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15300.0
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2023-06-16 00:00:00 UTC
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The Race to Be the Next Nvidia: 3 Stocks to Consider
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AAPL
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https://www.nasdaq.com/articles/the-race-to-be-the-next-nvidia%3A-3-stocks-to-consider
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Companies engaged in the artificial intelligence race are booming, with any company touting AI technology seeing massive jumps in their stock prices. That said, the hype surrounding AI is the real deal. I believe this will continue for the near- to medium-term. Notably, Nvidia (NASDAQ:NVDA) has emerged as a major AI beneficiary, evidenced by its impressive guidance on May 24. The stock hit all-time highs, and is still moving in a positive direction. However, if you are looking for the top tech stocks to buy, you need to think beyond Nvidia.
While Nvidia is gold when it comes to the AI sector, we shouldn’t rule out the possibility of other tech companies hitting highs shortly. Investors in Nvidia are reaping substantial returns, but there’s still an opportunity for those who missed out. Nvidia is dominating the market today, holding more than 60% of the market share in its core markets. That said, it will be interesting to see other tech companies join the race with their AI applications and chips.
Investors have started to look for stocks that could be the next Nvidia. Investing in such companies at an early stage could provide life-changing returns over the long-term. With that in mind, let’s take a look at the top tech stocks to buy right now.
AMD Advanced Micro Devices $124.24
TSM Taiwan Semiconductor $105.18
ORCL Oracle $126.55
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
The biggest competitor of Nvidia ,and one of the best stocks for investors seeking AI exposure, Advanced Micro Devices (NASDAQ:AMD) comes very close to being the next Nvidia. The chipmaker is working to strengthen its position in the market and grow its market share. AMD’s chips will experience increased demand in the booming global cloud market, while AI adoption can further fuel growth in cloud computing. The company recently had its “Data Center & AI Technology Premiere” where it unveiled its AI platform and strategies.
The company has revealed a new AI chip to compete with Nvidia. The company’s MI300X chip is designed for large language models and other cutting-edge AI models. Large language models use a lot of memory given the amount of calculations and computing power required, and this chip is created to handle these needs. This chip boasts 192 GB of memory, giving it an advantage over Nvidia’s chips, which are limited to 120 GB of memory for larger AI models.
This chip can turn the tables for AMD, providing investors with massive potential upside. The company already has partnerships with some of the most notable tech giants in the industry, and if this chip is worth the hype, AMD could be the next Nvidia very soon.
AMD stock is trading around $125 per share today and is inching closer to its 52-week high of $132. The stock is up 98% year-to-date, and 91% over the past six months. AMD’s recent stock rally was driven by Nvidia’s results, but I see AMD as a potential winner in the AI race.
Taiwan Semiconductor (TSM)
Source: Sundry Photography / Shutterstock.com
One company that has the bestchance to win the AI race is Taiwan Semiconductor (NYSE:TSM). It makes chips on the advanced 5nm process and already has an impressive list of clients. TSMC, a leading-edge chip manufacturer, faces geopolitical risks tied to China, but remains a promising investment. If you are looking for stocks like Nvidia, you can benefit from the ongoing chip war by investing in TSMC. It is one of the top tech stocks to buy and hold for the long-term.
The company recently announced a new packaging facility to meet the growing demand for its chips. Unsurprisingly, TSM stock surged after this news. This facility will support 1 million 12-inch wafers annually, and could significantly expand the tech company’s capacity.
Taiwan Semiconductor is Asia’s largest company and provides chips to Apple (NASDAQ:AAPL) and Nvidia. The primary reason to bet on this company is its customers. With several high-profile companies using its chips, I believe the company’s revenue will remain consistent and we could see impressive long-term growth. Management reported strong chip demand and limited advanced packaging capacity for AI chipsets at the annual meeting. Overall, as the leading foundry in the chip world, Taiwan Semiconductor is poised to excel in the AI race, making it an attractive stock to consider.
Oracle (ORCL)
Source: Jonathan Weiss / Shutterstock.com
I’ve always been a fan of one of the top AI hardware stocks Oracle (NYSE:ORCL). So much so that I recommended this stock as a buy in March when the stock was trading at $89. If you’d followed my advice, you would be sitting on gains of 41% as the stock is trading at $126 today. Oracle was up after the company recently reported results. The company beat on the top- and bottom-lines, with its growth largely driven by cloud revenue.
Oracle reported revenue of $13.8 billion which was up 17% year-over-year. This rise was driven by the gains in application sales and cloud infrastructure. The company also reported earnings per share of $1.67, driven by infrastructure as a service revenues, which rose 76%. Overall revenue increased due to Oracle’s Gen2 Cloud, powering generative AI applications, as highlighted by the company’s management team.
Besides Nvidia, which is its key client, the company has signed up with several other major tech companies to work on their large language models. The stock is trading at an all-time high right now, but it has a long run ahead of it. Impressively, ORCL stock also pays a dividend yield of 1.3%, or a quarterly dividend of $0.40. Oracle hasn’t reduced its dividend since 2009, and has grown its distribution 14% annually over the past five years. The company’s development of generative AI services for multiple organizations is expected to drive higher revenue in the coming quarters. Oracle has all it takes to become the next Nvidia.
On the date of publication, Vandita Jadeja 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.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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The post The Race to Be the Next Nvidia: 3 Stocks to Consider 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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Taiwan Semiconductor is Asia’s largest company and provides chips to Apple (NASDAQ:AAPL) and Nvidia. While Nvidia is gold when it comes to the AI sector, we shouldn’t rule out the possibility of other tech companies hitting highs shortly. Overall, as the leading foundry in the chip world, Taiwan Semiconductor is poised to excel in the AI race, making it an attractive stock to consider.
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Taiwan Semiconductor is Asia’s largest company and provides chips to Apple (NASDAQ:AAPL) and Nvidia. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Companies engaged in the artificial intelligence race are booming, with any company touting AI technology seeing massive jumps in their stock prices. AMD Advanced Micro Devices $124.24 TSM Taiwan Semiconductor $105.18 ORCL Oracle $126.55 Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com The biggest competitor of Nvidia ,and one of the best stocks for investors seeking AI exposure, Advanced Micro Devices (NASDAQ:AMD) comes very close to being the next Nvidia.
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Taiwan Semiconductor is Asia’s largest company and provides chips to Apple (NASDAQ:AAPL) and Nvidia. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Companies engaged in the artificial intelligence race are booming, with any company touting AI technology seeing massive jumps in their stock prices. AMD Advanced Micro Devices $124.24 TSM Taiwan Semiconductor $105.18 ORCL Oracle $126.55 Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com The biggest competitor of Nvidia ,and one of the best stocks for investors seeking AI exposure, Advanced Micro Devices (NASDAQ:AMD) comes very close to being the next Nvidia.
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Taiwan Semiconductor is Asia’s largest company and provides chips to Apple (NASDAQ:AAPL) and Nvidia. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Companies engaged in the artificial intelligence race are booming, with any company touting AI technology seeing massive jumps in their stock prices. However, if you are looking for the top tech stocks to buy, you need to think beyond Nvidia.
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15301.0
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2023-06-16 00:00:00 UTC
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Warren Buffett Is Raking in $5.17 Billion in Annual Dividend Income From These 7 Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-is-raking-in-%245.17-billion-in-annual-dividend-income-from-these-7-stocks
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nan
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nan
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You can safely say that Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett knows a thing or two about investing on Wall Street. Since he became CEO in 1965, he's overseen a greater than 4,100,000% increase in Berkshire's Class A shares (BRK.A). On an annualized basis, he's doubled up the total return, including dividends, of the broad-based S&P 500 over a stretch of nearly six decades.
What's phenomenal about the Oracle of Omaha's investment strategy is that it can be duplicated by everyday investors. Buffett willingly shares his investment methodology, which often involves seeking out great businesses at fair prices and holding them for long periods of time.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But one of the top reasons Berkshire Hathaway has been such a success for investors is Buffett's love of dividend stocks. Income stocks tend to be profitable on a recurring basis, offer transparent long-term growth outlooks, and have an extensive history of vastly outperforming stocks that don't offer a dividend over multidecade timelines.
Over the next 12 months, Warren Buffett's company is on pace to collect north of $6 billion in dividend income. The kicker is that $5.17 billion of this annual dividend income will come from just seven stocks.
1. Occidental Petroleum: $959,833,478 in annual dividend income (includes preferred stock dividends)
Among the roughly four dozen securities currently held in Berkshire Hathaway's investment portfolio, it's energy stock Occidental Petroleum (NYSE: OXY) that's generating the most dividend income. Buffett's company is expected to rake in close to $160 million in common stock dividends on the nearly 222 million shares of Occidental it owns. Additionally, Berkshire owns $10 billion worth of Occidental Petroleum preferred stock that yields 8% annually, which is where the remaining $800 million in dividend income originates.
Since the start of 2022, Buffett and his investing lieutenants, Todd Combs and Ted Weschler, have been aggressively buying shares of Occidental. In all likelihood, this signals that Buffett, Combs, and Weschler expect energy commodity prices to remain above their historic average for some time. With Russia invading Ukraine and global energy majors paring back their capital expenditures for years during the pandemic, a tight global supply for oil could certainly buoy spot prices.
Despite being an integrated operator, Occidental generates the lion's share of its revenue from drilling. This means a higher spot price for crude oil will have a materially larger impact on its operating cash flow when compared to most oil stocks.
A rapid rise in the federal funds rate has substantially increased Bank of America's net-interest income. Effective Federal Funds Rate data by YCharts.
2. Bank of America: $908,909,765 in annual dividend income
Another big-time income stock in the Oracle of Omaha's portfolio is money-center giant Bank of America (NYSE: BAC). Berkshire stands to collect almost $909 million in annual dividend income from one of America's biggest banks.
What makes bank stocks such a smart investment for patient investors is their cyclical ties. Though inevitable recessions will take their toll on banks, the U.S. economy spends a considerably longer amount of time expanding than contracting. This allows companies like Bank of America to steadily grow their loans and deposits over time. Loan and deposit growth is the bread-and-butter that allows banks to generate income and return capital to shareholders.
But I'd be remiss if I didn't also note that Bank of America has a leg up on its competition in the current environment. As the most interest-sensitive of the money-center banks, the current rate-hiking cycle -- a 500-basis-point increase in a little over a year by the nation's central bank -- is a boon to BofA's net-interest income, and therefore its bottom line.
3. Apple: $878,937,967 in annual dividend income
According to Warren Buffett, tech stock Apple (NASDAQ: AAPL) is "a better business than any we own." This helps explain why Apple comprises 47.5% of Berkshire Hathaway's $349 billion of invested assets, as well as why Buffett's company is on track to collect close to $879 million in annual dividend income from the United States' largest publicly traded company by market cap.
Aside from having a well-known brand and a highly loyal customer base, what Buffett can appreciate most about Apple is its management team. CEO Tim Cook continues to lead with innovation. Apple's iPhone still dominates the domestic smartphone market, and the company's subscription services segment has rapidly expanded. Services should help minimize the sales fluctuations often seen during Apple's physical product replacement cycles.
Further, the Oracle of Omaha is a big fan of Apple's capital-return program. Since the start of 2013, Apple has repurchased in the neighborhood of $586 billion worth of its common stock.
A sizable uptick in the spot price of crude oil has allowed Chevron to pare down its net debt. WTI Crude Oil Spot Price data by YCharts.
4. Chevron: $799,741,874 in annual dividend income
Even after Buffett and his lieutenants pared down their company's stake in energy stock Chevron (NYSE: CVX) during the first quarter, this oil and gas juggernaut is still on pace to provide Berkshire Hathaway with almost $800 million in annual dividend income.
Though the investment thesis for Chevron more or less mirrors Occidental Petroleum, there are a few key differences between these two integrated energy giants. For one, Chevron generates a significant percentage of its revenue from its transmission pipelines, chemical plants, and refineries. In other words, it's better hedged than Occidental in the event crude oil prices decline.
The other differentiating factor can be seen on the balance sheets of both companies. Among global energy majors, Chevron might have the most flexible balance sheet of all. Management wisely paid down debt in 2022, which is what allowed Chevron's board of directors to authorize an up to $75 billion share repurchase program. Meanwhile, Occidental is still working its way out of a sizable net-debt situation following its acquisition of Anadarko in 2019.
Image source: Coca-Cola.
5. Coca-Cola: $736,000,000 in annual dividend income
Beverage stock Coca-Cola (NYSE: KO) is Berkshire Hathaway's longest continuous holding (35 years). It's also a company responsible for padding Warren Buffett's pockets. Coke has increased its base annual payout for 61 consecutive years, and Buffett's company is expected to collect $736 million in dividend income over the coming year.
Coca-Cola's recipe for ongoing success is a combination of geographic diversity and stellar marketing. In terms of the former, Coca-Cola has 26 separate brands generating at least $1 billion in annual sales, and it's operating in all but three countries worldwide. This allows it to generate predictable sales and cash flow in developed countries, while moving the organic growth needle in faster-growing emerging markets.
As for marketing, it certainly doesn't hurt that Coca-Cola is one of the best-known consumer staples brands on the planet. It's spending more than half of its marketing budget on digital ads catered to a younger generation of consumers. However, it has the brand ambassadors and holiday affiliations that also help it easily connect with older consumers.
6. Kraft Heinz: $521,015,709 in annual dividend income
Prepackaged foods and condiments company Kraft Heinz (NASDAQ: KHC) is another top-notch income stock for Berkshire Hathaway. Despite Kraft Heinz reducing its quarterly payout four years ago, it's still responsible for approximately $521 million in annual dividend income for Buffett's company.
Although most companies took it on the chin during the COVID-19 pandemic, Kraft Heinz found itself in the right place at the right time. With people choosing to eat out less, the company's easy-to-prepare meals and snacks flew off grocery store shelves. With the company owning well over a dozen brand-name food, snack, and condiment brands, it's also had little trouble raising the price of its products.
However, Kraft Heinz has arguably been one of Buffett's most disappointing investments. The company's balance sheet is bogged down by goodwill and a sizable net-debt position. Further, volume has declined in each of the past two quarters, which may signal that value-conscious consumers are trading down to cheaper store brands.
7. American Express: $363,865,680 in annual dividend income
Last, but certainly not least, is credit-services provider American Express (NYSE: AXP). AmEx, as it's more commonly known, has been a continuous holding by Berkshire Hathaway since 1993. Following a fairly recent payout increase, AmEx is on track to provide Buffett's company with almost $364 million in dividend income over the next year.
One reason American Express has been a winning investment is its focus on high earners. AmEx has always been able to attract individuals with high earnings and/or a high net worth. High earners are less likely to change their spending habits when the inflation rate picks up or the U.S./global economy enters a mild recession. It effectively means AmEx is better protected from credit delinquencies than some of its peers.
Additionally, American Express benefits from both sides of a transaction. As of 2021, it was the No. 3 payment processor by credit card network purchase volume in the U.S. (the No. 1 market for consumption globally). On top of collecting merchant fees, it acts as a lender and generates annual cardholder fees and/or net-interest income.
10 stocks we like better than Occidental Petroleum
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*Stock Advisor returns as of June 5, 2023
American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron and Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $878,937,967 in annual dividend income According to Warren Buffett, tech stock Apple (NASDAQ: AAPL) is "a better business than any we own." Buffett willingly shares his investment methodology, which often involves seeking out great businesses at fair prices and holding them for long periods of time. Additionally, Berkshire owns $10 billion worth of Occidental Petroleum preferred stock that yields 8% annually, which is where the remaining $800 million in dividend income originates.
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Apple: $878,937,967 in annual dividend income According to Warren Buffett, tech stock Apple (NASDAQ: AAPL) is "a better business than any we own." Occidental Petroleum: $959,833,478 in annual dividend income (includes preferred stock dividends) Among the roughly four dozen securities currently held in Berkshire Hathaway's investment portfolio, it's energy stock Occidental Petroleum (NYSE: OXY) that's generating the most dividend income. Bank of America: $908,909,765 in annual dividend income Another big-time income stock in the Oracle of Omaha's portfolio is money-center giant Bank of America (NYSE: BAC).
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Apple: $878,937,967 in annual dividend income According to Warren Buffett, tech stock Apple (NASDAQ: AAPL) is "a better business than any we own." Occidental Petroleum: $959,833,478 in annual dividend income (includes preferred stock dividends) Among the roughly four dozen securities currently held in Berkshire Hathaway's investment portfolio, it's energy stock Occidental Petroleum (NYSE: OXY) that's generating the most dividend income. This helps explain why Apple comprises 47.5% of Berkshire Hathaway's $349 billion of invested assets, as well as why Buffett's company is on track to collect close to $879 million in annual dividend income from the United States' largest publicly traded company by market cap.
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Apple: $878,937,967 in annual dividend income According to Warren Buffett, tech stock Apple (NASDAQ: AAPL) is "a better business than any we own." Bank of America: $908,909,765 in annual dividend income Another big-time income stock in the Oracle of Omaha's portfolio is money-center giant Bank of America (NYSE: BAC). Coca-Cola: $736,000,000 in annual dividend income Beverage stock Coca-Cola (NYSE: KO) is Berkshire Hathaway's longest continuous holding (35 years).
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15302.0
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2023-06-16 00:00:00 UTC
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Game On! Why Take-Two (NASDAQ:TTWO) is an Underestimated Gaming Stock
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AAPL
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https://www.nasdaq.com/articles/game-on-why-take-two-nasdaq%3Attwo-is-an-underestimated-gaming-stock
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nan
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nan
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Shares of Take-Two Interactive (NASDAQ:TTWO) have been incredibly hot this year, now up 33% year-to-date. As excitement over the company's upbeat quarter fades, investors who missed the run may have another chance to give the underestimated video game stock a second look. Indeed, the company is well on its way to returning to profitability.
With a strong quarter in the books, impressive mobile assets that will help diversify the firm away from its less-frequent blockbusters, and a Grand Theft Auto VI (GTA VI) release that's as close as ever (there were some hints at a potential 2024 launch), Take-Two stock has arguably never looked timelier. Despite the hot run, I'm staying bullish on the name ahead of what could be a huge year for the $23.2 billion game developer.
Take-Two Interactive's Latest Quarter Draws in a Crowd
Take-Two's latest quarter was decent, but the impressive guidance and clues over a GTA VI release captured the investors' hearts. The company technically missed on earnings, with fourth-quarter EPS coming in at $0.59, just below the $0.68 analyst consensus, and sales came in at a sound $1.4 billion, just ahead of the $1.31 billion to $1.36 billion guidance.
I guess you could say the quarter was mixed, but given the low bar going into the number and confident commentary from management, the sudden surge in the stock shouldn't have come as a shock.
Indeed, Take-Two has been a "sleeper" pick (or two-hit wonder) in the gaming space for quite some time, and there's no guarantee that GTA VI will be a success. That said, the company's track record of delivering high-rated hits speaks for itself. So, if a 2024 launch of the hit game is in the cards, TTWO stock may finally be ready for its much-awaited next leg higher.
Of course, it would have been nicer to hear management give some firm deadlines. Given how many video games have been delayed, though, Take-Two may be wise to minimize the time pressure on its software developers. The business of game development may entail high stress and time pressure, but Take-Two has a formula that's worked out well. In that regard, investors should continue to be patient with Take-Two as it approaches the finish line with one of the most-anticipated video games of this decade.
Take-Two Looks Like a Hot Takeover Target as VR Gaming Grows in Popularity
Apple's (NASDAQ:AAPL) Vision Pro headset reveal hogged the headlines in recent weeks, and for good reason. Virtual and augmented reality may very well be the next big medium for not just work, but play. Indeed, one can't help but notice the emphasis Apple placed on gaming at WWDC 2023. As Apple better caters to game developers, I do think studios, Take-Two included, will be more open to making the leap into virtual-reality gaming.
Undoubtedly, a fully-immersive GTA title that's VR-enabled may be one of the holy grails of spatial computing. Though such a title is still many years away, I view Take-Two as a powerful company that could help a company like Apple turn its VR or AR headset into a profound success.
As consolidation across the gaming industry continues, I'd not be surprised if Apple or some other big-tech firm with a foot in the door of spatial computing or "the Metaverse" doesn't look at Take-Two as an attractive takeover target (although regulatory hurdles could block such a deal from happening). Regardless, this doesn't change the fact that Take-Two stands out as one of the potential winners of a multi-year transition into 3D worlds.
Apple's Vision Pro could be a great next-generation gaming device if enough developers commit over the coming years. In the meantime, Apple is laying out the red carpet for the gaming crowd to bring new releases to the Mac, with a tool to help port PC games to macOS. Mac gaming is a great start before Apple jumps into the deep end with Vision Pro gaming.
Is TTWO Stock a Buy, According to Analysts?
Turning to Wall Street, TTWO stock comes in as a Strong Buy. Out of 19 analyst ratings, there are 15 Buys and four Hold recommendations. The average Take-Two stock price target is $150.74, implying upside potential of 9.9%. Analyst price targets range from a low of $120.00 per share to a high of $165.00 per share.
The Bottom Line on TTWO Stock
There are a lot of things to get excited about going into 2024. GTA VI may finally launch, and as Apple Vision Pro goes on sale, the floodgates to VR gaming could open. When big developers like Take-Two are comfortable announcing big-budget VR titles, though, remains to be seen. It could take many years.
For now, TTWO stock seems attractive for a potential GTA VI launch in a year or two. Further, its attractiveness as a takeover target also can't be ignored. At writing, the stock trades at 4.1 times price-to-sales (P/S), well below the software industry average.
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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Take-Two Looks Like a Hot Takeover Target as VR Gaming Grows in Popularity Apple's (NASDAQ:AAPL) Vision Pro headset reveal hogged the headlines in recent weeks, and for good reason. I guess you could say the quarter was mixed, but given the low bar going into the number and confident commentary from management, the sudden surge in the stock shouldn't have come as a shock. As consolidation across the gaming industry continues, I'd not be surprised if Apple or some other big-tech firm with a foot in the door of spatial computing or "the Metaverse" doesn't look at Take-Two as an attractive takeover target (although regulatory hurdles could block such a deal from happening).
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Take-Two Looks Like a Hot Takeover Target as VR Gaming Grows in Popularity Apple's (NASDAQ:AAPL) Vision Pro headset reveal hogged the headlines in recent weeks, and for good reason. Take-Two Interactive's Latest Quarter Draws in a Crowd Take-Two's latest quarter was decent, but the impressive guidance and clues over a GTA VI release captured the investors' hearts. GTA VI may finally launch, and as Apple Vision Pro goes on sale, the floodgates to VR gaming could open.
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Take-Two Looks Like a Hot Takeover Target as VR Gaming Grows in Popularity Apple's (NASDAQ:AAPL) Vision Pro headset reveal hogged the headlines in recent weeks, and for good reason. As Apple better caters to game developers, I do think studios, Take-Two included, will be more open to making the leap into virtual-reality gaming. As consolidation across the gaming industry continues, I'd not be surprised if Apple or some other big-tech firm with a foot in the door of spatial computing or "the Metaverse" doesn't look at Take-Two as an attractive takeover target (although regulatory hurdles could block such a deal from happening).
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Take-Two Looks Like a Hot Takeover Target as VR Gaming Grows in Popularity Apple's (NASDAQ:AAPL) Vision Pro headset reveal hogged the headlines in recent weeks, and for good reason. Though such a title is still many years away, I view Take-Two as a powerful company that could help a company like Apple turn its VR or AR headset into a profound success. GTA VI may finally launch, and as Apple Vision Pro goes on sale, the floodgates to VR gaming could open.
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15303.0
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2023-06-16 00:00:00 UTC
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3 Reasons Why Google Could Be The Big Tech Stock Of The Summer
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AAPL
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https://www.nasdaq.com/articles/3-reasons-why-google-could-be-the-big-tech-stock-of-the-summer
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nan
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nan
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As we’ve noted this week, shares of Apple Inc (NASDAQ: AAPL) have just returned to fresh all-time highs, while those of Meta Platforms Inc (NASDAQ: META) are also soaring this year. But they’re not the only tech titans to be giving tech investors something to cheer about. Alphabet Inc (NASDAQ: GOOGL), better known as Google, has also had a decent start to the year, and momentum is building.
Their shares have rallied almost 50% since the first week of January, and since the end of April, they’ve actually outperformed those of Apple and Meta. There’s a solid argument to be made that Google shares hold the most promise out of the three to be the summer’s top tech titan. Let’s look at 3 of the more potent reasons behind this.
Artificial Intelligence
First up is AI, the latest market buzzword that’s been on everyone’s lips since Nvidia Corp’s (NASDAQ: NVDA) earnings last month. Wall Street is going crazy for any stock that is AI related, and when it comes to Google, AI feels like a very natural next step for products like Google Search and Google Cloud. In fact, there have been developments in this direction underway since last year, but Nvidia being catapulted to market leader has forced companies like Google to accelerate their timelines aggressively.
This resulted in Google launching their AI chatbot Bard in March, which rounded out their strategy to have both AI software and AI hardware in the market. The latter has been underway for some time as Google explores ways to reduce its dependence on Nvidia’s GPUs and related software by creating its own.
This means Google could soon be fully pivoting away from actually being an Nvidia customer to both manufacturing its own AI hardware and software and commercializing it. There are risks here, to be sure, with increased R&D costs and the knock-on effect this would have on margins, just one of them, but the opportunity surely justifies it.
Strengthening Fundamentals
While AI might be what everyone is talking about this summer, the meat and potatoes of any stock are its fundamentals. In that regard, Google is red hot. Its Q1 earnings report smashed analyst expectations and delivered record revenue for the first quarter along with its highest EPS of the past three quarters.
Considering how exposed Google has been to any decelerating economic activity, we’re inclined to think it has weathered the worst of it and has come out the other side. For context, their shares endured a 45% fall from April last year through October, but the bears ran out of steam there. It’s been effectively one-way traffic since then as buyers have rewarded strengthening fundamentals and an improving outlook.
Also of note is management’s latest buyback announcement, with an additional $70 billion worth of its stock set to be repurchased. A stock buyback is one of the most explicit ways management can tell the market that they believe their stock is trading well below fair value. And in putting their money where their mouth is, they give many investors the confidence to also do the same.
Technical Setup
Last but not least, we have Google’s technical setup. Looking at its chart, we can see the current rally has been supported by a series of higher lows and higher highs, the textbook pattern you want to see when deciding if a long-term uptrend is underway. And the best news? Google stock can’t even be called overbought at its current level, with the RSI a bullish 60.
Shares have been trading above their 50-day moving average since March and their 200-day moving average since the start of April. Factor in the AI angle mentioned above, along with the strong fundamentals, and we could well be looking at a multi-month, if not multi-year, rally in its infancy.
The views and 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 we’ve noted this week, shares of Apple Inc (NASDAQ: AAPL) have just returned to fresh all-time highs, while those of Meta Platforms Inc (NASDAQ: META) are also soaring this year. Artificial Intelligence First up is AI, the latest market buzzword that’s been on everyone’s lips since Nvidia Corp’s (NASDAQ: NVDA) earnings last month. In fact, there have been developments in this direction underway since last year, but Nvidia being catapulted to market leader has forced companies like Google to accelerate their timelines aggressively.
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As we’ve noted this week, shares of Apple Inc (NASDAQ: AAPL) have just returned to fresh all-time highs, while those of Meta Platforms Inc (NASDAQ: META) are also soaring this year. But they’re not the only tech titans to be giving tech investors something to cheer about. Shares have been trading above their 50-day moving average since March and their 200-day moving average since the start of April.
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As we’ve noted this week, shares of Apple Inc (NASDAQ: AAPL) have just returned to fresh all-time highs, while those of Meta Platforms Inc (NASDAQ: META) are also soaring this year. Alphabet Inc (NASDAQ: GOOGL), better known as Google, has also had a decent start to the year, and momentum is building. Wall Street is going crazy for any stock that is AI related, and when it comes to Google, AI feels like a very natural next step for products like Google Search and Google Cloud.
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As we’ve noted this week, shares of Apple Inc (NASDAQ: AAPL) have just returned to fresh all-time highs, while those of Meta Platforms Inc (NASDAQ: META) are also soaring this year. But they’re not the only tech titans to be giving tech investors something to cheer about. This resulted in Google launching their AI chatbot Bard in March, which rounded out their strategy to have both AI software and AI hardware in the market.
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2023-06-16 00:00:00 UTC
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Is SPDR MSCI USA StrategicFactors ETF (QUS) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-spdr-msci-usa-strategicfactors-etf-qus-a-strong-etf-right-now-8
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Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the SPDR MSCI USA StrategicFactors ETF (QUS) is a smart beta exchange traded fund launched on 04/15/2015.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by State Street Global Advisors, QUS has amassed assets over $983.53 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. This particular fund seeks to match the performance of the MSCI USA Factor Mix A-Series Index before fees and expenses.
The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for QUS are 0.15%, which makes it one of the cheaper products in the space.
QUS's 12-month trailing dividend yield is 1.60%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
QUS's heaviest allocation is in the Information Technology sector, which is about 24.50% of the portfolio. Its Healthcare and Financials round out the top three.
Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META).
QUS's top 10 holdings account for about 22.14% of its total assets under management.
Performance and Risk
The ETF has gained about 11.68% so far this year and was up about 16.34% in the last one year (as of 06/16/2023). In the past 52-week period, it has traded between $101.25 and $122.33.
The ETF has a beta of 0.92 and standard deviation of 16.41% for the trailing three-year period, making it a medium risk choice in the space. With about 627 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR MSCI USA StrategicFactors ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $330.11 billion in assets, SPDR S&P 500 ETF has $417.82 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the SPDR MSCI USA StrategicFactors ETF (QUS) is a smart beta exchange traded fund launched on 04/15/2015.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the SPDR MSCI USA StrategicFactors ETF (QUS) is a smart beta exchange traded fund launched on 04/15/2015.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the SPDR MSCI USA StrategicFactors ETF (QUS) is a smart beta exchange traded fund launched on 04/15/2015.
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Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.38% of total assets, followed by Apple Inc. (AAPL) and Meta Platforms Inc. Class A (META). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the SPDR MSCI USA StrategicFactors ETF (QUS) is a smart beta exchange traded fund launched on 04/15/2015.
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2023-06-16 00:00:00 UTC
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3 Undervalued Companies That Could Reach $1 Trillion
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https://www.nasdaq.com/articles/3-undervalued-companies-that-could-reach-%241-trillion
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After its recent blowout earnings, Nvidia (NASDAQ:NVDA) was the seventh stock to join the trillion-dollar club. However, the stock is up almost 200% year-to-date and might not present value. So, what undervalued companies to invest in will likely eclipse this milestone in the future?
For starters, trillion dollar potential stocks must already be large enough. It’s easier for a large-cap stock to reach that market capitalization than a small-cap stock. After all, a $500 billion stock only needs to double, whereas a $5 billion midcap needs to be 200x.
Secondly, the stock must have solid fundamentals. More so, revenues and earnings must grow to support an increasing capitalization. Stocks with upside potential maintain a healthy EPS growth trajectory attracting investor interest over the long term.
Here are some undervalued companies to invest in. Already, these companies are mega caps meaning their total market cap exceeds $200 billion. In addition, their EPS growth rate over the next five years is over 20%. Lastly, they are undervalued based on their historical earnings multiples.
Berkshire Hathaway (BRK-A, BRK-B)
Source: sdx15 / Shutterstock.com
Given its greater than $700 billion market valuation, Berkshire Hathaway (NYSE:BRK-A,NYSE:BRK-B) is on its way to a $1 trillion market cap. This Omaha-based company is a conglomerate with diverse operating businesses ranging from financial services to utilities.
Over the decades, the founder and CEO, Warren Buffet, has garnered a reputation as one of the best investors. He has been a great risk manager and steward of capital, making timely investments that bore enormous returns. As he notes in the 2022 shareholder letter, “Our CEO will always be the Chief Risk Officer – a task it is irresponsible to delegate.”
Berkshire is in excellent financial shape. First, they have a best-in-breed investment portfolio concentrated in some of the best American businesses. Per the latest 13F filing, Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), American Express (NYSE:AXP), Coca-Cola (NYSE:KO) and Chevron (NYSE:CVX) made up over 70% of the portfolio. It was worth $328 billion as of March 31.
Then, there are diversified operations in insurance, railroads, energy and utilities. These are competitively advantaged businesses that dominate their respective industries. For instance, the auto insurance company, Geico, has the second-largest U.S. market share after State Farm. Likewise, rail operator BNSF is the largest rail company in terms of revenues in North America. These businesses generated $30.8 billion in operating earnings in fiscal year (FY) 2022.
It’s a surprise that given the strength of Berkshire, it’s yet to hit a $1 trillion valuation. One reason is that it might suffer from conglomerate discounts. Another factor could be that investors are wary of what will happen when Warren Buffet is no longer CEO.
But this is an opportunity for investors looking for stocks with upside potential. As of this writing, Berkshire has a market cap of $740 billion. Q1 2023 results showed that its equity portfolio was worth $328 billion and it had over $130 billion in cash on its balance sheet. Therefore, at current levels, you are buying the rest of the business at under 12 times trailing operating earnings.
Taiwan Semiconductor (TSM)
Source: ToyW / Shutterstock
Despite the treacherous geopolitical landscape, Taiwan Semiconductor (NYSE:TSM) is one of the best undervalued companies to invest in. Yes, the threat of a Chinese invasion of Taiwan looms large, but this might be exactly why the stock presents an opportunity. China might be unwilling to shoot itself in the foot by disrupting the semiconductor ecosystem it hugely benefits from.
In terms of fundamental performance, Taiwan Semiconductor has crushed the competition. It is a foundry – semiconductor manufacturer – with a substantial competitive advantage over peers. Over the last decade, it has dominated the chip manufacturing industry in producing leading-edge node chips.
Given its colossal technology advantage, companies such as Nvidia, Apple and Qualcomm (NASDAQ:QCOM) have increasingly outsourced their chip production to this company. Now AI is taking center stage, and TSM stock is having a resurgence. The company is experiencing a surge in AI-related orders from chip designers like Nvidia.
Analysts expect revenue growth to resume in FY2024 due to a monopoly in leading-edge node production. Competitors like Intel (NYSE:INTC) cannot manufacture leading-edge smaller node chips leaving the entire market to Taiwan Semiconductor. As my colleague David Moadel noted, TSM will ride the AI boom higher.
Currently, the market cap is approaching $500 billion. If the valuation discount with other semiconductor peers closes, it could easily reach a $1 trillion valuation. Such a scenario is reasonable since the stock trades at an inexpensive forward P/E of 17.
ASML Holding NV (ASML)
Source: Ralf Liebhold / Shutterstock
ASML Holding NV (NASDAQ:ASML) is one of the critical players in the semiconductor industry. It develops and produces advanced lithography systems used by semiconductor manufacturers deriving 62% from extreme ultraviolet (EUV) and the rest from deep ultraviolet (DUV) systems. These systems are essential for manufacturing next-generation semiconductor chips with smaller feature sizes and increased complexity.
According to Fitch, the Dutch-based company has over 90% market share in the overall lithography system market. Additionally, the company has a monopoly in EUV tools used to produce advanced 7nm, 5nm or 3nm nodes. This dominance guarantees demand, making ASML one of the top undervalued companies to invest in.
Given its monopoly, it is a candidate for the trillion dollar potential stocks list. Major semiconductor manufacturers worldwide have no other supplier for advanced tools. They rely on ASML systems to produce high-performance chips used in smartphones, data centers, autonomous vehicles and artificial intelligence.
Looking ahead, ASML is among the top semiconductor stocks with upside potential. As AI and autonomous systems adoption increases, revenues are soaring. In the first quarter, the company reported net sales of €6.7 billion, up 91% year-over-year. Management was optimistic, forecasting a 25% revenue increase in 2023. Also, backlog was approximately €39 billion, almost twice the expected sales in FY2023.
On valuation, the stock is still reasonably priced despite the massive year-to-date rally. According to Finviz, the company will grow EPS at 29.80% over the next five years. Considering this stellar forecast, the stock is a bargain at a forward P/E of 30.
On the date of publication, Charles Munyi 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.
Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.
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The post 3 Undervalued Companies That Could Reach $1 Trillion appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Per the latest 13F filing, Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), American Express (NYSE:AXP), Coca-Cola (NYSE:KO) and Chevron (NYSE:CVX) made up over 70% of the portfolio. Competitors like Intel (NYSE:INTC) cannot manufacture leading-edge smaller node chips leaving the entire market to Taiwan Semiconductor. Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing.
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Per the latest 13F filing, Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), American Express (NYSE:AXP), Coca-Cola (NYSE:KO) and Chevron (NYSE:CVX) made up over 70% of the portfolio. Berkshire Hathaway (BRK-A, BRK-B) Source: sdx15 / Shutterstock.com Given its greater than $700 billion market valuation, Berkshire Hathaway (NYSE:BRK-A,NYSE:BRK-B) is on its way to a $1 trillion market cap. Over the last decade, it has dominated the chip manufacturing industry in producing leading-edge node chips.
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Per the latest 13F filing, Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), American Express (NYSE:AXP), Coca-Cola (NYSE:KO) and Chevron (NYSE:CVX) made up over 70% of the portfolio. InvestorPlace - Stock Market News, Stock Advice & Trading Tips After its recent blowout earnings, Nvidia (NASDAQ:NVDA) was the seventh stock to join the trillion-dollar club. Berkshire Hathaway (BRK-A, BRK-B) Source: sdx15 / Shutterstock.com Given its greater than $700 billion market valuation, Berkshire Hathaway (NYSE:BRK-A,NYSE:BRK-B) is on its way to a $1 trillion market cap.
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Per the latest 13F filing, Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), American Express (NYSE:AXP), Coca-Cola (NYSE:KO) and Chevron (NYSE:CVX) made up over 70% of the portfolio. Here are some undervalued companies to invest in. As of this writing, Berkshire has a market cap of $740 billion.
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2023-06-15 00:00:00 UTC
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US STOCKS-Wall St edges up as yields slip after economic data
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https://www.nasdaq.com/articles/us-stocks-wall-st-edges-up-as-yields-slip-after-economic-data
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By Shristi Achar A and Sruthi Shankar
June 15 (Reuters) - Wall Street's main indexes inched higher on Thursday as megacap stocks rose on lower Treasury yields, lifting investor sentiment soured by Federal Reserve's hawkish comments on interest rate hikes this year.
U.S. retail sales unexpectedly rose in May as consumers spent on a range of goods including vehicles, which could help support the economy this quarter.
Another set of numbers showed initial claims for state unemployment benefits were steady at a seasonally adjusted 262,0000 for the week ended June 10. Economists polled by Reuters had forecast 249,000 claims for the latest week.
U.S. Treasury yields pulled back, lifting shares of rate-sensitive growth stocks. Apple AAPL.O, Microsoft MSFT.O and Meta Platforms META.O gained between 0.8% and 1.3%. US/
The Fed left rates unchanged at the 5%-5.25% range on Wednesday, but indicated they could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
"What has been encouraging is that the rate market has significantly reassessed the trajectory of expected interest rates but the equity market has largely ignored that and, if anything, continued to rise on the belief that the Fed is at or near the end of the rate hike cycle," said Ronald Temple, chief market strategist at Lazard.
"Yesterday's message was a bit of a splash of cold water on equity markets."
Traders see a nearly 65% chance of a 25-basis-point rate hike in July, up from around 60% a day earlier, according to the CME Fedwatch tool.
Energy stocks .SPNY led gains among the 11 major S&P 500 sectors, up 1.4%, tracking higher crude prices. O/R
At 10:06 a.m. ET, the Dow Jones Industrial Average .DJI was up 188.05 points, or 0.55%, at 34,167.38, the S&P 500 .SPX was up 16.85 points, or 0.39%, at 4,389.44, and the Nasdaq Composite .IXIC was up 25.76 points, or 0.19%, at 13,652.23.
Kroger CoKR.N dropped 3.9% after the big-box retailer missed first-quarter revenue estimates.
Kohls Corp KSS.N added 3.1% after TD Cowen upgraded the department store operator to "outperform" from "market perform".
U.S.-listed shares of Chinese companies including Alibaba Group BABA.N and JD.com JD.O rose almost 3% after the People's Bank of China cut the borrowing cost for its medium-term policy loans for the first time in 10 months.
Advancing issues outnumbered decliners by a 1.90-to-1 ratio on the NYSE and a 1.46-to-1 ratio on the Nasdaq.
The S&P index recorded 20 new 52-week highs and no new low, while the Nasdaq recorded 32 new highs and 38 new lows.
(Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@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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Apple AAPL.O, Microsoft MSFT.O and Meta Platforms META.O gained between 0.8% and 1.3%. By Shristi Achar A and Sruthi Shankar June 15 (Reuters) - Wall Street's main indexes inched higher on Thursday as megacap stocks rose on lower Treasury yields, lifting investor sentiment soured by Federal Reserve's hawkish comments on interest rate hikes this year. US/ The Fed left rates unchanged at the 5%-5.25% range on Wednesday, but indicated they could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
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Apple AAPL.O, Microsoft MSFT.O and Meta Platforms META.O gained between 0.8% and 1.3%. By Shristi Achar A and Sruthi Shankar June 15 (Reuters) - Wall Street's main indexes inched higher on Thursday as megacap stocks rose on lower Treasury yields, lifting investor sentiment soured by Federal Reserve's hawkish comments on interest rate hikes this year. Another set of numbers showed initial claims for state unemployment benefits were steady at a seasonally adjusted 262,0000 for the week ended June 10.
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Apple AAPL.O, Microsoft MSFT.O and Meta Platforms META.O gained between 0.8% and 1.3%. By Shristi Achar A and Sruthi Shankar June 15 (Reuters) - Wall Street's main indexes inched higher on Thursday as megacap stocks rose on lower Treasury yields, lifting investor sentiment soured by Federal Reserve's hawkish comments on interest rate hikes this year. US/ The Fed left rates unchanged at the 5%-5.25% range on Wednesday, but indicated they could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
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Apple AAPL.O, Microsoft MSFT.O and Meta Platforms META.O gained between 0.8% and 1.3%. By Shristi Achar A and Sruthi Shankar June 15 (Reuters) - Wall Street's main indexes inched higher on Thursday as megacap stocks rose on lower Treasury yields, lifting investor sentiment soured by Federal Reserve's hawkish comments on interest rate hikes this year. US/ The Fed left rates unchanged at the 5%-5.25% range on Wednesday, but indicated they could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
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2023-06-15 00:00:00 UTC
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US STOCKS-Wall Street rallies as yields slip after economic data
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https://www.nasdaq.com/articles/us-stocks-wall-street-rallies-as-yields-slip-after-economic-data
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By Shristi Achar A and Sruthi Shankar
June 15 (Reuters) - The main U.S. stock indexes touched multi-month highs on Thursday as Treasury yields slid after a slew of economic data pointed to easing price pressures, offsetting concerns about the Federal Reserve sticking to a hawkish monetary policy.
Data showed U.S. retail sales unexpectedly rose in May as consumers spent on a range of goods including vehicles. Another data set showed jobless claims were unchanged at a seasonally adjusted 262,0000 for the week ended June 10, but were above economists' forecast of 249,000 claims.
Additionally, import prices fell in May and the annual decrease was the sharpest in three years.
U.S. Treasury yields pulled back, lifting shares of rate-sensitive growth stocks. Apple AAPL.O, Microsoft MSFT.O and Meta Platforms META.O gained between 0.7% and 2.6%. US/
"At this point there is a great deal of money on the sidelines of people who'd been scared of recession, and as the worries go away people are returning to equities," David Russell, vice president of Market Intelligence at TradeStation, said.
"My sense is the market has gone through a more structural bullish change."
The Fed left rates unchanged at the 5%-5.25% range on Wednesday, but indicated they could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
Traders see a 69% chance of a 25-basis point rate hike in July, according to the CME Fedwatch tool.
Dow component UnitedHealth UNH.N rebounded from its losses in the previous session and was up 2.9%.
Energy stocks .SPNY led gains among the 11 major S&P 500 sectors, up 1.4%, as oil prices rallied over 2%. O/R
The S&P 500 and Nasdaq hit fresh 14-month highs, while the Dow touched a six-month peak during the session, underpinned by signs of economic resilience, a better-than-expected earnings season and bets that interest rates are near their peak.
At 12:32 p.m. ET, the Dow Jones Industrial Average .DJI was up 382.88 points, or 1.13%, at 34,362.21, the S&P 500 .SPX was up 36.22 points, or 0.83%, at 4,408.81, and the Nasdaq Composite .IXIC was up 83.39 points, or 0.61%, at 13,709.87.
Kroger CoKR.N dropped 4.1% after the big-box retailer missed first-quarter revenue estimates.
Kohl's Corp KSS.N rose 1% after TD Cowen upgraded the department store operator to "outperform" from "market perform".
U.S.-listed shares of Chinese companies Alibaba Group BABA.N and JD.com JD.O rose 2.7% and 3.2%, respectively, after the People's Bank of China cut the borrowing cost for its medium-term policy loans for the first time in 10 months.
Advancing issues outnumbered decliners for a 2.26-to-1 ratio on the NYSE and a 1.51-to-1 ratio on the Nasdaq.
The S&P index recorded 34 new 52-week highs and no new low, while the Nasdaq recorded 55 new highs and 58 new lows.
(Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru; Editing by Vinay Dwivedi and Shounak Dasgupta)
((Shristi.AcharA@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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Apple AAPL.O, Microsoft MSFT.O and Meta Platforms META.O gained between 0.7% and 2.6%. By Shristi Achar A and Sruthi Shankar June 15 (Reuters) - The main U.S. stock indexes touched multi-month highs on Thursday as Treasury yields slid after a slew of economic data pointed to easing price pressures, offsetting concerns about the Federal Reserve sticking to a hawkish monetary policy. The Fed left rates unchanged at the 5%-5.25% range on Wednesday, but indicated they could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
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Apple AAPL.O, Microsoft MSFT.O and Meta Platforms META.O gained between 0.7% and 2.6%. By Shristi Achar A and Sruthi Shankar June 15 (Reuters) - The main U.S. stock indexes touched multi-month highs on Thursday as Treasury yields slid after a slew of economic data pointed to easing price pressures, offsetting concerns about the Federal Reserve sticking to a hawkish monetary policy. Data showed U.S. retail sales unexpectedly rose in May as consumers spent on a range of goods including vehicles.
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Apple AAPL.O, Microsoft MSFT.O and Meta Platforms META.O gained between 0.7% and 2.6%. By Shristi Achar A and Sruthi Shankar June 15 (Reuters) - The main U.S. stock indexes touched multi-month highs on Thursday as Treasury yields slid after a slew of economic data pointed to easing price pressures, offsetting concerns about the Federal Reserve sticking to a hawkish monetary policy. O/R The S&P 500 and Nasdaq hit fresh 14-month highs, while the Dow touched a six-month peak during the session, underpinned by signs of economic resilience, a better-than-expected earnings season and bets that interest rates are near their peak.
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Apple AAPL.O, Microsoft MSFT.O and Meta Platforms META.O gained between 0.7% and 2.6%. By Shristi Achar A and Sruthi Shankar June 15 (Reuters) - The main U.S. stock indexes touched multi-month highs on Thursday as Treasury yields slid after a slew of economic data pointed to easing price pressures, offsetting concerns about the Federal Reserve sticking to a hawkish monetary policy. Data showed U.S. retail sales unexpectedly rose in May as consumers spent on a range of goods including vehicles.
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15308.0
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2023-06-15 00:00:00 UTC
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Telecom Stocks Face Uncertainty as Amazon Targets Wireless Scene
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AAPL
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https://www.nasdaq.com/articles/telecom-stocks-face-uncertainty-as-amazon-targets-wireless-scene
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nan
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nan
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The U.S. telecom stocks fell under pressure earlier this month, thanks in part to Amazon's (NASDAQ:AMZN) potential move to bring its disruptive impact to the wireless scene. Indeed, the most disruptive name in mega-cap tech is back at it, with the likes of Verizon (NYSE:VZ) and T-Mobile (NASDAQ:TMUS) that appear to have fallen within Amazon's crosshairs.
According to a Bloomberg report, the e-commerce and cloud behemoth is reportedly working on adding wireless services at a reduced or complimentary perk for Prime members. Undoubtedly, including such services could act as another heavy weight on the shoulders of the already-ailing telecom companies while taking Prime subscription growth to the next level.
Prime has already been one of the best value subscriptions for Amazon's avid users, and the perks seem to just keep piling up! Mobile connectivity could be the biggest perk yet, even if users need to pay a small nominal fee (around $10/month) to get it.
Whether Amazon's foray into wireless upends the industry remains to be seen. Indeed, Amazon spokesperson Brad Mattinger denied his firm is negotiating with wireless carriers to bring the service to Prime.
New Tech Could Cause the "Commoditization of Data" to Accelerate
The Amazon wireless news seems to have really caused investors to sour on all things telecom. This raises the question -- are wireless services a mere commodity that any tech-driven firm can offer?
As tech improves and the cost of data becomes cheaper, I do think the answer gravitates toward "yes." It's not just mega-cap tech titans that could devalue the cost of various telecom services. Satellite connectivity has advanced considerably in recent years. With Elon Musk's Starlink offering internet coverage via satellites in space, the so-called "space race" could take on a whole new meaning, and traditional telecom companies with tons invested in infrastructure could be the ones to be left behind.
Indeed, it's too early in the game to conclude that telecom carriers are bound to falter in this new tech-driven era. Regardless, I do believe it's a good idea for companies like Verizon or T-Mobile to consider spending more time and money thinking about how the Internet will be delivered in the distant future. Perhaps that future isn't so distant if you've had a chance to test out Starlink's impressive low-latency Internet!
The Wide Moat Protecting the Telecoms Could Erode Quickly From Here
It's not so easy to start up your own telecom company. Considerable infrastructure costs have allowed many telecom firms to pay very generous dividends as wide economic moats protected cash flows from technological disruption. However, that era may be coming to an end if companies like Starlink look to change how and where we get our data. Further, wireless services may be viewed as just another service for the mega-cap tech companies to add to their arsenals to further bolster their service revenues.
Indeed, it certainly seems like mobile data could be the new streaming through the eyes of companies like Amazon or Apple (NASDAQ:AAPL), a firm that brought satellite internet connectivity via its Emergency SOS feature (which allows the newest version of iPhones to send emergency messages via communication satellites when there is no cell signal). While satellite internet is definitely novel, I'm not so sure shareholders of traditional telecom companies need to hit the SOS button quite yet.
Satellite connectivity could be the future, but it's still in the early innings. Further, there are challenges that could prevent Amazon from bringing telecom services to Prime in the nearer term. The company needs to ink a deal with existing carriers, which could be no easy task, especially if carriers recognize what it could mean to do a deal with Amazon. Call it "a deal with the devil," if you will.
The American telecom scene is competitive, but it could take many years before satellites and Prime perks drive down the price of data at an accelerated rate. As spatial computing (think VR and AR) become more commonplace, demand for fast, low-latency data could surge, and that's a good thing for the telecom scene as a whole.
When it comes to Verizon stock, shares have arguably priced in the worst. The stock is coming off a fresh multi-year low at $34 and change. Yes, there are headwinds, potentially secular ones. But the ~7.0 times trailing price-to-earnings multiple just seems to factor in none of the positives and all of the negatives.
How Do Analysts View These Stocks?
Using TipRanks' comparison tool pictured below, we can see that AMZN and TMUS are rated as Strong Buys on Wall Street, while VZ stock sports a Moderate Buy rating. TMUS has the highest upside potential, according to analysts, with 35.1% expected in the next 12 months. VZ and AMZN have upside potential of 25.6% and 8.8%, respectively.
The Takeaway
It's a worrying time to be a telecom investor. Nevertheless, though the future is uncertain, I think most of the fear is already baked into telecom shares at this juncture. Satellite connectivity and Prime wireless are interesting but may be a long way off from becoming mainstream. In that regard, the telecoms still look more than investable as they sag on recent woes.
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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Indeed, it certainly seems like mobile data could be the new streaming through the eyes of companies like Amazon or Apple (NASDAQ:AAPL), a firm that brought satellite internet connectivity via its Emergency SOS feature (which allows the newest version of iPhones to send emergency messages via communication satellites when there is no cell signal). The U.S. telecom stocks fell under pressure earlier this month, thanks in part to Amazon's (NASDAQ:AMZN) potential move to bring its disruptive impact to the wireless scene. Undoubtedly, including such services could act as another heavy weight on the shoulders of the already-ailing telecom companies while taking Prime subscription growth to the next level.
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Indeed, it certainly seems like mobile data could be the new streaming through the eyes of companies like Amazon or Apple (NASDAQ:AAPL), a firm that brought satellite internet connectivity via its Emergency SOS feature (which allows the newest version of iPhones to send emergency messages via communication satellites when there is no cell signal). The U.S. telecom stocks fell under pressure earlier this month, thanks in part to Amazon's (NASDAQ:AMZN) potential move to bring its disruptive impact to the wireless scene. The American telecom scene is competitive, but it could take many years before satellites and Prime perks drive down the price of data at an accelerated rate.
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Indeed, it certainly seems like mobile data could be the new streaming through the eyes of companies like Amazon or Apple (NASDAQ:AAPL), a firm that brought satellite internet connectivity via its Emergency SOS feature (which allows the newest version of iPhones to send emergency messages via communication satellites when there is no cell signal). The U.S. telecom stocks fell under pressure earlier this month, thanks in part to Amazon's (NASDAQ:AMZN) potential move to bring its disruptive impact to the wireless scene. Further, wireless services may be viewed as just another service for the mega-cap tech companies to add to their arsenals to further bolster their service revenues.
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Indeed, it certainly seems like mobile data could be the new streaming through the eyes of companies like Amazon or Apple (NASDAQ:AAPL), a firm that brought satellite internet connectivity via its Emergency SOS feature (which allows the newest version of iPhones to send emergency messages via communication satellites when there is no cell signal). Satellite connectivity has advanced considerably in recent years. Further, wireless services may be viewed as just another service for the mega-cap tech companies to add to their arsenals to further bolster their service revenues.
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15309.0
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2023-06-15 00:00:00 UTC
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Future Mobility ETFs: Under the Hood
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AAPL
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https://www.nasdaq.com/articles/future-mobility-etfs%3A-under-the-hood
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nan
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nan
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Over the past few months, I have written many research notes on future mobility (which includes both electric vehicles and autonomous vehicles — there is a difference). One of the biggest issues that I’ve seen is the divergence between the newer, emerging EV stocks (which have just started production) and the legacy automakers (which have been contributing to the majority of EV growth, along with Tesla). But what does that mean for electric vehicle ETFs? ETFs usually track indexes with relatively conservative methodologies relative to minimum market cap restrictions and trading volume. And so, many of these newer, emerging stocks are not yet included. Instead, these ETFs hold legacy automakers. They also hold a large allocation to technology stocks like semiconductors, which play an integral role in future mobility. This note looks at what is inside future mobility ETFs, including sectors, industries, geographies, and specific stocks.
Future mobility ETFs are heavily weighted toward consumer discretionary and information technology sectors.
At this point, there are no longer any traditional automobile ETFs. CARZ, for example, was previously the First Trust NASDAQ Global Auto Index Fund but changed its name and methodology to focus on electric and autonomous vehicles in 2022. But for future mobility ETFs, auto stocks — which are part of the consumer discretionary sector — are only about 1/5 of the holdings, on average. Out of the eight ETFs listed, four have almost twice as much weight in semiconductor stocks compared to auto stocks. Two have only slightly fewer semiconductor stocks than auto stocks. Only one ETF has zero semiconductor stocks and focuses more closely on auto and auto components. Semiconductor stocks and related tech stocks are also in broader technology indexes and many other thematic ETFs. They are also significant players in the early stages of future mobility. As more vehicles are produced and smaller EV companies gain market cap, the ratio of auto versus semiconductor may reverse.
Most future mobility ETFs are global, holding stocks from China, Japan, South Korea, Germany, and others.
Future mobility ETFs are global, but many have large allocations to U.S. stocks. U.S. holdings in future mobility ETFs include large-cap companies like NVIDIA (NVDA), Tesla (TSLA), Apple (AAPL), Alphabet (GOOGL), and Intel (INTC). Six out of eight of the ETFs have NVIDIA in their top ten holdings — usually as the very top holding. While some legacy auto companies are from the U.S., like Ford (F) and General Motors (GM), many are international stocks, like Toyota (7203 JP) and Honda (7267 JP) from Japan and Volkswagen (VOW3 GR) from Germany. Many of the EV-focused companies that are large enough to be included in an ETF are Chinese stocks like Li Auto (LI), Nio (NIO), and Xpeng (XPEV).
Bottom Line:
Future mobility ETFs reflect the early stages of the future mobility industry. Most of the focus is currently on growing the underlying technology. Vehicle production should significantly increase over the next few years, which may eventually change the constituent weightings. Few pure-play future mobility stocks are mostly newer, emerging small-cap stocks. A more conservative investor may want to invest in the future mobility theme through an ETF rather than stock-picking. ETFs can evolve along with the industry.
For more news, information, and strategy, visit the ETF Building Blocks 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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U.S. holdings in future mobility ETFs include large-cap companies like NVIDIA (NVDA), Tesla (TSLA), Apple (AAPL), Alphabet (GOOGL), and Intel (INTC). CARZ, for example, was previously the First Trust NASDAQ Global Auto Index Fund but changed its name and methodology to focus on electric and autonomous vehicles in 2022. As more vehicles are produced and smaller EV companies gain market cap, the ratio of auto versus semiconductor may reverse.
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U.S. holdings in future mobility ETFs include large-cap companies like NVIDIA (NVDA), Tesla (TSLA), Apple (AAPL), Alphabet (GOOGL), and Intel (INTC). Future mobility ETFs are heavily weighted toward consumer discretionary and information technology sectors. CARZ, for example, was previously the First Trust NASDAQ Global Auto Index Fund but changed its name and methodology to focus on electric and autonomous vehicles in 2022.
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U.S. holdings in future mobility ETFs include large-cap companies like NVIDIA (NVDA), Tesla (TSLA), Apple (AAPL), Alphabet (GOOGL), and Intel (INTC). But for future mobility ETFs, auto stocks — which are part of the consumer discretionary sector — are only about 1/5 of the holdings, on average. Out of the eight ETFs listed, four have almost twice as much weight in semiconductor stocks compared to auto stocks.
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U.S. holdings in future mobility ETFs include large-cap companies like NVIDIA (NVDA), Tesla (TSLA), Apple (AAPL), Alphabet (GOOGL), and Intel (INTC). This note looks at what is inside future mobility ETFs, including sectors, industries, geographies, and specific stocks. CARZ, for example, was previously the First Trust NASDAQ Global Auto Index Fund but changed its name and methodology to focus on electric and autonomous vehicles in 2022.
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15310.0
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2023-06-15 00:00:00 UTC
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S&P 500 leaps to highest close in 14 months; traders bet US rates near peak
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AAPL
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https://www.nasdaq.com/articles/sp-500-leaps-to-highest-close-in-14-months-traders-bet-us-rates-near-peak
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nan
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nan
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By Noel Randewich and Shristi Achar A
June 15 (Reuters) - The S&P 500 and Nasdaq surged on Thursday to close at their highest in 14 months, as investors cheered economic data that fueled bets that the U.S. Federal Reserve is nearing the end of its aggressive interest-rate hike campaign.
Treasury yields slid after a slew of economic data pointed to easing inflation, helping offset worries about future rate hikes and fueling record highs for Microsoft MSFT.O and Apple AAPL.O.
Data showed U.S. retail sales unexpectedly rose in May as consumers spent on a range of goods including vehicles. Another data set showed jobless claims were unchanged at a seasonally adjusted 262,0000 for the week ended June 10, but were above economists' forecast of 249,000 claims.
Additionally, import prices fell in May and the annual decrease was the sharpest in three years. That followed a report on Tuesday showing April headline inflation increased by less than expected.
The latest wave of data came after Fed left rates unchanged at the 5%-5.25% range on Wednesday and indicated it may hike by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
"Due to softer inflation data earlier this week and resilient economic data after the Fed meeting, the market is rallying and yields are falling because investors don't believe the Fed is as hawkish as they presented," said Ross Mayfield, an investment strategy analyst at Baird.
"The market doesn't believe they have two more hikes in the chamber."
Traders see a 67% chance of a 25-basis point rate hike in July, followed by a potential rate cut by December, according to the CME Fedwatch tool.
Thursday's gains were broad and included industrials and materials, viewed as sensitive to swings in the health of the economy.
U.S. Treasury yields pulled back, lifting shares of rate-sensitive growth stocks, including Meta Platforms META.O and Alphabet GOOGL.O. US/
"There is a great deal of money on the sidelines of people who'd been scared of recession, and as the worries go away people are returning to equities," said David Russell, vice president of Market Intelligence at TradeStation.
So far in 2023, the S&P 500 is up about 15% and the Nasdaq has climbed about 32%, fueled by signs of economic resilience, a better-than-expected earnings season and bets that interest rates are near their peak.
According to preliminary data, the S&P 500 .SPX gained 53.67 points, or 1.23%, to end at 4,426.26 points, while the Nasdaq Composite .IXIC gained 156.34 points, or 1.15%, to 13,782.82. The Dow Jones Industrial Average .DJI rose 430.31 points, or 1.27%, to 34,415.46.
Kroger CoKR.Ndropped after the big-box retailer missed first-quarter revenue estimates.
Kohl's Corp > rose after TD Cowen upgraded the department store operator to "outperform" from "market perform".
U.S.-listed shares of Chinese companies Alibaba Group BABA.N and JD.com > gained after the People's Bank of China cut the borrowing cost for its medium-term policy loans for the first time in 10 months.
S&P 500 components so far in 2023 https://tmsnrt.rs/3qKEPIp
(Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru and by Noel Randewich in Oakland, Calif.; Editing by Vinay Dwivedi, Shounak Dasgupta and 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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Treasury yields slid after a slew of economic data pointed to easing inflation, helping offset worries about future rate hikes and fueling record highs for Microsoft MSFT.O and Apple AAPL.O. By Noel Randewich and Shristi Achar A June 15 (Reuters) - The S&P 500 and Nasdaq surged on Thursday to close at their highest in 14 months, as investors cheered economic data that fueled bets that the U.S. Federal Reserve is nearing the end of its aggressive interest-rate hike campaign. The latest wave of data came after Fed left rates unchanged at the 5%-5.25% range on Wednesday and indicated it may hike by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
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Treasury yields slid after a slew of economic data pointed to easing inflation, helping offset worries about future rate hikes and fueling record highs for Microsoft MSFT.O and Apple AAPL.O. By Noel Randewich and Shristi Achar A June 15 (Reuters) - The S&P 500 and Nasdaq surged on Thursday to close at their highest in 14 months, as investors cheered economic data that fueled bets that the U.S. Federal Reserve is nearing the end of its aggressive interest-rate hike campaign. "Due to softer inflation data earlier this week and resilient economic data after the Fed meeting, the market is rallying and yields are falling because investors don't believe the Fed is as hawkish as they presented," said Ross Mayfield, an investment strategy analyst at Baird.
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Treasury yields slid after a slew of economic data pointed to easing inflation, helping offset worries about future rate hikes and fueling record highs for Microsoft MSFT.O and Apple AAPL.O. The latest wave of data came after Fed left rates unchanged at the 5%-5.25% range on Wednesday and indicated it may hike by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient. "Due to softer inflation data earlier this week and resilient economic data after the Fed meeting, the market is rallying and yields are falling because investors don't believe the Fed is as hawkish as they presented," said Ross Mayfield, an investment strategy analyst at Baird.
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Treasury yields slid after a slew of economic data pointed to easing inflation, helping offset worries about future rate hikes and fueling record highs for Microsoft MSFT.O and Apple AAPL.O. By Noel Randewich and Shristi Achar A June 15 (Reuters) - The S&P 500 and Nasdaq surged on Thursday to close at their highest in 14 months, as investors cheered economic data that fueled bets that the U.S. Federal Reserve is nearing the end of its aggressive interest-rate hike campaign. "Due to softer inflation data earlier this week and resilient economic data after the Fed meeting, the market is rallying and yields are falling because investors don't believe the Fed is as hawkish as they presented," said Ross Mayfield, an investment strategy analyst at Baird.
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15311.0
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2023-06-15 00:00:00 UTC
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Chinese e-commerce giants entice cautious consumers with steep mid-year discounts
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AAPL
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https://www.nasdaq.com/articles/chinese-e-commerce-giants-entice-cautious-consumers-with-steep-mid-year-discounts
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nan
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nan
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By Casey Hall and Sophie Yu
SHANGHAI, June 16 (Reuters) - China's e-commerce platforms are competing fiercely in the country's first major shopping festival after the pandemic, offering steep discounts to entice frugal consumers in more worrying signs for an economy struggling to build momentum.
The 618 festival, named after the founding date of JD.com 9618.HK but embraced by all platforms and running from late May until June 18, is a key test of household consumption appetite, vital to bring China's growth on a sounder footing.
This year, JD.com, Tmall, Pinduoduo PDD.O and others are investing billions of yuan in subsidies and incentives to keep gross sales growing, in what analysts interpret as subdued confidence among the platforms and shoppers.
This bodes ill for China's post-pandemic recovery, which is already losing steam. Retail sales growth in May slowed from the previous month, missing forecasts.
In 2022 China's online retail sales amounted to 13.8 trillion yuan ($1.93 trillion), according to Ministry of Commerce data. Official data also underscored the importance of the broader retail sector, which had overall sales of 44 trillion last year, nearly a third of the country's annual economic output.
"There's all these massive incentives between platforms to fight for market share during the event, which has spoiled everyone rotten," said Josh Gardner, CEO of Kungfu Data, which operates online stores for brands including G-Star Raw and Moschino.
"Everyone's making excuses but at the end of the day, it's a super-soft retail market."
