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15400.0
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2023-06-10 00:00:00 UTC
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Is AI Taking Tech to the Top?
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AAPL
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https://www.nasdaq.com/articles/is-ai-taking-tech-to-the-top
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In this podcast, Motley Fool senior analyst Tim Beyers discusses:
If happy days are here again for the world of tech.
Why the market might be missing the greatness in CrowdStrike's earnings.
How Marc Benioff found religion when it comes to cutting costs at Salesforce.
The war on cash is evolving. Motley Fool senior analyst Jason Moser explains how the financial times keep changing and what it means for fintech.
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 CrowdStrike
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They just revealed what they believe are the ten best stocks for investors to buy right now… and CrowdStrike 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
This video was recorded on June 01, 2023.
Deidre Woollard: May was big for tech could June be even bigger? You're listening to Motley Fool Money. Welcome to Motley Fool Money. I'm Deidre Woollard and I am joined by Motley Fool analyst, Tim Beyers. Hi Tim.
Tim Beyers: Hey, Deidre, fully caffeinated, ready to go? Lot of earnings.
Deidre Woollard: Lot of earnings, lot of tech. We've got a shiny new month here, last month, big month for tech and the Nasdaq, more tech-focused up nearly 6%. The QQQ, which is be used for this other measure of tech growth. That's up 14% for the trailing 12 months. I don't want to get too optimistic here, but are happy days here again, or should we be a little bit cautious about what we're seeing?
Tim Beyers: We should be a lot bit cautious. [laughs] That's not to be the, hey, get off my lawn guy here. I'm just saying that these things tend to come in spurts and we should expect that there will be skepticism, there will be some reports that disappoint. No, I don't think we're at happy days are here again. That's not the moment that we're in. Where we are in is where things are starting to normalize a little bit. Supply chains may have loosened up a little bit and they were really tight. Maybe there's some normalized spending here. Good players that are well positioned, that have done the work to become more profitable, more efficient. We're seeing those companies maybe doing a little bit better. The market may not be recognizing it yet and that's OK. What's important is that some of these companies are getting structurally better. That's nice to see.
Deidre Woollard: Well, you just mentioned the market might not be recognizing it. That's a little bit of a theme that we saw for a couple of companies I want to talk to you about today. First one being CrowdStrike. It seems pretty great revenue up about 42%. Who doesn't like that? Maybe a little bit of decelerating growth, but the market didn't like this one so much. Why?
Tim Beyers: It looks like because the forecast for annual recurring revenue just wasn't up to snuff. Like the market wanted something closer to 48%. That's not what we got. Whenever the market is forecasting high growth for a forward-looking metric like annual recurring revenue. When the number isn't quite good enough, the market suddenly says, that's it. Growth is slowing down, not good. I don't know that that's true because if we take a look at the CrowdStrike numbers, they were quite good. You mentioned that revenue was up 42%, that's right. Remaining performance obligation also up about 41%. The way to think about remaining performance obligation, there's a couple of components to it, deferred revenue and backlog. But basically this is all of the business that is to come. A lot of it is longer-term business. The fact that that number is as big as it is, it's over 3.3 billion right now, means that there's a lot of growth still to come for CrowdStrike. On top of that, they're generating tremendous cash flows. They're doing very well. There are some good reasons for that. I know you want to get into this. Basically, they're doing better selling to their existing customers.
Deidre Woollard: Let's talk a little bit about that because one of the things they do is they've got modules. The modules as I understand it and you can maybe clarify here they add different aspects of security and intelligence and functionality. One of the things they said was 62% of their customers have five, or more modules. They're growing their customer base at the same time. Is that part of the future growth story here is grow more customers and then sell those customers more things?
Tim Beyers: CrowdStrike is essentially a subscription business. As customers decide that they want to rely on CrowdStrike for more stuff, they're going to rely on it for endpoint security, maybe they're going to rely on identity, or maybe they'll add some other aspects of security. Each of these modules provides some distinct features that you could add on to your CrowdStrike subscription. As you scale up your CrowdStrike experience, the more modules you have, the bigger your bill, the more seats that you have, you're going to end up spending more. It's a good indicator of not just high-growth, but actual profitable growth as you have existing customers adding more modules. The specific breakdown, 62% of the customer base is five, or more modules, 40%, six or more, and 23%, seven or more. As those numbers scale up, we can expect that the existing customers are contributing very high-margin growth to the business, which leads to this tremendous cash flow we see at CrowdStrike. It's an indicator of just how healthy the business is.
Just for the sake of argument here, Deidre, super quickly if we just look at the cash flow numbers for CrowdStrike quarter over quarter, we do the year-over-year number. Profits were about 500 million. That's a massive improvement on a close to a big loss. I think I'm reading it wrong. If I was to say 30 billion-dollar loss, that doesn't seem quite right. I don't think that's right. I think I've got that wrong. The point is the net cash from operating activities year-over-year was up to about $301 million. That's up from about $215 million. Some of that is due to the artificial sweetener of stock-based compensation expense, but not a lot of it. Most of it is coming from better, what we call working capital management. Big increase in accounts receivable. In other words, people are on the phones saying, hey, we need your check. The checks come in, that receivable turns into cash, and that's more cash on the books. They're just getting more efficient, Deidre. When you see a business that's routinely growing well, but also growing profitably and expanding the cash it can generate. As a result of that, you should get very interested. I think the thing with CrowdStrike that's interesting is that a lot of that growth is coming from existing customers who've become increasingly reliant on the platform. That's a good sign.
Deidre Woollard: That's true. There's also long-term fears over cybersecurity that will continue to drive this. I want to get into something else with CrowdStrike because if the day ends in "Y" we're going to be talking to AI and CrowdStrike, they announced Charlotte AI. Sounds like it's a generative AI security analyst. They called it a "force multiplier for security experts." I read the release. It sounds like an automated security help desk, but I think there's got to be more to it, right?.
Tim Beyers: Is there? [laugh] Because I'm going to say not to borrow too much from the great state of Missouri. But you got to show me. I'll believe it when I can see that this is actually happening because the story with CrowdStrike for such a long period of time is they collect a huge amount of data that provides signals of attacks that might be coming, security threats. They've had what's called a threat detection graph for years, basically since the beginning of the business. What's different now? We're going to have a new algorithm that we call Charlotte that's going to take a look at that threat detection data and do something materially different, maybe. But I'll believe it when I see it, Deidre. The good thing is everybody is talking about AI. I'll believe it when I see it. If CrowdStrike can show me that they are getting materially better at detecting threats earlier by virtue of applying Charlotte to the threat detection graph, I'll believe it then. Until then, not part of the thesis.
Deidre Woollard: It makes sense. As you mentioned, they've been really doing AI for years. This is just a new layer onto what they've already done.
Tim Beyers: Yeah, they've been using data for the purposes of protecting their customers for a very long time. This smacks entirely of everybody's got to put AI in a press release. Let's call it Charlotte, put it in the press release and we'll get some bonus points for that. I'm not so cynical to think that that's exactly what they did. I'm sure they're actually working on something, but it's way too early to give them any kind of credit for actually achieving something. Maybe they will. Then, hey, it'll be a big bonus if they do.
Deidre Woollard: Let's pivot and talk Salesforce because their earnings came out too. With Salesforce, one of the things they said they were going to do is they were going to improve margins and their margins are updated. They did it. They were very happy about it on theearnings call Marc Benioff kept using the terms incredible and amazing. This is a relatively mature business. Should we be focused on those margins? Should we be looking at revenue growth? What are we looking for from Salesforce?
Tim Beyers: We are looking for efficiency, incredible and amazing are superlatives we shouldn't be using. You know what? Marc Benioff is Marc Benioff. He has every right to be saying those things and we should expect that from him because he is a cheerleader, he's a cheerleader CEO. If he wasn't saying those things, I'd be worried. But should we be saying those things? No. Not really. But he is right about one thing, the margins are definitely better. If you just look at the core income statement and the percentages here, total operating income, the operating margin was 5%. This is where they are on a gross basis here. That is up significantly. If you consider the 8% of operating expense went to restructuring, without that restructuring it would be a 13% operating margin. They are definitely trending in the right direction here. There's no doubt about that. Also, the cash flow statement looks, honestly, Deidre, I don't really want to say that Benioff has got into religion here. But off-air, I was telling you this looks like the difference between a formerly drunk sailor that has gotten sober. That's what it looks like. Which is a terrible analogy, but it does look like that when you look at the cash flow statement, not only worth the cash from operations up, but the contribution from stock-based compensation expense was down. All of the areas where you could generate efficiency in terms of improved working capital were up. Like the accounts receivable, more checks coming in, 6.1 billion added by accounts receivable. That's awesome. That's up from 5.8 billion in the same period a year ago. Bigger contribution from depreciation and amortization, net income was up, most things were up.
Here's the other thing that I find absolutely fascinating, Deidre, they are buying back stock and paying down debt. They are actually buying back stock and retiring it. The diluted share count was down. They did buy back quite a bit of stock, two billion worth. They paid back a billion dollars worth of debt. Most of that does look like it's coming through the organic generation of cash. Most of the money to pay for that is coming from organic cash generation, that's new. This is, I would still say the beginning. But let's give Salesforce some credit for showing some real operating muscle here. This is different.
Deidre Woollard: Yeah, it is different. It came at a bit of a cost here. They had layoffs.
Tim Beyers: Yeah it did.
Deidre Woollard: Really trimmed down their real estate portfolio. Wanted to talk to you a little bit too about Salesforce and AI because we have to talk about AI. On the call they talked a lot about data security. They talked a lot about large language models that are private or protecting, that basically allowing companies, their corporate companies to use generative AI without exposing their private data to the larger language models. How confident do you feel about Salesforce's AI efforts in general?
Tim Beyers: I'm sorry I'm going to be get off my lawn guy, [laughs] again. I think it's too soon to know that. Large language models are arguably dumb to begin with because they are in constant learning mode and they need a lot of work. Honestly, the large language model is really only going to be as good as the dataset that it applies to. If you can apply really good rigor to the dataset and then apply a really good algorithm or a really good AI to that dataset, you might be able to get some really good results and really interesting things. For example, I do think that there is an opportunity for Salesforce to do fascinating things with private data that a customer generates through Slack, for example. Then allowing AI to teach your internal Slack environment to be smarter, to automate some workflows that are common to your business, I do. Let me be clear. I do think there is an opportunity here, but to give them credit right now would be bananas. I would not do that. It's way too soon to give them credit for that. As an idea, sure. But you have to figure out the other side of it. Having the large language models in and of themselves, immaterial. What you do with a well-trained, a well-designed, well organized dataset and applying a good large language model to it or a good algorithm to it, that's where you get real magic. I'm not even close to giving them any credit for this yet. But as an idea, do I want them to integrate some AI and some good AI discipline into Slack? You're darn, I do. I want them to be doing that right now because if they don't and they don't make Slack more valuable, then I think they face the prospect in the next 24 months of a pretty large goodwill write-off. As a shareholder of Salesforce, I do not want that.
Deidre Woollard: Well, you called Marc Benioff a cheerleader CEO. He's a big charismatic guy and maybe he doesn't play so well with others. He's had a couple of co-CEOs leave. Looking to the future of Salesforce, do you think he's learned his lesson? Do you think he can partner with another co-CEO? Well, do you have to leave in order for succession to happen? Looking at the future of Salesforce leadership, what do you see?
Tim Beyers: So are you asking me is there a Kendall Roy for Marc Benioff? I don't know. I mean, to me, I look at this as the Benioff show and it will be the Benioff show until it's not the Benioff show. I think that's OK. Marc Benioff as the leader of this company, has been outstanding. He is a visionary leader. The fact that they are all generating some real operating discipline while he is still leading the company, I think is a very good sign. But I really frame this Deidre as Benioff will at some point leave. There will be the Tim Cook equivalent for Salesforce. At least I think that is the ideal scenario. What people may not remember, I think a lot of people do remember this. But what they may not remember, is it Tim Cook for a long time was chief operating officer and he was outstanding at a turning operational discipline into a weapon for Apple at a time when Steve Jobs was still CEO. There was a point at which he absolutely killed it by going and buying up huge amounts of RAM in Asia, he just essentially cornered that market and it helped the iPhone become a much richer device. They got the best product, the best components they could put in the iPhone. They took a huge lead on some of their device competitors at the time and they really never relinquished it. I mean, Cook made moves that made Jobs look smart, and he has since become an outstanding leader of Apple. I think the next phase for Salesforce is, who's the Tim Cook of Salesforce? I don't know who that is. Right off the top of my head. But I think that's what I'm looking for.
Deidre Woollard: That makes sense. Well, Tim, I always love talking tech with you. Thank you so much for your time today.
Tim Beyers: Thanks, Deidre.
Deidre Woollard: Six years ago, Jason Moser put together a War on Cash Basket of Stocks. Alex Friedman checked in with Moser about those companies and how the trend is shaking out.
Alex Friedman: It's certainly been a fun point of conversation over the last several years. The War on Cash Basket, just for a little background for those who don't know, I think most probably do at this point. But The War on Cash Basket ultimately was just a collection of four companies that we felt were playing a very important role in the evolution of the payments based the way money is moving, so to speak. It's made up of Mastercard, Visa, PayPal, and Square. Ultimately the idea is to devote equal amounts to each company. You have four companies, you divide that by four, you get 100% by that before you can put about 25% into each company. Giving yourself exposure to a nice little risk ladder there of some stalwart type companies and Mastercard and Visa, a little bit of a more of a mid-range risk and PayPal and then a little bit of a riskier idea in Block formerly known as Square.
Jason Moser: Looking over the last six years, how has it performed during the pandemic and what's going on now?
Alex Friedman: If you look at the actual performance since inception and maybe go back to July 24, 2017. I mean, it's certainly been a bumpy ride to say the least. But I mean, overall, since inception, the basket is performed very well compared to the market. The basket itself, the collection of four companies is up just a bit over 110%, 112% to be exact versus the market's performance over that same stretch, which is about 88%. Certainly, we had seen that delta a little bit greater at other times. But for the most part, the basket has done what I was hoping it would do, make money and outperform the market. Now you did mention during the pandemic and I think that's something important to break out here because while the six-year performance for the basket has been very encouraging, we saw over the stretch of the last three years or so, just a lot of volatility and a lot of change in some of what these companies are really trying to do. Just looking at the dates going from March 1st of 2020 to the end of 2023, it was a little bit of a different story. The basket actually performed fairly poorly when we thought it would have probably performed better. Now I think it performed better in the early onset. But overall, it's not done so hot. I think a lot of that has been due to performance from PayPal and Block. Whereas Mastercard and Visa they've tow the line, so to speak and fill their role as relatively stable performers. But again, going back to since inception, you go back to inception, the basket is performed very well, so I'm pleased.
Jason Moser: Will definitely dive into the performance of some of these stocks in a second. Before we do, I'm curious, how did the tailwinds continue to form as consumers use cashless and less around the world?
Alex Friedman: Yeah, I mean, you see these numbers quoted everywhere. I mean, the one thing to always keep in mind, this is such a big market opportunity. But we're talking about trulyglobal marketopportunity. It breaks down to how often are people using cash? I think the general trend is still very much intact. People are using cash less and less. I mean, it didn't require a pandemic for that trend to begin. I think that the last three-years accelerated that to an extent. But I mean, if you look at some of the numbers out there, according to Pew Research today roughly foreign 10 Americans, around 40% say that none of their purchases in a typical week are paid for using cash. That's up from 29% in 2018 and 24% in 2015. On a similar note there, you look around the world there. European Central Bank recently pulled some statistics on this, and cash was used for 59% of point-of-sale transactions in 2022. That was down from 72% in 2019. I think all around the world, we're seeing this trend play out. We're just moving more and more toward the digital movement of money.
Jason Moser: The best-performing stock in the basket has been Mastercard, which is up 187% since 2017. When it comes to Mastercard's business performance, what factors do tribute to the success we've seen with its stock?
Alex Friedman: With Mastercard and alone Visa in this conversation as well just because the two businesses are so similar and they serve a very similar role in this basket. I mean, they've just done such a good job in leveraging their network to do more. I mean, what we've always liked about Mastercard is the business model, is that toll booth model where they own the payment rails, where that money has to go along their rails to get from point A to point B and they collect just that little toll, that little interchange along the way that really affords them that attractive margin picture in steady, reliable growth. This is a company that's going to be growing 30, 40, 50% a year, but it's very steady. It's a steady, reliable grower, and that's the point behind it. But I think with Mastercard and Visa similarly, what we've seen these businesses do is take these massive networks that they've built out through the years, through this physical card business that we've all come to know and love, and they've really just done a good job of leveraging the network to do more. You're talking about capturing new payment flows, new ways that money is moving around, disbursements, remittances, commercial point-of-sale, business-to-business payments, consumer bill payments, and even buy now, pay later. I mean, we're seeing these businesses starting to take their networks and build the technology on top of that to do more. With Mastercard, it's not just a payments business. I mean, they bring value-added services to their customers, the merchants and consumers alike. We're talking about things like cyber and intelligence solutions, data and service. You get insights, analytics, consulting, and marketing. Again, they're just doing a very good job of leveraging the network to extract more value for both the consumers and the merchants.
Jason Moser: Up next is PayPal. All the companies and The War on Cash Basket have more than doubled since you put the basket together in 2017, except for PayPal, which is only about 5%. This has been a very volatile stock, initially rising 420% in the summer of 2021 and then falling close to 80% to its current price of about $62 today. I'm curious what are some of the main factors you attribute to the roller coaster ride that PayPal investors have faced over the years.
Alex Friedman: It's definitely been a roller coaster ride. To me, there's a lot going on here with PayPal, and I think there can be a lot of reasons as to why the sentiment is so sour really today on the business. I mean, I think it's fair to say that over the last three years resulted in a lot of overconfidence. Not just in regard to PayPal, but I think a lot of businesses over the last three years saw things change so quickly. We saw so much growth being pulled forward at the time feeling like everything was going to be done differently from here on out. I mean, this was just like this moment where everything was just going to pivot and we're going to be doing things so much differently going forward. Certainly, things have changed to an extent. I mean, you look at the way things are going today, I don't think it's to the extent that a lot of folks envisioned earlier on. In short, I think you were back to normal in a lot of ways now. I don't know that PayPal necessarily made a lot of the right moves along the way to instill a lot of confidence for investors as to where they are right now. It is conflicting. I mean, when you look at the actual business, it's performing well. It's not a bad business. But they made some bets, they've made some investments and some decisions along the way that I think caused investors to maybe take a little bit of a step back and wonder exactly what's really driving the bus here. PayPal, it's an involved business.
It's not just PayPal. I mean, you've got PayPal, but then you have Venmo, you've got Braintree, you've got Xoom, you get Honey and Zettle. I think one of the biggest challenges with PayPal quarter-in and quarter-out is management has not done a very good job at all in really breaking out the business and giving us more granularity into how each facet of the business is performing. I mean, we get information on Venmo because Venmo is top of mind for so many people because so many people use it. But other than really understanding where PayPal and Venmo stand, we just don't have much insight as to how these other facets of the business are contributing. I think that's been a big point of contention with a lot of investors, myself included. But folks that I know who cover the business and then folks that I talk about the business with, they feel the same way. We want more information and we may get that. We are seeing a situation here where the CEO, Dan Schulman, is going to be stepping down. Now he could be there through the end of the year. I hope honestly that he's not. I don't have anything against them. I think he could have done a better job. But the bottom line is, the longer that he's there, the more uncertain things are. We know that old saying, the market hates uncertainty. Right now, there's a lot of uncertainty in regard to PayPal, in how they're reporting the data, in how the business is performing. There's a lot of uncertainty in regard to leadership. If you remember, not all that long ago, they really had these aspirations to build out that "super-app" that could do all sorts of things and you would live your entire financial life in PayPal. Those rarely work out. Most consumers don't want to place all of their eggs in one basket.
As an example, when we saw PayPal touting that they were going to bring stock trading into their platform. I mean, it sounds great. It makes for a good headline. But honestly, why? Why would they do that? What can they do to make that experience better than the companies that are already out there doing it? I mean, you're talking about something that a lot of other companies out there do very well already. There's no way it's going to be any meaningful moneymaker for PayPal. It's wasted resources, wasted time. That was just one example of the many little things that they've been doing along the way that I think have taken their attention away from the core business. It's encouraging to see that they're getting back to the core focus of the PayPal app, the digital wallet, the checkout experience and really utilizing the strengths of the business in PayPal, Venmo, and Braintree. We may see them trimming this business along the way. There is some word out there that they're thinking about unloading Xoom, the X-O-O-M Xoom, which is that remittance company they acquired several years back. I wish I could tell you why and I wish I could tell you whether that was a good idea or not, but we don't ever get any data regarding how Xoom is performing, and that speaks to what I was saying earlier about management just not really giving us as much information as we'd like. But when you take a step back and you look at the actual business itself again, I mean, it generates a ton of cash. It's got this network of 400 million plus users. It's pushing through one-plus trillion dollars in volume through its networks. It's got two of the most popular payment platforms in PayPal and Venmo, a tremendous back-end infrastructure provider in Braintree. I mean, there are a lot of things going for it, but clearly, the sentiment right now on PayPal is very sour.
Jason Moser: One last question. When you think about owning these stocks through the different periods of volatility, what is the biggest takeaway that you've learned as an investor?
Alex Friedman: Well, I think my biggest takeaway is just that really this is the purpose that the basket serves. I mean, the idea from the very get-go was to be able to identify a really big market opportunity and focus less on trying to pick the winner of that market opportunity and more on trying to pick the winners. Because as often is the case, when we see these large market opportunities, it's not about just one winner. I mean, there are going to be a lot of businesses that succeed. It's a rising tide that's going to lift a lot of boats. I remember in the very beginning when I opened up our Next-Gen Supercycle service, the 5G service, and I recommended all four of these companies in that service. This was three years ago, I think. At the time, I remember some people saying I can't believe you're recommending Visa and Mastercard. Those are dead in the water. The world is moving past those businesses. It's all about Fintech, and PayPal, and Block, and whatnot. I thought, OK, I appreciate what you're saying, but let's remember those businesses hold still a strong position in the value chain. Lo and behold, fast-forward today and Mastercard and Visa are the two businesses that are really holding their own, whereas Block and PayPal are going through some more challenging times. I think really for me, it's really reinforced the purpose of the basket in the first place, and it's always fun to identify these bigger market opportunities and then really try to find multiple winners in the space because that's usually how it shakes out.
Deidre Woollard: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy yourselves stocks based solely on what you hear. I'm Deidre Woollard. Thanks for listening. We'll see you tomorrow.
Alex Friedman has positions in Apple, CrowdStrike, and Salesforce. Deidre Woollard has positions in Apple, Mastercard, and Visa. Jason Moser has positions in Apple, Block, Mastercard, PayPal, and Visa. Tim Beyers has positions in Apple and Salesforce. The Motley Fool has positions in and recommends Apple, Block, CrowdStrike, Mastercard, PayPal, Salesforce, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, short January 2025 $380 calls on Mastercard, and short June 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I'll believe it when I can see that this is actually happening because the story with CrowdStrike for such a long period of time is they collect a huge amount of data that provides signals of attacks that might be coming, security threats. But The War on Cash Basket ultimately was just a collection of four companies that we felt were playing a very important role in the evolution of the payments based the way money is moving, so to speak. I think really for me, it's really reinforced the purpose of the basket in the first place, and it's always fun to identify these bigger market opportunities and then really try to find multiple winners in the space because that's usually how it shakes out.
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They talked a lot about large language models that are private or protecting, that basically allowing companies, their corporate companies to use generative AI without exposing their private data to the larger language models. The Motley Fool has positions in and recommends Apple, Block, CrowdStrike, Mastercard, PayPal, Salesforce, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, short January 2025 $380 calls on Mastercard, and short June 2023 $67.50 puts on PayPal.
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If you can apply really good rigor to the dataset and then apply a really good algorithm or a really good AI to that dataset, you might be able to get some really good results and really interesting things. I think one of the biggest challenges with PayPal quarter-in and quarter-out is management has not done a very good job at all in really breaking out the business and giving us more granularity into how each facet of the business is performing. Deidre Woollard: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy yourselves stocks based solely on what you hear.
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Maybe a little bit of decelerating growth, but the market didn't like this one so much. Deidre Woollard: Let's talk a little bit about that because one of the things they do is they've got modules. Deidre Woollard: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy yourselves stocks based solely on what you hear.
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15401.0
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2023-06-10 00:00:00 UTC
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3 Things Apple Can Learn From Meta Platforms About Virtual Reality and the Metaverse
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AAPL
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https://www.nasdaq.com/articles/3-things-apple-can-learn-from-meta-platforms-about-virtual-reality-and-the-metaverse
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Apple (NASDAQ: AAPL) is the creator of the iPhone, iPad, and Mac line of computers and notebooks, to name just a few of its iconic products. But in June, it revealed its first new platform since 2014 -- the Vision Pro virtual reality (VR) headset -- or "spatial computer" -- as Apple is calling it.
It enters an arena dominated by Meta Platforms (NASDAQ: META), which became synonymous with virtual reality when the company changed its name from Facebook in 2021. The social media giant has been focused heavily on developing virtual worlds, often referred to as metaverses.
But it hasn't been smooth sailing -- Meta has burned tens of billions of dollars on the project, much to the disappointment of investors, and it hasn't exactly paid off for the company. Will Apple's Vision Pro run into the same challenges? It's too early to know, but here's what the company can learn from Meta Platforms' journey so far.
1. Prepare to lose money
Meta has always been a software company, but it acquired virtual reality headset maker Oculus in 2014, which it used as the base for its own hardware. But that initial $2 billion acquisition was just the tip of a gigantic iceberg.
Meta houses all of its metaverse hardware and software development under its Reality Labs division, and it started disclosing standalone financials for the segment in 2019. Since then, Reality Labs has generated a mind-boggling $39 billion in operating losses.
The bigger problem is that Reality Labs has only delivered $6.4 billion in revenue for that investment, which signals there isn't a great deal of interest among consumers. Apple hasn't yet disclosed the size of its development costs for the Vision Pro, but we do know the unit is priced at $3,499. That is seven times higher than Meta's new Quest 3, which will sell for $499 upon release later this year.
That might be an indication of how much money Apple needs to recoup.
2. Consumers aren't yet convinced
The metaverse has become a relatively loose term to describe immersive virtual experiences, even if they're not running on a VR headset. The online game Roblox, for example, is considered to be a metaverse -- its users create an avatar and can roam freely through an enormous virtual world.
Meta Platforms and its CEO, Mark Zuckerberg, believe the metaverse is the future of social and professional networking. Rather than viewing someone's profile on Facebook using a smartphone, people will be able to enter virtual reality to interact with each other as avatars of themselves. They'll have the ability to meet, play games, and even go shopping for digital goods and services.
But consumers haven't responded well to Meta's early efforts. Last year, Zuckerberg said he believed 1 billion people would eventually use his company's metaverse, which isn't that farfetched given that it has 3.8 billion users across all of its social media platforms today. But Meta set a modest target to attract 500,000 users to its Horizon Worlds metaverse by the end of 2022, yet it fell way short, only managing to reach 200,000.
More broadly speaking, one recent survey pointed out that only 48% of Americans currently use a metaverse in some form, and more than half of them said they spend less than five hours per month in those virtual worlds.
Since the average smartphone user spends more than three hours per day looking at their device, the metaverse's share of screen time is tiny right now -- is this really a market that needs its own hardware? Are virtual reality headsets even necessary?
Apple is pitching the Vision Pro as an entertainment platform where the user can watch movies and browse the internet. In other words, it could occupy some of the time that would otherwise be spent on smartphones. That's something to fall back on, but it does come with a hefty price tag, as I mentioned earlier.
3. A closed ecosystem probably won't work
Interoperability is expected to be a huge part of the metaverse. In other words, there's an expectation that all virtual worlds will plug into one another to form one giant virtual universe. Theoretically, this will encourage more developers to participate, because they'll immediately be part of an ecosystem with millions (or billions) of potential users crawling their creation.
But Apple has built its empire on closed ecosystems. From its iOS operating system to its App Store, the company has always prioritized maintaining full control over the products and services it allows on its devices. Moreover, when it comes to mobile applications, it has charged developers 30% of their revenue for the privilege of operating in the Apple ecosystem.
The company can adopt that same model for its VR headset, but at a price point of $3,499, it shouldn't be surprised when consumers opt for a more open, customizable platform. As a result, the question is whether developers will want to invest in building applications for Apple's Vision Pro.
Most consumers would consider a VR headset to be a luxury item. On the other hand, 85% of Americans own a smartphone; it's considered a necessity because it functions as more than a source of entertainment. Apple's iPhone is a great product in an industry with enormous penetration, whereas virtual reality is very much a niche segment.
Meta is already an advocate of the interoperable approach, and since its flagship VR headset is so much cheaper, it could experience far more uptake in the long run -- and, in turn, become the platform of choice for developers.
If Apple wants the Vision Pro to be successful, it might have to approach this new industry with a more open mind. But before that even matters, the industry itself still has to prove its own staying power.
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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. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Roblox. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is the creator of the iPhone, iPad, and Mac line of computers and notebooks, to name just a few of its iconic products. The bigger problem is that Reality Labs has only delivered $6.4 billion in revenue for that investment, which signals there isn't a great deal of interest among consumers. The company can adopt that same model for its VR headset, but at a price point of $3,499, it shouldn't be surprised when consumers opt for a more open, customizable platform.
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Apple (NASDAQ: AAPL) is the creator of the iPhone, iPad, and Mac line of computers and notebooks, to name just a few of its iconic products. But in June, it revealed its first new platform since 2014 -- the Vision Pro virtual reality (VR) headset -- or "spatial computer" -- as Apple is calling it. Apple's iPhone is a great product in an industry with enormous penetration, whereas virtual reality is very much a niche segment.
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Apple (NASDAQ: AAPL) is the creator of the iPhone, iPad, and Mac line of computers and notebooks, to name just a few of its iconic products. But in June, it revealed its first new platform since 2014 -- the Vision Pro virtual reality (VR) headset -- or "spatial computer" -- as Apple is calling it. It enters an arena dominated by Meta Platforms (NASDAQ: META), which became synonymous with virtual reality when the company changed its name from Facebook in 2021.
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Apple (NASDAQ: AAPL) is the creator of the iPhone, iPad, and Mac line of computers and notebooks, to name just a few of its iconic products. But in June, it revealed its first new platform since 2014 -- the Vision Pro virtual reality (VR) headset -- or "spatial computer" -- as Apple is calling it. Last year, Zuckerberg said he believed 1 billion people would eventually use his company's metaverse, which isn't that farfetched given that it has 3.8 billion users across all of its social media platforms today.
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2023-06-10 00:00:00 UTC
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3 High-Yield Warren Buffett Dividend Stocks to Buy in June
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AAPL
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https://www.nasdaq.com/articles/3-high-yield-warren-buffett-dividend-stocks-to-buy-in-june
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) doesn't pay a dividend, and for good reason. Warren Buffett believes he can get investors a better-compounded return by reinvesting capital instead of distributing it. And given Berkshire's performance, he's been right.
But many companies with low organic growth don't have the opportunities that Berkshire has. Or they might think that paying a dividend is a core part of their promise to investors. Chevron (NYSE: CVX) and Bank of America (NYSE: BAC) are two of the largest Berkshire Hathaway stock holdings. And both have a dividend yield of over 3%.
Meanwhile, Berkshire-backed Vitesse Energy (NYSE: VTS) is a much lesser-known play with a yield exceeding 8%. Here's why all three stocks are worth a look, according to these Motley Fool contributors.
Image source: Getty Images.
A dip in oil prices provides a great entry point for investors
Scott Levine (Chevron): The fifth largest position in the Berkshire Hathaway portfolio is Chevron, one of several energy companies that the Oracle of Omaha has deemed fit for investment.
While it's not as sizable a position as it had been a few months ago (Berkshire sold about $6 billion in Chevron stock last quarter), it still figures prominently among the company's positions, representing 6% of the portfolio's holdings. The decision to pare that position, however, shouldn't dissuade investors from energizing their portfolios with the oil supermajor and its juicy 4% forward-yielding dividend.
Of all the dividend-paying energy stocks in the oil patch, what's so appealing about Chevron? The company has demonstrated a steadfast commitment to rewarding shareholders. For 36 consecutive years, Chevron has hiked its distribution to shareholders.
Should Chevron return $1.51 per share to investors in the third and fourth quarters of 2023 (as it has done in each of the first two quarters of the year), it will mean the company will have increased its dividend at a compound annual rate of nearly 4.5% since 2013.
Skeptics might question the company's ability to sustain the dividend in light of the cyclical nature of oil prices. Its 36-year track record of hiking its dividend -- during which there have been plenty of ups and downs in energy markets -- suggests management is adept at allocating capital.
And it's taking a conservative approach to leverage to ensure its financial health. As of the end of the first quarter, Chevron had a ratio of net-debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) of 0.1.
With the benchmark West Texas Intermediate crude trading at around $70 per barrel, shares of Chevron have dipped, providing investors with a great entry point. The stock subsequently is trading at a very attractive 10.4 times forward earnings, making today a great time to pick up shares and hold them for years to come.
A high-yield energy stock for income-seeking investors
Lee Samaha (Vitesse Energy): If you are looking for a passive income stock backed by Berkshire Hathaway, then Vitesse Energy is as good as you will get. The company isn't an owner/operator of oil and gas fields. Instead, its management team, led by industry veteran Bob Gerrity, acquires diverse minority interests in oil and gas assets operated by leading oil companies.
As of May, Vitesse had interests in 6,475 productive wells, primarily in the Bakken oil field in North Dakota. The operators propose and carry out the drilling and completion of the wells.
Meanwhile, according to Vitesse's Securities and Exchange Commission filings, "We assess each drilling and completion opportunity on a case-by-case basis and participate in wells that are expected to meet a desired return based upon estimates of recoverable oil and natural gas reserves."
As such, you can think of Vitesse as being, at least in large part, a play on management's ability to successfully allocate capital toward the suitable wells rather than being yet another oil-led play on energy prices. Indeed, management uses hedging to try to smooth out the volatility in oil prices, something that limits the upside from higher prices while reducing the downside.
Hedging is never an exact science, and most oil and gas investors want at least some exposure to higher energy prices, but this strategy helps give confidence that the dividend will prove sustainable if management continues to invest successfully.
Berkshire's second-largest holding is worth a look
Daniel Foelber (Bank of America): Berkshire owns many famous income-producing stocks, like Coca-Cola and Procter & Gamble -- two Dividend Kings that have paid and raised their dividends annually for over 50 consecutive years. But the issue with these companies is that growth is slowing and both stocks trade at premium valuations relative to the S&P 500.
A better value now seems to be in financial services, particularly through a stock like Bank of America, Berkshire's second-largest public equity holding behind Apple.
Bank of America stock has been under pressure for months in response to the fallout from defunct institutions like Silicon Valley Bank and the stress on regional banks. Even Buffett's partner Charlie Munger has warned about ripple effects throughout the system.
But Bank of America has a lot of things going for it. For starters, it is diversified and is far more secure than regional players. Perhaps that is why Berkshire Hathaway kept its Bank of America stake steady and sold off positions in Bank of New York Mellon and U.S. Bancorp in the first quarter.
Bank of America stock currently has a price-to-earnings (P/E) ratio near a five-year low, but its net interest income and dividend yield are near five-year highs.
BAC PE Ratio data by YCharts. TTM = trailing 12 months.
Although Bank of America tends to have a below-market valuation, a P/E ratio under 10 and a dividend yield over 3% are key levels that value investors might want to pay attention to. High interest rates are generally good for banking stocks. But an ongoing concern for banks is the declining health of the consumer, which would affect home and auto loans.
Bank of America isn't a screaming buy. But it seems like a better all-around value than other blue chip dividend stocks right now.
10 stocks we like better than Chevron
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Chevron wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of June 5, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Vitesse Energy. The Motley Fool recommends Chevron 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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With the benchmark West Texas Intermediate crude trading at around $70 per barrel, shares of Chevron have dipped, providing investors with a great entry point. Meanwhile, according to Vitesse's Securities and Exchange Commission filings, "We assess each drilling and completion opportunity on a case-by-case basis and participate in wells that are expected to meet a desired return based upon estimates of recoverable oil and natural gas reserves." Hedging is never an exact science, and most oil and gas investors want at least some exposure to higher energy prices, but this strategy helps give confidence that the dividend will prove sustainable if management continues to invest successfully.
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A dip in oil prices provides a great entry point for investors Scott Levine (Chevron): The fifth largest position in the Berkshire Hathaway portfolio is Chevron, one of several energy companies that the Oracle of Omaha has deemed fit for investment. Berkshire's second-largest holding is worth a look Daniel Foelber (Bank of America): Berkshire owns many famous income-producing stocks, like Coca-Cola and Procter & Gamble -- two Dividend Kings that have paid and raised their dividends annually for over 50 consecutive years. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Vitesse Energy.
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A high-yield energy stock for income-seeking investors Lee Samaha (Vitesse Energy): If you are looking for a passive income stock backed by Berkshire Hathaway, then Vitesse Energy is as good as you will get. Berkshire's second-largest holding is worth a look Daniel Foelber (Bank of America): Berkshire owns many famous income-producing stocks, like Coca-Cola and Procter & Gamble -- two Dividend Kings that have paid and raised their dividends annually for over 50 consecutive years. See the 10 stocks *Stock Advisor returns as of June 5, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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Should Chevron return $1.51 per share to investors in the third and fourth quarters of 2023 (as it has done in each of the first two quarters of the year), it will mean the company will have increased its dividend at a compound annual rate of nearly 4.5% since 2013. The company isn't an owner/operator of oil and gas fields. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Vitesse Energy.
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15403.0
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2023-06-10 00:00:00 UTC
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Entertainment, Guilds, Streaming, and AI
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AAPL
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https://www.nasdaq.com/articles/entertainment-guilds-streaming-and-ai
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In this podcast, Motley Fool senior analyst Jason Moser discusses:
What a potential Directors Guild deal means for entertainment.
The challenges facing streamers as they look for more ways to profit from content.
Whether Apple can take headsets out of its gaming niche.
A simple pack of casino playing cards leads Motley Fool producer Ricky Mulvey and senior analyst Asit Sharma on an exploration of how old products can become new again.
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 Walmart
When our analyst team has an investing 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 Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Stock Advisor returns as of June 5, 2023
This video was recorded on June 05, 2023.
Deidre Woollard: Directors want you to know AI is not a person, and Apple is looking to a mixed reality revolution. You're listening to Motley Fool Money. Welcome to Motley Fool Money. I'm Deidre Woollard, and I'm joined in studio by Motley Fool Analyst Jason Moser. Hey, Jason. How are you doing?
Jason Moser: Hey, Deidre. I'm doing fine. How about you?
Deidre Woollard: Doing good. I want to talk about entertainment with you today. The Directors Guild, they've reached a tentative deal with the Alliance of Motion Picture and Television Producers. It seems like a pretty good deal. It's got some wage increases, better benefits, higher streaming residuals. The writers' strike is still going on, but it seems like we're one step closer to getting back on track. Should those of us who hold entertainment stocks and really like streaming entertainment be breathing a sigh of relief?
Jason Moser: I think for sure it's a step in the right direction. I would say I think some are going to weather this better than others, to be sure. I think we're seeing a lot of damage has already been done here though, unfortunately, in that a lot of these shows are facing these long delays. You look at some of these really popular shows that have recently rolled out on HBO is a good example. You've got The Last of Us, and you've got House of the Dragon, two very well-received popular shows, and it's looking like this is going to contribute to a much longer span of time that goes between the next season wrapping, so that as a consumer is not ideal. As investors, probably not so ideal because it's not ideal for consumers, so it leads me to the idea here that some of these companies are going to be able to deal with this better than others. I think the bigger companies, the companies that have been in the space a little bit longer and have built out these streaming models and these libraries with all of this content, they've gotten more to fall back on while we wait for all of this to play out.
Some of the obvious names, you look at something like Netflix, of course, because they really were the first to this space, I think. You look at Warner Brothers Entertainment, what they have with HBO and with, ultimately, what is Max now. That's a tremendous library of content. Disney, another good one that'll be able to deal with this, so yeah, step in the right direction, for sure. As you said, it has not come to a conclusion yet. A lot of these streaming services going to have to rely on some of their libraries of content, so to speak, to be able to fill the time because this content does not live a very long life anymore, particularly when these companies drop the whole season at once. People binge through it, they finish it in a day or two, and it's over. You can start to see a lot of these services are reverting back to, we're going to release these more linearly, and so you're seeing episodes coming out every week as opposed to all at once. It's very interesting to see between that and the advent of advertising the space, how streaming is evolving, because it is not like the streaming that we knew from, just maybe, 10 years ago.
Deidre Woollard: It's definitely evolving. One of the things I think you just mentioned is the idea that some of these new heads, if we're waiting a year or so for another show, maybe we forget about them a little bit. That could also be a concern.
Jason Moser: Easily. It slips under the radar. You forget it happened, and then all of a sudden, oh wait, I forgot about that one. The longer that time passes, the greater that risk becomes. Again I think that does speak to the advantages in releasing this content more slowly. It does feel like we are seeing more and more streaming services relying on that. Netflix is the one that really started all of this. They were the ones. They're famous for dropping all the content all at once, and people just binge right through it. I think as consumers, we've enjoyed that luxury for a while. The problem is it's not the most sustainable model. I don't think it really works out as well for the business in the long run, which is why we're starting to see some of these businesses reverting back to the linear fashion and releasing things on a timely basis as opposed to all at once.
Deidre Woollard: Absolutely. In the proposed deal, there's this language, it really stuck out to me, which is this idea they say the agreement that AI is not a person and that generative AI cannot do a director's job. I think that speaks to our overall fear that AI is coming for our jobs. [laughs] But is this really necessary at this point? Was this on the table?
Jason Moser: I do think we're so early in the actual development of this space. When I say space, I'm talking about AI, in general. Understanding exactly the implications of AI and how it's going to impact our lives professionally, and personally, its capabilities, what it does well, what it doesn't do well. I think that a little caution is warranted. It's something that can be changed down the road, if it's deemed to be unnecessary. But absolutely understand from an individual perspective wanting that protection. There is this narrative out there right now that AI is coming for everyone's jobs. That's scary. I don't think it's going to be to that effect. But AI is going to change the landscape much as technology does. It probably will make some jobs redundant, and it will change how we do things. Now I think on the flip side, do we get to a point where AI can actually do these jobs and do them even better because we could get to that point. Entertainment may be a space where AI has dramatic implications. We just don't know yet. We're going to find out here over time. I do think at the end of the day, one thing to keep in mind that I feel is way right, this content, at the end of the day, is art. It is art. For many, art and the human element are just inextricably linked. There is something to that. I don't know that consumers necessarily will feel the same level of respect if they know that their content is coming from AI-generated sources. There's an artistic component to this that I think does matter, not only to the creators but to us as the consumers as well.
Deidre Woollard: I think that that is an interesting concern as we go forward. Part of the other piece of this puzzle is you've got the Writers Guild. Their strike is ongoing. We've also now got to worry about SAG-AFTRA. That's the big actors' union. They're headed to the bargaining table this week. I'm assuming AI is going to become even more of a factor there too because now we have the ability to generate versions of actors. We've got the ability to generate writing that sounds like a particular writer, so I'm thinking about that. I'm also thinking about how these streamers figure things out going forward. If they cut a lucrative deal with all of these unions, does that mean that they're going to have to slow down their production or make other decisions going forward?
Jason Moser: I think we are seeing a trend toward less content and higher quality content. Going back to Netflix, it's the obvious example here because they got the ball rolling in the space, Netflix has been known for having a ton of content. It's for everyone out there. They're not targeting one specific kind of consumer. They want a little bit of a lot for everyone. The flip side of that is you end up with a library of a lot of less-than-compelling content. I would say that's not just with Netflix. I look at a lot of these services today. A lot of these services have some excellent content. They have a ton of less-than-compelling content. So I think what we're seeing more and more is that these companies are starting to realize that more isn't necessarily always better, and technology hopefully will continue to help improve the quality of that content. But we're absolutely seeing these leadership teams really approaching these content budgets now with a little bit more scrutiny, recognizing the fact that it's not always about just having more, but there is a quality dynamic to it that consumers really care about. Also, I think that ultimately speaks to the consolidation in the space. We're seeing more and more of these streaming services falling under one corporate umbrella, so to speak. Some acquisitions, I think, are likely to continue, and we see a few really big entities that dominate the space. We're already seeing that really, I think, shape out with things like you've got Disney, Netflix, I think Warner Brothers with Max. That will be an advantage to these companies because they have more resources. They have greater distribution. They have these greater audiences in a way to push that content out in so many different ways.
Deidre Woollard: While we're talking Netflix, we got something in the mailbag from Bill in Seattle, and he said, why didn't Netflix put the advertising tier option in the notice about sharing passwords? I would have put my kids on that instead of the no-ad tier. If they're really going to make more money on the ad tier, this would have been the perfect time to offer it. What do you think, Jason? Is it that Netflix is still more interested in grabbing that subscription revenue than the ad revenue?
Jason Moser: If you go by what they're saying in their calls, Disney and Netflix both struck a tone here where the ad-supported model is a very attractive one from an economic perspective, and they like the economics of that ad-supported model. I think, in regards to Netflix, as quickly as they were leaders in the streaming space, they are not so when it comes to ad-supported TV. They are really behind the pack there when it comes to ad-supported TV, so I think they are approaching this with a little humility, very open-minded, wanting to learn the dynamics of how this ultimately works because that's not their speciality. Their claim to fame was, we're keeping it simple, it's an easy, cheap subscription model, and it just makes sense. For a long time that really worked. What we're seeing now is more of these companies realized the benefits of having an ad-supported model, and they're really rolling those out. I suspect, as time goes on, as Netflix gleans some lessons from the space, and learns what works and what doesn't, I think they'll start to tap this ad-supported model a little bit more because the economics are really very attractive.
Deidre Woollard: We'll have to keep an eye on that one. Speaking of another entertainment today, we've got Apple's Worldwide Developer Conference. That's the WWDC. In the past, there were a lot of surprises. This year we know what is going to be pretty much. It's the Reality Pro headset. They haven't quite taken off. This was going to be the next big thing. Is this going to be the moment where it shifts do you think?
Jason Moser: It is really difficult to say. On the one hand, you want to say yes. They have such a reputation for sitting back and watching an opportunity unfold. Gleaning the lessons from their competitors and understanding what works and what doesn't work in a particular space, whether it's smartphones, laptops, or whatever. This is the same thing. We've got plenty of headsets out there already, but we still not seen the traction I think that some were hoping that we would see at this point in regard to mixed reality, augmented virtual reality. I think a lot of that just boils down to trying to really figure out what the core use cases are. On the consumer side, really, the core use case remains in the gaming space. I think it's most attractive for gamers looking for a new way to interact with their content. I can speak just anecdotally. A couple of years ago, we got one of my daughters an Oculus headset. It's the last-second birthday gift. We just thought it'd be fun. She'd enjoy tinkering with it. She did, for a couple of weeks. Now it doesn't get nearly as much attention as you might have thought. Having used it myself, I understand that. It's amazing technology. It's phenomenal what it can do. It does put you into a whole other world, and to think that we have technology can do that is really impressive, but we haven't really come down to the core use cases to why a consumer needs this stuff yet. That may just take some time to develop.
I think Apple is very well-known for creating those opportunities, finding those killer apps, pry those core use cases they can really help take their hardware and software to another level. I think the other real challenge with Apple right now is, if they do indeed announce this, and the price point is in that $3,000 range that has been quoted, that's going to be very prohibitive because you're talking about Oculus that goes for $500 versus an Apple headset that goes for $3,000. That's obviously a tremendous Delta there, and it's going to be very difficult for consumers to justify that, at least in the near term. But you got to remember this is Apple. It is a company that has afforded itself so much brand equity through the years. You just can't ever count them out. You can't doubt them because, over time, they do such a wonderful job again of learning those lessons, taking those lessons away from what their competitors are doing, and ultimately figuring out what works and what people want, and they deliver it in a seamless, elegant package. Their hardware is just really good stuff. I think in the near term it's probably going to be a bit of a bumpy ride for this. Longer term, if they can really convince us of those core use cases, then I think they stand a better chance because folks out there going to give Apple a shot no matter what. That's the kind of brand equity they've got. What they don't want to do is put a product out there that just starts collecting dust and people forget about it.
Deidre Woollard: I think what's really important is, if it ends up just being a gaming product, that's not that exciting. I know when they were originally thinking about doing this, they were looking to do more of a augmented reality glasses thing. That ended up taking a backseat. Maybe long term, that's where we go. Do you think that this is maybe just the start of a whole new revenue stream for them?
Jason Moser: I think it has that potential, and I love the fact that they're looking at this and saying augmented reality and virtual reality. One of the big challenges with Oculus is that it's straight-up virtual reality. You're immersing yourself into a digital world that is fully made up, and that's entertaining. It can be fun for a little while, but there's not as much utility. It is more entertainment than anything else. I think if you're talking about a mixed reality headset, that would incorporate augmented and virtual. If we're overlaying some digital on top of the physical world, there's more utility there. There are more potential use cases there that I think Apple could certainly exploit. That could be one of the lessons they've learned from a lot of these headsets that have been released into the market over the last several years ultimately, while virtual reality is amazing technology, maybe it's not the most useful for the masses. I think it was something like a mixed reality, augmented reality. To me, there seems to be more core use case opportunities there. It's going to be fascinating to see exactly what this product looks like and what it does. While [inaudible] will most certainly be early days, Apple has a knack for figuring out ways to get products into a consumer's hands. It takes me back to, I don't know if you remember like 10 years ago, the Onion article that was titled New Apple Campaign Urges Consumers To Buy iPhone For Other Hand.
Deidre Woollard: [laughs]
Jason Moser: As silly as that sounds, in hindsight, that's basically what they did with the watch. I don't know that anybody really needs the watch if you have a phone, but they convinced a lot of people that they should have it. They find core use cases for devices, they convince consumers that they want them, that they need them. The brand affords a lot of trust and gives them a huge benefit of the doubt there where consumers will give it a shot because it is Apple, so this is going to be a fun one to watch develop.
Deidre Woollard: Absolutely. Thank you so much for your time today, Jason. Great to see you.
Jason Moser: Thank you.
Deidre Woollard: Innovation doesn't always come in the form of something brand new. Ricky Mulvey and Asit Sharma discuss a mainstay tech company that's still improving a decades-old product.
Ricky Mulvey: Joining us now is a Motley Fool analyst who demanded a present in order to record a segment with me. Welcome, Asit.
Asit Sharma: Ricky, it's good to be here. You make that sound so quid pro quo.
Ricky Mulvey: It might be a little quid pro quo because you said I have this great idea, and it's that you send me a present, and then we'll make a podcast segment about it. I thought it might have been nicer to do the other way, in reverse. You would send me a present, and then we'd make a podcast segment about it.
Asit Sharma: We'll chat about that later, Ricky. But the real present was the fact that I was barreling down i40 in North Carolina on a very sunny Sunday afternoon, listening to the radio, and a thought popped into my head. What was that thought? The desire to discuss something with Ricky Mulvey. That's the present, dude, that I thought of you during my time off.
Ricky Mulvey: I'm happy to send you something after about three months. I sent you a deck of playing cards, which is a little bit different from, I think, normal playing cards because they got a QR code design in the back, which I think represented an interesting mix of just a very old product and very new technology but more than that, the entire endeavor cost me about 5 dollars and 30 cents. Before we get to that, by the way, when you originally pitched this to me, you mentioned comic books like three times, so I thought that this whole thing was just like you wanting me to send you a comic book, and then we can talk about comic books, which we can do as a segment at some point.
Asit Sharma: Some people have trouble grasping a very obvious message that's right in front of them. But hey, that'll lead to another segment. I think that would have been really fun. Let me describe what you sent me, though, Ricky. So I get this package from you. It's old school because you've handwritten your address, my address, like we used to do back in the day. Inside I find a packet, yes, of playing cards from the Golden Nugget Casino with the edges crimped. These are authentic casino-played cards. They've been played in a casino before. Now on the back of these cards, it's a beautiful deep burgundy color. It's got minute floral etchings all over the place.
Ricky Mulvey: I think there's an interesting reason that there's these QR codes on these playing cards, and it's because I think they're in order to stop something called edge playing, which is when very skilled gamblers, or they wouldn't even be gambling at this point because they have an edge, are able to spot very tiny imperfections in the backs of cards, and then therefore they know what card is under it. Let's say you have the six of hearts, and you're able to tell that it's the six of hearts because, on the back, there's just a slight misprint when they're doing these sheets of playing cards. The most famous example of this was Phil Ivey and Kelly Sun. Kelly Sun basically was this, I would say, addicted gambler and actually got kicked out of MGM Properties in Vegas for playing a bad marker, which was asking for $100,000 when you didn't have the cash to back it up. MGM ends up getting her sent to jail because, in Vegas, that's the equivalent of writing a bad check. Since then she's had this mission of revenge against MGM, closely studying the backs of playing cards, and is able to team up with Phil Ivey in order, in some ways, to get bankrolled, and they played together with this very specific rule set, very specific cards in baccarat, which the casinos are happy to oblige because they're playing such massive hands. You can ask for anything you want when you're playing $100,000 a hand. This goes on for years, and eventually, it comes tumbling down. Casino security in Rockford's Casino in England noticed what was going on, and they claw back all of the winnings from them. Phil Ivey appeals. This is a years-long court battle, but eventually, the Supreme Court of England sides with the casino saying that Phil Ivey cheated.
In America, you have a similar situation with the Borgata Casino. Ivey and Sun win tens of millions of dollars, and Borgata says, hey, you were cheating there, and they argue that they weren't. They were asking for a specific rule set that you obliged them on, but they weren't touching the cards or anything. They weren't manipulating the game with anything other than their eyes and an edge that they saw. They saw an inefficient market. In the first court case, Borgata won, and they were able to claw back their winnings. However, on appeal, there was a settlement for an undisclosed amount. We don't really know how the story ends. But I think that's why you see these random QR codes, or maybe not so random QR codes, on the backs of a lot of cards now because, hey, what if we just have thousands and thousands of designs? Good luck finding and spotting the small differences in them when all of them have small differences. I think that's where there's a little bit of a cybersecurity angle as well because these casinos now are using something called a trapdoor function, which is, you have a function that's easy to create but very difficult to draw how they got there. You could think of a 100-digit number, which means that it's very easy to multiply into it, a 100-digit number, but it's very difficult to find the two numbers that got you there. I'll stop there before I keep rambling, Asit.
Asit Sharma: I have several observations. The first, Ricky, is that there's a thin line between an inefficient market and a game of chance breaking down into something that's not really a game of chance, and that's why there's so much legal ambiguity there. The second is I used to work in the offset printing industry. I was in the finance department of an offset printer, and you and I had the pleasure to meet for breakfast. You were in my town for a wedding this past weekend, and I was relaying to you how it took me a moment to grasp that certain sets of cards could have these imperfections that went from deck to deck to deck, and then I remembered from being in the printing industry, that's entirely possible. You can have imperfections that go from plate to plate, so the press prints off of a plate. You can have variations in what's called make-ready, so that's getting the colors right right before a run. There's all kinds of potential in older school technology for this to happen. But you know, technology progresses. As I was getting out of that industry, digital printing was all the rage because now you'd be able to print different addresses on a run of envelopes to be mailed, and that was, like, variable printing. It was the next big thing. Technology marches on. There are ever-new ways created to try to beat the house and get an edge over the house. I want to say one more thing about this idea of the trapdoor function which you explained to me. I think it's really cool because, in this case, the trapdoor was inadvertent, and poker itself is informed by encryption. Some data is available to all the players, but your hand is encrypted. Theoretically, only you know what your hand is, so in games of player versus player, and some games of player versus the house, we create these unintentional trapdoors to our data. In poker, this is known as the tell. That's the feature that gives away some information inadvertently. For example, Ricky, if you and I play poker a bunch, and you notice that my right eyebrow always twitches slightly whenever I have a really good hand, that's the tell. That's the trapdoor to my data. In the Phil Ivey case, that trapped door was also inadvertent.
Ricky Mulvey: The casinos were a little more upset about this because it was the trapdoor against the casino. They were playing baccarat, and Kelly Sun and Phil Ivey, were asking for these very specific sets of cards where I think Sun was able to more easily tell what those tiny little imperfections were, and they weren't just taking money from the players which casinos don't like. We are legally obligated to talk about stocks, Asit, and one of the reasons I sent you this is because it is that mix of innovation with a very old product, and we always associate innovation with something completely brand-new. I'm guilty of that. That's how I like to think about the future in these bleeding-edge technologies. But there are plenty of companies that have been around for tens, maybe even more than a hundred years, that are still innovating on very old products. What's a company that you think has shown some interesting innovation on very old products?
Asit Sharma: I am obsessed right now with a company called Synopsys, symbol SNPS. This is a company that provides electronic design automation software, and it helps companies automate the process of designing chips. That's a really old technology. Ricky, the first iteration of transistors was, I think, introduced in 1947, and since the '50s, we've been trying to really make chips more efficient. In the present day, it's, how many billions of transistors can we fit on one chip? We start bumping against something called Moore's law, which proposes that the number of transistors we can pack on a chip is going to double every so often. We're seeing physical limitations of Moore's law, so one thing many manufacturers are doing is turning to purpose design chips because if you design a chip for a certain task, in other words, avoid buying off-the-shelf chips, you can get more efficiency out of that silicon. Synopsys does only this. It works on providing the software to help companies design evermore efficient chips. They are now using artificial intelligence to further this process. The company trades at pretty reasonable multiples, and I think it's going to benefit from this need for evermore computational power and efficiency. Generative AI is only the latest demand factor that's pushing up societies' need for computational capacity over the long term.
Ricky Mulvey: It's like inearnings call we always come back to generative AI, Asit. I haven't heard of this before we started recording. This is a surprise. Is this profitable? What do you think about the valuation here?
Asit Sharma: As per the valuation, lots of great tech companies now who have double-digit, high teens, low 20s revenue growth are trading still at some lofty multiples, say 40, 50 times their forward earnings. Synopsys trades a category below that. Depending on which multiple you're using, they are trading either in, say, the mid-30s against forward earnings and a slightly smaller multiple, if you like something like enterprise value to EBITDA, I think they're in the high 20s last I looked.
Ricky Mulvey: Final question, when am I getting a present?
Asit Sharma: Ricky, I got to one-up you now, so we know it's going to be less than three months from today.
Ricky Mulvey: Sounds good. Asit Sharma, is always a pleasure. Thanks for joining me.
Asit Sharma: This is a lot of fun. Thanks, Ricky.
Deidre Woollard: As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Deidre Woollard. Thanks for listening. See you tomorrow.
Asit Sharma has positions in Synopsys and Walt Disney. Deidre Woollard has positions in Apple and Walt Disney. Jason Moser has positions in Apple and Walt Disney. Ricky Mulvey has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Apple, Netflix, Synopsys, Walt Disney, and Warner Bros. Discovery. The Motley Fool 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.
The views and 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 simple pack of casino playing cards leads Motley Fool producer Ricky Mulvey and senior analyst Asit Sharma on an exploration of how old products can become new again. I suspect, as time goes on, as Netflix gleans some lessons from the space, and learns what works and what doesn't, I think they'll start to tap this ad-supported model a little bit more because the economics are really very attractive. Asit Sharma: As per the valuation, lots of great tech companies now who have double-digit, high teens, low 20s revenue growth are trading still at some lofty multiples, say 40, 50 times their forward earnings.
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In this podcast, Motley Fool senior analyst Jason Moser discusses: What a potential Directors Guild deal means for entertainment. A simple pack of casino playing cards leads Motley Fool producer Ricky Mulvey and senior analyst Asit Sharma on an exploration of how old products can become new again. The Motley Fool 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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A simple pack of casino playing cards leads Motley Fool producer Ricky Mulvey and senior analyst Asit Sharma on an exploration of how old products can become new again. Ricky Mulvey: I think there's an interesting reason that there's these QR codes on these playing cards, and it's because I think they're in order to stop something called edge playing, which is when very skilled gamblers, or they wouldn't even be gambling at this point because they have an edge, are able to spot very tiny imperfections in the backs of cards, and then therefore they know what card is under it. They were playing baccarat, and Kelly Sun and Phil Ivey, were asking for these very specific sets of cards where I think Sun was able to more easily tell what those tiny little imperfections were, and they weren't just taking money from the players which casinos don't like.
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In this podcast, Motley Fool senior analyst Jason Moser discusses: What a potential Directors Guild deal means for entertainment. I'm Deidre Woollard, and I'm joined in studio by Motley Fool Analyst Jason Moser. Asit Sharma: As per the valuation, lots of great tech companies now who have double-digit, high teens, low 20s revenue growth are trading still at some lofty multiples, say 40, 50 times their forward earnings.
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2023-06-09 00:00:00 UTC
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US STOCKS-S&P, Nasdaq hit fresh 2023 highs as Tesla rallies
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-hit-fresh-2023-highs-as-tesla-rallies
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By Sruthi Shankar and Shristi Achar A
June 9 (Reuters) - The S&P 500 and Nasdaq hit fresh 2023 highs on Friday as Tesla shares jumped following a tie-up with General Motors, while investors awaited inflation data and U.S. monetary policy decision due next week.
Tesla Inc TSLA.O shares climbed 5.7% after General Motors GM.Nagreed to use the company's Supercharger network. GM shares GM.N rose 3.8%.
The benchmark S&P 500 on Thursday ended 20% above its Oct. 12 closing low, heralding the start of a new bull market as defined by some market participants.
A rally in megacap stocks, a better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation.
"The overall tone of the market is based on the idea that the Fed will pause its increases," said Rick Meckler, partner at Cherry Lane Investments.
"As it pauses, the broader market will start to rally and maybe catch up with the large-cap tech stocks that have led the way up until now."
Major growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Corp NVDA.O rose between 0.5% and 2.6%.
Traders see a 72% chance that the U.S. central bank will hold interest rates at the current 5%-5.25% range in its June 13-14 policy meeting, according to CMEGroup's Fedwatch tool.
Consumer prices data on Tuesday will help shape expectations around further moves by the Fed, with traders already pricing in a 50% chance of another 25-basis-point rate hike in July.
"We expect the Fed to hike one last time in this cycle in July. By September, we think weakening activity and employment data will lead toward a more enduring pause, with the Fed holding at 5.5% until its first rate cut in March 2024," economists at BNP Paribas noted.
Signs of a resilient U.S. economy and hopes of the Fed pausing its aggressive monetary tightening have pushed volatility gauges tumbling. The CBOE Volatility index .VIX, commonly known as Wall Street's fear gauge, sank to a fresh pre-pandemic level of 13.53 points on Thursday.
At 10:00 a.m. ET, the Dow Jones Industrial Average .DJI was up 56.85 points, or 0.17%, at 33,890.46, the S&P 500 .SPX was up 19.56 points, or 0.46%, at 4,313.49, and the Nasdaq Composite .IXIC was up 122.32 points, or 0.92%, at 13,360.85.
Target Corp TGT.N slipped 1.3% after Citi downgraded the big-box retailer to "neutral", saying sales could fall further this year amid a challenging macro backdrop.
Adobe Inc ADBE.O added 5.4% after Wells Fargo upgraded it to "overweight", saying the Photoshop software maker was poised to benefit from the generative AI boom.
Netflix Inc NFLX.O gained 1.7% following a report that its subscriptions jumped after the streaming giant's crackdown on password sharing.
Declining issues outnumbered advancers by a 1.36-to-1 ratio on the NYSE, while advancing issues outnumbered decliners by a 1.00-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and five new lows, while the Nasdaq recorded 45 new highs and 22 new lows.
Bear market highlights https://tmsnrt.rs/466RyFF
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787; 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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Major growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Corp NVDA.O rose between 0.5% and 2.6%. By Sruthi Shankar and Shristi Achar A June 9 (Reuters) - The S&P 500 and Nasdaq hit fresh 2023 highs on Friday as Tesla shares jumped following a tie-up with General Motors, while investors awaited inflation data and U.S. monetary policy decision due next week. A rally in megacap stocks, a better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation.
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Major growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Corp NVDA.O rose between 0.5% and 2.6%. By Sruthi Shankar and Shristi Achar A June 9 (Reuters) - The S&P 500 and Nasdaq hit fresh 2023 highs on Friday as Tesla shares jumped following a tie-up with General Motors, while investors awaited inflation data and U.S. monetary policy decision due next week. Declining issues outnumbered advancers by a 1.36-to-1 ratio on the NYSE, while advancing issues outnumbered decliners by a 1.00-to-1 ratio on the Nasdaq.
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Major growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Corp NVDA.O rose between 0.5% and 2.6%. By Sruthi Shankar and Shristi Achar A June 9 (Reuters) - The S&P 500 and Nasdaq hit fresh 2023 highs on Friday as Tesla shares jumped following a tie-up with General Motors, while investors awaited inflation data and U.S. monetary policy decision due next week. A rally in megacap stocks, a better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation.
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Major growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O and Nvidia Corp NVDA.O rose between 0.5% and 2.6%. By Sruthi Shankar and Shristi Achar A June 9 (Reuters) - The S&P 500 and Nasdaq hit fresh 2023 highs on Friday as Tesla shares jumped following a tie-up with General Motors, while investors awaited inflation data and U.S. monetary policy decision due next week. The CBOE Volatility index .VIX, commonly known as Wall Street's fear gauge, sank to a fresh pre-pandemic level of 13.53 points on Thursday.
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15405.0
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2023-06-09 00:00:00 UTC
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Friday's ETF with Unusual Volume: DJD
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https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-djd
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Friday, with over 245,000 shares traded versus three month average volume of about 39,000. Shares of DJD were off about 0.2% on the day.
Components of that ETF with the highest volume on Friday were Apple, trading up about 0.4% with over 20.6 million shares changing hands so far this session, and Intel, down about 2.3% on volume of over 16.3 million shares. UnitedHealth Group is the component faring the best Friday, higher by about 1.2% on the day.
VIDEO: Friday's ETF with Unusual Volume: DJD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Friday, with over 245,000 shares traded versus three month average volume of about 39,000. Components of that ETF with the highest volume on Friday were Apple, trading up about 0.4% with over 20.6 million shares changing hands so far this session, and Intel, down about 2.3% on volume of over 16.3 million shares. UnitedHealth Group is the component faring the best Friday, higher by about 1.2% on the day.
