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15500.0
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2023-06-05 00:00:00 UTC
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Dow Movers: BA, AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-ba-aapl-1
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nan
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nan
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In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.5%. Year to date, Apple registers a 41.4% gain.
And the worst performing Dow component thus far on the day is Boeing, trading down 1.5%. Boeing is showing a gain of 10.3% looking at the year to date performance.
Two other components making moves today are Salesforce, trading down 1.3%, and Walgreens Boots Alliance, trading up 1.2% on the day.
VIDEO: Dow Movers: BA, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.5%. And the worst performing Dow component thus far on the day is Boeing, trading down 1.5%.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.5%. Year to date, Apple registers a 41.4% gain.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.5%. And the worst performing Dow component thus far on the day is Boeing, trading down 1.5%.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Boeing, trading down 1.5%. Boeing is showing a gain of 10.3% looking at the year to date performance.
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15501.0
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2023-06-05 00:00:00 UTC
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Apple Releases Vision Pro Headset - Quick Facts
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AAPL
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https://www.nasdaq.com/articles/apple-releases-vision-pro-headset-quick-facts
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nan
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nan
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(RTTNews) - Apple unveiled Apple Vision Pro, a revolutionary spatial computer that seamlessly blends digital content with the physical world.
The tech major said that Vision Pro creates an infinite canvas for apps that scales beyond the boundaries of a traditional display and introduces a fully three-dimensional user interface controlled by the most natural and intuitive inputs possible — a user's eyes, hands, and voice.
Featuring visionOS, the world's first spatial operating system, Vision Pro lets users interact with digital content in a way that feels like it is physically present in their space.
According to the company, 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.
In a separate press release, Apple said it introduced the 15-inch MacBook Air. Itfeatures a spacious, high-resolution 15.3-inch Liquid Retina display. With the M2 chip, the 15-inch MacBook Air has incredible performance. It's up to 12x faster than the fastest Intel-based MacBook Air.
Apple said its 15-inch MacBook Air delivers extraordinary battery life, with up to 18 hours - 50 percent more than on the PC - even with a better display and better performance.
The 15-inch MacBook Air with M2 is available to order today 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 Tuesday, June 13.
The 15-inch MacBook Air with M2, available in midnight, starlight, silver, and space gray, starts at $1,299 and $1,199 for education.
The 13-inch MacBook Air with M2, available in midnight, starlight, silver, and space gray, now starts at $1,099 and $999 for education.
The 13-inch MacBook Air with M1, available in gold, silver, and space gray, remains in the lineup, starting at $999 and $899 for education.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The tech major said that Vision Pro creates an infinite canvas for apps that scales beyond the boundaries of a traditional display and introduces a fully three-dimensional user interface controlled by the most natural and intuitive inputs possible — a user's eyes, hands, and voice. Featuring visionOS, the world's first spatial operating system, Vision Pro lets users interact with digital content in a way that feels like it is physically present in their space. Apple said its 15-inch MacBook Air delivers extraordinary battery life, with up to 18 hours - 50 percent more than on the PC - even with a better display and better performance.
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It will begin arriving to customers, and in Apple Store locations and Apple Authorized Resellers, beginning Tuesday, June 13. The 15-inch MacBook Air with M2, available in midnight, starlight, silver, and space gray, starts at $1,299 and $1,199 for education. The 13-inch MacBook Air with M2, available in midnight, starlight, silver, and space gray, now starts at $1,099 and $999 for education.
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According to the company, 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. The 15-inch MacBook Air with M2, available in midnight, starlight, silver, and space gray, starts at $1,299 and $1,199 for education. The 13-inch MacBook Air with M2, available in midnight, starlight, silver, and space gray, now starts at $1,099 and $999 for education.
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Featuring visionOS, the world's first spatial operating system, Vision Pro lets users interact with digital content in a way that feels like it is physically present in their space. According to the company, 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. In a separate press release, Apple said it introduced the 15-inch MacBook Air.
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15502.0
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2023-06-05 00:00:00 UTC
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Flat-to-Down Markets on Vision Pro Reveal, Binance Lawsuit
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AAPL
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https://www.nasdaq.com/articles/flat-to-down-markets-on-vision-pro-reveal-binance-lawsuit
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nan
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nan
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After a big Friday in trading, market indices were in a giving mood to start a new week. The Nasdaq and S&P 500 tried to stay in positive territory, but dipped into the red an hour or so before the close. The Dow had maintained levels just below breakeven but closed at session lows, while the small-cap Russell 2000 fought off session lows this morning but stayed well into the red. The Dow lost -0.56%, the Nasdaq -0.08%, the S&P was -0.20% and the Russell -1.31%.
Apple AAPL had reached all-time highs today, just shy of $185 per share, just ahead of its release of new mixed-reality headset Vision Pro — a 3D AR device that puts Apple squarely in the virtual reality game. Vision Pro will list for a fairly steep $3499 and is expected to hit the stores early 2024. However, the news was not enough to sustain Apple’s market value today, as the stock closed in negative territory by -0.06%.
And Binance sold off -9.5% directly following the lawsuit registered against the company by the Securities & Exchange Commission (SEC), which alleges multiple securities violations. Not only this, but nearly all major Bitcoin/crypto-related stocks took a bath today, from -3% to -9% on the session. Alleged unregistered securities offered by the company and the possible commingling of funds were cited as SEC infractions.
Earlier this morning, both May S&P PMI and ISM Services came in below expectations, albeit slightly: 54.9 versus 55.1 expected and put out in the prior month for the former and 50.3% versus 52.3% anticipated came as negative surprises — clearly giving Fed members a strong signal that productivity is coming down in the U.S. economy, even in places that have not been hit yet by higher interest rates. Put this in the “do not raise” column for two weeks from Wednesday.
Factory Orders also cooled off for the month of April, though still in positive territory: +0.4% was 20 basis points (bps) off expectations and less than half the previous month’s +0.9% reported. Again, this is more evidence that, even though overall employment has remained stubbornly high, economic erosion does indeed exist. Another check mark for “do not raise.”
There are no economic prints expected Tuesday, in what is the slowest week for inflation data since the last interest rate hike on May 3rd. Next week, Consumer Price Index (CPI), Producer Price Index (PPI) and Retail Sales will pick things up ahead of the next two-day Fed meeting, which begins two weeks from tomorrow. Last week’s surprisingly strong labor market report cast a bit of a shadow on whether the Fed will indeed pause on June 14th, even though markets sure didn’t trade like it last Friday.
Questions or comments about this article and/or its author? Click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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
The views and 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 had reached all-time highs today, just shy of $185 per share, just ahead of its release of new mixed-reality headset Vision Pro — a 3D AR device that puts Apple squarely in the virtual reality game. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. Earlier this morning, both May S&P PMI and ISM Services came in below expectations, albeit slightly: 54.9 versus 55.1 expected and put out in the prior month for the former and 50.3% versus 52.3% anticipated came as negative surprises — clearly giving Fed members a strong signal that productivity is coming down in the U.S. economy, even in places that have not been hit yet by higher interest rates.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL had reached all-time highs today, just shy of $185 per share, just ahead of its release of new mixed-reality headset Vision Pro — a 3D AR device that puts Apple squarely in the virtual reality game. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL had reached all-time highs today, just shy of $185 per share, just ahead of its release of new mixed-reality headset Vision Pro — a 3D AR device that puts Apple squarely in the virtual reality game. Earlier this morning, both May S&P PMI and ISM Services came in below expectations, albeit slightly: 54.9 versus 55.1 expected and put out in the prior month for the former and 50.3% versus 52.3% anticipated came as negative surprises — clearly giving Fed members a strong signal that productivity is coming down in the U.S. economy, even in places that have not been hit yet by higher interest rates.
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Apple AAPL had reached all-time highs today, just shy of $185 per share, just ahead of its release of new mixed-reality headset Vision Pro — a 3D AR device that puts Apple squarely in the virtual reality game. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. The Nasdaq and S&P 500 tried to stay in positive territory, but dipped into the red an hour or so before the close.
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15503.0
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2023-06-05 00:00:00 UTC
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US STOCKS-S&P 500 ends lower as traders eye potential pause in rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-lower-as-traders-eye-potential-pause-in-rate-hikes-0
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nan
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nan
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By Noel Randewich and Shristi Achar A
June 5 (Reuters) - The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground.
Apple Inc AAPL.O ended lower after the world's most valuable company revamped its lineup of desktop and laptop Macs using its own processor chips ahead of its expected announcement of its first mixed-reality headset. Earlier Apple rose as much as 2.2% to an all-time high.
Other heavyweight growth stocks were mixed, with Nvidia Corp NVDA.O giving back some of its recent gains and Tesla Inc TSLA.O adding as much as 3.4% after the electric vehicle maker's sales of China-made cars in China jumped in May.
The S&P 500 on Friday closed at its highest level in over nine months after a report showed that wage growth moderated in May.
Following a stronger-than-expected earnings season and expectations the Fed could pause its aggressive monetary tightening cycle, the S&P 500 is up nearly 20% from its closing low in October, lifted by gains in heavyweight tech stocks including Apple, Nvidia and Microsoft Corp MSFT.O.
Reinforcing expectations the Fed could pause its rate hikes, 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.
"That bad news is good news in terms of the Fed. The bad news, meaning weak economic reports, is actually good news because it makes it more likely the Fed will pause its series of interest rate hikes, believing they have begun to do their trick bringing inflation down," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York.
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, although they expect another hike in July.
Unofficially, the Dow Jones Industrial Average .DJI fell 200.16 points, or 0.59%, to 33,562.6, the S&P 500 .SPX lost 8.62 points, or 0.20%, to 4,273.75 and the Nasdaq Composite .IXIC dropped 11.34 points, or 0.09%, to 13,229.43.
Palo Alto Networks Inc PANW.Oclimbed, with thecybersecurity firm set to replace Dish Network Corp DISH.O in the S&P 500 index on June 20. Dish shares fell.
