it a frictionless process for them to purchase apps and subscriptions through the App Store.
Coke generated a profit margin of 22.7% over the last year, while Apple's margin was 24.5%. It's no coincidence that Buffett loves Apple.
Like Coke, Apple is a master of marketing. Its products are not always the most technically advanced on the market. It's common for its competitors to introduce a new technology or feature to their mobile devices well before Apple brings it to the iPhone -- if it chooses to at all. Samsung, for example, beat Apple to the punch with a foldable smartphone; Apple is now rumored to be working on the same. Nonetheless, Apple generates $385 billion in annual revenue because people enjoy using its devices.
Apple stock recently surged to new all-time highs and trades at an expensive forward price-to-earnings ratio of 31. That's higher than both Coke's ratio of 23.5 and the S&P 500's earnings multiple of 25. Wall Street analysts are starting to express concern about the downside risks for Apple's stock if the economy dips into a recession and iPhone sales slow.
By all accounts, Buffett doesn't make investment decisions based on whether he thinks a recession is coming. The reason has to do with his long-term approach to investing. A slight dip in sales due to a recession is irrelevant to his view of a company's long-term worth.
If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value.
-- Warren Buffett, 1996 Berkshire Hathaway shareholder letter
Wall Street is concerned about next quarter's iPhone sales, but as Buffett suggests, all that matters is how Apple is investing its money to fuel long-term growth in the business.
On that note, Apple continues to plow billions into R&D for new technologies and products -- $28.7 billion in the past year, to be exact. The company just released its Vision Pro virtual reality headset, and there will no doubt be more to come, especially in more advanced artificial intelligence features.
If you think like Buffett and are more concerned about what your portfolio will be worth in 10 years or more than with what it will be worth in 2024, I don't think you can go wrong with Coca-Cola and Apple.
Of course, no business is without risks. Apple must continuously battle other smartphone and tech manufacturers for customers, and Coca-Cola is always navigating the shifting tides of consumer preferences. But these companies have long histories of delivering growth and returns, which makes them no-brainer stocks to anchor your portfolio for the long term.
10 stocks we like better than Coca-Cola
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two of the largest holdings in Berkshire Hathaway's equity portfolio are Coca-Cola (NYSE: KO) and Apple (NASDAQ: AAPL). While the company has faced more competition in recent years, it's impressive that its market share in the non-alcoholic beverage segment has continued to march higher: From 42% in 2004, it rose gradually to a high of 46.3% in 2021, according to Statista. Some consumer brands have relied almost exclusively on price increases to keep growing and offset inflationary costs, but Coke has also grown its unit volumes despite charging more for its products.
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Two of the largest holdings in Berkshire Hathaway's equity portfolio are Coca-Cola (NYSE: KO) and Apple (NASDAQ: AAPL). Coca-Cola Coca-Cola enjoys a dominant position as the top non-alcoholic beverage company in the world. Apple Apple is the largest holding in Berkshire Hathaway's stock portfolio.
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Two of the largest holdings in Berkshire Hathaway's equity portfolio are Coca-Cola (NYSE: KO) and Apple (NASDAQ: AAPL). Coke stock has also been somewhat less volatile over the last year compared to the broader market, which is why investors consider it a top defensive stock when market uncertainty rises. Apple Apple is the largest holding in Berkshire Hathaway's stock portfolio.
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Two of the largest holdings in Berkshire Hathaway's equity portfolio are Coca-Cola (NYSE: KO) and Apple (NASDAQ: AAPL). While the company has faced more competition in recent years, it's impressive that its market share in the non-alcoholic beverage segment has continued to march higher: From 42% in 2004, it rose gradually to a high of 46.3% in 2021, according to Statista. Apple Apple is the largest holding in Berkshire Hathaway's stock portfolio.
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2023-06-30 00:00:00 UTC
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3 No-Brainer Stocks to Buy Right Now for Less Than $200
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https://www.nasdaq.com/articles/3-no-brainer-stocks-to-buy-right-now-for-less-than-%24200
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Investors might be compelled to buy a certain company's shares only to find out that they sell for a high nominal price. For those who don't want to own fractional shares, this can be discouraging because it means some businesses are simply off limits to own directly. And this could get in the way of achieving your financial goals.
The good news, however, is that there are fantastic companies that don't carry a high price tag. Here are three no-brainer stocks investors should look to buy right now. They all trade for less than $200 a share.
1. Alphabet
Macroheadwinds have definitely hurt the market for digital ads, and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has felt this, with revenue growth slowing significantly in recent quarters. Because 78% of its overall revenue last quarter came from advertising, a potential recession is a huge near-term risk factor investors are worried about.
Despite these concerns, it's hard to understate how great of a business Alphabet is. Its main business and cash machine, Google Search, has 93% market share. Google Cloud Platform grew revenue 28% in the latest quarter on a year-over-year basis, while generating positive operating income for the first time ever. And YouTube, with more than 800 million users, attracts more TV viewing time in the U.S. than streaming giant Netflix.
Moreover, Alphabet's financials are excellent. As of March 31, the company had $115 billion of cash, cash equivalents, and marketable securities on its balance sheet, with just $14 billion of debt. And it posted a profit margin of 22% in the last quarter.
Alphabet shares have performed well in 2023, up 34% on the year (as of June 27). But the stock still trades at a reasonable forward price-to-earnings (P/E) ratio of 22. That means buying Alphabet for your portfolio looks like a smart move.
2. Amazon
Amazon (NASDAQ: AMZN) is also dealing with a noticeable slowdown across its enterprise. E-commerce shopping has normalized following a pandemic surge. And Amazon Web Services (AWS), the leader in cloud computing, is seeing growth decelerate as businesses cut back on information technology spending. Overall company revenue was up just 9% in the first three months of 2023.
I believe all of this will prove to be a minor speed bump in the grand scheme of things. Amazon's position as the top e-commerce site means that it has a huge expansionary runway as more and more spending transitions from brick-and-mortar to online. Its massive logistics network, while very costly, is a key competitive strength that allows it to ship products cheaply.
The market for cloud computing is projected to be worth more than $1.5 trillion in 2030, providing Amazon with another powerful growth engine. AWS is in a prime position to benefit.
As of this writing, the stock is 31% below its all-time high, even though it has climbed 53% in 2023. Amazon shares are currently trading hands at a price-to-sales (P/S) multiple of 2.5. That's a huge discount to the stock's trailing three-year average P/S ratio of 3.4, an opportunity that investors should take advantage of.
3. Apple
At around $187 per share, Apple (NASDAQ: AAPL) is the last stock on this list to consider buying. Like its big-tech peers, the iPhone maker is experiencing a slowdown. Revenue declined 3% in its fiscal 2023 second quarter (ended March 31). And hardware sales showed a 5% year-over-year decline.
But shareholders don't need to panic. Apple's products are still incredibly popular among consumers. And they are lucrative for the business, carrying a gross margin of 37%.
And the services segment is becoming more important to Apple's investment story. This division represented 22% of revenue in the last quarter, but it has generally grown faster than hardware in recent years. Its gross margin of 71% should help lift overall company profitability over time.
And looking at services from a qualitative perspective, the segment makes Apple's ecosystem even more powerful by driving higher engagement and stickiness from consumers.
Over the past five years, Apple shares have crushed the Nasdaq Composite Index, rising 307%. And unsurprisingly, they aren't cheap, selling at a forward P/E ratio of 31, above the average of the last 12 months. But this price might be warranted in order to own a piece of one of the most dominant businesses in the world.
10 stocks we like better than Apple
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*Stock Advisor returns as of June 26, 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. Neil Patel has no position in any of the stocks mentioned. 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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Apple At around $187 per share, Apple (NASDAQ: AAPL) is the last stock on this list to consider buying. Google Cloud Platform grew revenue 28% in the latest quarter on a year-over-year basis, while generating positive operating income for the first time ever. And Amazon Web Services (AWS), the leader in cloud computing, is seeing growth decelerate as businesses cut back on information technology spending.
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Apple At around $187 per share, Apple (NASDAQ: AAPL) is the last stock on this list to consider buying. Alphabet Macroheadwinds have definitely hurt the market for digital ads, and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has felt this, with revenue growth slowing significantly in recent quarters. As of March 31, the company had $115 billion of cash, cash equivalents, and marketable securities on its balance sheet, with just $14 billion of debt.
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Apple At around $187 per share, Apple (NASDAQ: AAPL) is the last stock on this list to consider buying. Alphabet Macroheadwinds have definitely hurt the market for digital ads, and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has felt this, with revenue growth slowing significantly in recent quarters. See the 10 stocks *Stock Advisor returns as of June 26, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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Apple At around $187 per share, Apple (NASDAQ: AAPL) is the last stock on this list to consider buying. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Netflix.
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2023-06-30 00:00:00 UTC
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1 Green Flag for Apple in 2023, and 1 Red Flag
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https://www.nasdaq.com/articles/1-green-flag-for-apple-in-2023-and-1-red-flag
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Apple (NASDAQ: AAPL) has long been a favorite among investors, with its stock offering consistent growth and resiliency during challenging market conditions.
The company's stock climbed 307% in the last five years, which is by far the most growth of any company in what's considered the "big five" of tech. Check out the chart below for reference.
Data by YCharts.
With such consistent gains over the years, it's hard to imagine a company like Apple might have a red flag. However, nothing is perfect, and it's wise to be aware of the positives and negatives of a company's business before investing.
Here's one green flag and one red flag for Apple in 2023.
Green flag: An increasingly diversified business
At the end of 2022, Apple shares lost steam as COVID-19-related production issues in China highlighted the company's dependence on the country for manufacturing. Considering the iPhone alone makes up more than 50% of Apple's revenue, investor concern was not unfounded.
The tech giant has since regained Wall Street's faith by making plans to move out of China in the coming years. However, Apple's increasingly expanding businesses outside of the iPhone make its stock an attractive buy.
In the last four years, Apple made a massive push into digital services. The company had previously made inroads in the market with platforms like iCloud and the launch of Apple Music in 2015. However, 2019 saw the debut of several new services, such as Apple TV+, Fitness+, News+, and Arcade. The expansion made services the company's second-largest-earning segment, with revenue rising 14% in fiscal 2022 (double the iPhone's growth).
Moreover, services offer attractive profit margins thanks to the subscription aspect of the business. Last year, services achieved 72% profit margins, with products hitting 36%.
Alongside expanding into new product categories like virtual/augmented reality headsets with its Vision Pro and an increasing push into fintech with a recently launched savings account, Apple's outlook is made stronger through diversification.
Red flag: A potentially overvalued stock
Apple's reputation for consistent stock growth has led investors to see the company as a haven for stability. This was most apparent during 2022's economic downturn, with the company's stock often outperforming the market and many of its competitors throughout the year. However, this isn't always a green flag, as it can lead to an overvalued stock.
For instance, Apple's stock has soared 45% this year. Yet, the company reported revenue declines for two straight quarters, falling 2.5% in the first quarter of 2023 and 5.5% in the second quarter. Meanwhile, Apple's debut of the highly anticipated Vision Pro on June 5 didn't do much to inspire faith with its starting price of $3,499.
As a result, Apple's stock rise this year seems largely on the trust that the company will perform well over the long term. The company has earned that trust, achieving leading market shares in multiple areas of consumer tech. However, an inflated stock price means its shares aren't a massive bargain with its price-to-earnings ratio of 32.
The company's stock price only looks more inflated when comparing revenue and operating income growth over the last five years to competitors like Microsoft and Alphabet. The chart below illustrates how Apple's financial growth has been less than both companies despite its stock rising far higher in the same period (seen in the previous chart).
Data by YCharts.
This isn't to say prospective investors should be wary of Apple. It's just important to be aware of what you're buying at its current stock price and how it compares to its peers.
At the end of the day, Apple remains the king of consumer tech and is unlikely to be dethroned anytime soon. Alongside its growing expansion in digital services, its stock is still an investment worth considering this year.
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 June 26, 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) has long been a favorite among investors, with its stock offering consistent growth and resiliency during challenging market conditions. Green flag: An increasingly diversified business At the end of 2022, Apple shares lost steam as COVID-19-related production issues in China highlighted the company's dependence on the country for manufacturing. Alongside expanding into new product categories like virtual/augmented reality headsets with its Vision Pro and an increasing push into fintech with a recently launched savings account, Apple's outlook is made stronger through diversification.
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Apple (NASDAQ: AAPL) has long been a favorite among investors, with its stock offering consistent growth and resiliency during challenging market conditions. However, Apple's increasingly expanding businesses outside of the iPhone make its stock an attractive buy. In the last four years, Apple made a massive push into digital services.
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Apple (NASDAQ: AAPL) has long been a favorite among investors, with its stock offering consistent growth and resiliency during challenging market conditions. Red flag: A potentially overvalued stock Apple's reputation for consistent stock growth has led investors to see the company as a haven for stability. The chart below illustrates how Apple's financial growth has been less than both companies despite its stock rising far higher in the same period (seen in the previous chart).
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Apple (NASDAQ: AAPL) has long been a favorite among investors, with its stock offering consistent growth and resiliency during challenging market conditions. The company's stock climbed 307% in the last five years, which is by far the most growth of any company in what's considered the "big five" of tech. However, Apple's increasingly expanding businesses outside of the iPhone make its stock an attractive buy.
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2023-06-30 00:00:00 UTC
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US, European IPOs show signs of life after lengthy drought
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https://www.nasdaq.com/articles/us-european-ipos-show-signs-of-life-after-lengthy-drought
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By Echo Wang and Pablo Mayo Cerqueiro
NEW YORK/LONDON, June 30 (Reuters) - A lackluster IPO market is showing signs of life as a flurry of deals in the United States and Europe raise hopes that a recovery may be in sight.
The market for initial public offerings (IPOs) has been in the doldrums since the start of 2022, when Russia's invasion of Ukraine and a spike in inflation dampened risk appetite as investors fretted over relentless interest rate rises.
With investors now predicting an end to the Federal Reserve's rate hikes later this year, optimism has resumed.
The VIX, an index that measures volatility and is known as Wall Street's "fear gauge", has consistently been below 20 - the threshold above which market jitters are seen as too hostile for IPOs - for much of the second quarter. It is now at one of its lowest levels since February 2020.
This allowed thrift shop chain Savers Value Village SVV.N to raise $401 million in its New York IPO this week, more than it originally set out to. Investors continued to snap up its shares, with the stock closing up 27% on its first day of trading.
"It feels a lot more upbeat than June 2022," said Aloke Gupte, co-head of international equity capital markets (ECM) at JPMorgan Chase & Co, which led the Savers IPO as an underwriter and is managing the listing of money transfer group CAB Payments IPO-CABP.L in London.
"It doesn't necessarily manifest in deal volumes yet, but the outlook is very different versus last year," said Gupte, whose responsibilities span Europe, Africa and Asia.
Two other companies also pulled off IPOs in New York - energy infrastructure services provider Kodiak Gas Services KGS.N and insurer Fidelis Insurance Holdings FIHL.N, though at the expense of downsizing the offerings.
"Whilst we are closer to calmer waters, it is still not entirely plain sailing yet," said Tom Swerling, global head of ECM at Barclays, which acted on both the Kodiak and Fidelis transactions.
Earlier this month, shares in U.S. restaurant group Cava CAVA.N rose in their market debut to nearly double the IPO price, in one of the clearest examples yet of returning market appetite.
"(The Cava IPO) has shown that the market is starved for new issuance from high growth companies," said Paul Abrahimzadeh, co-head of ECM for North America at Citigroup, one of the banks leading Cava's offering.
EUROPE IPOS ON THE WAY
In Europe, three IPOs are on track to be completed by early July, but two of them have already had to moderate their valuation expectations.
Thyssenkrupp's TKAG.DE hydrogen unit Nucera is seeking a market capitalisation of 2.7 billion euros ($2.9 billion), below earlier expectations of more than 3 billion euros.
Britain's CAB Payments has taken the rare step of setting a fixed price for its share offering that values it at the lower end of its previously reported range.
Romanian state-backed energy producer Hidroelectrica, however, is aiming for a valuation of as high as 10 billion euros in its domestic IPO, much closer to the figure that selling shareholder Fondul Proprietatea FP.BX has on its books.
If successful, the deals could encourage other companies in Europe to follow suit. Market confidence had taken a hit after natural soda ash producer WE Soda decided to cancel its London IPO amid heightened concerns over the health of the market.
Dual-listing activity is also helping warm up the market. Hong Kong-listed yacht maker Ferretti began trading in Milan this week after selling 265 million euros worth of shares. U.S.-listed beauty group Coty COTY.N is also exploring a Paris listing.
Bankers attribute the latest pickup in listings partly to a frenzy of stock sales in publicly traded companies that has unfolded in recent months, helping pave the way for new issuers to come forward.
These have included several multibillion-dollar sales in blue-chip names like beer maker Heineken HEIO.AS and General Electric spin-off GE Healthcare Technologies GEHC.O.
"This has been the year of the jumbo follow-ons in a way that we haven't seen in many years," said Andrew Briscoe, Bank of America's head of ECM syndicate for Europe, the Middle East and Africa (EMEA).
Advisers expect more companies to resume their IPO plans after the summer lull heralding a busy 2024, but investors remain cautious about a full comeback of the IPO pipeline in spite of market rallies in recent months.
"While people feel better about the market overall, for the individual issuers, the picture may not have changed as much as the markets would suggest," said David DiPietro, head of private investing at T. Rowe Price.
($1 = 0.9169 euros)
(Reporting by Echo Wang in New York and Pablo Mayo Cerquiero in London; Editing by Elisa Martinuzzi and Mark Potter)
((E.Wang@thomsonreuters.com; +13322191785; Reuters Messaging: @deer_echo_))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Echo Wang and Pablo Mayo Cerqueiro NEW YORK/LONDON, June 30 (Reuters) - A lackluster IPO market is showing signs of life as a flurry of deals in the United States and Europe raise hopes that a recovery may be in sight. The market for initial public offerings (IPOs) has been in the doldrums since the start of 2022, when Russia's invasion of Ukraine and a spike in inflation dampened risk appetite as investors fretted over relentless interest rate rises. "It feels a lot more upbeat than June 2022," said Aloke Gupte, co-head of international equity capital markets (ECM) at JPMorgan Chase & Co, which led the Savers IPO as an underwriter and is managing the listing of money transfer group CAB Payments IPO-CABP.L in London.
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By Echo Wang and Pablo Mayo Cerqueiro NEW YORK/LONDON, June 30 (Reuters) - A lackluster IPO market is showing signs of life as a flurry of deals in the United States and Europe raise hopes that a recovery may be in sight. Two other companies also pulled off IPOs in New York - energy infrastructure services provider Kodiak Gas Services KGS.N and insurer Fidelis Insurance Holdings FIHL.N, though at the expense of downsizing the offerings. Thyssenkrupp's TKAG.DE hydrogen unit Nucera is seeking a market capitalisation of 2.7 billion euros ($2.9 billion), below earlier expectations of more than 3 billion euros.
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"It feels a lot more upbeat than June 2022," said Aloke Gupte, co-head of international equity capital markets (ECM) at JPMorgan Chase & Co, which led the Savers IPO as an underwriter and is managing the listing of money transfer group CAB Payments IPO-CABP.L in London. Earlier this month, shares in U.S. restaurant group Cava CAVA.N rose in their market debut to nearly double the IPO price, in one of the clearest examples yet of returning market appetite. Advisers expect more companies to resume their IPO plans after the summer lull heralding a busy 2024, but investors remain cautious about a full comeback of the IPO pipeline in spite of market rallies in recent months.
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Hong Kong-listed yacht maker Ferretti began trading in Milan this week after selling 265 million euros worth of shares. Bankers attribute the latest pickup in listings partly to a frenzy of stock sales in publicly traded companies that has unfolded in recent months, helping pave the way for new issuers to come forward. "This has been the year of the jumbo follow-ons in a way that we haven't seen in many years," said Andrew Briscoe, Bank of America's head of ECM syndicate for Europe, the Middle East and Africa (EMEA).
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2023-06-30 00:00:00 UTC
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Wall Street Analyst Dan Ives Sees a "Tidal Wave" of Growth and $1 Trillion in Incremental IT Spending Unleashed by AI. His 4 Favorite Stocks to Reap the Rewards.
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https://www.nasdaq.com/articles/wall-street-analyst-dan-ives-sees-a-tidal-wave-of-growth-and-%241-trillion-in-incremental-it
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On the heels of the worst market performance in more than a decade, the major market indexes have come roaring back so far this year -- and it's only half over. Helping fuel Wall Street's bullish attitude is investor excitement about the latest advances in artificial intelligence (AI). Investors are only just beginning to understand the far-reaching implications of this next-generation technology, which has the potential to drive growth and innovation for much of the coming decade.
These developments have started an "AI gold rush," according to Wedbush analyst Dan Ives. The analyst recently spoke to CNBC and in the interview, he argues that the accelerating adoption of AI is still underappreciated by most investors and could drive a "tidal wave" of growth in the coming months and years. While many companies will profit from the disruption caused by AI, Ives highlighted four of his favorite AI-related stocks to buy now.
Image source: Getty Images.
Unleashing $1 trillion in IT spending
In a note to his clients this week -- and in subsequent interviews about his report -- Ives argues that the combination of high inflation, rising interest rates, and fears of a recession weighed on technology stocks in 2022. However, rising sentiment fueled by AI boosted big tech so far this year -- and it could be just the beginning. He told CNBC he expects a "much broader tech rally" over the coming six months, with stocks growing by an additional 12% to 15%, on average, in the second half of the year.
Ives further argues that the combination of workforce reductions, cost-cutting measures, and improved inventory levels positioned many technology companies to reap the benefits from an "incremental $1 trillion in IT spending," which will not only drive accelerating growth but also margin expansion, leading to greater profits.
Ives, in his investor note, highlights four companies that he believes are well-positioned to profit from the resurgence in tech and the rise of AI -- and they're among his favorites.
Biggest is sometimes best
Apple's (NASDAQ: AAPL) recent debut of its Vision Pro mixed-reality headset was met with head-scratching by Wall Street, but Ives said he believes this is the first step in a "generative AI-driven app ecosystem" for its installed base of more than 2 billion active devices, which includes roughly 1 billion iPhones.
But there's more to Apple than just AI. Recent macroeconomic conditions suggest there's likely pent-up demand for the soon-to-be-released iPhone 15. There are an estimated 250 million iPhones that haven't been replaced over the past four years, which could fuel a vibrant upgrade cycle. Furthermore, with a greater number of buyers opting for premium models, the average selling price (ASP) is rising. The combination of these factors will increase revenue and boost Apple's stock price. In fact, Ives makes the case that Apple's market cap could top $3.5 trillion to $4 trillion over the coming 18 to 24 months.
Then, there's Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). In many ways, these two companies are the poster children for early attempts to integrate generative AI. Microsoft spent a cool $13 billion for a sizable stake in ChatGPT creator OpenAI and quickly integrated the tech into its Bing search engine. Alphabet responded in kind, debuting its chatbot Bard, which initially met with lukewarm reviews. The company has since provided a more robust response, detailing how it plans to integrate AI into a broad cross-section of its products and services.
Both companies are top-tier players in cloud computing, while Alphabet dominates search and digital advertising, and Microsoft is an undisputed leader in enterprise software -- each of which can be improved with AI. Furthermore, in addition to their existing flagship products and services, AI represents the next big growth and profit opportunity for these tech stalwarts.
Finally, no discussion about AI would be complete without a nod to Nvidia (NASDAQ: NVDA). The company developed the semiconductors that had the necessary computational horsepower, which led directly to the recent advances in AI. Not only does the company boast an estimated 95% share of the machine learning chip market, but management is guiding for revenue of $11 billion in the current quarter, which represents growth of 64% year over year and 53%, sequentially.
To buy or not to buy?
There's been a lot of debate over the past several months regarding the climbing (and in some cases, soaring) valuations among the trendy tech stocks. Bulls insist that this is just the beginning and that significant increases in revenue and ultimately profits will quickly justify the lofty price tags. Bears, on the other hand, suggest that buying at these pricey multiples is a recipe for trouble, as any of these stocks could experience a significant decline at any time (if you have any doubts about that, see last year).
Much of how an investor approaches this dilemma will depend on their investing style. For price-sensitive investors, the time to buy these stocks may have already passed, though they could certainly wait for a better entry point. For those with a strong constitution and a long investing time horizon, the best time to buy these stocks is probably now.
If Ives is right (and my money says he is), this quartet of tech stocks -- Apple, Microsoft, Alphabet, and Nvidia -- will all be significantly higher a decade from now. That's why I've increased my positions in each stock already this year.
10 stocks we like better than Apple
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, 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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Biggest is sometimes best Apple's (NASDAQ: AAPL) recent debut of its Vision Pro mixed-reality headset was met with head-scratching by Wall Street, but Ives said he believes this is the first step in a "generative AI-driven app ecosystem" for its installed base of more than 2 billion active devices, which includes roughly 1 billion iPhones. The analyst recently spoke to CNBC and in the interview, he argues that the accelerating adoption of AI is still underappreciated by most investors and could drive a "tidal wave" of growth in the coming months and years. Unleashing $1 trillion in IT spending In a note to his clients this week -- and in subsequent interviews about his report -- Ives argues that the combination of high inflation, rising interest rates, and fears of a recession weighed on technology stocks in 2022.
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Biggest is sometimes best Apple's (NASDAQ: AAPL) recent debut of its Vision Pro mixed-reality headset was met with head-scratching by Wall Street, but Ives said he believes this is the first step in a "generative AI-driven app ecosystem" for its installed base of more than 2 billion active devices, which includes roughly 1 billion iPhones. The combination of these factors will increase revenue and boost Apple's stock price. Furthermore, in addition to their existing flagship products and services, AI represents the next big growth and profit opportunity for these tech stalwarts.
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Biggest is sometimes best Apple's (NASDAQ: AAPL) recent debut of its Vision Pro mixed-reality headset was met with head-scratching by Wall Street, but Ives said he believes this is the first step in a "generative AI-driven app ecosystem" for its installed base of more than 2 billion active devices, which includes roughly 1 billion iPhones. While many companies will profit from the disruption caused by AI, Ives highlighted four of his favorite AI-related stocks to buy now. Ives, in his investor note, highlights four companies that he believes are well-positioned to profit from the resurgence in tech and the rise of AI -- and they're among his favorites.
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Biggest is sometimes best Apple's (NASDAQ: AAPL) recent debut of its Vision Pro mixed-reality headset was met with head-scratching by Wall Street, but Ives said he believes this is the first step in a "generative AI-driven app ecosystem" for its installed base of more than 2 billion active devices, which includes roughly 1 billion iPhones. However, rising sentiment fueled by AI boosted big tech so far this year -- and it could be just the beginning. That's right -- they think these 10 stocks are even better buys.
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2023-06-30 00:00:00 UTC
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The Zacks Analyst Blog Highlights NVIDIA, Tesla, Apple, Royal Caribbean Cruises and Carnival
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-nvidia-tesla-apple-royal-caribbean-cruises-and-carnival
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For Immediate Release
Chicago, IL – June 30, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Tesla Inc. TSLA, Apple Inc. AAPL, Royal Caribbean Cruises Ltd. RCL and Carnival Corp. & plc CCL.
Here are highlights from Thursday’s Analyst Blog:
2 Cruise Stocks Boosting the S&P 500 Rally in 1H 2023
Astute investors and market pundits were expecting the stock market returns to take a beating this year primarily due to the Federal Reserve’s aggressive monetary tightening measures to tackle stubbornly high inflation.
The consensus was that persistent interest rate hikes would lead to an economic slump, dragging stocks down. An array of regional bank failures had further heightened concerns about economic growth.
However, the economy is still chugging along, with the broader S&P 500 index well-poised to register its best half year in nearly two decades. This is because strength in the labor market overshadowed all kinds of headwinds, including the debt ceiling crisis.
But it’s also true that big techs dominated the S&P 500’s rally for most of the year, thanks to the unprecedented progress in the field of artificial intelligence (AI).
Driven by the AI frenzy, some of the notable S&P 500-listed tech titans such as NVIDIA Corp., Tesla Inc. and Apple Inc. saw their shares soar 181.4%, 108%, 53.6% and 45.7%, individually, so far this year, while the S&P 500 Index surged 9.6% in the same period.
Having said that, interestingly, two of the best-performing stocks listed on the S&P 500 have nothing to do with the AI boom, nor are they part of any revolutionary technologies such as self-driving cars. They are well-known for ferrying people across the globe on cruise ships.
These cruise line stocks are Royal Caribbean Cruises Ltd. and Carnival Corp. & plc, and their shares have surged 108.6% and 114.5%, respectively, in the year-to-date period.
These cruise liners were among the hardest hit during the outbreak of the coronavirus that led to several travel restrictions. Their businesses became soft in the last two years, but with pent-up demand and travel curbs being lifted this year, Royal Caribbean and Carnival racked up solid gains. What’s more, their shares still trade below pre-pandemic levels, indicating more upside soon.
Thanks to an uptick in both onboard sales and tickets, Royal Caribbean’s revenues almost tripled in the first quarter of this year compared to the same period last year. The company swung from an operating loss to a profit in the first quarter and at present has high expectations for its full-year growth.
Royal Caribbean’s expected earnings growth rate for the current year is a whopping 162.9%. The company’s estimated earnings growth rate for next year is also a superb 44.9%.
Notably, the company’s projected revenue growth rates for the current and next years are 48.7% and 13.3%, respectively.
The Zacks Consensus Estimate for RCL’s current-year earnings has moved up 44.8% over the past 60 days. Royal Caribbean has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Similarly, Carnival saw its revenues jump during the first half of this year as passenger booking for upcoming trips skyrocketed. Carnival notched an operating profit during the first six months of this year, in contrast to the operating loss it booked over the same period in 2022.
Carnival’s expected earnings growth rate for the current year is a remarkable 94%. The company’s estimated earnings growth rate for the next year is also a staggering 407.1%.
At the same time, the company’s projected revenue growth rates for the current and next years are 72.7% and 10.1%, respectively.
The Zacks Consensus Estimate for CCL’s current-year earnings has moved up 3.5% over the past 60 days. Royal Caribbean has a Zacks Rank #3 (Hold).
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Carnival Corporation (CCL) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Tesla Inc. TSLA, Apple Inc. AAPL, Royal Caribbean Cruises Ltd. RCL and Carnival Corp. & plc CCL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Driven by the AI frenzy, some of the notable S&P 500-listed tech titans such as NVIDIA Corp., Tesla Inc. and Apple Inc. saw their shares soar 181.4%, 108%, 53.6% and 45.7%, individually, so far this year, while the S&P 500 Index surged 9.6% in the same period.
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Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Tesla Inc. TSLA, Apple Inc. AAPL, Royal Caribbean Cruises Ltd. RCL and Carnival Corp. & plc CCL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Royal Caribbean’s expected earnings growth rate for the current year is a whopping 162.9%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Tesla Inc. TSLA, Apple Inc. AAPL, Royal Caribbean Cruises Ltd. RCL and Carnival Corp. & plc CCL. Here are highlights from Thursday’s Analyst Blog: 2 Cruise Stocks Boosting the S&P 500 Rally in 1H 2023 Astute investors and market pundits were expecting the stock market returns to take a beating this year primarily due to the Federal Reserve’s aggressive monetary tightening measures to tackle stubbornly high inflation.
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Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Tesla Inc. TSLA, Apple Inc. AAPL, Royal Caribbean Cruises Ltd. RCL and Carnival Corp. & plc CCL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. These cruise line stocks are Royal Caribbean Cruises Ltd. and Carnival Corp. & plc, and their shares have surged 108.6% and 114.5%, respectively, in the year-to-date period.
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15116.0
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2023-06-30 00:00:00 UTC
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GRAPHIC-Global markets in H1: Banks vs the machines
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https://www.nasdaq.com/articles/graphic-global-markets-in-h1%3A-banks-vs-the-machines
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World stocks up 12% or $6 trillion
Japan's Nikkei already having best year in a decade
Rates rise but recessions refuse to turn up
European gas leads commodities gloom with 51% slump
Bitcoin, EM debt defaulters roar back to form
Yen and yuan bow to the dollar
Graphic: World FX rates http://tmsnrt.rs/2egbfVh
By Marc Jones
LONDON, June 30 (Reuters) - The first six months of 2023 have been eventful for financial markets - from an artificial intelligence (AI) inspired tech stock surge, commodity market capitulations, cryptocurrency comebacks to the worst banking crash since Lehman Brothers.
Linking it all has been the relentless rise in interest rates, which was exactly what battered markets in 2022. But just that this time has been different due to an unshakeable view that the end of the cycle is near.
The result? A 12%, or $6 trillion, rally in value of world stocks .MIWD00000PUS, .FTAWORLDSR although it has been ominously top heavy.
Thanks largely to ChatGPT, the AI boom has seen the 'Big Tech' giants enjoy a combined surge of 70%. .NYFANG.
Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O, Amazon AMZN.O and Netflix NFLX.O have made 35%-50% gains.
Meta META.O and Tesla TSLA.O have more than doubled, while AI's demand for semiconductor chips catapulted Nvidia NVDA.O 180% higher, briefly adding it to the elite club of U.S. companies with a $1 trillion market value.
"Basically, things looked so grim at the end of last year that it hasn't taken much to lift the markets," said Trevor Greetham, head of multi asset, Royal London Asset Management.
But on the tech surge, he said that "it might well be a bubble", with the firms now effectively needing to bank a 40% jump in earnings to justify their lofty valuations.
Japan's Nikkei share average .N225 has been another stellar performer this year, surging 16% in dollar terms, or 26% in yen terms, setting it up for its best year in a decade.
Gold XAU= has jumped 5%, benchmark government bonds are up 3%-6%, while the world's most financially damaged countries have done even better.
Bonds in El Salvador, which is now battling out of a default, have returned a whopping 58%. Sri Lankan bonds made a return of 34%, Zambia 24% and war-ravaged Ukraine, Pakistan and serial-defaulter Argentina have all made 19%, each.
"It has been remarkable" said Abrdn emerging market portfolio manager Viktor Szabo. "Roughly half of last year's losses have been made back this year and it has all been in the last couple of months."
YEN AND YUAN
The dollar has been steadier overall although the fact that Japan hasn't raised interest rates yet and China's economy is still spluttering mean the yen JPY= and yuan CNH=CNY= are down 9% and nearly 5%, respectively.
Turkey's efforts to tackle its problems following Tayyip Erdogan's re-election haven't been made any easier by another 28% dive in the lira.
Egypt has devalued its currency more nearly 20%, Nigeria has cut naira by 40%, while at the other end of the table Colombian and Mexican pesos and Hungary's forint are up between 10% and 17%.
There have also been around a total of 90 interest rate hikes this year by central banks globally versus just 17 cuts. If last year's rate actions are also added, it comes to just over 470 hikes, compared to 1,202 cuts since the global financial crash in 2008.
The U.S. Federal Reserve has lifted rates by 500 basis points (bps) from near zero last year, the European Central Bank has hiked rates by 400 bps and many developing world economies have done far more. Even the Bank of Japan's ultra-loose monetary settings may be approaching a crossroads.
And it has all caused a plenty of churn.
Two-year Treasury yields, which are highly sensitive to the Fed's moves, rose from 4% to 5% in February, only to dive back to 3.5% when Silicon Valley Bank, a mid-sized U.S. lender few had even heard of, collapsed and consequently led to the 167-year-old Swiss behemoth Credit Suisse requiring an emergency rescue by UBS.
Fast forward and that rate is now at 4.8%. Europe's rates are marching up again and the gap between two and 10-year U.S. Treasury yields US2US10=TWEB - a traditional harbinger of recession - is almost as inverted as it was before the blow-ups.
A RATE MISTAKE
In the cryptomarkets, bitcoin BTC=BTSP has bounced back with a bang, soaring more than 80% in typically volatile fashion.
Interest from Wall Street giants including BlackRock are also fuelling gains, although U.S. regulators suing Binance and Coinbase exchanges exposed crypto's vulnerability to regulatory crackdowns.
Commodities, another crucial piece in the macro jigsaw, have been subdued.
A 51% drop in Europe's natural gas prices, oil slipping 13%, and sharp declines in wheat and corn have all fed hopes of lower global inflation.
And while the 'Goldilocks' view of inflation and rates topping out may have won in the first half of 2023, the bears are still swinging.
"Risk premia have to rise," said Milla Savova, a European equity strategist at BofA, which having been wrongfooted by the rally this year is now predicting a 15% drop in the STOXX 600 and a recession by the start of 2024.
She warned the sheer aggressiveness of the rate hike cycle was now tipping economies over the edge. "We think that this will be seen as a policy mistake when we look back in the years to come."
Global FX performance http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Yen watching https://tmsnrt.rs/3PAhbZi
Zeros to heroes https://tmsnrt.rs/441tjH7
Re-emerging hope https://tmsnrt.rs/44gjViY
Bitcoin rules https://tmsnrt.rs/3pqLgzS
Currencies in 2023 https://tmsnrt.rs/3NECwhY
The race to raise rates https://tmsnrt.rs/3NuuUhK
(Additional reporting by Dhara Ranasinghe and Tom Wilson in London; Editing by Rashmi Aich)
((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O, Amazon AMZN.O and Netflix NFLX.O have made 35%-50% gains. World stocks up 12% or $6 trillion Japan's Nikkei already having best year in a decade Rates rise but recessions refuse to turn up European gas leads commodities gloom with 51% slump Bitcoin, EM debt defaulters roar back to form Yen and yuan bow to the dollar Graphic: World FX rates http://tmsnrt.rs/2egbfVh By Marc Jones LONDON, June 30 (Reuters) - The first six months of 2023 have been eventful for financial markets - from an artificial intelligence (AI) inspired tech stock surge, commodity market capitulations, cryptocurrency comebacks to the worst banking crash since Lehman Brothers. Two-year Treasury yields, which are highly sensitive to the Fed's moves, rose from 4% to 5% in February, only to dive back to 3.5% when Silicon Valley Bank, a mid-sized U.S. lender few had even heard of, collapsed and consequently led to the 167-year-old Swiss behemoth Credit Suisse requiring an emergency rescue by UBS.
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Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O, Amazon AMZN.O and Netflix NFLX.O have made 35%-50% gains. World stocks up 12% or $6 trillion Japan's Nikkei already having best year in a decade Rates rise but recessions refuse to turn up European gas leads commodities gloom with 51% slump Bitcoin, EM debt defaulters roar back to form Yen and yuan bow to the dollar Graphic: World FX rates http://tmsnrt.rs/2egbfVh By Marc Jones LONDON, June 30 (Reuters) - The first six months of 2023 have been eventful for financial markets - from an artificial intelligence (AI) inspired tech stock surge, commodity market capitulations, cryptocurrency comebacks to the worst banking crash since Lehman Brothers. The U.S. Federal Reserve has lifted rates by 500 basis points (bps) from near zero last year, the European Central Bank has hiked rates by 400 bps and many developing world economies have done far more.
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Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O, Amazon AMZN.O and Netflix NFLX.O have made 35%-50% gains. World stocks up 12% or $6 trillion Japan's Nikkei already having best year in a decade Rates rise but recessions refuse to turn up European gas leads commodities gloom with 51% slump Bitcoin, EM debt defaulters roar back to form Yen and yuan bow to the dollar Graphic: World FX rates http://tmsnrt.rs/2egbfVh By Marc Jones LONDON, June 30 (Reuters) - The first six months of 2023 have been eventful for financial markets - from an artificial intelligence (AI) inspired tech stock surge, commodity market capitulations, cryptocurrency comebacks to the worst banking crash since Lehman Brothers. The U.S. Federal Reserve has lifted rates by 500 basis points (bps) from near zero last year, the European Central Bank has hiked rates by 400 bps and many developing world economies have done far more.
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Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O, Amazon AMZN.O and Netflix NFLX.O have made 35%-50% gains. World stocks up 12% or $6 trillion Japan's Nikkei already having best year in a decade Rates rise but recessions refuse to turn up European gas leads commodities gloom with 51% slump Bitcoin, EM debt defaulters roar back to form Yen and yuan bow to the dollar Graphic: World FX rates http://tmsnrt.rs/2egbfVh By Marc Jones LONDON, June 30 (Reuters) - The first six months of 2023 have been eventful for financial markets - from an artificial intelligence (AI) inspired tech stock surge, commodity market capitulations, cryptocurrency comebacks to the worst banking crash since Lehman Brothers. "Roughly half of last year's losses have been made back this year and it has all been in the last couple of months."
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15117.0
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2023-06-29 00:00:00 UTC
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Britain tightens planned tech law to stop children viewing porn
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https://www.nasdaq.com/articles/britain-tightens-planned-tech-law-to-stop-children-viewing-porn
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LONDON, June 30 (Reuters) - Britain said on Friday it had tightened protections in its Online Safety Bill that will prevent children from viewing pornography in an update to long-delayed legislation that is being closely watched by the tech industry.
Under the government's latest amendments after debates in parliament, Britain will set higher standards for age verification tools used by services that publish or allow porn on their platforms, to ensure they are effective in establishing whether a user is a child.
Britain, like the European Union and other countries, has been grappling over how to protect social media users, and in particular children, from harmful content without damaging free speech.
New measures will also seek to hold top executives personally responsible for keeping children safe on their platforms, the government said, after agreeing to toughen the bill in January with the prospect of jail time for tech bosses.
"This government will not allow the lives of our children to be put at stake whenever they go online; whether that is through facing abuse or viewing harmful content that could go on to have a devastating impact on their lives," Paul Scully, minister for tech and the digital economy, said.
"To prevent any further tragedy and build a better future for our children, we are acting robustly and with urgency to make the Online Safety Bill the global standard for protecting our children."
Other changes to the bill will allow regulators to obtain information on a child's social media use if requested by a coroner, which will help bereaved families understand any possible influence of online activity in their death.
The tech industry including firms like Apple AAPL.O have criticised sections of the Online Safety Bill, particularly provisions that could be used to make messaging services break end-to-end encryption in order scan for child abuse material.
The bill, which is possibly months away from being passed, is currently at parliament's upper House of Lords where lawmakers can make amendments before deciding whether to pass or reject it.
(Reporting by Sachin Ravikumar; Editing by Alison Williams;)
((saisachin.r@tr.com; Twitter: @sachinr27))
The views and 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 tech industry including firms like Apple AAPL.O have criticised sections of the Online Safety Bill, particularly provisions that could be used to make messaging services break end-to-end encryption in order scan for child abuse material. LONDON, June 30 (Reuters) - Britain said on Friday it had tightened protections in its Online Safety Bill that will prevent children from viewing pornography in an update to long-delayed legislation that is being closely watched by the tech industry. New measures will also seek to hold top executives personally responsible for keeping children safe on their platforms, the government said, after agreeing to toughen the bill in January with the prospect of jail time for tech bosses.
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The tech industry including firms like Apple AAPL.O have criticised sections of the Online Safety Bill, particularly provisions that could be used to make messaging services break end-to-end encryption in order scan for child abuse material. LONDON, June 30 (Reuters) - Britain said on Friday it had tightened protections in its Online Safety Bill that will prevent children from viewing pornography in an update to long-delayed legislation that is being closely watched by the tech industry. Britain, like the European Union and other countries, has been grappling over how to protect social media users, and in particular children, from harmful content without damaging free speech.
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The tech industry including firms like Apple AAPL.O have criticised sections of the Online Safety Bill, particularly provisions that could be used to make messaging services break end-to-end encryption in order scan for child abuse material. LONDON, June 30 (Reuters) - Britain said on Friday it had tightened protections in its Online Safety Bill that will prevent children from viewing pornography in an update to long-delayed legislation that is being closely watched by the tech industry. "This government will not allow the lives of our children to be put at stake whenever they go online; whether that is through facing abuse or viewing harmful content that could go on to have a devastating impact on their lives," Paul Scully, minister for tech and the digital economy, said.
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The tech industry including firms like Apple AAPL.O have criticised sections of the Online Safety Bill, particularly provisions that could be used to make messaging services break end-to-end encryption in order scan for child abuse material. LONDON, June 30 (Reuters) - Britain said on Friday it had tightened protections in its Online Safety Bill that will prevent children from viewing pornography in an update to long-delayed legislation that is being closely watched by the tech industry. Under the government's latest amendments after debates in parliament, Britain will set higher standards for age verification tools used by services that publish or allow porn on their platforms, to ensure they are effective in establishing whether a user is a child.
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15118.0
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2023-06-29 00:00:00 UTC
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GLOBAL MARKETS-Wall Street mixed, Treasury yields rise on solid U.S. economic data
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AAPL
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https://www.nasdaq.com/articles/global-markets-wall-street-mixed-treasury-yields-rise-on-solid-u.s.-economic-data
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Jobless claims unexpectedly fall, GDP revised higher
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U.S. banks rise after Fed's banking stress test
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Dollar strengthens, Treasury yields rise after data
(Updates to U.S. markets open, changes dateline to NEW YORK
from LONDON)
By Stephen Culp
NEW YORK, June 29 (Reuters) - U.S. stocks were mixed and
benchmark Treasury yields jumped on Thursday as robust economic
data helped stave off recession fears, but also raised the
likelihood that the Fed will keep its restrictive policy in
place for longer than expected.
Financials <.SPSY> led the gainers after the Federal
Reserve's stress test showed U.S. lenders have adequate capital
to weather an economic storm.
The Dow was up most among the three major U.S. stock
indexes, the S&P 500 was up only nominally while the Nasdaq
lingered in negative territory, weighed down by interest rate
sensitive megacaps.
Smallcaps were clear outperformers, with the Russell 2000
well ahead of the pack, up 1.2%.
"What we have seen year-to-date is a very narrow rally that
is occasionally punctuated by participation from the smaller
stocks," said Michael Green, chief strategist at Simplify Asset
Management in Philadelphia. "I believe we're ahead of where we
should be, and most observers are perplexed by the failure of
valuations to retreat."
A surprise drop in initial jobless claims and a sharp upward
revision in first-quarter GDP underscored U.S. economic
resilience and further cemented the likelihood that the Fed will
raise interest rates at least once, and maybe twice more, this
year.
"Good news is bad news," Green added. "So long as the
economic data remains strong it becomes easy for the Fed to
continue raising rates or at least maintain restrictive policy
for longer."
Financial markets have priced in an 87% probability that the
central bank will implement another 25 basis point hike to the
Fed funds target rate at the conclusion of its upcoming July
policy meeting, according to CME's FedWatch tool.
The Dow Jones Industrial Average <.DJI> rose 137.45 points,
or 0.41%, to 33,990.11, the S&P 500 <.SPX> gained 1.7 points, or
0.04%, to 4,378.56 and the Nasdaq Composite <.IXIC> dropped
40.47 points, or 0.3%, to 13,551.28.
European shares moved higher as better-than-expected U.S.
data helped calm jitters over a global economic slowdown and
over hawkish signals from world bank leaders.
The pan-European STOXX 600 index <.STOXX> rose 0.11%
although MSCI's gauge of stocks across the globe <.MIWD00000PUS>
was flat.
Emerging market stocks lost 0.60%. MSCI's broadest index of
Asia-Pacific shares outside Japan <.MIAPJ0000PUS> closed 0.57%
lower, while Japan's Nikkei <.N225> rose 0.12%.
Treasury yields rose after economic reports painted a
picture of a solid U.S. economy, promoting the "higher for
longer" scenario with respect to restrictive monetary policy.
Benchmark 10-year notes last fell 35/32 in price
to yield 3.8461%, from 3.712% late on Wednesday.
The 30-year bond last fell 55/32 in price to
yield 3.9035%, from 3.804% late on Wednesday.
The dollar gained ground against a basket of world
currencies, boosted by the upbeat economic data.
The dollar index <.DXY> rose 0.31%, with the euro
down 0.22% to $1.0887.
The Japanese yen weakened 0.10% versus the greenback at
144.66 per dollar, while sterling was last trading at
$1.2617, down 0.18% on the day.
Oil prices extended fuelledday's gains, as the solid
economic data suggested strong demand and a
steeper-than-expected drop in U.S. crude inventories.
U.S. crude rose 0.96% to $70.23 per barrel and Brent
was last at $75.05, up 1.09% on the day.
Gold prices hovered around the key $1,900 level, its gains
hampered by the strengthening dollar.
Spot gold added 0.3% to $1,912.29 an ounce.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
Dollar performance https://tmsnrt.rs/3rc9yhv
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Stephen Culp; Additional reporting by Marc Jones
in London; Editing by Susan Fenton)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
((To read Reuters Markets and Finance news, click on
https://www.reuters.com/finance/markets
For the state of play of Asian stock markets please click on: <0#.INDEXA>))
Keywords: GLOBAL MARKETS/ (UPDATE 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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A surprise drop in initial jobless claims and a sharp upward revision in first-quarter GDP underscored U.S. economic resilience and further cemented the likelihood that the Fed will raise interest rates at least once, and maybe twice more, this year. Financial markets have priced in an 87% probability that the central bank will implement another 25 basis point hike to the Fed funds target rate at the conclusion of its upcoming July policy meeting, according to CME's FedWatch tool. European shares moved higher as better-than-expected U.S. data helped calm jitters over a global economic slowdown and over hawkish signals from world bank leaders.
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* U.S. banks rise after Fed's banking stress test (Updates to U.S. markets open, changes dateline to NEW YORK from LONDON) By Stephen Culp NEW YORK, June 29 (Reuters) - U.S. stocks were mixed and benchmark Treasury yields jumped on Thursday as robust economic data helped stave off recession fears, but also raised the likelihood that the Fed will keep its restrictive policy in place for longer than expected. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA Dollar performance https://tmsnrt.rs/3rc9yhv ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Stephen Culp; Additional reporting by Marc Jones in London; Editing by Susan Fenton) ((stephen.culp@thomsonreuters.com; 646-223-6076;))
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(Updates to U.S. markets open, changes dateline to NEW YORK from LONDON) By Stephen Culp NEW YORK, June 29 (Reuters) - U.S. stocks were mixed and benchmark Treasury yields jumped on Thursday as robust economic data helped stave off recession fears, but also raised the likelihood that the Fed will keep its restrictive policy in place for longer than expected. Treasury yields rose after economic reports painted a picture of a solid U.S. economy, promoting the "higher for longer" scenario with respect to restrictive monetary policy. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA Dollar performance https://tmsnrt.rs/3rc9yhv ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Stephen Culp; Additional reporting by Marc Jones in London; Editing by Susan Fenton) ((stephen.culp@thomsonreuters.com; 646-223-6076;))
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* U.S. banks rise after Fed's banking stress test * Dollar strengthens, Treasury yields rise after data ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: <0#.INDEXA>))
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15119.0
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2023-06-29 00:00:00 UTC
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The 3 Most Undervalued Dow Stocks to Buy Now: June 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-most-undervalued-dow-stocks-to-buy-now%3A-june-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Dow Jones Industrial Average has not exactly been keeping up with the other indices so far this year. That fact has left behind a number of undervalued Dow stocks for value investing.
In many cases, these are blue-chip stocks that have simply been out of favor.
In some instances, you have names like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) leading the market higher, and JPMorgan (NYSE:JPM) is a best-in-breed bank stock. However, many others have lagged, and it shows in their year-to-date performance.
The Nasdaq has soared roughly 30% so far this year, while the S&P 500 is up a respectable 14%. But the Dow and the Russell 2000 are barely positive on the year, up just 2.13% and 5.53% as of June 28, respectively.
With those numbers in place as we near the end of the second quarter — and the halfway mark of 2023 — the Dow is the worst performer of the four major U.S. indices. Will that change in the second half?
Let’s look at some of the most undervalued Dow stocks.
Undervalued Dow Stocks: Disney (DIS)
Source: chrisdorney.Shutterstock.com
Starting the list off with a company recently highlighted in the news, Disney (NYSE:DIS) comes to mind when looking for undervalued Dow stocks.
Now keep in mind there are plenty of other cheaper picks (on a price-to-earnings basis) with higher yields. However, they are also low-growth and/or struggling companies. That’s not to say Disney doesn’t have its share of problems — clearly — as the stock is down more than 50% from its all-time high.
However, one could argue that this name is ripe with potential.
Disney is the king of entertainment, dominating with its portfolio of theme parks, studio hits, cruise lines, deep content catalog and streaming business. The firm operates three streaming segments — ESPN+, Disney+ and Hulu — and has more than 230 million paying subscribers.
It’s not the most affordable choice on the Dow, but trading at less than 17 times next year’s targeted earnings and down big from the highs, it’s worth considering if Bob Iger can pull off another big feat during his stint as CEO.
Retailer Rocked by Sellers: Walgreens (WBA)
Source: saaton / Shutterstock.com
Walgreens (NASDAQ:WBA) and CVS Health (NYSE:CVS) have been out of favor among investors. However, Walgreens just took it on the chin. Shares fell 9.3% to 52-week lows on June 27 after the company reported disappointing quarterly results.
While the company grew sales almost 9% year over year to $35.4 billion — and beat expectations by more than $1 billion — earnings of just $1 a share missed analysts’ expectations by 7 cents. In other words, margins are under pressure.
Even worse, that was the company’s third fiscal quarter, and while it only missed earnings estimates by 7 cents, the event notably reduced its full-year outlook. Management now expects earnings of $4.00 to $4.05 a share vs. the previously expected range of $4.45 to $4.65 a share.
However, there’s good news.
The company is almost done with this fiscal year, and analysts expect the company to return to growth — albeit just modest growth — in fiscal 2024. Further, consider that shares trade at just 7 times the newly expected earnings figure, while WBA stock pays out a 6.8% dividend yield.
Lastly, for those worried about the payout, note that the company has raised its dividend for 47 consecutive years.
Blue-Chip Stocks: Johnson & Johnson (JNJ)
Source: Sundry Photography / Shutterstock.com
Johnson & Johnson (NYSE:JNJ) underwent some pretty terrible and abnormal price action earlier this year. The stock logged a consistent loss for nine straight weeks — something it hasn’t done in years.
Now though, the stock is trading much better.
Shares have rallied for four straight weeks, and the stock looks like it could continue to push higher in the coming months. If it doesn’t, that gives long-term investors more time to scoop up the stock.
Johnson & Johnson is a dividend stud. Not only has the company paid out its dividend for several decades, but it has also actually raised that payout for 62 consecutive years. That’s after the company gave a 5.3% boost to its payout in April.
Last quarter, the company delivered a top- and bottom-line beat and raised its full-year outlook for both measures. Keep in mind, it was only the company’s fiscal first quarter at the time. Despite the positives, shares trade at just over 15 times earnings and still pay a dividend yield close to 3%.
On the date of publication, Bret Kenwell held a long position in JNJ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
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The post The 3 Most Undervalued Dow Stocks to Buy Now: June 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In some instances, you have names like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) leading the market higher, and JPMorgan (NYSE:JPM) is a best-in-breed bank stock. Disney is the king of entertainment, dominating with its portfolio of theme parks, studio hits, cruise lines, deep content catalog and streaming business. Even worse, that was the company’s third fiscal quarter, and while it only missed earnings estimates by 7 cents, the event notably reduced its full-year outlook.