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Friday, with over 245,000 shares traded versus three month average volume of about 39,000. Components of that ETF with the highest volume on Friday were Apple, trading up about 0.4% with over 20.6 million shares changing hands so far this session, and Intel, down about 2.3% on volume of over 16.3 million shares. VIDEO: Friday's ETF with Unusual Volume: DJD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Friday, with over 245,000 shares traded versus three month average volume of about 39,000. Components of that ETF with the highest volume on Friday were Apple, trading up about 0.4% with over 20.6 million shares changing hands so far this session, and Intel, down about 2.3% on volume of over 16.3 million shares. VIDEO: Friday's ETF with Unusual Volume: DJD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Friday, with over 245,000 shares traded versus three month average volume of about 39,000. Shares of DJD were off about 0.2% on the day. Components of that ETF with the highest volume on Friday were Apple, trading up about 0.4% with over 20.6 million shares changing hands so far this session, and Intel, down about 2.3% on volume of over 16.3 million shares.
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15406.0
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2023-06-09 00:00:00 UTC
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Invest Like a Political Insider with These 2 New ETFs
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https://www.nasdaq.com/articles/invest-like-a-political-insider-with-these-2-new-etfs
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Politics are increasingly creeping into all areas of American life, and for better or worse, investing is not immune to this phenomenon. We recently covered the growing number of ETFs that allow people to invest in companies that they believe are aligned with their viewpoints. These ETFs do this by screening for companies that donate money to political candidates or causes.
Now, Subversive ETFs has unveiled an interesting new twist on political ETFs with two brand new ETFS, one for each opposing side of the aisle -- the Unusual Whales Subversive Republican Trading ETF (BATS:KRUZ) and the Unusual Whales Subversive Democratic Trading ETF (BATS:NANC). How do they work, and could they be worthy of a place in your portfolio?
How Do These ETFs Invest Like Political Insiders?
As one might guess, the Democratic version of this ETF’s ticker is a reference to Democratic congresswoman and former Speaker of the House Nancy Pelosi, while the Republican ying to NANC’s yang is named for Ted Cruz, the high-profile Republican Senator from Texas and former presidential candidate.
While a number of ETFs allow investors to invest in stocks that they feel like match up with their political preferences, these two new ETFs take a whole new approach. Instead of merely tracking which companies make donations to politicians, NANC and KRUZ utilize data provided by Unusual Whales, an options and equity data platform, to track what stocks members of Congress are buying and selling, using this information to invest alongside them. KRUZ invests in equities bought or sold by Republican members of Congress, while NANC does the same thing with Democratic members of Congress.
If you’ve spent any time on the financial side of Twitter (often called "FinTwit") in recent years, you’ve likely seen plenty of accounts discussing the transactions made by Nancy Pelosi and her husband, Paul, and users joking (or perhaps only half joking), that Pelosi is a better investor than Warren Buffett based on her timely buys and sells before major news comes to light about some of these stocks.
While the ability of politicians to enrich themselves based on inside knowledge and influence they derive from positions as lawmakers is an unseemly part of U.S. politics (the U.S. is the only democracy in the world that allows officeholders to invest like this), I give Unusual Whales and Subversive ETFs credit for using data to level the playing field and at least letting everyday Americans invest like these political insiders.
They are able to do this because, thanks to the STOCK Act, members of Congress and their spouses must disclose what stocks they buy and sell.
How Are Politicians Investing?
Now that we know how they work, let’s take a look at what NANC and KRUZ look like in practice. These ETFs are actually incredibly diversified, which stands to reason, as they are representing the transactions of hundreds of Congressmen and Congresswomen.
NANC holds a massive 741 positions, and its top 10 holdings make up 47.4% of the fund. Below, you’ll find an overview of NANC’s top 10 holdings using TipRanks’ holdings tool.
As you can see above, NANC skews heavily towards mega-cap tech stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), so holding it would give investors exposure that isn't all that different from investing in massive tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ) or the Technology Select Sector SPDR Fund (NYSEARCA:XLK).
You’ll also notice that NANC’s top holdings collectively boast some pretty impressive Smart Scores, with eight of its top 10 scoring 8 or above. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. The score is data-driven and does not involve any human intervention.
Meanwhile, KRUZ holds 486 positions, and its top 10 holdings make up a fairly minuscule 16.5% of assets. Check out the table below for an overview of KRUZ’s top holdings.
KRUZ clearly isn’t as tech-centric as NANC, and it skews more towards what you might call ‘old economy stocks’ like energy companies and tobacco giant Philip Morris International (NYSE:PM). But there’s a little bit of everything, with Netflix (NASDAQ:NFLX) representing the tech sector and healthcare companies also having a presence. Seven out of KRUZ’s top 10 positions feature Smart Scores of 8 or above.
NANC has an ETF Smart Score of 8, edging out KRUZ, which scores a 7.
One thing to make note of is that just because these two ETFs represent different sides of the aisle, that doesn’t mean there isn’t overlap in their positions. Politicians from both parties have bought stocks like Amazon (NASDAQ:AMZN), Home Depot (NYSE:HD), and Ford (NYSE:F), just to name a few, so you’ll find these and plenty more in both ETFs.
Are Analysts Bullish on NANC and KRUZ Shares?
Analysts view NANC in a positive light. It has a Moderate Buy rating, and the average NANC stock price target of $29.94 implies upside potential of 11.5% from the ETF’s current price.
The analyst community views KRUZ relatively similarly, giving it the same Moderate Buy consensus rating. Further, the average KRUZ stock price target of $28.52 implies 15.2% upside potential.
Investor Takeaway
This is an interesting concept for an investment vehicle, and I also give Subversive ETFs and Unusual Whales credit for seeking to level the playing field between politicians and everyday Americans, at least in the investing sphere.
It’s feasible that this strategy of following the investing decisions of Congressmen and congresswomen could be a fruitful one, but these ETFS just launched in February of 2023, so for now, they don’t have much of a track record to judge them on, and time will tell how effective this strategy is.
These are still relatively tiny ETFs in the investing landscape -- KRUZ currently has just $4.9 million in assets under management, while NANC has $6.7 million.
One additional downside to be aware of is that both of these ETFs charge relatively high fees -- KRUZ and NANC both have expenses ratios of 0.75%, meaning that if you were to invest $10,000 into one of them today, you would pay $75 in fees in year one. For these reasons, I am watching KRUZ and NANC as an interested observer rather than buying one or the other.
One additional idea is that if I were interested in investing in NANC, I would consider simply investing in the aforementioned ETFs like QQQ or XLK, as they give you much of the same exposure to the large-cap tech stocks that make up NANC’s top holdings and offer lower fees and a much longer track record of performance.
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 above, NANC skews heavily towards mega-cap tech stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), so holding it would give investors exposure that isn't all that different from investing in massive tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ) or the Technology Select Sector SPDR Fund (NYSEARCA:XLK). If you’ve spent any time on the financial side of Twitter (often called "FinTwit") in recent years, you’ve likely seen plenty of accounts discussing the transactions made by Nancy Pelosi and her husband, Paul, and users joking (or perhaps only half joking), that Pelosi is a better investor than Warren Buffett based on her timely buys and sells before major news comes to light about some of these stocks. While the ability of politicians to enrich themselves based on inside knowledge and influence they derive from positions as lawmakers is an unseemly part of U.S. politics (the U.S. is the only democracy in the world that allows officeholders to invest like this), I give Unusual Whales and Subversive ETFs credit for using data to level the playing field and at least letting everyday Americans invest like these political insiders.
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As you can see above, NANC skews heavily towards mega-cap tech stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), so holding it would give investors exposure that isn't all that different from investing in massive tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ) or the Technology Select Sector SPDR Fund (NYSEARCA:XLK). Now, Subversive ETFs has unveiled an interesting new twist on political ETFs with two brand new ETFS, one for each opposing side of the aisle -- the Unusual Whales Subversive Republican Trading ETF (BATS:KRUZ) and the Unusual Whales Subversive Democratic Trading ETF (BATS:NANC). Instead of merely tracking which companies make donations to politicians, NANC and KRUZ utilize data provided by Unusual Whales, an options and equity data platform, to track what stocks members of Congress are buying and selling, using this information to invest alongside them.
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As you can see above, NANC skews heavily towards mega-cap tech stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), so holding it would give investors exposure that isn't all that different from investing in massive tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ) or the Technology Select Sector SPDR Fund (NYSEARCA:XLK). Now, Subversive ETFs has unveiled an interesting new twist on political ETFs with two brand new ETFS, one for each opposing side of the aisle -- the Unusual Whales Subversive Republican Trading ETF (BATS:KRUZ) and the Unusual Whales Subversive Democratic Trading ETF (BATS:NANC). One additional idea is that if I were interested in investing in NANC, I would consider simply investing in the aforementioned ETFs like QQQ or XLK, as they give you much of the same exposure to the large-cap tech stocks that make up NANC’s top holdings and offer lower fees and a much longer track record of performance.
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As you can see above, NANC skews heavily towards mega-cap tech stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), so holding it would give investors exposure that isn't all that different from investing in massive tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ) or the Technology Select Sector SPDR Fund (NYSEARCA:XLK). Instead of merely tracking which companies make donations to politicians, NANC and KRUZ utilize data provided by Unusual Whales, an options and equity data platform, to track what stocks members of Congress are buying and selling, using this information to invest alongside them. Meanwhile, KRUZ holds 486 positions, and its top 10 holdings make up a fairly minuscule 16.5% of assets.
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15407.0
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2023-06-09 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq hit fresh 2023 highs as Tesla rallies
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-hit-fresh-2023-highs-as-tesla-rallies
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nan
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nan
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By Sruthi Shankar and Shristi Achar A
June 9 (Reuters) - The S&P 500 and Nasdaq hit fresh 2023 highs on Friday before paring some gains, as a jump in Tesla and technology stocks outweighed jitters around the Federal Reserve's policy outcome and inflation data next week.
Tesla Inc shares TSLA.O climbed 4.9% and were set for their longest winning streak since January 2021, after General Motors GM.Nagreed to use the company's Supercharger network. GM shares GM.N rose 2.5%.
The benchmark S&P 500 .SPX closed Thursday 20% above its Oct. 12 finishing low, heralding the start of a new bull market as defined by some market participants.
A rally in megacap stocks, better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation.
"The overall tone of the market is based on the idea that the Fed will pause its increases," said Rick Meckler, partner at Cherry Lane Investments. "As it pauses, the broader market will start to rally and maybe catch up with the large-cap tech stocks that have led the way up until now."
Shares in tech companies including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.3% and 3.2% after retreating earlier this week.
Traders see a 72% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range in its June 13-14 policy meeting, according to CMEGroup's Fedwatch tool.
Consumer prices data on Tuesday will help shape expectations around further moves by the Fed, with traders already pricing in a 50% chance of another 25-basis-point rate hike in July.
"Some of what has been supporting equities is resilient economic data. But to the extent that inflation remains elevated, the Fed may have to do a little bit more," said Roosevelt Bowman, senior investment strategist at Bernstein Private Wealth Management.
The CBOE Volatility index .VIX, commonly known as Wall Street's fear gauge, edged up after sinking to a fresh pre-pandemic level of 13.53 points on Thursday.
At 12:04 p.m. ET, the Dow Jones Industrial Average .DJI was down 9.22 points, or 0.03%, at 33,824.39, the S&P 500 .SPX was up 3.26 points, or 0.08%, at 4,297.19, and the Nasdaq Composite .IXIC was up 18.88 points, or 0.14%, at 13,257.41.
Target Corp TGT.N slipped 2.0% after Citi downgraded the big-box retailer to "neutral", saying sales could fall further this year amid a challenging macro backdrop.
Adobe Inc ADBE.O added 4.5% after Wells Fargo upgraded it to "overweight", saying the Photoshop software maker was poised to benefit from the generative AI boom.
Netflix Inc NFLX.O gained 2.5% following a report that its subscriptions jumped after the streaming giant's crackdown on password sharing.
Declining issues outnumbered advancers by a 1.56-to-1 ratio on the NYSE and a 1.61-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and five new lows, while the Nasdaq recorded 69 new highs and 32 new lows.
Bear market highlights https://tmsnrt.rs/466RyFF
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787; 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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Shares in tech companies including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.3% and 3.2% after retreating earlier this week. By Sruthi Shankar and Shristi Achar A June 9 (Reuters) - The S&P 500 and Nasdaq hit fresh 2023 highs on Friday before paring some gains, as a jump in Tesla and technology stocks outweighed jitters around the Federal Reserve's policy outcome and inflation data next week. A rally in megacap stocks, better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation.
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Shares in tech companies including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.3% and 3.2% after retreating earlier this week. By Sruthi Shankar and Shristi Achar A June 9 (Reuters) - The S&P 500 and Nasdaq hit fresh 2023 highs on Friday before paring some gains, as a jump in Tesla and technology stocks outweighed jitters around the Federal Reserve's policy outcome and inflation data next week. The S&P index recorded 13 new 52-week highs and five new lows, while the Nasdaq recorded 69 new highs and 32 new lows.
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Shares in tech companies including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.3% and 3.2% after retreating earlier this week. By Sruthi Shankar and Shristi Achar A June 9 (Reuters) - The S&P 500 and Nasdaq hit fresh 2023 highs on Friday before paring some gains, as a jump in Tesla and technology stocks outweighed jitters around the Federal Reserve's policy outcome and inflation data next week. Bear market highlights https://tmsnrt.rs/466RyFF (Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787; 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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Shares in tech companies including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.3% and 3.2% after retreating earlier this week. By Sruthi Shankar and Shristi Achar A June 9 (Reuters) - The S&P 500 and Nasdaq hit fresh 2023 highs on Friday before paring some gains, as a jump in Tesla and technology stocks outweighed jitters around the Federal Reserve's policy outcome and inflation data next week. Tesla Inc shares TSLA.O climbed 4.9% and were set for their longest winning streak since January 2021, after General Motors GM.Nagreed to use the company's Supercharger network.
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15408.0
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2023-06-09 00:00:00 UTC
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Notable Friday Option Activity: AAPL, GS, MSFT
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AAPL
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-aapl-gs-msft
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 689,082 contracts have traded so far, representing approximately 68.9 million underlying shares. That amounts to about 115.9% of AAPL's average daily trading volume over the past month of 59.5 million shares. Particularly high volume was seen for the $182.50 strike call option expiring June 09, 2023, with 98,758 contracts trading so far today, representing approximately 9.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $182.50 strike highlighted in orange:
Goldman Sachs Group Inc (Symbol: GS) options are showing a volume of 23,034 contracts thus far today. That number of contracts represents approximately 2.3 million underlying shares, working out to a sizeable 114.8% of GS's average daily trading volume over the past month, of 2.0 million shares. Particularly high volume was seen for the $335 strike call option expiring June 09, 2023, with 2,279 contracts trading so far today, representing approximately 227,900 underlying shares of GS. Below is a chart showing GS's trailing twelve month trading history, with the $335 strike highlighted in orange:
And Microsoft Corporation (Symbol: MSFT) saw options trading volume of 307,240 contracts, representing approximately 30.7 million underlying shares or approximately 108.6% of MSFT's average daily trading volume over the past month, of 28.3 million shares. Especially high volume was seen for the $330 strike call option expiring June 09, 2023, with 45,285 contracts trading so far today, representing approximately 4.5 million underlying shares of MSFT. Below is a chart showing MSFT's trailing twelve month trading history, with the $330 strike highlighted in orange:
For the various different available expirations for AAPL options, GS options, or MSFT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Socially Responsible Preferreds
LMPX market cap history
Institutional Holders of LADR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $182.50 strike call option expiring June 09, 2023, with 98,758 contracts trading so far today, representing approximately 9.9 million underlying shares of AAPL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 689,082 contracts have traded so far, representing approximately 68.9 million underlying shares. That amounts to about 115.9% of AAPL's average daily trading volume over the past month of 59.5 million shares.
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Particularly high volume was seen for the $182.50 strike call option expiring June 09, 2023, with 98,758 contracts trading so far today, representing approximately 9.9 million underlying shares of AAPL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 689,082 contracts have traded so far, representing approximately 68.9 million underlying shares. That amounts to about 115.9% of AAPL's average daily trading volume over the past month of 59.5 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 689,082 contracts have traded so far, representing approximately 68.9 million underlying shares. Particularly high volume was seen for the $182.50 strike call option expiring June 09, 2023, with 98,758 contracts trading so far today, representing approximately 9.9 million underlying shares of AAPL. That amounts to about 115.9% of AAPL's average daily trading volume over the past month of 59.5 million shares.
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Particularly high volume was seen for the $182.50 strike call option expiring June 09, 2023, with 98,758 contracts trading so far today, representing approximately 9.9 million underlying shares of AAPL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 689,082 contracts have traded so far, representing approximately 68.9 million underlying shares. That amounts to about 115.9% of AAPL's average daily trading volume over the past month of 59.5 million shares.
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15409.0
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2023-06-09 00:00:00 UTC
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US STOCKS-U.S. stocks pare gains despite Tesla rally
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AAPL
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https://www.nasdaq.com/articles/us-stocks-u.s.-stocks-pare-gains-despite-tesla-rally
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nan
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nan
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By Sruthi Shankar, Shristi Achar A and David Carnevali
June 9 (Reuters) - U.S. stocks pared gains on Friday, with the S&P 500 fighting to stay firmer as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week.
Tesla Inc shares TSLA.O climbed 5.00% and were set for their longest winning streak since January 2021, after General Motors CoGM.Nagreed to use the company's Supercharger network. GM shares GM.N rose 1.3%.
The benchmark S&P 500 .SPX closed Thursday 20% above its Oct. 12 finishing low, heralding the start of a new bull market as defined by some market participants.
"It's maybe the most hated bull market in the history of bull markets," said Tim Holland, chief investment officer of investment platform Orion OCIO.
"Sentiment was terribly depressed going into year-end and still remains on the bearish side."
A megacap stocks rally, better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation.
Shares in tech companies including Apple Inc AAPL.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.74% and 3.43% after retreating earlier this week.
Traders see a 72% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range in its June 13-14 policy meeting, according to CMEGroup's Fedwatch tool.
"The overall tone of the market is based on the idea that the Fed will pause its increases," said Rick Meckler, partner at Cherry Lane Investments. "As it pauses, the broader market will start to rally and maybe catch up with the large-cap tech stocks that have led the way up until now."
Consumer prices data on Tuesday will help shape expectations around further moves by the Fed, with traders already pricing in a 50% chance of another 25-basis-point rate hike in July.
The CBOE Volatility index .VIX, commonly known as Wall Street's fear gauge, edged up after sinking to a fresh pre-pandemic level of 13.83 points on Thursday.
The Dow Jones Industrial Average .DJI rose 53.49 points, or 0.16%, to 33,887.1, the S&P 500 .SPX gained 12.99 points, or 0.30%, at 4,306.92 and the Nasdaq Composite .IXIC added 69.85 points, or 0.53%, at 13,308.38.
Target Corp TGT.N slipped 2.45% after Citi downgraded the big-box retailer to "neutral," saying sales could fall further this year due to economic challenges.
Adobe Inc ADBE.O added 4.41% after Wells Fargo upgraded it to "overweight," saying the Photoshop software maker was poised to benefit from the generative AI boom.
Netflix Inc NFLX.O gained 3.46% following a report that the streaming giant's subscriptions jumped after its crackdown on password sharing.
Declining issues outnumbered advancers on the NYSE by a 1.49-to-1 ratio; on Nasdaq, a 1.55-to-1 ratio favored decliners.
The S&P 500 posted 14 new 52-week highs and five new lows; the Nasdaq Composite recorded 75 new highs and 39 new lows.
Bear market highlights https://tmsnrt.rs/466RyFF
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Richard Chang)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787; 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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Shares in tech companies including Apple Inc AAPL.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.74% and 3.43% after retreating earlier this week. By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - U.S. stocks pared gains on Friday, with the S&P 500 fighting to stay firmer as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. A megacap stocks rally, better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation.
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Shares in tech companies including Apple Inc AAPL.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.74% and 3.43% after retreating earlier this week. By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - U.S. stocks pared gains on Friday, with the S&P 500 fighting to stay firmer as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. The Dow Jones Industrial Average .DJI rose 53.49 points, or 0.16%, to 33,887.1, the S&P 500 .SPX gained 12.99 points, or 0.30%, at 4,306.92 and the Nasdaq Composite .IXIC added 69.85 points, or 0.53%, at 13,308.38.
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Shares in tech companies including Apple Inc AAPL.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.74% and 3.43% after retreating earlier this week. By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - U.S. stocks pared gains on Friday, with the S&P 500 fighting to stay firmer as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. The Dow Jones Industrial Average .DJI rose 53.49 points, or 0.16%, to 33,887.1, the S&P 500 .SPX gained 12.99 points, or 0.30%, at 4,306.92 and the Nasdaq Composite .IXIC added 69.85 points, or 0.53%, at 13,308.38.
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Shares in tech companies including Apple Inc AAPL.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.74% and 3.43% after retreating earlier this week. By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - U.S. stocks pared gains on Friday, with the S&P 500 fighting to stay firmer as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. GM shares GM.N rose 1.3%.
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15410.0
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2023-06-09 00:00:00 UTC
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Is Apple's Vision Pro Headset a Game-Changer or Dead on Arrival?
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AAPL
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https://www.nasdaq.com/articles/is-apples-vision-pro-headset-a-game-changer-or-dead-on-arrival
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nan
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nan
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After years of rumors, whispers, and unsubstantiated reports, Apple (NASDAQ: AAPL) finally revealed what was arguably the worst-kept secret in Silicon Valley. At the company's Worldwide Developers Conference on Monday, Apple unveiled its long-awaited mixed reality headset, dubbed Vision Pro.
With a starting price of $3,499, it's easily the most expensive mainstream device of its kind. It merges virtual reality (VR) and augmented reality (AR) into mixed reality, a combination of the two.
This immediately raises the question, "Who will buy it?" Given the steep cost, Apple's product is arguably out of reach of all but the most affluent buyers. With that as a backdrop, is the Vision Pro headset a game-changer or dead on arrival? Let's dig into the details to find out.
Image source: Apple.
Vision Pro: A revolutionary spatial computer
Apple describes the Vision Pro as a "revolutionary spatial computer that seamlessly blends digital content with the physical world," while saying it "lets users interact with digital content in a way that feels like it is physically present in their space." It employs a three-dimensional user interface that can be controlled by users' hand gestures, eye movements, or voice controls, helping "blend the physical world with digital content."
Vision Pro uses 23 million pixels across the two displays, resulting in a twin 4K display that provides an incredible dual-HDR image that is virtually lag-free. It also includes a feature dubbed "EyeSight," which shows the users' eyes when others are around. When fully immersed in an experience, the users' eyes won't be visible, letting others know they can't be seen.
The device also features a 3D camera that helps users immerse themselves in a favorite photo or video. Vision Pro also works with FaceTime, helping users feel like they are actually present with the person on the video call.
Of course, no mixed reality headset would be complete without the apps to support it. Apple didn't introduce any killer apps, but is rather hosting developer labs in California, London, Munich, Shanghai, Singapore, and Tokyo to get the ball rolling. The plan is to create a catalog of apps before the device goes on sale early next year.
There was a surprise cameo by Disney CEO Bob Iger, who revealed that a number of immersive experiences will launch on streaming video platform Disney+ when the Vision Pro is released next year. In some cases, users will be able to immerse themselves into the settings of the movies and television shows they're watching.
A technological masterpiece
A number of analysts were clearly impressed. Jefferies analyst Andrew Uerkwitz said the device is the "most technologically advanced device we've seen," while Stratechery's Ben Thompson was "blown away." Credit Suisse analyst Shannon Cross said the device "solves many of the technical limitations" evident in competing products, resulting in the "first uncompromised mixed reality solution," according to The Fly.
Others were more guarded, with many analysts citing the high price tag as a stumbling block -- at least over the short term.
The market leader in a category no one really asked for
Looking further ahead shows that Apple -- as always -- is playing the long game. The Vision Pro's unrivaled capabilities set the device apart, giving Apple the leading technological position in an evolving space. If history is any indicator, Apple will move to dominate the market over time.
The iPhone maker is establishing its bona fides now as the early leader in an emerging field. The cost to manufacture this cutting-edge device will no doubt come down over time, allowing Apple to release a lower-cost version down the road, capturing more of the market.
Remember the snickers and off-color remarks made in connection with the release of the iPad? Apple had the last laugh, as the device quickly became the category leader, all but defining the tablet market and becoming theglobal marketshare leader for more than a decade -- a distinction it still holds today.
Apple had a similar experience in early 2015 with the release of the Apple Watch, which one commentator called "the market leader in a category no one really asked for." By early 2020, Apple Watch dominated the smart watch category and was selling more timepieces than the entire Swiss watch industry. Apple continues to dominate the competition, controlling 34% of theglobal marketin 2022, as well as 60% of the total market revenue, according to market research firm Counterpoint Technology.
No get-rich-quick scheme
To be clear, the Vision Pro won't be a big revenue generator for Apple anytime soon. The rollout of this device will be a multiyear undertaking.
Furthermore, keep in mind that the iPhone brought in more than $205 billion last year, representing 52% of Apple's total revenue. Even the most bullish analyst expects the Vision Pro sales of just 1.5 million units next year, which would represent revenue of roughly $5.2 billion -- so even if it meets these lofty first-year estimates, it won't move the needle. It's important to remember that Apple is playing the long game and thinking in terms of years and decades, not months.
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Danny Vena has positions in Apple and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After years of rumors, whispers, and unsubstantiated reports, Apple (NASDAQ: AAPL) finally revealed what was arguably the worst-kept secret in Silicon Valley. There was a surprise cameo by Disney CEO Bob Iger, who revealed that a number of immersive experiences will launch on streaming video platform Disney+ when the Vision Pro is released next year. Credit Suisse analyst Shannon Cross said the device "solves many of the technical limitations" evident in competing products, resulting in the "first uncompromised mixed reality solution," according to The Fly.
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After years of rumors, whispers, and unsubstantiated reports, Apple (NASDAQ: AAPL) finally revealed what was arguably the worst-kept secret in Silicon Valley. Vision Pro: A revolutionary spatial computer Apple describes the Vision Pro as a "revolutionary spatial computer that seamlessly blends digital content with the physical world," while saying it "lets users interact with digital content in a way that feels like it is physically present in their space." It employs a three-dimensional user interface that can be controlled by users' hand gestures, eye movements, or voice controls, helping "blend the physical world with digital content."
|
After years of rumors, whispers, and unsubstantiated reports, Apple (NASDAQ: AAPL) finally revealed what was arguably the worst-kept secret in Silicon Valley. Vision Pro: A revolutionary spatial computer Apple describes the Vision Pro as a "revolutionary spatial computer that seamlessly blends digital content with the physical world," while saying it "lets users interact with digital content in a way that feels like it is physically present in their space." The Vision Pro's unrivaled capabilities set the device apart, giving Apple the leading technological position in an evolving space.
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After years of rumors, whispers, and unsubstantiated reports, Apple (NASDAQ: AAPL) finally revealed what was arguably the worst-kept secret in Silicon Valley. When fully immersed in an experience, the users' eyes won't be visible, letting others know they can't be seen. Of course, no mixed reality headset would be complete without the apps to support it.
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15411.0
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2023-06-09 00:00:00 UTC
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US STOCKS-S&P 500 ends slightly higher as Tesla rallies
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-slightly-higher-as-tesla-rallies
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nan
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nan
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By Sruthi Shankar, Shristi Achar A and David Carnevali
June 9 (Reuters) - The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week.
Tesla Inc shares TSLA.O climbed and were set for their longest winning streak since January 2021, after General Motors Co GM.Nagreed to use the company's Supercharger network. GM shares GM.N were also higher.
The benchmark S&P 500 .SPX closed Thursday 20% above its Oct. 12 finishing low, heralding the start of a new bull market as defined by some market participants.
"It's maybe the most hated bull market in the history of bull markets," said Tim Holland, chief investment officer of investment platform Orion OCIO.
"Sentiment was terribly depressed going into year-end and still remains on the bearish side."
A megacap stocks rally, better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation.
Shares in tech companies advanced after retreating earlier this week.
Traders see a 72% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range in its June 13-14 policy meeting, according to CMEGroup's Fedwatch tool.
Consumer prices data on Tuesday will help shape expectations around further moves by the Fed, with traders already pricing in a 50% chance of another 25-basis-point rate hike in July.
The CBOE Volatility index .VIX, commonly known as Wall Street's fear gauge, sank to the lowest level since February 2020 before regaining some ground.
The Dow Jones Industrial Average .DJI rose 43.63 points, or 0.13%, to 33,877.24, the S&P 500 .SPX gained 5.02 points, or 0.12%, to 4,298.95 and the Nasdaq Composite .IXIC added 20.62 points, or 0.16%, to 13,259.14.
Target Corp TGT.N slipped after Citi downgraded the big-box retailer to "neutral," saying sales could fall further this year due to economic challenges.
Adobe Inc ADBE.O rose after Wells Fargo upgraded it to "overweight," saying the Photoshop software maker was poised to benefit from the generative AI boom.
Netflix Inc NFLX.O gained following a report that the streaming giant's subscriptions jumped after its crackdown on password sharing.
Bear market highlights https://tmsnrt.rs/466RyFF
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Richard Chang)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787; 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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By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. A megacap stocks rally, better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation. Traders see a 72% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range in its June 13-14 policy meeting, according to CMEGroup's Fedwatch tool.
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By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. Traders see a 72% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range in its June 13-14 policy meeting, according to CMEGroup's Fedwatch tool. Bear market highlights https://tmsnrt.rs/466RyFF (Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Richard Chang) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787; 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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By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. A megacap stocks rally, better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation. Bear market highlights https://tmsnrt.rs/466RyFF (Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Richard Chang) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787; 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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By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. Tesla Inc shares TSLA.O climbed and were set for their longest winning streak since January 2021, after General Motors Co GM.Nagreed to use the company's Supercharger network. Traders see a 72% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range in its June 13-14 policy meeting, according to CMEGroup's Fedwatch tool.
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15412.0
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2023-06-09 00:00:00 UTC
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US STOCKS-U.S. stocks end a tad higher as Tesla rallies
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AAPL
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https://www.nasdaq.com/articles/us-stocks-u.s.-stocks-end-a-tad-higher-as-tesla-rallies
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nan
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nan
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By Sruthi Shankar, Shristi Achar A and David Carnevali
June 9 (Reuters) - The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week.
Tesla Inc shares TSLA.O climbed 4.06%, clinching their longest winning streak since January 2021, after General Motors Co GM.Nagreed to use the company's Supercharger network. GM shares GM.N rose 1.06%.
The benchmark S&P 500 .SPXbuilt on Thursday's 20% rise from its Oct. 12 finishing low, heralding the start of a new bull market as defined by some market participants.
"It's maybe the most hated bull market in the history of bull markets," said Tim Holland, chief investment officer of investment platform Orion OCIO.
"Sentiment was terribly depressed going into year-end and still remains on the bearish side."
The S&P 500 .SPX gained 4.93 points, or 0.11%, at 4,298.86, taking this week's advance to 0.38% and extending its winning streak to four weeks, the longest since the July-August 2022 period. The Nasdaq Composite notched its seventh straight week of gains, .IXIC adding 20.62 points, or 0.16%, to 13,259.14 on the day and 0.13% on the week. The Dow Jones Industrial Average .DJI rose 43.17 points, or 0.13%, to 33,876.78, for a weekly gain of 0.33%.
A megacap stocks rally, better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation.
Shares in tech companies including Apple Inc AAPL.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.22% and 3.20% after retreating earlier this week.
Traders see a 72% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range in its June 13-14 policy meeting, according to CMEGroup's Fedwatch tool.
"The overall tone of the market is based on the idea that the Fed will pause its increases," said Rick Meckler, partner at Cherry Lane Investments. "As it pauses, the broader market will start to rally and maybe catch up with the large-cap tech stocks that have led the way up until now."
Consumer prices data on Tuesday will help shape expectations around further moves by the Fed, with traders already pricing in a 50% chance of another 25-basis-point rate hike in July.
The CBOE Volatility index .VIX, commonly known as Wall Street's fear gauge, sank to the lowest level since February 2020 before regaining some ground.
Target Corp TGT.N slipped 3.26% after Citi downgraded the big-box retailer to "neutral," saying sales could fall further this year due to economic challenges.
Adobe Inc ADBE.O rose 3.41% after Wells Fargo upgraded it to "overweight," saying the Photoshop software maker was poised to benefit from the generative AI boom.
Netflix Inc NFLX.O gained 2.60% following a report that the streaming giant's subscriptions jumped after its crackdown on password sharing.
Declining issues outnumbered advancing ones on the NYSE by a 1.49-to-1 ratio; on Nasdaq, a 1.84-to-1 ratio favored decliners.
The S&P 500 posted 15 new 52-week highs and five new lows; the Nasdaq Composite recorded 84 new highs and 53 new lows.
Bear market highlights https://tmsnrt.rs/466RyFF
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Richard Chang)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787; 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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Shares in tech companies including Apple Inc AAPL.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.22% and 3.20% after retreating earlier this week. By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. A megacap stocks rally, better-than-expected earnings season and expectations that the Fed was nearing the end of its rate-hiking cycle have supported Wall Street this year despite concerns about a looming recession and sticky inflation.
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Shares in tech companies including Apple Inc AAPL.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.22% and 3.20% after retreating earlier this week. By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. "As it pauses, the broader market will start to rally and maybe catch up with the large-cap tech stocks that have led the way up until now."
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Shares in tech companies including Apple Inc AAPL.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.22% and 3.20% after retreating earlier this week. By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. The S&P 500 .SPX gained 4.93 points, or 0.11%, at 4,298.86, taking this week's advance to 0.38% and extending its winning streak to four weeks, the longest since the July-August 2022 period.
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Shares in tech companies including Apple Inc AAPL.O, Advanced Micro Devices AMD.O and Nvidia Corp NVDA.O rose between 0.22% and 3.20% after retreating earlier this week. By Sruthi Shankar, Shristi Achar A and David Carnevali June 9 (Reuters) - The S&P 500 closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. The S&P 500 .SPX gained 4.93 points, or 0.11%, at 4,298.86, taking this week's advance to 0.38% and extending its winning streak to four weeks, the longest since the July-August 2022 period.
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15413.0
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2023-06-09 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
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nan
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nan
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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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15414.0
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2023-06-09 00:00:00 UTC
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Apple's Headset: A Stock Price Catalyst or a $3,500 Tech Toy?
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AAPL
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https://www.nasdaq.com/articles/apples-headset%3A-a-stock-price-catalyst-or-a-%243500-tech-toy
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nan
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nan
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T
he unveiling of a new “mixed-reality” headset from Apple Inc. (AAPL) is more than just a news blurb — it could be a make-or-break moment for the iconic tech company, because according to data from our friends at LikeFolio, demand for Apple’s current roster of products is slipping.
You can see the slide in Purchase Intent (PI) mentions (how many people have bought or are talking about buying a product or service) on a year-over-year (YoY) basis in the chart below, with Mac mentions losing 36%, iPad mentions losing 32%, and mentions for AirPods falling 29%:
Even the iPhone is losing some steam, with mentions sliding by 28%. Apple needs something new to capture consumers’ imaginations again and cause that same buzz that previously had people waiting in line for 110 hours to grab an iPhone. Could this new “mixed-reality” headset be it? To get the answer, I turned to Jason Bodner, the inventor of the Quantum Edge system.
“As Apple got bigger and bigger and bigger, the question was always what super cool innovation the company could come up with that would move the sales needle of a $3 trillion behemoth,” Jason said. He also noted that the headset will be the first new major product from Apple since the company launched its smartwatch nearly nine years ago.
Users will be able to control the headset using their hands, eyes, and voice. It can switch from computer mode to augmented reality (AR) to virtual reality (VR) to just plain reality, and it will be available early next year for around $3,500. So, will this move the needle?
“Honestly, I’m not sure,” Jason said. But he pointed out a key insight in that Apple has a history of making us realize we need something we never thought we needed before. And going beyond that, he was able to run AAPL through his Quantum Edge system to see what kind of investing strategies to consider.
Putting AAPL Under the Quantum Edge Microscope
Here’s what Jason found:
Quantum Score: 77.6. Excellent. Right in the target “buy” zone. Fundamental Score: 66.7. Very good. But not blow-the-roof-off outstanding. One- and three-year sales growth is “okay” — but not great. That’s not surprising for a company of Apple’s size — especially in the inflation-ridden environment of the last year. Earnings growth is expected to accelerate over the coming three years. Profit margins are good. And valuations are a little rich after the stock’s 40% climb here in 2023.
Technical Score: 85.3. Very strong, which is also not surprising after the big run. Shares recently hit a new 52-week high. That means they were trading above their key moving averages and internal technical measures also show strength.
Then there’s Big Money: Institutions account for 70% to 90% of daily volume and an influx of Big Money can move stock prices. Institutions own 60% of shares, and his system has picked up 12 “buy” signals (unusually heavy buying) in the last 90 days:
Jason says that Apple pretty well checks all of his Quantum Edge boxes… very good fundamentals, exceptionally strong technicals, and Big Money is flowing in. He said when you put everything together, it gives AAPL stock a 70% chance of rising from current prices, which equals the overall success rate of his system. But the question of course is… How much more does it rise?
Jason warns that the company’s massive market value, huge top line, and recent surge might limit the upside a bit. But he also says it is hard to find a whole bunch wrong with Apple right now.
Bottom line: Jason says there are multiple ways to make money off companies riding gigantic megatrends. In this case, he thinks Apple and smaller companies riding the new virtual reality (VR) and augmented reality (AR) trend could be poised to keep moving higher.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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he unveiling of a new “mixed-reality” headset from Apple Inc. (AAPL) is more than just a news blurb — it could be a make-or-break moment for the iconic tech company, because according to data from our friends at LikeFolio, demand for Apple’s current roster of products is slipping. And going beyond that, he was able to run AAPL through his Quantum Edge system to see what kind of investing strategies to consider. Putting AAPL Under the Quantum Edge Microscope Here’s what Jason found: Quantum Score: 77.6.
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he unveiling of a new “mixed-reality” headset from Apple Inc. (AAPL) is more than just a news blurb — it could be a make-or-break moment for the iconic tech company, because according to data from our friends at LikeFolio, demand for Apple’s current roster of products is slipping. And going beyond that, he was able to run AAPL through his Quantum Edge system to see what kind of investing strategies to consider. Putting AAPL Under the Quantum Edge Microscope Here’s what Jason found: Quantum Score: 77.6.
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he unveiling of a new “mixed-reality” headset from Apple Inc. (AAPL) is more than just a news blurb — it could be a make-or-break moment for the iconic tech company, because according to data from our friends at LikeFolio, demand for Apple’s current roster of products is slipping. And going beyond that, he was able to run AAPL through his Quantum Edge system to see what kind of investing strategies to consider. Putting AAPL Under the Quantum Edge Microscope Here’s what Jason found: Quantum Score: 77.6.
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He said when you put everything together, it gives AAPL stock a 70% chance of rising from current prices, which equals the overall success rate of his system. he unveiling of a new “mixed-reality” headset from Apple Inc. (AAPL) is more than just a news blurb — it could be a make-or-break moment for the iconic tech company, because according to data from our friends at LikeFolio, demand for Apple’s current roster of products is slipping. And going beyond that, he was able to run AAPL through his Quantum Edge system to see what kind of investing strategies to consider.
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15415.0
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2023-06-09 00:00:00 UTC
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Breaking Down The Big 7 Tech Players' Outsized Roles
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AAPL
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https://www.nasdaq.com/articles/breaking-down-the-big-7-tech-players-outsized-roles
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nan
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nan
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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 AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Meta META, Nvidia NVDA & Tesla TSLA – 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, as the chart below shows.
Image Source: Zacks Investment Research
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 the chart below that shows 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.
Image Source: Zacks Investment Research
The chart below shows this expected growth picture for the 493 S&P 500 members. In other words, we have excluded the contribution from the Big 7 Tech Players.
Image Source: Zacks Investment Research
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.
The chart below shows the year-over-year change in net income margins for the S&P 500 index.
Image Source: Zacks Investment Research
As you can see above, 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.
The chart below shows the earnings and revenue growth picture on an annual basis.
Image Source: Zacks Investment Research
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.
The chart below shows current earnings and revenue growth expectations for the ‘Big 7 Tech Players.’
Image Source: Zacks Investment Research
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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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This note is focused on the outsized role of the ‘Big 7 Tech Players’ – Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Meta META, Nvidia NVDA & Tesla TSLA – in the market’s strong performance this year. 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. 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 note is focused on the outsized role of the ‘Big 7 Tech Players’ – Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Meta META, Nvidia NVDA & Tesla TSLA – in the market’s strong performance this year. 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. Sectors enjoying positive estimate revisions since the start of Q2 include Construction, Industrial Products, Autos, Tech, and Retail.
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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 note is focused on the outsized role of the ‘Big 7 Tech Players’ – Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Meta META, Nvidia NVDA & Tesla TSLA – in the market’s strong performance this year. To get a sense of what is currently expected, take a look at the chart below that shows 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 note is focused on the outsized role of the ‘Big 7 Tech Players’ – Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Meta META, Nvidia NVDA & Tesla TSLA – in the market’s strong performance this year. 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. Current consensus expectations call for the group’s earnings share to increase to 17.2% in 2024 and 18.4% in 2025.
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2023-06-09 00:00:00 UTC
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3 Semiconductor Stocks That Could Skyrocket in the Next 12 Months
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https://www.nasdaq.com/articles/3-semiconductor-stocks-that-could-skyrocket-in-the-next-12-months
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There is no denying the fact that artificial intelligence (AI) is the future and it is here to stay. We have already seen AI powering massive growth for tech companies in the last couple of months. With companies going all out with their AI investments, it is time to understand their future potential. Chips lie at the heart of tech companies and they lead growth. Tech companies are out of their tumultuous period and are steadily rising. This means investors should start looking for best semiconductor stocks for investment.
Internet of Things, 5G, or autonomous vehicles, all these segments are dependent on chips and even cloud computing works on chips. If you want to make the most of the growth of data centers and AI, now is the time to invest in chip-manufacturing companies. There’s a good chance we could see a few chip leaders in the industry over the next year.
Smart investors understand that to benefit from today’s trends, it is important to invest in high-growth potential companies. With that in mind, let’s take a look at the three top semiconductor stocks that could skyrocket in the next 12 months.
Top semiconductor stocks: Nvidia (NVDA)
Source: Poetra.RH / Shutterstock.com
Nvidia (NASDAQ:NVDA) is already trading near its all-time high but there is a lot more to come for this tech giant. Already a leader in the semiconductor industry, it is making the most of the AI boom. The recent quarterly results were impressive and the company expects even better quarters this year. NVDA stock is trading at $374 today and it is at a premium right now but there is potential for higher growth. Already up 161% year to date, Nvidia is a leader in the semiconductor space and it is taking big strides in the industry. Several tech companies are the beneficiaries of Nvidia’s success but if you want the gold stock, it is NVDA.
The company had expanded at a rapid pace in the pandemic when gaming took off. But its data center business took the revenue numbers to a new high. This was followed by the AI adoption and now there’s no stopping Nvidia. Many might argue that the stock is already at a high and is not cheap. Yes, it is true but you should not undermine the potential of NVDA stock.
While it might be trading near an all-time high, it will certainly hit a new high in the next 12 months. I’ve said it in the past and I’ll say it again, buy and hold NVDA stock for massive gains. The company expects the sales to reach around $11 billion in the three months ending July and with each quarter, it will report blowout numbers.
Bank of America considers NVDA stock a buy and has a price target of $500. The company virtually controls a large GPU market and it is set to benefit from the AI boom. The bank believes that the tech company has several under appreciated opportunities that can help expand its market share in the near future. There is a bullish sentiment towards the stock and I believe it can generate solid returns in the next 12 months. It is one of the high return semiconductor stocks to grab before it gets too late.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
A big player in the semiconductor industry, Advanced Micro Devices (NASDAQ:AMD) garnered headlines for its AI partnerships. The company is here to gain its fair share of the AI boom. AMD aims to introduce new products that will help gain a larger market share. AMD will soon be launching the MI300 chip which will play a significant role in the AI space. The chip will combine the CPU and GPU cores with fast memory on a single chip package. I believe the demand for this chip will be strong and it will drive revenue for the company. If you are looking for semiconductor stocks to skyrocket, AMD is the one to own.
AMD’s chips are a favorite of several tech giants including Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL), Alphabet (NASDAQ:GOOG), and Amazon (NASDAQ:AMZN). They use the chips for cloud computing and with more businesses joining this chipmaker, it will show strong growth. AMD stock is trading at $117 today and is up 84% year to date. The stock was at $64 in Jan and is steadily marching ahead. It has generated over 650% results in the last five years. Compared to the other semiconductor stocks in the industry, AMD looks fairly valued and is a strong buy before it skyrockets.
The company posted solid quarterly results and also raised the guidance. It has a market cap of $204 billion and its chips are one of the best in the industry. The company makes chips for AI applications and as the demand for chips continues to grow, AMD is set to benefit. If the company can manage to achieve the growth it showed over the last decade, it could become one of the biggest winners in the tech industry. BofA has raised the price target of the stock to $135 and Citi has a target of $150.
Taiwan Semiconductor Manufacturing (TSM)
Source: sdx15 / Shutterstock.com
Taiwan Semiconductor (NYSE:TSM) is a popular but highly undervalued semiconductor company. One of the top semiconductor stocks, it holds about 60% of the total market share in chip fabrication and manufactures over 90% of the top semiconductors that are used today. Some of its biggest customers include Apple (NASDAQ:AAPL), Nvidia, and AMD. The company did see a drop in revenue year over year in the first quarter but the EPS rose by 2.1%.
As the demand for chips continues to grow, Taiwan Semiconductor has massive upside potential. It enjoys an operating margin of 45% and the management expects it to remain strong in the long term. TSMC is already enjoying a dominant position in the industry and it could be the biggest beneficiary of the AI boom due to its contracts with tech leaders in the industry. It has a market share that is hard to compete with which makes it one of the high potential semiconductor stocks today.
TSMC stock is trading at $100 today and is up 35% year to date. Like all the other semiconductor stocks, it has been moving upward for the past six months. Its 52-week high is $106 but I believe the stock will hit a new high very soon. It posted strong numbers in the recent quarter and its net income margin was close to 40%. A demand spike could take the numbers higher and I expect even better earnings growth in the coming quarters.
On the date of publication, Vandita Jadeja 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.
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 3 Semiconductor Stocks That Could Skyrocket in the Next 12 Months 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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Some of its biggest customers include Apple (NASDAQ:AAPL), Nvidia, and AMD. Smart investors understand that to benefit from today’s trends, it is important to invest in high-growth potential companies. The company expects the sales to reach around $11 billion in the three months ending July and with each quarter, it will report blowout numbers.
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Some of its biggest customers include Apple (NASDAQ:AAPL), Nvidia, and AMD. Top semiconductor stocks: Nvidia (NVDA) Source: Poetra.RH / Shutterstock.com Nvidia (NASDAQ:NVDA) is already trading near its all-time high but there is a lot more to come for this tech giant. Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com A big player in the semiconductor industry, Advanced Micro Devices (NASDAQ:AMD) garnered headlines for its AI partnerships.
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Some of its biggest customers include Apple (NASDAQ:AAPL), Nvidia, and AMD. Top semiconductor stocks: Nvidia (NVDA) Source: Poetra.RH / Shutterstock.com Nvidia (NASDAQ:NVDA) is already trading near its all-time high but there is a lot more to come for this tech giant. Taiwan Semiconductor Manufacturing (TSM) Source: sdx15 / Shutterstock.com Taiwan Semiconductor (NYSE:TSM) is a popular but highly undervalued semiconductor company.
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Some of its biggest customers include Apple (NASDAQ:AAPL), Nvidia, and AMD. If you are looking for semiconductor stocks to skyrocket, AMD is the one to own. The company makes chips for AI applications and as the demand for chips continues to grow, AMD is set to benefit.
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2023-06-09 00:00:00 UTC
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Apple, Amazon must face consumer lawsuit over iPhone, iPad prices - US judge
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https://www.nasdaq.com/articles/apple-amazon-must-face-consumer-lawsuit-over-iphone-ipad-prices-us-judge
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By Mike Scarcella
June 9 (Reuters) - Apple AAPL.O and Amazon.com AMZN.O must face a consumer antitrust lawsuit in U.S. court accusing them of conspiring to artificially inflate the price of iPhones and iPads sold on Amazon's platform, a federal judge in Seattle ruled on Thursday.
In his ruling, U.S. District Judge John Coughenour rejected bids from Apple and Amazon to dismiss the prospective class action on various legal grounds.
Coughenour said the "validity" of the relevant market, a central issue in antitrust litigation, was a question for a jury.
The lawsuit, filed in November, is among several private and government actions challenging Amazon's online price practices. Coughenour's ruling means the case will move forward to evidence-gathering and other pretrial proceedings.
Lawyers for Apple and Amazon and representatives for the companies did not immediately respond to requests for comment on Friday.
Steve Berman, a lawyer for the plaintiffs, called the court's ruling "a major win for consumers of Apple phones and iPads."
The plaintiffs are U.S. residents who bought new iPhones and iPads on Amazon beginning in January 2019. They contend an agreement between Apple and Amazon that went into effect that year restricted the number of competitive resellers in violation of antitrust provisions.
In 2018, according to the lawsuit, there were some 600 third-party Apple resellers on Amazon. Apple agreed to give Amazon a discount on its products if Amazon reduced the number of Apple resellers from its marketplace, the lawsuit alleged.
Apple has argued that its agreement with Amazon limited the number of authorized resellers to help minimize counterfeit Apple goods being sold on the e-commerce platform.
In a court filing, Apple's attorneys called the agreement "commonplace" and said the "Supreme Court and Ninth Circuit have routinely recognized that such agreements are procompetitive and lawful."
The judge in Seattle said "countervailing" motivations for the agreement between Apple and Amazon would be addressed later in the litigation.
Apple recorded $94.8 billion in sales in the second quarter, and Amazon reported $127.4 billion in its most recent quarterly earnings report.
The complaint seeks unspecified triple damages and other relief.
The case is Steven Floyd v Amazon.com Inc and Apple Inc, U.S. District Court, Western District of Washington, No. 2:22-cv-01599-JCC.
Read more:
Apple, Epic ask US appeals court to reconsider its antitrust ruling
Amazon loses bid to toss consumer antitrust lawsuit
Lawsuit claims Apple, Amazon colluded to raise iPhone, iPad prices
(Reporting by Mike Scarcella; editing by Leigh Jones)
((Mike.Scarcella@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella June 9 (Reuters) - Apple AAPL.O and Amazon.com AMZN.O must face a consumer antitrust lawsuit in U.S. court accusing them of conspiring to artificially inflate the price of iPhones and iPads sold on Amazon's platform, a federal judge in Seattle ruled on Thursday. In his ruling, U.S. District Judge John Coughenour rejected bids from Apple and Amazon to dismiss the prospective class action on various legal grounds. Read more: Apple, Epic ask US appeals court to reconsider its antitrust ruling Amazon loses bid to toss consumer antitrust lawsuit Lawsuit claims Apple, Amazon colluded to raise iPhone, iPad prices (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella June 9 (Reuters) - Apple AAPL.O and Amazon.com AMZN.O must face a consumer antitrust lawsuit in U.S. court accusing them of conspiring to artificially inflate the price of iPhones and iPads sold on Amazon's platform, a federal judge in Seattle ruled on Thursday. In his ruling, U.S. District Judge John Coughenour rejected bids from Apple and Amazon to dismiss the prospective class action on various legal grounds. Read more: Apple, Epic ask US appeals court to reconsider its antitrust ruling Amazon loses bid to toss consumer antitrust lawsuit Lawsuit claims Apple, Amazon colluded to raise iPhone, iPad prices (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella June 9 (Reuters) - Apple AAPL.O and Amazon.com AMZN.O must face a consumer antitrust lawsuit in U.S. court accusing them of conspiring to artificially inflate the price of iPhones and iPads sold on Amazon's platform, a federal judge in Seattle ruled on Thursday. Apple agreed to give Amazon a discount on its products if Amazon reduced the number of Apple resellers from its marketplace, the lawsuit alleged. Read more: Apple, Epic ask US appeals court to reconsider its antitrust ruling Amazon loses bid to toss consumer antitrust lawsuit Lawsuit claims Apple, Amazon colluded to raise iPhone, iPad prices (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella June 9 (Reuters) - Apple AAPL.O and Amazon.com AMZN.O must face a consumer antitrust lawsuit in U.S. court accusing them of conspiring to artificially inflate the price of iPhones and iPads sold on Amazon's platform, a federal judge in Seattle ruled on Thursday. Steve Berman, a lawyer for the plaintiffs, called the court's ruling "a major win for consumers of Apple phones and iPads." Apple has argued that its agreement with Amazon limited the number of authorized resellers to help minimize counterfeit Apple goods being sold on the e-commerce platform.
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2023-06-09 00:00:00 UTC
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If You'd Invested $10,000 in American Tower in 2013, This Is How Much You Would Have Today
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https://www.nasdaq.com/articles/if-youd-invested-%2410000-in-american-tower-in-2013-this-is-how-much-you-would-have-today
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Even after falling 10% so far in 2023, shares of the cell tower owner American Tower (NYSE: AMT) have essentially performed as well as the S&P 500 index over the past 10 years. The stock would have turned a $10,000 investment in 2013 into $29,000 with dividends reinvested. That's a touch below the $32,000 that the same investment in the S&P 500 index would have produced.
What generated the real estate investment trust's (REIT) strong returns in the past? And can American Tower bounce back from its underperformance in recent months? Let's dig into the company's fundamentals and valuation to get some answers.
Robust growth catalysts that should persist
American Tower's success as an investment over the past decade has coincided with a powerful trend: the rise of the smartphone. Since the launch of Apple's (NASDAQ: AAPL) iPhone in 2007, the total number of smartphone users has grown from zero to an estimated 6.8 billion as of 2023.
Such huge demand for smartphones and the data they need to operate drove enormous growth in the number of American Tower's communications sites. The company's communications site count quadrupled from just shy of 55,000 at the end of 2012 to 226,000 as of March 31, 2023. This is what propelled American Tower's total revenue to soar from $2.9 billion in 2012 to $10.7 billion in 2022.
Strong growth should continue for the company. That's because, for one, it is anticipated that the total number of smartphone users will increase by nearly a billion to 7.7 billion by 2027. This will require the construction of tens of thousands of additional cell towers to support growing demand for mobile data. Second, the average monthly data consumption per smartphone user is projected to double or even triple in major markets for American Tower, such as the U.S., Brazil, Mexico, and South Africa. That's due to the emergence of newer technologies like the Internet of Things and virtual reality. This is why it is likely that the company could generate at least high-single-digit percentage annual adjusted funds from operations (AFFO) per share growth over the medium term.
Image source: Getty Images.
The dividend can keep growing
American Tower's 3.3% dividend yield is more than double the S&P 500 index's 1.6% yield. And not only does the company offer a significantly higher yield, the dividend has nearly sextupled in the past 10 years.
Data source: YCharts
Best of all, American Tower looks like it is poised to keep handing out healthy dividend growth to its shareholders. This is because the company's dividend payout ratio is set to come in at about 65% in 2023. This leaves the REIT with the capital needed to further build out its communications infrastructure to keep up with rising demand. That's probably why American Tower is confident enough to deliver dividend growth of about 10% in 2023 from 2022.
A cheap valuation
Sitting 33% below its 52-week high, shares of American Tower appear to be a no-brainer buy for dividend growth investors. This is because the company's forward price-to-AFFO-per-share ratio of 19.8 is arguably undervalued for its healthy growth potential. Further demonstrating American Tower's deep discount, its trailing-12-month dividend yield of 3.3% is well above its 10-year median yield of 1.8%. In fact, this is the highest yield the stock has sported in the past 10 years.
10 stocks we like better than American Tower
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They just revealed what they believe are the ten best stocks for investors to buy right now... and American Tower 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
Kody Kester has positions in American Tower and Apple. The Motley Fool has positions in and recommends American Tower and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since the launch of Apple's (NASDAQ: AAPL) iPhone in 2007, the total number of smartphone users has grown from zero to an estimated 6.8 billion as of 2023. Robust growth catalysts that should persist American Tower's success as an investment over the past decade has coincided with a powerful trend: the rise of the smartphone. Such huge demand for smartphones and the data they need to operate drove enormous growth in the number of American Tower's communications sites.
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Since the launch of Apple's (NASDAQ: AAPL) iPhone in 2007, the total number of smartphone users has grown from zero to an estimated 6.8 billion as of 2023. Such huge demand for smartphones and the data they need to operate drove enormous growth in the number of American Tower's communications sites. The dividend can keep growing American Tower's 3.3% dividend yield is more than double the S&P 500 index's 1.6% yield.
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Since the launch of Apple's (NASDAQ: AAPL) iPhone in 2007, the total number of smartphone users has grown from zero to an estimated 6.8 billion as of 2023. Even after falling 10% so far in 2023, shares of the cell tower owner American Tower (NYSE: AMT) have essentially performed as well as the S&P 500 index over the past 10 years. Such huge demand for smartphones and the data they need to operate drove enormous growth in the number of American Tower's communications sites.
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Since the launch of Apple's (NASDAQ: AAPL) iPhone in 2007, the total number of smartphone users has grown from zero to an estimated 6.8 billion as of 2023. What generated the real estate investment trust's (REIT) strong returns in the past? Such huge demand for smartphones and the data they need to operate drove enormous growth in the number of American Tower's communications sites.
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2023-06-09 00:00:00 UTC
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A Bull Market Is Coming: 2 Reasons to Buy Apple Stock
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-2-reasons-to-buy-apple-stock
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nan
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There's a buzz on Wall Street and in the tech world surrounding Apple (NASDAQ: AAPL) right now after its Worldwide Developers Conference (WWDC) on June 5.
The event saw the company announce a 15-inch MacBook Air, beefier Mac Studio, the long-awaited Apple Silicon Mac Pro, and many software updates across its product lineup. However, the biggest news from WWDC was its highly anticipated first step into the virtual/augmented reality (VR/AR) market with a new headset called the Vision Pro. The totally new product has massive potential over the long term and could change the face of computing and home entertainment if all goes according to Apple's plan.
Alongside the product announcements, Apple's outlook is growing stronger thanks to easing inflation. The consumer price index has improved for ten consecutive months, with prices rising 4.9% in April after hitting a high of 9.1% in June 2022. The correction could trigger a new bull market as different companies report revenue gains over the next year.
A bull market might be coming, so here are two reasons to buy Apple stock.
1. The AR market is projected to hit $461 billion by 2030
Apple's Vision Pro has put it on top of the high-growth AR industry. While companies like Sony and Meta have released virtual reality devices, which have been primarily adopted by gamers, no headset has delved as deeply into augmented reality as Apple has. The iPhone company's Vision Pro is an entire computer in the form of a headset, allowing for countless use cases.
The product makes it possible to overlay your environment with anything from productivity programs like word processing and video editing to entertainment activities such as watching films and sports games. Meanwhile, a dial on the Vision Pro lets users switch to a fully immersive VR environment for more focused activities.
According to data from Market Research Future, the AR market is expected to reach $461 billion in 2030, expanding at a compound annual growth rate of 42%. As Apple's Vision Pro grants users far more AR capabilities than other available headsets, it is well positioned to profit significantly from that growth.
While Apple's new headset has taken leaps in the innovation of AR and VR, it will likely be held back by its price of $3,500. The high cost means this first-generation device will be out of reach for many consumers. However, that doesn't mean lower-priced versions won't take off with the public in the coming years. Apple's solid history of taking existing technology and using its unique designs to bolster consumer adoption makes its stock immensely attractive right now.
2. Apple shows stability in uncertain times
Alongside a strong outlook in AR and VR, Apple is home to a consistently stable business. Amid macroeconomic headwinds in 2022, countless companies suffered from a marketwide sell-off. While Apple was not unscathed, its stock tumble was the only one among some of its biggest competitors to outperform the Nasdaq Composite index (see the chart below).
Data by YCharts
Apple shares have risen 268% in the last five years. Meanwhile, the company's annual revenue and operating income climbed over 48% in the same period. Apple has a reputation for being a solid growth stock thanks to consistent demand for its products. The company achieved leading market shares in smartphones, tablets, headphones, and smartwatches due to nearly unrivaled brand loyalty from consumers.
This allegiance by shoppers has fortified its business and provided investors with unyielding stock growth over the long term. As a result, it's not surprising that Warren Buffett's holding company Berkshire Hathaway has made Apple 47% of its portfolio. In fact, the iPhone company's stock has increased by 575% since 2016 when Berkshire first invested in the company.
Apple's dominance in consumer tech gives it the best chance of succeeding in the high-growth VR/AR sector. Along with a consistently expanding business, the company's stock is an increasingly attractive investment ahead of a potential bull market.
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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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, 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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There's a buzz on Wall Street and in the tech world surrounding Apple (NASDAQ: AAPL) right now after its Worldwide Developers Conference (WWDC) on June 5. Apple's solid history of taking existing technology and using its unique designs to bolster consumer adoption makes its stock immensely attractive right now. The company achieved leading market shares in smartphones, tablets, headphones, and smartwatches due to nearly unrivaled brand loyalty from consumers.
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There's a buzz on Wall Street and in the tech world surrounding Apple (NASDAQ: AAPL) right now after its Worldwide Developers Conference (WWDC) on June 5. Along with a consistently expanding business, the company's stock is an increasingly attractive investment ahead of a potential bull 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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There's a buzz on Wall Street and in the tech world surrounding Apple (NASDAQ: AAPL) right now after its Worldwide Developers Conference (WWDC) on June 5. A bull market might be coming, so here are two reasons to buy Apple stock. Apple shows stability in uncertain times Alongside a strong outlook in AR and VR, Apple is home to a consistently stable business.
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There's a buzz on Wall Street and in the tech world surrounding Apple (NASDAQ: AAPL) right now after its Worldwide Developers Conference (WWDC) on June 5. As Apple's Vision Pro grants users far more AR capabilities than other available headsets, it is well positioned to profit significantly from that growth. Apple has a reputation for being a solid growth stock thanks to consistent demand for its products.
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15420.0
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2023-06-09 00:00:00 UTC
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GRAPHIC-How US stocks rose 20% from their lows, and where they might be going
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AAPL
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https://www.nasdaq.com/articles/graphic-how-us-stocks-rose-20-from-their-lows-and-where-they-might-be-going
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nan
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By Saqib Iqbal Ahmed
NEW YORK, June 9 (Reuters) - U.S. stocks have defied fears of a recession, a banking crisis and soaring Treasury yields to rise 20% from their October lows - one definition of a bull market.
The benchmark S&P 500 index closed at a low of 3,577.03 on Oct. 12, 2022, down 25% from its all-time high after the Federal Reserve unleashed a series of bruising interest rate increases to fight decades-high inflation.
On Thursday, it closed up 0.6% at 4,293.93, amid growing optimism over the economic outlook and a rate hiking cycle that appears to be nearing its end. Here are some features of the index's rally, and a look at where stocks might go from here.
While markets seldom rise in a straight line, the S&P 500's journey from the bottom took 164 days - the longest 20% climb from a bear market low in five decades. Among the factors holding stocks back was a surge in Treasury yields to their highest levels in decades that dulled the allure of equities by offering investors the potential to earn attractive income in government-backed bonds.
A crisis that saw the biggest bank busts since the Great Recession also shook investor confidence, as did worries over a potentially catastrophic fight over lifting the U.S. debt ceiling.
The narrow breadth of the S&P 500's rally has been a concern for some investors, with just seven stocks - Alphabet GOOGL.O, Apple AAPL.O, Microsoft MSFT.O, Amazon AMZN.O, Meta META.O, Nvidia NVDA.O and Tesla TSLA.O - responsible for almost all of the index's gains this year. Many investors view these stocks as safe bets in uncertain times. Their gains were also driven by excitement over advances in artificial intelligence.
More recently, however, the market's gains have shown tentative signs of broadening out to other stocks.
Meanwhile, volatility has subsided - not only in stocks, but in Treasuries and currencies.
One reason for the calm in markets is investors' belief that the Fed is unlikely to deliver many more of the rate hikes that shook asset prices last year.
Investors have also been encouraged by evidence showing that the U.S. economy continues to be resilient in the face of the central bank's monetary tightening, while inflation slowly cools. The U.S. Citigroup Economic Surprise Index .CESIUSD shows U.S. economic data has in aggregate topped market expectations, helped by stronger than expected numbers for employment and consumer spending.
A 20% gain from bear market lows has in the past heralded further upside for stocks.
In four of the last six bear markets, the S&P went on to rise 20% or more in the six months after hitting this milestone.
GRAPHIC: Bear market highlights https://tmsnrt.rs/466RyFF
GRAPHIC: Taking its time https://tmsnrt.rs/43r9itm
GRAPHIC: S&P 500 gets a lift from heavyweights https://tmsnrt.rs/3P2NIHj
GRAPHIC: Breadth https://tmsnrt.rs/3J5EYfL
GRAPHIC: Volatility vaporized https://tmsnrt.rs/42qbY9v
GRAPHIC: U.S. outperformance https://tmsnrt.rs/3J4G37t
GRAPHIC: What now? https://tmsnrt.rs/45QZVF1
(Reporting by Saqib Iqbal Ahmed; Writing by Ira Iosebashvili; Editing by Daniel Wallis)
((saqib.ahmed@thomsonreuters.com; @SaqibReports; +1 332 219 1971; Reuters Messaging: saqib.ahmed.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 narrow breadth of the S&P 500's rally has been a concern for some investors, with just seven stocks - Alphabet GOOGL.O, Apple AAPL.O, Microsoft MSFT.O, Amazon AMZN.O, Meta META.O, Nvidia NVDA.O and Tesla TSLA.O - responsible for almost all of the index's gains this year. By Saqib Iqbal Ahmed NEW YORK, June 9 (Reuters) - U.S. stocks have defied fears of a recession, a banking crisis and soaring Treasury yields to rise 20% from their October lows - one definition of a bull market. The benchmark S&P 500 index closed at a low of 3,577.03 on Oct. 12, 2022, down 25% from its all-time high after the Federal Reserve unleashed a series of bruising interest rate increases to fight decades-high inflation.
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The narrow breadth of the S&P 500's rally has been a concern for some investors, with just seven stocks - Alphabet GOOGL.O, Apple AAPL.O, Microsoft MSFT.O, Amazon AMZN.O, Meta META.O, Nvidia NVDA.O and Tesla TSLA.O - responsible for almost all of the index's gains this year. By Saqib Iqbal Ahmed NEW YORK, June 9 (Reuters) - U.S. stocks have defied fears of a recession, a banking crisis and soaring Treasury yields to rise 20% from their October lows - one definition of a bull market. The U.S. Citigroup Economic Surprise Index .CESIUSD shows U.S. economic data has in aggregate topped market expectations, helped by stronger than expected numbers for employment and consumer spending.