JD.com launched a "10 billion in subsidies" campaign in March. The company said those would take various forms, including advertising discounts for merchants, but did not disclose further details such as the exact size of subsidies offered during the 618 event.
Trudy Dai, group CEO of Taobao Tmall Commerce, the China e-commerce arm of Alibaba's company, said a "historically huge investment" would be made to acquire customers during 618.
On Tmall, shoppers get an automatic 30 yuan discount for every 200 yuan spent, or 50 yuan back for every 300.
Pinduoduo distributed 5 billion yuan ($697 million) in coupons in the May 30-June 3 pre-sales period, state media reported. It did not respond to a request for comment.
"The fact that all big e-commerce players are focusing their message around discounts really shows the consumer is more conscious about spending money," said Jason Yu, greater China managing director of market research firm Kantar Worldpanel.
Yu and other analysts predict daily necessities and skincare would outperform other product categories this 618 as consumers, worried about the job market, their future incomes and the value of their flat, hold tight to their wallets.
"I bought cat litter, cat food, and some Oolong tea for my husband, but these are things I buy routinely. This 618 I will spend the least money out of any year," said 38-year-old Iris Zhang, who works for an electronics firm in Beijing.
LUXURY ON SALE
Luxury brands, which normally avoid associating themselves with sales periods, are joining the discount race this year as they need to clear inventory, market researchers say.
Analytics firm Re-Hub said brands like Balenciaga and Burberry BRBY.L have offered unusually deep discounts from the start of the sale period, rather than incrementally increasing discounts throughout the festival.
Apple AAPL.O, struggling to retain market share in China, hosted its first ever livestream shopping event on Tmall for 618, offering rare and temporary discounts on several products.
Burberry, Balenciaga and Apple did not reply to Reuters requests for comment.
Last year, JD.com posted 10% annual growth in total 618 sales, its slowest ever. Other platforms do not routinely publish such figures.
Some market watchers say JD.com may also stop releasing its sales tally after Alibaba Group did not disclose the figures for the Nov. 2022 Singles Day shopping festival.
Jefferies analysts estimate "single digits" growth this year for JD.com and other platforms, while those at Citi estimate JD.com's sales will grow 2-5%, citing cautious consumers and "intensified competition" among platforms and brands.
Gardner of Kungfu Data said the net result of a race for discounts will be negative.
"The platforms have just set themselves up for a problem," he said. "It just sucks the life out of sales for the next three or four months."
($1 = 7.1739 yuan)
(Reporting by Casey Hall and Sophie Yu; Editing by Marius Zaharia & Shri Navaratnam)
((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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Apple AAPL.O, struggling to retain market share in China, hosted its first ever livestream shopping event on Tmall for 618, offering rare and temporary discounts on several products. By Casey Hall and Sophie Yu SHANGHAI, June 16 (Reuters) - China's e-commerce platforms are competing fiercely in the country's first major shopping festival after the pandemic, offering steep discounts to entice frugal consumers in more worrying signs for an economy struggling to build momentum. "There's all these massive incentives between platforms to fight for market share during the event, which has spoiled everyone rotten," said Josh Gardner, CEO of Kungfu Data, which operates online stores for brands including G-Star Raw and Moschino.
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Apple AAPL.O, struggling to retain market share in China, hosted its first ever livestream shopping event on Tmall for 618, offering rare and temporary discounts on several products. By Casey Hall and Sophie Yu SHANGHAI, June 16 (Reuters) - China's e-commerce platforms are competing fiercely in the country's first major shopping festival after the pandemic, offering steep discounts to entice frugal consumers in more worrying signs for an economy struggling to build momentum. This year, JD.com, Tmall, Pinduoduo PDD.O and others are investing billions of yuan in subsidies and incentives to keep gross sales growing, in what analysts interpret as subdued confidence among the platforms and shoppers.
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Apple AAPL.O, struggling to retain market share in China, hosted its first ever livestream shopping event on Tmall for 618, offering rare and temporary discounts on several products. By Casey Hall and Sophie Yu SHANGHAI, June 16 (Reuters) - China's e-commerce platforms are competing fiercely in the country's first major shopping festival after the pandemic, offering steep discounts to entice frugal consumers in more worrying signs for an economy struggling to build momentum. This year, JD.com, Tmall, Pinduoduo PDD.O and others are investing billions of yuan in subsidies and incentives to keep gross sales growing, in what analysts interpret as subdued confidence among the platforms and shoppers.
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Apple AAPL.O, struggling to retain market share in China, hosted its first ever livestream shopping event on Tmall for 618, offering rare and temporary discounts on several products. This year, JD.com, Tmall, Pinduoduo PDD.O and others are investing billions of yuan in subsidies and incentives to keep gross sales growing, in what analysts interpret as subdued confidence among the platforms and shoppers. Some market watchers say JD.com may also stop releasing its sales tally after Alibaba Group did not disclose the figures for the Nov. 2022 Singles Day shopping festival.
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15312.0
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2023-06-15 00:00:00 UTC
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Microsoft notches record high valuation of nearly $2.6 trillion
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AAPL
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https://www.nasdaq.com/articles/microsoft-notches-record-high-valuation-of-nearly-%242.6-trillion
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nan
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nan
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By Chibuike Oguh
NEW YORK, June 15 (Reuters) - Microsoft Corp MSFT.O shares rose to a new record high close on Thursday as market optimism about the prospects of artificial intelligence (AI) has helped buoy the technology giant to a record market capitalization of $2.59 trillion.
Microsoft is seen as a leader in the adoption of AI technology in the software industry owing to its huge investment in OpenAI, the San Francisco-based startup that owns the widely popular chatbot ChatGPT.
Last month, Microsoft began rolling out a host of AI upgrades, including ChatGPT, to Azure cloud services as well as its search engine Bing - in a move that seeks to challenge the dominance of Alphabet Inc's GOOGL.O Google.
Microsoft's shares closed up 3.2% at $348.10 per share on Thursday. The stock, which has gained more than 45% in the year to date, reached its prior record close of $343.11 on Nov. 19, 2021. The stock's intraday record high was $349.67 on Nov. 22, 2021.
In addition, Apple Inc AAPL.O shares also achieved a record high close of $186.01 on Thursday, while shares of graphics chipmaker Nvidia NVDA.O set a fresh intraday record of $432.89.
Earlier Thursday, JPMorgan analysts raised their price target on Microsoft's stock, citing AI driving demand for the company's products. Of the 53 analysts covering Microsoft, 44 recommended buying the shares and the median price target is $340, according to Refinitiv data.
"We reaffirm our bullish-outlier viewpoint on generative AI and continue to see it driving a resurgence of confidence in key software franchises," JPMorgan analysts wrote in a note to clients.
(Reporting by Chibuike Oguh in New York; editing by Lance Tupper and Jonathan Oatis)
((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters Messaging: chibuike.oguh.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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In addition, Apple Inc AAPL.O shares also achieved a record high close of $186.01 on Thursday, while shares of graphics chipmaker Nvidia NVDA.O set a fresh intraday record of $432.89. Microsoft is seen as a leader in the adoption of AI technology in the software industry owing to its huge investment in OpenAI, the San Francisco-based startup that owns the widely popular chatbot ChatGPT. Last month, Microsoft began rolling out a host of AI upgrades, including ChatGPT, to Azure cloud services as well as its search engine Bing - in a move that seeks to challenge the dominance of Alphabet Inc's GOOGL.O Google.
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In addition, Apple Inc AAPL.O shares also achieved a record high close of $186.01 on Thursday, while shares of graphics chipmaker Nvidia NVDA.O set a fresh intraday record of $432.89. By Chibuike Oguh NEW YORK, June 15 (Reuters) - Microsoft Corp MSFT.O shares rose to a new record high close on Thursday as market optimism about the prospects of artificial intelligence (AI) has helped buoy the technology giant to a record market capitalization of $2.59 trillion. The stock's intraday record high was $349.67 on Nov. 22, 2021.
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In addition, Apple Inc AAPL.O shares also achieved a record high close of $186.01 on Thursday, while shares of graphics chipmaker Nvidia NVDA.O set a fresh intraday record of $432.89. By Chibuike Oguh NEW YORK, June 15 (Reuters) - Microsoft Corp MSFT.O shares rose to a new record high close on Thursday as market optimism about the prospects of artificial intelligence (AI) has helped buoy the technology giant to a record market capitalization of $2.59 trillion. Earlier Thursday, JPMorgan analysts raised their price target on Microsoft's stock, citing AI driving demand for the company's products.
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In addition, Apple Inc AAPL.O shares also achieved a record high close of $186.01 on Thursday, while shares of graphics chipmaker Nvidia NVDA.O set a fresh intraday record of $432.89. By Chibuike Oguh NEW YORK, June 15 (Reuters) - Microsoft Corp MSFT.O shares rose to a new record high close on Thursday as market optimism about the prospects of artificial intelligence (AI) has helped buoy the technology giant to a record market capitalization of $2.59 trillion. The stock's intraday record high was $349.67 on Nov. 22, 2021.
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15313.0
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2023-06-15 00:00:00 UTC
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ETF Investing Strategies for 2H 2023
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AAPL
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https://www.nasdaq.com/articles/etf-investing-strategies-for-2h-2023
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nan
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nan
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(1:00) - Breaking Down The Recent Stock Market Performance
(6:30) - Can The United States Avoid A Recession?
(9:40) - How Should Investors Position Their Portfolios Right Now?
(17:00) - Should You Be Buying Into Bond ETFs?
(19:45) - Breaking Down ETF Inflows: Are Investors Bullish Or Bearish?
(23:00) - Episode Roundup: SDY, QUS, QUAL, SBD, SPDW, VEA, GLD, GLDM, IAUM, XHB, XTN, ITB, IYT
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors (SSGA). We discuss the market outlook and the best strategies for the second half of 2023.
The S&P 500 is now up about 15% year-to-date, while the tech-heavy Nasdaq has surged almost 38%. The rally is being driven mainly by mega-cap stocks that have benefited from optimism about artificial intelligence, as well as investors' search for safety amid rising uncertainties.
Most economists expect a recession in the US later this year or early next year. It remains to be seen if the rally can continue despite macroeconomic and earnings risks. The SSGA team recommends moving up in quality in the US and rotating overseas, and diversifying recession risks with cyclicals and defensives.
The SPDR S&P Dividend ETF SDY selects companies that have consistently increased their dividend for at least 20 consecutive years. Walgreens Boots Alliance WBA and 3M MMM are among its top holdings.
The iShares MSCI USA Quality Factor ETF QUAL and the SPDR MSCI USA StrategicFactors ETF QUS provide exposure to high-quality stocks. Apple AAPL, Microsoft MSFT, and Nvidia NVDA are the top holdings in these ETFs.
Homebuilders have significantly outperformed the S&P 500 index this year. However, after a 30% plunge in 2022 and an improving earnings outlook, these stocks still look attractively priced on a price-to-earnings (P/E) and price-to-book (P/B) basis. Take a look at the iShares U.S. Home Construction ETF ITB and the SPDR S&P Homebuilders ETF XHB.
In the fixed income space, Matt recommends short-duration ETFs given their elevated yields, and actively managed ETFs that can navigate evolving monetary policy and mixed fundamentals.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SPDR S&P Homebuilders ETF (XHB): ETF Research Reports
iShares U.S. Home Construction ETF (ITB): ETF Research Reports
Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
SPDR S&P Dividend ETF (SDY): ETF Research Reports
iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL, Microsoft MSFT, and Nvidia NVDA are the top holdings in these ETFs. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports iShares U.S. Home Construction ETF (ITB): ETF Research Reports Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report SPDR S&P Dividend ETF (SDY): ETF Research Reports iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports To read this article on Zacks.com click here. (23:00) - Episode Roundup: SDY, QUS, QUAL, SBD, SPDW, VEA, GLD, GLDM, IAUM, XHB, XTN, ITB, IYT Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors (SSGA).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports iShares U.S. Home Construction ETF (ITB): ETF Research Reports Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report SPDR S&P Dividend ETF (SDY): ETF Research Reports iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, and Nvidia NVDA are the top holdings in these ETFs. The iShares MSCI USA Quality Factor ETF QUAL and the SPDR MSCI USA StrategicFactors ETF QUS provide exposure to high-quality stocks.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports iShares U.S. Home Construction ETF (ITB): ETF Research Reports Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report SPDR S&P Dividend ETF (SDY): ETF Research Reports iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, and Nvidia NVDA are the top holdings in these ETFs. (23:00) - Episode Roundup: SDY, QUS, QUAL, SBD, SPDW, VEA, GLD, GLDM, IAUM, XHB, XTN, ITB, IYT Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors (SSGA).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports iShares U.S. Home Construction ETF (ITB): ETF Research Reports Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report SPDR S&P Dividend ETF (SDY): ETF Research Reports iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, and Nvidia NVDA are the top holdings in these ETFs. Take a look at the iShares U.S. Home Construction ETF ITB and the SPDR S&P Homebuilders ETF XHB.
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15314.0
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2023-06-15 00:00:00 UTC
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Top 7 Long-Term Investment Stocks for Future Millionaires
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AAPL
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https://www.nasdaq.com/articles/top-7-long-term-investment-stocks-for-future-millionaires
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The benchmark S&P 500 index experienced losses in 11 of 47 years between 1975 and 2022. That alone proves the stock market generates far more returns than losses. Yet investors tend to earn returns that are only about one-third of the stock market’s total return. This is because investors tend to jump in and out of stocks, change their minds frequently, and even act on emotion. Instead, what many investors may want to do is buy and stay put with some of the market’s best long-term stocks, such as:
Best Long-Term Stocks: Toyota (TM)
Source: josefkubes / Shutterstock.com
Tesla (NASDAQ:TSLA) is one of the top electric vehicle stocks on the market. But Toyota Motor (NYSE:TM) may be about to catch it. After all, Toyota is the world’s biggest vehicle manufacturer. In 2022, while Tesla produced 1.3 million vehicles, Toyota produced 10.5 million — and just announced that it will focus its resources on developing a full line-up of electric vehicles and the batteries needed to power them.
In fact, Toyota said it plans to sell 3.5 million battery-powered vehicles a year by 2030 through a new electric vehicle business unit called “BEV Factory.” The automaker added that it is aiming for a driving range of 1,000 kilometers on a single battery charge for all its future electric vehicles, which is nearly double the 570 km range of Tesla’s Model 3 sedan. The company is also developing solid-state batteries for its EVs. New CEO Koji Sato is making electric vehicle production his central focus, which should worry other automakers. TM stock is up 20% so far this year. The stock also has a low price-earnings ratio of 12 and pays a rich dividend yield of 2.58%.
Best Long-Term Stocks: Starbucks (SBUX)
Source: Shutterstock
Starbucks (NASDAQ:SBUX) does one thing and does it extremely well: sell coffee. Today, Starbucks is the biggest restaurant chain in the world with more than $30 billion in annual revenue, more than 35,000 outlets worldwide, and an army of 400,000 employees. Starbucks is bigger than McDonald’s (NYSE:MCD) in terms of its annual sales. That’s impressive when one considers that Starbucks’ menu is much more limited and static than McDonald’s and other quick service restaurants.
In addition, Starbucks’ success proves the enduring power of coffee. Surveys have found that nearly half (49%) of Americans drink three to five cups of coffee each day. And 39% of Americans say they enjoy Starbucks coffee the most. The national coffee addiction helps to explain Starbucks’ robust earnings. The Seattle-based company is also huge globally, enjoying a major presence in China, the world’s most populous country with 1.4 billion citizens. Starbucks’ global reach should help power its sales for years to come. SBUX stock has gained 35% in the past 12 months and is up 76% over five years.
Best Long-Term Stocks: Broadcom (AVGO)
Source: Shutterstock
It seems that all the news concerning microchip and semiconductor companies revolves around players such as Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). Too often the discussion around chipmakers leaves out another major player, Broadcom (NASDAQ:AVGO). This is a shame as Broadcom has quietly outperformed many of its peers for years now. AVGO stock is up 65% in the past year and has risen more than 200% over five years.
Broadcom’s chips are used to power everything from wireless networks and data centers to artificial intelligence (A.I.) applications. The company is currently riding high on news that antitrust regulators in Europe plan to approve its $61 billion acquisition of cloud computing firm VMware (NYSE:VMW). The purchase will further diversify Broadcom’s technology and its uses, making it a great strategic move on the company’s part. AVGO stock also pays a decent dividend that yields 2.14%, which is rare among chipmakers and tech companies.
Ralph Lauren (RL)
Source: Martin Good / Shutterstock.com
Fashion company Ralph Lauren’s (NYSE:RL) brand and stock have held up better than most retailers during the volatility of the last 18 months. During the past year, RL stock has grown 27%, and it has increased 75% since 2017. The company targets a more affluent clientele with its polo shirts and other preppy wear, and that has made Ralph Lauren more resilient to economic downturns as high net-worth individuals tend to curb their spending last and only in extreme situations.
Like other stocks on this list, Ralph Lauren benefits from being a truly international company, with sales in every region of the globe. In its most recent earnings print, Ralph Lauren reported that its China sales rose 4% during the quarter, helping to offset weakness in the U.S. The company is also much more than its clothing line. Ralph Lauren has also expanded into eyewear, bedding, fragrances, and cosmetics. Management has said the goal is to be a “full luxury” company.
Apple (AAPL)
Source: askarim / Shutterstock
It remains to be seen if Apple’s (NASDAQ:AAPL) new $3,500 augmented reality headset will be a hit with consumers. Regardless, the technology giant has many other products to continue driving its sales for years to come, including the iPhone, Macbook, Apple Watch and its relatively new financial and streaming ventures. The enduring popularity and strong sales of its products helps to explain why AAPL stock recently closed at an all-time high above $183 (on a split-adjusted basis).
Apple’s market capitalization is back to approaching $3 trillion, according to data from FactSet, and the share price can be expected to continue running higher for years to come. Key to Apple’s enduring success has been strong brand loyalty among consumers and its ability to constantly update its technology. Apple is one of the few companies that issue new versions of its products every year without fail. Investors who own AAPL stock also benefit from the fact that the company buys back more of its own stock than any other publicly traded entity.
McDonald’s (MCD)
Source: Shutterstock
McDonald’s is an evergreen stock. A true set-it-and-forget-it investment. Shares of the Golden Arches can reliably be expected to trend higher over the long-term. Investors looking for stocks with durable competitive advantages and a wide moat around them should consider MCD stock. Today, McDonald’s is the third largest quick-service restaurant chain in the world by revenue with nearly $25 billion in annual sales. That’s a lot of hamburgers and fries.
In the last 12 months, MCD stock has risen 20% and the company’s share price is up 75% through five years. Stockholders also get a quarterly dividend that yields 2.11% for a payout of $1.52 a share. In late April, McDonald’s reported earnings that once again beat Wall Street forecasts on the top and bottom lines. Due to increased traffic and higher prices, McDonald’s reported earnings per share of $2.63 versus $2.33 expected. Revenue came in at $5.90 billion compared to the $5.59 billion forecast. Rock solid.
Alibaba (BABA)
Source: BigTunaOnline / Shutterstock.com
Investing in China is not without risk. However, the upside potential might make it worthwhile to take a position in a major Chinese tech firm whose long-term growth prospects are huge. A tech firm such as Alibaba (NYSE:BABA). Dubbed the “Amazon of China,” Alibaba is an e-commerce giant that also has tentacles in cloud computing, online payments, and AI. BABA stock took a drubbing over the past few years as Chinese authorities in Beijing cracked down on publicly traded companies, notably tech firms. However, the worst looks to now be over.
In recent months, several notable investors have been taking positions in Chinese stocks, including Michael Burry of “The Big Short” fame. In May, it was revealed that Burry had doubled his holding of BABA stock. Alibaba, along with fellow Chinese tech firm JD.com (NASDAQ:JD), is now the largest holding in Burry’s fund, accounting for 20% of his portfolio. Clearly, Burry and others are betting on the long-term growth potential of China’s major companies.
On the date of publication, Joel Baglole held long positions in NVDA and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post Top 7 Long-Term Investment Stocks for Future Millionaires appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: askarim / Shutterstock It remains to be seen if Apple’s (NASDAQ:AAPL) new $3,500 augmented reality headset will be a hit with consumers. The enduring popularity and strong sales of its products helps to explain why AAPL stock recently closed at an all-time high above $183 (on a split-adjusted basis). Investors who own AAPL stock also benefit from the fact that the company buys back more of its own stock than any other publicly traded entity.
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Apple (AAPL) Source: askarim / Shutterstock It remains to be seen if Apple’s (NASDAQ:AAPL) new $3,500 augmented reality headset will be a hit with consumers. The enduring popularity and strong sales of its products helps to explain why AAPL stock recently closed at an all-time high above $183 (on a split-adjusted basis). Investors who own AAPL stock also benefit from the fact that the company buys back more of its own stock than any other publicly traded entity.
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Investors who own AAPL stock also benefit from the fact that the company buys back more of its own stock than any other publicly traded entity. Apple (AAPL) Source: askarim / Shutterstock It remains to be seen if Apple’s (NASDAQ:AAPL) new $3,500 augmented reality headset will be a hit with consumers. The enduring popularity and strong sales of its products helps to explain why AAPL stock recently closed at an all-time high above $183 (on a split-adjusted basis).
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Apple (AAPL) Source: askarim / Shutterstock It remains to be seen if Apple’s (NASDAQ:AAPL) new $3,500 augmented reality headset will be a hit with consumers. The enduring popularity and strong sales of its products helps to explain why AAPL stock recently closed at an all-time high above $183 (on a split-adjusted basis). Investors who own AAPL stock also benefit from the fact that the company buys back more of its own stock than any other publicly traded entity.
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15315.0
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2023-06-15 00:00:00 UTC
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Tech Titans Propel QQQ: Is A Pullback Looming?
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AAPL
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https://www.nasdaq.com/articles/tech-titans-propel-qqq%3A-is-a-pullback-looming
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nan
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nan
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Year-to-date, technology has led the charge in the market's recovery. Without the remarkable performance of a handful of industry, global leading names, the market would be near flat on the year.
The map below of the S&P 500 index categorizes performance by sectors and industries, with size representing the market capitalization of each company. Seven companies stand out for their performance and market capitalization in the above map, measuring performance YTD.
Interestingly, all seven companies are technology focused and at the forefront of innovative themes such as augmented reality, AI, cloud computing, electric vehicles, and more.
As a result, all seven companies are priority holdings of the Invesco QQQ (NASDAQ: QQQ) ETF.
YTD, the SPDR S&P 500 ETF Trust (NYSE: SPY) is up 14.3%, while the QQQ ETF is up 37.4%. With a remarkable outperformance stemming from a deep concentration on seven companies, is QQQ overbought and close to a pullback?
Seven Names Make Up Over 50% of QQQ Holdings
While the SPY ETF is diverse and includes companies across all sectors and industries, QQQ's is more focused, with 58% of the tech funds allocated to technology and 19% consumer discretionary. As a result, seven stocks dominate the fund's weighting and are all directly responsible for the QQQ's outperformance this year. However, if several of these individual stocks are overbought, in the short term, it might result in a sharp pullback due to a lack of diversification.
QQQ has a relative strength index (RSI) of 76.81, putting the ETF in overbought territory. Typically, an RSI above 70 indicates that a stock is becoming overbought.
From 1. To 8. In the image above, those seven companies contribute over 50% of the ETF's holding and exposure.
Microsoft (NASDAQ: MSFT) accounts for 12.90% allocation in the ETF. YTD, the stock is up 40% and closing in on its ATH of $349.67. The stock has an RSI of 66.58, approaching an overbought level.
Apple (NASDAQ: AAPL), weighing 12.15% in the ETF, is up 41% YTD. AAPL has an RSI of 71, making the stock overbought and overvalued in the short term.
In third place, with an allocation of 6.84%, is Nvidia (NASDAQ: NVDA). After trending higher all year, the stock soared on blowout Q1 earnings and guidance and is now up 194% YTD, with a market cap greater than $1 trillion. However, NVDA is in overbought territory with an RSI of 76.34.
Similar to Microsoft, Amazon (NASDAQ: AMZN) has an RSI of 66.04. The stock is nearing overbought territory but not quite there yet. YTD, the stock is up 50%.
Tesla (NASDAQ: TSLA) is in highly overbought territory with an RSI of 86.04. YTD, the stock is up over 100% and over 50% this month. With a significant weighting of 4.26% in the ETF, QQQ investors will want to watch the performance of TSLA closely, as a pullback will undoubtedly impact the ETFs performance.
Meta Platforms (NASDAQ: META) is up 127% YTD and significantly extended from its key moving averages, specifically the 200d SMA. META has an RSI of 74.28, indicating that the stock is overbought and overvalued in the short term and susceptible to a pullback.
Alphabet (NASDAQ: GOOGL) weighs 7.78% when combing class A and B holdings in the ETF. GOOGL is up 40% YTD. However, the stock has an RSI of 60.20, indicating it is not overbought or overvalued in the short term.
Should You Invest In QQQ?
As 4 out of the standout 7 top holdings of the ETF are currently overbought and overvalued, according to their RSI, now is the time for investors to be cautious and think about a retracement in the ETF.
The ETF has a highly overbought reading on its RSI and now finds itself vulnerable to its top-weighted names that are too in overbought territory. As such, investors should consider taking profits or some risk off the table and looking for a pullback to re-enter.
The views and 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), weighing 12.15% in the ETF, is up 41% YTD. AAPL has an RSI of 71, making the stock overbought and overvalued in the short term. The map below of the S&P 500 index categorizes performance by sectors and industries, with size representing the market capitalization of each company.
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AAPL has an RSI of 71, making the stock overbought and overvalued in the short term. Apple (NASDAQ: AAPL), weighing 12.15% in the ETF, is up 41% YTD. Tesla (NASDAQ: TSLA) is in highly overbought territory with an RSI of 86.04.
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Apple (NASDAQ: AAPL), weighing 12.15% in the ETF, is up 41% YTD. AAPL has an RSI of 71, making the stock overbought and overvalued in the short term. Seven Names Make Up Over 50% of QQQ Holdings While the SPY ETF is diverse and includes companies across all sectors and industries, QQQ's is more focused, with 58% of the tech funds allocated to technology and 19% consumer discretionary.
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Apple (NASDAQ: AAPL), weighing 12.15% in the ETF, is up 41% YTD. AAPL has an RSI of 71, making the stock overbought and overvalued in the short term. Seven Names Make Up Over 50% of QQQ Holdings While the SPY ETF is diverse and includes companies across all sectors and industries, QQQ's is more focused, with 58% of the tech funds allocated to technology and 19% consumer discretionary.
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15316.0
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2023-06-15 00:00:00 UTC
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7 Stocks Forming the Next ‘Economic Supercluster’
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AAPL
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https://www.nasdaq.com/articles/7-stocks-forming-the-next-economic-supercluster
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The next group of stocks in economic supercluster already emerged in the form of the so-called ‘Magnificent 7’ stocks. That group includes Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG GOOGL), Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA). However, it’s also important to recognize that investors are beginning to pull back on those stocks on valuation concerns. Still, there are other stocks in economic supercluster we can also check out, including:
AMD Advanced Micro Devices $124.24
AVGO Broadcom $883.43
ASML ASML. $738.69
PLTR Palantir $16.60
ALB Albemarle $230.91
F Ford Motor $14.45
SEDG SolarEdge $277.46
Stocks in Economic Supercluster: Advanced Micro Devices (AMD)
Source: Pamela Marciano / Shutterstock.com
Advanced Micro Devices (NASDAQ:AMD) is chief among stocks deserving of investor attention right now. It basically trades in parallel with Nvidia. The two stocks are interconnected and conversation about one conjures up the other.
Nvidia has nearly tripled in 2023 thanks to the AI story. After all, Nvidia’s chips are powering the AI boom. Plus, demand for its GPUs is outstripping supply — an ideal situation for the company. Meanwhile, AMD is telegraphing a big push into AI servers and AI data centers. In addition, AMD chips power more than 100 of the world’s fastest supercomputers.
The opportunity for AMD I clear. And I’d argue that over the coming weeks and months, more eyes will be on AMD. In fact, AMD shares are currently showing bigger daily returns than NVDA at the moment.
Stocks in Economic Supercluster: Broadcom (AVGO)
Source: Shutterstock
Investors should remain acutely aware of Broadcom (NASDAQ:AVGO) in relation to the AI stock boom. The company is a name to know when it comes to large-scale data centers and AI/ML. Broadcom refers to that portion of its business as hyperscale, showcasing its offerings and ability late last year at an industry summit.
Broadcom’s software solutions in the hyperscale data center realm will make it relevant in this new era. Investors know that Nvidia is winning the chip war certainly. But it’s also important to understand that artificial intelligence and machine learning touch so many other firms outside of chips alone. Broadcom is one of them.
Broadcom is also making strides in 5G, another secular trend and opportunity. The company recently announced a multi-year, multi-billion-dollar deal with Apple to provide it with 5G components. In short, AVGO stock is one to be aware of for investors seeking firms entrenched in future tech growth.
ASML (ASML)
Source: Ralf Liebhold / Shutterstock
ASML (NASDAQ:ASML) reminds me of Taiwan Semiconductor Manufacturing (NYSE:TSM) in that both firms and stocks are relatively unheralded yet vitally important to the semiconductor industry. Taiwan Semiconductor Manufacturing acts as a chip foundry for the world’s biggest chip companies. It makes chips that no other firm can. ASML makes EUV lithography machines that enable the mass production of those chips and others. Both companies are integral to the world’s economy and do what others can’t.
AI/ML chips are going to require a greater number of smaller and smaller transistors to be packed onto chips. ASML’s lithography machines are going to produce those chips. The company sold 100 such machines during the first quarter, 96 of which were new. That was less than the 106 sold during the same period a year earlier although only 95 of those were new. However, revenues were higher suggesting ASML was able to pass on higher prices to customers. A Google search reveals wildly varying prices for those machines ranging from $150 million a piece to $400 million for next-generation iterations.
Palantir (PLTR)
Source: Spyro the Dragon / Shutterstock.com
Palantir (NYSE:PLTR) stock may or may not be a part of the next ‘economic supercluster’. Nevertheless, it remains worth understanding if only to show how AI is being adopted across every industry. Palantir is a software firm so it’s to be expected that AI will directly affect the firm. It primarily services the defense industry and is one of the most prominent firms bringing Silicon Valley tech know-how and applying it to the U.S. defense industry.
Surely you can see where I’m going with this: The defense industry is a vital component of the U.S. economy and AI promises to drive its future growth. Palantir’s AIP (Artificial Intelligence Platform) is geared toward business and defense. It’s the latter that arguably makes the company especially exciting now.
I’ve linked a video for readers interested in what that software is capable of. It produces multiple courses of action for leadership given a specific scenario. The data ingested through AI will make war planning multiple times more thorough than it was previously. Palantir is on the cusp of a massive opportunity.
Albemarle (ALB)
Source: Shutterstock
Albemarle (NYSE:ALB) benefits from the critical mass of EV adoption. Data suggests that once 5% of new car sales are EVs that an intractable paradigm is reached. That paradigm is mass adoption. The U.S. reached that level last summer. Thus, the rush to supply that growth is already well underway. That’s where lithium supplier Albemarle fits in. The stock caught fire over the last few years as EV sales have boomed. Then lithium prices skyrocketed late last year due to multiple factors making the company more prominent. Those prices have fluctuated since but Albemarle’s fundamentals continue to strengthen.
Tesla is the most prominent stock name in EV stocks. It is part of the so-called Magnificent 7. Albemarle, though, is a great name to consider beyond TSLA shares. The company has emerged as one of the most important links in the domestic EV supply chain. It’s a great play on EVs overall.
Ford Motor (F)
Source: D K Grove / Shutterstock.com
Ford Motor (NYSE:F) and other legacy automotive manufacturers are vying to be a part of the EV transition. Ford’s size and resources are going to allow the firm to become a major force in EVs moving forward. Tesla proved the concept, legacy makers are going to take advantage moving forward.
Its efforts thus far have resulted in losses. $6 billion worth of losses to be more precise since 2021 $2.1 billion of which occurred last year. The positive news is that Ford expects its first-generation EVs to reach breakeven at some point this year. It is fine-tuning what is an upstart business within a much larger overall business. That’s laudable. Further, although momentum has slowed, EV sales growth reached 41% in Q1.
The point here is that legacy automobile manufacturers are making a real push into EVs that is consequential. Ford is catching up to Tesla as we speak and in time, perhaps by 2025, will overtake Tesla in EV sales.
SolarEdge (SEDG)
Source: chuyuss / Shutterstock.com
SolarEdge (NASDAQ:SEDG) is a leading seller of solar inverters. Solar energy is part of the new economy and that makes SEDG stock important.
Solar inverters transform the direct current energy captured by solar panels into alternating current energy that can be used in homes that are wired for AC energy. Inverters might not spring to mind as solar panels do but they are equally important nonetheless. SolarEdge has established itself as an important firm in the new energy economy. 2.78 million homes were equipped with the firm’s technology at the end of 2022. 50% of Fortune 100 companies could boast the same on that date.
Q1 earnings were exceptionally strong with a record $944 million in sales. In fact, SolarEdge set all kinds of company records in the quarter. I won’t bore you by listing them but they point to strength. Solar power will in time become similar to the utility sector and produce very steady, strong stocks. SEDG shares will be among them.
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 Stocks Forming the Next ‘Economic Supercluster’ 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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That group includes Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG GOOGL), Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA). PLTR Palantir $16.60 ALB Albemarle $230.91 F Ford Motor $14.45 SEDG SolarEdge $277.46 Stocks in Economic Supercluster: Advanced Micro Devices (AMD) Source: Pamela Marciano / Shutterstock.com Advanced Micro Devices (NASDAQ:AMD) is chief among stocks deserving of investor attention right now. 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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That group includes Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG GOOGL), Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA). PLTR Palantir $16.60 ALB Albemarle $230.91 F Ford Motor $14.45 SEDG SolarEdge $277.46 Stocks in Economic Supercluster: Advanced Micro Devices (AMD) Source: Pamela Marciano / Shutterstock.com Advanced Micro Devices (NASDAQ:AMD) is chief among stocks deserving of investor attention right now. Stocks in Economic Supercluster: Broadcom (AVGO) Source: Shutterstock Investors should remain acutely aware of Broadcom (NASDAQ:AVGO) in relation to the AI stock boom.
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That group includes Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG GOOGL), Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips The next group of stocks in economic supercluster already emerged in the form of the so-called ‘Magnificent 7’ stocks. PLTR Palantir $16.60 ALB Albemarle $230.91 F Ford Motor $14.45 SEDG SolarEdge $277.46 Stocks in Economic Supercluster: Advanced Micro Devices (AMD) Source: Pamela Marciano / Shutterstock.com Advanced Micro Devices (NASDAQ:AMD) is chief among stocks deserving of investor attention right now.
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That group includes Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG GOOGL), Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips The next group of stocks in economic supercluster already emerged in the form of the so-called ‘Magnificent 7’ stocks. It makes chips that no other firm can.
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15317.0
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2023-06-15 00:00:00 UTC
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Unity Software (NASDAQ:U): Apple Vision Pro Partnership Makes Stock Attractive
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AAPL
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https://www.nasdaq.com/articles/unity-software-nasdaq%3Au%3A-apple-vision-pro-partnership-makes-stock-attractive
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nan
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nan
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Unity Software (NASDAQ:U) rallied 17% when Apple (NASDAQ:AAPL) announced a partnership with the video game engine maker during the reveal of its spatial computer Apple Vision Pro. The sudden spike may very well be the start of a sustained rally to much higher levels as Unity looks to recover some of the ground it lost during the devastating crash of 2022. I am bullish on Unity stock.
Undoubtedly, Unity is a big name in the world of video game development. It helps power many impressive 3D games on a wide range of platforms. Indeed, it makes sense to view Unity as some sort of software "pick-and-shovels" play for a potential AR/VR push that could come as early as next year once Apple Vision Pro goes on sale in the U.S. market. Gaming will be just one main draw of spatial computing. The other will be immersive experiences that are sure to be rich with digital 3D assets.
Apple Vision Pro and Unity May be a Match Made in Heaven
For now, Apple Vision Pro with Unity technology looks like the perfect match that could help developers create enough apps (yes, including the elusive "killer apps") to make Apple's spatial computer a must-buy on day one, even at $3,499.
Understandably, there were many groans and laughs when the pricing details were unveiled. However, I think the pains of the Apple fans were due to the hit that their wallets would take rather than groans of missing out on the new, potentially-revolutionary technology.
Apple seems smart to give developers the tools (and time) to ensure the Apple Vision Pro succeeds. Indeed, many firms have tried but failed to break into the realm of VR, AR, or the Metaverse with their own headsets. Apple's headset is not cheap, but it may be of great value considering the type of cutting-edge hardware and software needed to make next-generation immersive experiences possible.
As Apple Vision Pro and its app store succeed, I believe so too will Unity.
Unity Stock: 52-Week High is Still Within Reach
At its worst, shares of U lost around 88% of their value from peak to trough. As the tides turn and we learn more about Unity's involvement with Apple and its latest headset, it's hard to stay downbeat on Unity.
Although its 52-week high, just shy of $60 per share, may not be touched anytime soon, I do think many are underestimating the potential of its partnership with Apple. Some skeptics may be inclined to dismiss the device over its price or spatial computing as a whole. Still, Apple has a pretty good track record of turning anything it touches into gold, and the firms it teams up with tend to prosper profoundly.
It will take time, perhaps years, for spatial computing to mature. The first Apple Vision headset is undeniably expensive, but the tech will improve, and prices should fall with time. Next year's Vision Pro model may be miles behind a non-Pro version that launches after it, especially at the rate Apple Silicon is improving.
For now, Unity stands out as an innovative company that may very well be the Nvidia (NASDAQ:NVDA) of the AR/VR world. Only time will tell if VR/AR, spatial computing, and the Metaverse will experience another euphoric surge. Regardless, I do think it will be hard not to be enthused after trying an Apple Vision Pro in stores next year.
Earlier this year, innovation investor Cathie Wood bought a big chunk of Unity shares. She's all about disruptive innovation, and I think she'll look very smart if the Apple-Unity partnership pays off in a year or two.
Is Unity Stock a Buy, According to Analysts?
Turning to Wall Street, U stock comes in as a Moderate Buy. Out of 14 analyst ratings, there are seven Buys, six Holds, and one Sell rating. Nonetheless, the average Unity Software stock price target is $39.67, implying downside potential of 3.4%. Analyst price targets range from a low of $16.00 per share to a high of $66.00 per share.
The Bottom Line on Unity Shares
Unity stock seems too hot to handle following its vertical surge on the Apple Vision Pro partnership announcement. Still, I think the stock has more room to run as it kicks off what could be a rush to tech stocks with skin in the AR game.
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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Unity Software (NASDAQ:U) rallied 17% when Apple (NASDAQ:AAPL) announced a partnership with the video game engine maker during the reveal of its spatial computer Apple Vision Pro. Indeed, it makes sense to view Unity as some sort of software "pick-and-shovels" play for a potential AR/VR push that could come as early as next year once Apple Vision Pro goes on sale in the U.S. market. Apple's headset is not cheap, but it may be of great value considering the type of cutting-edge hardware and software needed to make next-generation immersive experiences possible.
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Unity Software (NASDAQ:U) rallied 17% when Apple (NASDAQ:AAPL) announced a partnership with the video game engine maker during the reveal of its spatial computer Apple Vision Pro. As Apple Vision Pro and its app store succeed, I believe so too will Unity. The Bottom Line on Unity Shares Unity stock seems too hot to handle following its vertical surge on the Apple Vision Pro partnership announcement.
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Unity Software (NASDAQ:U) rallied 17% when Apple (NASDAQ:AAPL) announced a partnership with the video game engine maker during the reveal of its spatial computer Apple Vision Pro. Apple Vision Pro and Unity May be a Match Made in Heaven For now, Apple Vision Pro with Unity technology looks like the perfect match that could help developers create enough apps (yes, including the elusive "killer apps") to make Apple's spatial computer a must-buy on day one, even at $3,499. The Bottom Line on Unity Shares Unity stock seems too hot to handle following its vertical surge on the Apple Vision Pro partnership announcement.
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Unity Software (NASDAQ:U) rallied 17% when Apple (NASDAQ:AAPL) announced a partnership with the video game engine maker during the reveal of its spatial computer Apple Vision Pro. Indeed, it makes sense to view Unity as some sort of software "pick-and-shovels" play for a potential AR/VR push that could come as early as next year once Apple Vision Pro goes on sale in the U.S. market. Is Unity Stock a Buy, According to Analysts?
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15318.0
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2023-06-15 00:00:00 UTC
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US STOCKS-S&P 500 leaps to highest close in 14 months; traders bet US rates near peak
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-leaps-to-highest-close-in-14-months-traders-bet-us-rates-near-peak-0
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nan
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nan
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By Noel Randewich and Shristi Achar A
June 15 (Reuters) - The S&P 500 and Nasdaq surged on Thursday to close at their highest in 14 months, as investors cheered economic data that fueled bets that the U.S. Federal Reserve is nearing the end of its aggressive interest-rate hike campaign.
Treasury yields slid after a slew of economic data pointed to easing inflation, helping offset worries about future rate hikes and boosting Apple AAPL.O and Microsoft MSFT.O to record highs.
Data showed U.S. retail sales unexpectedly rose in May as consumers spent on a range of goods including vehicles. Another data set showed jobless claims were unchanged at a seasonally adjusted 262,0000 for the week ended June 10, but were above economists' forecast of 249,000 claims.
Additionally, import prices fell in May and the annual decrease was the sharpest in three years. That followed a report on Tuesday showing April headline inflation increased by less than expected.
The Fed left rates unchanged at the 5%-5.25% range on Wednesday and indicated it may hike by at least half a percentage point this year as inflation remains persistent.
"Due to softer inflation data earlier this week and resilient economic data after the Fed meeting, the market is rallying and yields are falling because investors don't believe the Fed is as hawkish as they presented," said Ross Mayfield, an investment strategy analyst at Baird.
"The market doesn't believe they have two more hikes in the chamber."
Traders see a 67% chance of a 25-basis point rate hike in July, followed by a potential rate cut by December, according to the CME Fedwatch tool.
Thursday's gains were broad and included sectors viewed as sensitive to swings in the health of the economy. All 11 S&P 500 sector indexes rose, led by health care .SPXHC, up 1.55%, followed by a 1.54% gain in communication services .SPLRCL.
U.S. Treasury yields pulled back, lifting shares of rate-sensitive growth stocks. US/
Apple rose 1.1%, while Microsoft rallied 3.2%, beating its previous record high close in November 2021.
"There is a great deal of money on the sidelines of people who'd been scared of recession, and as the worries go away people are returning to equities," said David Russell, vice president of Market Intelligence at TradeStation.
So far in 2023, the S&P 500 is up about 15% and the Nasdaq has climbed about 32%, fueled by signs of economic resilience, a better-than-expected earnings season and bets that interest rates are near their peak.
The S&P 500 climbed 1.22% to end the session at 4,425.84 points.
The Nasdaq increased 1.15% to 13,782.82 points, bringing its gain this week to almost 4%.
The Dow Jones Industrial Average rose 1.26% to 34,408.06 points.
Volume on U.S. exchanges was relatively heavy, with 11.8 billion shares traded, compared to an average of 10.9 billion shares over the previous 20 sessions.
Kroger CoKR.N dropped 2.7% after the big-box retailer missed first-quarter revenue estimates.
Kohl's Corp KSS.N rose 2.7% after TD Cowen upgraded the department store operator to "outperform" from "market perform".
U.S.-listed shares of Chinese companies Alibaba Group BABA.N and JD.com JD.O each gained more than 3% after the People's Bank of China cut the borrowing cost for its medium-term policy loans for the first time in 10 months.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 7.1-to-one ratio.
The S&P 500 posted 48 new highs and no new lows; the Nasdaq recorded 80 new highs and 72 new lows.
S&P 500 components so far in 2023 https://tmsnrt.rs/3qKEPIp
(Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru and by Noel Randewich in Oakland, Calif.; Editing by Vinay Dwivedi, Shounak Dasgupta and 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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Treasury yields slid after a slew of economic data pointed to easing inflation, helping offset worries about future rate hikes and boosting Apple AAPL.O and Microsoft MSFT.O to record highs. By Noel Randewich and Shristi Achar A June 15 (Reuters) - The S&P 500 and Nasdaq surged on Thursday to close at their highest in 14 months, as investors cheered economic data that fueled bets that the U.S. Federal Reserve is nearing the end of its aggressive interest-rate hike campaign. U.S.-listed shares of Chinese companies Alibaba Group BABA.N and JD.com JD.O each gained more than 3% after the People's Bank of China cut the borrowing cost for its medium-term policy loans for the first time in 10 months.
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Treasury yields slid after a slew of economic data pointed to easing inflation, helping offset worries about future rate hikes and boosting Apple AAPL.O and Microsoft MSFT.O to record highs. "Due to softer inflation data earlier this week and resilient economic data after the Fed meeting, the market is rallying and yields are falling because investors don't believe the Fed is as hawkish as they presented," said Ross Mayfield, an investment strategy analyst at Baird. US/ Apple rose 1.1%, while Microsoft rallied 3.2%, beating its previous record high close in November 2021.
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Treasury yields slid after a slew of economic data pointed to easing inflation, helping offset worries about future rate hikes and boosting Apple AAPL.O and Microsoft MSFT.O to record highs. By Noel Randewich and Shristi Achar A June 15 (Reuters) - The S&P 500 and Nasdaq surged on Thursday to close at their highest in 14 months, as investors cheered economic data that fueled bets that the U.S. Federal Reserve is nearing the end of its aggressive interest-rate hike campaign. "Due to softer inflation data earlier this week and resilient economic data after the Fed meeting, the market is rallying and yields are falling because investors don't believe the Fed is as hawkish as they presented," said Ross Mayfield, an investment strategy analyst at Baird.
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Treasury yields slid after a slew of economic data pointed to easing inflation, helping offset worries about future rate hikes and boosting Apple AAPL.O and Microsoft MSFT.O to record highs. By Noel Randewich and Shristi Achar A June 15 (Reuters) - The S&P 500 and Nasdaq surged on Thursday to close at their highest in 14 months, as investors cheered economic data that fueled bets that the U.S. Federal Reserve is nearing the end of its aggressive interest-rate hike campaign. "Due to softer inflation data earlier this week and resilient economic data after the Fed meeting, the market is rallying and yields are falling because investors don't believe the Fed is as hawkish as they presented," said Ross Mayfield, an investment strategy analyst at Baird.
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15319.0
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2023-06-15 00:00:00 UTC
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Guru Fundamental Report for AAPL
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-4
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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 Large-Cap Growth Stocks
Factor-Based Stock Portfolios
High Momentum Stocks
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 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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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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15320.0
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2023-06-15 00:00:00 UTC
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3 Stocks to Own Forever
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-own-forever
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nan
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nan
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Buy-and-hold investors should aim to hold their stocks forever, and with some companies, you can do just that. In this video, Travis Hoium highlights three companies he thinks will be valuable for decades.
*Stock prices used were end-of-day prices of June 13, 2023. The video was published on June 14, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 12, 2023
Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple, Netflix, and Walt Disney. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this video, Travis Hoium highlights three companies he thinks will be valuable for decades. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through their link, they will earn some extra money that supports their channel.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney.
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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 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney.
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In this video, Travis Hoium highlights three companies he thinks will be valuable for decades. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. Their opinions remain their own and are unaffected by The Motley Fool.
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15321.0
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2023-06-15 00:00:00 UTC
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1 Reason Why Apple Stock Is a Screaming Buy Right Now, and It Is Not the Vision Pro
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AAPL
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https://www.nasdaq.com/articles/1-reason-why-apple-stock-is-a-screaming-buy-right-now-and-it-is-not-the-vision-pro
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nan
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nan
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Apple (NASDAQ: AAPL) announced its long-rumored mixed-reality headset at the company's Worldwide Developers Conference on June 5, and Wall Street's reaction to the device hasn't quite been enthusiastic.
Shares of Apple haven't moved much since the formal announcement of the Vision Pro headset. That's not surprising given that Apple has priced the device at a rich $3,499, which makes it quite expensive when compared to what the competition offers. Also, the device will hit the market only in early 2024, so it is difficult to gauge what kind of impact it is going to have on Apple's sales.
Given that the Vision Pro is a first-generation device that's going to help Apple test the waters in the nascent mixed reality market, it is not surprising to see investors' lukewarm reception to the device. Moreover, Apple still has work to do to ensure that users pay such a massive premium for its headset -- such as developing a compelling app ecosystem.
But while the Apple Vision Pro may not have elicited a solid response from investors, the next iPhone could give them a big reason to cheer. Let's see why that may be the case.
Apple's next-generation iPhone could drive a massive upgrade cycle
Wedbush Securities analyst Dan Ives has raised his price target on Apple stock from $205 to $220, claiming that the company is on track to win big from its next iPhone. According to Ives, there are around 250 million iPhones in an upgrade window as they are more than four years old. As a result, the next iteration of the iPhone, which should ideally be launched in the third quarter of 2023, could turn out to be a big growth driver for Apple.
Consumer Intelligence Research Partners pointed out last month that the average selling price of an iPhone jumped to a record $988 in the first quarter of 2023, an increase of 12% over the prior year. Apple achieved this remarkable feat at a time when the global smartphone market was in a state of decline.
Market research firm IDC estimates that global smartphone shipments dropped nearly 15% year over year in the first quarter of 2023. Apple's shipments were down just 2.3% as compared to the prior-year quarter, suggesting that the iPhone commanded robust loyalty even at a time when many consumers were unwilling to spend money on smartphones.
It is also worth noting that iPhone average selling price has increased for four consecutive quarters now. Supply chain rumors suggest that Apple could bump up the price of the Pro version of its upcoming smartphone. Given that the higher-priced iPhone 14 Pro and Pro Max versions have been witnessing stronger demand than the iPhone 14 and the iPhone 14 Plus, a price increase by Apple could help it further increase the average price.
The tech giant could deliver stronger-than-expected growth
Assuming Apple manages to increase its iPhone average sales price to $1,000 when it launches the next iteration of its flagship product, the company's potential revenue opportunity from the device could be a massive $250 billion (based on the 250 million iPhones that are in an upgrade window as per Wedbush).
Apple generated $200 billion in iPhone revenue over the past four quarters, which means that a combination of strong pricing power and a big installed base of users in an upgrade window could drive significant revenue growth for the company.
The iPhone is Apple's biggest source of revenue, producing 55% of its top line in the first six months of the current fiscal year. So, a potential increase of 25% in iPhone revenue in the fiscal year following the launch of the company's next smartphone could help Apple deliver stronger-than-expected growth.
Analysts expect Apple to deliver $384 billion in revenue in the current fiscal year (which will end in September). Of that, the iPhone could deliver $211 billion based on the 55% revenue mix it commands, with the remaining $173 billion coming from other businesses. If Apple's iPhone revenue in the next fiscal year jumps to $250 billion based on the discussion above, its total revenue in fiscal 2024 could jump to $423 billion if its revenue from the other business streams remains constant.
That figure would be higher than the $410 billion revenue analysts are anticipating from Apple next fiscal year. However, considering the potential growth of Apple's services business and new products such as the Vision Pro, there is a possibility Apple's top line might exceed the $423 billion figure.
As such, it won't be surprising to see this tech stock head higher and deliver more upside following impressive gains of 41% so far in 2023, suggesting that investors might want to consider buying Apple before it soars further.
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
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.
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Apple (NASDAQ: AAPL) announced its long-rumored mixed-reality headset at the company's Worldwide Developers Conference on June 5, and Wall Street's reaction to the device hasn't quite been enthusiastic. Apple's shipments were down just 2.3% as compared to the prior-year quarter, suggesting that the iPhone commanded robust loyalty even at a time when many consumers were unwilling to spend money on smartphones. As such, it won't be surprising to see this tech stock head higher and deliver more upside following impressive gains of 41% so far in 2023, suggesting that investors might want to consider buying Apple before it soars further.
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Apple (NASDAQ: AAPL) announced its long-rumored mixed-reality headset at the company's Worldwide Developers Conference on June 5, and Wall Street's reaction to the device hasn't quite been enthusiastic. Apple's next-generation iPhone could drive a massive upgrade cycle Wedbush Securities analyst Dan Ives has raised his price target on Apple stock from $205 to $220, claiming that the company is on track to win big from its next iPhone. The tech giant could deliver stronger-than-expected growth Assuming Apple manages to increase its iPhone average sales price to $1,000 when it launches the next iteration of its flagship product, the company's potential revenue opportunity from the device could be a massive $250 billion (based on the 250 million iPhones that are in an upgrade window as per Wedbush).
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Apple (NASDAQ: AAPL) announced its long-rumored mixed-reality headset at the company's Worldwide Developers Conference on June 5, and Wall Street's reaction to the device hasn't quite been enthusiastic. Apple's next-generation iPhone could drive a massive upgrade cycle Wedbush Securities analyst Dan Ives has raised his price target on Apple stock from $205 to $220, claiming that the company is on track to win big from its next iPhone. Given that the higher-priced iPhone 14 Pro and Pro Max versions have been witnessing stronger demand than the iPhone 14 and the iPhone 14 Plus, a price increase by Apple could help it further increase the average price.
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Apple (NASDAQ: AAPL) announced its long-rumored mixed-reality headset at the company's Worldwide Developers Conference on June 5, and Wall Street's reaction to the device hasn't quite been enthusiastic. Given that the Vision Pro is a first-generation device that's going to help Apple test the waters in the nascent mixed reality market, it is not surprising to see investors' lukewarm reception to the device. The tech giant could deliver stronger-than-expected growth Assuming Apple manages to increase its iPhone average sales price to $1,000 when it launches the next iteration of its flagship product, the company's potential revenue opportunity from the device could be a massive $250 billion (based on the 250 million iPhones that are in an upgrade window as per Wedbush).
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2023-06-15 00:00:00 UTC
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US STOCKS-Futures fall as Fed signals more rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-as-fed-signals-more-rate-hikes
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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 down: Dow 0.06%, S&P 0.24%, Nasdaq 0.54%
June 15 (Reuters) - U.S. stock index futures edged lower on Thursday as the Federal Reserve signaled that interest rates could increase further this year after it skipped raising them in its latest meet.
The Fed, which left rates unchanged at the 5%-5.25% range on Wednesday, indicated that borrowing costs could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy remains resilient.
Traders now see a 72% chance of a 25-basis-point rate hike in July, up from around 60% odds a day earlier, according to the CME Fedwatch tool.
"Powell expressed that the committee seemed surprised about the resilience of current inflation even if Tuesday's CPI print showed a continued slowing in the headline inflation rate," said Charles Hepworth, investment director at GAM Investments.
"Admitting to being surprised that the Fed’s policy to date hasn’t cooled a hot jobs market is basically signaling higher rates are indeed even more necessary and can be withstood by the economy as it glides (to) a soft landing."
Investors will watch out for a slew of economic data due later in the day, including the initial jobless claims for the week ended June 10 and retail sales for May.
U.S. stock indexes ended mixed on Wednesday as Fed comments dented investor optimism sparked by recent data showing signs of cooling inflation.
At 5:37 a.m. ET, Dow e-minis 1YMcv1 were down 21 points, or 0.06%, S&P 500 e-minis EScv1 were down 10.5 points, or 0.24%, and Nasdaq 100 e-minis NQcv1 were down 82 points, or 0.54%.
Market heavyweights Tesla TSLA.O, Apple AAPL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.3% and 3.1% in premarket trading.
Shares of Tesla also snapped a record 13-day streak of gains in the previous session, which saw the electric-vehicle maker add more than $200 billion to its market-cap.
Domino's Pizza DPZ.N added 2.5% after Stifel upgraded the pizza maker to "buy" from "hold".
U.S.-listed shares of Chinese companies gained after the People's Bank of China(PBOC) cut the borrowing cost for its medium-term policy loans for the first time in 10 months.
JD.com JD.O, PDD Holdings PDD.O, Alibaba Group BABA.N and iQIYI Inc IQ.O rose between 1.5% and 3%.
(Reporting by Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@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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Market heavyweights Tesla TSLA.O, Apple AAPL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.3% and 3.1% in premarket trading. "Admitting to being surprised that the Fed’s policy to date hasn’t cooled a hot jobs market is basically signaling higher rates are indeed even more necessary and can be withstood by the economy as it glides (to) a soft landing." Investors will watch out for a slew of economic data due later in the day, including the initial jobless claims for the week ended June 10 and retail sales for May.
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Market heavyweights Tesla TSLA.O, Apple AAPL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.3% and 3.1% in premarket trading. Futures down: Dow 0.06%, S&P 0.24%, Nasdaq 0.54% June 15 (Reuters) - U.S. stock index futures edged lower on Thursday as the Federal Reserve signaled that interest rates could increase further this year after it skipped raising them in its latest meet. U.S. stock indexes ended mixed on Wednesday as Fed comments dented investor optimism sparked by recent data showing signs of cooling inflation.
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Market heavyweights Tesla TSLA.O, Apple AAPL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.3% and 3.1% in premarket trading. Futures down: Dow 0.06%, S&P 0.24%, Nasdaq 0.54% June 15 (Reuters) - U.S. stock index futures edged lower on Thursday as the Federal Reserve signaled that interest rates could increase further this year after it skipped raising them in its latest meet. The Fed, which left rates unchanged at the 5%-5.25% range on Wednesday, indicated that borrowing costs could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy remains resilient.
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Market heavyweights Tesla TSLA.O, Apple AAPL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.3% and 3.1% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. The Fed, which left rates unchanged at the 5%-5.25% range on Wednesday, indicated that borrowing costs could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy remains resilient.
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2023-06-15 00:00:00 UTC
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ANALYSIS-Why Walmart's new bet on fashion brands, home decor threatens specialty chains
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AAPL
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https://www.nasdaq.com/articles/analysis-why-walmarts-new-bet-on-fashion-brands-home-decor-threatens-specialty-chains
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By Siddharth Cavale
June 15 (Reuters) - Price-conscious shoppers flock to Walmart Supercenters to pick up $1 potato chips and $3 gallons of milk, but the world's biggest retailer will now try to sell them $298 cozy swivel chairs and $50 Wrangler jeans, too.
Using low-cost and low-margin groceries as a draw, Walmart is adding more than a dozen new lines of pricier, more profitable merchandise including six through partnerships with celebrities like Drew Barrymore and Sofia Vergara.
The company wants to change its image from merely a steep discounter to a destination where customers can also purchase fashionable home goods and clothing.
T-shirts from Reebok, accessories from Justice and men's dress shirts from Chaps are among the national brands Walmart is highlighting in its renovated "Stores of the Future." Most of the goods are priced between $15 and $50, Denise Incandela, vice president of apparel and private brands, disclosed at a June 6 conference with investors.
Walmart historically has marketed mostly its own brand of clothing: basic George t-shirts, shorts and pants, typically priced at $15 or less. But Incandela, a former Saks and Ralph Lauren executive, said Walmart's research showed that 80% of its customers were purchasing higher-priced clothes elsewhere. She told Walmart investors its strategy is to "democratize fashion" or convert the company's core, price-conscious shoppers into style-conscious shoppers.
"It is a huge transformation on the apparel side," she said.
Americans shop for clothing, footwear , chairs and lights from millions of mom-and-pop stores, regional chains and online platforms every day, analyst say, giving no one retailer outsized dominance in the highly fragmented markets for home decor and apparel. But smaller retailers have a hard time competing with Walmart because of its scale and size and its well-known history of squeezing suppliers on prices by promising them volume sales.
Walmart's strategy "is a risk to the market but not a disproportionately larger risk" to bigger retailers like Target or Gap, Rosenblum said. It would probably be the rest of the market that should be worried," he said pointing to apparel retailers such as Carhartt.
Privately held Carhartt does not disclose revenues. Retailers that do, including Tilly's Inc TLYS.N, Abercrombie & Fitch ANF.N and Lands End LE.O, posted declining revenues in the latest year, according to Refinitiv IBES.
Walmart accounts for 4.6% of the $560.4 billion U.S. apparel market, followed by TJX, Target and Ross at 4.4%, 4.1% and 2.8%, respectively, according to GlobalData.
STORES OF THE FUTURE In its "Stores of the Future" drive, Walmart is renovating 700 stores as part of a record $17 capital expenditure plan. By year end it will place its new clothing and home decor in snazzier displays in the revamped facilities.
Walmart's, celebrity collaboration strategy, which was pioneered by rival Target, features women's clothing designed by Brandon Maxwell of the Bravo show "Project Runway" and home organization products developed by Clea Shearer and Joanna Teplin from "The Home Edit" series on Netflix.
Near the front of one remodeled store, Walmart placed a $79 Beautiful by Drew Barrymore air fryer. Close by was a display of $27.50 Sofia Jeans for women, from its collaboration with Vergara, along with Reebok shorts and pullovers.
CFRA research analyst Arun Sundaram said Walmart could pick up sales of home decor following the bankruptcy of Bed Bath and Beyond, and it might gain market share from other clothing chains with inventory gluts.
He expects Walmart to spend $5.7 billion renovating its stores this year, up from $5 billion in 2022 and $3.3 billion in 2021.
Sundaram added that Walmart's opportunistic move to double down on clothing and home goods "made sense" when the economy is slowing and not "when people are buying everything."
Walmart's previous effort to branch into fashion met with failure. In 2017 it challenged online retailer Amazon.com by acquiring upmarket brands Bonobos, ModCloth and Moosejaw, units itsold a few years later at fire sale prices in some cases. In 2005, Walmart's Metro 7 fashion brand tanked and later designer lines with Max Azria and Norma Kamali also withered. The strategy has bombed at some other retailers. J.C. Penney's efforts to attract more affluent shoppers and reduce dependence on coupons alienated its core shoppers and eventually forced the more than a century-old retailer to file for bankruptcy in 2020. The company emerged from bankruptcy a few months later, but as a much smaller entity.
(Reporting by Siddharth Cavale in New York; Editing by Vanessa O'Connell and David Gregorio)
((siddharth.cavale@thomsonreuters.com; Cell: +1 646-288-4330;))
The views and 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 Siddharth Cavale June 15 (Reuters) - Price-conscious shoppers flock to Walmart Supercenters to pick up $1 potato chips and $3 gallons of milk, but the world's biggest retailer will now try to sell them $298 cozy swivel chairs and $50 Wrangler jeans, too. Americans shop for clothing, footwear , chairs and lights from millions of mom-and-pop stores, regional chains and online platforms every day, analyst say, giving no one retailer outsized dominance in the highly fragmented markets for home decor and apparel. CFRA research analyst Arun Sundaram said Walmart could pick up sales of home decor following the bankruptcy of Bed Bath and Beyond, and it might gain market share from other clothing chains with inventory gluts.
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She told Walmart investors its strategy is to "democratize fashion" or convert the company's core, price-conscious shoppers into style-conscious shoppers. Close by was a display of $27.50 Sofia Jeans for women, from its collaboration with Vergara, along with Reebok shorts and pullovers. CFRA research analyst Arun Sundaram said Walmart could pick up sales of home decor following the bankruptcy of Bed Bath and Beyond, and it might gain market share from other clothing chains with inventory gluts.
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Americans shop for clothing, footwear , chairs and lights from millions of mom-and-pop stores, regional chains and online platforms every day, analyst say, giving no one retailer outsized dominance in the highly fragmented markets for home decor and apparel. Walmart's, celebrity collaboration strategy, which was pioneered by rival Target, features women's clothing designed by Brandon Maxwell of the Bravo show "Project Runway" and home organization products developed by Clea Shearer and Joanna Teplin from "The Home Edit" series on Netflix. CFRA research analyst Arun Sundaram said Walmart could pick up sales of home decor following the bankruptcy of Bed Bath and Beyond, and it might gain market share from other clothing chains with inventory gluts.
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The company wants to change its image from merely a steep discounter to a destination where customers can also purchase fashionable home goods and clothing. She told Walmart investors its strategy is to "democratize fashion" or convert the company's core, price-conscious shoppers into style-conscious shoppers. Privately held Carhartt does not disclose revenues.
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15324.0
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2023-06-15 00:00:00 UTC
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First Citizen Bancshares and Icahn have been highlighted as Zacks Bull and Bear of the Day
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https://www.nasdaq.com/articles/first-citizen-bancshares-and-icahn-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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For Immediate Release
Chicago, IL – June 15, 2023 – Zacks Equity Research shares First Citizen’s Bancshares FCNCA as the Bull of the Day and Icahn Enterprises IEP as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, Apple AAPL and Microsoft MSFT.
Here is a synopsis of all five stocks:
Bull of the Day:
Zacks Rank #1 (Strong Buy) stock First Citizen’s Bancshares is a North Carolina-based anomaly in the beaten-down banking sector. Early in the year, the Federal Reserve caught several regional banks off guard by raising interest rates at an unprecedented rate to quell inflation concerns (inflation was at 40-year highs at the time). Though the banking sector normally benefits from higher rates, several banks (particularly regional banks) were caught flat-footed. As Warren Buffett warns, “Only when the tide goes out do you learn who has been swimming naked.” As the contagion spread, several banks, such as Silicon Valley Bank, Signature Bank of New York, and Credit Suisse, began to go under. First Citizen’s Bank did not come out unscathed – from February to March the stock got hammered from $800 to $500.
Silicon Valley Bank Collapse: Crisis Equals Opportunity
What happened next would change the trajectory of the company. As you can see on the chart above, First Citizen’s Bank reversed course and is now at $1285 per share. In late 2022, Silicon Valley Bank, a publicly traded bank from California, began to incur significant losses due to rapid interest rate hikes. To make matters worse, as the name implies, Silicon Valley was heavily reliant on the tech industry for deposits. As the Nasdaq corrected and tech funding dried up, SVB incurred billions in losses. Finally, the FDIC stepped in to remedy the situation. The result? The FDIC sold off SVB’s assets to a variety of banks. With the help of the FDIC, FCNCA purchased more than $100 billion in deposits and more than $70 billion in loans from SVB at a more than $16 billion discount.