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In some instances, you have names like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) leading the market higher, and JPMorgan (NYSE:JPM) is a best-in-breed bank stock. Retailer Rocked by Sellers: Walgreens (WBA) Source: saaton / Shutterstock.com Walgreens (NASDAQ:WBA) and CVS Health (NYSE:CVS) have been out of favor among investors. While the company grew sales almost 9% year over year to $35.4 billion — and beat expectations by more than $1 billion — earnings of just $1 a share missed analysts’ expectations by 7 cents.
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In some instances, you have names like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) leading the market higher, and JPMorgan (NYSE:JPM) is a best-in-breed bank stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dow Jones Industrial Average has not exactly been keeping up with the other indices so far this year. Undervalued Dow Stocks: Disney (DIS) Source: chrisdorney.Shutterstock.com Starting the list off with a company recently highlighted in the news, Disney (NYSE:DIS) comes to mind when looking for undervalued Dow stocks.
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In some instances, you have names like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) leading the market higher, and JPMorgan (NYSE:JPM) is a best-in-breed bank stock. Further, consider that shares trade at just 7 times the newly expected earnings figure, while WBA stock pays out a 6.8% dividend yield. Keep in mind, it was only the company’s fiscal first quarter at the time.
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15120.0
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2023-06-29 00:00:00 UTC
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How Education and Training are Being Reimagined in the Metaverse
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AAPL
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https://www.nasdaq.com/articles/how-education-and-training-are-being-reimagined-in-the-metaverse
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nan
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nan
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The Metaverse is here to stay, as evidenced by Apple’s (NASDAQ:AAPL) recent entry into the VR/AR space. The Apple Vision Pro is unique from previous attempts because of its focus on productivity, which is quite timely. The possibilities of using metaverse and VR for education and training are astounding.
As with any new technology, there’s often a lot of hostility to the growing phenomenon of the Metaverse, which essentially involves experiencing virtual worlds powered by Virtual or Augmented Reality goggles.
Critics often focus on the Metaverse as an escape from reality -- a place to do things you’d never be allowed to in the real world. For people struggling in their real life, the Metaverse could be a destructive escape, similar to alcoholism and drugs.
However, this overly-negative interpretation misses all the many ways in which the Metaverse can help augment and improve our “real-world” lives. Specifically, there’s a large number of ways we can leverage metaverse environments to improve our understanding of the world.
Simulating Real-World Situations to Practice
In the Matrix movies, when Neo has to learn how to bend the simulation to his will, he first does it through special training programs that recreate particular situations. These are low-stakes environments that are specially made for this purpose. They were disconnected from the main Matrix and allowed Neo and Morpheus to practice absurdly long jumps, martial arts, and many other skills.
It will be a long while before the Metaverse can reach that level of realism, but in the meantime, there’s no reason why we can’t use it for more mundane training.
A good example is to practice various social interactions and soft skills. For example, most people aren’t really born as leaders and may need some time to feel confident in their new shoes of a management position or similar.
With the Metaverse, it’s possible to create a “game” of communication where the player must face an emotionally charged situation. The benefit of the Metaverse is that the situation will feel very immersive and real but won’t have any real-world consequences. This can be done both with fully-simulated training with Non-Playable Characters (NPCs), which could be powered by AI, or with other real-life humans who are looking for the same kind of practice.
The Metaverse can also kick our immersion capabilities up a notch for historical or cultural settings.
For history buffs, there is nothing more satisfying than a well-made game or TV show set in a particular era. Metaverse-powered platforms can help the user feel as if they’re there, recreating historical and geographical settings with full 3D vision and interactivity. This will obviously require high-quality rendering engines, but it is well within the realm of today’s technology.
Similarly, language learners may have the perfect practice setting. It is well known that the best way to learn a new language is by being fully immersed in it. In essence, to move to the country where that language is spoken. But moving to new countries isn’t really practical to most due to immigration laws and life circumstances. It’s a luxury only afforded to the wealthy and/or young, who can, for example, join student exchange programs.
Enter the Metaverse; by recreating a dynamic and interactive context in the target language, the learner can practice listening and speaking without ever leaving their bedroom.
Masterclass, Turbocharged
The Metaverse can be a place to learn skills from experts in their field, be they regular teachers or “celebrity” experts.
Sure, video calls can be an “easier” way to take long-distance communication, but they’ve always felt off and awkward compared to a real-life meeting. They’re ok for remote business meetings, but building true relations and rapport is nearly impossible. The primary reason for that, according to psychologists, is the lack of body language cues and immersiveness.
This is where an immersive metaverse can dramatically help with building true two-sided interactions between teacher and student, as well as co-workers. The immersiveness benefit is clear, and with time, we should be able to recreate a good portion of the body language cues we use in communication.
With the Metaverse, we can also create unique celebrity-fan encounters that are easier than physical travel and more fulfilling than a basic video call.
Think Gordon Ramsay setting up cooking challenges, Quentin Tarantino talking about some funny behind-the-scene events, or Neil DeGrasse Tyson chatting with you about black holes. By the way, Ramsey has already stepped up to the plate in The Sandbox (a virtual-gaming world)!
What’s more, by combining the Metaverse with AI deep-learning models, the same experience can be achieved for masters of their domains that are no longer with us, like in the case of the video game Byte City “bringing back” Bruce Lee to teach his fans martial arts.
To honor the 50 years anniversary of his passing, Byte City has collaborated with Lee’s daughter to give fans the chance to interact with a detailed avatar of the legendary fighter in their metaverse, creating a unique social gathering that wouldn’t be possible in real life and a learning experience.
The Future of Learning
Much of the narrative around the Metaverse has been shaped by COVID-era thinking -- when it was common to think that it was “the new normal” and that social interactions would never be the same. Because of that focus, when it turned out that we could and would indeed go back to normal, the Metaverse’s popularity steeply fell off.
But the Metaverse goes beyond that, and with recent advances in technology, these unique experiences could go mainstream in just a few years. The Metaverse has great educational potential, and those taking advantage of it can learn new skills in a more interactive, immersive, and accessible environment than ever before.
Finding Metaverse-Related Stocks
If you're bullish on the Metaverse, check out the top metaverse stocks comparison page on TipRanks, where you can compare numerous stocks based on key criteria. Click on the image below to learn more.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Metaverse is here to stay, as evidenced by Apple’s (NASDAQ:AAPL) recent entry into the VR/AR space. Think Gordon Ramsay setting up cooking challenges, Quentin Tarantino talking about some funny behind-the-scene events, or Neil DeGrasse Tyson chatting with you about black holes. What’s more, by combining the Metaverse with AI deep-learning models, the same experience can be achieved for masters of their domains that are no longer with us, like in the case of the video game Byte City “bringing back” Bruce Lee to teach his fans martial arts.
|
The Metaverse is here to stay, as evidenced by Apple’s (NASDAQ:AAPL) recent entry into the VR/AR space. As with any new technology, there’s often a lot of hostility to the growing phenomenon of the Metaverse, which essentially involves experiencing virtual worlds powered by Virtual or Augmented Reality goggles. They were disconnected from the main Matrix and allowed Neo and Morpheus to practice absurdly long jumps, martial arts, and many other skills.
|
The Metaverse is here to stay, as evidenced by Apple’s (NASDAQ:AAPL) recent entry into the VR/AR space. To honor the 50 years anniversary of his passing, Byte City has collaborated with Lee’s daughter to give fans the chance to interact with a detailed avatar of the legendary fighter in their metaverse, creating a unique social gathering that wouldn’t be possible in real life and a learning experience. The Metaverse has great educational potential, and those taking advantage of it can learn new skills in a more interactive, immersive, and accessible environment than ever before.
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The Metaverse is here to stay, as evidenced by Apple’s (NASDAQ:AAPL) recent entry into the VR/AR space. Critics often focus on the Metaverse as an escape from reality -- a place to do things you’d never be allowed to in the real world. A good example is to practice various social interactions and soft skills.
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15121.0
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2023-06-29 00:00:00 UTC
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These 3 Companies Are Cash-Generating Machines
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AAPL
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https://www.nasdaq.com/articles/these-3-companies-are-cash-generating-machines
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nan
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nan
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When scouting for stocks, a standard metric that comes into focus is free cash flow. In its simplest form, free cash flow is the total cash a company keeps after operating costs and capital expenditures.
Free cash flow strength allows for more growth opportunities, a higher potential for share buybacks, stable dividend payouts, and the ability to wipe out any debt easily.
For those interested in cash-generating machines, three companies – Apple AAPL, UnitedHealth UNH, and Broadcom AVGO – all fit the criteria.
Let’s take a closer look at each.
Apple
Apple is often labeled the ‘King’ of free cash flow for understandable reasons; the company generated a mighty $25.6 billion in free cash flow throughout its latest quarter. And over the last trailing twelve-month, the tech titan has generated nearly $100 billion of free cash flow.
Image Source: Zacks Investment Research
Apple shares aren’t cheap, with the current 31.6X forward earnings multiple sitting well above the 24.7X five-year median. Still, investors have had little issue forking up the premium given the company’s favorable standing, with AAPL shares up more than 40% year-to-date.
Image Source: Zacks Investment Research
The tech titan bounced back in its latest release and delivered better-than-expected results; Apple penciled in a solid 5.5% EPS beat and reported revenue nearly 2% above expectations. The market cheered on the results, with shares finding plenty of buyers post-earnings.
Image Source: Zacks Investment Research
UnitedHealth
UnitedHealth provides a wide range of healthcare products and services, including health maintenance organizations (HMOs), point of service plans (POS), and preferred provider organizations (PPOs). The health titan reported $15.6 billion in free cash flow in its latest quarter, jumping a sizable 220% from the year-ago period.
The company has also shown a commendable commitment to increasingly rewarding shareholders, boasting a 15% five-year annualized dividend growth rate. UNH shares yield 1.6% annually paired with a sustainable payout ratio sitting at 29% of its earnings.
Image Source: Zacks Investment Research
Further, the company is forecasted to continue its steady growth, with estimates calling for 12% earnings growth in its current fiscal year and a further 22% in FY24. Revenue growth is apparent also, expected to climb 12.6% in FY23 and 6.4% in FY24.
Image Source: Zacks Investment Research
Broadcom
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices. The company has enjoyed favorable earnings estimate revisions across the board as of late, indicating optimism among analysts.
Image Source: Zacks Investment Research
Similar to UNH, Broadcom has consistently grown its dividend payout, boasting an impressive 20% five-year annualized dividend growth rate. Shares currently yield 2.1% annually, more than double the Zacks Computer and Technology sector average.
Image Source: Zacks Investment Research
And to top it off, the company has been a big-time earnings performer, exceeding earnings and revenue expectations in each of its last ten quarters. Just in its latest release, AVGO penciled in a 2% EPS beat and reported revenue modestly above expectations.
Bottom Line
When scouting potential portfolio additions, free cash flow is undoubtedly a metric worth serious attention.
A company displaying free cash flow strength has freedom for growth opportunities, can consistently shell out dividends, and wipe out debt easily.
And all three companies above – Apple AAPL, UnitedHealth UNH, and Broadcom AVGO – generate substantial cash.
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Apple Inc. (AAPL) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For those interested in cash-generating machines, three companies – Apple AAPL, UnitedHealth UNH, and Broadcom AVGO – all fit the criteria. Still, investors have had little issue forking up the premium given the company’s favorable standing, with AAPL shares up more than 40% year-to-date. And all three companies above – Apple AAPL, UnitedHealth UNH, and Broadcom AVGO – generate substantial cash.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. For those interested in cash-generating machines, three companies – Apple AAPL, UnitedHealth UNH, and Broadcom AVGO – all fit the criteria. Still, investors have had little issue forking up the premium given the company’s favorable standing, with AAPL shares up more than 40% year-to-date.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. For those interested in cash-generating machines, three companies – Apple AAPL, UnitedHealth UNH, and Broadcom AVGO – all fit the criteria. Still, investors have had little issue forking up the premium given the company’s favorable standing, with AAPL shares up more than 40% year-to-date.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. For those interested in cash-generating machines, three companies – Apple AAPL, UnitedHealth UNH, and Broadcom AVGO – all fit the criteria. Still, investors have had little issue forking up the premium given the company’s favorable standing, with AAPL shares up more than 40% year-to-date.
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15122.0
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2023-06-29 00:00:00 UTC
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After Hours Most Active for Jun 29, 2023 : PCG, TLT, AAPL, OTLY, MU, GOOGL, VZ, ABST, NKE, AMC, LNC, CARR
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jun-29-2023-%3A-pcg-tlt-aapl-otly-mu-googl-vz-abst-nke-amc-lnc
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 2.62 to 14,942.57. The total After hours volume is currently 71,853,032 shares traded.
The following are the most active stocks for the after hours session:
Pacific Gas & Electric Co. (PCG) is unchanged at $17.07, with 5,215,437 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
iShares 20+ Year Treasury Bond ETF (TLT) is +0.14 at $101.88, with 2,977,248 shares traded. This represents a 10.92% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.52 at $190.11, with 2,804,488 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Oatly Group AB (OTLY) is -0.03 at $2.01, with 2,374,385 shares traded. As reported in the last short interest update the days to cover for OTLY is 7.191304; this calculation is based on the average trading volume of the stock.
Micron Technology, Inc. (MU) is -0.05 at $64.28, with 2,114,863 shares traded. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
Alphabet Inc. (GOOGL) is -0.06 at $119.04, with 1,930,542 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Verizon Communications Inc. (VZ) is unchanged at $36.99, with 1,922,140 shares traded. VZ's current last sale is 89.13% of the target price of $41.5.
Absolute Software Corporation (ABST) is -0.0237 at $11.41, with 1,894,957 shares traded. ABST's current last sale is 99.19% of the target price of $11.5.
Nike, Inc. (NKE) is -0.27 at $113.10, with 1,365,182 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending May 2023. The consensus EPS forecast is $0.67. As reported by Zacks, the current mean recommendation for NKE is in the "buy range".
AMC Entertainment Holdings, Inc. (AMC) is -0.03 at $4.39, with 1,316,867 shares traded. AMC's current last sale is 243.89% of the target price of $1.8.
Lincoln National Corporation (LNC) is unchanged at $25.49, with 1,102,093 shares traded. LNC's current last sale is 106.21% of the target price of $24.
Carrier Global Corporation (CARR) is unchanged at $49.49, with 1,055,273 shares traded. CARR's current last sale is 99.98% of the target price of $49.5.
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 +0.52 at $190.11, with 2,804,488 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 20+ Year Treasury Bond ETF (TLT) is +0.14 at $101.88, with 2,977,248 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 +0.52 at $190.11, with 2,804,488 shares traded. The total After hours volume is currently 71,853,032 shares traded.
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Apple Inc. (AAPL) is +0.52 at $190.11, with 2,804,488 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 71,853,032 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 +0.52 at $190.11, with 2,804,488 shares traded. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
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15123.0
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2023-06-29 00:00:00 UTC
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GRAPHIC-What could break as interest rates rise?
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AAPL
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https://www.nasdaq.com/articles/graphic-what-could-break-as-interest-rates-rise-0
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nan
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nan
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Repeats story published on Thursday with no change to text
LONDON, June 29 (Reuters) - Markets are on the alert to which sectors will buckle under the sharpest jump in interest rates in decades, with big rate moves this month in Britain and Norway a reminder that the tightening is not over.
Central banks may need longer to lower inflation and a fresh bout of financial turbulence could make the process even more protracted, the International Monetary Fund warns.
Stability has returned since March's banks turmoil, but warning lights are flashing elsewhere and tensions in Russia provide another possible trigger for stress.
Here is a look at some of the pressure points.
1/ REAL ESTATE: PART 1
Just as hopes for an end to Federal Reserve rate hikes boost the U.S. housing market, European residential property is suffering under rate hikes.
UK rates have jumped to 5% from 0.25% two years ago and 2.4 million homeowners will roll off cheap fixed rate mortgages onto much higher rates by end-2024, banking trade body UK Finance estimates.
Sweden, where rates rose again on Thursday, is one to watch with most homeowners' mortgages moving in lockstep with rates.
London Business School economics professor Richard Portes said, euro zone housing markets appear to be "freezing up" as transactions and prices fall. "You can expect worse in 2024 when the full effects of rate hikes come forth," he said.
2/ REAL ESTATE: PART 2
"The single most important thing is interest rates. But not just interest rates; what it is equally important is the predictability of rates," said Thomas Mundy, EMEA head of capital markets strategy at real estate firm JLL.
"If we were settled on an interest rate, real estate prices could adjust. But at the moment, the lag in the adjustment to real estate pricing is creating an uncertain environment."
In Sweden, high debts, rising rates and a wilting economy has produced a toxic cocktail for commercial property.
And HSBC's decision to leave London's Canary Wharf for a smaller office in the City highlights an office downsizing trend rocking commercial real estate markets.
3/ BANK ASSETS
Banks remain in focus as credit conditions tighten.
"There is no place to hide from these tighter financial conditions. Banks feel the pressure of every central bank," said Lombard Odier Investment Managers' head of macro Florian Ielpo.
Banks hold two types of balance sheet assets: those meant for liquidity and those that work like savings meant to earn additional value. Rising rates have pushed many of these assets 10%-15% lower than their purchase price, Ielpo said. Should banks need to sell them, unrealised losses would emerge.
Most at risk are banks' real estate assets. Federal Reserve chief Jerome Powell says the Fed is monitoring banks "very carefully" to address potential vulnerabilities.
Lending standards for the average household are also a concern. Ielpo expects consumers will stop paying loan payments in the third and fourth quarters.
"This will be the Achilles heel of the banking sector," he added.
4/ DEFAULT
Rising rates are taking a toll on corporates as the cost of their debt balloons.
S&P expects default rates for European sub-investment grade companies to rise to 3.6% in March 2024 from 2.8% this March.
Markus Allenspach, head of fixed income research at Julius Baer, notes there were as many defaults globally in the first five months of 2023 as there were during 2022.
French retailer Casino is in debt restructuring talks with its creditors. Sweden's SBB has been fighting for survival since its shares plunged in May on concern over its financial position.
"We are starting to see distress building up in the corporate space, especially at the low end where you have most floating rate debt," said S&P Global Ratings' Nick Kraemer.
5/ RUSSIA AFTER WAGER MUTINY
The Wagner mutiny, the gravest threat to Russia's Vladimir Putin's rule to date, might have been aborted, but will long reverberate. Any changes to Russia's standing - or to the momentum behind the war in Ukraine - could be felt near and far.
There's the immediate fallout for commodity markets from crude oil to grains, the most sensitive to domestic changes in Russia. And knock on effects, from inflation pressures to risk aversion in case of a major escalation, could have far reaching consequences for countries and corporates already feeling the heat from rising rates.
"Putin can no longer claim to be the guarantor of Russian stability and you don't get that kind of fragmentation and challenges to the system in a stable and popular regime," said Tina Fordham, geopolitical strategist and founder of Fordham Global Foresight.
Banking sector price to earnings ratio https://tmsnrt.rs/3PA8T3L
The race to raise rates https://tmsnrt.rs/444CQ08
Growing strains on the European housing market https://tmsnrt.rs/3NcHAdb
UK real estate sector's woes https://tmsnrt.rs/3pvWB1J
S&P estimates corporate default rate to rise by 2024 https://tmsnrt.rs/3NTa90L
Russia fallout https://tmsnrt.rs/3JCwgGh
(Reporting by Chiara Elisei, Naomi Rovnick, Nell Mackenzie and Karin Strohecker, Graphics by Vincent Flasseur, Kripa Jayaram, Sumanta Sen and Pasit Kongkunakornkul, Editing by Dhara Ranasinghe and Alison Williams)
((Chiara.Elisei@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.
|
Central banks may need longer to lower inflation and a fresh bout of financial turbulence could make the process even more protracted, the International Monetary Fund warns. London Business School economics professor Richard Portes said, euro zone housing markets appear to be "freezing up" as transactions and prices fall. And knock on effects, from inflation pressures to risk aversion in case of a major escalation, could have far reaching consequences for countries and corporates already feeling the heat from rising rates.
|
Just as hopes for an end to Federal Reserve rate hikes boost the U.S. housing market, European residential property is suffering under rate hikes. "If we were settled on an interest rate, real estate prices could adjust. Banking sector price to earnings ratio https://tmsnrt.rs/3PA8T3L The race to raise rates https://tmsnrt.rs/444CQ08 Growing strains on the European housing market https://tmsnrt.rs/3NcHAdb UK real estate sector's woes https://tmsnrt.rs/3pvWB1J S&P estimates corporate default rate to rise by 2024 https://tmsnrt.rs/3NTa90L Russia fallout https://tmsnrt.rs/3JCwgGh (Reporting by Chiara Elisei, Naomi Rovnick, Nell Mackenzie and Karin Strohecker, Graphics by Vincent Flasseur, Kripa Jayaram, Sumanta Sen and Pasit Kongkunakornkul, Editing by Dhara Ranasinghe and Alison Williams) ((Chiara.Elisei@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.
|
UK rates have jumped to 5% from 0.25% two years ago and 2.4 million homeowners will roll off cheap fixed rate mortgages onto much higher rates by end-2024, banking trade body UK Finance estimates. But not just interest rates; what it is equally important is the predictability of rates," said Thomas Mundy, EMEA head of capital markets strategy at real estate firm JLL. Banking sector price to earnings ratio https://tmsnrt.rs/3PA8T3L The race to raise rates https://tmsnrt.rs/444CQ08 Growing strains on the European housing market https://tmsnrt.rs/3NcHAdb UK real estate sector's woes https://tmsnrt.rs/3pvWB1J S&P estimates corporate default rate to rise by 2024 https://tmsnrt.rs/3NTa90L Russia fallout https://tmsnrt.rs/3JCwgGh (Reporting by Chiara Elisei, Naomi Rovnick, Nell Mackenzie and Karin Strohecker, Graphics by Vincent Flasseur, Kripa Jayaram, Sumanta Sen and Pasit Kongkunakornkul, Editing by Dhara Ranasinghe and Alison Williams) ((Chiara.Elisei@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.
|
"You can expect worse in 2024 when the full effects of rate hikes come forth," he said. "If we were settled on an interest rate, real estate prices could adjust. Most at risk are banks' real estate assets.
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15124.0
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2023-06-29 00:00:00 UTC
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Apple seeks to fend off EU antitrust charge triggered by Spotify at hearing
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AAPL
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https://www.nasdaq.com/articles/apple-seeks-to-fend-off-eu-antitrust-charge-triggered-by-spotify-at-hearing-0
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nan
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nan
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By Foo Yun Chee
BRUSSELS, June 29 (Reuters) - Apple AAPL.O will on Friday seek to fend off a revised EU antitrust charge and possible hefty fine linked to claims it prevents music streaming companies such as Spotify SPOT.N from informing users of other buying options outside its App Store.
The iPhone maker will set out its arguments to senior European Commission officials and their peers at national competition agencies at a closed hearing in Brussels.
EU antitrust enforcers earlier this year boosted their case against the company's so-called anti-steering obligations, but dropped an earlier charge against Apple's requirement that developers use its in-app payment system.
The Commission said the anti-steering obligations breach EU rules against unfair trading conditions, a relatively novel legal argument in an antitrust case.
Apple has said there is no merit in the case triggered by a Spotify complaint in 2019, pointing to the Swedish music streaming service's dominant market share in Europe, where Apple Music trails in third or fourth place in most EU countries.
Its other argument is that it has revised rules to allow reader apps such as Spotify and Netflix to include links to their website for sign-ups and user payments, allowing app developers to bypass its controversial 30% App Store fee.
Reader apps provide content such as e-books, video and music requiring payment at sign-up.
Spotify, which will also attend the hearing, has rejected Apple's updated anti-steering rules, saying nothing has changed at all. It has urged a speedy decision from the Commission.
The EU executive said it never comments on possible oral hearings or on their date.
(Reporting by Foo Yun Chee; Editing by Jan Harvey and David Evans)
((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.
|
By Foo Yun Chee BRUSSELS, June 29 (Reuters) - Apple AAPL.O will on Friday seek to fend off a revised EU antitrust charge and possible hefty fine linked to claims it prevents music streaming companies such as Spotify SPOT.N from informing users of other buying options outside its App Store. The iPhone maker will set out its arguments to senior European Commission officials and their peers at national competition agencies at a closed hearing in Brussels. The Commission said the anti-steering obligations breach EU rules against unfair trading conditions, a relatively novel legal argument in an antitrust case.
|
By Foo Yun Chee BRUSSELS, June 29 (Reuters) - Apple AAPL.O will on Friday seek to fend off a revised EU antitrust charge and possible hefty fine linked to claims it prevents music streaming companies such as Spotify SPOT.N from informing users of other buying options outside its App Store. EU antitrust enforcers earlier this year boosted their case against the company's so-called anti-steering obligations, but dropped an earlier charge against Apple's requirement that developers use its in-app payment system. Its other argument is that it has revised rules to allow reader apps such as Spotify and Netflix to include links to their website for sign-ups and user payments, allowing app developers to bypass its controversial 30% App Store fee.
|
By Foo Yun Chee BRUSSELS, June 29 (Reuters) - Apple AAPL.O will on Friday seek to fend off a revised EU antitrust charge and possible hefty fine linked to claims it prevents music streaming companies such as Spotify SPOT.N from informing users of other buying options outside its App Store. Apple has said there is no merit in the case triggered by a Spotify complaint in 2019, pointing to the Swedish music streaming service's dominant market share in Europe, where Apple Music trails in third or fourth place in most EU countries. Its other argument is that it has revised rules to allow reader apps such as Spotify and Netflix to include links to their website for sign-ups and user payments, allowing app developers to bypass its controversial 30% App Store fee.
|
By Foo Yun Chee BRUSSELS, June 29 (Reuters) - Apple AAPL.O will on Friday seek to fend off a revised EU antitrust charge and possible hefty fine linked to claims it prevents music streaming companies such as Spotify SPOT.N from informing users of other buying options outside its App Store. The Commission said the anti-steering obligations breach EU rules against unfair trading conditions, a relatively novel legal argument in an antitrust case. Its other argument is that it has revised rules to allow reader apps such as Spotify and Netflix to include links to their website for sign-ups and user payments, allowing app developers to bypass its controversial 30% App Store fee.
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15125.0
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2023-06-29 00:00:00 UTC
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GRAPHIC-What could break as interest rates rise?
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AAPL
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https://www.nasdaq.com/articles/graphic-what-could-break-as-interest-rates-rise
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nan
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nan
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LONDON, June 29 (Reuters) - Markets are on the alert to
which sectors will buckle under the sharpest jump in interest
rates in decades, with big rate moves this month in Britain and
Norway a reminder that the tightening is not over.
Central banks may need longer to lower inflation and a fresh
bout of financial turbulence could make the process even more
protracted, the International Monetary Fund warns.
Stability has returned since March's banks turmoil, but
warning lights are flashing elsewhere and tensions in Russia
provide another possible trigger for stress.
Here is a look at some of the pressure points.
1/ REAL ESTATE: PART 1
Just as hopes for an end to Federal Reserve rate hikes boost
the U.S. housing market, European residential property is
suffering under rate hikes.
UK rates have jumped to 5% from 0.25% two years ago and 2.4
million homeowners will roll off cheap fixed rate mortgages onto
much higher rates by end-2024, banking trade body UK Finance
estimates.
Sweden, where rates rose again on Thursday, is one to watch
with most homeowners' mortgages moving in lockstep with rates.
London Business School economics professor Richard Portes
said, euro zone housing markets appear to be "freezing up" as
transactions and prices fall. "You can expect worse in 2024 when
the full effects of rate hikes come forth," he said.
2/ REAL ESTATE: PART 2
Having taken advantage of the low rates era to borrow
aplenty and buy up property assets, the commercial real estate
sector is grappling with higher debt refinancing costs as rates
rise.
"The single most important thing is interest rates. But not
just interest rates; what it is equally important is the
predictability of rates," said Thomas Mundy, EMEA head of
capital markets strategy at real estate firm JLL.
"If we were settled on an interest rate, real estate prices
could adjust. But at the moment, the lag in the adjustment to
real estate pricing is creating an uncertain environment."
In Sweden, high debts, rising rates and a wilting economy
has produced a toxic cocktail for commercial property.
And HSBC's decision to leave London's Canary Wharf for a
smaller office in the City highlights an office downsizing trend
rocking commercial real estate markets.
3/ BANK ASSETS
Banks remain in focus as credit conditions tighten.
"There is no place to hide from these tighter financial
conditions. Banks feel the pressure of every central bank,"
said Lombard Odier Investment Managers' head of macro Florian
Ielpo.
Banks hold two types of balance sheet assets: those meant
for liquidity and those that work like savings meant to earn
additional value. Rising rates have pushed many of these assets
10%-15% lower than their purchase price, Ielpo said. Should
banks need to sell them, unrealised losses would emerge.
Most at risk are banks' real estate assets. Federal Reserve
chief Jerome Powell says the Fed is monitoring banks "very
carefully" to address potential vulnerabilities.
Lending standards for the average household are also a
concern. Ielpo expects consumers will stop paying loan payments
in the third and fourth quarters.
"This will be the Achilles heel of the banking sector," he
added.
4/ DEFAULT
Rising rates are taking a toll on corporates as the cost of
their debt balloons.
S&P expects default rates for European sub-investment grade
companies to rise to 3.6% in March 2024 from 2.8% this March.
Markus Allenspach, head of fixed income research at Julius
Baer, notes there were as many defaults globally in the first
five months of 2023 as there were during 2022.
French retailer Casino is in debt restructuring talks with
its creditors. Sweden's SBB has been fighting for survival since
its shares plunged in May on concern over its financial
position.
"We are starting to see distress building up in the
corporate space, especially at the low end where you have most
floating rate debt," said S&P Global Ratings' Nick Kraemer.
5/ RUSSIA AFTER WAGER MUTINY
The Wagner mutiny, the gravest threat to Russia's Vladimir
Putin's rule to date, might have been aborted, but will long
reverberate. Any changes to Russia's standing - or to the
momentum behind the war in Ukraine - could be felt near and far.
There's the immediate fallout for commodity markets from
crude oil to grains, the most sensitive to domestic changes in
Russia. And knock on effects, from inflation pressures to risk
aversion in case of a major escalation, could have far reaching
consequences for countries and corporates already feeling the
heat from rising rates.
"Putin can no longer claim to be the guarantor of Russian
stability and you don't get that kind of fragmentation and
challenges to the system in a stable and popular regime," said
Tina Fordham, geopolitical strategist and founder of Fordham
Global Foresight.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Banking sector price to earnings ratio https://tmsnrt.rs/3PA8T3L
The race to raise rates https://tmsnrt.rs/444CQ08
Growing strains on the European housing market https://tmsnrt.rs/3NcHAdb
UK real estate sector's woes https://tmsnrt.rs/3pvWB1J
S&P estimates corporate default rate to rise by 2024 https://tmsnrt.rs/3NTa90L
Russia fallout https://tmsnrt.rs/3JCwgGh
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Chiara Elisei, Naomi Rovnick, Nell Mackenzie and
Karin Strohecker, Graphics by Vincent Flasseur, Kripa Jayaram,
Sumanta Sen and Pasit Kongkunakornkul, Editing by Dhara
Ranasinghe and Alison Williams)
((Chiara.Elisei@thomsonreuters.com;))
Keywords: GLOBAL MARKETS/STRESS POINTS (GRAPHIC, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Central banks may need longer to lower inflation and a fresh bout of financial turbulence could make the process even more protracted, the International Monetary Fund warns. London Business School economics professor Richard Portes said, euro zone housing markets appear to be "freezing up" as transactions and prices fall. And knock on effects, from inflation pressures to risk aversion in case of a major escalation, could have far reaching consequences for countries and corporates already feeling the heat from rising rates.
|
Just as hopes for an end to Federal Reserve rate hikes boost the U.S. housing market, European residential property is suffering under rate hikes. Having taken advantage of the low rates era to borrow aplenty and buy up property assets, the commercial real estate sector is grappling with higher debt refinancing costs as rates rise. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Banking sector price to earnings ratio https://tmsnrt.rs/3PA8T3L The race to raise rates https://tmsnrt.rs/444CQ08 Growing strains on the European housing market https://tmsnrt.rs/3NcHAdb UK real estate sector's woes https://tmsnrt.rs/3pvWB1J S&P estimates corporate default rate to rise by 2024 https://tmsnrt.rs/3NTa90L Russia fallout https://tmsnrt.rs/3JCwgGh ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Chiara Elisei, Naomi Rovnick, Nell Mackenzie and Karin Strohecker, Graphics by Vincent Flasseur, Kripa Jayaram, Sumanta Sen and Pasit Kongkunakornkul, Editing by Dhara Ranasinghe and Alison Williams) ((Chiara.Elisei@thomsonreuters.com;))
|
UK rates have jumped to 5% from 0.25% two years ago and 2.4 million homeowners will roll off cheap fixed rate mortgages onto much higher rates by end-2024, banking trade body UK Finance estimates. Having taken advantage of the low rates era to borrow aplenty and buy up property assets, the commercial real estate sector is grappling with higher debt refinancing costs as rates rise. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Banking sector price to earnings ratio https://tmsnrt.rs/3PA8T3L The race to raise rates https://tmsnrt.rs/444CQ08 Growing strains on the European housing market https://tmsnrt.rs/3NcHAdb UK real estate sector's woes https://tmsnrt.rs/3pvWB1J S&P estimates corporate default rate to rise by 2024 https://tmsnrt.rs/3NTa90L Russia fallout https://tmsnrt.rs/3JCwgGh ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Chiara Elisei, Naomi Rovnick, Nell Mackenzie and Karin Strohecker, Graphics by Vincent Flasseur, Kripa Jayaram, Sumanta Sen and Pasit Kongkunakornkul, Editing by Dhara Ranasinghe and Alison Williams) ((Chiara.Elisei@thomsonreuters.com;))
|
"You can expect worse in 2024 when the full effects of rate hikes come forth," he said. "If we were settled on an interest rate, real estate prices could adjust. Most at risk are banks' real estate assets.
|
15126.0
|
2023-06-29 00:00:00 UTC
|
GLOBAL MARKETS-Stocks in the summer swing, yen bows to dollar
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-in-the-summer-swing-yen-bows-to-dollar
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nan
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nan
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By Marc Jones
LONDON, June 29 (Reuters) - World shares and the dollar inched higher while gold hit a three-month low on Thursday as focus flipped between the battle to lower inflation, the health of the U.S. economy and banks, and possible currency market intervention in China and Japan.
'Big Tech' added to its rampant 70% rally this year overnight and Europe's STOXX 600 index .STOXX was making gains too .EU.N as bumper profits from fashion giant H&M's summer collection lifted its shares 16.5% HMb.ST.
It all tied in with the multi-trillion dollar question economists are struggling with. Where is stubbornly high inflation heading?
Spain reported its annual inflation rate had dropped to 1.9% in June, its lowest since March 2021. Equivalent numbers from Europe's biggest economy, Germany, though were stronger again, coming too as the world’s top central bankers decamped from an ECB-hosted get-together near Lisbon.
"We are entering a delicate phase for monetary policy given the lags," S&P's Global Chief Economist Paul Gruenwald said as the firm predicted a further rise in default rates in many parts of the world.
"If inflation remains sticky, rates will need to go higher. But if central banks have overtightened, growth will slow sharply."
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS had fallen 0.5% with holidays in Singapore, India and Malaysia making for thinner trading.
Chinese blue chips .CSI300 fell 0.5% and Hong Kong's Hang Seng index .HSI slumped 1.2%. Japan's Nikkei .N225, gave up most of its early gains to end up a modest 0.1%. .T
Most of the focus though remained on the region's two biggest currencies, Japan's yen and China's yuan, which have both been under intense pressure in recent weeks.
The yuan CNY=CFXS eased to 7.2491 per dollar, just a whisker away from its eight-month trough hit a day ago. That was despite another stronger-than-expected official rate from the People's Bank of China, which investors read as Beijing trying to steady the yuan.
The yen, meanwhile, touched a more than seven-month low versus the dollar. The dollar's surge of more than 11% against the yen since late March has seen it reach 144.71 yen JPY=EBS and prompted increased warnings from Japanese government officials this week about the speed of the move.
The Bank of Japan intervened in the currency market last autumn when the dollar strengthened beyond 145 yen. It was at 144.24 in European trading.
"The playbook of verbal intervention is consistent with intervention happening soon and if it gets above 145 we could quite easily get to see them intervene again," said ING global head of markets Chris Turner.
Shane Oliver, chief economist at AMP in Sydney, said though that China might not mind its currency falling a bit further because it helps support its giant export sector.
"But they probably don't want it to fall too rapidly because then it looks a bit like a panic," he added.
GERMAN ANGST
Overnight, U.S. share markets had ended broadly flat although the high-flying Nasdaq .IXIC had managed another small gain as Apple AAPL.O closed at a fresh record high.
Federal Reserve Chair Jerome Powell had said in Portugal that U.S. interest rates are likely to rise further and did not rule out a July hike. Notably, he said he did not see inflation abating to the 2% target until 2025.
In the bond markets, U.S. and European yields - a proxy for borrowing costs - were driving higher again.
In contrast to Spain's and Italy's softer data, German consumer prices, harmonised to compare with other European Union countries, rose by a more-than-anticipated 6.8% year-on-year.
Alongside the upward revision in U.S. Q1 GDP, Thursday's U.S. data also saw an unexpected drop in the number of Americans filing new claims for unemployment benefits, a sign of continued strength in the jobs market.
Futures see about an 80% chance the Fed will raise interest rates by 25 basis points in July, before holding rates steady for the remainder of the year. FEDWATCH
European Central Bank President Christine Lagarde had cemented expectations for a ninth consecutive rise in euro zone rates in July on Wednesday and markets have all but priced in two more rate hikes from the ECB this year.
By contrast, Bank of Japan (BOJ) Governor Kazuo Ueda had reiterated that "there's still some distance to go" in sustainably achieving 2% inflation, the conditions the BOJ has set for considering an exit from ultra-easy stimulus.
Investors are now awaiting the U.S. PCE index on Friday, the Fed's favoured inflation gauge. Analysts polled by Reuters expect the core rate to be 4.7% on a year-over-year basis, still well above the Fed's 2% target.
"Markets seem stuck in a holding pattern, watching in awe the inconsistencies between risk sentiment, yield curves, data surprises and inflation," said Mark McCormick, global head of FX and EM Strategy at TD Securities.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Additional reporting by Stella Qiu in Sydney; Editing by Christina Fincher and Susan Fenton)
((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Overnight, U.S. share markets had ended broadly flat although the high-flying Nasdaq .IXIC had managed another small gain as Apple AAPL.O closed at a fresh record high. By Marc Jones LONDON, June 29 (Reuters) - World shares and the dollar inched higher while gold hit a three-month low on Thursday as focus flipped between the battle to lower inflation, the health of the U.S. economy and banks, and possible currency market intervention in China and Japan. 'Big Tech' added to its rampant 70% rally this year overnight and Europe's STOXX 600 index .STOXX was making gains too .EU.N as bumper profits from fashion giant H&M's summer collection lifted its shares 16.5% HMb.ST.
|
Overnight, U.S. share markets had ended broadly flat although the high-flying Nasdaq .IXIC had managed another small gain as Apple AAPL.O closed at a fresh record high. By Marc Jones LONDON, June 29 (Reuters) - World shares and the dollar inched higher while gold hit a three-month low on Thursday as focus flipped between the battle to lower inflation, the health of the U.S. economy and banks, and possible currency market intervention in China and Japan. .T Most of the focus though remained on the region's two biggest currencies, Japan's yen and China's yuan, which have both been under intense pressure in recent weeks.
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Overnight, U.S. share markets had ended broadly flat although the high-flying Nasdaq .IXIC had managed another small gain as Apple AAPL.O closed at a fresh record high. By Marc Jones LONDON, June 29 (Reuters) - World shares and the dollar inched higher while gold hit a three-month low on Thursday as focus flipped between the battle to lower inflation, the health of the U.S. economy and banks, and possible currency market intervention in China and Japan. The Bank of Japan intervened in the currency market last autumn when the dollar strengthened beyond 145 yen.
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Overnight, U.S. share markets had ended broadly flat although the high-flying Nasdaq .IXIC had managed another small gain as Apple AAPL.O closed at a fresh record high. "If inflation remains sticky, rates will need to go higher. It was at 144.24 in European trading.
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15127.0
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2023-06-29 00:00:00 UTC
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US STOCKS-Wall St set to rise as banks gain, economic data eases recession fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-rise-as-banks-gain-economic-data-eases-recession-fears
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nan
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nan
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By Sruthi Shankar and Johann M Cherian
June 29 (Reuters) - Wall Street was set to open higher on Thursday, as bank stocks rose after major lenders cleared the Federal Reserve's annual stress test, while economic data pointed to a resilient U.S. economy in the face of aggressive interest rate hikes.
Shares of Bank of America BAC.N, JPMorgan Chase JPM.N, Goldman Sachs GS.N and Wells Fargo WFC.N rose between 1.5% and 1.9% in premarket trading after the banks sailed through the Fed's annual health check, which showed they have enough capital to weather a severe economic slump.
Bank of New York Mellon BK.N and Charles Schwab SCHW.K rose 1.9% and 2.4%, respectively.
"The market is getting a sense of relief because the tests are critical. The banks passing with flying colors in what would be near depression conditions tells us that the fears regarding banks were probably exaggerated," said Thomas Hayes, chairman at Great Hill Capital.
The S&P 500 and Dow closed lower on Wednesday after Fed Chair Jerome Powell said he did not see inflation falling to the central bank's target rate "this year or next year" and that most of the policymakers expect the Fed will need to raise interest rates at least twice by the year's end.
Meanwhile, data showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, which indicated labor market strength.
A separate report showed the U.S. gross domestic product increased at a 2.0% annualized rate in the first quarter, up from the 1.3% pace reported previously.
Following the hawkish views and data, traders were pricing in an 84.3% chance the Fed would hike interest rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CME Group's Fedwatch tool, up from 74.4% a week earlier.
"Economic data continues to beat on most fronts and it's hard to see a scenario where one or two hikes would derail the economy. But the odds of the hikes are much less than Powell is projecting so tech stocks are benefiting," said Great Hill Capital's Hayes.
Apple AAPL.O inched 0.2% higher after closing at a record high on Thursday and edging closer to a $3 trillion market capitalization.
Shares of other high-growth companies such as Tesla TSLA.O and Nvidia NVDA.O rose more than 1% each.
The Personal Consumption Expenditure index (PCE), the Fed's preferred inflation gauge, for May will be released on Friday. Economists polled by Reuters expect core rates to remain steady at 4.7%.
At 8:43 a.m. ET, Dow e-minis 1YMcv1 were up 118 points, or 0.35%, S&P 500 e-minis EScv1 were up 11.25 points, or 0.25%, and Nasdaq 100 e-minis NQcv1 were up 32 points, or 0.21%.
Micron Technology MU.O rose 2.4% after the chipmaker beat estimates for third-quarter results, powered by demand for its memory chips.
Occidental Petroleum OXY.N advanced 1.3% after Berkshire Hathaway Inc BRKa.N said it added more shares of the oil firm, boosting its stake to above 25%.
(Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru; Editing by Shinjini Ganguli)
((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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Apple AAPL.O inched 0.2% higher after closing at a record high on Thursday and edging closer to a $3 trillion market capitalization. By Sruthi Shankar and Johann M Cherian June 29 (Reuters) - Wall Street was set to open higher on Thursday, as bank stocks rose after major lenders cleared the Federal Reserve's annual stress test, while economic data pointed to a resilient U.S. economy in the face of aggressive interest rate hikes. Meanwhile, data showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, which indicated labor market strength.
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Apple AAPL.O inched 0.2% higher after closing at a record high on Thursday and edging closer to a $3 trillion market capitalization. By Sruthi Shankar and Johann M Cherian June 29 (Reuters) - Wall Street was set to open higher on Thursday, as bank stocks rose after major lenders cleared the Federal Reserve's annual stress test, while economic data pointed to a resilient U.S. economy in the face of aggressive interest rate hikes. But the odds of the hikes are much less than Powell is projecting so tech stocks are benefiting," said Great Hill Capital's Hayes.
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Apple AAPL.O inched 0.2% higher after closing at a record high on Thursday and edging closer to a $3 trillion market capitalization. By Sruthi Shankar and Johann M Cherian June 29 (Reuters) - Wall Street was set to open higher on Thursday, as bank stocks rose after major lenders cleared the Federal Reserve's annual stress test, while economic data pointed to a resilient U.S. economy in the face of aggressive interest rate hikes. Shares of Bank of America BAC.N, JPMorgan Chase JPM.N, Goldman Sachs GS.N and Wells Fargo WFC.N rose between 1.5% and 1.9% in premarket trading after the banks sailed through the Fed's annual health check, which showed they have enough capital to weather a severe economic slump.
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Apple AAPL.O inched 0.2% higher after closing at a record high on Thursday and edging closer to a $3 trillion market capitalization. By Sruthi Shankar and Johann M Cherian June 29 (Reuters) - Wall Street was set to open higher on Thursday, as bank stocks rose after major lenders cleared the Federal Reserve's annual stress test, while economic data pointed to a resilient U.S. economy in the face of aggressive interest rate hikes. Shares of Bank of America BAC.N, JPMorgan Chase JPM.N, Goldman Sachs GS.N and Wells Fargo WFC.N rose between 1.5% and 1.9% in premarket trading after the banks sailed through the Fed's annual health check, which showed they have enough capital to weather a severe economic slump.
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15128.0
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2023-06-29 00:00:00 UTC
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2 Cruise Stocks Boosting the S&P 500 Rally in 1H 2023
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AAPL
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https://www.nasdaq.com/articles/2-cruise-stocks-boosting-the-sp-500-rally-in-1h-2023
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nan
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nan
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Astute investors and market pundits were expecting the stock market returns to take a beating this year primarily due to the Federal Reserve’s aggressive monetary tightening measures to tackle stubbornly high inflation.
The consensus was that persistent interest rate hikes would lead to an economic slump, dragging stocks down. An array of regional bank failures had further heightened concerns about economic growth.
However, the economy is still chugging along, with the broader S&P 500 index well-poised to register its best half year in nearly two decades. This is because strength in the labor market overshadowed all kinds of headwinds, including the debt ceiling crisis.
But it’s also true that big techs dominated the S&P 500’s rally for most of the year, thanks to the unprecedented progress in the field of artificial intelligence (AI).
Driven by the AI frenzy, some of the notable S&P 500-listed tech titans such as NVIDIA Corporation NVDA, Tesla Inc TSLA, Amazon.com, Inc AMZN and Apple Inc AAPL saw their shares soar 181.4%, 108%, 53.6% and 45.7%, individually, so far this year, while the S&P 500 Index surged 9.6% in the same period.
Image Source: Zacks Investment Research
Having said that, interestingly, two of the best-performing stocks listed on the S&P 500 have nothing to do with the AI boom, nor are they part of any revolutionary technologies such as self-driving cars. They are well-known for ferrying people across the globe on cruise ships.
These cruise line stocks are Royal Caribbean Cruises Ltd. RCL and Carnival Corporation & plc CCL, and their shares have surged 108.6% and 114.5%, respectively, in the year-to-date period.
Image Source: Zacks Investment Research
These cruise liners were among the hardest hit during the outbreak of the coronavirus that led to several travel restrictions. Their businesses became soft in the last two years, but with pent-up demand and travel curbs being lifted this year, Royal Caribbean and Carnival racked up solid gains. What’s more, their shares still trade below pre-pandemic levels, indicating more upside soon.
Thanks to an uptick in both onboard sales and tickets, Royal Caribbean’s revenues almost tripled in the first quarter of this year compared to the same period last year. The company swung from an operating loss to a profit in the first quarter and at present has high expectations for its full-year growth.
Royal Caribbean’s expected earnings growth rate for the current year is a whopping 162.9%. The company’s estimated earnings growth rate for next year is also a superb 44.9%.
Notably, the company’s projected revenue growth rates for the current and next years are 48.7% and 13.3%, respectively.
The Zacks Consensus Estimate for RCL’s current-year earnings has moved up 44.8% over the past 60 days. Royal Caribbean has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Similarly, Carnival saw its revenues jump during the first half of this year as passenger booking for upcoming trips skyrocketed. Carnival notched an operating profit during the first six months of this year, in contrast to the operating loss it booked over the same period in 2022.
Carnival’s expected earnings growth rate for the current year is a remarkable 94%. The company’s estimated earnings growth rate for the next year is also a staggering 407.1%.
At the same time, the company’s projected revenue growth rates for the current and next years are 72.7% and 10.1%, respectively.
The Zacks Consensus Estimate for CCL’s current-year earnings has moved up 3.5% over the past 60 days. Royal Caribbean has a Zacks Rank #3 (Hold).
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Driven by the AI frenzy, some of the notable S&P 500-listed tech titans such as NVIDIA Corporation NVDA, Tesla Inc TSLA, Amazon.com, Inc AMZN and Apple Inc AAPL saw their shares soar 181.4%, 108%, 53.6% and 45.7%, individually, so far this year, while the S&P 500 Index surged 9.6% in the same period. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Having said that, interestingly, two of the best-performing stocks listed on the S&P 500 have nothing to do with the AI boom, nor are they part of any revolutionary technologies such as self-driving cars.
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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 Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Driven by the AI frenzy, some of the notable S&P 500-listed tech titans such as NVIDIA Corporation NVDA, Tesla Inc TSLA, Amazon.com, Inc AMZN and Apple Inc AAPL saw their shares soar 181.4%, 108%, 53.6% and 45.7%, individually, so far this year, while the S&P 500 Index surged 9.6% in the same period. These cruise line stocks are Royal Caribbean Cruises Ltd. RCL and Carnival Corporation & plc CCL, and their shares have surged 108.6% and 114.5%, respectively, in the year-to-date period.
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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 Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Driven by the AI frenzy, some of the notable S&P 500-listed tech titans such as NVIDIA Corporation NVDA, Tesla Inc TSLA, Amazon.com, Inc AMZN and Apple Inc AAPL saw their shares soar 181.4%, 108%, 53.6% and 45.7%, individually, so far this year, while the S&P 500 Index surged 9.6% in the same period. Royal Caribbean’s expected earnings growth rate for the current year is a whopping 162.9%.
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Driven by the AI frenzy, some of the notable S&P 500-listed tech titans such as NVIDIA Corporation NVDA, Tesla Inc TSLA, Amazon.com, Inc AMZN and Apple Inc AAPL saw their shares soar 181.4%, 108%, 53.6% and 45.7%, individually, so far this year, while the S&P 500 Index surged 9.6% in the same period. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. These cruise line stocks are Royal Caribbean Cruises Ltd. RCL and Carnival Corporation & plc CCL, and their shares have surged 108.6% and 114.5%, respectively, in the year-to-date period.
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15129.0
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2023-06-29 00:00:00 UTC
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Google Was Just Downgraded, But This Could Be A Good Thing
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AAPL
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https://www.nasdaq.com/articles/google-was-just-downgraded-but-this-could-be-a-good-thing
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nan
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nan
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After watching their shares rally by more than 50% from last November, it must have been a kick in the teeth for Alphabet Inc (NASDAQ: GOOGL), better known as Google, to receive two downgrades this week. But that's exactly what came from the teams over at UBS and Bernstein. Not all hope is lost for this rally, however. Let's take a closer look at what the analysts said and see why this could end up being a good thing for Google shares.
The first downgrade came from UBS on Monday, with the team there focusing on the aforementioned rally but viewing it almost as a negative. In the context of further room for it to run, they expressed concerns about its growth potential as well as some near-term challenges in making money.
Analyst Lloyd Walmsley and his team adjusted their rating on Google shares from Buy to Neutral. He explained that he finds it hard to see big revenue growth for Google Sites, expecting it to be in the single-digit range. Walmsley also mentioned a potential risk to revenue in the medium term as new search features replace ad space with generative AI responses.
AI Concerns
In a note to investors, Walmsley noted that although worries about the cost of generative AI have eased, investors still have some short-term risks to consider. He highlighted that Google raised its spending plans in the last quarter and emphasized a preference for quicker-depreciating technical infrastructure. While Walmsley now sees the cost and competition as less severe, he still feels that some risk remains.
Then shortly after the bell rang to start yesterday's session, Google faced its second downgrade, this time from investment firm Bernstein. The team there echoed the concerns of UBS, saying the downgrade was primarily driven by the tech giant's 40% surge in stock value since November last year.
Mark Shmulik and his team revised their rating on Google shares from Outperform down to Market Perform, the equivalent of UBS' Buy to Neutral move. Shmulik raised similar concerns about Google's ambitious integration of generative AI into core search results, which could potentially result in a decline in search ad pricing, albeit a short-term one.
Considering A Position
That the advent of AI is considered to be a headwind to the stock will be a frustrating pill for Google investors to swallow. This will especially be the case given they get to watch the shares of tech peers like NVIDIA Corporation (NASDAQ: NVDA) or Apple Inc (NASDAQ: AAPL) reap the reward, and understandably, Google shares sold off through both Monday and Tuesday's sessions. However, we here at MarketBeat see this as a good thing, with a potentially solid entry point opening up.
Neither Shmulik nor Walmsley was bearish enough to downgrade Google shares to a full Sell rating, nor were they overly bearish on the stock's longer-term potential. In many ways, they're calling for some sideways action and for the stock to consolidate after the ripping run it's had, which mightn't be a bad thing for those of us thinking about getting involved.
There are few things more frustrating for an investor than chasing a stock higher with entries that never get filled. So if Google stock is going to trade sideways for a while, it gives us the opportunity to properly gauge where new support and resistance lines may be and work entries around there with more confidence of them being filled.
And the cherry on top? Even though they downgraded the stock, UBS still raised their price target on Google shares from $123 to $132. Sure, it came with the caveat that the risk-reward balance is more even now rather than being strongly in favor of significant gains, but it still points to a further upside of more than 10%. If that's to be expected from a stock that's set to take a breather, then any further weakness from these downgrades truly will become a great entry point for the long term.
The views and 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 will especially be the case given they get to watch the shares of tech peers like NVIDIA Corporation (NASDAQ: NVDA) or Apple Inc (NASDAQ: AAPL) reap the reward, and understandably, Google shares sold off through both Monday and Tuesday's sessions. Walmsley also mentioned a potential risk to revenue in the medium term as new search features replace ad space with generative AI responses. Mark Shmulik and his team revised their rating on Google shares from Outperform down to Market Perform, the equivalent of UBS' Buy to Neutral move.
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This will especially be the case given they get to watch the shares of tech peers like NVIDIA Corporation (NASDAQ: NVDA) or Apple Inc (NASDAQ: AAPL) reap the reward, and understandably, Google shares sold off through both Monday and Tuesday's sessions. Analyst Lloyd Walmsley and his team adjusted their rating on Google shares from Buy to Neutral. Shmulik raised similar concerns about Google's ambitious integration of generative AI into core search results, which could potentially result in a decline in search ad pricing, albeit a short-term one.
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This will especially be the case given they get to watch the shares of tech peers like NVIDIA Corporation (NASDAQ: NVDA) or Apple Inc (NASDAQ: AAPL) reap the reward, and understandably, Google shares sold off through both Monday and Tuesday's sessions. After watching their shares rally by more than 50% from last November, it must have been a kick in the teeth for Alphabet Inc (NASDAQ: GOOGL), better known as Google, to receive two downgrades this week. Neither Shmulik nor Walmsley was bearish enough to downgrade Google shares to a full Sell rating, nor were they overly bearish on the stock's longer-term potential.