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The narrow breadth of the S&P 500's rally has been a concern for some investors, with just seven stocks - Alphabet GOOGL.O, Apple AAPL.O, Microsoft MSFT.O, Amazon AMZN.O, Meta META.O, Nvidia NVDA.O and Tesla TSLA.O - responsible for almost all of the index's gains this year. By Saqib Iqbal Ahmed NEW YORK, June 9 (Reuters) - U.S. stocks have defied fears of a recession, a banking crisis and soaring Treasury yields to rise 20% from their October lows - one definition of a bull market. GRAPHIC: Bear market highlights https://tmsnrt.rs/466RyFF GRAPHIC: Taking its time https://tmsnrt.rs/43r9itm GRAPHIC: S&P 500 gets a lift from heavyweights https://tmsnrt.rs/3P2NIHj GRAPHIC: Breadth https://tmsnrt.rs/3J5EYfL GRAPHIC: Volatility vaporized https://tmsnrt.rs/42qbY9v GRAPHIC: U.S. outperformance https://tmsnrt.rs/3J4G37t GRAPHIC: What now?
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The narrow breadth of the S&P 500's rally has been a concern for some investors, with just seven stocks - Alphabet GOOGL.O, Apple AAPL.O, Microsoft MSFT.O, Amazon AMZN.O, Meta META.O, Nvidia NVDA.O and Tesla TSLA.O - responsible for almost all of the index's gains this year. By Saqib Iqbal Ahmed NEW YORK, June 9 (Reuters) - U.S. stocks have defied fears of a recession, a banking crisis and soaring Treasury yields to rise 20% from their October lows - one definition of a bull market. A 20% gain from bear market lows has in the past heralded further upside for stocks.
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15421.0
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2023-06-09 00:00:00 UTC
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77% of Warren Buffett's $347 Billion Portfolio Is Invested in Only 5 Stocks
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AAPL
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https://www.nasdaq.com/articles/77-of-warren-buffetts-%24347-billion-portfolio-is-invested-in-only-5-stocks
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nan
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nan
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For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been running circles around Wall Street. Through June 4, 2023, the Oracle of Omaha had overseen a 4,064,706% return in his company's Class A shares (BRK.A) since taking the reins.
The interesting thing about Buffett's success is that there aren't any secrets to what he's doing. The Oracle of Omaha has openly discussed how he values businesses, what attributes he and his investing team look for in a company, and how long he intends to hold the positions he and his team take.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But if there's one key ingredient to Warren Buffett's success that doesn't get enough credit, it's portfolio concentration. Both Buffett and his right-hand man Charlie Munger firmly believe that diversification is only necessary if you don't know what you're doing. This dynamic duo would much rather pile into a few really great ideas and allow their investment theses to play out over time.
This is why approximately 77% ($266.2 billion) of Warren Buffett's $347 billion portfolio at Berkshire Hathaway is invested in only five stocks.
Apple: $165.7 billion (47.7% of invested assets)
Even though Berkshire Hathaway holds stakes in roughly four dozen securities, there's no question that Warren Buffett favors portfolio concentration based on the amount of capital tied up in tech stock Apple (NASDAQ: AAPL). Admittedly, the Oracle of Omaha and his team have gained around 300% on their Apple stake. But with a market value of $165.7 billion, Apple is closing in on half of Berkshire's invested assets.
While having so much capital tied up in Apple might be viewed as a risk, Warren Buffett views America's largest company by market cap as Berkshire Hathaway's best business.
Apple has a phenomenal management team, led by CEO Tim Cook. In addition to maintaining its smartphone dominance in the U.S., Cook is overseeing the steady growth of Apple's services business. Shifting to a subscription-driven platform will allow Apple to improve its operating margin over time and lessen its reliance on physical products, which can undergo some pretty wild revenue swings during product replacement cycles.
Apple is also one of the most-recognized brands globally, and is frequently named as one of the world's most-valuable brands. The Oracle of Omaha is a big believer in companies that earn and retain consumers' trust.
However, Apple's capital-return program may be its crown jewel -- at least in the eyes of Buffett. Over the past decade, Apple has repurchased $586 billion worth of its common stock, which is more than the market cap of 492 of the 500 companies that make up the S&P 500.
Bank of America: $29.7 billion (8.5% of invested assets)
The second stock that makes up a significant portion of Warren Buffett's portfolio is Bank of America (NYSE: BAC). Berkshire Hathaway was given permission in August 2020 by the Federal Reserve Bank of Richmond to increase its stake in BofA up to 24.9% without being deemed a bank holding company. Buffett and his team have since upped their stake in BofA to 13%, which equates to 8.5% of Berkshire's invested assets.
The reason the Oracle of Omaha and his investing lieutenants (Ted Weschler and Todd Combs) love bank stocks is because they're long-term moneymakers. Despite being cyclical, banks benefit from periods of expansion lasting considerably longer than economic downturns. As the U.S. economy expands, so does the loan and deposit profile for banks.
What makes Bank of America such an interesting investment right now is its sensitivity to interest rates. Normally, rapidly rising interest rates and a hawkish Federal Reserve wouldn't be reason for investors to cheer. However, Bank of America is generating billions of dollars in added net-interest income each quarter thanks to the current rate-hiking cycle.
Bank of America's investments in technology are working in its favor, too. Over the trailing three-year period (ended March 31), the percentage of households banking digitally has increased five percentage points to 73%, while the percentage of loans sales completed online or via mobile app jumped 18 percentage points to 51%. Digital banking is considerably cheaper than in-person interactions, which should help improve BofA's operating efficiency.
American Express: $25.6 billion (7.4% of invested assets)
Have I mentioned that Warren Buffett favors financial stocks? Berkshire's third-largest position, credit-services provider American Express (NYSE: AXP), is a company that's been a continuous holding for the past 30 years.
The same cyclical investing premise for Bank of America holds true for AmEx. Even though consumer and business spending habits will ebb and flow with economic activity, the U.S. and global economy spend a disproportionately longer amount of time expanding than contracting. Buffett and his team know this and are simply allowing time to be their ally.
American Express enjoys the luxury of benefiting from both sides of the aisle during these long economic expansions. On top of being the third-largest payment processor in the U.S. by credit card network purchase volume, it also acts as a lender. In other words, it's collecting merchant fees and charging annual fees and/or collecting interest income from its cardholders.
If you're thinking American Express could struggle under the weight of loan losses during a recession, you'd be correct. But AmEx somewhat offsets its exposure to economic downturns through its ability to attract high earners. Individuals with high incomes are less likely to alter their spending habits or fail to pay their bills during periods of economic disruption. It means AmEx can bounce back from downturns faster than most lending institutions.
Image source: Coca-Cola.
Coca-Cola: $24.5 billion (7% of invested assets)
The fourth stock that comprises a large percentage of Warren Buffett's portfolio at Berkshire Hathaway is beverage company Coca-Cola (NYSE: KO). Coke is the only stock that's been a longer continuous holding (since 1988) than American Express.
Similar to Apple, Coca-Cola is a wholesale brand that consumers know and trust. It's quite possibly the best-known consumer goods brand on the planet.
What's helped Coca-Cola grow its brand value over time is its top-notch marketing. More than half of its advertising spend this year is going to digital campaigns, according to internal estimates from the company. Coca-Cola is also deploying artificial intelligence to create and tailor ad campaigns for younger audiences. Yet, the company can still rely on well-known brand ambassadors and its rich associations with the holidays to connect with more mature audiences.
Beyond its strong engagement trends, Coca-Cola has unsurpassed geographic diversity to rely on. It's operating in all but three countries worldwide and has 26 brands bringing home at least $1 billion in annual sales. This means Coke can count on predictable cash flow and sales in developed markets, while leaning on faster organic growth rates in emerging regions.
Coca-Cola is a rock-solid source of dividend income, too. It's raised its payout for 61 consecutive years and is yielding nearly 57% annually, relative to Berkshire Hathaway's cost basis in Coca-Cola.
Chevron: $20.7 billion (6% of invested assets)
The fifth and final stock that collectively accounts for 77% of the Oracle of Omaha's $347 billion portfolio overseen at Berkshire Hathaway is none other than energy giant Chevron (NYSE: CVX). Believe it or not, the $20.7 billion Berkshire holds in Chevron stock is down billions from where things stood just a few months prior.
Although energy stocks have never played a particularly large role in Berkshire's portfolio, a $20.7 billion position in an integrated oil and gas stock is a pretty clear indicator that Buffett, Weschler, and/or Combs expect the spot price of energy commodities to head higher.
While there are a number of probability indicators pointing to a possible U.S. recession, there are also macroeconomic factors that can buoy the spot price of oil. In particular, global energy majors reduced their capital expenditures (capex) considerably for three years during the COVID-19 pandemic. Capex is needed to maintain existing infrastructure as well as support production expansion. Less spending in this arena will make it difficult to ramp up global crude oil supply. In general, when the supply of a commodity is tight, it tends to lift the spot price of that product.
Additionally, Chevron is an integrated energy company. While it generates its best margins from drilling, Chevron also owns transmission pipelines, chemical plants, and refineries. Whereas its pipeline operations provide predictable operating cash flow in any economic environment, chemical plants and refineries act as a hedge to lower crude prices.
I'd also be remiss if I didn't mention that Chevron's board recently approved an up to $75 billion share repurchase program. Warren Buffett is a huge fan of businesses that reward long-term shareholders with dividends and share buybacks.
10 stocks we like better than Apple
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*Stock Advisor returns as of May 30, 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 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: $165.7 billion (47.7% of invested assets) Even though Berkshire Hathaway holds stakes in roughly four dozen securities, there's no question that Warren Buffett favors portfolio concentration based on the amount of capital tied up in tech stock Apple (NASDAQ: AAPL). The reason the Oracle of Omaha and his investing lieutenants (Ted Weschler and Todd Combs) love bank stocks is because they're long-term moneymakers. Berkshire's third-largest position, credit-services provider American Express (NYSE: AXP), is a company that's been a continuous holding for the past 30 years.
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Apple: $165.7 billion (47.7% of invested assets) Even though Berkshire Hathaway holds stakes in roughly four dozen securities, there's no question that Warren Buffett favors portfolio concentration based on the amount of capital tied up in tech stock Apple (NASDAQ: AAPL). Coca-Cola: $24.5 billion (7% of invested assets) The fourth stock that comprises a large percentage of Warren Buffett's portfolio at Berkshire Hathaway is beverage company Coca-Cola (NYSE: KO). Although energy stocks have never played a particularly large role in Berkshire's portfolio, a $20.7 billion position in an integrated oil and gas stock is a pretty clear indicator that Buffett, Weschler, and/or Combs expect the spot price of energy commodities to head higher.
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Apple: $165.7 billion (47.7% of invested assets) Even though Berkshire Hathaway holds stakes in roughly four dozen securities, there's no question that Warren Buffett favors portfolio concentration based on the amount of capital tied up in tech stock Apple (NASDAQ: AAPL). Bank of America: $29.7 billion (8.5% of invested assets) The second stock that makes up a significant portion of Warren Buffett's portfolio is Bank of America (NYSE: BAC). Coca-Cola: $24.5 billion (7% of invested assets) The fourth stock that comprises a large percentage of Warren Buffett's portfolio at Berkshire Hathaway is beverage company Coca-Cola (NYSE: KO).
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Apple: $165.7 billion (47.7% of invested assets) Even though Berkshire Hathaway holds stakes in roughly four dozen securities, there's no question that Warren Buffett favors portfolio concentration based on the amount of capital tied up in tech stock Apple (NASDAQ: AAPL). Coca-Cola: $24.5 billion (7% of invested assets) The fourth stock that comprises a large percentage of Warren Buffett's portfolio at Berkshire Hathaway is beverage company Coca-Cola (NYSE: KO). Chevron: $20.7 billion (6% of invested assets) The fifth and final stock that collectively accounts for 77% of the Oracle of Omaha's $347 billion portfolio overseen at Berkshire Hathaway is none other than energy giant Chevron (NYSE: CVX).
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15422.0
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2023-06-09 00:00:00 UTC
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Is Unity Software Stock a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-unity-software-stock-a-buy-now-3
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nan
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nan
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Unity Software (NYSE: U) got some of its mojo back this month thanks to the announcement of Apple's (NASDAQ: AAPL) latest product -- the Vision Pro. Apple says is a "revolutionary spatial computer that seamlessly blends digital content with the physical world, while allowing users to stay present and connected to others."
Revealed at Apple's recent Worldwide Developers Conference, the Vision Pro is a mixed-reality headset that "lets users interact with digital content in a way that feels like it is physically present in their space." Priced at $3,499, Apple's latest product is expected to go on sale in early 2024. Wall Street analysts looked at the announcement and started to speculate that the Vision Pro headset will need a bunch of solid 3D apps to gain traction among customers.
This is where Unity Software comes into play. Apple has decided to tap Unity's expertise in developing real-time 2D and 3D content. More specifically, Apple is working with Unity to help developers make apps for the new visionOS spatial operating system that's going to power the headset. This could open a massive market for Unity and further accelerate the company's already-impressive growth.
Unity Software is growing rapidly
Unity Software released its first-quarter 2023 results on May 10, and the company's solid performance gave the stock a nice boost. Unity's stock price shot up 35% in the past month, which is not surprising as its revenue jumped 56% year over year in Q1 to $500 million. The company exceeded its original guidance of $470 million to $480 million in revenue.
It also posted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $32 million. That was a nice improvement over the negative figure of $23 million seen in the year-ago period. More importantly, Unity sees an acceleration in its revenue in the current quarter. The company forecasts second-quarter revenue of $510 million to $520 million, which would be a jump of 72% to 75% over the year-ago period.
It expects adjusted EBITDA to land at $55 million at the midpoint of its guidance range, which would be a huge improvement over the adjusted EBITDA loss of $38 million it posted in the year-ago period. The company attributes its impressive growth to the growing demand for its Unity gaming engine, as well as the increasing adoption of its advertising and monetization services.
The company generated $187 million in revenue from the Create solutions segment last quarter, an improvement of 14% over the prior-year period. This segment includes revenue generated from the Unity gaming engine as well as the company's strategic partnerships with the likes of Apple, Microsoft, Alphabet, and others, which use its platform to develop content and games.
Meanwhile, the company's revenue from the Grow solutions segment, which includes revenue from advertising, doubled year over year to $313 million. This impressive growth was driven by Unity's acquisition of ironSource, an app-monetization company it bought last year for $4.4 billion. The acquisition seems to be bearing fruit, as evident from the company's Q2 guidance, which points toward stronger revenue growth.
It is also worth noting that the company expects to finish 2023 with $2.14 billion in revenue at the midpoint of its guidance range. That would be a 54% jump over last year's top line of $1.39 billion. Analysts also expect Unity to post a profit of $0.36 per share in 2023 as compared to a loss of $0.39 per share last year. And now, Apple could give Unity another opportunity to accelerate its growth.
That's because the global mixed reality market is expected to clock 42% annual growth over the next five years, according to Mordor Intelligence. The growth is driven by the growing application of this technology in educational institutions, entertainment, and healthcare. Apple could eventually become a top player in this nascent space, and Unity could benefit along with the tech giant.
Terrific growth ahead
We have already discussed that Unity is on track to finish 2023 with outstanding growth in its revenue and earnings. The good part is that the company is expected to sustain its momentum over the next couple of years as well.
U Revenue Estimates for Current Fiscal Year data by YCharts.
What's more, analysts forecast Unity's earnings will increase at an annual pace of 150% over the next five years. However, investors should note that Unity stock is trading at 7.5 times sales right now, which is on the expensive side, considering that the S&P 500 averages a price-to-sales ratio of 2.44.
But Unity Software's potential growth and its partnership with Apple could pay off handsomely in the future, which is why its rich valuation seems justified, and investors looking for a growth stock can consider buying it before it soars higher.
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 5, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Unity Software. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unity Software (NYSE: U) got some of its mojo back this month thanks to the announcement of Apple's (NASDAQ: AAPL) latest product -- the Vision Pro. Apple says is a "revolutionary spatial computer that seamlessly blends digital content with the physical world, while allowing users to stay present and connected to others." Revealed at Apple's recent Worldwide Developers Conference, the Vision Pro is a mixed-reality headset that "lets users interact with digital content in a way that feels like it is physically present in their space."
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Unity Software (NYSE: U) got some of its mojo back this month thanks to the announcement of Apple's (NASDAQ: AAPL) latest product -- the Vision Pro. This segment includes revenue generated from the Unity gaming engine as well as the company's strategic partnerships with the likes of Apple, Microsoft, Alphabet, and others, which use its platform to develop content and games. Meanwhile, the company's revenue from the Grow solutions segment, which includes revenue from advertising, doubled year over year to $313 million.
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Unity Software (NYSE: U) got some of its mojo back this month thanks to the announcement of Apple's (NASDAQ: AAPL) latest product -- the Vision Pro. Unity Software is growing rapidly Unity Software released its first-quarter 2023 results on May 10, and the company's solid performance gave the stock a nice boost. Unity's stock price shot up 35% in the past month, which is not surprising as its revenue jumped 56% year over year in Q1 to $500 million.
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Unity Software (NYSE: U) got some of its mojo back this month thanks to the announcement of Apple's (NASDAQ: AAPL) latest product -- the Vision Pro. Revealed at Apple's recent Worldwide Developers Conference, the Vision Pro is a mixed-reality headset that "lets users interact with digital content in a way that feels like it is physically present in their space." Meanwhile, the company's revenue from the Grow solutions segment, which includes revenue from advertising, doubled year over year to $313 million.
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15423.0
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2023-06-09 00:00:00 UTC
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NVDA to META: Insiders Capitalise on Tech Stocks Surge
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AAPL
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https://www.nasdaq.com/articles/nvda-to-meta%3A-insiders-capitalise-on-tech-stocks-surge
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nan
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nan
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Technology stocks rebounded strongly in 2023, delivering solid returns on a year-to-date basis. Taking advantage of this price appreciation, corporate insiders sold shares of (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Meta (NASDAQ:META), according to our Insiders Trading Activity tool.
Before we move ahead, it is important to highlight that insider selling of stocks does not always indicate a bad sign. However, keeping a tab on insiders’ activities can help retail investors make informed investment decisions.
Coming back to tech stocks, the recent rally has already raised concerns about the valuation and the possibility of a downturn or a correction, especially amid a weak macro backdrop. Several top investment firms, including Morgan Stanley, have warned of a sharp pullback in shares of technology companies.
Whether tech stocks could witness a correction remains a wait-and-see story. However, retail investors should take caution due to recent insider selling, notable price appreciation, and warnings from market pundits.
Against this backdrop, let’s look at what TipRanks’ Insider Trading Activity tool indicates about these stocks.
What is the Prediction for Nvidia Stock?
Nvidia stock has gained about 164% year-to-date on the back of solid demand for its AI (Artificial Intelligence)-led chips. Our data shows that four insiders made five Sell transactions in NVDA stock. Meanwhile, three insiders sold shares of Nvidia in June.
Harvey Jones, director at Nvidia, recently sold shares worth 28.43M. Overall, corporate Insiders sold NVDA shares worth $70.7M in the last three months. Further, the stock has a negative signal from insiders.
Nonetheless, Wall Street analysts are bullish about NVDA stock. It has received 32 Buy and four Hold recommendations for a Strong Buy consensus rating. Meanwhile, analysts’ average price target of $449.92 implies 16.83% upside potential.
Is AAPL a Good Stock to Buy Right Now?
Like NVDA, insiders sold AAPL stock in the last three months. Per the Insider Trading Activity tool, six insiders sold AAPL stock in 12 transactions in May 2023. Additionally, it is worth mentioning that three insiders have conducted sell transactions thus far in June.
Overall, insiders sold AAPL shares worth $709K in the past three months, with Chris Kondo, its Senior Director of Corporate Accounting, selling shares of an estimated value of $708.98K last month.
While Apple stock has a negative signal from insiders, it commands a Moderate Buy consensus rating based on 23 Buy, six Hold, and one Sell recommendations. Analysts’ average price target of $186.53 implies 3.3% upside potential from current levels.
Is Microsoft a Buy, Sell, or Hold?
Insiders sold MSFT shares worth $15.6M in the last quarter. Three insiders sold MSFT stock in seven transactions in May 2023. Further, two insiders have made three sell transactions so far in June. MSFT has a negative call from our Insider Trading Activity tool.
While insiders reduced their exposure to MSFT stock, Wall Street analysts maintain their bullish view. It has received 30 Buy, four Hold, and one Sell recommendations for a Strong Buy consensus rating. Further, these analysts’ average price target of $344.30 implies 5.6% upside potential.
What is the Price Target for Meta?
Meta Platforms stock, which has gained about 120% year-to-date, also has a negative signal from insiders. Per the Insider Trading Activity tool, six insiders sold META stock in 12 transactions in May 2023. Meanwhile, its CTO, Andrew Bosworth, sold META stock worth 71.94K.
Overall, insiders sold META shares worth $8.9M in the past three months.
While META stock has a negative signal from insiders, it has a Strong Buy consensus rating based on 38 Buy and five Hold. Analysts’ average price target of $287.32 implies 8.6% upside potential from current levels.
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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Taking advantage of this price appreciation, corporate insiders sold shares of (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Meta (NASDAQ:META), according to our Insiders Trading Activity tool. Is AAPL a Good Stock to Buy Right Now? Like NVDA, insiders sold AAPL stock in the last three months.
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Taking advantage of this price appreciation, corporate insiders sold shares of (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Meta (NASDAQ:META), according to our Insiders Trading Activity tool. Per the Insider Trading Activity tool, six insiders sold AAPL stock in 12 transactions in May 2023. Is AAPL a Good Stock to Buy Right Now?
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Taking advantage of this price appreciation, corporate insiders sold shares of (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Meta (NASDAQ:META), according to our Insiders Trading Activity tool. Per the Insider Trading Activity tool, six insiders sold AAPL stock in 12 transactions in May 2023. Is AAPL a Good Stock to Buy Right Now?
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Taking advantage of this price appreciation, corporate insiders sold shares of (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Meta (NASDAQ:META), according to our Insiders Trading Activity tool. Is AAPL a Good Stock to Buy Right Now? Like NVDA, insiders sold AAPL stock in the last three months.
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15424.0
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2023-06-09 00:00:00 UTC
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Should Invesco FTSE RAFI US 1000 ETF (PRF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-ftse-rafi-us-1000-etf-prf-be-on-your-investing-radar-7
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nan
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If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Invesco FTSE RAFI US 1000 ETF (PRF), a passively managed exchange traded fund launched on 12/19/2005.
The fund is sponsored by Invesco. It has amassed assets over $5.99 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.01%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 19.40% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 17.87% of total assets under management.
Performance and Risk
PRF seeks to match the performance of the FTSE RAFI US 1000 Index before fees and expenses. The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
The ETF return is roughly 3.76% so far this year and is up about 0.08% in the last one year (as of 06/09/2023). In the past 52-week period, it has traded between $138.77 and $165.35.
The ETF has a beta of 1 and standard deviation of 17.82% for the trailing three-year period, making it a medium risk choice in the space. With about 1013 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 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, PRF is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $49.88 billion in assets, Vanguard Value ETF has $97.89 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Invesco FTSE RAFI US 1000 ETF (PRF), a passively managed exchange traded fund launched on 12/19/2005.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Invesco FTSE RAFI US 1000 ETF (PRF), a passively managed exchange traded fund launched on 12/19/2005.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives Invesco FTSE RAFI US 1000 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, Berkshire Hathaway Inc (BRK/B) accounts for about 2.65% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Invesco FTSE RAFI US 1000 ETF (PRF), a passively managed exchange traded fund launched on 12/19/2005.
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15425.0
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2023-06-09 00:00:00 UTC
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3 Mid Caps You Haven't Heard Of But Need To Know About
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AAPL
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https://www.nasdaq.com/articles/3-mid-caps-you-havent-heard-of-but-need-to-know-about
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nan
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nan
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There have been plenty of headlines in recent weeks regarding the influence a few tech titans are having on the broader market rally that's underway, with some voices suggesting the S&P 500 would actually be down for the year if it were not for their outperformance.
But that's not to say that there aren't opportunities in stocks outside of powerhouses like Apple Inc (NASDAQ: AAPL) or Meta Platforms Inc (NASDAQ: META). Below are three mid-cap stocks that will not have been on the radar for most readers but whose recent performance warrants closer inspection and consideration. Let's jump in and see why.
Akero Therapeutics, Inc. (NASDAQ: AKRO)
First up is Akero, a $3 billion biotech based in San Francisco. Like many of their peers, their longer-term chart reflects the ups and downs that more experienced biotech investors will be accustomed to, as unknowable trial results and FDA comments largely dictate how the stock performs. But looking at how Akero's shares have performed in recent sessions, it's easy to tell that a recent catalyst came out on the positive side.
Akero's shares have jumped as much as 25% since the start of the month after management highlighted the potential of its liver disease therapy. EFX, when used alongside a popular weight loss drug class. Their Phase 2b study showed that EFX combined with GLP-1 led to a 65% reduction in liver fat, compared to a 10% reduction with GLP-1 alone. Safety results were comparable between the groups, and there were no serious adverse events related to the drugs.
Akero has been one of the best-performing mid-caps this week as a result, and while shares cooled somewhat in yesterday's session, they're less than a 10% move from all-time highs. And the best part? Akero has several more key catalysts on the 2023 roadmap that should draw in further volume on the bid.
C3.ai, Inc. (NYSE: AI)
Shares of C3.ai have been trading with massive volume in recent weeks, with enough of it on the bid to send them up more than 100% since the start of May. Considering how hot a topic A.I. has suddenly become, it's perhaps not all that surprising. With one of the most market-appropriate tickers in the business, C3.ai is well on its way to reversing the downtrend that's plagued shares since February 2021.
With a $4 billion market cap, they bill themselves as a leading Enterprise A.I. software provider for accelerating digital transformation, with banner customers such as Shell, Koch, and the U.S. Air Force already signed up. Even with yesterday's 5% dip, the stock is up 250% since the start of the year, and there's every reason to think it will continue to benefit from the red-hot A.I. name.
Investors looking to gain exposure to a lesser-known but heavily A.I.-focused name could do a lot worse than C3.ai. Look for shares to consolidate in the $30s after their recent rally before pushing on toward $50. Remember, this is a stock that soared to almost $200 during the heady days of 2020, and the wider AI-specific rally is really just starting now.
Joby Aviation Inc (NYSE: JOBY)
Last up is Joby, a $4 billion new-age aviation tech company focused on developing electric vertical takeoff and landing aircraft. Their shares have jumped as much as 80% since April, with this week alone seeing gains of more than 10%.
While much of their work is still in the theoretical and exploratory phase, Joby has already secured contracts with both Toyota and the U.S. Air Force, proving that their path to commercialization is well underway. In fact, their $55 million contract with the latter will see them delivering nine planes starting early next year.
Last month's additional $180 million raise will have only boosted their R&D capabilities, and they have almost no competitors. This first-mover advantage reminds us of Tesla Inc (NASDAQ: TSLA) in the electric vehicle space, and we're all familiar with how much of a tailwind that's been for the stock. When it comes to getting in on the ground floor of an industry-defining stock, it doesn't really get much better than this.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But that's not to say that there aren't opportunities in stocks outside of powerhouses like Apple Inc (NASDAQ: AAPL) or Meta Platforms Inc (NASDAQ: META). There have been plenty of headlines in recent weeks regarding the influence a few tech titans are having on the broader market rally that's underway, with some voices suggesting the S&P 500 would actually be down for the year if it were not for their outperformance. Like many of their peers, their longer-term chart reflects the ups and downs that more experienced biotech investors will be accustomed to, as unknowable trial results and FDA comments largely dictate how the stock performs.
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But that's not to say that there aren't opportunities in stocks outside of powerhouses like Apple Inc (NASDAQ: AAPL) or Meta Platforms Inc (NASDAQ: META). But looking at how Akero's shares have performed in recent sessions, it's easy to tell that a recent catalyst came out on the positive side. Akero has been one of the best-performing mid-caps this week as a result, and while shares cooled somewhat in yesterday's session, they're less than a 10% move from all-time highs.
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But that's not to say that there aren't opportunities in stocks outside of powerhouses like Apple Inc (NASDAQ: AAPL) or Meta Platforms Inc (NASDAQ: META). But looking at how Akero's shares have performed in recent sessions, it's easy to tell that a recent catalyst came out on the positive side. Akero's shares have jumped as much as 25% since the start of the month after management highlighted the potential of its liver disease therapy.
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But that's not to say that there aren't opportunities in stocks outside of powerhouses like Apple Inc (NASDAQ: AAPL) or Meta Platforms Inc (NASDAQ: META). But looking at how Akero's shares have performed in recent sessions, it's easy to tell that a recent catalyst came out on the positive side. Look for shares to consolidate in the $30s after their recent rally before pushing on toward $50.
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15426.0
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2023-06-09 00:00:00 UTC
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The Fintech Industry Will Be Worth $1.5 Trillion By 2030: 2 Magnificent Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/the-fintech-industry-will-be-worth-%241.5-trillion-by-2030%3A-2-magnificent-stocks-to-buy-now
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nan
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nan
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We don't yet live in a cashless society, but digital methods of payments and the broader fintech industry have been on the rise, and that trend is likely to continue for a while. According to some estimates, the fintech industry will be worth $1.5 trillion by 2030, up from $245 billion in 2021.
While exact estimates over relatively long periods are tricky to pull off, analysts typically agree that this market will remain northbound, even if they disagree on the details. You can, therefore, profit from this opportunity if you put your hard-earned money into the right stocks. Let's consider two excellent candidates: PayPal (NASDAQ: PYPL) and Apple (NASDAQ: AAPL).
1. PayPal
PayPal is an easy and obvious choice for investors looking to ride the fintech coattails through the end of the decade and beyond. The company is one of the leaders in this industry and has built a highly recognizable brand name. It ended the first quarter with 433 million active accounts, an increase of 1% year over year.
PayPal's ecosystem becomes increasingly attractive to sellers as more buyers join in, and vice versa. Research from the data analytics company Nielsen shows that when retailers accept PayPal as a payment method, it leads to more repeat buyers and more purchases. So merchants have an obvious incentive to offer it as a payment option; consumers clearly trust the company. That's why PayPal's acceptance rate has been growing -- it jumped by 3% year over year to 79% among the 1,500 largest online retailers in North America and Europe, as of the end of 2022.
PayPal has encountered issues over the past year and a half, as inflation and other economic problems led to lower consumer spending. And while its business was extremely strong during the early days of the pandemic, things have cooled off since then, creating unfavorable comparisons. That's to say nothing of the foreign exchange dynamics that also harmed the company's revenue growth last year.
Still, PayPal has delivered decent financial results throughout. In the first quarter, revenue of $7.04 billion increased by 9% from a year ago, while total payment volume of $354.5 billion came in at 10% higher than the year-ago period. Adjusted earnings per share (EPS) of $1.17 were 33% higher than the comparable period of the previous fiscal year.
Payment volume, revenue, and earnings should continue growing as PayPal expands its acceptance rate and makes headway in other markets, including serving more brick-and-mortar retailers. That's why the company can deliver solid returns through 2030 and beyond.
2. Apple
Apple isn't a pure-play fintech company. The tech giant is best known for its iPhone and other sleek (and expensive) gadgets. But it has been making a conscious effort to ramp up its services segment, including its fintech offerings. They include Apple Pay; a buy-now-pay-later service; and a high-yield savings account.
Apple is not as recognized in the fintech industry as PayPal, but it's not a small player. As of the end of 2022, it had a 28% acceptance rate -- up 1% year over year -- with the same 1,500 online retailers among which PayPal's acceptance rate was 79%. By this metric it might seem like Apple isn't even competing in the same league as PayPal, but note that it was second among digital wallets in this category.
Besides, Apple's massive installed base should be instrumental in expanding its footprint in the industry. With more than 2 billion devices worldwide, the company doesn't even need to target consumers outside of its ecosystem to be successful. Merely targeting its loyal customers by introducing new fintech services, or seeking to ramp up existing services, could work wonders in the long run. That's why its fintech ambitions look attractive.
And, of course, investors get more than that by investing in Apple. Its services unit also offers Apple TV+, Apple Music, Apple Cloud, and more. The company remains a leader in smartphones and computer operating systems.
Its sales have dropped somewhat in the past couple of quarters, which isn't surprising considering the challenging economic conditions. In the second quarter of its fiscal year 2023 (which ended April 1), Apple's revenue of $94.8 billion dropped by 3% year over year, while its EPS remained flat at $1.52. But the services segment reported sales of $20.9 billion, 5.5% higher than the year-ago period and a record for the segment.
Apple's overall business should rebound once economic conditions get better. And over the long run, the company will benefit from its growing fintech business, and the rest of its high-margin services segment, to provide market-beating returns.
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Prosper Junior Bakiny has positions in PayPal. The Motley Fool has positions in and recommends Apple and PayPal. The Motley Fool recommends the following options: short June 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let's consider two excellent candidates: PayPal (NASDAQ: PYPL) and Apple (NASDAQ: AAPL). Research from the data analytics company Nielsen shows that when retailers accept PayPal as a payment method, it leads to more repeat buyers and more purchases. Payment volume, revenue, and earnings should continue growing as PayPal expands its acceptance rate and makes headway in other markets, including serving more brick-and-mortar retailers.
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Let's consider two excellent candidates: PayPal (NASDAQ: PYPL) and Apple (NASDAQ: AAPL). Payment volume, revenue, and earnings should continue growing as PayPal expands its acceptance rate and makes headway in other markets, including serving more brick-and-mortar retailers. As of the end of 2022, it had a 28% acceptance rate -- up 1% year over year -- with the same 1,500 online retailers among which PayPal's acceptance rate was 79%.
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Let's consider two excellent candidates: PayPal (NASDAQ: PYPL) and Apple (NASDAQ: AAPL). Apple Apple isn't a pure-play fintech company. As of the end of 2022, it had a 28% acceptance rate -- up 1% year over year -- with the same 1,500 online retailers among which PayPal's acceptance rate was 79%.
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Let's consider two excellent candidates: PayPal (NASDAQ: PYPL) and Apple (NASDAQ: AAPL). In the first quarter, revenue of $7.04 billion increased by 9% from a year ago, while total payment volume of $354.5 billion came in at 10% higher than the year-ago period. Apple Apple isn't a pure-play fintech company.
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15427.0
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2023-06-09 00:00:00 UTC
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How to Choose a Brokerage Account or Online Broker
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AAPL
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https://www.nasdaq.com/articles/how-to-choose-a-brokerage-account-or-online-broker
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nan
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nan
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When it comes to entering the world of investing, investors often find themselves faced with a multitude of questions.
"How do I choose a brokerage account?"
"What brokerage should I use?"
"How do I find a broker?"
These are common questions asked by individuals embarking on their investment journey. Let's take a few minutes to discuss these questions and provide valuable insights on how to choose a brokerage account and how to find the right broker.
Understanding the importance of choosing a brokerage account and online broker is paramount. After all, a brokerage account acts as the gateway to the financial markets, and the broker serves as your guide along this exciting path. But what is an online broker, exactly? How do you choose the best brokerage? What are the best platforms to buy stocks?
Let's take a few moments to dig into these topics and more, equipping you with the knowledge to make an informed decision. Whether you're a novice investor or looking to switch brokers, our guide will offer practical advice on choosing the right broker, understanding the fundamentals of brokerage accounts and exploring the best online investment sites and the best trading platforms for beginners.
When we finish our time together, you will have a comprehensive understanding of the factors to consider when selecting a brokerage account, the features and services that suit your needs as an investor and the best brokerage accounts for beginners that will pave the way for your financial success. Let's dive in and discover the world of brokerage accounts together.
What is a Brokerage Account?
A brokerage account is a specialized financial account that allows individuals to buy and sell various financial securities, such as stocks, bonds, mutual funds and ETFs, through a brokerage firm. It serves as a platform for investors to access the financial markets and execute their investment transactions.
When it comes to finding a broker and choosing the best brokerage account, investors should consider several key factors. First and foremost, it is crucial to find a reputable broker who can provide guidance and support to navigate the complexities of the financial markets. Look for brokers that cater specifically to beginners and offer educational resources and tools to enhance your investing knowledge.
The best brokerage account for beginners should have a user-friendly interface, provide educational resources and offer access to a wide range of investment options. This allows new investors to start their investment journey confidently and gradually learn the ropes of investing.
In addition to the brokerage account itself, the trading platform plays a vital role in the investing experience. The best trading platform for beginners should be intuitive, easy to navigate and provide essential features like real-time market data, customizable charts and order placement capabilities. It should empower beginners to make informed investment decisions without feeling overwhelmed by complex technicalities.
To simplify finding the right broker and brokerage account, consider the best online broker for beginners. These online brokers cater to novice investors and provide a seamless and supportive investing experience. Look for online brokers that offer a combination of user-friendly platforms, educational resources, low fees and excellent customer support.
By finding the best online brokerage account for beginners and a reliable broker and trading platform, individuals can kickstart their investment journey confidently and set themselves up for long-term success in the financial markets.
How to Choose a Brokerage Account
Choosing the right brokerage account is crucial for any investor, whether a beginner or an experienced individual. With many options available in the market, it can be overwhelming to determine which brokerage account is the most suitable for your investment goals and preferences. To help you navigate this process effectively, we will provide valuable insights on how to choose a brokerage account that aligns with your needs.
One of the initial steps in selecting a brokerage account is finding a reliable broker who will serve as your investment partner. So, how do you find a broker? Researching and identifying reputable brokers is a fundamental aspect of the decision-making process. Consider factors such as the broker's reputation, experience, regulatory compliance and the range of services they offer.
In addition to finding the right broker, there are several other key factors to consider when choosing a brokerage account. These include account fees, available investment options, customer support, trading platforms and educational resources. Each element plays a vital role in determining the overall suitability of a brokerage account for your investment needs.
In the following sections, we will delve deeper into each factor, guiding how to effectively evaluate and compare brokerage accounts. By understanding the essential aspects to consider, you will be better equipped to make an informed decision and select the brokerage account that best aligns with your investment goals and preferences. Let's explore the process of choosing a brokerage account in detail.
Step 1: Understand your investment goals.
Before selecting a brokerage account, it is essential to have a clear understanding of your investment goals. Are you looking to build long-term wealth, generate income, or actively trade stocks? Identifying your objectives will help you determine the type of brokerage account that best suits your needs. For example, if you are a passive investor focused on long-term growth, a brokerage account with access to a wide range of diversified investment options may be suitable. In contrast, if you are a short-term investor executing a dividend-harvesting strategy, an online brokerage account with low fees might be your best option.
Step 2: Evaluate account features and fees.
When choosing a brokerage account, carefully evaluate the features and fees associated with each option. Consider account minimums, commission charges, maintenance fees and any additional costs for specific account features or services. It is important to balance the fees with the value and benefits the brokerage account offers to ensure it aligns with your investment strategy.
Step 3: Consider customer support and resources.
Good customer support and educational resources are valuable, especially for beginner investors. Look for a brokerage account that provides responsive customer support channels like phone, email or live chat. Additionally, check if the broker offers educational materials, tutorials, webinars orinvestment researchtools to enhance your knowledge and support your decision-making process.
Step 4: Assess security and account protection.
Security is of paramount importance when selecting a brokerage account. Ensure that the broker you choose employs industry-standard security measures, such as encryption and multi-factor authentication, to protect your personal and financial information. Also, verify if the brokerage is a member of regulatory organizations and offers account protection through measures like the Securities Investor Protection Corporation (SIPC).
Step 5: Compare trading tools and platforms.
The brokerage account's trading tools and platforms can significantly impact your investing experience. Evaluate the user interface, ease of navigation, availability of real-time market data, charting tools, the ability to compare different industry sectors against each other, order types and mobile accessibility. A user-friendly and feature-rich trading platform can make it easier for you to execute trades and monitor your investments effectively.
Step 6: Review user reviews and ratings.
To gain insights into the experiences of other investors, read user reviews and ratings of different brokerage accounts. Pay attention to feedback regarding the platform's reliability, quality of customer service, execution speed and overall user satisfaction. While reviews should not be the sole determining factor, they can provide valuable perspectives and help you make a more informed decision.
Step 7: Open and fund your account.
Once you have carefully evaluated and compared brokerage accounts, it's time to open and fund your chosen account. Follow the account opening process provided by the broker, which typically involves completing an application, providing identification documents and funding the account. Ensure you understand the funding options available, such as bank transfers or electronic fund transfers and any associated fees or minimum deposit requirements.
Step 8: Manage and monitor your investments.
Managing and monitoring your investments is vital after opening and funding your brokerage account. Regularly review your portfolio's performance, stay updated with market trends and consider adjusting your investments as needed. Take advantage of your brokerage account's tools and resources to stay informed and make informed investment decisions aligned with your goals. Pay attention to trending media reports and the media sentiment of your individual stocks.
Questions to Answer When Testing Platforms
When testing a new investment platform, asking the right questions is essential to thoroughly evaluate its features, functionality and suitability for your needs. Consider a comprehensive set of questions to delve deep into the platform's capabilities and make an informed decision.
Let's review an extensive list of questions you should answer when testing investment platforms. These questions cover various aspects, including user experience, available features, investment options, fees, customer support, reliability and more. By addressing these questions, you can gain valuable insights and assess whether the platform aligns with your investment goals and preferences. Let's explore the detailed list of questions to answer when testing platforms and ensure a comprehensive evaluation process.
1. Is the platform interface clean and visually appealing?
A brokerage platform's interface's cleanliness and visual appeal are crucial in enhancing the overall user experience. A clean and visually appealing interface can make navigating the platform more enjoyable and intuitive. When choosing a brokerage account, look for a platform with a modern and well-designed interface. It should have clear, organized menus, visually distinct sections and an uncluttered layout. A clean interface helps users focus on their investment activities and easily locate the necessary tools and features.
2. Is the navigation intuitive and easy to understand?
Intuitive navigation is essential for efficiently accessing a brokerage platform's various features and tools. When evaluating platforms, prioritize those with intuitive navigation allowing seamless movement between different sections and functionalities. Look for logical menu structures, clear labeling and easily recognizable icons or buttons. The navigation should provide a smooth and user-friendly experience, ensuring you can quickly find and utilize the tools and resources necessary for your investment activities.
3. Are the essential features and tools easily accessible?
Accessing essential features and tools without hassle is crucial for a seamless trading experience. When considering a brokerage account, ensure the platform makes its key features easily accessible. Look for intuitive menus or tabs on best online broker for beginners that provide:
Quick access to features such as buying and selling stocks
Placing different orders (market orders, limit orders, stop-loss orders, etc.)
Accessing research tools and monitoring account performance
The ability to readily access these essential tools will enable you to execute trades and manage your investments efficiently.
4. Can I quickly find the information I need?
The ability to quickly find the information you need is vital when researching investment options or making informed decisions. A good brokerage platform should provide easy access to comprehensive market data, company information, financial news and analysis. Look for platforms that offer real-time market data and quotes, research reports, financial statements and customizable watchlists. A user-friendly search function and well-organized information layout will allow you to gather the information necessary to make informed investment decisions efficiently.
5. Does the platform offer a wide range of investment options (stocks, bonds, ETFs, etc.)?
Diversification is key to a successful investment strategy, so choosing a brokerage platform that offers a wide range of investment options is essential. Look for platforms that provide access to various asset classes, including stocks, bonds, exchange-traded funds (ETFs), mutual funds and options. A diverse selection of investment options enables you to build a well-rounded portfolio that aligns with your financial goals and risk tolerance.
6. Can I easily place different types of orders (market, limit, stop-loss, etc.)?
The ability to place different types of orders is essential for executing trades according to your investment strategy. Look for a brokerage platform that allows you to easily place market orders, limit orders, stop orders and other order types. The platform should provide a user-friendly order entry system with clear instructions and options for customization. Executing different types of orders efficiently and accurately is vital for taking advantage of market opportunities and managing risk effectively.
7. Are trade executions fast and accurate?
Fast and accurate trade executions are crucial for taking advantage of market movements and securing desired entry or exit points. When choosing a brokerage platform, ensure that trade executions are reliable and timely. Look for platforms with a reputation for fast order execution speeds and minimal delays. It's also beneficial to consider platforms that offer advanced order routing technologies to help ensure optimal trade execution prices.
8. Does the platform provide real-time market data and quotes?
Real-time market data and quotes are essential for staying informed about market conditions and making timely investment decisions. A reliable brokerage platform should provide access to up-to-date market data and real-time quotes for stocks, bonds, ETFs and other securities. Look for platforms that offer streaming quotes and dynamic charts that update in real-time. This allows you to monitor market movements and make informed trading decisions based on current information. Real-time market data ensures you have accurate and up-to-date information at your fingertips, empowering you to react swiftly to changing market conditions.
9. Are there comprehensive charting tools and technical analysis indicators?
Comprehensive charting tools and technical analysis indicators are valuable resources for traders who utilize technical analysis in their investment strategies. When evaluating brokerage platforms, consider those that offer robust charting capabilities and a wide range of technical analysis indicators. Look for features such as customizable charts, various chart types (line charts, candlestick charts, etc.), trendlines, moving averages and oscillators. These tools provide insights into price patterns, trends and potential entry or exit points, helping you make well-informed trading decisions.
10. Does the platform offer fundamental analysis tools and research resources?
Fundamental analysis plays a significant role in assessing the value and potential of investments. Look for brokerage platforms that provide fundamental analysis tools and comprehensive research resources. For instance, if you wanted to purchase shares of Apple stock, you would like to be able to research Apple's company financials, Apple's earnings reports, Apple's analyst ratings and Apple's industry research. Having these tools readily available on the platform allows you to evaluate the fundamental strength and prospects of potential investments, enabling you to make informed decisions based on fundamental factors.
11. Is there a mobile app available, and is it user-friendly?
In today's fast-paced world, having access to your brokerage account on the go is essential. Check if the brokerage platform offers a mobile app compatible with your smartphone or tablet. The mobile app should be user-friendly and intuitive and provide a seamless trading experience. Look for features such as easy navigation, quick order placement, real-time market data and portfolio management capabilities. A well-designed mobile app ensures you can monitor and manage your investments conveniently, even when you're away from your computer.
12. Does the mobile app provide all the necessary features and functionality?
When evaluating a brokerage platform's mobile app, ensure it offers all the essential features and functionality you need for trading and account management. The mobile app should provide access to real-time quotes, order placement, portfolio tracking, fund transfers and account settings. Features like watchlists, news updates and research resources can further enhance your mobile trading experience. The mobile app should be a reliable and efficient tool that allows you to execute trades and manage your investments seamlessly while on the move.
13. Can I easily switch between the desktop and mobile versions?
Seamless integration between the desktop and mobile versions of the platform is important for a consistent trading experience. Look for brokerage platforms that offer synchronization between the desktop and mobile apps. This lets you easily switch between devices without losing your settings, preferences, or access to important features. A platform that smoothly transitions from desktop to mobile ensures you can trade and manage your investments seamlessly, regardless of your device.
14. What fees and commissions are associated with trades and account maintenance?
Understanding the fees and commissions associated with trades and account maintenance is crucial for evaluating the overall cost of using a brokerage platform. Look for transparency in fee structures and consider the impact of fees on your trading strategy and investment returns. Consider factors such as trade commissions, account maintenance fees, inactivity fees and fees for additional services or features. Some platforms may offer commission-free trading for certain securities or account types, which can benefit frequent traders. Consider your trading frequency and investment objectives when assessing the fee structure of a brokerage account. For instance, if you are attempting to capture dividends as your investment strategy, you would benefit from a brokerage with very low fees and fast order execution.
15. Are there any additional charges for specific features or services?
Some brokerage platforms may charge additional fees for specific features or services besides the standard fees. For example, there might be charges for accessing advanced research reports, like lists of the best consumer discretionary ETFs, or detailed investment strategy reports on investing in emerging technology. When considering a brokerage account, carefully review the platform's fee schedule to identify any additional charges that may apply. Assess whether these features or services are necessary for your investment strategy and if the associated costs are reasonable and justifiable. Understanding and comparing the additional charges across different platforms will help you make an informed decision that aligns with your financial goals and budget.
16. Does the platform offer educational resources (tutorials, webinars, articles)?
Access to educational resources is invaluable, especially for novice traders or those looking to expand their knowledge. Look for brokerage platforms that provide a comprehensive range of educational resources, such as tutorials, webinars, articles and investment guides. For example, entry-level investors may want to learn about industry sectors or how to find and invest in blue chip stocks. These resources can help you understand trading concepts, learn about different investment strategies and stay updated with market trends. A platform that offers educational materials demonstrates a commitment to supporting its users and helping them become more knowledgeable and confident investors.
17. Is customer support easily accessible, and are they responsive?
Reliable customer support is essential when encountering issues or having questions about your brokerage account. Look for platforms that offer easily accessible customer support channels. This may include phone support, email support, live chat or a dedicated support portal. Evaluate the responsiveness of the customer support team by researching user reviews and ratings. Prompt and helpful customer support ensures you receive timely assistance when needed, enhancing your overall experience and resolving any concerns efficiently.
18. Can I reach customer support through various channels (phone, email, live chat)?
The availability of multiple communication channels for customer support enhances the convenience and accessibility of assistance. Look for brokerage platforms that offer a range of support channels, such as phone, email and live chat. Multiple options allow you to choose the most convenient method for contacting customer support based on your preferences and the urgency of your query. Consider platforms that offer extended customer support hours to cater to different time zones and accommodate your trading needs.
19. Is the platform stable and reliable during peak trading times?
Platform stability and reliability are critical when choosing a brokerage account, particularly during peak trading times when market activity is high. Look for platforms with a reputation for stability and uptime, ensuring you can access your account and execute trades without interruptions or technical glitches. Robust infrastructure, regular maintenance and a track record of reliable performance are indicators of a platform's ability to handle high trading volumes and provide a seamless trading experience.
20. Does the platform provide advanced order types, such as trailing stops or conditional orders?
Advanced order types can enhance your trading strategy and allow greater flexibility in managing your investments. Look for brokerage platforms that offer advanced order types, including trailing stops, conditional orders and bracket orders. These features enable you to set specific conditions or parameters for executing trades and managing risk. The availability of advanced order types empowers you to implement more sophisticated trading strategies and automate certain aspects of your investment approach.
21. Are there any restrictions or limitations on the platform, such as trade volume or investment minimums?
Understanding any restrictions or limitations on a brokerage platform is essential for assessing its suitability for your trading needs. Check if the platform imposes restrictions on trade volume, such as maximum order size or daily trading limits. Additionally, verify if there are any investment minimums that you need to meet to open an account or access specific features. By being aware of these restrictions and limitations, you can ensure that the platform aligns with your trading goals and investment preferences.
22. Can I easily customize the platform to suit my preferences?
The ability to customize the platform according to your preferences can greatly enhance your trading experience. Look for brokerage platforms that offer customization options, such as the ability to personalize your dashboard, rearrange menus, or create custom watchlists. These features allow you to tailor the platform to your specific needs and trading style, making your investment activities more intuitive and efficient.
23. Does the platform integrate with other financial tools or services I use?
Suppose you already use other financial tools or services to manage your finances or investments. In that case, choosing a brokerage platform that integrates with these tools is beneficial. Integration can streamline your workflow and provide a seamless experience by allowing you to access and manage all your financial information from a single platform. Look for platforms that integrate with popular tools such as budgeting apps, portfolio trackers, tax software or financial planning software. This integration eliminates the need for manual data entry and ensures that your financial information is up to date across all platforms.
24. Are there any social or community features on the platform?
Social or community features on a brokerage platform can provide opportunities for interaction and learning from other investors. Look for platforms that offer social features such as forums, chat rooms, or social networks where users can share insights, discuss investment ideas, or seek advice. Engaging with a community of like-minded individuals can offer valuable perspectives and help you stay informed about market trends or investment opportunities. Consider whether having access to a social or community platform is important to you and aligns with your preferred investing style.
25. Does the platform offer a demo account or paper trading functionality for practice?
For novice traders or those testing new strategies, having access to a demo account or paper trading functionality is invaluable. Look for brokerage platforms that offer a simulated trading environment where you can practice trading with virtual funds. This allows you to familiarize yourself with the platform's features, test different investment strategies and gain experience without risking real money. A demo account can be valuable for learning and refining your trading skills before committing funds to the market.
26. Are there any unique features or tools that differentiate this platform from others?
Consider whether the brokerage platform offers unique features or tools that set it apart from other platforms. Look for innovative functionalities that enhance your trading experience or provide a competitive edge. Unique features could include access to proprietary research or trading algorithms, advanced data visualization tools that allow you to compare stocks, or exclusive investment opportunities. Assess whether these unique features align with your trading goals and provide added value that differentiates the platform from others.
27. Have I researched user reviews and ratings to gain insights into other users' experiences?
Before finalizing your decision, it's crucial to research user reviews and ratings of the brokerage platform. Reading about the experiences of other users can provide valuable insights into the platform's strengths, weaknesses and overall user satisfaction. Look for reviews highlighting aspects such as platform reliability, customer support, ease of use and the overall trading experience. By considering a wide range of user feedback, you can make a more informed decision and assess whether the platform meets your expectations and requirements.
28. Does the platform provide comprehensive account statements and trade confirmations?
Accurate and comprehensive account statements and trade confirmations are essential for tracking and reviewing your trading activities. Look for brokerage platforms that provide detailed and easy-to-understand account statements summarizing your portfolio holdings, transactions and performance. Trade confirmations should be generated promptly after each trade, confirming the executed trades and important details such as price, quantity and order type. Clear and comprehensive account management and reporting features ensure transparency and enable you to monitor your investments effectively.
29. Can automatic investments or recurring deposits be set up?
Automating your investment contributions can help you stay consistent and disciplined in your saving and investing habits. Look for brokerage platforms that can set up automatic investments or recurring deposits. This feature allows you to schedule regular contributions to your investment account, whether a fixed amount or a percentage of your income. Automatic investments can simplify building your portfolio over time and help you take advantage of dollar-cost averaging.
30. Does the platform offer tax reporting tools or integration with tax software?
Tax reporting and integration with tax software can be highly beneficial, especially during tax season. When considering a brokerage account, evaluate whether the platform offers tax reporting tools or integrates with popular tax software. These features can streamline reporting your investment activities and calculating your tax obligations. Look for comprehensive tax reporting platforms, including forms such as 1099-B for capital gains and losses. Integration with tax software, such as TurboTax or H&R Block, allows for seamless transfer of relevant financial data, simplifying the preparation of your tax returns. By choosing a platform that offers tax reporting tools or integration, you can save time and ensure accuracy in fulfilling your tax obligations.
Top Features to Look for in an Online Broker
When choosing an online broker, it's essential to consider the key features that can significantly impact your trading experience and investment success. Selecting a broker with the right features can provide you with the tools, resources and support necessary to make informed investment decisions and navigate the markets effectively. Let's explore the top features to look for in an online broker and why they are important.
User-Friendly Interface
A user-friendly interface is crucial as it ensures ease of use and navigation within the broker's platform. A clean and intuitive interface allows you to focus on analyzing investments and executing trades without being hindered by a complex or confusing interface. It saves you time, reduces frustration and enhances your overall trading experience.
Wide Range of Investment Options
Opt for a broker that offers a wide range of investment options, including stocks, bonds, ETFs, mutual funds and more. Having access to diverse investment options enables you to create a well-rounded portfolio tailored to your investment strategy. It provides flexibility and opportunities to diversify your risk across different asset classes and investment vehicles.
Advanced Trading Tools and Platforms
Advanced trading tools and platforms empower you to make informed decisions based on real-time data from markets like the Dow Jones Industrial Average (DJAI) or the S&P 500. In addition, features like technical analysis and customizable charts will provide the technical analysis to make sound investment decisions. These tools enhance your ability to analyze investment opportunities, track market trends and execute trades effectively. Look for features like real-time market data, customizable watchlists and order types that align with your trading style.
Research and Analysis Resources
Comprehensive research resources are essential for conducting thorough analyses and making informed investment decisions. Look for a broker that provides access to fundamental analysis reports, company financials, analyst ratings andmarket news These resources help you evaluate different investments' potential risks and returns, enabling you to make well-informed trading decisions.
Educational Materials and Resources
Look for brokers that offer educational materials such as tutorials, webinars, articles and investment guides. These resources can enhance your understanding of investing concepts, trading strategies, risk management techniques and market trends. Educational materials support your ongoing learning and development as an investor, ultimately improving your trading skills and decision-making abilities.
Reliable Customer Support
Opt for a broker that provides accessible and responsive customer support. Efficient customer support ensures you can seek assistance whenever needed, whether regarding technical issues, account inquiries, or general trading questions. Prompt and helpful customer support can save you time and frustration, providing a positive trading experience.
Competitive Pricing and Transparent Fees
Understand the costs associated with trading and account maintenance. Look for brokers with competitive pricing and transparent fee structures. This includes considerations such as commissions, transaction fees, account maintenance fees and any other charges. Transparent fee structures help you evaluate the affordability and value of the broker's services, ensuring you understand the costs involved.
Account Security and Protection
The security of your funds and personal information is paramount when selecting an online broker. Look for brokers prioritizing account security measures, including encryption protocols, two-factor authentication and secure data storage. Additionally, consider brokers that provide insurance coverage for your investments, protecting you against unauthorized activities and potential financial loss.
Mobile Trading Capabilities
In today's fast-paced world, having mobile trading capabilities is highly beneficial. A mobile trading app allows you to monitor and manage your investments on the go, providing convenience and flexibility. Look for a broker that offers a user-friendly and feature-rich mobile app that provides all the necessary functionality, including real-time market data, order placement and portfolio tracking.
Integration with Third-Party Services
Integration with other financial tools or services simplifies the management of your overall financial picture. Consider brokers that allow integration with third-party services such as financial planning tools, tax software, or portfolio management platforms. Integration with these services allows for consolidating your financial information and provides a more comprehensive view of your investments, expenses and tax obligations. It streamlines tracking and managing your finances, saving you time and effort in manual data entry and reconciliation.
By choosing a broker that offers integration with third-party services, you can leverage the strengths of various tools and platforms, creating a seamless and efficient workflow. For example, integration with financial planning tools can help you set and track your investment goals, while integration with tax software simplifies the tax reporting and filing process. This integration enhances the convenience and effectiveness of managing your investments and financial affairs.
When evaluating brokers, inquire about the availability of integration options and compatibility with the specific tools and services you use or plan to use. Consider the level of integration, ease of setup and functionality. Integration with third-party services can significantly enhance your overall investing experience by providing a unified and holistic approach to managing your financial life.
Pros and Cons of Online Brokerages
As with any financial decision, it is important to consider the pros and cons of online brokerages before choosing the right one for your needs. Online brokerages offer several advantages that make them a popular choice among investors. However, they also come with some drawbacks you should be aware of. Let's explore the pros and cons of online brokerages to help you make an informed decision.
Pros
In recent years, online brokerages have gained significant popularity among investors. These platforms offer a range of benefits and advantages that have revolutionized how people invest. Here are some key pros to consider when evaluating online brokerages:
Convenience: One of the biggest advantages of online brokerages is their convenience. With online platforms, you can access your brokerage account anytime, anywhere, as long as you have an internet connection. This allows for greater flexibility and ease of managing your investments.
Lower costs: Online brokerages typically have lower fees and commissions than traditional brick-and-mortar brokerages. Online platforms have lower overhead costs and can pass on the savings to their customers. Lower costs can have a significant impact on your investment returns over time.
Wide range of investment options: Online brokerages often provide a wide range of investment options, including stocks, bonds, mutual funds, ETFs, options and more. This gives you the flexibility to build a diversified portfolio that aligns with your investment goals and risk tolerance.
Advanced trading tools: Many online brokerages offer advanced trading tools and platforms that provide real-time market data, advanced charting tools, technical analysis indicators and customizable features. These tools can help you make informed investment decisions and execute trades more efficiently.
Access to research and educational resources: Online brokerages often provide access to a wealth of research materials, educational resources, tutorials, webinars and market analysis. These resources can help you expand your knowledge, stay informed about market trends and make better investment decisions.
Cons
While online brokerages offer numerous advantages, it is important to consider the potential drawbacks before deciding. Here are some cons to remember when determining if an online brokerage account is right:
Limited personalized guidance: Unlike traditional brokerages, online brokerages may have limited or no personalized guidance from financial advisors. While some platforms offer robo-advisory services, they may provide a different level of tailored advice than a dedicated financial advisor. If you prefer a more hands-on approach or need personalized guidance, there may be better options than an online brokerage.
Technical issues and platform reliability: Online platforms are subject to technical glitches, system outages, or other technical issues that may disrupt your trading activities. While most brokerages strive to provide stable and reliable platforms, occasional disruptions can occur, potentially affecting your ability to execute trades or access your account.
Self-directed approach: Online brokerages are designed for self-directed investors who prefer to manage their investments. If you require a high level of hand-holding, personalized advice, or assistance with complex financial strategies, an online brokerage may not be the best fit. In such cases, you may benefit from a full-service brokerage with dedicated advisors.
Learning curve: Utilizing online brokerages requires familiarity with the platform, trading terminology and investment concepts. Suppose you are new to investing or feel overwhelmed by the learning curve associated with online trading. In that case, it may take some time and effort to become comfortable with the platform and make informed decisions.
Security and online threats: While online brokerages prioritize the security of your account and personal information, there is always a risk of online threats, hacking, or data breaches. Choosing a reputable and trusted online brokerage that employs robust security measures to protect your assets and information is important.
Online brokerages offer convenience, lower costs, a wide range of investment options, advanced trading tools and access to research and educational resources. However, they may have limited personalized guidance, potential technical issues, require a self-directed approach, involve a learning curve and come with security risks.
By weighing the pros and cons, you can determine if an online brokerage aligns with your investment goals, preferences and comfort level. Consider these factors carefully and evaluate how they align with your needs and priorities.
Ultimately, choosing an online brokerage should be based on a thorough assessment of your investment objectives and pros and cons. Consider the level of control you desire over your investments, the importance of personalized guidance and your comfort level with technology and online platforms. Additionally, consider your budget, trading frequency and the specific features and tools that are important to you.
Remember that there is no one-size-fits-all solution when choosing an online brokerage. Each investor has unique requirements and preferences. It is worth researching and comparing different online brokerages to find the one that offers the features, support and cost structure that best aligns with your financial goals.
Empower Your Investment Journey
Choosing a brokerage account is crucial and can significantly impact your investment journey. By following the steps outlined in this article and considering the key factors such as your investment goals, account features, customer support, platform reliability, fees and educational resources, you can make an informed decision that aligns with your needs.
Remember, a clean and intuitive platform interface, a wide range of investment options, easy order placement, real-time market data, comprehensive analysis tools, and a user-friendly mobile app are all desirable features for an online broker. Additionally, consider factors such as customer support accessibility, stability during peak trading times, customization options, integration with financial tools and the availability of demo accounts or paper trading functionality.
While online brokerages offer numerous advantages, weighing the pros and cons is essential. Online brokers provide convenience, lower costs and access to information and resources. However, they may lack the personalized guidance of traditional brokers and face potential technical glitches or limited investment options.
Ultimately, your choice of brokerage account should align with your investment goals, preferences and comfort level. Take the time to research and compare different brokers thoroughly, read user reviews and ratings and consider seeking advice from financial professionals if needed. By doing so, you'll be well on your way to selecting a brokerage account that empowers you to make informed investment decisions and achieve your financial aspirations.
FAQs
As you explore the world of brokerage accounts, you may have some common questions in mind. We compiled this list of frequently asked questions to help you along your journey.
How do I choose an online broker?
Choosing an online broker requires careful consideration of various factors. Start by defining your investment goals and preferences. Evaluate the broker's features, fees, customer support and trading platforms. Consider their range of investment options and research resources. You can find one that aligns with your needs by conducting thorough research and comparing different brokers.
What is a good online stockbroker?
The definition of a good online stockbroker can vary depending on individual preferences and requirements. A good stockbroker meets your specific investment needs, offers a user-friendly platform, provides access to a wide range of stocks and offers competitive fees and commissions. When evaluating online stockbrokers, it's important to consider factors such as reliability, customer support, trading tools, educational resources and account security.
Which brokerage is best to join?
The best brokerage to join depends on your unique circumstances and investment goals. There is no one-size-fits-all answer to this question. Consider factors such as the broker's reputation, reliability, trading platforms, investment options, fees, customer support and user reviews. It's advisable to conduct thorough research, compare different options and choose a brokerage that aligns with your investment preferences and long-term objectives.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Look for a broker that provides access to fundamental analysis reports, company financials, analyst ratings andmarket news These resources help you evaluate different investments' potential risks and returns, enabling you to make well-informed trading decisions. By following the steps outlined in this article and considering the key factors such as your investment goals, account features, customer support, platform reliability, fees and educational resources, you can make an informed decision that aligns with your needs. Remember, a clean and intuitive platform interface, a wide range of investment options, easy order placement, real-time market data, comprehensive analysis tools, and a user-friendly mobile app are all desirable features for an online broker.
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Look for a broker that provides access to fundamental analysis reports, company financials, analyst ratings andmarket news These resources help you evaluate different investments' potential risks and returns, enabling you to make well-informed trading decisions. Advanced trading tools: Many online brokerages offer advanced trading tools and platforms that provide real-time market data, advanced charting tools, technical analysis indicators and customizable features. Remember, a clean and intuitive platform interface, a wide range of investment options, easy order placement, real-time market data, comprehensive analysis tools, and a user-friendly mobile app are all desirable features for an online broker.
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Whether you're a novice investor or looking to switch brokers, our guide will offer practical advice on choosing the right broker, understanding the fundamentals of brokerage accounts and exploring the best online investment sites and the best trading platforms for beginners. By finding the best online brokerage account for beginners and a reliable broker and trading platform, individuals can kickstart their investment journey confidently and set themselves up for long-term success in the financial markets. Advanced trading tools: Many online brokerages offer advanced trading tools and platforms that provide real-time market data, advanced charting tools, technical analysis indicators and customizable features.
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"What brokerage should I use?" What is a Brokerage Account? When choosing a brokerage platform, ensure that trade executions are reliable and timely.
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2023-06-09 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-0
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our 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
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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15429.0
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2023-06-08 00:00:00 UTC
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US STOCKS-Wall Street ends up amid record low volatility ahead of eventful week
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-up-amid-record-low-volatility-ahead-of-eventful-week-0
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nan
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nan
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By Shristi Achar A and David Carnevali
June 8 (Reuters) - U.S. stocks closed higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, dropped to a fresh post-pandemic record low.
"What you are really seeing in the vol market is an unwillingness to engage," said David Bianco, Americas chief investment officer for asset manager DWS Group. "You've just got paralysis in investors."
Investors were sitting on the sidelines ahead of inflation data and a Federal Reserve policy meeting next week.
Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool. However, they see a 50% chance of a rate hike in July.
The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped from one-week highs to 4.51% after a sharp jump in weekly jobless claims signaled a softening labor market.
The U.S. Labor Department is due to release inflation data on June 13, the first day of the Fed meeting. The numbers are expected to show consumer prices cooled slightly in May but core prices remained sticky.
Meanwhile, a rebound by technology and megacap stocks helped major indexes regain their footing amid thin volumes.
Heavyweight Amazon.com Inc AMZN.O gained 2.49% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 1.55% and 4.58%.