By the Numbers
Amidst a troubled banking sector backdrop, First Citizen’s Bank stands alone. FCNCA is dominating its industry from a historical EPS growth rate, projected sales growth, and margins perspective.
Furthermore, analysts believe that the SVB acquisition will be a significant earnings driver. Over the next two quarters, Zacks Consensus Estimates suggest robust triple-digit earning’s growth.
Not only are analysts bullish, they are becoming more bullish by the day. The Zacks Consensus Estimate Trend shows Q1 EPS estimates of 21.78 per share 60 days ago and revised estimates of 47.98 per share now.
Firm Price and Volume Action
In late March, FCNCA gapped higher by more than 50% on volume ~900% above the norm. The flurry of buying pressure is indicative of institutional accumulation. Since the news broke, shares have rallied in a stair-stepping fashion and are consolidating in a tight range – indicating that investors are in no rush to sell shares.
Because stocks tend to leave consolidations in the direction they came into them, the odds favor a trend continuation in shares of FCNCA.
Conclusion
First Citizen’s Bancshares is a rare case of a bank successfully navigating the recent banking crisis. The purchase of Silicon Valley Bank for pennies on the dollar should be a fundamental catalyst for years to come. Furthermore, FCNCA is up 67% year-to-date, while the banking industry is down 15%. This makes one wonder how strong it will be if the banking sector continues to stabilize. Expect shares to be higher over the next 6-12 months.
Bear of the Day:
Zacks Rank #5 (Strong Sell) Icahn Enterprises is a diversified holding company founded and controlled by billionaire Carl Icahn. Icahn Enterprises invests in investment management, metals, real estate, and home fashion companies through its subsidiaries and affiliates. Icahn Enterprises is known for its involvement in corporate governance matters and its efforts to management boards and decisions in the companies it invests in. As the company’s chairman, Carl Icahn plays a key role in setting its investment strategies and overseeing its operations.
Short-Seller Report: Hit Piece or Red Flag?
Last month, Hindenburg Research, a U.S. short-focusedinvestment researchfirm, unveiled a short report thesis on Icahn Enterprises. Shares of IEP swooned immediately following the report, dropping 55% for May on massive volume turnover.
In the short report, Hindenburg Research made bold accusations against IEP, claiming the company is inflating its illiquid private holdings. According to Hindenburg’s research:
· IEP assets trade at a 218% premium to its last reported Net Asset Value (NAV)
· IEP’s premium to NAV is higher than every closed-end fund and double the next highest.
· IEP uses Carl Icahn’s legendary status and a hefty dividend to attract investors. Meanwhile, institutional investors have little to no exposure in the company.
What is Hindenburg’s Track Record?
Because short-focused research shops often release “hit pieces” to manipulate stocks for short-term gains, investors need to be wary of them. However, Hindenburg Research is an exception to this rule. In late 2020, Hindenburg accused EV-maker Nikola of fraud. Since then, the stock has dropped from $50 to $1.
Hindenburg also raised a red flag on the SPAC Clover Health. Like NKLA, CLOV dove and hasn’t looked back since. Most recently, Hindenburg pointed out accounting inconsistencies in Adani – India’s largest company. Since then, certain banks have stopped accepting Adani loans as collateral.
By the Numbers
Whether you agree with Hindenburg’s assessment or not, IEP’s fundamentals are unattractive at this juncture. Since 2018, IEP has posted negative EPS. Compared to its industry, IEP has lower historical EPS growth, projected sales growth, net margin, return on equity, and soaring debt.
Conclusion
With equities in a robust bull market, investors have ample opportunities outside Icahn Enterprises. The inflated NAV, poor fundamentals, and negative headlines should be red flags for prospective investors.
Additional content:
Capitalizing on the Boom in AI Software Development
By the time you are reading this, Apple will have unveiled its new VR/AR headset and the internet will be exploding with reactions.
It will no doubt be an excellent device and, more importantly, it will reveal directions for the mobile dominator's AI strategy.
I've been predicting Apple would own the category where devices and AI meet since 2017.
Wedbush Managing Director Daniel Ives, a Zacks friend and frequent guest on our podcasts, noted last week that all eyes will be on Tim Cook's keynote today to set the tone for developers and announce new products. Ives said Apple is finally set to unveil its mixed reality headset product named Vision Pro with price points in the $3k range running off a new operating system called xrOS.
He acknowledged how important this is since every tech stalwart has announced its own AI strategy with Microsoft and ChatGPT front and center, while Apple has been very quiet and non-existent on this front so far.
Ives believes this is about to change as he is expecting Cook & Co. to discuss Apple's AI strategy looking ahead and how the company can integrate and ultimately monetize its customer base around future generative AI coming from Cupertino.
Wedbush further expects Apple to head down the path to have its own AI driven solution that will be integrated within the Apple ecosystem.
What Hath ChatGPT Wrought?
If you wisely caught my Zacks Confidential article on March 20, you were given much of what you needed to know to assess and capitalize on the revolution.
I told you what was old, what was new, and what mattered for the stocks you could still buy that week, when my 5 recommendations were still trading at levels that could have produced some sizable double-digit gains for investors who followed...
NVDA: $265-270 and now $390
SNPS: $370-375 and now $450
GOOGL: $105 and now $125
SPLK: $90-95 and now $100
PATH: $16-17 and now $19
I wish I could have given you more ideas, including AAPL and MSFT. More on that coming up.
Tech Super Cycle is Alive and Well
I’ve been trying to understand and explain the power of NVIDIA and GPU “massively parallel architectures" since 2016.
And one of my most important Zacks Confidential entries was from December of 2017 where I recommended NVDA shares under $50. But it wasn’t the stock reco that stands out for me.
It was my thesis that I dubbed The Tech Super Cycle to explain why the hyper productivity of advances in semiconductors and software were sustaining a long-term environment of better, faster, cheaper that kept inflation at bay -- despite the zero interest rate Fed policy.
Of course, now that inflation has roared back with a vengeance, some will say I had it all wrong.
I don’t think so. That’s the thing about megatrends driven by technology innovation. They don’t die because of economic catastrophe, wars, pandemics, or bad government policy.
I bring this up today because many investing strategists are very concerned about recession, excessive valuations, and inflation. If you listened to them, you would be selling all your stocks and hunkering down for the apocalypse.
They could be right about reducing exposure in some areas or getting more diversification. But did selling semis or software in the scars of 2018, 2020, or 2022 really help? No way!
Obviously, Wall Street bears on technology are scary because they miss the forest for the trees. The evidence of revenues, profits, and valuations in the past 6 years tell me I was right about the Tech Super Cycle that will carry on through this decade.
The Meaning of NVIDIA Beyond $1 Trillion
It makes me laugh a little to be throwing praise on NVIDIA right now, after the world has discovered this AI juggernaut and all the journos can talk about is that it crossed some apparently magical mark... and now you should buy it.
By now you must be sick of the daily headlines about the company.
Then again, if you've been a steady investor/trader of NVDA shares with me for some time, you probably love it.
So let’s not only bask in the success, let’s keep learning about what is driving it. First up is a check-in with the one place I've been telling you to check-in with at least once a month for the past 5 years: The NVIDIA Newsroom.
Two exciting stories stand out lately...
World's Leading Electronics Manufacturers Adopt NVIDIA Generative AI and Omniverse to Digitalize State-of-the-Art Factories
This one warms my heart because ever since BMW adopted NVIDIA industrial simulation and design technologies -- including the Isaac Robotics platform -- for its new factories in 2018, I have been screaming that this is the future.
Second up is the continuing saga of the highest achievements by NVIDIA engineers that serve society by handing data power-tools to industry, science and medicine...
NVIDIA Announces DGX GH200 AI Supercomputer
New Class of AI Supercomputer Connects 256 Grace Hopper Superchips Into Massive, 1-Exaflop, 144TB GPU for Giant Models Powering Generative AI, Recommender Systems, Data Processing
Recall they built a 5,760 GPU “super” for Tesla a few years ago that handles 1.8 exaflops (a billion billion floating point operations per second) for the exponentially-large parallel data sets in autonomous driving technology.
As I’ve suggested repeatedly since ChatGPT took the world by storm, every corporation, university, and research institution will want this kind of compute power now.
Beth Kindig Does the Math on NVDA > AAPL
Last year I shared the “crazy” view of an independent technology analyst who reasoned that because AI was a bigger megatrend opportunity than mobile, NVDA shares would over-take AAPL shares in this decade.
It’s still hard to wrap your head around -- but then again who predicted Apple would sell more than $75 billion worth of devices every quarter after quarter?
Here’s what Beth Kindig, founder of the I/O Fund and research house, wrote before NVIDIA’s May 24 report...
I've gone on record to say that Nvidia will surpass the valuation of Apple. That particular analysis compared the impact that AI will have to mobile, with AI adding $15 trillion to GDP compared to mobile’s $4.4 trillion. Mobile brought us three FAANGs: Apple, Google and Facebook. It has been my stance for years that AI will bring us a new set of FAANGs, one of which will be Nvidia.
However, now is not the best time to buy the stock. Rather than flatly tell you that while offering no way forward, I want to continue providing value to my readers by discussing when my firm plans to buy the stock again.
But also, we should discuss why the market is rallying on this company specifically. Good investors must do both – understand what makes a company stand out while being patient on price. Nvidia is trading 3X higher than its peers and in some cases 12X higher. I’m not defending this valuation, rather I want to explain how it’s possible that smart money continues to buy up here.
(end of excerpt from the I/O Fund letter)
You know that I have always tried to balance the euphoric valuation vs the tangible risk/reward. And that’s why I’ve done some trading with NVDA shares, getting out with some profits during the bear market and then jumping back in near the lows at $120 when nobody wanted it and Cramer said it was a “short.”
But more importantly I’ve tried to get you to see the paradigm shift that NVIDIA and its CUDA system hardware+software integrated stack represents to not just corporate data centers, but science and humanity overall.
I hope I’ve gotten through with that message over the years.
Besides the powerful medical applications, the next most exciting gold in Jensen Huang’s treasure chest is the potential to inspire millions of kids to be interested in science and math that can change their lives… and the world.
For Investors, It's All About AI-Fueled Software
Despite the bear market which took Software from euphoric 2021 bubble levels to minus 40%, I still firmly believe that nothing changes the world more powerfully than technological innovation.
This has been the case for thousands of years and the only things that have changed are (1) the exponential rate of innovations and (2) their synergistic convergence. In other words, separate technology platforms tend to accentuate and amplify the capabilities of each other, thus creating another layer of force multipliers.
For instance, as semiconductor technology has advanced – and shrunk transistors under 10 nanometers – this innovation combines with cloud/edge data storage and with AI/GPU/deep learning algorithms to create entirely new forms of engineering, materials science, and business intelligence with real-time data analytics, design, and decision making.
The technologies leverage each other simultaneously and synergistically. And I didn’t even mention quantum computing, which is on deck to rip the ceiling off of all of them. I’ll let a technology innovation expert with more experience than I explain.
Here’s how Peter Diamandis, author of The Future is Faster Than You Think, describes “exponential convergence” in a February 2022 blog post...
Accelerating the advancement of exponential technologies is actually old news. So, what’s the new news?
That formerly independent waves of exponentially accelerating technology are beginning to converge with other independent waves of exponentially accelerating technology.
In other words, these waves are starting to overlap—stacking atop one another, producing tsunami-sized behemoths that threaten to wash away (read: “reinvent”) most every industry in their path.
For example, the speed of drug development is accelerating. Not only because biotechnology (sequencing, CRISPR, etc.) is progressing at an exponential rate, but because AI, quantum computing, and other exponentials are converging on the field.
(end of excerpt from Peter’s blog)
Revealed: How Savvy Investors are Profiting from AI Software
It’s hard to escape the buzz surrounding the innovative potential of artificial intelligence. The market for AI and all of its capabilities is beyond measure. AI’s ability to not only enhance but completely alter numerous industries is one of the reasons why investors could capture significant long-term gains.
With this perspective, I am recommending these 3 companies...
Stock #1: A tech titan constantly revolutionizing our world through groundbreaking innovations. They are a true pioneer that’s shaping the future of computing, gaming, and business solutions. It’s one of the few companies in a perfect position to monetize the growing AI wave.
Stock #2: With projected 20% revenue growth next year, this is a company that’s heavily invested in the digital transformation of healthcare. They are at the heart of the industry’s most creative technological advancements. Specializing in cloud-based solutions, this juggernaut spearheads change that could disrupt the entire healthcare landscape.
Stock #3: A global leader in semiconductor design software, this multi-billion-dollar company has formed strategic partnerships with other titans so businesses can shorten design schedules and reduce computation costs. Empowering industries by providing state-of-the-art electronic design automation, it’s a hidden gem primed for massive growth as the world becomes increasingly digital.
Click here for the names of these three stocks >>
But that’s not all.
You’ll also get full 30-day, real-time access to ALL Zacks private buys & sells as part of our celebrated Zacks Ultimate service.
Don't miss your chance to follow our real-time moves from ready-to-fly stocks under $10 to professional options trades… from insider buys to long-term value stocks… from home run investments to income recommendations.
In fact, Zacks Ultimate closed 176 double- and triple-digit gains last year and already 64 more in 2023. Gains reached as high as +244.0%, +348.7% and even +1,007.1%.¹
Your cost for all this is only $1, and there’s not 1 cent of obligation to spend anything more.
Important: The number of investors who will see the three stocks and many others must be limited. Your chance to take full advantage ends at midnight Thursday, June 15.
Click for Revealed: How Savvy Investors are Profiting from AI Software and to start your 30-day Zacks Ultimate $1 trial >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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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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I told you what was old, what was new, and what mattered for the stocks you could still buy that week, when my 5 recommendations were still trading at levels that could have produced some sizable double-digit gains for investors who followed... NVDA: $265-270 and now $390 SNPS: $370-375 and now $450 GOOGL: $105 and now $125 SPLK: $90-95 and now $100 PATH: $16-17 and now $19 I wish I could have given you more ideas, including AAPL and MSFT. In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, Apple AAPL and Microsoft MSFT. Beth Kindig Does the Math on NVDA > AAPL Last year I shared the “crazy” view of an independent technology analyst who reasoned that because AI was a bigger megatrend opportunity than mobile, NVDA shares would over-take AAPL shares in this decade.
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In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, Apple AAPL and Microsoft MSFT. Beth Kindig Does the Math on NVDA > AAPL Last year I shared the “crazy” view of an independent technology analyst who reasoned that because AI was a bigger megatrend opportunity than mobile, NVDA shares would over-take AAPL shares in this decade. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Icahn Enterprises L.P. (IEP) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Beth Kindig Does the Math on NVDA > AAPL Last year I shared the “crazy” view of an independent technology analyst who reasoned that because AI was a bigger megatrend opportunity than mobile, NVDA shares would over-take AAPL shares in this decade. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Icahn Enterprises L.P. (IEP) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, Apple AAPL and Microsoft MSFT.
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In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, Apple AAPL and Microsoft MSFT. I told you what was old, what was new, and what mattered for the stocks you could still buy that week, when my 5 recommendations were still trading at levels that could have produced some sizable double-digit gains for investors who followed... NVDA: $265-270 and now $390 SNPS: $370-375 and now $450 GOOGL: $105 and now $125 SPLK: $90-95 and now $100 PATH: $16-17 and now $19 I wish I could have given you more ideas, including AAPL and MSFT. Beth Kindig Does the Math on NVDA > AAPL Last year I shared the “crazy” view of an independent technology analyst who reasoned that because AI was a bigger megatrend opportunity than mobile, NVDA shares would over-take AAPL shares in this decade.
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15325.0
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2023-06-15 00:00:00 UTC
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Should Engine No. 1 Transform 500 ETF (VOTE) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-engine-no.-1-transform-500-etf-vote-be-on-your-investing-radar-5
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Launched on 06/22/2021, the Engine No. 1 Transform 500 ETF (VOTE) 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 Engine No. 1. It has amassed assets over $479.76 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
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 1.33%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.03% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 26.95% of total assets under management.
Performance and Risk
VOTE seeks to match the performance of the MORNINGSTAR US LARGE CAP SELECT INDEX before fees and expenses. The Morningstar US Large Cap Select Index is market cap-weighted and tracks the 500 largest companies in the US.
The ETF has added roughly 15.41% so far this year and is up about 18.96% in the last one year (as of 06/15/2023). In the past 52-week period, it has traded between $41.43 and $50.93.
The ETF has a beta of 1 and standard deviation of 19.85% for the trailing three-year period. With about 509 holdings, it effectively diversifies company-specific risk.
Alternatives
Engine No. 1 Transform 500 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, VOTE 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 $324.36 billion in assets, SPDR S&P 500 ETF has $415.44 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Engine No. 1 Transform 500 ETF (VOTE): 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 7.03% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 1 Transform 500 ETF (VOTE): 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. 1 Transform 500 ETF (VOTE) 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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1 Transform 500 ETF (VOTE): 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 7.03% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Why Large Cap Blend Large cap companies typically have a market capitalization above $10 billion.
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1 Transform 500 ETF (VOTE): 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 7.03% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 1 Transform 500 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 7.03% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 1 Transform 500 ETF (VOTE): 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. Why Large Cap Blend Large cap companies typically have a market capitalization above $10 billion.
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15326.0
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2023-06-15 00:00:00 UTC
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FOCUS-Google, one of AI’s biggest backers, warns own staff about chatbots
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AAPL
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https://www.nasdaq.com/articles/focus-google-one-of-ais-biggest-backers-warns-own-staff-about-chatbots
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By Jeffrey Dastin and Anna Tong
SAN FRANCISCO, June 15 (Reuters) - Alphabet Inc is cautioning employees about how they use chatbots, including its own Bard, at the same time as it markets the program around the world, four people familiar with the matter told Reuters.
The Google parent has advised employees not to enter its confidential materials into AI chatbots, the people said and the company confirmed, citing long-standing policy on safeguarding information.
The chatbots, among them Bard and ChatGPT, are human-sounding programs that use so-called generative artificial intelligence to hold conversations with users and answer myriad prompts. Human reviewers may read the chats, and researchers found that similar AI could reproduce the data it absorbed during training, creating a leak risk.
Alphabet also alerted its engineers to avoid direct use of computer code that chatbots can generate, some of the people said.
Asked for comment, the company said Bard can make undesired code suggestions, but it helps programmers nonetheless. Google also said it aimed to be transparent about the limitations of its technology.
The concerns show how Google wishes to avoid business harm from software it launched in competition with ChatGPT. At stake in Google’s race against ChatGPT’s backers OpenAI and Microsoft Corp are billions of dollars of investment and still untold advertising and cloud revenue from new AI programs.
Google’s caution also reflects what’s becoming a security standard for corporations, namely to warn personnel about using publicly-available chat programs.
A growing number of businesses around the world have set up guardrails on AI chatbots, among them Samsung , Amazon.com and Deutsche Bank , the companies told Reuters. Apple , which did not return requests for comment, reportedly has as well.
Some 43% of professionals were using ChatGPT or other AI tools as of January, often without telling their bosses, according to a survey of nearly 12,000 respondents including from top U.S.-based companies, done by the networking site Fishbowl.
By February, Google told staff testing Bard before its launch not to give it internal information,
Insider reported
. Now Google is rolling out Bard to more than 180 countries and in 40 languages as a springboard for creativity, and its warnings extend to its code suggestions.
Google told Reuters it has had detailed conversations with Ireland's Data Protection Commission and is addressing regulators' questions, after a Politico report Tuesday that the company was postponing Bard's EU launch this week pending more information about the chatbot's impact on privacy.
WORRIES ABOUT SENSITIVE INFORMATION
Such technology can draft emails, documents, even software itself, promising to vastly speed up tasks. Included in this content, however, can be misinformation, sensitive data or even copyrighted passages from a “Harry Potter” novel.
A Google privacy notice updated on June 1 also states: "Don’t include confidential or sensitive information in your Bard conversations."
Some companies have developed software to address such concerns. For instance, Cloudflare , which defends websites against cyberattacks and offers other cloud services, is marketing a capability for businesses to tag and restrict some data from flowing externally.
Google and Microsoft also are offering conversational tools to business customers that will come with a higher price tag but refrain from absorbing data into public AI models. The default setting in Bard and ChatGPT is to save users' conversation history, which users can opt to delete.
It "makes sense" that companies would not want their staff to use public chatbots for work, said Yusuf Mehdi, Microsoft's consumer chief marketing officer.
"Companies are taking a duly conservative standpoint," said Mehdi, explaining how Microsoft's free Bing chatbot compares with its enterprise software. "There, our policies are much more strict."
Microsoft declined to comment on whether it has a blanket ban on staff entering confidential information into public AI programs, including its own, though a different executive there told Reuters he personally restricted his use.
Matthew Prince, CEO of Cloudflare, said that typing confidential matters into chatbots was like "turning a bunch of PhD students loose in all of your private records."
Microsoft beefs up ChatGPT and Bing in wide-ranging AI product launch
Google expected to unveil its answer to Microsoft's AI search challenge
MEDIA-Google forced to postpone Bard chatbot’s EU launch over privacy concerns - Politico
Top AI CEOs, experts raise 'risk of extinction' from AI
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting By Jeffrey Dastin and Anna Tong in San Francisco Editing by Kenneth Li and Nick Zieminski) ((Jeffrey.Dastin@thomsonreuters.com; +1 424 434 7548;)) Keywords: ALPHABET AI/CONFIDENTIAL (FOCUS, PIX)
The views and 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 Google parent has advised employees not to enter its confidential materials into AI chatbots, the people said and the company confirmed, citing long-standing policy on safeguarding information. Google told Reuters it has had detailed conversations with Ireland's Data Protection Commission and is addressing regulators' questions, after a Politico report Tuesday that the company was postponing Bard's EU launch this week pending more information about the chatbot's impact on privacy. Microsoft declined to comment on whether it has a blanket ban on staff entering confidential information into public AI programs, including its own, though a different executive there told Reuters he personally restricted his use.
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By Jeffrey Dastin and Anna Tong SAN FRANCISCO, June 15 (Reuters) - Alphabet Inc is cautioning employees about how they use chatbots, including its own Bard, at the same time as it markets the program around the world, four people familiar with the matter told Reuters. Microsoft declined to comment on whether it has a blanket ban on staff entering confidential information into public AI programs, including its own, though a different executive there told Reuters he personally restricted his use. Microsoft beefs up ChatGPT and Bing in wide-ranging AI product launch Google expected to unveil its answer to Microsoft's AI search challenge MEDIA-Google forced to postpone Bard chatbot’s EU launch over privacy concerns - Politico Top AI CEOs, experts raise 'risk of extinction' from AI ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting By Jeffrey Dastin and Anna Tong in San Francisco Editing by Kenneth Li and Nick Zieminski) ((Jeffrey.Dastin@thomsonreuters.com; +1 424 434 7548;)) Keywords: ALPHABET AI/CONFIDENTIAL (FOCUS, PIX) The views and 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 Jeffrey Dastin and Anna Tong SAN FRANCISCO, June 15 (Reuters) - Alphabet Inc is cautioning employees about how they use chatbots, including its own Bard, at the same time as it markets the program around the world, four people familiar with the matter told Reuters. Google told Reuters it has had detailed conversations with Ireland's Data Protection Commission and is addressing regulators' questions, after a Politico report Tuesday that the company was postponing Bard's EU launch this week pending more information about the chatbot's impact on privacy. Microsoft beefs up ChatGPT and Bing in wide-ranging AI product launch Google expected to unveil its answer to Microsoft's AI search challenge MEDIA-Google forced to postpone Bard chatbot’s EU launch over privacy concerns - Politico Top AI CEOs, experts raise 'risk of extinction' from AI ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting By Jeffrey Dastin and Anna Tong in San Francisco Editing by Kenneth Li and Nick Zieminski) ((Jeffrey.Dastin@thomsonreuters.com; +1 424 434 7548;)) Keywords: ALPHABET AI/CONFIDENTIAL (FOCUS, PIX) The views and 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 Jeffrey Dastin and Anna Tong SAN FRANCISCO, June 15 (Reuters) - Alphabet Inc is cautioning employees about how they use chatbots, including its own Bard, at the same time as it markets the program around the world, four people familiar with the matter told Reuters. Google and Microsoft also are offering conversational tools to business customers that will come with a higher price tag but refrain from absorbing data into public AI models. Microsoft declined to comment on whether it has a blanket ban on staff entering confidential information into public AI programs, including its own, though a different executive there told Reuters he personally restricted his use.
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15327.0
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2023-06-15 00:00:00 UTC
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Is Unity the Big Winner From Apple Vision Pro?
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https://www.nasdaq.com/articles/is-unity-the-big-winner-from-apple-vision-pro
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Unity (NYSE: U) has been seen as one of the big winners from Apple's (NASDAQ: AAPL) virtual reality (VR) announcement last week. As a development partner, it could be a winner in the long term. In the video below, Travis Hoium highlights why investors should temper their expectations for Unity's VR growth.
*Stock prices used were end-of-day prices of June 9, 2023. The video was published on June 12, 2023.
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 12, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Unity Software. 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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Unity (NYSE: U) has been seen as one of the big winners from Apple's (NASDAQ: AAPL) virtual reality (VR) announcement last week. In the video below, Travis Hoium highlights why investors should temper their expectations for Unity's VR growth. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Unity (NYSE: U) has been seen as one of the big winners from Apple's (NASDAQ: AAPL) virtual reality (VR) announcement last week. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple and Unity Software.
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Unity (NYSE: U) has been seen as one of the big winners from Apple's (NASDAQ: AAPL) virtual reality (VR) announcement last week. 10 stocks we like better than Unity Software When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Unity (NYSE: U) has been seen as one of the big winners from Apple's (NASDAQ: AAPL) virtual reality (VR) announcement last week. In the video below, Travis Hoium highlights why investors should temper their expectations for Unity's VR growth. * 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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15328.0
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2023-06-15 00:00:00 UTC
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Is Meta Still a Buy After Apple’s Vision Pro Launch?
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https://www.nasdaq.com/articles/is-meta-still-a-buy-after-apples-vision-pro-launch
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Having endured not a small amount of ridicule for their pivot towards, and investment in, the metaverse, Meta Inc (NASDAQ: META) has had to watch Apple Inc (NASDAQ: AAPL) take its first step in that direction to immediate acclaim. The latter’s launch last week of their mixed reality headset, named the Vision Pro, couldn’t have gone any better in terms of industry feedback and stock reaction.
In fact, it was so good that Apple shares notched a fresh all-time high. This was their first since January 2022, and it caps a stunning comeback which has Apple being the first major tech company to completely reverse and undo the damage of the past 1-2 years.
So for those of us with an interest in or a soft spot for Meta, does this mean we should be switching allegiances? We here at MarketBeat think not. While Apple is clearly onto a good thing right now, there’s a ton of upside still to be realized in Meta shares that makes them a compelling buy. Let’s take a look at some of the reasons why.
Meta Year Of Efficiency
In what was one of the more brutal sell-offs among all the tech titans, Meta shares dropped more than 75% in a year or so through last October. Plummeting ad revenue and decelerating engagement were just two key metrics that sent them at one point back to 2015 levels. But like any company worth its salt, Zuckerberg and Co used this wake-up call to make Meta leaner and more primed for growth than ever before.
It didn’t make for pretty reading, but laying off around 20,000 employees has had a tangible effect already on their operational efficiency. It was felt at one point that the company had become bloated and was operating at only half its potential effectiveness. Considering how shares have performed amidst the layoffs in recent months, it’s clear investors are buying into the efficiency targets.
Meta shares are up an astounding 200% since November, with most of those gains coming since January. In fact, over that time frame, they’ve outperformed both the S&P 500 index (up 14%) and Apple (up 47%), showing just how potent an effect the company’s changes have had.
Additional headwinds that spooked investors and weighed on the stock last year have almost been addressed and, for the most part, have run their course. These include Apple’s ad tracking changes, adverse FX moves, and its Reel monetization plans. The team over at Loop Capital felt these three factors alone added up to a mid-teens percentage headwind to revenue growth last year, and with them mostly dissipated now, they have a hefty price target of $320 for Meta stock. Even with the strong first half of the year that Meta shares have enjoyed, that’s still pointing to an additional upside of about 20% from where shares closed last night.
Meta Turnaround Story
Additional tailwinds are appearing in the form of the company’s use of AI, which will improve user engagement and, ultimately, monetization. There’s also the fact that with inflation readings continuing to cool, spending-related pressures which hurt their ad revenue are also being lifted, so investors are looking for improved numbers in that regard in the coming quarters. There’s a real sense that Meta has weathered the worst of it and is starting to come out the other side.
The company will be launching fresh hardware in the fall that will compete more closely with Apple’s Vision Pro, and the market’s feedback on this will be a critical turning point. In the meantime, though, Meta has done everything the market has asked of them, with KeyBanc and Morgan Stanley also weighing in from the bull’s corner in recent months in light of their drive for efficiency. There’s a little more than a month to go before Meta’s next earnings report. We expect shares to continue gaining momentum in the meantime. If the numbers from that confirm the turnaround story that we expect is happening, then Meta could quickly become the second big tech titan to once again be hitting fresh all-time highs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Having endured not a small amount of ridicule for their pivot towards, and investment in, the metaverse, Meta Inc (NASDAQ: META) has had to watch Apple Inc (NASDAQ: AAPL) take its first step in that direction to immediate acclaim. The team over at Loop Capital felt these three factors alone added up to a mid-teens percentage headwind to revenue growth last year, and with them mostly dissipated now, they have a hefty price target of $320 for Meta stock. There’s also the fact that with inflation readings continuing to cool, spending-related pressures which hurt their ad revenue are also being lifted, so investors are looking for improved numbers in that regard in the coming quarters.
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Having endured not a small amount of ridicule for their pivot towards, and investment in, the metaverse, Meta Inc (NASDAQ: META) has had to watch Apple Inc (NASDAQ: AAPL) take its first step in that direction to immediate acclaim. In fact, it was so good that Apple shares notched a fresh all-time high. Meta Year Of Efficiency In what was one of the more brutal sell-offs among all the tech titans, Meta shares dropped more than 75% in a year or so through last October.
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Having endured not a small amount of ridicule for their pivot towards, and investment in, the metaverse, Meta Inc (NASDAQ: META) has had to watch Apple Inc (NASDAQ: AAPL) take its first step in that direction to immediate acclaim. Meta Year Of Efficiency In what was one of the more brutal sell-offs among all the tech titans, Meta shares dropped more than 75% in a year or so through last October. Even with the strong first half of the year that Meta shares have enjoyed, that’s still pointing to an additional upside of about 20% from where shares closed last night.
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Having endured not a small amount of ridicule for their pivot towards, and investment in, the metaverse, Meta Inc (NASDAQ: META) has had to watch Apple Inc (NASDAQ: AAPL) take its first step in that direction to immediate acclaim. It was felt at one point that the company had become bloated and was operating at only half its potential effectiveness. Even with the strong first half of the year that Meta shares have enjoyed, that’s still pointing to an additional upside of about 20% from where shares closed last night.
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15329.0
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2023-06-15 00:00:00 UTC
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US STOCKS-Futures falter as Fed forecasts further rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-falter-as-fed-forecasts-further-rate-hikes
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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.
Focus on retail sales, jobless claims data
China ADRs climb on more rate cuts
Kohls up after TD Cowen upgrade
Futures down: Dow 0.23%, S&P 0.41%, Nasdaq 0.70%
Updated at 7:23 a.m. ET (1123 GMT
June 15 (Reuters) - U.S. stock index futures fell on Thursday as the Federal Reserve signaled that borrowing costs could increase further this year after it skipped raising them in its latest meeting.
The Fed left rates unchanged at the 5%-5.25% range on Wednesday, but indicated they could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
Traders see a 72% chance of a 25-basis-point rate hike in July, up from around 60% a day earlier, according to the CME Fedwatch tool.
"Powell expressed that the committee seemed surprised about the resilience of current inflation even if Tuesday's CPI print showed a continued slowing in the headline inflation rate," said Charles Hepworth, investment director at GAM Investments.
"Admitting to being surprised that the Fed's policy to date hasn't cooled a hot jobs market is basically signaling higher rates are indeed even more necessary and can be withstood by the economy as it glides (to) a soft landing."
The S&P 500 .SPX and Nasdaq .IXIC rose for a fifth consecutive session on Wednesday, while the Dow .DJI ended down following the Fed decision.
Market heavyweights Apple AAPL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.4% and 1.5% in premarket trading as government bond yields continued to rise. US/
Shares of Tesla TSLA.O dipped 3.1%. The stock snapped a record 13-day streak of gains in the previous session.
At 7:23 a.m. ET, Dow e-minis 1YMcv1 were down 78 points, or 0.23%, S&P 500 e-minis EScv1 were down 18.25 points, or 0.41%, and Nasdaq 100 e-minis NQcv1 were down 107 points, or 0.7%.
Investors awaited a slew of economic data later in the day, including the initial jobless claims for the week ended June 10 and retail sales for May due at 8:30 a.m. ET.
Kohls Corp KSS.N added 1.7% after TD Cowen upgraded the department store operator to "outperform" from "market perform".
U.S.-listed shares of Chinese companies such as Alibaba Group BABA.N and JD.com JD.O rose almost 2% after the People's Bank of China cut the borrowing cost for its medium-term policy loans for the first time in 10 months.
(Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@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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Market heavyweights Apple AAPL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.4% and 1.5% in premarket trading as government bond yields continued to rise. Focus on retail sales, jobless claims data China ADRs climb on more rate cuts Kohls up after TD Cowen upgrade Futures down: Dow 0.23%, S&P 0.41%, Nasdaq 0.70% Updated at 7:23 a.m. ET (1123 GMT June 15 (Reuters) - U.S. stock index futures fell on Thursday as the Federal Reserve signaled that borrowing costs could increase further this year after it skipped raising them in its latest meeting.
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Market heavyweights Apple AAPL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.4% and 1.5% in premarket trading as government bond yields continued to rise. Focus on retail sales, jobless claims data China ADRs climb on more rate cuts Kohls up after TD Cowen upgrade Futures down: Dow 0.23%, S&P 0.41%, Nasdaq 0.70% Updated at 7:23 a.m. ET (1123 GMT June 15 (Reuters) - U.S. stock index futures fell on Thursday as the Federal Reserve signaled that borrowing costs could increase further this year after it skipped raising them in its latest meeting.
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Market heavyweights Apple AAPL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.4% and 1.5% in premarket trading as government bond yields continued to rise. Focus on retail sales, jobless claims data China ADRs climb on more rate cuts Kohls up after TD Cowen upgrade Futures down: Dow 0.23%, S&P 0.41%, Nasdaq 0.70% Updated at 7:23 a.m. The Fed left rates unchanged at the 5%-5.25% range on Wednesday, but indicated they could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
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Market heavyweights Apple AAPL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.4% and 1.5% in premarket trading as government bond yields continued to rise. Focus on retail sales, jobless claims data China ADRs climb on more rate cuts Kohls up after TD Cowen upgrade Futures down: Dow 0.23%, S&P 0.41%, Nasdaq 0.70% Updated at 7:23 a.m. The Fed left rates unchanged at the 5%-5.25% range on Wednesday, but indicated they could rise by at least half a percentage point this year as inflation remains stubbornly persistent and the U.S. economy stays resilient.
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15330.0
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2023-06-15 00:00:00 UTC
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3 Dividend Growers That May Be Undervalued Gems
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AAPL
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https://www.nasdaq.com/articles/3-dividend-growers-that-may-be-undervalued-gems
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nan
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nan
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Comcast Corp. (NASDAQ: CMCSA), Qualcomm Inc. (NASDAQ: QCOM) and Williams-Sonoma Inc. (NYSE: WSM) hail from very different industries, but the three stocks have one thing in common: All are dividend payers that could be considered undervalued, relative to their future potential.
A stock may be considered undervalued for various reasons. For starters, fundamental analysis may reveal that the stock's current price is lower than its intrinsic value. That refers to factors including earnings and revenue potential, as well as cash flow projections.
Additionally, if market sentiment or short-term factors have suppressed a stock's price, it could present an attractive entry point. For example, small- and mid-cap bank stocks were sold off hard in March and April, before beginning to rally in mid-May, as concerns about a banking crisis eased.
Finally, a stock may be overlooked or underfollowed by analysts or investors. That’s especially true of small- and mid-cap stocks, or even large caps in slower-growth, unglamorous or out-of-favor industries. When big investors and analysts pay scant attention to a stock, it may result in mispricings that can benefit retail investors.
Here’s a look at three stocks that may have room to run, as bargain-shopping investors realize their potential.
Comcast
Comcast’s annualized dividend per share is $1.16, for a yield of 2.92%, according to MarketBeat’s Comcast dividend data.
The company has a 16-year track record of increasing its dividend.
While many consumers associate Comcast with their Xfinity cable package, the company also owns NBCUniversal, whose properties include NBC, Telemundo, CNBC, USA Network, MSNBC, Oxygen, Bravo, Syfy, E!, Universal Pictures, Peacock, Universal Parks & Resorts and DreamWorks Animation, among others.
Analysts see earnings flat this year, but increasing by 12% in 2024.
Bank of America upgraded the stock on May 1, saying it found valuations “undemanding,” meaning it sees upside potential relative to where the stock is currently trading.
B of A also noted that Comcast also maintains a strong balance sheet, and the company may benefit from a planned sale of its stake in streamer Hulu to The Walt Disney Co. (NYSE: DIS) in early 2024.
The stock has been forming a flat base below a buy point of $42.10. You can see that formation on the Comcast chart.
Qualcomm
San Diego-based Qualcomm makes semiconductors and other gear used in smartphones and other devices. As smartphone sales are slowing, for numerous reasons, Qualcomm’s stock has been hit especially hard. A dispute with major customer Apple Inc. (NASDAQ: AAPL) and investors’ fears that Qualcomm would lose that business didn’t help.
A 20.86% rally in the past month has resulted in a year-to-date gain of 14.59%, even as the stock continues to work its way out of a cup-shaped pattern that’s part of a larger downtrend. The stock’s current buy point is above $139.94.
Qualcomm’s dividend data show that the company’s annual dividend per share is $3.20, and the yield is 2.62%. The company has increased its dividend for 21 years.
Morningstar analyst Brian Colello says he expects the chipmaker to retain its leadership in the areas of 5G and lower frequency bands. He wrote, “Apple’s decision to build its own baseband chips, or modems, to displace Qualcomm should be a medium- to long-term headwind, but not a death blow, especially as Qualcomm is poised to grow in automotive and Internet of Things semiconductors.”
Williams-Sonoma
You may be familiar with Williams-Sonoma’s stores located in upscale shopping areas, but the company actually operates on what it calls a “digital-first, design-led” strategy. According to the most recent annual report, “Our e-commerce channel has been our fastest-growing business over the last several years and represented more than 66% of our net revenues and profits in fiscal 2022.”
The digital strategy is clearly paying off, as other home goods retailers whose primary business relies on walk-in traffic, struggle.
The Willams-Sonoma dividend yield is 2.85%, and the annualized dividend per share is $3.60.
The company has increased its dividend for 17 years in a row. That kind of longevity also tells you that the company has been consistently profitable, which is a sign of an efficiently run operation.
Williams-Sonoma’s P/E ratio is 8, which is in line with many of its peers in the home furnishings and home goods retail segment.
Williams-Sonoma analyst ratings show a consensus view of “hold.”
The views and 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 dispute with major customer Apple Inc. (NASDAQ: AAPL) and investors’ fears that Qualcomm would lose that business didn’t help. B of A also noted that Comcast also maintains a strong balance sheet, and the company may benefit from a planned sale of its stake in streamer Hulu to The Walt Disney Co. (NYSE: DIS) in early 2024. A 20.86% rally in the past month has resulted in a year-to-date gain of 14.59%, even as the stock continues to work its way out of a cup-shaped pattern that’s part of a larger downtrend.
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A dispute with major customer Apple Inc. (NASDAQ: AAPL) and investors’ fears that Qualcomm would lose that business didn’t help. Comcast Corp. (NASDAQ: CMCSA), Qualcomm Inc. (NASDAQ: QCOM) and Williams-Sonoma Inc. (NYSE: WSM) hail from very different industries, but the three stocks have one thing in common: All are dividend payers that could be considered undervalued, relative to their future potential. That refers to factors including earnings and revenue potential, as well as cash flow projections.
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A dispute with major customer Apple Inc. (NASDAQ: AAPL) and investors’ fears that Qualcomm would lose that business didn’t help. Comcast Corp. (NASDAQ: CMCSA), Qualcomm Inc. (NASDAQ: QCOM) and Williams-Sonoma Inc. (NYSE: WSM) hail from very different industries, but the three stocks have one thing in common: All are dividend payers that could be considered undervalued, relative to their future potential. Comcast Comcast’s annualized dividend per share is $1.16, for a yield of 2.92%, according to MarketBeat’s Comcast dividend data.
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A dispute with major customer Apple Inc. (NASDAQ: AAPL) and investors’ fears that Qualcomm would lose that business didn’t help. Comcast Corp. (NASDAQ: CMCSA), Qualcomm Inc. (NASDAQ: QCOM) and Williams-Sonoma Inc. (NYSE: WSM) hail from very different industries, but the three stocks have one thing in common: All are dividend payers that could be considered undervalued, relative to their future potential. Comcast Comcast’s annualized dividend per share is $1.16, for a yield of 2.92%, according to MarketBeat’s Comcast dividend data.
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15331.0
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2023-06-15 00:00:00 UTC
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Why Amazon, Apple, and Costco Are No-Brainer Buys Right Now.
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AAPL
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https://www.nasdaq.com/articles/why-amazon-apple-and-costco-are-no-brainer-buys-right-now.
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nan
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nan
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There are still some negative headlines these days, mostly about the possibility of a recession. But with inflation showing some signs of cooling down, and the stock market in bull market territory, there is certainly some optimism as well. Regardless of your perspective, seeking out quality investments is always a good idea, no matter what's going on in the economy.
If you're looking for stocks that are no-brainer buys right now, then consider Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Costco (NASDAQ: COST) as top businesses to add to your portfolio. Here's why they are wonderful holdings during a time like now.
Amazon has multiple growth engines
With its exposure to multiple fast-growing sectors, Amazon still has lots of potential, even though it's already so massive. Online shopping is the biggest aspect of the overall business, and Amazon has a commanding lead in the U.S. But with e-commerce penetration at less than one-fifth of total retail sales in the U.S., there is undoubtedly lots of room for expansion.
I'm sure investors are familiar with Amazon Web Services, the leading cloud infrastructure and platform services provider. This segment generated revenue of $21.4 billion in the latest quarter, up 16% year over year, and posted an operating margin of 24%. The cloud market will continue growing rapidly in the decade ahead.
Amazon also has its hands in digital advertising, which increased sales 23% in the most recent quarter. The digital ads segment continues to gain share and pick away at the dominance of Alphabet and Meta Platforms.
As of this writing, Amazon shares are down 32% from their all-time high. This discount provides investors with an attractive valuation, with the stock trading at a price-to-sales ratio of 2.5, well below its trailing five-year average. Paying that price for this high-quality business is an easy decision.
Apple's loyal customers are an asset
Anytime a company has such a fanatical customer base the way Apple does, investors are smart to take a closer look. A seamless, beautiful, and superior product and service offering has resulted in incredible profitability for Apple. Its gross margin has averaged 40% over the past five years. And free cash flow (FCF) totaled a whopping $111 billion in fiscal 2022, equaling 28% of revenue. This affords Apple the ability to repurchase an insane amount of its stock each quarter, boosting earnings per share.
Apple reported having more than 2 billion installed and active devices worldwide, and the business has done a great job of better monetizing this penetration. The company's Services segment, which houses offerings like Pay, TV+, Music, App Store, and iCloud, generates additional high-margin sales.
With the constant upgrades of existing hardware, plus the introduction of new products, like its recently announced mixed-reality headset and maybe even an automobile in the future, Apple is poised to continue expanding its reach and finding ways to keep users engaged in its vast ecosystem. This can support even more revenue, profit, and FCF going forward.
Costco's value proposition is unmatched
Last on this list is none other than warehouse retailer Costco. Like Amazon and Apple, this business is a favorite among consumers. That's because Costco, with its 852 stores globally, is known for having some of the lowest prices around for a wide product assortment that ranges from groceries and gas to electronics and jewelry. The typical markup on items at Costco is far below what you'd see at other big box retailers. Customers certainly find value in this, especially at a time of elevated, albeit decreasing, levels of inflation.
A key feature of Costco's business is that it's a membership-based model. Customers must pay an annual fee of $60 for a basic plan that gives them the ability to be shoppers. The renewal rate during the latest fiscal quarter (ended May 7) was an outstanding 92.6% in the U.S. and Canada. This drives stickiness and repeat purchase behavior, something any retailer would want.
Costco's CFO Richard Galanti mentioned on a previous earnings call that the company would raise the prices on its membership soon. The last time this happened was in June 2017. Because memberships are such an important income driver for the overall business, investors have been waiting for this to happen, as it could provide a significant boost to Costco's bottom line.
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 5, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Neil Patel has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you're looking for stocks that are no-brainer buys right now, then consider Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Costco (NASDAQ: COST) as top businesses to add to your portfolio. The company's Services segment, which houses offerings like Pay, TV+, Music, App Store, and iCloud, generates additional high-margin sales. With the constant upgrades of existing hardware, plus the introduction of new products, like its recently announced mixed-reality headset and maybe even an automobile in the future, Apple is poised to continue expanding its reach and finding ways to keep users engaged in its vast ecosystem.
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If you're looking for stocks that are no-brainer buys right now, then consider Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Costco (NASDAQ: COST) as top businesses to add to your portfolio. This segment generated revenue of $21.4 billion in the latest quarter, up 16% year over year, and posted an operating margin of 24%. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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If you're looking for stocks that are no-brainer buys right now, then consider Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Costco (NASDAQ: COST) as top businesses to add to your portfolio. See the 10 stocks *Stock Advisor returns as of June 5, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, and Meta Platforms.
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If you're looking for stocks that are no-brainer buys right now, then consider Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Costco (NASDAQ: COST) as top businesses to add to your portfolio. I'm sure investors are familiar with Amazon Web Services, the leading cloud infrastructure and platform services provider. This segment generated revenue of $21.4 billion in the latest quarter, up 16% year over year, and posted an operating margin of 24%.
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15332.0
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2023-06-14 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, UnitedHealth, Eli Lilly, Walmart and Becton, Dickinson
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-unitedhealth-eli-lilly-walmart-and-becton
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nan
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For Immediate Release
Chicago, IL – June 14, 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: Apple Inc. AAPL, UnitedHealth Group Incorporated UNH, Eli Lilly and Company LLY, Walmart Inc. WMT and Becton, Dickinson and Company BDX.
Here are highlights from Tuesday’s Analyst Blog:
Top Stock Reports for Apple, UnitedHealth & Eli Lilly
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., UnitedHealth Group Incorporated and Eli Lilly and Company. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares have outperformed the Zacks Tech sector (+40.4% vs. +34.9%) as well as the broader market (+40.4% vs. +14.1%) this year. The company is benefiting from steady demand for iPhone 14 and 14 Plus as well as expanding footprint in emerging markets. Growing services subscriber base and improving customer engagement are tailwinds for the services business.
Apple is expanding service offerings with the new features and enhancements in its upcoming iOS 17, iPadOS 17, macOS Sonoma, watchOS 10, and tvOS 17. Expanding content on Apple TV+ bodes well for Apple. Growing footprint in enterprise market is encouraging.
However, services’ revenue growth in the fiscal third quarter is expected to be similar to the fiscal second quarter. Apple expects services to be negatively impacted by challenging macroeconomic conditions, as well as continued weakness in digital advertising and mobile gaming.
(You can read the full research report on Apple here >>>)
Shares of UnitedHealth have gained +8.2% over the past year against the Zacks Medical - HMOs industry’s gain of +10.0%. Company’s top line remains well-poised for growth on the back of a strong market position, new deals, renewed agreements, and expansion of service offerings.
The Zacks analyst expect the top line to grow 11.1% year over year in 2023. Its solid health services segment provides diversification benefits. The Government business remains well-poised for growth. A sturdy balance sheet enables business investments and prudent deployment of capital.
However, membership in its global business continues to decline. High operating costs are hurting margins. As such, the stock warrants a cautious stance.
(You can read the full research report on UnitedHealth here >>>)
Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+55.0% vs. +19.1%). The company boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Trulicity, Taltz and others. It is regularly adding promising new pipeline assets through business development deals.
Lilly expects to launch four new medicines by 2023 end with Mounjaro for type II diabetes and cancer drug Jaypirca already launched. Mounjaro sales are already benefiting from strong demand trends.
However, the CRL for donanemab will probably delay the potential launch of the candidate. Generic competition for several drugs, rising pricing pressure in the United States and some international markets are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Other noteworthy reports we are featuring today include Walmart Inc. and Becton, Dickinson and Company.
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Zacks Investment Research
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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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : 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: Apple Inc. AAPL, UnitedHealth Group Incorporated UNH, Eli Lilly and Company LLY, Walmart Inc. WMT and Becton, Dickinson and Company BDX. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple expects services to be negatively impacted by challenging macroeconomic conditions, as well as continued weakness in digital advertising and mobile gaming.
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Stocks recently featured in the blog include: Apple Inc. AAPL, UnitedHealth Group Incorporated UNH, Eli Lilly and Company LLY, Walmart Inc. WMT and Becton, Dickinson and Company BDX. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., UnitedHealth Group Incorporated and Eli Lilly and Company.
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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 Walmart Inc. (WMT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, UnitedHealth Group Incorporated UNH, Eli Lilly and Company LLY, Walmart Inc. WMT and Becton, Dickinson and Company BDX. Here are highlights from Tuesday’s Analyst Blog: Top Stock Reports for Apple, UnitedHealth & Eli Lilly The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Apple Inc. AAPL, UnitedHealth Group Incorporated UNH, Eli Lilly and Company LLY, Walmart Inc. WMT and Becton, Dickinson and Company BDX. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Tuesday’s Analyst Blog: Top Stock Reports for Apple, UnitedHealth & Eli Lilly The Zacks Research Daily presents the best research output of our analyst team.
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15333.0
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2023-06-14 00:00:00 UTC
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Investing in Apple’s (NASDAQ:AAPL) Ecosystem: 3 Stocks Helping Shape Tech’s Future
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AAPL
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https://www.nasdaq.com/articles/investing-in-apples-nasdaq%3Aaapl-ecosystem%3A-3-stocks-helping-shape-techs-future
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nan
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nan
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Apple (NASDAQ:AAPL) has been on an unbelievable run since bottoming out earlier this year. Though UBS slapped the stock with a downgrade as shares flirted with new highs, I do think it's never a good idea to bet against CEO Tim Cook. Apple continues to evolve in Cook's hands, with a booming services business that's grown by leaps and bounds and an incredible new product category that aims to bring AR (augmented reality) technology to new levels.
In this piece, we'll look at three ways to ride Apple's coattails as it becomes a $3 trillion behemoth. Let's make use of TipRanks' Comparison Tool to check in with three stocks (including Apple) to benefit as Apple extends its dominance into new markets.
Goldman Sachs (NYSE:GS)
Goldman Sachs is a long-time investment bank that teamed up with Apple a few years ago to help launch the Apple Card. As Apple looks to expand upon its financial technology offerings, Goldman could play a key role in helping the tech giant on the financial side of things.
Now, Goldman has had less-than-stellar results with its own consumer banking push. Eventually, CEO David Solomon stated his company "tried to do too much too quickly," As it turned out, consumer banking isn't too simple to break into, even with a strong brand and a rich history on the investment-banking side.
However, with a mutually-beneficial relationship with tech titan Apple, I do think Goldman stands to benefit quite a bit as Apple gets even more serious about its fintech ambitions. For this reason, I'm staying bullish on Goldman.
Apple's move into high-interest savings accounts could disrupt the consumer banking industry as we know it. A 4.15% rate on deposits is just too good a deal for Apple users to pass up. Thanks to a bit of help from Goldman and a massive ecosystem of loyal customers, I do think Apple's push to become a neobank will be a profound success. Still, don't count on Apple to "rush" into the space, as Goldman may have done when it decided to enter consumer banking back in 2016. In a way, Apple may have learned from the missteps of its big-finance partner.
Looking ahead, I'd look for the Apple-Goldman relationship to continue as the bank looks to offer even more services. With Apple on its side, I'd say Goldman is on the right track as it looks to expand beyond investment banking and wealth management.
What is the Price Target for GS Stock?
Goldman Sachs is a Strong Buy based on 12 Buys and two Holds. Further, the average GS stock price target of $406.29 implies 20.1% upside potential.
Walt Disney (NYSE:DIS)
Disney CEO Bob Iger made a surprise appearance during Apple's latest WWDC keynote. Iger announced the intention to bring the magic of Disney over to Apple's spatial computer (or headset) in the Apple Vision Pro. Even before the announcement, the rumor mill (and an analyst) has been looking for Apple to acquire Disney outright. Disney stock has been one of the biggest laggards in the Dow, and Iger hasn't really been able to capture the enthusiasm of fed-up investors.
With Disney+ coming to Apple Vision Pro and other impressive experiences (perhaps a fully-immersive VR content from National Geographic, Star Wars, and Marvel) that could be in store, I'd look for Disney+ to finally have an edge over peers in the streaming space. For now, I'm staying bullish.
Currently, I think Disney has a lot to gain, perhaps more than Apple, as it embraces new frontiers with Apple's revolutionary AR tech.
For now, investors aren't too excited about the Disney-Apple pair as they venture into the spatial worlds of tomorrow, but I believe they should be. Disney stock trades at $92 and change per share, quite close to 52-week low. As Apple Vision Pro goes for sale next year, while Disney gets to work on AR/VR types of experiences, look for DIS stock to make up for lost time.
What is the Price Target for DIS Stock?
Disney stock has a Strong Buy rating, with 13 Buys and four Holds assigned in the past three months. The average DIS stock price target of $122.69 entails a juicy 32.7% gain from here. Perhaps working with Apple could help fuel a rally in the stock.
Apple (NASDAQ:AAPL)
It was an exciting time for Apple earlier this month as it pulled the curtain on its much-awaited headset, the Apple Vision Pro. As impressive as the hardware, design, and capabilities were, many Apple fans suffered from a bit of sticker shock when the steep $3,499 price tag was announced. Understandably, it's not a cheap device. That said, I still believe it will be a success comparable to the likes of the first iPhone. With that in mind, I remain bullish on AAPL stock.
The headset (or spatial computer as Apple calls it) seems to lack that "killer app" that it may need to justify its hefty price tag. However, let's remember the device isn't ready to launch in the U.S. until next year. There are still a lot of finishing touches that Apple needs to do, and as developers get busy, I do think the Vision Pro will have more than enough apps, perhaps even some killer apps, come launch day.
Further, Apple's services business will keep moving forward. Specifically, I'd look for Apple to make a bigger splash in fintech and gaming with a bit of help from some big-name partners.
What is the Price Target for AAPL Stock?
Apple's a Strong Buy on Wall Street, with 22 Buys and seven Holds. However, the average AAPL stock price target of $189.17 implies just 2.8% upside potential from here.
The Takeaway
Apple's rise has been impressive, and it could continue as it explores new frontiers with Vision Pro while offering value for users with its fintech push. Indeed, Apple stock is one obvious way to play the firm's strength. However, its teammates (think Goldman and Disney) may also stand to gain.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) has been on an unbelievable run since bottoming out earlier this year. Apple (NASDAQ:AAPL) It was an exciting time for Apple earlier this month as it pulled the curtain on its much-awaited headset, the Apple Vision Pro. With that in mind, I remain bullish on AAPL stock.
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However, the average AAPL stock price target of $189.17 implies just 2.8% upside potential from here. Apple (NASDAQ:AAPL) has been on an unbelievable run since bottoming out earlier this year. Apple (NASDAQ:AAPL) It was an exciting time for Apple earlier this month as it pulled the curtain on its much-awaited headset, the Apple Vision Pro.
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Apple (NASDAQ:AAPL) It was an exciting time for Apple earlier this month as it pulled the curtain on its much-awaited headset, the Apple Vision Pro. Apple (NASDAQ:AAPL) has been on an unbelievable run since bottoming out earlier this year. With that in mind, I remain bullish on AAPL stock.
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Apple (NASDAQ:AAPL) has been on an unbelievable run since bottoming out earlier this year. Apple (NASDAQ:AAPL) It was an exciting time for Apple earlier this month as it pulled the curtain on its much-awaited headset, the Apple Vision Pro. With that in mind, I remain bullish on AAPL stock.
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2023-06-14 00:00:00 UTC
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If You Love Microsoft Stock, You’ll Love This ETF
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AAPL
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https://www.nasdaq.com/articles/if-you-love-microsoft-stock-youll-love-this-etf
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nan
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nan
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After a ho-hum 2022 in which the stock lost 3.5% on a total-return basis, Microsoft (NASDAQ:MSFT) is back with a bang in 2023, with a gain of over 41.5% year-to-date. Investor interest in artificial intelligence (AI) is surging, and few companies are better positioned to capitalize on this next wave of technological advancement than Microsoft.
Microsoft invested $1 billion in ChatGPT and Dall-E parent company OpenAI from 2019 to 2021, long before AI was the talk of the town, and doubled down with a massive $10 billion investment in OpenAI this year. Additionally, Microsoft is incorporating ChatGPT into its Bing search engine, which could help it to at least chip away at some of Alphabet’s (NASDAQ:GOOGL) (NASDAQ:GOOG) dominance in search through Google. Microsoft is also leveraging AI to improve its Azure cloud offerings.
If you are looking to gain exposure to this tech behemoth in your portfolio, one way to do so would be via ETFs. This allows investors to invest in Microsoft while also gaining exposure to other technology stocks that could benefit from similar themes and growth drivers. Because Microsoft is the second-largest company in the world, with a massive market valuation of nearly $2.5 trillion, you'll find the stock in plenty of ETFs. However, one Microsoft ETF particularly stands out as a long-term winner, with a proven track record of performance, low management fees, and a massive stake in Microsoft -- the Technology Select Sector SPDR Fund (NYSEARCA:XLK).
Big-Time Microsoft Exposure
The Technology Select Sector SPDR Fund is an ETF from State Street that invests in the technology sector of the S&P 500 (SPX), and it has a massive position in Microsoft. In fact, because Microsoft is such a large component of the S&P 500, it makes up nearly a quarter of this $46 billion ETF’s assets.
You can get an overview of the rest of XLK’s top 10 holdings using the chart below from TipRanks’ holdings tool.
As you can see, Microsoft is XLK’s largest holding with a 23.7% weighting, but the second-largest holding, Apple (NASDAQ:AAPL), isn’t far behind with a 22.9% weighting. Together, the two tech giants account for nearly 50% of assets. Altogether, XLK has 66 holdings, and its top 10 make up 71.4% of the fund.
Beyond these two dominant technology names, Nvidia (NASDAQ:NVDA) is XLK's third-largest holding. Nvidia’s semiconductors are crucial for powering generative AI applications like ChatGPT and Dall-E. Nvidia is joined by other leading semiconductor names like Broadcom (NASDAQ:AVGO) and Advanced Micro Devices (NASDAQ:AMD) in the top 10.
Beyond these stocks, you'll also find enterprise software names like Salesforce (NYSE:CRM), Adobe (NASDAQ:ADBE), and Oracle (NYSE:ORCL) that harbor their own AI ambitions. Salesforce will be holding an "AI Day" on June 12th and is working on a spate of new products to bolster its core CRM offering. Adobe is incorporating generative AI into its offerings with its Firefly product, which has rejuvenated the stock and propelled it to its highest level in over a year. Meanwhile, Oracle is a legacy tech name like Microsoft, but that doesn't mean it can't learn new tricks. Oracle is investing in AI startup Cohere (which Salesforce and Nvidia have also invested in) and will integrate its tools into its products.
When it comes to Smart Scores, it's hard to beat XLK’s top 10 stocks. The Smart Score is TipRanks’ proprietary quantitative stock scoring system. It gives stocks a score from 1 to 10 based on eight key market 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. As you can see in the chart, eight of XLK’s top 10 holdings feature Smart Scores of 8 or above. XLK itself has an ETF Smart Score of 8.
Investor-Friendly Expense Ratio
Another reason XLK is attractive is its low expense ratio of just 0.1%. This means that an investor allocating $10,000 to XLK would pay just $10 in fees in year one, and this beats many of the other ETFs you will find in the market today.
Reliable Track Record
Lastly, XLK is a long-term winner that has built a stellar performance track record over the years. The ETF is up 34.7% year-to-date, but it’s not just a flash in the pan. As of the end of May, over a three-year time frame, XLK has a total annualized return of 19.9%. This return is even more impressive when you remember that it’s taking last year’s bear market into account. Over a five-year time frame, XLK has returned 20% annually, and over the past 10 years, it has returned 19.6% annually.
Is XLK Stock a Buy, According to Analysts?
XLK enjoys a favorable view from Wall Street analysts, who collectively assign it a Moderate Buy rating. The average XLK stock price target of $176.64 represents upside potential of just 2.8% from here.
Of the 946 analyst ratings on the ETF, 63.6% are Buys, 31.9% are Holds, and just 4.4% are Sells.
The Takeaway -- An ETF for Microsoft Lovers
There are other major tech ETFs out there with large positions in Microsoft. For example, the Invesco QQQ Trust (NASDAQ:QQQ) has a 12.9% position in the stock. QQQ is an excellent ETF, and while this is a large Microsoft position, it’s far below XLK’s 23.7% weighting. Furthermore, QQQ’s expense ratio of 0.2% is very reasonable, but it’s above XLK’s 0.1% expense ratio.
The Vanguard Information Technology ETF (NYSEARCA:VGT) is another top tech ETF. It has a sizable 19.3% position in Microsoft, but this is still slightly behind XLK’s. Nonetheless, VGT’s 0.1% expense ratio is equivalent to that of XLK’s. In reality, all three of these are great ETFs, but XLK is the top choice for ETF investors looking for large Microsoft exposure.
It’s also hard to beat XLK's total returns over time, and based on this track record, its low expense ratio, and 23.7% weighting towards Microsoft, this is a great ETF for investors who want to gain exposure to Microsoft while also being diversified into other stocks.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you can see, Microsoft is XLK’s largest holding with a 23.7% weighting, but the second-largest holding, Apple (NASDAQ:AAPL), isn’t far behind with a 22.9% weighting. Investor interest in artificial intelligence (AI) is surging, and few companies are better positioned to capitalize on this next wave of technological advancement than Microsoft. This allows investors to invest in Microsoft while also gaining exposure to other technology stocks that could benefit from similar themes and growth drivers.
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As you can see, Microsoft is XLK’s largest holding with a 23.7% weighting, but the second-largest holding, Apple (NASDAQ:AAPL), isn’t far behind with a 22.9% weighting. However, one Microsoft ETF particularly stands out as a long-term winner, with a proven track record of performance, low management fees, and a massive stake in Microsoft -- the Technology Select Sector SPDR Fund (NYSEARCA:XLK). Big-Time Microsoft Exposure The Technology Select Sector SPDR Fund is an ETF from State Street that invests in the technology sector of the S&P 500 (SPX), and it has a massive position in Microsoft.
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As you can see, Microsoft is XLK’s largest holding with a 23.7% weighting, but the second-largest holding, Apple (NASDAQ:AAPL), isn’t far behind with a 22.9% weighting. However, one Microsoft ETF particularly stands out as a long-term winner, with a proven track record of performance, low management fees, and a massive stake in Microsoft -- the Technology Select Sector SPDR Fund (NYSEARCA:XLK). In reality, all three of these are great ETFs, but XLK is the top choice for ETF investors looking for large Microsoft exposure.
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As you can see, Microsoft is XLK’s largest holding with a 23.7% weighting, but the second-largest holding, Apple (NASDAQ:AAPL), isn’t far behind with a 22.9% weighting. Big-Time Microsoft Exposure The Technology Select Sector SPDR Fund is an ETF from State Street that invests in the technology sector of the S&P 500 (SPX), and it has a massive position in Microsoft. Oracle is investing in AI startup Cohere (which Salesforce and Nvidia have also invested in) and will integrate its tools into its products.
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2023-06-14 00:00:00 UTC
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Apple adds $25 mln venture capital commitment for minority-owned businesses
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AAPL
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https://www.nasdaq.com/articles/apple-adds-%2425-mln-venture-capital-commitment-for-minority-owned-businesses
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nan
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nan
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June 14 (Reuters) - Apple AAPL.O said on Wednesday it is investing an additional $25 million to three funds working with minority-owned businesses, bolstering its backing for communities that continue to be underrepresented in the technology space.
The funds would go to Collab Capital, Harlem Capital and VamosVentures and boost the tech giant's venture capital support for diverse businesses, to $50 million.
The statement comes more than two years after the Cupertino, California-based company's foray into VC funding to back entrepreneurs of color.
Companies across the spectrum in corporate America have pledged to do more to support initiatives aimed at racial equity after the murder of George Floyd in 2020 prompted a global reckoning over racism.
(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)
((Niket.Nishant@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 14 (Reuters) - Apple AAPL.O said on Wednesday it is investing an additional $25 million to three funds working with minority-owned businesses, bolstering its backing for communities that continue to be underrepresented in the technology space. The statement comes more than two years after the Cupertino, California-based company's foray into VC funding to back entrepreneurs of color. Companies across the spectrum in corporate America have pledged to do more to support initiatives aimed at racial equity after the murder of George Floyd in 2020 prompted a global reckoning over racism.