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This will especially be the case given they get to watch the shares of tech peers like NVIDIA Corporation (NASDAQ: NVDA) or Apple Inc (NASDAQ: AAPL) reap the reward, and understandably, Google shares sold off through both Monday and Tuesday's sessions. The first downgrade came from UBS on Monday, with the team there focusing on the aforementioned rally but viewing it almost as a negative. AI Concerns In a note to investors, Walmsley noted that although worries about the cost of generative AI have eased, investors still have some short-term risks to consider.
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15130.0
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2023-06-29 00:00:00 UTC
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GLOBAL MARKETS-Stocks shrug off inflation angst, yen bows to dollar
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-shrug-off-inflation-angst-yen-bows-to-dollar
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nan
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nan
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By Marc Jones
LONDON, June 29 (Reuters) - World shares and the dollar inched higher and gold was at a three-month low on Thursday as traders' attention continued to swing between the battle to lower inflation and speculation about currency market intervention in China and Japan.
Europe's regional STOXX 600 index .STOXX barely budged in early trading after what had been its biggest rise in almost a month the previous day, while futures markets were pointing to a fractionally higher start on Wall Street later. .EU.N
Sweden had already kicked the day off with another interest rate hike, while one of its biggest firms and one of Europe's largest fashion retailers H&M saw its shares HMb.ST hit a 16-month high after forecast-beating results. .EU
It all tied in with the multi-trillion dollar question economists are struggling with. Where is stubbornly high inflation heading?
Spain reported its annual inflation rate had dropped to 1.9% in June, its lowest since March 2021. Equivalent numbers from Europe's biggest economy, Germany, are due out too while the world’s top central bankers were decamping from an ECB-hosted get-together near Lisbon.
"We are entering a delicate phase for monetary policy given the lags," S&P's Global Chief Economist Paul Gruenwald said as the firm predicted a further rise in default rates in many parts of the world.
"If inflation remains sticky, rates will need to go higher. But if central banks have overtightened, growth will slow sharply."
Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS had fallen 0.5% with holidays in Singapore, India and Malaysia making for thinner trading.
Chinese blue chips .CSI300 fell 0.3% and Hong Kong's Hang Seng index .HSI slumped 1.3%. Japan's Nikkei .N225, however, gave up earlier gains to be up 0.1%
Most of the focus remained on the region's two biggest currencies, Japan's yen and China's yuan, which have both been under intense pressure in recent weeks.
The yuan CNY=CFXS eased to 7.2491 per dollar, just a whisker away from its eight-month trough hit a day ago. That was despite another stronger-than-expected official rate from the People's Bank of China, which investors read as Beijing trying to steady the yuan.
Japan's yen, meanwhile, touched a more than seven-month low versus the dollar. The dollar's surge of more than 11% against the yen since late March has seen it reach 144.71 yen JPY=EBS and prompted increased warnings from Japanese government officials this week about the speed of the move.
The Bank of Japan intervened in the currency market last autumn when the dollar strengthened beyond 145 yen. It was at 144.24 in European trading.
"The playbook of verbal intervention is consistent with intervention happening soon and if it gets above 145 we could quite easily get to see them intervene again," said ING global head of markets Chris Turner.
Shane Oliver, chief economist at AMP in Sydney said though that China might not mind its currency falling a bit further because it helps support its giant export sector
"But they probably don't want it to fall too rapidly because then it looks a bit like a panic," he added.
GERMAN ANGST
Overnight, U.S. share markets had ended broadly flat although the high-flying Nasdaq .IXIC had managed another small gain as Apple AAPL.O closed at a fresh record high.
Federal Reserve Chair Jerome Powell had said in Portugal that U.S. interest rates are likely to rise further and did not rule out a July hike. Notably, he said he did not see inflation abating to the 2% target until 2025.
In the bond markets, European yields - a proxy for borrowing costs - were inching up again.
In contrast to Spain's data, news that Nordrhein-Westfalen's inflation rate had ticked up again bolstered expectations for something similar from the German-wide figure later given that NW is the country's most populous state.
Germany's 10 year bond yield DE10YT=RR, the benchmark for the currency bloc, was 4.5 basis points (bps) higher at 2.36%, while the two-year yield was up 4 bps at 3.21%.
Two-year U.S. Treasury yields US2YT=RR were up at 4.759% too although still below the 4.778% that had touched on Wednesday after Powell comments. GVD/EUR
Futures see about an 80% chance the Fed will raise interest rates by 25 basis points in July, before holding rates steady for the remainder of the year. FEDWATCH
European Central Bank President Christine Lagarde, on the other hand, further cemented expectations for a ninth consecutive rise in euro zone rates in July. Markets have all but priced in two more rate hikes from the ECB this year.
By contrast, Bank of Japan (BOJ) Governor Kazuo Ueda reiterated that "there's still some distance to go" in sustainably achieving 2% inflation, the conditions the BOJ has set for considering an exit from ultra-easy stimulus.
Investors are now awaiting the U.S. PCE index on Friday, the Fed's favoured inflation gauge. Analysts polled by Reuters expect the core rate to be 4.7% on a year-over-year basis, still well above the Fed's 2% target.
"Markets seem stuck in a holding pattern, watching in awe the inconsistencies between risk sentiment, yield curves, data surprises and inflation," said Mark McCormick, global head of FX and EM Strategy at TD Securities.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Additional reporting by Stella Qiu in Sydney; Editing by Christina Fincher)
((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Overnight, U.S. share markets had ended broadly flat although the high-flying Nasdaq .IXIC had managed another small gain as Apple AAPL.O closed at a fresh record high. By Marc Jones LONDON, June 29 (Reuters) - World shares and the dollar inched higher and gold was at a three-month low on Thursday as traders' attention continued to swing between the battle to lower inflation and speculation about currency market intervention in China and Japan. Europe's regional STOXX 600 index .STOXX barely budged in early trading after what had been its biggest rise in almost a month the previous day, while futures markets were pointing to a fractionally higher start on Wall Street later.
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Overnight, U.S. share markets had ended broadly flat although the high-flying Nasdaq .IXIC had managed another small gain as Apple AAPL.O closed at a fresh record high. By Marc Jones LONDON, June 29 (Reuters) - World shares and the dollar inched higher and gold was at a three-month low on Thursday as traders' attention continued to swing between the battle to lower inflation and speculation about currency market intervention in China and Japan. Japan's Nikkei .N225, however, gave up earlier gains to be up 0.1% Most of the focus remained on the region's two biggest currencies, Japan's yen and China's yuan, which have both been under intense pressure in recent weeks.
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Overnight, U.S. share markets had ended broadly flat although the high-flying Nasdaq .IXIC had managed another small gain as Apple AAPL.O closed at a fresh record high. By Marc Jones LONDON, June 29 (Reuters) - World shares and the dollar inched higher and gold was at a three-month low on Thursday as traders' attention continued to swing between the battle to lower inflation and speculation about currency market intervention in China and Japan. Europe's regional STOXX 600 index .STOXX barely budged in early trading after what had been its biggest rise in almost a month the previous day, while futures markets were pointing to a fractionally higher start on Wall Street later.
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Overnight, U.S. share markets had ended broadly flat although the high-flying Nasdaq .IXIC had managed another small gain as Apple AAPL.O closed at a fresh record high. .EU.N Sweden had already kicked the day off with another interest rate hike, while one of its biggest firms and one of Europe's largest fashion retailers H&M saw its shares HMb.ST hit a 16-month high after forecast-beating results. Where is stubbornly high inflation heading?
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15131.0
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2023-06-29 00:00:00 UTC
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Familiar Catalyst Could Lift Stocks in Second Half
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AAPL
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https://www.nasdaq.com/articles/familiar-catalyst-could-lift-stocks-in-second-half
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nan
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nan
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Artificial intelligence (AIs) stocks and the related exchange traded funds remain among this year’s best-performing assets. However, in recent days, some AI equities and ETFs cooled off a bit. Analysts don’t expect that thaw to last long.
In fact, some market observers believe that already-hot AI stocks could be drivers of broader market upside in the second half of the year. That could prove to be good news for ETFs that, while not dedicated to the AI theme, are heavy on some of the marquee stocks in the group. That includes the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM).
Both ETFs follow the Nasdaq-100 Index (NDX), which is higher by 34.32% year-to-date as of June 26. That's a clear sign the benchmark is benefiting from exposure to AI-adjacent stocks such as Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Alphabet (NASDAQ: GOOG), among others.
Those AI names and other tech stocks could be among the contributors to more upside for equities in the second half of 2023, according to Wedbush analyst Dan Ives.
Ives’ Outlook Could Spur QQQ, QQQM Holdings
For investors that feel as though they missed out on much or all of the AI ebullience through the first six months of the year, the good news is that many analysts, including Ives, believe there’s plenty more gas in the tank for AI stocks.
“Heading into the second half of 2023 we see a much broader tech rally ahead as investors further digest the ramifications of this $800 billion AI spending wave on the horizon and what this means for the software, chip, hardware, and tech ecosystem over the next year,” the Wedbush analyst said in a Monday report to clients. “The 2nd, 3rd, and 4th derivatives of this AI Gold Rush are just starting to evolve for the tech landscape based on our recent work in the field.”
In addition to the aforementioned QQQ and QQQM member firms, Ives believes AI will benefit other companies, including Adobe (NASDAQ: ADBE), Apple (NASDAQ: AAPL), and Facebook parent Meta Platforms (NASDAQ: META), to name a few. That trio combines for over 18% of the QQQ and QQQM portfolios.
For investors that are fretting about rich valuations on AI stocks, including some QQQ and QQQM holdings, Ives believes that the dawn of a new, AI-fueled bull market overshadows those concerns.
“While bears will continue to fret about tech valuations and the uncertain macro backdrop, we believe this ultimately is the start of a new tech bull market we see heading into 2024 being driven by this AI revolution coupled with a stabilizing IT spending environment,” concluded the analyst.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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“The 2nd, 3rd, and 4th derivatives of this AI Gold Rush are just starting to evolve for the tech landscape based on our recent work in the field.” In addition to the aforementioned QQQ and QQQM member firms, Ives believes AI will benefit other companies, including Adobe (NASDAQ: ADBE), Apple (NASDAQ: AAPL), and Facebook parent Meta Platforms (NASDAQ: META), to name a few. Artificial intelligence (AIs) stocks and the related exchange traded funds remain among this year’s best-performing assets. Those AI names and other tech stocks could be among the contributors to more upside for equities in the second half of 2023, according to Wedbush analyst Dan Ives.
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“The 2nd, 3rd, and 4th derivatives of this AI Gold Rush are just starting to evolve for the tech landscape based on our recent work in the field.” In addition to the aforementioned QQQ and QQQM member firms, Ives believes AI will benefit other companies, including Adobe (NASDAQ: ADBE), Apple (NASDAQ: AAPL), and Facebook parent Meta Platforms (NASDAQ: META), to name a few. That includes the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). For investors that are fretting about rich valuations on AI stocks, including some QQQ and QQQM holdings, Ives believes that the dawn of a new, AI-fueled bull market overshadows those concerns.
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“The 2nd, 3rd, and 4th derivatives of this AI Gold Rush are just starting to evolve for the tech landscape based on our recent work in the field.” In addition to the aforementioned QQQ and QQQM member firms, Ives believes AI will benefit other companies, including Adobe (NASDAQ: ADBE), Apple (NASDAQ: AAPL), and Facebook parent Meta Platforms (NASDAQ: META), to name a few. Ives’ Outlook Could Spur QQQ, QQQM Holdings For investors that feel as though they missed out on much or all of the AI ebullience through the first six months of the year, the good news is that many analysts, including Ives, believe there’s plenty more gas in the tank for AI stocks. For investors that are fretting about rich valuations on AI stocks, including some QQQ and QQQM holdings, Ives believes that the dawn of a new, AI-fueled bull market overshadows those concerns.
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“The 2nd, 3rd, and 4th derivatives of this AI Gold Rush are just starting to evolve for the tech landscape based on our recent work in the field.” In addition to the aforementioned QQQ and QQQM member firms, Ives believes AI will benefit other companies, including Adobe (NASDAQ: ADBE), Apple (NASDAQ: AAPL), and Facebook parent Meta Platforms (NASDAQ: META), to name a few. That includes the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Those AI names and other tech stocks could be among the contributors to more upside for equities in the second half of 2023, according to Wedbush analyst Dan Ives.
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2023-06-29 00:00:00 UTC
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7 Top Growth Stocks to Watch for H2 2023
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AAPL
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https://www.nasdaq.com/articles/7-top-growth-stocks-to-watch-for-h2-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After a disappointing 2022, the first half of the year has been all you could ask for from growth stocks. There are many reasons to believe that the year’s second half will also be profitable.
Remember where we came from. The Dow Jones Industrial Average was down more than 20% at times last year before finishing 2022 with a 9% loss, and that was one of the better performances of the miserable year. The S&P 500 finished 2022 down 20%, and the Nasdaq composite sank 34%. It wasn’t a growth stocks kind of year.
All three are rebounding. The Dow’s been the most measured, up 2% on the year, while the S&P 500 rose 12%, and the tech-heavy Nasdaq is up 27% in 2023.
What does that tell us?
The Nasdaq stocks had the furthest to gain because they dropped the most. But they still haven’t regained all their 2022 losses. The Nasdaq index is still down nearly 15% from where it was at the beginning of 2022. The Dow, which fell the least amount last year, is down 5.6%, and the S&P 500 is off 8%.
Growth stocks suffered the most in 2022 and now have the most to gain. And when you add to that the enthusiasm on Wall Street for artificial intelligence products, you have a recipe for outsized gains in the second half of 2023.
The Portfolio Grader highlighted several intriguing growth stocks flashing buy signals.
Microsoft (MSFT)
Source: Sergei Elagin / Shutterstock.com
Microsoft (NASDAQ:MSFT) is the second-largest company in the world (spoiler alert: we’ll get to No. 1 later in this list), with a market capitalization of $2.5 trillion. It reached the $1 trillion market cap milestone in June 2019 and then added another $1.5 trillion.
Only four companies worldwide have a market cap of $1.5 trillion, and Microsoft built that much value in just four years.
It’s pretty impressive that you can consider a company this large and established as a growth stock, but Microsoft fits the bill.
The stock is up nearly 40% this year as investors rallied around the company’s revolutionary in its Bing web browser thanks to generative AI powered by OpenAI’s ChatGPT.
But I also like Microsoft for two other reasons that have nothing to do with AI. The company’s non-AI consumer and business offerings still have room to bounce, and when they do, it will push the MSFT stock higher.
Also, earnings forecasts beyond FY2024 indicate Microsoft is expected to enjoy even higher levels of profitability as part of a multi-year growth resurgence.
All in all, MSFT is an outstanding growth stock for the second half. It has “B” ratings in the Portfolio Grader for both earnings growth and sales growth.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
I’m not going to make you wait for it. Apple (NASDAQ:AAPL), the largest company in the world by market capitalization at nearly $3 trillion, also makes our list of growth stocks to buy in the second half.
Apple’s been on fire in 2023, up 44% and helping to push its market capitalization up 27% since Jan. 1.
Why is that going to continue in the second half? One primary consideration is Apple’s expected iPhone release, which is expected in the third quarter.
An estimated 250 million iPhones are at least four years old. And since the average iPhone sale comes to nearly $1,000, there’s a lot of revenue to be had in the second half of the year.
Apple also uses AI to its advantage to improve its products. A new update will use AI to spellcheck your texts by considering the context of the words that you’re using. That will hopefully reduce annoying and sometimes embarrassing auto-correct mistakes and make people appreciate their iPhones even more.
AAPL stock has “B” ratings for earnings growth and sales growth from the Portfolio Grader.
Nvidia (NVDA)
Source: JHVEPhoto / Shutterstock.com
No list of growth stocks to buy in the second half of 2023 would be complete without Nvidia (NASDAQ:NVDA). The chip maker is seeing unprecedented demand for its top-line chips because they’re used to power many of the most significant AI advances.
Like many other growth stocks, shares fell in 2022. A slump in graphics card sales pushed NVDA down by 50%. While the first quarter results showed signs of progress, the stock took off when Nvidia adjusted its guidance for Q2.
It boosted its expected revenue from $7.2 billion to $11 billion, an increase of 64% from just a year ago. The growth was attributed to the demand for NVDA chips to power generative AI applications.
Nvidia also announced a new partnership with Snowflake (NYSE:SNOW) to develop custom AI models and help Snowflake customers develop their own AI assistants.
I think $11 billion in quarterly revenue will look like a comparatively small number for NVDA in the second half. NVDA has a “B” grade in the Portfolio Grader for earnings growth and an “A” rating for sales growth.
Oracle (ORCL)
Source: JHVEPhoto / Shutterstock.com
Even an older computing company like Oracle (NYSE:ORCL) is entering the AI business. Oracle announced that it’s creating a generative AI cloud service tied to a partnership with a startup, Cohere, that uses Oracle’s cloud infrastructure.
Moves like that bode well for Oracle’s continued success. ORCL stock is up 44% in 2023.
The company already reported earnings for its fiscal fourth quarter, which ended May 31. Revenue was up 17% on a year-over-year basis, and cloud services and license support revenue was up 23%.
Oracle’s moves to expand its cloud services are paying off for shareholders. Oracle spent $28 billion a year ago to buy the healthcare IT software company Cerner and bought cloud software company NetSuite in 2016.
It shows that even a tech company pushing 50 years old can still innovate and be a growth stock. ORCL has “B” grades from the Portfolio Grader for both sales and earnings growth.
Chipotle Mexican Grill (CMG)
Source: Northfoto / Shutterstock.com
Chipotle Mexican Grill (NYSE:CMG) is a different kind of fast food restaurant. Not only does it forgo burgers and fries in favor of burritos and rice bowls, but it’s also made a name for using only fresh ingredients.
From a corporate structure point of view, it’s interesting that Chipotle rejects the franchise model that many fast-food chains use – the company owns all of its 3,200 restaurants in the U.S., Canada, the U.K., France and Germany.
CMG stock is up 48% this year after a massive jump following its first-quarter earnings report. In that report, Chipotle had revenue of $2.4 billion, an improvement of 17% from a year ago. But the eye-popping number was net income, which was $291.6 million, an increase of 84% from the previous year. Earnings per share were $10.50.
Chipotle announced plans to open another 255 to 285 restaurants by the end of the year. CMG stock has an “A” rating in the Portfolio Grader for earnings growth and a “B” rating for sales growth.
PDD Holdings (PDD)
Source: madamF / Shutterstock.com
PDD Holdings (NASDAQ:PDD) is the corporate parent of Pinduoduo, a Chinese e-commerce company. Pinduoduo focuses on the agricultural industry, facilitating small-scale farmers’ sales of fruits and vegetables directly to consumers.
Unlike other names on this list, PDD is in the red for the year’s first half. The stock is down 12% as it and other Chinese e-commerce stocks faltered while China began emerging from its Covid-19 lockdowns.
But with a population of 1.4 billion, China’s e-commerce market is formidable, even when in a lull. It has a projected market value of $1.48 billion this year.
And Pinduoduo will undoubtedly keep a large percentage of that market. The company generated $21 billion in revenue last year and a healthy net income of $5.4 billion.
PDD is also expanding into Western markets. Its Temu app, which provides heavily discounted goods from China, is the most downloaded shopping app in the U.S., Germany, the U.K., France, Canada and Italy.
PDD stock is heavily discounted now, but the second half of the year looks exceptionally promising. PDD has “A” ratings in the Portfolio Grader for both earnings growth and sales growth.
Acushnet (GOLF)
Source: Freedom365day / Shutterstock.com
Acushnet (NYSE:GOLF) designs, develops and distributes products for golfers. Its most recognizable brand is Titleist, which includes branded golf balls, clubs and other gear. Another brand, FootJoy, provides golf shoes, gloves and other apparel.
The Massachusetts-based company was founded in 1932, so it has plenty of staying power. But what makes it a growth stock more than 90 years after it was founded?
One significant catalyst has been in the news lately: a sudden and shocking agreement between the PGA Tour and Saudi-backed LIV Golf League to drop the lawsuits between the two organizations and announce a “newly formed commercial entity to unify golf.”
This spring’s announcement sent GOLF stock up by 5% in a single day, as Jefferies analyst Randal Konik suggested that the agreement holds “immense potential to elevate the sport of golf to new heights.”
Acushnet was already trending in the right direction. Earnings in the first quarter of $686.3 million were 13% better than a year ago and beat analysts’ expectations for $631.12 million. Earnings per share of $1.39 was 30 cents per share better than the Street expected.
GOLF stock is up 26% in the year’s first half, with more to come. It has a “B” rating from the Portfolio Grader for earnings growth and an “A” rating for sales growth.
Novartis (NVS)
Source: Denis Linine / Shutterstock.com
Swiss pharmaceutical company Novartis (NYSE:NVS) produces prescription drugs, generic medications and eye care products. It has a broad portfolio of drugs – only two (Entresto, a heart failure drug, and Cosentyx, a psoriasis treatment) account for 10% of the company’s annual revenue.
The company’s been working to shed side businesses, such as divesting its eye care unit Alcon (NYSE:ALC), and plans to spin off its generic drug business Sandoz.
One thing to keep a close eye on is Cosentyx. European Union regulators approved the drug to treat patients with moderate-to-severe hidradenitis suppurativa (HS), a progressive inflammatory skin condition.
Previously, AbbVie’s (NYSE:ABBV) Humira was the only drug to treat HS, so there’s an opportunity for Novartis to capitalize on a new revenue stream.
Revenue for the first quarter was $12.95 billion, with EPS of $1.71, both better than expectations of $12.6 billion and EPS of $1.54. NVS stock has a “B” rating in the Portfolio Grader for earnings growth and an “A” rating for sales growth.
On the date of publication, Louis Navellier had a long position in MSFT and NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article had a long position in AAPL. The staff member did not hold (either directly or indirectly) any other 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 7 Top Growth Stocks to Watch for H2 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL), the largest company in the world by market capitalization at nearly $3 trillion, also makes our list of growth stocks to buy in the second half. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com I’m not going to make you wait for it. AAPL stock has “B” ratings for earnings growth and sales growth from the Portfolio Grader.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com I’m not going to make you wait for it. Apple (NASDAQ:AAPL), the largest company in the world by market capitalization at nearly $3 trillion, also makes our list of growth stocks to buy in the second half. AAPL stock has “B” ratings for earnings growth and sales growth from the Portfolio Grader.
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Apple (NASDAQ:AAPL), the largest company in the world by market capitalization at nearly $3 trillion, also makes our list of growth stocks to buy in the second half. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com I’m not going to make you wait for it. AAPL stock has “B” ratings for earnings growth and sales growth from the Portfolio Grader.
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Apple (NASDAQ:AAPL), the largest company in the world by market capitalization at nearly $3 trillion, also makes our list of growth stocks to buy in the second half. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com I’m not going to make you wait for it. AAPL stock has “B” ratings for earnings growth and sales growth from the Portfolio Grader.
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2023-06-29 00:00:00 UTC
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GLOBAL MARKETS-Asian shares fall, yen and yuan near 8-month lows on rate risks
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AAPL
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https://www.nasdaq.com/articles/global-markets-asian-shares-fall-yen-and-yuan-near-8-month-lows-on-rate-risks
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nan
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nan
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By Stella Qiu
SYDNEY, June 29 (Reuters) - Asian shares fell on Thursday after global central banks reaffirmed their resolve to beat inflation, warning rates may need to rise further, while the yen and yuan struggled to lift from lows amid jitters of intervention.
Europe is set for a lower open, with both EUROSTOXX 50 futures STXEc1 and FTSE futures FFIc1 off 0.1%. Wall Street futures ESc1, NQc1 were up 0.1% as investors await U.S. Personal Consumption Expenditures (PCE) data on Friday.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.5% with holidays in Singapore, India and Malaysia making for thinner trading.
Chinese blue chips .CSI300 fell 0.3% and Hong Kong's Hang Seng index .HSI slumped 1.3%. Japan's Nikkei .N225, however, gave up earlier gains to be up 0.1%
The onshore yuan CNY=CFXS eased to 7.2491 per dollar, just a whisker away from its eight-month trough hit a day ago. That was despite a stronger-than-expected central bank fixing, which investors read as an official attempt to rein in weakness in the currency.
"(The People's Bank of China) might not mind the currency falling because it helps support the Chinese economy growth, but they probably don't want it to fall too rapidly because then it looks a bit like a panic," said Shane Oliver, chief economist at AMP in Sydney.
"Obviously, the central bank might try and slow that down, but it's like when the tide is going out, they are sort of battling the falling tide."
Overnight, U.S. shares were largely flat. The Nasdaq .IXIC managed a small gain with support from tech stocks, with Apple AAPL.O closing at a record high, while the Dow .DJI closed slightly lower.
On Wednesday, Federal Reserve Chair Jerome Powell said the bank will likely raise rates further and did not rule out a July hike. Notably, he said he did not see inflation abating to the 2% target until 2025.
"So there wasn't really much of a surprise there, which explains why share markets hadn't really fallen that much, despite it being a hawkish message," said Oliver.
Indeed, two-year Treasury yields US2YT=RR closed at 4.722% after briefly spiking to 4.778%, as bond markets continued to cast doubt on Fed's hawkishness of two more hikes. They were up 2 basis points to 4.7451% on Thursday. US/
Futures see about an 80% chance the Fed will raise interest rates by 25 basis points in July, before holding rates steady for the remainder of the year. FEDWATCH
European Central Bank President Christine Lagarde, on the other hand, cemented expectations for a ninth consecutive rise in euro zone rates in July. Markets have all but priced in two more rate hikes from the ECB this year.
By contrast, Bank of Japan (BOJ) Governor Kazuo Ueda reiterated that "there's still some distance to go" in sustainably achieving 2% inflation, the conditions the BOJ has set for considering an exit from ultra-easy stimulus.
The BOJ's dovish policy stance has undermined the yen JPY=EBS, which fell 0.1% on Thursday to 144.56 per dollar, just a whisker away from an eight-month low of 144.62 hit overnight.
Markets are on edge for intervention from Japanese authorities, after increased verbal warnings from government officials this week that the yen's decline may have been too rapid.
Investors are now awaiting the U.S. PCE index on Friday, the Fed's favoured inflation gauge. Analysts polled by Reuters expect the core rate to be 4.7% on a year-over-year basis, still well above the Fed's 2% target.
"Markets seem stuck in a holding pattern, watching in awe the inconsistencies between risk sentiment, yield curves, data surprises and inflation," said Mark McCormick, global head of FX and EM Strategy at TD Securities.
"For U.S., disinflation is the main driver and sending the strongest directional H2 cue for the USD: choppy but lower."
The soft yuan and yen have lifted the greenback more broadly, with the U.S. dollar =USD up 0.2% against a basket of major currencies on Thursday.
The dollar has fallen 0.5% in the first half of the year after hitting a decade high last year.
Oil prices lost ground on Thursday. U.S. crude CLc1 futures retreated 0.6% to $69.13 per barrel, and Brent crude LCOc1 was down 0.6% at $73.54 per barrel. O/R
Gold prices were 0.2% lower at $1,904.00 per ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Stella Qiu; Editing by Lincoln Feast and Sam Holmes.)
((yifan.qiu@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 Nasdaq .IXIC managed a small gain with support from tech stocks, with Apple AAPL.O closing at a record high, while the Dow .DJI closed slightly lower. By Stella Qiu SYDNEY, June 29 (Reuters) - Asian shares fell on Thursday after global central banks reaffirmed their resolve to beat inflation, warning rates may need to rise further, while the yen and yuan struggled to lift from lows amid jitters of intervention. FEDWATCH European Central Bank President Christine Lagarde, on the other hand, cemented expectations for a ninth consecutive rise in euro zone rates in July.
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The Nasdaq .IXIC managed a small gain with support from tech stocks, with Apple AAPL.O closing at a record high, while the Dow .DJI closed slightly lower. By Stella Qiu SYDNEY, June 29 (Reuters) - Asian shares fell on Thursday after global central banks reaffirmed their resolve to beat inflation, warning rates may need to rise further, while the yen and yuan struggled to lift from lows amid jitters of intervention. US/ Futures see about an 80% chance the Fed will raise interest rates by 25 basis points in July, before holding rates steady for the remainder of the year.
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The Nasdaq .IXIC managed a small gain with support from tech stocks, with Apple AAPL.O closing at a record high, while the Dow .DJI closed slightly lower. By Stella Qiu SYDNEY, June 29 (Reuters) - Asian shares fell on Thursday after global central banks reaffirmed their resolve to beat inflation, warning rates may need to rise further, while the yen and yuan struggled to lift from lows amid jitters of intervention. US/ Futures see about an 80% chance the Fed will raise interest rates by 25 basis points in July, before holding rates steady for the remainder of the year.
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The Nasdaq .IXIC managed a small gain with support from tech stocks, with Apple AAPL.O closing at a record high, while the Dow .DJI closed slightly lower. US/ Futures see about an 80% chance the Fed will raise interest rates by 25 basis points in July, before holding rates steady for the remainder of the year. Markets have all but priced in two more rate hikes from the ECB this year.
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2023-06-29 00:00:00 UTC
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Is Apple Stock a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-a-buy-now-2
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nan
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nan
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Shares of Apple (NASDAQ: AAPL) have climbed 43% in the first half of 2023, a stark improvement from the 27% it lost last year amid a market wide sell-off and macroeconomic headwinds. Investors have rallied over the company's long-term prospects in virtual/augmented reality (VR/AR) and its consistency as a solid growth stock.
Because it is the most valuable company in the world, with a market cap of $2.9 trillion, it might feel like it's too late to invest in this tech giant. Still, as the saying goes, the best time to invest was probably 10 years ago, but the next best time is today. Apple's stock has a history of consistent growth over the long term, making it an attractive option at almost any time.
Here's why Apple stock is a must-buy right now.
Apple is growing market share and attracting new customers
In 2022, Apple surpassed Alphabet's Android for a majority market share in smartphones in the U.S. The landmark achievement represents Apple's nearly unrivaled dominance in consumer tech, being the only smartphone manufacturer using iPhone OS. Meanwhile, Android is used by numerous companies, with a few being Samsung, Sony, and Alphabet.
The iPhone makes up just over 50% of Apple's total revenue and is a major sales driver in its other product categories. The connectivity between the company's devices and consistent design language throughout its lineup makes it more convenient for iPhone users to stick with Apple than stray to competing products. As a result, the tech giant has also achieved leading market shares in tablets, headphones, and smartwatches.
Apple's dominance in consumer tech makes its recent debut of the VR/AR headset, the Vision Pro, promising for its long-term future. The VR market alone is projected to expand at a compound annual rate of 45% through 2029.
The Vision Pro's hefty price tag of $3,499 will likely stunt sales of the first-generation product. But past pricing strategies could see Apple bring down the cost in future iterations of the headset, allowing the company to snap up market share in the lucrative industry.
It's the king of reliability and consistent growth
Apple's stock has risen 306% in the last five years, more than any company in what's considered the big five of tech. Check out the chart below for reference.
Data by YCharts.
The company has built a reputation for reliability with investors, allowing its stock to outperform its peers no matter the market conditions. Amid 2022's economic downturn, Apple's stock decline of 27% for the year was the lowest among all five companies in the chart above. Wall Street seems to retain its faith in the company's long-term outlook, even in an uncertain market.
The company's resilience has also paid off with product sales. Reduced spending in the tech industry hit countless companies over the last year, with Samsung and Xiaomi experiencing smartphone shipment declines of 19% and 24%, respectively, in the first quarter of 2023. But the same period saw Apple report a 2% rise in its iPhone revenue.
Consistent demand for Apple's products and services has also led to reliable financial growth. Since 2019, the company's annual revenue has risen 48%, while its operating income has climbed 68%.
The stability of Apple's business has caught the attention of some of the most famous investors, with Warren Buffett's Berkshire Hathaway dedicating almost 47% of its portfolio to the company. Apple shares have risen almost 400% since Berkshire first invested in 2016.
Apple's stock is slightly expensive, with a price-to-earnings ratio of 31. But the longer you hold, the less that figure will matter. The company's solid growth history, recent product developments, and quickly expanding services business make it a no-brainer buy.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, 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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Shares of Apple (NASDAQ: AAPL) have climbed 43% in the first half of 2023, a stark improvement from the 27% it lost last year amid a market wide sell-off and macroeconomic headwinds. The connectivity between the company's devices and consistent design language throughout its lineup makes it more convenient for iPhone users to stick with Apple than stray to competing products. But past pricing strategies could see Apple bring down the cost in future iterations of the headset, allowing the company to snap up market share in the lucrative industry.
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Shares of Apple (NASDAQ: AAPL) have climbed 43% in the first half of 2023, a stark improvement from the 27% it lost last year amid a market wide sell-off and macroeconomic headwinds. Apple's dominance in consumer tech makes its recent debut of the VR/AR headset, the Vision Pro, promising for its long-term future. The company's solid growth history, recent product developments, and quickly expanding services business make it a no-brainer buy.
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Shares of Apple (NASDAQ: AAPL) have climbed 43% in the first half of 2023, a stark improvement from the 27% it lost last year amid a market wide sell-off and macroeconomic headwinds. Apple is growing market share and attracting new customers In 2022, Apple surpassed Alphabet's Android for a majority market share in smartphones in the U.S. It's the king of reliability and consistent growth Apple's stock has risen 306% in the last five years, more than any company in what's considered the big five of tech.
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Shares of Apple (NASDAQ: AAPL) have climbed 43% in the first half of 2023, a stark improvement from the 27% it lost last year amid a market wide sell-off and macroeconomic headwinds. The iPhone makes up just over 50% of Apple's total revenue and is a major sales driver in its other product categories. Apple shares have risen almost 400% since Berkshire first invested in 2016.
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15135.0
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2023-06-29 00:00:00 UTC
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Better Buy: PayPal or Block?
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-paypal-or-block
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nan
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nan
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PayPal (NASDAQ: PYPL) and Block (NYSE: SQ) are leaders in the lucrative digital payments industry. Each has carved out a valuable niche in the broader sector, and they have proven to be pioneers in displacing cash. Shares of both are down big from their peaks, presenting investors with a potential opportunity.
Which one of these top fintech stocks is the better one to own? Let's look at the investment merits of both PayPal and Block before coming to a conclusion.
PayPal: A digital payments giant with strong financials
With 433 million active accounts and $1.36 trillion in 2022 total payment volume, PayPal is an industry juggernaut. It is not only a popular service that allows merchants to accept cashless payments but the most ubiquitous digital wallet, with a huge lead over second-place Apple Pay. In fact, PayPal is accepted by 79% of the top 1,500 online merchants across North America and Europe.
During the worst of the pandemic, when consumers were flush with cash and spending more money online, PayPal boomed. But as things normalized, coupled with the current uncertain macroeconomic environment, growth has slowed dramatically. Revenue in the first quarter of 2023 (ended March 31) was up 8.6% year over year, a sharp deceleration from the double-digit percentage gains of a couple of years ago.
However, this business possesses a wonderful financial profile, with net cash on its balance sheet of $4.4 billion (as of March 31). Over the past five years, the company's quarterly operating margin averaged 16%. And in 2022, PayPal generated $5.1 billion of free cash flow, with the expectation to produce $5 billion this year.
PayPal shares are currently 79% off their all-time high. And they are down 7% in 2023, while the Nasdaq Composite Index has jumped 30%. As a result, the stock trades at a trailing price-to-earnings (P/E) ratio of 28 and a forward P/E of 13. Based on the stock's historical valuation, this is a very attractive entry point for investors to buy the leader in electronic payments.
Block: Two budding ecosystems with huge growth potential
Block's original business plan was based on making it possible for smaller merchants to accept card payments. Today, this is known as the Square segment, which processed $46.2 billion in gross payment volume (GPV) in the first three months of 2023. A key trend that has benefited this division is Square's ability to attract large merchants, or those that handle annualized GPV of at least $500,000.
On the other side of the equation, Block also has a compelling personal finance offering known as Cash App, which has 53 million monthly active users. Customers can send or receive money, set up direct deposit, or buy stocks and Bitcoin. Cash App registered a gross profit of $931 million in the last quarter, up 49% compared to the first quarter of 2022.
Block's growth strategy centers on launching new product and service features, as well as entering new markets. The company currently operates in the U.S., Australia, U.K, Japan, Spain, Canada, and France, so it does have notable international exposure and the potential for more. Looking at the bigger picture, the management team thinks Block's total addressable market (in terms of gross profit) is $120 billion, up significantly from previous estimates.
As of this writing, Block's stock is down 77% from its peak price in August 2021. As the Federal Reserve hiked interest rates to fight inflation, investors have soured on growth tech stocks, a category that Block occupies. Although Block posted a $553 million net loss in 2022, Wall Street analysts expect the business to start producing positive and rising net income this year.
It's all about what investors prioritize
PayPal has a valid investment case thanks to its strong financial profile, increasing engagement, and low valuation. And this might be enticing for some investors who want a more mature, cash-generative business.
Block might catch the eye of investors who are more interested in sizable growth prospects. Additionally, if you are bullish on Bitcoin but aren't comfortable buying it directly, Block could give you the exposure you are looking for through its Cash App and other Bitcoin-focused segments.
It's ultimately up to you to decide what aspects are more important to the investment decision.
10 stocks we like better than PayPal
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 PayPal 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 26, 2023
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, and PayPal. The Motley Fool recommends the following options: short June 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is not only a popular service that allows merchants to accept cashless payments but the most ubiquitous digital wallet, with a huge lead over second-place Apple Pay. Looking at the bigger picture, the management team thinks Block's total addressable market (in terms of gross profit) is $120 billion, up significantly from previous estimates. As the Federal Reserve hiked interest rates to fight inflation, investors have soured on growth tech stocks, a category that Block occupies.
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PayPal: A digital payments giant with strong financials With 433 million active accounts and $1.36 trillion in 2022 total payment volume, PayPal is an industry juggernaut. Today, this is known as the Square segment, which processed $46.2 billion in gross payment volume (GPV) in the first three months of 2023. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, and PayPal.
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PayPal: A digital payments giant with strong financials With 433 million active accounts and $1.36 trillion in 2022 total payment volume, PayPal is an industry juggernaut. Block: Two budding ecosystems with huge growth potential Block's original business plan was based on making it possible for smaller merchants to accept card payments. See the 10 stocks *Stock Advisor returns as of June 26, 2023 Neil Patel has no position in any of the stocks mentioned.
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And in 2022, PayPal generated $5.1 billion of free cash flow, with the expectation to produce $5 billion this year. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, and PayPal.
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15136.0
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2023-06-29 00:00:00 UTC
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Apple seeks to fend off EU antitrust charge triggered by Spotify at hearing
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AAPL
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https://www.nasdaq.com/articles/apple-seeks-to-fend-off-eu-antitrust-charge-triggered-by-spotify-at-hearing
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nan
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nan
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By Foo Yun Chee
BRUSSELS, June 29 (Reuters) - Apple AAPL.O will on Friday seek to fend off a revised EU antitrust charge and possible hefty fine linked to claims it prevents music streaming companies such as Spotify SPOT.N from informing users of other buying options outside its App Store.
The iPhone maker will set out its arguments to senior European Commission officials and their peers at national competition agencies at a closed hearing in Brussels.
EU antitrust enforcers earlier this year boosted their case against the company's so-called anti-steering obligations, but dropped an earlier charge against Apple's requirement that developers use its in-app payment system.
The Commission said the anti-steering obligations breach EU rules against unfair trading conditions, a relatively novel legal argument in an antitrust case.
Apple has said there is no merit in the case triggered by a Spotify complaint in 2019, pointing to the Swedish music streaming service's dominant market share in Europe, where Apple Music trails in third or fourth place in most EU countries.
Its other argument is that it has revised rules to allow reader apps such as Spotify and Netflix to include links to their website for sign-ups and user payments, allowing app developers to bypass its controversial 30% App Store fee.
Reader apps provide content such as e-books, video and music requiring payment at sign-up.
Spotify, which will also attend the hearing, urged a speedy decision from the Commission. The EU executive said it never comments on possible oral hearings or on their date.
(Reporting by Foo Yun Chee; Editing by Jan Harvey)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee BRUSSELS, June 29 (Reuters) - Apple AAPL.O will on Friday seek to fend off a revised EU antitrust charge and possible hefty fine linked to claims it prevents music streaming companies such as Spotify SPOT.N from informing users of other buying options outside its App Store. The iPhone maker will set out its arguments to senior European Commission officials and their peers at national competition agencies at a closed hearing in Brussels. The Commission said the anti-steering obligations breach EU rules against unfair trading conditions, a relatively novel legal argument in an antitrust case.
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By Foo Yun Chee BRUSSELS, June 29 (Reuters) - Apple AAPL.O will on Friday seek to fend off a revised EU antitrust charge and possible hefty fine linked to claims it prevents music streaming companies such as Spotify SPOT.N from informing users of other buying options outside its App Store. EU antitrust enforcers earlier this year boosted their case against the company's so-called anti-steering obligations, but dropped an earlier charge against Apple's requirement that developers use its in-app payment system. Its other argument is that it has revised rules to allow reader apps such as Spotify and Netflix to include links to their website for sign-ups and user payments, allowing app developers to bypass its controversial 30% App Store fee.
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By Foo Yun Chee BRUSSELS, June 29 (Reuters) - Apple AAPL.O will on Friday seek to fend off a revised EU antitrust charge and possible hefty fine linked to claims it prevents music streaming companies such as Spotify SPOT.N from informing users of other buying options outside its App Store. Apple has said there is no merit in the case triggered by a Spotify complaint in 2019, pointing to the Swedish music streaming service's dominant market share in Europe, where Apple Music trails in third or fourth place in most EU countries. Its other argument is that it has revised rules to allow reader apps such as Spotify and Netflix to include links to their website for sign-ups and user payments, allowing app developers to bypass its controversial 30% App Store fee.
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By Foo Yun Chee BRUSSELS, June 29 (Reuters) - Apple AAPL.O will on Friday seek to fend off a revised EU antitrust charge and possible hefty fine linked to claims it prevents music streaming companies such as Spotify SPOT.N from informing users of other buying options outside its App Store. EU antitrust enforcers earlier this year boosted their case against the company's so-called anti-steering obligations, but dropped an earlier charge against Apple's requirement that developers use its in-app payment system. Its other argument is that it has revised rules to allow reader apps such as Spotify and Netflix to include links to their website for sign-ups and user payments, allowing app developers to bypass its controversial 30% App Store fee.
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15137.0
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2023-06-29 00:00:00 UTC
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Apple's Bull Run And Why It's Different
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AAPL
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https://www.nasdaq.com/articles/apples-bull-run-and-why-its-different
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nan
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nan
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A funny thing has been happening on Wall Street recently. Some of the biggest and brightest tech stocks have received cautious downgrades from analysts despite posting significant returns this year as downtrends are broken and strong uptrends emerge.
Alphabet Inc (NASDAQ: GOOGL), for example, received two downgrades this week, even though its shares have rallied as much as 50% since January. Similarly, Tesla Inc (NASDAQ: TSLA) shares, despite gaining as much as 170% this year alone, were downgraded by Goldman Sachs on Monday. Investors would be forgiven for thinking that rallies that simply strengthened the bull's case rather than undermined it, so it's understandable that some of the other tech titans who've posted strong returns this year already might be getting nervous.
Strong Outlook
One such titan is Apple Inc (NASDAQ: AAPL), which has been at the forefront of the tech-dominated rally that has helped the benchmark S&P 500 index gain 15% this year. Apple's shares are not only up more than 50% themselves, but they're also printing fresh all-time highs on a daily basis right now. But with the stock's RSI showing a score of 70, indicating overbought conditions, could Apple be the next big name to receive a cooling down order?
Rest assured, we at MarketBeat think this is unlikely. Yes, Apple has had its strongest first half of a year in over a decade, but if anything, this confirms just how strong a candidate is for a long-term buy and hold. Unlike, say, Google and Tesla, Apple's most recent earnings report strengthened the fundamental support behind the bull's case.
The numbers blew analyst expectations out of the water, their quarterly dividend was raised, and a fresh $90 billion buyback program was authorized. Revenue headwinds have been dissipating for Apple rather than appearing for the other two.
MarketBeat's MarketRank Forecast tool still rates them as a Buy, as does the team over at Wedbush. Yesterday saw fresh optimism from analyst Dan Ives, who isn't afraid to call for a $4 trillion market cap even as Apple approaches the $3 trillion mark for the first time. Ives has been a long-term Apple bull and holds one of the most positive outlooks on Apple stock and its market potential.
While many tech companies are starting to lag, Apple is gaining serious momentum. He likened their moves to playing chess while others were only playing checkers and predicted Apple's annual services revenue will reach nearly $100 billion this year. His price target of $220 will offend no one either, and even the all-time high printed on Wednesday suggests there's still a 15% upside to be had for investors getting involved.
Getting Involved
It's not hard to buy into this optimism, either. Consider for a moment the growing belief that Wall Street has yet to fully grasp the potential for iPhone upgrades and their effect on Apple's revenue. It's predicted that the forthcoming release of the iPhone 15 could initiate a "mini super cycle." It's an interesting call and is based on the fact that a significant proportion, approximately 25%, of iPhone users have chosen not to upgrade their devices over the past four years, so exploiting this untapped market presents a considerable revenue opportunity.
In addition, Apple's ecosystem has perhaps never been more robust, with CEO Tim Cook recently unveiling their new Vision Pro headset. This has been well received and is seen as a crucial step towards Apple establishing a comprehensive app ecosystem driven by artificial intelligence.
And best of all? The technicals are just as strong as the fundamentals. Apple's multi-month run of higher highs and higher lows with minimal pullbacks suggests none of the big players are taking profits, and having recently surpassed the previous all-time high from 2021, that's now become a solid line of support. There's nothing wrong with being cautious with stocks that have just had big runs, but we could still be at the starting line with Apple.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Strong Outlook One such titan is Apple Inc (NASDAQ: AAPL), which has been at the forefront of the tech-dominated rally that has helped the benchmark S&P 500 index gain 15% this year. Some of the biggest and brightest tech stocks have received cautious downgrades from analysts despite posting significant returns this year as downtrends are broken and strong uptrends emerge. Investors would be forgiven for thinking that rallies that simply strengthened the bull's case rather than undermined it, so it's understandable that some of the other tech titans who've posted strong returns this year already might be getting nervous.
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Strong Outlook One such titan is Apple Inc (NASDAQ: AAPL), which has been at the forefront of the tech-dominated rally that has helped the benchmark S&P 500 index gain 15% this year. Some of the biggest and brightest tech stocks have received cautious downgrades from analysts despite posting significant returns this year as downtrends are broken and strong uptrends emerge. Investors would be forgiven for thinking that rallies that simply strengthened the bull's case rather than undermined it, so it's understandable that some of the other tech titans who've posted strong returns this year already might be getting nervous.
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Strong Outlook One such titan is Apple Inc (NASDAQ: AAPL), which has been at the forefront of the tech-dominated rally that has helped the benchmark S&P 500 index gain 15% this year. Ives has been a long-term Apple bull and holds one of the most positive outlooks on Apple stock and its market potential. Apple's multi-month run of higher highs and higher lows with minimal pullbacks suggests none of the big players are taking profits, and having recently surpassed the previous all-time high from 2021, that's now become a solid line of support.
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Strong Outlook One such titan is Apple Inc (NASDAQ: AAPL), which has been at the forefront of the tech-dominated rally that has helped the benchmark S&P 500 index gain 15% this year. Getting Involved It's not hard to buy into this optimism, either. Consider for a moment the growing belief that Wall Street has yet to fully grasp the potential for iPhone upgrades and their effect on Apple's revenue.
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15138.0
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2023-06-29 00:00:00 UTC
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Wall Street Has a "Big" Problem, and It May Spell Serious Trouble for Stocks
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AAPL
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https://www.nasdaq.com/articles/wall-street-has-a-big-problem-and-it-may-spell-serious-trouble-for-stocks
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nan
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nan
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Patience tends to be handsomely rewarded on Wall Street, as any long-term chart of the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) shows. However, the short-term movements in these major U.S. stock indexes are far less predictable.
In just a two-year stretch, the Dow Jones, S&P 500, and Nasdaq Composite have screamed to new highs, plunged into a bear market, and come roaring back -- at least for the S&P 500 and Nasdaq Composite. On a year-to-date basis, through June 26, 2023, the broad-based S&P 500 and growth-driven Nasdaq Composite were higher by 12.7% and 27.4%, respectively.
While a running of the bulls is typically welcome news for investors, a deeper dive into what's driving the S&P 500 and Nasdaq Composite higher reveals that Wall Street has a "big" problem on its hands.
Image source: Getty Images.
Wall Street's big breadth problem historically hasn't ended well
By one definition, the S&P 500 and Nasdaq have officially entered a new bull market. Both indexes have decisively rallied more than 20% from their 2022 bear-market closing lows. But upon closer inspection, a narrow group of megacap growth stocks is driving the lion's share of this rally.
In one respect, more credence should be given to larger businesses that play a critical role in the U.S. and global economy. In other words, if Apple (NASDAQ: AAPL), the largest company in the market cap-weighted S&P 500, crushes or vastly misses Wall Street's sales or profits expectations, it should have more of an impact than if Newell Brands, the smallest component of the S&P 500, surpasses or falls short of expectations. To some degree, market-cap weightings serve the purpose of offering a fair picture of what's going on with equities.
But when a narrow band of the largest stocks is supporting the broader market and leaving a majority of other companies to eat their dust, history shows us that bad things tend to happen.
The forward P/E ratio for the 10 biggest names in the S&P500 by market cap is currently 28.5x....this compares to 16.3x for the 'other' 490 stocks in the index. pic.twitter.com/MDGndsJ404
-- Longview Economics (@Lvieweconomics) June 21, 2023
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In other words, if Apple (NASDAQ: AAPL), the largest company in the market cap-weighted S&P 500, crushes or vastly misses Wall Street's sales or profits expectations, it should have more of an impact than if Newell Brands, the smallest component of the S&P 500, surpasses or falls short of expectations. Patience tends to be handsomely rewarded on Wall Street, as any long-term chart of the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) shows. While a running of the bulls is typically welcome news for investors, a deeper dive into what's driving the S&P 500 and Nasdaq Composite higher reveals that Wall Street has a "big" problem on its hands.
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In other words, if Apple (NASDAQ: AAPL), the largest company in the market cap-weighted S&P 500, crushes or vastly misses Wall Street's sales or profits expectations, it should have more of an impact than if Newell Brands, the smallest component of the S&P 500, surpasses or falls short of expectations. However, the short-term movements in these major U.S. stock indexes are far less predictable. While a running of the bulls is typically welcome news for investors, a deeper dive into what's driving the S&P 500 and Nasdaq Composite higher reveals that Wall Street has a "big" problem on its hands.
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In other words, if Apple (NASDAQ: AAPL), the largest company in the market cap-weighted S&P 500, crushes or vastly misses Wall Street's sales or profits expectations, it should have more of an impact than if Newell Brands, the smallest component of the S&P 500, surpasses or falls short of expectations. In just a two-year stretch, the Dow Jones, S&P 500, and Nasdaq Composite have screamed to new highs, plunged into a bear market, and come roaring back -- at least for the S&P 500 and Nasdaq Composite. While a running of the bulls is typically welcome news for investors, a deeper dive into what's driving the S&P 500 and Nasdaq Composite higher reveals that Wall Street has a "big" problem on its hands.
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In other words, if Apple (NASDAQ: AAPL), the largest company in the market cap-weighted S&P 500, crushes or vastly misses Wall Street's sales or profits expectations, it should have more of an impact than if Newell Brands, the smallest component of the S&P 500, surpasses or falls short of expectations. However, the short-term movements in these major U.S. stock indexes are far less predictable. In just a two-year stretch, the Dow Jones, S&P 500, and Nasdaq Composite have screamed to new highs, plunged into a bear market, and come roaring back -- at least for the S&P 500 and Nasdaq Composite.
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15139.0
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2023-06-29 00:00:00 UTC
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Invesco QQQ Trust ETF: What Do the Technical Indicators Signal?
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AAPL
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https://www.nasdaq.com/articles/invesco-qqq-trust-etf%3A-what-do-the-technical-indicators-signal
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nan
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nan
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The Invesco QQQ Trust (QQQ) ETF is a popular exchange-traded fund (ETF) that tracks the NASDAQ 100 Index (NDX). Holdings of the QQQ ETF are dominated by big tech companies such as Apple (AAPL), Amazon (AMZN), and Meta Platforms (META). This ETF enables investors to invest in the largest 100 non-financial companies. Remarkably, QQQ has gained about 38% in 2023 so far, and based on technical indicators, QQQ is still a Strong Buy near its current levels.
QQQ ETF’s Technical Indicators
According to TipRanks’ technical analysis tool, the QQQ ETF stock’s 50-Day EMA (exponential moving average) is 341.90, while its price is $364.54, making it a Buy. Further, the moving average convergence divergence (MACD) also signals a Buy.
At the same time, QQQ’s price rate of change (ROC) of 2.68 points to a bullish trend. Meanwhile, based on Pivot Points, the QQQ has the next resistance near $368.29.
Overall, in the one-day time frame, the QQQ ETF stock is a Strong Buy, based on TipRanks’ easy-to-read technical summary signals. This is based on 15 Bullish, six Neutral, and one Bearish signals.
Is Invesco QQQ a Good Buy?
As per 1,210 top Wall Street analysts providing ratings on the QQQ’s 102 holdings, the ETF is a Moderate Buy, and the average price target of $386.92 implies a 6.14% upside. 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, the QQQ stock has a smart score of eight, which indicates that the ETF could outperform the broader market over the long term.
Ending Thoughts
The QQQ ETF has a commendable history of beating the S&P 500 Index (SPX) in nine out of the last ten years, with the trend continuing in 2023 so far. Additionally, the QQQ ETF stock has delivered an average annualized return of 17.7% in the past decade, ending in March 2023. These factors, along with analysts’ expectations of upside potential, are encouraging.
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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Holdings of the QQQ ETF are dominated by big tech companies such as Apple (AAPL), Amazon (AMZN), and Meta Platforms (META). Overall, in the one-day time frame, the QQQ ETF stock is a Strong Buy, based on TipRanks’ easy-to-read technical summary signals. As per 1,210 top Wall Street analysts providing ratings on the QQQ’s 102 holdings, the ETF is a Moderate Buy, and the average price target of $386.92 implies a 6.14% upside.
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Holdings of the QQQ ETF are dominated by big tech companies such as Apple (AAPL), Amazon (AMZN), and Meta Platforms (META). QQQ ETF’s Technical Indicators According to TipRanks’ technical analysis tool, the QQQ ETF stock’s 50-Day EMA (exponential moving average) is 341.90, while its price is $364.54, making it a Buy. Overall, in the one-day time frame, the QQQ ETF stock is a Strong Buy, based on TipRanks’ easy-to-read technical summary signals.
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Holdings of the QQQ ETF are dominated by big tech companies such as Apple (AAPL), Amazon (AMZN), and Meta Platforms (META). The Invesco QQQ Trust (QQQ) ETF is a popular exchange-traded fund (ETF) that tracks the NASDAQ 100 Index (NDX). QQQ ETF’s Technical Indicators According to TipRanks’ technical analysis tool, the QQQ ETF stock’s 50-Day EMA (exponential moving average) is 341.90, while its price is $364.54, making it a Buy.