GameStop Corp GME.N tanked 17.89% as billionaire investor Ryan Cohen took over as executive chairman after the video-game retailer ousted its CEO and posted a bigger-than-expected quarterly loss.
The Dow Jones Industrial Average .DJI rose 168.59 points, or 0.5%, to 33,833.61, the S&P 500 .SPX gained 26.41 points, or 0.62%, to 4,293.93 and the Nasdaq Composite .IXIC added 133.63 points, or 1.02%, to 13,238.52.
Among the 11 major S&P sectors, consumer discretionary .SPLRCD led the charge, while real estate .SPLRCR and energy .SPNY indexes slipped, with the latter being hit by a drop in oil prices.
Adobe ADBE.O jumped 4.95% after Piper Sandler raised its prices target on the stock to $500. The Photoshop software maker said it was offering its AI tool "Firefly" to large businesses.
Lucid Group LCID.O tumbled 1.88% after the U.S. luxury electric-vehicle maker's head of China operations, Zhu Jiang, said the company was preparing to enter the world's largest auto market.
Advancing issues outnumbered declining ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favored advancers.
The S&P 500 posted 12 new 52-week highs and two new lows; the Nasdaq Composite recorded 71 new highs and 43 new lows.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Marguerita Choy)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Heavyweight Amazon.com Inc AMZN.O gained 2.49% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 1.55% and 4.58%. Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool. The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped from one-week highs to 4.51% after a sharp jump in weekly jobless claims signaled a softening labor market.
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Heavyweight Amazon.com Inc AMZN.O gained 2.49% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 1.55% and 4.58%. By Shristi Achar A and David Carnevali June 8 (Reuters) - U.S. stocks closed higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week. Meanwhile, a rebound by technology and megacap stocks helped major indexes regain their footing amid thin volumes.
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Heavyweight Amazon.com Inc AMZN.O gained 2.49% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 1.55% and 4.58%. By Shristi Achar A and David Carnevali June 8 (Reuters) - U.S. stocks closed higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week. Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool.
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Heavyweight Amazon.com Inc AMZN.O gained 2.49% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 1.55% and 4.58%. By Shristi Achar A and David Carnevali June 8 (Reuters) - U.S. stocks closed higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week. Investors were sitting on the sidelines ahead of inflation data and a Federal Reserve policy meeting next week.
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15430.0
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2023-06-08 00:00:00 UTC
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US STOCKS-Wall Street ends up amid record low volatility ahead of eventful week
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-up-amid-record-low-volatility-ahead-of-eventful-week
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nan
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nan
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By Shristi Achar A and David Carnevali
June 8 (Reuters) - U.S. stocks closed higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, dropped to a fresh post-pandemic record low.
"What you are really seeing in the vol market is an unwillingness to engage," said David Bianco, Americas chief investment officer for asset manager DWS Group. "You've just got paralysis in investors."
Investors were sitting on the sidelines ahead of inflation data and a Federal Reserve policy meeting next week.
Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool. However, they see a 50% chance of a rate hike in July.
The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped after a sharp jump in weekly jobless claims signaled a softening labor market.
The U.S. Labor Department is due to release inflation data on June 13, the first day of the Fed meeting. The numbers are expected to show consumer prices cooled slightly in May but core prices remained sticky.
Meanwhile, a rebound by technology and megacap stocks helped major indexes regain their footing amid thin volumes.
Heavyweight Amazon.com Inc AMZN.O gained as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.Oalso advanced.
GameStop Corp GME.N tanked as billionaire investor Ryan Cohen took over as executive chairman after the video-game retailer ousted its CEO and posted a bigger-than-expected quarterly loss.
According to preliminary data, the S&P 500 .SPX gained 26.14 points, or 0.61%, to end at 4,293.66 points, while the Nasdaq Composite .IXIC gained 133.99 points, or 1.02%, to 13,238.89. The Dow Jones Industrial Average .DJI rose 168.76 points, or 0.50%, to 33,833.78.
Among the 11 major S&P sectors, consumer discretionary .SPLRCD led the charge, while real estate .SPLRCR and energy .SPNY indexes slipped, with the latter being hit by a drop in oil prices.
Adobe ADBE.Ojumped after Piper Sandler raised its prices target on the stock to $500. The Photoshop software maker said it was offering its AI tool "Firefly" to large businesses.
Lucid Group LCID.Otumbled after the U.S. luxury electric-vehicle maker's head of China operations, Zhu Jiang, said the company was preparing to enter the world's largest auto market.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Marguerita Choy)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Heavyweight Amazon.com Inc AMZN.O gained as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.Oalso advanced. Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool. The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped after a sharp jump in weekly jobless claims signaled a softening labor market.
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Heavyweight Amazon.com Inc AMZN.O gained as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.Oalso advanced. By Shristi Achar A and David Carnevali June 8 (Reuters) - U.S. stocks closed higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week. The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped after a sharp jump in weekly jobless claims signaled a softening labor market.
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Heavyweight Amazon.com Inc AMZN.O gained as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.Oalso advanced. By Shristi Achar A and David Carnevali June 8 (Reuters) - U.S. stocks closed higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week. Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool.
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Heavyweight Amazon.com Inc AMZN.O gained as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.Oalso advanced. By Shristi Achar A and David Carnevali June 8 (Reuters) - U.S. stocks closed higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week. Investors were sitting on the sidelines ahead of inflation data and a Federal Reserve policy meeting next week.
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15431.0
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2023-06-08 00:00:00 UTC
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Want to Invest in Republican or Democratic Stocks? Check Out These 2 ETFs
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AAPL
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https://www.nasdaq.com/articles/want-to-invest-in-republican-or-democratic-stocks-check-out-these-2-etfs
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nan
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nan
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If you feel like everything has become increasingly political in the United States in recent years, you probably aren’t alone. Now, even investing is, in some ways, becoming political. Many consumers expect brands to have a stance on polarizing issues, and an increasing number of ETFs have been launched in recent years with the intent of allowing people to invest in companies that they believe are aligned with their political viewpoints (i.e., Republican or Democratic).
Whether this is a good or bad idea, or good or bad for the country, is a topic I will leave for the reader to decide. For now, let’s take a look at two such ETFs, each representing an opposing side of the aisle -- the Point Bridge GOP Stock Tracker ETF (BATS:MAGA) and the Democratic Large Cap Core ETF (NASDAQ:DEMZ).
Two Sides of the Same Coin
These ETFs ostensibly exist to enable investors to invest based on their political viewpoints, but what does that mean in practice?
Point Bridge Capital says that it “allows you to invest in companies that align with your Republican political beliefs.” It does this by investing in up to 150 S&P 500 (SPX) companies “whose employees and political action committees (PACs) are highly supportive of Republican candidates.” The holdings are equally weighted so that smaller S&P 500 companies are not crowded out by the largest companies.
What does this look like on the ground? MAGA owns 150 stocks, none of which have more than a 1% weighting, so this is actually a very diversified fund. Its top 10 holdings make up a minuscule 8.4% of assets. Below, you’ll find an overview of MAGA’s top 10 holdings using TipRanks’ holdings tool.
Holdings come from across a wide array of industries. For example, the nominal top holding is pharmaceutical giant Eli Lilly (NYSE:LLY), while homebuilder Pultegroup (NYSE:PHM), cruise line operator Carnival Corporation (NYSE:CCL), car auction company Copart (NASDAQ:CPRT), and alcoholic beverage maker Molson Coors Brewing (NYSE:TAP) round out the rest of the top five. In part, because it is equal-weighted, one interesting thing about MAGA is that it has a low weighting towards technology stocks compared to the S&P 500 and many broad-market ETFs.
Meanwhile, DEMZ, which is an ETF from Reflection Asset Management, invests in S&P 500 companies that have made 75% of their contributions to Democratic causes and candidates. This results in an ETF with 47 holdings, where the top 10 holdings make up 42.2% of the fund. As you can see from the overview below, DEMZ skews more towards the tech sector than MAGA does, with a relatively large 5.4% stake in Apple (NASDAQ:AAPL) and top 10 positions in IBM (NYSE:IBM) and Nvidia (NASDAQ:NVDA).
Also, those who have followed the ongoing battle between Florida’s Republican governor Ron DeSantis and Disney (NYSE:DIS) will probably not be surprised to find that Disney is one of the ETF’s top 10 holdings. Note that DEMZ is not an equal-weighted ETF like MAGA.
How Have These ETFs Performed?
Essentially, both ETFs use the same strategy to screen for companies that donate to political candidates or causes on opposite ends of the aisle. The process is similar, but the end result obviously ends with a different set of holdings. So, what type of results have these strategies provided for investors?
As of the end of May, MAGA had a one-year total return of -8.9% (although, keep in mind that the S&P 500 was in a bear market last year, so this result isn’t as bad as it may sound. Zooming out to a three-year time frame, MAGA has produced solid 16.6% annualized total returns for its holders. However, over a five-year time horizon, these results drop down to a 7.5% annual return.
Meanwhile, DEMZ only launched in 2020, so it doesn’t have an extensive track record, but it had a 10.5% total annualized return since inception as of the end of the most recent quarter.
Mind the Fees
These performances are solid enough (more on this later), but one thing that investors should be aware of is that both of these ETFs have fairly high expense ratios. DEMZ has a 0.45% expense ratio, while MAGA has an ever higher 0.72% expense ratio.
Closing Thoughts
These two ETFs are opposed in terms of their political ideologies, but they employ similar approaches toward stock selection.
Both have put up fair results over the last few years, but this brings up a bigger point. While the ETFs take fairly complex, novel approaches, investors may be better off just investing in a broad-market S&P 500 or Nasdaq (NDX) ETF with lower fees. Remember that both of these ETFs are screening for S&P 500 stocks as a starting point, and MAGA contains nearly one-third of the S&P 500 in its portfolio.
Let’s say that you ignored the political noise and simply invested in the largest S&P 500 ETF, the Vanguard S&P 500 ETF (NYSEARCA:VOO), or the largest Nasdaq ETF, the Invesco QQQ Trust (NASDAQ:QQQ) instead of MAGA or DEMZ. These ETFs have much lower expense ratios of 0.03% and 0.2%, respectively.
VOO’s expense ratio is orders of magnitude cheaper than that of MAGA or DEMZ, while QQQ’s isn’t as low but is still considerably cheaper. In year one, an investor putting $10,000 into one of these ETFs would pay just $3 in fees with VOO or $20 in QQQ versus $45 with DEMZ or $72 with MAGA. Over time, these fees can compound and make a real difference to your overall portfolio as an investor.
Beyond the fees, VOO has a solid performance track record. While it has lagged MAGA on a three-year basis with a 12.8% annualized return, it has outperformed it over a five-year timeframe with an 11% annualized return. Meanwhile, as of the end of the most recent quarter, QQQ had a three-year return of 19.8% and a five-year total annualized return of 15.7%, easily beating the competition.
Note that DEMZ has not been around for long enough to compile a three-year or five-year track record. It's also important to note that both of these ETFs are minnows in the bigger investing picture -- MAGA has $18.7 million in assets under management, while DEMZ has $23.5 million.
If, as an investor, it is truly important to you to invest in companies that donate to candidates from your side of the aisle, then these ETFs could theoretically warrant a place in your portfolio. They could also potentially be interesting as a vehicle for traders who want to use them as a way to bet on the outcomes of elections or certain legislation passing.
But beyond that, it seems like most investors would likely be better off keeping it simple via a broad-market fund like QQQ or VOO instead of making their financial futures political.
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 from the overview below, DEMZ skews more towards the tech sector than MAGA does, with a relatively large 5.4% stake in Apple (NASDAQ:AAPL) and top 10 positions in IBM (NYSE:IBM) and Nvidia (NASDAQ:NVDA). Many consumers expect brands to have a stance on polarizing issues, and an increasing number of ETFs have been launched in recent years with the intent of allowing people to invest in companies that they believe are aligned with their political viewpoints (i.e., Republican or Democratic). As of the end of May, MAGA had a one-year total return of -8.9% (although, keep in mind that the S&P 500 was in a bear market last year, so this result isn’t as bad as it may sound.
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As you can see from the overview below, DEMZ skews more towards the tech sector than MAGA does, with a relatively large 5.4% stake in Apple (NASDAQ:AAPL) and top 10 positions in IBM (NYSE:IBM) and Nvidia (NASDAQ:NVDA). For now, let’s take a look at two such ETFs, each representing an opposing side of the aisle -- the Point Bridge GOP Stock Tracker ETF (BATS:MAGA) and the Democratic Large Cap Core ETF (NASDAQ:DEMZ). Let’s say that you ignored the political noise and simply invested in the largest S&P 500 ETF, the Vanguard S&P 500 ETF (NYSEARCA:VOO), or the largest Nasdaq ETF, the Invesco QQQ Trust (NASDAQ:QQQ) instead of MAGA or DEMZ.
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As you can see from the overview below, DEMZ skews more towards the tech sector than MAGA does, with a relatively large 5.4% stake in Apple (NASDAQ:AAPL) and top 10 positions in IBM (NYSE:IBM) and Nvidia (NASDAQ:NVDA). For now, let’s take a look at two such ETFs, each representing an opposing side of the aisle -- the Point Bridge GOP Stock Tracker ETF (BATS:MAGA) and the Democratic Large Cap Core ETF (NASDAQ:DEMZ). Point Bridge Capital says that it “allows you to invest in companies that align with your Republican political beliefs.” It does this by investing in up to 150 S&P 500 (SPX) companies “whose employees and political action committees (PACs) are highly supportive of Republican candidates.” The holdings are equally weighted so that smaller S&P 500 companies are not crowded out by the largest companies.
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As you can see from the overview below, DEMZ skews more towards the tech sector than MAGA does, with a relatively large 5.4% stake in Apple (NASDAQ:AAPL) and top 10 positions in IBM (NYSE:IBM) and Nvidia (NASDAQ:NVDA). This results in an ETF with 47 holdings, where the top 10 holdings make up 42.2% of the fund. As of the end of May, MAGA had a one-year total return of -8.9% (although, keep in mind that the S&P 500 was in a bear market last year, so this result isn’t as bad as it may sound.
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15432.0
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2023-06-08 00:00:00 UTC
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Apple, Epic ask US appeals court to reconsider its antitrust ruling
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AAPL
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https://www.nasdaq.com/articles/apple-epic-ask-us-appeals-court-to-reconsider-its-antitrust-ruling
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nan
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nan
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By Mike Scarcella
June 8 (Reuters) - Apple AAPL.O and "Fortnite" maker Epic Games on Wednesday both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store.
Apple and Epic, in separate court filings, mounted challenges to a ruling by a three-judge panel of the San Francisco-based 9th U.S. Circuit Court of Appeals. Lawyers for the two companies said the panel should rehear the case or the court should convene "en banc," as an 11-judge panel, to reconsider the dispute.
The April three-judge ruling upheld a 2021 order in California federal court in Epic's lawsuit which accused Apple of unlawfully requiring software developers to pay up to 30% in commissions on consumers' in-app purchases.
The trial judge found that Apple violated a California state unfair competition law, but not U.S. antitrust provisions. Apple's new filingchallenged a nationwide injunction over conduct Apple said was "procompetitive and does not violate the antitrust laws."
Epic's 9th Circuit filing argued that its claims against Apple directly implicate the "core purpose" of U.S. antitrust law to foster competition. Epic also argued that the appeals court did not conduct a "rigorous" balancing between asserted asserted consumer benefits and anticompetitive effects of Apple's practices.
Federal appeals courts do not often grant en banc requests. Last year, the 9th Circuit received 646 petitions asking the court for en banc rehearings. During that period, the court granted 12 requests. In 2021, the court granted en banc review in nine cases.
The U.S. Supreme Court could have the final say on the outcome.
Representatives for Apple and Epic had no immediate comment.
The lower court ruling is on hold pending further appellate proceedings.
U.S. District Judge Yvonne Gonzalez Rogers' ruling said Apple could not bar AppStore developers from providing links and buttons that direct consumers to payment options outside of Apple's in-app purchase system.
Gonzalez Rogers did not provide any direction on how Apple must allow those links or buttons.
Competition authorities in other countries, including South Korea, the Netherlands and Japan, have taken steps to force Apple to open up its in-app payment systems.
The case is Epic Games Inc v. Apple Inc, 9th U.S. Circuit Court of Appeals, No. 21-16506.
Apple cannot ban links to outside App Store payments, U.S. appeals court says https://www.reuters.com/legal/us-appeals-court-upholds-lower-court-order-forcing-apple-allow-third-party-app-2023-04-24/
Epic's 'failure of proof' in Apple antitrust case questioned by appeals panel https://www.reuters.com/legal/fortnite-creator-fight-apple-antitrust-ruling-appeal-hearing-2022-11-14/
Apple must ease App Store rules, U.S. judge orders https://www.reuters.com/legal/litigation/judge-epic-suit-says-apple-restrictions-anti-competitive-2021-09-10/
(Reporting by Mike Scarcella; editing by Leigh Jones)
((Mike.Scarcella@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella June 8 (Reuters) - Apple AAPL.O and "Fortnite" maker Epic Games on Wednesday both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store. The April three-judge ruling upheld a 2021 order in California federal court in Epic's lawsuit which accused Apple of unlawfully requiring software developers to pay up to 30% in commissions on consumers' in-app purchases. Epic's 9th Circuit filing argued that its claims against Apple directly implicate the "core purpose" of U.S. antitrust law to foster competition.
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By Mike Scarcella June 8 (Reuters) - Apple AAPL.O and "Fortnite" maker Epic Games on Wednesday both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store. U.S. District Judge Yvonne Gonzalez Rogers' ruling said Apple could not bar AppStore developers from providing links and buttons that direct consumers to payment options outside of Apple's in-app purchase system. Apple cannot ban links to outside App Store payments, U.S. appeals court says https://www.reuters.com/legal/us-appeals-court-upholds-lower-court-order-forcing-apple-allow-third-party-app-2023-04-24/ Epic's 'failure of proof' in Apple antitrust case questioned by appeals panel https://www.reuters.com/legal/fortnite-creator-fight-apple-antitrust-ruling-appeal-hearing-2022-11-14/ Apple must ease App Store rules, U.S. judge orders https://www.reuters.com/legal/litigation/judge-epic-suit-says-apple-restrictions-anti-competitive-2021-09-10/ (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella June 8 (Reuters) - Apple AAPL.O and "Fortnite" maker Epic Games on Wednesday both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store. U.S. District Judge Yvonne Gonzalez Rogers' ruling said Apple could not bar AppStore developers from providing links and buttons that direct consumers to payment options outside of Apple's in-app purchase system. Apple cannot ban links to outside App Store payments, U.S. appeals court says https://www.reuters.com/legal/us-appeals-court-upholds-lower-court-order-forcing-apple-allow-third-party-app-2023-04-24/ Epic's 'failure of proof' in Apple antitrust case questioned by appeals panel https://www.reuters.com/legal/fortnite-creator-fight-apple-antitrust-ruling-appeal-hearing-2022-11-14/ Apple must ease App Store rules, U.S. judge orders https://www.reuters.com/legal/litigation/judge-epic-suit-says-apple-restrictions-anti-competitive-2021-09-10/ (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella June 8 (Reuters) - Apple AAPL.O and "Fortnite" maker Epic Games on Wednesday both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store. Epic's 9th Circuit filing argued that its claims against Apple directly implicate the "core purpose" of U.S. antitrust law to foster competition. Federal appeals courts do not often grant en banc requests.
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15433.0
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2023-06-08 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-13
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $180.57, moving +1.55% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 5.66%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 2.46% over the past month, lagging the Computer and Technology sector's gain of 9.07% and the S&P 500's gain of 3.44% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. The company is expected to report EPS of $1.18, down 1.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $81.17 billion, down 2.16% from the year-ago period.
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. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Apple is currently a Zacks Rank #3 (Hold).
Digging into valuation, Apple currently has a Forward P/E ratio of 29.67. For comparison, its industry has an average Forward P/E of 8.98, which means Apple is trading at a premium to the group.
It is also worth noting that AAPL currently has a PEG ratio of 2.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.37 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 194, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) closed the most recent trading day at $180.57, moving +1.55% from the previous trading session. It is also worth noting that AAPL currently has a PEG ratio of 2.37. 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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Apple (AAPL) closed the most recent trading day at $180.57, moving +1.55% from the previous trading session. It is also worth noting that AAPL currently has a PEG ratio of 2.37. 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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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) closed the most recent trading day at $180.57, moving +1.55% from the previous trading session. It is also worth noting that AAPL currently has a PEG ratio of 2.37.
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Apple (AAPL) closed the most recent trading day at $180.57, moving +1.55% from the previous trading session. It is also worth noting that AAPL currently has a PEG ratio of 2.37. 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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15434.0
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2023-06-08 00:00:00 UTC
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SPYG, CHIE: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/spyg-chie%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR Portfolio S&P 500 Growth ETF, where 14,150,000 units were destroyed, or a 4.7% decrease week over week. Among the largest underlying components of SPYG, in morning trading today Apple is up about 0.4%, and Microsoft is higher by about 0.6%.
And on a percentage change basis, the ETF with the biggest outflow was the China Energy ETF, which lost 230,000 of its units, representing a 33.8% decline in outstanding units compared to the week prior. Among the largest underlying components of CHIE, in morning trading today Graniteshares 1.25X Long Tesla Daily ETF is up about 2.3%.
VIDEO: SPYG, CHIE: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPYG, in morning trading today Apple is up about 0.4%, and Microsoft is higher by about 0.6%. And on a percentage change basis, the ETF with the biggest outflow was the China Energy ETF, which lost 230,000 of its units, representing a 33.8% decline in outstanding units compared to the week prior. Among the largest underlying components of CHIE, in morning trading today Graniteshares 1.25X Long Tesla Daily ETF is up about 2.3%.
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Among the largest underlying components of SPYG, in morning trading today Apple is up about 0.4%, and Microsoft is higher by about 0.6%. Among the largest underlying components of CHIE, in morning trading today Graniteshares 1.25X Long Tesla Daily ETF is up about 2.3%. VIDEO: SPYG, CHIE: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR Portfolio S&P 500 Growth ETF, where 14,150,000 units were destroyed, or a 4.7% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the China Energy ETF, which lost 230,000 of its units, representing a 33.8% decline in outstanding units compared to the week prior. Among the largest underlying components of CHIE, in morning trading today Graniteshares 1.25X Long Tesla Daily ETF is up about 2.3%.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR Portfolio S&P 500 Growth ETF, where 14,150,000 units were destroyed, or a 4.7% decrease week over week. Among the largest underlying components of SPYG, in morning trading today Apple is up about 0.4%, and Microsoft is higher by about 0.6%. And on a percentage change basis, the ETF with the biggest outflow was the China Energy ETF, which lost 230,000 of its units, representing a 33.8% decline in outstanding units compared to the week prior.
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15435.0
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2023-06-08 00:00:00 UTC
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7 Momentum Stocks That Could Skyrocket in the Next 12 Months
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AAPL
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https://www.nasdaq.com/articles/7-momentum-stocks-that-could-skyrocket-in-the-next-12-months
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Some of the market’s top momentum stocks appear to be on the cusp of a breakout. Whether it is due to strong earnings, new products, or improving sentiment, some of these stocks have a buzz about them. Better, many can reasonably be expected to move higher over the coming year. Plus, if economic conditions improve and we manage to avoid a deep and prolonged recession, we may enter a full-fledged bull market, which could boost these top momentum stocks.
AAPL Apple $180.57
LULU Lululemon $354.95
AMZN Amazon $124.25
GS Goldman Sachs $335.47
WMT Walmart $152.17
FDX FedEx $225.01
DKS Dick’s Sporting Goods $134.97
Top Momentum Stocks: Apple (AAPL)
Source: Wright Studio/Shutterstock.com
Apple (NASDAQ:AAPL) recently hit an all-time high after the company introduced its long-awaited augmented reality headset called the “Vision Pro.” It comes with a momentous price tag of $3,499, which raised a few eyebrows. But for the money, users get a mixed-reality headset that allows them to scroll through apps using only their eyes and watch movies (including in 3D), view photographs, and play video games.
In addition, the Vision Pro can also be used for work through videoconference apps. Plus, Apple plans to have the headset for sale in early 2024, which could be another strong catalyst. The company also announced other new products at its June developer conference, including a 15-inch MacBook Air laptop, iOS 17 for the iPhone, and a new FaceTime feature for Apple TV.
Lululemon (LULU)
Source: Vova Shevchuk / Shutterstock.com
Athletic apparel company Lululemon (NASDAQ:LULU) is riding high following its most recent earnings report. The retailer saw its stock jump 15% higher after it announced strong fiscal first-quarter earnings, which beat Wall Street forecasts. In fact, Lululemon reported that its revenue rose 24% to $2 billion, which beat analyst expectations for $1.93 billion. Net income came in at $290 million compared to $190 million a year earlier. Even better, the company said revenue in China grew 79% in fiscal Q1 from a year earlier. Perhaps most impressive, the retailer lifted its forward guidance, saying it now expects full-year revenue of $9.44 billion to $9.51 billion, up from a previous estimate of $9.31 billion to $9.41 billion. The company plans to open 50 new stores this year, most of them in China. LULU stock is now up 10% on the year and momentum seems to be building.
Amazon (AMZN)
Source: ImageFlow/Shutterstock.com
Amazon (NASDAQ:AMZN) could have a big catalyst on its hands. That is, if rumors are true that the e-commerce giant is planning to offer free nationwide mobile phone service to its Prime members in the U.S. Multiple media reports state that Amazon is negotiating with major wireless internet providers, including Verizon (NYSE:VZ) and Dish Networks (NASDAQ:DISH), to get the lowest wholesale internet prices, which it plans to pass onto consumers and drive growth in its Prime memberships.
Amazon is reportedly planning to offer Prime members unlimited wireless internet plans for as little as $10 a month, or possibly for free, to strengthen loyalty among its customers and drive membership sales. Prime members currently pay $139 a year for free delivery, video streaming, and access to more than 100 million songs. About 167 million Americans have a Prime membership. However, that level has flatlined after the company increased the price from $119. AMZN stock is flat (down 0.62%) over the past 12 months and looks ready to run.
Goldman Sachs (GS)
Source: Epic Cure / Shutterstock
IPOs and M&A deals may be in the doldrums for now. However, that could soon change with the upcoming IPO of British microchip maker Arm, which could be 2023’s biggest market debut. In fact, there’s word is could be valued at as much as $10 billion. Not only could that deal revive the IPO market, but also firms such as Goldman Sachs (NYSE:GS), which has seen its share price slide 3% this year due to a lack of action on Wall Street.
While it waits for a turnaround in the deals market, Goldman Sachs has been working to become a leaner organization. The investment bank just announced new staff cuts in what is its third round of layoffs since September 2022. The company said it expects to let 250 people go in the latest workforce reduction. This follows 3,200 staff cuts made in January of this year. Other investment banks have also cut staff, with Morgan Stanley (NYSE:MS) letting 3,000 people go earlier this year. Goldman Sachs reported a 16% decline in Q1 trading and advisory revenue as deals on Wall Street remain in a slump. But should that downward trend reverse higher, GS stock can be expected to skyrocket.
Walmart (WMT)
Source: shutterstock.com/CC7
Retail juggernaut Walmart (NYSE:WMT) has a few things working in its favor. The company just issued strong Q1 earnings, reporting that its sales rose nearly 8% as its grocery business offset weak demand for clothing and electronics. EPS came in at $1.47 versus the $1.32 that was forecast. Revenue in Q1 totaled $152.30 billion, which was ahead of forecasts for $148.76 billion. In addition, Walmart reported that its online or e-commerce sales grew 27% year-over-year during Q1.
Walmart also raised its forward guidance, saying it now anticipates that its net sales will increase by 3.5% for all of this year and that its EPS for 2023 will come in at $6.10 to $6.20. While the company noted that consumers are buying fewer big-ticket items such as TV sets, it said that its grocery sales are going gangbusters as people seek out cheaper prices with inflation remaining high. WMT stock has gained 4% year to date but could break out, especially if the economy falls into a recession in the year’s second half.
FedEx (FDX)
Source: Chompoo Suriyo / Shutterstock.com
We haven’t heard a lot from FedEx (NYSE:FDX) lately, but that could change with the shipping and logistics company’s next earnings report. In the meantime, analysts have been upgrading FDX stock in the lead-up to its Q1 print scheduled for June 20. Atlantic Equities, for example, just initiated coverage of FedEx stock with an “overweight” (buy) rating and a $265 price target, which is nearly 20% higher than where the shares are currently trading. Over the last 12 months, FDX stock has gained only a slight 3%.
Better, analysts are growing increasingly bullish on FDX stock due to expectations that the company has gotten its house in order with an aggressive cost-cutting plan. Also, FedEx’s last quarterly results, delivered in March, were better than Wall Street expected and showed the company is making progress. FedEx raised its full-year guidance in March, saying it expects EPS of $14.60 and $15.20 per share.
Dick’s Sporting Goods (DKS)
Source: AdityaB. Photography/ShutterStock.com
Shares of sports equipment retailer Dick’s Sporting Goods (NYSE:DKS) dipped at the end of May after several other retailers, notably Foot Locker (NYSE:FL), reported subpar earnings. DKS stock fell 10% in only a few days, largely in sympathy with Foot Locker and others. However, the share price has since recovered all of that loss and looks poised to test new highs over the coming 12 months. The company has proven to be remarkably resilient in the face of inflation and rising interest rates, positioning it as a best-in-class retailer.
Earlier this year, Dick’s Sporting Goods more than doubled its quarterly dividend after crushing its earnings. The company raised its quarterly dividend to $1, which is an increase of 105% from the 48.75 cents previously. The company has continued to report strong earnings as its specialty focus on sports equipment, strong brand, and market share enable it to weather the current inflationary and high-interest rate environment. As the economy and consumer spending improve, DKS stock should strengthen further.
On the date of publication, Joel Baglole held long positions in AAPL and MS. 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.
The post 7 Momentum Stocks That Could Skyrocket in the Next 12 Months 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 $180.57 LULU Lululemon $354.95 AMZN Amazon $124.25 GS Goldman Sachs $335.47 WMT Walmart $152.17 FDX FedEx $225.01 DKS Dick’s Sporting Goods $134.97 Top Momentum Stocks: Apple (AAPL) Source: Wright Studio/Shutterstock.com Apple (NASDAQ:AAPL) recently hit an all-time high after the company introduced its long-awaited augmented reality headset called the “Vision Pro.” It comes with a momentous price tag of $3,499, which raised a few eyebrows. On the date of publication, Joel Baglole held long positions in AAPL and MS. Not only could that deal revive the IPO market, but also firms such as Goldman Sachs (NYSE:GS), which has seen its share price slide 3% this year due to a lack of action on Wall Street.
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AAPL Apple $180.57 LULU Lululemon $354.95 AMZN Amazon $124.25 GS Goldman Sachs $335.47 WMT Walmart $152.17 FDX FedEx $225.01 DKS Dick’s Sporting Goods $134.97 Top Momentum Stocks: Apple (AAPL) Source: Wright Studio/Shutterstock.com Apple (NASDAQ:AAPL) recently hit an all-time high after the company introduced its long-awaited augmented reality headset called the “Vision Pro.” It comes with a momentous price tag of $3,499, which raised a few eyebrows. On the date of publication, Joel Baglole held long positions in AAPL and MS. Amazon is reportedly planning to offer Prime members unlimited wireless internet plans for as little as $10 a month, or possibly for free, to strengthen loyalty among its customers and drive membership sales.
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AAPL Apple $180.57 LULU Lululemon $354.95 AMZN Amazon $124.25 GS Goldman Sachs $335.47 WMT Walmart $152.17 FDX FedEx $225.01 DKS Dick’s Sporting Goods $134.97 Top Momentum Stocks: Apple (AAPL) Source: Wright Studio/Shutterstock.com Apple (NASDAQ:AAPL) recently hit an all-time high after the company introduced its long-awaited augmented reality headset called the “Vision Pro.” It comes with a momentous price tag of $3,499, which raised a few eyebrows. On the date of publication, Joel Baglole held long positions in AAPL and MS. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some of the market’s top momentum stocks appear to be on the cusp of a breakout.
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AAPL Apple $180.57 LULU Lululemon $354.95 AMZN Amazon $124.25 GS Goldman Sachs $335.47 WMT Walmart $152.17 FDX FedEx $225.01 DKS Dick’s Sporting Goods $134.97 Top Momentum Stocks: Apple (AAPL) Source: Wright Studio/Shutterstock.com Apple (NASDAQ:AAPL) recently hit an all-time high after the company introduced its long-awaited augmented reality headset called the “Vision Pro.” It comes with a momentous price tag of $3,499, which raised a few eyebrows. On the date of publication, Joel Baglole held long positions in AAPL and MS. The retailer saw its stock jump 15% higher after it announced strong fiscal first-quarter earnings, which beat Wall Street forecasts.
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15436.0
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2023-06-08 00:00:00 UTC
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Apple Stock is on Fire. Invest in it with These 3 ETFs
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AAPL
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https://www.nasdaq.com/articles/apple-stock-is-on-fire.-invest-in-it-with-these-3-etfs
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nan
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nan
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Apple (NASDAQ:AAPL) stock is off to a gain of over 40% year-to-date, and it has a coveted 'Perfect 10' TipRanks Smart Score. Excitement about the company’s newly-unveiled VR headset is starting to build. Even Warren Buffett is a fan of the stock. Apple has been Berkshire Hathaway’s (NYSE:BRK.B) largest position for a long time. In fact, after its 2023 run-up, it currently accounts for nearly half of Berkshire’s equity portfolio.
Investors looking to invest in Apple through ETFs are in luck because Apple is the largest company in the world by market cap (with a $2.8 trillion valuation), and it isn’t hard to find ETFs with a large position in it. Therefore, without further ado, here are three of the top ETFs with Apple stock exposure.
1. Vanguard Information Technology ETF (NYSEARCA:VGT)
Apple is the VGT ETF's top holding with a massive 23.5% weighting. Vanguard funds are known for their diversification, and aside from this large Apple position, VGT is no different. The $51.3 billion ETF holds 366 positions. Because it is a market-weighted ETF and Apple is the largest position in the index VGT tracks (the MSCI U.S. Investable Market Index (IMI)/Information Technology 20/50), Apple rises to the top with this large allocation.
Including Apple, VGT’s top 10 holdings account for 63.9% of the fund. Below, you’ll find an overview of VGT’s top holdings using TipRanks’ holdings tool.
VGT’s underlying index is comprised of companies within the Global Industry Classification Standard (GICS) information technology sector, which includes software and IT services companies as well as makers and distributors of technology hardware such as semiconductors, cell phones, and computers. Therefore, it’s no surprise to see plenty of familiar mega-cap technology names within VGT’s top 10, whether it’s Apple, Microsoft (NASDAQ:MSFT), or Nvidia (NASDAQ:NVDA).
You may be surprised to find payment network giants like Visa (NYSE:V) and Mastercard (NYSE:MA) coming in as the number four and five positions in a technology ETF, but note these are also fintech companies pushing innovation in the finance space.
In the chart above, you’ll see plenty of bright green Smart Scores. The Smart Score is TipRanks’ proprietary quantitative stock scoring system that evaluates stocks on eight different market factors. The result is data-driven and does not require any human intervention. A Smart Score of 8 or above is the equivalent of an Outperform rating. As you can see, VGT impresses in this department as nine of its top 10 holdings have Outperform-equivalent ratings. Furthermore, VGT itself features an ETF Smart Score of 8 out of 10.
VGT has been a strong performer over the years, and it is currently up 32% year-to-date. It has returned 16.5% over the past year, 17.8% annualized over a three-year time frame, and 19.1% annualized on a five-year basis. Further, VGT has returned 19.8% (annualized) over the past decade, and it’s hard not to be happy with that type of long-term return.
Another nice thing about VGT is its low fees. The ETF has an expense ratio of just 0.1%, meaning that an investor who puts $10,000 into the ETF will only pay $10 in fees in a year.
Is VGT Stock a Buy, According to Analysts?
Analysts are fairly positive on VGT, assigning it a Moderate Buy consensus rating. The average VGT stock price target of $456.65 implies upside potential of 9.04% from current levels.
2. Technology Select Sector SPDR Fund (NYSEARCA:XLK)
Like VGT, the Technology Select Sector SPDR Fund is a low-fee, index-based fund investing in the technology sector. In XLK’s case, it invests in the technology sector of the S&P 500 (SPX).
Similar to VGT, Apple has a massive position here with its 22.9% weighting, although it’s not XLK’s largest holding. That honor belongs to Microsoft, which edges Apple out for the top spot with a 24.3% weighting. XLK holds far fewer stocks than VGT. It currently holds 65 stocks, and its top 10 holdings make up 71.6% of the fund. See below for an overview of XLK’s top holdings.
You’ll notice that beyond Apple and Microsoft, XLK and VGT share many of the same top holdings. One notable difference is that while VGT owns large positions in Visa and Mastercard, these stocks are not found in XLK as they are not part of the S&P 500 technology sector -- they are part of the S&P 500 financial sector and can thus be found in the Financial Select Sector SPDR Fund (NYSEARCA:XLF).
As with VGT, you’ll find plenty of great Smart Scores here -- 8 out of XLK’s top 10 holdings feature Smart Scores of 8 or better, and XLK itself boasts a strong ETF Smart Score of 8 out of 10.
XLK offers the same investor-friendly expense ratio as VGT (0.1%), and it also boasts a great track record of long-term performance like VGT. XLK is up 33% year-to-date, and it returned 7.7% over the past year. It has been very consistent on an annualized basis, with total returns of 19.2% annualized over the past three years, 19.5% annualized over a five-year time frame, and 18.9% over the past decade. These are the types of results that help investors to build wealth over the long run.
Is XLK Stock a Buy, According to Analysts?
The consensus analyst view on XLK is fairly similar to that of VGT -- a Moderate Buy rating with an average XLK stock price target of $175.67, implying upside potential of 6.8%.
3. Invesco QQQ Trust (NASDAQ:QQQ)
Lastly, the Invesco QQQ Trust ETF has become synonymous with technology stocks over the years, so it’s no surprise that it has a large Apple position. At 12.1%, QQQ’s Apple weighting is smaller than that of VGT’s or XLK’s, but this is still a sizable position in the grand scheme of things. Microsoft is ahead of Apple by a narrow margin with a 13.2% weighting. Check out the table below for a look at QQQ’s top holdings.
Because QQQ's underlying index is the Nasdaq 100 (NDX), you’ll find that this list is dominated by the mega-cap tech names like Microsoft, Apple, Amazon (NASDAQ:AMZN), Nvidia, Meta Platforms (NASDAQ:META) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) that the Nasdaq is known for.
You may notice that names like Amazon and Tesla (NASDAQ:TSLA) are included here but absent from XLK, as it considers them to be consumer stocks. These stocks are not found in VGT’s underlying index either.
Pepsi (NASDAQ:PEP) is a notable outlier here, as it is clearly not a tech stock, but it is one of the largest stocks on the Nasdaq 100, so it makes the cut.
QQQ comes in a bit behind XLK and VGT in that six of its top 10 holdings have Smart Scores of 8 or above (as opposed to nine out of 10 for XLK and eight out of 10 for VGT). Nonetheless, QQQ itself features a strong ETF Smart Score of 8.
QQQ's expense ratio is higher than that of VGT or XLK at 0.2%, but this is still an investor-friendly expense ratio, and it is still a lower fee than you will find with many other ETFs out there.
Like the other two funds discussed here, QQQ is another long-term winner. As of the end of the most recent quarter, the Nasdaq-focused ETF has returned 32% year-to-date. Moreover, it has posted annualized total returns of 19.8% over the past three years, 15.7% over the past five, and 17.7% over the past 10 (as of March 31).
Is QQQ Stock a Buy, According to Analysts?
Analysts also rate QQQ a Moderate Buy at current levels and see it as having similar upside potential of 9.5% based on the average QQQ stock price target of $385.11.
Closing Thoughts
It's hard to go wrong with any of these three ETFs, and in many ways, they are very similar. QQQ is slightly different in that it offers lower exposure to Apple (although it still gives investors double-digit exposure) and features more of the typical mega-cap tech and FAANG names that many investors likely associate with Apple.
Meanwhile, these types of other names are not as prominent (or are missing altogether) from VGT and XLK, but they both give you Apple exposure of roughly 20% and similar stakes in Microsoft. QQQ features a higher expense ratio than VGT or XLK, but it is still a moderate expense ratio.
All three of these tech-focused funds offer investors significant exposure to Apple, and all three have impeccable long-term performance track records. Furthermore, they all feature low expense ratios. For investors with a long time horizon and an interest in Apple as well as its tech peers, these ETFs look well-positioned to continue providing solid long-term returns.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) stock is off to a gain of over 40% year-to-date, and it has a coveted 'Perfect 10' TipRanks Smart Score. You may notice that names like Amazon and Tesla (NASDAQ:TSLA) are included here but absent from XLK, as it considers them to be consumer stocks. Meanwhile, these types of other names are not as prominent (or are missing altogether) from VGT and XLK, but they both give you Apple exposure of roughly 20% and similar stakes in Microsoft.
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Apple (NASDAQ:AAPL) stock is off to a gain of over 40% year-to-date, and it has a coveted 'Perfect 10' TipRanks Smart Score. Vanguard Information Technology ETF (NYSEARCA:VGT) Apple is the VGT ETF's top holding with a massive 23.5% weighting. Technology Select Sector SPDR Fund (NYSEARCA:XLK) Like VGT, the Technology Select Sector SPDR Fund is a low-fee, index-based fund investing in the technology sector.
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Apple (NASDAQ:AAPL) stock is off to a gain of over 40% year-to-date, and it has a coveted 'Perfect 10' TipRanks Smart Score. Vanguard Information Technology ETF (NYSEARCA:VGT) Apple is the VGT ETF's top holding with a massive 23.5% weighting. As with VGT, you’ll find plenty of great Smart Scores here -- 8 out of XLK’s top 10 holdings feature Smart Scores of 8 or better, and XLK itself boasts a strong ETF Smart Score of 8 out of 10.
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Apple (NASDAQ:AAPL) stock is off to a gain of over 40% year-to-date, and it has a coveted 'Perfect 10' TipRanks Smart Score. Vanguard Information Technology ETF (NYSEARCA:VGT) Apple is the VGT ETF's top holding with a massive 23.5% weighting. Similar to VGT, Apple has a massive position here with its 22.9% weighting, although it’s not XLK’s largest holding.
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15437.0
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2023-06-08 00:00:00 UTC
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US STOCKS-Wall Street climbs amid thin volumes ahead of eventful week
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-climbs-amid-thin-volumes-ahead-of-eventful-week
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nan
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nan
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By Shristi Achar A and David Carnevali
June 8 (Reuters) - U.S. stocks edged higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, dropped to a fresh pre-pandemic low of 13.66.
"What you are really seeing in the vol market is an unwillingness to engage," said David Bianco, Americas chief investment officer for asset manager DWS Group. "You've just got paralysis in investors."
Investors were sitting on the sidelines ahead of inflation data and a Federal Reserve policy meeting next week.
Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool. However, they see a 50% chance of a rate hike in July.
The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped from one-week highs to 4.5% after a sharp jump in weekly jobless claims signaled a softening labor market.
The U.S. Labor Department is due to release inflation data on June 13, the first day of the Fed meeting. The numbers are expected to show consumer prices cooled slightly in May but core prices remained sticky.
Meanwhile, a rebound by technology and megacap stocks helped major indexes regain their footing amid thin volumes.
Heavyweight Amazon.com Inc AMZN.O gained 2.06% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 1% and 3.5%.
GameStop Corp GME.N tanked 18.10% as billionaire investor Ryan Cohen took over as executive chairman after the video-game retailer ousted its CEO and posted a bigger-than-expected quarterly loss.
The Dow Jones Industrial Average .DJIrose 146.76 points, or 0.44%, to 33,811.78, the S&P 500 .SPXgained 18.18 points, or 0.43%, to 4,285.7 and the Nasdaq Composite .IXICadded 92.05 points, or 0.7%, to 13,196.94.
Among the 11 major S&P sectors, consumer discretionary .SPLRCD led the charge, while real estate .SPLRCR and energy .SPNY indexes slipped, with the latter being hit by a drop in oil prices.
Adobe ADBE.O added 3.99% after Piper Sandler raised its prices target on the stock to $500. The Photoshop software maker said it was offering its AI tool "Firefly" to large businesses.
Lucid Group LCID.Oreversed gains and was down 1.17% after the U.S. luxury electric-vehicle maker's head of China operations, Zhu Jiang, said the company was preparing to enter the world's largest auto market.
Advancing issues outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.04-to-1 ratio favored decliners.
The S&P 500 posted eight new 52-week highs and two new lows; the Nasdaq Composite recorded 55 new highs and 37 new lows.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Marguerita Choy)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Heavyweight Amazon.com Inc AMZN.O gained 2.06% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 1% and 3.5%. Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool. The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped from one-week highs to 4.5% after a sharp jump in weekly jobless claims signaled a softening labor market.
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Heavyweight Amazon.com Inc AMZN.O gained 2.06% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 1% and 3.5%. By Shristi Achar A and David Carnevali June 8 (Reuters) - U.S. stocks edged higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week. Meanwhile, a rebound by technology and megacap stocks helped major indexes regain their footing amid thin volumes.
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Heavyweight Amazon.com Inc AMZN.O gained 2.06% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 1% and 3.5%. By Shristi Achar A and David Carnevali June 8 (Reuters) - U.S. stocks edged higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week. Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool.
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Heavyweight Amazon.com Inc AMZN.O gained 2.06% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 1% and 3.5%. By Shristi Achar A and David Carnevali June 8 (Reuters) - U.S. stocks edged higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week. Investors were sitting on the sidelines ahead of inflation data and a Federal Reserve policy meeting next week.
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15438.0
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2023-06-08 00:00:00 UTC
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US STOCKS-Wall Street climbs as yields slip on jobless claims data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-climbs-as-yields-slip-on-jobless-claims-data
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nan
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nan
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By Sruthi Shankar and Shristi Achar A
June 8 (Reuters) - The tech-heavy Nasdaq led gains on Wall Street on Thursday as a dip in Treasury yields supported megacap stocks, though investors remained cautious ahead of inflation data and the Federal Reserve's policy meeting next week.
The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped from one-week highs to 4.5% after a sharp jump in weekly jobless claims signaled a softening labor market.
Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool. However, they see a 50% chance of a rate hike in July.
"Today's data in terms of higher claims shows that the Fed policy is having a clear effect," said David Russell, vice president of Market Intelligence at TradeStation.
"There's a lot of reasons to be optimistic that inflation is coming down, but the Fed is likely to keep a relatively stern tone until they know for sure. So at this point, the Fed wants to take a step back and see if the medicine is working."
Heavyweight Amazon.com Inc AMZN.O gained 3.0% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 0.9% and 3.4%.
GameStop Corp GME.N tanked 17.8% as billionaire investor Ryan Cohen took over as executive chairman after the video-game retailer ousted its CEO and posted a bigger-than-expected quarterly loss.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, dropped to a fresh pre-pandemic low of 13.73.
The U.S. Labor Department is due to release inflation data on June 13, the first day of the Fed meeting. The numbers are expected to show consumer prices cooled slightly in May but core prices remained sticky.
The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed lower on Wednesday, with megacap stocks leading declines after the Bank of Canada (BoC) surprised markets with a rate hike, indicating that monetary tightening globally was far from over.
At 11:48 a.m. ET, the Dow Jones Industrial Average .DJI was up 65.71 points, or 0.20%, at 33,730.73, the S&P 500 .SPX was up 15.22 points, or 0.36%, at 4,282.74, and the Nasdaq Composite .IXIC was up 115.45 points, or 0.88%, at 13,220.35.
Among the 11 major S&P sectors, consumer discretionary .SPLRCD led gains, while real estate .SPLRCR and material .SPLRCM indexes declined after their recent run-up. Banks .SPXBK retreated 1.0%.
AdobeADBE.O added 4.7% after Piper Sandler raised its prices target on the stock to $500. The Photoshop software maker said it was offering its AI tool "Firefly" to large businesses.
Lucid Group LCID.O inched up 0.4% after the U.S. luxury electric-vehicle maker's head of China operations, Zhu Jiang, said the company was preparing to enter the world's largest auto market.
Declining issues outnumbered advancers by a 1.31-to-1 ratio on the NYSE and a 1.06-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and two new lows, while the Nasdaq recorded 38 new highs and 29 new lows.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Heavyweight Amazon.com Inc AMZN.O gained 3.0% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 0.9% and 3.4%. By Sruthi Shankar and Shristi Achar A June 8 (Reuters) - The tech-heavy Nasdaq led gains on Wall Street on Thursday as a dip in Treasury yields supported megacap stocks, though investors remained cautious ahead of inflation data and the Federal Reserve's policy meeting next week. The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped from one-week highs to 4.5% after a sharp jump in weekly jobless claims signaled a softening labor market.
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Heavyweight Amazon.com Inc AMZN.O gained 3.0% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 0.9% and 3.4%. By Sruthi Shankar and Shristi Achar A June 8 (Reuters) - The tech-heavy Nasdaq led gains on Wall Street on Thursday as a dip in Treasury yields supported megacap stocks, though investors remained cautious ahead of inflation data and the Federal Reserve's policy meeting next week. Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool.
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Heavyweight Amazon.com Inc AMZN.O gained 3.0% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 0.9% and 3.4%. By Sruthi Shankar and Shristi Achar A June 8 (Reuters) - The tech-heavy Nasdaq led gains on Wall Street on Thursday as a dip in Treasury yields supported megacap stocks, though investors remained cautious ahead of inflation data and the Federal Reserve's policy meeting next week. Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool.
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Heavyweight Amazon.com Inc AMZN.O gained 3.0% as Wells Fargo initiated coverage on the company with an "overweight" rating, while Nvidia Corp NVDA.O, Apple Inc AAPL.O and Tesla Inc TSLA.O rose between 0.9% and 3.4%. By Sruthi Shankar and Shristi Achar A June 8 (Reuters) - The tech-heavy Nasdaq led gains on Wall Street on Thursday as a dip in Treasury yields supported megacap stocks, though investors remained cautious ahead of inflation data and the Federal Reserve's policy meeting next week. Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CMEGroup's Fedwatch tool.
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15439.0
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2023-06-08 00:00:00 UTC
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Wall Street Thinks This Stock Could Make Warren Buffett the Most Money Over the Next 12 Months
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AAPL
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https://www.nasdaq.com/articles/wall-street-thinks-this-stock-could-make-warren-buffett-the-most-money-over-the-next-12
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) owns shares of nearly 50 stocks, but Warren Buffett didn't personally pick all of them. A few positions were initiated by Berkshire's investment managers.
However, Buffett could profit from any of the stocks in Berkshire's portfolio. Some are likely to be much bigger winners than others. Wall Street thinks this stock could make Buffett the most money over the next 12 months.
Ruling out some top contenders
Before we get to that potential biggest moneymaker, let's rule out some of the top contenders. Analysts don't believe that several of the stocks many might guess would generate the biggest gains for Buffett will move the needle enough.
For example, Apple (NASDAQ: AAPL) ranks as Berkshire's biggest single holding, by far. It wouldn't be surprising, therefore, if it made Buffett the most money over any given period.
However, the consensus price target for Apple stock reflects an upside potential of less than 3%. Even the highly anticipated announcement of Apple's mixed-reality headset hasn't excited analysts enough to affect their price targets.
What about Occidental Petroleum (NYSE: OXY)? Buffett is buying the oil stock more aggressively these days than any other. Berkshire now owns nearly 25% of Oxy.
Wall Street is certainly bullish about Occidental. The average analyst's 12-month price target is roughly 17% above the current share price. But while an increase of that much would make Berkshire more than $2 billion in gains, Occidental still isn't the stock Wall Street has in mind.
Take it to the bank
I won't prolong the suspense. The one stock that Wall Street thinks will make Buffett the most money over the next 12 months is... Bank of America (NYSE: BAC).
The consensus price target for Bank of America, Berkshire's second-largest position, reflects an upside potential of around 23%. With Berkshire's stake in BofA currently worth over $30 billion, a 23% increase would make the company nearly $7 billion.
This amount, by the way, doesn't include any dividend income Berkshire should make with the bank stock. Bank of America currently pays an annualized dividend of $0.88 per share. Since it owns over 1.03 million shares, it stands to receive nearly $910 million in dividends over the next 12 months.
Why are analysts so upbeat about Bank of America? One big reason is the stock is dirt cheap right now. After being hammered by the banking crisis earlier this year, BofA shares trade at a forward earnings multiple of below 8.4.
But the bank's financial position remains strong. Its management team is top-notch and the company stands out as one of the leading technological innovators in the banking sector.
Wall Street knows all of this. They realize that BofA's decline should only be a temporary one.
Beyond 12 months
Which stock is likely to make Buffett the most money over a longer period than 12 months -- say five to 10 years? Analysts won't help us with that question. However, I have a pretty good guess -- and I don't think it's Bank of America.
I recently predicted that Amazon and Occidental will be Buffett's biggest winners this decade. Neither will be his biggest moneymaker, though. That honor will go to Apple, in my view.
Berkshire's massive stake in Apple means that the stock doesn't have to move very much to generate a lot of money for the conglomerate. I'm optimistic about Apple's long-term growth prospects. Barring some dramatic change in Berkshire's stake in the company, I expect that Apple will easily be Buffett's biggest moneymaker over the next five to 10 years.
But I agree with Wall Street about Bank of America. It probably will make the Oracle of Omaha the most money over the shorter term. And it could make investors who aren't multibillionaires money, as well.
10 stocks we like better than Bank of America
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Bank of America wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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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. Keith Speights has positions in Amazon.com, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon.com, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, Apple (NASDAQ: AAPL) ranks as Berkshire's biggest single holding, by far. The one stock that Wall Street thinks will make Buffett the most money over the next 12 months is... Bank of America (NYSE: BAC). Berkshire's massive stake in Apple means that the stock doesn't have to move very much to generate a lot of money for the conglomerate.
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For example, Apple (NASDAQ: AAPL) ranks as Berkshire's biggest single holding, by far. However, the consensus price target for Apple stock reflects an upside potential of less than 3%. The one stock that Wall Street thinks will make Buffett the most money over the next 12 months is... Bank of America (NYSE: BAC).
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For example, Apple (NASDAQ: AAPL) ranks as Berkshire's biggest single holding, by far. But while an increase of that much would make Berkshire more than $2 billion in gains, Occidental still isn't the stock Wall Street has in mind. The one stock that Wall Street thinks will make Buffett the most money over the next 12 months is... Bank of America (NYSE: BAC).
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For example, Apple (NASDAQ: AAPL) ranks as Berkshire's biggest single holding, by far. Wall Street thinks this stock could make Buffett the most money over the next 12 months. The one stock that Wall Street thinks will make Buffett the most money over the next 12 months is... Bank of America (NYSE: BAC).
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15440.0
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2023-06-08 00:00:00 UTC
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S&P 500, Nasdaq set to edge up as yields slip after jobless claims data
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AAPL
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https://www.nasdaq.com/articles/sp-500-nasdaq-set-to-edge-up-as-yields-slip-after-jobless-claims-data
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nan
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nan
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By Sruthi Shankar and Shristi Achar A
June 8 (Reuters) - The S&P 500 and Nasdaq were set to open slightly higher on Thursday as Treasury yields slipped after data showed weekly jobless claims rose more than expected, countering some concerns about further interest rate hikes.
The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped from one-week highs to 4.50% after a big jump in weekly jobless claims signaled a softening labor market.
Investors are focused on the Federal Reserve's monetary policy meeting on June 13-14, and see a 68% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range, according to CMEGroup's Fedwatch tool. They see a 50% chance of a rate hike in July.
"Our view remains that the Fed will pause in June, but leave the door open for a July hike, keeping it data dependent. Eventually we don't think the Fed will hike in July," Jefferies strategist Mohit Kumar said.
The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed lower on Wednesday, with megacap stocks leading declines after the Bank of Canada (BoC) surprised markets with a rate hike, reminding investors that monetary tightening globally was far from over.
"They (BoC) do support our view that inflation would be sticky for longer than what central banks want which would rule out any cuts in 2023," Kumar said.
The U.S. Labor Department is due to release inflation data on June 13, the first day of the Fed meeting. The numbers are expected to show consumer prices cooled slightly in May but core prices remained sticky.
Growth stocks including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O inched higher in premarket trading after their recent run of losses, while Amazon.com Inc AMZN.O gained 1.4%.
Another big mover was GameStop Corp GME.N, whose shares tanked 22% as billionaire investor Ryan Cohen took over as executive chairman after the video-game retailer ousted its CEO and posted a bigger-than-expected quarterly loss.
As investors rotated out of growth stocks, the economically sensitive companies advanced, with the Russell 2000 index of small-cap firms .RUT jumping 1.8% to a three-month closing high on Wednesday.
The Dow Jones transports index .DJT notched a six-week high, while the KBW Regional Banking index .KRX closed at a more than two-month peak.
At 8:45 a.m. ET, Dow e-minis 1YMcv1 were down 29 points, or 0.09%, S&P 500 e-minis EScv1 were up 1.25 points, or 0.03%, and Nasdaq 100 e-minis NQcv1 were up 22.25 points, or 0.16%.
"(After) the incredible returns that anything related to AI has been able to produce, it's just normal profit-taking on the part of short-term traders looking for opportunities in areas of the market that haven't performed as well," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, edged up after dropping to a pre-pandemic low of 13.77 on Wednesday.
Lucid Group LCID.O rose 3.0% after the U.S. luxury electric vehicle maker's head of China operations, Zhu Jiang, said the company was preparing to enter the world's largest auto market.
AdobeADBE.O added 1.8% after Piper Sandler raised its prices target on the stock to $500. The Photoshop software maker said it was offering its AI tool "Firefly" to large businesses.
(Reporting by Sruthi Shankar in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Growth stocks including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O inched higher in premarket trading after their recent run of losses, while Amazon.com Inc AMZN.O gained 1.4%. By Sruthi Shankar and Shristi Achar A June 8 (Reuters) - The S&P 500 and Nasdaq were set to open slightly higher on Thursday as Treasury yields slipped after data showed weekly jobless claims rose more than expected, countering some concerns about further interest rate hikes. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed lower on Wednesday, with megacap stocks leading declines after the Bank of Canada (BoC) surprised markets with a rate hike, reminding investors that monetary tightening globally was far from over.
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Growth stocks including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O inched higher in premarket trading after their recent run of losses, while Amazon.com Inc AMZN.O gained 1.4%. By Sruthi Shankar and Shristi Achar A June 8 (Reuters) - The S&P 500 and Nasdaq were set to open slightly higher on Thursday as Treasury yields slipped after data showed weekly jobless claims rose more than expected, countering some concerns about further interest rate hikes. The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped from one-week highs to 4.50% after a big jump in weekly jobless claims signaled a softening labor market.
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Growth stocks including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O inched higher in premarket trading after their recent run of losses, while Amazon.com Inc AMZN.O gained 1.4%. By Sruthi Shankar and Shristi Achar A June 8 (Reuters) - The S&P 500 and Nasdaq were set to open slightly higher on Thursday as Treasury yields slipped after data showed weekly jobless claims rose more than expected, countering some concerns about further interest rate hikes. The two-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, slipped from one-week highs to 4.50% after a big jump in weekly jobless claims signaled a softening labor market.
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Growth stocks including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O inched higher in premarket trading after their recent run of losses, while Amazon.com Inc AMZN.O gained 1.4%. By Sruthi Shankar and Shristi Achar A June 8 (Reuters) - The S&P 500 and Nasdaq were set to open slightly higher on Thursday as Treasury yields slipped after data showed weekly jobless claims rose more than expected, countering some concerns about further interest rate hikes. They see a 50% chance of a rate hike in July.
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15441.0
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2023-06-08 00:00:00 UTC
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Why Communication Services ETFs Surged in 2023
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AAPL
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https://www.nasdaq.com/articles/why-communication-services-etfs-surged-in-2023
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nan
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Communication Services is one of the top-performing sectors this year, with a gain of about 32%, just behind the tech sector. The new Communication Services sector was created in 2018 by broadening and renaming the old Telecom sector.
Google parent Alphabet GOOGL, Meta Platforms META, and Netflix NFLX are some of the high-profile stocks that reside in the sector and drive its performance, as they make up more than 50% of the sector.
Alphabet, which has heavily invested in AI and machine learning over the past few years, scrambled to roll out its chatbot competitor after ChatGPT’s explosive popularity. The search giant has since announced a slew of new products and tools that use generative AI. The stock is up over 40% this year.
Meta Platforms shares have surged over 110% as the company aggressively cuts costs in what CEO Zuckerberg has called the "year of efficiency." With the launch of Apple's AAPL mixed-reality headset this week, the competition in the AR and VR areas will heat up.
To learn about the Communication Services Select Sector SPDR ETF XLC, the Vanguard Communication Services ETF VOX and the Invesco S&P 500 Equal Weight Communication Services ETF (EWCO), please watch the short video above.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Communication Services ETF (VOX): ETF Research Reports
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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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With the launch of Apple's AAPL mixed-reality headset this week, the competition in the AR and VR areas will heat up. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Communication Services ETF (VOX): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet, which has heavily invested in AI and machine learning over the past few years, scrambled to roll out its chatbot competitor after ChatGPT’s explosive popularity.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Communication Services ETF (VOX): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. With the launch of Apple's AAPL mixed-reality headset this week, the competition in the AR and VR areas will heat up. Google parent Alphabet GOOGL, Meta Platforms META, and Netflix NFLX are some of the high-profile stocks that reside in the sector and drive its performance, as they make up more than 50% of the sector.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Communication Services ETF (VOX): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. With the launch of Apple's AAPL mixed-reality headset this week, the competition in the AR and VR areas will heat up. Google parent Alphabet GOOGL, Meta Platforms META, and Netflix NFLX are some of the high-profile stocks that reside in the sector and drive its performance, as they make up more than 50% of the sector.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Communication Services ETF (VOX): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. With the launch of Apple's AAPL mixed-reality headset this week, the competition in the AR and VR areas will heat up. Communication Services is one of the top-performing sectors this year, with a gain of about 32%, just behind the tech sector.
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15442.0
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2023-06-08 00:00:00 UTC
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3 Nasdaq Stocks That Have Generated 10x Returns in 10 Years
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AAPL
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https://www.nasdaq.com/articles/3-nasdaq-stocks-that-have-generated-10x-returns-in-10-years
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The Nasdaq is home to many of the best growth stocks in the world. Some of them have generated life-changing returns for investors, including Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Idexx Laboratories (NASDAQ: IDXX). These stocks have all been 10-baggers over the past decade. Here's a closer look at these companies and whether they are still excellent investments today.
1. Apple
In 10 years, shares of tech giant Apple have risen by more than 1,000%. If you'd invested only $10,000 in June 2013, it would be worth around $113,600 today. And that's investing at a time when Apple was already a big tech company known for its iPhones and growing ecosystem. Today, the company has a variety of different services, including music, streaming, books, news, and many others.
Apple hasn't run out of ideas to grow, either. This month it unveiled Vision Pro, the company's augmented reality headset. Healthcare is another potential area of long-term growth for the business, as there have been rumors the company could be adding a blood glucose monitor on a future iteration of its Apple Watch.
A company like Apple that gushes profits and free cash flow can afford to spend money on various ventures to see which one pays off. In the trailing 12 months, the company's free cash flow totaled more than $97 billion.
That's why, despite being nearly worth $3 trillion, it may still not be too late to buy this behemoth, as Apple could have more growth opportunities to pursue in the future. At 28 times earnings, the growth stock isn't cheap -- but it's still not a big premium to own shares of a company that billionaire investor Warren Buffett says is "probably the best business I know in the world."
2. Nvidia
Nvidia recently hit the $1 trillion valuation mark, as its stock has been rising sharply this year. Known for its video cards, Nvidia is a top name in computing, and the emergence of chatbot ChatGPT has only enhanced its popularity with investors.
Artificial intelligence (AI) is the next new growth area for the business, with Nvidia recently launching an AI platform that it says offers "full-stack innovation in computing, software, and AI models and services." Nvidia's chips can also help companies build out their AI capabilities.
The company forecast that for the current quarter (which ends in July), its sales will be around $11 billion -- smashing analyst expectations of $7.2 billion, leading to a rally in the stock's valuation. Demand has also been red hot for its data center products, fueling the company's strong numbers.
Although its valuation has gone through the roof, with Nvidia's stock now trading at more than 80 times estimated future profits, it still has more upside to go as it promises to be a big name in AI.
In 10 years, its shares have jumped by more than 10,000%, and a $10,000 investment a decade ago would be worth close to $1.1 million today. And remarkably, it may still make for a great long-term buy right now.
3. Idexx Laboratories
Pet healthcare company Idexx Laboratories has given back some gains over the past few years, but its 10-year returns sit at just over 1,000%. A $10,000 investment in the stock a decade ago would now be worth around $107,000.
The company has customers in over 175 countries, giving the business plenty of growth opportunities. Unlike the fast-growing tech and consumer stocks up higher on this list, Idexx's growth has been more constant and steady over the years:
IDXX Revenue (Annual) data by YCharts.
In 2023, for example, it's projecting revenue growth between 7.5% and 10%. On the bottom line, however, it's projecting up to 22% growth in earnings per share.
The bulk of the company's revenue (approximately 92%) comes from the companion animal group segment, which includes veterinarian diagnostics products and services for pets. It also generates revenue from water testing products and livestock and poultry diagnostics.
Spending on pets has risen over the years, ensuring demand for Idexx's products and services continues to increase. According to the American Pet Products Association, the U.S. pet market was worth $136.8 billion in 2022, representing a 51% increase from $90.5 billion in 2018. And this year it expects the market to rise to a value of $143.6 billion.
With more spending still on the way, Idexx's business will remain strong. One obstacle that may keep investors from buying shares of Idexx, however, is the stock's hefty earnings multiple of around 60. Given the more modest growth opportunities in this industry, it may be hard to justify such a valuation for Idexx.
10 stocks we like better than Idexx Laboratories
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Idexx Laboratories 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
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool recommends Idexx Laboratories. 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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Some of them have generated life-changing returns for investors, including Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Idexx Laboratories (NASDAQ: IDXX). Healthcare is another potential area of long-term growth for the business, as there have been rumors the company could be adding a blood glucose monitor on a future iteration of its Apple Watch. At 28 times earnings, the growth stock isn't cheap -- but it's still not a big premium to own shares of a company that billionaire investor Warren Buffett says is "probably the best business I know in the world."
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Some of them have generated life-changing returns for investors, including Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Idexx Laboratories (NASDAQ: IDXX). Idexx Laboratories Pet healthcare company Idexx Laboratories has given back some gains over the past few years, but its 10-year returns sit at just over 1,000%. The Motley Fool recommends Idexx Laboratories.