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.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru and by Noel Randewich in Oakland, Calif.; Editing by Marguerita Choy)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O ended lower after the world's most valuable company revamped its lineup of desktop and laptop Macs using its own processor chips ahead of its expected announcement of its first mixed-reality headset. By Noel Randewich and Shristi Achar A June 5 (Reuters) - The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground. Other heavyweight growth stocks were mixed, with Nvidia Corp NVDA.O giving back some of its recent gains and Tesla Inc TSLA.O adding as much as 3.4% after the electric vehicle maker's sales of China-made cars in China jumped in May.
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Apple Inc AAPL.O ended lower after the world's most valuable company revamped its lineup of desktop and laptop Macs using its own processor chips ahead of its expected announcement of its first mixed-reality headset. By Noel Randewich and Shristi Achar A June 5 (Reuters) - The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground. Following a stronger-than-expected earnings season and expectations the Fed could pause its aggressive monetary tightening cycle, the S&P 500 is up nearly 20% from its closing low in October, lifted by gains in heavyweight tech stocks including Apple, Nvidia and Microsoft Corp MSFT.O.
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Apple Inc AAPL.O ended lower after the world's most valuable company revamped its lineup of desktop and laptop Macs using its own processor chips ahead of its expected announcement of its first mixed-reality headset. By Noel Randewich and Shristi Achar A June 5 (Reuters) - The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground. Following a stronger-than-expected earnings season and expectations the Fed could pause its aggressive monetary tightening cycle, the S&P 500 is up nearly 20% from its closing low in October, lifted by gains in heavyweight tech stocks including Apple, Nvidia and Microsoft Corp MSFT.O.
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Apple Inc AAPL.O ended lower after the world's most valuable company revamped its lineup of desktop and laptop Macs using its own processor chips ahead of its expected announcement of its first mixed-reality headset. By Noel Randewich and Shristi Achar A June 5 (Reuters) - The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground. 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, although they expect another hike in July.
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15504.0
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2023-06-05 00:00:00 UTC
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Technology Sector Update for 06/05/2023: AAPL, EPAM, SPOT, RTX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-06-05-2023%3A-aapl-epam-spot-rtx
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nan
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nan
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Tech stocks were lower late Monday, with the Technology Select Sector SPDR Fund (XLK) dropping 0.4% and the Philadelphia Semiconductor index falling 1.5%.
In company news, Apple (AAPL) on Monday introduced new products, including the M2 Ultra, a new system on a chip for Mac, and the Vision Pro, an augmented reality headset. The tech giant's shares were shedding 0.8%.
EPAM Systems (EPAM) shares slumped over 21% after it lowered its Q2 and full-year outlook amid "further deterioration in the near-term demand environment."
Spotify Technology (SPOT) said it plans to lay off 200 people, or 2% of its global workforce, impacting the global podcast business and other functions as part of "a strategic realignment." Spotify shares were up 3.1%.
Raytheon Technologies (RTX) is in advanced talks with French aerospace company Safran to sell its actuation unit that makes products like flight controls, Bloomberg reported. The report said a deal would value the Raytheon unit at about $1 billion. Raytheon shares were down 0.3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In company news, Apple (AAPL) on Monday introduced new products, including the M2 Ultra, a new system on a chip for Mac, and the Vision Pro, an augmented reality headset. Tech stocks were lower late Monday, with the Technology Select Sector SPDR Fund (XLK) dropping 0.4% and the Philadelphia Semiconductor index falling 1.5%. Raytheon Technologies (RTX) is in advanced talks with French aerospace company Safran to sell its actuation unit that makes products like flight controls, Bloomberg reported.
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In company news, Apple (AAPL) on Monday introduced new products, including the M2 Ultra, a new system on a chip for Mac, and the Vision Pro, an augmented reality headset. EPAM Systems (EPAM) shares slumped over 21% after it lowered its Q2 and full-year outlook amid "further deterioration in the near-term demand environment." Spotify Technology (SPOT) said it plans to lay off 200 people, or 2% of its global workforce, impacting the global podcast business and other functions as part of "a strategic realignment."
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In company news, Apple (AAPL) on Monday introduced new products, including the M2 Ultra, a new system on a chip for Mac, and the Vision Pro, an augmented reality headset. EPAM Systems (EPAM) shares slumped over 21% after it lowered its Q2 and full-year outlook amid "further deterioration in the near-term demand environment." Raytheon Technologies (RTX) is in advanced talks with French aerospace company Safran to sell its actuation unit that makes products like flight controls, Bloomberg reported.
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In company news, Apple (AAPL) on Monday introduced new products, including the M2 Ultra, a new system on a chip for Mac, and the Vision Pro, an augmented reality headset. Tech stocks were lower late Monday, with the Technology Select Sector SPDR Fund (XLK) dropping 0.4% and the Philadelphia Semiconductor index falling 1.5%. Spotify shares were up 3.1%.
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15505.0
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2023-06-05 00:00:00 UTC
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Japan shares edge higher on boost from miners, Fast Retailing
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AAPL
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https://www.nasdaq.com/articles/japan-shares-edge-higher-on-boost-from-miners-fast-retailing
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nan
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nan
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By Rocky Swift
TOKYO, June 6 (Reuters) - Japan's Nikkei share index edged higher on Tuesday, with mining stocks and Uniqlo operator Fast Retailing leading gains on technical support for heavyweight stocks ahead of the fixing of special quotation prices.
The Nikkei .N225 rose 0.41% to 32,350.58 by the midday break, recovering from an early slide and adding to a 33-year peak climbed on Monday. The broader Topix .TOPX rose 0.19% to 2,224.07.
Ahead of the fixing of special quotation prices on June 9, "stocks with a large contribution to the index were speculatively bought, supporting the market", Tokai Tokyo Research Institute senior strategist Takashi Nakamura said.
Advantest 6857.T slid 2.21% after chip-related peers .SOX declined in U.S. trading. Fast Retailing 9983.T climbed 1.38%, contributing the most a gain in the benchmark Nikkei gauge.
Mizuho Financial Group 8411.T lost 1.17%, pacing declines among lenders on reports U.S. regulators may enact tougher capital requirements following recent bank failures.
U.S. shares ended lower on Monday as investors weighed whether the Federal Reserve's Open Market Committee might pause its interest rate hikes at its upcoming policy meeting. .N
"In both Japan and the U.S., the markets are looking for a pause in the rally or a dip in prices before the FOMC," said Kazuo Kamitami, a strategist at Nomura Securities.
"However, I strongly feel that we could be at the beginning of a very powerful upward trend."
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. Among the Nikkei components, 122 stocks rose and 101 declined.
Mining companies .IMING.T led the gains among the 33 industry sub-indexes, rising 1.55%. Banks .IBNKS.T led losses, sagging 1.27%.
Nitto Denko 6988.T, a maker of protective films that supplies Apple AAPL.O, climbed 0.92% after the IPhone maker unveiled a costly new augmented-reality headset.
(Reporting by Rocky Swift; Editing by Rashmi Aich)
((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 0.92% after the IPhone maker unveiled a costly new augmented-reality headset. Ahead of the fixing of special quotation prices on June 9, "stocks with a large contribution to the index were speculatively bought, supporting the market", Tokai Tokyo Research Institute senior strategist Takashi Nakamura said. Mizuho Financial Group 8411.T lost 1.17%, pacing declines among lenders on reports 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 0.92% after the IPhone maker unveiled a costly new augmented-reality headset. By Rocky Swift TOKYO, June 6 (Reuters) - Japan's Nikkei share index edged higher on Tuesday, with mining stocks and Uniqlo operator Fast Retailing leading gains on technical support for heavyweight stocks ahead of the fixing of special quotation prices. Ahead of the fixing of special quotation prices on June 9, "stocks with a large contribution to the index were speculatively bought, supporting the market", Tokai Tokyo Research Institute senior strategist Takashi Nakamura said.
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Nitto Denko 6988.T, a maker of protective films that supplies Apple AAPL.O, climbed 0.92% after the IPhone maker unveiled a costly new augmented-reality headset. By Rocky Swift TOKYO, June 6 (Reuters) - Japan's Nikkei share index edged higher on Tuesday, with mining stocks and Uniqlo operator Fast Retailing leading gains on technical support for heavyweight stocks ahead of the fixing of special quotation prices. Ahead of the fixing of special quotation prices on June 9, "stocks with a large contribution to the index were speculatively bought, supporting the market", Tokai Tokyo Research Institute senior strategist Takashi Nakamura said.
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Nitto Denko 6988.T, a maker of protective films that supplies Apple AAPL.O, climbed 0.92% after the IPhone maker unveiled a costly new augmented-reality headset. By Rocky Swift TOKYO, June 6 (Reuters) - Japan's Nikkei share index edged higher on Tuesday, with mining stocks and Uniqlo operator Fast Retailing leading gains on technical support for heavyweight stocks ahead of the fixing of special quotation prices. Ahead of the fixing of special quotation prices on June 9, "stocks with a large contribution to the index were speculatively bought, supporting the market", Tokai Tokyo Research Institute senior strategist Takashi Nakamura said.
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15506.0
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2023-06-05 00:00:00 UTC
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Evercore ISI Group Maintains Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/evercore-isi-group-maintains-apple-aapl-outperform-recommendation
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nan
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nan
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Fintel reports that on June 5, 2023, Evercore ISI Group maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 1.62% 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 1.62% from its latest reported closing price of 180.95.
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 unchanged over the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. Total shares owned by institutions decreased in the last three months by 2.47% to 9,913,595K shares.