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Holdings of the QQQ ETF are dominated by big tech companies such as Apple (AAPL), Amazon (AMZN), and Meta Platforms (META). QQQ ETF’s Technical Indicators According to TipRanks’ technical analysis tool, the QQQ ETF stock’s 50-Day EMA (exponential moving average) is 341.90, while its price is $364.54, making it a Buy. Overall, in the one-day time frame, the QQQ ETF stock is a Strong Buy, based on TipRanks’ easy-to-read technical summary signals.
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15140.0
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2023-06-29 00:00:00 UTC
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Better Buy: Apple vs. AMD Stock
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-vs.-amd-stock
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nan
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nan
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Tech stocks returned to favor this year after the market suffered a dramatic sell-off in 2022. Many of the industry's companies have enjoyed solid recoveries as advances in sectors like artificial intelligence (AI) and virtual/augmented reality (VR/AR) have created bullish investors.
As a result, companies pushing these markets forward, such as Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD), are increasingly attractive investments. These businesses suffered considerable stock declines in 2022. However, shares in Apple and Advanced Micro Devices (AMD) have soared since Jan. 1 and will likely continue on their current trajectory over the long term.
Apple is a compelling buy with its dominance in consumer tech. And AMD's powerful chips allow it to profit from growth across multiple industries. But before you add these tech giants to your portfolio, it's a good idea to make the most of your investment by finding out which is currently the better buy. So, let's take a closer look.
Apple
Apple's biggest selling point is the reliability of its established business. The company became a household name worldwide, known for its quality products and sleek, innovative designs. Using Apple products has become almost a status symbol in many countries, increasing demand and allowing the company to deliver consistent revenue growth despite its prices being on the higher end of the market.
The biggest growth driver is easily the iPhone. The popular smartphone is responsible for more than 50% of the company's revenue and is a lucrative tool for attracting consumers to its other products. Apple can easily tout its other devices and services through the iPhone, bolstering its earnings.
The company's booming services business is one of the biggest winners from this strategy. Digital platforms like Apple TV+, Music, Fitness+, News+, and more now comprise the company's second-highest-earning segment.
The subscription-based business strengthens Apple's outlook by diversifying its earnings and providing attractive profit margins. In fiscal 2022, services hit a profit margin of 72%, while the same metric for products came to 36%.
As a result, Apple's immense brand loyalty could lead to a fruitful future in the VR/AR market after the debut of its new headset, the Vision Pro. If future generations of the device can launch at more competitive pricing, iPhone users could significantly boost Apple's market share in this high-growth sector.
AMD
Advanced Micro Devices has captured Wall Street's attention this year, with its stock climbing 66% year to date, almost entirely driven by its prospects in AI.
The company is home to a diverse line of chips, including graphics processing units (GPUs), data processing units (DPUs), and central processing units (CPUs), making it one of the few companies producing the hardware necessary to run and develop AI models.
The semiconductor company's potential has also caught the eye of some of tech's most prominent players. Microsoft, the biggest investor in ChatGPT developer OpenAI, is reportedly supporting AMD's AI chip expansion by providing financial and engineering resources. And Reuters recently reported that Amazon Web Services is considering using AMD's chips after previously relying on Nvidia for the majority of its hardware needs.
AMD's diverse range of chips allowed it to expand to several other markets. The company's hardware can be found powering a wide range of devices and services, including game consoles, laptops, custom-built PCs, and cloud platforms like Azure and Alphabet's Google Cloud.
As a leading chipmaker, AMD is fueling the development of several industries, making its stock an increasingly attractive investment.
Is Apple or AMD the better buy?
While Apple and AMD are both compelling options, it's often better to choose the more reliable stock to minimize risk. In this respect, Apple is the clear winner.
Data by YCharts. PE = price to earnings.
The chart above illustrates how Apple is the better value with its price-to-earnings ratio and price to free cash flow significantly lower than AMD's. The iPhone company has a proven track record of consistent growth over the long term, with its stock hardly ever seeing dramatic peaks and valleys.
For instance, amid 2022's economic downturn, Apple shares declined about 27%. Meanwhile, the same 12 months saw AMD's shares plunge 55% as its business proved more vulnerable in the challenging year.
Apple's reputation for consistent growth and almost unrivaled brand loyalty makes it the better and more reliable buy.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 26, 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a result, companies pushing these markets forward, such as Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD), are increasingly attractive investments. Using Apple products has become almost a status symbol in many countries, increasing demand and allowing the company to deliver consistent revenue growth despite its prices being on the higher end of the market. If future generations of the device can launch at more competitive pricing, iPhone users could significantly boost Apple's market share in this high-growth sector.
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As a result, companies pushing these markets forward, such as Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD), are increasingly attractive investments. The company is home to a diverse line of chips, including graphics processing units (GPUs), data processing units (DPUs), and central processing units (CPUs), making it one of the few companies producing the hardware necessary to run and develop AI models. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, and Nvidia.
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As a result, companies pushing these markets forward, such as Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD), are increasingly attractive investments. Using Apple products has become almost a status symbol in many countries, increasing demand and allowing the company to deliver consistent revenue growth despite its prices being on the higher end of the market. The company is home to a diverse line of chips, including graphics processing units (GPUs), data processing units (DPUs), and central processing units (CPUs), making it one of the few companies producing the hardware necessary to run and develop AI models.
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As a result, companies pushing these markets forward, such as Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD), are increasingly attractive investments. Apple is a compelling buy with its dominance in consumer tech. Is Apple or AMD the better buy?
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15141.0
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2023-06-29 00:00:00 UTC
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US STOCKS-Futures edge higher as banks rise after stress test results
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https://www.nasdaq.com/articles/us-stocks-futures-edge-higher-as-banks-rise-after-stress-test-results-0
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By Sruthi Shankar and Johann M Cherian
June 29 (Reuters) - U.S. stock index futures edged higher on Thursday, as bank stocks rose after major lenders cleared the Federal Reserve's annual health test, while megacap stocks extended gains as investors shrugged off hawkish messages from the central bank chief.
Shares of Bank of America BAC.N, JPMorgan Chase JPM.N, Goldman Sachs GS.N and Wells Fargo WFC.N rose more than 1% in premarket trading after the banks sailed through the Fed's annual test on Wednesday, showing they have enough capital to weather a severe economic slump.
Bank of New York Mellon BK.N and Charles Schwab SCHW.K rose almost 2%.
"The market is getting a sense of relief because the tests are critical. The banks passing with flying colors in what would be near depression conditions tells us that the fears regarding banks were probably exaggerated," said Thomas Hayes, chairman at Great Hill Capital.
The S&P 500 and Dow closed lower on Wednesday after Fed Chair Jerome Powell said he did not see inflation falling to the central bank's target rate "this year or next year" and that most of the policymakers expect the central bank will need to raise interest rates at least twice more by the year end.
Following the hawkish views, traders were pricing in an 81.8% chance the Fed would hike interest rates by 25 basis point to 5.25%-5.50% range in its July meeting, according to CME Group's Fedwatch tool, up from 74.4% a week ago.
"Economic data continues to beat on most fronts and it's hard to see a scenario where one or two hikes would derail the economy. But the odds of the hikes are much less than Powell is projecting so tech stocks are benefiting," said Hayes.
Apple AAPL.O inched 0.3% higher after closing at a record high on Thursday and edging closer to a $3 trillion market capitalization.
Shares of other high-growth companies such as Tesla TSLA.O and Nvidia NVDA.O rose more than 1% each.
Investors are awaiting fresh data including the final reading of first-quarter U.S. GDP and weekly jobless claims, due at 8:30 a.m. ET, to gauge the outlook for interest rates.
Investors will also parse the speeches by Powell and Atlanta Fed President Raphael Bostic during the session.
The Personal Consumption Expenditure index (PCE), the Fed's preferred inflation gauge, for May will be released on Friday. Economists polled by Reuters expect core rates to remain steady at 4.7%.
At 7:35 a.m. ET, Dow e-minis 1YMcv1 were up 110 points, or 0.32%, S&P 500 e-minis EScv1 were up 14 points, or 0.32%, and Nasdaq 100 e-minis NQcv1 were up 58.75 points, or 0.39%.
Micron Technology MU.O rose 3.3% after the chipmaker beat estimates for third-quarter results, powered by demand for its memory chips.
Occidental Petroleum OXY.N advanced 1.3% after Berkshire Hathaway Inc BRKa.N said it added more shares of the oil firm, boosting its stake to above 25%.
Salesforce CRM.N inched up 0.6% after the software firm said it will invest $4 billion in its UK business in the next five years on Artificial Intelligence innovation.
(Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru; Editing by Shinjini Ganguli)
((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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Apple AAPL.O inched 0.3% higher after closing at a record high on Thursday and edging closer to a $3 trillion market capitalization. Following the hawkish views, traders were pricing in an 81.8% chance the Fed would hike interest rates by 25 basis point to 5.25%-5.50% range in its July meeting, according to CME Group's Fedwatch tool, up from 74.4% a week ago. Investors are awaiting fresh data including the final reading of first-quarter U.S. GDP and weekly jobless claims, due at 8:30 a.m.
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Apple AAPL.O inched 0.3% higher after closing at a record high on Thursday and edging closer to a $3 trillion market capitalization. By Sruthi Shankar and Johann M Cherian June 29 (Reuters) - U.S. stock index futures edged higher on Thursday, as bank stocks rose after major lenders cleared the Federal Reserve's annual health test, while megacap stocks extended gains as investors shrugged off hawkish messages from the central bank chief. Following the hawkish views, traders were pricing in an 81.8% chance the Fed would hike interest rates by 25 basis point to 5.25%-5.50% range in its July meeting, according to CME Group's Fedwatch tool, up from 74.4% a week ago.
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Apple AAPL.O inched 0.3% higher after closing at a record high on Thursday and edging closer to a $3 trillion market capitalization. By Sruthi Shankar and Johann M Cherian June 29 (Reuters) - U.S. stock index futures edged higher on Thursday, as bank stocks rose after major lenders cleared the Federal Reserve's annual health test, while megacap stocks extended gains as investors shrugged off hawkish messages from the central bank chief. Shares of Bank of America BAC.N, JPMorgan Chase JPM.N, Goldman Sachs GS.N and Wells Fargo WFC.N rose more than 1% in premarket trading after the banks sailed through the Fed's annual test on Wednesday, showing they have enough capital to weather a severe economic slump.
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Apple AAPL.O inched 0.3% higher after closing at a record high on Thursday and edging closer to a $3 trillion market capitalization. By Sruthi Shankar and Johann M Cherian June 29 (Reuters) - U.S. stock index futures edged higher on Thursday, as bank stocks rose after major lenders cleared the Federal Reserve's annual health test, while megacap stocks extended gains as investors shrugged off hawkish messages from the central bank chief. The S&P 500 and Dow closed lower on Wednesday after Fed Chair Jerome Powell said he did not see inflation falling to the central bank's target rate "this year or next year" and that most of the policymakers expect the central bank will need to raise interest rates at least twice more by the year end.
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15142.0
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2023-06-29 00:00:00 UTC
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TSMC sending more workers to speed up building of new Arizona plant
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AAPL
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https://www.nasdaq.com/articles/tsmc-sending-more-workers-to-speed-up-building-of-new-arizona-plant
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TAIPEI, June 29 (Reuters) - Taiwanese chipmaker TSMC 2330.TWTSM.N said on Thursday it is sending more workers from Taiwan to the U.S. state of Arizona to help build a massive $40 billion factory to ensure its "fast ramp up".
The first Arizona chip fabrication facility, or fab, is scheduled to be operational by 2024. A second facility nearby that is expected to make 3 nanometre chips - the most advanced currently in production - is due to be up and running by 2026.
TSMC did not disclose how many workers from Taiwan are currently in Arizona. The additional number who will be going has yet to be determined and will only be in the state for a limited time, it said in a statement.
"Given we are now in a critical phase handling all of the most advanced and dedicated equipment in a sophisticated facility, we require skilled expertise," it said.
The additions will not impact the 12,000 workers currently on-site every day or U.S.-based hiring, it added.
Taiwan Semiconductor Manufacturing Co Ltd, as the company is formally called, is the world's largest contract chip maker and a major supplier to global tech firms including Apple Inc AAPL.O and Nvidia Corp NVDA.O.
U.S. President Joe Biden has sought to boost domestic semiconductor production after the COVID-19 pandemic caused supply chain problems that led to shortages of chips for vehicles and many other items.
TSMC's investment is a key part of that ambition, and Biden visited the construction site in December.
While TSMC has said the bulk of its manufacturing, especially of the most advanced chips, will remain in Taiwan, it is also building a plant in Japan and considering another one in Germany.
TSMC's Taipei-listed shares closed down 0.2% on Thursday, underperforming the broader market .TWII which ended flat. The company's shares have risen 28% so far this year.
(Reporting by Ben Blanchard; Editing by Edwina Gibbs)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd, as the company is formally called, is the world's largest contract chip maker and a major supplier to global tech firms including Apple Inc AAPL.O and Nvidia Corp NVDA.O. TAIPEI, June 29 (Reuters) - Taiwanese chipmaker TSMC 2330.TWTSM.N said on Thursday it is sending more workers from Taiwan to the U.S. state of Arizona to help build a massive $40 billion factory to ensure its "fast ramp up". U.S. President Joe Biden has sought to boost domestic semiconductor production after the COVID-19 pandemic caused supply chain problems that led to shortages of chips for vehicles and many other items.
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Taiwan Semiconductor Manufacturing Co Ltd, as the company is formally called, is the world's largest contract chip maker and a major supplier to global tech firms including Apple Inc AAPL.O and Nvidia Corp NVDA.O. TAIPEI, June 29 (Reuters) - Taiwanese chipmaker TSMC 2330.TWTSM.N said on Thursday it is sending more workers from Taiwan to the U.S. state of Arizona to help build a massive $40 billion factory to ensure its "fast ramp up". The first Arizona chip fabrication facility, or fab, is scheduled to be operational by 2024.
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Taiwan Semiconductor Manufacturing Co Ltd, as the company is formally called, is the world's largest contract chip maker and a major supplier to global tech firms including Apple Inc AAPL.O and Nvidia Corp NVDA.O. TAIPEI, June 29 (Reuters) - Taiwanese chipmaker TSMC 2330.TWTSM.N said on Thursday it is sending more workers from Taiwan to the U.S. state of Arizona to help build a massive $40 billion factory to ensure its "fast ramp up". While TSMC has said the bulk of its manufacturing, especially of the most advanced chips, will remain in Taiwan, it is also building a plant in Japan and considering another one in Germany.
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Taiwan Semiconductor Manufacturing Co Ltd, as the company is formally called, is the world's largest contract chip maker and a major supplier to global tech firms including Apple Inc AAPL.O and Nvidia Corp NVDA.O. A second facility nearby that is expected to make 3 nanometre chips - the most advanced currently in production - is due to be up and running by 2026. TSMC did not disclose how many workers from Taiwan are currently in Arizona.
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15143.0
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2023-06-28 00:00:00 UTC
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ANALYSIS-India's aerospace suppliers see upside in parts-making from record jet orders
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https://www.nasdaq.com/articles/analysis-indias-aerospace-suppliers-see-upside-in-parts-making-from-record-jet-orders-0
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By Allison Lampert and Aditi Shah
PARIS/DELHI, June 28 (Reuters) - Indian aerospace suppliers see record jet orders by the country's top two carriers boosting domestic parts manufacturing and aircraft repairs, but argue the government must do more to support production.
Rising traffic, a search for alternative sourcing to China and orders this month from Air India and IndiGo for nearly 1,000 jets combined have made India a key market for aerospace.
Now, small and medium suppliers want to capitalize on that to drive more sales of locally sourced parts, they told Reuters on the sidelines of the Paris Airshow last week.
"Today we are going to be the largest purchaser of planes in the world," said Shekhar Sardessai, managing director at Kineco Group, a supplier in the western state of Goa, referring to India.
"We deserve a piece of that pie," added Sardessai, whose company makes engine and plane interior parts.
While French engine maker Safran SAF.PA has plans for an engine repair and overhaul facility in India, about 90% of the country's aircraft maintenance and repair activity occurs outside its borders, according to consultancy Deloitte.
The Indian repair and overhaul industry is expected to grow to $4 billion by 2031, up from $1.7 billion in 2021, Deloitte said.
India's civil aviation ministry expects the orders to boost aerospace manufacturing in the country, but it cannot mandate local production since the orders do not have requirements for local production like defense deals, a senior government official told Reuters.
Deloitte India partner Alaric Diniz expects parts of the commercial aviation supply chain to move to India as plane and engine makers look to avoid disruptions seen in recent years. While he could not estimate how much small suppliers will benefit, any subsidy or incentive could be helpful.
AEROSPACE INCENTIVES
Some suppliers like Sardessai and Aravind Melligeri, CEO of aerospace-parts producer Aequs, said India should create a production-linked incentive scheme for aerospace as it has done with other sectors.
In 2020, Indian Prime Minister Narendra Modi's government launched a program to encourage companies in 14 sectors including autos to manufacture locally by earmarking 1.97 trillion rupees ($24 billion) in incentives.
It has drawn investment from the likes of Foxconn 2317.TW, which supplies to iPhone maker Apple AAPL.O, and automakers including Japan's Suzuki Motor 7269.T and South Korea's Hyundai Motor 005380.KS have committed to put in money.
Even without incentives, India's growing fleet of aircraft will require more maintenance services.
"If you will have that many planes in India who repairs them?" said Sachin Agarwal, chairman of PTC Industries PCIN.NS, based in the state of Uttar Pradesh. "Every supplier wants to be closer to the customer."
PTC is already taking advantage of global supply-chain demand for alternate sources to Russian-made titanium and Chinese production.
It expects to increase production from 1,500 metric tons of titanium alloy at the end of 2023 to 6,500 metric tons in 2025. PTC is separately expanding capacity of titanium and superalloy castings tenfold by 2025.
"The objective is to set up the capability in India which was missing," Agarwal said.
Since Safran's 2022 announcement, Sardessai has seen an increase in supply enquiries.
The fact that more engines are going to be sold in India drives up the volume of repairs and maintenance which can benefit the local supply chain, said Ankit Patel, director of Ankit Fasteners, which supplies screws and bolts to General Electric GE.N, Airbus AIR.PA and Boeing BA.N from Bengaluru in southern India.
Patel said French suppliers now want to partner with him to gain access to India, a reversal from the years he pursued inroads in Europe.
Melligeri of Aequs wants to be sure demand for Indian-made parts and components will persist once of the buzz of the Paris Airshow fades, after companies like his invest in new capacity.
"I don't want them to come and go," he said, referring to interest in India.
($1 = 81.9830 Indian rupees)
ANALYSIS-Record plane orders raise the stakes in India's aviation boom
New orders and supply chain progress as Paris Airshow grapples with pandemic aftermath
FACTBOX-Aviation emissions targets in focus at Paris Airshow
ANALYSIS-Smaller aerospace suppliers scramble for titanium, workers in shadow of travel boom
'Progress' in supply chain as jet orders rack up at Paris air show
(Reporting by Allison Lampert in Paris and Aditi Shah in Delhi Editing by Ben Klayman and Matthew Lewis)
((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters Messaging: allison.lampert.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has drawn investment from the likes of Foxconn 2317.TW, which supplies to iPhone maker Apple AAPL.O, and automakers including Japan's Suzuki Motor 7269.T and South Korea's Hyundai Motor 005380.KS have committed to put in money. By Allison Lampert and Aditi Shah PARIS/DELHI, June 28 (Reuters) - Indian aerospace suppliers see record jet orders by the country's top two carriers boosting domestic parts manufacturing and aircraft repairs, but argue the government must do more to support production. "Today we are going to be the largest purchaser of planes in the world," said Shekhar Sardessai, managing director at Kineco Group, a supplier in the western state of Goa, referring to India.
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It has drawn investment from the likes of Foxconn 2317.TW, which supplies to iPhone maker Apple AAPL.O, and automakers including Japan's Suzuki Motor 7269.T and South Korea's Hyundai Motor 005380.KS have committed to put in money. By Allison Lampert and Aditi Shah PARIS/DELHI, June 28 (Reuters) - Indian aerospace suppliers see record jet orders by the country's top two carriers boosting domestic parts manufacturing and aircraft repairs, but argue the government must do more to support production. Deloitte India partner Alaric Diniz expects parts of the commercial aviation supply chain to move to India as plane and engine makers look to avoid disruptions seen in recent years.
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It has drawn investment from the likes of Foxconn 2317.TW, which supplies to iPhone maker Apple AAPL.O, and automakers including Japan's Suzuki Motor 7269.T and South Korea's Hyundai Motor 005380.KS have committed to put in money. Deloitte India partner Alaric Diniz expects parts of the commercial aviation supply chain to move to India as plane and engine makers look to avoid disruptions seen in recent years. The fact that more engines are going to be sold in India drives up the volume of repairs and maintenance which can benefit the local supply chain, said Ankit Patel, director of Ankit Fasteners, which supplies screws and bolts to General Electric GE.N, Airbus AIR.PA and Boeing BA.N from Bengaluru in southern India.
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It has drawn investment from the likes of Foxconn 2317.TW, which supplies to iPhone maker Apple AAPL.O, and automakers including Japan's Suzuki Motor 7269.T and South Korea's Hyundai Motor 005380.KS have committed to put in money. While French engine maker Safran SAF.PA has plans for an engine repair and overhaul facility in India, about 90% of the country's aircraft maintenance and repair activity occurs outside its borders, according to consultancy Deloitte. Deloitte India partner Alaric Diniz expects parts of the commercial aviation supply chain to move to India as plane and engine makers look to avoid disruptions seen in recent years.
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15144.0
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2023-06-28 00:00:00 UTC
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S&P 500, Dow decline on worries about more Fed rate hikes
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AAPL
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https://www.nasdaq.com/articles/sp-500-dow-decline-on-worries-about-more-fed-rate-hikes
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By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 28 (Reuters) - The S&P 500 and Dow closed lower on Wednesday on the prospect of further interest rate hikes after U.S. Federal Reserve Chair Jerome Powell said he did not see inflation falling to the central bank's target rate "this year or next year."
At a European Central Bank forum on Wednesday, Powell also said the Fed will likely raise rates further and did not rule out a boost at the next policy meeting scheduled for the end of July.
"The concern is about Powell's comments that we're just not done with the rate hiking cycle, that inflation is still too strong ... the market has to accept that the Fed is not done hiking rates," said Phil Blancato CEO Ladenburg Asset Management adding that Powell is "not wrong."
Blancato also pointed to seasonal trends ahead of the July 4 U.S. Independence Day holiday "after an incredible first six months of the year for growth stocks" and said: "The market's more than happy to take a breather here."
According to preliminary data, the S&P 500 .SPX lost 1.14 points, or 0.02%, to end at 4,377.37 points, while the Nasdaq Composite .IXIC gained 36.08 points, or 0.27%, to 13,591.75. The Dow Jones Industrial Average .DJI fell 63.90 points, or 0.19%, to 33,862.84.
Still, Apple Inc AAPL.O hit an all-time high during Wednesday's session while Tesla TSLA.O Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts.
"The market is very focused on the only real source of growth which is the technology sector and specifically the AI sector, which has raised the valuation of that vector significantly versus the rest of the market," said Michael Green, portfolio manager at Simplify Asset Management.
But chipmaker Nvidia NVDA.O lost ground and was a top drag for the benchmark after the Wall Street Journal reported the United States could impose new curbs on exports of artificial intelligence chips to China.
Wall Street had snapped a losing streak on Tuesday as upbeat economic data eased fears of an imminent U.S. recession, though it bolstered expectations that the Fed could hike rates in July.
Traders now see an 81.8% chance of the Fed hiking interest rates by 25 basis points to a 5.25%-5.50% range in July and expect the central bank to hold rates through the end of 2023, according to CMEGroup's Fedwatch tool.
Investors are awaiting the Personal Consumption Expenditures (PCE) index reading, the Fed's favored inflation gauge, initial jobless claims data and the final reading of first-quarter GDP later this week to assess the state of the U.S. economy.
The S&P banks index .SPXBKslipped ahead of the Fed's annual stress test results after markets close on Wednesday. The test helps determine how much capital banks need to keep in reserve and how much they have for stock buybacks and dividends.
Netflix Inc NFLX.O, also one of the S&P's biggest boosts, climbed after Oppenheimer raised it price target.
General Mills GIS.N slid after the packaged food maker forecast full-year profit below analysts' estimates.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi and David Gregorio)
((sinead.carew@thomsonreuters.com, +1 332-219-1897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Still, Apple Inc AAPL.O hit an all-time high during Wednesday's session while Tesla TSLA.O Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts. At a European Central Bank forum on Wednesday, Powell also said the Fed will likely raise rates further and did not rule out a boost at the next policy meeting scheduled for the end of July. But chipmaker Nvidia NVDA.O lost ground and was a top drag for the benchmark after the Wall Street Journal reported the United States could impose new curbs on exports of artificial intelligence chips to China.
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Still, Apple Inc AAPL.O hit an all-time high during Wednesday's session while Tesla TSLA.O Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The S&P 500 and Dow closed lower on Wednesday on the prospect of further interest rate hikes after U.S. Federal Reserve Chair Jerome Powell said he did not see inflation falling to the central bank's target rate "this year or next year." The S&P banks index .SPXBKslipped ahead of the Fed's annual stress test results after markets close on Wednesday.
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Still, Apple Inc AAPL.O hit an all-time high during Wednesday's session while Tesla TSLA.O Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The S&P 500 and Dow closed lower on Wednesday on the prospect of further interest rate hikes after U.S. Federal Reserve Chair Jerome Powell said he did not see inflation falling to the central bank's target rate "this year or next year." "The concern is about Powell's comments that we're just not done with the rate hiking cycle, that inflation is still too strong ... the market has to accept that the Fed is not done hiking rates," said Phil Blancato CEO Ladenburg Asset Management adding that Powell is "not wrong."
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Still, Apple Inc AAPL.O hit an all-time high during Wednesday's session while Tesla TSLA.O Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The S&P 500 and Dow closed lower on Wednesday on the prospect of further interest rate hikes after U.S. Federal Reserve Chair Jerome Powell said he did not see inflation falling to the central bank's target rate "this year or next year." According to preliminary data, the S&P 500 .SPX lost 1.14 points, or 0.02%, to end at 4,377.37 points, while the Nasdaq Composite .IXIC gained 36.08 points, or 0.27%, to 13,591.75.
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2023-06-28 00:00:00 UTC
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Looking for a Market-Beating Growth ETF? Check Out VUG
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https://www.nasdaq.com/articles/looking-for-a-market-beating-growth-etf-check-out-vug
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Led by a resurgent tech sector, growth stocks are back in a big way in 2023, and the popular Vanguard Growth ETF (NYSEARCA:VUG) is up 31.7% year-to-date. So, what is VUG, and could it be a fit for your portfolio?
What Does the VUG ETF Do?
VUG is the growth ETF from the fund and ETF giant Vanguard, and it's a popular one, growing to almost $90 billion in assets under management (AUM) since its inception in 2004. In fact, VUG is the 11th-largest ETF in the world by AUM, and if you remove two bond funds from the equation, it comes in at number nine. The ETF seeks to track the results of the CRSP US Large Cap Growth Index.
VUG's Portfolio
VUG is fairly diversified, with 241 holdings, although note that its top 10 holdings account for over 50% of assets. In fact, the top two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to account for over 25% of the fund. Below, you can get an overview of VUG’s top holdings using TipRanks’ holdings tool.
As a growth ETF, VUG’s top holdings are dominated by the large-cap tech stocks that have propelled the market higher this year, including the aforementioned Apple and Microsoft, plus Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Tesla (NASDAQ:TSLA).
However, VUG isn’t limited to mega-cap tech. Beyond these names, healthcare giant Eli Lilly (NYSE:LLY) and payment networks Visa (NYSE:V) and Mastercard (NASDAQ:MA) also occupy spots within the top 10. Other notable holdings include more blue chip, large-cap growth stocks like Meta Platforms (NASDAQ:META), Thermo Fisher Scientific (NYSE:TMO), Home Depot (NYSE:HD), Costco (NASDAQ:COST), and McDonald's (NYSE:MCD).
VUG’s top 10 holdings feature a solid collection of Smart Scores. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A Smart Score of 8 or higher is equivalent to an Outperform rating. As you can see in the table above, six out of VUG’s top 10 holdings feature Smart Scores of 8 or better.
VUG itself features an impressive ETF Smart Score of 8.
Is VUG Stock a Buy, According to Analysts?
Turning to Wall Street, VUG has a Moderate Buy consensus rating, as 66.9% of analyst ratings are Buys, 29.7% are Holds, and 3.4% are Sells. At $298.07, the average VUG stock price target implies 6.9% upside potential.
A Star Performer
VUG is up 31.7% year-to-date, as mentioned earlier, and 24% over the past year, but it has been providing strong returns for its investors for a lot longer than that. Over the past three years, VUG has returned 11.8% on an annualized basis. Over the past five years, VUG has provided even better total returns of 13.2% on an annualized basis.
Zooming all the way out to 10 years, VUG has returned a stellar 13.9% on an annualized basis. Going all the way back to its inception in 2004, VUG’s total annualized return is impressively still in the double digits at 10.2%. Double-digit annualized returns over a long-term time horizon like this are a great way to build long-term wealth.
Furthermore, VUG is one of the rare ETFs that can say it has "beaten the market" over an extended time frame. Let’s use its Vanguard counterpart, the Vanguard S&P 500 ETF (NYSEARCA:VOO), as a stand-in for the broader market and the S&P 500 specifically.
Over a three-year time horizon, VOO’s annualized total return of 12.8% beats VUG’s 11.8%. However, when the time frame is extended to five years, VUG has the edge with a 13.2% return to VOO’s 11% return. Going out 10 years, VUG’s 13.9% annualized return also beats VOO’s 11.9% return.
Below, you can check out a comparison of VUG and VOO created using TipRanks' ETF Comparison Tool, which allows investors to compare up to 20 ETFs at a time across a variety of customizable factors.
VOO’s long-term double-digit annualized returns are stellar, so this sets a high bar for beating the market, but VUG is an ETF that can make this claim.
Minimal Fees
Despite this excellent long-term track record, VUG isn’t charging investors an arm and a leg for this performance. The ETF’s expense ratio of just 0.04% is very investor-friendly. This means that an investor putting $10,000 into VUG would pay just a negligible $4 in fees in year one of investing in the fund. After three years, this same investor would pay just $10 in fees, and after 10 years, their total in fees paid would be just $39.
You can essentially gain exposure to hundreds of the market's top growth stocks for 10 years for less than the price of a dinner for two at most restaurants nowadays, which is a good deal in my book. Minimal fees like this can help investors to preserve the principal of their investment portfolios and make a big difference over the long term, as high fees can really add up over time.
Investor Takeaway
Note that VUG is also a dividend payer. While its current dividend yield of just 0.6% isn't much to write home about in and of itself, it all adds up to help add to total returns over time. Furthermore, VUG has a proud history as a dividend payer, having made dividend payments to its holders for 18 years in a row going back to its inception in 2004.
With a very attractive expense ratio, a strong portfolio, and an excellent long-term track record, VUG is the type of ETF that investors can feel confident about making a cornerstone of their portfolios for the long term. Since VUG is up considerably this year, it's likely that there will be pullbacks at some point. Still, this ETF has proven itself as a long-term winner, so investors can consider utilizing these pullbacks to dollar-cost average into a position over time to lower their cost basis.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, the top two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to account for over 25% of the fund. VOO’s long-term double-digit annualized returns are stellar, so this sets a high bar for beating the market, but VUG is an ETF that can make this claim. You can essentially gain exposure to hundreds of the market's top growth stocks for 10 years for less than the price of a dinner for two at most restaurants nowadays, which is a good deal in my book.
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In fact, the top two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to account for over 25% of the fund. Other notable holdings include more blue chip, large-cap growth stocks like Meta Platforms (NASDAQ:META), Thermo Fisher Scientific (NYSE:TMO), Home Depot (NYSE:HD), Costco (NASDAQ:COST), and McDonald's (NYSE:MCD). Over a three-year time horizon, VOO’s annualized total return of 12.8% beats VUG’s 11.8%.
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In fact, the top two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to account for over 25% of the fund. VUG's Portfolio VUG is fairly diversified, with 241 holdings, although note that its top 10 holdings account for over 50% of assets. As a growth ETF, VUG’s top holdings are dominated by the large-cap tech stocks that have propelled the market higher this year, including the aforementioned Apple and Microsoft, plus Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Tesla (NASDAQ:TSLA).
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In fact, the top two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to account for over 25% of the fund. What Does the VUG ETF Do? VUG's Portfolio VUG is fairly diversified, with 241 holdings, although note that its top 10 holdings account for over 50% of assets.
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15146.0
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2023-06-28 00:00:00 UTC
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Berkshire Hathaway boosts stake in Occidental Petroleum to about 25%
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AAPL
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https://www.nasdaq.com/articles/berkshire-hathaway-boosts-stake-in-occidental-petroleum-to-about-25
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nan
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June 28 (Reuters) - Berkshire Hathaway Inc BRKa.N said on Wednesday it has acquired more shares of Occidental Petroleum Corp OXY.N, boosting its stake in the oil company to about 25%.
The conglomerate, controlled by billionaire Warren Buffett, said in a regulatory filing that it paid about $122.1 million for 2.14 million Occidental shares between June 26 and June 28.
(Reporting by Akanksha Khushi and Jonathan Stempel in Bengaluru; Editing by Sherry Jacob-Phillips)
((Akanksha.Khushi@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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June 28 (Reuters) - Berkshire Hathaway Inc BRKa.N said on Wednesday it has acquired more shares of Occidental Petroleum Corp OXY.N, boosting its stake in the oil company to about 25%. The conglomerate, controlled by billionaire Warren Buffett, said in a regulatory filing that it paid about $122.1 million for 2.14 million Occidental shares between June 26 and June 28. (Reporting by Akanksha Khushi and Jonathan Stempel in Bengaluru; Editing by Sherry Jacob-Phillips) ((Akanksha.Khushi@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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June 28 (Reuters) - Berkshire Hathaway Inc BRKa.N said on Wednesday it has acquired more shares of Occidental Petroleum Corp OXY.N, boosting its stake in the oil company to about 25%. The conglomerate, controlled by billionaire Warren Buffett, said in a regulatory filing that it paid about $122.1 million for 2.14 million Occidental shares between June 26 and June 28. (Reporting by Akanksha Khushi and Jonathan Stempel in Bengaluru; Editing by Sherry Jacob-Phillips) ((Akanksha.Khushi@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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June 28 (Reuters) - Berkshire Hathaway Inc BRKa.N said on Wednesday it has acquired more shares of Occidental Petroleum Corp OXY.N, boosting its stake in the oil company to about 25%. The conglomerate, controlled by billionaire Warren Buffett, said in a regulatory filing that it paid about $122.1 million for 2.14 million Occidental shares between June 26 and June 28. (Reporting by Akanksha Khushi and Jonathan Stempel in Bengaluru; Editing by Sherry Jacob-Phillips) ((Akanksha.Khushi@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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June 28 (Reuters) - Berkshire Hathaway Inc BRKa.N said on Wednesday it has acquired more shares of Occidental Petroleum Corp OXY.N, boosting its stake in the oil company to about 25%. The conglomerate, controlled by billionaire Warren Buffett, said in a regulatory filing that it paid about $122.1 million for 2.14 million Occidental shares between June 26 and June 28. (Reporting by Akanksha Khushi and Jonathan Stempel in Bengaluru; Editing by Sherry Jacob-Phillips) ((Akanksha.Khushi@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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15147.0
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2023-06-28 00:00:00 UTC
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FOCUS-Brands focus on stories in refining China livestreaming to boost profits
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AAPL
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https://www.nasdaq.com/articles/focus-brands-focus-on-stories-in-refining-china-livestreaming-to-boost-profits
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nan
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nan
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By Casey Hall
SHANGHAI, June 29 (Reuters) - When tech giant Apple AAPL.O joined China's livestreaming frenzy, a major driving force of the e-commerce boom in the world's second biggest economy, it launched without deep discounts or a celebrity host to pull millions of viewers.
Yet Apple's show, hosted by product experts offering tips on making movies with iPhones or using the Apple Watch as a workout aid, drew 300,000 likes and more than 1.3 million viewers within an hour in May.
Apple's move illustrates how livestreaming is evolving in China from an initial model of massive sales via big discounts, as more big brands seek greater control of a process rendered costly by a fragmenting market and growing use of superhosts.
"You have to move towards content instead of promotion," said William Lau, chief executive of multibrand beauty retailer Bonnie and Clyde.
"When you focus on building content instead of offering 40% off, you actually get more resonance with the consumer and you also get follow-up in terms of return sales."
Livestreaming generated sales of $480 billion in China last year that are likely to jump 30% this year, says research firm eMarketer, even in a difficult economy, showing the industry's resilience.
Stellar growth boosted by the COVID-19 pandemic saw the industry employ more than 1.23 million livestream hosts by 2020, says researcher iResearch, along with numerous accompanying livestream-related training academies and agencies.
One of China's best known hosts is Li Jiaqi, the so-called "lipstick brother," who sells everything from toilet paper to home appliances on a show offering viewers the best discounts via Alibaba's 9988.HK Tmall.
While Tmall and Li Jiaqi remain powerful, brands moving away from that strategy are cutting reliance on massive discounts and even his famous exhortation, "Oh my god! Buy it!" in favour of a focus on storytelling.
"Brands are building up their own channels as opposed to paying these other guys 40% to 50% of the revenue from a livestream," said Jacob Cooke, co-founder and chief executive of Beijing e-commerce consultants WPIC Marketing + Technologies.
"That's just unsustainable," he said, adding that a livestream with Li cost about 30 times more than one with hosts from China's professional agencies that recruit and train livestreamers before connecting them with brand clients.
"If the product fits the character of the host, the consumer will tend to believe, 'Oh, this is the product you use,'" said Zephyr Liu, Asia-Pacific head of women's apparel brand Ba&sh.
"So they see someone recommending a product from the bottom of their heart instead of just selling."
Liu once thought her brand's price point of about 2,000 yuan ($277) for its dresses made it incompatible with bargain-heavy livestreaming.
But after selling for six months on Douyin, the Chinese version of TikTok, using hosts recruited via an agency, as well as smaller-scale influencers, Liu has seen livestream hosts benefit her sales, even for full-price pieces.
Such efforts succeed, she said, by letting audiences communicate directly with the host during broadcasts to get immediate answers to queries on fit, colour and styling.
FRAGMENTATION
"Brands are optimistic and open-minded about livestreaming," said Shining Li, vice president of livestream agency Romomo.
"It's important to build a solid livestreaming channel because it's an important sales and communications tool."
An arm of brand partner Buy Quickly, the agency helps link companies such as Lancome, Under Armor UAA.N and Hugo Boss BOSSn.DE with a stable of more than 150 full-time hosts.
As an omnichannel brand partner, Buy Quickly also offers services such as operating online stores and shooting advertising campaigns for global brands.
But growing industry fragmentation leaves more platforms and hosts jostling for eyeballs.
The dominance of pureplay sales platforms such as Alibaba's Tmall and Taobao, along with JD.com 9618.HK, is increasingly challenged by entertainment and information-led platforms such as Douyin and Xiaohongshu.
Consumers use the latter, an Instagram-like app, to research everything from hotel recommendations to manicure inspiration.
Regulatory scrutiny has also had an impact.
While Li Jiaqi and fellow superhost Viya once garnered about half of livestreaming sales on Alibaba's platforms, tax scandals and a poorly-timed broadcast featuring a tank-shaped cake have led to both being taken off air at different times.
With Viya yet to return, such episodes demonstrate the risk of relying on just one or two hosts.
Superhosts might have the biggest reach, but that may matter less than reaching the right people, said Lexie Moris, China vice president at activewear brand Sweaty Betty.
"There is a whole industry of livestreamers that have a tiny audience, compared to the biggest livestreamers, but one which is targeted and can convert pretty well," she said.
($1=7.2119 Chinese yuan renminbi)
Livestreaming e-commerce sales in China https://tmsnrt.rs/3Jy9MpO
(Reporting by Casey Hall; Editing by Miyoung Kim and Clarence Fernandez)
((Casey.Hall@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 Casey Hall SHANGHAI, June 29 (Reuters) - When tech giant Apple AAPL.O joined China's livestreaming frenzy, a major driving force of the e-commerce boom in the world's second biggest economy, it launched without deep discounts or a celebrity host to pull millions of viewers. "Brands are building up their own channels as opposed to paying these other guys 40% to 50% of the revenue from a livestream," said Jacob Cooke, co-founder and chief executive of Beijing e-commerce consultants WPIC Marketing + Technologies. While Li Jiaqi and fellow superhost Viya once garnered about half of livestreaming sales on Alibaba's platforms, tax scandals and a poorly-timed broadcast featuring a tank-shaped cake have led to both being taken off air at different times.
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By Casey Hall SHANGHAI, June 29 (Reuters) - When tech giant Apple AAPL.O joined China's livestreaming frenzy, a major driving force of the e-commerce boom in the world's second biggest economy, it launched without deep discounts or a celebrity host to pull millions of viewers. An arm of brand partner Buy Quickly, the agency helps link companies such as Lancome, Under Armor UAA.N and Hugo Boss BOSSn.DE with a stable of more than 150 full-time hosts. As an omnichannel brand partner, Buy Quickly also offers services such as operating online stores and shooting advertising campaigns for global brands.
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By Casey Hall SHANGHAI, June 29 (Reuters) - When tech giant Apple AAPL.O joined China's livestreaming frenzy, a major driving force of the e-commerce boom in the world's second biggest economy, it launched without deep discounts or a celebrity host to pull millions of viewers. Apple's move illustrates how livestreaming is evolving in China from an initial model of massive sales via big discounts, as more big brands seek greater control of a process rendered costly by a fragmenting market and growing use of superhosts. "That's just unsustainable," he said, adding that a livestream with Li cost about 30 times more than one with hosts from China's professional agencies that recruit and train livestreamers before connecting them with brand clients.
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By Casey Hall SHANGHAI, June 29 (Reuters) - When tech giant Apple AAPL.O joined China's livestreaming frenzy, a major driving force of the e-commerce boom in the world's second biggest economy, it launched without deep discounts or a celebrity host to pull millions of viewers. "When you focus on building content instead of offering 40% off, you actually get more resonance with the consumer and you also get follow-up in terms of return sales." "That's just unsustainable," he said, adding that a livestream with Li cost about 30 times more than one with hosts from China's professional agencies that recruit and train livestreamers before connecting them with brand clients.
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15148.0
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2023-06-28 00:00:00 UTC
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Apple stock hits record, on cusp of $3 trillion market value
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AAPL
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https://www.nasdaq.com/articles/apple-stock-hits-record-on-cusp-of-%243-trillion-market-value
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nan
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nan
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By Akash Sriram and Noel Randewich
June 28 (Reuters) - Apple's AAPL.O stock climbed to a record high close on Wednesday and was on the cusp of a $3 trillion market capitalization.
The iPhone maker's stock rose 0.6% to end the day at $189.25, putting Apple's market value at $2.98 trillion, according to Refinitiv data. It was the second straight record high close for Apple's shares.
Apple has yet to end a trading session with a stock market value above $3 trillion. It briefly peaked above $3 trillion in intra-day trading on Jan. 3, 2022 before closing the session just below that mark.
The latest gains in shares of the world's most valuable company follow strong rebounds this year from several of Wall Street's technology-related heavyweights, fueled by bets that the Federal Reserve is nearing the end of its campaign of U.S. interest rate hikes, and by optimism about the potential for artificial intelligence.
"There hasn't really been any new information fundamentally that would be supportive of the stock move," said Thomas Martin, Senior Portfolio Manager at Globalt Investments. "What you're left with is, you know, the market itself."
Apple has jumped 46% in 2023, while Nvidia NVDA.O has surged 185%, making it the first chipmaker with a stock market value over $1 trillion. Tesla TSLA.O and Meta Platforms META.O have more than doubled this year, and Microsoft MSFT.O has added 40%.
Apple's approach toward its $3 trillion milestone follows the June 5 launch of a pricey augmented-reality headset, its riskiest bet since the introduction of the iPhone more than a decade ago.
As well, Apple's most recent quarterly report in May showed a drop in revenue and profits, but still beat analysts' expectations. Along with a steady track record of stock buybacks, those financial results reinforced its reputation among investors as a safe investment at a time of global economic uncertainty.
Recent gains in Apple's shares have outpaced analysts' estimates for the company's future earnings. The stock is now trading at about 29 times expected earnings, its highest multiple since February 2022, according to Refinitiv data.
Apple's ascent to $3 trillion https://tmsnrt.rs/443myVh
(Reporting by Noel Randewich; Editing by David Gregorio)
((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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By Akash Sriram and Noel Randewich June 28 (Reuters) - Apple's AAPL.O stock climbed to a record high close on Wednesday and was on the cusp of a $3 trillion market capitalization. The latest gains in shares of the world's most valuable company follow strong rebounds this year from several of Wall Street's technology-related heavyweights, fueled by bets that the Federal Reserve is nearing the end of its campaign of U.S. interest rate hikes, and by optimism about the potential for artificial intelligence. Along with a steady track record of stock buybacks, those financial results reinforced its reputation among investors as a safe investment at a time of global economic uncertainty.
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By Akash Sriram and Noel Randewich June 28 (Reuters) - Apple's AAPL.O stock climbed to a record high close on Wednesday and was on the cusp of a $3 trillion market capitalization. It was the second straight record high close for Apple's shares. Recent gains in Apple's shares have outpaced analysts' estimates for the company's future earnings.
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By Akash Sriram and Noel Randewich June 28 (Reuters) - Apple's AAPL.O stock climbed to a record high close on Wednesday and was on the cusp of a $3 trillion market capitalization. The iPhone maker's stock rose 0.6% to end the day at $189.25, putting Apple's market value at $2.98 trillion, according to Refinitiv data. Apple has yet to end a trading session with a stock market value above $3 trillion.
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By Akash Sriram and Noel Randewich June 28 (Reuters) - Apple's AAPL.O stock climbed to a record high close on Wednesday and was on the cusp of a $3 trillion market capitalization. Apple has yet to end a trading session with a stock market value above $3 trillion. Recent gains in Apple's shares have outpaced analysts' estimates for the company's future earnings.
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15149.0
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2023-06-28 00:00:00 UTC
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US STOCKS-Nasdaq edges up, S&P 500, Dow decline slightly; more Fed rate hikes in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-edges-up-sp-500-dow-decline-slightly-more-fed-rate-hikes-in-focus
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Apple registers record closing high for second straight day
Chip stocks close lower but above from session low
Annual banks stress test results due later
Fed's Powell flags more rate hikes
Dow off 0.22%, S&P down 0.04%, Nasdaq climbs 0.27%
Updated with final closing prices, adds commentary
By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 28 (Reuters) - The Nasdaq managed a small gain on Wednesday with support from megacap stocks while the S&P 500 and the Dow closed lower after U.S. Federal Reserve Chair Jerome Powell signaled more rate hikes and said he did not see inflation falling to the central bank's target rate "this year or next year."
At a European Central Bank forum on Wednesday, Powell also said the Fed will likely raise rates further and did not rule out a boost at the next policy meeting scheduled for late July.
But while the S&P spent most of the session in the red, investors appeared to take Powell's comments in stride because of signs of strength in the economy, according to Quincy Krosby, Chief Global Strategist for LPL Financial.
"A stronger underpinning for the economy suggests that a recession is still not expected in the immediate future, and given the resiliency in the labor market, the economy can probably digest a 25 basis point rate hike," at the Federal Open Market Committee's next meeting, said Krosby.
With inflation still high, Phil Blancato CEO Ladenburg Asset Management said Powell is "not wrong" to keep policy tight. He also noted seasonal trends with the July 4 U.S. Independence Day holiday coming up "after an incredible first six months of the year for growth stocks."
"The market's more than happy to take a breather here," he said. Traders now see an 79.4% chance of the Fed hiking interest rates by 25 basis points to a 5.25%-5.50% range in July and expect the central bank to hold rates through the end of 2023, according to CMEGroup's Fedwatch tool.
The Dow Jones Industrial Average .DJI fell 74.08 points, or 0.22%, to 33,852.66, the S&P 500 .SPX lost 1.55 points, or 0.04%, to 4,376.86 and the Nasdaq Composite .IXIC added 36.08 points, or 0.27%, to 13,591.75.
Apple Inc AAPL.O hit an all-time high during the session and registered a record closing high for the second session in a row. Tesla TSLA.O, Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts.
But chipmaker Nvidia NVDA.O, a favorite among investors looking to bet on artificial intelligence, closed down 1.8% and was the benchmark's top drag after the Wall Street Journal reported the United States could impose new curbs on exports of AI chips to China.
Four of the S&P 500's 11 major sectors advanced, with energy .SPNY up 1% while communications services .SPLRCL added 0.8%. Leading decliners was defensive utilities .SPLRCU, which ended down 1.5%.
LPL's Krosby also welcomed an advance in the Russell 2000 .RUT small cap stock index, which added 0.5% for its third straight day of gains, in a market that has depended heavily on megacaps for gains this year.
"With the Russell's gains, concerns over a top heavy, narrow market are somewhat assuaged as small and mid-sized companies are enjoying investor interest," she said.
Investors await the Personal Consumption Expenditures (PCE) index reading, the Fed's favored inflation gauge, initial jobless claims data and the final reading of first-quarter GDP later this week to assess the state of the U.S. economy.
The S&P banks index .SPXBKslipped 0.5% ahead of the Fed's annual stress test results after markets close on Wednesday. The test helps determine how much capital banks need to keep in reserve and how much they have for stock buybacks and dividends.
Netflix Inc NFLX.O, also one of the S&P's biggest boosts, climbed 3% after Oppenheimer raised it price target.
General Mills GIS.Nsank 5% after the packaged food maker forecast full-year profit below analysts' estimates.
Advancing issues outnumbered declining ones on the NYSE by a 1.21-to-1 ratio; on Nasdaq, a 1.11-to-1 ratio favored advancers.
The S&P 500 posted 39 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 70 new highs and 127 new lows.
On U.S. exchanges 9.89 billion shares changed hands compared with the 11.57 billion average for the last 20 sessions.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi and David Gregorio)
((sinead.carew@thomsonreuters.com, +1 332-219-1897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O hit an all-time high during the session and registered a record closing high for the second session in a row. At a European Central Bank forum on Wednesday, Powell also said the Fed will likely raise rates further and did not rule out a boost at the next policy meeting scheduled for late July. But while the S&P spent most of the session in the red, investors appeared to take Powell's comments in stride because of signs of strength in the economy, according to Quincy Krosby, Chief Global Strategist for LPL Financial.
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Apple Inc AAPL.O hit an all-time high during the session and registered a record closing high for the second session in a row. Apple registers record closing high for second straight day Chip stocks close lower but above from session low Annual banks stress test results due later Fed's Powell flags more rate hikes Dow off 0.22%, S&P down 0.04%, Nasdaq climbs 0.27% Updated with final closing prices, adds commentary By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The Nasdaq managed a small gain on Wednesday with support from megacap stocks while the S&P 500 and the Dow closed lower after U.S. Federal Reserve Chair Jerome Powell signaled more rate hikes and said he did not see inflation falling to the central bank's target rate "this year or next year." LPL's Krosby also welcomed an advance in the Russell 2000 .RUT small cap stock index, which added 0.5% for its third straight day of gains, in a market that has depended heavily on megacaps for gains this year.
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Apple Inc AAPL.O hit an all-time high during the session and registered a record closing high for the second session in a row. Apple registers record closing high for second straight day Chip stocks close lower but above from session low Annual banks stress test results due later Fed's Powell flags more rate hikes Dow off 0.22%, S&P down 0.04%, Nasdaq climbs 0.27% Updated with final closing prices, adds commentary By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The Nasdaq managed a small gain on Wednesday with support from megacap stocks while the S&P 500 and the Dow closed lower after U.S. Federal Reserve Chair Jerome Powell signaled more rate hikes and said he did not see inflation falling to the central bank's target rate "this year or next year." "A stronger underpinning for the economy suggests that a recession is still not expected in the immediate future, and given the resiliency in the labor market, the economy can probably digest a 25 basis point rate hike," at the Federal Open Market Committee's next meeting, said Krosby.
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Apple Inc AAPL.O hit an all-time high during the session and registered a record closing high for the second session in a row. Apple registers record closing high for second straight day Chip stocks close lower but above from session low Annual banks stress test results due later Fed's Powell flags more rate hikes Dow off 0.22%, S&P down 0.04%, Nasdaq climbs 0.27% Updated with final closing prices, adds commentary By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The Nasdaq managed a small gain on Wednesday with support from megacap stocks while the S&P 500 and the Dow closed lower after U.S. Federal Reserve Chair Jerome Powell signaled more rate hikes and said he did not see inflation falling to the central bank's target rate "this year or next year." At a European Central Bank forum on Wednesday, Powell also said the Fed will likely raise rates further and did not rule out a boost at the next policy meeting scheduled for late July.
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15150.0
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2023-06-28 00:00:00 UTC
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GLOBAL MARKETS-Nasdaq ends up, dollar strengthens as Powell hints at more rate hikes
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AAPL
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https://www.nasdaq.com/articles/global-markets-nasdaq-ends-up-dollar-strengthens-as-powell-hints-at-more-rate-hikes
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nan
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nan
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By Stephen Culp
NEW YORK, June 28 (Reuters) - The Nasdaq Composite Index .IXIC closed higher and the dollar rebounded on Wednesday as Federal Reserve Chair Jerome Powell suggested two more interest rate hikes are probably in the cards.
Of the three major U.S. stock indexes, only the Nasdaq advanced, lifted by megacap momentum stocks led by Tesla Inc TSLA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O.
The S&P 500 .SPX ended essentially unchanged, while the blue-chip Dow Jones Industrial Average .DJI closed negative territory, weighed down by healthcare .SPXHC stocks.
"There's a lot of back and forth with the Fed and what they're going to end up doing," said Megan Horneman, chief investment officer at Verdence Capital Advisors in Hunt Valley, Maryland.
In the wake of the recent stocks rally, Horneman added that "equities are not believing the Fed, and you can see that through these high PE stocks that continue to rally."
"I'm concerned this rally has gotten ahead of itself and these valuations are not sustainable," she said.
Powell, participating in a policy panel with European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and others, suggested another two hikes to the Fed funds target rate are likely, and he did not see inflation abating to the 2% target until 2025.
Financial markets are pricing in an 82% probability that the central bank will raise the Fed funds target rate by 25 basis points at the conclusion of its July policy meeting, according to CME's FedWatch tool.
A report that U.S. officials are considering new restrictions regarding AI chips to China dragged the semiconductor sector .SOX down 0.9%.
Nvidia Corp NVDA.O was the heaviest weight on the S&P 500.
The Dow Jones Industrial Average .DJI fell 74.08 points, or 0.22%, to 33,852.66, the S&P 500 .SPX lost 1.55 points, or 0.04%, at 4,376.86 and the Nasdaq Composite .IXIC added 36.08 points, or 0.27%, at 13,591.75.