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Some of them have generated life-changing returns for investors, including Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Idexx Laboratories (NASDAQ: IDXX). At 28 times earnings, the growth stock isn't cheap -- but it's still not a big premium to own shares of a company that billionaire investor Warren Buffett says is "probably the best business I know in the world." Idexx Laboratories Pet healthcare company Idexx Laboratories has given back some gains over the past few years, but its 10-year returns sit at just over 1,000%.
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Some of them have generated life-changing returns for investors, including Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Idexx Laboratories (NASDAQ: IDXX). Apple In 10 years, shares of tech giant Apple have risen by more than 1,000%. That's why, despite being nearly worth $3 trillion, it may still not be too late to buy this behemoth, as Apple could have more growth opportunities to pursue in the future.
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15443.0
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2023-06-08 00:00:00 UTC
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US STOCKS-Futures muted as bond yields rise on rate jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-muted-as-bond-yields-rise-on-rate-jitters
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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 0.01%, S&P 0.06%, Nasdaq 0.09%
June 8 (Reuters) - U.S. stock index futures were largely flat on Thursday as government bond yields hovered near recent highs on worries that major central banks could keep raising interest rates.
The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed lower on Wednesday, with megacap stocks leading declines as U.S. bond yields rose after the Bank of Canada (BoC) surprised markets with an interest rate hike. US/
Microsoft Corp MSFT.O slipped marginally in premarket trading, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O inched up after Wednesday's declines.
The 2-year Treasury yield US2YT=RR, which tends to move in step with short-term rate expectations, rose for a third day to 4.56%, as investors await the Federal Reserve meet next week. US/
"Our view remains that the Fed will pause in June, but leave the door open for a July hike, keeping it data dependent. Eventually we don't think the Fed will hike in July," Jefferies strategist Mohit Kumar said.
"They (BoC) do support our view that inflation would be sticky for longer than what central banks want which would rule out any cuts in 2023."
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, edged up after dropping to a pre-pandemic low of 13.77 on Wednesday.
Traders see a 70% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range in its June 13-14 policy meeting, according to CMEGroup's Fedwatch tool, down from nearly 80% a week ago. They see a 50% chance of a rate hike in July.
The U.S. Labor Department is due to release inflation data on June 13, the first day of the Fed meeting. The numbers are expected to show consumer prices cooled slightly in May but core prices remained sticky.
Initial jobless claims data for the week ended June 3 is due later in the day.
The economically sensitive parts of markets including the Russell 2000 index of small-cap companies .RUT rallied 1.8% to a three-month closing high on Wednesday, as investors rotated out of growth stocks.
The Dow Jones transports index .DJT notched a six-week high, while the KBW Regional Banking index .KRX closed at a more than two-month peak.
At 5:47 a.m. ET, Dow e-minis 1YMcv1 were up 4 points, or 0.01%, S&P 500 e-minis EScv1 were up 2.75 points, or 0.06%, and Nasdaq 100 e-minis NQcv1 were up 13 points, or 0.09%.
Meta Platforms Inc META.O slipped 0.7% after EU industry chief Thierry Breton demanded that the social media giant take immediate action to tackle online child-sex content as its voluntary child protection code seems not to be working.
GameStop Corp shares GME.N slumped 18.4% after billionaire investor Ryan Cohen took over as executive chairman after the video game retailer ousted its CEO and posted a bigger-than-expected quarterly loss.
Lucid Group LCID.O rose 2.3% after the U.S. luxury electric vehicle maker's head of China operations, Zhu Jiang, said the company is preparing to enter the world's largest auto market.
(Reporting by Sruthi Shankar in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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US/ Microsoft Corp MSFT.O slipped marginally in premarket trading, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O inched up after Wednesday's declines. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed lower on Wednesday, with megacap stocks leading declines as U.S. bond yields rose after the Bank of Canada (BoC) surprised markets with an interest rate hike. Meta Platforms Inc META.O slipped 0.7% after EU industry chief Thierry Breton demanded that the social media giant take immediate action to tackle online child-sex content as its voluntary child protection code seems not to be working.
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US/ Microsoft Corp MSFT.O slipped marginally in premarket trading, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O inched up after Wednesday's declines. Futures up: Dow 0.01%, S&P 0.06%, Nasdaq 0.09% June 8 (Reuters) - U.S. stock index futures were largely flat on Thursday as government bond yields hovered near recent highs on worries that major central banks could keep raising interest rates. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed lower on Wednesday, with megacap stocks leading declines as U.S. bond yields rose after the Bank of Canada (BoC) surprised markets with an interest rate hike.
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US/ Microsoft Corp MSFT.O slipped marginally in premarket trading, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O inched up after Wednesday's declines. Futures up: Dow 0.01%, S&P 0.06%, Nasdaq 0.09% June 8 (Reuters) - U.S. stock index futures were largely flat on Thursday as government bond yields hovered near recent highs on worries that major central banks could keep raising interest rates. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed lower on Wednesday, with megacap stocks leading declines as U.S. bond yields rose after the Bank of Canada (BoC) surprised markets with an interest rate hike.
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US/ Microsoft Corp MSFT.O slipped marginally in premarket trading, while Apple Inc AAPL.O and Amazon.com Inc AMZN.O inched up after Wednesday's declines. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed lower on Wednesday, with megacap stocks leading declines as U.S. bond yields rose after the Bank of Canada (BoC) surprised markets with an interest rate hike. US/ "Our view remains that the Fed will pause in June, but leave the door open for a July hike, keeping it data dependent.
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15444.0
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2023-06-08 00:00:00 UTC
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3 Top Metaverse Stocks to Buy in June
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AAPL
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https://www.nasdaq.com/articles/3-top-metaverse-stocks-to-buy-in-june-0
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nan
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nan
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As the PC and mobile markets mature, many growth-oriented investors are looking toward the metaverse as the next big computing platform. The term -- and the concept behind it -- came from Neal Stephenson's 1992 sci-fi bestseller Snow Crash, but it only gained more mainstream attention over the past few years as more advanced virtual reality (VR) and augmented reality (AR) headsets hit the market.
The bulls believe the metaverse will eventually blur the lines between the physical and digital worlds by enhancing real-world environments with digital overlays, virtually transporting people to both imaginary places and digital twins of real-world locations, and enabling people to remotely interact with each other without PCs or smartphones. It could also revolutionize video games by replacing monitors, TVs, consoles, and controllers with mixed-reality headsets.
Image source: Apple.
According to a recent report by Markets and Markets, the metaverse market could grow from $61.8 billion in 2022 to $426.9 billion by 2027 -- a compound annual growth rate (CAGR) of 47.2%. We should take that bullish forecast with a grain of salt, but these three tech giants -- Meta Platforms (NASDAQ: META), Apple (NASDAQ: AAPL), and Unity Software (NYSE: U) -- could profit from the market's secular expansion. Let's see what makes these three stocks potential buys this month.
1. Meta Platforms
In October 2021, Facebook rebranded itself as Meta Platforms to emphasize its plan to evolve from a social media company into a metaverse one. It wants to achieve that transformation by expanding its Reality Labs division, which houses its VR and AR hardware and software, regardless of the near-term costs.
Meta recently said that it sold nearly 20 million Quest headsets over the past four years. But from 2019 to 2022, the Reality Labs unit only generated $6.07 billion in cumulative revenues over those four years while racking up a cumulative operating loss of $35.03 billion. Meta expects the segment's annual operating losses to widen again this year as it launches its new Quest 3 headset this fall and ramps up its production of new AR and VR content.
Those losses are staggering, but Meta remains firmly profitable because its core advertising business (which accounted for 97% of its revenue in 2022) still operates at high margins. That business is also gradually recovering from the user privacy improvements that Apple made to iOS (which disrupted platforms' ability to target ads to people) while countering TikTok's short videos with its own similar Reels.
Meta still enjoys an early-mover advantage in the metaverse market, and the Quest 3's $499 price tag might make it the best option for consumers who don't want to spend thousands of dollars on a VR headset. That could also help tether more of the 3.81 billion people who use at least one of Meta's core apps (Facebook, Messenger, Instagram, and WhatsApp) each month to its metaverse ecosystem.
2. Apple
After years of rumors and speculation, Apple finally unveiled its new Vision Pro mixed-reality headset during its Worldwide Developers Conference on Monday. The Vision Pro is more technologically advanced than Meta's Quest 3, but it's priced accordingly at $3,499. It's scheduled to hit the market in early 2024 and will only initially be sold in the United States.
The Vision Pro's high price tag could limit its appeal, but it could gradually diversify the tech giant's top line away from the iPhone -- which still accounted for 54% of its revenue in its latest quarter. It would also enable Apple to expand its subscription-based Apple TV+, Apple Music, Apple Arcade, and Apple Fitness+ services with AR and VR upgrades.
Apple ended its latest quarter with 975 million paid subscriptions across that ecosystem, which represented 18% growth from a year earlier. By pulling some of those subscribers toward the Vision Pro and its mixed-reality apps, Apple could further strengthen the bonds between its hardware, software, and subscription-based services.
It's well worth remembering that Apple didn't invent the MP3 player, the smartphone, the tablet computer, the smartwatch, or Bluetooth earbuds. But it disrupted all of those markets by studying the mistakes of the early movers, developing more appealing products, and tethering its devices to the rest of its prisoner-taking ecosystem. If the Vision Pro follows that same trajectory, it could eventually add tens of billions of dollars to Apple's annual revenue.
3. Unity Software
Last but not least, Unity is my top pick-and-shovel play on the metaverse market. Its namesake game development engine already powers more than half of the world's mobile, PC, and console games, and many of the most popular VR games -- including Meta's Beat Saber and Population: One -- were created on its platform. That's why it wasn't surprising when Apple recently said it was working with Unity to create new apps for the Vision Pro.
Unity's growth decelerated last year after Apple's privacy-oriented iOS update disrupted its ability to target the ads for its games. However, it bounced back from that setback by rewriting its own algorithms and merging with adtech company ironSource. As a result, it expects the growth of both its Grow (advertising and monetization) and Create (game development engine and non-gaming tools) units to accelerate again this year. Unity is certainly a more speculative play than Meta or Apple, but its revenue could surge as sales of new headsets drive more developers to create more metaverse apps.
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. Leo Sun has positions in Apple, Meta Platforms, and Unity Software. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Unity Software. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We should take that bullish forecast with a grain of salt, but these three tech giants -- Meta Platforms (NASDAQ: META), Apple (NASDAQ: AAPL), and Unity Software (NYSE: U) -- could profit from the market's secular expansion. That business is also gradually recovering from the user privacy improvements that Apple made to iOS (which disrupted platforms' ability to target ads to people) while countering TikTok's short videos with its own similar Reels. Meta still enjoys an early-mover advantage in the metaverse market, and the Quest 3's $499 price tag might make it the best option for consumers who don't want to spend thousands of dollars on a VR headset.
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We should take that bullish forecast with a grain of salt, but these three tech giants -- Meta Platforms (NASDAQ: META), Apple (NASDAQ: AAPL), and Unity Software (NYSE: U) -- could profit from the market's secular expansion. The term -- and the concept behind it -- came from Neal Stephenson's 1992 sci-fi bestseller Snow Crash, but it only gained more mainstream attention over the past few years as more advanced virtual reality (VR) and augmented reality (AR) headsets hit the market. It would also enable Apple to expand its subscription-based Apple TV+, Apple Music, Apple Arcade, and Apple Fitness+ services with AR and VR upgrades.
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We should take that bullish forecast with a grain of salt, but these three tech giants -- Meta Platforms (NASDAQ: META), Apple (NASDAQ: AAPL), and Unity Software (NYSE: U) -- could profit from the market's secular expansion. It would also enable Apple to expand its subscription-based Apple TV+, Apple Music, Apple Arcade, and Apple Fitness+ services with AR and VR upgrades. 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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We should take that bullish forecast with a grain of salt, but these three tech giants -- Meta Platforms (NASDAQ: META), Apple (NASDAQ: AAPL), and Unity Software (NYSE: U) -- could profit from the market's secular expansion. Meta recently said that it sold nearly 20 million Quest headsets over the past four years. Unity's growth decelerated last year after Apple's privacy-oriented iOS update disrupted its ability to target the ads for its games.
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15445.0
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2023-06-08 00:00:00 UTC
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Better Buy: Apple vs. Amazon
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-vs.-amazon-2
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nan
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nan
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After an economically challenging 2022, the stock market has been on a bull run this year. The Nasdaq Composite index has climbed 26% since Jan. 1 as easing inflation and technological advances have made investors bullish. However, many analysts believe the current optimism won't last forever, and the market will start trending down in the coming months as earnings slip from lingering macroeconomic hurdles.
As a result, it's a good idea to use this time to invest in solid growth stocks that are likely to offer gains over the long term, no matter the economic climate. As the leaders of markets such as consumer electronics and e-commerce, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are excellent options to fortify your portfolio in uncertain times.
However, if you are only looking to add one stock right now, you'll need to know the better option. So, let's assess whether Apple or Amazon stock is the better buy.
Apple
Apple is a king in the consumer electronics market. The company has proved time and time again its ability to take existing technology and present it in a way that sends user adoption skyrocketing. Apple has done just this with smartphones, Bluetooth headphones, tablets, and smartwatches, achieving a leading market share in each of these sectors. The iPhone maker's dominance in consumer tech has seen its stock soar 272% in the last five years.
As a result, the company's debut of a totally new product category at its Worldwide Developer Conference on June 5 makes for an exciting time to invest. Apple unveiled its Vision Pro virtual reality/augmented reality (VR/AR) headset at the event. The new device is essentially an entire computer in headset form, meaning it doesn't need to be paired to an external device like a smartphone or computer.
The Vision Pro has taken massive leaps in VR/AR, removing the need for controllers by using advanced eye tracking and hand gestures. People can use the headset for nearly any computing task, from word processing to browsing the web, video editing, FaceTime, and much more. Additionally, the Vision Pro provides immersive entertainment experiences for everything from movies to gaming, watching sports, and more.
While many tech enthusiasts are excited about the new product, Wall Street seems unsure what to make of it primarily because of its eye-watering price of about $3,500. The high price point means the Vision Pro is not accessible to the average consumer just yet. As a result, an investment in Apple is for what this product can become a few generations down the line when cheaper options become available to the masses.
However, considering the AR market is projected to hit $461 billion at a compound annual growth rate of 42% through 2030, Apple is well-positioned to profit substantially from the expanding industry.
Amazon
Amazon shares have risen 49% year to date as its e-commerce business has shown signs of rebounding after significant losses last year. The company's e-commerce segments reported a combined $10.6 billion in operating losses in fiscal 2022 as economic declines curbed consumer spending. However, investors were able to breathe a sigh of relief in Amazon's first quarter of 2023, with its North American segment returning to profitability and its international retail business reporting a slight improvement.
The retail giant looks to be back on a growth path as inflation eases, and it has more to gain than most as the situation improves. Amazon holds a leading 38% market share in e-commerce, which could lead to a massive boost in revenue as the market recovers. Meanwhile, improving interest rates will likely allow businesses to increase cloud spending, bolstering the company's cloud platform, Amazon Web Services.
Amazon's potential is evident in its average 12-month price target of $138, which projects stock growth of 10%. The figure aligns with the company's five-year stock gains of 48%, making Amazon an attractive long-term option.
Is Apple or Amazon stock the better buy?
The choice between Amazon or Apple stock comes down to which is the more reliable buy ahead of potential economic challenges. In this case, Apple is the clear winner. Amid a sell-off in 2022, Amazon's stock fell 50% while Apple's declined a more moderate 27%. The maker of MacBooks and iPhones is home to a more resilient business thanks to consistent product demand.
Moreover, Apple's price-to-earnings ratio of 30 compared to Amazon's 299 makes its stock a far bigger bargain. So if you're looking for value and reliability in the retail sector, Apple's stock is an attractive option this month.
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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As the leaders of markets such as consumer electronics and e-commerce, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are excellent options to fortify your portfolio in uncertain times. However, many analysts believe the current optimism won't last forever, and the market will start trending down in the coming months as earnings slip from lingering macroeconomic hurdles. As a result, it's a good idea to use this time to invest in solid growth stocks that are likely to offer gains over the long term, no matter the economic climate.
|
As the leaders of markets such as consumer electronics and e-commerce, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are excellent options to fortify your portfolio in uncertain times. The company's e-commerce segments reported a combined $10.6 billion in operating losses in fiscal 2022 as economic declines curbed consumer spending. So if you're looking for value and reliability in the retail sector, Apple's stock is an attractive option this month.
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As the leaders of markets such as consumer electronics and e-commerce, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are excellent options to fortify your portfolio in uncertain times. Is Apple or Amazon stock the better buy? 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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As the leaders of markets such as consumer electronics and e-commerce, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are excellent options to fortify your portfolio in uncertain times. The iPhone maker's dominance in consumer tech has seen its stock soar 272% in the last five years. As a result, the company's debut of a totally new product category at its Worldwide Developer Conference on June 5 makes for an exciting time to invest.
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15446.0
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2023-06-08 00:00:00 UTC
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2 Unbelievable Growth Stocks to Scoop Up Right Now
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AAPL
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https://www.nasdaq.com/articles/2-unbelievable-growth-stocks-to-scoop-up-right-now
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nan
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nan
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The market has already delivered its fair share of great and not-so-great days in 2023, but wonderful businesses are still showing investors that they have what it takes to win over the long run. It's important to remember that the share price of any given stock reflects how the market values it in a given moment. Share price can tell you a lot, but it doesn't tell you everything.
Looking beyond share price at the underlying business and its core financials is how you discern whether you're looking at a great company with a clear path to growth ahead. If you're seeking two quality businesses that continue to deliver growth and profitability even in the current economy, you don't have to search far.
Here are two household names that may be too good to pass up right now.
1. Airbnb
Airbnb (NASDAQ: ABNB) has made a name for itself in the highly competitive yet fragmented travel industry, an effort that was by no means guaranteed success. However, in the roughly 15 years since Airbnb was founded as a small bed and breakfast in a living room in San Francisco, the company has evolved to such a scale that its platform captures roughly 20% of the entire vacation rental industry globally.
Of course, Airbnbs today are used for far more than just short-term trips or leisure travel. People are staying in Airbnbs for longer periods and even living in these accommodations in some cases. As of the first quarter of 2023, guest reservations generated more than $20 billion in gross booking value. Almost half of all gross bookings were for stays of at least seven nights, while 18% of stays were long-term stays of 28 days or longer.
That long-term stay figure was a slight deceleration from prior quarters, which was something management had predicted given the overall recovery in short-term stays now that borders have reopened after pandemic lockdowns. CEO Brian Chesky added some context to these developments in the company's first quarter earnings call:
I do think there is some -- little bit of a post-pandemic equilibrium that you're starting to see, and we're also seeing a mix shift because cross-border urban nights are now up. That being said, I remain extremely bullish on long-term stays. I think this is going to be one of the big growth opportunities for Airbnb over the next five years. And the reason why is because people are permanently more flexible.
Chesky also noted that one of the most prominent comments from users on the platform was about the cost of the long-term stays. The company has made more than a dozen upgrades to this travel segment in response, such as an automatic fee reduction for long-term bookings of more than three months. Guests can use buy now, pay later service Klarna when making reservations to reduce the upfront cost of a wide range of stay types. Airbnb also just launched an initiative called Airbnb Rooms, offering a new cost-effective category of accommodations where more than 80% of stays are less than $100 per night.
Travel patterns have changed from the pre-pandemic era. Airbnb is continuing to demonstrate that it can efficiently (and profitably) adapt its business to cater to the changing needs of all kinds of travelers. Its cost-effective business structure remains remarkably asset-light because it connects travelers with hosts without needing to own or manage the actual properties. Investors might want to consider even a modest position in this resilient business.
2. Apple
Apple (NASDAQ: AAPL) is hardly a new name to readers, but sometimes it's those tried-and-true businesses that investors will keep coming back to again and again. The tech behemoth, like other companies in its industry, is facing a challenging time as consumer spending patterns shift from goods to experiences and fears of a recession are still a potent reality.
Although Apple's business covers a wide range of products and services, it still generates the lion's share of sales from its iPhones. Still, in the company's second quarter of its fiscal 2023, ended April 1, the company set a new record for iPhone sales, even as the difficulties of the current operating environment pushed overall net sales down slightly from one year ago.
Another segment that continues to account for more and more of Apple's top line is its non-hardware services business. This includes subscriptions such as Apple Music and Apple TV+. It also covers products like Apple Pay, Apple Card, and even its newer buy now, pay later service.
In the quarter, Apple brought in total net sales of $95 billion and net income of $24 billion. Of that total, $51 billion came from iPhone sales and $21 billion from its services business. Considering that Apple's services business is its most asset-light segment (its cost of sales was a mere $6 billion in the quarter compared to the $47 billion incurred from the products businesses), shareholders should watch the consistent headway this segment is making as the company's second-largest driver of sales.
Apple is also making progress with its much-awaited Vision Pro mixed-reality headset, which just debuted at the Worldwide Developers Conference and is expected to be released next year. The headset is expected to cost $3,499 a unit. It's likely to span a range of personal as well as professional use cases, integrating with other Apple products as well as a range of third-party apps.
Apple just boosted its dividend by 4%, its 11th consecutive year of increasing its payout. It also returned a whopping $23 billion and some change to shareholders in the form of dividends in the March quarter. Even though the stock's dividend yield is less than 1% at the time of this writing, Apple's low payout ratio and consistent payout increases have made it popular with many income investors. Apple continues to demonstrate its relevancy and staying power with consumers amid the new waves of the digital age. For long-term shareholders, this is a business you can buy and hold on to forever.
Find out why Airbnb is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Airbnb is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of June 5, 2023
Rachel Warren has positions in Apple. The Motley Fool has positions in and recommends Airbnb and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is hardly a new name to readers, but sometimes it's those tried-and-true businesses that investors will keep coming back to again and again. The market has already delivered its fair share of great and not-so-great days in 2023, but wonderful businesses are still showing investors that they have what it takes to win over the long run. CEO Brian Chesky added some context to these developments in the company's first quarter earnings call: I do think there is some -- little bit of a post-pandemic equilibrium that you're starting to see, and we're also seeing a mix shift because cross-border urban nights are now up.
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Apple Apple (NASDAQ: AAPL) is hardly a new name to readers, but sometimes it's those tried-and-true businesses that investors will keep coming back to again and again. Although Apple's business covers a wide range of products and services, it still generates the lion's share of sales from its iPhones. In the quarter, Apple brought in total net sales of $95 billion and net income of $24 billion.
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Apple Apple (NASDAQ: AAPL) is hardly a new name to readers, but sometimes it's those tried-and-true businesses that investors will keep coming back to again and again. Although Apple's business covers a wide range of products and services, it still generates the lion's share of sales from its iPhones. Considering that Apple's services business is its most asset-light segment (its cost of sales was a mere $6 billion in the quarter compared to the $47 billion incurred from the products businesses), shareholders should watch the consistent headway this segment is making as the company's second-largest driver of sales.
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Apple Apple (NASDAQ: AAPL) is hardly a new name to readers, but sometimes it's those tried-and-true businesses that investors will keep coming back to again and again. Almost half of all gross bookings were for stays of at least seven nights, while 18% of stays were long-term stays of 28 days or longer. Although Apple's business covers a wide range of products and services, it still generates the lion's share of sales from its iPhones.
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15447.0
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2023-06-08 00:00:00 UTC
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2 Virtual Reality Stocks to Invest in
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AAPL
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https://www.nasdaq.com/articles/2-virtual-reality-stocks-to-invest-in
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nan
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nan
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Recent technological advances shed light on virtual reality (VR) in recent months, making it an industry worth keeping a close eye on. Meta Platforms and Sony have dominated the VR space with their respective headsets for years.
But despite the stature of these companies, consumer adoption has been slow, with gamers seemingly the only group of shoppers with a strong interest in the technology. Meta has pivoted its business almost completely toward VR development and the metaverse. Yet, the company has had little success there.
However, the sector could receive a massive boost now that Apple (NASDAQ: AAPL) entered the picture with its recently announced VR/AR headset, the Vision Pro. The company's history of success in new markets is immensely promising for the potential of its new headset and could spark a boom in the industry from the competition.
Tech companies looking to expand their VR departments will likely turn to chipmakers like Advanced Micro Devices (NASDAQ: AMD), making it another great stock to keep on your radar.
Here's a look at each of these virtual reality stocks.
1. Apple
On June 5, Apple unveiled the Vision Pro at its Worldwide Developer Conference. The headset marked the debut of a new product category for the company, something that hasn't happened since the release of the Apple Watch in 2016.
The Vision Pro has taken a massive step forward in VR, with features never before seen in competing headsets. The device is a full-fledged computer in a headset casing, granting it all the productivity and entertainment capabilities of a MacBook. Meanwhile, it has removed the need for controllers required in headsets from Sony and Meta by utilizing eye tracking and hand gestures.
While Apple has given a glimpse of how VR can be incorporated into one's everyday life, the Vision Pro's starting price of $3,500 makes it challenging to get the headset into the hands of the average consumer. As a result, an investment in Apple is for its long-term potential in the sector. Future iterations of the Vision Pro will likely offer more palatable pricing, a strategy the company followed with past first-generation products.
For instance, the base model Apple Watch's launch price started between $349 to $399, depending on size. These figures would equate to $430 and $490 today. Meanwhile, today's lowest-priced model comes in at $249 for the Apple Watch SE. The Vision Pro could see a similar trajectory regarding its pricing and product variations.
The VR market is expected to hit a value of $227 billion by 2029, expanding at a compound annual growth rate of 45%, according to Fortune Business Insights. Apple's dominance in consumer tech and brand loyalty strengthens its outlook in VR and makes its stock an attractive buy as the industry blossoms.
2. Advanced Micro Devices
Apple's Vision Pro has upped the game in VR, using the same chip as the current MacBook Air. Comparatively, Meta's Oculus Quest Pro headset uses Qualcomm's Snapdragon XR2 chip, based on the Snapdragon 865 used in premium smartphones in 2020.
As a result, Apple has essentially made its headset a full-on computer, while its biggest competitor's equivalent product has the power of a three-year-old smartphone. The discrepancy will likely motivate companies to up their game, as Apple has set a new standard for the industry.
Cue Advanced Micro Devices. AMD is a leader in custom chips, powering a number of devices across tech. The company is the exclusive supplier of graphics and processing power in Sony's PlayStation and Microsoft's Xbox Series X|S game consoles, which has boosted its gaming segment in recent years. The lucrative partnerships led AMD to provide custom chips to a growing number of handheld PC gaming devices as well, as the company becomes the go-to for such hardware.
VR headset makers like Meta will be on the hunt for more powerful chips for the next generation of their devices if they want to compete with Apple, and AMD is well-positioned as the clear choice. The company's chips are capable of running intensive VR and AR workloads, indicating it could significantly profit from the market's development.
Moreover, AMD's price/earnings-to-growth ratio of 0.2 strengthens the argument for its stock. The figure suggests that projected growth is not priced into its shares, making it a bargain compared to its potential. And with that, AMD stock is an excellent option to invest in the swiftly growing VR market.
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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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, and Qualcomm. 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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However, the sector could receive a massive boost now that Apple (NASDAQ: AAPL) entered the picture with its recently announced VR/AR headset, the Vision Pro. Tech companies looking to expand their VR departments will likely turn to chipmakers like Advanced Micro Devices (NASDAQ: AMD), making it another great stock to keep on your radar. While Apple has given a glimpse of how VR can be incorporated into one's everyday life, the Vision Pro's starting price of $3,500 makes it challenging to get the headset into the hands of the average consumer.
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However, the sector could receive a massive boost now that Apple (NASDAQ: AAPL) entered the picture with its recently announced VR/AR headset, the Vision Pro. For instance, the base model Apple Watch's launch price started between $349 to $399, depending on size. Comparatively, Meta's Oculus Quest Pro headset uses Qualcomm's Snapdragon XR2 chip, based on the Snapdragon 865 used in premium smartphones in 2020.
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However, the sector could receive a massive boost now that Apple (NASDAQ: AAPL) entered the picture with its recently announced VR/AR headset, the Vision Pro. Tech companies looking to expand their VR departments will likely turn to chipmakers like Advanced Micro Devices (NASDAQ: AMD), making it another great stock to keep on your radar. Advanced Micro Devices Apple's Vision Pro has upped the game in VR, using the same chip as the current MacBook Air.
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However, the sector could receive a massive boost now that Apple (NASDAQ: AAPL) entered the picture with its recently announced VR/AR headset, the Vision Pro. While Apple has given a glimpse of how VR can be incorporated into one's everyday life, the Vision Pro's starting price of $3,500 makes it challenging to get the headset into the hands of the average consumer. Advanced Micro Devices Apple's Vision Pro has upped the game in VR, using the same chip as the current MacBook Air.
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15448.0
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2023-06-08 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-0
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our 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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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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15449.0
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2023-06-08 00:00:00 UTC
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2 Large-Cap Tech Stocks Wall Street Billionaires Are Piling Into and 1 They're Avoiding Like the Plague
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AAPL
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https://www.nasdaq.com/articles/2-large-cap-tech-stocks-wall-street-billionaires-are-piling-into-and-1-theyre-avoiding
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nan
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nan
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In case you haven't noticed, data releases are occurring all the time on Wall Street. From earnings reports to economic data, it's easy for investors to be overwhelmed and miss something important. A little over three weeks ago, there's a decent chance you missed one of those important announcements.
May 15 marked deadline for institutional money managers with at least $100 million in assets under management to file Form 13F with the Securities and Exchange Commission. A 13F provides a snapshot of what Wall Street's smartest and most-successful fund managers bought and sold in the most recent quarter (in this instance, the March-ended quarter).
Image source: Getty Images.
As should come as no surprise, tech stocks were very much in focus -- especially among billionaire investors. Based on 13Fs, Wall Street billionaires piled into two large-cap tech stocks and avoided another widely held tech innovator like the plague during the first quarter.
Large-cap tech stock No. 1 billionaire investors piled into: Intel
The first big-name tech stock that Wall Street billionaires couldn't stop buying in the March-ended quarter is underperforming semiconductor company Intel (NASDAQ: INTC). All told, five billionaires were avid buyers, including:
Ken Griffin of Citadel Advisors
Steven Cohen of Point72 Asset Management
Israel Englander of Millennium Management
Jim Simons of Renaissance Technologies
Jeff Yass of Susquehanna International
Keeping this same order intact, these billionaires respectively purchased approximately 13.13 million shares, 10.4 million shares, 7.69 million shares, 1.99 million shares, and 1.2 million shares of Intel stock.
What makes these purchases so intriguing is that they occurred during Intel's worst quarter in its storied history. The company lost $2.76 billion and saw revenue for its core client computing group and data center and AI (artificial intelligence) segments fall by 38% and 39%, respectively, from the prior-year period. Normally, such poor performance would chase prospective investors away. However, there looks to be genuine value here for those willing to be patient.
For example, Intel is currently spending $20 billion to construct two chip fabrication plants in Ohio, which are slated to open sometime next year. It's also in the process of acquiring Tower Semiconductor. When all of these actions are complete, Intel will be on track to potentially become the second-largest foundry service provider by 2030. Providing domestic businesses with an alternative to overseas chip fab should help Intel regain some of its luster.
Something else to consider is that Intel's market share losses to chief rival Advanced Micro Devices aren't game-changing. Intel still controls the lion's share of central processing unit sales in personal computers and data centers. That's not going to change anytime soon, which is good news for Intel's top cash-flow-generating segments.
Furthermore, Intel has a beast on its hands with autonomous driving solutions company Mobileye Global (NASDAQ: MBLY). Intel acquired Mobileye six years ago for a little north of $15 billion. When it was spun-out in 2022, Intel retained a majority of the outstanding shares. Mobileye closed this past week with a market cap of nearly $35 billion and the company's sales are rapidly rising.
Large-cap tech stock No. 2 billionaire investors piled into: Palo Alto Networks
A second large-cap tech stock that select Wall Street billionaires absolutely piled into during the first quarter is cybersecurity company Palo Alto Networks (NASDAQ: PANW). Form 13Fs show there were three big buyers:
Steven Cohen at Point72 Asset Management
Ken Griffin at Citadel Advisors
Chase Coleman at Tiger Global Management
During the first quarter, Cohen, Griffin, and Coleman oversaw the respective purchase of roughly 571,400 shares, 355,100 shares, and 257,700 shares of Palo Alto Networks' stock.
Unlike the buying activity with Intel, which doesn't make sense unless you do some digging, it's crystal clear why billionaires are lapping up shares of Palo Alto. Next-generation security annual recurring revenue surged 60% in the latest quarter from the prior-year period, with total remaining performance obligations (i.e., the company's backlog) rising 35% to $9.2 billion. In short, the company is firing on all cylinders.
Ever since management made the decision nearly five years ago to shift the company's focus to cloud-based software-as-a-service (SaaS) subscriptions, Palo Alto has been virtually unstoppable. These higher-margin subscriptions now account for about 79% of net sales. More importantly, SaaS is helping to court larger customers that are more willing to add to their initial purchase. Add-on sales with its next-gen solutions are critical to boosting the company's subscription gross margin.
As I've stated in the past, Palo Alto Networks has also done a phenomenal job of incorporating inorganic growth into the mix. Bolt-on acquisitions have given the company a means to expand its product offerings and appeal to a broader swath of businesses.
Lastly, cybersecurity can be considered a basic necessity service. Even though tech stocks tend to be cyclical, businesses are migrating their data online and into the cloud at a faster pace than ever before. Since hackers don't take time off from trying to steal sensitive information, the need for cybersecurity solutions tends to be a constant in any economic environment.
Image source: Getty Images.
The large-cap tech stock billionaires wanted nothing to do with: Apple
However, it wasn't only buying on billionaires' minds during the first quarter. America's largest public company by market cap, Apple (NASDAQ: AAPL), was given the heave-ho by a number of successful fund managers, including:
Ken Fisher of Fisher Asset Management
Jim Simons of Renaissance Technologies
Ken Griffin of Citadel Advisors
Israel Englander of Millennium Management
Jeff Yass of Susquehanna International
In the order listed above, these five billionaires respectively dumped 7.52 million shares, 7.09 million shares, 5.12 million shares, 2.22 million shares, and 1.1 million shares of Apple stock.
If you're wondering why billionaires are avoiding Apple like the plague, it may have to do with the company's valuation. Between the start of 2013 and end of 2018, you could nab shares of Apple for 10 to 15 times earnings. Best of all, it was consistently growing by a low double-digit rate.
Today, you'll be paying about 30 times Wall Street's consensus earnings for Apple in fiscal 2023 (Apple's fiscal year ends in late September). While some investors might argue that a multiple of 30 isn't egregious for an industry leader like Apple, consider that its sales are expected to decline by nearly 3% in fiscal 2023, even with historically high inflation as a tailwind. Further, rapidly rising interest rates have removed access to cheap capital, which has the potential to slow Apple's pace of stock buybacks.
The other possible knock with Apple is that it simply didn't do enough with iPhone 14 to differentiate it from previous 5G-capable models. Make no mistake, sales of the iPhone still dominate the U.S. smartphone market. However, there had been talk about expanding iPhone production in September of last year, which ultimately fell through after iPhone 14's relatively subdued launch.
On the other hand, Apple is still a cash cow. It generated almost $110 billion in operating cash flow over the trailing-12-month period, and has repurchased a jaw-dropping $586 billion worth of its common stock over the past 10 years.
As a long-term business, Apple is rock-solid. But from an investment standpoint right now, it's difficult to justify its current valuation, especially with sales and profits contracting.
10 stocks we like better than Intel
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*Stock Advisor returns as of May 30, 2023
Sean Williams has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Palo Alto Networks. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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America's largest public company by market cap, Apple (NASDAQ: AAPL), was given the heave-ho by a number of successful fund managers, including: Ken Fisher of Fisher Asset Management Jim Simons of Renaissance Technologies Ken Griffin of Citadel Advisors Israel Englander of Millennium Management Jeff Yass of Susquehanna International In the order listed above, these five billionaires respectively dumped 7.52 million shares, 7.09 million shares, 5.12 million shares, 2.22 million shares, and 1.1 million shares of Apple stock. The company lost $2.76 billion and saw revenue for its core client computing group and data center and AI (artificial intelligence) segments fall by 38% and 39%, respectively, from the prior-year period. Next-generation security annual recurring revenue surged 60% in the latest quarter from the prior-year period, with total remaining performance obligations (i.e., the company's backlog) rising 35% to $9.2 billion.
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America's largest public company by market cap, Apple (NASDAQ: AAPL), was given the heave-ho by a number of successful fund managers, including: Ken Fisher of Fisher Asset Management Jim Simons of Renaissance Technologies Ken Griffin of Citadel Advisors Israel Englander of Millennium Management Jeff Yass of Susquehanna International In the order listed above, these five billionaires respectively dumped 7.52 million shares, 7.09 million shares, 5.12 million shares, 2.22 million shares, and 1.1 million shares of Apple stock. All told, five billionaires were avid buyers, including: Ken Griffin of Citadel Advisors Steven Cohen of Point72 Asset Management Israel Englander of Millennium Management Jim Simons of Renaissance Technologies Jeff Yass of Susquehanna International Keeping this same order intact, these billionaires respectively purchased approximately 13.13 million shares, 10.4 million shares, 7.69 million shares, 1.99 million shares, and 1.2 million shares of Intel stock. Form 13Fs show there were three big buyers: Steven Cohen at Point72 Asset Management Ken Griffin at Citadel Advisors Chase Coleman at Tiger Global Management During the first quarter, Cohen, Griffin, and Coleman oversaw the respective purchase of roughly 571,400 shares, 355,100 shares, and 257,700 shares of Palo Alto Networks' stock.
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America's largest public company by market cap, Apple (NASDAQ: AAPL), was given the heave-ho by a number of successful fund managers, including: Ken Fisher of Fisher Asset Management Jim Simons of Renaissance Technologies Ken Griffin of Citadel Advisors Israel Englander of Millennium Management Jeff Yass of Susquehanna International In the order listed above, these five billionaires respectively dumped 7.52 million shares, 7.09 million shares, 5.12 million shares, 2.22 million shares, and 1.1 million shares of Apple stock. 1 billionaire investors piled into: Intel The first big-name tech stock that Wall Street billionaires couldn't stop buying in the March-ended quarter is underperforming semiconductor company Intel (NASDAQ: INTC). All told, five billionaires were avid buyers, including: Ken Griffin of Citadel Advisors Steven Cohen of Point72 Asset Management Israel Englander of Millennium Management Jim Simons of Renaissance Technologies Jeff Yass of Susquehanna International Keeping this same order intact, these billionaires respectively purchased approximately 13.13 million shares, 10.4 million shares, 7.69 million shares, 1.99 million shares, and 1.2 million shares of Intel stock.
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America's largest public company by market cap, Apple (NASDAQ: AAPL), was given the heave-ho by a number of successful fund managers, including: Ken Fisher of Fisher Asset Management Jim Simons of Renaissance Technologies Ken Griffin of Citadel Advisors Israel Englander of Millennium Management Jeff Yass of Susquehanna International In the order listed above, these five billionaires respectively dumped 7.52 million shares, 7.09 million shares, 5.12 million shares, 2.22 million shares, and 1.1 million shares of Apple stock. 1 billionaire investors piled into: Intel The first big-name tech stock that Wall Street billionaires couldn't stop buying in the March-ended quarter is underperforming semiconductor company Intel (NASDAQ: INTC). 2 billionaire investors piled into: Palo Alto Networks A second large-cap tech stock that select Wall Street billionaires absolutely piled into during the first quarter is cybersecurity company Palo Alto Networks (NASDAQ: PANW).
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15450.0
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2023-06-08 00:00:00 UTC
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Tim Cook Says Apple Is Looking at ChatGPT Closely -- But He Also Has These 3 Glaring Concerns
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AAPL
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https://www.nasdaq.com/articles/tim-cook-says-apple-is-looking-at-chatgpt-closely-but-he-also-has-these-3-glaring-concerns
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nan
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nan
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After the release of the generative artificial intelligence chatbox ChatGPT, it was basically a given that most large tech companies would be looking to integrate the technology into their business. Being one of the largest consumer tech companies in the world, Apple is certainly no exception.
Apple's CEO Tim Cook said that he recently tried ChatGPT and thinks there is great potential and that the company is looking at the technology closely. But he also has his concerns, as do many prominent figures in the tech industry.
Recently, a number of prominent AI scientists and other notable figures signed a one-sentence statement that said: "Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war." While I didn't see Cook on that list, here are three of his glaring concerns about ChatGPT.
Image source: Getty Images.
1. Bias
One thing that Cook and others are concerned about is bias. While Cook didn't outright say it, a big concern among ChatGPT critics has been political bias or the chatbox answering questions and creating content that adheres to or favors the political beliefs of the people that created the technology.
For instance, so far, many have claimed that ChatGPT tends to lean left on the political spectrum. The Brookings Institution conducted several experiments and found this to be largely true, although also noted that ChatGPT could give different answers to the same questions, and answers can certainly vary based on how questions are prompted.
2. Misinformation
With the internet such a big part of the world, misinformation and fake news have become big problems for society to grapple with. Where things get murky is when people and companies try to prevent misinformation without taking away free speech. But ChatGPT creates a whole new avenue for misinformation.
The NewsGuard organization, which tracks misinformation online and grades news sites on their credibility, found that generative AI tools are being used to create fake news websites that can pump out hundreds of articles a day. Furthermore, an analysis conducted by NewsGuard discovered that a version of ChatGPT in January proved to be ineffective at countering false claims. NewsGuard "tempted" ChatGPT with 100 false narratives, and ChatGPT delivered incorrect claims about important news topics 80% of the time.
3. Not being able to keep up
Generative AI technology like ChatGPT is obviously very powerful and can adapt very quickly because it essentially gets better and more proficient as it collects more data. Cook thinks this could be a problem when it comes to regulation, which can take years to implement in many cases.
"If you look down the road, then it's so powerful that companies have to employ their own ethical decisions," said Cook. "Regulation will have a difficult time staying even with the progress on this because it's moving so quickly. So, I think it's incumbent on companies as well to regulate themselves."
In April, the National Telecommunications and Information Administration (NTIA), a division of the U.S. Commerce Department focusing on telecommunications and information policy, solicited input on how regulation could be used to prove "that AI systems are legal, effective, ethical, safe, and otherwise trustworthy."
In addition, both Democrat and Republican lawmakers seem open to the idea of creating a new agency to regulate AI and protect consumers from the potential harm that AI can cause.
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Bram Berkowitz 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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After the release of the generative artificial intelligence chatbox ChatGPT, it was basically a given that most large tech companies would be looking to integrate the technology into their business. Apple's CEO Tim Cook said that he recently tried ChatGPT and thinks there is great potential and that the company is looking at the technology closely. Furthermore, an analysis conducted by NewsGuard discovered that a version of ChatGPT in January proved to be ineffective at countering false claims.
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While Cook didn't outright say it, a big concern among ChatGPT critics has been political bias or the chatbox answering questions and creating content that adheres to or favors the political beliefs of the people that created the technology. Misinformation With the internet such a big part of the world, misinformation and fake news have become big problems for society to grapple with. 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 CEO Tim Cook said that he recently tried ChatGPT and thinks there is great potential and that the company is looking at the technology closely. While Cook didn't outright say it, a big concern among ChatGPT critics has been political bias or the chatbox answering questions and creating content that adheres to or favors the political beliefs of the people that created the technology. See the 10 stocks Stock Advisor returns as of June 5, 2023 Bram Berkowitz has no position in any of the stocks mentioned.
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But he also has his concerns, as do many prominent figures in the tech industry. While Cook didn't outright say it, a big concern among ChatGPT critics has been political bias or the chatbox answering questions and creating content that adheres to or favors the political beliefs of the people that created the technology. So, I think it's incumbent on companies as well to regulate themselves."
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15451.0
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2023-06-08 00:00:00 UTC
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The Sneaky Reason Vision Pro Could be Huge for Apple
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AAPL
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https://www.nasdaq.com/articles/the-sneaky-reason-vision-pro-could-be-huge-for-apple
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nan
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nan
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Shares of Apple (NASDAQ: AAPL) approached an all-time high when the Vision Pro headset was announced. With a $3,500 price tag, this ultrapremium product is a hard sell for most people, but it could be sneakily important to Apple's future. In this video, Motley Fool contributors Jason Hall and Jeff Santoro discuss the potential impact of Vision Pro on Apple's business, and whether it makes the stock a buy right now.
*Stock prices used were from the afternoon of June 5, 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. Jason Hall has no position in any of the stocks mentioned. Jeff Santoro has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy. Jason Hall 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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Shares of Apple (NASDAQ: AAPL) approached an all-time high when the Vision Pro headset was announced. With a $3,500 price tag, this ultrapremium product is a hard sell for most people, but it could be sneakily important to Apple's future. In this video, Motley Fool contributors Jason Hall and Jeff Santoro discuss the potential impact of Vision Pro on Apple's business, and whether it makes the stock a buy right now.
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Shares of Apple (NASDAQ: AAPL) approached an all-time high when the Vision Pro headset was announced. In this video, Motley Fool contributors Jason Hall and Jeff Santoro discuss the potential impact of Vision Pro on Apple's business, and whether it makes the stock a buy right now. 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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Shares of Apple (NASDAQ: AAPL) approached an all-time high when the Vision Pro headset was announced. In this video, Motley Fool contributors Jason Hall and Jeff Santoro discuss the potential impact of Vision Pro on Apple's business, and whether it makes the stock a buy right now. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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Shares of Apple (NASDAQ: AAPL) approached an all-time high when the Vision Pro headset was announced. In this video, Motley Fool contributors Jason Hall and Jeff Santoro discuss the potential impact of Vision Pro on Apple's business, and whether it makes the stock a buy right now. That's right -- they think these 10 stocks are even better buys.
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15452.0
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2023-06-08 00:00:00 UTC
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Did Apple Just Change the Game?
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AAPL
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https://www.nasdaq.com/articles/did-apple-just-change-the-game
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nan
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nan
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Has the metaverse finally arrived? Wait, are we still using that term?
With a spectacular list of failures over the years, it's logical to have a heavy dose of skepticism for augmented and virtual reality (AR and VR) products. From Google Glass to Magic Leap to Meta's Oculus division, tens of billions of dollars have gone into building computing goggles, with minimal returns to show for it. After Facebook changed its name to Meta (NASDAQ: META) in 2021 and said it was investing at least $10 billion a year into building AR and VR products, industry hype went into overdrive and the term "metaverse" became a household name.
But as we sit here in 2023, barely anyone uses Meta Oculus devices, Microsoft and Alphabet have paired back their research in these fields, and the term metaverse rarely gets brought up by public company executives.
But where all these other companies have failed, Apple (NASDAQ: AAPL) thinks it can succeed. Here's how the iPhone maker plans to disrupt the computing market yet again.
Apple's "Vision" for the future
Apple revealed its Vision Pro augmented reality device to the world this week, which looks like sleek skiing or snorkeling goggles. The device is mixed reality, meaning you can block out all vision to the outside world (VR) or see digital images on top of the real world (AR).
Unlike other computing goggles, the Vision Pro does not have physical controllers, but instead lets you control the device with your eyes, hands, and voice. The actual computer will have a 4k display for each eye, 12 cameras, and five sensors to help users seamlessly operate the system.
There are a lot of other features we don't need to get into, but suffice it to say Apple is releasing a piece of extremely advanced technology with this new Vision Pro concept.
All these features mean the device is not going to be cheap. As of now, Apple plans to launch the Vision Pro in 2024 at a price point of $3,500, which is much more expensive than the Oculus devices Meta sells. This indicates that -- at least with its first mixed-reality device -- Apple is going for a niche audience (software developers, technology enthusiasts, etc.) that are willing to pay thousands of dollars for computing hardware.
If any company is going to get consumer adoption, it will be Apple
Apple has plenty of advantages compared to competitors like Meta when it comes to convincing people to buy mixed-reality headsets.
First, it already has more than 1 billion users of its smartphone, tablet, and other computing devices, which are all tied to the same ecosystem of application services. This will make the value proposition of the Vision Pro much higher than a device maker that has to start at a blank slate with software services.
Second, Apple has a fantastic reputation among consumers for making easy-to-use computing hardware. This brand surplus should translate over to the mixed reality market.
But the key for Apple compared to any other hardware maker is its ability to sell premium (am I allowed to say overpriced?) hardware devices to its most ardent customers.
If 1 million people purchase a Vision Pro at its $3,500 price point, that equates to $3.5 billion in revenue for Apple, excluding any software add-ons. For reference, Meta is currently selling its mainstream Oculus device for just $300, which equates to only $300 million in sales for every 1 million units sold, and likely with negative unit economics.
This difference in price point will allow Apple to earn a positive return from hardware sales that it can reinvest into better future mixed-reality products. Meta, on the other hand, is losing money on every hardware sale, and will not make money from its entire mixed-reality division unless it somehow can drive $10 billion+ in software sales from a standing start.
My money is on Apple -- the company with decades of experience building computers -- to win this competition by a country mile.
But do consumers want computing goggles?
The biggest barrier for Apple in mixed reality is not competition, but whether people actually want these devices. Convincing people to wear strange-looking goggles for hours at a time is going to take a lot of work, and there's not much evidence anyone enjoys doing that at the moment.
Plenty of reporters said their heads hurt or they felt nauseous after using the Vision Pro for just 30 minutes. It looks like there are still major technical challenges in making a mixed-reality device seamless to use for the everyday person that even Apple hasn't solved yet.
The Vision line of devices could be Apple's next big product to propel its business to new heights this decade. It has a head start versus competitors like Meta, and loyal consumers around the globe. But it is still to be determined whether AR and VR products will make it to the mainstream.
10 stocks we like better than Apple
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. 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. Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But where all these other companies have failed, Apple (NASDAQ: AAPL) thinks it can succeed. With a spectacular list of failures over the years, it's logical to have a heavy dose of skepticism for augmented and virtual reality (AR and VR) products. From Google Glass to Magic Leap to Meta's Oculus division, tens of billions of dollars have gone into building computing goggles, with minimal returns to show for it.
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But where all these other companies have failed, Apple (NASDAQ: AAPL) thinks it can succeed. From Google Glass to Magic Leap to Meta's Oculus division, tens of billions of dollars have gone into building computing goggles, with minimal returns to show for it. Apple's "Vision" for the future Apple revealed its Vision Pro augmented reality device to the world this week, which looks like sleek skiing or snorkeling goggles.
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But where all these other companies have failed, Apple (NASDAQ: AAPL) thinks it can succeed. Apple's "Vision" for the future Apple revealed its Vision Pro augmented reality device to the world this week, which looks like sleek skiing or snorkeling goggles. As of now, Apple plans to launch the Vision Pro in 2024 at a price point of $3,500, which is much more expensive than the Oculus devices Meta sells.
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But where all these other companies have failed, Apple (NASDAQ: AAPL) thinks it can succeed. Apple's "Vision" for the future Apple revealed its Vision Pro augmented reality device to the world this week, which looks like sleek skiing or snorkeling goggles. If any company is going to get consumer adoption, it will be Apple Apple has plenty of advantages compared to competitors like Meta when it comes to convincing people to buy mixed-reality headsets.
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15453.0
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2023-06-08 00:00:00 UTC
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My Top 3 Dividend Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/my-top-3-dividend-stocks-to-buy-now-2
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nan
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Dividend stocks can be an important part of a well-diversified portfolio. This is especially true for investors who may be closer to retirement or have a lower tolerance for volatility and risk in the stock market. A steady income stream from dividend stocks could be precisely what some investors are seeking.
That said, choosing dividend stocks can be tricky. Focusing on metrics like dividend yield alone could lead investors down the wrong path. Here are three stocks to buy right now that offer growth as well as a safe and reliable dividend.
Apple
Apple (NASDAQ: AAPL) has been in the news this week after the company announced its new Apple Vision Pro mixed-reality device at its developers conference. There will likely continue to be a buzz around this long-awaited device as the months pass before it's available to consumers. For investors, the impact may be even further away.
The level to which this device becomes a revenue driver for the company is uncertain. Apple certainly has a track record of successful hardware launches, but there's no guarantee that will continue. Additionally, with a price tag of $3,499, it's likely that initial adoption will be slow.
The important thing to watch for investors is how this device ultimately drives customers deeper into Apple's ecosystem of subscriptions as this is the highest-margin source of revenue for Apple. This segment accounts for 22% of total revenue, which is up from 19% three years ago.
While Apple shareholders wait to see how successful this new product will be, they continue to benefit from the company's shareholder-friendly capital allocation strategy. Over the past 10 years, Apple has raised its dividend by 120% and lowered its shares outstanding by 38%. This makes Apple a compelling investment with or without a new hardware device.
Costco
As the third-largest retailer in the world, Costco Wholesale (NASDAQ: COST) is familiar to most consumers even if they're not members. It's also been a market-crushing investment over almost any time frame. Over the past 10 years, Costco's total return has been 477%, compared to the S&P 500's 222%. Over that same time frame, Costco has increased its dividend by 229%. In fact, since Costco first initiated its dividend in 2004, it has increased at a compound annual rate of 13%.
There are many reasons for Costco's long-term success, but one unique aspect of its business model is its membership fees. Over the trailing 12 months, Costco has collected $4.4 billion in membership fees. While this accounts for less than 2% of total revenue, it's the catalyst that gets shoppers into the stores. At the end of the most recently reported quarter, the fiscal third quarter of 2023, Costco had 69,100 members and 124,700 cardholders. These metrics each grew by 7% compared to Q3 2022.
Costco has faced some challenges recently but zoom out and the results are impressive. Consider Costco's revenue and net income over the very long term.
COST Revenue (TTM) data by YCharts
An important factor to consider when looking at this chart is that Costco succeeds even through recessions (the gray bars on the chart), showing the power of its value proposition to its members. This is worth considering if there is a recession in the coming months.
Starbucks
Starbucks (NASDAQ: SBUX) is another company with an impressive track record of market-beating performance and an increasing dividend. Over the past 10 years, it has outpaced the market's performance by nearly 62% and increased its dividend by 404%.
Starbucks is a compelling stock to buy right now because the company is finally seeing a turnaround in its international business, which has struggled since the pandemic lockdowns, especially in China. In the second quarter of 2023, which ended in April, Starbucks' international revenue increased 9% year over year, driven by China's recovery. This is extremely important to Starbucks as China is the company's second-largest market after the U.S.
The challenges Starbucks has faced in China over the last few years have dragged the stock price down. While it has recovered nicely in 2023, the current valuation is still on the inexpensive side relative to the historical average. Starbucks trades for 3.4 times sales, which is below the 10-year average of 4. The same is true for price-to-earnings ratio, which is currently 32, below the average of 68.
There are brighter days ahead for Starbucks internationally, but the current price appears to still be carrying some of the residual effects of the last few years' challenges. This presents an opportunity for investors who are looking for a growth company that also has a growing dividend.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of June 5, 2023
Jeff Santoro has positions in Apple, Costco Wholesale, and Starbucks. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Starbucks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) has been in the news this week after the company announced its new Apple Vision Pro mixed-reality device at its developers conference. While Apple shareholders wait to see how successful this new product will be, they continue to benefit from the company's shareholder-friendly capital allocation strategy. Starbucks is a compelling stock to buy right now because the company is finally seeing a turnaround in its international business, which has struggled since the pandemic lockdowns, especially in China.
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Apple Apple (NASDAQ: AAPL) has been in the news this week after the company announced its new Apple Vision Pro mixed-reality device at its developers conference. Over the past 10 years, Costco's total return has been 477%, compared to the S&P 500's 222%. Starbucks Starbucks (NASDAQ: SBUX) is another company with an impressive track record of market-beating performance and an increasing dividend.
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Apple Apple (NASDAQ: AAPL) has been in the news this week after the company announced its new Apple Vision Pro mixed-reality device at its developers conference. Starbucks Starbucks (NASDAQ: SBUX) is another company with an impressive track record of market-beating performance and an increasing dividend. See the 10 stocks *Stock Advisor returns as of June 5, 2023 Jeff Santoro has positions in Apple, Costco Wholesale, and Starbucks.
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Apple Apple (NASDAQ: AAPL) has been in the news this week after the company announced its new Apple Vision Pro mixed-reality device at its developers conference. Over the past 10 years, Costco's total return has been 477%, compared to the S&P 500's 222%. In the second quarter of 2023, which ended in April, Starbucks' international revenue increased 9% year over year, driven by China's recovery.
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15454.0
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2023-06-07 00:00:00 UTC
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Is Apple Stock as Overpriced as Its Vision Pro Headset?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-as-overpriced-as-its-vision-pro-headset
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nan
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There were audible groans and boos when Apple (NASDAQ: AAPL) revealed the price of its Vision Pro mixed-reality headset will be $3,499. But few investors are balking at the price of Apple stock, which is once again flirting with a $3 trillion market cap.
Shares of Apple hit an all-time high price ahead of Apple's big announcement earlier this week at its World Wide Developers Conference (WWDC) in California. The shares have outperformed both the S&P 500 and Nasdaq Composite indexes by a wide margin year to date. Meanwhile, its valuation is touching levels not seen since the end of 2021, when it last sat near $3 trillion, despite an outlook for a revenue and earnings decline in 2023.
Is Apple getting too expensive for both investors and consumers?
A hefty price tag
Apple shares peaked above a forward P/E ratio of 30 to start the month of June. That's a higher forward P/E than the last time Apple shares traded around the $3 trillion market cap mark.
The culprit is expectations that Apple's revenue and earnings per share will decline over the next year. Analysts currently expect a 2.3% decline in EPS and a 2.5% decline in sales for Apple. The Vision Pro won't sway those numbers: The device won't come out until 2024 and probably won't have meaningful sales until fiscal 2025.
Over the last 15 years, Apple shares have traded at a trailing P/E above 30 for nine months during the height of the COVID-19 pandemic and then briefly again near the end of 2021. With its current P/E of 30.4, it's starting to look quite pricey again.
AAPL P/E Ratio data by YCharts.
Is Apple worth it?
Despite its high price tags, Apple's products (and its stock) are typically worth the price. While the Vision Pro's value may still be up for debate, the stock still looks like a good deal despite the P/E ratio climbing above 30.
Apple's stock price is supported by the pile of cash sitting on its balance sheet. As of the end of the second quarter, Apple had $166 billion in cash and securities on its balance sheet. While it used debt to access that cash, it still had just $107 billion in debt on the balance sheet, leaving it with $59 billion in net cash. Meanwhile, it's generated nearly $100 billion in free cash flow over the past year, and the outlook remains strong for it to keep the cash machine running.
That consistent cash flow and massive stockpile on its balance sheet gives Apple a lot of room to keep buying back shares of the stock and support its stock price. It bought back $39 billion worth of stock in the first half of 2023, and the board authorized a new $90 billion share repurchase program in May.
The consistent sales of iPhones and the growth of Apple's high-margin services business are the reasons to buy Apple. It's a cash cow that allows it to return massive amounts of money to shareholders while still investing in products for the future, like Vision Pro. So, even if Vision Pro is an absolute overpriced flop (which I don't think is the case, for the record), Apple will walk away largely unscathed.
Even at today's high price, Apple stock is worth buying.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of June 5, 2023
Adam Levy has positions in Apple. 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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There were audible groans and boos when Apple (NASDAQ: AAPL) revealed the price of its Vision Pro mixed-reality headset will be $3,499. AAPL P/E Ratio data by YCharts. It's a cash cow that allows it to return massive amounts of money to shareholders while still investing in products for the future, like Vision Pro.
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There were audible groans and boos when Apple (NASDAQ: AAPL) revealed the price of its Vision Pro mixed-reality headset will be $3,499. AAPL P/E Ratio data by YCharts. A hefty price tag Apple shares peaked above a forward P/E ratio of 30 to start the month of June.
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There were audible groans and boos when Apple (NASDAQ: AAPL) revealed the price of its Vision Pro mixed-reality headset will be $3,499. AAPL P/E Ratio data by YCharts. Shares of Apple hit an all-time high price ahead of Apple's big announcement earlier this week at its World Wide Developers Conference (WWDC) in California.
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There were audible groans and boos when Apple (NASDAQ: AAPL) revealed the price of its Vision Pro mixed-reality headset will be $3,499. AAPL P/E Ratio data by YCharts. A hefty price tag Apple shares peaked above a forward P/E ratio of 30 to start the month of June.
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15455.0
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2023-06-07 00:00:00 UTC
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Best Stocks to Buy Now: My 10 Top Semiconductor Stocks & Semiconductor Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/best-stocks-to-buy-now%3A-my-10-top-semiconductor-stocks-semiconductor-stock-analysis
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What are the best stocks to buy now in the semiconductor industry? Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) are stock market favorites for fabless, but what are the other best semiconductor stocks to buy?
The video provides deep-dive semiconductor stock analysis and breaks down the entire semiconductor industry into 8 primary segments. I also provide my 10 top semiconductor stocks in my million-dollar plus growth stock portfolio, including concentration, number of shares and cost basis.
*Stock prices used were the morning prices of May 31, 2023. The video was published on June 7, 2023.
10 stocks we like better than Nvidia
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 Nvidia 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
Eric Cuka has positions in Advanced Micro Devices, Apple, Axcelis Technologies, Broadcom, Indie Semiconductor, Lam Research, Marvell Technology, Nvidia, SiTime, SkyWater Technology, and iShares Trust-iShares Semiconductor ETF. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Applied Materials, Cadence Design Systems, Lam Research, Nvidia, Qualcomm, SiTime, Synopsys, Taiwan Semiconductor Manufacturing, Texas Instruments, and Wolfspeed. The Motley Fool recommends Broadcom, Intel, and Marvell Technology and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
Eric Cuka 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Applied Materials, Cadence Design Systems, Lam Research, Nvidia, Qualcomm, SiTime, Synopsys, Taiwan Semiconductor Manufacturing, Texas Instruments, and Wolfspeed. If you choose to subscribe through their link, they will earn some extra money that supports their channel.
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See the 10 stocks *Stock Advisor returns as of May 30, 2023 Eric Cuka has positions in Advanced Micro Devices, Apple, Axcelis Technologies, Broadcom, Indie Semiconductor, Lam Research, Marvell Technology, Nvidia, SiTime, SkyWater Technology, and iShares Trust-iShares Semiconductor ETF. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Applied Materials, Cadence Design Systems, Lam Research, Nvidia, Qualcomm, SiTime, Synopsys, Taiwan Semiconductor Manufacturing, Texas Instruments, and Wolfspeed. The Motley Fool recommends Broadcom, Intel, and Marvell Technology and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) are stock market favorites for fabless, but what are the other best semiconductor stocks to buy? I also provide my 10 top semiconductor stocks in my million-dollar plus growth stock portfolio, including concentration, number of shares and cost basis. See the 10 stocks *Stock Advisor returns as of May 30, 2023 Eric Cuka has positions in Advanced Micro Devices, Apple, Axcelis Technologies, Broadcom, Indie Semiconductor, Lam Research, Marvell Technology, Nvidia, SiTime, SkyWater Technology, and iShares Trust-iShares Semiconductor ETF.
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What are the best stocks to buy now in the semiconductor industry? Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) are stock market favorites for fabless, but what are the other best semiconductor stocks to buy? See the 10 stocks *Stock Advisor returns as of May 30, 2023 Eric Cuka has positions in Advanced Micro Devices, Apple, Axcelis Technologies, Broadcom, Indie Semiconductor, Lam Research, Marvell Technology, Nvidia, SiTime, SkyWater Technology, and iShares Trust-iShares Semiconductor ETF.
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15456.0
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2023-06-07 00:00:00 UTC
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Wedbush Maintains Apple (AAPL) Prior Recommendation
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AAPL
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https://www.nasdaq.com/articles/wedbush-maintains-apple-aapl-prior-recommendation
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nan
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Fintel reports that on June 7, 2023, Wedbush maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 2.60% Upside
As of June 1, 2023, the average one-year price target for Apple is 183.88. The forecasts range from a low of 119.18 to a high of $219.45. The average price target represents an increase of 2.60% from its latest reported closing price of 179.21.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6385 funds or institutions reporting positions in Apple. This is a decrease of 3 owner(s) or 0.05% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.80%, an increase of 20.55%. Total shares owned by institutions decreased in the last three months by 2.44% to 9,913,903K shares.
The put/call ratio of AAPL is 0.83, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.82% ownership of the company. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.21% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.81% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.49% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Key filings for this company:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on June 7, 2023, Wedbush maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.80%, an increase of 20.55%. The put/call ratio of AAPL is 0.83, indicating a bullish outlook.
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Fintel reports that on June 7, 2023, Wedbush maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.80%, an increase of 20.55%. The put/call ratio of AAPL is 0.83, indicating a bullish outlook.
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Fintel reports that on June 7, 2023, Wedbush maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.80%, an increase of 20.55%. The put/call ratio of AAPL is 0.83, indicating a bullish outlook.
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Fintel reports that on June 7, 2023, Wedbush maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.80%, an increase of 20.55%. The put/call ratio of AAPL is 0.83, indicating a bullish outlook.
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15457.0
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2023-06-07 00:00:00 UTC
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Cisco (CSCO) Expands Security Portfolio With New SSE Offering
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AAPL
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https://www.nasdaq.com/articles/cisco-csco-expands-security-portfolio-with-new-sse-offering
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nan
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nan
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Cisco Systems CSCO is expanding its security portfolio with the launch of a new security service edge (SSE) solution that provides an efficient hybrid working environment and simplifies access across any location, device and application.
Cisco’s new SSE solution — Cisco Secure Access — offers frictionless access to all applications to enable hybrid work in a secure environment. The solution simplifies security operations by converging multiple functions into one easy-to-use solution that protects all traffic. It helps in efficiency gains and cost reductions, as well as makes the IT environment more flexible.
Moreover, Cisco Secure Access features faster detection and response capabilities and is supported by Cisco Talos AI-driven threat intelligence to detect and block more threats.
Cisco is collaborating with leading mobile device vendors to create the safest and best user experience. It is partnering with Apple AAPL to incorporate Zero Trust Access capabilities powered by Cisco Secure Access into a native experience on iOS and macOS.
Later this year, Apple’s iPhone, iPad, and Mac devices will have native support for network relays.
Cisco Systems, Inc. Price and Consensus
Cisco Systems, Inc. price-consensus-chart | Cisco Systems, Inc. Quote
Moreover, Cisco Secure Access is leveraging capabilities from the rest of the company’s security and networking portfolio, including embedded network visibility from Cisco ThousandEyes, and can be easily integrated with solutions from third-party vendors.
Cisco Secure Access will be available in a limited way beginning July 2023 and will be generally available in October 2023.
Cisco Progressing to Offer AI-Driven Security Cloud
The company is steadily progressing toward its goal of offering an AI-driven security cloud that will help users face an increasingly sophisticated threat environment.