The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.82% ownership of the company. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.21% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.81% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.49% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
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 5, 2023, Evercore ISI Group maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on June 5, 2023, Evercore ISI Group maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on June 5, 2023, Evercore ISI Group maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on June 5, 2023, Evercore ISI Group maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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15507.0
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2023-06-05 00:00:00 UTC
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B of A Securities Maintains Apple (AAPL) Neutral Recommendation
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AAPL
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https://www.nasdaq.com/articles/b-of-a-securities-maintains-apple-aapl-neutral-recommendation-2
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nan
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nan
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Fintel reports that on June 5, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation.
Analyst Price Forecast Suggests 1.62% 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 1.62% from its latest reported closing price of 180.95.
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 unchanged over the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. Total shares owned by institutions decreased in the last three months by 2.47% to 9,913,595K shares.
The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.82% ownership of the company. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.21% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.81% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.49% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
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 5, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on June 5, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on June 5, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on June 5, 2023, B of A Securities maintained coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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15508.0
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2023-06-05 00:00:00 UTC
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Wedbush Reiterates Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/wedbush-reiterates-apple-aapl-outperform-recommendation-1
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nan
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nan
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Fintel reports that on June 5, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 1.62% 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 1.62% from its latest reported closing price of 180.95.
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 unchanged over the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. Total shares owned by institutions decreased in the last three months by 2.47% to 9,913,595K shares.
The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.82% ownership of the company. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.21% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.81% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.49% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
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 5, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on June 5, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on June 5, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on June 5, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.85%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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15509.0
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2023-06-05 00:00:00 UTC
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4 Things You Have to Know About Artificial Intelligence
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AAPL
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https://www.nasdaq.com/articles/4-things-you-have-to-know-about-artificial-intelligence
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nan
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nan
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Artificial intelligence continues to be a hot topic for investors, and it seems like the winners are clear. But there may be major changes coming in the next few years as more open-source models are used and inference is run on device. In this video, Travis Hoium goes over the big trends you need to watch.
*Stock prices used were end-of-day prices of May 27, 2023. The video was published on May 30, 2023.
10 stocks we like better than Taiwan Semiconductor Manufacturing
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 30, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! The Motley Fool has positions in and recommends ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! 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 ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of May 30, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing.
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In this video, Travis Hoium goes over the big trends you need to watch. The Motley Fool has positions in and recommends ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. Their opinions remain their own and are unaffected by The Motley Fool.
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15510.0
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2023-06-05 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq cling to recent gains as Apple hits record high
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-cling-to-recent-gains-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 Nasdaq on Monday hovered near highs hit in the previous session as Apple scaled an all-time peak, while investors assessed odds of the Federal Reserve pausing interest rate hikes at its upcoming policy meeting.
Apple Inc AAPL.O shares rose 1.5% 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 1.5% and Amazon.com Inc AMZN.O adding 0.4%.
U.S. stocks rallied on Friday after a report showed that wage growth moderated in May, raising hopes that the U.S. central bank could skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
Ahead of key inflation data next week, traders are pricing in a 76% chance that the Fed will choose to hold interest rates in 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.
"We are in the skip camp for now. We could see headline inflation with a '3' handle, which is going to be very good for the Fed to give them cover to skip this month. Hopefully those trends continue, and we can be on a pause until the end of the year."
The benchmark S&P 500 .SPX closed at a fresh nine-month high on Friday and the tech-heavy Nasdaq .IXIC scaled a new one-year peak, underpinned by the jobs reports and gains in megacap companies that have outperformed the broader market this year.
A survey from the Institute for Supply Management showed 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.
At 10:15 a.m. ET, the Dow Jones Industrial Average .DJI was down 90.45 points, or 0.27%, at 33,672.31, the S&P 500 .SPX was down 0.44 points, or 0.01%, at 4,281.93, and the Nasdaq Composite .IXIC was up 9.44 points, or 0.07%, at 13,250.21.
Palo Alto Networks Inc PANW.O climbed 3.4% as the cybersecurity firm looks set to replace Dish Network DISH.O in the S&P 500 index. Dish shares fell 1.8%.
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. Bank of America Corp BAC.N was down 1.1%, while Citigroup Inc C.N slipped 0.9%.
Declining issues outnumbered advancers by a 1.96-to-1 ratio on the NYSE and by a 1.63-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and one new low, while the Nasdaq recorded 48 new highs and 21 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 shares rose 1.5% 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 Nasdaq on Monday hovered near highs hit in the previous session as Apple scaled an all-time peak, while investors assessed odds 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 U.S. 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 AAPL.O shares rose 1.5% 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 Nasdaq on Monday hovered near highs hit in the previous session as Apple scaled an all-time peak, while investors assessed odds 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 U.S. 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 AAPL.O shares rose 1.5% 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 Nasdaq on Monday hovered near highs hit in the previous session as Apple scaled an all-time peak, while investors assessed odds 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 U.S. 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 AAPL.O shares rose 1.5% 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 Nasdaq on Monday hovered near highs hit in the previous session as Apple scaled an all-time peak, while investors assessed odds 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 U.S. 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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15511.0
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2023-06-05 00:00:00 UTC
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Apple shares hit all-time high ahead of developer conference
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AAPL
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https://www.nasdaq.com/articles/apple-shares-hit-all-time-high-ahead-of-developer-conference-0
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nan
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Updates with details on valuation
June 5 (Reuters) - Apple Inc AAPL.O shares hit a record high for the first time in 17 months on Monday, ahead of an annual software developer conference, although their market value remained short of an all-time peak of $3 trillion.
Apple is expected to launch a mixed-reality headset later in the day, which would be its first big move into a new product category since the introduction of the Apple Watch nine years ago.
Shares of the world's most valuable listed company were last up 1.5% at $183.70.They have jumped nearly 40% in 2023, compared with an 11.5% rise in the benchmark S&P 500 .SPX.
Apple became the only company to hit $3 trillion in market capitalization early last year. It was last valued at $2.89 trillion.
The iPhone maker's forward 12-month price-to-earnings ratio is 28.39, compared with the sector median of 12.79.
(Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Updates with details on valuation June 5 (Reuters) - Apple Inc AAPL.O shares hit a record high for the first time in 17 months on Monday, ahead of an annual software developer conference, although their market value remained short of an all-time peak of $3 trillion. Shares of the world's most valuable listed company were last up 1.5% at $183.70.They have jumped nearly 40% in 2023, compared with an 11.5% rise in the benchmark S&P 500 .SPX. (Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva) ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Updates with details on valuation June 5 (Reuters) - Apple Inc AAPL.O shares hit a record high for the first time in 17 months on Monday, ahead of an annual software developer conference, although their market value remained short of an all-time peak of $3 trillion. Apple became the only company to hit $3 trillion in market capitalization early last year. (Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva) ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Updates with details on valuation June 5 (Reuters) - Apple Inc AAPL.O shares hit a record high for the first time in 17 months on Monday, ahead of an annual software developer conference, although their market value remained short of an all-time peak of $3 trillion. Apple is expected to launch a mixed-reality headset later in the day, which would be its first big move into a new product category since the introduction of the Apple Watch nine years ago. Apple became the only company to hit $3 trillion in market capitalization early last year.
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Updates with details on valuation June 5 (Reuters) - Apple Inc AAPL.O shares hit a record high for the first time in 17 months on Monday, ahead of an annual software developer conference, although their market value remained short of an all-time peak of $3 trillion. Shares of the world's most valuable listed company were last up 1.5% at $183.70.They have jumped nearly 40% in 2023, compared with an 11.5% rise in the benchmark S&P 500 .SPX. Apple became the only company to hit $3 trillion in market capitalization early last year.
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15512.0
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2023-06-05 00:00:00 UTC
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US STOCKS-U.S. stocks mixed as traders eye potential pause in rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-u.s.-stocks-mixed-as-traders-eye-potential-pause-in-rate-hikes
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nan
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By Noel Randewich and Shristi Achar A
June 5 (Reuters) - U.S. stocks were mixed on Monday, as Apple Inc hit a record high and investors weighed whether the Federal Reserve may pause its interest rate hikes at its upcoming policy meeting.
Apple AAPL.O was up 0.9% after the world's most valuable company revamped its lineup of desktop and laptop Macs using its own processor chips ahead of its expected announcement of its first mixed-reality headset. Earlier it rose as much as 2.2% to a record high.
Other heavyweight growth stocks also rose, with Alphabet Inc GOOGL.O gaining 1.5% and Tesla TSLA.O adding 2% after the electric vehicle maker's sales of China-made cars in China jumped in May.
U.S. stocks rallied on Friday after a report showed that wage growth moderated in May, raising bets that the central bank could skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
Reinforcing expectations the Fed could pause its rate hikes, 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.
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, although they expect another hike in July.
"That bad news is good news in terms of the Fed. The bad news, meaning weak economic reports, is actually good news because it makes it more likely the Fed will pause its series of interest rate hikes, believing they have begun to do their trick bringing inflation down," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York.
A stronger-than-expected earnings season and expectations the Fed could pause its aggressive monetary tightening cycle have boosted U.S. equity markets in recent months. The S&P 500 was up earlier in Monday's session, briefly on track to close 20% above its October 2022 closing lows.
The S&P 500 was last down 0.03% at 4,280.95 points.
The Nasdaq gained 0.10% to 13,253.86 points, while the Dow Jones Industrial Average was down 0.38% at 33,634.67 points.
Palo Alto Networks Inc PANW.Oclimbed 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.
Of the 11 S&P 500 sector indexes, six declined, led lower by industrials .SPLRCI, down 0.59%, followed by a 0.5% loss in financials .SPSY.
Declining stocks outnumbered rising ones within the S&P 500 .AD.SPX by a 1.3-to-one ratio.