European stocks closed higher as strong U.S. economic data released on Tuesday allayed fears of a steep economic downturn, even as Lagarde warned the ECB is still not seeing enough evidence of an inflation cool-down.
The pan-European STOXX 600 index .STOXX rose 0.70% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.12%.
Emerging market stocks lost 0.23%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.12% lower, while Japan's Nikkei .N225 rose 2.02%.
The greenback rebounded from the previous session's softness as Powell said more rate hikes are "likely to be appropriate" this year.
The dollar index .DXY rose 0.46%, with the euro EUR= down 0.41% at $1.0914.
The Japanese yen weakened 0.24% versus the greenback at 144.43 per dollar, while sterling GBP= was last trading at $1.264, down 0.83% on the day.
Treasury yields softened as investors looked to Friday's PCE price index for further signs of slowing inflation.
Benchmark 10-year notes US10YT=RR last rose 15/32 in price to yield 3.7097%, from 3.768% late on Tuesday.
The 30-year bond US30YT=RR last rose 20/32 in price to yield 3.8052%, from 3.84% late on Tuesday.
Crude prices surged as a larger-than-expected drop in U.S. crude inventories offset fears of rate hikes and slowing demand.
U.S. crude CLcv1 rose 2.75% to settle at $69.56 per barrel, while Brent LCOcv1 settled at $74.03, up 2.45% on the day.
Gold prices touched a 3-1/2-month low as investors bet on a higher-for-longer Fed rate policy.
Spot gold XAU= dropped 0.2% to $1,909.60 an ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
Dollar index annual returns https://tmsnrt.rs/3NQWMOv
(Reporting by Stephen Culp; additional reporting by Nell Mackenzie; editing by Nick Zieminski, Mark Heinrich and Richard Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of the three major U.S. stock indexes, only the Nasdaq advanced, lifted by megacap momentum stocks led by Tesla Inc TSLA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O. By Stephen Culp NEW YORK, June 28 (Reuters) - The Nasdaq Composite Index .IXIC closed higher and the dollar rebounded on Wednesday as Federal Reserve Chair Jerome Powell suggested two more interest rate hikes are probably in the cards. "There's a lot of back and forth with the Fed and what they're going to end up doing," said Megan Horneman, chief investment officer at Verdence Capital Advisors in Hunt Valley, Maryland.
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Of the three major U.S. stock indexes, only the Nasdaq advanced, lifted by megacap momentum stocks led by Tesla Inc TSLA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O. By Stephen Culp NEW YORK, June 28 (Reuters) - The Nasdaq Composite Index .IXIC closed higher and the dollar rebounded on Wednesday as Federal Reserve Chair Jerome Powell suggested two more interest rate hikes are probably in the cards. The S&P 500 .SPX ended essentially unchanged, while the blue-chip Dow Jones Industrial Average .DJI closed negative territory, weighed down by healthcare .SPXHC stocks.
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Of the three major U.S. stock indexes, only the Nasdaq advanced, lifted by megacap momentum stocks led by Tesla Inc TSLA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O. By Stephen Culp NEW YORK, June 28 (Reuters) - The Nasdaq Composite Index .IXIC closed higher and the dollar rebounded on Wednesday as Federal Reserve Chair Jerome Powell suggested two more interest rate hikes are probably in the cards. Powell, participating in a policy panel with European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and others, suggested another two hikes to the Fed funds target rate are likely, and he did not see inflation abating to the 2% target until 2025.
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Of the three major U.S. stock indexes, only the Nasdaq advanced, lifted by megacap momentum stocks led by Tesla Inc TSLA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O. The Dow Jones Industrial Average .DJI fell 74.08 points, or 0.22%, to 33,852.66, the S&P 500 .SPX lost 1.55 points, or 0.04%, at 4,376.86 and the Nasdaq Composite .IXIC added 36.08 points, or 0.27%, at 13,591.75. The dollar index .DXY rose 0.46%, with the euro EUR= down 0.41% at $1.0914.
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15151.0
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2023-06-28 00:00:00 UTC
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What Sparked This Insane Price Surge? Unity Stock Rockets 50%
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https://www.nasdaq.com/articles/what-sparked-this-insane-price-surge-unity-stock-rockets-50
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Unity (NYSE: U) pushed higher today, and the stock has been on fire. Unity stock is up over 53% in the past month and 63% year to date. Is it headed higher, or is it time for a breather? The video below provides details on the AI news and an update on the stock, including technical analysis. Don't forget to subscribe to the channel for future updates.
*Stock prices used were the morning prices of June 28, 2023. The video was published on June 28, 2023.
10 stocks we like better than Unity Software
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Unity Software 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 26, 2023
Eric Cuka has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Apple and Unity Software. The Motley Fool has a disclosure policy. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The video below provides details on the AI news and an update on the stock, including technical analysis. 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 Unity Software wasn't one of them!
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of June 26, 2023 Eric Cuka has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Apple and Unity Software.
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10 stocks we like better than Unity Software When our analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Unity Software wasn't one of them! See the 10 stocks *Stock Advisor returns as of June 26, 2023 Eric Cuka has positions in Apple and Unity Software.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Unity Software wasn't one of them! See the 10 stocks *Stock Advisor returns as of June 26, 2023 Eric Cuka has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Apple and Unity Software.
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15152.0
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2023-06-28 00:00:00 UTC
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S&P 500, Dow decline with continuation of Fed hikes in focus
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AAPL
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https://www.nasdaq.com/articles/sp-500-dow-decline-with-continuation-of-fed-hikes-in-focus
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Apple hits all-time high
Chip stocks recover from session lows
Annual banks stress test results due later
Fed's Powell flags more rate hikes
Dow off 0.3%, S&P up 0.06%, Nasdaq climbs 0.3%
Updated at 1431 ET/ 1831 GMT
By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 28 (Reuters) - The S&P 500 and Dow were in the red on Wednesday on the prospect of further interest rate hikes after the Federal Reserve's chair Jerome Powell said that he did not see inflation falling to the central bank's target rate any time soon.
At a European Central Bank forum on Wednesday, Powell said the Fed will likely raise rates further and did not rule out a boost in the cost of borrowing at the next policy meeting scheduled for the end of July. He said he does not inflation reaching the Fed's 2% target "this year or next year."
"The concern is about Powell's comments that we're just not done with the rate hiking cycle, that inflation is still too strong ... the market has to accept that the Fed is not done hiking rates," said Phil Blancato CEO Ladenburg Asset Management adding that Powell is "not wrong."
Blancato also pointed to seasonal trends ahead of the July 4 U.S. Independence Day holiday "after an incredible first six months of the year for growth stocks" and said: "The market's more than happy to take a breather here."
The Dow Jones Industrial Average .DJI fell 100.71 points, or 0.3%, to 33,826.03, the S&P 500 .SPX lost 2.76 points, or 0.06%, to 4,375.65 and the Nasdaq Composite .IXIC added 40.53 points, or 0.3%, to 13,596.21.
Still, Apple Inc AAPL.O hit an all-time high during Wednesday's session while Tesla TSLA.O Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts.
"The market is very focused on the only real source of growth which is the technology sector and specifically the AI sector, which has raised the valuation of that vector significantly versus the rest of the market," said Michael Green, portfolio manager at Simplify Asset Management.
Still Chipmaker Nvidia NVDA.O was down 0.9%, having recovered from sharp losses earlier in the session after the Wall Street Journal reported the United States could impose new curbs on exports of artificial intelligence chips to China.
Wall Street had snapped a losing streak on Tuesday as upbeat economic data eased fears of an imminent U.S. recession, though it bolstered expectations that the Fed could hike rates in July.
Traders now see an 81.8% chance of the Fed hiking interest rates by 25 basis points to a 5.25%-5.50% range in July and expect the central bank to hold rates through the end of 2023, according to CMEGroup's Fedwatch tool.
Investors are awaiting the Personal Consumption Expenditures (PCE) index reading, the Fed's favored inflation gauge, initial jobless claims data and the final reading of first-quarter GDP later this week to assess the state of the U.S. economy.
The S&P banks index .SPXBKslipped 0.8% ahead of the Fed's annual stress test results after markets close on Wednesday. The test helps determine how much capital banks need to keep in reserve and how much they have for stock buybacks and dividends.
Netflix Inc NFLX.O, also one of the S&P's biggest boosts, climbed 3.9% as Oppenheimer raised it price target.
General Mills GIS.N slid 4.7% after the packaged food maker forecast full-year profit below analysts' estimates.
Advancing issues outnumbered declining ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.13-to-1 ratio favored advancers.
The S&P 500 posted 39 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 64 new highs and 112 new lows.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi and David Gregorio)
((sinead.carew@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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Still, Apple Inc AAPL.O hit an all-time high during Wednesday's session while Tesla TSLA.O Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts. At a European Central Bank forum on Wednesday, Powell said the Fed will likely raise rates further and did not rule out a boost in the cost of borrowing at the next policy meeting scheduled for the end of July. Still Chipmaker Nvidia NVDA.O was down 0.9%, having recovered from sharp losses earlier in the session after the Wall Street Journal reported the United States could impose new curbs on exports of artificial intelligence chips to China.
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Still, Apple Inc AAPL.O hit an all-time high during Wednesday's session while Tesla TSLA.O Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts. Apple hits all-time high Chip stocks recover from session lows Annual banks stress test results due later Fed's Powell flags more rate hikes Dow off 0.3%, S&P up 0.06%, Nasdaq climbs 0.3% Updated at 1431 ET/ 1831 GMT By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The S&P 500 and Dow were in the red on Wednesday on the prospect of further interest rate hikes after the Federal Reserve's chair Jerome Powell said that he did not see inflation falling to the central bank's target rate any time soon. At a European Central Bank forum on Wednesday, Powell said the Fed will likely raise rates further and did not rule out a boost in the cost of borrowing at the next policy meeting scheduled for the end of July.
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Still, Apple Inc AAPL.O hit an all-time high during Wednesday's session while Tesla TSLA.O Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts. Apple hits all-time high Chip stocks recover from session lows Annual banks stress test results due later Fed's Powell flags more rate hikes Dow off 0.3%, S&P up 0.06%, Nasdaq climbs 0.3% Updated at 1431 ET/ 1831 GMT By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The S&P 500 and Dow were in the red on Wednesday on the prospect of further interest rate hikes after the Federal Reserve's chair Jerome Powell said that he did not see inflation falling to the central bank's target rate any time soon. "The concern is about Powell's comments that we're just not done with the rate hiking cycle, that inflation is still too strong ... the market has to accept that the Fed is not done hiking rates," said Phil Blancato CEO Ladenburg Asset Management adding that Powell is "not wrong."
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Still, Apple Inc AAPL.O hit an all-time high during Wednesday's session while Tesla TSLA.O Microsoft MSFT.O and Alphabet GOOGL.O were also some of the S&P's biggest boosts. Apple hits all-time high Chip stocks recover from session lows Annual banks stress test results due later Fed's Powell flags more rate hikes Dow off 0.3%, S&P up 0.06%, Nasdaq climbs 0.3% Updated at 1431 ET/ 1831 GMT By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The S&P 500 and Dow were in the red on Wednesday on the prospect of further interest rate hikes after the Federal Reserve's chair Jerome Powell said that he did not see inflation falling to the central bank's target rate any time soon. "The concern is about Powell's comments that we're just not done with the rate hiking cycle, that inflation is still too strong ... the market has to accept that the Fed is not done hiking rates," said Phil Blancato CEO Ladenburg Asset Management adding that Powell is "not wrong."
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2023-06-28 00:00:00 UTC
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Berkshire Hathaway boosts stake in Occidental Petroleum to 25%
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https://www.nasdaq.com/articles/berkshire-hathaway-boosts-stake-in-occidental-petroleum-to-25
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Adds background from paragraphs 3-11
June 28 (Reuters) - Berkshire Hathaway Inc BRKa.N said on Wednesday it has acquired more shares of Occidental Petroleum Corp OXY.N, boosting its stake in the oil company to above 25%.
The conglomerate, controlled by billionaire Warren Buffett, said in a regulatory filing that it paid about $122.1 million for 2.14 million Occidental shares between June 26 and June 28.
Berkshire had also purchased about 4.66 million Occidental shares on May 30.
Buffett's company began buying shares of Houston-based Occidental early last year, around when Russia invaded Ukraine and as oil prices were rising.
It also recently owned about $9.5 billion of Occidental preferred stock carrying an 8% dividend, plus warrants to buy another $5 billion of Occidental shares at $59.62 each. Berkshire bought the preferred stock and obtained the warrants in 2019 when it helped finance Occidental's purchase of Anadarko Petroleum Corp.
At the annual shareholder meeting on May 6 in Omaha, Nebraska, Buffett praised Occidental's management and business, but said Berkshire was not planning to acquire the company.
"We're not going to buy control," Buffett said. "We've got the right management running it." Berkshire had amassed a 22.6% stake in the BNSF railroad before paying $26.5 billion for the remainder in 2010. BNSF now generates about one-fifth of Berkshire's operating profit.
Berkshire also owns dozens of other businesses including Geico car insurance and many energy, manufacturing and retail companies, as well as stocks such as Apple Inc AAPL.O.
(Reporting by Jonathan Stempel and Akanksha Khushi in Bengaluru; Editing by Sherry Jacob-Phillips)
((Akanksha.Khushi@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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Berkshire also owns dozens of other businesses including Geico car insurance and many energy, manufacturing and retail companies, as well as stocks such as Apple Inc AAPL.O. Adds background from paragraphs 3-11 June 28 (Reuters) - Berkshire Hathaway Inc BRKa.N said on Wednesday it has acquired more shares of Occidental Petroleum Corp OXY.N, boosting its stake in the oil company to above 25%. Buffett's company began buying shares of Houston-based Occidental early last year, around when Russia invaded Ukraine and as oil prices were rising.
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Berkshire also owns dozens of other businesses including Geico car insurance and many energy, manufacturing and retail companies, as well as stocks such as Apple Inc AAPL.O. Adds background from paragraphs 3-11 June 28 (Reuters) - Berkshire Hathaway Inc BRKa.N said on Wednesday it has acquired more shares of Occidental Petroleum Corp OXY.N, boosting its stake in the oil company to above 25%. The conglomerate, controlled by billionaire Warren Buffett, said in a regulatory filing that it paid about $122.1 million for 2.14 million Occidental shares between June 26 and June 28.
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Berkshire also owns dozens of other businesses including Geico car insurance and many energy, manufacturing and retail companies, as well as stocks such as Apple Inc AAPL.O. Adds background from paragraphs 3-11 June 28 (Reuters) - Berkshire Hathaway Inc BRKa.N said on Wednesday it has acquired more shares of Occidental Petroleum Corp OXY.N, boosting its stake in the oil company to above 25%. It also recently owned about $9.5 billion of Occidental preferred stock carrying an 8% dividend, plus warrants to buy another $5 billion of Occidental shares at $59.62 each.
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Berkshire also owns dozens of other businesses including Geico car insurance and many energy, manufacturing and retail companies, as well as stocks such as Apple Inc AAPL.O. It also recently owned about $9.5 billion of Occidental preferred stock carrying an 8% dividend, plus warrants to buy another $5 billion of Occidental shares at $59.62 each. Berkshire bought the preferred stock and obtained the warrants in 2019 when it helped finance Occidental's purchase of Anadarko Petroleum Corp. At the annual shareholder meeting on May 6 in Omaha, Nebraska, Buffett praised Occidental's management and business, but said Berkshire was not planning to acquire the company.
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2023-06-28 00:00:00 UTC
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Apple's stock hits record, on cusp of $3 trillion market value
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https://www.nasdaq.com/articles/apples-stock-hits-record-on-cusp-of-%243-trillion-market-value
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By Akash Sriram and Noel Randewich
June 28 (Reuters) - Apple's AAPL.O stock climbed to an intra-day record high on Wednesday, and was on the cusp of ending the session for the first time with a market capitalization above $3 trillion.
The iPhone maker's shares rose as much as 1% to $189.90, their highest ever. With the stock last trading off that session high, up 0.4% at $188.81, the iPhone maker's stock market value stood at $2.97 trillion, according to Refinitiv data.
Apple's stock market value briefly peaked above $3 trillion in intra-day trading on Jan. 3, 2022 before closing the session just below that mark.
The latest gains in the shares of the world's most valuable company follow strong rebounds this year from several of Wall Street's technology-related heavyweights, fueled by bets that the Federal Reserve is nearing the end of its campaign of interest rate hikes, and by optimism about the potential for artificial intelligence.
"There hasn't really been any new information fundamentally that would be supportive of the stock move," said Thomas Martin, Senior Portfolio Manager at Globalt Investments. "What you're left with is, you know, the market itself."
Apple has jumped 46% in 2023, while Nvidia NVDA.O has surged 185%, making it the first chipmaker with a stock market value over $1 trillion. Tesla TSLA.O and Meta Platforms META.O have more than doubled this year, and Microsoft MSFT.O has added 40%.
Apple's approach toward its $3 trillion milestone follows the June 5 launch of a pricey augmented-reality headset, its riskiest bet since the introduction of the iPhone more than a decade ago.
As well, Apple's most recent quarterly report in May showed a drop in revenue and profits, but still beat analysts' expectations. Along with a steady track record of stock buybacks, those financial results reinforced its reputation among investors as a safe investment at a time of global economic uncertainty.
The recent gains in Apple's shares have outpaced analysts' estimates for the company's future earnings. The stock is now trading at about 29 times expected earnings, its highest multiple since February 2022, according to Refinitiv data.
Apple's ascent to $3 trillion https://tmsnrt.rs/443myVh
(Reporting by Noel Randewich; Editing by David Gregorio)
((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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By Akash Sriram and Noel Randewich June 28 (Reuters) - Apple's AAPL.O stock climbed to an intra-day record high on Wednesday, and was on the cusp of ending the session for the first time with a market capitalization above $3 trillion. The latest gains in the shares of the world's most valuable company follow strong rebounds this year from several of Wall Street's technology-related heavyweights, fueled by bets that the Federal Reserve is nearing the end of its campaign of interest rate hikes, and by optimism about the potential for artificial intelligence. Apple's approach toward its $3 trillion milestone follows the June 5 launch of a pricey augmented-reality headset, its riskiest bet since the introduction of the iPhone more than a decade ago.
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By Akash Sriram and Noel Randewich June 28 (Reuters) - Apple's AAPL.O stock climbed to an intra-day record high on Wednesday, and was on the cusp of ending the session for the first time with a market capitalization above $3 trillion. With the stock last trading off that session high, up 0.4% at $188.81, the iPhone maker's stock market value stood at $2.97 trillion, according to Refinitiv data. The recent gains in Apple's shares have outpaced analysts' estimates for the company's future earnings.
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By Akash Sriram and Noel Randewich June 28 (Reuters) - Apple's AAPL.O stock climbed to an intra-day record high on Wednesday, and was on the cusp of ending the session for the first time with a market capitalization above $3 trillion. With the stock last trading off that session high, up 0.4% at $188.81, the iPhone maker's stock market value stood at $2.97 trillion, according to Refinitiv data. Apple's stock market value briefly peaked above $3 trillion in intra-day trading on Jan. 3, 2022 before closing the session just below that mark.
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By Akash Sriram and Noel Randewich June 28 (Reuters) - Apple's AAPL.O stock climbed to an intra-day record high on Wednesday, and was on the cusp of ending the session for the first time with a market capitalization above $3 trillion. With the stock last trading off that session high, up 0.4% at $188.81, the iPhone maker's stock market value stood at $2.97 trillion, according to Refinitiv data. The recent gains in Apple's shares have outpaced analysts' estimates for the company's future earnings.
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2023-06-28 00:00:00 UTC
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4 Green Flags for Unity Software's Future
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https://www.nasdaq.com/articles/4-green-flags-for-unity-softwares-future
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Unity Software's (NYSE: U) stock plunged 80% in 2022 as the growth of its game development engine cooled off in a post-pandemic market, Apple's (NASDAQ: AAPL) iOS update disrupted its advertising algorithms, and rising interest rates popped its bubbly valuations. By the end of the year, many investors had likely written off Unity as another burned-out meme stock.
Yet Unity's stock has rallied nearly 30% this year as four green flags appeared. Let's review those positive developments and see if it's finally safe to sound the all-clear on Unity, which is still trading nearly 20% below its initial public offering price of $52.
Image source: Getty Images.
1. Its integration of ironSource
Unity's biggest challenge last year was Apple's privacy-oriented iOS update, which enabled its users to opt out of data-tracking features in individual apps. That abrupt change prevented Unity Ads, a core component of its Grow business (with 63% of its revenue in its latest quarter), from delivering effective targeted ads within its games.
Unity initially tried to rewrite its advertising algorithms to counter Apple's seismic changes, but it eventually merged with the ad tech company ironSource in an all-stock $4.4 billion deal to reboot its advertising business last November.
During Unity's first-quarter conference call, CEO John Riccitiello said the combination of Unity and ironSource was already bringing in more data to "enhance the performance of both networks." Unity expects those synergies to boost its market share in integrated ads and drive the accelerating growth of its Grow business throughout the rest of the year, so it certainly seems like one of its fiercest headwinds from last year is finally dissipating.
2. Its adjusted EBITDA is turning positive
The bears often claimed that Unity would never turn a profit. Even when calculated on the basis of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), its loss more than doubled from $20 million in 2021 to $51 million in 2022.
But over the past year, Unity aggressively reined in its spending with three rounds of layoffs. As a result, it now expects to generative a positive adjusted EBITDA of $250 million to $300 million in 2023 -- which would represent its first year of adjusted EBITDA profitability -- and for that metric to reach a positive run rate of $1 billion by the end of 2024.
3. Its mixed reality partnership with Apple
In early June, Apple revealed it was working with Unity to develop mixed reality apps for its new Vision Pro headset. That announcement wasn't too surprising, since developers already use Unity to create apps for Meta's (NASDAQ: META) virtual reality headsets, but it's a clear vote of confidence in Unity's future in the nascent mixed reality market.
The Vision Pro's high launch price of $3,500 might prevent it from becoming an overnight success, but the broader mixed reality market could still see a compound annual growth rate of 35% from 2022 to 2032, according to Persistence Research, as more devices enter the market. Unity could capitalize on that secular expansion and diversify its core game-development engine away from the mobile, console, and PC gaming markets.
4. Its introduction of a new AI marketplace
Unity's stock surged 15% on June 27 after the company launched a new AI services marketplace for its game development engine. Through that marketplace, developers can shop around for AI tools from independent companies (like Inworld AI and Polyhive) to add AI-generated in-game dialogue, graphics, and textures to their games.
As John Riccitiello, the CEO, stated in a recent interview, those AI tools could help developers produce their games "faster, cheaper, and better." An AI marketplace would also likely lock more developers into its game development engine, which drives most of the growth of its Create segment (which generated 37% of its revenue last quarter).
Do these green flags mean it's safe to buy Unity?
All of these developments are encouraging, but Unity's top-line growth should remain sluggish this year and its stock is still expensive. It expects its revenue to only rise 3% to 9% on a pro forma basis (including ironSource) this year, and its enterprise value of $17 billion is still eight times higher than this year's sales and 63 times higher than its adjusted EBITDA.
Therefore, Unity's valuations could be inflated by the near-term hype regarding Apple's Vision Pro and its AI marketplace, instead of by the underlying improvements to its business. Investors can still nibble on Unity if they believe in its long-term growth potential, but they should also be aware that its stock could remain volatile for the foreseeable future.
10 stocks we like better than Unity Software
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 Unity Software 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 26, 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. Leo Sun has positions in Apple, Meta Platforms, and Unity Software. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Unity Software. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unity Software's (NYSE: U) stock plunged 80% in 2022 as the growth of its game development engine cooled off in a post-pandemic market, Apple's (NASDAQ: AAPL) iOS update disrupted its advertising algorithms, and rising interest rates popped its bubbly valuations. Its integration of ironSource Unity's biggest challenge last year was Apple's privacy-oriented iOS update, which enabled its users to opt out of data-tracking features in individual apps. Unity could capitalize on that secular expansion and diversify its core game-development engine away from the mobile, console, and PC gaming markets.
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Unity Software's (NYSE: U) stock plunged 80% in 2022 as the growth of its game development engine cooled off in a post-pandemic market, Apple's (NASDAQ: AAPL) iOS update disrupted its advertising algorithms, and rising interest rates popped its bubbly valuations. That announcement wasn't too surprising, since developers already use Unity to create apps for Meta's (NASDAQ: META) virtual reality headsets, but it's a clear vote of confidence in Unity's future in the nascent mixed reality market. Its introduction of a new AI marketplace Unity's stock surged 15% on June 27 after the company launched a new AI services marketplace for its game development engine.
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Unity Software's (NYSE: U) stock plunged 80% in 2022 as the growth of its game development engine cooled off in a post-pandemic market, Apple's (NASDAQ: AAPL) iOS update disrupted its advertising algorithms, and rising interest rates popped its bubbly valuations. That announcement wasn't too surprising, since developers already use Unity to create apps for Meta's (NASDAQ: META) virtual reality headsets, but it's a clear vote of confidence in Unity's future in the nascent mixed reality market. Its introduction of a new AI marketplace Unity's stock surged 15% on June 27 after the company launched a new AI services marketplace for its game development engine.
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Unity Software's (NYSE: U) stock plunged 80% in 2022 as the growth of its game development engine cooled off in a post-pandemic market, Apple's (NASDAQ: AAPL) iOS update disrupted its advertising algorithms, and rising interest rates popped its bubbly valuations. As a result, it now expects to generative a positive adjusted EBITDA of $250 million to $300 million in 2023 -- which would represent its first year of adjusted EBITDA profitability -- and for that metric to reach a positive run rate of $1 billion by the end of 2024. An AI marketplace would also likely lock more developers into its game development engine, which drives most of the growth of its Create segment (which generated 37% of its revenue last quarter).
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15156.0
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2023-06-28 00:00:00 UTC
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A Dark-Horse Winner in Apple Vision Pro
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AAPL
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https://www.nasdaq.com/articles/a-dark-horse-winner-in-apple-vision-pro
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nan
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nan
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Apple's (NASDAQ: AAPL) new VR headset has impressive graphics, but that's the work of Sony (NYSE: SONY), the electronics giant. And as a key constraint on the device's supply, it's Sony that may be a big beneficiary of Apple's VR growth. Travis Hoium covers the supply constraint in this video.
*Stock prices used were end-of-day prices of June 21, 2023. The video was published on June 25, 2023.
10 stocks we like better than Sony Group
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*Stock Advisor returns as of June 12, 2023
Travis Hoium has positions in Apple and Sony Group. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) new VR headset has impressive graphics, but that's the work of Sony (NYSE: SONY), the electronics giant. And as a key constraint on the device's supply, it's Sony that may be a big beneficiary of Apple's VR growth. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple's (NASDAQ: AAPL) new VR headset has impressive graphics, but that's the work of Sony (NYSE: SONY), the electronics giant. Travis Hoium covers the supply constraint 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's (NASDAQ: AAPL) new VR headset has impressive graphics, but that's the work of Sony (NYSE: SONY), the electronics giant. 10 stocks we like better than Sony Group 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.
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Apple's (NASDAQ: AAPL) new VR headset has impressive graphics, but that's the work of Sony (NYSE: SONY), the electronics giant. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Travis Hoium has positions in Apple and Sony Group. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services.
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2023-06-28 00:00:00 UTC
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Apple to Hit $4-Tn Market Cap in 2024? ETFs in Focus
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AAPL
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https://www.nasdaq.com/articles/apple-to-hit-%244-tn-market-cap-in-2024-etfs-in-focus
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nan
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nan
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Apple Inc. AAPL has been on a terrific run this year having gained about 44% (as pf Jun 22, 2023). Though the stock might see some rough trading in the near term due to rising rate worries, the long-term prospects look bullish.
According to Fairlead Strategies, Apple’s latest breakout confirms likely upside in the coming years, as quoted on Business Insider. Let’s find out the factors that could lead Apple to a market valuation of $4 trillion by 2024.
Price Objective of $254: A 37% Upside Potential
Based on the breakout and analysis, Fairlead Strategies sets a price objective of $254 per share for Apple. This represents a significant 37% increase from the current stock price. Achieving this target would push Apple's market valuation to approximately $4 trillion, considering the current number of outstanding shares.
Technical Analysis Points to Uptrend Resumption
Katie Stockton, founder of Fairlead Strategies, detects the resumption of the uptrend that “preceded the 2021-2022 trading range”. This suggests continued positive momentum for Apple's stock in the short term. Absence of counter-trend signals further supports the rally.
Apple to Touch $254 by End of 2024?
Stockton projects that the technical price objective of $254 per share could be reached by the end of 2024. This timeframe allows for gradual upward movement and aligns with the analysis of the stock's historical performance.
Apple's AR/VR Market Entry
Apple's recent announcement of the Apple Vision headset, its first product in the augmented reality/virtual reality (AR/VR) market, has produced excitement among users and investors. Priced at $3,499, the headset is set to be released early next year, contributing to the positive sentiment surrounding Apple.
Near-Term Threshold Within Limits
As of now, Apple's market valuation stands at approximately $2.96 trillion. To cross the important $3 trillion mark, the stock price needs to reach $190.73, which is within reach of the current levels. Such a landmark would further strengthen Apple's position as a global company.
Notably, the current Zacks Consensus Estimate for earnings for the June quarter is $1.18 per share. The Most Accurate Estimate is $1.22 per share, resulting in an Earnings ESP of +3.39%. This is a positive sign for the stock.
Are ETFs Better Bets?
Investors intending to follow the above-said thesis but still wary of the slowing sales of Apple as well as stiff competition in the smartphone and iPad segments may take the ETF route. This is because ETFs helps investors to mitigate one company’s average performance with the other companies’ stellar results.
Below we highlight a few ETFs with heavy exposure to Apple for investors seeking to bet on the stock with much lower risk.
iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 19.44% weight. The fund has a Zacks Rank #1 (Strong Buy).
Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 23.38% weight. The fund has a Zacks Rank #1.
Vanguard Information Technology ETF VGT – AAPL occupies the first location with 22.31% weight. The fund has a Zacks Rank #1.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. AAPL has been on a terrific run this year having gained about 44% (as pf Jun 22, 2023). iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 19.44% weight. Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 23.38% weight.
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Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 23.38% weight. Vanguard Information Technology ETF VGT – AAPL occupies the first location with 22.31% weight. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has been on a terrific run this year having gained about 44% (as pf Jun 22, 2023). iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 19.44% weight.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has been on a terrific run this year having gained about 44% (as pf Jun 22, 2023). iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 19.44% weight.
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15158.0
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2023-06-28 00:00:00 UTC
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AAPL Factor-Based Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-1
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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 Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
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.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
High Momentum Stocks
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 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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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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2023-06-28 00:00:00 UTC
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7 Blue-Chip Dividend Stocks to Buy for Income Lovers
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AAPL
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https://www.nasdaq.com/articles/7-blue-chip-dividend-stocks-to-buy-for-income-lovers
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Most investors love income, no matter where it comes from. With inflation and uncertainty remaining high, it’s fair to assert that investors might love income more now than ever. That’s one of the many benefits of blue-chip dividend stocks. They provide dividend income that is reliable throughout the best and worst of times. Blue-chip firms boast steady records of strong performance that outlast economic cyclicality and stand the test of time.
What that means is that investors find dependability in these names, when it is generally difficult to find. The bonus here is that several of these companies not only pay income, but also have excellent growth potential. These firms aren’t the boring dividend stocks many have come to expect.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
Qualcomm (NASDAQ:QCOM) has thus far been a relatively unheralded stock in relation to its AI adoption.
Many other companies, particularly Nvidia, (NASDAQ:NVDA) have received the lion’s share of attention from investors. Their share prices have grown incredibly quickly as a result.
Qualcomm, however, has traded essentially flat in 2023. The chip maker is primarily known for its focus on mobile communications and is a noted supplier to the biggest firms in that space. Thus far, 2023 has been a troublesome year for the firm due to slowing demand. The outlook for mobile phone sales has remained bleak this year, as consumers are less willing to splash out on expensive handsets.
That explains why QCOM stock has been flat while overall markets have been strong. But there’s arguably a mismatch here, because Qualcomm’s snapdragon chips are AI-enabled and have strong potential beyond the hand phone market. The company is angling hard to sell into the Internet-of-Things markets and AI-automotive applications.
Thus, it’s perfectly reasonable to anticipate QCOM stock catching on soon. Buying in now provides that upside potential, along with a dividend yielding 2.7%, which isn’t bad.
Microsoft (MSFT)
Source: Ascannio / Shutterstock.com
Microsoft (NASDAQ:MSFT) is perhaps one of the last companies that might spring to mind when considering dividends. I imagine that many investors might not even recognize that it pays one. But it does. That dividend yields a relatively muted 0.8%, which is part of the reason it is so rarely talked about.
Nevertheless, Microsoft has been quietly paying that dividend on an uninterrupted and growing basis since 2003.
Microsft is currently testing all-time highs in terms of its price. Indeed, MSFT stock has been among the biggest beneficiaries of the AI boom. AI adoption has catalyzed its massive resurgence this year, promising revenue growth at an unprecendented rate, which is reason enough to believe that MSFT stock could eclipse its previous highs easily.
The 0.8% dividend Microsoft provides is a bit of enticement for more conservative investors to get behind that notion. Microsoft is only getting stronger given its investment into OpenAI and its Azure cloud business. The company’s ability to accurately predict and invest in the future of technology shouldn’t be ignored.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
It’s no secret that Apple (NASDAQ:AAPL) has been able to establish its brand through its premium products. Whether it’s iPhones, MacBooks, or a whole host of other legacy products, Apple continues to sell everything it offers at the high end of the price spectrum. The company has brilliantly positioned those products.
That’s why investors should be especially interested as Apple unveils the Vision Pro. Apple is venturing into virtual reality, a new category for the firm. The tech giant has defined emerging tech categories in the past. VR headsets have found success within the gaming sector, but have had difficulty establishing much traction elsewhere. If Apple gets it right, revenues will surge when the headset is released early next year, given its $3,499 price tag.
Beyond this catalyst, Apple has proved to be arguably the strongest of the tech giants during 2022. It’s been resilient this year thus far, offering significant upside and a dividend yield of 0.5%.
Realty Income (O)
Source: 89stocker / Shutterstock
I’d argue that Realty Income (NYSE:O) is among the very best opportunities to grow investor capital in the real estate sector right now. The reason is simple. Realty Income offers exactly what its name says, a consistent source of income from the real estate sector. There’s also reason to believe that this income stream could grow investor capital more reliably than other REITs, due to is its track record.
The company owns and operates commercial real estate in long-term, net lease agreements. It operates real estate for many of the retailers like Walgreen’s (NYSE:WBA) and 7-Eleven, that will inevitably continue to operate, no matter the economic conditions. The company isn’t over-concentrated in troubled areas like commercial office buildings.
Instead, it remains focused on more stable operational sectors. Realty Income is a dividend aristocrat, meaning it is part of the S&P 500 and has increased its dividend consecutively for 25 years or more. It also pays that dividend on a monthly basis yielding 5.2% at the time of writing.
Kimberly-Clark (KMB)
Source: Trong Nguyen / Shutterstock.com
Kimberly-Clark (NYSE:KMB) is the most boring company and stock on this list. I mention that because dividend investing can be ‘boring’ in that the sense that firms paying exciting dividend often operate relatively uninteresting businesses.
Kimberly-Clark sells tissue, paper products, diapers, and other non-durable consumer goods that probably don’t excite very many people. But like many other ‘boring’ blue-chip dividend-paying stocks, Kimberly-Clark is really good at what it does.
Huggies, Cottonele, Scott tissues, and other brands are household names within its suite of uninteresting products. That’s a recipe for dividend success. The company has established a household name for products that people don’t much think about. Then, the company uses those revenues to develop other boring products, quietly growing a massive company.
Currently, KMB stock pays 3.4% dividend yield. I think this company will almost certainly continue to grow that dividend, given that it has done so consistently since 1973.
Altria (MO)
Source: Kristi Blokhin / Shutterstock.com
Altria (NYSE:MO) is probably the single best stock on this list for pure income seekers. The stock certainly offers the highest yield, at 8.6%. At first blush, that very high yield raises alarm bells. It’s well above the traditional yield ranges that investors consider healthy and sustainable.
But I don’t believe there’s much to fear in this case. Altria isn’t a REIT engaging in risky real estate and enticing investors with a high dividend that is unreliable and subject to risk of collapse. Instead, it’s a big tobacco firm that finds itself pivoting into a more smoke-free future.
That future is likely to provide continued dividend growth, per Altria’s first quarter earnings report. That report included guidance pledging mid single-digit dividend increases through 2030.
Additionally, MO stock currently trades near its average for the past three years. Yet, analysts believe that MO stock should be worth roughly 15% more over the next 12-18 months.
Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
Coca-Cola (NYSE:KO) shares provide income and stability, along with long-term growth potential as well. The company is well-known by investors for its long-running dividend that is backed by value champions like Warren Buffett and Charlie Munger.
Income is there. Stability is there, too. Notably, Coca-Cola hasn’t reduced its dividend since 1963. KO stock also provides stability in the form of a share price that simply reacts more slowly to news in either direction. That stability is measured by a Beta of 0.55, meaning share prices move at 55% of the speed of the overall market. In a period in which investors have become habituated to sharp swings in valuations, Coca-Cola offers a hedge against those rapid movements. Dividend income is great, but peace of mind is arguably better.
Further, Coca-Cola should continue to outperform as consumers continue to spend on its mini luxuries, despite overarching economic concerns. The company’s revenue increased by 5% in the first quarter. That’s a testament to the unwavering consumer demand consumers provide for one of the world’s biggest household brands.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post 7 Blue-Chip Dividend Stocks to Buy for Income Lovers appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It’s no secret that Apple (NASDAQ:AAPL) has been able to establish its brand through its premium products. AI adoption has catalyzed its massive resurgence this year, promising revenue growth at an unprecendented rate, which is reason enough to believe that MSFT stock could eclipse its previous highs easily. Altria isn’t a REIT engaging in risky real estate and enticing investors with a high dividend that is unreliable and subject to risk of collapse.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It’s no secret that Apple (NASDAQ:AAPL) has been able to establish its brand through its premium products. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Most investors love income, no matter where it comes from. Realty Income offers exactly what its name says, a consistent source of income from the real estate sector.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It’s no secret that Apple (NASDAQ:AAPL) has been able to establish its brand through its premium products. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Most investors love income, no matter where it comes from. Realty Income is a dividend aristocrat, meaning it is part of the S&P 500 and has increased its dividend consecutively for 25 years or more.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It’s no secret that Apple (NASDAQ:AAPL) has been able to establish its brand through its premium products. It also pays that dividend on a monthly basis yielding 5.2% at the time of writing. Currently, KMB stock pays 3.4% dividend yield.
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2023-06-28 00:00:00 UTC
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54.5% of Warren Buffett's $366 Billion Berkshire Hathaway Portfolio is in These 2 Stocks
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AAPL
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https://www.nasdaq.com/articles/54.5-of-warren-buffetts-%24366-billion-berkshire-hathaway-portfolio-is-in-these-2-stocks
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nan
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nan
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While portfolio diversification can be a way for investors to reduce their exposure to risk, it's clear that Berkshire Hathaway CEO Warren Buffett isn't a big fan of the strategy. In fact, the Oracle of Omaha has said that "Diversification is protection against ignorance. It makes little sense if you know what you are doing."
Right now, roughly 74% of Berkshire's $366 billion stock portfolio is spread across its five largest holdings. Even more striking, its top-two largest positions account for 54.5% of the investment conglomerate's total stock holdings.
Read on to see why Buffet has bet so heavily on these two industry-leading companies.
A strong moat is something Warren Buffett always looks for
Parkev Tatevosian: As of the investment conglomerate's portfolio update on May 15, Berkshire Hathaway owns roughly $171 billion worth of Apple (NASDAQ: AAPL) stock. That the Oracle of Omaha's company owns so much of one individual stock might surprise some investors. However, looking at Apple's prospects for the longer term, it makes more sense.
Indeed, Apple is one of the most innovative technology companies in the world, and one of the few that have delivered decades of sustained innovation. The iPhone, Mac computers, Apple Watch, AirPods, iPods, and more have all generated billions of dollars in sales over several iterations. Over the years, Apple has earned consumer loyalty, allowing it to sell its products at premium prices.
Apple's lucrative profits demonstrate that. Apple's revenue increased from $171 billion in the previous decade to $394 billion. More impressively, its operating income soared from $49 billion to $119 billion. Given that Apple has built decades of consumer relationships and established an ecosystem that makes it inconvenient for consumers to switch to competitors, it will be challenging for anyone to encroach on its market share.
Of course, a strong competitive advantage -- or "moat", as Warren Buffet likes to call it -- is one of the primary characteristics Buffet is attracted to in an investment. After looking closely at Apple's business, it's easier to understand why Warren Buffet allocates 46.7% of his portfolio to Apple's stock.
Buffett aided this company's comeback and won big
Keith Noonan: Valued at roughly $28.7 billion, Berkshire's stake in Bank of America (NYSE: BAC) accounts for approximately 7.8% of its total stock holdings. While that comes in far below the holding company's massive position in Apple, it still stands as the investment giant's second-largest portfolio position.
COMPANY PERCENTAGE OF BERKSHIRE STOCK PORTFOLIO
Apple 46.7%
Bank of America 7.8%
American Express 7%
Coca-Cola 6.7%
Chevron 5.5%
Data source: CNBC; Data as of June 26.
As with Apple, Berkshire once again added to its position in Bank of America stock in the first quarter. In fact, Buffett's company increased its holdings in both stocks by 2.3% in the quarter.
Given that B of A currently ranks as Berkshire's second-biggest stock holding, Buffett's company has an interesting history with the banking giant. In 2010, Berkshire Hathaway sold all of its Bank of America stock due to reduced earnings power as the company emerged from the 2008 crisis.
Struggles related to the subprime mortgage crisis continued for the bank, and Bank of America looked to be in a particularly precarious position in the leadup to the subsequent debt-ceiling crisis in 2011. Buffett then approached the bank's CEO to discuss a potential investment that would help the financial giant raise some much-needed capital.
Ultimately, Berkshire wound up investing $5 billion in Bank of America's preferred stock and received warrants to purchase 700 million shares of the company's common stock at a price of $7.14 per share. Buffett then exercised those warrants in June 2017, when the stock was trading above $24 per share.
The deal wound up being a big winner for Berkshire, and Bank of America has bounced back to become one of the strongest players in the financials sector. Even with macroeconomic pressures and stresses hitting the banking industry this year, B of A has continued to look quite solid, and actually saw an increase in deposits even as Silicon Valley Bank, Signature Bank, and First Republic Bank Folded.
Should investors follow Buffett's capital allocation strategy for Berkshire?
Apple and Bank of America are both strong companies. They've delivered impressive returns for Berkshire Hathaway, and could make worthwhile portfolio additions for other investors as well.
On the other hand, having a higher level of portfolio diversification is probably a good idea for most investors. While Berkshire's stock holdings are heavily weighted toward just a handful of stocks, the company also owns and has positions in a wide range of other subsidiary businesses, so it's actually more diversified than its heavily concentrated stock portfolio would suggest.
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 June 12, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan has no position in any of the stocks mentioned. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Bank of America. 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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A strong moat is something Warren Buffett always looks for Parkev Tatevosian: As of the investment conglomerate's portfolio update on May 15, Berkshire Hathaway owns roughly $171 billion worth of Apple (NASDAQ: AAPL) stock. While portfolio diversification can be a way for investors to reduce their exposure to risk, it's clear that Berkshire Hathaway CEO Warren Buffett isn't a big fan of the strategy. Buffett aided this company's comeback and won big Keith Noonan: Valued at roughly $28.7 billion, Berkshire's stake in Bank of America (NYSE: BAC) accounts for approximately 7.8% of its total stock holdings.
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A strong moat is something Warren Buffett always looks for Parkev Tatevosian: As of the investment conglomerate's portfolio update on May 15, Berkshire Hathaway owns roughly $171 billion worth of Apple (NASDAQ: AAPL) stock. Even more striking, its top-two largest positions account for 54.5% of the investment conglomerate's total stock holdings. Ultimately, Berkshire wound up investing $5 billion in Bank of America's preferred stock and received warrants to purchase 700 million shares of the company's common stock at a price of $7.14 per share.
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A strong moat is something Warren Buffett always looks for Parkev Tatevosian: As of the investment conglomerate's portfolio update on May 15, Berkshire Hathaway owns roughly $171 billion worth of Apple (NASDAQ: AAPL) stock. Ultimately, Berkshire wound up investing $5 billion in Bank of America's preferred stock and received warrants to purchase 700 million shares of the company's common stock at a price of $7.14 per share. While Berkshire's stock holdings are heavily weighted toward just a handful of stocks, the company also owns and has positions in a wide range of other subsidiary businesses, so it's actually more diversified than its heavily concentrated stock portfolio would suggest.
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A strong moat is something Warren Buffett always looks for Parkev Tatevosian: As of the investment conglomerate's portfolio update on May 15, Berkshire Hathaway owns roughly $171 billion worth of Apple (NASDAQ: AAPL) stock. As with Apple, Berkshire once again added to its position in Bank of America stock in the first quarter. Apple and Bank of America are both strong companies.
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15161.0
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2023-06-28 00:00:00 UTC
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Warren Buffett Is Violating 1 of His Key Investing Rules With Apple
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-is-violating-1-of-his-key-investing-rules-with-apple
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nan
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nan
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett is easily one of the greatest investors of our time. In 58 years since taking the reins, the Oracle of Omaha has led his company's Class A shares (BRK.A) to an aggregate gain of better than 4,100,000%, as of the closing bell on June 23, 2023. In simpler terms, he's doubled up the annualized performance of the broad-based S&P 500 over a nearly six-decade stretch (19.8% versus 9.9%).
What's particularly interesting about Warren Buffett's investing philosophy is that he's transparent about what he's looking for in businesses. Although the Oracle of Omaha's list of "investing rules" can fill a book, the key points include buying great businesses with well-defined moats and trusted management teams, and holding on to those investments for long periods. He's also a big fan of portfolio concentration -- i.e., putting a sizable percentage of invested assets into your best ideas.
It's a relatively simple investing strategy that anyone can follow. But not even Warren Buffett follows his own investing rules all the time.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Apple would appear to check all the right boxes for Warren Buffett
Despite Berkshire Hathaway holding stakes in approximately four dozen securities, nearly 47% of the company's $366 billion of invested assets is tied up in tech stock Apple (NASDAQ: AAPL). That's about 39 percentage points more than Bank of America, Berkshire's second-largest holding by market value.
Buffett's faith in Apple shouldn't come as a surprise. During Berkshire Hathaway's annual shareholder meeting, the Oracle of Omaha was quoted as saying that Apple is "a better business than any we own" when justifying why it represents such an outsized percentage of invested assets. Portfolio concentration has always been a successful strategy for Warren Buffett.
Apple also checks a number of important boxes that Warren Buffett looks for in an investment, including brand-name/consumer appeal, trustworthy management, and, in many cases, a top-notch capital-return program.
Earlier this month, Kantar BrandZ's Most Valuable Global Brands Report labeled Apple its most-valuable brand for a second consecutive year. Meanwhile, Interbrand has had Apple at the top of its global brand rankings for 10 straight years (as of 2022). The Oracle of Omaha appreciates businesses that consumers trust.
Apple CEO Tim Cook has also given Berkshire Hathaway's leadership plenty of reason to smile. Cook has allowed innovation to do the vast majority of the talking. Apple has been the runaway leader in U.S. smartphone market share since 5G-capable iPhones hit showrooms in the fourth quarter of 2020. Further, the company's higher-margin subscription services segment has been growing at a notably faster pace than its physical products.
As for Apple's capital-return program, it's essentially unmatched among publicly traded companies. It's doling out more than $15 billion a year in nominal-dollar dividends and has repurchased $586 billion worth of its common stock over the past 10 years. An easy way to get on Warren Buffett's good side is to increase Berkshire Hathaway's stake in your businesses via buybacks.
However, not every aspect of Buffett's ongoing investments in Apple jibes with his investing rules.
Image source: Getty Images.
Apple is a wonderful company at anything but a fair price
Among the long list of "Buffett-isms" I've not yet mentioned is his affinity for getting a good deal on what he's buying. In Warren Buffett's exact words, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
When the Oracle of Omaha and his investing lieutenants, Ted Weschler and Todd Combs, first began purchasing shares of Apple for Berkshire Hathaway's investment portfolio in the first quarter of 2016, they were, indeed, buying a wonderful company at a fair price.
Apple had closed out 2015 with a trailing-12-month (TTM) price-to-earnings (P/E) ratio of less than 14, was trading at below 10 times year-end cash flow, and offered a forward-year P/E ratio of a little over 10 for fiscal 2016 (Apple's fiscal year ends in late September). For a company that had revolutionized the smartphone industry and was averaging double-digit annual sales growth, this was a phenomenal price to pay.
However, Warren Buffett and his team are still adding to Berkshire Hathaway's Apple position in spite of the fact that Apple is trading at anything but a "fair price." Berkshire purchased around 20.4 million shares of Apple stock in the first quarter of 2023, which comes atop the just over 8 million shares Buffett, Combs, and/or Weschler picked up throughout 2022.
AAPL PE Ratio data by YCharts.
Investors today are paying over 31 times TTM earnings and roughly 27 times cash flow to own shares of Apple. Looking ahead doesn't demonstrably improve things, either, with Apple priced at more than 28 times Wall Street's consensus earnings for fiscal 2024. Except for 2020-2021, when corporate earnings and cash flow were abnormally low due to pandemic-related uncertainties, Apple hasn't been this pricey since the financial crisis of 2008.
What makes Apple's lofty valuation even more egregious is that the company isn't even growing. Despite having above-average inflation as a tailwind, the expectation is that it'll see sales and profits each decline by roughly 2% to 3% in fiscal 2023. In real-dollar terms, we're talking about Apple's revenue tapering off by the high single digits this year -- yet shares are trading at an all-time high.
Although Apple controls roughly half of U.S. smartphone market share, the decision not to ramp up production of iPhone 14 last September indicates that consumers were very likely unimpressed with the changes/improvements made to the model, compared to the previous year. With such a lofty premium to earnings and cash flow, Apple probably needs to blow away consumer and analyst expectations in the quarters to come with its next-generation iPhone if it has any hope of sustaining this valuation.
There's no question that Apple is a wonderful company. However, the "fair price" argument left the building some time ago.
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Bank of America is an advertising partner 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, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple would appear to check all the right boxes for Warren Buffett Despite Berkshire Hathaway holding stakes in approximately four dozen securities, nearly 47% of the company's $366 billion of invested assets is tied up in tech stock Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts. During Berkshire Hathaway's annual shareholder meeting, the Oracle of Omaha was quoted as saying that Apple is "a better business than any we own" when justifying why it represents such an outsized percentage of invested assets.
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Apple would appear to check all the right boxes for Warren Buffett Despite Berkshire Hathaway holding stakes in approximately four dozen securities, nearly 47% of the company's $366 billion of invested assets is tied up in tech stock Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett is easily one of the greatest investors of our time.
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Apple would appear to check all the right boxes for Warren Buffett Despite Berkshire Hathaway holding stakes in approximately four dozen securities, nearly 47% of the company's $366 billion of invested assets is tied up in tech stock Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts. When the Oracle of Omaha and his investing lieutenants, Ted Weschler and Todd Combs, first began purchasing shares of Apple for Berkshire Hathaway's investment portfolio in the first quarter of 2016, they were, indeed, buying a wonderful company at a fair price.
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Apple would appear to check all the right boxes for Warren Buffett Despite Berkshire Hathaway holding stakes in approximately four dozen securities, nearly 47% of the company's $366 billion of invested assets is tied up in tech stock Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts. But not even Warren Buffett follows his own investing rules all the time.
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2023-06-28 00:00:00 UTC
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SCHG: Can This Low-Cost Growth ETF Help Investors Beat the Market?
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AAPL
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https://www.nasdaq.com/articles/schg%3A-can-this-low-cost-growth-etf-help-investors-beat-the-market
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Many experienced investors know that it’s hard to beat the market over time. When they say this, they mean that it’s difficult to pick stocks and ETFs that can sustainably outperform broader market indices like the S&P 500 (SPX) on a long-term basis.
This is with good reason -- the S&P 500 sets a high bar with an annualized total return of just over 10% going all the way back to 1957 when it took on its current incarnation with 500 components.
Let’s take a look at one popular ETF, the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG), and see if it’s worthy of a spot in investors' portfolios by being one of the rare ETFs that beats the odds and can help investors outperform the market over time.
What Does SCHG ETF Do?
SCHG is a growth-oriented ETF from Charles Schwab (NYSE:SCHW) that has about $18.7 billion in assets under management. According to Schwab, the ETF seeks to replicate the performance of “the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index” before fees and expenses.
Blue-Chip Holdings
Because it invests in an index composed of large-cap U.S. growth stocks, most investors will likely be familiar with SCHG’s top holdings, which skew largely towards the mega-cap growth stocks that lead today’s stock market. Below, you’ll find a list of SCHG’s top 10 holdings using TipRanks’ holdings tool.
Apple (NASDAQ:AAPL) is SCHG's largest holding with a 14.1% weighting, followed closely by Microsoft (NASDAQ:MSFT), which has a 12.6% weighting. Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Alphabet (NASDAQ:GOOGL) round out the top five. However, it’s not all tech stocks, as UnitedHealth Group (NYSE:UNH) and Visa (NYSE:V) take the final two spots in SCHG's top 10.
SCHG is diversified in that it owns many stocks, with 243 total holdings. However, its top 10 holdings account for 55.5% of the fund, making the ETF a bit top-heavy, especially when considering that Microsoft and Apple combine to account for over a quarter of SCHG’s total assets.
This is a strong group of holdings, as five of the 10 feature Smart Scores of 8 out of 10 or better. The Smart Score is TipRanks’ proprietary quantitative stock scoring system. 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 above is equivalent to an Outperform rating. SCHG itself has an outperform-equivalent ETF Smart Score of 8.
Is SCHG Stock a Buy, According to Analysts?
Turning to Wall Street, SCHG has a Moderate Buy consensus rating, as 68.04% of analyst ratings are Buys, 28.42% are Holds, and 3.54% are Sells. At $78.98, the average SCHG stock price target implies 7.4% upside potential.
Impressive Track Record
Ultimately, you want to evaluate how any investment has performed over the long term, and SCHG does not disappoint in this regard. As of the end of May, the growth-oriented ETF posted a scorching three-year annualized total return of 18.5%.
Zooming out to a five-year time frame, SCHG cooled down a bit from that red-hot rate but still posted an impressive five-year annualized return of 13.5%. Going out even further, over the past 10 years, SCHG upped this return to 14.4% on an annualized basis. Going all the way back to its inception in 2009, SCHG has returned 14.2% on an annualized basis.
As you can see, SCHG has posted double-digit returns on an annualized basis for more than 10 years, making this ETF a long-term winner. It’s hard to find fault with these types of results, and these are the types of long-term returns that can help investors to grow their portfolios significantly over time.