Cisco Security Cloud will use a generative AI-powered Policy Assistant that will help IT and security administrators set policies easily and implement them. The solution, which will be available later this year, will use customers’ existing rule sets in Cisco Secure Firewall Management Center to drive improved efficiency without sacrificing control.
Moreover, Cisco’s Security Operations Center Assistant can detect and respond to threats faster. Cisco is set to launch the event summarization feature by the end of 2023 with the remaining capabilities to be available in the first half of 2024.
As part of its initiatives for an AI-driven Security Cloud, the company launched a new Extended Detection and Response solution that simplifies security operations in the current hybrid, multi-vendor, multi-threat landscape.
Moreover, Cisco started offering advanced features in all editions of Duo to protect against multi-factor authentication attacks.
Adoption of Security Solutions to Aid Cisco’s Prospects
Cisco shares have outperformed the Zacks Computer-Networking industry year to date but underperformed the broader Zacks Computer & Technology sector. While this Zacks Rank #3 (Hold) company returned 4.6%, the industry rose 4% and the sector gained 33.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is riding on the growing demand for its security products. In the fiscal third quarter, End-to-End Security revenues were up 2% year over year to $958 million, driven by strong adoption of ThousandEyes and Duo.
Cisco’s security portfolio benefited from the launch of new data loss prevention, firewall and Zero Trust capabilities. Zero Trust portfolio continued to perform well, driven by strong performance in its Duo offering. Optimized application experiences were up 7%, driven by double-digit growth in Cisco’s SaaS-based offering, ThousandEyes.
The company’s expanding security portfolio and introduction of AI-driven features are expected to drive top-line growth.
For fourth-quarter fiscal 2023, revenues are expected to grow between 14% and 16% on a year-over-year basis. Earnings are anticipated between $1.05 and $1.07 per share.
The Zacks Consensus Estimate for earnings stands at $1.06 per share, up a couple of cents over the past 30 days. The consensus mark for revenues is pegged at $15.05 billion, indicating 14.84% year-over-year growth.
Stocks to Consider
Meta Platforms META and NetScout NTCT are some better-ranked stocks in the broader sector. Both sport a Zacks Rank #1 (Strong Buy).
Long-term earnings growth rate for Meta and NetScout is pegged at 21.93% and 5%, respectively.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
NetScout Systems, Inc. (NTCT) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is partnering with Apple AAPL to incorporate Zero Trust Access capabilities powered by Cisco Secure Access into a native experience on iOS and macOS. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report NetScout Systems, Inc. (NTCT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The solution, which will be available later this year, will use customers’ existing rule sets in Cisco Secure Firewall Management Center to drive improved efficiency without sacrificing control.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report NetScout Systems, Inc. (NTCT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. It is partnering with Apple AAPL to incorporate Zero Trust Access capabilities powered by Cisco Secure Access into a native experience on iOS and macOS. Cisco Systems CSCO is expanding its security portfolio with the launch of a new security service edge (SSE) solution that provides an efficient hybrid working environment and simplifies access across any location, device and application.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report NetScout Systems, Inc. (NTCT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. It is partnering with Apple AAPL to incorporate Zero Trust Access capabilities powered by Cisco Secure Access into a native experience on iOS and macOS. Cisco’s new SSE solution — Cisco Secure Access — offers frictionless access to all applications to enable hybrid work in a secure environment.
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It is partnering with Apple AAPL to incorporate Zero Trust Access capabilities powered by Cisco Secure Access into a native experience on iOS and macOS. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report NetScout Systems, Inc. (NTCT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Cisco Systems CSCO is expanding its security portfolio with the launch of a new security service edge (SSE) solution that provides an efficient hybrid working environment and simplifies access across any location, device and application.
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15458.0
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2023-06-07 00:00:00 UTC
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3 Overbought Stocks to Snap Up on Correction
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AAPL
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https://www.nasdaq.com/articles/3-overbought-stocks-to-snap-up-on-correction
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A common investing mistake is to snap up stocks that have already witnessed a big rally. There is a fear of missing out that triggers impulsive buying without valuation consideration.
However, stocks never move up on a sustained basis. Even the best stocks trend higher, which involves intermediate corrections. It’s these corrections of 15% to 20% (sometimes higher), that provide an entry opportunity. This column talks about the overbought stocks for correction before fresh buying takes these fundamentally strong stocks higher.
It’s important to mention that the S&P 500 index has been sideways in the last 12 months. However, there are individual stocks that have gone ballistic. Of course, I would wait for a correction to grab these stocks. Another important lesson is that markets will have value creators even in the most difficult times.
Let’s discuss three stocks to buy on correction to hold for the next few years.
Nvidia Corporation (NVDA)
Source: Poetra.RH / Shutterstock.com
Nvidia Corporation (NASDAQ:NVDA) stock has skyrocketed by 170% for year-to-date 2023. Of course, there are reasons to be bullish in terms of growth and cash flow upside. However, valuations look stretched at a forward price-earnings ratio of 50.4. I would not be surprised if there is a 20% correction from current levels before fresh buying.
For Q1, Nvidia reported robust revenue growth of 19% on a year-on-year basis to $7.19 billion. The data center, gaming, and automotive segment contributed to revenue growth.
It’s worth noting that the automotive segment contributes to a small portion of the revenue. However, growth was 114% on a year-on-year basis. The automotive design win pipeline has swelled to $14 billion for the next six years. This segment is likely to be a value creator.
From a financial perspective, Nvidia reported an operating cash flow of $2.9 billion for Q1. The annualized OCF potential is already at $12 billion. With strong revenue growth, Nvidia’s free cash flows will continue to swell. Therefore, NVDA stock is worth accumulating on declines.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) stock has surged by 43% for year-to-date 2023. It’s said that ‘buy on rumors and sell on the news.” This holds true for AAPL stock in the foreseeable future.
The reason for the rally was the anticipation of a new product launch. Apple has unveiled a $3,500 AR/VR headset, which is the biggest product launch for the company in a decade. I am bullish on the company’s wearable segment growth. However, I believe that the stock is likely to correct by 10% to 15% before heading higher.
For the next five years, there are several reasons to be bullish on Apple. First, the company’s financial flexibility is robust, with annual operating cash flows in excess of $100 billion. This provides headroom for aggressive investment in research. The company’s electric car is in the pipeline.
Further, Apple’s biggest segment remains iPhone. However, the company’s services and the wearable segment will be big in the coming decade. It’s worth noting that Apple is shifting focus to high-growth markets like India. Revenue and earnings growth is likely to remain attractive.
Tesla (TSLA)
Source: Rokas Tenys / Shutterstock.com
After a big correction in 2022, Tesla (NASDAQ:TSLA) stock has surged by 100% for year-to-date 2023. The rally from oversold levels has been stellar, but the stock looks expensive at a forward price-earnings ratio of 62.2. It’s among the overbought stocks for correction, and I would expect a 15% downside before a renewed rally.
There are multiple reasons to be bullish on TSLA as a core portfolio stock. First, the company has an attractive pipeline of new models that include the Roadster, Cybertruck, and Semi. This will ensure sustained delivery growth.
Furthermore, Tesla has ambitious growth plans throughout the decade. The company plans to produce 20 million cars annually by 2030. There is a likelihood of multiple new gigafactory, which will boost revenue and earnings growth.
It’s also worth noting that Tesla is already a cash flow machine. Last year, the company reported $14.7 billion in operating cash flows. With strong financial flexibility, the company is positioned to make big investments without leverage.
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.
The post 3 Overbought Stocks to Snap Up on Correction 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 Apple (NASDAQ:AAPL) stock has surged by 43% for year-to-date 2023. It’s said that ‘buy on rumors and sell on the news.” This holds true for AAPL stock in the foreseeable future. First, the company’s financial flexibility is robust, with annual operating cash flows in excess of $100 billion.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock has surged by 43% for year-to-date 2023. It’s said that ‘buy on rumors and sell on the news.” This holds true for AAPL stock in the foreseeable future. Nvidia Corporation (NVDA) Source: Poetra.RH / Shutterstock.com Nvidia Corporation (NASDAQ:NVDA) stock has skyrocketed by 170% for year-to-date 2023.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock has surged by 43% for year-to-date 2023. It’s said that ‘buy on rumors and sell on the news.” This holds true for AAPL stock in the foreseeable future. InvestorPlace - Stock Market News, Stock Advice & Trading Tips A common investing mistake is to snap up stocks that have already witnessed a big rally.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock has surged by 43% for year-to-date 2023. It’s said that ‘buy on rumors and sell on the news.” This holds true for AAPL stock in the foreseeable future. Let’s discuss three stocks to buy on correction to hold for the next few years.
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15459.0
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2023-06-07 00:00:00 UTC
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3D Systems (DDD) Up 15.4% Since Last Earnings Report: Can It Continue?
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AAPL
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https://www.nasdaq.com/articles/3d-systems-ddd-up-15.4-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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A month has gone by since the last earnings report for 3D Systems (DDD). Shares have added about 15.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is 3D Systems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
3D Systems Q1 Loss Wider Than Expected, Sales Down Y/Y
3D Systems reported first-quarter 2023 non-GAAP loss of 9 cents per share, wider than the Zacks Consensus Estimate of a loss of 8 cents. The bottom line came in wider than the prior-year quarter’s loss of 6 cents per share.
In the first quarter of 2023, 3D Systems reported revenues of $121.2 million, down 8.8% from the year-ago quarter, which missed the consensus mark of $130.4 million. Excluding the impact of business divestments in 2023 and on a constant currency basis, revenues decreased 6.5% year over year.
3D Systems’ first-quarter performance reflected impacts of inflationary pressure and foreign exchange risks, among other ongoing macroeconomic constraints.
Q1 in Detail
In the first quarter, product revenues represented 69.6% of the total revenues and decreased 16.1% to $84.4 million. Revenues from Services, which accounted for 30.4% of revenues, climbed 13.6% year over year to $36.8 million.
Revenues from the Healthcare segment fell 24.3% year over year to $48.7 million. The figure decreased 19.8% from the prior quarter. Excluding the impact of business divestments, the segment’s revenues decreased 23.4% year over year.
The Industrial Division revenues increased 5.6% year over year to $72.5 million while it went up by 0.7% sequentially. Excluding the impact of business divestments, the unit’s revenues increased 9.3%. The unit witnessed solid demand for products as well as materials.
During the first quarter of 2023, 3D Systems’ non-GAAP gross profit decreased 12.4% year over year to $47.2 million. Consequently, the non-GAAP gross profit margin contracted 160 basis points to 39%. This decrease was because of year-over-year product mix changes, due to divestitures and increased supply chain disruptions.
Adjusted EBITDA was negative $10.1 million. The margin of negative 8.3% reflected the inflationary impact on input costs and gradual investments for portfolio & business growth.
Balance Sheet Details
The company exited the first quarter with cash, cash equivalents and short-term investments of $529.9 million, lower than the prior quarter's $568.7 million. As of Mar 31, 2023, 3D Systems had a total debt of $450.2 million, up from the previous quarter’s $449.5 million.
In first-quarter 2023, the company utilized $27.7 million of cash from operational activities.
Guidance
3D Systems expects 2023 revenues between $545 million and $575 million.
The company projects non-GAAP gross margin to be 40-42%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 15% due to these changes.
VGM Scores
At this time, 3D Systems has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, 3D Systems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
3D Systems is part of the Zacks Computer - Mini computers industry. Over the past month, Apple (AAPL), a stock from the same industry, has gained 4.3%. The company reported its results for the quarter ended March 2023 more than a month ago.
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.
For the current quarter, Apple is expected to post earnings of $1.18 per share, indicating a change of -1.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Apple. Also, the stock has a VGM Score of C.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
3D Systems Corporation (DDD) : Free Stock Analysis 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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Over the past month, Apple (AAPL), a stock from the same industry, has gained 4.3%. Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
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Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the past month, Apple (AAPL), a stock from the same industry, has gained 4.3%. 3D Systems Q1 Loss Wider Than Expected, Sales Down Y/Y 3D Systems reported first-quarter 2023 non-GAAP loss of 9 cents per share, wider than the Zacks Consensus Estimate of a loss of 8 cents.
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Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the past month, Apple (AAPL), a stock from the same industry, has gained 4.3%. 3D Systems Q1 Loss Wider Than Expected, Sales Down Y/Y 3D Systems reported first-quarter 2023 non-GAAP loss of 9 cents per share, wider than the Zacks Consensus Estimate of a loss of 8 cents.
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Over the past month, Apple (AAPL), a stock from the same industry, has gained 4.3%. Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. A month has gone by since the last earnings report for 3D Systems (DDD).
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15460.0
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2023-06-07 00:00:00 UTC
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Grab the Best AI Stocks Before They Really Blast Off
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AAPL
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https://www.nasdaq.com/articles/grab-the-best-ai-stocks-before-they-really-blast-off
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “Grab the Best AI Stocks Before They Really Blast Off” was previously published in May 2023. It has since been updated to include the most relevant information available.
There has been a lot of talk and hype about artificial intelligence (AI) recently. Following the hugely successful launch of the conversational chatbot ChatGPT, companies in every industry are racing to create an AI-powered tool of their own.
But is all the hype worth it? Will the so-called AI Economy even be that big?
In short, yes, and its global impact will be enormous – nearly as large as (or larger than) the entire U.S. economy.
I know that sounds hyperbolic. It’s not.
The next decade will be defined by the emergence of AI technologies that reshape every facet of our global economy.
That may sound extreme. But we’ve actually seen this rodeo before.
When the internet emerged, it, too, transformed every facet of the global economy.
And by the 2010s, physical retail stores became e-commerce sites. Now e-commerce sites will become AI-powered shopping apps, with machine learning algorithms powering product recommendations and pricing dynamics.
In the 2010s, video rental and music record stores became streaming platforms. Now streaming platforms will become AI streaming apps, with ML algos powering movie and TV show recommendations.
In the 2010s, networking parties and social outings became social media apps. And now social media apps will become AI-driven social media apps, with every feed, post, comment, video, and friend recommendation delivered to you in a hyper-personalized fashion by AI.
Even things like energy infrastructure, electric vehicles, and drug discovery will be propelled forward by AI. Algorithms will be used to optimize energy usage and storage on the grid, create more efficient batteries through endless chemistry simulations, and diagnose and treat diseases more efficiently through novel techniques like genetic mapping.
AI will change everything over the next decade.
Investing in the AI Takeover
Much like the internet, AI’s emergence will mean fortunes and empires for some folks – and broken dreams and empty bank accounts for others. That’s because it presents the potential for job displacement. (Though it’s worth noting that privacy concerns and bias in algorithmic decision-making could hinder the widespread adoption of AI and limit its economic potential.)
The internet gave birth to Amazon (AMZN), Alphabet (GOOG, GOOGL), Microsoft (MSFT), and Apple (AAPL). It also laid waste to Sears, JCPenney, RadioShack, Blockbuster, and Polaroid – each of which were, in their heyday, considered titans of corporate America.
The Age of AI will do the same. It will create new multi-trillion-dollar empires and destroy seemingly indestructible ones.
But it will do so on a scale greater than any we’ve ever seen.
According to the World Economic Forum, the global digital economy measured about $14.5 trillion in 2022.
That’s huge. But it is nothing compared to the size of what the Artificial Intelligence Economy will be one day.
According to PricewaterhouseCoopers (PwC), the AI Economy will grow to $15.7 trillion by 2030 alone. And that’s just eight years away.
The folks over at ARK Invest agree with PwC in thinking that the artificial intelligence market will most likely be worth around $15 trillion by 2030.
But they also see a bull-case scenario for the market growing to $40 trillion by 2030. Moreover, they believe that at 100% adoption, the global AI market could drive global labor productivity to about $200 trillion!
For reference, the entire U.S. economy is worth just over $20 trillion. So, there are pathways for the AI Economy to one day be significantly more valuable than the entire U.S. economy.
The Final Word on AI Stocks
This is the biggest and most important technological revolution of our lifetimes, with the biggest economic stakes of any paradigm shift we’ve ever witnessed.
Why else do you think Microsoft, Alphabet, Tesla (TSLA), and others are racing toward AI supremacy?
All of those companies were pretty quiet about AI for years, until OpenAI unveiled ChatGPT in late November 2022.
Within months, Alphabet launched a ChatGPT competitor and Tesla started calling itself the biggest AI company in the world.
Now everyone’s jumping on the AI bandwagon, launching flashy new AI-powered products on a seemingly daily basis. Harvard, the world’s preeminent university, recently announced it would start using AI to grade papers and teach assignments in its most popular coding class. Tax giant Intuit (INTU) just launched a brand-new generative AI operating system to help folks do their taxes. And the list goes on and on.
Coincidence? Not at all.
These companies know that everything is at stake in the emerging Age of AI.
If Alphabet doesn’t create the best AI-powered search platform, it won’t be the world’s most used search engine in 10 years.
If Amazon doesn’t create the best AI-powered e-commerce platform, it won’t be the world’s largest retailer in 10 years.
The stakes are high. So are the potential rewards. And with a likely Fed pause on deck in a matter of days, the gains could quickly become explosive.
And that’s why we aren’t running away from this tech revolution – we’re embracing it.
Find out which stocks hold the most promise as AI transforms the world as we know it.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Grab the Best AI Stocks Before They Really Blast Off 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 internet gave birth to Amazon (AMZN), Alphabet (GOOG, GOOGL), Microsoft (MSFT), and Apple (AAPL). Now e-commerce sites will become AI-powered shopping apps, with machine learning algorithms powering product recommendations and pricing dynamics. (Though it’s worth noting that privacy concerns and bias in algorithmic decision-making could hinder the widespread adoption of AI and limit its economic potential.)
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The internet gave birth to Amazon (AMZN), Alphabet (GOOG, GOOGL), Microsoft (MSFT), and Apple (AAPL). Now e-commerce sites will become AI-powered shopping apps, with machine learning algorithms powering product recommendations and pricing dynamics. Within months, Alphabet launched a ChatGPT competitor and Tesla started calling itself the biggest AI company in the world.
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The internet gave birth to Amazon (AMZN), Alphabet (GOOG, GOOGL), Microsoft (MSFT), and Apple (AAPL). Investing in the AI Takeover Much like the internet, AI’s emergence will mean fortunes and empires for some folks – and broken dreams and empty bank accounts for others. So, there are pathways for the AI Economy to one day be significantly more valuable than the entire U.S. economy.
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The internet gave birth to Amazon (AMZN), Alphabet (GOOG, GOOGL), Microsoft (MSFT), and Apple (AAPL). Following the hugely successful launch of the conversational chatbot ChatGPT, companies in every industry are racing to create an AI-powered tool of their own. The Final Word on AI Stocks This is the biggest and most important technological revolution of our lifetimes, with the biggest economic stakes of any paradigm shift we’ve ever witnessed.
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2023-06-07 00:00:00 UTC
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The 3 Best Movie Stocks to Buy Now (Not Named AMC)
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AAPL
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https://www.nasdaq.com/articles/the-3-best-movie-stocks-to-buy-now-not-named-amc
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Movie theaters have had it tough over the past three years, without the ongoing writers’ strike in Hollywood putting its revenue engine in doubt. CNN Business reported Moody’s comments in early May, “New big-budget tent-pole releases tend to fill theaters. Theaters rely on these volumes for food and beverage sales as well, so exhibitors could feel the effects of a protracted strike more significantly.” This is a very tricky time to be considering the best movie stocks to buy.
So why would anyone in their right mind consider a movie stocks investment? Good question.
AMC Entertainment Holdings (NYSE:AMC) is up more than 18.07% year-to-date. Investors are betting that movie theaters will continue generating strong box offices come summer.
In 2022, the domestic box office was $7.37 billion, 64.4% higher than in 2021. Through June 5, it was $3.61 billion, or about $722 million per month. While that’s reasonable relative to 2021, it’s nowhere near 2018’s record box office that, averaged $991 million per month, 37% higher than in 2022.
Given AMC’s debt and the potential pain of a protracted strike, it would not be wise to bet on America’s largest theater chain. Instead, here are three ways to bet on promising movie industry stocks without too much risk.
Vanguard Communications Services ETF (VOX)
Source: Shutterstock
The Vanguard Communications Services ETF (NYSEARCA:VOX) has four movie theater chains amongst its 116 holdings: AMC at 0.31%, Cinemark Holdings (NYSE:CNK) at 0.23%, IMAX (NYSE:IMAX) at 0.12% and Marcus (NYSE:MCS) at 0.05%.
I realize this amounts to a minimal bet on movie stocks, but sometimes it’s better to be a little more conservative in your investments. That’s especially true when you’ve got something like a writer’s strike hanging over your head. Better to be safe than sorry.
However, If you go through the list of holdings, you will see that movie-related businesses account for three of the top 10: Walt Disney (NYSE:DIS) at 5.77%, Comcast (NASDAQ:CMCSA) at 4.42% and Netflix (NASDAQ:NFLX).
If you’re concerned about VOX’s performance, you needn’t be. YTD, it’s up more than 25%, more than double the index, and 22% over the past five years. It’s delivered reasonable, if not spectacular, returns over this period.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
These last two selections are indirect ways to bet on movie stocks.
Of course, Amazon (NASDAQ:AMZN) has its Prime video streaming service. However, it really got into the movie business when it acquired MGM Studios in March 2022, paying $8.45 billion for the iconic American movie studio.
It merged the studio with Prime Video and Amazon Studios to make a formidable movie business. Amazon Studio produced Air!, Ben Affleck’s latest directing effort, a movie about Nike (NYSE:NKE) signing Michael Jordan to a sponsorship deal.
By insulating yourself in the Amazon ecosystem, you are diversifying your interests beyond the movie business into its more lucrative industries such as data centers and cloud computing through Amazon Web Services, as well as the advertising business, which is growing faster than AWS.
The former had revenues of $21.4 billion in the first quarter, 16% higher than a year earlier, while the latter’s sales grew 21% to $9.5 billion. More importantly, the two segments have huge operating margins, allowing Amazon to do whatever it wants in e-commerce and elsewhere.
Don’t forget the goal of investing is to make money over the long haul. It’s a marathon rather than a sprint.
Berkshire Hathaway (BRK-A,BRK-B)
Source: IgorGolovniov / Shutterstock.com
Even more indirect, Berkshire Hathaway’s (NYSE:BRK-A,NYSE:BRK-B) connection to the movie business is through its passive equity investments in Apple (NASDAQ:AAPL) and Paramount Global (NASDAQ:PARA). Berkshire’s 5.8% stake in Apple accounts for nearly 48% of the holding company’s $345 billion equities portfolio.
Apple launched Apple Studios in October 2019 to create content for its Apple TV+ video streaming business. Berkshire’s 15.3% stake in Paramount is a much smaller equity position, accounting for just 0.4% of its portfolio. It’s not even in its top 10.
Paramount recently cut its dividend to preserve free cash flow to grow its business. Its shares have been hit mercilessly, down 50% over the past year. Warren Buffett discussed the Paramount situation at Berkshire’s annual meeting in early May.
“The streaming business is extremely interesting to watch, because people love to use their eyeballs being entertained on a screen in front of them or a phone, whatever it may be, but there is a lot of companies doing it, and you need fewer companies or you need higher prices, or it doesn’t work,” The Hollywood Reporter reported Buffett’s comments.
I consider Paramount similar to Berkshire’s investment in Occidental Petroleum (NYSE:OXY). Investors thought Buffett had lost his touch for a long time because of the large energy investment. Higher oil prices have changed investor perception.
Occidental is now Berkshire’s sixth-largest holding, valued at $13.2 billion, giving it nearly 25% of the oil and gas producer.
Warren Buffett is patient capital. I suspect he ends up smelling like roses when it comes to Paramount.
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.
The post The 3 Best Movie Stocks to Buy Now (Not Named AMC) 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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Berkshire Hathaway (BRK-A,BRK-B) Source: IgorGolovniov / Shutterstock.com Even more indirect, Berkshire Hathaway’s (NYSE:BRK-A,NYSE:BRK-B) connection to the movie business is through its passive equity investments in Apple (NASDAQ:AAPL) and Paramount Global (NASDAQ:PARA). Theaters rely on these volumes for food and beverage sales as well, so exhibitors could feel the effects of a protracted strike more significantly.” This is a very tricky time to be considering the best movie stocks to buy. Given AMC’s debt and the potential pain of a protracted strike, it would not be wise to bet on America’s largest theater chain.
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Berkshire Hathaway (BRK-A,BRK-B) Source: IgorGolovniov / Shutterstock.com Even more indirect, Berkshire Hathaway’s (NYSE:BRK-A,NYSE:BRK-B) connection to the movie business is through its passive equity investments in Apple (NASDAQ:AAPL) and Paramount Global (NASDAQ:PARA). Vanguard Communications Services ETF (VOX) Source: Shutterstock The Vanguard Communications Services ETF (NYSEARCA:VOX) has four movie theater chains amongst its 116 holdings: AMC at 0.31%, Cinemark Holdings (NYSE:CNK) at 0.23%, IMAX (NYSE:IMAX) at 0.12% and Marcus (NYSE:MCS) at 0.05%. Of course, Amazon (NASDAQ:AMZN) has its Prime video streaming service.
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Berkshire Hathaway (BRK-A,BRK-B) Source: IgorGolovniov / Shutterstock.com Even more indirect, Berkshire Hathaway’s (NYSE:BRK-A,NYSE:BRK-B) connection to the movie business is through its passive equity investments in Apple (NASDAQ:AAPL) and Paramount Global (NASDAQ:PARA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Movie theaters have had it tough over the past three years, without the ongoing writers’ strike in Hollywood putting its revenue engine in doubt. Vanguard Communications Services ETF (VOX) Source: Shutterstock The Vanguard Communications Services ETF (NYSEARCA:VOX) has four movie theater chains amongst its 116 holdings: AMC at 0.31%, Cinemark Holdings (NYSE:CNK) at 0.23%, IMAX (NYSE:IMAX) at 0.12% and Marcus (NYSE:MCS) at 0.05%.
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Berkshire Hathaway (BRK-A,BRK-B) Source: IgorGolovniov / Shutterstock.com Even more indirect, Berkshire Hathaway’s (NYSE:BRK-A,NYSE:BRK-B) connection to the movie business is through its passive equity investments in Apple (NASDAQ:AAPL) and Paramount Global (NASDAQ:PARA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Movie theaters have had it tough over the past three years, without the ongoing writers’ strike in Hollywood putting its revenue engine in doubt. So why would anyone in their right mind consider a movie stocks investment?
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2023-06-07 00:00:00 UTC
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Bitcoin Wavers Amid Binance and Coinbase Lawsuits, but Cathie Wood Says the Crypto Could Hit $1 Million by 2030
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AAPL
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https://www.nasdaq.com/articles/bitcoin-wavers-amid-binance-and-coinbase-lawsuits-but-cathie-wood-says-the-crypto-could
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The U.S. Securities and Exchange Commission (SEC) sued Binance on Monday, accusing the crypto exchange of violating several securities laws. Charges include running an illegal trading platform in the U.S. and misusing funds deposited by investors. The SEC has long maintained that many crypto assets are securities, and this lawsuit is another crack at proving that concept.
News of the litigation initially sent Bitcoin (CRYPTO:BTC) tumbling on Monday. Its price fell below $26,000 for the first time since March, but it rebounded on Tuesday as the SEC turned its attention to Coinbase Global. In its second lawsuit in as many days, the SEC accused Coinbase of operating as an unregistered exchange and broker, and it named 13 crypto assets on the platform that allegedly qualify as securities.
Readers wondering why Bitcoin rebounded on the news can refer to that list. It names popular cryptocurrencies like Solana, Cardano, and Polygon, but Bitcoin is absent. The rebound may also indicate that Bitcoin investors have assessed the charges against Binance and found little reason to be worried. Ultimately, neither lawsuit should have a lasting impact on Bitcoin.
Cathie Wood is bullish on Bitcoin
Ark Invest CEO Cathie Wood has long been bullish on digital assets, especially Bitcoin. Wood has not commented on the pending litigation against Binance or Coinbase, though she did say this last week, "It would be nice if the U.S. were leading [the Bitcoin] movement, but we're losing it, and we're losing it because of our regulatory system."
Wood used Coinbase as an example. The company has repeatedly asked the SEC to clarify its stance on cryptocurrencies, or design a new framework specific to digital assets, but the regulator has so far refused. In response, CEO Brian Armstrong has warned the SEC that Coinbase would consider leaving the U.S. in the absence of clear regulations, and the company recently received a license to operate in Bermuda.
However, Wood is seemingly as bullish as ever where Bitcoin is concerned. Ark Invest has a sizable position in Coinbase -- it owns 6% of the outstanding shares, and Coinbase currently ranks as its fifth-largest holding -- and the Ark analyst team recently published wildly optimistic price targets for Bitcoin.
Ark says Bitcoin could be worth $1.48 million by 2030
Earlier this year, Ark outlined three valuation models for Bitcoin through the end of the decade. The bear case puts the cryptocurrency at $258,500 in 2030, which implies 857% upside from its current price. The base case puts Bitcoin at $682,800 in 2030, which implies 2,400% upside from its current price. And the bull case puts the cryptocurrency at $1.48 million in 2030, which implies 5,300% upside from its current price.
The investment thesis is simple: Bitcoin was the first modern cryptocurrency, and it remains the most valuable. It accounts for more than 45% of the entire crypto market. That points to immense popularity.
If Bitcoin were a business, it would have brand authority like Apple. That popularity is important because Bitcoin is a finite asset. Its source code imposes a supply limit of 21 million coins, and basic economics says the price of a finite asset will rise in lockstep with demand.
So here is the million-dollar question: Will demand for Bitcoin rise in the future?
Ark believes the answer is yes. Analysts outline eight use cases that should drive demand for Bitcoin higher in the coming years.
For instance, Ark thinks Bitcoin will play a larger role in corporate and nation state treasury strategies by 2030. The firm also believes retail investors and financial institutions will put more money into Bitcoin in the future, and that more emerging markets will adopt Bitcoin as a currency. Finally, Ark expects Bitcoin to play a bigger part in remittance payments and bank settlements by the end of the decade.
Why Bitcoin is worth buying (for some investors)
Ark has a reputation for aggressive valuation models. Indeed, the bull case assumes Bitcoin will account for 25% of global remittance volume and 10% of bank settlement volume by 2030.
That seems overly optimistic. But the investment thesis behind Bitcoin is solid: It is the most popular digital asset by a wide margin, and that makes Bitcoin a logical choice for traders, institutions, corporations, and nations looking to diversify into digital assets. That's why risk-tolerant investors should consider buying Bitcoin today.
10 stocks we like better than Bitcoin
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 Bitcoin 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
Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bitcoin, Cardano, Coinbase Global, Polygon, and Solana. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In its second lawsuit in as many days, the SEC accused Coinbase of operating as an unregistered exchange and broker, and it named 13 crypto assets on the platform that allegedly qualify as securities. In response, CEO Brian Armstrong has warned the SEC that Coinbase would consider leaving the U.S. in the absence of clear regulations, and the company recently received a license to operate in Bermuda. Its source code imposes a supply limit of 21 million coins, and basic economics says the price of a finite asset will rise in lockstep with demand.
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Cathie Wood is bullish on Bitcoin Ark Invest CEO Cathie Wood has long been bullish on digital assets, especially Bitcoin. Indeed, the bull case assumes Bitcoin will account for 25% of global remittance volume and 10% of bank settlement volume by 2030. The Motley Fool has positions in and recommends Apple, Bitcoin, Cardano, Coinbase Global, Polygon, and Solana.
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Cathie Wood is bullish on Bitcoin Ark Invest CEO Cathie Wood has long been bullish on digital assets, especially Bitcoin. Ark says Bitcoin could be worth $1.48 million by 2030 Earlier this year, Ark outlined three valuation models for Bitcoin through the end of the decade. But the investment thesis behind Bitcoin is solid: It is the most popular digital asset by a wide margin, and that makes Bitcoin a logical choice for traders, institutions, corporations, and nations looking to diversify into digital assets.
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Wood used Coinbase as an example. But the investment thesis behind Bitcoin is solid: It is the most popular digital asset by a wide margin, and that makes Bitcoin a logical choice for traders, institutions, corporations, and nations looking to diversify into digital assets. The Motley Fool has positions in and recommends Apple, Bitcoin, Cardano, Coinbase Global, Polygon, and Solana.
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2023-06-07 00:00:00 UTC
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Apple Partnership Strengthens Unity Software's Investment Appeal
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AAPL
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https://www.nasdaq.com/articles/apple-partnership-strengthens-unity-softwares-investment-appeal
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Unity Software (NYSE: U) saw its share price rocket higher Monday afternoon and closed the day up almost 20% after Apple (NASDAQ: AAPL) announced they are working together on the Apple Vision Pro headset.
The breaking news caused Unity’s stock to break above the declining 200 SMA, tear above previous resistance around $33, and fill the gap from March, near $36. The stock traded almost 5x its ATR and nearly 4x its average volume. YTD, Unity is now up almost 27%, and the bottom looks in.
The announcement came during Apple’s Worldwide Developers Conference (WWDC) on Monday, where Apple unveiled a new major product for the first time in almost a decade, the Vision Pro. While the announcement sent Unity stock soaring, it had the opposite effect on Apple’s share price, with the tech giant pairing back earlier gains in the session and closing the day in the red.
Unity is a game development platform that allows users to create and build interactive 2-D and 3-D environments for gaming and other applications. Unity was one of the first developers to fully support the iPhone operating system, making it a go-to choice for game developers. Over the years, Unity has expanded its offerings to include desktop, mobile, tablets, consoles, 3-D, web-based, and virtual reality platforms.
Earnings and Outlook
The company announced Q1 earnings on May 10th and reported a beat on revenue. For the quarter, revenue was $500 million, up 56% year over year. The company expects to report $510 - $520 million in Q2 revenue, topping estimates of $509 million. Unity reported a net loss of $254 million, or 67 cents per share, for the quarter.
The company also announced that it would restructure specific departments and teams, with layoffs helping it position itself for long-term and profitable growth.
Like many other tech companies, specifically in the gaming industry, Unity used its first quarterearnings calland report to establish itself as a critical player in artificial intelligence (AI). In a report, the company said: “We embraced AI years ago and see the adoption of AI tools as an accelerant to our business based on our structural and sustainable competitive advantages.”
Currently, Unity has four applications and services that support artificial intelligence.
Institutional Ownership and Analyst Ratings
Current institutional ownership of U stock is 82.5%. That figure has increased in the past twelve months as institutions purchased $1.53 billion. During the same period, total institutional outflows were $526.69 million, bringing the net institutional inflows in U stock to about $1 billion.
Insider ownership is currently at 9%. That percentage has steadily decreased, and in the previous twelve months, insiders sold $14.22 million worth of stock.
The stock currently has a consensus rating of Hold, based on 17 analyst ratings. The consensus price target is $40.06, implying an 11.78% upside.
Should You Invest in U
First-quarter solid earnings, embracing AI, and a consensus PT indicating further upside paint a bullish picture for the stock. Unity has a stable financial position, including a cash position of $1.59 billion and current assets of $2.24 billion. The recent partnership with Apple and their game development platform’s versatility have helped shift momentum and propelled its share price.
Unity’s strategic developments, innovations, and partnerships support growth, making it an enticing choice for investors seeking gaming and AI industry exposure.
The views and 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 (NYSE: U) saw its share price rocket higher Monday afternoon and closed the day up almost 20% after Apple (NASDAQ: AAPL) announced they are working together on the Apple Vision Pro headset. While the announcement sent Unity stock soaring, it had the opposite effect on Apple’s share price, with the tech giant pairing back earlier gains in the session and closing the day in the red. Like many other tech companies, specifically in the gaming industry, Unity used its first quarterearnings calland report to establish itself as a critical player in artificial intelligence (AI).
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Unity Software (NYSE: U) saw its share price rocket higher Monday afternoon and closed the day up almost 20% after Apple (NASDAQ: AAPL) announced they are working together on the Apple Vision Pro headset. Like many other tech companies, specifically in the gaming industry, Unity used its first quarterearnings calland report to establish itself as a critical player in artificial intelligence (AI). Institutional Ownership and Analyst Ratings Current institutional ownership of U stock is 82.5%.
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Unity Software (NYSE: U) saw its share price rocket higher Monday afternoon and closed the day up almost 20% after Apple (NASDAQ: AAPL) announced they are working together on the Apple Vision Pro headset. While the announcement sent Unity stock soaring, it had the opposite effect on Apple’s share price, with the tech giant pairing back earlier gains in the session and closing the day in the red. In a report, the company said: “We embraced AI years ago and see the adoption of AI tools as an accelerant to our business based on our structural and sustainable competitive advantages.” Currently, Unity has four applications and services that support artificial intelligence.
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Unity Software (NYSE: U) saw its share price rocket higher Monday afternoon and closed the day up almost 20% after Apple (NASDAQ: AAPL) announced they are working together on the Apple Vision Pro headset. For the quarter, revenue was $500 million, up 56% year over year. Institutional Ownership and Analyst Ratings Current institutional ownership of U stock is 82.5%.
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15464.0
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2023-06-07 00:00:00 UTC
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Should iShares Russell 1000 ETF (IWB) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-1000-etf-iwb-be-on-your-investing-radar-7
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
The fund is sponsored by Blackrock. It has amassed assets over $29.61 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. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.42%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 24.73% of total assets under management.
Performance and Risk
IWB seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of the large-capitalization sector of the U.S. equity market. The Index is a float-adjusted capitalization-weighted index of equity securities issued by the approximately 1,000 largest issuers in the Russell 3000 Index.
The ETF return is roughly 12.12% so far this year and was up about 5.06% in the last one year (as of 06/07/2023). In the past 52-week period, it has traded between $196.94 and $237.63.
The ETF has a beta of 1.01 and standard deviation of 18.97% for the trailing three-year period, making it a medium risk choice in the space. With about 1012 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWB 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 $318.24 billion in assets, SPDR S&P 500 ETF has $407.07 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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iShares Russell 1000 ETF (IWB): 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 6.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 ETF (IWB): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $29.61 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 6.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). You should consider the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 6.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 6.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund.
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15465.0
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2023-06-07 00:00:00 UTC
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2 Best Hot Stocks to Buy in June
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https://www.nasdaq.com/articles/2-best-hot-stocks-to-buy-in-june
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Summer is just around the corner, which often triggers a stock market slump. While sluggishly performing stocks could convince you it's time to sell, keeping a long-term perspective during the warmer months is crucial. The market often rebounds once the air turns chilly, and you won't want to miss out on potential gains.
In the meantime, it's a good idea to strengthen your portfolio by investing in companies with a history of growth. Companies like Apple (NASDAQ: AAPL) and Costco (NASDAQ: COST) have provided investors with consistent gains for years and have excellent outlooks for 2023.
These are two of the best hot stocks to buy in June.
1. Apple
Apple stock hit an all-time high on June 5 ahead of its Worldwide Developers Conference, thanks to anticipation for the debut of its first augmented reality (AR) headset, which it calls the Vision Pro. The company's shares gained 2% in the early hours of the day, hitting a record $184.90 by midday. The stock lost steam later in the day, falling to $179 a share after Apple announced the headset's eye-watering price of $3,499.
However, the downturn doesn't dampen the company's massive potential in AR. Apple shares didn't tumble because its headset lacked innovation, merely because its price doesn't allow it to appeal to the mass market just yet. As a result, an investment in Apple now is not for the success of the current Vision Pro, but for what's possible three or four generations down the line when the price is naturally reduced, making the technology more available to the average consumer.
Data from Market Research Future reveals the AR market is projected to expand at a compound annual growth rate of 42% through 2030. Meanwhile, Apple's new headset is unlike anything else available, with its advanced capabilities potentially propelling it to the top of the industry. The company has much to gain as the sector develops.
Apple's Vision Pro looks to be just the beginning of where AR is headed, with now an excellent time to consider buying this hot stock.
2. Costco
As grocery retailers go, Costco is one of the most reliable investment options available. The company's stock has climbed 160% in the last five years. Meanwhile, its annual revenue and operating income have risen over 60% in the same period.
The wholesale retailer's unique strategy of selling bulk items at low prices to consumers who are paying an annual membership fee for the privilege has won over shoppers worldwide. In fact, the company's membership renewal rate hit 93% in the U.S. and Canada and 90% internationally in 2022.
Costco currently operates in 14 countries, granting it significant growth opportunities. In France alone, the company has opened two stores since 2017. Its success in the country has led to plans to open 15 additional locations by 2025. With similar potential in many other countries, Costco shares will likely continue climbing for years.
Moreover, easing inflation suggests it's not a bad idea to add a retail stock to your list of holdings. Companies in the industry have the most to gain from the improving cost of living, with now an excellent time to invest before it's too late. Costco is one of the best options, thanks to its past gains in the stock market, compared to peers. The chart below illustrates how Costco's stock growth over the last five years is between double and triple the growth of its biggest competitors.
Data by YCharts.
As Costco continues to expand its global presence and other areas of its business, like its e-commerce division, the company has much to offer investors. Alongside a dividend that has increased for 19 consecutive years, Costco stock is a no-brainer buy this June.
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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Companies like Apple (NASDAQ: AAPL) and Costco (NASDAQ: COST) have provided investors with consistent gains for years and have excellent outlooks for 2023. While sluggishly performing stocks could convince you it's time to sell, keeping a long-term perspective during the warmer months is crucial. As a result, an investment in Apple now is not for the success of the current Vision Pro, but for what's possible three or four generations down the line when the price is naturally reduced, making the technology more available to the average consumer.
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Companies like Apple (NASDAQ: AAPL) and Costco (NASDAQ: COST) have provided investors with consistent gains for years and have excellent outlooks for 2023. Data from Market Research Future reveals the AR market is projected to expand at a compound annual growth rate of 42% through 2030. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Companies like Apple (NASDAQ: AAPL) and Costco (NASDAQ: COST) have provided investors with consistent gains for years and have excellent outlooks for 2023. Apple Apple stock hit an all-time high on June 5 ahead of its Worldwide Developers Conference, thanks to anticipation for the debut of its first augmented reality (AR) headset, which it calls 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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Companies like Apple (NASDAQ: AAPL) and Costco (NASDAQ: COST) have provided investors with consistent gains for years and have excellent outlooks for 2023. With similar potential in many other countries, Costco shares will likely continue climbing for years. * 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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15466.0
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2023-06-07 00:00:00 UTC
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Tim Cook Calls Vision Pro "Tomorrow's Engineering, Today." And No, It's Not the Metaverse.
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AAPL
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https://www.nasdaq.com/articles/tim-cook-calls-vision-pro-tomorrows-engineering-today.-and-no-its-not-the-metaverse.
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Apple's (NASDAQ: AAPL) history is marked by exciting launches that have transformed the company -- and maybe your lifestyle too. I'm thinking of products like the iPhone or the iPad. But it's been a while since the innovative tech company has unveiled a new game-changing product. The last one actually was the Apple Watch back in 2014.
However, the wait may be over. The company announced Vision Pro at its developers conference earlier this week. In an interview with Good Morning America, Apple chief executive officer Tim Cook referred to the device as "tomorrow's engineering, today."
But Apple isn't calling Vision Pro a step into the metaverse. Instead, Apple is focusing on the idea of spatial computing. Could this be Apple's next big thing?
Making your movie screen 100 feet wide
First, some details about the device: It's a headset that allows wearers to see apps, messages, and more within their environment. Users can launch a search through a simple voice command and scroll through items with a tap of a finger.
Vision Pro promises to make your movie screen feel 100 feet wide -- right there in your living room. Users also can look at their own photos and videos at life-size scale. And those are just a couple of examples of what this new device can do.
Users feel as if they're really in the middle of the action as they watch movies, TV programs, or sporting events, Cook said on Good Morning America. So, it's an exciting moment for technology fans. But it also is an exciting moment for Apple.
Vision Pro is the "most advanced piece of electronics equipment out there," Cook said during the interview. He called augmented reality a "profound technology" that Apple has been working on for a while. "This is the next chapter in that, and it's a huge leap," the CEO said.
It's clear that the product is a major innovation. But the question now is whether it will stand out as Apple's previous innovations have done -- and how it may impact revenue.
Vision Pro comes with a hefty price tag: at least $3,499, the company says. That's compared to Meta Platforms' Quest 3 that should launch later this year for $499.
Budget-conscious technology fans may opt for the Meta product. Even if the Apple product is superior, it may be difficult to sell Vision Pro to a wide audience at such a price level.
That said, at this price, Apple may not need a huge audience. My colleague Nicholas Rossolillo wrote about how Apple just needs to sell 1.9 million Vision Pro devices to equal the iPad's revenue from last quarter. This means Vision Pro could become Apple's next big thing -- even if it doesn't attract a huge audience.
A key step for Apple
And, right now, Vision Pro is a key step for Apple because it brings the company into a new era of technology. It's still too early to say whether this device will be a stepping stone for Apple in spatial computing, or if it will truly take off. But Apple's strong device track record is good reason to be optimistic about the company's position in spatial computing over the long term.
One key point to watch is the pace of development of applications for Vision Pro. Apple's developer community can harness the power of Vision Pro to create new app experiences, for example.
Whether Vision Pro immediately brings revenue growth to Apple or not, all of this means it still could be yet another game-changing device for the company.
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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. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) history is marked by exciting launches that have transformed the company -- and maybe your lifestyle too. In an interview with Good Morning America, Apple chief executive officer Tim Cook referred to the device as "tomorrow's engineering, today." Users feel as if they're really in the middle of the action as they watch movies, TV programs, or sporting events, Cook said on Good Morning America.
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Apple's (NASDAQ: AAPL) history is marked by exciting launches that have transformed the company -- and maybe your lifestyle too. Vision Pro promises to make your movie screen feel 100 feet wide -- right there in your living room. A key step for Apple And, right now, Vision Pro is a key step for Apple because it brings the company into a new era of technology.
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Apple's (NASDAQ: AAPL) history is marked by exciting launches that have transformed the company -- and maybe your lifestyle too. Even if the Apple product is superior, it may be difficult to sell Vision Pro to a wide audience at such a price level. A key step for Apple And, right now, Vision Pro is a key step for Apple because it brings the company into a new era of technology.
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Apple's (NASDAQ: AAPL) history is marked by exciting launches that have transformed the company -- and maybe your lifestyle too. Budget-conscious technology fans may opt for the Meta product. This means Vision Pro could become Apple's next big thing -- even if it doesn't attract a huge audience.
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15467.0
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2023-06-07 00:00:00 UTC
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The Role of Technology in Mastercard's Growth
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AAPL
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https://www.nasdaq.com/articles/the-role-of-technology-in-mastercards-growth
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nan
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Although established a lifetime ago in 1966, Mastercard (NYSE: MA) is far from an outdated credit card company. On the contrary, it stands out among the world's most advanced financial technology (fintech) enterprises. It leverages cutting-edge technology to deliver innovative payment solutions globally to consumers, merchants, financial institutions, and governments.
Here's a look at how Mastercard is taking the lead in developing new payment technologies, as well as positioning itself for growth. As a result, it will be challenging for new fintech competitors to unseat Mastercard in the payments industry.
It catches on to the latest payment trends early
The company employs experts who constantly monitor the ever-evolving payments landscape and quickly identify emerging trends. Mastercard also partners with various organizations, including financial institutions, merchants, and governments, to remain on the cutting edge and be among the first to establish itself in many lucrative areas of the payment industry.
Here are some payment trends that Mastercard discovered early:
Increased use of contactless card payments.
Mastercard was one of the first companies to offer contactless payments in 2008, well before contactless payments became popular during the COVID-19 pandemic due to consumers viewing them as safer and cleaner than cash. During its latest earnings report, Mastercard Chief Executive Office Michael Miebach said, "Over 100 markets have reached at least 50% contactless penetration, double the number three years ago."
The growth of mobile payments.
The company has partnered with several mobile payment providers, such as Apple Pay and Alphabet's Google Pay, to make it easier for customers to make payments with their smartphones. Its latest innovation, Tap on Phone, enables businesses to approve payments from any contactless card or a mobile wallet using a device capable of near-field communication, making it easier for businesses of all sizes to accept contactless payments.
The proliferation of artificial intelligence (AI) in payments.
Mastercard is a leader in harnessing artificial intelligence (AI) to enhance the payment process. It uses AI in various ways, including fraud detection, customer service, and marketing. The company has invested heavily in AI and is collaborating with multiple partners to develop new payment solutions aided by AI.
Central banks creating digital currencies.
The company is a leader in creating solutions that can help central banks launch and manage a central bank digital currency (CBDC) for the public to use in day-to-day payments. Many governments would like to replace cash with CBDC. Mastercard has many experts working on various CBDC-related projects, including developing new payment rails, building new security features, and creating new compliance solutions.
One word of caution
Despite its considerable advantages as a first mover in many lucrative areas of the payments industry, Mastercard faces significant competition from various players in the market, including payment processors such as Visa (NYSE: V) and Stripe and online payment companies like PayPal (NASDAQ: PYPL) and Block (NYSE: SQ). This competition poses a major risk to the company, and if it ever needs to lower its fees to remain competitive, that could result in decreased profits. Additionally, Mastercard may lose market share if competitors offer better products or services, leading to lower revenue.
The company counters competition by continuing to innovate to stay ahead. If any expertise is too expensive or will take too long to develop in-house, Mastercard will acquire companies with the technology.
Some exciting acquisitions
In recent years, Mastercard has made many tuck-in acquisitions to acquire exciting technology that helps keep it at the forefront of the payment industry's technological battles. A tuck-in acquisition is a small, strategic acquisition that complements an existing business.
One of the most important acquisitions was Aiia, a developer-first open banking technology. Open banking allows third-party financial providers, such as fintechs and personal financial management (PFM) apps, to access consumers' bank financial data, giving them more control and access to new and innovative financial services -- a potentially huge business.
Some of these services include personalized financial advice, such as recommendations for investments or savings products, while PFM apps allow users to view their financial data from all their accounts in one place, helping them track spending, discover ways to save money, and better understand their overall financial health. Additionally, third-party providers can use this data to facilitate faster, more convenient account-to-account payments, which are superior to traditional methods such as checks or wire transfers.
Allied Market Research valued the global open banking market size at $13.9 billion in 2020. It expects this market to grow at a compound annual growth rate (CAGR) of 22.3% from 2023 to 2031 to $123.7 billion.
Next, Mastercard's recent acquisition of Baffin Bay Networks is another excellent step in the company's multilayered approach to security. Baffin Bay Networks is an AI-enabled automated cloud-based security service that can stop cyberattacks related to malware, ransomware, and distributed denial of service (DDoS) attacks. This acquisition will allow Mastercard to provide its customers with even greater security and peace of mind.
Last, the purchase of Dynamic Yield was yet another vital acquisition for Mastercard. Acquiring Dynamic Yield will help the company strengthen its personalization capabilities and better compete with other payment technology companies. The platform uses AI to deliver personalized customer experiences that its clients can use to personalize websites, mobile apps, email marketing campaigns, and other customer touchpoints -- a wide range of businesses already use the platform, including McDonald's, Deckers Brands, and Sephora.
Does its technology provide a reason to buy the stock?
Mastercard's payment technology gives the company a competitive advantage. Its payment processing network is one of the most secure and efficient in the world. Moreover, throughout its history, it has committed to innovation and looking for new ways to better its services to exceed customer expectations. As a result, its technology gives investors many compelling reasons to consider buying the stock.
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{%sfr%}
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Rob Starks Jr has positions in Alphabet, Block, and Mastercard. The Motley Fool has positions in and recommends Alphabet, Apple, Block, Mastercard, PayPal, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, short January 2025 $380 calls on Mastercard, and short June 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Mastercard also partners with various organizations, including financial institutions, merchants, and governments, to remain on the cutting edge and be among the first to establish itself in many lucrative areas of the payment industry. During its latest earnings report, Mastercard Chief Executive Office Michael Miebach said, "Over 100 markets have reached at least 50% contactless penetration, double the number three years ago." Mastercard has many experts working on various CBDC-related projects, including developing new payment rails, building new security features, and creating new compliance solutions.
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It leverages cutting-edge technology to deliver innovative payment solutions globally to consumers, merchants, financial institutions, and governments. The company is a leader in creating solutions that can help central banks launch and manage a central bank digital currency (CBDC) for the public to use in day-to-day payments. Open banking allows third-party financial providers, such as fintechs and personal financial management (PFM) apps, to access consumers' bank financial data, giving them more control and access to new and innovative financial services -- a potentially huge business.
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Mastercard was one of the first companies to offer contactless payments in 2008, well before contactless payments became popular during the COVID-19 pandemic due to consumers viewing them as safer and cleaner than cash. One word of caution Despite its considerable advantages as a first mover in many lucrative areas of the payments industry, Mastercard faces significant competition from various players in the market, including payment processors such as Visa (NYSE: V) and Stripe and online payment companies like PayPal (NASDAQ: PYPL) and Block (NYSE: SQ). Some exciting acquisitions In recent years, Mastercard has made many tuck-in acquisitions to acquire exciting technology that helps keep it at the forefront of the payment industry's technological battles.
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Here's a look at how Mastercard is taking the lead in developing new payment technologies, as well as positioning itself for growth. It uses AI in various ways, including fraud detection, customer service, and marketing. Open banking allows third-party financial providers, such as fintechs and personal financial management (PFM) apps, to access consumers' bank financial data, giving them more control and access to new and innovative financial services -- a potentially huge business.
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15468.0
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2023-06-07 00:00:00 UTC
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3 Penny Stocks That Could Skyrocket in the Next 12 Months
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https://www.nasdaq.com/articles/3-penny-stocks-that-could-skyrocket-in-the-next-12-months
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Penny stocks can be rewarding. Look at Acadia Pharmaceuticals (NASDAQ:ACAD), for example. In 2012, it was working on a treatment for Parkinson’s Disease Psychosis and traded for less than $1. By 2015, it was up to $43 a share, a 4,200% return. Apple (NASDAQ:AAPL), Ford Motor (NYSE:F), Advanced Micro Devices (NASDAQ:AMD) and even Novavax (NASDAQ:NVAX) were all former penny stocks, too. In short, find the top penny stocks to buy, and you can make a fortune.
Unfortunately, when it comes to top penny stocks to buy, there are also plenty of horrors. It’s why the U.S. SEC warns “Penny stocks may trade infrequently – which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock[s] should be prepared for the possibility that they may lose their whole investment.”
With that in mind, here are three top penny stocks to buy that could skyrocket in the next 12 months.
Precigen (PGEN)
Source: Maksim Shmeljov / Shutterstock.com
Precigen (NASDAQ:PGEN) is a biotech company focused on gene and cell therapies. Their UltraCAR-T platform showed anti-tumor efficacy in preclinical data released in April. Nowadays, the company’s Phase 1 study demonstrated a favorable safety profile. It also continues to be well-tolerated with no dose-limiting toxicities in treating advanced-stage platinum-resistant ovarian cancer patients.
There’s hope further studies from PGEN are as encouraging. Right now, about 300,000 women are diagnosed with ovarian cancer every year. And since early ovarian cancer is often without obvious symptoms, the disease is frequently diagnosed at an advanced stage where cancer has spread to distant parts of the body, such as the liver or lungs, according to the company. Continued positive news from their UltraCAR-T platform has the potential to take this stock higher.
Atossa Therapeutics (ATOS)
Source: Matej Kastelic / Shutterstock
Atossa Therapeutics (NASDAQ:ATOS) is another company working to develop cancer treatments. Their current focus is on breast cancer. The U.S. FDA authorized Atossa’s EVANGELINE study, a Phase 2 trial of its drug designed to treat breast cancer in premenopausal women.
In addition, according to company President and CEO, Dr. Steven Quay, “With three ongoing Phase 2 studies investigating Z-endoxifen, $103.9 million of cash and cash equivalents on our balance sheet, broad patent protection and a talented team in place, we are well positioned to change the treatment paradigm for women with dense breast tissue and those diagnosed with estrogen receptor-positive breast cancer.” Similar to PGEN this is a penny stock with growth potential if their drug trials continue to be successful.
American Lithium (AMLI)
Source: Shutterstock
Aside from biotech, the lithium story is red hot. First, according to Morningstar, “We see strong demand growth in the coming years driven by rising EV sales, as demand grows more than three times 2022 levels to 2.5 million metric tons by 2030.” Second, according to Stellantis (NYSE:STLA) CEO Carlos Tavares, there’s not enough lithium go around for the industry’s plans.
Those two catalysts alone could boost lithium penny stocks, like American Lithium (NASDAQ:AMLI). The company has also just received the first of three permits from Peruvian authorities for drilling near Quelcaya, with drilling expected to start immediately.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
The post 3 Penny Stocks That Could Skyrocket in the Next 12 Months appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL), Ford Motor (NYSE:F), Advanced Micro Devices (NASDAQ:AMD) and even Novavax (NASDAQ:NVAX) were all former penny stocks, too. The U.S. FDA authorized Atossa’s EVANGELINE study, a Phase 2 trial of its drug designed to treat breast cancer in premenopausal women. In addition, according to company President and CEO, Dr. Steven Quay, “With three ongoing Phase 2 studies investigating Z-endoxifen, $103.9 million of cash and cash equivalents on our balance sheet, broad patent protection and a talented team in place, we are well positioned to change the treatment paradigm for women with dense breast tissue and those diagnosed with estrogen receptor-positive breast cancer.” Similar to PGEN this is a penny stock with growth potential if their drug trials continue to be successful.
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Apple (NASDAQ:AAPL), Ford Motor (NYSE:F), Advanced Micro Devices (NASDAQ:AMD) and even Novavax (NASDAQ:NVAX) were all former penny stocks, too. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Penny stocks can be rewarding. Precigen (PGEN) Source: Maksim Shmeljov / Shutterstock.com Precigen (NASDAQ:PGEN) is a biotech company focused on gene and cell therapies.
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Apple (NASDAQ:AAPL), Ford Motor (NYSE:F), Advanced Micro Devices (NASDAQ:AMD) and even Novavax (NASDAQ:NVAX) were all former penny stocks, too. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Penny stocks can be rewarding. In addition, according to company President and CEO, Dr. Steven Quay, “With three ongoing Phase 2 studies investigating Z-endoxifen, $103.9 million of cash and cash equivalents on our balance sheet, broad patent protection and a talented team in place, we are well positioned to change the treatment paradigm for women with dense breast tissue and those diagnosed with estrogen receptor-positive breast cancer.” Similar to PGEN this is a penny stock with growth potential if their drug trials continue to be successful.
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Apple (NASDAQ:AAPL), Ford Motor (NYSE:F), Advanced Micro Devices (NASDAQ:AMD) and even Novavax (NASDAQ:NVAX) were all former penny stocks, too. Right now, about 300,000 women are diagnosed with ovarian cancer every year. The U.S. FDA authorized Atossa’s EVANGELINE study, a Phase 2 trial of its drug designed to treat breast cancer in premenopausal women.
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15469.0
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2023-06-07 00:00:00 UTC
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Prediction: This Stock Will Top $5 Trillion Before Apple
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AAPL
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https://www.nasdaq.com/articles/prediction%3A-this-stock-will-top-%245-trillion-before-apple
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nan
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No company on the planet commands a greater market cap than Apple (NASDAQ: AAPL) right now. Only three years ago, the iPhone maker was valued below $1 trillion. Today, its market cap stands at $2.85 trillion.
At its current pace, Apple appears to be a lock to reach $5 trillion in market cap within the next few years. But don't be surprised if it's not the first company to hit that milestone level. I predict that another stock will top $5 trillion before Apple does.
Breathing down Apple's neck
Nvidia flirted with the $1 trillion level, but there are currently only four stocks other than Apple with market caps above the $1 trillion. Two of them -- Alphabet and Amazon -- would have to grow much faster than they have recently to reach $5 trillion first.
One of the four doesn't trade on a U.S. stock exchange. Saudi Aramco's market cap is around $2.1 trillion. While it's possible the huge oil company could beat Apple to $5 trillion, I don't think it will. The demand for oil and gas simply isn't likely to increase enough to make it happen.
That leaves one contender, and it's breathing down Apple's neck. Microsoft's (NASDAQ: MSFT) market cap of $2.5 trillion puts it in a close second place to Apple. And as recently as late 2021, Microsoft briefly held the top spot based on market cap.
How Microsoft could get there first
Microsoft arguably has stronger growth drivers to get it to $5 trillion than Apple does. Several of them are related to artificial intelligence (AI).
The Seattle-based tech giant's investment in OpenAI and integration of OpenAI's ChatGPT into its products have put it at the forefront of the AI boom. I don't expect Microsoft's Bing to dethrone Google Search. But it doesn't have to for Microsoft to outpace Apple.
My take is that the most important way that Microsoft will benefit from the rapid adoption of AI is with its Azure cloud services. Azure already ranks as the second-largest cloud business, behind only Amazon Web Services (AWS). Microsoft's relationship with OpenAI could enable it to gain ground on AWS. Importantly, this is a market in which Apple doesn't compete.
I also expect that Microsoft's productivity and software development tools will enjoy increased momentum thanks to AI. Organizations that use Azure will be likely to use Microsoft's other offerings as well.
However, AI isn't the only potential catalyst that could help Microsoft leap past Apple. The company already ranks as one of the top players in gaming with its Xbox system. If Microsoft's pending acquisition of Activision Blizzard clears the remaining regulatory hurdles, it should receive a bigger boost in the hot gaming market.
What could derail the prediction
Am I 100% certain that Microsoft will top $5 trillion before Apple does? No. I do think that a few things could potentially derail my prediction.
It's possible that Apple could launch one or more new products that turbocharge its growth. While I don't think the recently announced Vision Pro mixed-reality headset will be enough on its own, Apple just might have more tricks up its sleeve.
I also acknowledge that other companies could eclipse Microsoft on the AI front. Amazon and Alphabet are formidable rivals, with deep pockets and a lot of AI expertise.
At this point, though, my bet is on Microsoft to be the first to surpass a $5 trillion market cap. And it might not take the company very long to get there.
10 stocks we like better than Microsoft
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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No company on the planet commands a greater market cap than Apple (NASDAQ: AAPL) right now. And as recently as late 2021, Microsoft briefly held the top spot based on market cap. If Microsoft's pending acquisition of Activision Blizzard clears the remaining regulatory hurdles, it should receive a bigger boost in the hot gaming market.
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No company on the planet commands a greater market cap than Apple (NASDAQ: AAPL) right now. Breathing down Apple's neck Nvidia flirted with the $1 trillion level, but there are currently only four stocks other than Apple with market caps above the $1 trillion. Microsoft's (NASDAQ: MSFT) market cap of $2.5 trillion puts it in a close second place to Apple.
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No company on the planet commands a greater market cap than Apple (NASDAQ: AAPL) right now. Breathing down Apple's neck Nvidia flirted with the $1 trillion level, but there are currently only four stocks other than Apple with market caps above the $1 trillion. Microsoft's (NASDAQ: MSFT) market cap of $2.5 trillion puts it in a close second place to Apple.
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No company on the planet commands a greater market cap than Apple (NASDAQ: AAPL) right now. I predict that another stock will top $5 trillion before Apple does. Breathing down Apple's neck Nvidia flirted with the $1 trillion level, but there are currently only four stocks other than Apple with market caps above the $1 trillion.
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15470.0
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2023-06-07 00:00:00 UTC
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1 FAANG Stock That's a Surefire Buy in June and 1 to Avoid
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https://www.nasdaq.com/articles/1-faang-stock-thats-a-surefire-buy-in-june-and-1-to-avoid
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nan
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nan
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Over long periods, Wall Street is a wealth-building machine. But during shorter time-lines, directional movements in the stock market are unpredictable. In 2021, the major U.S. stock indexes regularly achieved new closing highs. Meanwhile, last year, they all tumbled into a bear market.
When volatility strikes on Wall Street, investors often turn to the FAANG stocks for relief.
By "FAANG," I'm referring to:
Facebook, which is now part of Meta Platforms (NASDAQ: META).
Apple (NASDAQ: AAPL).
Amazon (NASDAQ: AMZN).
Netflix (NASDAQ: NFLX).
Google, which is now part of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG).
Image source: Getty Images.
The reason investors flock to these stocks is simple: They're winners. They've handily outperformed the broad-based S&P 500 over the trailing-10-year period.
Additionally, the FAANG stocks are industry leaders. Amazon accounts for nearly $0.40 of every $1 spent in online retail in the United States. Meanwhile, Meta Platforms' four top-tier social media assets (Facebook, WhatsApp, Instagram, and Facebook Messenger) lured more than half the world's adult population to at least one of its sites each month during the March-ended quarter. In other words, these are highly profitable and well-respected businesses.
But not even the FAANG stocks are built equally. As we move forward into June, one FAANG stands out as a surefire buy, while another could struggle to deliver for its shareholders.
The FAANG stock that's a surefire buy in June: Alphabet
Among the five widely owned FAANGs, it's Alphabet that sits head and shoulders above its peers as the top buy in June. Alphabet is the parent of internet search engine Google, autonomous vehicle company Waymo, and streaming platform YouTube.
The biggest concern for Alphabet is that, for the time being, it lives and dies by advertising revenue. Advertising is a cyclical industry, and weakness in ad spending tends to front-run a slowdown in the U.S. and global economy. For the past couple of quarters, we've certainly observed some ad-spending weakness, which is reflected in Alphabet's operating results.
But there's another side to this story. Even though economic slowdowns and recessions are a normal part of the economic cycle, so is the fact that recessions tend to be short-lived. All 12 recessions after World War II have lasted between two and 18 months. That compares to periods of expansion, nearly all of which have gone on for multiple years. It means Alphabet is going to benefit from advertising expansion far more often than it'll be on its heels navigating a challenging environment.
Something that certainly doesn't hurt is Google's dominant market share. According to data from GlobalStats, Google commanded a 93% share of internet search in May 2023. What's more, you'd have to go back more than eight years to find the last time Google had less than a 90% share of worldwide internet search. It's crystal clear that Google is the go-to for advertisers looking to reach a broad, or perhaps targeted, audience with their message. This should give this cash cow of an operating segment ample pricing power most of the time.
But as I've pointed out in the past, most investors are buying Alphabet stock today for the growth potential in its ancillary operating segments, such as YouTube. YouTube is an ad-and-subscription-driven platform that trails only Facebook in the number of monthly active users it draws. Short-form videos, known as YouTube Shorts, have been particularly popular and offer a way for Alphabet to improve ad-pricing power over the long run.
Cloud infrastructure service segment Google Cloud is making waves, too. Tech analytics company Canalys estimates that Google Cloud accounted for 9% of cloud service infrastructure spending in the March-ended quarter. This makes it No. 3 globally, behind only Amazon Web Services (AWS) and Microsoft's Azure.
Enterprise cloud spending is still just ramping up, and the operating margins associated with cloud services should be considerably higher than the operating margins associated with advertising. In short, Google Cloud has an opportunity to become Alphabet's leading cash-flow generator by the turn of the decade.
Lastly, Alphabet is still cheap even after the rally the FAANGs have undergone in 2023. The company's Class A shares (GOOGL) can be scooped up for 20 times Wall Street's forward-year consensus earnings and less than 14 times estimated cash flow per share in 2024. Over the past five years, investors have paid an average of 25 times forward earnings and over 18 times year-end cash flow to own shares of Alphabet (GOOGL).