The S&P 500 posted 16 new highs and three new lows; the Nasdaq recorded 85 new highs and 38 new lows.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru; Editing by 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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Apple AAPL.O was up 0.9% after the world's most valuable company revamped its lineup of desktop and laptop Macs using its own processor chips ahead of its expected announcement of its first mixed-reality headset. By Noel Randewich and Shristi Achar A June 5 (Reuters) - U.S. stocks were mixed on Monday, as Apple Inc hit a record high and investors weighed whether the Federal Reserve may pause its 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 bets 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 AAPL.O was up 0.9% after the world's most valuable company revamped its lineup of desktop and laptop Macs using its own processor chips ahead of its expected announcement of its first mixed-reality headset. By Noel Randewich and Shristi Achar A June 5 (Reuters) - U.S. stocks were mixed on Monday, as Apple Inc hit a record high and investors weighed whether the Federal Reserve may pause its interest rate hikes at its upcoming policy meeting. 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, although they expect another hike in July.
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Apple AAPL.O was up 0.9% after the world's most valuable company revamped its lineup of desktop and laptop Macs using its own processor chips ahead of its expected announcement of its first mixed-reality headset. By Noel Randewich and Shristi Achar A June 5 (Reuters) - U.S. stocks were mixed on Monday, as Apple Inc hit a record high and investors weighed whether the Federal Reserve may pause its interest rate hikes at its upcoming policy meeting. Reinforcing expectations the Fed could pause its rate hikes, 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.
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Apple AAPL.O was up 0.9% after the world's most valuable company revamped its lineup of desktop and laptop Macs using its own processor chips ahead of its expected announcement of its first mixed-reality headset. By Noel Randewich and Shristi Achar A June 5 (Reuters) - U.S. stocks were mixed on Monday, as Apple Inc hit a record high and investors weighed whether the Federal Reserve may pause its interest rate hikes at its upcoming policy meeting. Earlier it rose as much as 2.2% to a record high.
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15513.0
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2023-06-05 00:00:00 UTC
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US STOCKS-S&P 500 ends lower as traders eye potential pause in rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-lower-as-traders-eye-potential-pause-in-rate-hikes
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nan
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nan
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By Noel Randewich and Shristi Achar A
June 5 (Reuters) - The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground.
Apple Inc AAPL.O ended 0.8% lower after the world's most valuable company unveiled an augmented-reality headset called the Vision Pro, its riskiest and biggest bet since the introduction of the iPhone. Earlier Apple rose as much as 2.2% to an all-time high.
Other heavyweight growth stocks were mixed, with Nvidia Corp NVDA.Odipping 0.4% and giving back some of its recent gains, and Tesla Inc TSLA.O adding 1.7% after the electric vehicle maker's sales of China-made cars in China jumped in May.
The S&P 500 on Friday closed at its highest level in over nine months after a report showed that wage growth moderated in May.
Following a stronger-than-expected earnings season and expectations the Fed could pause its aggressive monetary tightening cycle, the S&P 500 is up nearly 20% from its closing low in October, lifted by gains in heavyweight tech stocks including Apple, Nvidia and Microsoft Corp MSFT.O.
Reinforcing expectations the Fed could pause its rate hikes, 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.
"That bad news is good news in terms of the Fed. The bad news, meaning weak economic reports, is actually good news because it makes it more likely the Fed will pause its series of interest rate hikes, believing they have begun to do their trick bringing inflation down," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York.
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, although they expect another hike in July.
The S&P 500 declined 0.20% to end the session at 4,273.79 points.
The Nasdaq declined 0.09% to 13,229.43 points, while Dow Jones Industrial Average declined 0.59% to 33,562.86 points.
Of the 11 S&P 500 sector indexes, seven declined, led lower by industrials .SPLRCI, down 0.71%, followed by a 0.58% loss in energy .SPNY.
Palo Alto Networks Inc PANW.O climbed 4.4%, with the cybersecurity firm set to replace Dish Network Corp DISH.O in the S&P 500 index on June 20. Dish shares fell 2.7%.
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.
Declining stocks outnumbered rising ones within the S&P 500 .AD.SPX by a 1.5-to-one ratio.
The S&P 500 posted 17 new highs and four new lows; the Nasdaq recorded 90 new highs and 54 new lows.
Volume on U.S. exchanges was relatively light, with 9.7 billion shares traded, compared to an average of 10.5 billion shares over the previous 20 sessions.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru and by Noel Randewich in Oakland, Calif.; Editing by Marguerita Choy)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O ended 0.8% lower after the world's most valuable company unveiled an augmented-reality headset called the Vision Pro, its riskiest and biggest bet since the introduction of the iPhone. By Noel Randewich and Shristi Achar A June 5 (Reuters) - The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground. Other heavyweight growth stocks were mixed, with Nvidia Corp NVDA.Odipping 0.4% and giving back some of its recent gains, and Tesla Inc TSLA.O adding 1.7% after the electric vehicle maker's sales of China-made cars in China jumped in May.
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Apple Inc AAPL.O ended 0.8% lower after the world's most valuable company unveiled an augmented-reality headset called the Vision Pro, its riskiest and biggest bet since the introduction of the iPhone. By Noel Randewich and Shristi Achar A June 5 (Reuters) - The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground. Following a stronger-than-expected earnings season and expectations the Fed could pause its aggressive monetary tightening cycle, the S&P 500 is up nearly 20% from its closing low in October, lifted by gains in heavyweight tech stocks including Apple, Nvidia and Microsoft Corp MSFT.O.
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Apple Inc AAPL.O ended 0.8% lower after the world's most valuable company unveiled an augmented-reality headset called the Vision Pro, its riskiest and biggest bet since the introduction of the iPhone. By Noel Randewich and Shristi Achar A June 5 (Reuters) - The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground. Following a stronger-than-expected earnings season and expectations the Fed could pause its aggressive monetary tightening cycle, the S&P 500 is up nearly 20% from its closing low in October, lifted by gains in heavyweight tech stocks including Apple, Nvidia and Microsoft Corp MSFT.O.
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Apple Inc AAPL.O ended 0.8% lower after the world's most valuable company unveiled an augmented-reality headset called the Vision Pro, its riskiest and biggest bet since the introduction of the iPhone. By Noel Randewich and Shristi Achar A June 5 (Reuters) - The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground. The S&P 500 declined 0.20% to end the session at 4,273.79 points.
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15514.0
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2023-06-05 00:00:00 UTC
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A New Bull Market Has Arrived
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AAPL
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https://www.nasdaq.com/articles/a-new-bull-market-has-arrived
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nan
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nan
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n Friday, with a gain of 2% for the week, the tech-heavy Nasdaq Composite Index booked its sixth straight week of gains. This marked the index’s longest weekly winning streak since 2020, driven by Q1 earnings results from major tech heavyweights like Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Tesla (TSLA) and Meta Platform (META). For the week, the Dow Jones Industrial Average added 2%, while the S&P 500 Index gained 1.8%.
On a year-to-date basis, the gains are even more pronounced. The Nasdaq has risen 27.47%, compared with a 2022 decline of 34%. The S&P 500 is up 12%, while the Dow, after rising 701.19 points, or 2.12%, to end Friday’s session at 33,762.76, has added a modest gain of 1.89% on the year. Friday’s 700 point jump was the Dow’s best day of the year. Meanwhile, Nvidia, which has soared 172% this year, has helped the Nasdaq to outpace the S&P 500 and Dow so far in 2023.
All of this points to something no one is talking about or is afraid to say: a new bull market is upon us. The collective optimism and the reasons for the year-to-date increases can be attributed to several factors. Investors are applauding the earnings results companies have reported thus far. It’s no longer just a matter of accepting “less bad” results. The “glass-half-full” mindset is over. It has been replaced by strong growth expectations, and companies have delivered.
The forward guidance have been more than encouraging, suggesting CEOs are feeling increased confidence in their ability to navigate inflationary headwinds. This was a major takeaway in Nvidia’s Q1 earnings, during which the company raised its guidance suggesting demand for technologies powering artificial intelligence workloads. Citing strong demand for its GPUs that power AI applications like the ones at Google, Microsoft and ChatGPT maker OpenAI, Nvidia guided for revenue of $11 billion for Q2.
The company’s Q2 forecast blew away Wall Street estimates by more than 50% above the $7.15 billion revenue expected, which suggests that all of the AI craze is more than hype. Established tech companies and startups are scrambling to build out their AI platforms, causing a surge in enterprise demand for GPUs. As a result, Nvidia saw its shares rocket up 26% following its blowout results, bringing its market value to $1 trillion.
Nvidia is now the fifth publicly traded U.S. company to have reached the $1 trillion valuation, joining Apple, Microsoft (MSFT), Google parent Alphabet (GOOG , GOOGL) and Amazon. Meanwhile, there is Tesla. After shares of the electric vehicle company surged 11% for the week, the stock is now up a stunning 74% for the year. This is a remarkable turnaround considering the stock lost roughly two-thirds of its value in 2022. Once seen as a head-scratcher, the company’s strategic and timely price cuts is now showing to have given it a possible market share advantage.
With the Q1 reporting cycle now over, the results area in. Tech stocks have had a strong start to the second half of the year, driven by optimism that the Federal Reserve is close to the end of its rate hike cycle. Higher interest rates, slower growth, and softer labor market conditions has brought down inflation. Surprisingly, the pain that this scenario was expected to bring to households and businesses has been less pronounced than expected thus far.
Combined with the relief over the U.S. debt ceiling, and dampening inflation risk, the market itself has already pivoted from a bear mindset to bull mindset. And it's more than likely that stocks, particularly the mega-cap techs mentioned here, will continue to post strong returns for the remainder of the year.
The views and 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 marked the index’s longest weekly winning streak since 2020, driven by Q1 earnings results from major tech heavyweights like Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Tesla (TSLA) and Meta Platform (META). This was a major takeaway in Nvidia’s Q1 earnings, during which the company raised its guidance suggesting demand for technologies powering artificial intelligence workloads. Citing strong demand for its GPUs that power AI applications like the ones at Google, Microsoft and ChatGPT maker OpenAI, Nvidia guided for revenue of $11 billion for Q2.