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June 14 (Reuters) - Apple AAPL.O said on Wednesday it is investing an additional $25 million to three funds working with minority-owned businesses, bolstering its backing for communities that continue to be underrepresented in the technology space. The funds would go to Collab Capital, Harlem Capital and VamosVentures and boost the tech giant's venture capital support for diverse businesses, to $50 million. (Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel) ((Niket.Nishant@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 14 (Reuters) - Apple AAPL.O said on Wednesday it is investing an additional $25 million to three funds working with minority-owned businesses, bolstering its backing for communities that continue to be underrepresented in the technology space. The funds would go to Collab Capital, Harlem Capital and VamosVentures and boost the tech giant's venture capital support for diverse businesses, to $50 million. (Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel) ((Niket.Nishant@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 14 (Reuters) - Apple AAPL.O said on Wednesday it is investing an additional $25 million to three funds working with minority-owned businesses, bolstering its backing for communities that continue to be underrepresented in the technology space. The funds would go to Collab Capital, Harlem Capital and VamosVentures and boost the tech giant's venture capital support for diverse businesses, to $50 million. The statement comes more than two years after the Cupertino, California-based company's foray into VC funding to back entrepreneurs of color.
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2023-06-14 00:00:00 UTC
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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-outpaces-stock-market-gains%3A-what-you-should-know-14
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nan
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nan
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In the latest trading session, Apple (AAPL) closed at $183.95, marking a +0.35% move from the previous day. This move outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 0.61%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 6.53% over the past month, lagging the Computer and Technology sector's gain of 11.52% and outpacing the S&P 500's gain of 6.1% in that time.
Apple will be looking to display strength as it nears its next earnings release. In that report, analysts expect Apple to post earnings of $1.18 per share. This would mark a year-over-year decline of 1.67%. Meanwhile, our latest consensus estimate is calling for revenue of $81.17 billion, down 2.16% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.99 per share and revenue of $384.34 billion. These totals would mark changes of -1.96% and -2.53%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Apple is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 30.59. Its industry sports an average Forward P/E of 9.23, so we one might conclude that Apple is trading at a premium comparatively.
We can also see that AAPL currently has a PEG ratio of 2.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
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 $183.95, marking a +0.35% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.45. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Apple (AAPL) closed at $183.95, marking a +0.35% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.45. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Apple (AAPL) closed at $183.95, marking a +0.35% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.45. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Apple (AAPL) closed at $183.95, marking a +0.35% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.45. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-06-14 00:00:00 UTC
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After Hours Most Active for Jun 14, 2023 : HBAN, AAPL, STNE, CMCSA, VGIT, TLT, XOM, V, NKE, KOS, BCE, BAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jun-14-2023-%3A-hban-aapl-stne-cmcsa-vgit-tlt-xom-v-nke-kos-bce
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 23.44 to 15,029.13. The total After hours volume is currently 100,033,337 shares traded.
The following are the most active stocks for the after hours session:
Huntington Bancshares Incorporated (HBAN) is +0.06 at $10.89, with 3,300,346 shares traded. HBAN's current last sale is 83.77% of the target price of $13.
Apple Inc. (AAPL) is unchanged at $183.95, with 3,205,315 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
StoneCo Ltd. (STNE) is +0.03 at $13.10, with 3,154,325 shares traded. STNE's current last sale is 87.33% of the target price of $15.
Comcast Corporation (CMCSA) is unchanged at $40.84, with 2,872,362 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Vanguard Intermediate-Term Treasury ETF (VGIT) is unchanged at $58.74, with 2,547,273 shares traded. This represents a 2.91% increase from its 52 Week Low.
iShares 20+ Year Treasury Bond ETF (TLT) is +0.09 at $102.11, with 2,530,122 shares traded. This represents a 11.17% increase from its 52 Week Low.
Exxon Mobil Corporation (XOM) is +0.0218 at $105.18, with 1,769,089 shares traded. XOM's current last sale is 84.15% of the target price of $125.
Visa Inc. (V) is unchanged at $223.44, with 1,053,749 shares traded. As reported by Zacks, the current mean recommendation for V is in the "buy range".
Nike, Inc. (NKE) is -0.16 at $112.70, with 1,042,525 shares traded. As reported by Zacks, the current mean recommendation for NKE is in the "buy range".
Kosmos Energy Ltd. (KOS) is +0.06 at $6.16, with 867,186 shares traded. As reported by Zacks, the current mean recommendation for KOS is in the "buy range".
BCE, Inc. (BCE) is unchanged at $45.26, with 682,284 shares traded. BCE's current last sale is 94.54% of the target price of $47.875.
Bank of America Corporation (BAC) is +0.03 at $29.15, with 640,018 shares traded. BAC's current last sale is 83.29% of the target price of $35.
The views and 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 unchanged at $183.95, with 3,205,315 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Vanguard Intermediate-Term Treasury ETF (VGIT) is unchanged at $58.74, with 2,547,273 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 unchanged at $183.95, with 3,205,315 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
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Apple Inc. (AAPL) is unchanged at $183.95, with 3,205,315 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 100,033,337 shares traded.
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Apple Inc. (AAPL) is unchanged at $183.95, with 3,205,315 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 23.44 to 15,029.13.
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2023-06-14 00:00:00 UTC
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How to Retire Rich: Tech Stocks Edition
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AAPL
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https://www.nasdaq.com/articles/how-to-retire-rich%3A-tech-stocks-edition
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Are you ready to retire rich? Look no further than the tech sector to find the key ingredients for a lucrative retirement portfolio. Tech stocks for retirement offer immense growth potential, fueled by their innovative businesses and the ever-evolving nature of the industry. With the tech market constantly pushing boundaries, investing in high-growth sectors within this realm can secure your financial future. So, keeping a close eye on the latest developments will help you retire rich with tech stocks.
As we step into 2023, specific sectors within the tech industry hold tremendous promise. Think virtual/augmented reality (VR/AR), artificial intelligence, and cloud computing. These groundbreaking technologies are poised to shape the future, revolutionizing countless devices and industries. The sky’s the limit for their growth potential, making them prime areas to consider for investment.
To embark on your journey towards a prosperous retirement, we’ve handpicked three top tech stocks that possess the potential to pave your way to riches. These companies are at the forefront of their respective fields, driving innovation and capturing market share. By strategically positioning your investments in these tech giants, you could set yourself up for substantial gains in the long run.
Don’t let your retirement plans be ordinary—leap into extraordinary possibilities with tech stocks. Your future awaits; these companies are key to unlocking your financial dreams. If you want to retire rich with tech stocks, look no further than this list.
And once you are done with this list, check out a selection of other tech plays that might interest you. Happy investing!
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
When it comes to building a tech-focused retirement portfolio, Apple (NASDAQ:AAPL) shines as the go-to choice. With a long-standing reputation as a reliable long-term buy, Apple shares are exactly the kind of stock needed when curating a winning retirement portfolio.
Over the past decade, Apple’s stock has soared over 1,000%. In the last five years alone, it has climbed approximately 269%. This remarkable performance is a testament to Apple’s unwavering commitment to delivering quality products that resonate with consumers. Apple has cultivated immense brand loyalty by prioritizing excellence and propelling its ventures into new markets.
Apple’s highly anticipated launch of a new VR/AR headset opens up vast potential for even greater success. According to a recent Bloomberg report, the device will debut in June. The upcoming product will showcase a cutting-edge 3D interface reminiscent of an iPad, introducing many thrilling features encompassing gaming, fitness, sports, entertainment, reading, and much more.
The anticipation surrounding the device is growing steadily, with Palmer Luckey, founder of Oculus VR (now owned by Meta), praising Apple’s forthcoming headset and describing it as “so good” in a recent tweet.
It positions Apple as a formidable contender in the VR/AR industry, with the potential to trounce the competition and emerge as the leader in the industry.
Combining Apple’s history of consistent growth with its exciting prospects, investing in Apple stock becomes an attractive strategy to supercharge your retirement portfolio. As you plan for retirement, incorporating Apple stock can help you retire rich with the best tech stocks tailored for long-term success.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
When it comes to tech stocks for your retirement portfolio, Amazon (NASDAQ:AMZN) emerges as an irresistible choice. With its dominant presence in e-commerce and the cloud market, Amazon stands as a frontrunner poised for tremendous growth and opportunity in the coming decade and beyond.
With a 38% market share in U.S. e-commerce, Amazon stands tall, leaving competitors far behind. This dominant position becomes even more compelling when considering the projected size of the online retail sector. Statista’s forecast indicates that e-commerce is projected to experience a remarkable growth rate of 56%. The market size is estimated to reach around $8.1 trillion by 2026.
Remarkably, e-commerce sales accounted for only about 15% of total retail purchases last year, indicating substantial room for further growth. While the e-commerce market and Amazon’s related segments faced hardships during the economic downturn, easing inflation suggests that these challenges are temporary. With its unrivaled dominance, Amazon will flourish long-term.
In addition to its e-commerce prowess, Amazon enjoys a leading market share in cloud computing through its renowned platform, Amazon Web Services. This further enhances the appeal of Amazon’s stock as a solid investment choice for the next decade and beyond.
As you embark on retirement planning with tech stocks, Amazon presents a compelling opportunity to secure your financial future. Retire rich with the best tech stocks tailored for long-term success, and position yourself for the ultimate retirement strategy.
Advanced Micro Devices (AMD)
Source: Pamela Marciano / Shutterstock.com
When it comes to tech stocks for your retirement portfolio, Advanced Micro Devices (NASDAQ:AMD) takes the lead. A prominent chipmaker, AMD, fuels various platforms and devices throughout the tech industry.
Its hardware prowess extends to powering game consoles, cloud services, and various other technological innovations. Moreover, the tech giant is strategically positioning itself to strengthen its presence in the realm of artificial intelligence.
In addition, based on data from Grand View Research, the cloud market achieved a remarkable value of $484 billion in 2022. Projections further indicate a robust compound annual growth rate of 14% until the year 2030. This sector’s expansion presents great news for AMD, as the demand for its data center chips will surge in future years.
Moreover, the emerging field of artificial intelligence will accelerate the cloud’s growth as companies integrate AI technology into their platforms.
In summary, Advanced Micro Devices emerges as the best choice as you embark on retirement planning with tech stocks. Hence, it is time to strategize your retirement portfolio with AMD’s promising growth prospects in mind.
As an informed investor, it’s crucial to be aware of potential risks and indicators of market instability. If you are done with this list, I recommend checking out a piece from Bret Kenwell. In this article, my colleague highlights five significant red flags currently waving in the stock market.
On the publication date, Faizan Farooque did not hold (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.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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The post How to Retire Rich: Tech Stocks Edition 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 When it comes to building a tech-focused retirement portfolio, Apple (NASDAQ:AAPL) shines as the go-to choice. With a long-standing reputation as a reliable long-term buy, Apple shares are exactly the kind of stock needed when curating a winning retirement portfolio. The upcoming product will showcase a cutting-edge 3D interface reminiscent of an iPad, introducing many thrilling features encompassing gaming, fitness, sports, entertainment, reading, and much more.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com When it comes to building a tech-focused retirement portfolio, Apple (NASDAQ:AAPL) shines as the go-to choice. In addition to its e-commerce prowess, Amazon enjoys a leading market share in cloud computing through its renowned platform, Amazon Web Services. As you embark on retirement planning with tech stocks, Amazon presents a compelling opportunity to secure your financial future.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com When it comes to building a tech-focused retirement portfolio, Apple (NASDAQ:AAPL) shines as the go-to choice. As you plan for retirement, incorporating Apple stock can help you retire rich with the best tech stocks tailored for long-term success. Retire rich with the best tech stocks tailored for long-term success, and position yourself for the ultimate retirement strategy.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com When it comes to building a tech-focused retirement portfolio, Apple (NASDAQ:AAPL) shines as the go-to choice. If you want to retire rich with tech stocks, look no further than this list. As you plan for retirement, incorporating Apple stock can help you retire rich with the best tech stocks tailored for long-term success.
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2023-06-14 00:00:00 UTC
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EXCLUSIVE-Bill Gates in China to meet President Xi on Friday - sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-bill-gates-in-china-to-meet-president-xi-on-friday-sources
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nan
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By Julie Zhu
HONG KONG, June 14 (Reuters) - Bill Gates, Microsoft Corp's MSFT.O co-founder, is set to meet Chinese President Xi Jinping on Friday during his visit to China, two people with knowledge of the matter said.
The meeting will mark Xi's first meeting with a foreign private entrepreneur in recent years. The people said the encounter may be a one-on-one meeting. A third source confirmed they would meet, without providing details.
The sources did not say what the two might discuss. Gates tweeted on Wednesday that he had landed in Beijing for the first time since 2019 and that he would meet with partners who had been working on global health and development challenges with the Bill & Melinda Gates Foundation.
The foundation and China's State Council Information Office, which handles media queries on behalf of the Chinese government, did not immediately respond to Reuters requests for comment.
Gates stepped down from Microsoft's board in 2020 to focus on philanthropic works related to global health, education and climate change. He quit his full-time executive role at Microsoft in 2008.
The last reported meeting between Xi and Gates was in 2015, when they met on the sidelines of the Boao forum in Hainan province. In early 2020, Xi wrote a letter to Gates thanking him, and the Bill & Melinda Gates Foundation, for pledging assistance to China including $5 million for its fight against COVID.
The meeting would mark the end of a long hiatus by Xi in recent years from meeting foreign private entrepreneurs and business leaders, after the Chinese president stopped travelling abroad for nearly three years as China shut its borders during the pandemic.
Several foreign CEOs have visited China since it reopened early this year but most have mainly met with government ministers.
Premier Li Qiang met a group of CEOs including Apple's AAPL.O Tim Cook in March and a source told Reuters that Tesla's TSLA.O Elon Musk met vice-premier Ding Xuexiang last month.
(Addistional reporting Beijing Newsroom and Greg Roumeliotis in New York; Writing by Brenda Goh; Editing by Alex Richardson, Sumeet Chatterjee and Nick Macfie)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.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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Premier Li Qiang met a group of CEOs including Apple's AAPL.O Tim Cook in March and a source told Reuters that Tesla's TSLA.O Elon Musk met vice-premier Ding Xuexiang last month. By Julie Zhu HONG KONG, June 14 (Reuters) - Bill Gates, Microsoft Corp's MSFT.O co-founder, is set to meet Chinese President Xi Jinping on Friday during his visit to China, two people with knowledge of the matter said. The foundation and China's State Council Information Office, which handles media queries on behalf of the Chinese government, did not immediately respond to Reuters requests for comment.
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Premier Li Qiang met a group of CEOs including Apple's AAPL.O Tim Cook in March and a source told Reuters that Tesla's TSLA.O Elon Musk met vice-premier Ding Xuexiang last month. By Julie Zhu HONG KONG, June 14 (Reuters) - Bill Gates, Microsoft Corp's MSFT.O co-founder, is set to meet Chinese President Xi Jinping on Friday during his visit to China, two people with knowledge of the matter said. The meeting will mark Xi's first meeting with a foreign private entrepreneur in recent years.
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Premier Li Qiang met a group of CEOs including Apple's AAPL.O Tim Cook in March and a source told Reuters that Tesla's TSLA.O Elon Musk met vice-premier Ding Xuexiang last month. By Julie Zhu HONG KONG, June 14 (Reuters) - Bill Gates, Microsoft Corp's MSFT.O co-founder, is set to meet Chinese President Xi Jinping on Friday during his visit to China, two people with knowledge of the matter said. Gates tweeted on Wednesday that he had landed in Beijing for the first time since 2019 and that he would meet with partners who had been working on global health and development challenges with the Bill & Melinda Gates Foundation.
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Premier Li Qiang met a group of CEOs including Apple's AAPL.O Tim Cook in March and a source told Reuters that Tesla's TSLA.O Elon Musk met vice-premier Ding Xuexiang last month. By Julie Zhu HONG KONG, June 14 (Reuters) - Bill Gates, Microsoft Corp's MSFT.O co-founder, is set to meet Chinese President Xi Jinping on Friday during his visit to China, two people with knowledge of the matter said. Gates tweeted on Wednesday that he had landed in Beijing for the first time since 2019 and that he would meet with partners who had been working on global health and development challenges with the Bill & Melinda Gates Foundation.
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2023-06-14 00:00:00 UTC
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Hong Kong protest anthem's online presence fades as govt seeks total ban
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AAPL
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https://www.nasdaq.com/articles/hong-kong-protest-anthems-online-presence-fades-as-govt-seeks-total-ban
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nan
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nan
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By Jessie Pang
HONG KONG, June 14 (Reuters) - Various versions of the pro-democracy protest anthem "Glory to Hong Kong" were unavailable on Apple’s iTunes Store, Spotify, Facebook and Instagram’s Reels on Wednesday after the government sought an injunctionbanning the song outright.
A Reuters search for the song’s Chinese title on Apple's iTunes Store and a search for the song's English title on Facebook and Instagram’s Reels only showed a Taiwan version of the song by Taiwanese rock band The Chairman.
The song was the unofficial anthem of Hong Kong's 2019 sometime violent pro-democracy street protests.
Various versions of the song released by the creator "ThomasDGX & HongKongers" on Spotify were no longer available.
The injunction application comes after "Glory to Hong Kong" was played mistakenly at several international events, including a Rugby Sevens game and an ice hockey competition.
The song was banned in schools in 2020 after China imposed a national security law on the financial hub cracking down on dissent.
“Hong Kong Special Administrative Region has a duty and obligation to safeguard national security, and we should do it proactively and also preventively,” Lee said.
The head of Amnesty International’s China team, Sarah Brooks, said in a statement that "a song is not a threat to national security, and national security may not be used as an excuse to deny people the right to express different political views".
Hong Kong returned from British to Chinese rule in 1997 with the guarantee its freedoms, including freedom of speech, would be protected under a "one country, two systems" formula. Critics of the national security law say those freedoms have eroded fast.
According to a writ seen by Reuters, the government seeks to ban performing and disseminating of the song, including online, its melody and lyrics and any adaptations.
The writ also listed 32 YouTube videos related to the song, including instrumental and sign-language versions. The application for an interim injunction will be heard by the High Court on July 21.
The government asked anyone who opposes the injunction to contact police by June 21 and provide their name, address, telephone number and identity card number.
"Glory to Hong Kong", including its various versions, dominated the top ten in Apple’s Hong Kong iTunes Store chart as people rushed to buy the song after the government announced its bid to ban it.
Apple, Spotify, Google and “ThomasDGX & HongKongers” did not immediately respond to a request for comment.
Meta, which owned Facebook and Instagram, has declined to comment.
Hong Kong does not have its own anthem. "Glory to Hong Kong" has been played mistakenly instead of the Chinese national anthem "March of the Volunteers". The Asia Rugby Association blamed "a simple human error" for its mistake.
Hong Kong's security chief said in December Google had refused to change its search results to display China's national anthem instead of "Glory to Hong Kong" when users searched for Hong Kong's national anthem, expressing "great regret" at the decision.
(Reporting by Jessie Pang; Additional reporting by Josh Ye; Editing by Nick Macfie)
((Jessie.Pang@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 injunction application comes after "Glory to Hong Kong" was played mistakenly at several international events, including a Rugby Sevens game and an ice hockey competition. “Hong Kong Special Administrative Region has a duty and obligation to safeguard national security, and we should do it proactively and also preventively,” Lee said. According to a writ seen by Reuters, the government seeks to ban performing and disseminating of the song, including online, its melody and lyrics and any adaptations.
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By Jessie Pang HONG KONG, June 14 (Reuters) - Various versions of the pro-democracy protest anthem "Glory to Hong Kong" were unavailable on Apple’s iTunes Store, Spotify, Facebook and Instagram’s Reels on Wednesday after the government sought an injunctionbanning the song outright. A Reuters search for the song’s Chinese title on Apple's iTunes Store and a search for the song's English title on Facebook and Instagram’s Reels only showed a Taiwan version of the song by Taiwanese rock band The Chairman. Hong Kong's security chief said in December Google had refused to change its search results to display China's national anthem instead of "Glory to Hong Kong" when users searched for Hong Kong's national anthem, expressing "great regret" at the decision.
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By Jessie Pang HONG KONG, June 14 (Reuters) - Various versions of the pro-democracy protest anthem "Glory to Hong Kong" were unavailable on Apple’s iTunes Store, Spotify, Facebook and Instagram’s Reels on Wednesday after the government sought an injunctionbanning the song outright. "Glory to Hong Kong", including its various versions, dominated the top ten in Apple’s Hong Kong iTunes Store chart as people rushed to buy the song after the government announced its bid to ban it. Hong Kong's security chief said in December Google had refused to change its search results to display China's national anthem instead of "Glory to Hong Kong" when users searched for Hong Kong's national anthem, expressing "great regret" at the decision.
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By Jessie Pang HONG KONG, June 14 (Reuters) - Various versions of the pro-democracy protest anthem "Glory to Hong Kong" were unavailable on Apple’s iTunes Store, Spotify, Facebook and Instagram’s Reels on Wednesday after the government sought an injunctionbanning the song outright. The head of Amnesty International’s China team, Sarah Brooks, said in a statement that "a song is not a threat to national security, and national security may not be used as an excuse to deny people the right to express different political views". Hong Kong's security chief said in December Google had refused to change its search results to display China's national anthem instead of "Glory to Hong Kong" when users searched for Hong Kong's national anthem, expressing "great regret" at the decision.
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2023-06-14 00:00:00 UTC
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3 Lesser Known Stocks with $1 Trillion Market-Cap Potential
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AAPL
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https://www.nasdaq.com/articles/3-lesser-known-stocks-with-%241-trillion-market-cap-potential
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Market uncertainty remains high right now. Indeed, all eyes are on today’s decision from the Federal Reserve with respect to whether interest rates will be held or raised once again. Accordingly, with all eyes on the macro backdrop right now, investors may want to focus in on some high-growth stocks with significant upside potential.
Importantly, there has been a surge in interest around companies in key growth sectors of late. Notably, companies involved in the AI and AR/VR sectors are outperforming most other stocks by a wide margin. Tech giants are continuing their surge higher, with many predicting more trillion-dollar stocks on the horizon.
So, the question many investors may be asking is: which tech giants could achieve such a valuation? Here are three lesser-known tech stocks with the potential for $1 trillion market cap. These are all companies with resilient business models and strong financials.
SQ Block $64.73
CRM Salesforce $210.95
U Unity Software $41.05
Block (SQ)
Source: Sergei Elagin / Shutterstock.com
Block (NYSE:SQ) is a leading fintech company that focuses on creating ecosystems where tools and services cohesively work together on a final product. The company is the creator of the Square, Cash App and the emerging TIDAL ecosystems.
The fintech industry is currently valued at $245 billion and is projected to grow at a 29.52% CAGR to $1.5 trillion by 2030. Additionally, the potential for global expansion is immense, with markets outside the U.S. and Europe driving rapid digitalization efforts.
Year-to-date, SQ stock has held steady, but strong growth potential is evident in its financials. Gross profit across all ecosystems was $1.71 billion, representing a 32% year-over-year increase, and gross profit for Block grew 27% year-over-year as well. Cash App’s gross profit surged 49% over the past year to $931 million, driven by diversified monetization streams.
Block’s biggest growth catalyst is the continued expansion of Cash App and Square in Africa, Asia, and Latin America. Block is targeting these regions due to their large future total addressable market when internet access becomes widespread. The company has quickly adopted AI, building on its extensive use of machine learning, to accelerate adoption in its core markets as well.
Furthermore, Yahoo Finance reports 37 analysts with a mean price target of $86.15, ranging from $60.00 to $110.00. Most notable firms also affirm and maintain an outperform rating. Block’s embrace of new technology in new markets will drive significant future growth in the expanding fintech industry.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
Salesforce (NYSE:CRM) provides cloud-based CRM software solutions for businesses of all sizes and types. Salesforce strives to lower costs, save time, and build the best consumer relationships.
On a year-to-date basis, CRM stock is up 62%, with 42 analysts predicting a 12-month median price of $241 per share.
The global customer relationship management market was valued at $64.41 billion in 2022 and is predicted to reach $157.53 billion, growing at a 12% CAGR through 2030. This rapid growth stems from businesses prioritizing customer-centric strategies. Technological advancements have revolutionized Salesforce, making it more accessible and scalable with cloud computing, AI, and data analytics firms.
Since 2013, Salesforce has posted strong financials, exemplified by a 10-year CAGR of 25.77%. In FY23, Salesforce achieved exceptional operational performance with a 35% levered free cash flow margin, surpassing the sector median, and $31 billion in revenue. This demonstrates Salesforce’s superior profitability and cash flow production, providing a better option than its sector rivals.
Salesforce’s key catalyst for long-term growth is its AI technology, Einstein AI. This technology was developed through partnerships with OpenAI and Google Cloud over the past eight years. Einstein AI will enhance CRM platforms by integrating generative and personalization AI capabilities into the world’s leading CRM platform. Einstein GPT enables AI-created content across various domains at a massive scale.
Salesforce’s technologies can rapidly and substantially impact the financial performance of businesses when effectively implemented. The integration of AI will only further amplify this fundamental influence and in turn cause Salesforce to grow.
CRM stock is a promising investment opportunity because of its strong financial performance and innovative AI-based offerings.
Unity Software (U)
Source: Konstantin Savusia / Shutterstock.com
Unity Software (NYSE:U) develops game engines used for 2D, 3D, VR, and AR games across various platforms. The company provides a leading platform for creating interactive real-time 3D content, setting itself apart in the game engine sector.
Notably, Unity’s Q1 2023 revenue was $500.3 million, representing an astonishing 56.3% year-over-year increase. Additionally, this result more than doubled the the sector’s median growth rate, and also beat analyst expectations by $20.53 million. Its normalized earnings per share came in at 6 cents, beating out consensus estimates by 9 cents. Finally, Unity’s impressive growth, driven by new services and R&D, is evident in its healthy gross profit margin of 67.7% (over the past 12 months).
The software giant has recently gained traction from its newly announced app development partnership with Apple’s (NASDAQ:AAPL) Vision Pro headset during Apple’s Worldwide Developers Conference. Unity Enterprises cements Unity’s RT3D leadership, and its Apple partnership demonstrates its focus on VR and AR game development.
Additionally, the consensus among analysts is that U stock is a moderate buy, with average upside of 9.28% over the next year. Thus, with robust growth, R&D progress in VR and AR gaming, and a key Apple partnership, U stock is one with trillion dollar potential worth watching.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga, and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments
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The post 3 Lesser Known Stocks with $1 Trillion Market-Cap Potential appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The software giant has recently gained traction from its newly announced app development partnership with Apple’s (NASDAQ:AAPL) Vision Pro headset during Apple’s Worldwide Developers Conference. Thus, with robust growth, R&D progress in VR and AR gaming, and a key Apple partnership, U stock is one with trillion dollar potential worth watching. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments 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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The software giant has recently gained traction from its newly announced app development partnership with Apple’s (NASDAQ:AAPL) Vision Pro headset during Apple’s Worldwide Developers Conference. SQ Block $64.73 CRM Salesforce $210.95 U Unity Software $41.05 Block (SQ) Source: Sergei Elagin / Shutterstock.com Block (NYSE:SQ) is a leading fintech company that focuses on creating ecosystems where tools and services cohesively work together on a final product. Gross profit across all ecosystems was $1.71 billion, representing a 32% year-over-year increase, and gross profit for Block grew 27% year-over-year as well.
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The software giant has recently gained traction from its newly announced app development partnership with Apple’s (NASDAQ:AAPL) Vision Pro headset during Apple’s Worldwide Developers Conference. SQ Block $64.73 CRM Salesforce $210.95 U Unity Software $41.05 Block (SQ) Source: Sergei Elagin / Shutterstock.com Block (NYSE:SQ) is a leading fintech company that focuses on creating ecosystems where tools and services cohesively work together on a final product. Salesforce (CRM) Source: Sundry Photography / Shutterstock.com Salesforce (NYSE:CRM) provides cloud-based CRM software solutions for businesses of all sizes and types.
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The software giant has recently gained traction from its newly announced app development partnership with Apple’s (NASDAQ:AAPL) Vision Pro headset during Apple’s Worldwide Developers Conference. Here are three lesser-known tech stocks with the potential for $1 trillion market cap. Block’s embrace of new technology in new markets will drive significant future growth in the expanding fintech industry.
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2023-06-14 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
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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
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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2023-06-14 00:00:00 UTC
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3 High-Growth Stocks Poised to Become Cash Flow Machines
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AAPL
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https://www.nasdaq.com/articles/3-high-growth-stocks-poised-to-become-cash-flow-machines
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Discounted cash flow valuation is the most used method by analysts to determine the fair value of a stock. Except for early-stage growth companies, analyst focus is on the company’s potential to deliver robust cash flows on a consistent basis. It therefore makes sense to consider exposure to high growth cash flow stocks for the portfolio.
For blue-chip companies, cash flows are usually robust. Therefore, these companies are positioned to consistently increase dividends and create value through share repurchase. Identifying future cash flow machines can result in multibagger returns. As free cash flow swells, the company’s valuation adjusts on the upside.
A good example is Apple (NASDAQ:AAPL), which is delivering operating cash flow in excess of $100 billion annually. Strong OCF also provides ample headroom for aggressive investments. This column discusses three stocks with growing cash flows. In the next five years, the market valuation of these stocks will be significantly higher on the back of cash flow visibility.
Li Auto (LI)
Source: shutterstock.com/JLStock
Li Auto (NASDAQ:LI) is my first pick among high growth cash flow stocks. LI stock has trended higher by almost 50% for year-to-date 2023. Considering the positive business developments, I expect the EV stock to remain in an uptrend.
It’s worth noting that Li reported operating and free cash flow of $1.13 billion and $975.9 million respectively for Q1 2023. Given the growth in vehicle deliveries, Li Auto is positioned for OCF in excess of $4 billion for the year. Further, as FCF accelerates, the company’s financial flexibility for global expansion will swell. I must mention that Li Auto’s vehicle margin is superior as compared to other Chinese EV peers.
In terms of deliveries, Li reported 146% year-on-year growth in deliveries for May 2023. The surge was on the back of new models and aggressive retail expansion. For the same reasons, deliveries are likely to remain strong through 2023.
Amdocs Limited (DOX)
Source: AlexLMX / Shutterstock
Amdocs (NASDAQ:DOX) is another stock with growing cash flows that’s worth buying at current levels. At a forward price-earnings ratio of 16.2, DOX stock seems undervalued. Further, the stock offers a dividend yield of 1.82% and I expect healthy dividend growth in the coming years.
As an overview, Amdocs is a provider of software solutions and services to the media and communications industry globally. With presence in 90 countries, the company believes that the addressable market for its services will be $57 billion by 2025. This provides ample headroom for growth.
From a revenue and cash flow perspective, there are two important points. First, Amdocs has a current backlog of $4.11 billion and this provides clear revenue visibility. Further, the company has guided for $700 million in free cash flow for 2023. On a year-on-year basis, FCF will therefore increase.
With global presence, investment in next-generation cloud technology, and rising adoption of 5G, Amdocs is positioned to grow. A direct implication is further upside in free cash flows. I will not be surprised if annual FCF is in excess of $1 billion within the next 24 months.
Pinterest (PINS)
Source: tanuha2001 / Shutterstock.com
Pinterest (NYSE:PINS) stock might have disappointed investors, but I remain bullish on the company’s capability to deliver healthy cash flows. It would not be inappropriate to consider Pinterest as a proxy e-commerce platform with a strong global presence.
There are two important points to note when it comes to Pinterest delivering robust cash flows. First, for Q1 2023, the company reported 7% year-on-year growth in monthly active users to 463 million. Active user growth for the rest of the world has been robust.
Further, for Q1, the average revenue per user in U.S. and Canada was $5.11. For Europe, the ARPU was 74 cents. Finally, for the rest of the world, the ARPU was 10 cents. Therefore, there is a massive ARPU gap. If ARPU continues to grow at a robust pace in emerging markets, there is ample scope for EBITDA and cash flow growth. Even if the user base is stable.
It’s also worth noting that for Q1, Pinterest reported operating cash flow of $183 million. This already implies an annualized OCF potential of $800 million. As Pinterest gains traction as a proxy e-commerce platform and advertising revenue swells, the outlook is positive.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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The post 3 High-Growth Stocks Poised to Become Cash Flow Machines 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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A good example is Apple (NASDAQ:AAPL), which is delivering operating cash flow in excess of $100 billion annually. If ARPU continues to grow at a robust pace in emerging markets, there is ample scope for EBITDA and cash flow growth. On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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A good example is Apple (NASDAQ:AAPL), which is delivering operating cash flow in excess of $100 billion annually. Except for early-stage growth companies, analyst focus is on the company’s potential to deliver robust cash flows on a consistent basis. Li Auto (LI) Source: shutterstock.com/JLStock Li Auto (NASDAQ:LI) is my first pick among high growth cash flow stocks.
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A good example is Apple (NASDAQ:AAPL), which is delivering operating cash flow in excess of $100 billion annually. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Discounted cash flow valuation is the most used method by analysts to determine the fair value of a stock. Except for early-stage growth companies, analyst focus is on the company’s potential to deliver robust cash flows on a consistent basis.
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A good example is Apple (NASDAQ:AAPL), which is delivering operating cash flow in excess of $100 billion annually. Except for early-stage growth companies, analyst focus is on the company’s potential to deliver robust cash flows on a consistent basis. It’s worth noting that Li reported operating and free cash flow of $1.13 billion and $975.9 million respectively for Q1 2023.
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2023-06-14 00:00:00 UTC
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Opinion: These Will Be the 4 Largest Stocks by 2035
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AAPL
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https://www.nasdaq.com/articles/opinion%3A-these-will-be-the-4-largest-stocks-by-2035
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nan
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nan
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Twelve years ago, the four largest American companies by market capitalization were ExxonMobil, Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Chevron. Since then, ExxonMobil and Chevron have fallen out of the top four -- out of the top 10, in fact -- and have been replaced by Alphabet and Amazon (NASDAQ: AMZN).
But what about 12 years from now? Should we expect the same four stocks to hold their spots, or will new names have elbowed their way to the top? Here's what I think.
Image source: Getty Images.
Microsoft
Twelve years from now, I predict Microsoft will be the largest American company by market cap. The software giant is already the country's second-largest company with an astounding market valuation of $2.4 trillion. What will take it from No. 2 to No. 1? In a word: Growth.
Microsoft has averaged quarterly year-over-year revenue growth of about 11% over the last decade. That's stunning for a company of its size. Moreover, recent advancements in artificial intelligence (AI) should mean even more revenue growth for Microsoft in the coming years as the company can leverage its existing relationship with OpenAI -- the company behind ChatGPT -- and potentially acquire promising start-ups before they become threats to it.
Lastly, Microsoft's diverse business segments give it a foothold in various fields: cloud, gaming, and social networking, to name a few. It all adds up to a tech juggernaut that should continue riding high in the next decade.
Amazon
Currently, Amazon sits in the No. 4 spot with a market cap of $1.3 trillion. However, I think the e-commerce giant will jump to No. 2 by 2035.
Like Microsoft, Amazon should get a boost from AI software and services. Amazon is already the top name in cloud computing thanks to its lucrative Amazon Web Services (AWS) segment. As more organizations and applications migrate to the cloud, Amazon should reap even more revenue from AWS.
In addition, Amazon is likely to gain ground as it continues to build out its AI offerings. The company already uses AI to help run its massive logistical network. But with an almost endless stream of user data gleaned from the more than 500 million Alexa-enabled devices globally, Amazon is well-positioned to develop the next generation of personalized, functional AI assistants.
Apple
I foresee Apple dropping into third place by 2035. Currently, it's the largest American company, with a market cap of $2.9 trillion.
There are, however, risks to being the top dog. After all, there's nowhere to go but down. At any rate, I don't expect Apple to go the way of ExxonMobil and drop out of the top four. But I do think Apple will grow more slowly than other companies (like Microsoft and Amazon) that are better positioned for the next 12 years.
For example, Apple's greatest asset is its ability to design, produce, and sell great hardware. However, with the rise of AI technology, it's possible hardware might take a back seat to software. After all, no one cares about what device they use when they ask ChatGPT a question -- the interest is in the interaction with the cloud-based chatbot.
At any rate, from a market perspective, Apple needs to reinvigorate its revenue growth, which has decelerated steadily since 2021. Last year, its quarterly year-over-year revenue growth averaged less than 1%, which is no recipe for holding on to the top spot.
New iPhone models, and the company's latest VR headset, should help drive up revenue in the short term. However, I see Apple slipping down the list in the long term as other, more software-oriented stocks leapfrog it.
Tesla
Finally, a dozen years from now, I expect to see Tesla (NASDAQ: TSLA) rounding out the top four. Today, the electric vehicle (EV) leader is No. 6 with a market cap of about $800 billion. However, by 2035, I think that its value could be much, much higher.
And I have two reasons why. First, as you might suspect, would be the transition to EVs. It's an enormous secular trend where Tesla holds numerous advantages over its competitors.
There is, however, a second reason to think Tesla could not only make it into the top four, but perhaps top the list by 2035: Elon Musk. In a nutshell, visionary leaders are hard to come by, and the man leading Tesla is one of them.
Musk is at the forefront of several key technological trends: clean energy, commercialization of space, autonomous driving, and social media, to name a few. There's no telling what he might be doing in 12 years, but it's almost certainly going to be interesting and profitable.
However, for investors, there's only one way to "bet" on Musk. Of his numerous companies and ventures, only Tesla is a publicly traded company. And it's the biggest reason Musk is the wealthiest individual on the planet.
Therefore, because of its visionary leadership, I wouldn't bet against Tesla taking the crown as the largest American company by 2035.
10 stocks we like better than Microsoft
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*Stock Advisor returns as of June 5, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Amazon.com and Tesla. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, and Tesla. The Motley Fool recommends Chevron. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Twelve years ago, the four largest American companies by market capitalization were ExxonMobil, Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Chevron. Lastly, Microsoft's diverse business segments give it a foothold in various fields: cloud, gaming, and social networking, to name a few. But with an almost endless stream of user data gleaned from the more than 500 million Alexa-enabled devices globally, Amazon is well-positioned to develop the next generation of personalized, functional AI assistants.
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Twelve years ago, the four largest American companies by market capitalization were ExxonMobil, Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Chevron. Microsoft has averaged quarterly year-over-year revenue growth of about 11% over the last decade. Last year, its quarterly year-over-year revenue growth averaged less than 1%, which is no recipe for holding on to the top spot.
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Twelve years ago, the four largest American companies by market capitalization were ExxonMobil, Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Chevron. Microsoft Twelve years from now, I predict Microsoft will be the largest American company by market cap. Moreover, recent advancements in artificial intelligence (AI) should mean even more revenue growth for Microsoft in the coming years as the company can leverage its existing relationship with OpenAI -- the company behind ChatGPT -- and potentially acquire promising start-ups before they become threats to it.
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Twelve years ago, the four largest American companies by market capitalization were ExxonMobil, Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Chevron. Microsoft Twelve years from now, I predict Microsoft will be the largest American company by market cap. Amazon Currently, Amazon sits in the No.
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15345.0
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2023-06-14 00:00:00 UTC
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Should Vanguard S&P 500 ETF (VOO) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-etf-voo-be-on-your-investing-radar-8
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nan
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nan
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The Vanguard S&P 500 ETF (VOO) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $309.94 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.51%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.60% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 16.39% of total assets under management.
Performance and Risk
VOO seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has added about 14.64% so far this year and is up roughly 18.26% in the last one year (as of 06/14/2023). In the past 52-week period, it has traded between $327.64 and $401.29.
The ETF has a beta of 1 and standard deviation of 18.30% for the trailing three-year period, making it a medium risk choice in the space. With about 506 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 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, VOO is an excellent option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track the same index. While iShares Core S&P 500 ETF has $323.97 billion in assets, SPDR S&P 500 ETF has $414.10 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard S&P 500 ETF (VOO): 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 6.60% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Vanguard S&P 500 ETF (VOO) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard S&P 500 ETF (VOO): 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 6.60% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). The Vanguard S&P 500 ETF (VOO) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard S&P 500 ETF (VOO): 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 6.60% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.60% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Vanguard S&P 500 ETF (VOO) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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15346.0
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2023-06-14 00:00:00 UTC
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Should Vanguard Large-Cap ETF (VV) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-large-cap-etf-vv-be-on-your-investing-radar-1
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Large-Cap ETF (VV), a passively managed exchange traded fund launched on 01/27/2004.
The fund is sponsored by Vanguard. It has amassed assets over $27.76 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.48%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.50% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.52% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
Performance and Risk
VV seeks to match the performance of the CRSP US Large Cap Index before fees and expenses. The CRSP US Large Cap Index includes U.S. companies that comprise the top 85% of investable market capitalization and are traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF return is roughly 15.06% so far this year and was up about 18.46% in the last one year (as of 06/14/2023). In the past 52-week period, it has traded between $162.98 and $199.72.
The ETF has a beta of 1.01 and standard deviation of 18.67% for the trailing three-year period, making it a medium risk choice in the space. With about 563 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VV 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 $323.97 billion in assets, SPDR S&P 500 ETF has $414.10 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Large-Cap ETF (VV): 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 6.52% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Large-Cap ETF (VV): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Large-Cap ETF (VV), a passively managed exchange traded fund launched on 01/27/2004.
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Click to get this free report Vanguard Large-Cap ETF (VV): 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 6.52% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Large-Cap ETF (VV), a passively managed exchange traded fund launched on 01/27/2004.
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Click to get this free report Vanguard Large-Cap ETF (VV): 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 6.52% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report Vanguard Large-Cap ETF (VV): 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 6.52% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Large-Cap ETF (VV), a passively managed exchange traded fund launched on 01/27/2004.
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15347.0
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2023-06-14 00:00:00 UTC
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Nearing Retirement? These Stocks Will Pay You For Life
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AAPL
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https://www.nasdaq.com/articles/nearing-retirement-these-stocks-will-pay-you-for-life-5
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nan
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nan
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Imagine you've put in the work for decades, and you're finally nearing your golden years. You'll soon be retired, free to pursue your passions, spend time with loved ones, and be rewarded for a lifetime of smart financial decisions. Your nest egg will be your support system, financially supporting your wants and needs over the years to come. Ideally, your nest egg will generate passive income, so you don't need to sell your investments to live off of them.
Dividends can do this well. Mature, profitable companies with long track records of paying shareholders, and also increasing the amount they pay yearly, can be a strong foundation for any retirement portfolio.
Here are five fantastic dividend stocks that can pay you for the rest of your life -- without too much stress along the way.
1. Johnson & Johnson
Healthcare is a staple of the economy, and Johnson & Johnson (NYSE: JNJ) shows up throughout the industry. The healthcare conglomerate sells pharmaceutical drugs and medical devices. It recently spun off its consumer products business as Kenvue so it can better focus on growing its remaining business segments. The company is a legendary dividend payer; management has paid and raised its dividend annually for 61 consecutive years, making it a Dividend King.
The company's dividend has a manageable 73% dividend payout ratio, and Johnson & Johnson has arguably the best balance sheet on Wall Street. It's one of only two publicly traded companies with an AAA corporate credit rating -- that's higher than the U.S. government!
The stock yields 3% at the current share price, giving retirees a solid return on investment they can trust.
2. Apple
Almost every adult in the developed world uses smartphones, and the consumer electronics giant Apple (NASDAQ: AAPL) is the king. More than 1.3 billion people use iPhones, and Apple prints cash profits as people replace their devices and subscribe to various services like Music and News. Apple is relatively new to the dividend scene; the company has paid and raised its dividend for 11 years and has invested in famously large share repurchases ($85 billion last year alone).
Apple's dividend is an afterthought financially, with just a 15% payout ratio. The current dividend yield is 0.5%, which might not blow retirees away, but Apple's potential to grow the dividend over the coming years could add enough upside to a portfolio to help outpace inflation.
Apple is a Warren Buffett favorite, and Berkshire Hathaway's largest holding -- quite a vote of confidence.
3. Home Depot
Real estate is a multitrillion-dollar industry and a central piece of American culture. These two tailwinds have made The Home Depot (NYSE: HD) one of the world's largest retailers. The home improvement retailer has more than 2,300 stores across North America and sells materials, tools, appliances, and services to both homeowners and professional contractors.
Home Depot has increased its dividend for 14 consecutive years, and there seems to be more where that came from. The company has a dividend payout ratio of 60%, leaving lots of room for future raises. Additionally, the average home in America is nearly 40 years old, so future needs for remodeling should help support Home Depot's long-term business prospects.
The stock yields 2.8% at its current share price.
4. McDonald's
There isn't a more recognizable name in the fast-food game than McDonald's (NYSE: MCD). The company has been selling burgers and fries for decades, and its 38,000 locations are recognizable virtually worldwide.
McDonald's makes most of its profits by franchising its restaurants and collecting rent on the land. It also collects a percentage of sales.
People eat at McDonald's during both good and bad times, which has helped make McDonald's a durable business that has thrived for decades. Management has paid and raised the dividend for 48 consecutive years. The dividend payout ratio is 75%, which is manageable for a business that doesn't need much investment to maintain itself.
McDonald's converts a third of its revenue into cash profits. Retirees can score a 2.1% dividend yield at the current share price.
5. Procter & Gamble
Household staples are one of the most reliable businesses out there, and Procter & Gamble (NYSE: PG) is the goliath of households worldwide. Check your paper towels, shampoos, detergent, cleaning products, or diapers, and you'll probably see Procter & Gamble's name on the label. Consumers buy these products without thinking twice, a model that's worked for many years.
Procter & Gamble has one of Wall Street's longest dividend growth streaks, at 67 years. Additionally, the 73% dividend payout ratio and stellar balance sheet, leveraged at just 1.6 times earnings before interest, taxes, depreciation, and amortization (EBITDA), virtually ensure that shareholders will continue cashing those quarterly checks for years to come. The stock offers a solid 2.5% yield at the current share price, giving retirees peace of mind and passive income.
10 stocks we like better than Johnson & Johnson
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 Johnson & Johnson 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
Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Home Depot. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Almost every adult in the developed world uses smartphones, and the consumer electronics giant Apple (NASDAQ: AAPL) is the king. The home improvement retailer has more than 2,300 stores across North America and sells materials, tools, appliances, and services to both homeowners and professional contractors. Additionally, the 73% dividend payout ratio and stellar balance sheet, leveraged at just 1.6 times earnings before interest, taxes, depreciation, and amortization (EBITDA), virtually ensure that shareholders will continue cashing those quarterly checks for years to come.
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Apple Almost every adult in the developed world uses smartphones, and the consumer electronics giant Apple (NASDAQ: AAPL) is the king. The company's dividend has a manageable 73% dividend payout ratio, and Johnson & Johnson has arguably the best balance sheet on Wall Street. The stock yields 3% at the current share price, giving retirees a solid return on investment they can trust.
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Apple Almost every adult in the developed world uses smartphones, and the consumer electronics giant Apple (NASDAQ: AAPL) is the king. The company is a legendary dividend payer; management has paid and raised its dividend annually for 61 consecutive years, making it a Dividend King. The company's dividend has a manageable 73% dividend payout ratio, and Johnson & Johnson has arguably the best balance sheet on Wall Street.
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Apple Almost every adult in the developed world uses smartphones, and the consumer electronics giant Apple (NASDAQ: AAPL) is the king. The company's dividend has a manageable 73% dividend payout ratio, and Johnson & Johnson has arguably the best balance sheet on Wall Street. Apple's dividend is an afterthought financially, with just a 15% payout ratio.
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15348.0
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2023-06-14 00:00:00 UTC
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Millionaires’ Secret: Buy These 3 Reliable Blue-Chip Growth Stocks
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AAPL
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https://www.nasdaq.com/articles/millionaires-secret%3A-buy-these-3-reliable-blue-chip-growth-stocks
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Blue-chip stocks are securities of companies that have been around for a long time, have an established track record, are profitable and are viewed as financially fit. Blue-chip stocks tend to be more stable during a market downturn and they are often the first names to recover when conditions improve. Because of their stability and financial health, blue-chip stocks tend to be millionaires’ preferred stocks as opposed to the more volatile stocks of unprofitable start-up companies. For wealthy investors, blue-chip stocks form the foundation of their portfolio. Look at the holdings of many of the most successful investors and you’ll find numerous blue-chip stocks. Here are three top blue-chip growth stocks to buy now for a millionaire investment strategy.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is among the most widely held stocks in the world. Large institutional investors ranging from university endowments to hedge funds own AAPL stock. So too do highly successful, multi-millionaire investors such as Warren Buffett and Ryan Cohen. In fact, Apple is the largest holding of Buffett, who continues to sing the technology company’s praises. Investors large and small like Apple’s product line, its profitability, strong cash position, and the long-term performance of its stock.
Shareholders of Apple also benefit from the stock’s quarterly dividend payment of 24 cents a share, and the fact that Apple buys back more of its own stock than any other publicly traded company. Apple has spent $550 billion buying back its own stock over the last decade, including a $90 billion repurchase in 2022. As for the performance of AAPL stock, it has gained nearly 40% in the last 12 months, risen 288% in the past five years, and its up more than 1,000% since June 2013. No wonder so many people see Apple as a cornerstone of a millionaire investment strategy.
American Express (AXP)
Source: First Class Photography / Shutterstock.com
Another major holding of Warren Buffett and many other millionaires’ preferred stock is credit card giant American Express (NYSE:AXP). The company behind the popular slogan “Don’t Leave Home Without It” has been a consistent winner for its shareholders over the past 50 years. AXP stock has gained 21% this year and is up 77% over the past five years despite a difficult environment that included the Covid-19 pandemic and a prolonged suspension of travel, as well as high inflation and elevated interest rates.
American Express is such an established and reliable blue-chip name that it manages to grow in good economic times and bad. This is impressive considering that the company’s business has remained virtually unchanged since the late 1960s. AmEx credit cards remain popular with wealthy individuals who appreciate the lucrative loyalty rewards offered by the company. This has helped American Express continue to grow its annual revenues.
UnitedHealth Group (UNH)
Source: Ken Wolter / Shutterstock.com
Another rock solid blue-chip stock that is widely held among millionaires and institutions is UnitedHealth Group (NYSE:UNH), the largest health insurer in the U.S. and biggest insurance company by net premiums in the world. The company has annual revenues approaching $300 billion. UNH stock has been a steady long-term performer. Through five years, United Health’s share price has nearly doubled. This year, the stock is down 5%, presenting a buying opportunity for investors.
United Health also pays a strong quarterly dividend of $1.88 per share. And the company consistently posts stronger-than-expected earnings results. UNH’s annual revenue has nearly doubled over the last decade, rising from $144 billion in 2012 to $250 billion in 2022. The insurer’s revenue now surpasses that of JPMorgan Chase (NYSE:JPM), America’s biggest bank. United Health has grown largely through a successful acquisition strategy, with its targets small enough that they encounter little regulatory scrutiny.
On the date of publication, Joel Baglole held long positions in AAPL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is among the most widely held stocks in the world. Large institutional investors ranging from university endowments to hedge funds own AAPL stock. As for the performance of AAPL stock, it has gained nearly 40% in the last 12 months, risen 288% in the past five years, and its up more than 1,000% since June 2013.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is among the most widely held stocks in the world. Large institutional investors ranging from university endowments to hedge funds own AAPL stock. As for the performance of AAPL stock, it has gained nearly 40% in the last 12 months, risen 288% in the past five years, and its up more than 1,000% since June 2013.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is among the most widely held stocks in the world. Large institutional investors ranging from university endowments to hedge funds own AAPL stock. As for the performance of AAPL stock, it has gained nearly 40% in the last 12 months, risen 288% in the past five years, and its up more than 1,000% since June 2013.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is among the most widely held stocks in the world. Large institutional investors ranging from university endowments to hedge funds own AAPL stock. As for the performance of AAPL stock, it has gained nearly 40% in the last 12 months, risen 288% in the past five years, and its up more than 1,000% since June 2013.
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15349.0
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2023-06-14 00:00:00 UTC
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Looking for Tech Stocks? These 3 Are Great Buys
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AAPL
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https://www.nasdaq.com/articles/looking-for-tech-stocks-these-3-are-great-buys-9
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nan
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nan
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Tech stocks have long had a reputation for reliable growth, primarily thanks to the innovative nature of the industry. Over the last decade, the Nasdaq-100 Technology Sector index soared 395%. Meanwhile, the Nasdaq Composite index is up 286% in the same period. As a result, it's wise to dedicate a good portion of your portfolio to tech companies to profit from the industry's consistent development.
Companies like Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Advanced Micro Devices (NASDAQ: AMD) are attractive options right now alongside the potential of their respective markets. Apple's dominance in consumer tech makes it one of the most reliable investments. Meanwhile, Alphabet is making promising moves in artificial intelligence (AI). Additionally, AMD is a buy with its ability to supply chips to the entire market.
So, looking for tech stocks? Here are three great buys.
1. Apple: Unrivaled dominance with consumers
Apple is one of the easiest tech stocks to recommend, thanks to its reputation for consistent growth. The company's stock has climbed more than 1,000% in the last decade, attracting some of the world's most successful investors. Warren Buffett is famously a big fan of Apple, with his holdings company Berkshire Hathaway making the iPhone manufacturer 48% of its portfolio. Comparatively, its second-largest holding is Bank of America, with a 9% portion.
The company's success can mainly be attributed to its nearly unrivaled dominance in consumer tech. Apple holds leading market shares in smartphones, tablets, smartwatches, and headphones as it has attracted millions of shoppers with its priority quality and user-friendly design language.
Apple's dominance in the market has proved its strength over the last year amid an economic downturn. According to data from IDC, in the first quarter of 2023, Samsung and Xiaomi experienced smartphone shipment declines of 19% and 24%. Meanwhile, the same period saw Apple report a 2% revenue rise in its iPhone segment.
As Apple continues to grow its business through new products and services, it makes an excellent tech stock to hold onto for the long term.
2. Alphabet: A bargain buy
Alphabet has had a challenging couple of years, with rises in inflation causing businesses to cut digital ad spending. As a result, the company's Google advertising segment, responsible for 78% of all income, reported a decrease in revenue in Q1 2023. The decline comes after years of critics noting Alphabet's earnings were far too reliant on digital advertising.
However, after recently pivoting its business to include AI and cloud computing, the company's stock has become a compelling buy. Alphabet's stronger focus on these markets comes as its cloud platform Google Cloud hit profitability for the first time in Q1 2023, reporting $191 million in operating income. The achievement is a promising sign of the company's potential in the booming sectors.
Data by YCharts.
Moreover, Alphabet's stumble over the last year has made its stock a bargain compared to the competition. The chart above shows that Alphabet's forward price-to-earnings ratio is far lower than fellow tech giants Amazon, Microsoft, and Apple. The figure makes Alphabet shares an exciting way to invest in the future of the cloud and AI markets.
3. Advanced Micro Devices: A diversified business model
Advanced Micro Devices has captured Wall Street's attention in 2023, with its stock up 97% since Jan. 1 based on its prospects in AI. However, don't let the significant rise in stock price scare you off. The company's shares have increased by 710% in the last five years alone. Meanwhile, AMD's participation in multiple high-growth markets indicates its stock still has plenty of room to rise over the long term.
While some might say the most compelling part of AMD's business is its potential in AI, I'd say it's how varied its earnings have grown in recent years. The company offers investors the opportunity to back several lucrative industries, including cloud computing, AI, console gaming, PC components, and more, thanks to the varied uses of AMD's chips. The company has become the go-to for many tech companies seeking powerful hardware to take their devices to the next level.
AMD's potential is evident by its price/earnings-to-growth ratio of 0.2, which suggests projected growth is not priced into its shares. So despite a rally this year, AMD remains a great tech stock to buy right now.
10 stocks we like better than Apple
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*Stock Advisor returns as of June 12, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Companies like Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Advanced Micro Devices (NASDAQ: AMD) are attractive options right now alongside the potential of their respective markets. Warren Buffett is famously a big fan of Apple, with his holdings company Berkshire Hathaway making the iPhone manufacturer 48% of its portfolio. Apple holds leading market shares in smartphones, tablets, smartwatches, and headphones as it has attracted millions of shoppers with its priority quality and user-friendly design language.
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Companies like Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Advanced Micro Devices (NASDAQ: AMD) are attractive options right now alongside the potential of their respective markets. However, after recently pivoting its business to include AI and cloud computing, the company's stock has become a compelling buy. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, and Microsoft.
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Companies like Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Advanced Micro Devices (NASDAQ: AMD) are attractive options right now alongside the potential of their respective markets. Apple: Unrivaled dominance with consumers Apple is one of the easiest tech stocks to recommend, thanks to its reputation for consistent growth. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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Companies like Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Advanced Micro Devices (NASDAQ: AMD) are attractive options right now alongside the potential of their respective markets. So, looking for tech stocks? That's right -- they think these 10 stocks are even better buys.
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15350.0
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2023-06-14 00:00:00 UTC
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Apple Stock: Buy, Sell, or Hold?
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-buy-sell-or-hold-0
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Apple (NASDAQ: AAPL) has surged back with gusto this year after macroeconomic headwinds dragged the shares down 27% in 2022. The stock is currently up a blistering 46% since Jan. 1.
Apple has rallied investors once again based on consistent demand for its products, a steadily growing services business, and recent expansion into a new category. Apple has massive potential in the future of virtual/augmented reality (VR/AR).
So, despite its position as the world's most valuable company, it still has plenty of room for growth. Here's why the stock is a buy now.
Long-term prospects in virtual and augmented reality
On June 5, Apple unveiled its highly anticipated VR/AR headset, the Vision Pro. The device confirmed years of speculation that the company had plans to enter the sector. The new headset has seemingly made leaps in innovation, with Apple essentially offering an entire desktop experience in virtual or augmented reality.
Equipped with the same chip as a MacBook Air, the Vision Pro can perform everyday tasks such as web browsing, word processing, video editing, and entertainment activities like streaming and gaming. Apple has set itself apart from popular headsets by Meta Platforms and Sony by offering all of its homegrown apps in the Vision Pro. Platforms like FaceTime, Messages, Safari, and more give Apple's headset a massive advantage over the competition.
However, the Vision Pro is a slight disappointment with its price: $3,500. The high cost has shut out many consumers who might have been open to adopting the developing technology.
As a result, it's crucial to keep a long-term perspective on Apple's VR/AR prospects. The company will likely bring down the price in future iterations of the headset, a tactic it has used with its other products. Devices like the iPad, Apple Watch, and even the iPhone have all seen lower-cost versions over the years, which were used to attract a broader range of consumers.
According to Fortune Business Insights, the VR market alone is projected to enjoy a compound annual growth rate of 45% through 2029. Apple's operating system and consumer brand loyalty could see the company soon dominate the high-growth industry, making its stock an attractive long-term option.
A booming services business
In addition to VR/AR prospects, Apple has strengthened its business over the years with a steady expansion into digital services. Platforms like Apple TV+, Music, Arcade, iCloud, News+, and Fitness+ allow the company to lean less on its product sales in the event of temporary economic headwinds.
Services has become Apple's second-highest earnings segment after the iPhone. In fiscal 2022, services reported 14% year-over-year revenue growth, double that of the iPhone. The digital business also has attractive profit margins, with the segment hitting a margin percentage of 71% last year, while the same figure for products came to 36%.
Moreover, Apple is gradually growing its position in the fintech industry. The company debuted its first credit card in 2019, hitting 6.7 million cardholders at the start of 2022. Then in May of this year, Apple took another step in the sector by launching a savings account, which saw nearly $1 billion in deposits in its first four days.
Apple has had immense success with its products over the years. But its services business strengthens the argument for its stock by diversifying its earnings and instilling stability in its shares.
Data by YCharts.
And as seen in the chart above, the company's price-to-earnings ratio (P/E) is the lowest among some of its biggest competitors. While a P/E of 30 isn't optimal, it still makes the stock a better value than that of tech giants like Amazon, Microsoft, and Meta. With all it has going for it, including great potential now in VR/AR and a promising services business, Apple stock is a no-brainer 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 5, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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 surged back with gusto this year after macroeconomic headwinds dragged the shares down 27% in 2022. The new headset has seemingly made leaps in innovation, with Apple essentially offering an entire desktop experience in virtual or augmented reality. Equipped with the same chip as a MacBook Air, the Vision Pro can perform everyday tasks such as web browsing, word processing, video editing, and entertainment activities like streaming and gaming.
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Apple (NASDAQ: AAPL) has surged back with gusto this year after macroeconomic headwinds dragged the shares down 27% in 2022. Long-term prospects in virtual and augmented reality On June 5, Apple unveiled its highly anticipated VR/AR headset, the Vision Pro. See the 10 stocks *Stock Advisor returns as of June 5, 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 (NASDAQ: AAPL) has surged back with gusto this year after macroeconomic headwinds dragged the shares down 27% in 2022. Apple's operating system and consumer brand loyalty could see the company soon dominate the high-growth industry, making its stock an attractive long-term option. A booming services business In addition to VR/AR prospects, Apple has strengthened its business over the years with a steady expansion into digital services.
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Apple (NASDAQ: AAPL) has surged back with gusto this year after macroeconomic headwinds dragged the shares down 27% in 2022. A booming services business In addition to VR/AR prospects, Apple has strengthened its business over the years with a steady expansion into digital services. Services has become Apple's second-highest earnings segment after the iPhone.
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15351.0
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2023-06-13 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq hit fresh 1-yr highs as inflation data boosts rate pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-hit-fresh-1-yr-highs-as-inflation-data-boosts-rate-pause-hopes-0
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nan
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nan
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By Shristi Achar A and Sruthi Shankar
June 13 (Reuters) - The S&P 500 and Nasdaq rose to fresh one-year highs on Tuesday after data showed consumer prices rose modestly in May, boosting hopes that the Federal Reserve could skip raising interest rates at the end of its policy meeting on Wednesday.
The U.S. Labor Department report showed consumer price index(CPI) rose 0.1% last month compared with a 0.4% jump in April, with core inflation remaining unchanged at 0.4%.
On a year-on-year basis, headline inflation increased by a lower-than-estimated 4.0%, reflecting declines in the cost of energy products and services, including gasoline and electricity.
"The data basically came within consensus estimates, except that core inflation remained stubbornly high," said Quincy Krosby, chief global strategist at LPL Financial.
"For tomorrow, the market is not expecting a rate hike and hoping that when we come to July 26, core inflation will come down in a more material way."
Traders have priced in a 92% chance that the U.S. central bank will hold interest rates at the 5%-5.25% range on Wednesday but see a 60% chance of another 25-basis-point hike in July, according to the CME Fedwatch tool.
The S&P 500 and Nasdaq have hit fresh highs for the year in the past few sessions, lifted by market heavyweights such as Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O.
The benchmark S&P 500 has risen 21% from its October 2022 lows, heralding a bull market according to some investors.
The rally, which has largely been driven by gains in megacap stocks, has broadened recently to include economy-linked sectors such as energy .SPNY and materials .SPLRCM as well as small-cap stocks.
The two sectors were up 1.5% and 2.2%, respectively, as commodity prices including those of oil and copper climbed against a falling dollar, also underpinned by hopes of more support for China's slowing economy. O/RMET/L
The small-cap Russell 2000 index .RUT jumped 1.4% to hit a fresh three-month high.
"Having the Russell 2000 compliment the move in the Nasdaq is helpful to push back concerns that this is still a very narrow led market," Krosby said.
U.S.-listed shares of Chinese companies including JD.com JD.O, Alibaba Group BABA.N, Baidu BIDU.O and Netease NTES.O rose, tracking gains in Shanghai markets, after China's central bank lowered its short-term lending rate for the first time in 10 months.
At 12:49 p.m. ET, the Dow Jones Industrial Average .DJI was up 171.66 points, or 0.50%, at 34,237.99, the S&P 500 .SPX was up 30.07 points, or 0.69%, at 4,369.00, and the Nasdaq Composite .IXIC was up 97.95 points, or 0.73%, at 13,559.87.
OracleORCL.N rose 1%, having hit a record high earlier on upbeat quarterly revenue and forecast, while IntelINTC.O gained 1.8% on talks with SoftBank Group Corp's 9984.T Arm to be an anchor investor in its initial public offering.
Bunge Ltd BG.N added 1.8% after the U.S. grains merchant and Glencore GLEN.L-backed Viterra said they were merging to create an agricultural trading giant worth about $34 billion, including debt.
Advancing issues outnumbered decliners by a 3.37-to-1 ratio on the NYSE and 2.41-to-1 ratio on the Nasdaq.
The S&P index recorded 41 new 52-week highs and no new low, while the Nasdaq recorded 126 new highs and 36 new lows.
Rates and inflation Rates and inflation https://tmsnrt.rs/3U8HdD2
(Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru; Editing by Vinay Dwivedi)
((Shristi.AcharA@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 S&P 500 and Nasdaq have hit fresh highs for the year in the past few sessions, lifted by market heavyweights such as Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. The U.S. Labor Department report showed consumer price index(CPI) rose 0.1% last month compared with a 0.4% jump in April, with core inflation remaining unchanged at 0.4%. U.S.-listed shares of Chinese companies including JD.com JD.O, Alibaba Group BABA.N, Baidu BIDU.O and Netease NTES.O rose, tracking gains in Shanghai markets, after China's central bank lowered its short-term lending rate for the first time in 10 months.
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The S&P 500 and Nasdaq have hit fresh highs for the year in the past few sessions, lifted by market heavyweights such as Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. By Shristi Achar A and Sruthi Shankar June 13 (Reuters) - The S&P 500 and Nasdaq rose to fresh one-year highs on Tuesday after data showed consumer prices rose modestly in May, boosting hopes that the Federal Reserve could skip raising interest rates at the end of its policy meeting on Wednesday. The U.S. Labor Department report showed consumer price index(CPI) rose 0.1% last month compared with a 0.4% jump in April, with core inflation remaining unchanged at 0.4%.