These total returns also mean that SCHG is a rare ETF that can say it beats the broader market over time. As of the end of May, the Vanguard S&P 500 ETF (NYSEARCA:VOO), a good proxy for the S&P 500, had annualized total returns of 12.8%, 11%, and 11.9% on a three-, five- and 10-year basis, respectively, meaning that SCHG beat the S&P 500 over all three time frames.
Alternatively, because it features large-cap growth and tech stocks so heavily, it is also worth comparing SCHG to a Nasdaq ETF like the Invesco QQQ Trust (NASDAQ:QQQ), which invests in the Nasdaq 100 Index (NDX).
SCHG handily beat QQQ over the three year timespan, with the aforementioned 18.5% annualized return versus QQQ’s 15%. However, going out to five years, QQQ’s 16.2% return beats SCHG’s 13.5%. Going all the way out to 10 years, QQQ also outperformed SCHG with an 18% return to SCHG’s 14.4%.
As you can see, SCHG has been better than QQQ in recent years, but QQQ has the edge when expanding the time frame out to five and 10 years. However, at the end of the day, these both look like great ETFs.
Below, you can take a look at a comparison of SCHG, VOO, and QQQ using TipRanks’ ETF Comparison Tool, which lets investors compare up to 20 ETFs at a time across a wide variety of criteria.
Hard to Beat These Fees
In addition to proving its mettle as a strong performer over time, SCHG is also attractive because of its low fees. With an expense ratio of just 0.04%, an investor putting $10,000 into SCHG would pay just $4 in fees in year one -- less than a cup of coffee at many places nowadays.
Assuming SCHG gains 5% a year going forward and the current fees stay the same, an SCHG investor would pay just $51 in fees over the course of the decade, making this a cost-effective ETF that helps investors to preserve and grow the principal of their investment over time.
For the sake of comparison, QQQ's 0.2% expense ratio is actually a very reasonable one, but using the same parameters, after 10 years, an investor would pay $255 in fees, or about five times as much as they would pay with SCHG.
Investor Takeaway
It's hard to beat the S&P 500 over the long term, so when you find an ETF that does, you want to pay attention. With a long history of beating the broader market, high-quality blue-chip holdings, and investor-friendly fees, SCHG looks like a solid building block for investors to make a core piece of their long-term portfolios.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) is SCHG's largest holding with a 14.1% weighting, followed closely by Microsoft (NASDAQ:MSFT), which has a 12.6% weighting. When they say this, they mean that it’s difficult to pick stocks and ETFs that can sustainably outperform broader market indices like the S&P 500 (SPX) on a long-term basis. As of the end of May, the Vanguard S&P 500 ETF (NYSEARCA:VOO), a good proxy for the S&P 500, had annualized total returns of 12.8%, 11%, and 11.9% on a three-, five- and 10-year basis, respectively, meaning that SCHG beat the S&P 500 over all three time frames.
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Apple (NASDAQ:AAPL) is SCHG's largest holding with a 14.1% weighting, followed closely by Microsoft (NASDAQ:MSFT), which has a 12.6% weighting. Let’s take a look at one popular ETF, the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG), and see if it’s worthy of a spot in investors' portfolios by being one of the rare ETFs that beats the odds and can help investors outperform the market over time. According to Schwab, the ETF seeks to replicate the performance of “the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index” before fees and expenses.
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Apple (NASDAQ:AAPL) is SCHG's largest holding with a 14.1% weighting, followed closely by Microsoft (NASDAQ:MSFT), which has a 12.6% weighting. Let’s take a look at one popular ETF, the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG), and see if it’s worthy of a spot in investors' portfolios by being one of the rare ETFs that beats the odds and can help investors outperform the market over time. Blue-Chip Holdings Because it invests in an index composed of large-cap U.S. growth stocks, most investors will likely be familiar with SCHG’s top holdings, which skew largely towards the mega-cap growth stocks that lead today’s stock market.
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Apple (NASDAQ:AAPL) is SCHG's largest holding with a 14.1% weighting, followed closely by Microsoft (NASDAQ:MSFT), which has a 12.6% weighting. Let’s take a look at one popular ETF, the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG), and see if it’s worthy of a spot in investors' portfolios by being one of the rare ETFs that beats the odds and can help investors outperform the market over time. Alternatively, because it features large-cap growth and tech stocks so heavily, it is also worth comparing SCHG to a Nasdaq ETF like the Invesco QQQ Trust (NASDAQ:QQQ), which invests in the Nasdaq 100 Index (NDX).
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15163.0
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2023-06-28 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq edge higher as Apple counters Fed jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-edge-higher-as-apple-counters-fed-jitters
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By Sruthi Shankar and Johann M Cherian
June 28 (Reuters) - The S&P 500 and Nasdaq edged higher on Wednesday as gains in tech giants Apple and Microsoft offset worries over the Federal Reserve's aggressive interest rate hikes slowing the U.S. economy.
Apple Inc AAPL.O rose 0.7% to an all-time high, while Amazon AMZN.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 1.1% and 3.2%.
"The market is very focused on the only real source of growth which is the technology sector and specifically the AI sector, which has raised the valuation of that vector significantly versus the rest of the market," said Michael Green, portfolio manager at Simplify Asset Management.
Chipmaker Nvidia NVDA.O was down 0.6%, having recovered from sharp losses earlier in the session after the Wall Street Journal reported the United States could impose new curbs on exports of artificial intelligence chips to China.
Wall Street snapped its losing streak on Tuesday as upbeat economic data eased fears of an imminent U.S. recession, though it bolstered expectations that the Fed could hike rates again in July.
Federal Reserve Chair Jerome Powell reiterated in a European Central Bank forum on Wednesday that most policymakers still see two rate increases this year and did not rule out more rate hike action at the U.S. central bank's next meeting.
"The Fed is going to continue to fight inflation until they see evidence of either the labor market weakening or more concrete evidence of inflation falling," said Patrick Kaser, managing director and portfolio manager at Brandywine Global.
"If the Fed is going to make a mistake, they're going to make it on being too tight rather than easing too soon. So those comments are pretty consistent in that regard."
Traders now see an 81.8% chance of the Fed hiking interest rates by 25 basis points to a 5.25%-5.50% range in July and expect the central bank to hold rates through the end of 2023, according to CMEGroup's Fedwatch tool.
At 11:44 a.m. ET, the Dow Jones Industrial Average .DJI was down 66.44 points, or 0.20%, at 33,860.30, the S&P 500 .SPX was up 3.94 points, or 0.09%, at 4,382.35, and the Nasdaq Composite .IXIC was up 66.54 points, or 0.49%, at 13,622.21.
Investors are awaiting the Personal Consumption Expenditures (PCE) index reading, the Fed's favored inflation gauge, initial jobless claims data and the final reading of first-quarter GDP later this week to assess the state of the U.S. economy.
Bank stocks slipped ahead of the Fed's annual stress test results, which will help determine how much capital banks need to be healthy and how much they can return to shareholders via stock buybacks and dividends.
The S&P banks index .SPXBK slipped 0.5% ahead of the results due after markets close on Wednesday.
Netflix Inc NFLX.O climbed 4.3% as Oppenheimer raised the video-streaming company's price target to $500 from $450.
General Mills GIS.N slid 4.7% after the packaged food maker forecast full-year profit below analysts' estimates.
Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE and a 1.07-to-1 ratio on the Nasdaq.
The S&P index recorded 36 new 52-week highs and six new lows, while the Nasdaq recorded 50 new highs and 79 new lows.
(Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi)
((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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Apple Inc AAPL.O rose 0.7% to an all-time high, while Amazon AMZN.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 1.1% and 3.2%. By Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The S&P 500 and Nasdaq edged higher on Wednesday as gains in tech giants Apple and Microsoft offset worries over the Federal Reserve's aggressive interest rate hikes slowing the U.S. economy. Chipmaker Nvidia NVDA.O was down 0.6%, having recovered from sharp losses earlier in the session after the Wall Street Journal reported the United States could impose new curbs on exports of artificial intelligence chips to China.
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Apple Inc AAPL.O rose 0.7% to an all-time high, while Amazon AMZN.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 1.1% and 3.2%. By Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The S&P 500 and Nasdaq edged higher on Wednesday as gains in tech giants Apple and Microsoft offset worries over the Federal Reserve's aggressive interest rate hikes slowing the U.S. economy. The S&P banks index .SPXBK slipped 0.5% ahead of the results due after markets close on Wednesday.
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Apple Inc AAPL.O rose 0.7% to an all-time high, while Amazon AMZN.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 1.1% and 3.2%. By Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The S&P 500 and Nasdaq edged higher on Wednesday as gains in tech giants Apple and Microsoft offset worries over the Federal Reserve's aggressive interest rate hikes slowing the U.S. economy. Federal Reserve Chair Jerome Powell reiterated in a European Central Bank forum on Wednesday that most policymakers still see two rate increases this year and did not rule out more rate hike action at the U.S. central bank's next meeting.
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Apple Inc AAPL.O rose 0.7% to an all-time high, while Amazon AMZN.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 1.1% and 3.2%. By Sruthi Shankar and Johann M Cherian June 28 (Reuters) - The S&P 500 and Nasdaq edged higher on Wednesday as gains in tech giants Apple and Microsoft offset worries over the Federal Reserve's aggressive interest rate hikes slowing the U.S. economy. Traders now see an 81.8% chance of the Fed hiking interest rates by 25 basis points to a 5.25%-5.50% range in July and expect the central bank to hold rates through the end of 2023, according to CMEGroup's Fedwatch tool.
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15164.0
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2023-06-27 00:00:00 UTC
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After Hours Most Active for Jun 27, 2023 : NIO, QQQ, GOOGL, AAPL, SNAP, CPNG, TAL, GOOG, SIRI, INTC, ADC, PCG
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jun-27-2023-%3A-nio-qqq-googl-aapl-snap-cpng-tal-goog-siri-intc
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The NASDAQ 100 After Hours Indicator is down -16.52 to 14,929.39. The total After hours volume is currently 105,872,964 shares traded.
The following are the most active stocks for the after hours session:
NIO Inc. (NIO) is +0.01 at $9.35, with 5,738,261 shares traded. NIO's current last sale is 81.3% of the target price of $11.5.
Invesco QQQ Trust, Series 1 (QQQ) is -0.42 at $363.41, with 3,325,196 shares traded. This represents a 42.93% increase from its 52 Week Low.
Alphabet Inc. (GOOGL) is -0.22 at $118.11, with 3,182,605 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Apple Inc. (AAPL) is -0.18 at $187.88, with 2,765,802 shares traded., following a 52-week high recorded in today's regular session.
Snap Inc. (SNAP) is -0.02 at $11.46, with 2,566,014 shares traded. SNAP's current last sale is 114.6% of the target price of $10.
Coupang, Inc. (CPNG) is unchanged at $17.32, with 2,390,584 shares traded. As reported by Zacks, the current mean recommendation for CPNG is in the "buy range".
TAL Education Group (TAL) is unchanged at $6.04, with 2,356,934 shares traded. TAL's current last sale is 97.42% of the target price of $6.2.
Alphabet Inc. (GOOG) is -0.21 at $118.80, with 2,278,956 shares traded. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Sirius XM Holdings Inc. (SIRI) is +0.0194 at $4.11, with 2,267,460 shares traded. As reported in the last short interest update the days to cover for SIRI is 12.306221; this calculation is based on the average trading volume of the stock.
Intel Corporation (INTC) is +0.01 at $34.11, with 2,190,518 shares traded. INTC's current last sale is 108.29% of the target price of $31.5.
Agree Realty Corporation (ADC) is unchanged at $65.56, with 1,741,185 shares traded. As reported by Zacks, the current mean recommendation for ADC is in the "buy range".
Pacific Gas & Electric Co. (PCG) is unchanged at $16.94, with 1,632,926 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.18 at $187.88, with 2,765,802 shares traded., following a 52-week high recorded in today's regular session. As reported in the last short interest update the days to cover for SIRI is 12.306221; this calculation is based on the average trading volume of the stock. Pacific Gas & Electric Co. (PCG) is unchanged at $16.94, with 1,632,926 shares traded.
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Apple Inc. (AAPL) is -0.18 at $187.88, with 2,765,802 shares traded., following a 52-week high recorded in today's regular session. The total After hours volume is currently 105,872,964 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
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Apple Inc. (AAPL) is -0.18 at $187.88, with 2,765,802 shares traded., following a 52-week high recorded in today's regular session. The total After hours volume is currently 105,872,964 shares traded. NIO Inc. (NIO) is +0.01 at $9.35, with 5,738,261 shares traded.
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Apple Inc. (AAPL) is -0.18 at $187.88, with 2,765,802 shares traded., following a 52-week high recorded in today's regular session. The following are the most active stocks for the after hours session: NIO's current last sale is 81.3% of the target price of $11.5.
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15165.0
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2023-06-27 00:00:00 UTC
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Wall Street closes higher as upbeat economic data allays slowdown fears
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AAPL
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https://www.nasdaq.com/articles/wall-street-closes-higher-as-upbeat-economic-data-allays-slowdown-fears
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nan
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nan
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By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes.
Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month, while U.S. consumer confidence increased to a near 1-1/2 year high in June.
While the economic data was encouraging, Rhys Williams, chief strategist at Spouting Rock Asset Management, said the market also rose on seasonal factors.
"You'd a bad week in the stock market last week and a bad day on Monday. It's just a bit of recovery," said Williams. "There could be some quarter-end window-dressing too as we get close to the end of the quarter."
The blue-chip Dow Jones Industrial Average .DJIsnapped a six-day losing streak on Tuesday while the tech-heavy Nasdaq Composite .IXIC was eyeing its best first-half performance in 40 years and the S&P 500 .SPXadvanced after falling in five of the last six sessions.
According to preliminary data, the S&P 500 .SPX gained 49.25 points, or 1.14%, to end at 4,378.07 points, while the Nasdaq Composite .IXIC gained 219.71 points, or 1.65%, to 13,555.49. The Dow Jones Industrial Average .DJI rose 210.66 points, or 0.62%, to 33,925.37.
Signs of U.S. economic resilience also boosted the Dow Transports index .DJT and small-cap Russell 2000 index .RUT.
And the PHLX Housing index .HGX hit an all-time high on Tuesday.
Traders were pricing in a roughly 77% chance the Fed will raise interest rates by 25 bps to the 5.25%-5.50% range in its July meeting, according to CME Group's Fedwatch tool, up from 74.4% a day earlier.
More economic data is expected this week, including a key inflation measure, as well as Fed Chair Jerome Powell's speech at the European Central Bank Forum in Sintra, Portugal, which could provide cues on the path of interest rates.
Powell's hawkish comments last week stalled a U.S. stock rally that had pushed the S&P 500 and Nasdaq to an over one-year high and the Dow to a six-month peak.
Despite recent market weakness, a growth stocks rally, an upbeat earnings season and hopes of the Fed ending its monetary tightening soon have set the main indexes on course for quarterly gains.
Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O.
Meta Platforms Inc META.O shares rose after Citigroup raised its price target on the stock.
Snowflake SNOW.N climbed after the cloud data analytics company announced a partnership with Nvidia to allow customers to build artificial intelligence models using their own data.
Walgreens Boots Alliance WBA.O shares sank as the pharmacy chain cut its annual profit forecast on lower demand for COVID-19 tests and vaccines.
Other drugstore chains, including CVS Health Corp CVS.N and Rite Aid Corp RAD.N, also fell.
Lordstown Motors Corp RIDE.O shares slumped after the U.S. electric truck manufacturer filed for bankruptcy protection and put itself up for sale.
(Reporting by Sinéad Carew in New York, Sruthi Shankar, Johann M Cherian in Bengaluru and Terence Gabriel in New York; Editing by Shinjini Ganguli and Richard Chang)
((sinead.carew@thomsonreuters.com; +1 332-219-1897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month, while U.S. consumer confidence increased to a near 1-1/2 year high in June.
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Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. The blue-chip Dow Jones Industrial Average .DJIsnapped a six-day losing streak on Tuesday while the tech-heavy Nasdaq Composite .IXIC was eyeing its best first-half performance in 40 years and the S&P 500 .SPXadvanced after falling in five of the last six sessions.
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Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. According to preliminary data, the S&P 500 .SPX gained 49.25 points, or 1.14%, to end at 4,378.07 points, while the Nasdaq Composite .IXIC gained 219.71 points, or 1.65%, to 13,555.49.
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Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month, while U.S. consumer confidence increased to a near 1-1/2 year high in June.
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15166.0
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2023-06-27 00:00:00 UTC
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Technology Sector Update for 06/27/2023: AAPL, META, NNDM, SSYS
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-06-27-2023%3A-aapl-meta-nndm-ssys
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nan
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nan
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Tech stocks were higher Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.6% and the Philadelphia Semiconductor index up 2.7%.
In company news, Apple (AAPL) lost a ruling by a US judge to dismiss the company's attempt to stop a class-action lawsuit alleging that Chief Executive Officer Tim Cook defrauded shareholders by hiding decreasing Chinese demand for iPhones, Reuters reported Tuesday. Apple shares were up 1.5%.
Nano Dimension (NNDM) said Tuesday it has raised the price of its tender offer to $20.05 per share in cash from $18 for outstanding shares of Stratasys (SSYS). Stratasys jumped 6.8% and Nano Dimension rose 1.5%.
Meta Platforms (META) said Tuesday it has rolled out new tools to improve parental supervision for Messenger and Instagram and limit unwanted interactions between teens and strangers. Meta shares gained 3.2%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Apple (AAPL) lost a ruling by a US judge to dismiss the company's attempt to stop a class-action lawsuit alleging that Chief Executive Officer Tim Cook defrauded shareholders by hiding decreasing Chinese demand for iPhones, Reuters reported Tuesday. Tech stocks were higher Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 1.6% and the Philadelphia Semiconductor index up 2.7%. Meta Platforms (META) said Tuesday it has rolled out new tools to improve parental supervision for Messenger and Instagram and limit unwanted interactions between teens and strangers.
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In company news, Apple (AAPL) lost a ruling by a US judge to dismiss the company's attempt to stop a class-action lawsuit alleging that Chief Executive Officer Tim Cook defrauded shareholders by hiding decreasing Chinese demand for iPhones, Reuters reported Tuesday. Apple shares were up 1.5%. Nano Dimension (NNDM) said Tuesday it has raised the price of its tender offer to $20.05 per share in cash from $18 for outstanding shares of Stratasys (SSYS).
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In company news, Apple (AAPL) lost a ruling by a US judge to dismiss the company's attempt to stop a class-action lawsuit alleging that Chief Executive Officer Tim Cook defrauded shareholders by hiding decreasing Chinese demand for iPhones, Reuters reported Tuesday. Nano Dimension (NNDM) said Tuesday it has raised the price of its tender offer to $20.05 per share in cash from $18 for outstanding shares of Stratasys (SSYS). Meta Platforms (META) said Tuesday it has rolled out new tools to improve parental supervision for Messenger and Instagram and limit unwanted interactions between teens and strangers.
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In company news, Apple (AAPL) lost a ruling by a US judge to dismiss the company's attempt to stop a class-action lawsuit alleging that Chief Executive Officer Tim Cook defrauded shareholders by hiding decreasing Chinese demand for iPhones, Reuters reported Tuesday. Apple shares were up 1.5%. Nano Dimension (NNDM) said Tuesday it has raised the price of its tender offer to $20.05 per share in cash from $18 for outstanding shares of Stratasys (SSYS).
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15167.0
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2023-06-27 00:00:00 UTC
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US STOCKS-Wall Street closes higher as upbeat economic data allays slowdown fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-higher-as-upbeat-economic-data-allays-slowdown-fears
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nan
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nan
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By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes.
Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month, while U.S. consumer confidence increased to a near 1-1/2 year high in June.
The data gave investors a reason to buy back into stocks after a "pretty vicious correction" in the last several sessions, said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
"What we have today is this series of economic releases that on balance fit this setting of an economy that continues to be in an expansionary mode, without at the same time suggesting there's any condition that's running too hot."
And just days before the second quarter ends, Luschini said it was notable that some the top sector performers on Tuesday, such as consumer discretionary .SPLRCD and technology .SPLRCT, were also the market's biggest gainers on a year-to-date basis.
While the economic data was encouraging, Rhys Williams, chief strategist at Spouting Rock Asset Management, said the market was likely helped by so-called window-dressing, when fund managers add outperforming assets to their portfolio for their quarter-end statements.
"You'd a bad week in the stock market last week and a bad day on Monday. It's just a bit of recovery," said Williams. "There could be some quarter-end window-dressing too as we get close to the end of the quarter."
The blue-chip Dow Jones Industrial Average .DJI snapped a six-day losing streak on Tuesday while the tech-heavy Nasdaq Composite .IXIC was eyeing its best first-half performance in 40 years and the S&P 500 .SPX advanced after falling in five of the last six sessions.
The Dow Jones Industrial Average .DJI rose 212.03 points, or 0.63%, to 33,926.74; the S&P 500 .SPX gained 49.59 points, or 1.15%, at 4,378.41; and the Nasdaq Composite .IXIC added 219.90 points, or 1.65%, at 13,555.67.
The signs of U.S. economic resilience also boosted the Dow Transports index .DJT, which closed up 2.7% and the small-cap Russell 2000 index .RUT, which advanced 1.5%.
And the PHLX Housing index .HGX closed up 2.99% after hitting an all-time high on Tuesday.
Traders were pricing in a roughly 77% chance the Fed will raise interest rates by 25 bps to the 5.25%-5.50% range in its July meeting, according to CME Group's Fedwatch tool, up from 74.4% a day earlier.
More economic data is expected this week, including a key inflation measure, as well as Fed Chair Jerome Powell's speech at the European Central Bank Forum in Sintra, Portugal, which could provide cues on the path of interest rates.
Powell's hawkish comments last week stalled a U.S. stock rally that had pushed the S&P 500 and Nasdaq to an over one-year high and the Dow to a six-month peak.
Despite recent market weakness, a growth stocks rally, an upbeat earnings season and hopes of the Fed ending its monetary tightening soon have set the main indexes on course for quarterly gains.
Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O.
Meta Platforms Inc META.O shares rose 3% after Citigroup raised its price target on the stock.
Snowflake SNOW.N climbed 4.2% after the cloud data analytics company announced a partnership with Nvidia to allow customers to build artificial intelligence models using their own data.
Walgreens Boots Alliance WBA.O shares sank 9.3% as the pharmacy chain cut its annual profit forecast on lower demand for COVID-19 tests and vaccines.
Other drugstore chains, including CVS Health Corp CVS.N and Rite Aid Corp RAD.N, also fell.
Lordstown Motors Corp RIDE.O shares slumped 17.2% after the U.S. electric truck manufacturer filed for bankruptcy protection and put itself up for sale.
Advancing issues outnumbered decliners on the NYSE by a 2.55-to-1 ratio; on Nasdaq, a 1.54-to-1 ratio favored advancers.
The S&P 500 posted 46 new 52-week highs and one new low; the Nasdaq Composite recorded 64 new highs and 150 new lows.
On U.S. exchanges 10.16 billion shares changed hands compared with the 11.63 billion average for the last 20 sessions.
(Reporting by Sinéad Carew in New York, Sruthi Shankar, Johann M Cherian in Bengaluru and Terence Gabriel in New York; Editing by Shinjini Ganguli and Richard Chang)
((sinead.carew@thomsonreuters.com; +1 332-219-1897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. The data gave investors a reason to buy back into stocks after a "pretty vicious correction" in the last several sessions, said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
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Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. The Dow Jones Industrial Average .DJI rose 212.03 points, or 0.63%, to 33,926.74; the S&P 500 .SPX gained 49.59 points, or 1.15%, at 4,378.41; and the Nasdaq Composite .IXIC added 219.90 points, or 1.65%, at 13,555.67.
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Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. While the economic data was encouraging, Rhys Williams, chief strategist at Spouting Rock Asset Management, said the market was likely helped by so-called window-dressing, when fund managers add outperforming assets to their portfolio for their quarter-end statements.
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Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. "There could be some quarter-end window-dressing too as we get close to the end of the quarter."
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15168.0
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2023-06-27 00:00:00 UTC
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We’re Not in a New Bull Market. Here’s Why.
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AAPL
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https://www.nasdaq.com/articles/were-not-in-a-new-bull-market.-heres-why.
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you look at the major U.S. equity market indices, you’d probably conclude that everything is awesome! The market is ripping, AI mania has sent tech stocks soaring and the CBOE Volatility Index (VIX), the popular measure of market volatility, just hit 3-year lows. Even if the stock market isn’t your thing right now, you can park your money in short-term Treasury bills yielding more than 5%!
Source: Chart courtesy of StockCharts.com
As of now, the S&P 500 has gained more than 20% off its mid-October 2022 low. That’s the level that a lot of market watchers will tell you defines the start of a new bull market. Is it though? Investors are sure trading like it is, but there are two pieces of evidence that suggest it isn’t.
Shape of 2023 Recovery Clashes With History
The first is the shape of the recovery itself.
New bull markets tend to begin with an overall sentiment of capitulation. Stock prices have declined significantly. Since most investors are performance chasers, they’re adding to the selling pressure after prices have already gone down. There’s a general malaise hanging over the market about how much money has been lost.
When there’s finally a catalyst that reverses sentiment, it’s usually enough to ignite a sharp and swift rally. While one could point to the peak of inflation or the enthusiasm surrounding AI as those potential catalysts, there really hasn’t been the big marker that would indicate a turning point. The U.S. economy has remained healthier and more resilient for longer than originally anticipated, but that’s not really a reversal. It’s more of an extension, and that’s why this rally doesn’t look like the others.
Of the bull market inceptions over the past century, the average rally to 20% has taken around 60 days. In 2022-2023, the road to 20% has taken 240 days.
The length of time it’s taken to get to this point this year is not even close to how long it’s taken historically. The next longest 20% rally took nearly 100 fewer days to get there — and that was all the way back in 1929!
Another element of this data set is just as interesting. Let’s say that this is indeed the start of a new bull market even though it’s taken 8 months to get there. How does that compare to the first 8 months of past new bull markets?
Again, not favorably. This would be the second smallest gain to start a new bull market. In other words, this would be perhaps the slowest and shallowest ever start to a bull market.
7 Top Stocks Are Leading the ‘New Bull Market’
The second piece of evidence that suggests we are not in a bull market is the composition of the current rally.
We talk about the S&P 500 as the stock market benchmark, but this year it has been all about the S&P 7 – Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA). Those handful of stocks have accounted for almost all the market’s gains this year.
Source: Charts by TradingView
Look at it another way. The equal-weighted S&P 500, which minimizes the influence of the FAAMG names, trails the traditional index by more than 10% year to date. The gap between the comparable tech sector indices is roughly 20%. If you’re using the S&P 500 and Nasdaq-100 as your measuring sticks for stock market health, you’re missing a big piece of the picture.
Like an onion, this market gets stinkier once you start peeling back the layers. If the broader U.S. stock market is actually much weaker than it looks and the current rally would qualify as one of the weakest starts to a bull market ever, is it really the start of a new bull market?
The evidence suggests that it’s not.
On the date of publication, Michael Gayed did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Michael A. Gayed is the Publisher of The Lead-Lag Report, and Portfolio Manager at Tidal Financial Group, an investment management company specializing in ETF-focused research, investment strategies and services designed for financial advisors, RIAs, family offices and investment managers.
InvestorPlace readers that are new subscribers to the The Lead-Lag Report can receive a 30% discount by entering the promo code “InvestorPlace30” with your order.
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The post We’re Not in a New Bull Market. Here’s Why. 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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We talk about the S&P 500 as the stock market benchmark, but this year it has been all about the S&P 7 – Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA). InvestorPlace readers that are new subscribers to the The Lead-Lag Report can receive a 30% discount by entering the promo code “InvestorPlace30” with your order. More From InvestorPlace Buy This $5 Stock BEFORE This Apple Project Goes Live Did Elon Musk Just Trigger a New Netscape Moment?
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We talk about the S&P 500 as the stock market benchmark, but this year it has been all about the S&P 7 – Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you look at the major U.S. equity market indices, you’d probably conclude that everything is awesome! Michael A. Gayed is the Publisher of The Lead-Lag Report, and Portfolio Manager at Tidal Financial Group, an investment management company specializing in ETF-focused research, investment strategies and services designed for financial advisors, RIAs, family offices and investment managers.
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We talk about the S&P 500 as the stock market benchmark, but this year it has been all about the S&P 7 – Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA). 7 Top Stocks Are Leading the ‘New Bull Market’ The second piece of evidence that suggests we are not in a bull market is the composition of the current rally. If the broader U.S. stock market is actually much weaker than it looks and the current rally would qualify as one of the weakest starts to a bull market ever, is it really the start of a new bull market?
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We talk about the S&P 500 as the stock market benchmark, but this year it has been all about the S&P 7 – Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA). Investors are sure trading like it is, but there are two pieces of evidence that suggest it isn’t. 7 Top Stocks Are Leading the ‘New Bull Market’ The second piece of evidence that suggests we are not in a bull market is the composition of the current rally.
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2023-06-27 00:00:00 UTC
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Here’s 2023’s Best-Performing Actively-Managed ETF
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AAPL
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https://www.nasdaq.com/articles/heres-2023s-best-performing-actively-managed-etf
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nan
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nan
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Nearly halfway through 2023, a relatively unheralded ETF with under $1 billion in assets under management is the best-performing actively-managed diversified ETF this year. It’s the Fidelity Blue Chip Growth ETF (BATS:FBCG), and it’s up a scintillating 38.9% year to date. Here’s a look at why this ETF is on a tear, how it invests, and whether it could be a good addition to investors' portfolios.
Actively vs. Passively-Managed Funds
Before delving into the specifics of FBCG itself, let’s briefly touch on what actively managed means and the difference between actively-managed and passively-managed funds.
Nowadays, many of the market’s most-popular ETFs are passively managed, meaning that they simply track a specific index with the goal of replicating its performance before fees and expenses. Proponents say that index funds remove the room for human error.
Conversely, in an actively-managed fund, a portfolio manager or several managers actively make investment decisions in an effort to outperform a specific benchmark and generate superior returns. Actively-managed funds generally have higher turnover and more trading and are typically more expensive (in terms of fees) than passively-managed funds or index funds.
Nonetheless, index funds have grown in popularity in recent years, as research has consistently shown that most active managers fail to beat their benchmark over the long term.
What Does the FBCG ETF Do?
Now that we've reviewed active versus passive, let's focus on actively-managed FBCG. With $632.6 million in assets under management (AUM), FBCG doesn’t get quite the same love from investors as some of the more popular large-cap growth ETFs out there. However, part of the reason for this is that it’s relatively new -- the ETF only launched in 2020.
It normally invests at least 80% of its assets in blue-chip companies, which Fidelity Management & Research says are “well-known, well-established, and well-capitalized” companies. Fidelity says that the companies FBCG invests in typically have medium or large market caps, and they believe that they exhibit “above-average growth potential.”
Now that we know FBCG’s strategy and what it looks for in investments, what does it look like in practice?
FBCG's Blue-Chip Portfolio
FBCG holds 162 positions, and its top 10 holdings account for 55.4% of assets.
With a focus on blue-chip, medium- and large-cap growth stocks, it’s no surprise that FBCG’s top positions are dominated by large-cap tech stocks.
Much has been made about the broader market’s gains in 2023, coming largely from the "magnificent seven" -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA).
These seven stocks are also FBCG’s top seven holdings, which explains why the ETF has had such a strong performance this year. Outside of the "magnificent seven," three more tech-oriented stocks, Marvell Technologies (NASDAQ:MRVL), Uber (NYSE:UBER), and Netflix (NASDAQ:NFLX), round out FBCG’s top holdings.
Take a look at the table below from TipRank’s holdings tool for an overview of FBCG’s top 10 holdings.
While FBCG is tech-heavy, it isn’t limited to tech stocks. Just outside the top 10, you’ll find stocks like UnitedHealth Group (NYSE:UNH), Lowe’s (NYSE:LOW), Eli Lilly (NYSE:LLY), Nike (NYSE:NKE), and Mastercard (NYSE:MA). Energy drink company Celsius Holdings (NASDAQ:CELH), which is up 136% over the past year, is also among FBCG’s holdings, so the managers are finding some strong performers beyond the "usual suspects."
In terms of sector allocations, information technology is by far the largest sector that the fund invests in, with a 40.9% weighting (as of the end of Q1). After that, consumer discretionary accounts for a 22.9% weighting, and communications services accounts for a 13.9% weighting. All other sectors have a single-digit weighting.
Is FBCG Stock a Buy, According to Wall Street's Top Analysts?
Turning to the opinions of Wall Street's best-performing analysts (measured by TipRanks), FBCG has a Moderate Buy consensus rating, as 70.1% of analyst ratings are Buys, 27.2% are Holds, and 2.7% are Sells. At $32.17, the average FBCG stock price target implies 9.8% upside potential.
Paying the Price for Active Management
One downside to FBCG is that it has relatively high fees, with an expense ratio of 0.59%. This means that an investor putting $10,000 into FBCG will pay $59 in fees in year one. Over the course of a 10-year investment, assuming the expense ratio remains the same and that the fund gains 5% a year, this investor will pay $738 in fees.
In fairness to FBCG, this is an actively-managed fund, which is more expensive to run than a passive index fund, but this is still something investors need to keep in mind, as these fees add up over time.
Investor Takeaway
With large-cap tech stocks having a huge year, FBCG is in the driver’s seat, and the fund has made hay while the sun is shining with a red-hot gain of nearly 40% year-to-date. The fund has a high-quality portfolio of blue-chip stocks and a solid outlook from analysts, so there’s a lot to like here.
On the other hand, the fairly new fund hasn’t yet established much of a long-term track record, so it remains to be seen how it performs over a longer time frame. Additionally, its high fees are something that investors need to consider when investing.
Alternatively, investors who want to invest in these same types of stocks have plenty of other options that have longer track records and lower fees, such as the Invesco QQQ Trust ETF (NASDAQ:QQQ) or the Schwab U.S. Large Cap Growth ETF (NYSEARCA:SCHG).
The top 10 holdings of QQQ and SCHG have plenty of overlap with FBCG’s top 10, as all three funds hold the "magnificent seven" within their top 10 holdings, and both QQQ and SCHG are up nicely year-to-date, with total returns of 37.9% and 33.5%, respectively.
QQQ’s expense ratio of 0.2% and SCHG’s expense ratio of 0.04% are considerably lower than that of FBCG. An investor in QQQ would pay $255 in fees over a 10-year time frame, while an investor in SCHG would pay just $51 (assuming 5% annual returns).
This isn’t to say that there's anything wrong with a more expensive, actively-managed ETF, especially one that is performing as well as FBCG. Investors interested in this style of portfolio should certainly kick the tires on it.
This ETF looks like a decent choice for investors who are interested in something actively-managed or want to simply invest in blue-chip, large-cap growth stocks and are okay with the higher expense ratio and shorter track record.
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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Much has been made about the broader market’s gains in 2023, coming largely from the "magnificent seven" -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). Nonetheless, index funds have grown in popularity in recent years, as research has consistently shown that most active managers fail to beat their benchmark over the long term. Investor Takeaway With large-cap tech stocks having a huge year, FBCG is in the driver’s seat, and the fund has made hay while the sun is shining with a red-hot gain of nearly 40% year-to-date.
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Much has been made about the broader market’s gains in 2023, coming largely from the "magnificent seven" -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). FBCG's Blue-Chip Portfolio FBCG holds 162 positions, and its top 10 holdings account for 55.4% of assets. Turning to the opinions of Wall Street's best-performing analysts (measured by TipRanks), FBCG has a Moderate Buy consensus rating, as 70.1% of analyst ratings are Buys, 27.2% are Holds, and 2.7% are Sells.
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Much has been made about the broader market’s gains in 2023, coming largely from the "magnificent seven" -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). In fairness to FBCG, this is an actively-managed fund, which is more expensive to run than a passive index fund, but this is still something investors need to keep in mind, as these fees add up over time. Alternatively, investors who want to invest in these same types of stocks have plenty of other options that have longer track records and lower fees, such as the Invesco QQQ Trust ETF (NASDAQ:QQQ) or the Schwab U.S. Large Cap Growth ETF (NYSEARCA:SCHG).
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Much has been made about the broader market’s gains in 2023, coming largely from the "magnificent seven" -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). What Does the FBCG ETF Do? FBCG's Blue-Chip Portfolio FBCG holds 162 positions, and its top 10 holdings account for 55.4% of assets.
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2023-06-27 00:00:00 UTC
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Technology Sector Update for 06/27/2023: AAPL, NNDM, SSYS, META
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-06-27-2023%3A-aapl-nndm-ssys-meta
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nan
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nan
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Tech stocks were higher late Tuesday with the Technology Select Sector SPDR Fund (XLK) gaining 2.1% and the Philadelphia Semiconductor index up 3.6%.
In company news, Apple (AAPL) is opposing the Online Safety Bill in the UK that could be used to mandate encrypted messaging apps like iMessage to scan messages for child-abuse material, BBC News reported Tuesday. Apple shares were up 1.6%.
Separately, Apple lost a ruling by a US judge to dismiss the company's attempt to stop a class-action lawsuit alleging that Chief Executive Officer Tim Cook defrauded shareholders by hiding decreasing Chinese demand for iPhones, Reuters reported Tuesday.
Nano Dimension (NNDM) said Tuesday it raised the price of its tender offer to $20.05 per share in cash from $18 for outstanding shares of Stratasys (SSYS). Stratasys jumped 6.7% and Nano Dimension rose 1.3%.
Meta Platforms (META) said Tuesday it has rolled out new tools to improve parental supervision for Messenger and Instagram and limit unwanted interactions between teens and strangers. Meta shares were up 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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In company news, Apple (AAPL) is opposing the Online Safety Bill in the UK that could be used to mandate encrypted messaging apps like iMessage to scan messages for child-abuse material, BBC News reported Tuesday. Tech stocks were higher late Tuesday with the Technology Select Sector SPDR Fund (XLK) gaining 2.1% and the Philadelphia Semiconductor index up 3.6%. Separately, Apple lost a ruling by a US judge to dismiss the company's attempt to stop a class-action lawsuit alleging that Chief Executive Officer Tim Cook defrauded shareholders by hiding decreasing Chinese demand for iPhones, Reuters reported Tuesday.
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In company news, Apple (AAPL) is opposing the Online Safety Bill in the UK that could be used to mandate encrypted messaging apps like iMessage to scan messages for child-abuse material, BBC News reported Tuesday. Apple shares were up 1.6%. Separately, Apple lost a ruling by a US judge to dismiss the company's attempt to stop a class-action lawsuit alleging that Chief Executive Officer Tim Cook defrauded shareholders by hiding decreasing Chinese demand for iPhones, Reuters reported Tuesday.
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In company news, Apple (AAPL) is opposing the Online Safety Bill in the UK that could be used to mandate encrypted messaging apps like iMessage to scan messages for child-abuse material, BBC News reported Tuesday. Separately, Apple lost a ruling by a US judge to dismiss the company's attempt to stop a class-action lawsuit alleging that Chief Executive Officer Tim Cook defrauded shareholders by hiding decreasing Chinese demand for iPhones, Reuters reported Tuesday. Nano Dimension (NNDM) said Tuesday it raised the price of its tender offer to $20.05 per share in cash from $18 for outstanding shares of Stratasys (SSYS).
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In company news, Apple (AAPL) is opposing the Online Safety Bill in the UK that could be used to mandate encrypted messaging apps like iMessage to scan messages for child-abuse material, BBC News reported Tuesday. Tech stocks were higher late Tuesday with the Technology Select Sector SPDR Fund (XLK) gaining 2.1% and the Philadelphia Semiconductor index up 3.6%. Nano Dimension (NNDM) said Tuesday it raised the price of its tender offer to $20.05 per share in cash from $18 for outstanding shares of Stratasys (SSYS).
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15171.0
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2023-06-27 00:00:00 UTC
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US STOCKS-Wall Street rebounds as upbeat economic data allays slowdown fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rebounds-as-upbeat-economic-data-allays-slowdown-fears-0
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nan
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nan
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By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes.
Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month, while U.S. consumer confidence increased to a near 1-1/2 year high in June.
While the economic data was encouraging, Rhys Williams, chief strategist at Spouting Rock Asset Management, said the market also rose on seasonal factors.
"You'd a bad week in the stock market last week and a bad day on Monday. It's just a bit of recovery," said Williams. "There could be some quarter-end window-dressing too as we get close to the end of the quarter."
The Dow Jones Industrial Average .DJI rose 248.96 points, or 0.74%, to 33,963.67, pulling the blue-chip index out of a six-day slump. The tech-heavy Nasdaq Composite .IXIC was on track to notch its best first-half performance in 40 years with a roughly 29% gain. The Nasdaq added 234.80 points, or 1.76%, at 13,570.58.
The S&P 500 .SPX rose 52.89 points, or 1.22%, to 4,381.71 after falling in five of the last six sessions.
Signs of U.S. economic resilience also boosted the Dow Transports index .DJTand small-cap Russell 2000 index .RUT.
And the PHLX Housing index .HGX was up 3% after hitting an all-time high.
Traders are pricing in a roughly 77% chance the Fed will raise interest rates by 25 bps to the 5.25%-5.50% range in its July meeting, according to CME Group's Fedwatch tool, up from 74.4% a day earlier.
More economic data is expected this week, including a key inflation measure, as well as Fed Chair Jerome Powell's speech at the European Central Bank Forum in Sintra, Portugal, which could provide cues on the path of interest rates.
Hawkish comments from Powell last week stalled a U.S. stock rally that had pushed the S&P 500 and Nasdaq to an over one-year high and the Dow to a six-month peak.
Despite recent market weakness, a growth stocks rally, an upbeat earnings season and hopes of the Fed ending its monetary tightening soon have set the main indexes on course for quarterly gains.
Market heavyweights Microsoft CorpMSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500, followed by Amazon.com IncAMZN.O, Tesla IncTSLA.O, Nvidia CorpNVDA.O.
Meta Platforms IncMETA.O shares rose 3.8% after Citigroup raised its price target on the stock.
Snowflake SNOW.N climbed 4.6% after the cloud data analytics company announceda partnership with Nvidia to allow customers to build artificial intelligence models using their own data.
Walgreens Boots Alliance WBA.O dropped 8.9% as the pharmacy chain cut its annual profit forecast on lower demand for COVID-19 tests and vaccines.
Other drugstore chains, including CVS Health CorpCVS.N and Rite Aid Corp RAD.N, also fell.
Lordstown Motors CorpRIDE.O slumped 15% as the U.S. electric truck manufacturer filed for bankruptcy protection and put itself up for sale.
Advancing issues outnumbered decliners on the NYSE by a 3.01-to-1 ratio; on Nasdaq, a 1.73-to-1 ratio favored advancers.
The S&P 500 posted 43 new 52-week highs and one new low; the Nasdaq Composite recorded 54 new highs and 137 new lows.
(Reporting by Sruthi Shankar, Johann M Cherian in Bengaluru and Terence Gabriel in New York; Editing by Shinjini Ganguli and Richard Chang)
((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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Market heavyweights Microsoft CorpMSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500, followed by Amazon.com IncAMZN.O, Tesla IncTSLA.O, Nvidia CorpNVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month, while U.S. consumer confidence increased to a near 1-1/2 year high in June.
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Market heavyweights Microsoft CorpMSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500, followed by Amazon.com IncAMZN.O, Tesla IncTSLA.O, Nvidia CorpNVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. "You'd a bad week in the stock market last week and a bad day on Monday.
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Market heavyweights Microsoft CorpMSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500, followed by Amazon.com IncAMZN.O, Tesla IncTSLA.O, Nvidia CorpNVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. More economic data is expected this week, including a key inflation measure, as well as Fed Chair Jerome Powell's speech at the European Central Bank Forum in Sintra, Portugal, which could provide cues on the path of interest rates.
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Market heavyweights Microsoft CorpMSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500, followed by Amazon.com IncAMZN.O, Tesla IncTSLA.O, Nvidia CorpNVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. The Dow Jones Industrial Average .DJI rose 248.96 points, or 0.74%, to 33,963.67, pulling the blue-chip index out of a six-day slump.
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2023-06-27 00:00:00 UTC
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3 5G Stocks to Target for Triple-Digit Returns in 2023
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AAPL
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https://www.nasdaq.com/articles/3-5g-stocks-to-target-for-triple-digit-returns-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Global 5G subscriptions are projected to double and surpass 1 billion in 2023, driving the rapid construction of 5G mobile networks. The demand for 5G infrastructure will likely increase by 22% this year, reaching over $23 billion worldwide. With its lower latency and significantly faster download speeds, 5G represents the next generation of wireless networking technology.
That said, 5G stocks are some of the most attractive investments for investors looking to capitalize on the potential of this new technology. Here are three 5G stocks poised to deliver triple-digit returns.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
Qualcomm (NASDAQ:QCOM) achieved a significant AI milestone by successfully running the Stable Diffusion text-to-image generative AI service on an Android smartphone, showcasing its innovation in the field.
Generative AI involves two steps: training and inference. During training, the algorithm learns from a vast dataset of human-created images and corresponding text descriptions. Once trained, the algorithm can generate new images based on user input, a process known as inference. Importantly, Qualcomm demonstrated this capability on a smartphone by inputting the prompt: “Super cute fluffy cat warrior in armor, photorealistic, 4K, ultra-detailed, Vray rendering, unreal engine.”
Qualcomm has made significant progress in on-device AI inference, potentially surpassing Apple (NASDAQ:AAPL) in the realm of generative AI. Thus, with a low valuation and its smartphone market business nearing a cyclical bottom, Qualcomm presents an appealing investment opportunity. Trading at favorable multiples, it stands as a strong contender among 5G stocks in the AI sector.
Broadcom (AVGO)
Source: Sasima / Shutterstock.com
Broadcom (NASDAQ:AVGO) is an undervalued chip stock that has recently gained attention from investors. With solid growth, strong margins and a high dividend yield, the company’s stock experienced a significant rally. However, despite a slight pullback, Broadcom’s strong earnings results have continued to attract buyers. Indeed, this is a stock I think has more upside potential from here.
With strong growth and the rise of artificial intelligence, semiconductor giant Broadcom has the potential to surpass a $1 trillion valuation. This would place it alongside Nvidia (NASDAQ:NVDA) as a beneficiary of the AI boom. Semiconductor chips, essential for AI and various products like computers, cars, smartphones and appliances, contribute to Broadcom’s success.
AVGO stock has surged 58% as the chip sector rebounds, driven by strong semiconductor demand and the growth of artificial intelligence. A partnership with Apple adds to the company’s revenue and earnings growth prospects. With robust profit margins and steady free cash flow, AVGO is expected to maintain a range of $17 billion to $18 billion until 2030.
Skyworks Solutions (SWKS)
Source: madamF / Shutterstock.com
Skyworks Solutions (NASDAQ:SWKS) is a semiconductor company that specializes in Internet of Things (IoT) technology. Indeed, with a focus on 5G and IoT opportunities, the company provides front-end modules for various industries such as connected homes, industrial, medical, smart energy and wearables. Notably, Skyworks Solutions aims to connect data from sensors through its cellular architecture.
Analysts and technical analysis screeners suggest that SWKS stock is undervalued, with an estimated upside ranging from $15 to $70 per share. Skyworks Solutions has outperformed revenue expectations, achieved record cash flows, and established partnerships in promising growth areas like information technology (IT), electric vehicles (EVs) and data centers. With a revenue growth rate surpassing most competitors, the company’s strong performance supports the optimistic outlook.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 5G Stocks to Target for Triple-Digit Returns in 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Importantly, Qualcomm demonstrated this capability on a smartphone by inputting the prompt: “Super cute fluffy cat warrior in armor, photorealistic, 4K, ultra-detailed, Vray rendering, unreal engine.” Qualcomm has made significant progress in on-device AI inference, potentially surpassing Apple (NASDAQ:AAPL) in the realm of generative AI. Skyworks Solutions has outperformed revenue expectations, achieved record cash flows, and established partnerships in promising growth areas like information technology (IT), electric vehicles (EVs) and data centers. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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Importantly, Qualcomm demonstrated this capability on a smartphone by inputting the prompt: “Super cute fluffy cat warrior in armor, photorealistic, 4K, ultra-detailed, Vray rendering, unreal engine.” Qualcomm has made significant progress in on-device AI inference, potentially surpassing Apple (NASDAQ:AAPL) in the realm of generative AI. Qualcomm (QCOM) Source: Akshdeep Kaur Raked / Shutterstock.com Qualcomm (NASDAQ:QCOM) achieved a significant AI milestone by successfully running the Stable Diffusion text-to-image generative AI service on an Android smartphone, showcasing its innovation in the field. Broadcom (AVGO) Source: Sasima / Shutterstock.com Broadcom (NASDAQ:AVGO) is an undervalued chip stock that has recently gained attention from investors.
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Importantly, Qualcomm demonstrated this capability on a smartphone by inputting the prompt: “Super cute fluffy cat warrior in armor, photorealistic, 4K, ultra-detailed, Vray rendering, unreal engine.” Qualcomm has made significant progress in on-device AI inference, potentially surpassing Apple (NASDAQ:AAPL) in the realm of generative AI. Qualcomm (QCOM) Source: Akshdeep Kaur Raked / Shutterstock.com Qualcomm (NASDAQ:QCOM) achieved a significant AI milestone by successfully running the Stable Diffusion text-to-image generative AI service on an Android smartphone, showcasing its innovation in the field. Broadcom (AVGO) Source: Sasima / Shutterstock.com Broadcom (NASDAQ:AVGO) is an undervalued chip stock that has recently gained attention from investors.
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Importantly, Qualcomm demonstrated this capability on a smartphone by inputting the prompt: “Super cute fluffy cat warrior in armor, photorealistic, 4K, ultra-detailed, Vray rendering, unreal engine.” Qualcomm has made significant progress in on-device AI inference, potentially surpassing Apple (NASDAQ:AAPL) in the realm of generative AI. That said, 5G stocks are some of the most attractive investments for investors looking to capitalize on the potential of this new technology. Qualcomm (QCOM) Source: Akshdeep Kaur Raked / Shutterstock.com Qualcomm (NASDAQ:QCOM) achieved a significant AI milestone by successfully running the Stable Diffusion text-to-image generative AI service on an Android smartphone, showcasing its innovation in the field.
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2023-06-27 00:00:00 UTC
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Dow 30 Stocks To Buy? 2 To Watch Right Now
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AAPL
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https://www.nasdaq.com/articles/dow-30-stocks-to-buy-2-to-watch-right-now
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nan
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nan
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The Dow Jones Industrial Average (DJIA), is one of the most recognized and tracked global stock market indicators. In fact, it often acts as a gauge of the overall condition of the US economy. It observes the movements of 30 prominent, mature, and financially stable companies across a variety of sectors. What’s unique about the DJIA is its price-weighted nature – companies with higher stock prices hold greater sway over the value of the index.
Dow Jones stocks are made up of some of the most notable and influential firms in the United States. Spanning a wide array of industries such as technology, finance, healthcare, and consumer goods. These stocks often exhibit characteristics of reliability, growth, and the ability to enhance shareholder value. Additionally, many of the companies within the Dow Jones consistently disburse dividends, drawing the attention of investors looking for regular income. Due to their significant standing and economic impact, the performance of Dow Jones stocks can greatly affect market sentiment and the trajectory of the broader stock market.
For individual investors, investing in Dow Jones stocks can be a calculated decision. Particularly for those wanting to gain exposure to an assorted group of respected and influential companies. By including these stocks in their portfolio, investors might benefit from steady growth and regular dividend returns, thereby offsetting some of the risks tied to smaller, less established entities. Nevertheless, prior to investing in Dow Jones stocks, investors should perform comprehensive research and consider their personal risk tolerance and investment objectives, similar to any other investment decision. With that said, let’s take a look at two trending Dow Jones stocks to watch in the stock market today.
Dow 30 Stocks To Invest In [Or Avoid] Now
Apple Inc. (NASDAQ: AAPL)
The Walt Disney Company (NYSE: DIS)
Apple Inc. (AAPL Stock)
First up, Apple Inc. (AAPL) is one of the world’s most valued technology corporations. The company’s product portfolio includes the iPhone, Mac computers, iPad, Apple Watch, and services like the App Store, Apple Music, and iCloud.
Late last month, Apple reported better-than-anticipated Q2 2023 earnings results. Diving in, the tech giant announced earnings of $1.52 per share, beating estimates of $1.44 per share, on total revenue of $94.8 billion, which also beat expectations of $92.9 billion. Though, Apple did report a 2.5% decline in revenue on a year-over-year basis.
Year-to-date, shares of Apple stock have gained by 49.98% so far. Meanwhile, during Tuesday’s afternoon trading session, AAPL stock is trading higher by 1.26% on the day at $187.64 a share.
[Read More] 3 Regional Bank Stocks To Watch Today
Walt Disney Company (DIS Stock)
Next, The Walt Disney Company (DIS) is a worldwide powerhouse in the entertainment industry, boasting an eclectic portfolio with legendary brands like Disney, Pixar, Marvel, Star Wars, and National Geographic under its umbrella. Disney’s operations encompass a wide range of areas, from movie and TV production to theme parks, in addition to its digital platforms such as the streaming service, Disney+.
Just last month, Disney reported its second quarter 2023 financial results. In detail, the company posted Q2 2023 earnings of $0.93 per share, with revenue of $21.8 billion. This is versus analysts’ consensus estimates for the quarter were earnings of $0.89 per share, and revenue estimates of $21.8 billion. Also, revenue increased by 13.3% versus the same period, the previous year. Additionally, Disney said that it expects fiscal 2023 revenue to come in at approximately $88.93 billion.
So far in 2023, shares of DIS stock are up slightly by 0.24% YTD. While, during Tuesday’s afternoon trading session, Disney stock is trading modestly higher on the day by 0.53% at $89.18 a share.
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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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Dow 30 Stocks To Invest In [Or Avoid] Now Apple Inc. (NASDAQ: AAPL) The Walt Disney Company (NYSE: DIS) Apple Inc. (AAPL Stock) First up, Apple Inc. (AAPL) is one of the world’s most valued technology corporations. Meanwhile, during Tuesday’s afternoon trading session, AAPL stock is trading higher by 1.26% on the day at $187.64 a share. What’s unique about the DJIA is its price-weighted nature – companies with higher stock prices hold greater sway over the value of the index.
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Dow 30 Stocks To Invest In [Or Avoid] Now Apple Inc. (NASDAQ: AAPL) The Walt Disney Company (NYSE: DIS) Apple Inc. (AAPL Stock) First up, Apple Inc. (AAPL) is one of the world’s most valued technology corporations. Meanwhile, during Tuesday’s afternoon trading session, AAPL stock is trading higher by 1.26% on the day at $187.64 a share. [Read More] 3 Regional Bank Stocks To Watch Today Walt Disney Company (DIS Stock) Next, The Walt Disney Company (DIS) is a worldwide powerhouse in the entertainment industry, boasting an eclectic portfolio with legendary brands like Disney, Pixar, Marvel, Star Wars, and National Geographic under its umbrella.