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This marked the index’s longest weekly winning streak since 2020, driven by Q1 earnings results from major tech heavyweights like Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Tesla (TSLA) and Meta Platform (META). Investors are applauding the earnings results companies have reported thus far. This was a major takeaway in Nvidia’s Q1 earnings, during which the company raised its guidance suggesting demand for technologies powering artificial intelligence workloads.
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This marked the index’s longest weekly winning streak since 2020, driven by Q1 earnings results from major tech heavyweights like Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Tesla (TSLA) and Meta Platform (META). n Friday, with a gain of 2% for the week, the tech-heavy Nasdaq Composite Index booked its sixth straight week of gains. As a result, Nvidia saw its shares rocket up 26% following its blowout results, bringing its market value to $1 trillion.
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This marked the index’s longest weekly winning streak since 2020, driven by Q1 earnings results from major tech heavyweights like Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), Tesla (TSLA) and Meta Platform (META). The S&P 500 is up 12%, while the Dow, after rising 701.19 points, or 2.12%, to end Friday’s session at 33,762.76, has added a modest gain of 1.89% on the year. As a result, Nvidia saw its shares rocket up 26% following its blowout results, bringing its market value to $1 trillion.
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15515.0
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2023-06-05 00:00:00 UTC
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Is It Too Late to Buy Broadcom Stock?
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AAPL
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https://www.nasdaq.com/articles/is-it-too-late-to-buy-broadcom-stock-0
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nan
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nan
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Broadcom's (NASDAQ: AVGO) stock has surged 45% since the beginning of the year. The diversified chip and infrastructure software company impressed the market with its stable growth, a new multiyear deal with Apple (NASDAQ: AAPL), and the potential benefits from its planned takeover of cloud software giant VMware (NYSE: VMW).
But should investors still buy Broadcom after that massive rally, which outpaced the Philadelphia Semiconductor Index's 38% gain during the same period? Let's review Broadcom's business model, growth rates, and valuations to decide.
Image source: Getty Images.
A rapidly expanding and evolving tech giant
The original Broadcom was acquired by its Singapore-based rival Avago Technologies in 2016. Avago subsequently rebranded itself as the new Broadcom, relocated its headquarters to the U.S., beefed up its chipmaking business with more acquisitions, and expanded into the infrastructure software market by acquiring CA Technologies in 2018 and Symantec's enterprise security unit in 2019. It nearly acquired Qualcomm via a hostile takeover before the U.S. blocked the deal in 2018, and its planned takeover of VMware still needs to clear a lot of regulatory hurdles.
In fiscal 2022 (which ended last October) Broadcom generated 78% of its revenue from its semiconductor business, which produces a wide range of chips for the mobile, data center, networking, wireless, storage, and industrial markets. The other 22% of its revenue came from its infrastructure software business. Here's how those two businesses fared over the past year.
REVENUE GROWTH BY SEGMENT (YOY)
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Semiconductor solutions
29%
32%
26%
21%
9%
Infrastructure software
5%
5%
4%
(1%)
3%
Total
23%
25%
21%
16%
8%
Data source: Broadcom. YOY = year over year.
The growth of Broadcom's semiconductor business decelerated for two reasons: Its sales of mobile chips cooled off as the 5G upgrade cycle ended, while the macro headwinds curbed its sales of chips to IT infrastructure customers. It expects its semiconductor revenue to only rise by mid-single digits year over year in the third quarter, which implies the business hasn't quite reached its cyclical trough yet.
However, two catalysts could revive Broadcom's semiconductor business over the long term. First, Apple -- which accounted for a whopping 20% of Broadcom's revenue in fiscal 2022 -- recently signed a new multibillion-dollar agreement to buy the chipmaker's 5G radio frequency components and other wireless connectivity components. Second, Broadcom expects the growth of the generative AI market -- driven by popular chatbots like ChatGPT -- to boost is sales of data center and infrastructure chips. It believes the AI market will account for more than a quarter of its semiconductor revenue in fiscal 2024 -- compared to 15% of its revenue in fiscal 2023 and 10% of its revenue in fiscal 2022.
Broadcom expects its infrastructure software segment to hold steady as its revenue rises by the low-single digits year over year in the third quarter. It attributes that stable growth to its high renewal rates and successful sales of additional products to its existing customers. If Broadcom closes its acquisition of VMware, it expects to generate about half of its revenue from its infrastructure software business -- which would reduce its dependence on Apple and the cyclical semiconductor market.
Economies of scale are boosting its margins
Broadcom's scale is improving as it acquires, streamlines, and integrates more companies. That's why its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded from 60.4% in fiscal 2021 to 63.3% in fiscal 2022, then rose to 64.4% in the first half of fiscal 2023. It expects to post an even higher adjusted EBITDA margin of 65% in the third quarter. Its free-cash-flow (FCF) margin has also stayed in the high 40s throughout those two and a half years.
Broadcom expects its total revenue to rise 5% year over year in the third quarter, while analysts anticipate 8% growth for the full year. They also expect its adjusted EBITDA to rise 7% for the full year, which would give it an adjusted EBITDA margin of about 63%. Based on those expectations, which don't even factor in its potential gains from VMware, Broadcom's stock still looks surprisingly cheap at 16 times this year's adjusted EBITDA and 19 times its forward adjusted earnings. It also pays a decent forward dividend yield of 2.3%, and it consistently spends its excess cash on big buybacks.
In short, I don't think it's too late to buy Broadcom's stock. Its rally over the past year was justified, its valuations are still low, and three major catalysts -- Apple, AI, and VMware -- could catapult the stock to fresh highs over the next few years.
10 stocks we like better than Broadcom
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 Broadcom 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 May 30, 2023
Leo Sun has positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Apple and Qualcomm. The Motley Fool recommends Broadcom and VMware. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The diversified chip and infrastructure software company impressed the market with its stable growth, a new multiyear deal with Apple (NASDAQ: AAPL), and the potential benefits from its planned takeover of cloud software giant VMware (NYSE: VMW). Avago subsequently rebranded itself as the new Broadcom, relocated its headquarters to the U.S., beefed up its chipmaking business with more acquisitions, and expanded into the infrastructure software market by acquiring CA Technologies in 2018 and Symantec's enterprise security unit in 2019. In fiscal 2022 (which ended last October) Broadcom generated 78% of its revenue from its semiconductor business, which produces a wide range of chips for the mobile, data center, networking, wireless, storage, and industrial markets.
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The diversified chip and infrastructure software company impressed the market with its stable growth, a new multiyear deal with Apple (NASDAQ: AAPL), and the potential benefits from its planned takeover of cloud software giant VMware (NYSE: VMW). Semiconductor solutions 29% 32% 26% 21% 9% Infrastructure software 5% 5% 4% (1%) 3% Total 23% 25% 21% 16% 8% Data source: Broadcom. Broadcom expects its total revenue to rise 5% year over year in the third quarter, while analysts anticipate 8% growth for the full year.
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The diversified chip and infrastructure software company impressed the market with its stable growth, a new multiyear deal with Apple (NASDAQ: AAPL), and the potential benefits from its planned takeover of cloud software giant VMware (NYSE: VMW). Broadcom expects its infrastructure software segment to hold steady as its revenue rises by the low-single digits year over year in the third quarter. If Broadcom closes its acquisition of VMware, it expects to generate about half of its revenue from its infrastructure software business -- which would reduce its dependence on Apple and the cyclical semiconductor market.
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The diversified chip and infrastructure software company impressed the market with its stable growth, a new multiyear deal with Apple (NASDAQ: AAPL), and the potential benefits from its planned takeover of cloud software giant VMware (NYSE: VMW). The other 22% of its revenue came from its infrastructure software business. Broadcom expects its total revenue to rise 5% year over year in the third quarter, while analysts anticipate 8% growth for the full year.
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15516.0
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2023-06-05 00:00:00 UTC
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Jamie Dimon Says Fed Should Pause Rate Hikes: History Says the Stock Market Will Do This Next
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AAPL
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https://www.nasdaq.com/articles/jamie-dimon-says-fed-should-pause-rate-hikes%3A-history-says-the-stock-market-will-do-this
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nan
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nan
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The Federal Reserve has quickly tightened credit conditions over the last 15 months in an effort to reduce inflation. Officials have raised the federal funds rate -- a benchmark interest rate that impacts other rates across the economy, like bank loans and credit cards -- by five percentage points since March 2022, marking the most aggressive series of rate hikes since the early 1980s.
The rationale behind those rate hikes is straightforward: Demand for goods and services drops as the cost of borrowing rises, and that ultimately causes inflation to fall. Indeed, inflation has now decelerated for 10 consecutive months. But tampering with interest rates is not an exact science, and some experts believe the Fed has tightened too aggressively. In fact, analysts at JPMorgan Chase believe a recession is probable before the end of the year.
Last week, JPMorgan Chase CEO Jamie Dimon sat down with Bloomberg to discuss the economy. He candidly told the Fed to "take a pause" on rate hikes, but he also said people should be prepared for rates to go a little higher. Either way, Dimon believes the Fed is nearing the end of its rate hike cycle, and that is good news for investors.
History says the stock market could soar
Since 1970, the Federal Reserve has engaged in 11 rate hike cycles, and theS&P 500 (SNPINDEX: ^GSPC) index has produced an average return of 14.8% during the 12-month period following those cycles. Of course, past results are never a guarantee of future returns, but history makes it clear that the stock market could soar once the Fed reaches the end of the current cycle.
Why might that happen? Rising rates have a contractionary impact on the economy. Once that contractionary stimulus stops, investors may feel more comfortable putting money into the stock market, and that would drive the S&P 500 higher. There are many ways for readers to capitalize on that information, but one of the most logical options is to buy an S&P 500 index fund.
Investors should consider an S&P 500 index fund
The Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks 500 of the largest U.S. companies. Its constituents include value stocks and growth stocks from all 11 market sectors, and that diversity makes it an attractive investment option. Buying shares of the Vanguard S&P 500 ETF is like buying a slice of the U.S. economy.