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The S&P 500 and Nasdaq have hit fresh highs for the year in the past few sessions, lifted by market heavyweights such as Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. By Shristi Achar A and Sruthi Shankar June 13 (Reuters) - The S&P 500 and Nasdaq rose to fresh one-year highs on Tuesday after data showed consumer prices rose modestly in May, boosting hopes that the Federal Reserve could skip raising interest rates at the end of its policy meeting on Wednesday. The S&P index recorded 41 new 52-week highs and no new low, while the Nasdaq recorded 126 new highs and 36 new lows.
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The S&P 500 and Nasdaq have hit fresh highs for the year in the past few sessions, lifted by market heavyweights such as Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. By Shristi Achar A and Sruthi Shankar June 13 (Reuters) - The S&P 500 and Nasdaq rose to fresh one-year highs on Tuesday after data showed consumer prices rose modestly in May, boosting hopes that the Federal Reserve could skip raising interest rates at the end of its policy meeting on Wednesday. Traders have priced in a 92% chance that the U.S. central bank will hold interest rates at the 5%-5.25% range on Wednesday but see a 60% chance of another 25-basis-point hike in July, according to the CME Fedwatch tool.
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15352.0
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2023-06-13 00:00:00 UTC
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US STOCKS-Wall St eyes higher open as inflation data boosts rate pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-higher-open-as-inflation-data-boosts-rate-pause-hopes
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nan
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(For a Reuters live blog on U.S., UK and European stock markets, click [LIVE/] or type LIVE/ in a news window.)
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Consumer price index rises 0.1% in May
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Apple slips on UBS downgrade
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Oracle jumps on upbeat forecast
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Futures up: Dow 0.16%, S&P 0.35%, Nasdaq 0.69%
(Updated at 8:53 a.m. ET/ 1253 GMT)
By Shristi Achar A and Sruthi Shankar
June 13 (Reuters) - U.S. stock indexes were set to open higher on Tuesday as data showed consumer prices rose modestly in May, cementing expectations that the Federal Reserve could skip raising interest rates this week.
The U.S. Labor Department's consumer price index (CPI) reading showed inflation rose 0.1% last month compared with a 0.4% jump in April, with core inflation remaining unchanged at 0.4%.
On a year-on-year basis, headline inflation increased by a lower-than-estimated 4.0%, the smallest rise in more than two years.
The Fed will commence its two-day policy meeting later in the day, with an interest rate decision due on Wednesday, followed by Chair Jerome Powell's news conference.
"Today's fall in the rate of inflation is likely to be welcomed by investors, but it remains stubbornly above the Fed's 2% target," said Richard Flynn, managing director of Charles Schwab UK.
"The good news is that the 'stickiness' in inflation is now confined to a smaller number of categories compared to earlier in the year."
Traders have fully priced in that the central bank will hold interest rates at the 5%-5.25% range, while expecting a 67% chance of a 25-basis-point hike in July, according to the CME Fedwatch tool.
The S&P 500 logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com , Apple and Tesla .
The benchmark S&P 500 has risen 21% from its October 2022 lows, heralding a bull market according to some investors.
At 8:53 a.m. ET, Dow e-minis were up 56 points, or 0.16%, S&P 500 e-minis were up 15.25 points, or 0.35%, and Nasdaq 100 e-minis were up 101.75 points, or 0.69%.
Oracle Corp jumped 5.7% premarket as the software firm topped quarterly revenue estimates and forecast an upbeat current quarter.
Intel Corp gained 3.4% after the chipmaker entered in talks with SoftBank Group Corp's Arm to be an anchor investor in its initial public offering.
Apple slipped 0.4% after UBS downgraded the iPhone maker to "neutral" from "buy".
Advanced Micro Devices rose 2.8% ahead of unveiling details about its "AI Superchip".
Bunge Ltd slipped 2.0% after the U.S. grains merchant and Glencore -backed Viterra said they were merging to create an agricultural trading giant worth about $34 billion, including debt.
U.S.-listed shares of Chinese companies including JD.com , Alibaba Group , Baidu and Netease rose between 2.8% and 5.3% after China's central bank lowered its short-term lending rate for the first time in 10 months.
https://tmsnrt.rs/3NmS4rA
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru Editing by Vinay Dwivedi) ((Shristi.AcharA@thomsonreuters.com;)) Keywords: USA STOCKS/ (UPDATE 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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* Consumer price index rises 0.1% in May * Apple slips on UBS downgrade * Oracle jumps on upbeat forecast * Futures up: Dow 0.16%, S&P 0.35%, Nasdaq 0.69% (Updated at 8:53 a.m. ET/ 1253 GMT) By Shristi Achar A and Sruthi Shankar June 13 (Reuters) - U.S. stock indexes were set to open higher on Tuesday as data showed consumer prices rose modestly in May, cementing expectations that the Federal Reserve could skip raising interest rates this week. "Today's fall in the rate of inflation is likely to be welcomed by investors, but it remains stubbornly above the Fed's 2% target," said Richard Flynn, managing director of Charles Schwab UK. U.S.-listed shares of Chinese companies including JD.com , Alibaba Group , Baidu and Netease rose between 2.8% and 5.3% after China's central bank lowered its short-term lending rate for the first time in 10 months.
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* Consumer price index rises 0.1% in May * Apple slips on UBS downgrade * Oracle jumps on upbeat forecast * Futures up: Dow 0.16%, S&P 0.35%, Nasdaq 0.69% (Updated at 8:53 a.m. ET/ 1253 GMT) By Shristi Achar A and Sruthi Shankar June 13 (Reuters) - U.S. stock indexes were set to open higher on Tuesday as data showed consumer prices rose modestly in May, cementing expectations that the Federal Reserve could skip raising interest rates this week. The U.S. Labor Department's consumer price index (CPI) reading showed inflation rose 0.1% last month compared with a 0.4% jump in April, with core inflation remaining unchanged at 0.4%. ET, Dow e-minis were up 56 points, or 0.16%, S&P 500 e-minis were up 15.25 points, or 0.35%, and Nasdaq 100 e-minis were up 101.75 points, or 0.69%.
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* Consumer price index rises 0.1% in May * Apple slips on UBS downgrade * Oracle jumps on upbeat forecast * Futures up: Dow 0.16%, S&P 0.35%, Nasdaq 0.69% (Updated at 8:53 a.m. ET/ 1253 GMT) By Shristi Achar A and Sruthi Shankar June 13 (Reuters) - U.S. stock indexes were set to open higher on Tuesday as data showed consumer prices rose modestly in May, cementing expectations that the Federal Reserve could skip raising interest rates this week. The U.S. Labor Department's consumer price index (CPI) reading showed inflation rose 0.1% last month compared with a 0.4% jump in April, with core inflation remaining unchanged at 0.4%. "Today's fall in the rate of inflation is likely to be welcomed by investors, but it remains stubbornly above the Fed's 2% target," said Richard Flynn, managing director of Charles Schwab UK.
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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.) * Consumer price index rises 0.1% in May * Apple slips on UBS downgrade * Oracle jumps on upbeat forecast * Futures up: Dow 0.16%, S&P 0.35%, Nasdaq 0.69% (Updated at 8:53 a.m. ET/ 1253 GMT) By Shristi Achar A and Sruthi Shankar June 13 (Reuters) - U.S. stock indexes were set to open higher on Tuesday as data showed consumer prices rose modestly in May, cementing expectations that the Federal Reserve could skip raising interest rates this week. "The good news is that the 'stickiness' in inflation is now confined to a smaller number of categories compared to earlier in the year."
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15353.0
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2023-06-13 00:00:00 UTC
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After Hours Most Active for Jun 13, 2023 : EXPI, CSCO, PRVA, HBAN, T, TAL, AAPL, F, WBD, VZ, HPE, GM
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jun-13-2023-%3A-expi-csco-prva-hban-t-tal-aapl-f-wbd-vz-hpe-gm
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 1.59 to 14,902.44. The total After hours volume is currently 120,379,979 shares traded.
The following are the most active stocks for the after hours session:
eXp World Holdings, Inc. (EXPI) is -0.09 at $19.88, with 6,674,633 shares traded. As reported in the last short interest update the days to cover for EXPI is 17.777046; this calculation is based on the average trading volume of the stock.
Cisco Systems, Inc. (CSCO) is +0.01 at $50.81, with 6,211,631 shares traded. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $0.95. CSCO's current last sale is 93.23% of the target price of $54.5.
Privia Health Group, Inc. (PRVA) is -0.37 at $28.51, with 5,956,937 shares traded. PRVA's current last sale is 71.28% of the target price of $40.
Huntington Bancshares Incorporated (HBAN) is unchanged at $11.24, with 4,991,612 shares traded. HBAN's current last sale is 86.46% of the target price of $13.
AT&T Inc. (T) is -0.0001 at $15.82, with 4,750,901 shares traded. As reported by Zacks, the current mean recommendation for T is in the "buy range".
TAL Education Group (TAL) is unchanged at $6.32, with 3,134,604 shares traded. TAL's current last sale is 108.97% of the target price of $5.8.
Apple Inc. (AAPL) is -0.12 at $183.19, with 3,010,141 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Ford Motor Company (F) is +0.01 at $14.14, with 2,952,594 shares traded. F's current last sale is 107.12% of the target price of $13.2.
Warner Bros. Discovery, Inc. (WBD) is +0.02 at $13.81, with 2,852,588 shares traded. As reported by Zacks, the current mean recommendation for WBD is in the "buy range".
Verizon Communications Inc. (VZ) is unchanged at $35.48, with 2,851,390 shares traded. VZ's current last sale is 85.49% of the target price of $41.5.
Hewlett Packard Enterprise Company (HPE) is +0.04 at $16.68, with 2,380,499 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $0.3. HPE's current last sale is 101.09% of the target price of $16.5.
General Motors Company (GM) is -0.02 at $37.63, with 2,324,803 shares traded. GM's current last sale is 85.52% of the target price of $44.
The views and 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 -0.12 at $183.19, with 3,010,141 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for EXPI is 17.777046; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is -0.12 at $183.19, with 3,010,141 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 120,379,979 shares traded.
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Apple Inc. (AAPL) is -0.12 at $183.19, with 3,010,141 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 120,379,979 shares traded.
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Apple Inc. (AAPL) is -0.12 at $183.19, with 3,010,141 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 1.59 to 14,902.44.
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15354.0
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2023-06-13 00:00:00 UTC
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3 Top Metaverse Stocks That Analysts Adore
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AAPL
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https://www.nasdaq.com/articles/3-top-metaverse-stocks-that-analysts-adore
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nan
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nan
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The Metaverse isn't just a passing fad. It's here to stay, and it's not too late to hand-pick several top metaverse stocks that analysts love in 2023. Only a few of them will actually make the grade, but successful traders are choosy, and if you're going to invest in the Metaverse, you might as well stick with the best and forget about the rest.
Maybe you haven't personally experienced the Metaverse, where participants can interact through virtual characters, play immersive video games, and of course, make purchases along the way (that's how revenue is generated, after all). It's fine if you're not directly involved with virtual and augmented reality, as you can still consider giving any or all of these metaverse stocks a try.
Moreover, you'll at least have the added assurance that comes with picking stocks that are rated as Strong Buys on Wall Street (which is why, for example, I didn't include chip champ Advanced Micro Devices (NASDAQ:AMD) on the list, since Wall Street currently only rates it a Moderate Buy). With those criteria in mind, let's dive right into the three Strong-Buy rated metaverse stocks I am bullish on.
Meta Platforms (NASDAQ:META)
Formerly known as Facebook, Meta Platforms is so metaverse-focused that CEO Mark Zuckerberg purposely changed its name and stock ticker symbol to emphasize "META." Speaking of the stock, it has zoomed higher since November of last year, but don't assume the rally is running out of steam. After all, the skeptics can't begrudge Meta Platforms' impressive first-quarter 2023 earnings beat.
Still, some critics might contend that Zuckerberg and Meta Platforms have given up on the Metaverse in favor of more artificial-intelligence (AI) focused efforts. It is true that Meta Platforms has taken a financial hit during its initial foray into virtual and augmented reality experiences, but that's to be expected in the initial stages of a major corporate re-branding. In any case, Zuckerberg has assured Meta Platforms' stakeholders, "We’ve been focusing on both AI and the Metaverse for years now, and we will continue to focus on both."
To reinforce this commitment, Meta Platforms recently released the Quest 3 mixed reality headset. Its starting price is $499 - which, as we'll see in a moment, actually isn't very expensive - and Meta Platforms touted the Quest 3 as “the first mainstream headset with high-res color mixed reality.” Thus, Meta Platforms is still pushing the boundaries of metaverse-capable hardware, so let's now check in with Wall Street to see if they're on board with Zuckerberg's bold vision for the company.
What is the Price Target for META Stock?
According to TipRanks’ analyst rating consensus, META is a Strong Buy based on 38 Buys, five Holds, and zero Sell ratings. The average Meta Platforms stock price target is $287.32, implying 5.9% upside potential.
Apple (NASDAQ:AAPL)
Apple stock isn't a pure play on the Metaverse, as the company's primary revenue generator is the iPhone. Yet, Apple is a darling of the market with a clear-cut metaverse connection since the company recently revealed its Apple Vision Pro "spatial computer."
That's really just a fancy way of saying the Vision Pro is a feature-rich mixed-reality headset, which is ideal for handling high-resolution metaverse experiences. However, whether the public is willing to pay $3,499 for the Vision Pro -- which is set to be released to the public early next year -- remains to be seen.
I'm actually fairly optimistic that this "spatial computer" will be a decent revenue generator for Apple. Bear in mind that new iPhone versions are sold on quality and brand-name prestige, not on price. Apple has disrupted tech-gadget niche markets before, so why couldn't the company change the game (literally) in metaverse-compatible gear? For his part, Wedbush analyst Daniel Ives anticipates that more consumers will come on board, especially since Apple will probably eventually reduce the price of the Vision Pro.
What is the Price Target for AAPL Stock?
Turning to Wall Street, AAPL is a Strong Buy based on 22 Buys, seven Holds, and not a single Sell rating. The average Apple stock price target is $189.17, implying 3.2% upside potential.
Sea Limited (NYSE:SE)
My third metaverse stock pick is one that you may not be as familiar with. Sea Limited is based in Singapore, and the company has e-commerce and fintech divisions, but it's Sea Limited's gaming business, Garena, that provides interactive virtual experiences and, therefore, a metaverse angle.
Unlike META stock and AAPL stock, SE stock dropped recently, thereby providing an opportunity for dip-buyers. On the financial side of the equation, Sea Limited's total revenue, gross profit, and balance of cash, cash equivalents, and short-term investments have remained fairly steady from one quarter to the next.
As Sea Limited continues to generate revenue from immersive game titles like Star Wars Jedi: Survivor, the company has picked up a notable investor -- Saudi Arabia’s sovereign wealth fund, known as the Public Investment Fund or PIF. In this year's first quarter, the PIF increased its stake in Sea Limited by a jaw-dropping 248%. Now, that's what I would call a confident position. So, let's swing by Wall Street now to see if they're equally confident in Sea Limited.
What is the Price Target for SE Stock?
On Wall Street, SE stock comes in as a Strong Buy based on 10 Buys and three Holds, with no Sell ratings whatsoever. The average Sea Limited stock price target is $100.26, implying 52.6% upside potential.
Conclusion: Should You Consider Metaverse Stocks?
Clearly, publicly-listed technology companies don't address the ever-growing metaverse in the same way. It's different strokes for different folks, but the good thing is that you get to pick and choose your favorite metaverse stocks for your portfolio.
No matter how you strategize your metaverse stock allocations, I definitely feel it's worthwhile to conduct your due diligence and have some metaverse market exposure (this is not professional financial advice, of course). Otherwise, you might miss out on an emerging tech segment where the objects may be virtual, but the revenue is 100% real.
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) Apple stock isn't a pure play on the Metaverse, as the company's primary revenue generator is the iPhone. What is the Price Target for AAPL Stock? Turning to Wall Street, AAPL is a Strong Buy based on 22 Buys, seven Holds, and not a single Sell rating.
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Apple (NASDAQ:AAPL) Apple stock isn't a pure play on the Metaverse, as the company's primary revenue generator is the iPhone. What is the Price Target for AAPL Stock? Turning to Wall Street, AAPL is a Strong Buy based on 22 Buys, seven Holds, and not a single Sell rating.
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Apple (NASDAQ:AAPL) Apple stock isn't a pure play on the Metaverse, as the company's primary revenue generator is the iPhone. What is the Price Target for AAPL Stock? Turning to Wall Street, AAPL is a Strong Buy based on 22 Buys, seven Holds, and not a single Sell rating.
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Apple (NASDAQ:AAPL) Apple stock isn't a pure play on the Metaverse, as the company's primary revenue generator is the iPhone. What is the Price Target for AAPL Stock? Turning to Wall Street, AAPL is a Strong Buy based on 22 Buys, seven Holds, and not a single Sell rating.
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15355.0
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2023-06-13 00:00:00 UTC
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Arm in talks with big clients about investing in IPO -sources
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AAPL
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https://www.nasdaq.com/articles/arm-in-talks-with-big-clients-about-investing-in-ipo-sources
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nan
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nan
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Adds more companies in discussion with Arm
June 12 (Reuters) - SoftBank Group Corp's 9984.T Arm is in talks with some of its biggest customers and end users about bringing on one or more anchor investors in the chip designer's initial public offering (IPO), two sources familiar with the matter said.
Arm is talking to at least ten companies, including Intel Corp INTC.O, AlphabetInc GOOGL.O, Apple Inc.AAPL.O, Microsoft Corp.MSFT.O, TSMC 2330.TW, and Samsung Electronics Co Ltd.005930.KS, about their potential participation in the IPO,one of the sources said.
The talks are preliminary and any decision about an anchor investment in Arm's IPO won't come till August, the source added. The investment would not come with any board seat or control, according to the source.
Arm plans to sell its shares on Nasdaq later this year, seeking to raise $8 billion-$10 billion, Reuters reported earlier in April.
Arm's designs are used to manufacture chips made by most of the world's major semiconductor companies, including Intel, AMD AMD.O, Nvidia NVDA.O and Qualcomm QCOM.O. It was not immediately clear what impact any IPO investment by one or more of those companies would have on Arm's commercial relationships.
The chip designer had filed with regulators confidentially for a U.S. stock market listing in April, setting the stage for this year's largest IPO.
Arm and Intel declined a Reuters request for comment. Bloomberg News first reported on the cornerstone investment deliberations.
Alphabet, Apple, Microsoft, TSMC and Samsung didn't immediately respond to requests for comment.
(Reporting by Anirban Sen and Echo Wang in New York and Yana Gaur in Bengaluru; Editing by Rashmi Aich, Dhanya Ann Thoppil and Edward Tobin)
((Yana.Gaur@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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Arm is talking to at least ten companies, including Intel Corp INTC.O, AlphabetInc GOOGL.O, Apple Inc.AAPL.O, Microsoft Corp.MSFT.O, TSMC 2330.TW, and Samsung Electronics Co Ltd.005930.KS, about their potential participation in the IPO,one of the sources said. Arm plans to sell its shares on Nasdaq later this year, seeking to raise $8 billion-$10 billion, Reuters reported earlier in April. Arm's designs are used to manufacture chips made by most of the world's major semiconductor companies, including Intel, AMD AMD.O, Nvidia NVDA.O and Qualcomm QCOM.O.
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Arm is talking to at least ten companies, including Intel Corp INTC.O, AlphabetInc GOOGL.O, Apple Inc.AAPL.O, Microsoft Corp.MSFT.O, TSMC 2330.TW, and Samsung Electronics Co Ltd.005930.KS, about their potential participation in the IPO,one of the sources said. The talks are preliminary and any decision about an anchor investment in Arm's IPO won't come till August, the source added. Alphabet, Apple, Microsoft, TSMC and Samsung didn't immediately respond to requests for comment.
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Arm is talking to at least ten companies, including Intel Corp INTC.O, AlphabetInc GOOGL.O, Apple Inc.AAPL.O, Microsoft Corp.MSFT.O, TSMC 2330.TW, and Samsung Electronics Co Ltd.005930.KS, about their potential participation in the IPO,one of the sources said. Adds more companies in discussion with Arm June 12 (Reuters) - SoftBank Group Corp's 9984.T Arm is in talks with some of its biggest customers and end users about bringing on one or more anchor investors in the chip designer's initial public offering (IPO), two sources familiar with the matter said. The talks are preliminary and any decision about an anchor investment in Arm's IPO won't come till August, the source added.
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Arm is talking to at least ten companies, including Intel Corp INTC.O, AlphabetInc GOOGL.O, Apple Inc.AAPL.O, Microsoft Corp.MSFT.O, TSMC 2330.TW, and Samsung Electronics Co Ltd.005930.KS, about their potential participation in the IPO,one of the sources said. Adds more companies in discussion with Arm June 12 (Reuters) - SoftBank Group Corp's 9984.T Arm is in talks with some of its biggest customers and end users about bringing on one or more anchor investors in the chip designer's initial public offering (IPO), two sources familiar with the matter said. Alphabet, Apple, Microsoft, TSMC and Samsung didn't immediately respond to requests for comment.
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15356.0
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2023-06-13 00:00:00 UTC
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Apple's Impressive First Shot and a Messy Crypto Situation
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AAPL
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https://www.nasdaq.com/articles/apples-impressive-first-shot-and-a-messy-crypto-situation
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nan
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nan
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In this podcast, Motley Fool senior analysts Jason Moser and Matt Argersinger discuss:
Apple's Vision Pro headset and the company's new focus on spatial computing.
How the offering stacks up to Meta's Quest products.
The SEC's suit against Coinbase and Binance, and what it means for crypto.
Motley Fool host Deidre Woollard speaks with Wall Street Journal reporter and author Katherine Clarke about the business of New York real estate and her new book, Billionaire's Row.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 12, 2023
This video was recorded on June 9, 2023.
Dylan Lewis: Apple is trying to usher in the next era of computing. Motley Fool Money starts now.
...
Dylan Lewis: It's the Motley Fool Money radio show. I'm Dylan Lewis. Joining me in studio, Motley Fool senior analysts Matt Argersinger and Jason Moser. Guys, great to have you both here.
We've got the scoop on the New York City skyline, the latest earnings news, and radar stocks. But we're kicking things off with the news of the week. Jason, Apple has a new product.
Jason Moser: Yes, they do.
Dylan Lewis: The company unveiled its new Vision Pro headset at its Worldwide Developers Conference this week. The headset will be available next year and retail for $3,500. Jason, you run our augmented reality service here at the Fool, so I was excited to talk to you about this news. In particular, what stood out to you with the announcement and the details that came out this week?
Jason Moser: You're right. I do run the augmented reality service, and talk about "we've been waiting for this for a while." The service opened up four years ago, basically waiting for this announcement. It's been a long time coming, but better late than never.
I think No. 1, this is very impressive technology. You have to acknowledge the fact, this is just really impressive technology. I think that in regard to Apple's headset, the use of mixed reality is an important distinction versus other main competitors. I think incorporating augmented and virtual reality into an experience as opposed to it just being straight-up virtual reality, where you're living in this digital virtual world, probably gives it more utility. Now I think we have to discover what that utility is, and we will, in time. I think ultimately, this really does further validate the space that Apple is finally throwing its hat in the ring. They have a reputation for doing that. Letting their competition figure out the space, what works, and what doesn't. Then Apple just works its way in there in its own little fashion, and really comes up with something a little bit differentiated. I think that's what we have here with the VisionPro.
Now, with that said, I think it is worth tempering expectations. This is the first shot at this. This is them getting the ball rolling. This is not a mass-consumer device at $3,500. Apple fanboys are going to probably go out there and buy it, but those are few and far between. I think this is something where they'll bring a lot of developers in. They'll build services and experiences with this device to try to figure out its primary utility. It will change in time, but I think this is a really impressive first step.
Matt Argersinger: It is. It's an impressive first shot. I think we all agree that it's probably going to have to evolve to something closer to what I'm wearing on my face right now versus what I wear when I go skiing. I just don't think people are going to walk around or even sit in their homes for long periods of time, wearing somewhat heavy goggles and a battery pack in their pocket, but it's a good first shot. From a platform perspective though, I think if you build it, especially if you're Apple, the developers will come. I think people a lot smarter than me, including a site like TechCrunch, which has tested the product, they say it's nothing less than a genuine leapfrog in the capability and execution of mixed reality.
If Apple solved a lot of those latency issues, the isolation challenges that previous headsets have had. The resolution is supposed to be incredible, so you can actually read text using the device. The eye-tracking and hand gestures are near perfect, apparently, and you don't have to manually adjust or keep your hands out in front of you, which I think is a limitation of a lot of existing headsets. I think it's still a solution looking for a problem. And I think in this case, it's looking for that killer app, as all these headsets are.
But I think Apple more than any company, because of the sheer quality, the hardware, and the leaps they've made, probably can find it.
Dylan Lewis: We have used "virtual reality," "augmented reality," as terms in this discussion. I think Apple may prefer that we use "spatial computing." Because that's the term that they continue to come back to, and it seems to be the company's focus. I understand their distinction there, because if you look at what they're offering with this product and what I think the main comparison out there in the market is, with Meta's Quest product, they're a little different in terms of how immersive this is, Jason, and it seems like a slightly different approach to the way that we may interact with some of these virtual elements more layered on our world rather than being something that you are totally immersed in.
Jason Moser: Absolutely. That goes back to the use of mixed reality there. I think you're right, the spatial computing -- it's a modest distinction. But it's a distinction nonetheless, because it does give you this idea. I think the bigger opportunity with devices like this in the near term is on the industrial side. Industrial spatial computing. We've heard the term "industrial AR." It's how companies are using these types of devices to get work done. In certain industries, it's more applicable than others, but I think that's where the bigger our opportunity is.
In regard to the consumer, I think that's where it takes a little bit more time. I'm not saying it won't happen. I just think it's going to take a while to ultimately get to wherever this is taking us. Changing consumer behavior is very difficult unless you have a really compelling use case. And that goes back to Matt's point on the killer app. We hear this, people saying this is the iPhone moment. I don't like that. I just think, let's talk about this as the smartphone moment because Apple doesn't own the smartphone -- iPhone, Android, whatever it may be. But when you see the smartphone, to me that was a fairly obvious one, because we already knew at the time how necessary a phone was. We all knew then, you need a phone, and we also knew how powerful the Internet was at the time. Now you're telling me you're going to Reese's Peanut Butter Cup these things and put the Internet and the phone together. I'm in! It made a lot of sense.
We're not there with this yet. I'm not sure what problem it ultimately solves -- that's what's going to take some time. I think it's going to take ultimately probably a generation like my kids, their kids, they're going to be raised on probably a paradigm like this where they interact in their computing world differently than we do today. It just back to that: Changing consumer behaviors is very difficult. It does take a while, and it's ultimately coming up with those core use cases.
Matt Argersinger: I love that: spatial computing. It feels like Apple's pushing something out there, saying "No, this is what it is." It's like when Steve Jobs was like, "Look, I know what customers need. I will build that. They don't know what they don't want." I think that's with Apple's approach. I like it.
Dylan Lewis: I want to bring it back to Meta one more time before we wind up moving over to another topic here. I think I can't help but wonder with Meta and Apple now entering this space: Is this something that helps broader metaverse ambitions, which Meta would benefit from, Jason, or is this something where Apple is coming in and saying, "This is our market now"?
Jason Moser: Well, I don't think Apple is saying this is our market, because it is very difficult to really fully understand what that market is yet. And the metaverse is a big word, and I know Mark Zuckerberg loves to throw that word around a lot. Again, we're still trying to figure out what, ultimately, is the metaverse for? Why do I need it? Maybe it's fun, maybe it's entertaining, but is it something that I need to interact with every day? Looking at the opportunity, Meta has done very well with its Oculus devices to date. They've sold around 20 million or so. That's not chump change. When you think about the fact that the forecasts out there have Apple maybe selling 150,000 of these devices in the first year, you can see clearly that is meaningless to their financials. You see it doesn't matter. But look at it in the broader context of what Apple does so well, among other things, and their hardware is obviously very strong, but they're closing in on 1 billion paid subscriptions along the way. Now, that is very, very important here, and it's something they do very, very well. That paid subscription number continues to grow. You remember we talked about with Amazon, Jeff Bezos always talking about, "We don't want to make money from you buying our devices, we want to make money from you using our devices." And that's great, because user behavior you do it over and over again. Apple's kind of a "We want to make money from you buying the device, and we want to make money from you using the device." I think that as an investor, I'm on board with that.
Dylan Lewis: The other unavoidable major story of the week: In crypto, it appears the Wild West days are over. This week, the SEC filed suits against Binance and Coinbase saying the crypto firms are operating unregistered securities exchanges. In addition, Binance has been accused of misappropriating customer funds and other charges.
Jason, enforcement actions can get wonky very fast. I'm going to distill this down as quickly as I can so we can just get into the commentary here. It seems as if Coinbase and Binance have traded about a dozen crypto assets the SEC says were securities and should have been registered. They were not registered. That didn't happen, and so here we are now. What do you think this means for the crypto market?
Jason Moser: Well, I think this is a very messy situation, and I think it's one of the reasons why I just simply don't dabble in crypto at all. It is just a very difficult space to fully understand because it's still very much the Wild, Wild West.
Matt Argersinger: Add to that the fact that I just still don't really fully see the utility in crypto, and I just have zero interest in owning it because, ultimately, as an investment, the whole point is to make money. Well, then you just have to find someone else to pay you more than you paid for it. When you look at companies like Binance and Coinbase, they operate on obviously different models, and they make their money a different way. But that still all plays into these cryptocurrencies changing hands. For me, it makes a lot of sense that we're finally seeing regulators get on the ball here. I just wish they'd done it a little bit sooner.
Dylan Lewis: Matt, when I look at this news and I look specifically at Coinbase's results, because they are publicly traded company: 80% of their revenue from 2022 coming from the United States. It seems to me like if this sticks -- and we know that these types of enforcement actions can take a long time to materialize -- this may be something that becomes pretty core to the thesis for Coinbase.
Matt Argersinger: I think it has to. I'm not going to pretend I understand all of the implications here. I'm not a securities law expert. These cryptocurrencies and tokens -- they sure look, walk, and talk like securities to me. But what I am certain about is, I think this is really going to cause, for one, institutional investors to step back. You know, no large reputable company money manager wants to play in a sandbox that's facing any kind of government scrutiny. I certainly wouldn't.
For retail investors though, which make up the bulk of Coinbase's trading, if you're someone who's been trading Bitcoin, Ether, or any of these various pet rocks ... ahem, tokens, sorry ... and there's a chance these non-security securities could be rendered worthless simply by regulatory decree, I'd worry about that. At the same time, if I have money invested in any of these platforms and they can get frozen like they have for Binance in certain cases, would I ever want to be involved in that or wait the time, as you mentioned, Dylan, regulations to play out?
But at the end of the day, I actually think the biggest threat to this whole space is apathy. I think the shills and grifters in the space are already moving on. They're moving on to AI plays and other things. As an investor in these non-security securities, as Jason said, you're always depending on someone else to pay a higher price for them. And guess what? Very soon there might not be someone else on the other side of that trade for you, and you might be the person actually holding the bag.
Dylan Lewis: After the break, we've got a glimpse at the upcoming ski season. Stay right here. This is Motley Fool Money.
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Dylan Lewis: Welcome back to Motley Fool Money. I'm Dylan Lewis here in studio with Matt Argersinger and Jason Moser. We've got a rundown on earnings news, starting with Stitch Fix. Jason, shares of Stitch Fix up 25% after the company reported its third-quarter results. Company's losses narrowed, but revenue was down 20% year over year. Is the reaction here, Jason, that cost-cutting measures are working for this company?
Jason Moser: I don't know that I would quite go that far, but it's definitely a necessity. This is obviously a business very much on the defensive right now. I mean, there are business model questions. A bit of a revolving door on leadership as founder Katrina Lake is back in as interim CEO, and it could just be very difficult to then focus and really prioritize on the most important items in order to get this business stabilized and going back in the right direction. But a real clue in the release can be seen in just some of the language they use. There's language in there, "preserving cash flow" -- that goes back to that business is on the defensive.
The good news -- the stock is up 50% year to date. There is some optimism there. Maybe there is a future for Stitch Fix, but maybe it's just a smaller footprint than we thought it could be. But yeah, the numbers were not all that encouraging. Revenue down 20%, active clients down 11%, net revenue per active client down 9%. The crazy thing is this actually all exceeded management's expectations. So you can clearly see it's a business dealing with a lot of challenges.
Dylan Lewis: Switching gears, Matt, looking at the ski slopes, things are a little slow right now, but earnings from Vail giving us a glimpse at what to expect next season. What did you see when the company reported?
Matt Argersinger: Yeah. This is kind of an off quarter for Vail, there at the end of their ski season, which finished quite well. If you look at the core second-quarter results, which capture the ski season, it was a tough season. You had bad weather out West. Well, you actually, too much snow out West, which is interesting. And too little snow, kind of, in the Northeast and Mid-Atlantic. They are coming out of that. Conditions got a little better in the spring. But really, this is the quarter where investors start looking at pass sales for the 2023-2024 season. The Epic Pass being such a key part of Vail's business. Sales there are up 6% so far. If you go back a year ago, unit sales were up 9%. So you're seeing some deceleration there. I'm wondering if, coming off a bad weather season a lot of skiers are saying, "Am I going to invest in another $900 -- which is roughly the cost of the tickets -- for another season?" Of course, they will, a lot of them.
But my question with Vail is, it is a network effect business. We tend to apply a network effect looking at software companies and social media companies, but this is a network effect business in the sense that Vail keeps adding resorts to, their network of the Epic Pass, more resorts get added, more skiers get interested. That gives Vail more revenue to invest in resorts and add more resorts, and it's a virtuous cycle. I just wonder how much pricing power they have now. They've raised that Vail Epic Pass by 10% per year over the last five years. It's a heck of a lot of pricing power. Can they keep doing it? Sounds like that might be slowing a little bit.
Dylan Lewis: Over to the more seasonally appropriate Toro, the lawnmower and outdoor equipment company posted earnings and record revenue of $1.3 billion, earnings per share up 28% year over year. All earnings season, Matt, we've been talking about how consumers are starting to step away from those higher-ticket items. It seems like we're seeing that in the results here from Toro.
Matt Argersinger: Again, we are, Dylan, like if you look at Toro, it's really nicely divided between a residential business and a professional business. Professional business was great during the quarter -- sales there up 15%, it's higher-margin revenue for the company. But if you look at the residential side, which used to be a lot bigger for the company, sales there were down almost 17%. Management talked about broad weakness across categories. That's another sign of, I think we're seeing a little bit of weakness on the consumer side. Their inventory was also 26%. Now, the CEO has come out and said, well, we've got a huge backlog of orders we're working through, especially on the professional side. Demand is there, we're just not seeing a lot of the supply channel follow-through on that. That's a little bit of a concern.
They did narrow their guidance a little bit lower. Still, I like this business. This is kind of a nice dividend-growth business if you're looking for dividends, and it's got some solid brands, it's just the residential side might be slow for a while.
Dylan Lewis: We'll wrap up our earnings take with a look at DocuSign. Jason, this is one of those pandemic darlings that have fallen back down to earth a little bit over the last couple of years.
Jason Moser: Yeah. I think the good news for DocuSign is pre-2020 e-signature, electronic document agreement, and management that all has legs. In post-2023 here, that's going to continue. I think this trend is something that is going to continue to gain traction as we move forward. That's obviously a very good thing for DocuSign. I think when you look at the stock's muted reaction from the earnings report, it's very funny. Immediate reaction after hours, it was up big, kind of came back to Earth. I think that's likely partly growth-related. They recorded 19% full-year growth last year there, it's going to guide for around 8% to 10% this year. But also in the call, they did mention they see a continuing challenging macro environment, cautious customer sentiment, and that's all playing out in that net retention rate -- 105% for the quarter versus 107% a quarter ago and 114% from a year ago. Again, good news is this is not a DocuSign-specific problem. We've seen that narrative all throughout earnings season with a number of these software companies.
When you look at the numbers, management exceeded all internal expectations. They're doing what they say they're gonna do. Total revenue up 12%, subscription revenue up 12%. Professional services continues to capitalize, up 14%, and strong billings growth here, 10%. Again, raised full-year guidance very modestly. I want to stress -- very modestly. But again, I think with new leadership in play here, we got a new CEO who is just getting his feet wet. A brand new CFO just coming over from The Trade Desk. We've got to give them a little time to get this house in order, but it seems like things are headed in the right direction.
Dylan Lewis: I can't help but look at this company and bucket it a little bit into the same spot that I'm looking at Zoom right now, where a company that was wildly successful during the pandemic, we are now looking at radically new and different ideas about what the business looks like going forward, especially year-over-year growth rates. How do you stack those two against each other, Jason.
Jason Moser: This reminds me of the voting machine versus weighing machine quote. In the short term, the market is a voting machine, but really, the longer term, it's a weighing machine. Both companies, Zoom and DocuSign, are heavier, far heavier businesses now than ever before, and that's great. I will say, Zoom fatigue is real. I don't think there's any such thing as DocuSign fatigue.
Dylan Lewis: You don't think so?
Jason Moser: No.
Dylan Lewis: I'm always happy to send an e-signature. I'm always happy to receive an e-signature. I can't say the same for hopping on those meetings all the time.
Jason Moser: Right there with you.
Dylan Lewis: Jason Moser and Matt Argersinger: Fellows, we will see you in a little bit. But up next we've got an inside look at New York's iconic cityscape.
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Dylan Lewis: Welcome back to Motley Fool Money. I'm Dylan Lewis. Have you ever seen a picture of the New York City skyline and thought, "How are new buildings still going up in a city that is already so packed?" Motley Fool Money's Deidre Woollard spoke with Wall Street Journal reporter and author Catherine Clark about the business of New York real estate, her new book, Billionaires' Row, and the reason why some call the city's luxury apartments the world's biggest safety deposit boxes.
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Deidre Woollard: I love this book because I think so many of us who've gone to New York City have seen those really tall buildings and wondered what the heck is going on. Your book covers the last 20 years of real estate cycles along this one stretch of road in New York City -- West 57th Street. It only recently got the name Billionaires' Row. It's gone through a lot of changes. It was almost like a mini Times Square at some points. What factors have led to its changes over time?
Catherine Clark: You are so right. So many people come to New York, and they look up and they see these super tall buildings, and they've heard bits and pieces about them. Maybe they've heard about a huge sale there or a celebrity that lives there or whatever. But I think to a large extent, people don't know very much about the real story behind how they ended up on the skyline. So it's so fascinating. In terms of 57th Street, it's gone through so many different iterations over the years, and flirted with luxury once or twice. If you go all the way back to the 1800s, 57th and Fifth was where Edith Wharton's aunt built this chateau marble home, and it was the epitome of luxury, and the Vanderbilts and all these very wealthy families followed her.
But that was short-lived, and eventually, those people migrated further north as the corridor became more commercial, and then in the '70s, Aristotle Onassis built a very tall condo there called Olympic Tower that was very popular with foreign buyers and wealthy buyers. It had multilingual concierges and things. That was an early Billionaires' Row.
But I would say in terms of the timeline of when the developers of what we know as today's Billionaires' Row were building, 57th Street was a hodgepodge. There were moments of luxury. You have Tiffany at the corner of 57th and Fifth. You have Carnegie Hall, you have 9 West 57th, which is one of the most expensive office buildings in the world. But it was interspersed with fur emporiums, and diners, and these really cheesy souvenir shops and things. So over the last 10 years, it's just completely transformed, and I would say that's probably more due to zoning than any particular appeal that it had, although it does have views of Central Park, which is obviously a big draw for developers.
Deidre Woollard: Well, you mention zoning. Let's talk a little bit about that because zoning plays an important role. One of the things you say in the book is almost a third of the city was rezoned when Michael Bloomberg was mayor. How did zoning lead to the creation of Billionaires' Row and what is zoning doing for New York City and real estate in general?
Catherine Clark: Well, the zoning story on Billionaires' Row is so fascinating, I could talk about it all day. Part of the reason that this corridor was so appealing for developers was that there are almost no restrictions to building there. I don't know how much your listeners know about how pieces of land are cobbled together in New York. But basically, if you can assemble a string of adjacent properties and you can buy up development rights, or what we call in New York "air rights," which is the air that's developable above a building, you can add them all up and you get to a number and that's how high you can build. Once you've done that, there's really, on 57th Street, nothing that the city can do or community boards or concerned citizens can do to stop you. They don't have any say in the design or the height or anything like that. It was really such an appealing place for developers to come. And part of that is because of the hodgepodge of cheesy souvenir shops and things. There were all these low-rise buildings that weren't making the best use of their zoning allocations. So developers were coming along and they could just pick off these buildings one by one, and the owners were thankful that they were getting cash for these properties, whether it was a nonprofit or a religious institution or whatever. They were able to come in and pick these off, and then to build as high as they wanted.
Deidre Woollard: You describe it in the book as an art form. You're trying to put together enough land to build something really spectacular, but it's not always quite that straightforward, and it can go really wrong in some cases. Let's talk a little bit about what happens when the idea of assemblage goes wrong.
Catherine Clark: If you look at some of the most successful developers in New York City, the big names that you've heard of, part of the reason for their success is that they are master assemblers. They will spend years, sometimes decades, assembling a perfect, well-located site with good views and a good location, and that means negotiating with a series of different sellers. There may be 10, 12, 20 buildings that you have to buy in order to assemble this perfect site of your dreams. So you have to go to them one by one and pick them off. And it gets more difficult the more properties that you assemble, because the people at the end know that they have all this leverage. They see that you've bought everyone else and they're the holdout, and they want more money, and so this is a very delicate dance for you trying to not show all your cards. You're trying to keep things secret. If you've assembled a few properties, but you can't get the last ones that you need to move forward, and you've negotiated until you're blue in the face, sometimes you just have to let them go. And oftentimes that means selling for less than you paid because you probably paid a premium in the first place, and you just have to cut your losses and run.
Deidre Woollard: I loved the characterization of Harry Macklowe in the book, because I feel like he's someone who just, he gets so attached to his projects. He seems very, very emotional about it. We have this perception that commercial real estate, it's more about the numbers. Residential is more emotional. But he feels like he falls in love with projects. Is that a bad quality for a developer to have?
Catherine Clark: You're 100% right. I think every developer in this book is 100% emotionally attached to what they're doing. I think, naturally, any human being, if you spend years in pursuit of a goal, you're going to get attached to it because these projects take a very long time. And in terms of Billionaires' Row, especially, these buildings are so significant on the New York skyline that they become wrapped up in these people's legacies. They see this as a permanent mark of themselves on the world long after they're gone.
Harry was especially involved in every single aspect of this building on that 432 Park. He saw himself as much as the architect as Rafael Vinoly. He said he saw it as they were co-producers of a movie. And then, speaking of movies, he designed this whole trailer that he himself starred in to market the project, so it's very much of him. I would say, yeah, there is a risk to that in that maybe you spend too much, maybe you love your project so much that you'd spend a little bit too much on the finishes. Or whenever the market starts to collapse, you hang onto your prices a little bit too hard and you're less willing to negotiate because you think it's worth so much. So, yeah, there is a danger. But at the same time, I think if you look at the New York skyline and the properties that are really iconic and special and have made it into the public imagination, they're probably all passion projects of these individual people who fell in love with them. So I think there's positives too.
Deidre Woollard: That's really interesting, because part of the challenges of being real estate developer -- you've got this project. You don't know what the market is going to be when it's finally done and it's a lot of risk. There are easier ways to make money. Do you think, is it ego that is part of this? Or why are people willing to take this risk? Is it just to make a mark on the skyline?
Catherine Clark: The thing about these projects is that they are so financially complicated. So you have the developer, but you also have lenders and financiers, and they all take on a different level of financial burden, financial risk. And there are people who go in, and they maybe have a basis of $2,500 a foot, and if they're projecting that the units are going to sell for $6,000 a foot, so they're pretty safe. But in terms of the Macklowes of the world and the developers who are really the face of these projects, it is a huge gamble. And a lot of them have told me over the years that they compare it to a model that I would say is a little bit like venture capital where maybe you do 10 projects, maybe you lose money on five, but two go really big and it's a golden ticket. You never know when you're going to hit the market just right and you're going to be set for the rest of your life. But on top of that, a lot of these developers, in addition to the profits that they'll make from the project, they will also take development fees from the overall general partnership. So they're making some money no matter what, but occasionally, they win really big.
Deidre Woollard: In terms of winning really big, Gary Barnett from One57, he was one of the ones that that hit it really big, at least at the start. One of the factors that led to the construction of the super-talls is, the units becoming a store of value for the international elite. I think he referred to One57 as like the world's biggest safety deposit box or something like that. Given what we're seeing with less international investing in the U.S., especially from Russia and China, do you think that that is becoming less of a factor in New York luxury real estate?
Catherine Clark: Yeah. I would say this whole phenomenon of Billionaires' Row was predicated on the notion that this wave of wealth was being generated overseas, especially in Russia and in China. And that really played out for the first few years. There were all of these privatizations in the oil and gas business in Russia in the '90s, and all of these billionaires were created overnight. I think I read a statistic that somewhere between 2009 and 2012, the number of Russian billionaires tripled overnight. And so there were all of these deals.
There was one in particular that kind of reset the market at 15 Central Park West, where a Russian billionaire bought an $88 million apartment for his daughter, and it was essentially a dorm room for her while she went to Harvard Extension School. And so suddenly all the developers were thinking, we have to capitalize on this money. Then in China as well, they were having this huge housing bubble, and so the government was cracking down there. People were looking for a safe harbor for their money overseas, and those people just rushed into New York real estate in an unprecedented way.
But that's been over for quite a while, I would say. We started to see Russian money pull back from Manhattan, I would say as early as 2014 when Obama put in all those sanctions because of the provocations in Ukraine. And then toward the end of the 2010s, like 2017, 2018, we started to see a bunch of the Chinese money leave as well because the government there under Xi Jinping was putting restrictions on moving money overseas, and they wanted to curb all these capital outflows. And so that's been gone for a while. You still do see some Chinese buyers in the market, but it's nowhere close to what it was in the early days of One57. And I can't imagine that that's going to change anytime soon, given the economic tensions with China and the war in Ukraine.
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Dylan Lewis: Coming up after the break, Matt Argersinger and Jason Moser return with a couple stocks on their radar. Stay right here. You're listening to Motley Fool Money.
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Dylan Lewis: As always, people on the program may have interests in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Dylan Lewis, joined again in studio by Matt Argersinger and Jason Moser. Guys, we have consolidation in the professional sports industry. The PGA Tour and LIV announced the two golf leagues are teaming up. Jason, the partnership is complicated and still incredibly light on details. But these are the two biggest names in golf coming under one umbrella, and it will lead to Saudi Arabia's public investment fund providing billions in funding. As a golfer, how do you feel about this, Jason?
Jason Moser: There are a lot of strong opinions out there on this these days. I have to say, I think we're all very shocked by this news and still very much trying to figure out exactly what it all means. But I think what the future ultimately looks like, I don't even think they fully know. But really I think this all really boils down to two things: money and litigation. If you look at it from the biggest-picture perspective, your PIF, the Public Investment Fund, they have more money than God. They can spend the PGA Tour under the table, no questions asked. And so you look at the PGA and you think, "All right, well, that's not so good, that puts us in a little bit of a position of weakness." Well, then you take that to the next degree here, PGA's finances are OK today. But with the introduction of this competition from the LIV Tour, this new business model for the PGA Tour with elevated events, much higher total purses, and now you've got sponsors that are thinking, well, maybe those dollars are spent better elsewhere if you're not bringing in the most talent for your tournaments. I think they play that forward and see a couple of years down the road, that puts them in a much weaker financial position. And then you add to that never-ending litigation. This just makes the PGA Tour's position look weaker and weaker as the time goes on. Ultimately, with golf, it's uncertain. These are not players who are under contracts. You're paid for your performance and if you're not performing well, you're S.O.L. So then to get this kind of life-changing money that LIV is offering, I certainly understand why players are going there.
Dylan Lewis: All right, let's move over to stocks on our radar. Our man behind the glass, Dan Boyd, is going to hit you with a question. Matt, you're up first. What are you looking at this week?
Matt Argersinger: Although I think he'd look great in one, I don't think I will ever catch Dan Boyd wearing a Hawaiian shirt. But many people love them and many people love Tommy Bahama, by the way, which is just one of the many high-end apparel brands owned by Oxford Industries (NYSE: OXM). They own Tommy Bahama, a bunch of other really well-known brands. Sales are up 19% in their first quarter to a new record, 5% on an organic basis. The Tommy Bahama brand, which accounts for almost 60% of revenue, that rose 5%, and they saw higher gross margin.
But the CEO did note that their customers are seeing some caution in their spending beginning late in the spring. Traffic to the company's physical and online stores was very strong, but sales conversions weren't as strong. So they did slightly reduce sales and earnings guidance for the full year. The stock dropped pretty sharply this week. It's a company I follow pretty closely, I love it. Trades for just 9 times forward earnings with a dividend yield of 2.7%, a dividend which they recently raised 18%. I love the business, I love the clothes, I kind of love the stock price too.
Dylan Lewis: Dan, a question about Oxford Industries, and more importantly, do you own any Hawaiian shirts?
Dan Boyd: I actually do own a couple of Hawaiian shirts. I enjoy wearing them outside at times. It's nice to have a colorful shirt every now and then. So I have a two-pronger here, Matt. One, are Hawaiian shirts, do they have the lasting fashion impact? Do you think that Millennials and Zoomers are going to be wearing Hawaiian shirts? And two, how much of Tommy Bahama is Oxford made up of? If you understand.
Matt Argersinger: I got you. Yeah, I think every generation, once they reach the dad zone of their age, so the 35 to 50 age, the Hawaiian shirt definitely comes into play. Then, Tommy Bahama makes up about 57% of Oxford's trailing revenue, so it's definitely their biggest brand.
Dan Boyd: Jason, what do you got on your radar this week?
Jason Moser: I believe "apathy" was the word you're looking for there. You just don't care anymore.
Matt Argersinger: You got it.
Jason Moser: I'm there, by the way. Dan, I am just keeping an eye out on Adobe (NASDAQ: ADBE) because they have earnings coming out on Thursday, June 15, after the market closes. I think we all know Adobe. We interact with it in one way or another, almost every day, probably. I think the big questions with Adobe right now, we know there's this big question mark out there in regard to the Figma acquisition. They did talk about that a little bit during the call last quarter. There are just some regulatory concerns there given the size of the acquisition. Management continues to believe they're on track for a close by the end of this year, so we'll get some more language there. I think we'll hear a good bit about AI from Adobe. I think it actually matters when it comes to this business. CEO, Mr. Narayen, says AI is going to boost the usage of Adobe's products like Photoshop, Illustrator, and Premiere Pro, so interested in the report there.
Dylan Lewis: Dan, as a man of the multimedia arts, a question about Adobe?
Dan Boyd: I mean, we use Adobe here at The Motley Fool to produce pretty much all of our stuff. They make good products. Not really a question.
Jason Moser: Excellent. Just singing their praises.
Dylan Lewis: Just a ringing endorsement.
Dan Boyd: Really?
Jason Moser: As a shareholder, I appreciate that, Dan.
Dylan Lewis: I know. I do too. All right, Dan, which company are you putting on your watch list?
Dan Boyd: I think I'm going Adobe, Dylan.
Dylan Lewis: That makes a lot of sense. Can't blame you on that one. That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Dylan Lewis. Thank you for listening. We'll see you next time.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dan Boyd has positions in Amazon.com. Deidre Woollard has positions in Adobe, Amazon.com, Apple, and Meta Platforms. Dylan Lewis has positions in DocuSign and The Trade Desk. Jason Moser has positions in Adobe, Amazon.com, Apple, DocuSign, and The Trade Desk. Matthew Argersinger has positions in Amazon.com, DocuSign, Oxford Industries, Stitch Fix, The Trade Desk, Vail Resorts, and Zoom Video Communications. The Motley Fool has positions in and recommends Adobe, Amazon.com, Apple, Bitcoin, Coinbase Global, DocuSign, Meta Platforms, Stitch Fix, The Trade Desk, Vail Resorts, and Zoom Video Communications. The Motley Fool recommends Oxford Industries and recommends the following options: long January 2024 $420 calls on Adobe, long January 2024 $60 calls on DocuSign, and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Motley Fool host Deidre Woollard speaks with Wall Street Journal reporter and author Katherine Clarke about the business of New York real estate and her new book, Billionaire's Row. Motley Fool Money's Deidre Woollard spoke with Wall Street Journal reporter and author Catherine Clark about the business of New York real estate, her new book, Billionaires' Row, and the reason why some call the city's luxury apartments the world's biggest safety deposit boxes. The Motley Fool has positions in and recommends Adobe, Amazon.com, Apple, Bitcoin, Coinbase Global, DocuSign, Meta Platforms, Stitch Fix, The Trade Desk, Vail Resorts, and Zoom Video Communications.
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In this podcast, Motley Fool senior analysts Jason Moser and Matt Argersinger discuss: Apple's Vision Pro headset and the company's new focus on spatial computing. Motley Fool Money's Deidre Woollard spoke with Wall Street Journal reporter and author Catherine Clark about the business of New York real estate, her new book, Billionaires' Row, and the reason why some call the city's luxury apartments the world's biggest safety deposit boxes. The Motley Fool has positions in and recommends Adobe, Amazon.com, Apple, Bitcoin, Coinbase Global, DocuSign, Meta Platforms, Stitch Fix, The Trade Desk, Vail Resorts, and Zoom Video Communications.
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Dylan Lewis: I can't help but look at this company and bucket it a little bit into the same spot that I'm looking at Zoom right now, where a company that was wildly successful during the pandemic, we are now looking at radically new and different ideas about what the business looks like going forward, especially year-over-year growth rates. Motley Fool Money's Deidre Woollard spoke with Wall Street Journal reporter and author Catherine Clark about the business of New York real estate, her new book, Billionaires' Row, and the reason why some call the city's luxury apartments the world's biggest safety deposit boxes. ... Dylan Lewis: As always, people on the program may have interests in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
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Jason Moser: Well, I don't think Apple is saying this is our market, because it is very difficult to really fully understand what that market is yet. Dylan Lewis: Jason Moser and Matt Argersinger: Fellows, we will see you in a little bit. Dylan Lewis: Dan, a question about Oxford Industries, and more importantly, do you own any Hawaiian shirts?
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2023-06-13 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq hit fresh 1-yr highs as inflation data boosts rate pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-hit-fresh-1-yr-highs-as-inflation-data-boosts-rate-pause-hopes
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By Shristi Achar A and Sruthi Shankar
June 13 (Reuters) - The S&P 500 and Nasdaq rose to fresh one-year highs on Tuesday after data showed consumer prices rose modestly in May, cementing bets that the Federal Reserve could skip raising interest rates at the end of its policy meeting on Wednesday.
Consumer price index (CPI) rose 0.1% last month compared with a 0.4% jump in April, with core inflation remaining unchanged at 0.4%, according to the U.S. Labor Department report.
On a year-on-year basis, headline inflation increased by a lower-than-estimated 4.0%, reflecting declines in the cost of energy products and services, including gasoline and electricity.
"Today's fall in the rate of inflation is likely to be welcomed by investors, but it remains stubbornly above the Fed's 2% target," said Richard Flynn, managing director of Charles Schwab UK.
"The good news is that the 'stickiness' in inflation is now confined to a smaller number of categories compared to earlier in the year."
Following the data, traders fully priced in that the U.S. central bank will hold interest rates at the 5%-5.25% range on Wednesday, while expecting a 60% chance of a 25-basis-point hike in July, according to the CME Fedwatch tool.
The S&P 500 .SPX and the Nasdaq .IXIC have hit fresh highs for the year in the past few sessions, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O.
The benchmark S&P 500 has risen 21% from its October 2022 lows, heralding a bull market according to some investors.
The rally, which has largely been underpinned by gains in megacap stocks has broadened recently to include economy-linked sectors such as energy .SPNY and materials .SPLRCM.
The two sectors were up 1.6% and 1.7%, respectively, in morning trade, as commodity prices including those of oil and copper climbed. O/RMET/L
At 9:55 a.m. ET, the Dow Jones Industrial Average .DJI was up 155.58 points, or 0.46%, at 34,221.91, the S&P 500 .SPX was up 24.29 points, or 0.56%, at 4,363.22, and the Nasdaq Composite .IXIC was up 79.69 points, or 0.59%, at 13,541.61.
OracleORCL.N jumped 4.3% to hit a fresh all-time high on upbeat quarterly revenue and forecast, while IntelINTC.O gained 1.1% on talks with SoftBank Group Corp's 9984.T Arm to be an anchor investor in its initial public offering.
Bunge Ltd BG.N inched up 0.3% after the U.S. grains merchant and Glencore GLEN.L-backed Viterra said they were merging to create an agricultural trading giant worth about $34 billion, including debt.
U.S.-listed shares of Chinese companies including JD.com JD.O, Alibaba Group BABA.N, Baidu BIDU.O and Netease NTES.O rose between 2.9% and 4.9% after China's central bank lowered its short-term lending rate for the first time in 10 months.
Advancing issues outnumbered decliners by a 4.52-to-1 ratio on the NYSE and a 2.75-to-1 ratio on the Nasdaq.
The S&P index recorded 33 new 52-week highs and no new low, while the Nasdaq recorded 86 new highs and 19 new lows.
A market divide over the Fed https://tmsnrt.rs/3NmS4rA
(Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@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 S&P 500 .SPX and the Nasdaq .IXIC have hit fresh highs for the year in the past few sessions, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. Following the data, traders fully priced in that the U.S. central bank will hold interest rates at the 5%-5.25% range on Wednesday, while expecting a 60% chance of a 25-basis-point hike in July, according to the CME Fedwatch tool. OracleORCL.N jumped 4.3% to hit a fresh all-time high on upbeat quarterly revenue and forecast, while IntelINTC.O gained 1.1% on talks with SoftBank Group Corp's 9984.T Arm to be an anchor investor in its initial public offering.
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The S&P 500 .SPX and the Nasdaq .IXIC have hit fresh highs for the year in the past few sessions, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. By Shristi Achar A and Sruthi Shankar June 13 (Reuters) - The S&P 500 and Nasdaq rose to fresh one-year highs on Tuesday after data showed consumer prices rose modestly in May, cementing bets that the Federal Reserve could skip raising interest rates at the end of its policy meeting on Wednesday. Consumer price index (CPI) rose 0.1% last month compared with a 0.4% jump in April, with core inflation remaining unchanged at 0.4%, according to the U.S. Labor Department report.
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The S&P 500 .SPX and the Nasdaq .IXIC have hit fresh highs for the year in the past few sessions, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. By Shristi Achar A and Sruthi Shankar June 13 (Reuters) - The S&P 500 and Nasdaq rose to fresh one-year highs on Tuesday after data showed consumer prices rose modestly in May, cementing bets that the Federal Reserve could skip raising interest rates at the end of its policy meeting on Wednesday. A market divide over the Fed https://tmsnrt.rs/3NmS4rA (Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru Editing by Vinay Dwivedi) ((Shristi.AcharA@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 S&P 500 .SPX and the Nasdaq .IXIC have hit fresh highs for the year in the past few sessions, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. By Shristi Achar A and Sruthi Shankar June 13 (Reuters) - The S&P 500 and Nasdaq rose to fresh one-year highs on Tuesday after data showed consumer prices rose modestly in May, cementing bets that the Federal Reserve could skip raising interest rates at the end of its policy meeting on Wednesday. On a year-on-year basis, headline inflation increased by a lower-than-estimated 4.0%, reflecting declines in the cost of energy products and services, including gasoline and electricity.
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2023-06-13 00:00:00 UTC
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US STOCKS-U.S. stocks rally as inflation data cements bets on rate hike pause
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AAPL
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https://www.nasdaq.com/articles/us-stocks-u.s.-stocks-rally-as-inflation-data-cements-bets-on-rate-hike-pause
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nan
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nan
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By Noel Randewich and Shristi Achar A
June 13 (Reuters) - The S&P 500 and Nasdaq climbed to 14-month highs on Tuesday after data showed consumer prices rose modestly in May, boosting bets that the Federal Reserve will not raise interest rates at the end of its policy meeting on Wednesday.
Stocks rose after a U.S. Labor Department report showed theconsumer price index (CPI) rose 0.1% last month after a 0.4% jump in April, with core inflation unchanged at 0.4%.
On a year-on-year basis, headline inflation increased by a less-than-estimated 4.0%, reflecting declines in the cost of energy products and services, including gasoline and electricity.
"If the Fed was looking for data to point to to say, 'We're going to pause in June,' I think they got it today," said Liz Young, head of investment strategy at SoFi in New York.
"But it's another one of those that you can cut whichever way you want to make your case. If you want to be bullish, you say inflation is down more than 50% since its peak. If you want to bearish, you can say inflation is still more than twice the Fed's target," Young said.
Traders have priced in a 93% chance that the U.S. central bank will hold interest rates at the 5%-5.25% range on Wednesday, and 62% odds of 25-basis-point hike in July, according to the CME Fedwatch tool.
The benchmark S&P 500 .SPX has recovered 22% from its October 2022 closing low, fueled in large part by gains in market heavyweights such as Apple AAPL.O, Nvidia NVDA.Oand Tesla TSLA.O. More recently, sectors such as energy .SPNY and materials .SPLRCM have climbed, as well as small-cap stocks.
All S&P 500 sector indexes rose on Tuesday, led by materials, up 2.2%, followed by a 1.32% gain in energy as commodities including oil and copper climbed against a falling dollar. O/RMET/L
U.S.-listed shares of Chinese companies climbed after China's central bank lowered its short-term lending rate for the first time in 10 months. Alibaba Group BABA.N gained 2.16% and JD.com JD.O jumped 3.8%.
The S&P 500 was up 0.69% at 4,368.75 points.
The Nasdaq .IXIC gained 0.70% to 13,556.75 points, while the Dow Jones Industrial Average .DJI was up 0.48% at 34,230.02 points.
OracleORCL.Nrose 1% and was on track for its highest close ever after it provided an upbeat quarterly revenue and forecast.
IntelINTC.Ogained 1.7% after a report the chipmaker is in talks with SoftBank Group Corp's 9984.T Arm to be an anchor investor in its initial public offering.
Bunge Ltd BG.Nadded 2.2% after the U.S. grains merchant and Glencore GLEN.L-backed Viterra said they were merging to create an agricultural trading giant worth about $34 billion, including debt.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 5.0-to-one ratio.
The S&P 500 posted 43 new highs and no new lows; the Nasdaq recorded 131 new highs and 39 new lows.
Rates and inflation Rates and inflation https://tmsnrt.rs/3U8HdD2
S&P 500 stocks https://tmsnrt.rs/43AM7wY
(Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru, and by Noel Randewich in Oakland, California; Editing by Vinay Dwivedi and Richard Chang)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The benchmark S&P 500 .SPX has recovered 22% from its October 2022 closing low, fueled in large part by gains in market heavyweights such as Apple AAPL.O, Nvidia NVDA.Oand Tesla TSLA.O. By Noel Randewich and Shristi Achar A June 13 (Reuters) - The S&P 500 and Nasdaq climbed to 14-month highs on Tuesday after data showed consumer prices rose modestly in May, boosting bets that the Federal Reserve will not raise interest rates at the end of its policy meeting on Wednesday. On a year-on-year basis, headline inflation increased by a less-than-estimated 4.0%, reflecting declines in the cost of energy products and services, including gasoline and electricity.
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The benchmark S&P 500 .SPX has recovered 22% from its October 2022 closing low, fueled in large part by gains in market heavyweights such as Apple AAPL.O, Nvidia NVDA.Oand Tesla TSLA.O. By Noel Randewich and Shristi Achar A June 13 (Reuters) - The S&P 500 and Nasdaq climbed to 14-month highs on Tuesday after data showed consumer prices rose modestly in May, boosting bets that the Federal Reserve will not raise interest rates at the end of its policy meeting on Wednesday. Stocks rose after a U.S. Labor Department report showed theconsumer price index (CPI) rose 0.1% last month after a 0.4% jump in April, with core inflation unchanged at 0.4%.
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The benchmark S&P 500 .SPX has recovered 22% from its October 2022 closing low, fueled in large part by gains in market heavyweights such as Apple AAPL.O, Nvidia NVDA.Oand Tesla TSLA.O. By Noel Randewich and Shristi Achar A June 13 (Reuters) - The S&P 500 and Nasdaq climbed to 14-month highs on Tuesday after data showed consumer prices rose modestly in May, boosting bets that the Federal Reserve will not raise interest rates at the end of its policy meeting on Wednesday. All S&P 500 sector indexes rose on Tuesday, led by materials, up 2.2%, followed by a 1.32% gain in energy as commodities including oil and copper climbed against a falling dollar.
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The benchmark S&P 500 .SPX has recovered 22% from its October 2022 closing low, fueled in large part by gains in market heavyweights such as Apple AAPL.O, Nvidia NVDA.Oand Tesla TSLA.O. By Noel Randewich and Shristi Achar A June 13 (Reuters) - The S&P 500 and Nasdaq climbed to 14-month highs on Tuesday after data showed consumer prices rose modestly in May, boosting bets that the Federal Reserve will not raise interest rates at the end of its policy meeting on Wednesday. "If the Fed was looking for data to point to to say, 'We're going to pause in June,' I think they got it today," said Liz Young, head of investment strategy at SoFi in New York.
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15359.0
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2023-06-13 00:00:00 UTC
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Top Stock Reports for Apple, UnitedHealth & Eli Lilly
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AAPL
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https://www.nasdaq.com/articles/top-stock-reports-for-apple-unitedhealth-eli-lilly
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nan
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nan
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Tuesday, June 13, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), UnitedHealth Group Incorporated (UNH) and Eli Lilly and Company (LLY). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares have outperformed the Zacks Tech sector (+40.4% vs. +34.9%) as well as the broader market (+40.4% vs. +14.1%) this year. The company is benefiting from steady demand for iPhone 14 and 14 Plus as well as expanding footprint in emerging markets. Growing services subscriber base and improving customer engagement are tailwinds for the services business.