Image source: Getty Images.
The FAANG stock to avoid in June: Netflix
Although the FAANG stocks have been clear winners over the long term, their individual outlooks moving forward differ. The one FAANG stock worth avoiding in June is none other than streaming-service kingpin Netflix.
Just as Alphabet has its headwinds, the FAANG to avoid has its positives. For example, Netflix's innovation is on full display. Though it's long been a leader in terms of original programming, it's what the company is doing with its subscription tiers that's raising eyebrows. The introduction of a less costly, ad-supported tier roughly seven months ago has helped the company sign up nearly 5 million people. That may be a drop in the bucket relative to its 232.5 million global subscribers, but it's a big step in reaching a new audience or retaining on-the-fence subs.
We're also seeing tangible steps forward with the company's cash-flow generation. In the years leading up to 2020, Netflix was regularly burning through its cash to expand its operations into overseas markets. But in the March-ended quarter, Netflix generated $2.18 billion in cash from operations and logged over $2.12 billion in free cash flow (FCF). The company also increased its FCF guidance for the full year by $500 million to "at least $3.5 billion."
On the other hand, competition isn't going away in streaming. While Netflix is profitable and legacy media streaming segments are losing quite a bit of money, these legacy players are also enticing a large number of users to sign up.
As of the end of the most recent quarter, Disney+ from Walt Disney claimed nearly 158 million subscribers a little over three years after launch, while Paramount Global's (NASDAQ: PARA) Paramount+ reached the 60 million subscriber mark. Even if legacy networks aren't directly competing with Netflix on an apples-to-apples basis in every respect, these brand-name businesses are undoubtedly slowing Netflix's growth potential. Per streaming guide JustWatch.com, Netflix's share of the global streaming market has fallen from 46% to 33% since the start of 2020.
Another concern for Netflix is the company's valuation. Whereas the price-to-earnings ratio is the default method of evaluating the cheapness or priciness of a publicly traded company, the FAANGs tend to reinvest a lot of their operating cash flow back into their respective businesses. This makes the price-to-cash-flow multiple a much better measure of value for this group of five stocks.
Even with significant cash-flow expansion, investors are paying 28 times Wall Street's consensus cash flow for Netflix in 2024. While this is down significantly from the multiples seen earlier this decade, it still makes Netflix the priciest FAANG stock of the group relative to cash flow.
Finally, a possible U.S. recession could sting Netflix. Though it does have multiple lower-priced streaming tiers, it's Paramount's Pluto TV that's attracting 80 million monthly active users. Pluto TV is a free service that's supported by ads, and "free" can be an especially compelling price point during an economic downturn.
With Netflix seemingly priced for perfection, avoiding this outperformer in June seems like the right move.
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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. 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, Microsoft, Netflix, and Walt Disney. The Motley Fool 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.
The views and 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). That may be a drop in the bucket relative to its 232.5 million global subscribers, but it's a big step in reaching a new audience or retaining on-the-fence subs. Whereas the price-to-earnings ratio is the default method of evaluating the cheapness or priciness of a publicly traded company, the FAANGs tend to reinvest a lot of their operating cash flow back into their respective businesses.
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Apple (NASDAQ: AAPL). Even with significant cash-flow expansion, investors are paying 28 times Wall Street's consensus cash flow for Netflix in 2024. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Netflix, and Walt Disney.
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Apple (NASDAQ: AAPL). The FAANG stock that's a surefire buy in June: Alphabet Among the five widely owned FAANGs, it's Alphabet that sits head and shoulders above its peers as the top buy in June. The FAANG stock to avoid in June: Netflix Although the FAANG stocks have been clear winners over the long term, their individual outlooks moving forward differ.
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Apple (NASDAQ: AAPL). Google, which is now part of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). But in the March-ended quarter, Netflix generated $2.18 billion in cash from operations and logged over $2.12 billion in free cash flow (FCF).
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15471.0
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2023-06-07 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
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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
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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15472.0
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2023-06-06 00:00:00 UTC
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Where Apple (AAPL) Stock Will Probably Go From Here
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AAPL
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https://www.nasdaq.com/articles/where-apple-aapl-stock-will-probably-go-from-here
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nan
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nan
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T
here are very few things in trading and markets that are predictable, but yesterday we saw a pattern play out that has been as reliable as such things can be for some time now. When Apple (AAPL) launches a new product or provides a major update to an existing one, their stock behaves in an identifiable, oft-repeated manner that I have been talking about in these pages for many years now, such as in this 2018 article.
As a major product announcement from Cupertino approaches, the hype begins to build and AAPL rises consistently for a few days, even a few weeks. Then, when the big reveal comes, nothing can live up to the level of hype generated, and the actual product is seen as a disappointment in some ways. Then there are a series of hot takes that create a sense of negativity. Of course, those who blather their uninformed opinions are the serially snarky types but we have become so accustomed to them that their consistent and often completely wrong negativity goes unchallenged.
Thus, the notion that the new iPhone, Apple Watch or whatever the product du jour is, is a disaster takes hold.
The traders who bought the stock to force it higher during the hype period scramble to take profits as all the negativity hits and the stock tumbles. Depending on how far the stock rose in the approach to the release, that drop may continue for a few days but, at some point, the market begins to recognize two important things.
First, Apple products are very rarely failures. Some would have you believe that is because the company has some kind of magic, but there is a more prosaic explanation for that. Apple is not really an innovator at the fundamental level. It never has been, or at least not since the very early days. Rather, what they do is to take others’ proven concepts, then improve them and market the resulting products well. That is a low-risk strategy, with a very low failure rate.
Second, in a company with annual sales totaling around $400 billion, the success or failure of any one product or update can only have so much effect on the stock. When things haven’t been instant hits (think AppleTV, for example), its overall massive sales and cashflow allows Apple room to let any new product grow. While each product and division is, I’m sure, encouraged to operate as its own profit center, over $80 billion a year in free cash flow does give the company flexibility in pricing and the ability to wait it out a while if a product is perhaps ahead of its time.
When investors begin to remember those two things, which usually comes a week or so after launch, the stock inevitably bounces. Investors should keep all that in mind this morning as AAPL goes through this familiar pattern, following the launch of the new VR headset, the Vision Pro. The buildup to the release saw the stock climb as usual, and then when the product was revealed, the stock immediately dropped, as has happened so often before:
The criticisms this time are ones we have heard before. The Vision Pro, at $3,499 is far too expensive, the moaners say, and it isn’t, in its first iteration, absolutely perfect. However, if we let history be our guide, neither of these complaints really matter.
Yes, the price is high, especially when compared to something like Meta's Quest line, where even the high-end Pro version comes in at around $1,000. However, what Apple has been able to do in the past is to refine an existing thing to such an extent that they create essentially their own category of “luxury” product. When that occurs, a higher price can give the impression of exclusivity and superiority, and can actually help sales in some ways. That may or may not happen here but whether it does or not, the fans of cutting edge tech who buy these kinds of things will buy it anyway.
We all know that kind of person, right? The friend or relative who just doesn’t care that what they are buying will be obsolete in a couple of years, or that prices will fall dramatically before too long. They just have to have the latest thing. There are enough of them to keep the product afloat until other complaints, like the weight of the device, are addressed in future versions.
If you are a long-term Apple investor (full disclosure, I am as well), don’t overreact to the drop in the stock that followed yesterday’s launch. It is not indicative of real problems with the product, nor is it a sign that sales will be weak, and it certainly isn’t a reason to sell. It is just what happens when Apple launches or updates something. What usually follows is a period of outperformance, so if anything, the pullback is an opportunity to add to your holdings.
The views and 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 Apple (AAPL) launches a new product or provides a major update to an existing one, their stock behaves in an identifiable, oft-repeated manner that I have been talking about in these pages for many years now, such as in this 2018 article. As a major product announcement from Cupertino approaches, the hype begins to build and AAPL rises consistently for a few days, even a few weeks. Investors should keep all that in mind this morning as AAPL goes through this familiar pattern, following the launch of the new VR headset, the Vision Pro.
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When Apple (AAPL) launches a new product or provides a major update to an existing one, their stock behaves in an identifiable, oft-repeated manner that I have been talking about in these pages for many years now, such as in this 2018 article. As a major product announcement from Cupertino approaches, the hype begins to build and AAPL rises consistently for a few days, even a few weeks. Investors should keep all that in mind this morning as AAPL goes through this familiar pattern, following the launch of the new VR headset, the Vision Pro.
|
When Apple (AAPL) launches a new product or provides a major update to an existing one, their stock behaves in an identifiable, oft-repeated manner that I have been talking about in these pages for many years now, such as in this 2018 article. As a major product announcement from Cupertino approaches, the hype begins to build and AAPL rises consistently for a few days, even a few weeks. Investors should keep all that in mind this morning as AAPL goes through this familiar pattern, following the launch of the new VR headset, the Vision Pro.
|
When Apple (AAPL) launches a new product or provides a major update to an existing one, their stock behaves in an identifiable, oft-repeated manner that I have been talking about in these pages for many years now, such as in this 2018 article. As a major product announcement from Cupertino approaches, the hype begins to build and AAPL rises consistently for a few days, even a few weeks. Investors should keep all that in mind this morning as AAPL goes through this familiar pattern, following the launch of the new VR headset, the Vision Pro.
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15473.0
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2023-06-06 00:00:00 UTC
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US STOCKS-US stocks end up as Fed, CPI loom large next week
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AAPL
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https://www.nasdaq.com/articles/us-stocks-us-stocks-end-up-as-fed-cpi-loom-large-next-week-0
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nan
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nan
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By Sruthi Shankar, Shristi Achar A and David Carnevali
June 6 (Reuters) - U.S. stocks closed up on Tuesday, helped by some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week.
Inflation data is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated, and the Fed is widely expected to hold interest rates.
Major indexes wavered as investors took a breather after pushing the S&P 500 up almost 20% from its October 2022 lows, boosted by gains in megacap stocks, a stronger-than-expected earnings season and hopes that the U.S. central bank is nearing the end of its interest rate-hike cycle.
The Dow Jones Industrial Average .DJI rose 10.42 points, or 0.03%, to 33,573.28, the S&P 500 .SPX gained 10.06 points, or 0.24%, to 4,283.85 and the Nasdaq Composite .IXIC added 46.99 points, or 0.36%, to 13,276.42.
"It looks like investors are gaining a little optimism," said Cresset Capital CIO Jack Ablin.
"The narrowness in the market where everyone was focused on the top seven names or so is starting to dissipate a little bit and that's good news."
Financials .SPSY rose 1.33% to lead gains among the 11 major S&P 500 sectors, while the KBW regional banking index .KRX jumped 5.41%. The Russell 2000 index .RUT of small-cap companies added 2.69%.
Recent economic data and dovish remarks from Fed officials have raised the odds of the Fed holding interest rates at its June 13-14 meeting.
Fed fund futures indicate traders have priced in a near 80% chance that the central bank will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool. However, they see 50% odds of another 25-basis-point rate hike in July.
Coinbase Global COIN.O plunged 12.09% after the U.S. Securities and Exchange Commission sued the crypto exchange, accusing it of illegally operating without having first registered with the regulator.
Apple Inc AAPL.O extended losses to slip 0.21%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O.
Advanced Micro Devices AMD.O rose 5.34% after Piper Sandler raised the price target on the stock to $150, the second highest on Wall Street, as per Refinitiv data.
Advancing issues outnumbered declining ones on the NYSE by a 3.47-to-1 ratio; on Nasdaq, a 2.59-to-1 ratio favored advancers.
The S&P 500 posted 17 new 52-week highs and 5 new lows; the Nasdaq Composite recorded 98 new highs and 69 new lows.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Deepa Babington)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O extended losses to slip 0.21%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar, Shristi Achar A and David Carnevali June 6 (Reuters) - U.S. stocks closed up on Tuesday, helped by some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week. Major indexes wavered as investors took a breather after pushing the S&P 500 up almost 20% from its October 2022 lows, boosted by gains in megacap stocks, a stronger-than-expected earnings season and hopes that the U.S. central bank is nearing the end of its interest rate-hike cycle.
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Apple Inc AAPL.O extended losses to slip 0.21%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar, Shristi Achar A and David Carnevali June 6 (Reuters) - U.S. stocks closed up on Tuesday, helped by some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week. Recent economic data and dovish remarks from Fed officials have raised the odds of the Fed holding interest rates at its June 13-14 meeting.
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Apple Inc AAPL.O extended losses to slip 0.21%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar, Shristi Achar A and David Carnevali June 6 (Reuters) - U.S. stocks closed up on Tuesday, helped by some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week. Inflation data is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated, and the Fed is widely expected to hold interest rates.
|
Apple Inc AAPL.O extended losses to slip 0.21%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. Major indexes wavered as investors took a breather after pushing the S&P 500 up almost 20% from its October 2022 lows, boosted by gains in megacap stocks, a stronger-than-expected earnings season and hopes that the U.S. central bank is nearing the end of its interest rate-hike cycle. Recent economic data and dovish remarks from Fed officials have raised the odds of the Fed holding interest rates at its June 13-14 meeting.
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15474.0
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2023-06-06 00:00:00 UTC
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EU's Breton cites telcos' investment gap for Big Tech network fee push
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AAPL
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https://www.nasdaq.com/articles/eus-breton-cites-telcos-investment-gap-for-big-tech-network-fee-push
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nan
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nan
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By Foo Yun Chee
BRUSSELS, June 6 (Reuters) - Europe is falling behind other regions and needs to invest massively in its telecoms network to achieve its digital goals, EU industry chief Thierry Breton said on Tuesday as he defended a push to get Big Tech to help fund the rollout of broadband and 5G.
Breton's comments put him at odds with the EU telecoms regulators' body which saidlast month it did not see a competition problem or market failure to warrant any legislation on this issue.
"The market capitalization of the EU telcos consistently falls behind that of the United States. It is better to be a telco in the U.S. than in Europe," Breton told a conference.
"In terms of 5G deployment, the EU lags behind other regions of the world. Just for some figures, 5G population coverage is 95% in the U.S. versus 72% in the EU. Adjusted for GDP, 5G investment in the EU is lower than in other regions of the world," he said.
He said Europe also needs to invest in edge cloud computing, artificial intelligence and network virtualisation.
"We have no time to lose and this is why it starts first with the infrastructure. Is our infrastructure, telecommunications in network and connectivity fit for purpose to match our digital data? My answer today is no," Breton said.
He dismissed fears that requiring some users to pay more than others would breach EU net neutrality rules which say all users should be treated equally.
"We will not touch net neutrality. It is not a question of changing net neutrality. This is embedded in our values and our Digital Decade, so please stop saying this," Breton.
Breton, who has sought feedback from all interested parties on the subject, said he has received 437 submissions. He is expected to issue a report by the end of June which will indicate his next steps.
Any legislative proposal needs to be thrashed out with EU countries and EU lawmakers before it can become law.
The issue pits Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI against Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platforms META.O, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O.
(Reporting by Foo Yun Chee; Editing by Richard Chang)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The issue pits Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI against Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platforms META.O, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O. By Foo Yun Chee BRUSSELS, June 6 (Reuters) - Europe is falling behind other regions and needs to invest massively in its telecoms network to achieve its digital goals, EU industry chief Thierry Breton said on Tuesday as he defended a push to get Big Tech to help fund the rollout of broadband and 5G. Breton's comments put him at odds with the EU telecoms regulators' body which saidlast month it did not see a competition problem or market failure to warrant any legislation on this issue.
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The issue pits Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI against Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platforms META.O, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O. By Foo Yun Chee BRUSSELS, June 6 (Reuters) - Europe is falling behind other regions and needs to invest massively in its telecoms network to achieve its digital goals, EU industry chief Thierry Breton said on Tuesday as he defended a push to get Big Tech to help fund the rollout of broadband and 5G. He dismissed fears that requiring some users to pay more than others would breach EU net neutrality rules which say all users should be treated equally.
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The issue pits Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI against Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platforms META.O, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O. By Foo Yun Chee BRUSSELS, June 6 (Reuters) - Europe is falling behind other regions and needs to invest massively in its telecoms network to achieve its digital goals, EU industry chief Thierry Breton said on Tuesday as he defended a push to get Big Tech to help fund the rollout of broadband and 5G. Breton's comments put him at odds with the EU telecoms regulators' body which saidlast month it did not see a competition problem or market failure to warrant any legislation on this issue.
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The issue pits Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI against Alphabet's GOOGL.O Google, Apple AAPL.O, Meta Platforms META.O, Netflix NFLX.O, Amazon AMZN.O and Microsoft MSFT.O. By Foo Yun Chee BRUSSELS, June 6 (Reuters) - Europe is falling behind other regions and needs to invest massively in its telecoms network to achieve its digital goals, EU industry chief Thierry Breton said on Tuesday as he defended a push to get Big Tech to help fund the rollout of broadband and 5G. Breton's comments put him at odds with the EU telecoms regulators' body which saidlast month it did not see a competition problem or market failure to warrant any legislation on this issue.
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15475.0
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2023-06-06 00:00:00 UTC
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Apple buys AR headset startup Mira - The Verge
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AAPL
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https://www.nasdaq.com/articles/apple-buys-ar-headset-startup-mira-the-verge
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nan
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nan
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Adds details from the report in 3rd paragraph and background in 2nd paragraph, disclosure in last paragraph
June 6 (Reuters) - Apple Inc AAPL.O has acquired Mira, a Los Angeles-based AR startup that makes headsets for other companies and the U.S. military, the Verge reported, citing a post from Mira CEO's private Instagram account on Monday and a person familiar with the matter.
This comes a day after Apple unveiled a costly augmented-reality headset called the Vision Pro, one of its riskiest bets since the introduction of the iPhone more than a decade ago, barging into a market dominated by Meta Platforms META.O.
Mira's military contracts include a small agreement with the U.S, Air Force and a $702,351 agreement with the Navy, according to government records and press releases, the report said.
Apple and Mira did not immediately respond to Reuters' requests for comment.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Maju Samuel)
((Samrhitha.A@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from the report in 3rd paragraph and background in 2nd paragraph, disclosure in last paragraph June 6 (Reuters) - Apple Inc AAPL.O has acquired Mira, a Los Angeles-based AR startup that makes headsets for other companies and the U.S. military, the Verge reported, citing a post from Mira CEO's private Instagram account on Monday and a person familiar with the matter. This comes a day after Apple unveiled a costly augmented-reality headset called the Vision Pro, one of its riskiest bets since the introduction of the iPhone more than a decade ago, barging into a market dominated by Meta Platforms META.O. Apple and Mira did not immediately respond to Reuters' requests for comment.
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Adds details from the report in 3rd paragraph and background in 2nd paragraph, disclosure in last paragraph June 6 (Reuters) - Apple Inc AAPL.O has acquired Mira, a Los Angeles-based AR startup that makes headsets for other companies and the U.S. military, the Verge reported, citing a post from Mira CEO's private Instagram account on Monday and a person familiar with the matter. Mira's military contracts include a small agreement with the U.S, Air Force and a $702,351 agreement with the Navy, according to government records and press releases, the report said. Apple and Mira did not immediately respond to Reuters' requests for comment.
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Adds details from the report in 3rd paragraph and background in 2nd paragraph, disclosure in last paragraph June 6 (Reuters) - Apple Inc AAPL.O has acquired Mira, a Los Angeles-based AR startup that makes headsets for other companies and the U.S. military, the Verge reported, citing a post from Mira CEO's private Instagram account on Monday and a person familiar with the matter. Mira's military contracts include a small agreement with the U.S, Air Force and a $702,351 agreement with the Navy, according to government records and press releases, the report said. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Maju Samuel) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from the report in 3rd paragraph and background in 2nd paragraph, disclosure in last paragraph June 6 (Reuters) - Apple Inc AAPL.O has acquired Mira, a Los Angeles-based AR startup that makes headsets for other companies and the U.S. military, the Verge reported, citing a post from Mira CEO's private Instagram account on Monday and a person familiar with the matter. This comes a day after Apple unveiled a costly augmented-reality headset called the Vision Pro, one of its riskiest bets since the introduction of the iPhone more than a decade ago, barging into a market dominated by Meta Platforms META.O. Mira's military contracts include a small agreement with the U.S, Air Force and a $702,351 agreement with the Navy, according to government records and press releases, the report said.
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15476.0
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2023-06-06 00:00:00 UTC
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US STOCKS-US stocks mixed as Fed, CPI loom large next week
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AAPL
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https://www.nasdaq.com/articles/us-stocks-us-stocks-mixed-as-fed-cpi-loom-large-next-week
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nan
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nan
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By Sruthi Shankar, Shristi Achar A and David Carnevali
June 6 (Reuters) - U.S. stocks were wavering on Tuesday despite some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week.
Inflation data is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated, and the Fed is widely expected to hold interest rates.
Investors were taking a breather after pushing the S&P 500 up almost 20% from its October 2022 lows, boosted by gains in megacap stocks, a stronger-than-expected earnings season and hopes that the U.S. central bank is nearing the end of its interest rate-hike cycle.
The Dow Jones Industrial Average .DJI fell 87.07 points, or 0.26%, to 33,475.79, the S&P 500 .SPX gained 0.47 points, or 0.01%, to 4,274.26 and the Nasdaq Composite .IXIC added 28.09 points, or 0.21%, to 13,257.52.
"It looks like investors are gaining a little optimism," said Cresset Capital CIO, Jack Ablin.
"The narrowness in the market where everyone was focused on the top seven names or so is starting to dissipate a little bit and that's good news."
Financials .SPSY rose 1.05% to lead gains among the 11 major S&P 500 sectors, while the KBW regional banking index .KRX jumped 4.77%. The Russell 2000 index .RUT of small-cap companies added 2.28%.
Recent economic data and dovish remarks from Fed officials have raised the odds of the Fed holding interest rates at its June 13-14 meeting.
Fed fund futures indicate traders have priced in a near 80% chance that the central bank will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool. However, they see 50% odds of another 25-basis-point rate hike in July.
The CBOE volatility index hit its lowest since July 2021, down 0.36 points at 14.37.
Coinbase Global COIN.O plunged 13.04% after the U.S. Securities and Exchange Commission sued the crypto exchange, accusing it of illegally operating without having first registered with the regulator.
Apple Inc AAPL.O extended losses to slip 0.16%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O.
Advanced Micro Devices AMD.O rose 4.20% after Piper Sandler raised the price target on the stock to $150, the second highest on Wall Street, as per Refinitiv data.
Advancing issues outnumbered declining ones on the NYSE by a 2.72-to-1 ratio; on Nasdaq, a 2.25-to-1 ratio favored advancers.
The S&P 500 posted 14 new 52-week highs and five new lows; the Nasdaq Composite recorded 92 new highs and 62 new lows.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi and Deepa Babington)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O extended losses to slip 0.16%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar, Shristi Achar A and David Carnevali June 6 (Reuters) - U.S. stocks were wavering on Tuesday despite some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week. Investors were taking a breather after pushing the S&P 500 up almost 20% from its October 2022 lows, boosted by gains in megacap stocks, a stronger-than-expected earnings season and hopes that the U.S. central bank is nearing the end of its interest rate-hike cycle.
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Apple Inc AAPL.O extended losses to slip 0.16%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar, Shristi Achar A and David Carnevali June 6 (Reuters) - U.S. stocks were wavering on Tuesday despite some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week. Recent economic data and dovish remarks from Fed officials have raised the odds of the Fed holding interest rates at its June 13-14 meeting.
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Apple Inc AAPL.O extended losses to slip 0.16%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar, Shristi Achar A and David Carnevali June 6 (Reuters) - U.S. stocks were wavering on Tuesday despite some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week. Inflation data is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated, and the Fed is widely expected to hold interest rates.
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Apple Inc AAPL.O extended losses to slip 0.16%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. Recent economic data and dovish remarks from Fed officials have raised the odds of the Fed holding interest rates at its June 13-14 meeting. Fed fund futures indicate traders have priced in a near 80% chance that the central bank will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool.
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15477.0
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2023-06-06 00:00:00 UTC
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Small-Caps: 3 Reasons the Worst is Over
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AAPL
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https://www.nasdaq.com/articles/small-caps%3A-3-reasons-the-worst-is-over
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nan
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nan
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2023 has been one of the most divergent and lopsided years in recent memory in equities markets. After value dominated 2022, tech is back to being king this year - bolstered by the AI revolution and big forward expectations in AI-related stocks such as Rambus (RMBS) and Nvidia (NVDA).
Image Source: Zacks Investment Research
Pictured: NVDA EPS Estimates
Even within tech, there are significant divergences. The Nasdaq 100 ETF (QQQ) is up by a supersized 33% year-to-date. Conversely, the Nasdaq 100 Equal Weight ETF (QQQE) is only higher by ~17% year-to-date. In other words, mega-cap tech stocks such as Microsoft (MSFT), Apple (AAPL), and Advanced Micro Devices (AMD) are responsible for much of the market’s positive performance.
Meanwhile, the dramatic hike in interest rates had the opposite effect on banks that most predicted. Usually, interest rate hikes are positive for banks. However, several regional banks were ill-prepared for the magnitude and speed of the rate hikes. The Russell 2000 Small Cap Index ETF (IWM) has dramatically underperformed due to its high composition of regional banks. IWM is up a minuscule 4.78% year-to-date. Below are 3 reasons why the current trend of tech strength and small-cap weakness is likely to close over the next few months:
The spread between the Nasdaq 100 and the Russell 2000 Index performance is at historic levels.
Image Source: Zacks Investment Research
In the fashion world, if you wait long enough, the old style becomes new and in vogue again. Finance is like fashion; it tends to mean revert to old trends if you wait long enough. For example, last year, value stocks outperformed while tech underperformed. Because small caps have underperformed for months, one would expect them to begin to outperform again soon based on historical precedent. Furthermore, the long-term chart of IWM shows that the index is constructively testing support thus far.
Image Source: Zacks Investment Research
Lastly, the QQQ is higher for seven straight weeks and is extended by three standard deviations from its 50-day moving average. Typically, when an index becomes extended by such a large magnitude, it must digest. Because the IWM is just beginning to break above its 200-day moving average, investors may rotate some funds in that direction.
Image Source: Zacks Investment Research
Regional Banking Rebound: At the heart of the small-cap weakness are the regional banking woes and relative underperformance. Though the Regional Banking ETF (KRE) has underperformed dramatically this year, the chart shows signs that the trend may be turning. Late last week, KRE and select regional banks such as BankUnited (BKU) closed above the 50-day moving average for the first time since March. Today, the KRE index is jumping more than 4% on heavy volume.
Image Source: Zacks Investment Research
Beyond the solid technical performance, the pullback in price in many banks is attracting value investors such as Warren Buffett. In the most recent 13F disclosures, “The Oracle of Omaha” and investing legend Michael Burry took on positions in select banks such as Capital One Financial (COF).
Seasonality: Over the past 20 years, IWM has performed the best in June out of any of the index ETFs. IWM is higher 60% of the time with an average performance of +0.5%. Meanwhile, the S&P 500 Index ETF (SPY) is higher only 45% of the time on average, with an average gain of -0.4%.
Conclusion
The historical spread between tech and small caps, a rebounding banking sector, and strong seasonal trends favor outperformance in small-cap stocks over the next few weeks.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Capital One Financial Corporation (COF) : Free Stock Analysis Report
Rambus, Inc. (RMBS) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
BankUnited, Inc. (BKU) : Free Stock Analysis Report
iShares Russell 2000 ETF (IWM): ETF Research Reports
SPDR S&P Regional Banking ETF (KRE): ETF Research Reports
Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): 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 other words, mega-cap tech stocks such as Microsoft (MSFT), Apple (AAPL), and Advanced Micro Devices (AMD) are responsible for much of the market’s positive performance. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports BankUnited, Inc. (BKU) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports To read this article on Zacks.com click here. After value dominated 2022, tech is back to being king this year - bolstered by the AI revolution and big forward expectations in AI-related stocks such as Rambus (RMBS) and Nvidia (NVDA).
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In other words, mega-cap tech stocks such as Microsoft (MSFT), Apple (AAPL), and Advanced Micro Devices (AMD) are responsible for much of the market’s positive performance. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports BankUnited, Inc. (BKU) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports To read this article on Zacks.com click here. Image Source: Zacks Investment Research Regional Banking Rebound: At the heart of the small-cap weakness are the regional banking woes and relative underperformance.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports BankUnited, Inc. (BKU) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports To read this article on Zacks.com click here. In other words, mega-cap tech stocks such as Microsoft (MSFT), Apple (AAPL), and Advanced Micro Devices (AMD) are responsible for much of the market’s positive performance. The Russell 2000 Small Cap Index ETF (IWM) has dramatically underperformed due to its high composition of regional banks.
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In other words, mega-cap tech stocks such as Microsoft (MSFT), Apple (AAPL), and Advanced Micro Devices (AMD) are responsible for much of the market’s positive performance. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports BankUnited, Inc. (BKU) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports To read this article on Zacks.com click here. For example, last year, value stocks outperformed while tech underperformed.
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15478.0
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2023-06-06 00:00:00 UTC
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Apple's Vision Pro an impressive headset with few likely buyers, analysts say
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AAPL
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https://www.nasdaq.com/articles/apples-vision-pro-an-impressive-headset-with-few-likely-buyers-analysts-say
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nan
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By Aditya Soni
June 6 (Reuters) - Analysts lauded Apple's AAPL.O Vision Pro on Tuesday for its impressive technology, but warned that it will be a few years before the $3,499 augmented reality headset sees widespread adoption.
The device, which investors treated with a lukewarm reception, marked the company's first new product line since the launch of the Apple Watch nearly a decade ago.
Chief Executive Officer Tim Cook said it could spark the dawn of "spatial computing", where digital content blends with the physical world, just like how the iPhone changed the world of mobiles.
That vision, analysts said, could take some time to materialize because the high price tag will likely dissuade most buyers and the product does not have any clear use beyond entertainment in a still nascent augmented reality (AR) market.
"Apple proved they have a vision for the role AR technology could play for consumers ... and Vision Pro looked sleek/differentiated versus incumbents and performed with clear potential," Morgan Stanley analysts said.
"However, the Vision Pro is not ready for mass consumption," they added, pointing to a bulky external battery pack and the lack of a "killer app", among other issues.
Some analysts also warned that cheaper AR offerings from market leader Meta Platforms META.O could be an impediment as the Meta Quest 2 retails at $299 and its successor unveiled last week, Meta Quest 3, is priced at $499.
"Although Apple will give Meta the biggest challenge since the Facebook owner's entry into the segment, it won't be able to overtake Meta in terms of shipments," said Harmeet Singh Walia, senior analyst at Counterpoint Research.
But he added that Apple may not need to dominate the market in terms of shipments to become the most prominent player.
"As with smartphones, in which Apple usually has well over 80% share of profitability with around 20% share of shipments, it may become the most successful player without becoming most widely adopted," Walia said.
The uncertainty regarding Vision Pro sales also drove a wide range of predictions on its expected shipments once the device goes on sale next year.
KGI Securities analyst Christine Wang said she expected shipments of 200,000 in the first year, while Credit Suisse predicted Apple could ship over 1 million units in the period.
For comparison, Apple sold more than 1.4 million iPhones in the first year after launch, garnering $630 million in sales.
Apple's shares were down 0.7% on Tuesday.
Still, several analysts believe the company has created a "no lose" situation for itself through its move into AR.
James Cordwell of Atlantic Equities said "if the device were eventually to drive a platform shift from mobile to AR, Apple has positioned itself to extend its leadership from the smartphone era to that new epoch."
"If it fails to gain traction, then it will most likely be because VR/AR is a technological dead end, thus extending the dominance of the smartphone as the primary consumer device."
(Reporting by Aditya Soni; Editing by Shounak Dasgupta)
((Aditya.Soni@thomsonreuters.com; +91 80 6749 1130))
The views and 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 Aditya Soni June 6 (Reuters) - Analysts lauded Apple's AAPL.O Vision Pro on Tuesday for its impressive technology, but warned that it will be a few years before the $3,499 augmented reality headset sees widespread adoption. That vision, analysts said, could take some time to materialize because the high price tag will likely dissuade most buyers and the product does not have any clear use beyond entertainment in a still nascent augmented reality (AR) market. James Cordwell of Atlantic Equities said "if the device were eventually to drive a platform shift from mobile to AR, Apple has positioned itself to extend its leadership from the smartphone era to that new epoch."
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By Aditya Soni June 6 (Reuters) - Analysts lauded Apple's AAPL.O Vision Pro on Tuesday for its impressive technology, but warned that it will be a few years before the $3,499 augmented reality headset sees widespread adoption. That vision, analysts said, could take some time to materialize because the high price tag will likely dissuade most buyers and the product does not have any clear use beyond entertainment in a still nascent augmented reality (AR) market. The uncertainty regarding Vision Pro sales also drove a wide range of predictions on its expected shipments once the device goes on sale next year.
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By Aditya Soni June 6 (Reuters) - Analysts lauded Apple's AAPL.O Vision Pro on Tuesday for its impressive technology, but warned that it will be a few years before the $3,499 augmented reality headset sees widespread adoption. "Apple proved they have a vision for the role AR technology could play for consumers ... and Vision Pro looked sleek/differentiated versus incumbents and performed with clear potential," Morgan Stanley analysts said. "Although Apple will give Meta the biggest challenge since the Facebook owner's entry into the segment, it won't be able to overtake Meta in terms of shipments," said Harmeet Singh Walia, senior analyst at Counterpoint Research.
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By Aditya Soni June 6 (Reuters) - Analysts lauded Apple's AAPL.O Vision Pro on Tuesday for its impressive technology, but warned that it will be a few years before the $3,499 augmented reality headset sees widespread adoption. The uncertainty regarding Vision Pro sales also drove a wide range of predictions on its expected shipments once the device goes on sale next year. "If it fails to gain traction, then it will most likely be because VR/AR is a technological dead end, thus extending the dominance of the smartphone as the primary consumer device."
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15479.0
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2023-06-06 00:00:00 UTC
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Apple (AAPL) Unveils Mixed Reality Device Vision Pro at WWDC23
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-unveils-mixed-reality-device-vision-pro-at-wwdc23
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nan
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Apple AAPL is finally joining the mixed reality bandwagon with the launch of Apple Vision Pro, “a revolutionary spatial computer that seamlessly blends digital content with the physical world,” at this year’s Worldwide Developer’s Conference.
The iPhone maker also announced the 15-inch MacBook Air, a new Mac Studio and Mac Pro. Moreover, Apple introduced iOS 17, watchOS 10, iPadOS 17 and macOS Sonoma.
The company’s shares hit a 52-week high of $184.95 on Jun 5 and closed at $179.58, returning 38.2% year to date, outperforming the Zacks Computer & Technology sector’s growth of 12.6%.
Vision Pro to Boost Apple’s Footprint in Mixed Reality
Apple Vision Pro brings a fully three-dimensional user interface, controlled by a user’s eyes, hands, and voice for navigation.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Powered by visionOS, Vision Pro features an ultra-high-resolution display system that packs 23 million pixels across two displays and custom Apple silicon in a unique dual-chip design.
Apple Vision Pro is supported by an all-new App Store where users can discover apps and content from developers apart from familiar iPhone and iPad apps. Users can navigate through apps “by simply looking at them, tapping their fingers to select, flicking their wrist to scroll, or using voice to dictate.”
Moreover, Apple Vision Pro features EyeSight, which helps users stay connected with their surroundings.
The introduction of Apple Vision Pro intensifies competition in the mixed reality domain that is currently dominated by the likes of Microsoft MSFT HoloLens, Meta Platforms’ META Oculus, HP HPQ and others.
Microsoft’s HoloLens 2 comes in a variety of editions, including industrial and development options. HoloLens 2 headset enables six degrees of freedom tracking, with spatial mapping and mixed reality capture.
Meta is also set to launch its next-generation of Oculus device later this year. It launched Oculus 2 in September 2020.
HP, on the other hand, has begun producing headsets for both VR and MR environments. The HP Windows Mixed Reality headset is a streamlined device with integrated motion tracking and a 2-in-1 cable for pairing USB 3 and HDMI connections.
Vision Pro to Boost Product and Services Revenues
Apple’s latest device will surely benefit product sales, which accounted for 82.3% of first-quarter fiscal 2023 revenues.
Meanwhile, the Services portfolio has emerged as Apple’s new cash cow. This Zacks Rank #3 (Hold) company had more than 935 million paid subscribers across its Services portfolio at the end of the fiscal second quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The growing adoption of services like Apple TV+, Apple Arcade, Apple News+, Apple Card and Apple Fitness+ drives Services revenue growth. The newly announced App Store for Vision Pro is expected to further drive growth.
In the first quarter of fiscal 2023, Apple’s Services revenues grew 6.4% from the year-ago quarter to $20.77 billion and accounted for 17.7% of sales.
Free Report: Top EV Battery Stocks to Buy Now
Just-released report reveals 5 stocks to profit as millions of EV batteries are made. Elon Musk tweeted that lithium prices have gone to "insane levels," and they're likely to keep climbing. As a result, a handful of lithium battery stocks are set to skyrocket. Access this report to discover which battery stocks to buy and which to avoid.
Download free today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is finally joining the mixed reality bandwagon with the launch of Apple Vision Pro, “a revolutionary spatial computer that seamlessly blends digital content with the physical world,” at this year’s Worldwide Developer’s Conference. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The company’s shares hit a 52-week high of $184.95 on Jun 5 and closed at $179.58, returning 38.2% year to date, outperforming the Zacks Computer & Technology sector’s growth of 12.6%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is finally joining the mixed reality bandwagon with the launch of Apple Vision Pro, “a revolutionary spatial computer that seamlessly blends digital content with the physical world,” at this year’s Worldwide Developer’s Conference. The introduction of Apple Vision Pro intensifies competition in the mixed reality domain that is currently dominated by the likes of Microsoft MSFT HoloLens, Meta Platforms’ META Oculus, HP HPQ and others.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is finally joining the mixed reality bandwagon with the launch of Apple Vision Pro, “a revolutionary spatial computer that seamlessly blends digital content with the physical world,” at this year’s Worldwide Developer’s Conference. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote Powered by visionOS, Vision Pro features an ultra-high-resolution display system that packs 23 million pixels across two displays and custom Apple silicon in a unique dual-chip design.
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Apple AAPL is finally joining the mixed reality bandwagon with the launch of Apple Vision Pro, “a revolutionary spatial computer that seamlessly blends digital content with the physical world,” at this year’s Worldwide Developer’s Conference. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The introduction of Apple Vision Pro intensifies competition in the mixed reality domain that is currently dominated by the likes of Microsoft MSFT HoloLens, Meta Platforms’ META Oculus, HP HPQ and others.
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15480.0
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2023-06-06 00:00:00 UTC
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Is Unity Stock a Buy as It Gets a Major Boost From Apple?
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AAPL
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https://www.nasdaq.com/articles/is-unity-stock-a-buy-as-it-gets-a-major-boost-from-apple
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nan
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nan
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App developers will be able to use Unity Software's (NYSE: U) tools to create immersive applications for Apple's (NASDAQ: AAPL) new visual computing headset, the Vision Pro. Could this be a massive win for Unity stock investors? Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of June 6, 2023. The video was published on June 6, 2023.
10 stocks we like better than Unity Software
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Unity Software wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of June 5, 2023
Jose Najarro has positions in Unity Software. The Motley Fool has positions in and recommends Apple and Unity Software. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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App developers will be able to use Unity Software's (NYSE: U) tools to create immersive applications for Apple's (NASDAQ: AAPL) new visual computing headset, the Vision Pro. Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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App developers will be able to use Unity Software's (NYSE: U) tools to create immersive applications for Apple's (NASDAQ: AAPL) new visual computing headset, the Vision Pro. 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 Jose Najarro has positions in Unity Software.
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App developers will be able to use Unity Software's (NYSE: U) tools to create immersive applications for Apple's (NASDAQ: AAPL) new visual computing headset, the Vision Pro. 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.
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App developers will be able to use Unity Software's (NYSE: U) tools to create immersive applications for Apple's (NASDAQ: AAPL) new visual computing headset, the Vision Pro. See the 10 stocks *Stock Advisor returns as of June 5, 2023 Jose Najarro has positions in Unity Software. The Motley Fool has positions in and recommends Apple and Unity Software.
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15481.0
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2023-06-06 00:00:00 UTC
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Want to Get Richer? 2 Unstoppable Growth Stocks You Can Buy and Hold for Years
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AAPL
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https://www.nasdaq.com/articles/want-to-get-richer-2-unstoppable-growth-stocks-you-can-buy-and-hold-for-years
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nan
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nan
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Growth stocks aren't boosting investors' returns at the rate they were a few years ago, but it's not all doom and gloom. Great businesses continue to thrive in what is arguably an uncertain macroeconomic environment that has investors divided about what to do with their money.
Here are two companies performing well on a business level that beg a second look from investors regarding their stocks. Both of these unstoppable growth stocks look ripe for multi-year buy-and-hold investments in 2023 and beyond.
1. Fiverr International
Fiverr International (NYSE: FVRR) got increased attention from investors in the pandemic era when millions of people were forced to stay at home for extended periods which resulted in a notable boom in remote work and gig work. The growth has certainly slowed from that peak pandemic period. Still, there's a lot to like about this stock, particularly when you evaluate its growth story in light of the bigger picture of the industry in which it operates and its progress over the last few years.
Fiverr finished out the first quarter of this year with 4.3 million active buyers of freelance services on its platform, and spending per buyer hitting $262 (spending, in this case, is the 5.5% service fee Fiverr collects on top of the fees that go to the seller for services rendered). These two figures represented increases of 0.3% and 4% from the year-ago period. Taking a step back, that active buyer count was up 74% compared to the same quarter in 2020, while spending per buyer rose 48% on a three-year clip.
Fiverr continues to expand the vast range of services (gigs) that freelancers can offer to clients and businesses on the platform as well. For example, the rise of AI has pervaded many segments of the labor economy, and the gig economy is no different. Even as searches and offerings for AI-focused gigs have expanded rapidly in recent months, Fiverr's management has been clear that these tools aren't replacing the need for actual gig workers. The first-quarter earnings report noted:
We are also seeing higher quality of work deliveries as freelancers leverage the latest generative AI tools. Fiverr's marketplace is highly dynamic. Just as consumer preferences continue to evolve in a physical goods marketplace, on Fiverr, services and job skills continue to evolve as well. When new waves of technology advancements occur, these often are the golden moments for category expansion on our marketplace followed by an influx of supply and demand. We believe the recent advancement of AI technology creates such a golden moment to lean into our category expansion as a long-term growth driver.
Between 2019 and 2022, Fiverr's revenue expanded at a compound annual growth rate of 47%. Compare that to the pace of growth of the broader global gig economy, which is expected to witness a compound annual growth rate of 16% in the seven-year period between 2021 and 2028, according to Business Research Insights. It's also worth noting that in 2022, 27% of Fiverr's revenue was from new buyers, while an incredible 63% was from repeat buyers. In short, once a buyer -- whether that be a solo entrepreneur or a large enterprise -- joins the Fiverr platform, they tend to stay with it for a long time. Fiverr's growth journey may be changing, but its business looks more relevant than ever.
2. Apple
Apple (NASDAQ: AAPL) made headlines this week for announcing a significant new hardware product: its eagerly awaited mixed reality headset. The product, officially called the Vision Pro, made its first public appearance at the Worldwide Developers Conference. The headset won't be commercially available until early next year, and it will come with a $3,499 price tag.
Vision Pro is a virtual reality headset, an augmented reality headset and it also functions as a 3D camera. Beyond running Apple's app offerings, the headset will be able to integrate with a wide range of third-party apps being created by well-known industry leaders. Microsoft and Walt Disney are just two of the companies building apps to operate on Vision Pro. Users will be able to navigate Microsoft's productivity apps from the headset or stream Disney+ shows. The Vision Pro will also enable pairings with other Apple products. It's powered by Apple's industry-leading M2 chip, and also runs a brand new R1 chip which is designed to reduce the potential for motion sickness.
When it's released, Apple hopes to seize a significant share in the highly fragmented multi-billion-dollar virtual reality headset market. According to Fortune Business Insights, the global virtual reality market was valued at about $12 billion in 2021 but is expected to balloon to a valuation of $227 billion by the year 2029. That's a compound annual growth rate of 45%. The company's focus on creating a mixed reality headset that can service a wide range of user needs, rather than focusing on gaming as the primary use case, looks like a solid strategy to capture added market share.
Beyond the Vision Pro, Apple announced several other updates this week, including a new Macbook Pro. Importantly, the company still makes most of its revenue from iPhone sales. The second-most-prominent slice of its sales comes from its services segment, which revolves mostly around subscription-based products like Apple Music.
Over the trailing 12 months, Apple pulled in revenue of $385 billion and net income of $94 billion. It also produced operating cash flow to the tune of $110 billion. While a challenging macro environment affected Apple's pace of growth, the tech giant is still a highly profitable cash machine that continues to evolve to meet the changing needs of its customers while generating growth from its industry-leading products. The future still looks very exciting for Apple and its long-term shareholders.
10 stocks we like better than Fiverr International
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Rachel Warren has positions in Apple. The Motley Fool has positions in and recommends Apple, Fiverr International, Microsoft, and Walt Disney. The Motley Fool 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) made headlines this week for announcing a significant new hardware product: its eagerly awaited mixed reality headset. The first-quarter earnings report noted: We are also seeing higher quality of work deliveries as freelancers leverage the latest generative AI tools. We believe the recent advancement of AI technology creates such a golden moment to lean into our category expansion as a long-term growth driver.
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Apple Apple (NASDAQ: AAPL) made headlines this week for announcing a significant new hardware product: its eagerly awaited mixed reality headset. Fiverr finished out the first quarter of this year with 4.3 million active buyers of freelance services on its platform, and spending per buyer hitting $262 (spending, in this case, is the 5.5% service fee Fiverr collects on top of the fees that go to the seller for services rendered). The Motley Fool has positions in and recommends Apple, Fiverr International, Microsoft, and Walt Disney.
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Apple Apple (NASDAQ: AAPL) made headlines this week for announcing a significant new hardware product: its eagerly awaited mixed reality headset. Fiverr International Fiverr International (NYSE: FVRR) got increased attention from investors in the pandemic era when millions of people were forced to stay at home for extended periods which resulted in a notable boom in remote work and gig work. Fiverr finished out the first quarter of this year with 4.3 million active buyers of freelance services on its platform, and spending per buyer hitting $262 (spending, in this case, is the 5.5% service fee Fiverr collects on top of the fees that go to the seller for services rendered).
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Apple Apple (NASDAQ: AAPL) made headlines this week for announcing a significant new hardware product: its eagerly awaited mixed reality headset. Growth stocks aren't boosting investors' returns at the rate they were a few years ago, but it's not all doom and gloom. Between 2019 and 2022, Fiverr's revenue expanded at a compound annual growth rate of 47%.
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15482.0
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2023-06-06 00:00:00 UTC
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QuantumScape: The ‘Forever Battery’ Stock With Millionaire-Maker Potential
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AAPL
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https://www.nasdaq.com/articles/quantumscape%3A-the-forever-battery-stock-with-millionaire-maker-potential
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “QuantumScape: The ‘Forever Battery’ Stock With Millionaire-Maker Potential” was previously published in March 2023. It has since been updated to include the most relevant information available.
Imagine having a $10,000 investment that grew to over $40 million dollars. Well, let me let you in on a little secret. The best way to become a millionaire is to invest in a small group of startups with founders who believe their company can change the world.
Anyone can do this. But the difference between “anyone” and those who become millionaires is the discipline to buy, hold through intense volatility, and wait for the company to indeed change the world.
If you’d done that with computer stocks like Microsoft (MSFT) and Apple (AAPL) in the 1980s, you would’ve turned your $10,000 investments into more than $42 million today:
Had you done it with internet stocks like Amazon (AMZN), in the late ’90s, you’d have turned $10,000 into more than $10 million. Had you done it with cloud stocks like Netflix (NFLX) in the late aughts, you’d have turned $10,000 into a cool $2.5 million today. While, in the early 2010s, a $10,000 investment into electric vehicle (EV) powerhouse Tesla (TSLA) would be worth more than $1 million today.
We’re literally talking about “Millionaire-Maker” opportunities here – not the 7% per year you get with an index fund or the 3% dividend yield you get with Coca-Cola (KO). At that rate, you could still turn $10,000 into a million bucks… by 2091.
Most folks don’t want to wait until their rolling in their graves in 2091 to become millionaires. That’s why we’re all about turning thousands into millions by taking big bets on small companies with world-changing potential.
And today, I’d like to introduce you to one of our favorite potential millionaire-maker stocks.
A New Type of Battery to Change the World
One of the world’s most hyped-up investment megatrends these days is the Electric Vehicle Revolution. That is, investors and consumers alike seem convinced that the world is rapidly shifting toward electric cars, busses, planes, and more. Everything’s going electric!
But the plain truth about the EV Revolution is that everything won’t go electric until we make better batteries.
To understand why, let’s take a quick trip back to chemistry class…
Batteries comprise three things: a cathode, an anode, and an electrolyte. Batteries work by flowing ions between a cathode and anode through the electrolyte.
Conventional lithium-ion batteries are built on liquid battery chemistry. That is, they comprise a solid cathode and anode, with a liquid electrolyte solution connecting the two.
These batteries have worked wonders for years. But due to the physical constraints of dealing with a liquid electrolyte, they are now reaching their limit in terms of energy cell density. That basically means that if we want our phones, watches, and electric cars to last longer and charge faster, we need a fundamentally different battery.
That breakthrough is the solid-state battery.
With solid-state batteries (SSBs) the name pretty much says it all. Take the liquid electrolyte solution in conventional batteries, compress it into a solid, and create a small, hypercompact solid battery that lasts far longer and charges far faster.
Of course, the implications of SSB chemistry are huge.
Solid-state batteries will make our phones hold a charge for days at a time. They’ll enable our smartwatches to charge in seconds. And, yes, they’ll power electric cars that can drive for thousands of miles on a single charge.
That’s why SSBs are dubbed by insiders as “forever batteries.” It’s why these forever batteries are the critical technology needed to propel the EV Revolution into its next phase of supercharged growth.
QuantumScape: The Company Solving the “Forever Battery” Challenges
While the theory behind solid-state batteries is super-exciting, the application of such next-generation batteries has been essentially non-existent to-date.
Why? Two major challenges.
First, solid-state batteries are exceptionally expensive to make. Second, they tend to short-circuit because of something called “dendrites.” These are cracks that form in the solid electrolyte substance over time.
But an exciting and promising tech startup by the name of QuantumScape (QS) is solving these problems as we speak. And it’s turning the promising theory of solid-state batteries into a disruptive reality.
Specifically, QuantumScape is a solid-state battery maker that has developed a novel breakthrough technology platform solving the cost and performance challenges of SSBs.
QS employs an anode-less battery cell design that eliminates anode manufacturing costs, bringing its all-in battery costs to 17% lower than all-in costs for traditional lithium-ion batteries. QuantumScape also developed a streamlined process for sourcing its materials, which should allow for scalable and cost-effective battery manufacturing.
Meanwhile, the company’s proprietary design includes a ceramic electrolyte with high dendritic resistance. And therefore, QuantumScape’s batteries don’t have dendrite problems.
Thus, by addressing the two largest short-comings of solid-state battery chemistry, QuantumScape has positioned itself to create a new class of EV batteries. Batteries that are cheaper, last longer, charge faster, and are overall a better solution than the Lithium-ion status quo.
On the basis alone, QS stock has Millionaire-Maker potential.
QuantumScape Is More Than Just Talk
In December 2020, QuantumScape released performance data for its solid-state battery technology, which broadly underscored that these batteries are a complete game-changer.
The data, based on testing of single-layer battery cells, shows that QuantumScape’s batteries can do the following:
Charge very quickly: You can recharge them up to 80% capacity in just 15 minutes.
Last “forever”: These batteries are capable of traveling hundreds of thousands of miles.
Work in any condition: QS’ batteries worked even in a test at -30 degrees Celsius.
And that was just data based on single-layer testing.
In late 2021, QuantumScape illustrated that its forever battery performed in 4-layer formats up to 800 charging cycles. A quarter later, the company scaled successful results to 10-layer batteries up to 800 cycles. And last year, QuantumScape successfully demonstrated its 16-layer battery’s successful results at over 500 cycles. Those are total game-changing features in the EV battery world.
Plus, this past December, the company shipped its first 24-layer prototype lithium-metal battery cells to automotive manufacturers for testing. This is a major step toward the commercialization of solid-state batteries.
Need I say more? Solid-state batteries have arrived, and they’re going to change the world. Now is the time to buy the stocks powering this world-changing battery revolution.
QuantumScape stock is one such stock. But it is far from the only one…
The Final Word
Solid-state batteries are the future, and they represent one of the most promising technological breakthroughs of the 2020s. Just like computers represented one of the most promising technological breakthroughs of the 1980s; the internet represented one of the most promising technological breakthroughs of the 1990s; the cloud represented one of the most promising technological breakthroughs of the 2000s.
Had you bought the stocks when they were still in the early stages of changing the world, you would’ve turned a comparatively small $10,000 investment into multi-million-dollar paydays.
Unfortunately, you can’t go back in time. Fortunately, history is doing what it does best – repeating itself. Now you have another shot to get it right… another shot at making millions through big bets on tiny stocks.
Mark my words: Some of the stock market’s biggest winners in the 2020s will be solid-state battery makers. QuantumScape projects as one of those mega-winners. But it won’t be alone. In fact, it may not even be the biggest winner…
Rather, that title may be reserved for one of the other high-growth EV and battery makers we’ve been watching for the past several months.
Uncover the potential fortune-minters at the epicenter of one of the biggest technological revolutions in history.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post QuantumScape: The ‘Forever Battery’ Stock With Millionaire-Maker 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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If you’d done that with computer stocks like Microsoft (MSFT) and Apple (AAPL) in the 1980s, you would’ve turned your $10,000 investments into more than $42 million today: Had you done it with internet stocks like Amazon (AMZN), in the late ’90s, you’d have turned $10,000 into more than $10 million. That basically means that if we want our phones, watches, and electric cars to last longer and charge faster, we need a fundamentally different battery. Specifically, QuantumScape is a solid-state battery maker that has developed a novel breakthrough technology platform solving the cost and performance challenges of SSBs.
|
If you’d done that with computer stocks like Microsoft (MSFT) and Apple (AAPL) in the 1980s, you would’ve turned your $10,000 investments into more than $42 million today: Had you done it with internet stocks like Amazon (AMZN), in the late ’90s, you’d have turned $10,000 into more than $10 million. That’s why we’re all about turning thousands into millions by taking big bets on small companies with world-changing potential. Specifically, QuantumScape is a solid-state battery maker that has developed a novel breakthrough technology platform solving the cost and performance challenges of SSBs.
|
If you’d done that with computer stocks like Microsoft (MSFT) and Apple (AAPL) in the 1980s, you would’ve turned your $10,000 investments into more than $42 million today: Had you done it with internet stocks like Amazon (AMZN), in the late ’90s, you’d have turned $10,000 into more than $10 million. QuantumScape: The Company Solving the “Forever Battery” Challenges While the theory behind solid-state batteries is super-exciting, the application of such next-generation batteries has been essentially non-existent to-date. QS employs an anode-less battery cell design that eliminates anode manufacturing costs, bringing its all-in battery costs to 17% lower than all-in costs for traditional lithium-ion batteries.
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If you’d done that with computer stocks like Microsoft (MSFT) and Apple (AAPL) in the 1980s, you would’ve turned your $10,000 investments into more than $42 million today: Had you done it with internet stocks like Amazon (AMZN), in the late ’90s, you’d have turned $10,000 into more than $10 million. That breakthrough is the solid-state battery. Specifically, QuantumScape is a solid-state battery maker that has developed a novel breakthrough technology platform solving the cost and performance challenges of SSBs.
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15483.0
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2023-06-06 00:00:00 UTC
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US STOCKS-Wall St slips as mixed data fuels Fed policy uncertainty
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slips-as-mixed-data-fuels-fed-policy-uncertainty
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nan
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nan
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By Sruthi Shankar and Shristi Achar A
June 6 (Reuters) - Wall Street's main indexes slipped on Tuesday as investors assessed odds of an interest rate pause by the Federal Reserve at its policy meeting next week, with mixed economic data adding to uncertainty around the rate path.
The U.S. services sector barely grew in May as new orders slowed, data on Monday showed, pushing a measure of prices paid by businesses for inputs to a three-year low.
While that signaled the Fed's monetary tightening was cooling the world's largest economy, it followed strong monthly jobs data last week, clouding the outlook for the Fed's policy.
"The difference between skip and pause and it's impact on the next meeting is what investors are kind of wrestling with," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
"The market is on pause now until we get to the Fed meeting and the inflation data."
Inflation data due next week is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are expected to have remained elevated.
Some Fed officials last week backed the view that the central bank could keep rates steady at its June 13-14 meeting and look for more signs of whether the economy was cooling or higher rates were warranted. The Fed officials have entered a "blackout" period.
Fed fund futures indicate traders have priced in a 75% chance that the central bank will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool. However, they see 50% odds of another 25-basis-point rate hike in July.
At 9:59 a.m. ET, the Dow Jones Industrial Average .DJI was down 64.72 points, or 0.19%, at 33,498.14, the S&P 500 .SPX was down 5.06 points, or 0.12%, at 4,268.73, and the Nasdaq Composite .IXIC was down 23.61 points, or 0.18%, at 13,205.82.
U.S. stocks have advanced in recent weeks, with a rally in megacap stocks, a stronger-than-expected earnings season and hopes of a pause in interest rate hikes pushing the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC to fresh 2023 highs on Friday.
Among the 11 major S&P sectors, technology .SPLRCT and energy .SPNY fell the most, while financials .SPSY rose.
Coinbase GlobalCOIN.O plunged 15.2% after the U.S. Securities and Exchange Commission sued the crypto exchange, accusing it of illegally operating without having first registered with the regulator.
Apple Inc AAPL.O extended losses to drop 1.0%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O.
Advanced Micro Devices AMD.O rose 3.6% after Piper Sandler raised the price target on the stock to $150, the second highest on Wall Street, as per Refintiv data.
Oil stocks fell, with Exxon Mobil XOM.N and Chevron CVX dropping about 1% each as crude prices declined nearly 2% on concerns about the global economy. O/R
Advancing issues outnumbered decliners by a 1.50-to-1 ratio on the NYSE and by a 1.24-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and four new lows, while the Nasdaq recorded 32 new highs and 38 new lows.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O extended losses to drop 1.0%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. The U.S. services sector barely grew in May as new orders slowed, data on Monday showed, pushing a measure of prices paid by businesses for inputs to a three-year low. "The difference between skip and pause and it's impact on the next meeting is what investors are kind of wrestling with," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
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Apple Inc AAPL.O extended losses to drop 1.0%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar and Shristi Achar A June 6 (Reuters) - Wall Street's main indexes slipped on Tuesday as investors assessed odds of an interest rate pause by the Federal Reserve at its policy meeting next week, with mixed economic data adding to uncertainty around the rate path. Some Fed officials last week backed the view that the central bank could keep rates steady at its June 13-14 meeting and look for more signs of whether the economy was cooling or higher rates were warranted.
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Apple Inc AAPL.O extended losses to drop 1.0%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar and Shristi Achar A June 6 (Reuters) - Wall Street's main indexes slipped on Tuesday as investors assessed odds of an interest rate pause by the Federal Reserve at its policy meeting next week, with mixed economic data adding to uncertainty around the rate path. Some Fed officials last week backed the view that the central bank could keep rates steady at its June 13-14 meeting and look for more signs of whether the economy was cooling or higher rates were warranted.
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Apple Inc AAPL.O extended losses to drop 1.0%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. "The market is on pause now until we get to the Fed meeting and the inflation data." Some Fed officials last week backed the view that the central bank could keep rates steady at its June 13-14 meeting and look for more signs of whether the economy was cooling or higher rates were warranted.
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15484.0
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2023-06-06 00:00:00 UTC
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Intel Is Making Some Big Moves -- Here Is What Investors Should Know
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AAPL
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https://www.nasdaq.com/articles/intel-is-making-some-big-moves-here-is-what-investors-should-know
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nan
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nan
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Intel (NASDAQ: INTC) navigates through turbulent market conditions with a couple of promising leads, yet faces stiff competition from tech giant Apple (NASDAQ: AAPL). Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of June 6, 2023. The video was published on June 6, 2023.
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*Stock Advisor returns as of June 15, 2021
Jose Najarro has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Intel (NASDAQ: INTC) navigates through turbulent market conditions with a couple of promising leads, yet faces stiff competition from tech giant Apple (NASDAQ: AAPL). Check out the short video to learn more, consider subscribing, and click the special offer link below. Offer from The Motley Fool: The 10 best stocks to buy now Our award-winning anaylst team has spent more than a decade beating the market.
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Intel (NASDAQ: INTC) navigates through turbulent market conditions with a couple of promising leads, yet faces stiff competition from tech giant Apple (NASDAQ: AAPL). *Stock Advisor returns as of June 15, 2021 Jose Najarro has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing.
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Intel (NASDAQ: INTC) navigates through turbulent market conditions with a couple of promising leads, yet faces stiff competition from tech giant Apple (NASDAQ: AAPL). Offer from The Motley Fool: The 10 best stocks to buy now Our award-winning anaylst team has spent more than a decade beating the market. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing.
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Intel (NASDAQ: INTC) navigates through turbulent market conditions with a couple of promising leads, yet faces stiff competition from tech giant Apple (NASDAQ: AAPL). Check out the short video to learn more, consider subscribing, and click the special offer link below. *Stock Advisor returns as of June 15, 2021 Jose Najarro has positions in Taiwan Semiconductor Manufacturing.
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15485.0
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2023-06-06 00:00:00 UTC
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Goldman Analyst Upbeat on Apple’s Vision Pro Headset (NASDAQ:AAPL), Despite High Price
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AAPL
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https://www.nasdaq.com/articles/goldman-analyst-upbeat-on-apples-vision-pro-headset-nasdaq%3Aaapl-despite-high-price
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nan
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nan
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Apple (NASDAQ:AAPL), at its Worldwide Developers Conference, unveiled the much-awaited augmented reality headset – Vision Pro – for $3,499. While the fate of the headset is yet to be determined as the product will not be available until early next year, the device's high price might affect its early adoption, says Goldman Sachs analyst Mike Ng. Nonetheless, the analyst is bullish about the product’s long-term prospects.
After a long hiatus, the headset marks the tech giant’s entry into a new major product category. While the device's announcement was largely anticipated, its higher price came as a surprise.
Apple Vision Pro Price
The analyst is upbeat about the prospects of the product and the Vision Pro app ecosystem and expects it to contribute meaningfully to Apple’s financials in the long term.
However, he noted that the retail price of $3,499 is higher than Goldman Sachs’ estimate of $3K. Thus, the analyst believes that the higher retail price point might “limit near-term adoption.”
The analyst added that his hypothetical model assumes Apple will ship five million headsets in Fiscal 2024. Moreover, it would ship 8-13 million units between Fiscal 2025 and Fiscal 2028.
Will Apple Vision Pro Bring Profit to Apple?
Coming to the financial impact, the analyst’s hypothetical model assumes that the device could bring in $13-$25 billion in annual sales between Fiscal 2024 and Fiscal 2028. In addition, he expects the product to “breakeven to LSD% (low single-digit percentage) EPS accretion over time as Product gross margins scale and higher margin Services contribute.”
The AR (Augmented Reality)/VR (Virtual Reality) segment has been challenging for most companies and disappointing so far. However, the analyst sees Apple succeeding in the AR/VR industry with its headsets. He expects AAPL to benefit from its large iPhone user base, a solid “track record of success in consumer hardware,” compelling content, and robust features.
What’s the Prediction for Apple Stock?
Apple stock has gained nearly 39% year-to-date, thanks to the solid demand for products and strength in services revenue. Despite the recent gains, AAPL stock sports a Strong Buy consensus rating with 22 Buy, five Hold, and one Sell recommendations.
However, due to the recent appreciation in AAPL stock, analysts' average price target of $184.89 implies 2.96% upside potential.
According to TipRanks’ data, Krish Sankar of TD Cowen is the most accurate analyst for Apple stock. Copying Sankar’s trades on AAPL stock and holding each position for one year could result in 96% of your transactions generating a profit, with an average return of 51% per trade.
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), at its Worldwide Developers Conference, unveiled the much-awaited augmented reality headset – Vision Pro – for $3,499. He expects AAPL to benefit from its large iPhone user base, a solid “track record of success in consumer hardware,” compelling content, and robust features. However, due to the recent appreciation in AAPL stock, analysts' average price target of $184.89 implies 2.96% upside potential.
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Apple (NASDAQ:AAPL), at its Worldwide Developers Conference, unveiled the much-awaited augmented reality headset – Vision Pro – for $3,499. He expects AAPL to benefit from its large iPhone user base, a solid “track record of success in consumer hardware,” compelling content, and robust features. Despite the recent gains, AAPL stock sports a Strong Buy consensus rating with 22 Buy, five Hold, and one Sell recommendations.
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Apple (NASDAQ:AAPL), at its Worldwide Developers Conference, unveiled the much-awaited augmented reality headset – Vision Pro – for $3,499. He expects AAPL to benefit from its large iPhone user base, a solid “track record of success in consumer hardware,” compelling content, and robust features. Despite the recent gains, AAPL stock sports a Strong Buy consensus rating with 22 Buy, five Hold, and one Sell recommendations.
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Apple (NASDAQ:AAPL), at its Worldwide Developers Conference, unveiled the much-awaited augmented reality headset – Vision Pro – for $3,499. He expects AAPL to benefit from its large iPhone user base, a solid “track record of success in consumer hardware,” compelling content, and robust features. Despite the recent gains, AAPL stock sports a Strong Buy consensus rating with 22 Buy, five Hold, and one Sell recommendations.
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15486.0
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2023-06-06 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq rise as banks advance; Fed meet in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-rise-as-banks-advance-fed-meet-in-focus
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nan
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nan
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By Sruthi Shankar and Shristi Achar A
June 6 (Reuters) - The S&P 500 and Nasdaq rose on Tuesday as banks led a rally in economically sensitive sectors, while investors awaited inflation data and the Federal Reserve's policy meet next week.
Inflation data is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated, while the Fed is widely expected to hold interest rates.
Financials .SPSY rose 1.2% to lead gains among the 11 major S&P 500 sectors, while the KBW regional banking index .KRX jumped 6.1%. The Russell 2000 index .RUT of small-cap companies added 2.8%.
"You are seeing cyclical parts of the market like financials, machinery, consumer discretionary having some market leadership which is good to see," said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Company.
"If this were to continue, that would probably be a good sign that the trajectory that the market this year is on a more sustainable path."