So what? The U.S. is the largest and most innovative economy the world has ever seen, according to Dimon. Indeed, 8 of the 10 largest companies in the world are U.S. companies. They are detailed below, along with their weighted exposure in the Vanguard S&P 500 ETF.
Apple: 7.2%
Microsoft: 6.5%
Alphabet: 3.4%
Amazon: 2.7%
Nvidia: 1.9%
Berkshire Hathaway: 1.7%
Meta Platforms: 1.5%
Tesla: 1.3%
As discussed, the S&P 500 could rise about 15% following the end of the current rate hike cycle. That would certainly be a nice bounce for investors, but the real reason the Vanguard S&P 500 ETF is worth buying is that the S&P 500 has been a consistent moneymaker over long periods of time. The benchmark index has weathered several bear markets and recessions during the last three decades, and it still produced a total return of 1,600% (or 9.9% annually) during that time. At that pace, $150 invested weekly in the Vanguard S&P 500 ETF would be worth $123,700 in one decade, $441,700 in two decades, and $1.3 million in three decades.
There is no such thing as a surefire investment where the stock market is concerned, but the Vanguard S&P 500 ETF is the next best thing. That's why investors should consider buying this index fund.
10 stocks we like better than Vanguard S&P 500 ETF
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*Stock Advisor returns as of May 30, 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. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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. Trevor Jennewine has positions in Amazon.com, Nvidia, Tesla, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF. 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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Of course, past results are never a guarantee of future returns, but history makes it clear that the stock market could soar once the Fed reaches the end of the current cycle. Apple: 7.2% Microsoft: 6.5% Alphabet: 3.4% Amazon: 2.7% Nvidia: 1.9% Berkshire Hathaway: 1.7% Meta Platforms: 1.5% Tesla: 1.3% As discussed, the S&P 500 could rise about 15% following the end of the current rate hike cycle. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF.
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Apple: 7.2% Microsoft: 6.5% Alphabet: 3.4% Amazon: 2.7% Nvidia: 1.9% Berkshire Hathaway: 1.7% Meta Platforms: 1.5% Tesla: 1.3% As discussed, the S&P 500 could rise about 15% following the end of the current rate hike cycle. See the 10 stocks *Stock Advisor returns as of May 30, 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 Alphabet, Amazon.com, Apple, Berkshire Hathaway, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF.
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Officials have raised the federal funds rate -- a benchmark interest rate that impacts other rates across the economy, like bank loans and credit cards -- by five percentage points since March 2022, marking the most aggressive series of rate hikes since the early 1980s. History says the stock market could soar Since 1970, the Federal Reserve has engaged in 11 rate hike cycles, and theS&P 500 (SNPINDEX: ^GSPC) index has produced an average return of 14.8% during the 12-month period following those cycles. See the 10 stocks *Stock Advisor returns as of May 30, 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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Either way, Dimon believes the Fed is nearing the end of its rate hike cycle, and that is good news for investors. Rising rates have a contractionary impact on the economy. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF.
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15517.0
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2023-06-05 00:00:00 UTC
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US STOCKS-Wall St set for muted open as investors weigh chances of June rate pause
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-muted-open-as-investors-weigh-chances-of-june-rate-pause
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nan
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nan
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By Sruthi Shankar and Shristi Achar A
June 5 (Reuters) - Wall Street futures were set to open subdued on Monday after a solid rally last week, as investors assessed 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 U.S. central bank could skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
Ahead of key inflation data next week, traders are pricing in a 76% chance that the Fed will choose to hold interest rates in 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.
"We are in the skip camp for now. We could see headline inflation with a '3' handle, which is going to be very good for the Fed to give them cover to skip this month. Hopefully those trends continue, and we can be on a pause until the end of the year."
The benchmark S&P 500 .SPX closed at a fresh nine-month high on Friday and the tech-heavy Nasdaq .IXIC scaled a new one-year peak, underpinned by the jobs reports and gains in megacap technology stocks that have outperformed the broader market this year.
Surveys from S&P Global and Institute for Supply Management on U.S. services sector activity in May are due after the opening bell, while Fed Cleveland President Loretta Mester is slated to speak at an event later in the day.
At 8:40 a.m. ET, Dow e-minis 1YMcv1 were down 2 points, or 0.01%, S&P 500 e-minis EScv1 were up 1 points, or 0.02%, and Nasdaq 100 e-minis NQcv1 were down 18 points, or 0.12%.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose 0.5 point to 15.13 after closing at its lowest since February 2020 on Friday.
Apple Inc AAPL.O rose 1.0% in premarket trading ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset.
Energy stocks including Exxon Mobil Corp XOM.N, Chevron Corp CVX.N and Schlumberger Ltd SLB.N rose about 1% each, as oil prices LCOc1, CLc1 jumped 2% after top global exporter Saudi Arabia pledged to cut production by another 1 million barrels per day from July. O/R
Palo Alto Networks Inc PANW.O climbed 4.9% as the cybersecurity firm looks set to replace Dish Network DISH.O in the S&P 500 index. Dish shares fell 2.9%.
Big U.S. banks were mixed 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. Bank of America Corp BAC.N was flat, while Citigroup Inc C.N slipped 0.4%.
(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 rose 1.0% in premarket trading ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - Wall Street futures were set to open subdued on Monday after a solid rally last week, as investors assessed 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 U.S. 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 AAPL.O rose 1.0% in premarket trading ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - Wall Street futures were set to open subdued on Monday after a solid rally last week, as investors assessed 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 U.S. 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 AAPL.O rose 1.0% in premarket trading ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - Wall Street futures were set to open subdued on Monday after a solid rally last week, as investors assessed 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 U.S. 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 AAPL.O rose 1.0% in premarket trading ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - Wall Street futures were set to open subdued on Monday after a solid rally last week, as investors assessed chances of the Federal Reserve pausing interest rate hikes at its upcoming policy meeting. ET, Dow e-minis 1YMcv1 were down 2 points, or 0.01%, S&P 500 e-minis EScv1 were up 1 points, or 0.02%, and Nasdaq 100 e-minis NQcv1 were down 18 points, or 0.12%.
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15518.0
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2023-06-05 00:00:00 UTC
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Risk-On In Small-Caps After iShares Russell 2000 ETF Breaks Out
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AAPL
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https://www.nasdaq.com/articles/risk-on-in-small-caps-after-ishares-russell-2000-etf-breaks-out
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nan
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nan
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The iShares Russell 2000 ETF (NYSE: IWM) has displayed relative weakness and lagged the overall market over the previous year. However, it notably broke that trend last week and finally showed signs of life. The IWM is a float-adjusted, capitalization-weighted index that measures the performance of the U.S. equity market's small-capitalization (small-caps) sector. Last week, the IWM impressively outperformed the leading industry in the market, technology - Invesco QQQ (NASDAQ: QQQ) and the S&P500 – SPDR S&P 500 ETF (NYSE: SPY).
It's no surprise that the IWM underperformed over the previous year. During periods of downturn and uncertainty in the markets, small-cap, speculative stocks have consistently underperformed and experienced risk-off outflows.
IWM vs. SPY
YTD, the IWM is up 4.39%, mainly thanks to its performance last week, closing the week up 4.51%. While that might sound impressive given the overall market's performance, it still lacks in comparison to the SPY ETF, which is up 11.89% YTD.
The relative weakness is seen in the above chart, comparing the performance of IWM to SPY. If you'd like to conduct a similar study, click the plus symbol on the MarketBeat chart.
After bottoming out in March, the IWM traded sideways between $170 and $180. During that period, SPY, primarily driven by the strength in technology and a handful of market-leading names, has been trending higher and closed the week at YTD highs.
The uptrend and notable strength in the overall markets have resulted in a long-awaited breakout in small-caps and the IWM, as speculative capital looks to be flowing back into a sector traditionally holding more considerable risk.
For example, U Power (NASDAQ: UCAR), a company with a $472.28 million market capitalization, thereby making it a small-cap stock, experienced a significant surge in volume and value after the company announced a strategic cooperation agreement last week. Shares of the company closed the week up 157.43% and traded close to 200m in volume in the two days following the announcement. Such follow-through for a small-cap, in both volume and price action, points towards increased optimism and speculation for small-cap stocks.
UCAR was not an isolated event, with several other small-cap stocks experiencing an uptick in volume and price. The breakout in IWM and relative strength displayed versus other indexes and medium to large-cap stocks is a clear shift in sentiment and one to pay close attention to.
The Long-Awaited Breakout in IWM
Since the beginning of 2023, the IWM has spent most of its time lagging behind the overall market and trading near crucial support in the low $170s. While a handful of market-leading names have soared higher, like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA), helping the overall market and specific respective sectors outperform, it's primarily been risk-off for the IWM and small-cap stocks.
However, the breakout over resistance on Friday, with a surge in volume, represents a shift in sentiment and momentum. The IWM traded over 49m shares on Friday, considerably higher than its 32.76 million average daily volume. The range expanded on the day, with the stock experiencing a daily range of 4.64 versus its ATR of 3.33. The increased range and volume signal a shift in sentiment and provide validity to the breakout and newfound risk-on environment.
Should You Invest in the IWM?
The tide might be quickly shifting for the small-cap stocks and the IWM. Friday's breakout confirmed that, with the IWM trading above all short-term key SMA's on increased volume and strength. Notably, several individual small-caps, like UCAR, experienced follow-through to the upside after releasing breaking news.
With the breakout still fresh in the IWM, the risk: reward at current levels remains attractive for investors who might have been stalking the ETF for entry and exposure to small-cap stocks. If the IWM can continue to display relative strength and find price stability over the previous resistance of $180, the ETF might be heading towards $185 - $190 in the short term.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While a handful of market-leading names have soared higher, like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA), helping the overall market and specific respective sectors outperform, it's primarily been risk-off for the IWM and small-cap stocks. The uptrend and notable strength in the overall markets have resulted in a long-awaited breakout in small-caps and the IWM, as speculative capital looks to be flowing back into a sector traditionally holding more considerable risk. The breakout in IWM and relative strength displayed versus other indexes and medium to large-cap stocks is a clear shift in sentiment and one to pay close attention to.