Apple is expanding service offerings with the new features and enhancements in its upcoming iOS 17, iPadOS 17, macOS Sonoma, watchOS 10, and tvOS 17. Expanding content on Apple TV+ bodes well for Apple. Growing footprint in enterprise market is encouraging.
However, services’ revenue growth in the fiscal third quarter is expected to be similar to the fiscal second quarter. Apple expects services to be negatively impacted by challenging macroeconomic conditions, as well as continued weakness in digital advertising and mobile gaming.
(You can read the full research report on Apple here >>>)
Shares of UnitedHealth have gained +8.2% over the past year against the Zacks Medical - HMOs industry’s gain of +10.0%. Company’s top line remains well-poised for growth on the back of a strong market position, new deals, renewed agreements, and expansion of service offerings.
The Zacks analyst expect the top line to grow 11.1% year over year in 2023. Its solid health services segment provides diversification benefits. The Government business remains well-poised for growth. A sturdy balance sheet enables business investments and prudent deployment of capital.
However, membership in its global business continues to decline. High operating costs are hurting margins. As such, the stock warrants a cautious stance.
(You can read the full research report on UnitedHealth here >>>)
Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+55.0% vs. +19.1%). The company boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Trulicity, Taltz and others. It is regularly adding promising new pipeline assets through business development deals.
Lilly expects to launch four new medicines by 2023 end with Mounjaro for type II diabetes and cancer drug Jaypirca already launched. Mounjaro sales are already benefiting from strong demand trends.
However, the CRL for donanemab will probably delay the potential launch of the candidate. Generic competition for several drugs, rising pricing pressure in the United States and some international markets are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Other noteworthy reports we are featuring today include Walmart Inc. (WMT), Intel Corporation (INTC) and Becton, Dickinson and Company (BDX).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH)
Lilly (LLY) Focuses on Obesity & Diabetes for Sales Growth
Featured Reports
Walmart (WMT) Benefits from Impressive E-Commerce Operations
Per the Zacks analyst, Walmart is gaining on e-commerce efforts like upping delivery game. In first quarter, e-commerce sales rose 26% globally on omnichannel strength, including pickup and delivery.
Intel (INTC) Rides on Healthy Momentum in Data Center Business
Per the Zacks analyst, healthy traction in data center business, focus on market diversification and portfolio expansion through technological innovation will likely improve Intel's margins.
Regulatory Approvals Aid BD (BDX) Amid Stiff Competition
The Zacks analyst is upbeat about BD's receipt of a slew of regulatory clearances over the past few months despite its operation in a highly competitive market.
Solid Senior Housing Operating Trend Aids Welltower (WELL)
Per the Zacks Analyst, Welltower (WELL) is expected to benefit from the robust post-pandemic operating trend in its senior housing operating portfolio. However, high interest rates are a key concern.
Cheniere Energy's (LNG) Gas Export Dominance Bodes Well
The Zacks analyst likes Cheniere's competitive advantage of being the first and dominant natural gas exporter in the U.S. market but is concerned over the huge debt load of nearly $24 billion.
Hewlett Packard (HPE) Benefits From Spurt in Aruba Services
Per the Zacks analyst, a strong uptick in Aruba Services is driving Hewlett Packard's Intelligent Edge segment, which in turn, helps sustain its supremacy in the market with high growth opportunity.
Expanding Footprint Aid SolarEdge (SEDG) Amid Supply Issues
Per the Zacks Analyst, SolarEdge may continue to witness strong demand and growth momentum with expanding footprint. Yet, component shortages due to supply-chain issues may impact its operations.
New Upgrades
Higher Jet Engine Product Demand, Transformation Aid ATI
Per the Zacks analyst, higher demand for jet engine products will drive results in ATI's HPMC segment. It will also gain from actions to improve cost structure through transformation efforts.
Dave & Buster's (PLAY) Rides on solid Main Event Store Sales
Per the Zacks analyst, Dave & Buster's is benefiting from robust main event stores sales, unit expansion and digital initiatives. Also focus on labor optimization bode well.
Solid Comps & Expansion Plans Aid BJ's Restaurants (BJRI)
Per the Zacks analyst, strong comparable sales revenue backed by increased guest traffic and menu pricing aid BJ's Restaurants. Also, strategic expansion and operational initiatives bode well.
New Downgrades
Weak EVM Unit and Forex Woes Hurt Zebra Technologies (ZBRA)
Per the Zacks analyst, Zebra Technologies is experiencing weakness across its EVM segment due to large customer order deferrals in the mobile computing business. Forex woes are an added concern.
U.S. Cellular (USM) Marred by Aggressive Price Competition
Per the Zacks analyst, U.S. Cellular is likely to be plagued by aggressive pricing and low-cost mobile plans from competitors as it witnessed a downtrend in postpaid retail and prepaid connections.
Investment and Restructuring Costs Hurt ManpowerGroup (MAN)
Per the Zacks Analyst, escalation in costs due to investments in digital and restructuring activities is a barrier to ManpowerGroup's bottom-line growth.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
Intel Corporation (INTC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : 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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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH) Lilly (LLY) Focuses on Obesity & Diabetes for Sales Growth Featured Reports Walmart (WMT) Benefits from Impressive E-Commerce Operations Per the Zacks analyst, Walmart is gaining on e-commerce efforts like upping delivery game. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), UnitedHealth Group Incorporated (UNH) and Eli Lilly and Company (LLY). Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH) Lilly (LLY) Focuses on Obesity & Diabetes for Sales Growth Featured Reports Walmart (WMT) Benefits from Impressive E-Commerce Operations Per the Zacks analyst, Walmart is gaining on e-commerce efforts like upping delivery game. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), UnitedHealth Group Incorporated (UNH) and Eli Lilly and Company (LLY).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH) Lilly (LLY) Focuses on Obesity & Diabetes for Sales Growth Featured Reports Walmart (WMT) Benefits from Impressive E-Commerce Operations Per the Zacks analyst, Walmart is gaining on e-commerce efforts like upping delivery game. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), UnitedHealth Group Incorporated (UNH) and Eli Lilly and Company (LLY).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH) Lilly (LLY) Focuses on Obesity & Diabetes for Sales Growth Featured Reports Walmart (WMT) Benefits from Impressive E-Commerce Operations Per the Zacks analyst, Walmart is gaining on e-commerce efforts like upping delivery game. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), UnitedHealth Group Incorporated (UNH) and Eli Lilly and Company (LLY). Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-06-13 00:00:00 UTC
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Apple's Most Important Announcement Last Week
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AAPL
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https://www.nasdaq.com/articles/apples-most-important-announcement-last-week
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nan
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nan
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Apple's (NASDAQ: AAPL) silicon efforts have become the company's key differentiator over competitors. And advances announced last week put high-performance chips into more people's hands. Travis Hoium discusses more in this video.
*Stock prices used were end-of-day prices of June 7, 2023. The video was published on June 8, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 5, 2023
Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple, Nvidia, and Taiwan Semiconductor Manufacturing. 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) silicon efforts have become the company's key differentiator over competitors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Nvidia, and Taiwan Semiconductor Manufacturing.
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Apple's (NASDAQ: AAPL) silicon efforts have become the company's key differentiator over competitors. 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 5, 2023 Travis Hoium has positions in Apple.
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Apple's (NASDAQ: AAPL) silicon efforts have become the company's key differentiator over competitors. 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.
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Apple's (NASDAQ: AAPL) silicon efforts have become the company's key differentiator over competitors. See the 10 stocks *Stock Advisor returns as of June 5, 2023 Travis Hoium has positions in Apple. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services.
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2023-06-13 00:00:00 UTC
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What Oracle's (ORCL) AI-Fueled Earnings Say About the Future for Shareholders
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AAPL
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https://www.nasdaq.com/articles/what-oracles-orcl-ai-fueled-earnings-say-about-the-future-for-shareholders
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nan
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nan
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O
ver the last six months, so much has been said about the potential impact of AI on our lives, for good and bad, that it is hard not to think of the subject as having been overhyped. But that is just what happens when something with the potential to revolutionize society and the economy meets a 24 hour news cycle. We all get bored to death, but that doesn’t lessen the potential of generative AI and its rapid adoption to have a massive impact in many areas. If you doubt that, ask the executives and shareholders of Oracle (ORCL).
Last night, they reported beats on both the top and bottom lines, raising revenue guidance as they did so and talking enthusiastically of the impact of AI on their business. The stock, having already popped around 10% in the two trading days prior to the release yesterday, is this morning indicating an opening around 5.5% above yesterday’s close. That is remarkable given that ORCL was, by comparison to some other tech companies, late to the party.
For many years, Oracle was the sleeping giant of tech, a name that it seemed everyone knew, but no one really wanted to buy. In the decade beginning at the start of 2010, the stock of tech companies like Google parent Alphabet (GOOG, GOOGL) and Amazon (AMZN) posted exponential gains as they took advantage of the increasing role of computing in our daily lives and in the way corporations of all stripes and sizes did business. Oracle, however, did okay but seemed to get left behind, with the stock roughly doubling in the decade starting in 2010 while GOOG posted gains of over 500% and AMZN went from a split-adjusted level of around $5 to around $90. As “cloud computing” became a thing, Oracle lost out to more aggressive adopters and sellers of the idea of massive server farms to meet the exponentially increasing need of businesses for computing power.
It looked for a while as if they were going to make the same mistake again when it comes to AI, having only recently got into the game and started to target that market. Now, though, there is so much demand that even the laggards like Oracle are reaping rewards. Yes, they have transformed themselves to some degree in terms of becoming leaner and more focused, but entering a rapidly growing market in a serious way once others have a solid first mover advantage usually results in disappointment. However, in this case the market has grown so far and so fast that there is still plenty of profit to go around, and that may even give a late entrant a bit of an advantage. They are able to come in when early mistakes have already been made and the needs of potential customers are a little clearer, giving them the kind of edge that Apple (AAPL) has created for itself by pursuing similar tactics for many years.
So, is ORCL a good bet for future gains as AI continues to grow?
It could well be. They now have a proprietary AI product that they are using internally and intending to offer customers, but their real strength comes from being a supplier of equipment that is needed if corporations are to take advantage of the boom. Oracle’s hardware and software solutions for businesses can benefit whichever AI product, if any, emerges as dominant over the next few years. There is, however, a risk inherent in that that makes me prefer something like Amazon or Alphabet as long-term investments.
The hype around AI has inevitably created a backlash, with dystopian visions of a future where the machines make their own decisions and take over becoming commonplace. That will probably turn out to be sensationalized science fiction, but it does create a situation where politicians will feel the need to get involved and at the very least attempt to slow the pace of adoption of the new technology. The idea of a machine-led world is scary, and politicians are never averse to pandering to our fears, so regulation of some kind that slows progress will come.
When it does, companies like Amazon and Alphabet for whom the AI boom is an add-on to existing businesses will fare better than Oracle, for whom it is rapidly becoming the main driver of success. That, however, is not in the immediate future, and for now, ORCL can continue to post gains. If you choose to join in or are already invested, know that taking a profit on a stock like ORCL before too long will probably prove to be a smart thing to do.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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They are able to come in when early mistakes have already been made and the needs of potential customers are a little clearer, giving them the kind of edge that Apple (AAPL) has created for itself by pursuing similar tactics for many years. They now have a proprietary AI product that they are using internally and intending to offer customers, but their real strength comes from being a supplier of equipment that is needed if corporations are to take advantage of the boom. That will probably turn out to be sensationalized science fiction, but it does create a situation where politicians will feel the need to get involved and at the very least attempt to slow the pace of adoption of the new technology.
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They are able to come in when early mistakes have already been made and the needs of potential customers are a little clearer, giving them the kind of edge that Apple (AAPL) has created for itself by pursuing similar tactics for many years. In the decade beginning at the start of 2010, the stock of tech companies like Google parent Alphabet (GOOG, GOOGL) and Amazon (AMZN) posted exponential gains as they took advantage of the increasing role of computing in our daily lives and in the way corporations of all stripes and sizes did business. Oracle, however, did okay but seemed to get left behind, with the stock roughly doubling in the decade starting in 2010 while GOOG posted gains of over 500% and AMZN went from a split-adjusted level of around $5 to around $90.
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They are able to come in when early mistakes have already been made and the needs of potential customers are a little clearer, giving them the kind of edge that Apple (AAPL) has created for itself by pursuing similar tactics for many years. In the decade beginning at the start of 2010, the stock of tech companies like Google parent Alphabet (GOOG, GOOGL) and Amazon (AMZN) posted exponential gains as they took advantage of the increasing role of computing in our daily lives and in the way corporations of all stripes and sizes did business. As “cloud computing” became a thing, Oracle lost out to more aggressive adopters and sellers of the idea of massive server farms to meet the exponentially increasing need of businesses for computing power.
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They are able to come in when early mistakes have already been made and the needs of potential customers are a little clearer, giving them the kind of edge that Apple (AAPL) has created for itself by pursuing similar tactics for many years. In the decade beginning at the start of 2010, the stock of tech companies like Google parent Alphabet (GOOG, GOOGL) and Amazon (AMZN) posted exponential gains as they took advantage of the increasing role of computing in our daily lives and in the way corporations of all stripes and sizes did business. So, is ORCL a good bet for future gains as AI continues to grow?
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15362.0
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2023-06-13 00:00:00 UTC
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Apple Inc. (AAPL) is Attracting Investor Attention: Here is What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-attracting-investor-attention%3A-here-is-what-you-should-know-6
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nan
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nan
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of iPhones, iPads and other products have returned +6.8% over the past month versus the Zacks S&P 500 composite's +5.4% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 6.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Apple is expected to post earnings of $1.18 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 -0.2%.
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.
In the case of Apple, the consensus sales estimate of $81.17 billion for the current quarter points to a year-over-year change of -2.2%. The $384.34 billion and $409.09 billion estimates for the current and next fiscal years indicate changes of -2.5% and +6.4%, 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.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors 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) is one of the stocks most watched by Zacks.com visitors 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) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. When earnings estimates for a company go up, the fair value for its stock goes up as well.
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15363.0
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2023-06-13 00:00:00 UTC
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Company News for Jun 13, 2023
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AAPL
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https://www.nasdaq.com/articles/company-news-for-jun-13-2023
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nan
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nan
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Shares of BP p.l.c. BP fell 2% as energy prices declined.
Shares of Apple Inc. AAPL rose 1.6% as the market continued to observe a tech rally.
Nasdaq, Inc.’s NDAQ shares plunged 11.8% after the exchange said it would buy software firm Adenza in a $10.5 billion deal.
Shares of Broadcom Inc. AVGO jumped 6.3% after it was reported that the chipmaking giant would secure EU antitrust approval for its $61 billion proposed acquisition of VMware, Inc. VMW.
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Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
VMware, Inc. (VMW) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. AAPL rose 1.6% as the market continued to observe a tech rally. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report BP p.l.c. Nasdaq, Inc.’s NDAQ shares plunged 11.8% after the exchange said it would buy software firm Adenza in a $10.5 billion deal.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report BP p.l.c. Shares of Apple Inc. AAPL rose 1.6% as the market continued to observe a tech rally. (BP) : Free Stock Analysis Report VMware, Inc. (VMW) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report BP p.l.c. Shares of Apple Inc. AAPL rose 1.6% as the market continued to observe a tech rally. (BP) : Free Stock Analysis Report VMware, Inc. (VMW) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report BP p.l.c. Shares of Apple Inc. AAPL rose 1.6% as the market continued to observe a tech rally. Shares of BP p.l.c.
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15364.0
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2023-06-13 00:00:00 UTC
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Dow Movers: CRM, DOW
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-crm-dow-3
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nan
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nan
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In early trading on Tuesday, shares of Dow topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.5%. Year to date, Dow registers a 5.4% gain.
And the worst performing Dow component thus far on the day is Salesforce, trading down 1.0%. Salesforce is showing a gain of 59.5% looking at the year to date performance.
Two other components making moves today are Apple, trading down 0.5%, and Caterpillar, trading up 2.1% on the day.
VIDEO: Dow Movers: CRM, DOW
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Tuesday, shares of Dow topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.5%. And the worst performing Dow component thus far on the day is Salesforce, trading down 1.0%. VIDEO: Dow Movers: CRM, DOW The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Tuesday, shares of Dow topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.5%. Year to date, Dow registers a 5.4% gain. And the worst performing Dow component thus far on the day is Salesforce, trading down 1.0%.
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In early trading on Tuesday, shares of Dow topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.5%. And the worst performing Dow component thus far on the day is Salesforce, trading down 1.0%. VIDEO: Dow Movers: CRM, DOW The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Dow component thus far on the day is Salesforce, trading down 1.0%. Salesforce is showing a gain of 59.5% looking at the year to date performance. VIDEO: Dow Movers: CRM, DOW The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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15365.0
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2023-06-13 00:00:00 UTC
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Is Apple Stock a Buy Near $185?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-a-buy-near-%24185
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nan
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nan
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If only investors could rewind time and go back to the beginning of the year and put all their money in Apple (NASDAQ: AAPL) stock. You'd be sitting on a cool gain of more than 41%. Unfortunately, this isn't possible. All we have is today. So, what about now? Are still attractive, like they were earlier this year? Or has the big run-up in the stock price made the stock a hold or even a sell?
Unfortunately, Apple stock simply doesn't look as attractive as it did in January. But my opinion may surprise you on whether I think the stock is a buy today. While it's certainly not worthy of as much capital as it was earlier this year, the stock could still reward investors reasonably well over the long haul from here.
Why Apple stock is still a buy
On the surface, Apple may not look like a good investment today. Its price-to-earnings ratio of about 32 is up from approximately 22 earlier this year. Further, revenue in the tech giant's most recent quarter actually fell 3% year over year.
But here's where Apple shines. First of all, a 3% decline on top of tough comparisons of 9% and 54% growth in the same quarters for fiscal 2022 and fiscal 2021, respectively, is actually quite impressive. Year-to-year volatility in sales from a company that generates most of its revenue from just a handful of product lines is normal. Even more, for sales to decline only 3% year over year in an inflationary and uncertain market is impressive, particularly given Apple's tough year-ago comparison.
Overall, Apple's performance over the last few years has highlighted the great job the tech company has done at continuing to grow its market share, win new customers, and profit from its loyal customer base.
Additionally, Apple's balance sheet strength continues to be a major selling point for the stock. While its standard for some profitable companies like Apple to carry more debt than cash on their balance sheet, Apple has so much cash and cash equivalents that they exceed its debt by $57 billion. Even more, the company generates around $100 billion in free cash flow annually. Free cash flow, defined as the company's regular cash left over after both regular operations and capital expenditures are taken care of, represents the stream of cash the company can do shareholder value-building things like dividends, share repurchases, and acquisitions.
Apple, of course, hasn't been shy to put its money to work. When the company reported its fiscal second-quarter results in early May, it also increased its dividend for the eleventh year in a row and authorized an additional $90 billion for share repurchases.
A higher risk profile
Even though Apple stock still looks like a buy, investors should be mindful that a higher valuation multiple for the stock increases its risk. Since investors who buy shares today are paying more than 30 times earnings, there's not much room for error baked into the price. If the company's future performance disappoints, therefore, the stock price could flounder or even fall significantly. For this reason, investors who want to buy shares today should keep their positions in the stock small as a percentage of their total portfolio.
But given Apple's strong balance sheet, loyal customer base, and history of product innovation, it may make sense to take on some risk in order to get in on this stock's long-term potential.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If only investors could rewind time and go back to the beginning of the year and put all their money in Apple (NASDAQ: AAPL) stock. When the company reported its fiscal second-quarter results in early May, it also increased its dividend for the eleventh year in a row and authorized an additional $90 billion for share repurchases. But given Apple's strong balance sheet, loyal customer base, and history of product innovation, it may make sense to take on some risk in order to get in on this stock's long-term potential.
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If only investors could rewind time and go back to the beginning of the year and put all their money in Apple (NASDAQ: AAPL) stock. Overall, Apple's performance over the last few years has highlighted the great job the tech company has done at continuing to grow its market share, win new customers, and profit from its loyal customer base. While its standard for some profitable companies like Apple to carry more debt than cash on their balance sheet, Apple has so much cash and cash equivalents that they exceed its debt by $57 billion.
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If only investors could rewind time and go back to the beginning of the year and put all their money in Apple (NASDAQ: AAPL) stock. Why Apple stock is still a buy On the surface, Apple may not look like a good investment today. A higher risk profile Even though Apple stock still looks like a buy, investors should be mindful that a higher valuation multiple for the stock increases its risk.
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If only investors could rewind time and go back to the beginning of the year and put all their money in Apple (NASDAQ: AAPL) stock. Since investors who buy shares today are paying more than 30 times earnings, there's not much room for error baked into the price. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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15366.0
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2023-06-13 00:00:00 UTC
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GLOBAL MARKETS-Asia shares track Wall Street rally with US inflation data, Fed in focus
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-track-wall-street-rally-with-us-inflation-data-fed-in-focus
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nan
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nan
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By Julie Zhu
HONG KONG, June 13 (Reuters) - Asian shares rose on Tuesday following an upbeat session on Wall Street, while investors turned their attention to key U.S. inflation data and the Federal Reserve's interest rate decision this week.
Investors will be closely monitoring U.S. consumer and producer inflation data on Tuesday and Wednesday respectively for a reading of how well the Fed's tightening cycle has managed to curb rising prices.
The equity index's gains partly reflected expectations for the Fed to pause rate hikes for the first time since January 2022, and for both gauges of inflation to come in lower than the prior month, investors and strategists said.
"Overall equity markets reacted positively to expectations the monetary policy cycle may be nearing its peak," ANZ analysts said in a note. "U.S. markets are now pricing a 72% probability that the Federal Reserve Monetary Policy Committee (FOMC) will hold rates at this week's meeting."
European markets were set for a higher open, with pan-region Euro Stoxx 50 futures STXEc1 up 0.69%, German DAX futures FDXc1 rising 0.68% and FTSE futures FFIc1 advancing 0.41%.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.8% while U.S. stock futures - the S&P 500 e-minis ESc1 - rose 0.22%.
Australian shares .AXJO were up 0.18%.
China's stocks regained some lost ground after the central bank on Tuesday lowered a short-term policy lending rate in a bid to restore market confidence. But economic worries and geopolitical risks limited gains as recent Chinese economic data has shown subdued demand, weakening investor sentiment.
China's blue-chip CSI300 index .CSI300 edged up 0.11% in afternoon trade. Hong Kong's Hang Seng index .HIS added 0.23%.
On Monday, the S&P 500 .SPX and the Nasdaq .IXIC rallied to their highest closing levels since April 2022.
Lifted by gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O, the S&P 500 has recovered 21% from its October 2022 lows, heralding the start of a new bull market as defined by some market participants.
The S&P 500 climbed 0.93% to end the session at 4,338.93 points. The Nasdaq gained 1.53%, while the Dow Jones Industrial Average .DJI rose 0.56%.
The European Central Bank will deliver its rate decision on Thursday with analysts expecting it to raise rates by 25 basis points (bps) and to signal that there is more ground to cover. But the Bank of Japan, which will announce its plan on Friday, is expected to maintain its ultra-loose policy.
In U.S. Treasuries, the yield on benchmark 10-year Treasury notes US10YT=RR reached 3.7299%, compared with the U.S. close of 3.765% on Monday. The two-year yield US2YT=RR, which rises with traders' expectations of higher Fed fund rates, touched 4.5605% compared with a U.S. close of 4.592%.
In currencies, the U.S. dollar index =USD, which measures the greenback against a basket of major currencies, fell 0.21% to 103.36, while the euro EUR= was up 0.3% on the day at $1.0792.
The dollar dropped 0.1% against the yen to 139.46 JPY=.
U.S. crude CLc1 ticked up 0.33% to $67.34 a barrel. Brent crude LCOc1 rose to $72.2 per barrel.
Gold was slightly higher. Spot gold XAU= was traded at $1960.29 per ounce. GOL/
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Reporting by Julie Zhu; Editing by Christopher Cushing and Jamie Freed)
((julie.zhu1@thomsonreuters.com; Reuters Messaging: julie.zhu1.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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Lifted by gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O, the S&P 500 has recovered 21% from its October 2022 lows, heralding the start of a new bull market as defined by some market participants. By Julie Zhu HONG KONG, June 13 (Reuters) - Asian shares rose on Tuesday following an upbeat session on Wall Street, while investors turned their attention to key U.S. inflation data and the Federal Reserve's interest rate decision this week. Investors will be closely monitoring U.S. consumer and producer inflation data on Tuesday and Wednesday respectively for a reading of how well the Fed's tightening cycle has managed to curb rising prices.
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Lifted by gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O, the S&P 500 has recovered 21% from its October 2022 lows, heralding the start of a new bull market as defined by some market participants. By Julie Zhu HONG KONG, June 13 (Reuters) - Asian shares rose on Tuesday following an upbeat session on Wall Street, while investors turned their attention to key U.S. inflation data and the Federal Reserve's interest rate decision this week. China's stocks regained some lost ground after the central bank on Tuesday lowered a short-term policy lending rate in a bid to restore market confidence.
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Lifted by gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O, the S&P 500 has recovered 21% from its October 2022 lows, heralding the start of a new bull market as defined by some market participants. By Julie Zhu HONG KONG, June 13 (Reuters) - Asian shares rose on Tuesday following an upbeat session on Wall Street, while investors turned their attention to key U.S. inflation data and the Federal Reserve's interest rate decision this week. The equity index's gains partly reflected expectations for the Fed to pause rate hikes for the first time since January 2022, and for both gauges of inflation to come in lower than the prior month, investors and strategists said.
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Lifted by gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O, the S&P 500 has recovered 21% from its October 2022 lows, heralding the start of a new bull market as defined by some market participants. By Julie Zhu HONG KONG, June 13 (Reuters) - Asian shares rose on Tuesday following an upbeat session on Wall Street, while investors turned their attention to key U.S. inflation data and the Federal Reserve's interest rate decision this week. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.8% while U.S. stock futures - the S&P 500 e-minis ESc1 - rose 0.22%.
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15367.0
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2023-06-13 00:00:00 UTC
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GLOBAL MARKETS-Shares get a boost from tech; dollar dithers ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-get-a-boost-from-tech-dollar-dithers-ahead-of-inflation-data
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nan
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nan
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By Amanda Cooper
LONDON, June 13 (Reuters) - Global shares rose on Tuesday, taking their lead from an upbeat session on Wall Street ahead of key U.S. inflation data that could shape the outlook for Federal Reserve monetary policy.
Consumer inflation on Tuesday and wholesale data on Wednesday could offer investors evidence of how successful the Fed has been in taming price pressures, and an indication of how much more U.S. rates may need to rise.
In Europe, the STOXX 600 .STOXX rose 0.3% in early trade, thanks to gains in the technology sector, as shares in Hexagon HEXAb.ST rose 4.6% after the Swedish industrial group said it had signed a collaboration agreement with Nvidia NVDA.O.
Nvidia shares have risen by nearly 200% this year, briefly pushing the company's market value above $1 trillion, as investor enthusiasm for anything exposed to artificial intelligence has lifted the entire sector.
Anticipation of a flood of capital into chip-related companies also helped push Japan's Nikkei index .N225 to its highest in 33 years on Tuesday.
The S&P 500 has entered a technical bull market, as gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O have lifted it by over 20% from its October 2022 lows. So far this year, the S&P has gained 13%, but its equal-weight equivalent .EWGSPC, which dilutes the impact of the largest companies in the index, has risen just 3%.
The Fed is expected to take a break from raising rates, but surprise hikes from the Reserve Bank of Australia and the Bank of Canada last week have served as a reminder to investors that a pause in a rate cycle is sometimes just that and does not necessarily mark a shift to rate cuts.
"For me, it's 50/50 - they could hike - and I think they should, because it will give them more flexibility in July and for the rest of the year," CMC Markets chief markets strategist Michael Hewson said.
"We are closer to 'peak Fed' than we are to anything else. So, for me, it’s a question of how much more juice has the dollar got before it rolls back down again. That is the key thing for me, because I can't say, with any degree of confidence, that the Fed has any more than 25 basis points to go, if that, and I can't say the same for the ECB, or the Bank of England," he added.
The BoE meets next week and is forecast to raise interest rates by another quarter point, from 4.50% currently.
A VERY BRITISH PROBLEM
However, data on Tuesday that showed a rapid pickup in UK wage growth in the three months to April could complicate matters for the central bank, which is already grappling with inflation that is over four times its target of 2%.
"The key takeaway here is, not only was unemployment not ticking higher, we've got strong jobs growth and also wage growth is just extremely high right now and that's going to be making the Bank of England feel very uncomfortable," City Index senior markets analyst Fiona Cincotta said.
Money markets show traders now anticipate a peak in UK rates at around 5.6% by February, up from a terminal rate of 4.85% by November a month ago. 0#BOEWATCH
The European Central Bank, meanwhile, is expected to raise rates by 25 basis points on Thursday and signal it has more room to tighten policy, while the Bank of Japan is expected to maintain its ultra-loose policy after it meets on Friday.
In currencies, the dollar index =USD, which measures the performance of the U.S. currency against six others, fell 0.3% to 103.27. Sterling rose 0.4% against the dollar to $1.2566 after the UK wage data GBP=D3, while the euro EUR= rose 0.43% to $1.0802.
The dollar dropped 0.1% against the yen to 139.51 JPY=.
In commodities, Brent crude futures LCOc1, which are 40% below where they were this time last year, were last up 0.85% at $72.47 a barrel, while U.S. crude futures CLc1 rose 0.5% to $67.49. Gold rose 0.3% to $1,964 an ounce. XAU=
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Additional reporting by Farouq Suleiman in London and by Julie Zhu in Hong Kong; Editing by Christopher Cushing, Jamie Freed & Simon Cameron-Moore)
((julie.zhu1@thomsonreuters.com; Reuters Messaging: julie.zhu1.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The S&P 500 has entered a technical bull market, as gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O have lifted it by over 20% from its October 2022 lows. By Amanda Cooper LONDON, June 13 (Reuters) - Global shares rose on Tuesday, taking their lead from an upbeat session on Wall Street ahead of key U.S. inflation data that could shape the outlook for Federal Reserve monetary policy. Consumer inflation on Tuesday and wholesale data on Wednesday could offer investors evidence of how successful the Fed has been in taming price pressures, and an indication of how much more U.S. rates may need to rise.
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The S&P 500 has entered a technical bull market, as gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O have lifted it by over 20% from its October 2022 lows. By Amanda Cooper LONDON, June 13 (Reuters) - Global shares rose on Tuesday, taking their lead from an upbeat session on Wall Street ahead of key U.S. inflation data that could shape the outlook for Federal Reserve monetary policy. Nvidia shares have risen by nearly 200% this year, briefly pushing the company's market value above $1 trillion, as investor enthusiasm for anything exposed to artificial intelligence has lifted the entire sector.
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The S&P 500 has entered a technical bull market, as gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O have lifted it by over 20% from its October 2022 lows. The Fed is expected to take a break from raising rates, but surprise hikes from the Reserve Bank of Australia and the Bank of Canada last week have served as a reminder to investors that a pause in a rate cycle is sometimes just that and does not necessarily mark a shift to rate cuts. 0#BOEWATCH The European Central Bank, meanwhile, is expected to raise rates by 25 basis points on Thursday and signal it has more room to tighten policy, while the Bank of Japan is expected to maintain its ultra-loose policy after it meets on Friday.
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The S&P 500 has entered a technical bull market, as gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O have lifted it by over 20% from its October 2022 lows. The Fed is expected to take a break from raising rates, but surprise hikes from the Reserve Bank of Australia and the Bank of Canada last week have served as a reminder to investors that a pause in a rate cycle is sometimes just that and does not necessarily mark a shift to rate cuts. However, data on Tuesday that showed a rapid pickup in UK wage growth in the three months to April could complicate matters for the central bank, which is already grappling with inflation that is over four times its target of 2%.
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15368.0
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2023-06-13 00:00:00 UTC
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3 Tech Stocks With More Potential Than Any Cryptocurrency
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-with-more-potential-than-any-cryptocurrency-5
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nan
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nan
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The crypto market reached record heights during the COVID-19 pandemic, with the S&P Cryptocurrency Market index hitting $6,200 in November 2021. The same index has fallen about 68% since then, pulled down by reforms in how certain crypto is mined and businesses pulling back on offering it as a payment method.
As a result, tech stocks have become an increasingly attractive investment alternative thanks to their solid gains as a whole over the long term. For reference, the Nasdaq-100 Technology Sector index has risen 74% in the last five years, while the S&P Cryptocurrency Market index has increased by about 15%.
Here are three tech stocks with more potential today than any cryptocurrency.
1. Advanced Micro Devices
One of the best ways to invest in the stock market is by choosing companies that are active in high-growth markets. Doing so can lead to reliable gains as these companies profit from a sector's development. With that in mind, Advanced Micro Devices (NASDAQ: AMD) is one of the most compelling stocks right now.
The company is home to a solid chip business that supplies its hardware to some major corporations across the tech market. AMD chips can be found powering many devices and platforms, from game consoles to laptops, cloud services, custom-built PCs, and artificial intelligence (AI) programs. Its varied business allows investors to back multiple areas of tech, strengthening its stock potential.
AMD shares have soared 692% in the last five years, well above even the 252% that Bitcoin has risen in the same period. With markets like AI and cloud computing holding vast potential for the company, now is an excellent time to consider investing in AMD stock.
2. Microsoft
As with AMD, Microsoft (NASDAQ: MSFT) has solid positions in a variety of industries. Its home-grown brands like Windows, Office, Xbox, and Azure have granted it significant market shares in operating systems, productivity software, gaming, and the cloud market.
Additionally, the company's stature in tech has provided it with the funds to expand and invest in burgeoning industries. For instance, Microsoft invested $1 billion in ChatGPT developers OpenAI in 2019, which has seemingly put it at the forefront of AI.
The launch of ChatGPT last November triggered an AI race among some of the biggest names in tech, with Microsoft potentially at a massive advantage. Its partnership with OpenAI has allowed it to bring AI upgrades across its product lineup, including Azure, its Office productivity suite, and search engine Bing.
According to data from Grand View Research, the AI market is projected to expand at a compound annual growth rate of 37% through 2030 after hitting $137 billion in 2022. Considering Microsoft is likely to become the go-to for businesses and consumers seeking AI services, the company could enjoy massive gains in the coming years.
Alongside consistent growth in its other business, Microsoft has far more potential over the long term than any cryptocurrency available.
3. Apple
Unlike many cryptocurrencies, Apple's (NASDAQ: AAPL) stock has a reputation for stability and reliable growth. The company's shares have climbed 271% in the last five years, primarily thanks to consistent demand for its products. Apple has built up considerable brand loyalty with consumers over the years by prioritizing quality and presenting its products in an interconnected ecosystem.
In 2022, Apple's sales strategy proved its strength. An economic downturn strained many companies, with smartphone shipments for Samsung and Xiaomi declining by 18.9% and 23.5% in the first quarter of this year. However, Apple seemed to fare far better than the competition, with its iPhone revenue increasing by 2% in the same quarter.
The company's dominance in consumer tech bodes well for the long-term potential of its venture into the virtual reality market and its other product categories.
Data by YCharts
The chart above illustrates how Apple has not only delivered investors more growth than the two biggest cryptocurrencies, Bitcoin and Ethereum, in the last five years, but has done so at a steadier and more reliable rate. Bitcoin and Ethereum's growth has seen massive peaks and valleys, illustrating their volatility. Meanwhile, Apple's popular products and potent brand can almost guarantee stock gains over the long term.
10 stocks we like better than Advanced Micro Devices
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 5, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Bitcoin, Ethereum, 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 Unlike many cryptocurrencies, Apple's (NASDAQ: AAPL) stock has a reputation for stability and reliable growth. AMD chips can be found powering many devices and platforms, from game consoles to laptops, cloud services, custom-built PCs, and artificial intelligence (AI) programs. According to data from Grand View Research, the AI market is projected to expand at a compound annual growth rate of 37% through 2030 after hitting $137 billion in 2022.
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Apple Unlike many cryptocurrencies, Apple's (NASDAQ: AAPL) stock has a reputation for stability and reliable growth. With that in mind, Advanced Micro Devices (NASDAQ: AMD) is one of the most compelling stocks right now. For instance, Microsoft invested $1 billion in ChatGPT developers OpenAI in 2019, which has seemingly put it at the forefront of AI.
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Apple Unlike many cryptocurrencies, Apple's (NASDAQ: AAPL) stock has a reputation for stability and reliable growth. Advanced Micro Devices One of the best ways to invest in the stock market is by choosing companies that are active in high-growth markets. With markets like AI and cloud computing holding vast potential for the company, now is an excellent time to consider investing in AMD stock.
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Apple Unlike many cryptocurrencies, Apple's (NASDAQ: AAPL) stock has a reputation for stability and reliable growth. Here are three tech stocks with more potential today than any cryptocurrency. Alongside consistent growth in its other business, Microsoft has far more potential over the long term than any cryptocurrency available.
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2023-06-13 00:00:00 UTC
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Guru Fundamental Report for AAPL
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-3
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our 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
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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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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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. 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).
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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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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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2023-06-13 00:00:00 UTC
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The 3 Most Promising Tech Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/the-3-most-promising-tech-stocks-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In a stunning turnaround, the tech sector surged to life in the year’s first half, offering investors plenty of options in the shape of promising tech stocks to buy.
The spotlight was on the metaverse in the past year. However, artificial intelligence has taken center stage in today’s economy, capturing all the attention.
For savvy investors looking to capitalize on this resurgence, the realm of high-potential tech stocks is brimming with exciting prospects. Investing in the best tech stocks has proven to be a winning strategy over the past decade.
Brief periods of underperformance give you long-term buying opportunities. That trend is once again unfolding.
Of course, it’s important to navigate the current market landscape cautiously. Inflation and interest rates loom as potential obstacles for tech earnings soon, underscoring the significance of careful stock selection.
So, while the allure of growth tech stocks beckons, remember to be discerning in your choices.
Let’s explore the captivating world of top tech stocks and unlock the boundless opportunities that lie within. Embrace the snazzy and be unique as you embark on this thrilling investment journey.
AAPL Apple $182.68
NVDA Nvidia $388.39
ACN Accenture $310.10
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) continues to make an indelible mark with its innovative lineup of products, but its impressive customer ecosystem makes Apple a compelling investment opportunity.
Apple has garnered a strong reputation in the tech industry because of its cohesive user experience. Recently, the company has witnessed an escalating significance of services as a substantial revenue stream. During the first quarter of Apple’s fiscal year 2023, services revenue contributed 22% of the total revenue.
Apple’s stable free cash flow generation, combined with an aggressive capital allocation strategy, further solidifies its status as a top-tier investment choice.
Apple showcased several machine learning-powered features during this year’s WWDC. These features leverage on-device machine learning and advanced ML techniques to provide users with more accurate and personalized experiences across Apple’s ecosystem.
With its unrivaled product portfolio, Apple continues to demonstrate why it deserves a place in any investor’s portfolio.
Nvidia (NVDA)
Source: Shutterstock
When discussing promising tech stocks to buy, Nvidia (NASDAQ:NVDA) undoubtedly tops the charts.
Renowned for designing and selling high-end graphics and video processing chips, Nvidia’s presence in the desktop, gaming PC, workstation, and advanced computing sectors is nothing short of stellar.
Moreover, Nvidia’s performance over the past 15 years has been nothing short of remarkable, consistently outshining the market. Notably, its success story continues to unfold in 2023, with a staggering year-to-date gain of more than 170%.
Nvidia’s momentum in the data center business, driven by its Hopper-based graphics processor units, positions it as one of the most promising tech stocks to buy.
The company’s impressive growth prospects show high potential for investors looking for the best tech stocks to invest in. With about 59% overall revenue growth projected for fiscal 2024, Nvidia is undoubtedly among the top tech stocks.
NVDA is hot right now, so value investors might want to wait for a more attractive entry point. With the state of the markets, it can happen sooner rather than later.
Earlier in the year, NVDA stock slumped when it gave negative revenue guidance. However, things turned around when the chip maker said it expects $11 billion in fiscal second-quarter revenue after a sharp rise in its AI-powering GPUs.
Accenture (ACN)
Source: Tada Images/ShutterStock.com
Amidst the ever-changing landscape of promising tech stocks to buy, Accenture (NYSE:ACN) emerges as a true gem.
As a global information technology services firm specializing in consulting and outsourcing, Accenture offers investors a high-potential tech stock with an unmatched track record.
Accenture is a beacon of stability and a top choice for defensive plays in an uncertain macroeconomic environment. With a diverse business portfolio, a solid balance sheet, and an industry-leading history of earnings growth, Accenture proves itself as a high-quality investment.
While recent quarters saw disruptions in Russia and foreign exchange headwinds affecting growth, Accenture remained undeterred. Operating at an exceptional level, the company showcased its ability to anticipate customers’ needs and consistently outperform its operating markets.
Accenture holds a prominent position in the competition for AI integration, making it an attractive choice for investors. The company’s extensive expertise enables it to incorporate AI and various sought-after solutions into clients’ products and internal systems.
As a frontrunner in the industry, Accenture’s leadership role further solidifies its potential as a lucrative investment opportunity.
Amidst the storm, Accenture’s expertise shines brightly, navigating through uncertainties precisely. Moreover, the company’s unwavering commitment to delivering excellence places it at the forefront of the tech industry.
Therefore, investors seeking the best tech stocks to invest in should keep a close eye on Accenture. With its proven resilience, this high-potential tech stock offers a unique opportunity for long-term growth.
On the publication date, Faizan Farooque did not hold (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.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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The post The 3 Most Promising Tech Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $182.68 NVDA Nvidia $388.39 ACN Accenture $310.10 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) continues to make an indelible mark with its innovative lineup of products, but its impressive customer ecosystem makes Apple a compelling investment opportunity. Apple’s stable free cash flow generation, combined with an aggressive capital allocation strategy, further solidifies its status as a top-tier investment choice. Renowned for designing and selling high-end graphics and video processing chips, Nvidia’s presence in the desktop, gaming PC, workstation, and advanced computing sectors is nothing short of stellar.
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AAPL Apple $182.68 NVDA Nvidia $388.39 ACN Accenture $310.10 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) continues to make an indelible mark with its innovative lineup of products, but its impressive customer ecosystem makes Apple a compelling investment opportunity. Nvidia (NVDA) Source: Shutterstock When discussing promising tech stocks to buy, Nvidia (NASDAQ:NVDA) undoubtedly tops the charts. Accenture (ACN) Source: Tada Images/ShutterStock.com Amidst the ever-changing landscape of promising tech stocks to buy, Accenture (NYSE:ACN) emerges as a true gem.
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AAPL Apple $182.68 NVDA Nvidia $388.39 ACN Accenture $310.10 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) continues to make an indelible mark with its innovative lineup of products, but its impressive customer ecosystem makes Apple a compelling investment opportunity. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In a stunning turnaround, the tech sector surged to life in the year’s first half, offering investors plenty of options in the shape of promising tech stocks to buy. Nvidia (NVDA) Source: Shutterstock When discussing promising tech stocks to buy, Nvidia (NASDAQ:NVDA) undoubtedly tops the charts.
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AAPL Apple $182.68 NVDA Nvidia $388.39 ACN Accenture $310.10 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) continues to make an indelible mark with its innovative lineup of products, but its impressive customer ecosystem makes Apple a compelling investment opportunity. During the first quarter of Apple’s fiscal year 2023, services revenue contributed 22% of the total revenue. With about 59% overall revenue growth projected for fiscal 2024, Nvidia is undoubtedly among the top tech stocks.
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2023-06-13 00:00:00 UTC
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Apple's Biggest Advantage Over Meta in VR
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AAPL
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https://www.nasdaq.com/articles/apples-biggest-advantage-over-meta-in-vr
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nan
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nan
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Meta Platforms (NASDAQ: META) may have a big head start on Apple (NASDAQ: AAPL) in virtual reality, but there's a big difference in how their products will get into consumers' hands. Apple will be able to control the user experience from Day 1, which Meta can't compete with. Travis Hoium discusses this more in this video.
*Stock prices used were end-of-day prices of June 7, 2023. The video was published on June 8, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 5, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple, Best Buy, and Meta Platforms. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta Platforms (NASDAQ: META) may have a big head start on Apple (NASDAQ: AAPL) in virtual reality, but there's a big difference in how their products will get into consumers' hands. Apple will be able to control the user experience from Day 1, which Meta can't compete with. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Meta Platforms (NASDAQ: META) may have a big head start on Apple (NASDAQ: AAPL) in virtual reality, but there's a big difference in how their products will get into consumers' hands. See the 10 stocks *Stock Advisor returns as of June 5, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Apple, Best Buy, and Meta Platforms.
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Meta Platforms (NASDAQ: META) may have a big head start on Apple (NASDAQ: AAPL) in virtual reality, but there's a big difference in how their products will get into consumers' hands. See the 10 stocks *Stock Advisor returns as of June 5, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Apple, Best Buy, and Meta Platforms.
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Meta Platforms (NASDAQ: META) may have a big head start on Apple (NASDAQ: AAPL) in virtual reality, but there's a big difference in how their products will get into consumers' hands. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! The Motley Fool has positions in and recommends Apple, Best Buy, and Meta Platforms.
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2023-06-13 00:00:00 UTC
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GLOBAL MARKETS-Shares get a tech boost; dollar dithers ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-get-a-tech-boost-dollar-dithers-ahead-of-inflation-data
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nan
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nan
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By Amanda Cooper
LONDON, June 13 (Reuters) - Global shares rose on Tuesday, taking their lead from an upbeat session on Wall Street ahead of key U.S. inflation data that could shape the outlook for Federal Reserve monetary policy.
Consumer inflation on Tuesday and wholesale data on Wednesday could offer investors evidence of how successful the Fed has been in taming price pressures, and an indication of how much more U.S. rates may need to rise.
The MSCI All-World index .MIWD00000PUS was last up 0.3%. Technology stocks were standout gainers in most markets. In Europe, shares in Hexagon HEXAb.ST rose by as much as 6.4% after the Swedish industrial group said it had signed a collaboration agreement with Nvidia NVDA.O.
Nvidia shares have risen by nearly 200% this year, briefly pushing the company's market value above $1 trillion, as investor enthusiasm for anything exposed to artificial intelligence has lifted the entire sector.
Anticipation of a flood of capital into chip-related companies also helped push Japan's Nikkei index .N225 to its highest in 33 years on Tuesday.
On Monday, the S&P 500 .SPX and the Nasdaq .IXIC rallied to their highest closing levels since April 2022.
The S&P 500 has entered a technical bull market, as gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O have lifted it by over 20% from its October 2022 lows. So far this year, the S&P has gained 13%, but its equal-weight equivalent .EWGSPC, which dilutes the impact of the largest companies in the index, has risen just 3%.
The Fed is expected to take a break from raising rates, but surprise hikes from the Reserve Bank of Australia and the Bank of Canada last week have served as a reminder that a pause in a rate cycle is sometimes just that.
"For me, it's 50/50 - they could hike - and I think they should, because it will give them more flexibility in July and for the rest of the year," CMC Markets chief markets strategist Michael Hewson said.
"We are closer to 'peak Fed' than we are to anything else. So, for me, it’s a question of how much more juice has the dollar got before it rolls back down again," he said.
"I can't say, with any degree of confidence, that the Fed has any more than 25 basis points to go, if that, and I can't say the same for the ECB, or the Bank of England," he added.
The BoE meets next week and is forecast to raise interest rates by another quarter point, from 4.50% currently.
A VERY BRITISH PROBLEM
Data on Tuesday that showed a rapid pickup in UK wage growth in the three months to April could complicate matters for the central bank, which is already grappling with inflation that is over four times its target of 2%.
"The key takeaway here is, not only was unemployment not ticking higher, we've got strong jobs growth and also wage growth is just extremely high right now and that's going to be making the Bank of England feel very uncomfortable," City Index senior markets analyst Fiona Cincotta said.
Money markets show traders now anticipate a peak in UK rates at around 5.6% by February, up from a terminal rate of 4.85% by November a month ago. 0#BOEWATCH
The European Central Bank, meanwhile, is expected to raise rates by 25 basis points on Thursday and signal it has more room to tighten policy, while the Bank of Japan is expected to maintain its ultra-loose policy after it meets on Friday.
In currencies, the dollar index =USD, which measures the performance of the U.S. currency against six others, fell 0.2% to 103.32. Sterling rose 0.4% against the dollar to $1.2567 after the UK wage data GBP=D3, while the euro EUR= rose 0.4% to $1.0796.
The dollar was flat against the yen at 139.57 JPY=.
In commodities, Brent crude futures LCOc1, which are 40% below where they were this time last year, were last up 2% at $73.33 a barrel, while U.S. crude futures CLc1 rose 1.8% to $68.31. Gold rose 0.5% to $1,967 an ounce. XAU=
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Additional reporting by Farouq Suleiman in London and by Julie Zhu in Hong Kong; Editing by Christopher Cushing, Jamie Freed, Simon Cameron-Moore & Conor Humphries)
((julie.zhu1@thomsonreuters.com; Reuters Messaging: julie.zhu1.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The S&P 500 has entered a technical bull market, as gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O have lifted it by over 20% from its October 2022 lows. By Amanda Cooper LONDON, June 13 (Reuters) - Global shares rose on Tuesday, taking their lead from an upbeat session on Wall Street ahead of key U.S. inflation data that could shape the outlook for Federal Reserve monetary policy. Data on Tuesday that showed a rapid pickup in UK wage growth in the three months to April could complicate matters for the central bank, which is already grappling with inflation that is over four times its target of 2%.
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The S&P 500 has entered a technical bull market, as gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O have lifted it by over 20% from its October 2022 lows. By Amanda Cooper LONDON, June 13 (Reuters) - Global shares rose on Tuesday, taking their lead from an upbeat session on Wall Street ahead of key U.S. inflation data that could shape the outlook for Federal Reserve monetary policy. 0#BOEWATCH The European Central Bank, meanwhile, is expected to raise rates by 25 basis points on Thursday and signal it has more room to tighten policy, while the Bank of Japan is expected to maintain its ultra-loose policy after it meets on Friday.
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The S&P 500 has entered a technical bull market, as gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O have lifted it by over 20% from its October 2022 lows. The Fed is expected to take a break from raising rates, but surprise hikes from the Reserve Bank of Australia and the Bank of Canada last week have served as a reminder that a pause in a rate cycle is sometimes just that. 0#BOEWATCH The European Central Bank, meanwhile, is expected to raise rates by 25 basis points on Thursday and signal it has more room to tighten policy, while the Bank of Japan is expected to maintain its ultra-loose policy after it meets on Friday.
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The S&P 500 has entered a technical bull market, as gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O have lifted it by over 20% from its October 2022 lows. Nvidia shares have risen by nearly 200% this year, briefly pushing the company's market value above $1 trillion, as investor enthusiasm for anything exposed to artificial intelligence has lifted the entire sector. Data on Tuesday that showed a rapid pickup in UK wage growth in the three months to April could complicate matters for the central bank, which is already grappling with inflation that is over four times its target of 2%.
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15373.0
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2023-06-13 00:00:00 UTC
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3 Stocks That Are Screaming Buys as Inflation Slows Down
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-are-screaming-buys-as-inflation-slows-down
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This is certainly not a market many would categorize as one with numerous screaming buys to go after. Indeed, the macro backdrop remains uncertain, with geopolitical tensions high and a Federal Reserve intent on keeping interest rates high to battle inflation. That said, the Fed’s fight against inflation is resulting in some ground being gained, and stocks to buy amid slowing inflation. In fact, right now, many inflation metrics are coming down. Plus, considering the lagging effect of some of the data, it’s possible we could actually be in the midst of a lower-inflation environment. Thus, it actually may be possible for the unicorn-like soft landing to really take place, given the strength of the labor market of late.
Restrictive monetary policy has hampered demand, though the supply of many goods in the economy remains tight. This has led to a rather robust period, relative to expert expectations, of late. If this continues, and inflation continues to move in the right direction, there are some stocks I’d call screaming buys right now. Here are three stocks to buy amid slowing inflation I have an eye on.
PEP PepsiCo $181.90
TGT Target $126.48
AAPL Apple $183.79
PepsiCo (PEP)
Source: shutterstock.com/CC7
PepsiCo (NASDAQ:PEP) has managed to post substantial revenue increases in recent quarters. This is impressive, considering the company’s established position in a mature market. In April, management disclosed that organic revenue soared by 14% in Q1, prompting an upward revision of Pepsi’s 2023 sales forecast. Pepsi now anticipates an additional 8% revenue increase on top of last year’s 14% surge.
Despite a slight decline in overall sales volumes, higher prices for snacks and beverages contributed to positive performance. Food segment volume decreased by 3%, while beverage volume increased by 1%. CEO Ramon Laguarta expressed satisfaction, highlighting the resilience of Pepsi’s categories and geographies. Thus, inflation hasn’t impacted this consumer discretionary name as much as many expected. We all seem to want our inexpensive treats, and PepsiCo is a company that provides these in droves.
The company also recently announced a 10% dividend increase and raised its full-year organic growth guidance. With a strong brand and an impressive track record of 51 consecutive years of increasing annual payouts, this food and beverage conglomerate presents an appealing investment opportunity. Dare I say it, this could be a screaming buy, if we see the so-called soft landing everyone is looking for materialize.
Target (TGT)
Source: Freedom365day / Shutterstock.com
Despite being a prominent big-box retail giant, Target (NYSE:TGT) has experienced a contrasting performance compared to the soaring stock market. The company’s shares have decreased significantly during the previous week, losing nearly 8%.
While Target has successfully decreased inventory levels, the company is currently encountering challenges from various angles. Inventory shrinkage, which includes theft, is anticipated to impact profits negatively by over $500 million this year. Additionally, according to an analyst from KeyBanc, the resumption of student loan payments later in the year might diminish the spending capacity of Target’s customer base.
However, Target has experienced a remarkable increase in dividends of more than 150% during the previous ten years, together with a large decrease in the number of shares outstanding, leading to a steady rise in earnings per share. Target has maintained a phenomenal growth rate of over 40% over the past ten years notwithstanding an earlier fall in profitability, demonstrating its ability to operate well throughout times of slowing in the economy. Thus, this is more of a screaming buy in weak economic periods, putting this stock on my radar right now.
Apple (AAPL)
Source: Chompoo Suriyo / Shutterstock.com
Apple’s (NASDAQ:AAPL) stock rose in anticipation of its WWDC Developer Conference, where it unveiled new virtual reality headphones. Better, the AR market research indicates a 42% CAGR till 2030. Apple’s innovative headset has unparalleled capabilities, poised to lead the industry. With AR’s bright future, investing in Apple’s Vision Pro is a compelling opportunity. Investors should take into account that as Apple matures, it is likely to consistently increase its dividends.
On the date of publication, Chris MacDonald has a position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 Stocks That Are Screaming Buys as Inflation Slows Down 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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PEP PepsiCo $181.90 TGT Target $126.48 AAPL Apple $183.79 PepsiCo (PEP) Source: shutterstock.com/CC7 PepsiCo (NASDAQ:PEP) has managed to post substantial revenue increases in recent quarters. Apple (AAPL) Source: Chompoo Suriyo / Shutterstock.com Apple’s (NASDAQ:AAPL) stock rose in anticipation of its WWDC Developer Conference, where it unveiled new virtual reality headphones. On the date of publication, Chris MacDonald has a position in AAPL.
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PEP PepsiCo $181.90 TGT Target $126.48 AAPL Apple $183.79 PepsiCo (PEP) Source: shutterstock.com/CC7 PepsiCo (NASDAQ:PEP) has managed to post substantial revenue increases in recent quarters. Apple (AAPL) Source: Chompoo Suriyo / Shutterstock.com Apple’s (NASDAQ:AAPL) stock rose in anticipation of its WWDC Developer Conference, where it unveiled new virtual reality headphones. On the date of publication, Chris MacDonald has a position in AAPL.
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PEP PepsiCo $181.90 TGT Target $126.48 AAPL Apple $183.79 PepsiCo (PEP) Source: shutterstock.com/CC7 PepsiCo (NASDAQ:PEP) has managed to post substantial revenue increases in recent quarters. Apple (AAPL) Source: Chompoo Suriyo / Shutterstock.com Apple’s (NASDAQ:AAPL) stock rose in anticipation of its WWDC Developer Conference, where it unveiled new virtual reality headphones. On the date of publication, Chris MacDonald has a position in AAPL.
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PEP PepsiCo $181.90 TGT Target $126.48 AAPL Apple $183.79 PepsiCo (PEP) Source: shutterstock.com/CC7 PepsiCo (NASDAQ:PEP) has managed to post substantial revenue increases in recent quarters. Apple (AAPL) Source: Chompoo Suriyo / Shutterstock.com Apple’s (NASDAQ:AAPL) stock rose in anticipation of its WWDC Developer Conference, where it unveiled new virtual reality headphones. On the date of publication, Chris MacDonald has a position in AAPL.
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15374.0
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2023-06-13 00:00:00 UTC
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US STOCKS-Futures rise ahead of inflation reading, Fed meet in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-ahead-of-inflation-reading-fed-meet-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.
Inflation data due at 8:30 a.m. ET
Apple slips on UBS downgrade
Oracle jumps on upbeat forecast
Futures up: Dow 0.02%, S&P 0.10%, Nasdaq 0.28%
Updated at 6:58 a.m. ET (1058 GMT
June 13 (Reuters) - U.S. stock index futures rose on Tuesday ahead of data that is expected to show consumer prices cooled in May, likely supporting bets that the Federal Reserve could skip raising interest rates this month.
The U.S. Labor Department's consumer price index (CPI) reading, due at 8:30 a.m. ET, is expected to show inflation rose 0.2% last month compared with a 0.4% jump in April, with core inflation likely to have remain unchanged at 0.4%.
The Fed will commence its two-day policy meeting later in the day, with an interest rate decision due on Wednesday, followed by Chair Jerome Powell's news conference.
Traders see a nearly 80% chance that the central bank will hold interest rates at the 5%-5.25% range, while pricing in an almost 60% chance of a 25-basis-point hike in July, according to the CME Fedwatch tool.
"We expect a further deceleration in both the headline and core indices. This, in turn, might convince investors that the FOMC will likely announce a pause on rates tomorrow," UniCredit analysts said.
"However, the market has certainly not rejected the possibility of a last rate hike in either July or September."
The S&P 500 .SPX and the Nasdaq .IXIC logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O.
The benchmark S&P 500 has risen 21% from its October 2022 lows, heralding a bull market according to some investors.
At 6:58 a.m. ET, Dow e-minis 1YMcv1 were up 6 points, or 0.02%, S&P 500 e-minis EScv1 were up 4.5 points, or 0.1%, and Nasdaq 100 e-minis NQcv1 were up 41.25 points, or 0.28%.
Oracle CorpORCL.N jumped 4.9% premarket as the software firm topped quarterly revenue estimates and forecast an upbeat current quarter, while Intel CorpINTC.O gained 1.5% after the chipmaker entered in talks with SoftBank Group Corp's 9984.T Arm to be an anchor investor in its initial public offering (IPO).
AppleAAPL.O slipped 0.8% after UBS downgraded the iPhone maker to "neutral" from "buy".
Advanced Micro DevicesAMD.O rose 1.8% ahead of unveiling details about its "AI Superchip".
Bunge Ltd BG.N slipped 2.5% after the U.S. grains merchant and Glencore GLEN.L-backed Viterra announced an $18 billion merger deal, including debt.
U.S.-listed shares of Chinese companies including JD.com JD.O, Alibaba Group BABA.N, Baidu Inc BIDU.O and Netease Inc NTES.O rose between 2.2% and 4.7% after China's central bank lowered a short-term lending rate for the first time in 10 months.
A market divide over the Fed https://tmsnrt.rs/3NmS4rA
(Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@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 S&P 500 .SPX and the Nasdaq .IXIC logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. AppleAAPL.O slipped 0.8% after UBS downgraded the iPhone maker to "neutral" from "buy". ET (1058 GMT June 13 (Reuters) - U.S. stock index futures rose on Tuesday ahead of data that is expected to show consumer prices cooled in May, likely supporting bets that the Federal Reserve could skip raising interest rates this month.
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The S&P 500 .SPX and the Nasdaq .IXIC logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. AppleAAPL.O slipped 0.8% after UBS downgraded the iPhone maker to "neutral" from "buy". ET Apple slips on UBS downgrade Oracle jumps on upbeat forecast Futures up: Dow 0.02%, S&P 0.10%, Nasdaq 0.28% Updated at 6:58 a.m.
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The S&P 500 .SPX and the Nasdaq .IXIC logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. AppleAAPL.O slipped 0.8% after UBS downgraded the iPhone maker to "neutral" from "buy". ET (1058 GMT June 13 (Reuters) - U.S. stock index futures rose on Tuesday ahead of data that is expected to show consumer prices cooled in May, likely supporting bets that the Federal Reserve could skip raising interest rates this month.
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The S&P 500 .SPX and the Nasdaq .IXIC logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. AppleAAPL.O slipped 0.8% after UBS downgraded the iPhone maker to "neutral" from "buy". ET Apple slips on UBS downgrade Oracle jumps on upbeat forecast Futures up: Dow 0.02%, S&P 0.10%, Nasdaq 0.28% Updated at 6:58 a.m.
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2023-06-13 00:00:00 UTC
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Is WisdomTree U.S. LargeCap Dividend ETF (DLN) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-largecap-dividend-etf-dln-a-strong-etf-right-now-9
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nan
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nan
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The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Wisdomtree, and has been able to amass over $3.49 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. DLN seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index before fees and expenses.
The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.28% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.65%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 18.30% of the portfolio. Healthcare and Financials round out the top three.
Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 26.1% of DLN's total assets under management.
Performance and Risk
So far this year, DLN has gained about 1.87%, and is up about 5.12% in the last one year (as of 06/13/2023). During this past 52-week period, the fund has traded between $55.26 and $64.63.
DLN has a beta of 0.89 and standard deviation of 15.09% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 301 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $49.98 billion in assets, Vanguard Value ETF has $98.16 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. LargeCap Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market.
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Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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Taking into account individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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15376.0
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2023-06-13 00:00:00 UTC
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Wall Street futures rise ahead of inflation reading, Fed meet in focus
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AAPL
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https://www.nasdaq.com/articles/wall-street-futures-rise-ahead-of-inflation-reading-fed-meet-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.
Futures up: Dow 0.07%, S&P 0.27%, Nasdaq 0.53%
June 13 (Reuters) - U.S. stock index futures on Tuesday rose ahead of inflation data that is expected to show prices cooled in May, supporting bets that the Federal Reserve could skip raising interest rates this month.
The U.S. labor Department's consumer price index (CPI) reading, due at 8:30 a.m. ET, is expected to show inflation rose 0.2% last month compared with a 0.4% rise in April, with core inflation likely to have remain unchanged at 0.4%.
The Fed will commence its two-day policy meeting later in the day, with an interest rate decision due on Wednesday, followed by Fed Chair Jerome Powell's news conference.
Traders see a 76% chance that the central bank will hold interest rates at the 5%-5.25% range, while pricing in a 56% chance of a 25-basis-point hike in July, according to the CME Fedwatch tool.
The S&P 500 .SPX and the Nasdaq .IXIC logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O.
The benchmark S&P 500 has risen 21% from its October 2022 lows, which some investors consider points to a bull market.
At 5:26 a.m. ET, Dow e-minis 1YMcv1 were up 25 points, or 0.07%, S&P 500 e-minis EScv1 were up 11.75 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 79 points, or 0.53%.
Oracle CorpORCL.N jumped 4.1% premarket, as the software firm topped quarterly revenue estimates and forecast an upbeat current quarter, driven by growing demand for its cloud offerings from companies deploying AI.
Apple slipped 0.8% after UBS downgraded the iPhone maker to "neutral" from "buy".
Intel CorpINTC.O gained 1.5% after the chipmaker entered in talks with SoftBank Group Corp's 9984.T Arm to be an anchor investor in its initial public offering (IPO).
Advanced Micro DevicesAMD.O rose 2.3% ahead of the chipmaker revealing new details about its "AI Superchip" later in the day.
Aiding sentiment, China's central bank lowered a short-term lending rate for the first time in 10 months, to help restore market confidence in the world's second-largest economy.
U.S.-listed shares of Chinese companies including JD.com JD.O, Alibaba Group BABA.N, Baidu Inc BIDU.O and Netease Inc NTES.O rose between 1.9% and 4.7%.
A market divide over the Fed https://tmsnrt.rs/3NmS4rA
(Reporting by Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@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 S&P 500 .SPX and the Nasdaq .IXIC logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. Intel CorpINTC.O gained 1.5% after the chipmaker entered in talks with SoftBank Group Corp's 9984.T Arm to be an anchor investor in its initial public offering (IPO). Aiding sentiment, China's central bank lowered a short-term lending rate for the first time in 10 months, to help restore market confidence in the world's second-largest economy.
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The S&P 500 .SPX and the Nasdaq .IXIC logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. Futures up: Dow 0.07%, S&P 0.27%, Nasdaq 0.53% June 13 (Reuters) - U.S. stock index futures on Tuesday rose ahead of inflation data that is expected to show prices cooled in May, supporting bets that the Federal Reserve could skip raising interest rates this month. ET, is expected to show inflation rose 0.2% last month compared with a 0.4% rise in April, with core inflation likely to have remain unchanged at 0.4%.
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The S&P 500 .SPX and the Nasdaq .IXIC logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. Futures up: Dow 0.07%, S&P 0.27%, Nasdaq 0.53% June 13 (Reuters) - U.S. stock index futures on Tuesday rose ahead of inflation data that is expected to show prices cooled in May, supporting bets that the Federal Reserve could skip raising interest rates this month. ET, Dow e-minis 1YMcv1 were up 25 points, or 0.07%, S&P 500 e-minis EScv1 were up 11.75 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 79 points, or 0.53%.