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Dow 30 Stocks To Invest In [Or Avoid] Now Apple Inc. (NASDAQ: AAPL) The Walt Disney Company (NYSE: DIS) Apple Inc. (AAPL Stock) First up, Apple Inc. (AAPL) is one of the world’s most valued technology corporations. Meanwhile, during Tuesday’s afternoon trading session, AAPL stock is trading higher by 1.26% on the day at $187.64 a share. With that said, let’s take a look at two trending Dow Jones stocks to watch in the stock market today.
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Dow 30 Stocks To Invest In [Or Avoid] Now Apple Inc. (NASDAQ: AAPL) The Walt Disney Company (NYSE: DIS) Apple Inc. (AAPL Stock) First up, Apple Inc. (AAPL) is one of the world’s most valued technology corporations. Meanwhile, during Tuesday’s afternoon trading session, AAPL stock is trading higher by 1.26% on the day at $187.64 a share. With that said, let’s take a look at two trending Dow Jones stocks to watch in the stock market today.
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2023-06-27 00:00:00 UTC
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Apple fails to end lawsuit over China sales comment by CEO Cook
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AAPL
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https://www.nasdaq.com/articles/apple-fails-to-end-lawsuit-over-china-sales-comment-by-ceo-cook
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nan
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nan
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By Jonathan Stempel
June 27 (Reuters) - A U.S. judge has rejected Apple's AAPL.O bid to throw out a class-action lawsuit that accused Chief Executive Tim Cook of defrauding shareholders by concealing falling demand for iPhones in China.
U.S. District Judge Yvonne Gonzalez Rogers' decision late Monday night clears the way for shareholders led by a British pension fund to sue over a one-day plunge that wiped out $74 billion of Apple's market value.
The lawsuit stemmed from Cook's comment on a Nov. 1, 2018, analyst call that while Apple faced sales pressure in markets such as Brazil, India, Russia and Turkey, where currencies had weakened, "I would not put China in that category."
Apple told suppliers a few days later to curb production, and on Jan. 2, 2019, unexpectedly slashed its quarterly revenue forecast by up to $9 billion, blaming U.S.-China trade tensions.
The lowered revenue forecast was Apple's first since the iPhone's launch in 2007, and the Cupertino, California-based company's shares fell 10% the next day.
Rogers, based in Oakland, California, said jurors could reasonably infer that Cook was discussing Apple's sales outlook in China, not past performance or the impact of currency changes.
The judge also said that prior to Cook's comment, Apple knew China's economy had been slowing and had data suggesting that demand could fall.
"A reasonable jury could find that failure to disclose these risks caused plaintiff's harm," Rogers wrote.
Apple and its lawyers did not immediately respond on Tuesday to requests for comment. Lawyers for the shareholders did not immediately respond to similar requests.
The lead plaintiff is the Norfolk County Council as Administering Authority of the Norfolk Pension Fund, located in Norwich, England.
Apple's share price has approximately quintupled since January 2019, giving it a market value near $3 trillion.
The case is In re Apple Inc Securities Litigation, U.S. District Court, Northern District of California, No. 19-02033.
(Reporting by Jonathan Stempel in New York; editing by Jonathan Oatis)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Jonathan Stempel June 27 (Reuters) - A U.S. judge has rejected Apple's AAPL.O bid to throw out a class-action lawsuit that accused Chief Executive Tim Cook of defrauding shareholders by concealing falling demand for iPhones in China. U.S. District Judge Yvonne Gonzalez Rogers' decision late Monday night clears the way for shareholders led by a British pension fund to sue over a one-day plunge that wiped out $74 billion of Apple's market value. The lawsuit stemmed from Cook's comment on a Nov. 1, 2018, analyst call that while Apple faced sales pressure in markets such as Brazil, India, Russia and Turkey, where currencies had weakened, "I would not put China in that category."
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By Jonathan Stempel June 27 (Reuters) - A U.S. judge has rejected Apple's AAPL.O bid to throw out a class-action lawsuit that accused Chief Executive Tim Cook of defrauding shareholders by concealing falling demand for iPhones in China. The judge also said that prior to Cook's comment, Apple knew China's economy had been slowing and had data suggesting that demand could fall. The lead plaintiff is the Norfolk County Council as Administering Authority of the Norfolk Pension Fund, located in Norwich, England.
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By Jonathan Stempel June 27 (Reuters) - A U.S. judge has rejected Apple's AAPL.O bid to throw out a class-action lawsuit that accused Chief Executive Tim Cook of defrauding shareholders by concealing falling demand for iPhones in China. U.S. District Judge Yvonne Gonzalez Rogers' decision late Monday night clears the way for shareholders led by a British pension fund to sue over a one-day plunge that wiped out $74 billion of Apple's market value. The lawsuit stemmed from Cook's comment on a Nov. 1, 2018, analyst call that while Apple faced sales pressure in markets such as Brazil, India, Russia and Turkey, where currencies had weakened, "I would not put China in that category."
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By Jonathan Stempel June 27 (Reuters) - A U.S. judge has rejected Apple's AAPL.O bid to throw out a class-action lawsuit that accused Chief Executive Tim Cook of defrauding shareholders by concealing falling demand for iPhones in China. U.S. District Judge Yvonne Gonzalez Rogers' decision late Monday night clears the way for shareholders led by a British pension fund to sue over a one-day plunge that wiped out $74 billion of Apple's market value. The lawsuit stemmed from Cook's comment on a Nov. 1, 2018, analyst call that while Apple faced sales pressure in markets such as Brazil, India, Russia and Turkey, where currencies had weakened, "I would not put China in that category."
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15175.0
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2023-06-27 00:00:00 UTC
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Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term
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AAPL
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https://www.nasdaq.com/articles/got-%245000-3-tech-stocks-to-buy-and-hold-for-the-long-term-3
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nan
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nan
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For quite some time now, tech stocks have been the poster child for growth stocks. Total returns for the tech-heavy Nasdaq Composite index are up around 350% in the past decade, compared with around 230% for the more diversified S&P 500 over the same timeframe.
Regardless of tech's great run, many companies have blossomed and then have fallen by the wayside. Despite the huge return potential of some tech stocks, you don't want to lose sight of the long term and invest in companies without staying power.
If you have $5,000 available to invest that isn't needed to reduce short-term debt or build an emergency fund, here are three tech stocks that are great long-term options.
1. Apple
It seems cliche to start with Apple (NASDAQ: AAPL), but you don't become the world's most valuable public company for no reason. Apple has been a titan in the tech world, and that's not likely to change anytime soon.
In its Q2 2023, ended April 1, Apple made $94.8 billion in revenue, and iPhone sales accounted for more than 54%. There's no denying that it's Apple's foundation. However, Apple's future growth probably isn't in the iPhone -- or any hardware, for that matter -- it's in its services. Over the past five years, Apple's Services revenue has jumped tremendously.
TIME PERIOD SERVICES REVENUE
FY 2019 $46.2 billion
FY 2020 $53.7 billion
FY 2021 $68.4 billion
FY 2022 $78.1 billion
Q3 2023 $20.9 billion
Data source: Apple. FY = fiscal year.
After testing the waters with ApplePay, Apple Card, and, most recently, Apple Pay Later, it's certain that Apple will make a serious entrance into financial services. According to Boston Consulting Group, fintech is projected to grow from $245 billion to $1.5 trillion globally by 2030.
Not many companies are better positioned to take advantage of that than Apple if it commits the resources. There are more than a billion active iPhones, giving Apple an inside route to becoming a financial one-stop-shop.
Having the iPhone pad its bottom line while expanding its service ecosystem is a recipe for long-term sustainability for Apple.
2. Microsoft
When it comes to tech companies, none may be as engrained in the business world as Microsoft (NASDAQ: MSFT). That puts the company in a unique position for longevity that few, if any, other tech companies can replicate. From Excel for databases to LinkedIn for recruiting, Windows for operating systems, Azure for cloud infrastructure, and more, Microsoft is a staple in the corporate world.
Microsoft's footprint has positively affected its top line in recent years. In its Q2 2023, Microsoft had $52.7 billion in revenue, up 2% year over year. The growth isn't jaw-dropping by any means, but it's decent considering broader economic conditions.
Microsoft's stock has received a lot of love this year, mainly because of its ownership stake in ChatGPT's creator, OpenAI, and the potential investors see in this partnership. The partnership allows Microsoft to benefit from OpenAI's growth, as well as have the ability to incorporate its technology into Microsoft products such as Office and Azure.
The future of Microsoft isn't as reliant on having AI live up to the hype, as is the case for some tech companies, but it can definitely be a catalyst for impressive growth in the years to come -- especially if it makes Azure more competitive in the fast-growing cloud industry.
Investors can feel confident holding on to Microsoft for the long haul.
3. CrowdStrike
CrowdStrike (NASDAQ: CRWD) is a cybersecurity company that's pioneered AI into the field. Its platforms use AI to provide real-time threat detection and prevention, and their efficiency has made CrowdStrike one of the leaders in the cybersecurity industry.
Despite its efficiency, CrowdSrike has noted that cyberattacks continue to get more sophisticated, growing the demand for CrowdStrike's services. In its 2023 Global Threat Report, CrowdStrike noted 33 newly named adversaries and a 95% annual increase in cloud exploitations. CrowdStrike's continued growth should be aided by the fact cybersecurity is becoming an indispensable industry.
If money is tight and companies need to trim their budgets, many things will get cut before their cybersecurity budget. It's essentially insurance in today's digital world: Either pay for relatively priced cybersecurity services or risk the huge financial and, maybe more importantly, reputational hit.
According to IBM's 2022 "Cost of a Data Breach" report, companies using AI and automation had a 74-day shorter breach lifecycle and saved around $3 million more than companies not using AI. That plays right into the hands of CrowdStrike, which has shown a commitment to staying ahead of the innovation curve.
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 June 12, 2023
Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple, CrowdStrike, 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 It seems cliche to start with Apple (NASDAQ: AAPL), but you don't become the world's most valuable public company for no reason. Despite the huge return potential of some tech stocks, you don't want to lose sight of the long term and invest in companies without staying power. The future of Microsoft isn't as reliant on having AI live up to the hype, as is the case for some tech companies, but it can definitely be a catalyst for impressive growth in the years to come -- especially if it makes Azure more competitive in the fast-growing cloud industry.
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Apple It seems cliche to start with Apple (NASDAQ: AAPL), but you don't become the world's most valuable public company for no reason. Over the past five years, Apple's Services revenue has jumped tremendously. FY 2019 $46.2 billion FY 2020 $53.7 billion FY 2021 $68.4 billion FY 2022 $78.1 billion Q3 2023 $20.9 billion Data source: Apple.
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Apple It seems cliche to start with Apple (NASDAQ: AAPL), but you don't become the world's most valuable public company for no reason. FY 2019 $46.2 billion FY 2020 $53.7 billion FY 2021 $68.4 billion FY 2022 $78.1 billion Q3 2023 $20.9 billion Data source: Apple. After testing the waters with ApplePay, Apple Card, and, most recently, Apple Pay Later, it's certain that Apple will make a serious entrance into financial services.
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Apple It seems cliche to start with Apple (NASDAQ: AAPL), but you don't become the world's most valuable public company for no reason. However, Apple's future growth probably isn't in the iPhone -- or any hardware, for that matter -- it's in its services. Microsoft When it comes to tech companies, none may be as engrained in the business world as Microsoft (NASDAQ: MSFT).
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15176.0
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2023-06-27 00:00:00 UTC
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Beyond Dogecoin and Shiba Inu -- These 3 Unique Cryptos Are Better Buys
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AAPL
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https://www.nasdaq.com/articles/beyond-dogecoin-and-shiba-inu-these-3-unique-cryptos-are-better-buys
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nan
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nan
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It has not been a good year for either Dogecoin (CRYPTO: DOGE) or Shiba Inu (CRYPTO: SHIB). Both meme coins are down about 5% for the year, at a time when market leader Bitcoin (CRYPTO: BTC) has soared by more than 80%. Even worse, Dogecoin and Shiba Inu are not even garnering attention from short-term crypto speculators, who are instead focused on Bitcoin Ordinals, the new non-fungible tokens (NFTs) for the Bitcoin blockchain.
But the good news is that there are still plenty of interesting cryptocurrencies out there, and many of them have superior long-term growth prospects and greater utility than dog-themed meme coins. Here's a closer look at three cryptos that should be on your radar right now.
Stacks
Stacks (CRYPTO: STX) is a Layer-2 blockchain that sits on top of the main Bitcoin blockchain. What this means in practical terms is that Stacks adds utility to Bitcoin that goes far beyond just payments. The goal of Stacks is to make possible the use of smart contracts on Bitcoin, and that opens the door to an entirely new set of use cases that include NFTs, decentralized finance (DeFi), and new decentralized applications.
Until this year, many people had never heard of Stacks. But then came the investor craze around Bitcoin NFTs, and Stacks suddenly captured the imagination of investors. Given the close relationship between Bitcoin and Stacks, it's perhaps no surprise that Stacks has been on a tear this year. Stacks is up a whopping 250% in 2023, and now ranks as a top 40 cryptocurrency by market capitalization. With Stacks, you're basically getting a highly leveraged bet on the future of Bitcoin. This is great news if Bitcoin is up big for the year (like it is now), but a potential source of anxiety if Bitcoin starts to fall.
SingularityNET
Given the enormous interest in ChatGPT over the past six months, there has been an explosion in demand for cryptocurrencies powered by artificial intelligence (AI). The crypto that has gotten the most attention from investors is SingularityNET (CRYPTO: AGIX), which is up a head-spinning 400% this year. Previously, SingularityNET was best known for its work with Sophia, arguably the most famous AI-powered robot in the world. But now SingularityNET has been inserted into the conversation about ChatGPT.
Just keep in mind that if you're looking for a direct play on ChatGPT, SingularityNET is not it. While ChatGPT is focused on a form of artificial intelligence known as generative AI, SingularityNET is focused on artificial general intelligence (AGI), which is the highest level of AI possible.
The name of the token is a reference to "The Singularity," the much-hyped and anticipated moment when computers will become smarter than humans. The goal of SingularityNET is to deliver this level of artificial intelligence to the masses, leading to a giant leap forward for humanity. The SingularityNET ecosystem now includes an AI-powered project to research longevity and human life extension. Obviously, the concept of powerful AI that lives on the blockchain is a huge idea, and one with nearly unlimited market potential. But it may take quite a bit of time to develop.
Render Token
Finally, there's Render Token (CRYPTO: RNDR), a decentralized global platform built on the Ethereum blockchain. The goal of Render is to distribute GPU-based rendering jobs across a vast peer-to-peer (P2P) network. In plain English, this means that computing tasks that require a huge amount of computing power -- such as creating immersive 3D environments or hyper-realistic special effects -- can still be done even if you lack the full computing power yourself. All you need to do is connect to the Render Network and pay with Render Token.
Image source: Getty Images.
It's a big idea, and one that has been embraced by Hollywood creators, video game developers, and Web3 innovators. With Apple's recent launch of its $3,499 mixed reality headset, it's easy to see how the computing power of Render could be used to support the creation of new virtual reality (VR) and augmented reality (AR) worlds that are extremely realistic. No surprise, then, that Render Token is up more than 400% this year, and is now one of the top 50 cryptocurrencies by total market cap.
High risk, high reward
Just keep in mind, however, that the potential for high reward also comes with an enormous amount of risk. Stacks is a highly leveraged bet on the future of Bitcoin. SingularityNET is an even bigger bet on the future of AI. And the Render Token is a big bet on the future of mixed reality. That's all well and good, but just remember how fast tech trends can come and go. Just think of the hype around the metaverse in 2021 and how little has come to fruition.
If you are thinking of investing in any of these unique cryptocurrencies, be sure to do your due diligence, and understand exactly what these cryptos offer in terms of utility and long-term growth potential. Once you put in the work, though, you'll understand why a growing number of investors have abandoned meme coins in favor of these three cryptocurrencies, all of which are up more than 250% this year.
10 stocks we like better than Stacks
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 Stacks 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 26, 2023
Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Apple, Bitcoin, Ethereum, and Render Token. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But the good news is that there are still plenty of interesting cryptocurrencies out there, and many of them have superior long-term growth prospects and greater utility than dog-themed meme coins. SingularityNET Given the enormous interest in ChatGPT over the past six months, there has been an explosion in demand for cryptocurrencies powered by artificial intelligence (AI). If you are thinking of investing in any of these unique cryptocurrencies, be sure to do your due diligence, and understand exactly what these cryptos offer in terms of utility and long-term growth potential.
|
It has not been a good year for either Dogecoin (CRYPTO: DOGE) or Shiba Inu (CRYPTO: SHIB). High risk, high reward Just keep in mind, however, that the potential for high reward also comes with an enormous amount of risk. The Motley Fool has positions in and recommends Apple, Bitcoin, Ethereum, and Render Token.
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Even worse, Dogecoin and Shiba Inu are not even garnering attention from short-term crypto speculators, who are instead focused on Bitcoin Ordinals, the new non-fungible tokens (NFTs) for the Bitcoin blockchain. Stacks Stacks (CRYPTO: STX) is a Layer-2 blockchain that sits on top of the main Bitcoin blockchain. Render Token Finally, there's Render Token (CRYPTO: RNDR), a decentralized global platform built on the Ethereum blockchain.
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Given the close relationship between Bitcoin and Stacks, it's perhaps no surprise that Stacks has been on a tear this year. SingularityNET Given the enormous interest in ChatGPT over the past six months, there has been an explosion in demand for cryptocurrencies powered by artificial intelligence (AI). And the Render Token is a big bet on the future of mixed reality.
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15177.0
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2023-06-27 00:00:00 UTC
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Lordstown Motors files bankruptcy, sues Foxconn
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AAPL
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https://www.nasdaq.com/articles/lordstown-motors-files-bankruptcy-sues-foxconn-0
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nan
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nan
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By Mike Spector, Joseph White and Dietrich Knauth
NEW YORK, June 27 (Reuters) - Lordstown Motors RIDE.O filed for bankruptcy protection on Tuesday and put itself up for sale after the U.S. electric truck manufacturer failed to resolve a dispute over a promised investment from Taiwan company Foxconn.
Lordstown, named after the Ohio town where it is based, filed for Chapter 11 protection in Delaware and simultaneously took legal action against Foxconn.
In an complaint filed in bankruptcy court, Lordstown accused the electronics company of fraudulent conduct and a series of broken promises in failing to abide by an agreement to invest up to $170 million in the electric-vehicle manufacturer.
Foxconn previously invested about $52.7 million in Lordstown as part of the agreement, and currently holds a roughly 8.4% ownership stake in the EV maker. Lordstown contends Foxconn is balking at purchasing additional shares of its stock as promised, and misled the EV maker about collaborating on vehicle development plans.
Foxconn, formally called Hon Hai Precision Industry 2317.TW and best known for assembling Apple's AAPL.O iPhones, has said Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. Foxconn did not immediately respond to a request for comment.
The twin filings of the bankruptcy and lawsuit set up an international business clash that could intensify scrutiny of Foxconn's EV ambitions and partnerships, not only with Lordstown but also other automakers.
The lawsuit portrays Foxconn as consistently shifting goal posts in its collaboration with Lordstown on the automaker's future vehicles, which included failing to meet funding commitments and refusing to engage with the company on initiatives Foxconn allegedly directed and purported to support.
Lordstown, a startup launched in 2018, said in a regulatory filing earlier this month that it had planned to sue Foxconn after receiving a letter from the company that led Lordstown to believe Foxconn was unlikely to make its additional expected investment.
Lordstown accused Foxconn in that regulatory filing of engaging in a “pattern of bad faith” that caused “material and irreparable harm” to the company. Even in May, Lordstown warned it might be forced to file for bankruptcy amid uncertainty over the Foxconn investment.
The automaker’s main product is the Endurance electric pickup truck, which is built at a former General Motors small-car factory in Lordstown, Ohio, for commercial customers such as local governments. Lordstown sold the plant to Foxconn in 2022.
Lordstown paused production of the Endurance earlier this year and since April has resumed building the trucks at a low rate after resolving quality issues with suppliers. The automaker's shares have plunged since February and currently trade under $3.
Should Lordstown fail to find a rescuer willing to re-start full production of the Endurance, the Ohio factory now owned by Foxconn could be a draw for overseas automakers looking for a quick way to build vehicles in the United States.
Lordstown filed for bankruptcy with plans to seek a buyer. It does not have an initial offer in hand, known in bankruptcy parlance as a stalking-horse bidder, which sets a minimum price other suitors can top in an auction.
Lordstown Chief Executive Edward Hightower told Reuters the Endurance business could prove attractive to another automaker looking for a fast entry into the EV market at a time the Biden administration's policies are attempting to move away from gasoline-powered cars.
Lordstown's bankruptcy is not the first among the crop of EV startups that went public during the pandemic-era SPAC boom. But Lordstown was a high-profile member of that class because it was challenging the core of the legacy Detroit automakers' business of high-margin pickup trucks, and because of its location.
The Lordstown factory in Northeast Ohio was formerly a GM GM.N small-car factory that GM decided to close in November 2018. Then-U.S. President Donald Trump and other Ohio political leaders put pressure on GM CEO Mary Barra to reverse the decision, or find a buyer. GM agreed to sell the plant to a newly-formed entity called Lordstown Motors founded by the former top executive at an electric truck maker called Workhorse Group.
Lordstown went public in October 2020 through a reverse merger with special purpose acquisition company DiamondPeak Holdings, joining a flock of EV startups that went public through such deals in that period.
Like several others, including truck maker Nikola NKLA.O, Lordstown has struggled to live up to the high expectations of early investors. In 2021, its chief executive and founder, Stephen Burns, resigned after the automaker acknowledged it had overstated pre-orders for its electric trucks.
Lordstown’s finance chief at the time also resigned. Burns has since sold his entire stake in Lordstown, according to a June regulatory filing.
As Lordstown wrestled during 2021 and 2022 with investigations by regulators and the U.S. Justice Department, Ford Motor F.N was launching its electric F-150 Lightning pickup truck, aiming at commercial customers.
EV startup Rivian RIVN.O launched its luxury electric pickup in 2022. GM and Stellantis have announced plans for electric pickups. Elon Musk’s Tesla TSLA.O has promised it will begin producing its Cybertruck late this year.
Lordstown struggled to ramp up production of its Endurance trucks over the past several months amid the dispute with Foxconn, challenging market conditions and the cost-intensive nature of its business, the company has said.
The few trucks that the company assembled had material costs that were “substantially higher than our selling price,” Lordstown said in a May regulatory filing.
(Reporting by Mike Spector in New York, Joseph White in Detroit and Dietrich Knauth in New York Editing by Nick Zieminski)
((mike.spector@thomsonreuters.com; 347-266-9966; Reuters Messaging: Twitter: @mike_d_spector))
The views and 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, formally called Hon Hai Precision Industry 2317.TW and best known for assembling Apple's AAPL.O iPhones, has said Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. By Mike Spector, Joseph White and Dietrich Knauth NEW YORK, June 27 (Reuters) - Lordstown Motors RIDE.O filed for bankruptcy protection on Tuesday and put itself up for sale after the U.S. electric truck manufacturer failed to resolve a dispute over a promised investment from Taiwan company Foxconn. In an complaint filed in bankruptcy court, Lordstown accused the electronics company of fraudulent conduct and a series of broken promises in failing to abide by an agreement to invest up to $170 million in the electric-vehicle manufacturer.
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Foxconn, formally called Hon Hai Precision Industry 2317.TW and best known for assembling Apple's AAPL.O iPhones, has said Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. By Mike Spector, Joseph White and Dietrich Knauth NEW YORK, June 27 (Reuters) - Lordstown Motors RIDE.O filed for bankruptcy protection on Tuesday and put itself up for sale after the U.S. electric truck manufacturer failed to resolve a dispute over a promised investment from Taiwan company Foxconn. The automaker’s main product is the Endurance electric pickup truck, which is built at a former General Motors small-car factory in Lordstown, Ohio, for commercial customers such as local governments.
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Foxconn, formally called Hon Hai Precision Industry 2317.TW and best known for assembling Apple's AAPL.O iPhones, has said Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. By Mike Spector, Joseph White and Dietrich Knauth NEW YORK, June 27 (Reuters) - Lordstown Motors RIDE.O filed for bankruptcy protection on Tuesday and put itself up for sale after the U.S. electric truck manufacturer failed to resolve a dispute over a promised investment from Taiwan company Foxconn. The lawsuit portrays Foxconn as consistently shifting goal posts in its collaboration with Lordstown on the automaker's future vehicles, which included failing to meet funding commitments and refusing to engage with the company on initiatives Foxconn allegedly directed and purported to support.
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Foxconn, formally called Hon Hai Precision Industry 2317.TW and best known for assembling Apple's AAPL.O iPhones, has said Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. Lordstown, a startup launched in 2018, said in a regulatory filing earlier this month that it had planned to sue Foxconn after receiving a letter from the company that led Lordstown to believe Foxconn was unlikely to make its additional expected investment. Burns has since sold his entire stake in Lordstown, according to a June regulatory filing.
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15178.0
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2023-06-27 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
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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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
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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15179.0
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2023-06-27 00:00:00 UTC
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Looking for Strong Management? Consider These ETFs
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AAPL
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https://www.nasdaq.com/articles/looking-for-strong-management-consider-these-etfs
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nan
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nan
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Publicly traded firms with suspect management teams can possibly notch short-term gains. However, over the long term, the odds of investor success at poorly run companies lengthen.
Conversely, companies with strong management don’t see their shares appreciate in straight-line fashion. However, the probabilities of long-term success are on investors’ sides. One point to remember is that no sector has a monopoly on good or bad management. This perhaps makes it difficult to isolate well-run companies via exchange traded funds.
Fortunately, the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) are prime examples of ETFs full of companies with strong presences in the C-suite, including in the chief executive officer role.
It’s just one list, but the recently revealed 2023 Barron’s Top CEOs features 25 CEOs that have navigated their firms through some trying circumstances over the past several years. The list prominently features both ETFs' member firms.
QQQ, QQQM Management Strong Across Variety of Sectors
QQQ and QQQM track the Nasdaq-100 Index, and as such, the ETFs are viewed as tech proxies. That’s an accurate assessment, as the funds devote nearly 51% of their weights to that sector. Good news: The Barron's list holds many tech CEOs.
That group includes Apple’s (NASDAQ: AAPL) Tim Cook and Microsoft’s (NASDAQ: MSFT) Satya Nadella. Those stocks are the top two holdings in the Invesco ETFs, combining for over a quarter of the fund’s roster. However, the strong management theme in QQQ and QQQM isn’t limited to Apple and Microsoft.
Other tech companies whose CEOs appear on the Barron’s list include NVIDIA (NASDAQ: NVDA) and Adobe (NASDAQ: ADBE), which combine for 8.60% of QQQ and QQQM. Sundar Pichai, CEO of Google parent Alphabet (NASDAQ: GOOG) -- a communications services firm and QQQ/QQQM holding -- is also on the list.
Owing to the growth leanings of QQQ and QQQM, some investors forget that the ETFs feature smaller allocations to slower growth sectors, including consumer staples. The positive news is that two of the most well-run consumer staples are among the eight stocks from that sector found in the two Invesco ETFs.
Ramon Laguarta at PepsiCo (NASDAQ: PEP) and Craig Jelinek of Costco Wholesale (NASDAQ: COST) appear on the Barron’s list. Those are the two largest consumer staples holdings in QQQ and QQQM, combining for over 3% of the ETFs’ rosters.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That group includes Apple’s (NASDAQ: AAPL) Tim Cook and Microsoft’s (NASDAQ: MSFT) Satya Nadella. Publicly traded firms with suspect management teams can possibly notch short-term gains. Sundar Pichai, CEO of Google parent Alphabet (NASDAQ: GOOG) -- a communications services firm and QQQ/QQQM holding -- is also on the list.
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That group includes Apple’s (NASDAQ: AAPL) Tim Cook and Microsoft’s (NASDAQ: MSFT) Satya Nadella. Fortunately, the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) are prime examples of ETFs full of companies with strong presences in the C-suite, including in the chief executive officer role. Good news: The Barron's list holds many tech CEOs.
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That group includes Apple’s (NASDAQ: AAPL) Tim Cook and Microsoft’s (NASDAQ: MSFT) Satya Nadella. Fortunately, the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) are prime examples of ETFs full of companies with strong presences in the C-suite, including in the chief executive officer role. QQQ, QQQM Management Strong Across Variety of Sectors QQQ and QQQM track the Nasdaq-100 Index, and as such, the ETFs are viewed as tech proxies.
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That group includes Apple’s (NASDAQ: AAPL) Tim Cook and Microsoft’s (NASDAQ: MSFT) Satya Nadella. QQQ, QQQM Management Strong Across Variety of Sectors QQQ and QQQM track the Nasdaq-100 Index, and as such, the ETFs are viewed as tech proxies. Good news: The Barron's list holds many tech CEOs.
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15180.0
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2023-06-27 00:00:00 UTC
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Is Google Shooting Itself in the Foot with 3rd-Party Cookie Bans?
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AAPL
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https://www.nasdaq.com/articles/is-google-shooting-itself-in-the-foot-with-3rd-party-cookie-bans
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nan
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The generative artificial intelligence (AI) wars that search engine giant Alphabet Inc. (NASDAQ: GOOG) owned Google is engaged in with Microsoft Inc. (NASDAQ: MSFT) has overshadowed a looming threat to its advertising business. This looming threat was self-initiated when Google announced plans to phase out third-party cookies on its Chrome browser in the latter half of 2024. Cookies are tiny files placed in your browser and devices by advertisers that track your browsing history so they can build a profile and send you targeted ads.
These have been privacy concerns for years, and Google is taking steps to accommodate privacy advocates. Online advertisers are upset, but privacy advocates see it as a meaningful first step to ensuring online user privacy. Investors wonder if Google is shooting itself in the foot with the ban.
Third-Party Cookie Bans Are Not New
Apple Inc. (NASDAQ: AAPL) has already had third-party cookie bans, implementing its Intelligent Tracking Prevention (ITP) feature that prevents tracking users across multiple websites. It's embedded in its Safari browser. This has caused many advertisers and platforms like Snap Inc. (NASDAQ: SNAP) to suffer losses. Apple is continuously updating the ITP feature to be more effective in protecting user privacy. While third-party cookies are banned, websites can use "fingerprinting," which enables sites to track users by collecting unique identifiers on their devices.
Google’s Ban
As the most powerful advertising platform controlling over 90% of internet searches, Google is perceived to be shooting itself in the foot with the ban. However, that may not be the case. The ban is on third-party cookies, not first-party cookies. This means that websites you use are allowed to track you on their site; they can't track you when surfing other sites. The initial impact will likely hurt Google's ad business, making targeted advertising much harder to perform.
Google’s FLEDGE Solution
Google has been working on ways to protect user privacy yet still enable target advertising. It's First. Locally. Executed. Decision over. Groups. Experiment. (FLEDGE) is a proposal within Google's Privacy Sandbox. The trend toward privacy-preserving advertising is gaining steam. FLEDGE will not collect or store user data on Google servers.
FLEDGE makes third-party tracking difficult using differential privacy, which adds so much noise to data that it makes identifying individual users nearly impossible. FLEDGE will collect minimal data to make targeted advertising possible while protecting user privacy.
FLEDGE is a technology that still needs to be adopted by advertisers who are not entirely convinced of its effectiveness. They will use Fastly Inc. (NASDAQ: FSLY) oblivious HTTP (OHTTP) to keep user data private, preventing cross-site and cross-app tracking while enabling targeted advertising through various other identification methods.\
Third-Party Cookie Alternatives
There are arguably less effective ways to enable targeted ads. First-party cookies allow websites to track user activity on their domain. Contextual targeting delivers ads based on the contents of the web page that the user is visiting. While less effective, it can be more relevant. Advertisers can target ads directly to interest groups. Federate Learning of Cohorts (FLoC) is another technology that Google is developing that can preserve privacy by replacing third-party cookies utilizing differential privacy.
Alphabet analyst ratings and price targets are at MarketBeat.
The definitive beginner’s guide to reading stock charts can be found free on Marketbeat.
Learn how to use the RSI indicator on MarketBeat.
Weekly Cup and Handle Breakout
The weekly candlestick chart on GOOGL illustrates a cup and handle breakout. The cup lip line commenced after peaking at $110.95 in August 2022 as shares fell to a low of $83.34 in October 2022.
After failed attempts to reach the cup lip line, GOOGL formed a rounding bottom on the breakout through the weekly market structure low (MSL) trigger at $92.19 in January 2023.
Shares eventually tested the lip line at $109.17 in April 2023 and receded into a symmetrical triangle that triggered a sharp breakout handle in May 2023 as shares peaked at $129.04. The weekly RSI peaked under the overbought 70-band as shares took a breather. Pullback supports are at $112.50, $109.17 cup lip line, $104.07 and $99.87.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Third-Party Cookie Bans Are Not New Apple Inc. (NASDAQ: AAPL) has already had third-party cookie bans, implementing its Intelligent Tracking Prevention (ITP) feature that prevents tracking users across multiple websites. Cookies are tiny files placed in your browser and devices by advertisers that track your browsing history so they can build a profile and send you targeted ads. While third-party cookies are banned, websites can use "fingerprinting," which enables sites to track users by collecting unique identifiers on their devices.
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Third-Party Cookie Bans Are Not New Apple Inc. (NASDAQ: AAPL) has already had third-party cookie bans, implementing its Intelligent Tracking Prevention (ITP) feature that prevents tracking users across multiple websites. The initial impact will likely hurt Google's ad business, making targeted advertising much harder to perform. Weekly Cup and Handle Breakout The weekly candlestick chart on GOOGL illustrates a cup and handle breakout.
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Third-Party Cookie Bans Are Not New Apple Inc. (NASDAQ: AAPL) has already had third-party cookie bans, implementing its Intelligent Tracking Prevention (ITP) feature that prevents tracking users across multiple websites. Google’s FLEDGE Solution Google has been working on ways to protect user privacy yet still enable target advertising. They will use Fastly Inc. (NASDAQ: FSLY) oblivious HTTP (OHTTP) to keep user data private, preventing cross-site and cross-app tracking while enabling targeted advertising through various other identification methods.\ Third-Party Cookie Alternatives There are arguably less effective ways to enable targeted ads.
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Third-Party Cookie Bans Are Not New Apple Inc. (NASDAQ: AAPL) has already had third-party cookie bans, implementing its Intelligent Tracking Prevention (ITP) feature that prevents tracking users across multiple websites. Google’s FLEDGE Solution Google has been working on ways to protect user privacy yet still enable target advertising. FLEDGE will collect minimal data to make targeted advertising possible while protecting user privacy.
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15181.0
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2023-06-27 00:00:00 UTC
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Lordstown Motors files bankruptcy, sues Foxconn
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AAPL
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https://www.nasdaq.com/articles/lordstown-motors-files-bankruptcy-sues-foxconn
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nan
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nan
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By Mike Spector, Joseph White and Dietrich Knauth
NEW YORK, June 27 (Reuters) - Lordstown Motors RIDE.O filed for bankruptcy protection on Tuesday and put itself up for sale after the U.S. electric truck manufacturer failed to resolve a dispute over a promised investment from Taiwan company Foxconn.
Lordstown, named after the Ohio town where it is based, filed for Chapter 11 protection in Delaware Monday night and simultaneously took legal action against Foxconn.
In an complaint filed in bankruptcy court, Lordstown accused the electronics company of fraudulent conduct and a series of broken promises in failing to abide by an agreement to invest up to $170 million in the electric-vehicle manufacturer.
Foxconn previously invested about $52.7 million in Lordstown as part of the agreement, and currently holds a roughly 8.4% ownership stake in the EV maker. Lordstown contends Foxconn is balking at purchasing additional shares of its stock as promised, and misled the EV maker about collaborating on vehicle development plans.
Foxconn, formally called Hon Hai Precision Industry 2317.TW and best known for assembling Apple's AAPL.O iPhones, has said Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. Foxconn did not immediately respond to a request for comment.
The twin filings of the bankruptcy and lawsuit set up an international business clash that could intensify scrutiny of Foxconn's EV ambitions and partnerships, not only with Lordstown but also other automakers.
The lawsuit portrays Foxconn as consistently shifting goal posts in its collaboration with Lordstown on the automaker's future vehicles, which included failing to meet funding commitments and refusing to engage with the company on initiatives Foxconn allegedly directed and purported to support.
Lordstown, a startup launched in 2018, said in a regulatory filing earlier this month that it had planned to sue Foxconn after receiving a letter from the company that led Lordstown to believe Foxconn was unlikely to make its additional expected investment.
Lordstown accused Foxconn in that regulatory filing of engaging in a “pattern of bad faith” that caused “material and irreparable harm” to the company. Even in May, Lordstown warned it might be forced to file for bankruptcy amid uncertainty over the Foxconn investment.
The automaker’s main product is the Endurance electric pickup truck, which is built at a former General Motors small-car factory in Lordstown, Ohio, for commercial customers such as local governments. Lordstown sold the plant to Foxconn in 2022.
Lordstown paused production of the Endurance earlier this year and since April has resumed building the trucks at a low rate after resolving quality issues with suppliers.
Should Lordstown fail to find a rescuer willing to re-start full production of the Endurance, the Ohio factory now owned by Foxconn could be a draw for overseas automakers looking for a quick way to build vehicles in the United States.
Lordstown filed for bankruptcy with plans to seek a buyer. It does not have an initial offer in hand, known in bankruptcy parlance as a stalking-horse bidder, which sets a minimum price other suitors can top in an auction.
Lordstown Chief Executive Edward Hightower told Reuters the Endurance business could prove attractive to another automaker looking for a fast entry into the EV market at a time the Biden administration's policies are attempting to move away from gasoline-powered cars.
Lordstown's bankruptcy is not the first among the crop of EV startups that went public during the pandemic-era SPAC boom. But Lordstown was a high-profile member of that class because it was challenging the core of the legacy Detroit automakers' business of high-margin pickup trucks, and because of its location.
The Lordstown factory in Northeast Ohio was formerly a GM GM.N small-car factory that GM decided to close in November 2018. Then-U.S. President Donald Trump and other Ohio political leaders put pressure on GM CEO Mary Barra to reverse the decision, or find a buyer. GM agreed to sell the plant to a newly-formed entity called Lordstown Motors founded by the former top executive at an electric truck maker called Workhorse Group.
Lordstown went public in October 2020 through a reverse merger with special purpose acquisition company DiamondPeak Holdings, joining a flock of EV startups that went public through such deals in that period.
Like several others, including truck maker Nikola NKLA.O, Lordstown has struggled to live up to the high expectations of early investors. In 2021, its chief executive and founder, Stephen Burns, resigned after the automaker acknowledged it had overstated pre-orders for its electric trucks.
Lordstown’s finance chief at the time also resigned. Burns has since sold his entire stake in Lordstown, according to a June regulatory filing.
As Lordstown wrestled during 2021 and 2022 with investigations by regulators and the U.S. Justice Department, Ford Motor F.N was launching its electric F-150 Lightning pickup truck, aiming at commercial customers.
EV startup Rivian RIVN.O launched its luxury electric pickup in 2022. GM and Stellantis have announced plans for electric pickups. Elon Musk’s Tesla TSLA.O has promised it will begin producing its Cybertruck late this year.
Lordstown struggled to ramp up production of its Endurance trucks over the past several months amid the dispute with Foxconn, challenging market conditions and the cost-intensive nature of its business, the company has said.
The few trucks that the company assembled had material costs that were “substantially higher than our selling price,” Lordstown said in a May regulatory filing.
(Reporting by Mike Spector in New York, Joseph White in Detroit and Dietrich Knauth in New York Editing by Nick Zieminski)
((mike.spector@thomsonreuters.com; 347-266-9966; Reuters Messaging: Twitter: @mike_d_spector))
The views and 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, formally called Hon Hai Precision Industry 2317.TW and best known for assembling Apple's AAPL.O iPhones, has said Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. By Mike Spector, Joseph White and Dietrich Knauth NEW YORK, June 27 (Reuters) - Lordstown Motors RIDE.O filed for bankruptcy protection on Tuesday and put itself up for sale after the U.S. electric truck manufacturer failed to resolve a dispute over a promised investment from Taiwan company Foxconn. In an complaint filed in bankruptcy court, Lordstown accused the electronics company of fraudulent conduct and a series of broken promises in failing to abide by an agreement to invest up to $170 million in the electric-vehicle manufacturer.
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Foxconn, formally called Hon Hai Precision Industry 2317.TW and best known for assembling Apple's AAPL.O iPhones, has said Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. By Mike Spector, Joseph White and Dietrich Knauth NEW YORK, June 27 (Reuters) - Lordstown Motors RIDE.O filed for bankruptcy protection on Tuesday and put itself up for sale after the U.S. electric truck manufacturer failed to resolve a dispute over a promised investment from Taiwan company Foxconn. The automaker’s main product is the Endurance electric pickup truck, which is built at a former General Motors small-car factory in Lordstown, Ohio, for commercial customers such as local governments.
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Foxconn, formally called Hon Hai Precision Industry 2317.TW and best known for assembling Apple's AAPL.O iPhones, has said Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. By Mike Spector, Joseph White and Dietrich Knauth NEW YORK, June 27 (Reuters) - Lordstown Motors RIDE.O filed for bankruptcy protection on Tuesday and put itself up for sale after the U.S. electric truck manufacturer failed to resolve a dispute over a promised investment from Taiwan company Foxconn. The lawsuit portrays Foxconn as consistently shifting goal posts in its collaboration with Lordstown on the automaker's future vehicles, which included failing to meet funding commitments and refusing to engage with the company on initiatives Foxconn allegedly directed and purported to support.
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Foxconn, formally called Hon Hai Precision Industry 2317.TW and best known for assembling Apple's AAPL.O iPhones, has said Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. Burns has since sold his entire stake in Lordstown, according to a June regulatory filing. GM and Stellantis have announced plans for electric pickups.
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15182.0
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2023-06-27 00:00:00 UTC
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Vuzix Sees Sales Accelerate For Its AR Smart Glasses
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AAPL
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https://www.nasdaq.com/articles/vuzix-sees-sales-accelerate-for-its-ar-smart-glasses
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nan
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nan
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Vuzix Corporation (NASDAQ: VUZI) makes augmented reality (AR) glasses and solutions for the manufacturing, healthcare, aerospace, military and industrial industries. Most consumers might equate AR glasses to gaming or entertainment, but work applications are continuing to grow as the need for mobility and hands-free operativity becomes more prevalent. As AR and virtual reality (VR) become more mainstream, more applications and use cases will develop. The company already counts The Boeing Co. (NYSE: BA) and Honeywell International Inc. (NYSE: HON) as clients.
Growing Mainstream Spotlight
As tablets and smartwatches didn't become mainstream until Apple started making them, the same may apply to AR glasses. During its World Wide Developer Conference in June 2023, Apple Inc. (NASDAQ: AAPL) unveiled its Vision Pro AR glasses. This will shine a more prominent spotlight on AR glasses as they are expected to launch in 2024. While VR headsets can be clunky, AR glasses tend to be lighter, more comfortable and most importantly, mobile. AR glasses have a higher potential to go mainstream than VR as the metaverse gains traction. Vuzix is a pioneer and leader in AR solutions and may finally be noticed by investors and the mainstream setting 2023 up to be a breakout year.
Vuzix M400
Taking a page from a science fiction movie, the futuristic Vuzix M400 has proven helpful in many industries. The Vuzix M400 AR glasses are light and designed to use all day. They use an OLED display with a 16:9 aspect ratio and 2,000 nits brightness. They are powered by Qualcomm Co. (NASDAQ: QCOM) 8 Core processors with 64 GB of ram and a 13MB camera with up to 4K30 video capable of voice control in multiple languages. These glasses are already used in the defense industry, the Internet of Things (IoT) and warehousing, healthcare and surgical applications. The $1,400 may be high for consumers but is priced low for commercial and military clients.
Sales Acceleration
On May 10, 2023, Vuzix reported its fiscal Q1 2023 results for the quarter ending March 2023. The Company reported an earnings-per-share (EPS) loss of (-$0.16), missing consensus analyst estimates of ($0.12) by (-$0.04). Revenues rose 67.4% year-over-year (YoY) to $4.19 million beating $3.78 million consensus analyst estimates. This was driven by higher unit sales of the M400 smart glasses, with no engineering income.
Vuzix CEO Paul Travers commented on the acceleration of adoption driving demand, “On the OEM side of our business, we continue to see an influx of customer interest including a growing number of requests for quotes associated with defense, consumer and enterprise-focused customers, all of whom are interested in our waveguide and display engine solutions." He expected to see record overall revenues with its core smart glasses, engineering services, OEM products, and SaaS solutions.
Winning Military Contracts
On June 13, 2023, Vuzix reported it received a follow-on OEM purchase order from a U.S.-based defense company for engineering services. The follow-on order raises the total value to mid-six figures. The contract is for Phase 2 development of components for heads-up display (HUD) technologies previously supplied by a non-U.S. company. CEO Travers commented, "Our development efforts with some of the country's largest defense contractors continue progressing steadily. There is a significant need for advanced see-through display technologies that Vuzix remains in a unique position to deliver as a leading-edge US-based designer and manufacturer of waveguides and related technologies.”
Vuzix analyst ratings and price targets are at MarketBeat.
The definitive beginner’s guide to reading stock charts can be found free on MarketBeat.
Learn how to use the RSI indicator on MarketBeat.
Weekly Descending Triangle Breakout and RSI Divergence
The weekly candlestick chart on VUZI illustrates a descending triangle that started in September 2022 after peaking at $8.20. VUZI sold off to form a triangle flat-bottom trendline around $3.59 in December 2022. Shares rallied to $6.04 in January 2023 but sold off again, forming the descending trendline as each bounce resulted in a lower high.
VUZI triggered a weekly market structure low (MSL) breakout in March 2023 through the $4.10 trigger that finally got legs in May 2023 as VUZI broke out of the descending triangle. VUZI rallied to test the weekly 50-period moving average resistance at $5.24. The weekly RSI signaled a divergence bottom as it bounced up off higher band levels each time VUZI fell back down to retest the $3.59 flat bottom trendline.
This signals a potential rally forming as buyers step in higher on pullbacks. The pullback support levels are at $4.79, $4.10 weekly MSL trigger, $3.59 and $3.27.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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During its World Wide Developer Conference in June 2023, Apple Inc. (NASDAQ: AAPL) unveiled its Vision Pro AR glasses. Most consumers might equate AR glasses to gaming or entertainment, but work applications are continuing to grow as the need for mobility and hands-free operativity becomes more prevalent. They are powered by Qualcomm Co. (NASDAQ: QCOM) 8 Core processors with 64 GB of ram and a 13MB camera with up to 4K30 video capable of voice control in multiple languages.
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During its World Wide Developer Conference in June 2023, Apple Inc. (NASDAQ: AAPL) unveiled its Vision Pro AR glasses. Vuzix Corporation (NASDAQ: VUZI) makes augmented reality (AR) glasses and solutions for the manufacturing, healthcare, aerospace, military and industrial industries. Winning Military Contracts On June 13, 2023, Vuzix reported it received a follow-on OEM purchase order from a U.S.-based defense company for engineering services.
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During its World Wide Developer Conference in June 2023, Apple Inc. (NASDAQ: AAPL) unveiled its Vision Pro AR glasses. Vuzix Corporation (NASDAQ: VUZI) makes augmented reality (AR) glasses and solutions for the manufacturing, healthcare, aerospace, military and industrial industries. Vuzix CEO Paul Travers commented on the acceleration of adoption driving demand, “On the OEM side of our business, we continue to see an influx of customer interest including a growing number of requests for quotes associated with defense, consumer and enterprise-focused customers, all of whom are interested in our waveguide and display engine solutions."
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During its World Wide Developer Conference in June 2023, Apple Inc. (NASDAQ: AAPL) unveiled its Vision Pro AR glasses. Vuzix Corporation (NASDAQ: VUZI) makes augmented reality (AR) glasses and solutions for the manufacturing, healthcare, aerospace, military and industrial industries. Growing Mainstream Spotlight As tablets and smartwatches didn't become mainstream until Apple started making them, the same may apply to AR glasses.
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15183.0
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2023-06-27 00:00:00 UTC
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Should Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-goldman-sachs-marketbeta-u.s.-1000-equity-etf-gusa-be-on-your-investing-radar-1
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nan
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The Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) was launched on 04/05/2022, 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 Goldman Sachs Funds. It has amassed assets over $1.35 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 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.11%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.29%.
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 27.60% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 24.23% of total assets under management.
Performance and Risk
GUSA seeks to match the performance of the SOLACTIVE GBS US 1000 INDEX before fees and expenses. The Solactive GBS United States 1000 Index measures the performance of equity securities of large and mid-capitalization equity issuers covering approximately the largest 1,000 of the free-float market capitalization in the United States.
The ETF has gained about 13.61% so far this year and is up about 12.16% in the last one year (as of 06/27/2023). In the past 52-week period, it has traded between $31.16 and $38.34.
The ETF has a beta of 1.01 and standard deviation of 22.21% for the trailing three-year period. With about 1011 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs MarketBeta U.S. 1000 Equity 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, GUSA 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 $325.80 billion in assets, SPDR S&P 500 ETF has $403.19 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.
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Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): 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 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): 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 $1.35 billion, 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 Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): 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 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). The Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) was launched on 04/05/2022, 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 Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): 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 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Goldman Sachs MarketBeta U.S. 1000 Equity 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 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): 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 Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) was launched on 04/05/2022, 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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15184.0
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2023-06-27 00:00:00 UTC
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Analyst David Sekera: Time to Sell 3 of the S&P's Best-Performing Stocks of 2023. Is He Right?
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AAPL
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https://www.nasdaq.com/articles/analyst-david-sekera%3A-time-to-sell-3-of-the-sps-best-performing-stocks-of-2023.-is-he
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nan
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nan
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The performance of the stock market so far in 2023 caused a collective sigh of relief on Wall Street. After turning in the worst performance in more than a decade last year, the major market indexes are all showing growth of more than 20% from their recent lows, causing some market commentators to say a new bull market is underway.
Helping fuel the gains in 2023 are rapid advances in artificial intelligence (AI), led by the debut of ChatGPT late last year. The breakthrough technology, dubbed generative AI, offers a host of potential applications that could lead to rapid productivity gains. The potential being discussed is driving many technology stocks higher.
But not everyone is so bullish. A report issued by Morningstar analyst David Sekera concludes the resulting exuberance might have driven some stocks too far, too fast. As a result, he says it's time to sell three of this year's biggest gainers.
Let's take a closer look to see if Sekera is right.
Image source: Getty Images.
Is this a case of irrational exuberance?
"(The) technology sector (is) becoming overvalued as stocks surge on excitement surrounding artificial intelligence," Sekera wrote. The analyst goes on to point out that just 10 growth stocks -- all with ties to AI -- have done all the heavy lifting for the S&P 500 so far this year.
He calls out Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Broadcom (NASDAQ: AVGO) -- which collectively account for roughly 40% of the S&P's gains so far this year -- as being the most high-profile examples. This is in stark contrast to the beginning of 2023 when nine of the top 10 market movers were undervalued.
"The rally thus far this year has been heavily concentrated in the growth category, which has soared 19.29%, whereas core stocks have lagged, only rising 2.11%, and value has lost ground, at -2.23%," Sekera noted. "While select individual opportunities remain, from a sector perspective, we now think this is a good time to take profits and move toward an underweight (read: 'sell') position."
What's driving the gains?
The excitement caused by generative AI is certainly understandable. Named for its ability to create original content, the list of potential applications is growing, and with it, estimates regarding the size of the resulting opportunity.
Analysts at Morgan Stanley predict the opportunity represented by generative AI will amount to roughly $6 trillion in the coming years, while their counterparts at Goldman Sachs forecast the technology could increase global gross domestic product (GDP) by $7 trillion over the next 10 years.
These optimistic predictions have investors buying up AI-related stocks hand over fist, while also driving their valuations higher. As of this writing, Nvidia is selling for 53 times forward earnings, while Apple and Broadcom sport price-to-earnings (P/E) ratios of 31 and 20, respectively.
To give those numbers context, the P/E of the S&P 500 is currently 25. So, from that perspective, at least two of these valuations appear somewhat lofty -- at least when viewed from a short-term perspective. Those with the intention to hold for the next decade have a different view.
There are opposing viewpoints
Not everyone shares Sekera's opinion. One example is Wedbush Securities analyst Dan Ives, who recently said generational AI will fuel the "fourth Industrial Revolution," which could drive some stocks significantly higher for years to come (emphasis in the quote below mine):
While many of the tech skeptics will point to today as a "1999 moment" a la on the verge of the dot-com bubble/collapse, given the significant move in tech valuations, we strongly disagree. The massive $800 billion AI opportunity (our estimate) is now on the doorstep for the tech sector for the next decade, and real monetization of AI is happening much sooner than expected.
Given these diametrically opposed opinions, who's right?
Both viewpoints could be right
It's worth noting that Sekera said he believes that the tech sector is currently "trading at a 4% premium over our intrinsic valuations." Historically, when analysts refer to their fair-value estimates, they're talking about where they believe the stock will be over the coming 12 to 18 months. At the same time, it's clear the advances and benefits from AI will play out over years or even decades.
In the grand scheme of things, 4% isn't much, particularly when you are thinking in terms of 10 years or more. For example, the S&P 500 has gained more than 173% over the course of the past decade, while Nvidia, Apple, and Broadcom have far outpaced the broader market, as illustrated in the chart.
Data by YCharts
Nvidia is the industry-leading supplier of chips used to train AI systems, controlling an estimated 95% of the market, according to data compiled by New Street Research. AI underpins a broad cross-section of the functionality developed for the iPhone, which has helped Apple become the largest and arguably the most successful company in the world. And Broadcom's custom processor business is well-positioned to benefit from AI.
Sekera could well be right that the market leaders could be in for a decline -- even a significant one -- in the coming weeks or months. At the same time, Ives is likely also correct that over the longer term, these stocks could continue to soar.
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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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He calls out Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Broadcom (NASDAQ: AVGO) -- which collectively account for roughly 40% of the S&P's gains so far this year -- as being the most high-profile examples. "The rally thus far this year has been heavily concentrated in the growth category, which has soared 19.29%, whereas core stocks have lagged, only rising 2.11%, and value has lost ground, at -2.23%," Sekera noted. "While select individual opportunities remain, from a sector perspective, we now think this is a good time to take profits and move toward an underweight (read: 'sell') position."
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He calls out Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Broadcom (NASDAQ: AVGO) -- which collectively account for roughly 40% of the S&P's gains so far this year -- as being the most high-profile examples. Helping fuel the gains in 2023 are rapid advances in artificial intelligence (AI), led by the debut of ChatGPT late last year. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, and Nvidia.
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He calls out Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Broadcom (NASDAQ: AVGO) -- which collectively account for roughly 40% of the S&P's gains so far this year -- as being the most high-profile examples. Analysts at Morgan Stanley predict the opportunity represented by generative AI will amount to roughly $6 trillion in the coming years, while their counterparts at Goldman Sachs forecast the technology could increase global gross domestic product (GDP) by $7 trillion over the next 10 years. One example is Wedbush Securities analyst Dan Ives, who recently said generational AI will fuel the "fourth Industrial Revolution," which could drive some stocks significantly higher for years to come (emphasis in the quote below mine): While many of the tech skeptics will point to today as a "1999 moment" a la on the verge of the dot-com bubble/collapse, given the significant move in tech valuations, we strongly disagree.