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While a handful of market-leading names have soared higher, like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA), helping the overall market and specific respective sectors outperform, it's primarily been risk-off for the IWM and small-cap stocks. The iShares Russell 2000 ETF (NYSE: IWM) has displayed relative weakness and lagged the overall market over the previous year. During that period, SPY, primarily driven by the strength in technology and a handful of market-leading names, has been trending higher and closed the week at YTD highs.
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While a handful of market-leading names have soared higher, like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA), helping the overall market and specific respective sectors outperform, it's primarily been risk-off for the IWM and small-cap stocks. IWM vs. SPY YTD, the IWM is up 4.39%, mainly thanks to its performance last week, closing the week up 4.51%. For example, U Power (NASDAQ: UCAR), a company with a $472.28 million market capitalization, thereby making it a small-cap stock, experienced a significant surge in volume and value after the company announced a strategic cooperation agreement last week.
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While a handful of market-leading names have soared higher, like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA), helping the overall market and specific respective sectors outperform, it's primarily been risk-off for the IWM and small-cap stocks. The iShares Russell 2000 ETF (NYSE: IWM) has displayed relative weakness and lagged the overall market over the previous year. IWM vs. SPY YTD, the IWM is up 4.39%, mainly thanks to its performance last week, closing the week up 4.51%.
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15519.0
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2023-06-05 00:00:00 UTC
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Warren Buffett Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-detailed-fundamental-analysis-aapl-1
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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15520.0
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2023-06-05 00:00:00 UTC
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US STOCKS-Futures muted as investors weigh chances of June rate pause
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-muted-as-investors-weigh-chances-of-june-rate-pause
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nan
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nan
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By Sruthi Shankar and Shristi Achar A
June 5 (Reuters) - Wall Street futures were subdued on Monday after a solid rally last week, as investors assessed 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 U.S. central bank could skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
The benchmark S&P 500 .SPX closed at a fresh nine-month high on Friday and the tech-heavy Nasdaq .IXIC scaled a new one-year peak, underpinned by gains in megacap technology stocks that have outperformed the broader market this year.
Traders are pricing in a 77% chance that the Fed will hold interest rates at 5%-5.25% in its June 13-14 policy meeting, according to CME Group's Fedwatch tool, though they expect another hike in July.
"Inflation does appear to be coming down on the headline level, as are producer prices at a faster rate and these tend to be leading indicators, even with core prices being sticky," said Michael Hewson chief market analyst at CMC Markets.
"That would suggest that core prices will come down, albeit at a much slower rate than originally thought."
Surveys from S&P Global and Institute for Supply Management on U.S. services sector activity in May are due after the opening bell, while Fed Cleveland President Loretta Mester is slated to speak at an event later in the day.
At 7:18 a.m. ET, Dow e-minis 1YMcv1 were up 31 points, or 0.09%, S&P 500 e-minis EScv1 were up 2.75 points, or 0.06%, and Nasdaq 100 e-minis NQcv1 were down 17 points, or 0.12%.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose 0.6 point to 15.17 after closing at its lowest since February 2020 on Friday.
Energy stocks including Exxon Mobil Corp XOM.N, Chevron Corp CVX.N and Schlumberger Ltd SLB.N rose about 1% each in premarket trading, as oil prices LCOc1, CLc1 jumped 2% after top global exporter Saudi Arabia pledged to cut production by another 1 million barrels per day from July. O/R
Palo Alto Networks Inc PANW.O climbed 4.6% as the cybersecurity firm looks set to replace Dish Network DISH.O in the S&P 500 index. Dish shares tumbled 3.2%.
Big U.S. banks were mixed 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. Bank of America Corp BAC.N edged up 0.1%, while Citigroup Inc C.N slipped 0.2%.
Apple Inc AAPL.O rose 1.0% ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset.
(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 rose 1.0% ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - Wall Street futures were subdued on Monday after a solid rally last week, as investors assessed 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 U.S. 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 AAPL.O rose 1.0% ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - Wall Street futures were subdued on Monday after a solid rally last week, as investors assessed chances of the Federal Reserve pausing interest rate hikes at its upcoming policy meeting. Traders are pricing in a 77% chance that the Fed will hold interest rates at 5%-5.25% in its June 13-14 policy meeting, according to CME Group's Fedwatch tool, though they expect another hike in July.
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Apple Inc AAPL.O rose 1.0% ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - Wall Street futures were subdued on Monday after a solid rally last week, as investors assessed 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 U.S. 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 AAPL.O rose 1.0% ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. By Sruthi Shankar and Shristi Achar A June 5 (Reuters) - Wall Street futures were subdued on Monday after a solid rally last week, as investors assessed chances of the Federal Reserve pausing interest rate hikes at its upcoming policy meeting. The benchmark S&P 500 .SPX closed at a fresh nine-month high on Friday and the tech-heavy Nasdaq .IXIC scaled a new one-year peak, underpinned by gains in megacap technology stocks that have outperformed the broader market this year.
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15521.0
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2023-06-05 00:00:00 UTC
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Apple expected to reveal mixed-reality headset at developer conference
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AAPL
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https://www.nasdaq.com/articles/apple-expected-to-reveal-mixed-reality-headset-at-developer-conference
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nan
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nan
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By Stephen Nellis
CUPERTINO, California, June 5 (Reuters) - Apple Inc AAPL.O is expected to unveil a mixed-reality headset at its annual software developer conference on Monday, its first big move into a new product category since the introduction of the Apple Watch nine years ago.
The launch will see Apple test a market crowded with devices that have yet to gain traction with consumers and put it in direct competition with Facebook-owner Meta Platforms META.O.
Like Meta's Quest Pro from last year and Quest 3 announced last week, Apple's device is likely to blend a video feed from the outside world with a virtual world displayed on screens inside the headset.
Analysts expect Apple's headset to come with premium features including a high-quality display and hand-tracking so it can be controlled without an external controller. It's also likely to cost much more than the planned $500 Quest 3.
Investors and tech fans alike will be focusing on how much Apple's view of the virtual reality market overlaps with Meta's. Meta Chief Executive Mark Zuckerberg has outlined his vision for using headsets to dip in and out of a "metaverse" where people can meet virtually to work, play and spend.
In addition to Meta, Sony Group Corp 6758.T and ByteDance-owned Pico both recently released virtual reality devices.
Research firm IDC said companies sold a total of 8.8 million headsets last year, down 20.9% from 2021. In the first quarter of 2023, sales more than halved.
Apple's presentation on Monday is mostly aimed at sparking the imaginations of the thousands of software developers who will stream into Apple Park for a keynote address at 1 p.m. Eastern Time (1700 GMT).
Apple will also deliver updates on its operating systems for iPhones, iPads and Mac computers.
Investors will also look for updates on CarPlay, Apple's software for vehicles, which the company said last year would start to power more dashboard functions.
(Reporting by Stephen Nellis in San Francisco; Editing by Edwina Gibbs)
((Stephen.Nellis@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 Stephen Nellis CUPERTINO, California, June 5 (Reuters) - Apple Inc AAPL.O is expected to unveil a mixed-reality headset at its annual software developer conference on Monday, its first big move into a new product category since the introduction of the Apple Watch nine years ago. The launch will see Apple test a market crowded with devices that have yet to gain traction with consumers and put it in direct competition with Facebook-owner Meta Platforms META.O. Meta Chief Executive Mark Zuckerberg has outlined his vision for using headsets to dip in and out of a "metaverse" where people can meet virtually to work, play and spend.
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By Stephen Nellis CUPERTINO, California, June 5 (Reuters) - Apple Inc AAPL.O is expected to unveil a mixed-reality headset at its annual software developer conference on Monday, its first big move into a new product category since the introduction of the Apple Watch nine years ago. Analysts expect Apple's headset to come with premium features including a high-quality display and hand-tracking so it can be controlled without an external controller. Investors and tech fans alike will be focusing on how much Apple's view of the virtual reality market overlaps with Meta's.
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By Stephen Nellis CUPERTINO, California, June 5 (Reuters) - Apple Inc AAPL.O is expected to unveil a mixed-reality headset at its annual software developer conference on Monday, its first big move into a new product category since the introduction of the Apple Watch nine years ago. Like Meta's Quest Pro from last year and Quest 3 announced last week, Apple's device is likely to blend a video feed from the outside world with a virtual world displayed on screens inside the headset. Apple's presentation on Monday is mostly aimed at sparking the imaginations of the thousands of software developers who will stream into Apple Park for a keynote address at 1 p.m. Eastern Time (1700 GMT).
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By Stephen Nellis CUPERTINO, California, June 5 (Reuters) - Apple Inc AAPL.O is expected to unveil a mixed-reality headset at its annual software developer conference on Monday, its first big move into a new product category since the introduction of the Apple Watch nine years ago. The launch will see Apple test a market crowded with devices that have yet to gain traction with consumers and put it in direct competition with Facebook-owner Meta Platforms META.O. Investors and tech fans alike will be focusing on how much Apple's view of the virtual reality market overlaps with Meta's.
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15522.0
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2023-06-05 00:00:00 UTC
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Is FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-flexshares-morningstar-u.s.-market-factor-tilt-etf-tilt-a-strong-etf-right-now-7
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nan
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nan
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Making its debut on 09/16/2011, smart beta exchange traded fund FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
TILT is managed by Flexshares, and this fund has amassed over $1.44 billion, which makes it one of the larger ETFs in the Style Box - All Cap Blend. This particular fund, before fees and expenses, seeks to match the performance of the Morningstar U.S. Market Factor Tilt Index.