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The S&P 500 .SPX and the Nasdaq .IXIC logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com AMZN.O, Apple AAPL.O and Tesla TSLA.O. 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 0.07%, S&P 0.27%, Nasdaq 0.53% June 13 (Reuters) - U.S. stock index futures on Tuesday rose ahead of inflation data that is expected to show prices cooled in May, supporting bets that the Federal Reserve could skip raising interest rates this month.
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15377.0
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2023-06-13 00:00:00 UTC
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3 Simple Reasons Why I'm Not Celebrating a New Bull Market
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AAPL
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https://www.nasdaq.com/articles/3-simple-reasons-why-im-not-celebrating-a-new-bull-market
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nan
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nan
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Happy days are here again. That could be what some investors are singing, with the S&P 500 rising more than 20% below the low set on Oct. 12, 2022.
Many are cheering that the S&P is at long last in a bull market. Not me. Here are three simple reasons why I'm not celebrating a new bull market.
Image source: Getty Images.
1. It's arguably not a new bull market yet.
The most important reason why I'm not jumping up and down is that it's arguably not a new bull market yet. Sure, some investors mark the beginning of a new bull market as a 20% increase above the previous low in a bear market. However, that's not enough for all investors.
For many investors, two things are required for a new S&P 500 bull market to be declared. First, the index must rise 20% above its previous bear market low. Second, the index must reach a new all-time high.
The S&P 500 has clearly met the first criterion, but it hasn't achieved the second yet. The index has another 11% or so to go to check off the second requirement.
^SPX data by YCharts
2. Too few stocks are participating.
I also have another concern about the S&P 500's latest rally. While it's great that the index has risen strongly, too few stocks are participating in the move.
Analysts often look at market breadth -- how many stocks are participating in a move for an index. In one way, the market breadth for the current S&P 500 uptrend is the weakest it's ever been. The percentage of stocks in the S&P 500 that have outperformed the overall index is unusually low.
Sure, many of the biggest stocks in the S&P have soared this year. The three largest of all -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- are each up close to 40%. Amazon's shares have vaulted nearly 50% higher. Nvidia, Tesla, and Meta Platforms have each more than doubled year to date.
AAPL data by YCharts
But it's a much different story for most other members of the S&P 500. Nearly half of the stocks in the index are in negative territory so far in 2023. More than 100 of the stocks that have delivered positive year-to-date gains are underperforming the index.
3. The rally could only be temporary.
Finally, I'm not celebrating a new S&P 500 bull market because I realize the current rally could only be temporary. Why am I so cautious? Mainly because of the Federal Reserve.
The Fed's own economists have warned that the U.S. economy will likely enter into a mild recession this year. It's possible that the stock market could hold up well during a recession, but I wouldn't bet on it.
Also, I think that some of the bullishness we're seeing right now is because many investors expect that the Fed's interest rate hikes are over. However, inflation has remained stubbornly high. I wouldn't rule out the possibility that the Fed could still raise rates again. If that happens, it just might derail the S&P's rebound.
Why I'm still bullish on stocks
Although I'm not celebrating a new bull market yet just, I'm absolutely still bullish on stocks -- over the long term. While it would be great if the S&P 500 began a new bull market that was universally accepted this year, it won't hurt my feelings if it doesn't.
Whatever happens, I'll continue to own stocks of companies that I think have excellent long-term prospects. They include several of the big winners of 2023 so far, such as Apple, Microsoft, and Alphabet. I'll also selectively initiate new positions even if the S&P 500 pulls back.
Maybe stocks will go up more this year; maybe they won't. Regardless, I know that they tend to rise more over time than they fall. It's easy to be a bull with this understanding -- even when there isn't a bull market in progress.
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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. Keith Speights has positions in Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The three largest of all -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- are each up close to 40%. AAPL data by YCharts But it's a much different story for most other members of the S&P 500. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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The three largest of all -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- are each up close to 40%. AAPL data by YCharts But it's a much different story for most other members of the S&P 500. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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The three largest of all -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- are each up close to 40%. AAPL data by YCharts But it's a much different story for most other members of the S&P 500. Sure, some investors mark the beginning of a new bull market as a 20% increase above the previous low in a bear market.
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The three largest of all -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- are each up close to 40%. AAPL data by YCharts But it's a much different story for most other members of the S&P 500. Analysts often look at market breadth -- how many stocks are participating in a move for an index.
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15378.0
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2023-06-13 00:00:00 UTC
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Got $1,000? 2 Stocks to Buy for the Long Term
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AAPL
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https://www.nasdaq.com/articles/got-%241000-2-stocks-to-buy-for-the-long-term-0
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nan
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nan
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There's a lot of uncertainty among stock analysts these days, with many at odds about whether there's currently a bear or bull market. Some experts are celebrating that multiple stocks have recovered after suffering from an economic downturn in 2022. However, others are not sure if it will last, with a potential slowdown in earnings bringing the market back down in the coming months.
As a result, now is an excellent time to invest in companies with a history of solid growth, which can make temporary headwinds inconsequential over the long term. Companies like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are attractive options, as they have granted investors consistent gains over the last decade, thanks to the potency of their respective businesses.
Additionally, it doesn't take tens of thousands of dollars to benefit from these companies' potential growth. So, got $1,000? Here are two stocks to buy for the long term.
1. Amazon
Amazon lost steam in 2022, with its stock tumbling 50% throughout the year as macroeconomic challenges hit its business particularly hard. However, the company continues to have solid long-term prospects thanks to its positions across multiple sectors.
Despite a downturn in e-commerce last year, Amazon's leading 38% U.S. market share in the industry could prove a massive asset in the coming years. Its dominance is most evident by Walmart's second-largest share of 6%, making Amazon well-positioned to profit substantially from the sector's growth. And according to Statista, the e-commerce market is projected to grow by more than 53% by 2027 and hit nearly $6 trillion.
Moreover, Amazon has steadily expanding positions in cloud services with Amazon Web Services (AWS) and artificial intelligence (AI). These industries have become closely intertwined in recent months as more cloud platforms are expanding their range of AI services. Meanwhile, Amazon holds the largest cloud market share, at 32%.
Amazon shares have soared around 800% over the last decade, proving the company's strength as an excellent long-term investment. Amazon may have stumbled last year, but its diverse business serving several high-growth markets gives it a solid outlook over the next 10 years and beyond.
2. Apple
While Amazon dominates e-commerce, Apple is leading the way in consumer technology. The company's devices have gained such traction with shoppers that Apple is responsible for the third-largest share in e-commerce in the U.S. at 4%, despite selling a considerably more limited range of products than others in the industry.
Consistent demand for Apple's products has seen its stock skyrocket more than 1,000% since 2013, as it has attained leading market share in smartphones, tablets, smartwatches, and headphones. As a result, in the same period, Apple's revenue climbed 131%, and operating income increased by 144%.
The iPhone company's success with consumers is primarily thanks to its priority on quality products and an interconnected ecosystem that sets it apart from the competition. Advanced connectivity between its devices promotes ease of use, but also makes consumers think twice before switching to non-Apple alternatives. This strategy makes the company exceptionally skilled at entering new product categories, which makes the recent debut of its virtual/augmented reality (VR/AR) headset promising for its future.
Called the Vision Pro, the new headset was announced on June 5 and will start at $3,500 once it launches in early 2024. The high price point makes the device out of reach for many consumers. However, future generations of the headset will likely bring the cost down. Meanwhile, Apple can use this time to hone its VR/AR technology and attract app developers to expand the headset's capabilities.
It will take time, but Apple's dominance in consumer tech and brand loyalty give it a better chance than most to flourish in the high-growth sector over the long term. That means now is an excellent time to stock up on Apple shares.
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They just revealed their ten top stock picks for investors to buy right now. Amazon.com is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of June 5, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Companies like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are attractive options, as they have granted investors consistent gains over the last decade, thanks to the potency of their respective businesses. As a result, now is an excellent time to invest in companies with a history of solid growth, which can make temporary headwinds inconsequential over the long term. The company's devices have gained such traction with shoppers that Apple is responsible for the third-largest share in e-commerce in the U.S. at 4%, despite selling a considerably more limited range of products than others in the industry.
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Companies like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are attractive options, as they have granted investors consistent gains over the last decade, thanks to the potency of their respective businesses. Despite a downturn in e-commerce last year, Amazon's leading 38% U.S. market share in the industry could prove a massive asset in the coming years. Moreover, Amazon has steadily expanding positions in cloud services with Amazon Web Services (AWS) and artificial intelligence (AI).
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Companies like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are attractive options, as they have granted investors consistent gains over the last decade, thanks to the potency of their respective businesses. Despite a downturn in e-commerce last year, Amazon's leading 38% U.S. market share in the industry could prove a massive asset in the coming years. Apple While Amazon dominates e-commerce, Apple is leading the way in consumer technology.
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Companies like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are attractive options, as they have granted investors consistent gains over the last decade, thanks to the potency of their respective businesses. Despite a downturn in e-commerce last year, Amazon's leading 38% U.S. market share in the industry could prove a massive asset in the coming years. Apple While Amazon dominates e-commerce, Apple is leading the way in consumer technology.
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15379.0
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2023-06-13 00:00:00 UTC
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The 3 Best ETFs to Buy to Balance Risk and Reward
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AAPL
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https://www.nasdaq.com/articles/the-3-best-etfs-to-buy-to-balance-risk-and-reward
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Veteran MarketWatch columnist Mark Hulbert recently revived the supposedly dead 60/40 portfolio. Once, the top ETFs for a balanced portfolio combined equities and fixed income in a 60/40 split.
Hulbert predicts a “regression to the mean.” He suggests that the 60/40 portfolio, down 23.4% in 2022, could rebound in 2023. So far, it has surged over 17% through May. This yearly return is double the 7.7% historical average, dating back to 1793.
Hulbert’s insight implies that a consistent 7.7% annual return over 230 years isn’t disappointing. Consider this: a $5 investment in 1793 in the 60/40 portfolio would today be a staggering $128.4 million. Such is the magic of compound interest.
Still not convinced?
Vanguard Canada analyzed the 60/40 portfolio’s performance over the last decade. Through 2022, it had an annualized return of 6.1% for a globally diversified portfolio.
Vanguard’s senior investment strategist, Todd Schlanger, notes, “2022 may have been tough for investors, yet it brought asset class valuations down. Most are now fairly valued, except U.S. stocks, still priced above fair-value range.”
So how can you position yourself in light of these insights? Consider these best ETFs for a balanced portfolio.
Vanguard Total World Stock Fund ETF
Source: Tada Images / Shutterstock.com
As I said in the introduction, I’m looking for as much diversification as possible from my three ETF, global, 60/40 portfolio. The Vanguard Total World Stock Fund ETF (NYSEARCA:VT) accounts for 40% of the portfolio. An investment of $4,000 a decade ago would be worth $9,743 in June 2023.
Vanguard’s ETF tracks the performance of the FTSE Global All Cap Index, a collection (summary prospectus) of small, mid, and large capitalization stocks from 49 countries around the world, including the U.S. (59.1% of net assets), and emerging markets.
While it is considered an all-cap fund, large caps still account for nearly 70% of the ETF’s $27.1 billion in net assets with mid and small caps accounting for the rest. VT’s median market cap is $66.5 billion with 90% of the 9,543 stocks from developed countries and 10% from emerging markets.
Except for Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN), all of the holdings have a weighting of less than 1%, with the top 10 accounting for just 14%.
The top three sectors by weight are technology (21.3%), financials (14.02%), and consumer discretionary (13.87%).
Of utmost importance, VT’s expens ratio is a low 0.07%, or $7 for every $10,000 invested.
VanEck Morningstar SMID Moat ETF
Source: SHUN_J / Shutterstock
The second of two equity positions is the VanEck Morningstar SMID Moat ETF (NYSEARCA:SMOT). It accounts for 20% of the portfolio. It got its start in October 2022, so it doesn’t have a track record. However, the ETF is designed to invest in small and mid cap U.S stocks with long-term competitive advantages, often called wide-moat stocks.
“SMOT seeks to track the Morningstar US Small-Mid Cap Moat Focus Index, which targets a select group of at least 75 small and mid-cap companies with moats that are trading at attractive valuations, according to Morningstar’s equity research team,” stated the ETF’s Oct. 6, 2022 press release.
The Morningstar US Small-Mid Cap Moat Focus Index is the second collaboration between VanEck and Morningstar. The first was the VanEck Morningstar Wide Moat ETF (BATS:MOAT), which was launched in 2012.
It is far more expensive than VT with an expense ratio of 0.49%. The extra expense is for the additional research capabilities brought to the table by Morningstar.
The ETF’s $66.5 million in net assets are invested in 101 SMID stocks with a weighted average market cap of $15.6 billion and price-to-book and price-to-earnings of 14.3x and 2.5x, respectively. This helps makes it one of those best ETFs for a balanced portfolio.
The top three sectors by weighting are technology (19.64%), consumer discretionary (19.07%), and industrials (16.66%).
Fidelity Total Bond ETF
Source: focal point / Shutterstock
The Fidelity Total Bond ETF (NYSEARCA:FBND) accounts for the entire 40% of fixed income in the portfolio. An investment of $4,000 at its inception in 2014, would be worth $4,632 in June 2023.
In eight calendar years, FBND has delivered positive returns in four of those years. In three others, the annual loss was less than 1%. If not for the bond meltdown in 2022, it would have been an exceptionally good ETF to own to protect your portfolio on the downside.
The actively managed taxable bond fund seeks to generate significant income from its $4.0 billion in net assets. At least 80% of its portfolio is invested in investment grade debt securities. It can also invest up to 20% of its net assets in high yield debt securities. It uses the Bloomberg U.S. Universal Bond Index as a guide for investing the net assets.
The ETF’s dividend yield is a reasonable 3.71%. Its top 10 holdings account for 33.3% of its net assets. It has a total of 2,659 holdings with North America accounting for 98.62% of the portfolio and 1.38% in Latin American debt securities.
The average weighted coupon is 4.19% with a duration of 6.03 years. Over the past five years through March 31, FBND has outperformed both the Bloomberg US Aggregate Bond Index and the Bloomberg U.S. Universal Bond Index with an annualized return of 1.69%, 78 basis points higher than the former, and 64 higher than the latter.
On the date of publication, Will Ashworth 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.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post The 3 Best ETFs to Buy to Balance Risk and Reward 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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Except for Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN), all of the holdings have a weighting of less than 1%, with the top 10 accounting for just 14%. Vanguard’s ETF tracks the performance of the FTSE Global All Cap Index, a collection (summary prospectus) of small, mid, and large capitalization stocks from 49 countries around the world, including the U.S. (59.1% of net assets), and emerging markets. The ETF’s $66.5 million in net assets are invested in 101 SMID stocks with a weighted average market cap of $15.6 billion and price-to-book and price-to-earnings of 14.3x and 2.5x, respectively.
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Except for Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN), all of the holdings have a weighting of less than 1%, with the top 10 accounting for just 14%. The Vanguard Total World Stock Fund ETF (NYSEARCA:VT) accounts for 40% of the portfolio. The ETF’s $66.5 million in net assets are invested in 101 SMID stocks with a weighted average market cap of $15.6 billion and price-to-book and price-to-earnings of 14.3x and 2.5x, respectively.
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Except for Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN), all of the holdings have a weighting of less than 1%, with the top 10 accounting for just 14%. VanEck Morningstar SMID Moat ETF Source: SHUN_J / Shutterstock The second of two equity positions is the VanEck Morningstar SMID Moat ETF (NYSEARCA:SMOT). The ETF’s $66.5 million in net assets are invested in 101 SMID stocks with a weighted average market cap of $15.6 billion and price-to-book and price-to-earnings of 14.3x and 2.5x, respectively.
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Except for Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN), all of the holdings have a weighting of less than 1%, with the top 10 accounting for just 14%. Hulbert’s insight implies that a consistent 7.7% annual return over 230 years isn’t disappointing. The Vanguard Total World Stock Fund ETF (NYSEARCA:VT) accounts for 40% of the portfolio.
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15380.0
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2023-06-13 00:00:00 UTC
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Harnessing the Power of Long-Term Technical Analysis
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AAPL
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https://www.nasdaq.com/articles/harnessing-the-power-of-long-term-technical-analysis
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nan
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nan
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We live in an era of instant gratification. Want to get food delivered to your door without getting off the couch? Order DoorDash (DASH). Don’t know the answer to something? Simple. Use Alphabet’s (GOOGL) Google search, and you’ll have it within seconds. Often, amateur traders and investors think in the same manner. These new and starry-eyed investors seek to extract money from the market quickly. Unfortunately, trading platforms amplify these emotions by offering up-to-the-second quotes, countless indicators, and flashing lights that would make casino operators like Las Vegas Sands (LVS) blush.
For the reasons mentioned above, newbies often falsely conflate the study of technical analysis as a short-term practice rather than a long-term one. The truth, however, is that technical analysis can be used in any time frame. In fact, the longer the time frame, the more visibility one has. Think about it – it’s easier to predict where the market will be in five years or fifteen years than it is to predict where it will be in five seconds or five days. Why? Because longer-term charts smooth out the data and present investors with the big picture.
Image Source: Zacks Investment Research
Pictured: 30-year S&P 500 chart
While I know no one with a crystal ball, the chart above illustrates that U.S. equities move higher over time. The critical part is to determine the general zone in which a long-term bottom is likely to occur and pounce.
The Power of the 200-Week Moving Average
What if I told you that there was an indicator that nailed every bottom in the Nasdaq 100 ETF (QQQ) dating back to the financial crisis? Though it’s not sexy and may be often overlooked, the 200-week moving average is that indicator.
Image Source: Tradingview
Why does the 200-Week Moving Average Work?
One guess is that institutional investors with deep pockets use it as a reference point. However, the reasoning behind such a simple indicator’s robustness is not important. What is important is that it works. As you will see in the examples below it works on more than just the Q’s. Remember, to get paid on Wall Street, you need to know the “What, not the why.”
Single Stock Examples
Apple (AAPL) is one of the best examples. Thus far in the 2000’s, the 200-week moving average has contained AAPL’s move. AAPL visited the 200-week and found support in 2008 (Global Financial Crisis), 2013, 2016, and 2019 and went on to make new highs after each visit.
Image Source: Tradingview
Nvidia (NVDA) tagged the line in 2019 (~$33 a share), during the pandemic crash of 2020 (~$46 per share), and in October 2022 (~$125).
Image Source: Tradingview
Microsoft (MSFT) pulled back to the moving average in October 2022 for the first time in a decade and found support nearly to the penny.
Image Source: Tradingview
What to Look For
Of course, hindsight is 20/20 on Wall Street and there is no such thing as a panacea – this includes the 200-week moving average. However, below are 3 ways to increase your odds of success when using the indicator, including:
Stick to the leaders: There is a significant difference between buying a stock simply because it’s on sale and buying a leading stock at a discount. Buy institutional quality, fundamentally strong stocks that are pulling back because of the macro environment – not the underlying stock’s fundamentals. For example, even as Nvidia corrected 2022, it grew its earnings.
Image Source: Zacks Investment Research
Patience and conviction are required: If it were easy to buy markets when they were falling, everyone would be rich. Long-term trades require patience, confidence, and vision.
Scale into positions: Successful investing is about putting the odds in your favor. However, even if the odds are stacked in your favor, it only ensures some trades will work out. For longer-term trades, you must have an exit plan if you’re wrong. Conversely, a prudent method to enter a long-term trade is to enter in pieces – buy a small piece, and as the trade starts to work in your favor, buy more. Let the market pull you in.
Conclusion
Bear markets are brutal for investors. However, savvy investors can turn crisis into opportunity and use this long-term signal to gain an edge in the market and build conviction.
5 Stocks Set to Double
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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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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Remember, to get paid on Wall Street, you need to know the “What, not the why.” Single Stock Examples Apple (AAPL) is one of the best examples. Thus far in the 2000’s, the 200-week moving average has contained AAPL’s move. AAPL visited the 200-week and found support in 2008 (Global Financial Crisis), 2013, 2016, and 2019 and went on to make new highs after each visit.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. Remember, to get paid on Wall Street, you need to know the “What, not the why.” Single Stock Examples Apple (AAPL) is one of the best examples. Thus far in the 2000’s, the 200-week moving average has contained AAPL’s move.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. Remember, to get paid on Wall Street, you need to know the “What, not the why.” Single Stock Examples Apple (AAPL) is one of the best examples. Thus far in the 2000’s, the 200-week moving average has contained AAPL’s move.
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Remember, to get paid on Wall Street, you need to know the “What, not the why.” Single Stock Examples Apple (AAPL) is one of the best examples. Thus far in the 2000’s, the 200-week moving average has contained AAPL’s move. AAPL visited the 200-week and found support in 2008 (Global Financial Crisis), 2013, 2016, and 2019 and went on to make new highs after each visit.
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15381.0
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2023-06-12 00:00:00 UTC
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ANALYSIS-India's outsourcing giants cut hiring; disheartening for economy, students
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AAPL
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https://www.nasdaq.com/articles/analysis-indias-outsourcing-giants-cut-hiring-disheartening-for-economy-students
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nan
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By Navamya Ganesh Acharya
BENGALURU, June 12 (Reuters) - India's outsourcing giants are slashing hiring and getting projects done with existing workers, a rare pullback that could weigh on the economy and affect engineering students who have seen information technology as the sector of choice for decades.
The slowdown, triggered by global uncertainty in demand, is unprecedented in an industry that is one of the biggest hirers in India's services sector since the 1990s and provides an assured career path and prosperity to hundreds of thousands of students each year.
"Weak IT hiring could be for two different reasons: short-term negative demand shock or a long-term displacement resulting from labour-saving technologies," said Rohit Azad, an economics professor at New Delhi's Jawaharlal Nehru University.
"The impact of weak hiring would depend on which is the primary cause driving it. A negative multiplier effect in the immediate would be there nevertheless," Azad added.
The IT sector accounts for about 8% of India's GDP versus less than 1% about 30 years back, according to Rishad Premji, the chairman of Wipro WIPR.NS, one of the country's IT giants.
Overall, the Indian tech sector employs over 5.4 million people, according to trade group Nasscom, although the number is dominated by the IT sector. About 290,000 new jobs in the tech sector were created in the financial year that ended in March, but Nasscom warned of "global headwinds" in the current year.
With IT employees seen as big spenders on everything from cars, durables and second homes to travel and entertainment, they are likely to have had some effect on the sluggish 0.5% sequential growth in private consumption in January-March.
"Some slowdown in IT hiring intentions could contribute to the flat-lining in consumption that is already underway," said HDFC Bank Principal Economist Sakshi Gupta.
RECESSION FEARS
IT firms, which count global heavyweights such as Apple AAPL.O, Citigroup C.N and American Express AXP.N among its clients, went on a hiring binge during the pandemic that fuelled a digital services boom.
However, things changed this year as recession fears gripped the world and the collapse of three U.S. regional banks and the forced sale of Europe's Credit Suisse CSGN.S to UBS UBSG.S left the global financial industry shaken, making IT clients across sectors cut spending.
"The post-pandemic phase saw companies ramping up production to meet new demands in the market, leading to a growth in hiring across IT companies. This boom, however, soon fizzled out in the face of the global economic crisis and a looming recession," said Sachin Alug, the CEO of staffing firm NLB Services.
NLB sees a 20-25% drop in IT employee additions in the first half of the current financial year, while TeamLease Digital expects a 40% decrease for the entire year.
Jobs portal Naukri.com's parent Info Edge INED.NS flagged in May that its recruitment business was seeing "cautious" spending by IT customers.
IT bellwether Tata Consultancy Services TCS.NS said this month it had "recalibrated" its hiring after a drop in attrition. It added 22,600 people in the last financial year, taking its overall headcount to 614,795.
"We have a lot of bench with us. They are ready to move into production projects," Infosys CFO Nilanjan Roy said at the time.
Nasscom declined comment on the hiring slowdown.
The dismal outlook is worrying many students as the IT sector typically absorbs 20-25% of the 1.5 million engineers who graduate every year in India and was a rare bright spot during the pandemic, when most other industries put hiring on ice.
"Normally, on-campus hiring is easier than off-campus. This year, that kind of flipped," said Gautam, an engineering student in Punjab state, who declined to be identified further. "Some people had their internship revoked or full-time (job offers) revoked too due to cost-cutting."
He said some of his classmates have decided to study further as they have lost hope of finding a job.
IT firms such as LTIMindtree LTIM.NS and Wipro have been accused by an employee's union of trying to cut costs by deferring joining dates and slashing starting salaries.
That has "surely left applicants concerned about future prospects", said staffing firm Xpheno's co-founder Kamal Karanth, who highlighted how current hiring activity was "under a third of what was recorded in the buoyant peak".
Wipro did not directly address the accusations but said the environment was different from a year ago.
"The race to hire ahead of demand has been replaced by a more measured approach in light of the declining attrition rates and the ongoing economic uncertainty," it said.
NO PLAN B
"Even if a few startups do absorb freshers, they would skim the cream off the top, and not match the high volume intakes that the IT services and product enterprises do," Karanth said.
Some industry veterans said Indian students may be better off looking at other industries.
"We have significantly different opportunities that are better sustainable as career paths" than two decades back, venture capital firm Siana Capital's founder Siddharth Pai said.
Pai highlighted sectors such as financial services, consumer goods, specialised manufacturing, medicine, law, chartered accounting and other services as more viable options.
Indian tech giants cut back on graduate hiring https://tmsnrt.rs/3Bp9vRF
(Additional reporting by Sethuraman N R; Editing by Dhanya Skariachan and Raju Gopalakrishnan)
((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))
The views and 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 firms, which count global heavyweights such as Apple AAPL.O, Citigroup C.N and American Express AXP.N among its clients, went on a hiring binge during the pandemic that fuelled a digital services boom. By Navamya Ganesh Acharya BENGALURU, June 12 (Reuters) - India's outsourcing giants are slashing hiring and getting projects done with existing workers, a rare pullback that could weigh on the economy and affect engineering students who have seen information technology as the sector of choice for decades. The slowdown, triggered by global uncertainty in demand, is unprecedented in an industry that is one of the biggest hirers in India's services sector since the 1990s and provides an assured career path and prosperity to hundreds of thousands of students each year.
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IT firms, which count global heavyweights such as Apple AAPL.O, Citigroup C.N and American Express AXP.N among its clients, went on a hiring binge during the pandemic that fuelled a digital services boom. However, things changed this year as recession fears gripped the world and the collapse of three U.S. regional banks and the forced sale of Europe's Credit Suisse CSGN.S to UBS UBSG.S left the global financial industry shaken, making IT clients across sectors cut spending. "We have significantly different opportunities that are better sustainable as career paths" than two decades back, venture capital firm Siana Capital's founder Siddharth Pai said.
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IT firms, which count global heavyweights such as Apple AAPL.O, Citigroup C.N and American Express AXP.N among its clients, went on a hiring binge during the pandemic that fuelled a digital services boom. The slowdown, triggered by global uncertainty in demand, is unprecedented in an industry that is one of the biggest hirers in India's services sector since the 1990s and provides an assured career path and prosperity to hundreds of thousands of students each year. About 290,000 new jobs in the tech sector were created in the financial year that ended in March, but Nasscom warned of "global headwinds" in the current year.
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IT firms, which count global heavyweights such as Apple AAPL.O, Citigroup C.N and American Express AXP.N among its clients, went on a hiring binge during the pandemic that fuelled a digital services boom. About 290,000 new jobs in the tech sector were created in the financial year that ended in March, but Nasscom warned of "global headwinds" in the current year. Nasscom declined comment on the hiring slowdown.
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15382.0
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2023-06-12 00:00:00 UTC
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Tesla's Surge Boosts EV ETFs
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AAPL
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https://www.nasdaq.com/articles/teslas-surge-boosts-ev-etfs
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nan
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nan
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Tesla TSLA shares are on a tear, rising for the 12th consecutive day and now up more than 100% this year. The stock is still down about 35% from its all-time high reached in November 2021.
Last week, the EV maker signed a deal with General Motors GM that will give GM customers access to 12,000 of Tesla's Superchargers, starting in 2024. This follows a similar deal with Ford Motor F last month and will lead to Tesla's North American Charging Standard becoming the industry standard.
Tesla, which has made a huge investment in its charging network, could generate $3 billion annually from other automakers' EVs by 2030, according to Piper Sandler. It will also receive a share of federal dollars earmarked for the build-out of a national network of EV chargers.
Last week, Tesla's Model 3 sedans became eligible for the full US tax credit under the revised criteria set by the Treasury. Earlier, investors cheered the appointment of a new CEO for Twitter (TWTR), which is expected to free up Elon Musk to focus more on Tesla.
According to the International Energy Agency, global EV sales are expected to grow by another 35% this year, reaching 14 million, up from more than 10 million in 2022.
To learn about the Global X Autonomous & Electric Vehicles ETF DRIV, the iShares Self-Driving EV and Tech ETF IDRV and the KraneShares Electric Vehicles and Future Mobility Index ETF KARS, please watch the short video above.
In addition to popular EV stocks, NVIDIA NVDA, Apple AAPL and Microsoft MSFT are among the top holdings in these ETFs.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Ford Motor Company (F) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports
General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports
iShares Self-Driving EV and Tech ETF (IDRV): 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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In addition to popular EV stocks, NVIDIA NVDA, Apple AAPL and Microsoft MSFT are among the top holdings in these ETFs. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports iShares Self-Driving EV and Tech ETF (IDRV): ETF Research Reports To read this article on Zacks.com click here. Tesla, which has made a huge investment in its charging network, could generate $3 billion annually from other automakers' EVs by 2030, according to Piper Sandler.
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In addition to popular EV stocks, NVIDIA NVDA, Apple AAPL and Microsoft MSFT are among the top holdings in these ETFs. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports iShares Self-Driving EV and Tech ETF (IDRV): ETF Research Reports To read this article on Zacks.com click here. To learn about the Global X Autonomous & Electric Vehicles ETF DRIV, the iShares Self-Driving EV and Tech ETF IDRV and the KraneShares Electric Vehicles and Future Mobility Index ETF KARS, please watch the short video above.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports iShares Self-Driving EV and Tech ETF (IDRV): ETF Research Reports To read this article on Zacks.com click here. In addition to popular EV stocks, NVIDIA NVDA, Apple AAPL and Microsoft MSFT are among the top holdings in these ETFs. Last week, the EV maker signed a deal with General Motors GM that will give GM customers access to 12,000 of Tesla's Superchargers, starting in 2024.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports iShares Self-Driving EV and Tech ETF (IDRV): ETF Research Reports To read this article on Zacks.com click here. In addition to popular EV stocks, NVIDIA NVDA, Apple AAPL and Microsoft MSFT are among the top holdings in these ETFs. Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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15383.0
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2023-06-12 00:00:00 UTC
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Best Stock to Buy: Apple vs. Microsoft
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AAPL
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https://www.nasdaq.com/articles/best-stock-to-buy%3A-apple-vs.-microsoft
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nan
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nan
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Fool.com contributor and finance professor Parkev Tatevosian compares Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to determine which technology stock is the better buy for long-term investors.
*Stock prices used were the afternoon prices of June 9, 2023. The video was published on June 11, 2023.
10 stocks we like better than Microsoft
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*Stock Advisor returns as of June 12, 2023
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link 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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Fool.com contributor and finance professor Parkev Tatevosian compares Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to determine which technology stock is the better buy for long-term investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Fool.com contributor and finance professor Parkev Tatevosian compares Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to determine which technology stock is the better buy for long-term investors. 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 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor and finance professor Parkev Tatevosian compares Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to determine which technology stock is the better buy for long-term investors. 10 stocks we like better than Microsoft When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor and finance professor Parkev Tatevosian compares Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) to determine which technology stock is the better buy for long-term investors. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Microsoft.
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15384.0
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2023-06-12 00:00:00 UTC
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S&P 500 and Nasdaq close at highest since April 2022
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AAPL
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https://www.nasdaq.com/articles/sp-500-and-nasdaq-close-at-highest-since-april-2022
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nan
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nan
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By Noel Randewich and Shristi Achar A
June 12 (Reuters) - The S&P 500 and the Nasdaq rallied on Monday to their highest closing levels since April 2022, while Oracle hit a record high ahead of quarterly results as investors awaited inflation data and the Federal Reserve's interest rate decision this week.
Lifted by gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O, the S&P 500 has now recovered 21% from its October 2022 lows. Some investors say Wall Street is the midst of a bull market.
"The further out the October lows get in the rear view mirror, the more confident investors become. Have investors become more complacent? They probably have, and that's actually a good sign," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.,
Tesla rose 2.2% and has now climbed for 12 straight trading sessions, a record for the electric car maker.
Apple and Microsoft each rose about 1.5%, with year-to-date gains in the two technology companies' shares reaching 41% and 38%, respectively.
The S&P 500 climbed 0.93% to end the session at 4,338.93 points.
The Nasdaq gained 1.53% to 13,461.92 points, while Dow Jones Industrial Average rose 0.56% to 34,066.33 points.
Of the 11 S&P 500 sector indexes, eight rose, led by information technology .SPLRCT, up 2.07%, followed by a 1.74% gain in consumer discretionary .SPLRCD.
The U.S. Labor Department's consumer price index reading on Tuesday is expected to show inflation cooled slightly in May, with core prices likely remaining sticky. Tuesday is also first day of the Fed's two-day meeting.
Traders see a 76% chance of the central bank holding rates at the 5%-5.25% range on Wednesday, while pricing in a 71% chance of a rate hike in July, according to the CME Fedwatch tool.
"There's a chance that the Fed will stay data dependent. So we don't necessarily think that a rate hike is off the table in the future, but for the near term we just see them staying steady," said Dylan Kremer, co-chief investment officer of Certuity.
Gains in megacap stocks, better-than-expected quarterly earnings and hopes that the Fed might be nearing the end of its monetary tightening cycle have lifted indexes in recent weeks.
The rally has recently widened to include more economically sensitive sectors such as energy and industrials, as well as small-cap stocks, as data continues to show a resilient U.S. economy despite higher interest rates.
Goldman Sachs on Friday raised its year-end price target for the benchmark S&P 500 .SPX to 4,500 from 4,000, citing the broadening of the market rally.
The CBOE volatility index .VIX edged up to about 14.8, its highest since last Tuesday.
After the bell, OracleORCL.N climbed 3.5% following its quarterly report. In Monday's trading session it rose as much as 7% to an all-time high after J.P. Morgan hiked its price target.
Nasdaq Inc NDAQ.O slumped almost 12% after the exchange operator said it would buy software firm Adenza for $10.5 billion, which analysts called an expensive bet.
BiogenBIIB.Orose 1.5% after a U.S. FDA panel of advisers unanimously backed its Alzheimer's drug, Leqembi, raising expectations that a traditional approval for the treatment might not come with major new safety warnings.
Broadcom Inc AVGO.O jumped 6.3% after Reuters reported the chipmaker was set to gain conditional EU antitrust approval for its $61 billion proposed acquisition of cloud computing firm VMware VMW.N. That helped lift the Philadelphia semiconductor index .SOX 3.3%, bringing its recovery in 2023 to over 44%.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a two-to-one ratio.
The S&P 500 posted 24 new highs and three new lows; the Nasdaq recorded 107 new highs and 68 new lows.
Volume on U.S. exchanges was relatively light, with 10.2 billion shares traded, compared to an average of 10.6 billion shares over the previous 20 sessions.
Trading in the S&P 500 https://tmsnrt.rs/3WZPOtB
(Reporting by Shristi Achar A and Sruthi Shankar in Bengaluru and by Noel Randewich in Oakland, Calif. Editing by Vinay Dwivedi, Sriraj Kalluvila and 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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Lifted by gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O, the S&P 500 has now recovered 21% from its October 2022 lows. By Noel Randewich and Shristi Achar A June 12 (Reuters) - The S&P 500 and the Nasdaq rallied on Monday to their highest closing levels since April 2022, while Oracle hit a record high ahead of quarterly results as investors awaited inflation data and the Federal Reserve's interest rate decision this week. They probably have, and that's actually a good sign," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma., Tesla rose 2.2% and has now climbed for 12 straight trading sessions, a record for the electric car maker.
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Lifted by gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O, the S&P 500 has now recovered 21% from its October 2022 lows. The Nasdaq gained 1.53% to 13,461.92 points, while Dow Jones Industrial Average rose 0.56% to 34,066.33 points. The U.S. Labor Department's consumer price index reading on Tuesday is expected to show inflation cooled slightly in May, with core prices likely remaining sticky.
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Lifted by gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O, the S&P 500 has now recovered 21% from its October 2022 lows. By Noel Randewich and Shristi Achar A June 12 (Reuters) - The S&P 500 and the Nasdaq rallied on Monday to their highest closing levels since April 2022, while Oracle hit a record high ahead of quarterly results as investors awaited inflation data and the Federal Reserve's interest rate decision this week. The U.S. Labor Department's consumer price index reading on Tuesday is expected to show inflation cooled slightly in May, with core prices likely remaining sticky.
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Lifted by gains in market heavyweights Amazon AMZN.O, Apple AAPL.O and Tesla TSLA.O, the S&P 500 has now recovered 21% from its October 2022 lows. "The further out the October lows get in the rear view mirror, the more confident investors become. The S&P 500 climbed 0.93% to end the session at 4,338.93 points.
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15385.0
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2023-06-12 00:00:00 UTC
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Data-Driven Apps: The Best AI Stocks to Buy?
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AAPL
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https://www.nasdaq.com/articles/data-driven-apps%3A-the-best-ai-stocks-to-buy
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The “Age of Artificial Intelligence” has arrived. So has the time to invest in the next-generation of superstar stock winners.
Every ten years or so, a new technology emerges that transforms the world in profound ways.
The internet did it in the 1990s, connecting people and information across the globe. The smartphone did it in the 2000s, putting a powerful computer in everyone’s pocket. The cloud did it in the 2010s, enabling massive scalability and innovation.
Now, in the 2020s, AI is doing it, creating new possibilities and challenges for every sector and domain.
Following that logic, this is the moment to invest in the best AI stocks in the market.
Because, in the 1990s when the internet was changing the world, the market’s top internet stocks were fortune-makers. Stocks like Qualcomm (QCOM), Cisco (CSCO), and Oracle (ORCL) soared thousands of percent.
In the 2000s, when the smartphone was changing the world, the market’s top smartphone stocks were fortune-makers. Stocks like Apple (AAPL) soared thousands of percent.
In the 2010s, when the cloud was changing the world, the market’s top cloud stocks were fortune-makers. Stocks like Shopify (SHOP), The Trade Desk (TTD), and ServiceNow (NOW) soared thousands of percent.
Lather, rinse, and repeat with AI in the 2020s.
AI is transforming the world at an unprecedented pace. It is creating new opportunities and challenges for every industry, sector, and individual. The companies that are leading the AI revolution will reap enormous rewards and create lasting value for their shareholders. And those are the AI stocks that you need to know about and invest in today.
These AI stocks will soar thousands of percent.
But you have to buy the right stocks to really strike it rich. And the best way to do that is to identify the most explosive segments of the AI economy.
One segment I’m particularly excited about is the AI-powered App Economy, or the emergence of a whole new generation of software applications with AI capabilities.
I think it’ll birth multiple stock market mega-winners over the next few years. Here’s why.
The AI App Economy Will be Huge
Without fail, what are some things you do every day?
Breathe. Eat. Sleep. And check mobile apps.
A Pew Research poll found that over 80% of Americans own a smartphone these days. Separate eMarketer research found that Americans with smartphones spend about three-and-a-half hours every day checking mobile apps.
We are an app-addicted society.
And it’s not just individuals – businesses are app addicted, too.
According to Okta, the average large firm deploys 129 software apps across their enterprise.
Consumers. Businesses. We’re all app-addicted.
This addiction will only grow exponentially in the coming years thanks to AI.
AI is such a profound technological advancement that it will soon comprise the ultimate competitive advantage for every business in the world. Companies that use AI successfully across their enterprise will dominate. Companies that don’t will fail.
It will be that black-and-white.
Therefore, over the next several years, every company in the world is going to race to build out AI software apps across their enterprise. I wouldn’t be surprised to see the average firm have up to 500 AI software apps across their enterprise, doing everything from creating and filing documents, storing and analyzing data, automating workflows, performing research, crafting presentations, creating mock products, running automated marketing campaigns, and more.
We are entering the AI App Economy.
The Best Investment Idea in the AI App Economy
Creating and deploying AI apps in the new economy won’t just be value-additive for firms – it will be necessary for survival.
Yet, making apps is a complex science that requires a ton of coding, and coding is a rare skill. Throw AI into the mix, and creating and deploying AI apps is a huge challenge for pretty much every non-”FANG” business.
To that end, in this booming AI App Economy, there exists a huge gap between where the market is going, and the tools needed to advance the market to that point.
Filling that gap is an emerging category called Low-Code Application Platforms, or LCAPs. They are basically just platforms that make designing and launching an app as easy as drawing a workflow diagram. They turn creating and deploying apps into a Lego game, if you will, by allowing customers to stack pre-built app templates on top of each other to create enterprise-specific, fully-customized apps.
Demand for LCAPs is expected to boom over the next few years. Pretty much every major market research firm out there forecasts that the low-code software market will grow by somewhere between 20% and 30% per year over the next several years.
And those estimates were mostly delivered before this AI Boom.
Add AI apps into the mix, and we think the low-code software market will grow in excess of 30% per year over the next few years.
This promises to be one of the most explosive AI markets out there.
The Final Word on the Best AI Stocks to Buy
Obviously, the “top dogs” in the AI App Economy will be huge winners over the next few years – and you should probably consider buying their stocks today.
Because it could be like buying Cisco and Oracle back in the early 1990s, before they soared thousands of percent.
That’s why I highly urge you to watch this presentation right now, where I break down this whole AI Revolution.
Don’t miss this opportunity to learn everything you need to know about AI, see it in action with a live demonstration, and discover the best AI software stocks to invest in right now.
This presentation will show you how to profit from the AI Boom and avoid missing out on the biggest technological trend of our time.
Click here and watch it now before it’s too late.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Data-Driven Apps: The Best AI Stocks to Buy? 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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Stocks like Apple (AAPL) soared thousands of percent. One segment I’m particularly excited about is the AI-powered App Economy, or the emergence of a whole new generation of software applications with AI capabilities. Separate eMarketer research found that Americans with smartphones spend about three-and-a-half hours every day checking mobile apps.
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Stocks like Apple (AAPL) soared thousands of percent. Because, in the 1990s when the internet was changing the world, the market’s top internet stocks were fortune-makers. The Best Investment Idea in the AI App Economy Creating and deploying AI apps in the new economy won’t just be value-additive for firms – it will be necessary for survival.
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Stocks like Apple (AAPL) soared thousands of percent. The Best Investment Idea in the AI App Economy Creating and deploying AI apps in the new economy won’t just be value-additive for firms – it will be necessary for survival. Throw AI into the mix, and creating and deploying AI apps is a huge challenge for pretty much every non-”FANG” business.
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Stocks like Apple (AAPL) soared thousands of percent. Therefore, over the next several years, every company in the world is going to race to build out AI software apps across their enterprise. Pretty much every major market research firm out there forecasts that the low-code software market will grow by somewhere between 20% and 30% per year over the next several years.
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15386.0
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2023-06-12 00:00:00 UTC
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This Simple but Effective Fund is 2023’s Most Popular ETF
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AAPL
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https://www.nasdaq.com/articles/this-simple-but-effective-fund-is-2023s-most-popular-etf
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nan
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nan
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One ETF has taken in more money than all others so far in 2023, with a massive $11.3 billion in inflows as of June 6th, according to FactSet. But it’s not a hot new AI fund or an ETF capitalizing on other en-vogue tech trends, although it will give you some exposure to them. Instead, it’s arguably one of the most boring, vanilla ETFs out there, but this doesn’t mean it can’t help you to grow your portfolio. It’s the Vanguard S&P 500 ETF (NYSEARCA:VOO). In fact, whether you are just beginning your investing journey or if you are already a veteran trader who has spent years in the investing game, this unassuming but massive ETF can serve as a sound building block for your portfolio. Here’s why.
Harness the Power of the Entire S&P 500 in Your Portfolio
The Vanguard S&P 500 ETF boasts over $300 billion in assets under management (AUM), making it the third-largest ETF in the market today. While there are many complex investing strategies and products out there that claim to offer investors a leg up on the market, VOO keeps it simple. It invests in the S&P 500 (SPX), the index that consists of about 500 of the largest 500 U.S. stocks and arguably the most important and influential index in the investing world.
The S&P 500 covers all sectors of the U.S. economy, so rather than having to bet on individual sectors, an ETF like VOO gives you exposure to them all -- from tech leaders like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) to old economy industrial giants like Caterpillar (NYSE:CAT) and Deere (NYSE:DE) and everything in between.
The great thing about VOO is that it allows investors to harness the power and innovation of a large swath of the U.S. economy in one investment vehicle without having to pick favorite sectors or stocks. An investment in VOO is essentially a bet on around 500 of the top publicly-listed companies in the United States continuing to innovate and profit over time, which has historically been a winning proposition.
Below, you’ll find an overview of VOO’s top 10 holdings, created using TipRanks' holdings tool.
Because it tracks the S&P 500 index itself, the fund is extraordinarily diversified, holding 504 stocks, and its top 10 positions make up just 27.8% of assets. As you can see, top holding Apple accounts for a 7.2% position in the fund, followed by Microsoft, which has a 6.6% weighting, with Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (Class A) (NASDAQ:GOOGL) rounding out the top five holdings. However, it’s not just tech stocks, Warren Buffett’s Berkshire Hathaway (NYSE:BRK.B) and energy giant ExxonMobil (NYSE:XOM) follow closely behind.
As you can see in the table, VOO's top holdings feature a pretty solid collection of Smart Scores. In fact, four of its top 10 holdings, Apple, Nvidia, Alphabet, and UnitedHealth Group (NYSE:UNH), feature 'Perfect 10' Smart Scores. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating, and VOO itself has a strong ETF Smart Score of 8 out of 10.
Is VOO Stock a Buy, According to Analysts?
So the quantitative factors rate VOO favorably, but what do Wall Street analysts think? VOO earns a Moderate Buy consensus rating on TipRanks based on analysts' ratings, and the average VOO stock price target of $445.50 implies upside potential of 11.9%. Of the 6,212 analyst ratings on the name, 59.13% are Buys, 35.33% are Holds, and just 5.54% are Sells.
Investor-Friendly Fees
In addition to this ample diversification and broad exposure, another attractive feature of VOO is its low expense ratio. It’s hard to beat VOO’s minuscule expense ratio of just 0.03%. An investor putting $10,000 into VOO would pay just $3 in fees in year one. This type of investor-friendly expense structure helps investors defend the principal of their portfolios over time without coughing up too much in fees. For example, assuming this fee remains constant and that the fund returns 5% a year for the next 10 years, an investor will pay just $39 in fees over the course of the decade. Compare this to the multitude of ETFs on the market with expense ratios of 0.75%, where investors are paying $75 in fees on a $10,000 investment in just year one, and you really see the value proposition of an ETF like VOO.
Solid Long-Term Performance
With this diversification and investor-friendly expense ratio, it’s easy to see why this massive ETF is the most popular ETF in terms of inflows so far this year. Still, there’s also another factor leading to its popularity -- its long-term performance track record. VOO has consistently produced double-digit annualized total returns for its investors for a long time. No matter what time horizon you are looking over, VOO has delivered. As of the end of May, VOO had an annualized total return of 12.8% over a three-year time frame. Over a five-year time horizon, the massive ETF has delivered 11% total returns annually. Further, over the past 10 years, VOO returned 11.9% annually. VOO has been around since 2010, and since its inception that year, it has returned a stellar 13.3% on an annualized basis.
Keeping Things Simple Can Pay Off
It doesn’t hurt to keep it simple. While there are plenty of exotic investment strategies out there, few beat an ETF like VOO over the long term. While this S&P 500 ETF isn't the type of investment that is going to give you a multi-bag return in a year, the reality is that few investments are. However, the good news is that investing in a broad-market ETF like this and allowing these gains to compound over the years is a time-tested way to build long-term wealth. Investors can dollar-cost average over time when they have a surplus of cash and/or when the S&P 500 falls while reinvesting dividends to amplify these results even more.
VOO’s strong performance track record, investor-friendly expense ratio, and portfolio of around 500 of the top U.S. stocks have made it a winner for a long time, and it's likely to remain a winner for the foreseeable future.
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 S&P 500 covers all sectors of the U.S. economy, so rather than having to bet on individual sectors, an ETF like VOO gives you exposure to them all -- from tech leaders like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) to old economy industrial giants like Caterpillar (NYSE:CAT) and Deere (NYSE:DE) and everything in between. The great thing about VOO is that it allows investors to harness the power and innovation of a large swath of the U.S. economy in one investment vehicle without having to pick favorite sectors or stocks. An investment in VOO is essentially a bet on around 500 of the top publicly-listed companies in the United States continuing to innovate and profit over time, which has historically been a winning proposition.
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The S&P 500 covers all sectors of the U.S. economy, so rather than having to bet on individual sectors, an ETF like VOO gives you exposure to them all -- from tech leaders like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) to old economy industrial giants like Caterpillar (NYSE:CAT) and Deere (NYSE:DE) and everything in between. In fact, four of its top 10 holdings, Apple, Nvidia, Alphabet, and UnitedHealth Group (NYSE:UNH), feature 'Perfect 10' Smart Scores. Over a five-year time horizon, the massive ETF has delivered 11% total returns annually.
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The S&P 500 covers all sectors of the U.S. economy, so rather than having to bet on individual sectors, an ETF like VOO gives you exposure to them all -- from tech leaders like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) to old economy industrial giants like Caterpillar (NYSE:CAT) and Deere (NYSE:DE) and everything in between. VOO earns a Moderate Buy consensus rating on TipRanks based on analysts' ratings, and the average VOO stock price target of $445.50 implies upside potential of 11.9%. Compare this to the multitude of ETFs on the market with expense ratios of 0.75%, where investors are paying $75 in fees on a $10,000 investment in just year one, and you really see the value proposition of an ETF like VOO.
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The S&P 500 covers all sectors of the U.S. economy, so rather than having to bet on individual sectors, an ETF like VOO gives you exposure to them all -- from tech leaders like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) to old economy industrial giants like Caterpillar (NYSE:CAT) and Deere (NYSE:DE) and everything in between. Compare this to the multitude of ETFs on the market with expense ratios of 0.75%, where investors are paying $75 in fees on a $10,000 investment in just year one, and you really see the value proposition of an ETF like VOO. Solid Long-Term Performance With this diversification and investor-friendly expense ratio, it’s easy to see why this massive ETF is the most popular ETF in terms of inflows so far this year.
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15387.0
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2023-06-12 00:00:00 UTC
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Netflix's (NFLX) Password Sharing Model Boosts Subscriber Base
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AAPL
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https://www.nasdaq.com/articles/netflixs-nflx-password-sharing-model-boosts-subscriber-base
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nan
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nan
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Netflix NFLX announced its paid password-sharing model in the United States on May 23, notifying members that their accounts cannot be shared for free to users outside their households.
Per an article by Quartz, Netflix experienced an increase in subscribers during the four days following the announcement. The paid sharing model is an integral step to tackle widespread account sharing, which erodes the company’s ability to invest and improve content for paying members.
Netflix gained around 100K daily sign-ups on May 26 and May 27, higher than any other four-day period in the United States since 2019. Its average daily sign-ups reached 73K during that period, up 102% increase from the prior 60-day average.
Netflix already launched paid sharing model in Canada, New Zealand, Spain and Portugal in first-quarter 2023. Moreover, NFLX has plans to launch the paid sharing model in major markets like Brazil, Britain, France and Mexico.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Strong Portfolio to Aid Top Line
Netflix’s shares have surged 42.5% year to date compared with the Zacks Consumer & Discretionary sector’s increase of 9.4% over the same time frame.
Netflix has been benefiting from a diverse content portfolio, cheaper ad-supported plans and a paid sharing initiative. Hits like The Night Agent, The Glory, Full Swing and That 90s Show helped the company win subscribers in the first quarter of 2023.
Its global paid subscriber base in the first quarter increased 4.9% year over year to 232.5 million.
Netflix’s multilinguistic content and its customer-centric focus has been a major growth driver in recent times as it continues to face stiff competition from the likes of Apple AAPL, Warner Bros. Discovery WBD and Disney DIS in the saturated streaming market.
NFLX shares have outperformed Apple and Disney but underperformed Warner Bros. Shares of Apple, Disney and Warner Bros. have increased 39.3%, 5.8% and 46% year to date, respectively.
It has been focusing on its monetization initiative, which includes the new ad-supported plan that experienced higher user engagement. It is also upgrading its ads experience with more streams and improved video quality to attract a broader range of consumers.
Disney followed in the footsteps of Netflix to offer its ad-supported tier starting Dec 8, 2022. Its streaming service, Disney+, as of Apr 1, 2023, had 157.8 million paid subscribers compared with 161.8 million as of Dec 31, 2022.
Netflix’s Bright Prospects
Netflix’s strong content portfolio and the positive impact of password sharing are expected to help it win subscribers in the near term. It expects second-quarter 2023 revenues to increase 3.4% year over year to around $8.242 billion.
This Zacks Rank #3 (Hold) company expects second-quarter 2023 earnings of around $2.84 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $8.24 billion, indicating a 3.42% growth from the year-ago quarter’s reported figure.
The consensus mark for second-quarter 2023 earnings is pegged at $2.80 per share, up by a couple of cents in the past 30 days.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Warner Bros. Discovery, Inc. (WBD) : 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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Netflix’s multilinguistic content and its customer-centric focus has been a major growth driver in recent times as it continues to face stiff competition from the likes of Apple AAPL, Warner Bros. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Netflix NFLX announced its paid password-sharing model in the United States on May 23, notifying members that their accounts cannot be shared for free to users outside their households.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Netflix’s multilinguistic content and its customer-centric focus has been a major growth driver in recent times as it continues to face stiff competition from the likes of Apple AAPL, Warner Bros. Netflix NFLX announced its paid password-sharing model in the United States on May 23, notifying members that their accounts cannot be shared for free to users outside their households.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Netflix’s multilinguistic content and its customer-centric focus has been a major growth driver in recent times as it continues to face stiff competition from the likes of Apple AAPL, Warner Bros. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Strong Portfolio to Aid Top Line Netflix’s shares have surged 42.5% year to date compared with the Zacks Consumer & Discretionary sector’s increase of 9.4% over the same time frame.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Netflix’s multilinguistic content and its customer-centric focus has been a major growth driver in recent times as it continues to face stiff competition from the likes of Apple AAPL, Warner Bros. NFLX shares have outperformed Apple and Disney but underperformed Warner Bros. Shares of Apple, Disney and Warner Bros. have increased 39.3%, 5.8% and 46% year to date, respectively.
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2023-06-12 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-1
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our 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
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Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. 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).
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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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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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15389.0
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2023-06-12 00:00:00 UTC
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Ranking the FAANG Stocks From Cheapest to Priciest Using the Most-Relevant Valuation Metric
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AAPL
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https://www.nasdaq.com/articles/ranking-the-faang-stocks-from-cheapest-to-priciest-using-the-most-relevant-valuation
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nan
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nan
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When it comes to Wall Street's perennial outperformers, the FAANG stocks are truly in a class of their own.
When I say "FAANG," I'm referring to the acronym for:
Facebook, which is a subsidiary of Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
The reason the FAANGs are so popular is their long-term outperformance. Whereas the benchmark S&P 500 has delivered a very respectable 161% return over the trailing-10-year period, as of June 8, 2023, Netflix, Apple, Meta, Amazon, and Google (Class A shares, GOOGL), have, in this same order, returned around 1,200%, 1,040%, 1,040%, 800%, and 460%. In short, they've run circles around Wall Street.
Image source: Getty Images.
They're also a big reason the S&P 500 is now in a bull market. But even though this group, collectively, is printing money for long-term investors, the FAANG stocks aren't created equally. When analyzed using the price-to-cash-flow ratio, there's a big difference.
Ranking the FAANGs from cheapest to most expensive
Although the price-to-earnings (P/E) ratio is the most-commonly used valuation measure on Wall Street, the FAANG stocks have a tendency to reinvest most or all of their operating cash flow. This makes cash flow the best measure of relative cheapness/priciness when it comes to the FAANGs.
With this being said, here are the FAANG stocks ranked from cheapest to priciest using the most-relevant valuation metric: the price-to-cash-flow ratio.
1. Meta Platforms: 10.1 times forward-year (2024) cash flow
Based on the forward-year price-to-cash-flow ratio, social media stock Meta Platforms is the cheapest FAANG stock. That might be hard to believe given its sizable run-up from its 2022 lows, but shares are currently trading for just a hair about 10 times Wall Street's consensus cash flow for next year.
The thing investors have to understand about Meta Platforms is that CEO Mark Zuckerberg has levers he and his board can pull to create value for shareholders. Though Zuckerberg is intent to spend big bucks on metaverse innovations, growing losses from Reality Labs (the company's metaverse division), as well as a weaker ad spending environment, ultimately led Meta to pare back the midpoint of its forecast capital expenditures in 2023 by $5 billion. That's not chump change, and it can really move the cash-flow needle.
Additionally, Meta still possesses the most-valuable social media real estate. Its four key assets -- Facebook, WhatsApp, Instagram, and Facebook Messenger -- lured more than 3.8 billion unique visitors each month to its family of apps during the March-ended quarter. More often than not, Meta is going to enjoy exceptionally strong ad-pricing power.
2. Amazon: 12.7 times forward-year cash flow
Two words you may have thought you'd never see in the same sentence are "Amazon" and "cheap." But based on Wall Street's forward-year cash-flow multiple of less than 13, Amazon is historically inexpensive. By comparison, Amazon ended every year of the 2010s at a price-to-cash-flow multiple of 23 to 37.
Despite being the world's top online retail marketplace, it's Amazon's ancillary operations that do virtually all of the heavy lifting on the cash-generation front. Specifically, cloud infrastructure service segment Amazon Web Services (AWS) is Amazon's most-important operating segment.
According to tech analysis company Canalys, AWS accounted for 32% of global cloud service spending during the first quarter. Since cloud service margins are considerably higher than online retail margins, AWS has consistently accounted for 50% to 100% of Amazon's operating income despite contributing just a sixth of net sales.
As long as AWS, subscription services, and advertising services continue growing by a double-digit percentage, Amazon should be a cash cow.
Image source: Getty Images.
3. Alphabet: 13.5 times forward-year cash flow
Another FAANG stock that's historically much cheaper than it was throughout the 2010s is Alphabet, the parent company of internet search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo. After averaging a price-to-cash-flow ratio of 18.3 over the past five years, Class A shares can be scooped up right now for only 13.5 times forecast cash flow in 2024.
Internet search Google continues to be Alphabet's foundation. You'd have to go back to the first quarter of 2015 to find the last time Google didn't account for at least 90% of worldwide search share in a given month. Being a veritable monopoly in search gives the company phenomenal ad-pricing power, as well as allows it to benefit from the long-term growth in the U.S. and global economy.
Alphabet's ancillary operations can become cash cows, too. More than 50 billion YouTube Shorts are now being watched daily, which is a mammoth advertising opportunity for the company. Meanwhile, Google Cloud holds 9% of the global cloud infrastructure service market, and more importantly reversed a year-ago loss into a profit in the March-ended quarter.
4. Apple: 22.7 times forward-year cash flow
On the other end of the spectrum is tech stock Apple, which isn't particularly cheap. After consistently ending the year at a price-to-cash-flow multiple of between 7.5 and 13.9 from 2013 through 2018, investors are now paying close to 23 times forward-year cash flow for the largest publicly traded company in the U.S.
In one respect, Apple deserves a premium given what it offers long-term investors. It's, arguably, the most-valuable brand in the world, it has an exceptional loyal customer base, and its 5G smartphones sell like hotcakes. To boot, it's repurchased approximately $586 billion worth of its common stock over the trailing 10 years.
The issue with Apple is that it's been valued as a growth stock for much of the past 10 years -- and it's not growing at the moment. Even with historically high inflation as a tailwind, net sales are expected to fall in fiscal 2023, with Mac revenue down 30% through six months and iPhone sales $5.1 billion below where things stood last year. Without its typical double-digit growth rate, Apple has lost its luster.
5. Netflix: 30.1 times forward-year cash flow
Bringing up the caboose in the valuation department among the FAANG stocks is streaming service leader Netflix. Despite, technically, being cheaper than in years' past, Netflix clocks in with a pricey multiple to cash flow of just over 30.
The reason Netflix is so pricey primarily has to do with the company's international expansion efforts. The desire to secure a dominant share of overseas streaming coerced Netflix's management team to spend at-will for years. Even though the company is quite profitable on an adjusted basis, and Netflix increased its free cash flow forecast by $500 million for 2023, its operating cash flow relative to its market cap is still playing catch-up.
The other concern for Netflix, compared to the likes of Meta, Amazon, Alphabet, and Apple, is that its moat isn't too strong. Netflix has been consistently losing streaming market share since the start of the decade as legacy operators build up their direct-to-consumer offerings. While Netflix has maintained an advantage as the only profitable large-scale streaming operator, legacy media stocks are flush with cash and not going away.
At 30 times forward-year cash flow, Netflix is the FAANG for investors to consider avoiding.
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 5, 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. 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. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When I say "FAANG," I'm referring to the acronym for: Facebook, which is a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The reason the FAANGs are so popular is their long-term outperformance. That might be hard to believe given its sizable run-up from its 2022 lows, but shares are currently trading for just a hair about 10 times Wall Street's consensus cash flow for next year. The thing investors have to understand about Meta Platforms is that CEO Mark Zuckerberg has levers he and his board can pull to create value for shareholders.
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When I say "FAANG," I'm referring to the acronym for: Facebook, which is a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The reason the FAANGs are so popular is their long-term outperformance. Meta Platforms: 10.1 times forward-year (2024) cash flow Based on the forward-year price-to-cash-flow ratio, social media stock Meta Platforms is the cheapest FAANG stock. Specifically, cloud infrastructure service segment Amazon Web Services (AWS) is Amazon's most-important operating segment.
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When I say "FAANG," I'm referring to the acronym for: Facebook, which is a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The reason the FAANGs are so popular is their long-term outperformance. Meta Platforms: 10.1 times forward-year (2024) cash flow Based on the forward-year price-to-cash-flow ratio, social media stock Meta Platforms is the cheapest FAANG stock. Alphabet: 13.5 times forward-year cash flow Another FAANG stock that's historically much cheaper than it was throughout the 2010s is Alphabet, the parent company of internet search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo.
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When I say "FAANG," I'm referring to the acronym for: Facebook, which is a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) The reason the FAANGs are so popular is their long-term outperformance. Meta Platforms: 10.1 times forward-year (2024) cash flow Based on the forward-year price-to-cash-flow ratio, social media stock Meta Platforms is the cheapest FAANG stock. Alphabet: 13.5 times forward-year cash flow Another FAANG stock that's historically much cheaper than it was throughout the 2010s is Alphabet, the parent company of internet search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo.
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15390.0
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2023-06-12 00:00:00 UTC
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What Apple Didn't Say Is Most Important
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AAPL
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https://www.nasdaq.com/articles/what-apple-didnt-say-is-most-important
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nan
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nan
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Apple's (NASDAQ: AAPL) new headset has gotten a lot of buzz, but people aren't talking about what the company didn't say. The words "virtual reality" were absent, despite this being a virtual reality headset. In this video, Travis Hoium covers why that's important.
*Stock prices used were end-of-day prices of June 7, 2023. The video was published on June 8, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 5, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) new headset has gotten a lot of buzz, but people aren't talking about what the company didn't say. 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 5, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple's (NASDAQ: AAPL) new headset has gotten a lot of buzz, but people aren't talking about what the company didn't say. 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 5, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple's (NASDAQ: AAPL) new headset has gotten a lot of buzz, but people aren't talking about what the company didn't say. 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.
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Apple's (NASDAQ: AAPL) new headset has gotten a lot of buzz, but people aren't talking about what the company didn't say. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! The Motley Fool has positions in and recommends Apple and Meta Platforms.
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15391.0
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2023-06-12 00:00:00 UTC
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Apple, Amazon, Alphabet, Microsoft, Meta, Nvidia & Tesla are part of Zacks Earnings Preview
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AAPL
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https://www.nasdaq.com/articles/apple-amazon-alphabet-microsoft-meta-nvidia-tesla-are-part-of-zacks-earnings-preview
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For Immediate Release
Chicago, IL – June 12, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Meta META, Nvidia NVDA & Tesla TSLA.
Breaking Down The Big 7 Tech Players' Outsized Roles
Stocks have made some nice gains from the October 2022 lows and remain within spitting distance of the recent peak in August last year. In fact, the S&P 500 index is up about +20% from the October lows, prompting some to suggest that the worst is behind us.
This note is focused on the outsized role of the ‘Big 7 Tech Players’ – Apple, Amazon, Alphabet, Microsoft, Meta, Nvidia & Tesla – in the market’s strong performance this year.
Market bears justifiably point to the market’s narrow leadership through these ‘Big 7 Tech Players’ as a major argument why they don’t see the rally having sustainable legs. This is a fair point, though we should note that we are starting to see other parts of the market join the leadership team in recent days.
The bears also point to recession risks, the inflation problem being more ‘sticky’ than the market is appreciating, and significant downside risks to current consensus earnings expectations.
Recessions are notoriously hard to predict, and this ‘coming recession’ has proved more challenging than most.
Without a crystal ball, it is hard to know with certainty what lies ahead in the macroeconomy. But most mainstream economists are lowering their recession odds, though they all see above-average risks of economic trouble. With inflation steadily decreasing and the labor market staying fairly strong, many in the market are starting to assign more likely odds to the ‘soft landing’ scenario.