The benchmark S&P 500 has bounced almost 20% from its October 2022 lows, boosted by gains in megacap stocks, a stronger-than-expected earnings season and hopes that the U.S. central bank is nearing the end of its interest rate-hike cycle.
Recent economic data and dovish remarks from the Fed officials have raised the odds of the Fed holding interest rates at its June 13-14 meeting.
Fed fund futures indicate traders have priced in a near 80% chance that the central bank will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool. However, they see 50% odds of another 25-basis-point rate hike in July.
At 12:24 p.m. ET, the Dow Jones Industrial Average .DJI was down 36.20 points, or 0.11%, at 33,526.66, the S&P 500 .SPX was up 5.73 points, or 0.13%, at 4,279.52, and the Nasdaq Composite .IXIC was up 47.14 points, or 0.36%, at 13,276.57.
The CBOE volatility index hit its lowest since July 2021, down 0.5 point at 14.27.
Coinbase Global COIN.O plunged 11.1% after the U.S. Securities and Exchange Commission sued the crypto exchange, accusing it of illegally operating without having first registered with the regulator.
Apple Inc AAPL.O extended losses to slip 0.6%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O.
Advanced Micro Devices AMD.O rose 4.6% after Piper Sandler raised the price target on the stock to $150, the second highest on Wall Street, as per Refintiv data.
Advancing issues outnumbered decliners by a 3.49-to-1 ratio on the NYSE and by a 2.70-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and four new lows, while the Nasdaq recorded 86 new highs and 52 new lows.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O extended losses to slip 0.6%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar and Shristi Achar A June 6 (Reuters) - The S&P 500 and Nasdaq rose on Tuesday as banks led a rally in economically sensitive sectors, while investors awaited inflation data and the Federal Reserve's policy meet next week. The benchmark S&P 500 has bounced almost 20% from its October 2022 lows, boosted by gains in megacap stocks, a stronger-than-expected earnings season and hopes that the U.S. central bank is nearing the end of its interest rate-hike cycle.
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Apple Inc AAPL.O extended losses to slip 0.6%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. Recent economic data and dovish remarks from the Fed officials have raised the odds of the Fed holding interest rates at its June 13-14 meeting. Fed fund futures indicate traders have priced in a near 80% chance that the central bank will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool.
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Apple Inc AAPL.O extended losses to slip 0.6%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar and Shristi Achar A June 6 (Reuters) - The S&P 500 and Nasdaq rose on Tuesday as banks led a rally in economically sensitive sectors, while investors awaited inflation data and the Federal Reserve's policy meet next week. Inflation data is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated, while the Fed is widely expected to hold interest rates.
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Apple Inc AAPL.O extended losses to slip 0.6%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O. By Sruthi Shankar and Shristi Achar A June 6 (Reuters) - The S&P 500 and Nasdaq rose on Tuesday as banks led a rally in economically sensitive sectors, while investors awaited inflation data and the Federal Reserve's policy meet next week. Recent economic data and dovish remarks from the Fed officials have raised the odds of the Fed holding interest rates at its June 13-14 meeting.
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15487.0
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2023-06-06 00:00:00 UTC
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Apple Unveils Vision Pro Headset, IOS 17, 15-inch MacBook Air And More
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AAPL
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https://www.nasdaq.com/articles/apple-unveils-vision-pro-headset-ios-17-15-inch-macbook-air-and-more
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nan
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nan
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(RTTNews) - Apple has unveiled a bunch of new products for its customers including its first spatial computer Vision Pro Headset. The tech major has also introduced iOS 17, 15-inch MacBook Air, iPadOS 17, TvOS 17 For Apple TV, WatchOS 10 For Apple Watch, New Mac Studio, Mac Pro, and M2 Ultra, among others.
The Apple Vision Pro features visionOS, the world's first spatial operating system. It seamlessly blends digital content with the physical world and lets users interact with digital content in a way that feels like it is physically present in their space.
Vision Pro introduces a fully three-dimensional user interface controlled by a user's eyes, hands, and voice. The design features an ultra-high-resolution display system that packs 23 million pixels across two displays. Apple Vision Pro starts at $3,499 and will be available early next year on apple.com and at Apple Store locations in the U.S., with more countries coming later next year.
Tim Cook, Apple's CEO, said, "Today marks the beginning of a new era for computing. Just as the Mac introduced us to personal computing, and iPhone introduced us to mobile computing, Apple Vision Pro introduces us to spatial computing."
Apple Vision Pro has an all-new App Store offering users apps and content from developers, and access hundreds of thousands of familiar iPhone and iPad apps.
The company's another major release is iOS 17, which upgrades the communications experience across Phone, FaceTime, and Messages. It makes sharing even easier with AirDrop, and provides more intelligent input that improves the speed and accuracy of typing.
The developer beta of iOS 17 is now available to Apple Developer Program members at developer.apple.com, and a public beta will be available next month at beta.apple.com.
Further, Apple introduced the 15-inch MacBook Air that features an expansive 15.3-inch Liquid Retina display, M2, up to 18 hours of battery life, and a silent, fanless design. The new MacBook Air measures only 11.5 mm thin, making it the world's thinnest 15-inch laptop.
The 15-inch MacBook Air with M2, available at midnight, starlight, silver, and space gray, starts at $1,299 and $1,199 for education. The 13-inch MacBook Air with M2 gets a new starting price of $1,099, which is $100 less than before.
The MacBook Air with M2 is now available to order on apple.com/store and in the Apple Store app. It will begin arriving to customers, and in Apple Store locations and Apple Authorized Resellers, beginning June 13.
Apple's M2 Ultra, a new system on a chip or SoC, delivers huge performance increases to the Mac. M2 Ultra is the largest and most capable chip Apple has ever created.
Among the new Mac products, Mac Studio features M2 Max and the new M2 Ultra, delivering a huge boost in performance and enhanced connectivity in its stunningly compact design. Mac Pro, now featuring M2 Ultra, combines Apple's most powerful chip with the versatility of PCIe expansion. Mac Pro is up to 3x faster than the previous-generation Intel-based model.
The new Mac Studio and Mac Pro are now available on apple.com/store and in the Apple Store app. They will start to arrive to customers and will be available in Apple Store locations and Apple Authorized Resellers, beginning Tuesday, June 13. Mac Studio starts at $1,999 and $1,799 for education.
Apple further previewed watchOS 10 for Apple Watch users, and iPadOS 17, and others. The iOS 17, iPadOS 17, and watchOS 10 also introduce mental health and vision health features.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple has unveiled a bunch of new products for its customers including its first spatial computer Vision Pro Headset. Further, Apple introduced the 15-inch MacBook Air that features an expansive 15.3-inch Liquid Retina display, M2, up to 18 hours of battery life, and a silent, fanless design. Mac Pro, now featuring M2 Ultra, combines Apple's most powerful chip with the versatility of PCIe expansion.
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The tech major has also introduced iOS 17, 15-inch MacBook Air, iPadOS 17, TvOS 17 For Apple TV, WatchOS 10 For Apple Watch, New Mac Studio, Mac Pro, and M2 Ultra, among others. Just as the Mac introduced us to personal computing, and iPhone introduced us to mobile computing, Apple Vision Pro introduces us to spatial computing." It will begin arriving to customers, and in Apple Store locations and Apple Authorized Resellers, beginning June 13.
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The tech major has also introduced iOS 17, 15-inch MacBook Air, iPadOS 17, TvOS 17 For Apple TV, WatchOS 10 For Apple Watch, New Mac Studio, Mac Pro, and M2 Ultra, among others. Apple Vision Pro starts at $3,499 and will be available early next year on apple.com and at Apple Store locations in the U.S., with more countries coming later next year. Just as the Mac introduced us to personal computing, and iPhone introduced us to mobile computing, Apple Vision Pro introduces us to spatial computing."
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The tech major has also introduced iOS 17, 15-inch MacBook Air, iPadOS 17, TvOS 17 For Apple TV, WatchOS 10 For Apple Watch, New Mac Studio, Mac Pro, and M2 Ultra, among others. Apple Vision Pro has an all-new App Store offering users apps and content from developers, and access hundreds of thousands of familiar iPhone and iPad apps. The new Mac Studio and Mac Pro are now available on apple.com/store and in the Apple Store app.
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15488.0
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2023-06-06 00:00:00 UTC
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Dow Stocks Like Microsoft, Apple, Disney, and Verizon Reveal Two Sides of the Market
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AAPL
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https://www.nasdaq.com/articles/dow-stocks-like-microsoft-apple-disney-and-verizon-reveal-two-sides-of-the-market
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nan
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nan
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After a brutal 2022, the stock market is roaring in 2023, with the Nasdaq Composite up 26% and the S&P 500 up 11% year to date (YTD) at the time of this writing. Yet dig deeper and you'll find some peculiar price action in many well-known names.
Six of the 30 components of the Dow Jones Industrial Average (NYSEMKT: DJIA) are within 5% of their 52-week lows, and eight are within 5% of their 52-week highs as of Friday's close.
The Dow isn't a perfect index. But it does a fine job of reflecting the broader U.S. economy, especially as more tech stocks have been added to the index in response to the growing share tech holds in the market capitalization of the broader stock market.
Let's find out why a sizable portion of these blue-chip names are performing so poorly, while others are leading the stock market higher.
Image source: Getty Images.
Winners and losers
This isn't the first time we've seen a stock market where certain sectors are doing well while others are performing badly. In 2020, many small-cap growth stocks left oil and gas and financials in the dust. In 2022, value stocks did much better than growth stocks, particularly large-cap value. Let's look at the 14 Dow stocks hovering around new highs or lows.
COMPANY
CURRENT PRICE
52-WEEK HIGH
% OFF HIGH
52-WEEK LOW
% OFF LOW
Amgen (NASDAQ: AMGN)
$216.93
$296.67
26.9%
$214.48
1.1%
Verizon Communications (NYSE: VZ)
$35.00
$52.18
32.9%
$34.55
1.3%
3M (NYSE: MMM)
$96.94
$152.30
36.4%
$95.35
1.7%
Walgreens Boots Alliance (NASDAQ: WBA)
$30.01
$44.27
32.2%
$29.48
1.8%
Johnson & Johnson (NYSE: JNJ)
$154.35
$183.35
15.8%
$150.11
2.8%
Walt Disney (NYSE: DIS)
$88.29
$126.48
30.2%
$84.07
5%
Microsoft (NASDAQ: MSFT)
$332.89
$333.40
0.2%
$213.43
56%
Salesforce (NYSE: CRM)
$215.44
$216.15
0.3%
$126.34
70.5%
Apple (NASDAQ: AAPL)
$175.43
$176.39
0.5%
$124.17
41.3%
McDonald's (NYSE: MCD)
$286.04
$298.86
4.3%
$230.58
24.1%
Visa (NYSE: V)
$225.01
$235.57
4.5%
$174.60
28.9%
JPMorgan Chase (NYSE: JPM)
$136.94
$144.34
5.1%
$101.28
35.2%
Cisco Systems (NASDAQ: CSCO)
$49.86
$52.56
5.1%
$38.60
29.2%
Walmart (NYSE: WMT)
$146.42
$154.64
5.3%
$117.90
24.2%
Data source: Yahoo! Finance. Data as of market close May 26, 2023.
As you can tell by the names in the table, 2023 is far more nuanced than years past. Retail as a whole is under pressure. But Walmart is within 5% of its 52-week high, while Target (NYSE: TGT) is within 5% of its 52-week low. Similarly, McDonald's is within 5% of its 52-week high, while many of its large-cap value peers have sold off. 3M, an industrial conglomerate, is near its 10-year low, while Boeing is within 10% of its 52-week high.
As far as sector trends go, tech and financial stocks are generally doing quite well, while healthcare and many cyclical stocks have sold off. This explains some of the weaknesses in J&J, Amgen, and Walgreens. And then there's Walt Disney, which, despite being in the market-outperforming consumer discretionary sector, is hovering around an eight-year low.
Microsoft continues to find itself in the spotlight, mainly due to its investments in artificial intelligence (AI). Microsoft is now knocking on the door of a $2.5 trillion market cap.
Meanwhile, Apple has been a consistent performer, and finds its stock near an all-time high and approaching a $3 trillion market cap despite fears of slower consumer spending.
Salesforce was the worst Dow stock in 2022, when it fell 48%. However, Salesforce has been the best-performing Dow stock so far this year, and is up about 60% year to date -- driven in part by an overall sector rebound, but also by Salesforce's solid numbers that indicate the stock suffered excessive selling in 2022. Zoom out, and Salesforce is still down 10% during the past two years.
Making sense of the data
Bull markets and bear markets include some combination of sector rotation. In bear markets, investors tend to gravitate toward safe stocks, like utilities, consumer staples, and healthcare. In bull markets, investors want to take on more risk for more potential reward -- and may sell positions in stodgier names to bet on growth trends like AI.
The price action in many Dow names mirrors what we are seeing throughout the stock market, which is that companies with proven stories are getting rewarded, while companies that have failed to meet investor expectations are getting punished. In other words, the market is showing intolerance toward companies with blemishes, sloppy execution, and messy situations, and exuberance toward companies that keep delivering on promises.
For example, Walmart has done a much better job maintaining strong margins and navigating inventory challenges than Target. Disney is undergoing a restructuring, steep cost cuts, and layoffs. Beyond that, the company has yet to show consistent profitability at its Disney+ streaming service. So Disney stock is near new lows, while Netflix is at a 52-week high.
3M's failure to hit its projections and its product liability and environmental woes have led to a further sell-off. J&J is undergoing a restructuring of its own, spinning off its personal care business. And Verizon has continued to lose market share to T-Mobile and AT&T, leading investors to dump the shares in favor of those of its competitors. The list goes on and on.
The divergence between winners and losers means that many Dow stocks are either drastically beating or significantly underperforming the Dow's year-to-date decline of more than 3%.
TICKER
GAIN/LOSS
AXP
6.4%
AMGN
-17.4%
AAPL
35%
BA
6.9%
CAT
-11.6%
CSCO
4.7%
CVX
-14.2%
GS
-3.3%
HD
-7.3%
HON
-9.6%
IBM
-8.5%
INTC
-7.3%
JNJ
-12.6%
KO
-5.3%
JPM
2.1%
MCD
8.5%
MMM
-19.2%
MRK
0.1%
MSFT
38.9%
NKE
-8.1%
PG
4.1%
TRV
-8.1%
UNH
-9.2%
CRM
62.5%
VZ
-11.2%
V
8.3%
WBA
-19.7%
DIS
1.6%
DOW
-.1%
Don't take the stock market's price action for granted
Even if you don't personally own any of the stocks discussed, their price action can provide valuable insight that can help you navigate the stock market in the years to come.
One is to be in tune with the market's temperament. Investor sentiment at any given time can lead to some stocks becoming overvalued or underappreciated bargains almost at random. The meme and unprofitable growth stock boom in 2020 and 2021 is an example of unrealistic enthusiasm, while the collapse of big tech stocks in 2022 and subsequent rebound in 2023 may be an example of the market reckoning with overshooting.
Here are a few questions you can ask about a stock that's making new highs:
Why is this stock heavily in favor right now?
Does the future growth potential justify the recent price appreciation?
What would happen if fundamentals weakened?
Is the stock priced for perfection, or is there room for error?
Here are a few questions you can ask about a stock that's making new lows:
Why is this stock out of favor right now?
Is the company showing meaningful progress toward regaining shareholder trust, or are investors merely hoping the company turns things around?
Is the stock priced for more disappointment, and if so, does that mean most of the negative sentiment is already factored in?
Take what the market gives
Another insight is to take what the market gives you. As an individual investor, you have the advantage of getting to decide when to buy and sell a stock. Unlike professional and instititional investors who are criticized for their quarterly performance relative to a benchmark, all that matters to you and your family is achieving your financial goals. You don't have to chase a stock that's run up out of fear of missing out, nor do you have sell a position that has crashed out of fear of being stuck with a loser.
The ups and downs of the Dow stocks is a study in the merit of diversification. Having positions in different sectors helps offset underperformance and smooths out the randomness that comes from the market cycle.
Finally, always remember to avoid getting caught up in the noise. One way to do that is by aligning your investments with your personal risk tolerance and interests. That way you can rest easy at night and have the patience to let positions compound over time rather than pay too much attention to whatever is being rewarded or punished in the stock market at any given time.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Daniel Foelber has the following options: long June 2023 $89 calls on Walt Disney, long June 2023 $92 calls on Walt Disney, long June 2023 $94 calls on Walt Disney, long June 2025 $105 calls on Walt Disney, long June 2025 $120 calls on Walt Disney, long October 2023 $145 calls on Target, long September 2023 $130 calls on Target, short June 2023 $90 calls on Walt Disney, short June 2023 $93 calls on Walt Disney, short June 2023 $95 calls on Walt Disney, short June 2025 $110 calls on Walt Disney, and short October 2023 $150 calls on Target. The Motley Fool has positions in and recommends Apple, Cisco Systems, JPMorgan Chase, Microsoft, Netflix, Salesforce, Target, Visa, Walmart, and Walt Disney. The Motley Fool recommends 3M, Amgen, Johnson & Johnson, T-Mobile US, and 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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$96.94 $152.30 36.4% $95.35 1.7% Walgreens Boots Alliance (NASDAQ: WBA) $30.01 $44.27 32.2% $29.48 1.8% Johnson & Johnson (NYSE: JNJ) $154.35 $183.35 15.8% $150.11 2.8% Walt Disney (NYSE: DIS) $88.29 $126.48 30.2% $84.07 5% Microsoft (NASDAQ: MSFT) $332.89 $333.40 0.2% $213.43 56% Salesforce (NYSE: CRM) $215.44 $216.15 0.3% $126.34 70.5% Apple (NASDAQ: AAPL) $175.43 $176.39 0.5% $124.17 41.3% McDonald's (NYSE: MCD) $286.04 $298.86 4.3% $230.58 24.1% Visa (NYSE: V) $225.01 $235.57 4.5% $174.60 28.9% JPMorgan Chase (NYSE: JPM) $136.94 $144.34 5.1% $101.28 35.2% Cisco Systems (NASDAQ: CSCO) $49.86 $52.56 5.1% $38.60 29.2% Walmart (NYSE: WMT) $146.42 $154.64 5.3% $117.90 24.2% Data source: Yahoo! Meanwhile, Apple has been a consistent performer, and finds its stock near an all-time high and approaching a $3 trillion market cap despite fears of slower consumer spending. In bull markets, investors want to take on more risk for more potential reward -- and may sell positions in stodgier names to bet on growth trends like AI.
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$96.94 $152.30 36.4% $95.35 1.7% Walgreens Boots Alliance (NASDAQ: WBA) $30.01 $44.27 32.2% $29.48 1.8% Johnson & Johnson (NYSE: JNJ) $154.35 $183.35 15.8% $150.11 2.8% Walt Disney (NYSE: DIS) $88.29 $126.48 30.2% $84.07 5% Microsoft (NASDAQ: MSFT) $332.89 $333.40 0.2% $213.43 56% Salesforce (NYSE: CRM) $215.44 $216.15 0.3% $126.34 70.5% Apple (NASDAQ: AAPL) $175.43 $176.39 0.5% $124.17 41.3% McDonald's (NYSE: MCD) $286.04 $298.86 4.3% $230.58 24.1% Visa (NYSE: V) $225.01 $235.57 4.5% $174.60 28.9% JPMorgan Chase (NYSE: JPM) $136.94 $144.34 5.1% $101.28 35.2% Cisco Systems (NASDAQ: CSCO) $49.86 $52.56 5.1% $38.60 29.2% Walmart (NYSE: WMT) $146.42 $154.64 5.3% $117.90 24.2% Data source: Yahoo! Daniel Foelber has the following options: long June 2023 $89 calls on Walt Disney, long June 2023 $92 calls on Walt Disney, long June 2023 $94 calls on Walt Disney, long June 2025 $105 calls on Walt Disney, long June 2025 $120 calls on Walt Disney, long October 2023 $145 calls on Target, long September 2023 $130 calls on Target, short June 2023 $90 calls on Walt Disney, short June 2023 $93 calls on Walt Disney, short June 2023 $95 calls on Walt Disney, short June 2025 $110 calls on Walt Disney, and short October 2023 $150 calls on Target. The Motley Fool recommends 3M, Amgen, Johnson & Johnson, T-Mobile US, and 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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$96.94 $152.30 36.4% $95.35 1.7% Walgreens Boots Alliance (NASDAQ: WBA) $30.01 $44.27 32.2% $29.48 1.8% Johnson & Johnson (NYSE: JNJ) $154.35 $183.35 15.8% $150.11 2.8% Walt Disney (NYSE: DIS) $88.29 $126.48 30.2% $84.07 5% Microsoft (NASDAQ: MSFT) $332.89 $333.40 0.2% $213.43 56% Salesforce (NYSE: CRM) $215.44 $216.15 0.3% $126.34 70.5% Apple (NASDAQ: AAPL) $175.43 $176.39 0.5% $124.17 41.3% McDonald's (NYSE: MCD) $286.04 $298.86 4.3% $230.58 24.1% Visa (NYSE: V) $225.01 $235.57 4.5% $174.60 28.9% JPMorgan Chase (NYSE: JPM) $136.94 $144.34 5.1% $101.28 35.2% Cisco Systems (NASDAQ: CSCO) $49.86 $52.56 5.1% $38.60 29.2% Walmart (NYSE: WMT) $146.42 $154.64 5.3% $117.90 24.2% Data source: Yahoo! But it does a fine job of reflecting the broader U.S. economy, especially as more tech stocks have been added to the index in response to the growing share tech holds in the market capitalization of the broader stock market. -.1% Don't take the stock market's price action for granted Even if you don't personally own any of the stocks discussed, their price action can provide valuable insight that can help you navigate the stock market in the years to come.
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$96.94 $152.30 36.4% $95.35 1.7% Walgreens Boots Alliance (NASDAQ: WBA) $30.01 $44.27 32.2% $29.48 1.8% Johnson & Johnson (NYSE: JNJ) $154.35 $183.35 15.8% $150.11 2.8% Walt Disney (NYSE: DIS) $88.29 $126.48 30.2% $84.07 5% Microsoft (NASDAQ: MSFT) $332.89 $333.40 0.2% $213.43 56% Salesforce (NYSE: CRM) $215.44 $216.15 0.3% $126.34 70.5% Apple (NASDAQ: AAPL) $175.43 $176.39 0.5% $124.17 41.3% McDonald's (NYSE: MCD) $286.04 $298.86 4.3% $230.58 24.1% Visa (NYSE: V) $225.01 $235.57 4.5% $174.60 28.9% JPMorgan Chase (NYSE: JPM) $136.94 $144.34 5.1% $101.28 35.2% Cisco Systems (NASDAQ: CSCO) $49.86 $52.56 5.1% $38.60 29.2% Walmart (NYSE: WMT) $146.42 $154.64 5.3% $117.90 24.2% Data source: Yahoo! Winners and losers This isn't the first time we've seen a stock market where certain sectors are doing well while others are performing badly. In 2022, value stocks did much better than growth stocks, particularly large-cap value.
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15489.0
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2023-06-06 00:00:00 UTC
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US STOCKS-Wall St set for subdued open as mixed data fuels Fed policy uncertainty
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-subdued-open-as-mixed-data-fuels-fed-policy-uncertainty
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nan
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nan
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By Sruthi Shankar and Shristi Achar A
June 6 (Reuters) - Wall Street's main indexes were set for a subdued open on Tuesday as investors assessed chances of the Federal Reserve holding interest rate at its meeting next week, with mixed data adding to uncertainty around the policy outlook.
The U.S. services sector barely grew in May as new orders slowed, data on Monday showed, pushing a measure of prices paid by businesses for inputs to a three-year low.
While that signaled the Fed's monetary tightening was cooling the world's largest economy, it follows strong jobs data last week, clouding the outlook for the Fed's policy path.
"The difference between skip and pause and it's impact on the next meeting is what investors are kind of wrestling with," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
Investors await inflation data due next week, ahead of the Fed meet. Consumer prices are likely to have cooled slightly on a month-over-month basis in May but core prices are expected to have remained sticky.
"The market is on pause now until we get to the Fed meeting and the inflation data," Nolte said.
Fed officials last week made the case for the central bank to keep rates steady at its June 13-14 meeting and look for more factors to ascertain whether the economy was cooling or higher rates were warranted. The officials have entered a "blackout" period.
Fed fund futures indicate traders have priced in a 75% chance that the Fed will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool. However, they see 50% odds of another 25-basis-point rate hike in July.
At 8:15 a.m. ET, Dow e-minis 1YMcv1 were down 34 points, or 0.1%, S&P 500 e-minis EScv1 were down 4.5 points, or 0.11%, and Nasdaq 100 e-minis NQcv1 were down 17.25 points, or 0.12%.
U.S. stocks have advanced in recent weeks, with a rally in megacap stocks, a stronger-than-expected earnings season and hopes of a pause in interest rate hikes pushing the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC to fresh 2023 highs on Friday.
Apple Inc AAPL.O slipped 0.5% in premarket trading after hitting a record high in the previous session. The iPhone maker on Monday unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O.
Advanced Micro Devices AMD.O rose 0.9% after Piper Sandler raised price target on the stock to $150, the second highest on Wall Street, as per Refintiv data.
Oil stocks fell, with Exxon Mobil XOM.N and Chevron CVX dropping about 1% each as crude prices declined nearly 2% on concerns about the global economy. O/R
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O slipped 0.5% in premarket trading after hitting a record high in the previous session. By Sruthi Shankar and Shristi Achar A June 6 (Reuters) - Wall Street's main indexes were set for a subdued open on Tuesday as investors assessed chances of the Federal Reserve holding interest rate at its meeting next week, with mixed data adding to uncertainty around the policy outlook. The U.S. services sector barely grew in May as new orders slowed, data on Monday showed, pushing a measure of prices paid by businesses for inputs to a three-year low.
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Apple Inc AAPL.O slipped 0.5% in premarket trading after hitting a record high in the previous session. By Sruthi Shankar and Shristi Achar A June 6 (Reuters) - Wall Street's main indexes were set for a subdued open on Tuesday as investors assessed chances of the Federal Reserve holding interest rate at its meeting next week, with mixed data adding to uncertainty around the policy outlook. "The market is on pause now until we get to the Fed meeting and the inflation data," Nolte said.
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Apple Inc AAPL.O slipped 0.5% in premarket trading after hitting a record high in the previous session. By Sruthi Shankar and Shristi Achar A June 6 (Reuters) - Wall Street's main indexes were set for a subdued open on Tuesday as investors assessed chances of the Federal Reserve holding interest rate at its meeting next week, with mixed data adding to uncertainty around the policy outlook. Fed officials last week made the case for the central bank to keep rates steady at its June 13-14 meeting and look for more factors to ascertain whether the economy was cooling or higher rates were warranted.
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Apple Inc AAPL.O slipped 0.5% in premarket trading after hitting a record high in the previous session. By Sruthi Shankar and Shristi Achar A June 6 (Reuters) - Wall Street's main indexes were set for a subdued open on Tuesday as investors assessed chances of the Federal Reserve holding interest rate at its meeting next week, with mixed data adding to uncertainty around the policy outlook. While that signaled the Fed's monetary tightening was cooling the world's largest economy, it follows strong jobs data last week, clouding the outlook for the Fed's policy path.
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15490.0
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2023-06-06 00:00:00 UTC
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Can Apple's New VR Headset Reignite the Metaverse Buzz?
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AAPL
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https://www.nasdaq.com/articles/can-apples-new-vr-headset-reignite-the-metaverse-buzz
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nan
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nan
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Apple's (NASDAQ: AAPL) upcoming product, the first new device category launch since the Apple Watch was announced in 2014, was no closely held secret. Rumors have been abundant about development of a virtual reality (VR) or mixed reality headset -- a medium that would bring users into the so-called metaverse, or a 3D rendering of the internet. The wait is over. Vision Pro has been revealed.
The only problem is it won't be available until 2024, and it carries a hefty price tag of $3,499. Facebook parent Meta Platforms (NASDAQ: META) likely feels safe with its own new headset announcement, the Quest 3, available later in 2023 for $499.
Nevertheless, Meta's efforts to date haven't set off widespread adoption of the metaverse. Could Apple's VR headset reignite the buzz?
Apple's long road to Vision Pro
Apple product fans have had to wait a long time since a brand new type of device was introduced. It's been over eight years since Beats Electronics and Beats Music were acquired, and the Apple Watch made its debut.
Data source: Apple. Image by author.
Over this span of time, Apple's power as a superior investment hasn't diminished, but revenue growth has certainly slowed.
Data by YCharts.
The timing of Vision Pro is thus timely, and not just because Apple needs another product to fuel growth. The world has changed drastically in the last few years, and digital work and play are now a ubiquitous part of daily life. Thus the desire (from some) for the metaverse, which creates a 3D digital experience that mimics the real world, rather than requiring users to bounce from one screen to another throughout the day.
But in the aftermath of the pandemic, there's been pushback against the metaverse and total immersion in digital experiences. Where Meta has failed to gain widespread acceptance, Apple hopes to propel VR to the next level -- much like it did for the smartphone industry in 2007. Vision Pro aims to do this by allowing users to choose how "immersed" they are -- from a camera-based portrayal of the space they are in filled in with apps, to a full virtually rendered environment of their choosing.
Apple gets some help from partners
Video games and entertainment are often the gateway to VR, and Apple is taking a similar approach here. The company showed off how Vision Pro emulates a big screen TV for viewing photos, videos, and TV and movie content. There will also be a new App Store specifically for Vision Pro,
Disney (NYSE: DIS) CEO Bob Iger also joined the event to talk up the device. Disney+ will be available on Vision Pro at product launch, as well as interactive content built using Disney's sizable library of IP (from classic Disney animation to Star Wars to the Marvel superhero universe).
And on the video game front, Vision Pro developers can tap into video game and 3D content creation platform Unity Software (NYSE: U). Shares of Unity rocketed more than 20% higher on the announcement. Unity's business has been dealing with issues in recent years, so the partnership was viewed as a positive development for the software company.
Apple says other companies are developing 3D apps for Vision Pro for play and work, including Microsoft's Office work suite and Adobe's creativity, design, and content editing software.
The Apple advantage
Many of the features on Vision Pro aren't exactly new. Meta has already released some sort of iteration of most of the capabilities on Apple's headset. In fact, one could argue that Vision Pro's need to remain plugged in throughout the day, or rely on a battery that provides only up to two hours of use, is a serious hindrance. Meta's current-gen headset, Quest 2, has been rated at two to three hours of battery life (Quest 3 battery life details haven't been released yet).
Nevertheless, though Meta has more than 3.8 billion monthly active users via its social media apps (Facebook, Instagram, and WhatsApp), that hasn't translated to widespread headset sales. Apple, on the other hand, has a global installed base of more than 2 billion devices in operation.
And therein lies the real Apple advantage, in my opinion. Apple users are fans, they're locked into a large ecosystem of existing devices spanning PCs to phones to earbuds and watches, and they regularly refresh these devices with a new purchase. An increasing number of businesses are adopting Apple hardware too. It wouldn't take many of these devoted fans and businesses making a Vision Pro purchase to jump-start a successful new device segment for Apple -- especially not when each headset costs $3,499 a pop!
At full price, it would take only 1.9 million Vision Pro sales to match revenue from the iPad last quarter (Apple reportedly shipped about 10.8 million iPads in Q1 calendar year 2023, bringing in revenue of $6.67 billion).
But will Vision Pro rekindle the metaverse buzz? Probably not at its steep price point. Vision Pro could be a nice profitable addition to the Apple family that can reward shareholders, but the world still feels years away from mainstream mixed reality device adoption. For now, this seems like a virtual experience for a select group of early adopters, more than a watershed moment like the iPhone was.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of 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. Nicholas Rossolillo and his clients have positions in Apple, Meta Platforms, Unity Software, and Walt Disney. The Motley Fool has positions in and recommends Adobe, Apple, Meta Platforms, Microsoft, Unity Software, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe, short January 2024 $155 calls on Walt Disney, and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) upcoming product, the first new device category launch since the Apple Watch was announced in 2014, was no closely held secret. Nevertheless, though Meta has more than 3.8 billion monthly active users via its social media apps (Facebook, Instagram, and WhatsApp), that hasn't translated to widespread headset sales. It wouldn't take many of these devoted fans and businesses making a Vision Pro purchase to jump-start a successful new device segment for Apple -- especially not when each headset costs $3,499 a pop!
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Apple's (NASDAQ: AAPL) upcoming product, the first new device category launch since the Apple Watch was announced in 2014, was no closely held secret. And on the video game front, Vision Pro developers can tap into video game and 3D content creation platform Unity Software (NYSE: U). The Motley Fool has positions in and recommends Adobe, Apple, Meta Platforms, Microsoft, Unity Software, and Walt Disney.
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Apple's (NASDAQ: AAPL) upcoming product, the first new device category launch since the Apple Watch was announced in 2014, was no closely held secret. Apple's long road to Vision Pro Apple product fans have had to wait a long time since a brand new type of device was introduced. Apple says other companies are developing 3D apps for Vision Pro for play and work, including Microsoft's Office work suite and Adobe's creativity, design, and content editing software.
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Apple's (NASDAQ: AAPL) upcoming product, the first new device category launch since the Apple Watch was announced in 2014, was no closely held secret. Facebook parent Meta Platforms (NASDAQ: META) likely feels safe with its own new headset announcement, the Quest 3, available later in 2023 for $499. Apple's long road to Vision Pro Apple product fans have had to wait a long time since a brand new type of device was introduced.
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15491.0
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2023-06-06 00:00:00 UTC
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Tech Stocks’ Astronomical Prices – Is Now the Time to Sell?
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AAPL
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https://www.nasdaq.com/articles/tech-stocks-astronomical-prices-is-now-the-time-to-sell
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nan
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nan
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Tech stocks rebounded, delivering stellar gains so far this year. For instance, shares of big tech giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Nvidia (NASDAQ:NVDA) have defied the weak general market trend and are up about 39%, 41%, 43%, 49%, 126%, and 168%, respectively, on a year-to-date basis. While the rally reflects equity investors’ buoyant mood on tech stocks, Morgan Stanley’s strategist Mike Wilson anticipates the possibility of a downturn or a correction in the technology sector.
Tech Stocks - The Recent Past and Near Future
Contrary to the fears of a recession gripping the market in 2023, the economy has proven to be less severe than anticipated. Although the market still exhibits weakness, the expectations of easing monetary policy due to the moderation in the inflation rate, the lower valuation of tech stocks at the start of 2022, and the concerted efforts of these companies to implement cost-cutting measures have all contributed to a revival in their stock prices.
Thanks to this recovery, the NASDAQ 100 Index (NDX), which is primarily focused on tech companies, has gained over 33% year-to-date and handily surpassed the S&P 500 (SPX).
Adding to the growth of these tech stocks is the evolution of AI (Artificial Intelligence). Investors have been bullish about anything and everything related to AI. Interestingly, not only individual stocks but tech and AI-focussed ETFs (Exchange-Traded funds) have also seen large inflows of cash.
While investors’ sentiment has largely been positive, Wilson maintains a bearish tone. Back in April, Wilson warned that tech stocks would not be able to sustain their recent gains. More recently, the U.S. equity strategist said that a decline in corporate earnings would lead to a correction in stocks. He expects a disappointing performance in the second-half earnings of U.S. corporations, leading to a selloff in equities.
While Wilson reiterated his bearish call on tech stocks and the broader market, let’s check out what’s on the horizon for these tech giants.
The Upside Potential Remains Low
TipRanks’ Stock Comparison tool shows that the Top Wall Street analysts are bullish about these tech stocks. All of these stocks, except for Apple, command a Strong Buy consensus rating on TipRanks. However, the upside in the shares of these companies based on analysts’ average price targets shows limited upside potential.
Nvidia, which has gained the most among these companies, is the only stock offering double-digit upside potential based on the average price target.
Moreover, investors should note that NVDA, AAPL, and MSFT stocks have recouped all of their post-pandemic losses and are trading near their all-time highs. Meanwhile, Alphabet stock has recovered most of its lost ground and has significantly outperformed the broader markets.
However, Amazon and Meta stocks have lagged the S&P 500 index over the 5-year period and are yet to recover most of their pandemic gains.
Bottom Line
The recent rally and macro uncertainty could limit the upside in tech stocks in the near term. Analysts’ average price targets also substantiate this view. While most of these stocks carry a Strong Buy consensus rating, only Apple and Nvidia stocks have the “Perfect 10” Smart Score.
However, NVDA, with a Strong Buy consensus rating and a Perfect 10 Smart Score, appeals the most, based on TipRanks’ valuable datasets and tools.
The chip company has benefitted a lot from the rise of generative AI and its dominant position in that space. NVDA is poised to deliver solid growth on the back of solid demand for its AI chips. Meanwhile, autonomous driving and high-end infotainment could further support growth in the auto segment, noted Christopher Rolland of Susquehanna.
The recent surge in NVDA stock has driven its valuation higher. However, the analyst believes that its premium valuation is warranted as NVDA is well-positioned to capitalize on its growing end markets.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For instance, shares of big tech giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Nvidia (NASDAQ:NVDA) have defied the weak general market trend and are up about 39%, 41%, 43%, 49%, 126%, and 168%, respectively, on a year-to-date basis. Moreover, investors should note that NVDA, AAPL, and MSFT stocks have recouped all of their post-pandemic losses and are trading near their all-time highs. While the rally reflects equity investors’ buoyant mood on tech stocks, Morgan Stanley’s strategist Mike Wilson anticipates the possibility of a downturn or a correction in the technology sector.
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For instance, shares of big tech giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Nvidia (NASDAQ:NVDA) have defied the weak general market trend and are up about 39%, 41%, 43%, 49%, 126%, and 168%, respectively, on a year-to-date basis. Moreover, investors should note that NVDA, AAPL, and MSFT stocks have recouped all of their post-pandemic losses and are trading near their all-time highs. However, the upside in the shares of these companies based on analysts’ average price targets shows limited upside potential.
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For instance, shares of big tech giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Nvidia (NASDAQ:NVDA) have defied the weak general market trend and are up about 39%, 41%, 43%, 49%, 126%, and 168%, respectively, on a year-to-date basis. Moreover, investors should note that NVDA, AAPL, and MSFT stocks have recouped all of their post-pandemic losses and are trading near their all-time highs. Although the market still exhibits weakness, the expectations of easing monetary policy due to the moderation in the inflation rate, the lower valuation of tech stocks at the start of 2022, and the concerted efforts of these companies to implement cost-cutting measures have all contributed to a revival in their stock prices.
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For instance, shares of big tech giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Nvidia (NASDAQ:NVDA) have defied the weak general market trend and are up about 39%, 41%, 43%, 49%, 126%, and 168%, respectively, on a year-to-date basis. Moreover, investors should note that NVDA, AAPL, and MSFT stocks have recouped all of their post-pandemic losses and are trading near their all-time highs. More recently, the U.S. equity strategist said that a decline in corporate earnings would lead to a correction in stocks.
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15492.0
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2023-06-06 00:00:00 UTC
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Apple's Vision Pro Is Here: 1 Major Reason Tim Cook Missed the Mark
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AAPL
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https://www.nasdaq.com/articles/apples-vision-pro-is-here%3A-1-major-reason-tim-cook-missed-the-mark
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nan
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nan
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It finally happened: After years of rumors, Apple (NASDAQ: AAPL) unveiled what it calls the Apple Vision Pro, arguably the company's most ambitious product since the iPhone transformed it into the multitrillion-dollar goliath it is today.
Just as the Vision Pro aims to immerse users in the digital world like nothing has before, investors are hoping that the product can launch Apple into a new age beyond the iPhone.
Apple's loaded reveal, which included a tie-up with Disney and an appearance from CEO Bob Iger, signaled just how high the company believes the stakes are here.
Unfortunately, one potential mistake could pose a significant problem for Apple. Here is what you need to know.
The Vision Pro finally arrived, and Apple went big
Apple unveiled the Vision Pro at its annual Worldwide Developers Conference. The Vision Pro reflects the company's emphasis on quality, features, and premium materials. The headset features 4K resolution, technology to control it with gestures (no handheld remotes), and a transparent display that blends the digital and real worlds. Users can see the world around them in full color, and the Vision Pro projects 3D objects into their field of view.
But Apple's secret sauce has always been its developer support, software, and ecosystem, where it shines again. Users can do various activities through their Vision Pro, such as make video calls, view streaming media, and play games. It even announced a partnership with Disney to deliver premium content for the device's users.
The Vision Pro has an approximately two-hour battery life and is powered by an external battery pack that users can put into their pockets. Power connects to the headset via a single cable that plugs into the back of the device.
But there's one big problem...
Most might agree that the Vision Pro is impressive, even if some might not like certain features, such as an external battery. But the biggest issue with the Vision Pro is likely its price tag. Apple said that the product will start at $3,499, available next year. One could argue this is a hefty price tag for a first-generation device like this, especially in a still-nascent industry like augmented reality, though cutting-edge tech is rarely cheap.
The cost does warrant discussion from a competitive angle. For starters, it prices the Vision Pro entirely above Meta Platforms' announced Quest 3 headset, which will sell for $499.99, or one-seventh the price, if you're keeping track. Again, that's the starting price.
Apple is a beloved brand, but everyone has limits. Why does Tesla's Model 3 and Model Y outsell the Model S and X by a wide margin? Because people don't always want the best money can buy; they want value ... bang for their buck.
Apple's Vision Pro will probably do more than even the Quest 3 (full details haven't come out from Meta Platforms yet), but it might not matter. Consumers might decide that having something 75% as capable for a far lower price is good enough.
Meta Platforms hit the market first and has built an 80%global marketshare with its Meta/Oculus brand. Apple is pricing its product as if the average consumer -- who is dealing with inflation, resuming student loan payments, and soaring housing costs -- will happily shell out $3,500 or more.
I could be wrong, but I'm struggling to see who will buy this outside of dedicated, high-income customers. It felt like Apple was aiming higher with the Vision Pro than having it be a niche product.
What should investors do with Apple stock?
The Vision Pro won't come out until 2024, but the recent hype around its reveal could have played a role in Apple stock's stellar run. Today, shares are near all-time highs and up 38% since January -- an impressive leap for a multitrillion-dollar stock.
That's excellent news for those holding shares and unfortunate for those looking in from the outside. The stock's valuation has floated to a price-to-earnings ratio (P/E) higher than 30, roughly 50% above the stock's average over the past decade.
AAPL data by YCharts.
Apple probably needs the Vision Pro to be a game-changer to generate growth that could justify this valuation. As it is, analysts believe the company will grow earnings by an average of 12% annually over the next several years.
That might not cut it, which makes the stock one to avoid right now. Apple's new Vision Pro might be a fantastic product, but it doesn't seem like the transformative iPhone moment investors were looking for.
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. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Meta Platforms, Tesla, and Walt Disney. The Motley Fool 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.
The views and 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 finally happened: After years of rumors, Apple (NASDAQ: AAPL) unveiled what it calls the Apple Vision Pro, arguably the company's most ambitious product since the iPhone transformed it into the multitrillion-dollar goliath it is today. AAPL data by YCharts. Just as the Vision Pro aims to immerse users in the digital world like nothing has before, investors are hoping that the product can launch Apple into a new age beyond the iPhone.
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It finally happened: After years of rumors, Apple (NASDAQ: AAPL) unveiled what it calls the Apple Vision Pro, arguably the company's most ambitious product since the iPhone transformed it into the multitrillion-dollar goliath it is today. AAPL data by YCharts. The Vision Pro finally arrived, and Apple went big Apple unveiled the Vision Pro at its annual Worldwide Developers Conference.
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It finally happened: After years of rumors, Apple (NASDAQ: AAPL) unveiled what it calls the Apple Vision Pro, arguably the company's most ambitious product since the iPhone transformed it into the multitrillion-dollar goliath it is today. AAPL data by YCharts. The Vision Pro finally arrived, and Apple went big Apple unveiled the Vision Pro at its annual Worldwide Developers Conference.
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It finally happened: After years of rumors, Apple (NASDAQ: AAPL) unveiled what it calls the Apple Vision Pro, arguably the company's most ambitious product since the iPhone transformed it into the multitrillion-dollar goliath it is today. AAPL data by YCharts. The Vision Pro finally arrived, and Apple went big Apple unveiled the Vision Pro at its annual Worldwide Developers Conference.
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15493.0
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2023-06-06 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
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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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15494.0
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2023-06-06 00:00:00 UTC
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US STOCKS-Futures slip as mixed data clouds Fed policy outlook
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slip-as-mixed-data-clouds-fed-policy-outlook
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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 down: Dow 0.14%, S&P 0.09%, Nasdaq 0.03%
June 6 (Reuters) - Wall Street futures slipped on Tuesday as investors assessed chances of the Federal Reserve holding interest rate at its meeting next week, with mixed data adding to uncertainty around the policy outlook.
The U.S. services sector barely grew in May as new orders slowed, data on Monday showed, pushing a measure of prices paid by businesses for inputs to a three-year low.
While that signaled the Fed's monetary tightening was cooling the world's largest economy, it comes close on the heels of strong jobs data last week, clouding the outlook for the Fed's policy path.
Investors are now focused on inflation data due next week ahead of the Fed meet. Consumer prices are likely to have cooled slightly on a month-over-month basis in May but core prices are expected to have remained sticky.
Fed officials last week made the case for the central bank to keep rates steady at its June 13-14 meeting and look for more factors to ascertain whether the economy was cooling or higher rates were warranted. The officials have entered a "blackout" period.
Fed fund futures imply traders have priced in a 76% chance that the Fed will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool. However, they see 50% odds of another 25-basis-point rate hike in July.
At 5:44 a.m. ET, Dow e-minis 1YMcv1 were down 48 points, or 0.14%, S&P 500 e-minis EScv1 were down 3.75 points, or 0.09%, and Nasdaq 100 e-minis NQcv1 were down 4.25 points, or 0.03%.
U.S. stocks have advanced in recent weeks, with a rally in megacap stocks, a stronger-than-expected earnings season and hopes of a pause in interest rate hikes pushing the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC to fresh 2023 highs on Friday.
Apple Inc AAPL.O slipped 0.5% after hitting a record high in the previous session. The iPhone maker on Monday unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O.
Advanced Micro Devices AMD.O rose 1.8% after Piper Sandler hiked price target on the stock to $150, the second highest on Wall Street, as per Refintiv data.
Oil stocks such as Exxon Mobil XOM.N and Chevron CVX slipped about 1% each as crude prices dropped about 2% each on concerns about the global economic backdrop. O/R
(Reporting by Sruthi Shankar in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O slipped 0.5% after hitting a record high in the previous session. The U.S. services sector barely grew in May as new orders slowed, data on Monday showed, pushing a measure of prices paid by businesses for inputs to a three-year low. The iPhone maker on Monday unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta META.O.
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Apple Inc AAPL.O slipped 0.5% after hitting a record high in the previous session. Futures down: Dow 0.14%, S&P 0.09%, Nasdaq 0.03% June 6 (Reuters) - Wall Street futures slipped on Tuesday as investors assessed chances of the Federal Reserve holding interest rate at its meeting next week, with mixed data adding to uncertainty around the policy outlook. Fed fund futures imply traders have priced in a 76% chance that the Fed will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool.
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Apple Inc AAPL.O slipped 0.5% after hitting a record high in the previous session. Futures down: Dow 0.14%, S&P 0.09%, Nasdaq 0.03% June 6 (Reuters) - Wall Street futures slipped on Tuesday as investors assessed chances of the Federal Reserve holding interest rate at its meeting next week, with mixed data adding to uncertainty around the policy outlook. Fed officials last week made the case for the central bank to keep rates steady at its June 13-14 meeting and look for more factors to ascertain whether the economy was cooling or higher rates were warranted.
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Apple Inc AAPL.O slipped 0.5% after hitting a record high in the previous session. Futures down: Dow 0.14%, S&P 0.09%, Nasdaq 0.03% June 6 (Reuters) - Wall Street futures slipped on Tuesday as investors assessed chances of the Federal Reserve holding interest rate at its meeting next week, with mixed data adding to uncertainty around the policy outlook. While that signaled the Fed's monetary tightening was cooling the world's largest economy, it comes close on the heels of strong jobs data last week, clouding the outlook for the Fed's policy path.
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15495.0
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2023-06-06 00:00:00 UTC
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MORNING BID AMERICAS-Markets level, Aussie hikes, crypto judders
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AAPL
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https://www.nasdaq.com/articles/morning-bid-americas-markets-level-aussie-hikes-crypto-judders
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nan
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nan
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A look at the day ahead in U.S. and global markets from Mike Dolan
As world stock markets levelled off on Tuesday, Australia dampened hopes that central banks were set to pause the interest rate rise cycle, the crypto universe nursed its latest blow, and Apple underwhelmed overnight.
A relatively quiet week for U.S. macroeconomic andmarket newshas investors resting on an assumption the Federal Reserve will skip a rate rise at next week's policy meeting, while considering one last hike in its campaign next month. Soft service sector surveys for May on Monday underlined that idea.
The Reserve Bank of Australia was in no mood to hold off, however. It raised interest rates by a quarter-point on Tuesday to an 11-year high and warned further tightening may be required to ensure that inflation returns to target, boosting the Aussie dollar AUD= as markets had been leaning towards a pause.
Eyes will now be trained on the Bank of Canada's latest policy decision on Wednesday, with many forecasting it will resume tightening interest rates after a four-month pause.
Stock and bond markets remained calm, however. S&P500 futures were mostly flat after a mixed start to the week.
Apple's AAPL.O stock retreated a touch after setting a record high on Monday just before an underwhelming launch of its new gadget.
The firm unveiled a costly augmented-reality headset called the Vision Pro in its riskiest bet since the introduction of the iPhone more than a decade ago.
The Vision Pro will start at $3,499, more than three times the cost of the priciest headset in Meta's line of mixed and virtual reality devices.
The crypto world was far from calm, with Bitcoin BTC= trying to find its feet after a 5% recoil to three-month lows on Monday.
U.S. regulators sued Binance and its CEO Changpeng Zhao on Monday for allegedly operating a "web of deception", piling further pressure on the world's biggest cryptocurrency exchange.
The Securities and Exchange Commission complaint listed 13 charges against Binance, Zhao and the operator of its purportedly independent U.S. exchange. Binance said it "respectfully" disagreed with the SEC's allegations.
But investors have pulled around $790 million from the exchange and its U.S. affiliate in the last 24 hours, data firm Nansen said on Tuesday.
Oil retreated sharply once more despite Saudi Arabia's weekend plans to cut crude output again, with many analysts seeing the solo move as partly a reflection of disagreements within the OPEC cartel.
The euro and euro debt yields slipped back on surveys showing household inflation expectations in the bloc subsiding.
And the yuan slipped lower after reports Chinese authorities had asked the nation's biggest banks to lower their deposit rates for at least the second time in less than a year in an effort to boost the economy.
The dollar .DXY was marginally firmer overall.
Events to watch for later on Tuesday:
* U.S. Secretary of State Antony Blinken visits Saudi Arabia
* U.S. corporate earnings: JM Smucker
Inflation still a concern for RBA https://tmsnrt.rs/45QcjoA
ISM services PMI https://tmsnrt.rs/45Kymx3
US supplies more oil to the world https://tmsnrt.rs/3NcxoCm
How Apple's Augmented Reality headset stacks up against competition https://tmsnrt.rs/3WT6SBy
(By Mike Dolan, editing by XXXX mike.dolan@thomsonreuters.com. Twitter: @reutersMikeD)
((mike.dolan@thomsonreuters.com; +44 207 542 8488; Reuters Messaging: mike.dolan.reuters.com@thomsonreuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's AAPL.O stock retreated a touch after setting a record high on Monday just before an underwhelming launch of its new gadget. It raised interest rates by a quarter-point on Tuesday to an 11-year high and warned further tightening may be required to ensure that inflation returns to target, boosting the Aussie dollar AUD= as markets had been leaning towards a pause. U.S. regulators sued Binance and its CEO Changpeng Zhao on Monday for allegedly operating a "web of deception", piling further pressure on the world's biggest cryptocurrency exchange.
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Apple's AAPL.O stock retreated a touch after setting a record high on Monday just before an underwhelming launch of its new gadget. A look at the day ahead in U.S. and global markets from Mike Dolan As world stock markets levelled off on Tuesday, Australia dampened hopes that central banks were set to pause the interest rate rise cycle, the crypto universe nursed its latest blow, and Apple underwhelmed overnight. Events to watch for later on Tuesday: * U.S. Secretary of State Antony Blinken visits Saudi Arabia * U.S. corporate earnings: JM Smucker Inflation still a concern for RBA https://tmsnrt.rs/45QcjoA ISM services PMI https://tmsnrt.rs/45Kymx3 US supplies more oil to the world https://tmsnrt.rs/3NcxoCm How Apple's Augmented Reality headset stacks up against competition https://tmsnrt.rs/3WT6SBy (By Mike Dolan, editing by XXXX mike.dolan@thomsonreuters.com.
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Apple's AAPL.O stock retreated a touch after setting a record high on Monday just before an underwhelming launch of its new gadget. A look at the day ahead in U.S. and global markets from Mike Dolan As world stock markets levelled off on Tuesday, Australia dampened hopes that central banks were set to pause the interest rate rise cycle, the crypto universe nursed its latest blow, and Apple underwhelmed overnight. It raised interest rates by a quarter-point on Tuesday to an 11-year high and warned further tightening may be required to ensure that inflation returns to target, boosting the Aussie dollar AUD= as markets had been leaning towards a pause.
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Apple's AAPL.O stock retreated a touch after setting a record high on Monday just before an underwhelming launch of its new gadget. A look at the day ahead in U.S. and global markets from Mike Dolan As world stock markets levelled off on Tuesday, Australia dampened hopes that central banks were set to pause the interest rate rise cycle, the crypto universe nursed its latest blow, and Apple underwhelmed overnight. It raised interest rates by a quarter-point on Tuesday to an 11-year high and warned further tightening may be required to ensure that inflation returns to target, boosting the Aussie dollar AUD= as markets had been leaning towards a pause.
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15496.0
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2023-06-06 00:00:00 UTC
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Fast Retailing, trading houses lift Japan's Nikkei to 33-year high
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AAPL
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https://www.nasdaq.com/articles/fast-retailing-trading-houses-lift-japans-nikkei-to-33-year-high
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nan
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By Rocky Swift
TOKYO, June 6 (Reuters) - Japan's Nikkei index extended its climb to scale a near 33-year high on Tuesday, with trading houses and Uniqlo operator Fast Retailing leading the gains on technical support for heavyweight shares ahead of the fixing of special quotation prices.
The Nikkei .N225 recouped from early losses to close nearly 1% higher at 32,506.78. The index ended at its highest level since July 1990.
The broader Topix .TOPX rose 0.74% to 2,236.28.
Ahead of the June 9 setting of special quotation prices used to set values on index options and futures, "stocks with a large contribution to the index were speculatively bought, supporting the market," said Takashi Nakamura, a senior strategist at Tokai Tokyo Research Institute.
Shares of Fast Retailing 9983.T climbed 1.73%, contributing the most to the Nikkei's advance, while trading company Mitsui & Co 8031.T jumped 3.86%.
Mizuho Financial Group 8411.T slipped 0.49%, leading the losses among lenders on reports the U.S. regulators may enact tougher capital requirements following recent bank failures. Advantest 6857.T slid 2.18% after chip-related peers .SOX declined in U.S. trading.
The Nikkei has surged 15% in the past three months, outpacing major global indexes. A technical indicator, known as the 14-day relative strength index (RSI), for the gauge stood at 79, above the 70-mark indicating an overheated market.
"The last few days feel like generally broader buying compared to the last couple of weeks of May," said Mio Kato, the founder of LightStream Research. "Maybe investors more familiar with are Japan rotating a little out of the AI theme, for example, to get broader exposure."
Trading houses .IWHOL.T and mining companies .IMING.T led gains among the 33 industry sub-indexes on the Tokyo Stock Exchange, rising 2.5%. Banks .IBNKS.T led losses, sagging 0.78%.
Nitto Denko 6988.T, a maker of protective films that supplies Apple AAPL.O, climbed 0.9% after the iPhone maker unveiled a costly new augmented-reality headset.
Asset Price Movements 02/06/2023 https://fingfx.thomsonreuters.com/gfx/mkt/myvmoldozvr/Screenshot%202023-06-06%20141235.png
(Reporting by Rocky Swift and Nobuyo Saito in Tokyo; Editing by Rashmi Aich and Sherry Jacob-Phillips)
((rocky.swift@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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Nitto Denko 6988.T, a maker of protective films that supplies Apple AAPL.O, climbed 0.9% after the iPhone maker unveiled a costly new augmented-reality headset. By Rocky Swift TOKYO, June 6 (Reuters) - Japan's Nikkei index extended its climb to scale a near 33-year high on Tuesday, with trading houses and Uniqlo operator Fast Retailing leading the gains on technical support for heavyweight shares ahead of the fixing of special quotation prices. Mizuho Financial Group 8411.T slipped 0.49%, leading the losses among lenders on reports the U.S. regulators may enact tougher capital requirements following recent bank failures.
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Nitto Denko 6988.T, a maker of protective films that supplies Apple AAPL.O, climbed 0.9% after the iPhone maker unveiled a costly new augmented-reality headset. By Rocky Swift TOKYO, June 6 (Reuters) - Japan's Nikkei index extended its climb to scale a near 33-year high on Tuesday, with trading houses and Uniqlo operator Fast Retailing leading the gains on technical support for heavyweight shares ahead of the fixing of special quotation prices. Ahead of the June 9 setting of special quotation prices used to set values on index options and futures, "stocks with a large contribution to the index were speculatively bought, supporting the market," said Takashi Nakamura, a senior strategist at Tokai Tokyo Research Institute.
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Nitto Denko 6988.T, a maker of protective films that supplies Apple AAPL.O, climbed 0.9% after the iPhone maker unveiled a costly new augmented-reality headset. By Rocky Swift TOKYO, June 6 (Reuters) - Japan's Nikkei index extended its climb to scale a near 33-year high on Tuesday, with trading houses and Uniqlo operator Fast Retailing leading the gains on technical support for heavyweight shares ahead of the fixing of special quotation prices. Ahead of the June 9 setting of special quotation prices used to set values on index options and futures, "stocks with a large contribution to the index were speculatively bought, supporting the market," said Takashi Nakamura, a senior strategist at Tokai Tokyo Research Institute.
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Nitto Denko 6988.T, a maker of protective films that supplies Apple AAPL.O, climbed 0.9% after the iPhone maker unveiled a costly new augmented-reality headset. By Rocky Swift TOKYO, June 6 (Reuters) - Japan's Nikkei index extended its climb to scale a near 33-year high on Tuesday, with trading houses and Uniqlo operator Fast Retailing leading the gains on technical support for heavyweight shares ahead of the fixing of special quotation prices. Trading houses .IWHOL.T and mining companies .IMING.T led gains among the 33 industry sub-indexes on the Tokyo Stock Exchange, rising 2.5%.
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15497.0
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2023-06-06 00:00:00 UTC
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Apple's New AR Headset Is a Good Thing for Meta
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AAPL
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https://www.nasdaq.com/articles/apples-new-ar-headset-is-a-good-thing-for-meta
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nan
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nan
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In this video, I will talk about Apple's (NASDAQ: AAPL) newly announced Vision Pro augmented reality (AR) headset and why despite all the noise, this is actually a good thing for Meta Platforms and its Quest line, especially the Quest 3, which will be released later this year.
*Stock prices used were from the trading day of June 5, 2023. The video was published on June 5, 2023.
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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. Neil Rozenbaum has positions in Meta Platforms. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this video, I will talk about Apple's (NASDAQ: AAPL) newly announced Vision Pro augmented reality (AR) headset and why despite all the noise, this is actually a good thing for Meta Platforms and its Quest line, especially the Quest 3, which will be released later this year. 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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In this video, I will talk about Apple's (NASDAQ: AAPL) newly announced Vision Pro augmented reality (AR) headset and why despite all the noise, this is actually a good thing for Meta Platforms and its Quest line, especially the Quest 3, which will be released later this year. 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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In this video, I will talk about Apple's (NASDAQ: AAPL) newly announced Vision Pro augmented reality (AR) headset and why despite all the noise, this is actually a good thing for Meta Platforms and its Quest line, especially the Quest 3, which will be released later this year. 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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In this video, I will talk about Apple's (NASDAQ: AAPL) newly announced Vision Pro augmented reality (AR) headset and why despite all the noise, this is actually a good thing for Meta Platforms and its Quest line, especially the Quest 3, which will be released later this year. 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 and Meta Platforms.
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15498.0
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2023-06-06 00:00:00 UTC
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Is iShares ESG Aware MSCI USA ETF (ESGU) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-esg-aware-msci-usa-etf-esgu-a-strong-etf-right-now-7
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nan
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nan
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Launched on 12/01/2016, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth 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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $13.75 billion, this makes it the largest ETF in the Style Box - All Cap Growth. ESGU is managed by Blackrock. This particular fund, before fees and expenses, seeks to match the performance of the MSCI USA ESG Focus Index.
The MSCI USA Extended ESG Focus Index comprises of U.S. companies that have positive environmental, social and governance characteristics while exhibiting risk and return characteristics similar to those of the parent index.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for ESGU are 0.15%, which makes it one of the cheaper products in the space.
ESGU's 12-month trailing dividend yield is 1.58%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
ESGU's heaviest allocation is in the Information Technology sector, which is about 29.40% of the portfolio. Its Healthcare and Financials round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 7.06% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
ESGU's top 10 holdings account for about 25.88% of its total assets under management.
Performance and Risk
So far this year, ESGU has added roughly 11.56%, and it's up approximately 4.44% in the last one year (as of 06/06/2023). During this past 52-week period, the fund has traded between $79.22 and $95.97.
ESGU has a beta of 1.02 and standard deviation of 19.12% for the trailing three-year period. With about 321 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares ESG Aware MSCI USA ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index. Vanguard ESG U.S. Stock ETF has $6.43 billion in assets, iShares ESG Aware MSCI EAFE ETF has $7.29 billion. ESGV has an expense ratio of 0.09% and ESGD charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
Vanguard ESG U.S. Stock ETF (ESGV): 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, Apple Inc (AAPL) accounts for about 7.06% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/01/2016, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 7.06% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 12/01/2016, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 7.06% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 12/01/2016, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 7.06% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/01/2016, the iShares ESG Aware MSCI USA ETF (ESGU) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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15499.0
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2023-06-05 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq climb as Apple hits record high
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-climb-as-apple-hits-record-high
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nan
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nan
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By Sruthi Shankar and Shristi Achar A
June 5 (Reuters) - The S&P 500 and the Nasdaq rose on Monday, as Apple scaled an all-time peak and investors weighed up chances of the Federal Reserve pausing interest rate hikes at its upcoming policy meeting.
Apple Inc shares AAPL.O rose 1.8% to touch an all-time high ahead of its annual software developer conference later in the day, where the iPhone maker is widely expected to announce a new mixed-reality headset.
Other growth stocks also rose, with Alphabet Inc GOOGL.O gaining 1.8% and Amazon.com Inc AMZN.O adding 0.9%.
U.S. stocks rallied on Friday after a report showed that wage growth moderated in May, raising hopes that the central bank could skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
Traders have priced in a nearly 80% chance that the Fed will hold interest rates at its June 13-14 policy meeting, according to CME Group's Fedwatch tool, though they expect another hike in July.
"We are now waiting for that next major data point and to determine whether the Fed is going to be skipping or pausing or hiking," said Thomas Hayes, chairman at Great Hill Capital LLC.
A stronger-than-expected earnings season and hopes of the Fed pausing its aggressive monetary tightening cycle have boosted U.S. equity markets in recent months, with the rebound putting the S&P 500 on track to close 20% above its October 2022 closing lows.
A survey from the Institute for Supply Management showed the U.S. services sector barely grew in May as new orders slowed, pushing a measure of prices paid by businesses for inputs to a three-year low, which could aid the Fed's fight against inflation.
"It is a bit of a concern because we're very close to that expansion-contraction threshold. It is certainly adding to the uncertainty as to whether we will be slipping into a recession or not," said Sam Stovall, chief investment strategist at CFRA Research.
At 12:02 p.m. ET, the Dow Jones Industrial Average .DJI was down 84.58 points, or 0.25%, at 33,678.18, the S&P 500 .SPX was up 9.23 points, or 0.22%, at 4,291.60, and the Nasdaq Composite .IXIC was up 60.32 points, or 0.46%, at 13,301.08.
Palo Alto Networks Inc PANW.O climbed 5.5% as the cybersecurity firm looks set to replace Dish Network DISH.O in the S&P 500 index. Dish shares fell 1.0%.
Big U.S. banks slipped after the Wall Street Journal reported that U.S. regulators were preparing to tighten rules for large banks, which could include raising their capital requirements by 20% on average.
Tesla IncTSLA.Ogained 1.6% after the electric vehicle maker's sales of China-made cars in China jumped in May.
Declining issues outnumbered advancers for a 1.56-to-1 ratio on the NYSE and for a 1.35-to-1 ratio on the Nasdaq.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru; Editing by Vinay Dwivedi and Anil D'Silva)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc shares AAPL.O rose 1.8% to touch an all-time high ahead of its annual software developer conference later in the day, where the iPhone maker is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - The S&P 500 and the Nasdaq rose on Monday, as Apple scaled an all-time peak and investors weighed up chances of the Federal Reserve pausing interest rate hikes at its upcoming policy meeting. U.S. stocks rallied on Friday after a report showed that wage growth moderated in May, raising hopes that the central bank could skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
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Apple Inc shares AAPL.O rose 1.8% to touch an all-time high ahead of its annual software developer conference later in the day, where the iPhone maker is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - The S&P 500 and the Nasdaq rose on Monday, as Apple scaled an all-time peak and investors weighed up chances of the Federal Reserve pausing interest rate hikes at its upcoming policy meeting. U.S. stocks rallied on Friday after a report showed that wage growth moderated in May, raising hopes that the central bank could skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
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Apple Inc shares AAPL.O rose 1.8% to touch an all-time high ahead of its annual software developer conference later in the day, where the iPhone maker is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - The S&P 500 and the Nasdaq rose on Monday, as Apple scaled an all-time peak and investors weighed up chances of the Federal Reserve pausing interest rate hikes at its upcoming policy meeting. U.S. stocks rallied on Friday after a report showed that wage growth moderated in May, raising hopes that the central bank could skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
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Apple Inc shares AAPL.O rose 1.8% to touch an all-time high ahead of its annual software developer conference later in the day, where the iPhone maker is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - The S&P 500 and the Nasdaq rose on Monday, as Apple scaled an all-time peak and investors weighed up chances of the Federal Reserve pausing interest rate hikes at its upcoming policy meeting. U.S. stocks rallied on Friday after a report showed that wage growth moderated in May, raising hopes that the central bank could skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
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