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He calls out Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Broadcom (NASDAQ: AVGO) -- which collectively account for roughly 40% of the S&P's gains so far this year -- as being the most high-profile examples. The breakthrough technology, dubbed generative AI, offers a host of potential applications that could lead to rapid productivity gains. For example, the S&P 500 has gained more than 173% over the course of the past decade, while Nvidia, Apple, and Broadcom have far outpaced the broader market, as illustrated in the chart.
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15185.0
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2023-06-26 00:00:00 UTC
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Is Trending Stock Apple Inc. (AAPL) a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-trending-stock-apple-inc.-aapl-a-buy-now-5
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nan
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nan
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this maker of iPhones, iPads and other products have returned +6.4% over the past month versus the Zacks S&P 500 composite's +5% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 8.7% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
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 $1.18 per share for the current quarter, representing a year-over-year change of -1.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
For the current fiscal year, the consensus earnings estimate of $5.99 points to a change of -2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $6.64 indicates a change of +10.8% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
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 $81.17 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
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth 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.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. 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.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up.
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15186.0
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2023-06-26 00:00:00 UTC
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Apple (AAPL) Dips More Than Broader Markets: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-dips-more-than-broader-markets%3A-what-you-should-know-7
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nan
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In the latest trading session, Apple (AAPL) closed at $185.27, marking a -0.76% move from the previous day. This change lagged the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 3.58%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 6.41% over the past month, lagging the Computer and Technology sector's gain of 7.46% and outpacing the S&P 500's gain of 5.01% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. The company is expected to report EPS of $1.18, down 1.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $81.17 billion, down 2.16% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.99 per share and revenue of $384.34 billion, which would represent changes of -1.96% and -2.53%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. Apple is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Apple currently has a Forward P/E ratio of 31.15. Its industry sports an average Forward P/E of 8.85, so we one might conclude that Apple is trading at a premium comparatively.
It is also worth noting that AAPL currently has a PEG ratio of 2.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AAPL's industry had an average PEG ratio of 2.49 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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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In the latest trading session, Apple (AAPL) closed at $185.27, marking a -0.76% move from the previous day. It is also worth noting that AAPL currently has a PEG ratio of 2.49. AAPL's industry had an average PEG ratio of 2.49 as of yesterday's close.
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In the latest trading session, Apple (AAPL) closed at $185.27, marking a -0.76% move from the previous day. It is also worth noting that AAPL currently has a PEG ratio of 2.49. AAPL's industry had an average PEG ratio of 2.49 as of yesterday's close.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Apple (AAPL) closed at $185.27, marking a -0.76% move from the previous day. It is also worth noting that AAPL currently has a PEG ratio of 2.49.
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In the latest trading session, Apple (AAPL) closed at $185.27, marking a -0.76% move from the previous day. It is also worth noting that AAPL currently has a PEG ratio of 2.49. AAPL's industry had an average PEG ratio of 2.49 as of yesterday's close.
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15187.0
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2023-06-26 00:00:00 UTC
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Technology Sector Update for 06/26/2023: ENFN, META, GOOG, AAPL, AVGO
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-06-26-2023%3A-enfn-meta-goog-aapl-avgo
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nan
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nan
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Tech stocks were mixed late Monday with the Technology Select Sector SPDR Fund (XLK) decreasing 0.3% and the Philadelphia Semiconductor index advancing 1%.
In company news, Enfusion (ENFN) shares were rising 20% after Reuters reported the software firm is being courted by private equity firms and strategic buyers.
Meta Platforms (META) on Monday launched its Meta Quest+ virtual reality subscription service for the Quest 2 and Quest Pro headsets. Its shares were down 3.2%.
Alphabet's (GOOG) unit Google won a US Supreme Court ruling as the justices left standing a decision that tossed out a suit by music website Genius alleging Google stole millions of music lyrics, Bloomberg reported. Alphabet shares were down 3%.
The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Apple shares were down 0.6% while Broadcom was up 0.3%.
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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The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Tech stocks were mixed late Monday with the Technology Select Sector SPDR Fund (XLK) decreasing 0.3% and the Philadelphia Semiconductor index advancing 1%. Alphabet's (GOOG) unit Google won a US Supreme Court ruling as the justices left standing a decision that tossed out a suit by music website Genius alleging Google stole millions of music lyrics, Bloomberg reported.
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The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Meta Platforms (META) on Monday launched its Meta Quest+ virtual reality subscription service for the Quest 2 and Quest Pro headsets. Alphabet shares were down 3%.
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The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. In company news, Enfusion (ENFN) shares were rising 20% after Reuters reported the software firm is being courted by private equity firms and strategic buyers. Alphabet's (GOOG) unit Google won a US Supreme Court ruling as the justices left standing a decision that tossed out a suit by music website Genius alleging Google stole millions of music lyrics, Bloomberg reported.
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The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Tech stocks were mixed late Monday with the Technology Select Sector SPDR Fund (XLK) decreasing 0.3% and the Philadelphia Semiconductor index advancing 1%. Alphabet shares were down 3%.
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15188.0
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2023-06-26 00:00:00 UTC
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Notable Monday Option Activity: AAPL, WBA, GS
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AAPL
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-aapl-wba-gs
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 296,525 contracts has been traded thus far today, a contract volume which is representative of approximately 29.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.3% of AAPL's average daily trading volume over the past month, of 64.1 million shares. Particularly high volume was seen for the $190 strike call option expiring June 30, 2023, with 62,436 contracts trading so far today, representing approximately 6.2 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $190 strike highlighted in orange:
Walgreens Boots Alliance Inc (Symbol: WBA) saw options trading volume of 37,480 contracts, representing approximately 3.7 million underlying shares or approximately 44.9% of WBA's average daily trading volume over the past month, of 8.3 million shares. Especially high volume was seen for the $31 strike put option expiring June 30, 2023, with 6,649 contracts trading so far today, representing approximately 664,900 underlying shares of WBA. Below is a chart showing WBA's trailing twelve month trading history, with the $31 strike highlighted in orange:
And Goldman Sachs Group Inc (Symbol: GS) options are showing a volume of 11,112 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 43.8% of GS's average daily trading volume over the past month, of 2.5 million shares. Especially high volume was seen for the $320 strike call option expiring June 30, 2023, with 810 contracts trading so far today, representing approximately 81,000 underlying shares of GS. Below is a chart showing GS's trailing twelve month trading history, with the $320 strike highlighted in orange:
For the various different available expirations for AAPL options, WBA options, or GS options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Wabtec market cap history
CPS shares outstanding history
MSG 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 June 30, 2023, with 62,436 contracts trading so far today, representing approximately 6.2 million underlying shares of AAPL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 296,525 contracts has been traded thus far today, a contract volume which is representative of approximately 29.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.3% of AAPL's average daily trading volume over the past month, of 64.1 million shares.
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Particularly high volume was seen for the $190 strike call option expiring June 30, 2023, with 62,436 contracts trading so far today, representing approximately 6.2 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $190 strike highlighted in orange: Walgreens Boots Alliance Inc (Symbol: WBA) saw options trading volume of 37,480 contracts, representing approximately 3.7 million underlying shares or approximately 44.9% of WBA's average daily trading volume over the past month, of 8.3 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 296,525 contracts has been traded thus far today, a contract volume which is representative of approximately 29.7 million underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 296,525 contracts has been traded thus far today, a contract volume which is representative of approximately 29.7 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $190 strike call option expiring June 30, 2023, with 62,436 contracts trading so far today, representing approximately 6.2 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $190 strike highlighted in orange: Walgreens Boots Alliance Inc (Symbol: WBA) saw options trading volume of 37,480 contracts, representing approximately 3.7 million underlying shares or approximately 44.9% of WBA's average daily trading volume over the past month, of 8.3 million shares.
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Particularly high volume was seen for the $190 strike call option expiring June 30, 2023, with 62,436 contracts trading so far today, representing approximately 6.2 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $190 strike highlighted in orange: Walgreens Boots Alliance Inc (Symbol: WBA) saw options trading volume of 37,480 contracts, representing approximately 3.7 million underlying shares or approximately 44.9% of WBA's average daily trading volume over the past month, of 8.3 million shares. Below is a chart showing GS's trailing twelve month trading history, with the $320 strike highlighted in orange: For the various different available expirations for AAPL options, WBA options, or GS options, visit StockOptionsChannel.com.
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15189.0
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2023-06-26 00:00:00 UTC
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Technology Sector Update for 06/26/2023: META, GOOG, AAPL, AVGO
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-06-26-2023%3A-meta-goog-aapl-avgo
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nan
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nan
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Tech stocks were mixed on Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.4% and the Philadelphia Semiconductor index advancing 0.6%.
In company news, Meta Platforms (META) on Monday launched its Meta Quest+ virtual reality subscription service for the Quest 2 and Quest Pro headsets. Its shares were down 3%.
Alphabet's (GOOG) unit Google won a US Supreme Court ruling as the justices left standing a decision that tossed out a suit by music website Genius alleging Google stole millions of music lyrics, Bloomberg reported. Alphabet shares were down 3%.
The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Apple shares were down 0.4% while Broadcom was up 0.1%.
The views and 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 US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Tech stocks were mixed on Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.4% and the Philadelphia Semiconductor index advancing 0.6%. Alphabet's (GOOG) unit Google won a US Supreme Court ruling as the justices left standing a decision that tossed out a suit by music website Genius alleging Google stole millions of music lyrics, Bloomberg reported.
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The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. In company news, Meta Platforms (META) on Monday launched its Meta Quest+ virtual reality subscription service for the Quest 2 and Quest Pro headsets. Alphabet shares were down 3%.
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The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. In company news, Meta Platforms (META) on Monday launched its Meta Quest+ virtual reality subscription service for the Quest 2 and Quest Pro headsets. Alphabet's (GOOG) unit Google won a US Supreme Court ruling as the justices left standing a decision that tossed out a suit by music website Genius alleging Google stole millions of music lyrics, Bloomberg reported.
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The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Tech stocks were mixed on Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.4% and the Philadelphia Semiconductor index advancing 0.6%. Alphabet shares were down 3%.
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15190.0
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2023-06-26 00:00:00 UTC
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Generative AI is Driving Yext to Up Its Full-Year Guidance
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AAPL
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https://www.nasdaq.com/articles/generative-ai-is-driving-yext-to-up-its-full-year-guidance
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nan
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nan
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Yext Inc. (NASDAQ: YEXT) offers a one-stop shop platform for businesses to create, adjust and update information about them. The artificial intelligence (AI) powered content management platform updates the information consistently across the internet and mobile sources. It lets businesses stay abreast of customer experiences while keeping their content consistent.
Rather than attempt to correct or update information across hundreds of online sites manually, businesses can conveniently make adjustments on the Yext content management platform. Yext has also launched studio and generative AI content generation features enabling the creation of on-brand business-specific content consistent with a company's writing patterns and styles.
This solution has been embraced by many well-known brands, including Starbucks Co. (NASDAQ: SBUX), Domino’s Pizza Inc. (NYSE: DPZ), The Home Depot Inc. (NYSE: HD), Subway and Lego.
Content Management Platform
Yext offers many services to improve the company's online presence and customer experience. Its listing services are a single one-stop source of truth that businesses can use to create and manage their listings across hundreds of online sources, including websites, social media, search engines and mobile. It lets businesses respond to customer reviews, track the performance of their reviews and provide insights into what customers are saying about them.
Companies can provide answers to customer questions and create their knowledge base through the Yext Knowledge Engine. It also provides search engine optimization (SEO) across the most prominent search sites, including Alphabet Inc. (NASDAQ: GOOGL) Google, Microsoft Co. (NASDAQ: MSFT) Bing, Apple Inc (NASDAQ: AAPL) Business Connect and Amazon.com Inc. (NASDAQ: AMZN).
Turnaround Taking Shape
On June 6, 2023, Yext released its fiscal first-quarter 2024 results for the quarter ended April 2024. The Company reported an earnings-per-share (EPS) profit of $0.09 versus $0.05 consensus analyst estimates, a $0.04 beat. The Company had a net loss of (-$0.04 million). Adjusted EBITDA was $14.4 million. Revenues rose 0.7% year-over-year (YoY) to $99.45 million, beating analyst estimates of $98.55 million.
Annual run rate (ARR) rose 3% YoY to $398 million compared to $387 million in the year-ago period. Customer count rose 5% YoY to 2,970. The company ended the quarter with $217 million in cash and cash equivalents. The remaining performance obligation (RPO) was $428 million, with $373 million expected to be recognized over the next 24 months.
CEO Insights
Yext CEO and Chairman Michael Walrath commented, "Our results demonstrate our continued commitment to driving efficiency and executing our operational and financial goals. Yext is ideally positioned to help enterprises use generative AI, search, content management, and related technologies to deliver world-class digital experiences." Walrath exclaimed that the calendar year 2023 was a turning point. The company reduced its workforce by 8% and transitioned parts of its lower-margin business to its partner ecosystem and system integrators.
This helped non-GAAP gross margins expand 280 bps to 79.2%. Generative AI will create new opportunities, including its recently launched studio and content generation features that implement large language models to generate business-specific content consistent with the company's branding and style.
Raising the Bar
Yext raised fiscal Q2 2024 EPS of $0.06 to $0.07 versus $0.05 consensus analyst estimates. It sees revenues of $100 million to $101.5 million to $102.5 million versus $100.13 million analyst estimates. Fiscal full-year 2024 revenue expectations were raised to $404 million to $407 million versus $403.58 million analyst estimates. Prior estimates for fiscal 2024 were for EPS of $0.22 to $0.23 and revenues between $402 million to $406 million.
Yext analyst ratings and stock price targets are at MarketBeat.
The definitive beginner’s guide to reading stock charts can be found free on Marketbeat.
Learn how to use the RSI indicator on MarketBeat.
Weekly Cup and Handle Breakout
The weekly candlestick chart on YEXT started forming its lip line at $9.92 in January 2023 as shares cascaded lower to bottom out at $4.00 in August 2022. The weekly RSI had a divergence after dipping to the 23-band in May, hitting a low of $4.68 but making a new low of $4.00 in August 2022 with a higher weekly RSI at the 34-band.
This signaled the buyers bidding up shares as the weekly rounding bottom formed, propelling YEXT back to retest the $9.92 cup lip line in March 2023. YEXT shares pulled back to form a handle low at $7.53 and triggered a weekly market structure low (MSL) breakout through the $8.15 trigger as shares exploded to a high of $14.35 on strong Q1 2023 results and raised guidance.
This also sent the weekly RSI up to the overbought 76-band before plunging back down to the 64-band as shares rug pulled back to $11.37 two weeks later. Pullback supports are at $9.92 cup lip line, $8.89, $8.15 weekly MSL trigger and $7.53.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It also provides search engine optimization (SEO) across the most prominent search sites, including Alphabet Inc. (NASDAQ: GOOGL) Google, Microsoft Co. (NASDAQ: MSFT) Bing, Apple Inc (NASDAQ: AAPL) Business Connect and Amazon.com Inc. (NASDAQ: AMZN). Rather than attempt to correct or update information across hundreds of online sites manually, businesses can conveniently make adjustments on the Yext content management platform. Yext is ideally positioned to help enterprises use generative AI, search, content management, and related technologies to deliver world-class digital experiences."
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It also provides search engine optimization (SEO) across the most prominent search sites, including Alphabet Inc. (NASDAQ: GOOGL) Google, Microsoft Co. (NASDAQ: MSFT) Bing, Apple Inc (NASDAQ: AAPL) Business Connect and Amazon.com Inc. (NASDAQ: AMZN). Yext Inc. (NASDAQ: YEXT) offers a one-stop shop platform for businesses to create, adjust and update information about them. Rather than attempt to correct or update information across hundreds of online sites manually, businesses can conveniently make adjustments on the Yext content management platform.
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It also provides search engine optimization (SEO) across the most prominent search sites, including Alphabet Inc. (NASDAQ: GOOGL) Google, Microsoft Co. (NASDAQ: MSFT) Bing, Apple Inc (NASDAQ: AAPL) Business Connect and Amazon.com Inc. (NASDAQ: AMZN). It sees revenues of $100 million to $101.5 million to $102.5 million versus $100.13 million analyst estimates. Fiscal full-year 2024 revenue expectations were raised to $404 million to $407 million versus $403.58 million analyst estimates.
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It also provides search engine optimization (SEO) across the most prominent search sites, including Alphabet Inc. (NASDAQ: GOOGL) Google, Microsoft Co. (NASDAQ: MSFT) Bing, Apple Inc (NASDAQ: AAPL) Business Connect and Amazon.com Inc. (NASDAQ: AMZN). The artificial intelligence (AI) powered content management platform updates the information consistently across the internet and mobile sources. It sees revenues of $100 million to $101.5 million to $102.5 million versus $100.13 million analyst estimates.
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15191.0
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2023-06-26 00:00:00 UTC
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Will Augmented Reality Augment Apple’s Returns?
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AAPL
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https://www.nasdaq.com/articles/will-augmented-reality-augment-apples-returns
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nan
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nan
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One of the world’s most innovative tech companies just debuted a new product in recent days – the Apple Vision Pro. This is a spatial computer headset that blends virtual and actual realities together, creating an augmented reality. Apple is having a go at pricing this new device around $3,500. Will consumers bite at this new tech device? Or will it turn out to be a bust for this tech giant?
Innovate or Retreat to Oblivion
It’s been a few years since Apple Inc. (APPL) debuted an entirely original product. There have been various product updates and modifications to the existing product line, but one could make a strong argument that the last meaningful product launch was the Apple Watch back in 2016. In hindsight, it turned out that 2016 was an exceptional buying opportunity in Apple. But can the Vision Pro bring the same bullish fortunes as the Apple Watch did then?
Fortunately for Apple, its future prospects aren’t entirely dependent on a successful Vision Pro launch, although bulls will want to see this manifest in some way, shape, or form. Another major revenue stream for Apple is its services line, which carries a whopping margin of 71% compared to its products that have a margin of 37%. Thus, bulls should be able to find solace in this ballooning segment of the business.
Traders seeking to bet on Apple’s bullish case may consider Direxion’s Daily AAPL Bull 1.5X Shares (Ticker: AAPU), which looks to track, before fees and expenses, 150% of the daily performance of Apple common stock (Ticker: AAPL).
Below is a daily chart of AAPL as of June 8, 2023.
[caption id="attachment_524256" align="aligncenter" width="624"] Source: TradingView.com[/caption]
Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.
The performance data quoted represents past performance.
Will the Consumer Actually Bite?
It all comes down to discretionary spending and the health of the consumer for a company like Apple, especially when consumption represents approximately 70% of gross domestic product (GDP) in the United States. Fortunately, Apple has access to the world’s market, but it’s well-known that if the U.S. economy catches a cold, the world economy gets pneumonia.
Ultimately, the launch of Vision Pro ties into the whole artificial intelligence (AI) market craze. Market observers may argue that the trade is becoming crowded in the near-term, and perhaps industry adoption may not take effect as soon as some may believe.
For traders that remain skeptical about Apple’s new product launch, as well as the health of the consumer, consider Direxion’s Daily AAPL Bear 1X Shares (Ticker: AAPD), which looks to track, before fees and expenses, 100% of the inverse of the daily performance of Apple common stock (Ticker: AAPL).
Keeping the Big Picture in Mind
Traders looking for less concentrated exposure may find opportunities with other Direxion funds. The Direxion Daily Technology Bull 3X Shares (Ticker: TECL) and Direxion Daily Technology Bear 3X Shares (Ticker: TECS) seek to track 300% or -300%, respectively, before fees and expenses, of the daily performance of the Technology Select Sector Index*.
Direxion even offers traders funds to speculate in the AI-space. The Direxion Daily Electric and Autonomous Vehicle Bull 2X Shares (Ticker: EVAV) seeks daily investment results, before fees and expenses, of 200% of the performance of the Indxx US Electric and Autonomous Vehicles Index*. There’s also the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares (Ticker: UBOT), which seeks daily investment results, before fees and expenses, of 200% of the performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index*.
Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don't have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.
Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. An investor could lose the full principal value of his or her investment in a single day. Investing in the Funds is not equivalent to investing directly in AAPL.
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at www.direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.
Leveraged and Inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk and who actively manage their investments.
The “Technology Select Sector Index” is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Rafferty Asset Management, LLC (“Rafferty”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Rafferty. Rafferty’s ETFs are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Technology Select Sector Index.
The Technology Select Sector Index (IXTTR) is provided by S&P Dow Jones Indices and includes domestic companies from the technology sector which includes the following industries: computers and peripherals; software; diversified telecommunications services; communications equipment; semiconductors and semi-conductor equipment; internet software and services; IT services; electronic equipment, instruments and components; wireless telecommunication services; and office electronics.
The Indxx US Electric and Autonomous Vehicles Index is designed to track the performance of electric and autonomous vehicles companies. The Index Provider defines electric and autonomous vehicles companies as those companies that derive at least 50% of their revenues from the following activities (or “sub-themes”): Manufacturers – companies that manufacture and sell electric or autonomous vehicles; Enablers – companies that build infrastructure or create technology for electric or autonomous vehicles, such as charging docks and batteries; and Software and Technology Services – companies that engage in the development of software and technology for electric or autonomous vehicles.
The Indxx Global Robotics and Artificial Intelligence Thematic Index (IBOTZNT) is designed to provide exposure to exchange-listed companies in developed markets that are expected to benefit from the adoption and utilization of robotics and/or artificial intelligence, including companies involved in developing industrial robots and production systems, automated inventory management, unmanned vehicles, voice/image/text recognition, and medical robots or robotic instruments, as defined by the index provider, Indxx. Companies must have a minimum market capitalization of $100 million and a minimum average daily turnover for the last 6 months greater than, or equal to, $2 million in order to be eligible for inclusion in the Index.
One cannot directly invest in an index.
AAPU and AAPD Risks – An investment in each Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning. Risks of the Funds include Effects of Compounding and Market Volatility Risk, Leverage Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Daily Correlation Risk, Apple Inc. Investing Risk, Market Risk, Industry Concentration Risk, Indirect Investment Risk, Trading Halt Risk, Cash Transaction Risk, Tax Risk, and risks specific to the technology sector. Additional risks include, for the Direxion Daily AAPL Bear 1X Shares, risks related to Shorting. Please see the summary and full prospectuses for a more complete description of these and other risks of the Funds.
Technology Sector Risk — The market prices of technology related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities. These securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices. Technology securities may be affected by intense competition, obsolescence of existing technology, general economic conditions and government regulation and may have limited product lines, markets, financial resources or personnel. Technology companies may experience dramatic and often unpredictable changes in growth rates and competition for qualified personnel. These companies are also heavily dependent on patent and intellectual property rights, the loss or impairment of which may adversely impact a company’s profitability.
Apple Inc. Investing Risk — In addition to the risks associated with companies in the technology sector, Apple Inc. faces risks related to the impacts from the COVID-19 pandemic; managing the frequent introductions and transitions of products and services; the outsourced manufacturing and logistical services provided by partners, many of which are located outside of the United States. Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole.
Direxion Shares ETF Risks - An investment in each Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning. Risks of the Funds include Effects of Compounding and Market Volatility Risk, Leverage Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Daily Correlation Risk, Apple Inc. Investing Risk, Market Risk, Industry Concentration Risk, Indirect Investment Risk, Trading Halt Risk, Cash Transaction Risk, Tax Risk, and risks specific to the technology sector. Additional risks include, for the Direxion Daily AAPL Bear 1X Shares, risks related to Shorting. Please see the summary and full prospectuses for a more complete description of these and other risks of the Funds.
Distributor: Foreside Fund Services, LLC.
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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Additional risks include, for the Direxion Daily AAPL Bear 1X Shares, risks related to Shorting. Traders seeking to bet on Apple’s bullish case may consider Direxion’s Daily AAPL Bull 1.5X Shares (Ticker: AAPU), which looks to track, before fees and expenses, 150% of the daily performance of Apple common stock (Ticker: AAPL). Below is a daily chart of AAPL as of June 8, 2023.
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Additional risks include, for the Direxion Daily AAPL Bear 1X Shares, risks related to Shorting. Risks of the Funds include Effects of Compounding and Market Volatility Risk, Leverage Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Daily Correlation Risk, Apple Inc. Traders seeking to bet on Apple’s bullish case may consider Direxion’s Daily AAPL Bull 1.5X Shares (Ticker: AAPU), which looks to track, before fees and expenses, 150% of the daily performance of Apple common stock (Ticker: AAPL).
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Additional risks include, for the Direxion Daily AAPL Bear 1X Shares, risks related to Shorting. Risks of the Funds include Effects of Compounding and Market Volatility Risk, Leverage Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Daily Correlation Risk, Apple Inc. Traders seeking to bet on Apple’s bullish case may consider Direxion’s Daily AAPL Bull 1.5X Shares (Ticker: AAPU), which looks to track, before fees and expenses, 150% of the daily performance of Apple common stock (Ticker: AAPL).
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For traders that remain skeptical about Apple’s new product launch, as well as the health of the consumer, consider Direxion’s Daily AAPL Bear 1X Shares (Ticker: AAPD), which looks to track, before fees and expenses, 100% of the inverse of the daily performance of Apple common stock (Ticker: AAPL). Additional risks include, for the Direxion Daily AAPL Bear 1X Shares, risks related to Shorting. Traders seeking to bet on Apple’s bullish case may consider Direxion’s Daily AAPL Bull 1.5X Shares (Ticker: AAPU), which looks to track, before fees and expenses, 150% of the daily performance of Apple common stock (Ticker: AAPL).
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15192.0
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2023-06-26 00:00:00 UTC
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What Do the SPY ETF’s Technical Indicators Signal?
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AAPL
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https://www.nasdaq.com/articles/what-do-the-spy-etfs-technical-indicators-signal
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nan
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nan
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The SPDR S&P 500 ETF Trust (SPY) tracks the S&P 500 Index (SPX) and consists of over 500 large-cap U.S. stocks across a broad range of market sectors. The SPY ETF stock has advanced about 15% year-to-date thanks to the artificial intelligence (AI) rally, and remarkably, Wall Street’s top analysts see further upside potential. Moreover, based on technical indicators, SPY is a Buy near its current levels.
SPY ETF's Technical Indicators
According to TipRanks’ technical analysis tool, the SPY ETF stock’s 50-Day EMA (exponential moving average) is 419.94, while SPY's price is $432.70, making it a Buy. Further, the shorter-duration EMA (20-Day) also signals a Buy.
Meanwhile, its RSI (Relative Strength Index) is 60.64, implying a Neutral signal. At the same time, the SPY ETF’s price rate of change (ROC) of 1.61 points to a bullish trend.
Overall, in the one-day time frame, the SPY ETF stock is a Buy, based on TipRanks’ easy-to-read technical summary signals. This is based on 11 Bullish, six Neutral, and five Bearish signals.
Is SPY a Buy, According to Analysts?
Out of the 4,290 top analysts who rated the SPY ETF’s holdings in the past three months, 60.84% assigned a Buy rating, 34.36% suggested a Hold, and 4.8% have given a Sell rating. Overall, top analysts have a Moderate Buy consensus rating on the SPY ETF. Moreover, at $482.76, the average SPY stock price target based on these recommendations implies upside potential of 11.6% at present.
It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations. Moreover, each analyst has a remarkable success rate.
Ending Thoughts
Impressively, SPY has delivered an average annualized return of 12.1% in the past decade (as of March 2023), and the ETF’s rock-bottom expense ratio of 0.09% makes it even more appealing. Investors looking for exposure to some of its key holdings, including Apple (AAPL), Tesla (TSLA), and JPMorgan Chase (JPM), may want to consider the ETF.
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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Investors looking for exposure to some of its key holdings, including Apple (AAPL), Tesla (TSLA), and JPMorgan Chase (JPM), may want to consider the ETF. The SPDR S&P 500 ETF Trust (SPY) tracks the S&P 500 Index (SPX) and consists of over 500 large-cap U.S. stocks across a broad range of market sectors. The SPY ETF stock has advanced about 15% year-to-date thanks to the artificial intelligence (AI) rally, and remarkably, Wall Street’s top analysts see further upside potential.
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Investors looking for exposure to some of its key holdings, including Apple (AAPL), Tesla (TSLA), and JPMorgan Chase (JPM), may want to consider the ETF. SPY ETF's Technical Indicators According to TipRanks’ technical analysis tool, the SPY ETF stock’s 50-Day EMA (exponential moving average) is 419.94, while SPY's price is $432.70, making it a Buy. Overall, in the one-day time frame, the SPY ETF stock is a Buy, based on TipRanks’ easy-to-read technical summary signals.
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Investors looking for exposure to some of its key holdings, including Apple (AAPL), Tesla (TSLA), and JPMorgan Chase (JPM), may want to consider the ETF. SPY ETF's Technical Indicators According to TipRanks’ technical analysis tool, the SPY ETF stock’s 50-Day EMA (exponential moving average) is 419.94, while SPY's price is $432.70, making it a Buy. Overall, in the one-day time frame, the SPY ETF stock is a Buy, based on TipRanks’ easy-to-read technical summary signals.
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Investors looking for exposure to some of its key holdings, including Apple (AAPL), Tesla (TSLA), and JPMorgan Chase (JPM), may want to consider the ETF. SPY ETF's Technical Indicators According to TipRanks’ technical analysis tool, the SPY ETF stock’s 50-Day EMA (exponential moving average) is 419.94, while SPY's price is $432.70, making it a Buy. Is SPY a Buy, According to Analysts?
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15193.0
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2023-06-26 00:00:00 UTC
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U.S. Supreme Court spurns Apple-Broadcom challenge to Caltech patents
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AAPL
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https://www.nasdaq.com/articles/u.s.-supreme-court-spurns-apple-broadcom-challenge-to-caltech-patents
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nan
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nan
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WASHINGTON, June 26 (Reuters) - The U.S. Supreme Court on Monday declined to hear a bid by Apple Inc AAPL.O and Broadcom Inc AVGO.O to revive their challenges to Caltech data-transmission patents in a patent infringement case in which the university's earlier $1.1 billion jury verdict against the companies was thrown out.
The justices turned away an appeal by Apple and Broadcom of a lower court's ruling affirming a trial judge's decision to prevent the companies from contesting the validity of the patents as they defended against the California Institute of Technology's lawsuit.
The U.S. Court of Appeals for the Federal Circuit, which specializes in patent cases, ruled against the companies' arguments because they failed to bring them up during earlier proceedings at the U.S. Patent and Trademark Office.
Apple and Broadcom have argued that they should have been allowed to raise the patent challenges during the trial.
A jury found that the companies infringed Caltech's patents, ordering Apple to pay $837.8 million and Broadcom to pay $270.2 million. The Federal Circuit took issue with the amount of the award, and sent the case back for a new trial on damages.
Caltech, located in Pasadena, California, sued Cupertino-based Apple and San Jose-based Broadcom in 2016 in federal court in Los Angeles, alleging that millions of iPhones, iPads, Apple Watches and other devices using Broadcom Wi-Fi chips infringed its data-transmission patents.
Apple is a major purchaser of Broadcom chips, and in January 2020 reached a $15 billion supply agreement that ends in 2023. Broadcom has estimated that 20% of its revenue comes from Apple.
The Federal Circuit also upheld the trial judge's decision to block the companies from arguing that the patents were invalid because they could have made the arguments in their petitions for USPTO review of the patents.
Apple and Broadcom told the Supreme Court that the Federal Circuit misread the law, which they said only blocks arguments that could have been raised during the review itself.
President Joe Biden's administration urged the justices in May to reject the case and argued that the Federal Circuit had interpreted the law correctly.
Caltech has also sued Microsoft Corp MSFT.O, Samsung Electronics Co 005930.KS, Dell Technologies Inc DELL.N and HP Inc HPQ.N, accusing them of infringing the same patents in separate cases that are still pending.
(Reporting by Blake Brittain in Washington. Additional reporting by Andrew Chung in New York.)
((andrew.chung@thomsonreuters.com; 332.219.1428 ; 646.407.9441 mobile;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WASHINGTON, June 26 (Reuters) - The U.S. Supreme Court on Monday declined to hear a bid by Apple Inc AAPL.O and Broadcom Inc AVGO.O to revive their challenges to Caltech data-transmission patents in a patent infringement case in which the university's earlier $1.1 billion jury verdict against the companies was thrown out. The justices turned away an appeal by Apple and Broadcom of a lower court's ruling affirming a trial judge's decision to prevent the companies from contesting the validity of the patents as they defended against the California Institute of Technology's lawsuit. President Joe Biden's administration urged the justices in May to reject the case and argued that the Federal Circuit had interpreted the law correctly.
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WASHINGTON, June 26 (Reuters) - The U.S. Supreme Court on Monday declined to hear a bid by Apple Inc AAPL.O and Broadcom Inc AVGO.O to revive their challenges to Caltech data-transmission patents in a patent infringement case in which the university's earlier $1.1 billion jury verdict against the companies was thrown out. The U.S. Court of Appeals for the Federal Circuit, which specializes in patent cases, ruled against the companies' arguments because they failed to bring them up during earlier proceedings at the U.S. Patent and Trademark Office. A jury found that the companies infringed Caltech's patents, ordering Apple to pay $837.8 million and Broadcom to pay $270.2 million.
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WASHINGTON, June 26 (Reuters) - The U.S. Supreme Court on Monday declined to hear a bid by Apple Inc AAPL.O and Broadcom Inc AVGO.O to revive their challenges to Caltech data-transmission patents in a patent infringement case in which the university's earlier $1.1 billion jury verdict against the companies was thrown out. The U.S. Court of Appeals for the Federal Circuit, which specializes in patent cases, ruled against the companies' arguments because they failed to bring them up during earlier proceedings at the U.S. Patent and Trademark Office. Caltech, located in Pasadena, California, sued Cupertino-based Apple and San Jose-based Broadcom in 2016 in federal court in Los Angeles, alleging that millions of iPhones, iPads, Apple Watches and other devices using Broadcom Wi-Fi chips infringed its data-transmission patents.
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WASHINGTON, June 26 (Reuters) - The U.S. Supreme Court on Monday declined to hear a bid by Apple Inc AAPL.O and Broadcom Inc AVGO.O to revive their challenges to Caltech data-transmission patents in a patent infringement case in which the university's earlier $1.1 billion jury verdict against the companies was thrown out. The Federal Circuit also upheld the trial judge's decision to block the companies from arguing that the patents were invalid because they could have made the arguments in their petitions for USPTO review of the patents. Apple and Broadcom told the Supreme Court that the Federal Circuit misread the law, which they said only blocks arguments that could have been raised during the review itself.
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15194.0
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2023-06-26 00:00:00 UTC
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Meta launches Quest+ subscription for VR headsets
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AAPL
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https://www.nasdaq.com/articles/meta-launches-quest-subscription-for-vr-headsets
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nan
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nan
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June 26 (Reuters) - Meta Platforms META.O on Monday launched Meta Quest+, a subscription-based service for its virtual reality (VR) headsets to shape a nascent but high-investment market.
Chief Executive Mark Zuckerberg, in a broadcast channel on social media app Instagram, said the Meta Quest+ subscription will be available from Monday at $7.99 per month, or $59.99 annually, for its Quest 2, Pro and soon for Quest 3.
Apple AAPL.O has entered the market dominated by Meta, showcasing its $3,499 augmented reality headset called the Vision Pro. Still, Apple's headset is three times the cost of the priciest headset from Meta.
Meta in March had cut the prices of its headsets as its bold bets on the metaverse failed to make a big splash.
The social media company's flagship VR headset Meta Quest Pro is currently priced at $999.99, down from its launch price of $1,499.99, and Quest 2 is being sold for $299.99, according to Meta's website.
Termed as the next big thing, the adoption of virtual reality headsets has been limited to the gaming community despite the devices now having more advanced features.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri)
((Jaspreet.Singh@thomsonreuters.com; @i_jass on Twitter;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O has entered the market dominated by Meta, showcasing its $3,499 augmented reality headset called the Vision Pro. Meta in March had cut the prices of its headsets as its bold bets on the metaverse failed to make a big splash. Termed as the next big thing, the adoption of virtual reality headsets has been limited to the gaming community despite the devices now having more advanced features.
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Apple AAPL.O has entered the market dominated by Meta, showcasing its $3,499 augmented reality headset called the Vision Pro. June 26 (Reuters) - Meta Platforms META.O on Monday launched Meta Quest+, a subscription-based service for its virtual reality (VR) headsets to shape a nascent but high-investment market. The social media company's flagship VR headset Meta Quest Pro is currently priced at $999.99, down from its launch price of $1,499.99, and Quest 2 is being sold for $299.99, according to Meta's website.
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Apple AAPL.O has entered the market dominated by Meta, showcasing its $3,499 augmented reality headset called the Vision Pro. June 26 (Reuters) - Meta Platforms META.O on Monday launched Meta Quest+, a subscription-based service for its virtual reality (VR) headsets to shape a nascent but high-investment market. The social media company's flagship VR headset Meta Quest Pro is currently priced at $999.99, down from its launch price of $1,499.99, and Quest 2 is being sold for $299.99, according to Meta's website.
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Apple AAPL.O has entered the market dominated by Meta, showcasing its $3,499 augmented reality headset called the Vision Pro. June 26 (Reuters) - Meta Platforms META.O on Monday launched Meta Quest+, a subscription-based service for its virtual reality (VR) headsets to shape a nascent but high-investment market. The social media company's flagship VR headset Meta Quest Pro is currently priced at $999.99, down from its launch price of $1,499.99, and Quest 2 is being sold for $299.99, according to Meta's website.
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15195.0
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2023-06-26 00:00:00 UTC
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Should Schwab 1000 Index ETF (SCHK) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-1000-index-etf-schk-be-on-your-investing-radar-8
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nan
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nan
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Launched on 10/11/2017, the Schwab 1000 Index ETF (SCHK) 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 Charles Schwab. It has amassed assets over $2.79 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 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.70% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.48% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 24.86% of total assets under management.
Performance and Risk
SCHK seeks to match the performance of the Schwab 1000 Index before fees and expenses. The Schwab 1000 Index is a float-adjusted market capitalization weighted index that includes the 1,000 largest stocks of publicly traded companies in the United States, with size being determined by market capitalization. The index is designed to be a measure of the performance of large- and mid-cap U.S. stocks.
The ETF return is roughly 13.91% so far this year and was up about 15.89% in the last one year (as of 06/26/2023). In the past 52-week period, it has traded between $34.56 and $42.72.
The ETF has a beta of 1.02 and standard deviation of 18.74% for the trailing three-year period. With about 991 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab 1000 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, SCHK 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 $327.18 billion in assets, SPDR S&P 500 ETF has $404.94 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.
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Schwab 1000 Index ETF (SCHK): 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 6.48% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab 1000 Index ETF (SCHK): 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. Launched on 10/11/2017, the Schwab 1000 Index ETF (SCHK) 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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Click to get this free report Schwab 1000 Index ETF (SCHK): 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 6.48% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 10/11/2017, the Schwab 1000 Index ETF (SCHK) 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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Click to get this free report Schwab 1000 Index ETF (SCHK): 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 6.48% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab 1000 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 6.48% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab 1000 Index ETF (SCHK): 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. Launched on 10/11/2017, the Schwab 1000 Index ETF (SCHK) 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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15196.0
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2023-06-26 00:00:00 UTC
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Micron (MU) to Report Q3 Earnings: What's in the Offing?
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AAPL
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https://www.nasdaq.com/articles/micron-mu-to-report-q3-earnings%3A-whats-in-the-offing
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nan
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Micron Technology MU is scheduled to report third-quarter fiscal 2023 results on Jun 28.
The company projects a fiscal third-quarter adjusted loss of $1.58 (+/- 7 cents) per share. The Zacks Consensus Estimate for the bottom line stands at a loss of $1.57 per share, indicating a drastic decline from the year-ago quarter’s earnings of $2.59 per share.
Meanwhile, Micron estimates revenues of $3.70 billion (+/- $200 million). The consensus mark for revenues is pegged at $3.69 billion, suggesting a 57.3% decrease from the year-earlier period’s revenues of $8.64 billion.
The company’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being -69.9%.
Let’s see how things have shaped up before this announcement.
Micron Technology, Inc. Price and EPS Surprise
Micron Technology, Inc. price-eps-surprise | Micron Technology, Inc. Quote
Factors at Play
Micron’s overall third-quarter performance is likely to have been negatively impacted by soft consumer spending due to rising inflationary pressure and growing concerns over the global economic slowdown. Softened consumer spending has resulted in weak memory chip demand from the smartphone and personal computer end markets.
Substantial customer inventory adjustments across end markets are expected to have hurt the overall financial performance in the third quarter. MU’s customers across multiple end markets have been adjusting their DRAM and NAND memory chip purchases amid soft macroeconomic conditions.
The memory chip maker’s heavy dependence on China is a headwind due to the ongoing tit-for-tat trade spat between the United States and China. In May 2023, the Chinese government imposed restrictions on Micron for selling its products in key domestic industries on national security concerns, stating that the memory chipmaker failed to pass a cybersecurity review initiated in late March 2023. Chip sales in China make up approximately 11% of Micron’s total revenues.
Additionally, a higher mix of lower-margin NAND, coupled with low memory prices and a minimal decline in manufacturing costs, is expected to have strained margins.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Micron this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Micron currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Tyler Technologies TYL, Apple AAPL and Five9 FIVN have the right combination of elements to post an earnings beat in their upcoming releases.
Tyler is expected to report second-quarter 2023 results on Jul 26. The company has a Zacks Rank #3 and an Earnings ESP of +0.54% at present. Tyler’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 2.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TYL’s second-quarter earnings is pegged at $1.86 per share, suggesting a decline of 1.1% from the year-ago quarter’s earnings of $1.88. Tyler’s quarterly revenues are estimated to increase 4.7% year over year to $490.7 million.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +3.39%. The company is anticipated to report third-quarter fiscal 2023 results on Jul 27. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 2.7%.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.18 per share, implying a year-over-year decrease of 1.7%. It is estimated to report revenues of $81.2 billion, which suggests a decline of approximately 2.2% from the year-ago quarter.
Five9 carries a Zacks Rank #3 and has an Earnings ESP of +5.13%. The company is expected to report second-quarter 2023 results on Jul 27. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 49.9%.
The Zacks Consensus Estimate for FIVN’s second-quarter earnings is pegged at 39 cents per share, indicating a year-over-year increase of 14.7%. The consensus mark for revenues stands at $214.1 million, suggesting a year-over-year rise of 13.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Five9, Inc. (FIVN) : Free Stock Analysis Report
Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks With the Favorable Combination Per our model, Tyler Technologies TYL, Apple AAPL and Five9 FIVN have the right combination of elements to post an earnings beat in their upcoming releases. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Five9, Inc. (FIVN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report To read this article on Zacks.com click here. MU’s customers across multiple end markets have been adjusting their DRAM and NAND memory chip purchases amid soft macroeconomic conditions.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Five9, Inc. (FIVN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, Tyler Technologies TYL, Apple AAPL and Five9 FIVN have the right combination of elements to post an earnings beat in their upcoming releases. The Zacks Consensus Estimate for TYL’s second-quarter earnings is pegged at $1.86 per share, suggesting a decline of 1.1% from the year-ago quarter’s earnings of $1.88.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Five9, Inc. (FIVN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, Tyler Technologies TYL, Apple AAPL and Five9 FIVN have the right combination of elements to post an earnings beat in their upcoming releases. Tyler’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 2.8%.
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Stocks With the Favorable Combination Per our model, Tyler Technologies TYL, Apple AAPL and Five9 FIVN have the right combination of elements to post an earnings beat in their upcoming releases. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Five9, Inc. (FIVN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for FIVN’s second-quarter earnings is pegged at 39 cents per share, indicating a year-over-year increase of 14.7%.
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15197.0
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2023-06-26 00:00:00 UTC
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Forecasts show U.S. earnings decline in second quarter
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AAPL
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https://www.nasdaq.com/articles/forecasts-show-u.s.-earnings-decline-in-second-quarter-0
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, June 23 (Reuters) - Forecasts for second-quarter U.S. earnings still look gloomy after a much-better-than-feared first quarter season as the likelihood of further interest rate hikes this year creates more potential risks for companies.
Analysts expect earnings for S&P 500 companies to fall 5.6% in the second quarter from a year ago, according to IBES data from Refinitiv.
Year-over-year earnings rose 0.1% in the first quarter, based on data Friday, much better than the forecast for a 5.1% drop at the start of the reporting season. The improvement followed upbeat results from a host of big names including Microsoft Corp MSFT.O and Apple Inc AAPL.O.
Fourth-quarter 2022 earnings for S&P 500 companies declined 3.2%, so a first-quarter profit fall would have been a second straight quarterly decline, which some strategists call an earnings recession. The last one occurred when COVID-19 hit corporate results in 2020.
The second-quarter season does not get rolling until the middle of July, but it is now becoming clearer the Federal Reserve likely has not reached the end of its tightening cycle.
Fed Chair Jerome Powell said in remarks to lawmakers in Washington this week that the outlook for two more 25-basis-point rate increases are "a pretty good guess" of where the central bank is heading if the economy continues in its current direction.
Other Fed officials have supported the view.
After lifting rates by 5 percentage points since March 2022, the Fed this month took a breather to assess the effects of its actions.
Higher interest rates mean higher borrowing costs for businesses and consumers, and investors have been worried that an extended tightening cycle could push the U.S. economy into recession. Other central banks, including the Bank of England this week, have hiked rates amid worries about global inflation.
Some strategists are betting that U.S. earnings will hold up as long as employment does.
"If you have full employment, that means the consumer, while they may shift their attitudes and pull back in certain areas, are still going to be participants in the economy," said Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut.
"As long as that holds true, corporate earnings are going to generally hold up better than bears and pessimists expect," he said.
"Is it going to be particularly strong? No. But that expectations are so low, I would say the surprise is more likely on the upside than the downside."
Walmart Inc WMT.N in May raised its annual sales and profit targets thanks to resilient consumer spending.
But other recent U.S. company outlooks suggest at least some pockets of problems.
Package delivery firm FedEx FDX.N this week posted disappointing quarterly earnings and said waning global demand is pressuring its profit margins.
Also, Olive Garden parent Darden Restaurants DRI.N delivered a disappointing annual profit outlook.
Morgan Stanley this week said it expects margin pressures due to an inventory glut for Nike NKE.N, which is due to report quarterly results June 29.
"The market has been too hopeful the Fed can tame inflation, avoid a recession, and cut interest rates," Nick Raich, CEO of The Earnings Scout, an independent research firm, wrote in a note this week. "S&P 500 EPS estimates and stock prices will need to reset lower."
The S&P 500 .SPX is down about 1% this week, but remains up more than 13% for the year to date.
(Reporting by Caroline Valetkevitch; Editing by Alden Bentley and Nick Zieminski)
((caroline.valetkevitch@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 improvement followed upbeat results from a host of big names including Microsoft Corp MSFT.O and Apple Inc AAPL.O. By Caroline Valetkevitch NEW YORK, June 23 (Reuters) - Forecasts for second-quarter U.S. earnings still look gloomy after a much-better-than-feared first quarter season as the likelihood of further interest rate hikes this year creates more potential risks for companies. Fed Chair Jerome Powell said in remarks to lawmakers in Washington this week that the outlook for two more 25-basis-point rate increases are "a pretty good guess" of where the central bank is heading if the economy continues in its current direction.
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The improvement followed upbeat results from a host of big names including Microsoft Corp MSFT.O and Apple Inc AAPL.O. Other central banks, including the Bank of England this week, have hiked rates amid worries about global inflation. Package delivery firm FedEx FDX.N this week posted disappointing quarterly earnings and said waning global demand is pressuring its profit margins.
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The improvement followed upbeat results from a host of big names including Microsoft Corp MSFT.O and Apple Inc AAPL.O. By Caroline Valetkevitch NEW YORK, June 23 (Reuters) - Forecasts for second-quarter U.S. earnings still look gloomy after a much-better-than-feared first quarter season as the likelihood of further interest rate hikes this year creates more potential risks for companies. Fourth-quarter 2022 earnings for S&P 500 companies declined 3.2%, so a first-quarter profit fall would have been a second straight quarterly decline, which some strategists call an earnings recession.
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The improvement followed upbeat results from a host of big names including Microsoft Corp MSFT.O and Apple Inc AAPL.O. Analysts expect earnings for S&P 500 companies to fall 5.6% in the second quarter from a year ago, according to IBES data from Refinitiv. "As long as that holds true, corporate earnings are going to generally hold up better than bears and pessimists expect," he said.
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15198.0
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2023-06-26 00:00:00 UTC
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Nearly Half of Warren Buffett's $366 Billion Portfolio Is Invested in Only 1 Stock
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AAPL
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https://www.nasdaq.com/articles/nearly-half-of-warren-buffetts-%24366-billion-portfolio-is-invested-in-only-1-stock
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nan
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Warren Buffett's investing strategy is well-known by now. The nonagenarian investor likes businesses that have strong brand recognition, loyal customers, and of course, outstanding financials. Look through Berkshire Hathaway's equities portfolio and you'll quickly see that many of the stocks fit this description.
At the top of the list is none other than Apple (NASDAQ: AAPL), which currently represents just under half of Buffett's roughly $366 billion portfolio. The conglomerate first bought this top FAANG stock in early 2016, and it has been a truly wonderful investment since then.
Let's take a closer look at what makes Apple such a dominant enterprise and whether or not it makes for a worthy investment today.
The Apple of Buffett's eye
Apple is considered Buffett's first foray into the tech space after IBM, a sector he long avoided, maybe because he didn't fully understand certain companies or because their valuations were too excessive. But after doing his due diligence, he came to the conclusion that the Apple story is more about having a powerful consumer brand than anything else.
The company's popular products, like the iPhone, Watch, and AirPods, are in such high demand that consumers are willing to pay premium prices for them not just once but every time new versions come out. And Apple's growing Services segment, which carries a gross margin of over 70%, drives greater stickiness from consumers by keeping them engaged in its ecosystem.
Buffett even said that if you offered an Apple customer $10,000 to stop using an iPhone for good, they most likely would decline that offer. This eye-opening perspective is only possible because Apple has created such a unique combination of beautiful hardware supplemented by easy-to-use software.
I don't think there's any doubt that Apple satisfies another key investing criterion that the Oracle of Omaha looks for, too, and that's its superb financials. Apple not only generates significant amounts of net income, but it produces an insane amount of free cash flow (FCF). In the last three fiscal years (2020, 2021, and 2022), the tech giant registered a whopping $278 billion of FCF in total. That's more than the gross domestic product of countries like Portugal, New Zealand, and Peru.
This has afforded Apple the ability to return lots of capital to shareholders. The outstanding diluted share count has been reduced by 22% in the last five years, boosting the per-share earnings for existing investors. And Apple even pays dividends, doling out $7.4 billion in the first six months of fiscal 2023. This means Buffett's 5.8% stake in the company resulted in roughly $429 million of passive income for Berkshire during that time. This income stream has certainly increased over the years.
Should you buy Apple?
Since the start of 2016 through June 23 of this year, Apple's stock price has skyrocketed 304%. And it's even up 44% in 2023 alone. For a business that carries a gargantuan market capitalization of nearly $3 trillion, these types of gains are incredible. It is the largest stock out there, yet it continues to outperform.
Investors might immediately want to go out and buy shares, but it's worthwhile to consider Apple's current valuation. As of this writing, shares trade at a price-to-earnings (P/E) multiple of about 32. That's much more expensive than the stock's trailing-five-year average P/E ratio. It's important to point out that when Buffett was accumulating his first shares in Apple, the stock sold at an average P/E of 10.6 during the first three months of 2016.
Paying roughly triple the valuation that Buffett first paid for Apple seems like a risky bet even though this is obviously one of the most successful companies in the world. Apple generated almost $400 billion of revenue in 2022, so the single biggest question mark is how much growth investors can really expect going forward.
But if you're comfortable with the valuation and instead prioritize the wonderful qualitative characteristics that this business possesses, then adding Apple to your portfolio could be the right thing to do.
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Neil Patel has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At the top of the list is none other than Apple (NASDAQ: AAPL), which currently represents just under half of Buffett's roughly $366 billion portfolio. The company's popular products, like the iPhone, Watch, and AirPods, are in such high demand that consumers are willing to pay premium prices for them not just once but every time new versions come out. And Apple's growing Services segment, which carries a gross margin of over 70%, drives greater stickiness from consumers by keeping them engaged in its ecosystem.
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At the top of the list is none other than Apple (NASDAQ: AAPL), which currently represents just under half of Buffett's roughly $366 billion portfolio. 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 June 12, 2023 Neil Patel has positions in Berkshire Hathaway.
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At the top of the list is none other than Apple (NASDAQ: AAPL), which currently represents just under half of Buffett's roughly $366 billion portfolio. The Apple of Buffett's eye Apple is considered Buffett's first foray into the tech space after IBM, a sector he long avoided, maybe because he didn't fully understand certain companies or because their valuations were too excessive. It's important to point out that when Buffett was accumulating his first shares in Apple, the stock sold at an average P/E of 10.6 during the first three months of 2016.
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At the top of the list is none other than Apple (NASDAQ: AAPL), which currently represents just under half of Buffett's roughly $366 billion portfolio. Investors might immediately want to go out and buy shares, but it's worthwhile to consider Apple's current valuation. That's right -- they think these 10 stocks are even better buys.
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15199.0
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2023-06-26 00:00:00 UTC
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Should Invesco Dividend Achievers ETF (PFM) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-dividend-achievers-etf-pfm-be-on-your-investing-radar-8
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Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Invesco Dividend Achievers ETF (PFM), a passively managed exchange traded fund launched on 09/15/2005.
The fund is sponsored by Invesco. It has amassed assets over $653.32 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies 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.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
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 0.52%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.89%.
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 21.80% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.51% of total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 27.48% of total assets under management.
Performance and Risk
PFM seeks to match the performance of the NASDAQ US Broad Dividend Achievers Index before fees and expenses. The NASDAQ US Broad Dividend Achievers Index is designed to identify a diversified group of dividend-paying companies which have increased their annual dividend for 10 or more consecutive fiscal years.
The ETF has added about 3.08% so far this year and is up roughly 10.93% in the last one year (as of 06/26/2023). In the past 52-week period, it has traded between $32.34 and $38.16.
The ETF has a beta of 0.83 and standard deviation of 15.02% for the trailing three-year period, making it a medium risk choice in the space. With about 409 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dividend Achievers 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, PFM is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $49.77 billion in assets, Vanguard Value ETF has $97.12 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco Dividend Achievers ETF (PFM): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.51% of total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Click to get this free report Invesco Dividend Achievers ETF (PFM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $653.32 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.51% of total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Click to get this free report Invesco Dividend Achievers ETF (PFM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Invesco Dividend Achievers ETF (PFM), a passively managed exchange traded fund launched on 09/15/2005.
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Click to get this free report Invesco Dividend Achievers ETF (PFM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.51% of total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Alternatives Invesco Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.51% of total assets, followed by Apple Inc (AAPL) and Exxon Mobil Corp (XOM). Click to get this free report Invesco Dividend Achievers ETF (PFM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Invesco Dividend Achievers ETF (PFM), a passively managed exchange traded fund launched on 09/15/2005.
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