We are seeing some early evidence of this in the real-time earnings estimate revisions data as well. Regular readers of our earnings commentary know that we have consistently flagged a favorable turn in the revisions trend since the start of 2023 Q2. Earnings estimates have been stabilizing in the aggregate after consistently coming down for almost a year and are actually starting to go up for some key sectors.
This combination of favorable macroeconomic developments and optimism about the transformational power of artificial intelligence (AI) seems to be driving market optimism.
The ‘Big 7 Tech Players’ are at the forefront of the market’s AI hopes, as was vividly crystallized by Nvidia’s off-the-charts guidance upgrade on May 24th. That day, Nvidia told the market that instead of the $7 billion-plus that the market expected them to bring in revenues for their July quarter, they see the revenue number to be more like $11 billion.
The May 24th guidance upgrade has put Nvidia shares on a unique trajectory. Valuation questions tend to have an element of subjectivity about them, like ‘beauty being in the eyes of the beholder.’ But no one in their right mind can say with a straight face that Nvidia shares are fairly priced at current levels on most conventional valuation metrics. But what if the May 24th guidance upgrade proves to be the first among many others in the coming quarters?
Getting back to the ‘Big 7 Tech Players’, please note that we are taking somewhat of a license by calling them all to be ‘Tech’ players. For the record, the Zacks sector classification puts Tesla in the Auto sector and Amazon in the Retail sector.
This elite group of 7 mega-cap companies currently accounts for 27.5% of the S&P 500 index’s total market capitalization and is expected to bring in 16.2% of the index’s total earnings this year. This is the same earnings share the group brought in 2020, which increased to 17.4% in 2021 and fell to 14.4% in 2022.
Current consensus expectations call for the group’s earnings share to increase to 17.2% in 2024 and 18.4% in 2025.
For 2023 Q2, the ‘Big 7 Tech Players’ are currently expected to achieve year-over-year earnings and revenue growth rates of +13.2% and +6.1%, respectively. The group is expected to account for 15.4% of all S&P 500 earnings in 2023 Q2.
The expectation is for steadily improving growth in the coming quarters. The S&P 500 index as a whole is expected to suffer an -8.9% decline in earnings on -0.6% lower revenues in 2023 Q2. Excluding the contribution from the ‘Big 7 Tech Players’, Q2 earnings for the remaining 493 S&P 500 members would be down -12% on -1.3% lower revenues.
To get a sense of what is currently expected, take a look at current earnings and revenue growth expectations for the S&P 500 index for 2023 Q2 and the following three quarters and actual results for the preceding four quarters.
To give you a sense of how much these expectations have evolved over the last three months, the -8.9% earnings decline in Q2 today is down from the -7.2% decline that was expected on March 10th, 2023. Estimates for the last two quarters of the year have similarly come down very modestly over the same time period, with 2023 Q3 down from +0.3% earnings growth on March 10th to a decline of -0.7% today and Q4 down from +7.9% then to +5.4% today.
Please note that while 2023 Q2 estimates have come down, the magnitude of negative revisions compares favorably to what we saw in the comparable periods of the preceding couple of quarters. In other words, estimates haven’t fallen as much as they did the last few quarters, not only for Q2 but also for the rest of the year.
As noted earlier, we have been pointing out a notable stabilization in the revisions front lately, which roughly coincided with the start of Q2 in April 2023. This was a shift in the overall revisions trend that had been in place for almost a year before that.
Getting back to the 2023 Q2 expectations, embedded in the aforementioned earnings and revenue growth projections is the expectation of continued margin pressures, a recurring theme in recent quarters.
2023 Q2 will be the 6th consecutive quarter of declining margins for the S&P 500 index.
Margins in Q2 are expected to be below the year-earlier level for 11 of the 16 Zacks sectors, with the biggest margin pressure expected to be in the Basic Materials, Construction, Energy, Medical, Conglomerates, Autos, Aerospace, and Tech sectors.
On the positive side, the Finance sector is the only one expected to experience significant margin gains, with the Consumer Discretionary sector as a distant second. Sectors expected to be essentially flat margins relative to 2022 Q2 are Retail, Utilities, and Industrial Products.
As noted earlier in the context of discussing the revisions trend pertaining to 2023 Q2 estimates, we have been observing a notable stabilization in the revisions trend since the start of April 2023.
This stabilization in 2023 earnings estimates represented a notable reversal in the persistently negative trend that had been in place for almost a year. Current expectations for 2023, as represented by the above chart, are down nearly -13% since the April 2022 peak.
Since the start of 2023 Q2 in April, aggregate earnings estimates for 2023 are essentially flat, with 8 of the 16 Zacks sectors enjoying positive estimate revisions in that time period. Sectors enjoying positive estimate revisions since the start of Q2 include Construction, Industrial Products, Autos, Tech, and Retail.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Looking Ahead to the Q2 Earnings Season
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
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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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This week’s list includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Meta META, Nvidia NVDA & Tesla TSLA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Breaking Down The Big 7 Tech Players' Outsized Roles Stocks have made some nice gains from the October 2022 lows and remain within spitting distance of the recent peak in August last year.
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This week’s list includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Meta META, Nvidia NVDA & Tesla TSLA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. This note is focused on the outsized role of the ‘Big 7 Tech Players’ – Apple, Amazon, Alphabet, Microsoft, Meta, Nvidia & Tesla – in the market’s strong performance this year.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. This week’s list includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Meta META, Nvidia NVDA & Tesla TSLA. To get a sense of what is currently expected, take a look at current earnings and revenue growth expectations for the S&P 500 index for 2023 Q2 and the following three quarters and actual results for the preceding four quarters.
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This week’s list includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Meta META, Nvidia NVDA & Tesla TSLA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Earnings estimates have been stabilizing in the aggregate after consistently coming down for almost a year and are actually starting to go up for some key sectors.
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15392.0
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2023-06-11 00:00:00 UTC
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Guru Fundamental Report for AAPL
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-2
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our 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
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Factor-Based Stock Portfolios
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Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. 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).
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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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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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15393.0
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2023-06-11 00:00:00 UTC
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WALL ST WEEK AHEAD-Investors rethink recession plays, boosting U.S. stock market laggards
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-investors-rethink-recession-plays-boosting-u.s.-stock-market-laggards-0
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By David Randall
NEW YORK, June 9 (Reuters) - A U.S. stocks rally is showing signs of expanding beyond the cluster of giant growth and tech names that have led gains this year, as investors reposition portfolios primed for a widely expected recession.
For months, investors piled into a handful of megacap companies seen as safe bets in uncertain times, spurring a rally that has lifted the S&P 500 nearly 12% year-to-date, concentrated in a small group of stocks.
As the U.S. economy holds up despite higher interest rates, fears of an imminent downturn are fading. Some investors have started dipping their toes into economically sensitive market areas that have been out of favor this year including small caps, energy shares and industrial stocks - all of which have seen hefty rallies in June.
"We're seeing indications that the economy is going to be more resilient to headwinds," said Tim Murray, a capital market strategist in T Rowe Price's multi-asset division. "There's reason to believe that the pessimism we saw at the start of the year is giving way to a stronger-than-expected market."
Murray has increased his allocation to small-cap stocks, which tend to be among the most direct beneficiaries of economic growth. The Russell 2000 small cap index of small cap companies .RUT has surged 6.6% this month. The index is up 5.9% year-to-date.
Other rebounding segments in June include the S&P 500 energy sector, which has gained 6% this month and S&P 500 industrials, up 5.7%. Energy is down 7.6% year-to-date, while industrials have risen nearly 4%.
By contrast, the tech-heavy Nasdaq 100 has gained about 2% this month - though the recent underperformance follows a nearly 33% year-to-date surge on excitement over developments in artificial intelligence.
"This kind of dominance is unusual but you're starting to see it turn around," said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
Ten of the 11 S&P 500 sectors are firmer for the month to date, compared to only six for the year. An additional sign that investors are looking further afield can be seen in the market's breadth: the percentage of S&P 500 stocks trading above their 200-day moving average stood at nearly 54% on Friday, up from a low of 38% in March. That is still off from the high of 76% reached in February, however.
Stronger-than-expected jobs growth and robust consumer spending have been among the data points that have bolstered investors' economic outlook.
Among the firms revising recession forecasts were Goldman Sachs, which in the past week cut its probability of a recession in the next 12 months to 25% from 35%, while Nuveen's Chief Investment Officer Saira Malik recently wrote that a "mild" recession has likely been delayed from late 2023 to sometime in 2024.
Investors in the coming week will be watching U.S. consumer price data on Tuesday for signs that the Fed's rate hikes are continuing to cool inflation without badly hurting growth. The Fed concludes its two-day monetary policy meeting onWednesday, and while most market participants expect the U.S. central bank to leave rates unchanged, many will also be gauging policymakers' appetite for future tightening.
Some market watchers believe it is too early for economic optimism. Analysts at Capital Economics wrote on Thursday that the small-caps rally was likely premature, saying they expected softer growth in coming months. Jobless claims released on Thursday were higher than expected, a sign that the labor market could be cooling.
Others, however, are more optimistic. Max Wasserman, senior portfolio manager at Miramar Capital, has been increasing his positions in underperforming consumer stocks such as Starbucks Corp SBUX.O and Target Corp TGT.N, respectively down around 1% and 15% year-to-date. He expects restaurants and retailers to outperform as growth stabilizes in the second half of the year.
"That's when we think we will be rewarded," he said.
BREADTH https://tmsnrt.rs/43QjVpv
Reversal of fortune https://tmsnrt.rs/3CjkeNV
(Reporting by David Randall; Additional reporting Saqib Iqbal Ahmed and Lewis Krauskopf; Editing by Ira Iosebashvili and Richard Chang)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Randall NEW YORK, June 9 (Reuters) - A U.S. stocks rally is showing signs of expanding beyond the cluster of giant growth and tech names that have led gains this year, as investors reposition portfolios primed for a widely expected recession. Some investors have started dipping their toes into economically sensitive market areas that have been out of favor this year including small caps, energy shares and industrial stocks - all of which have seen hefty rallies in June. The Fed concludes its two-day monetary policy meeting onWednesday, and while most market participants expect the U.S. central bank to leave rates unchanged, many will also be gauging policymakers' appetite for future tightening.
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Some investors have started dipping their toes into economically sensitive market areas that have been out of favor this year including small caps, energy shares and industrial stocks - all of which have seen hefty rallies in June. The Russell 2000 small cap index of small cap companies .RUT has surged 6.6% this month. BREADTH https://tmsnrt.rs/43QjVpv Reversal of fortune https://tmsnrt.rs/3CjkeNV (Reporting by David Randall; Additional reporting Saqib Iqbal Ahmed and Lewis Krauskopf; Editing by Ira Iosebashvili and Richard Chang) ((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Randall NEW YORK, June 9 (Reuters) - A U.S. stocks rally is showing signs of expanding beyond the cluster of giant growth and tech names that have led gains this year, as investors reposition portfolios primed for a widely expected recession. Some investors have started dipping their toes into economically sensitive market areas that have been out of favor this year including small caps, energy shares and industrial stocks - all of which have seen hefty rallies in June. Analysts at Capital Economics wrote on Thursday that the small-caps rally was likely premature, saying they expected softer growth in coming months.
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Some investors have started dipping their toes into economically sensitive market areas that have been out of favor this year including small caps, energy shares and industrial stocks - all of which have seen hefty rallies in June. The index is up 5.9% year-to-date. Other rebounding segments in June include the S&P 500 energy sector, which has gained 6% this month and S&P 500 industrials, up 5.7%.
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15394.0
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2023-06-11 00:00:00 UTC
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Caution! The Stock Market Is Waving 5 Big Red Flags Right Now.
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AAPL
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https://www.nasdaq.com/articles/caution-the-stock-market-is-waving-5-big-red-flags-right-now.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It doesn’t have to be the end of the world in order for investors to exercise a bit of caution. While many stocks remain well off their all-time highs, many indices are doing quite well. In fact, they are erasing a bulk of the 2022 bear market losses. However, there are some stock market red flags and stock market risks to watch.
The S&P 500 is down 10.75% from its all-time high — but officially back in a bull market by some measures — and the Dow Jones Industrial Average is down just 8% from its highs. The Nasdaq and Russell 2000 are doing a bit worse, but overall, there’s no denying that they’re up big from the lows.
Identifying a few stock market red flags does not mean turning full-on bearish and going short on everything in sight. It means understanding stock market signals and paying attention to a few warnings. It means protecting capital and considering some defensive measures, like trimming positions and/or potentially raising some cash in the event of a larger correction.
Let’s look at a few stock market risks.
Bad Breadth
Source: sdx15/Shutterstock
Most of this year’s stock market gains have been from just a handful of stocks. In fact, almost 90% of the year-to-date gains can be traced back to just seven stocks. While that data may be a touch outdated, there’s no question that mega-cap tech has been steering the ship.
Meta (NASDAQ:META), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and a few others have been storming higher. All the while, many other stocks continue to struggle.
Admittedly, there’s been an inkling of rotation underway, with selling pressure in tech and strength in small caps and a few select sectors. However, it’s too early to know whether that rotation has any meaningful strength.
As Callie Cox wrote, “By one measure — the S&P 500’s cumulative advance-decline line — the balance of rising to falling stocks during May was the worst for a monthly gain in at least the past two decades. ”
Is this an outright sell signal? No. However, bad breadth leaves the market vulnerable to the performance of just a few stocks unless money continues to rotate into other groups — nd that ups the risk a bit.
Rising Rates and a Strong US Dollar
Source: Yellow_man / Shutterstock.com
The connection between certain asset classes can be complicated, but these two are relatively straight forward. A strong US dollar puts pressure on profits of multinational corporations, while higher interest rates are a negative for businesses and stocks.
Higher interest rates decreases lending and liquidity, which is an obvious negative. But more than that, higher rates make other assets (like bonds and CDs) more attractive against stocks.
That said, bull markets can coexist with multiple headwinds — Including higher rates and a higher dollar. A week ago, the US dollar and 10-year Treasury yields hit a multi-month high, with the latter up more than 18% from the low.
Equities didn’t seem to mind. However, if that trend continues, it’s likely to take a toll.
Inverted Yield Curve, Weakening Economic Data
Source: TierneyMJ / Shutterstock
The 2-year/10-year Treasury yield curve is closely watched as an indicator for an economic recession. It’s not perfect, but when inverted over longer stretches of time — in other words, brief inversions are not as accurate — it can help in predicting an economic contraction.
So far, that hasn’t been the case.
The 2-year/10-year Treasury yield curve hit its lowest point in early March, but it’s still firmly negative. Interestingly, it’s been negative for almost a year now after inverting in early July. It’s also worth noting that the 3-month/10-year yield curve has been inverted since October.
I wouldn’t say this alone means there will be a recession, but its persistent inversion is noteworthy.
While the labor market remains fairly robust, the recent PMI data from June 1 all missed expectations. Further, these readings were all below 50, which indicates contraction. All the ISM data so far this month has also missed expectations. Lastly, the recent jobs claims data — which “measures the number of individuals who filed for unemployment insurance for the first time during the past week” — Is bumping against multi-year highs.
To some extent, this is what the Federal Reserve wants — slower economic activity to take the heat out of inflation. However, the Fed also pushed through interest rate hikes at record pace, so it’s hard to tell what it’s lagging effect could be.
On the date of publication, Bret Kenwell 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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
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The post Caution! The Stock Market Is Waving 5 Big Red Flags Right Now. appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta (NASDAQ:META), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and a few others have been storming higher. As Callie Cox wrote, “By one measure — the S&P 500’s cumulative advance-decline line — the balance of rising to falling stocks during May was the worst for a monthly gain in at least the past two decades. However, bad breadth leaves the market vulnerable to the performance of just a few stocks unless money continues to rotate into other groups — nd that ups the risk a bit.
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Meta (NASDAQ:META), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and a few others have been storming higher. However, there are some stock market red flags and stock market risks to watch. Bad Breadth Source: sdx15/Shutterstock Most of this year’s stock market gains have been from just a handful of stocks.
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Meta (NASDAQ:META), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and a few others have been storming higher. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It doesn’t have to be the end of the world in order for investors to exercise a bit of caution. However, there are some stock market red flags and stock market risks to watch.
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Meta (NASDAQ:META), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and a few others have been storming higher. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It doesn’t have to be the end of the world in order for investors to exercise a bit of caution. Let’s look at a few stock market risks.
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2023-06-11 00:00:00 UTC
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Better Buy: Apple vs. Meta Platforms
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-vs.-meta-platforms
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Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META) generally aren't considered competitors. Apple generates most of its revenue from its hardware devices, and it locks in a lot of those users with its software and services. Meta generates most of its revenue from its ads on Facebook and Instagram.
Yet the two FAANG companies are gradually evolving into adversaries. After years of criticizing Meta's data-tracking practices, Apple finally disrupted Meta's ability to craft targeted ads with a privacy-oriented iOS update in late 2020. Apple also recently unveiled its first mixed-reality device, the Vision Pro, to challenge Meta's Quest headsets in the nascent metaverse market.
Image source: Apple.
The bulls overwhelmingly embraced Apple but shunned Meta over the past three years: Apple's stock surged 115%, but Meta's stock rose just 14%. Let's see why Apple outperformed Meta -- and if that trend will continue for the foreseeable future.
Why did the market embrace Apple?
Apple's growth is cyclical because it generates over half of its revenue from the iPhone. The iPhone's last major upgrade cycle occurred in fiscal 2021 (which ended in September 2021) after it finally entered the 5G market with the iPhone 12. Its growth cooled off in fiscal 2022 after it lapped that upgrade cycle and grappled with COVID-19 lockdowns in China.
On the surface, Apple's growth seems tepid. Its revenue and EPS rose 8% and 9%, respectively, in fiscal 2022. In fiscal 2023, analysts expect its revenue and EPS to decline by 3% and 2%, respectively, as it struggles to sell more iPhones, iPads, and Macs. But all three of those hardware lines have bounced back from cyclical downturns before, and the arrival of the Vision Pro next year could light a fresh fire under its hardware business.
Furthermore, Apple's services division -- which houses Apple Music, Apple TV+, Apple Arcade, Apple Fitness+, the App Store, iCloud, and other services -- continues to flourish. It ended the second quarter of fiscal 2023 with 975 million paid subscriptions across all of its services, which represented 18% growth from the prior-year quarter.
The expansion of that prisoner-taking ecosystem ensures that Apple's hardware sales will climb again after the near-term macro headwinds pass. It's also still sitting on $166 billion in cash and marketable securities, which gives it plenty of room to make fresh investments and acquisitions, and it just authorized a new $90 billion buyback plan. It bought back nearly 40% of its shares over the past decade, and it's raised its dividend every year since it reinstated those payments in 2012.
However, Apple's forward yield of 0.5% is still paltry compared to other blue chip tech stocks, and its stock isn't a bargain at 27 times forward earnings. That valuation was likely inflated by its reputation as a safe haven stock over the past year.
Why did the market shun Meta?
Meta's revenue and EPS fell 1% and 38%, respectively, in 2022. That slowdown was caused by three main challenges: Apple's iOS update, intense competition from ByteDance's TikTok, and macro headwinds for the digital ad market.
Meta has been tweaking its advertising algorithms to reduce its dependence on third-party data to counter Apple's iOS changes. It's also been aggressively expanding its short video platform Reels to counter TikTok. However, both of those strategies could be difficult to execute in this challenging macro environment.
But at the same time, Meta is burning billions of dollars on its Reality Labs division, which houses its virtual reality devices. That segment only generated $2.2 billion in revenue last year (2% of its top line) but racked up an operating loss of $13.2 billion. It expects the unit's losses to widen again this year as it prepares for the launch of its Quest 3 VR headset this fall.
The bears believe those losses will continue to compress Meta's operating margins as it struggles to turn around its core advertising business. However, the bulls will point out that Meta still reaches 3.81 billion people each month with its "family of apps" (Facebook, Messenger, Instagram, and WhatsApp) -- so the growth of its advertising business could easily accelerate again once its resolves its near-term problems. Its aggressive investments in the metaverse could also eventually pay off as more of its social media users migrate to its virtual reality ecosystem.
Meta is still firmly profitable and ended the first quarter of 2023 with $41 billion in cash, cash equivalents, and marketable securities, and it bought back about 10% of its shares over the past three years. Analysts expect Meta's revenue and earnings to grow 8% and 36%, respectively, this year, as the growth of its advertising business offsets its metaverse spending. Those are impressive growth rates for a stock that trades at 22 times forward earnings.
The winner: Meta
I own both of these FAANG stocks, and I don't plan to sell either one anytime soon. But if I had to buy more shares of one of these stocks right now, I'd pick Meta over Apple for three simple reasons: It's growing faster, its valuations are lower, and it still reaches nearly half of the world's population with its apps. Apple is still a rock-solid investment, but its valuations are a bit too high relative to its near-term growth potential.
10 stocks we like better than Apple
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*Stock Advisor returns as of June 5, 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 and Meta Platforms. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META) generally aren't considered competitors. That slowdown was caused by three main challenges: Apple's iOS update, intense competition from ByteDance's TikTok, and macro headwinds for the digital ad market. However, the bulls will point out that Meta still reaches 3.81 billion people each month with its "family of apps" (Facebook, Messenger, Instagram, and WhatsApp) -- so the growth of its advertising business could easily accelerate again once its resolves its near-term problems.
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Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META) generally aren't considered competitors. Apple also recently unveiled its first mixed-reality device, the Vision Pro, to challenge Meta's Quest headsets in the nascent metaverse market. The bulls overwhelmingly embraced Apple but shunned Meta over the past three years: Apple's stock surged 115%, but Meta's stock rose just 14%.
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Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META) generally aren't considered competitors. The bulls overwhelmingly embraced Apple but shunned Meta over the past three years: Apple's stock surged 115%, but Meta's stock rose just 14%. Furthermore, Apple's services division -- which houses Apple Music, Apple TV+, Apple Arcade, Apple Fitness+, the App Store, iCloud, and other services -- continues to flourish.
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Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META) generally aren't considered competitors. The bulls overwhelmingly embraced Apple but shunned Meta over the past three years: Apple's stock surged 115%, but Meta's stock rose just 14%. Apple's growth is cyclical because it generates over half of its revenue from the iPhone.
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2023-06-11 00:00:00 UTC
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Here's the Next AI Stock Most Likely to Join the $1 Trillion Club (Besides Nvidia)
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https://www.nasdaq.com/articles/heres-the-next-ai-stock-most-likely-to-join-the-%241-trillion-club-besides-nvidia
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Four stocks that trade on U.S. stock exchanges currently have market caps of more than $1 trillion. And all of them have significant artificial intelligence (AI) development efforts.
But another AI leader is knocking at the door. Nvidia's market cap came within a hair of reaching $1 trillion in recent weeks and currently stands at close to $980 billion.
It won't take much to push Nvidia over the 12-figure milestone. And there's another contender that could follow in its footsteps. Here's the next AI stock most likely to join the $1 trillion club, besides Nvidia.
Aiming to reclaim its membership
Meta Platforms' (NASDAQ: META) market cap topped $1 trillion in 2021. It didn't stay at that level for long, though. By the end of 2022, the company formerly known as Facebook had lost nearly 75% of its peak value.
Investors soured on Meta's focus on the metaverse. More importantly, they became disenchanted by its sinking profits. Some seemed ready to relegate the company to the ash heap of tech history.
But along the way, others began to notice that Meta's valuation was starting to look really attractive. They rightly pointed out that the company's social media platforms were still used by close to three billion people across the world every day.
Meta gave investors more to consider by beating earnings estimates for the first time in quite a while with its 2023 first-quarter results. All of this breathed new life into the floundering stock.
The AI fervor ignited by OpenAI's launch of ChatGPT helped as well. Meta's share price has skyrocketed close to 150% so far in 2023, bringing its market cap to around $680 billion.
Meta's path to $1 trillion
How can Meta claw its way back to a market cap of at least $1 trillion? The simple answer is to increase its earnings. The more complicated answer is to convince investors that its future earnings potential is greater than previously thought.
I think Meta will be able to grow its earnings significantly. The digital advertising market should rebound, and the full impact of the company's restructuring and layoffs hasn't been felt completely yet. Meta's AI efforts are dramatically improving monetization on Facebook and Instagram Reels.
AI could also, perhaps, be the best way for Meta to persuade investors about its long-term growth prospects. The company is working on incorporating generative AI chat into Messenger and WhatsApp and is developing AI tools to help create videos for ads and posts on Facebook and Instagram. Meta also hopes to deploy AI agents to help businesses with customer support.
These AI efforts could help Meta achieve its metaverse vision as well. CEO Mark Zuckerberg insists that the company isn't scaling back its plans for the metaverse. He thinks AI could be used to assist with creating avatars and virtual worlds.
Two potential obstacles
Meta still might not be the next AI stock to join the $1 trillion club, though. Two potential obstacles stand out, in my view.
First, Tesla (NASDAQ: TSLA) could join the club before Meta does. The electric vehicle maker is viewed by some, especially Ark Invest CEO Cathie Wood, as one of the top AI stocks on the market. Tesla's market cap of around $780 billion is also closer to the $1 trillion mark than Meta's.
However, Wall Street appears to be siding more with Team Meta than Team Tesla. I suspect valuation is an important factor. Meta's price-to-earnings-to-growth (PEG) ratio is 0.91 compared to Tesla's PEG multiple of nearly 2.5.
Second, Meta could be outplayed by current $1 trillion club leader Apple (NASDAQ: AAPL). If Apple's Vision Pro mixed-reality headset is where investors believe technology is headed, they could lose interest in Meta's augmented reality (AR) and virtual reality (VR) dreams.
Zuckerberg wasn't overly impressed with Vision Pro. He reportedly told Meta employees that Apple's headset "could be the vision of the future of computing, but like, it's not the one that I want." However, what Zuckerberg wants just might not be what he gets.
Still, Apple's hefty price tag for its mixed-reality headset could limit adoption. And even if it doesn't, the competition could ultimately help Meta by boosting consumers' interests in AR and VR.
10 stocks we like better than Meta Platforms
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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.
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*Stock Advisor returns as of June 5, 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. Keith Speights has positions in Apple, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Second, Meta could be outplayed by current $1 trillion club leader Apple (NASDAQ: AAPL). Nvidia's market cap came within a hair of reaching $1 trillion in recent weeks and currently stands at close to $980 billion. The digital advertising market should rebound, and the full impact of the company's restructuring and layoffs hasn't been felt completely yet.
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Second, Meta could be outplayed by current $1 trillion club leader Apple (NASDAQ: AAPL). Aiming to reclaim its membership Meta Platforms' (NASDAQ: META) market cap topped $1 trillion in 2021. See the 10 stocks *Stock Advisor returns as of June 5, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Second, Meta could be outplayed by current $1 trillion club leader Apple (NASDAQ: AAPL). Aiming to reclaim its membership Meta Platforms' (NASDAQ: META) market cap topped $1 trillion in 2021. Meta's path to $1 trillion How can Meta claw its way back to a market cap of at least $1 trillion?
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Second, Meta could be outplayed by current $1 trillion club leader Apple (NASDAQ: AAPL). Four stocks that trade on U.S. stock exchanges currently have market caps of more than $1 trillion. Here's the next AI stock most likely to join the $1 trillion club, besides Nvidia.
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15397.0
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2023-06-10 00:00:00 UTC
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The Good News From Chewy, Five Below, MongoDB, and Lululemon
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https://www.nasdaq.com/articles/the-good-news-from-chewy-five-below-mongodb-and-lululemon
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In this podcast, Motley Fool senior analysts Ron Gross and Emily Flippen discuss:
The debt ceiling resolution, and updates on employment and consumer debt.
Why Chewy and Five Below continue to report strong results while other retailers are seeing consumer spending slow down.
The numbers behind MongoDB's blowout earnings release.
Lululemon's strong earnings report.
Two stocks on their radar: Compass Minerals and Veeva Systems.
In addition, The Motley Fool's Scott Kassing talks through three high-conviction stock ideas with Sandhill Investment Management's Richard Ryskalczyk.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Chewy
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 Chewy 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 May 30, 2023
This video was recorded on June 02, 2023.
Dylan Lewis: We've got plenty of news on the big picture and where consumer spend is and isn't going. You're listening to Motley Fool Money.
It's the Motley Fool Money radio show. I'm Dylan Lewis, joining me in studio, Motley Fool senior analysts Emily Flippen and Ron Gross. Great to have you both here.
Ron Gross: How are you doing, Dylan?
Emily Flippen: Hey.
Dylan Lewis: We've got stock ideas and some earning surprises, but we're kicking off with the big macro, got the debt ceiling deal, a fresh jobs report, and an update on consumer debt. Ron, where do you want to start?
Ron Gross: Let's go to the debt ceiling because I think it's on everyone's mind, and I'll say phew. Phew. How about that? Yeah, we got it done. I honestly didn't think it was in jeopardy of not getting done, although there were a few days here and there, where it seemed like our politicians might not be able to come together. But it was literally a necessity. When something is literally a necessity, I think it's fair to bet on that happening. It was a compromise, as most things in politics are, that's fine. Some give-and-take. We live to fight another day whether there should be a debt ceiling or not, it's a political question, not really an investing one so I will leave that for other pundits. But I personally, I'm happy it got done. Friday's stock market is strong. I would think partly as a result of that being accomplished.
Dylan Lewis: I'm going to speak for the market and investors everywhere and say, I'm just happy that the government will have the ability to pay its bills for the foreseeable future. Emily, apart from that, anything you'd add to the debt ceiling?
Emily Flippen: I love this game of chicken we play with our financial systems. Lots of fun for investors in the market, but in all seriousness, we do get some interesting developments out of these occasionally. I think we saw one today with the debt deal, the deal that raise the debt ceiling actually cut IRS funding that was granted as part of the Inflation Reduction Act by upwards of $20 million. It was an $80 billion deal. That could impact the development of a free federal tax filing system, $20 billion, excuse me. So cutting that by $20 billion, maybe the IRS doesn't come in, doesn't develop their own tax system which had been previously a priority of that government agency, which could be a net positive for some of the free tax filers that already exist out there, like Intuit's TurboTax. Just seeing where the federal government spending is going to shift potentially over the next couple of years, that's one of the things that was standing out to me.
Dylan Lewis: Sticking with the big picture, we've also got a fresh jobs report Friday morning. U.S. employers added a seasonally adjusted 339,000 jobs last month, and unemployment currently sits at 3.7%, up slightly from recent months. Ron, what stood out to you in the report?
Ron Gross: This one is interesting to me because the jobs report came in hotter or better than expected. But there was a mixed bag because unemployment did tick up to 3.7%. Now that's due to a sharp decline in self-employed data, people who identify as self-employed. That's interesting a little bit in and of itself. But interestingly, the markets reacted positively to the strong jobs report. Now that is counterintuitive to the usual counterintuitiveness. It's the same as double negatives make a positive. Usually, you would expect the market to sell off on a strong report because that gives the Fed cover to continue to raise rates if they feel they need to. Strong labor market leads to higher wages, wage inflation that keeps inflation persisting. But just when you thought you had these things figured out, the market goes ahead and pulls a 180 on you, trades higher, maybe it's the debt ceiling, or maybe it's that some of Friday's data did show a moderating in wage inflation, and that is good news. Maybe not for the person earning the wage, but for the economy as a whole and what the Fed is trying to do to slow the economy. But we had a very strong Friday on this hot jobs data.
Emily Flippen: I will say this, I think part of it could also be the presumption that the federal government is not going to raise rates despite what a strong jobs report this was. I know that sounds counterintuitive because the Federal Reserve has said time and time again, no, we're going to do what's best for the economy regardless of how the market reacts, regardless of how other pundits react, we're going to do what we think is best, but I think part of their job is managing expectations. So many consumers, Americans, investors, and the market, they've already baked into their expectations. No near-term rate increases. Part of me wonders if they're taking that for granted and expecting things to stay the same even if the jobs report is strong.
Dylan Lewis: We generally don't factor the interest rate movements too much into our individual investment decisions. Is there anything in here, Ron, that you would look at and say, this is what I expect. I know the jobs report can be a bit of a gamble as we look at it. But is there anything that you would say, yeah, this is where I'm leaning with where the Fed might be going.
Ron Gross: Well, I think the economy looks strong enough right now where I don't expect a recession to be imminent. The big R word keeps rearing its ugly head as the Fed continues to raise. I'm not necessarily sure the Fed is actually done raising completely, maybe there'll be a pause, maybe we will get 25 basis points here or there, or maybe the economy will slow as a result in 2024, but I don't see an imminent. I think we're going to be relatively OK, even if a recession happens, I think it will be shallow. At least that's the way the numbers seem to be shaping up right now.
Dylan Lewis: One more data point that might have gotten lost a bit in the shuffle this week, consumer credit and revolving debt continues to rise and is nearing $1 trillion, according to the Fed. This has been an interesting metric to follow over the past few years. It is currently clocking in at all-time highs, Emily, up 25% since 2021. Does that have you concerned at all?
Emily Flippen: Well, it doesn't have me shocked. That's for sure we've seen record-high inflation, we've seen a pandemic, we've seen just the general lives, of I think, average Americans be really negatively impacted by the cost of living. So, I'm not surprised to hear that a number of those Americans are increasingly putting necessities on their credit card bill, which is what I think this probably is, people, trying to pay for things like groceries or phone bills, stuff that is no longer discretionary but necessary. It's good to see the economy somewhat being strong, hopefully, that number comes down, but with inflation the way that it is, it's not a surprise to see credit card debt rise.
Ron Gross: Let's be careful when we say consumers are strong because if it's at the expense of their savings or at the expense of a higher credit card bill, that's really not the definition of strong to me. I think we can talk about this a little bit later, we're starting to see that show up in some of the retailers that focus on lower-income shoppers. The Fed appears to be maybe getting what it wants, which is a slowing down of the economy and spending, but consumers maybe making up for that by dipping into savings or debt.
Dylan Lewis: Let's zoom into that retail space a little bit and start examining that because I think as we start to see consumers get stretched, you wonder where dollars start to go. We looked at some results like those from Macy's this past week. Really a seemingly solid quarter meeting expectations from this business, but it cut the forecast for the top and bottom line for the rest of the year. Reading through the call, Ron, it seems like they are being cautious as they look out and a lot of retailers are as they're planning the rest of the year.
Ron Gross: They are, and it depends on where you're focused. Macy's is seeing weakness in discretionary categories, as I think will be a theme as we go across, whether it's TVs at Target or some discretionary items at Macy's. That's where they're being cautious, appropriately so. This stock is still off 40% from its 52-week high, so even though perhaps some of this data from this quarter met expectations, it's still relatively weak with sales down 7%, brick-and-mortar down 6%, digital sales down 8%. There's some real weaknesses continuing in this business. You did have a slight increase in gross margins, but that was offset by higher operating expenses. It all boils down to earnings per share being down almost 50%. This is a weak business currently in this environment causing them to lower guidance. Again, demand trends weakening further in discretionary categories is what the CEO said. They're going to have to continue to take markdowns, they're going to have to continue to adjust product mix, deal with high inventory levels, and hopefully have it worked through the system. They maintained their dividend, 4.8%, it's actually trading 4 times updated earnings. If you want to take a shot on a retailer that's been around for quite some time, getting their act together, that could be interesting, but things currently are weak.
Dylan Lewis: You mentioned management's comments. They said something to the effect of consumers are pulling back in retail spend, and reallocating to food, essentials, and services. As we look to earnings from other companies, looking at Chewy here, pet supplier, it seems like Emily, people are still very comfortable spending on their pets.
Emily Flippen: I have a bone to pick with you, Dylan. Always seem to want to give credit to Chewy's success on factors outside of their control. Like you just said, oh, well pet spend is up, so Chewy is doing well. But this quarter, the past couple of weeks have been a great example for why that is exactly not the case because you can look at Petco. Petco reported earnings, I believe last week and the market was extremely disappointed because of management's commentary around the fact that consumers aren't making this discretionary spend, their margins are weak. The economic environment is getting worse and meanwhile Chewy comes out and it's almost the exact opposite story. Maybe the discretionary spending has fallen, but they're saying, look, people aren't trading down on their pets. They're still buying the premium items that have slightly higher margins. The premium foods, the premium toys, because that's how much they care about their animals, and that's a deep relationship that Chewy has with their customers is that they understand the value of Chewy's platform in a way that I think Petco doesn't quite understand. Chewy knows. Look, I have a cat. I also recently bought a house. Do you know how many ads I'm getting from Chewy about cat towers? I have like three cat towers coming to me in the mail. Petco doesn't know that about me, despite the fact that I can shop at a Petco and I have bought food at Petco before. Chewy just has a better understanding of its customer than other pet retailers. That's what we saw showing up in this quarter. Just incredible results, some expansion of margins despite the fact that the economic environment is weaker.
Dylan Lewis: One of the things I wanted to dig into was that relationship with customers. I think one of the ways that it shows up in the results we saw from Chewy was those Autoship sales, those were up 19% year over year, outpacing overall revenue growth for the business. I have to think if you're a retailer, having that type of relationship with your customer has to be the dream.
Emily Flippen: Yeah. The relationship is great, I will say as an investor, it makes me a little bit nervous because as you mentioned, nearly three-fourths of all sales are coming from their Autoship program, which is great. That's a deep relationship, a deep understanding of what those consumers need. But they don't exactly have a lot of room for improvement from those levels. There is still going to be a portion of their sales that are happening spontaneously. I realized that I need something, I need it to be delivered to me quickly. Chewy has the best offer, I'm going to buy it quickly. Maybe that's off-cycle from when I would normally get an Autoship. If that's a key metric that investors are looking at, I wouldn't be surprised to see that tick down at some point, even marginally in future quarters, just because it's already so high. The same is true for their net sales per active customer. For the first time in Chewy's history, it surpassed $500 per customer, which is incredibly high. We've seen that grow as the relationship deepens over time, but we've also seen incredible levels of pet inflation in particular. That's also potentially artificially inflated by the price of the goods that people are buying. I wouldn't be surprised if the economic inflation comes down to see both of these metrics come down as well.
Dylan Lewis: After the break, we've got more retail news and updates from tech companies. Stay right here. This is Motley Fool Money. Welcome back to Motley Fool Money. I'm Dylan Lewis here in studio with Emily Flippen and Ron Gross. We were talking retail earlier and the theme of slowing consumer spend is very present right now, but it seems to be hitting retailers differently. Ron, we look at results from discount retailers, Dollar General, and Five Below, we see slightly different narratives with these two companies in their earnings reports.
Ron Gross: Yes, and it's a little bit surprising because you would assume they have a similar client base, but it's not exactly the same. Dollar General is indicating that due to the macroeconomic environment, business has been quite challenging. Their customer base, which is lower-income shoppers are shifting their spending to basic goods and cutting back on discretionary purchases. Not different than we saw in Macy's or Target or any of the other retailers that have been reporting. That shows up in their numbers. But more importantly, it shows up in their guidance and the stock got slammed as a result of that guidance because it is relatively weak. Now with Five Below, even though a similar customer base, it's a little bit different. They have a slightly higher price point. They have some stores that are even higher than the typical stores' price points. They're very good at creating the merchandise mix that the customer is looking for. As a result, the metrics that they put forth in this earnings report are really strong and they were able to tighten their guidance, not raise it, but tighten it because they have a better outlook into the future which is also interesting because this is a very uncertain environment. Their numbers continue to look strong, including opening 200 plus stores and continue to expand. They're two very different reports and you may not have guessed they would be at the outset.
Dylan Lewis: You mentioned the store opening plans, and that was another place where these two businesses diverge a little bit. We saw in commentary from management Dollar General say they are going to be a little bit more opportunistic with real estate and may slow some of their expansion plans, believing that perhaps there may be some real estate deals for them in the future. Ron, I wanted to ask you, is that something that you buy as a commentary for management or do you think that is a nice way to say we are altering our plans for the rest of the year?
Ron Gross: Well, for sure there are altering their plan for the rest of the year. Dollar General is going to slow the spend, which by the way, is what you want your company to do if things are not going that well, despite your desire for a company to grow, if the environment is not right, then you do want them to slow. On the other hand, Five Below is going through their Five Beyond concept, which is a little higher price point. That's where they're focusing on a little bit of the more high-end consumer where they think the opportunity lies. It will be interesting to see the next report and the report after that, how things are going.
Dylan Lewis: Switching over to tech, MongoDB posted some eye-popping results in their first-quarter report this week, revenue for the database software company was up nearly 30% year over year to $370 million and net losses came in ahead of expectations. Emily, I was looking at this report and to me, it seemed like one of those earnings results where pick a metric and the company did a pretty great job?
Emily Flippen: It was eye-popping to everyone including management themselves. [laughs] If you listen to the call, management almost sounds confused about why they did. They said, we had all these expectations for what the first quarter could look like, but man, did it really do better? If you haven't read through yet, virtually every metric across the board for was performing well. That's great for a business like MongoDB because they're competing with other database solutions from cloud titans like Amazon, Google, Microsoft, Oracle. They need to have those customer wins. We saw that customer wins, especially in the large enterprise side, come through with this most recent quarter. But what I found really interesting was the fact that they attributed some of their unexpected success to actually AI and machine learning users, so shocking, exactly. Well, actually it's interesting, though, because their NoSQL database, which is better for unstructured data, plays really well into the hands of the unstructured data that you typically get from things like AI programs. But 10% or so of the customers that they acquired in the most recent quarter were specifically using their solutions for AI or machine learning, which is a large portion. Probably responsible for that unexpected win, so depending on your opinions about AI or machine learning, that could probably factor into how you expect MongoDB is going to do in terms of eye-popping results and future quarters on the plus side or the downside.
Dylan Lewis: One of the things that I wanted to dig into, the comments from management in this report was the CEO said they're seeing customers continue to scrutinize technology spend and they are looking to separate the must-haves from the nice-to-haves. From everything I'm seeing the results here it seems like MongoDB is firmly on the must-have side for a lot of businesses.
Emily Flippen: That's what management want you to think. They spent virtually the entire call explaining all the different use cases they have, especially with some Chinese companies as well like Alibaba and how they've implemented their solutions to decrease their cost structure, improve efficiency, and it's great. They do seem to have a lot of wins. Now whether or not something was actually necessary the amount of consumption that happens on the platform. We've seen that decline as consumption has declined just across the board because of the broader economy. It might be a must-have, but consumption is still a big question mark.
Dylan Lewis: Ron, one of the things I wanted to ask you about was, we know customers are going through this mindset and this approach to looking at where they're spending their money. Is it fair for investors to take a similar approach? They look at some of the names, especially the tech names in their portfolio.
Ron Gross: Omega has declared this the year of efficiency and then we're seeing that across the board, whether it's becoming meaner or doing layoffs. You do want your companies reacting to the current environment, even if that means selling off an underperforming subsidiary and as investors to hone hopefully a diversified portfolio, you want to make sure you own the stocks that you're most comfortable with that are taking the steps necessary to outperform.
Dylan Lewis: Emily Flippen, Ron Gross. We'll see you a little bit later in the show. But up next we've got some high-conviction ideas to keep an eye on.
Welcome back to Motley Fool Money. I'm Dylan Lewis. We love getting stock ideas here at The Motley Fool and getting other perspectives on the companies we follow. The Fool's Scott Kassing sat down with Richard Ryskalczyk, the chief equity analyst at Sandhill Investment Management, to get a bit of both. The two talked about some of Sandhill's highest-conviction ideas right now in cybersecurity and healthcare and how their team is analyzing high-growth companies in the current environment.
Scott Kassing: If you don't mind, there's one name on your high-conviction list that I wanted to start with, and that is Palo Alto Networks, ticker symbol PANW. The reason being is the industry it lives in, cybersecurity, and the consensus around that. I haven't met an equity analyst who's bearish on the space. Everyone believes five years from now, it's more relevant. Where I do see non-consensus is who the winner or winners will be. In a space like this, I'm so tempted to just buy an ETF or a basket of cybersecurity stocks. From your lens, why is that not the best approach? Why Palo Alto?
Richard Ryskalczyk: From the highest level, I agree completely. I fully understand that there is consensus long this entire area and for good reason. There's just so many continued cyber threats, whether that be from foreign entities or smaller hackers to large governments, that's not going to stop. Then when you layer on top of that, just the continued larger attack surface that's out there. You not only now have your internal network. You have cloud-hosted data, you have all of your employees working remotely on multiple devices. You have a massive long-term secular growth opportunity in this industry. It's a $100 billion-plus market growing 14%, so I understand why everybody likes this area. To your point, there's a lot of fragmentation there. There's a lot of competition in the space. You've got the Ciscos of the world, the Junipers, the Symantecs, the Check Points. All of these, I guess I'd call them the old guard, if you will, much slower growing. You've got some of these newer-guard platforms like a Palo Alto or a Fortinet. Obviously, Microsoft is huge in the space too. Then I think your point is there's a lot of other smaller point solutions like a Zscalar or a CrowdStrike or SentinelOne, so why not just own a basket of all of them? It goes down to, what is the valuation on each of these? What's the valuation relative to the growth rate?
What is their free cash flow look like? We generally stay away from some of the ultra high-growth that are not yet profitable just because it's so difficult to figure out exactly when will they hit profitability. Specifically on some of those point solutions, it's hard to see how in the long run they're able to hold onto their niche or their competitive advantage because there's always the next threat and the next piece of software to come out. What we're really seeing and one of the reasons we like Palo Alto specifically is on top of this just general cybertrend, and we're seeing this throughout all of software, is you've got all these multiple points solutions that these CTOs have at these large enterprises. Basically, their heads are spinning trying to manage all of these solutions, trying to stitch them altogether where there are holes in that. What we see is this continued consolidation down and the number of vendors that these larger enterprises are utilizing, and they're shifting more toward these broader platform solutions. Not only do you have the broad trend, but you've got a player like Palo Alto who's built a really phenomenal platform solution to take care of really all of the main issues within the cybersecurity space today. That's why we're pointing specifically at Palo Alto.
Scott Kassing: Maybe an unofficial prediction, there could be some M&A activity in the space in the future and Palo Alto's, I guess, one-stop-shop reputation gives it an advantage over maybe an Okta which is very specialized, meant to be a complement. Is that fair?
Richard Ryskalczyk: No, I think that's a great characterization. This has been a trend we've followed for many years, as I'm sure many have. Palo Alto went through a period of time where they actually were the consolidators in the industry and they bought up a handful of businesses and then worked to recode and retool everything onto this one platform. They were a consolidator, but yes to your point, like an Okta for instance, that point solution, that can be replicated and when you can replicate that and you toss that onto a broader platform, I think some of those moats that maybe Okta might've had when they first came out, start to erode a little bit.
Scott Kassing: One company, in particular, I'm really excited to talk about that I think is probably the least familiar to our listeners, and that is TransMedics. I came across this company when I saw a stat that said, I believe only around 20%-25% of hearts and lungs that are donated are actually transplanted. That level of inefficiency just boggles my mind. Could you give the listeners just a brief breakdown into what exactly the TransMedics business is and your thesis behind it.
Richard Ryskalczyk: Sure. Yeah. TransMedics, it's definitely our earliest-stage investment as far as the life cycle of the business is concerned. They're still very early on in trying to accomplish what they are looking to accomplish. So the company is, as you pointed out, they're looking to revolutionize organ transplantation. As you mentioned, I think when you look between heart, lung, and liver, maybe only about a third of those overall organs that are donated are actually transplanted. For heart and lung, yes, it is about 20% or so. You check that organ donor on your card, but very low likelihood that those organs actually get donated. A big piece of that is just the limitations of the current system being that you have limited time to transport, you have limited distance because of that, that you can transport these organs. The standard of care right now is that these organs are basically shipped in an Igloo cooler, sitting there on ice essentially. You see all these other advancements in the healthcare industry and you say, how is this possible when you have heart surgeons who have spent a decade in school learning how to do these transplants, essentially going and putting the hard on ice and taking it into a plane and getting it from patient A to patient B. It's pretty astounding that that's the level of this industry. What TransMedics is looking to do is really take, they're now FDA approved, what they call their organ care system, this OCS medical device, which keeps the lungs breathing, the heart beating, the liver going, and allows the transplant team to monitor the vitals of these organs and it allows them to keep these organs basically alive. One, you see what the vitals are, which is a huge piece of it. But two, you can keep them alive for much longer, so you can take them on longer flights for longer distances. It's really looking to completely revolutionize this whole marketplace.
Scott Kassing: For sure. Well, it's got such a good for humanity mission that it's tough to root against. Now I will say the market certainly has been paying attention. I think if I look at it today, the stock is up 37% year to date, so the question I have in my mind is, I love the business, but do I love the stock? How do you go about valuing a company that is fast-growing but it's not yet profitable and we could be entering a recession in late 2023? How are you balancing the risk and the opportunity there?
Richard Ryskalczyk: Sure. Well, when you step back and you look at it from the 40,000-foot view and you say, what's the opportunity here? When they say there are about 17,000 organs between the heart, lung, and liver that are transplanted per year, and TransMedics has a goal of essentially doubling that over time. If they can go and do that, right now, they've got about a 10% share of the current market. They want to become the standard of care. Not only do they want to take a large share of the current transplants that are being done, but they then want to go and double the overall marketplace. If they can even work their way anywhere near toward that, they're almost at a level of profitability now. In the most recent quarter, I think their revenue was up over 160% and they only burned through, I think, I believe about $6 million dollars in cash. They're well on their way to getting toward profitability here. They're not going to keep growing 162% by any means, but if they can keep the growth rate up and hit some of the levels that they want to hit as far as penetrating this marketplace and growing the overall market, there's a ton of upside is still be had from here. Yes, it's had a nice run throughout 2022, and thus far into 2023. But if they're able to, looking a few years out, get to the penetration rates that they think they can from here and get to some profitability I think you could still see the stock substantially higher from here in the not-too-distant future. Now you're starting to talk about not just a price-to-sales metric, you're starting to talk about actual free cash flow at a P/E multiple. We still think there's a lot of upside here.
Scott Kassing: Well, you touched on it at the end. I would say there's a renewed respect for valuation among our listener base post the growth-stock collapse of 2022. When you look at TransMedics, price-to-earnings isn't going to tell you anything. It's in the negatives. It's price-to-sales. A multiple metric that you would encourage an investor who has this on their watch list to focus on or is there a better multiple metrics to keep their attention toward?
Richard Ryskalczyk: Yeah, I mean when we talk about it here internally, we look at it a handful of different ways, so even though they're not currently profitable, we still have gone and built out our model on where we think they can get to as far as penetration rates and growing the overall marketplace, and then you take a look at where they think over the medium term the gross margin can be and work down from there to get toward a profitability level, so you can look at potentially putting earnings multiple on a handful of years out from now and then discounting that back. You can look at maybe it's at 12 times sales right now, but in a few years from now, if they can get to $500 million in revenue in 2027, that sales multiple will contract, maybe that contracts down to 10 times and that's $150 stock and at 20% CAGR from here and based on some of the assumptions we've made, so a certain level of profitability in that maybe that's 50 times earnings multiple for something that's still only maybe at that point 30% penetrated and still has room to substantially grow the overall marketplace as well from there which I think is more than reasonable. There are a lot of different ways to look at it from multiples on current year's sales to, let's do a DCF based on expected profitability too. Let's look a few years out in the more medium-term and put a multiple on it and discount that back, so we've looked at it a handful of different ways.
Dylan Lewis: Coming up after the break, Emily Flippen and Ron Gross return with a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money. As always, people on the program may have an interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Dylan Lewis joined again by Emily Flippen and Ron Gross. We have one more earnings story before we get over to stocks on our radar. Ron, a strong update from Lululemon this week that the leisure company posted 24% revenue growth and raised its outlook for 2023. This seems like good news for a company that probably needed some good news.
Ron Gross: They've had some stumbles of late, but overall a very strong company and you're seeing the real divergence here between the high-end consumer and the lower-income shopper that we discussed earlier where we're seeing some weakness in companies like Dollar General. Lulu, a very strong report as you mentioned, strength internationally up 60% and 79% increase in sales in China as China continues to open up. Comp sales up 13%, and direct-to-consumer up 16%. That's 42% of sales now which is interesting because it's down from 45%, so more in-store sales of late, just something to keep an eye on. Gross margins are up, operating income was up, earnings per share up 54% really strong. On the back of a little bit of a flub in their Mirror business that they acquired relatively recently for $500 million, wrote that down, looking to sell that, moving that business to an app-based solution which I think makes good sense, so they needed to work through that, put up some good numbers to have investors focused on some other metrics and not the Mirror business.
Emily Flippen: Uh, relatively recently, Ron? That was three years ago. That was peak pandemic hype, not surprised at all. I don't think anybody wants to see them when they get out of that home fitness business. Peloton is just continuing to be a dumpster fire, so it's a great example of why it's probably not advantageous for Lululemon to hold onto that, especially when their core business is performing so well. But my big question mark is, how far does the pricing power for this company go? I mean I love my Lululemon leggings. They are expensive but I still have a hard time justifying the purchase, but I do justify it to myself. I mean do they have Apple-level pricing power or is it more like Chipotle where at some point the Chipotle burrito's not worth it now, can they hike the prices? Yes. Will I pay up for Chipotle? Yes, but it doesn't go as high as say my iPhone, so that's my question mark with Lululemon long-term.
Dylan Lewis: Let's get onto our radar stocks. Our man behind the glass, Dan Boyd, is going to hit you with a question. Ron, you're up first, what are you watching this week?
Ron Gross: Go Danny Boy, you're going to love Compass Minerals, CMP. Roots go all the way back to 1844, leading producer of salt for highway deicing. That's about 80% of sales. The rest comes from plant nutrition sulfate of potash, SOP if you will. Now it's not all peaches and cream, and weather conditions have hurt the business. They have a rough time passing on inflationary price increases because contracts are done well in advance, but new leadership is making some really strong moves to improve operations, shore up the balance sheet, improve profitability and they've got some new lines of business around lithium and some other new items that build on their core competencies that should spur growth into the future. It's somewhat of a turnaround play, but it's worth keeping an eye on.
Dylan Lewis: Dan, a question about Compass Minerals.
Dan Boyd: Yeah. Ron, how many cars do you think that Compass Minerals is responsible for completely rusting out in the Midwest, Upper Midwest, and Northeast?
Ron Gross: I'd rather have rust than be unsafe, Dan.
Dylan Lewis: It's a good point. Yeah, I think listeners are used to hearing AI, perhaps not as used to hearing potash. Am I saying that right, Ron?
Ron Gross: Potash.
Dylan Lewis: Potash. On the show, it's nice to work that in, I'm sure there are some folks out there that are happy to hear it. Emily, what is on your radar this week?
Emily Flippen: I'm looking at Veeva Systems. They're a software business aimed at the life sciences industry and they had an unusual quarter this week, mostly because the stock is up something like 15%, which is very unusual for a company that is incredibly stable as Veeva has proven to be, but seasonally strong quarter for them which is wonderful, unexpectedly wonderful. This is a business that has been expanding its margins or looking to expand its margins, growing sales rapidly, but there's a big question mark right now about how much money they're spending on building out the functionality of their core CRM products and with their migration away from Salesforce to their own servers hoping that by 2025 they can really start expanding margins, but there's a good argument to be made that the valuation looks really frothy right now.
Dylan Lewis: Dan, a question about Veeva Systems.
Dan Boyd: In February they became a public benefit corporation and since then their stock is down $90. Emily, is this altruism damaging their business?
Dylan Lewis: Look at that.
Emily Flippen: Shareholders are not happy about the full stakeholder relationship. Now, this is the broader slowdown in software that's causing the reaction we're seeing from Veeva plus their valuation. I'd actually argue that their move to become a public benefit corporation think about all their stakeholders is probably going to be a net benefit for this company over the long term.
Dylan Lewis: Dan, you're really getting two different ends of the spectrum here.
Dan Boyd: You think?
Dylan Lewis: Ron, is giving you earth materials to work with and Emily's having you focus a bit on the future with software, which company are you putting on your watch list?
Dan Boyd: I want to go with Minerals because I just think it's more fun, like salt mines and potash, who doesn't love that stuff? But I think I'm going to go with the public benefit corporation and Veeva this time around, Dylan.
Emily Flippen: A wise choice.
Dylan Lewis: Appreciate it. Emily Flippen and Ron Gross, thanks so much for being here.
Ron Gross: Thanks, Dylan.
Dylan Lewis: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Dylan Lewis. Thanks for listening. We'll see you next time.
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. Dan Boyd has positions in Amazon.com and Chipotle Mexican Grill. Dylan Lewis has positions in Salesforce. Emily Flippen has positions in Chewy, Dollar General, Okta, Peloton Interactive, and Veeva Systems. Ron Gross has positions in Amazon.com, Apple, Check Point Software Technologies, Microsoft, MongoDB, and Target. Scott Kassing has positions in CrowdStrike and Zscaler. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Check Point Software Technologies, Chewy, Chipotle Mexican Grill, Cisco Systems, Compass Minerals International, CrowdStrike, Fortinet, Intuit, Lululemon Athletica, Microsoft, MongoDB, Okta, Palo Alto Networks, Peloton Interactive, Salesforce, Target, TransMedics Group, Veeva Systems, and Zscaler. The Motley Fool recommends Alibaba Group and Five Below. 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 just when you thought you had these things figured out, the market goes ahead and pulls a 180 on you, trades higher, maybe it's the debt ceiling, or maybe it's that some of Friday's data did show a moderating in wage inflation, and that is good news. Dylan Lewis: One of the things that I wanted to dig into, the comments from management in this report was the CEO said they're seeing customers continue to scrutinize technology spend and they are looking to separate the must-haves from the nice-to-haves. They spent virtually the entire call explaining all the different use cases they have, especially with some Chinese companies as well like Alibaba and how they've implemented their solutions to decrease their cost structure, improve efficiency, and it's great.
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In this podcast, Motley Fool senior analysts Ron Gross and Emily Flippen discuss: The debt ceiling resolution, and updates on employment and consumer debt. In addition, The Motley Fool's Scott Kassing talks through three high-conviction stock ideas with Sandhill Investment Management's Richard Ryskalczyk. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Check Point Software Technologies, Chewy, Chipotle Mexican Grill, Cisco Systems, Compass Minerals International, CrowdStrike, Fortinet, Intuit, Lululemon Athletica, Microsoft, MongoDB, Okta, Palo Alto Networks, Peloton Interactive, Salesforce, Target, TransMedics Group, Veeva Systems, and Zscaler.
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I'm Dylan Lewis, joining me in studio, Motley Fool senior analysts Emily Flippen and Ron Gross. Richard Ryskalczyk: Yeah, I mean when we talk about it here internally, we look at it a handful of different ways, so even though they're not currently profitable, we still have gone and built out our model on where we think they can get to as far as penetration rates and growing the overall marketplace, and then you take a look at where they think over the medium term the gross margin can be and work down from there to get toward a profitability level, so you can look at potentially putting earnings multiple on a handful of years out from now and then discounting that back. You can look at maybe it's at 12 times sales right now, but in a few years from now, if they can get to $500 million in revenue in 2027, that sales multiple will contract, maybe that contracts down to 10 times and that's $150 stock and at 20% CAGR from here and based on some of the assumptions we've made, so a certain level of profitability in that maybe that's 50 times earnings multiple for something that's still only maybe at that point 30% penetrated and still has room to substantially grow the overall marketplace as well from there which I think is more than reasonable.
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Why Chewy and Five Below continue to report strong results while other retailers are seeing consumer spending slow down. I think one of the ways that it shows up in the results we saw from Chewy was those Autoship sales, those were up 19% year over year, outpacing overall revenue growth for the business. Dylan Lewis: It's a good point.
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15398.0
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2023-06-10 00:00:00 UTC
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3 Top Stocks and Cryptos to Buy and Hold for the Long Term
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AAPL
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https://www.nasdaq.com/articles/3-top-stocks-and-cryptos-to-buy-and-hold-for-the-long-term
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Instead of focusing on short-term market fluctuations, long-term investors seek stable companies that demonstrate consistent performance over years or even decades. Today, we’ll look at three of the top stocks and cryptos that have delivered steady returns over the long term, generally outperforming the S&P 500 over most trading periods.
Investors should look for opportunities to enter these buy-and-hold stocks and cryptos on a dip. While each has rallied by double-digit percentages this year, market volatility could bring lower prices and the chance to buy at slightly cheaper prices. But keep in mind that these are long-term investments meant to be held for years to come. So don’t miss your opportunity by holding out for a large pullback that may never come.
With that said, let’s dive into why these top stocks and cryptos should be on all investors’ radars right now.
Restaurant Brands (QSR)
Source: Shutterstock
Restaurant Brands (NYSE:QSR), which operates a number of popular restaurant chains including Burger King and Tim Hortons, is delivering strong financial results despite rising inflation and a struggling economy.
The company reported Q1 results on May 2 that beat estimates on the top and bottom lines. Revenue rose 9.6% year over year to $1.59 billion, beating estimates by $30 million, while net income rose 2.6% to $277 million. Earnings per share of 75 cents surpased predictions by 11 cents.
Despite prevailing macro challenges, the company displayed impressive growth in both comparable and system-wide sales, signaling a promising start to the year. Restaurant Brands saw same-store sales increase 10.3% across all its chains, with double-digit jumps at Burger King and Tim Hortons.
The stock has a “moderate buy” rating from the 21 analysts who cover it, with a consensus price target of $78.05. While this is only about 4% above the current share price, the stock has outperformed the market over the long term. Shares are up 109% in the past decade compared with a 93% return for the S&P 500. While this is not eye-popping outperformance, it points to QSR being a steady grower for investors.
Restaurant Brands offers a compelling proposition for growth investors, with the potential for share price appreciation, increasing dividends, and a focus on community and environmental responsibility. Further, the company’s international presence and strategic efforts to enhance operations position it as an attractive long-term investment, particularly as its expansion plans materialize.
Apple (AAPL)
Source: Anna Hoychuk / Shutterstock.com
Apple (NASDAQ:AAPL) really needs no introduction as one of the top long-term investment stocks. The tech behemoth accounts for nearly 50% of Warren Buffett’s publicly traded portfolio via Berkshire Hathaway (NYSE:BRK-B). Any company that Buffett bets big on is one everyone else needs to hold.
If you hold an index fund of any kind (but particularly a market-cap-weighted fund), you’re likely already exposed to Apple. But for those who prefer to pick stocks, there are reasons to consider this nearly $3 trillion company, even at its massive valuation.
With Apple’s stock nearing its post-pandemic peak, investors may be hesitant to buy now. Shares are trading at nearly 31 times earnings compared with a five-year average of around 25 times earnings. Yet, the stock has proven to be a long-term winner, returning an average of 28% a year over the past decade versus a 12% average annual return for the S&P 500.
One of the main reasons to be bullish on Apple is the company’s considerable ability to set prices thanks to its integration of beautifully designed hardware with user-friendly software. Yet, it’s the company’s services division that investors are increasingly focused on. Apple’s services revenue, which includes App Store, Apple Pay, Apple TV+, Apple Music and iCloud, hit an all-time high of $20.9 billion in the most recently reported quarter, up 5.5% year over year.
Bitcoin (BTC-USD)
Source: Shutterstock
The world’s largest cryptocurrency, Bitcoin (BTC-USD), is the obvious choice when it comes to the best long-term cryptos to own. In fact, there are few other projects that hold the same kind of water Bitocin can for a portfolio.
Nearly any investor that held Bitcoin for a significant period of time since its inception to today is up. Sure, there are a few investors that bought near the 2021 peak that may be down on their investment… for now. But every previous significant decline in Bitcoin has been met with a new all-time high. Investors who have shorted this token, over time, have been proven wrong.
I think Bitcoin’s dominance and long-term uptrend are likely to continue, as retail and institutional investors continue to search for alternative assets with low or negative correlations to equities. If we do see a recession materialize (as many experts expect), investments such as Bitcoin could come into vogue again.
There are speculative digital assets and then there’s Bitcoin — the digital gold of crypto. In many respects, the long-term thesis with this token is about as easy to understand as it comes. In that regard, I think this is one of the few moderate-risk cryptos worth buying and forgetting about for a long time.
On the date of publication, Chris MacDonald has a position in AAPL, BRK-B and QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 Top Stocks and Cryptos to Buy and Hold for the Long Term 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: Anna Hoychuk / Shutterstock.com Apple (NASDAQ:AAPL) really needs no introduction as one of the top long-term investment stocks. On the date of publication, Chris MacDonald has a position in AAPL, BRK-B and QSR. Restaurant Brands offers a compelling proposition for growth investors, with the potential for share price appreciation, increasing dividends, and a focus on community and environmental responsibility.
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Apple (AAPL) Source: Anna Hoychuk / Shutterstock.com Apple (NASDAQ:AAPL) really needs no introduction as one of the top long-term investment stocks. On the date of publication, Chris MacDonald has a position in AAPL, BRK-B and QSR. Today, we’ll look at three of the top stocks and cryptos that have delivered steady returns over the long term, generally outperforming the S&P 500 over most trading periods.
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Apple (AAPL) Source: Anna Hoychuk / Shutterstock.com Apple (NASDAQ:AAPL) really needs no introduction as one of the top long-term investment stocks. On the date of publication, Chris MacDonald has a position in AAPL, BRK-B and QSR. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Instead of focusing on short-term market fluctuations, long-term investors seek stable companies that demonstrate consistent performance over years or even decades.
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Apple (AAPL) Source: Anna Hoychuk / Shutterstock.com Apple (NASDAQ:AAPL) really needs no introduction as one of the top long-term investment stocks. On the date of publication, Chris MacDonald has a position in AAPL, BRK-B and QSR. While this is only about 4% above the current share price, the stock has outperformed the market over the long term.
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15399.0
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2023-06-10 00:00:00 UTC
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Guru Fundamental Report for AAPL
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-1
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our 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.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. 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).
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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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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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