The Morningstar U.S. Market Factor Tilt Index measures the performance of U.S. equity markets with increased exposure toward small-capitalization and value stocks.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.25% for TILT, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.47%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For TILT, it has heaviest allocation in the Information Technology sector --about 23% of the portfolio --while Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 4.54% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN).
TILT's top 10 holdings account for about 18.05% of its total assets under management.
Performance and Risk
So far this year, TILT return is roughly 9.42%, and was up about 1.54% in the last one year (as of 06/05/2023). During this past 52-week period, the fund has traded between $138.28 and $166.90.
The fund has a beta of 1.08 and standard deviation of 19.59% for the trailing three-year period, which makes TILT a medium risk choice in this particular space. With about 2123 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares Morningstar U.S. Market Factor Tilt ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. IShares Core S&P Total U.S. Stock Market ETF has $43.09 billion in assets, Vanguard Total Stock Market ETF has $294.43 billion. ITOT has an expense ratio of 0.03% and VTI charges 0.03%.
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 Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
iShares Core S&P Total U.S. Stock Market ETF (ITOT): 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 Common Stock Usd 0.00001 (AAPL) accounts for about 4.54% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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Looking at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 4.54% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index.
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Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 4.54% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Making its debut on 09/16/2011, smart beta exchange traded fund FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
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Looking at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 4.54% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 09/16/2011, smart beta exchange traded fund FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
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15523.0
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2023-06-05 00:00:00 UTC
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Should SPDR Portfolio S&P 500 ETF (SPLG) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-etf-splg-be-on-your-investing-radar-8
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the SPDR Portfolio S&P 500 ETF (SPLG), a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $17.62 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
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
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 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.54%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 25.75% of total assets under management.
Performance and Risk
SPLG seeks to match the performance of the Russell 1000 Index before fees and expenses. The S&P 500 Index is designed to measure the performance of the large-capitalization segment of the U.S. equity market.
The ETF has added about 12.30% so far this year and is up roughly 4.09% in the last one year (as of 06/05/2023). In the past 52-week period, it has traded between $41.93 and $50.54.
The ETF has a beta of 1 and standard deviation of 18.63% for the trailing three-year period. With about 506 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPLG 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 billion in assets, SPDR S&P 500 ETF has $403.18 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR Portfolio S&P 500 ETF (SPLG): 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 6.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 $17.62 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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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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. You should consider the SPDR Portfolio S&P 500 ETF (SPLG), a passively managed exchange traded fund launched on 11/08/2005.
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Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 6.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Alternatives SPDR Portfolio S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 $17.62 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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15524.0
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2023-06-05 00:00:00 UTC
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Prediction: These 2 Stocks Will Be Warren Buffett's Biggest Winners of the Decade
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https://www.nasdaq.com/articles/prediction%3A-these-2-stocks-will-be-warren-buffetts-biggest-winners-of-the-decade
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Warren Buffett knows a thing or two about picking winners. He wouldn't have a net worth of over $110 billion if he didn't.
It's easy to look back to find Buffett's biggest winners of the past. Names such as American Express, Apple (NASDAQ: AAPL), and Coca-Cola stand out.
But what about which of the legendary investor's stocks might make the list in the future? There's no way to know for sure. However, I predict that two stocks will be Buffett's biggest winners of the decade.
Setting the ground rules
Allow me to first clarify some details about my prediction. By decade, I'm referring to the period between Jan. 1, 2020, and Dec. 31, 2029. I know some people think the decade began in 2021, but those are the start and end dates I chose to use.
Also, I'm limiting my prognostication abilities to the stocks in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio right now. It's entirely possible that Buffett could buy a stock next month that goes on to be one of his best performers. In addition, I'm assuming that he holds onto the two stocks I picked through the end of the decade (which may or may not be a good assumption).
Finally, my use of the term "biggest winners" refers to the stocks that deliver the highest percentage total returns over the decade.
Buffett's top two
Now for my prediction. I think that Buffett's two biggest winners of the decade will be (drum roll, please)... Amazon (NASDAQ: AMZN) and Occidental Petroleum (NYSE: OXY).
It's important to note that both stocks have started out the decade strongly. Even with the market meltdown of 2020 and the big slump last year, Amazon's shares are still up more than 30% so far this decade. The huge gain achieved in 2023 has helped tremendously.
Sure, Occidental Petroleum's share price has fallen somewhat year to date. This decline, though, doesn't come close to offsetting the oil stock's great performance in recent years. Occidental stock has soared more than 40% since the beginning of the decade.
However, Buffett didn't own Oxy throughout this period. He had a previous position in the oil stock but exited it completely in the second quarter of 2020. Berkshire revealed that it had initiated a new position in Occidental in early March 2022. Since then, the stock has risen close to 25%.
Why they'll be big winners
I think that Amazon will be a big winner in the coming years for a couple of key reasons. Most importantly, the company's Amazon Web Services (AWS) cloud services business has phenomenal growth prospects.
Global IT spending is currently split more than 90% on-premises and less than 10% in the cloud. Amazon CEO Andy Jassy believes that these numbers will flip over the next 10 to 15 years. I agree, especially with AI fueling the transition. AWS will be a big beneficiary of the trend.
My view is that Amazon will make solid gains in its e-commerce business. The company's supply chain gives it a tremendous competitive advantage that isn't going away.
I also like Occidental's growth prospects. That might seem odd considering that some predict the demand for fossil fuels will decline. However, S&P Global Platts Analytics projects that oil demand won't peak until 2040. I suspect that timing is about right.
Occidental should have significant new opportunities in carbon capture as well. The company is investing heavily to build facilities that capture carbon directly from the air.
There's also the likelihood that Buffett isn't finished buying shares of Occidental. Berkshire's purchases can provide a real catalyst for the stock. The conglomerate currently owns close to 25% of Occidental but secured regulatory approval last year to acquire up to 50% of the company.
The biggest moneymaker for Buffett
Even if I'm right that Amazon and Occidental will be Buffett's biggest winners of the decade, they probably won't be his biggest moneymakers. Why? He doesn't own nearly as many shares of either company as he does of several others.
I predict that Buffett's biggest moneymaker will almost certainly be Apple. The tech giant currently ranks as Berkshire's biggest holding by far, comprising more than 48% of the conglomerate's total portfolio. If Apple's share price rises solidly over the next six and a half years (which I expect will happen), it should easily make more money for Buffett than Amazon and Occidental combined.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Names such as American Express, Apple (NASDAQ: AAPL), and Coca-Cola stand out. Finally, my use of the term "biggest winners" refers to the stocks that deliver the highest percentage total returns over the decade. I think that Buffett's two biggest winners of the decade will be (drum roll, please)... Amazon (NASDAQ: AMZN) and Occidental Petroleum (NYSE: OXY).
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Names such as American Express, Apple (NASDAQ: AAPL), and Coca-Cola stand out. Also, I'm limiting my prognostication abilities to the stocks in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio right now. Most importantly, the company's Amazon Web Services (AWS) cloud services business has phenomenal growth prospects.
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Names such as American Express, Apple (NASDAQ: AAPL), and Coca-Cola stand out. However, I predict that two stocks will be Buffett's biggest winners of the decade. I think that Buffett's two biggest winners of the decade will be (drum roll, please)... Amazon (NASDAQ: AMZN) and Occidental Petroleum (NYSE: OXY).
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Names such as American Express, Apple (NASDAQ: AAPL), and Coca-Cola stand out. However, I predict that two stocks will be Buffett's biggest winners of the decade. He doesn't own nearly as many shares of either company as he does of several others.
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15525.0
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2023-06-05 00:00:00 UTC
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US STOCKS-Futures subdued as investors weigh chances of rate pause
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https://www.nasdaq.com/articles/us-stocks-futures-subdued-as-investors-weigh-chances-of-rate-pause
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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: Dow up 0.12%, S&P up 0.01%, Nasdaq down 0.27%
June 5 (Reuters) - Wall Street futures were subdued on Monday after a solid rally last week, as investors weighed the possibility of a pause in interest rate hikes by the Federal Reserve at its upcoming policy meeting.
U.S. stocks rallied on Friday after a labor market report showing moderating wage growth in May indicated the U.S. central bank may skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
The benchmark S&P 500 .SPX closed at a fresh nine-month high on Friday and the tech-heavy Nasdaq .IXIC scaled a new one-year peak, underpinned by gains in megacap technology stocks that have outperformed the broader market this year.
Traders are pricing in a 78.2% chance that the Fed will hold interest rates at the conclusion of its June 13-14 policy meeting, according to CME Group's Fedwatch tool, though they expect another hike in July.
Surveys from S&P Global and Institute for Supply Management on U.S. services sector activity in May are due after the opening bell, while Fed Cleveland President Loretta Mester is slated to speak at an event later in the day.
At 5:55 a.m. ET, Dow e-minis 1YMcv1 were up 40 points, or 0.12%, S&P 500 e-minis EScv1 were up 0.25 points, or 0.01%, and Nasdaq 100 e-minis NQcv1 were down 39.25 points, or 0.27%.
Energy stocks including Exxon Mobil Corp XOM.N, Chevron Corp CVX.N and Schlumberger Ltd SLB.N rose about 1% each in premarket trading, as oil prices LCOc1, CLc1 jumped more than 2% after top global exporter Saudi Arabia pledged to cut production by another 1 million barrels per day from July. O/R
Palo Alto Networks Inc PANW.O climbed 5.3% as the cybersecurity firm looks set to replace Dish Network DISH.O in the S&P 500 index. Dish shares tumbled 7.8%.
Big U.S. banks were mixed 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. Bank of America Corp BAC.N climbed 0.2%, while Citigroup Inc C.N slipped 0.2%.
Apple Inc AAPL.O edged up 0.6% ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset.
(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 edged up 0.6% ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. U.S. stocks rallied on Friday after a labor market report showing moderating wage growth in May indicated the U.S. central bank may skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default. The benchmark S&P 500 .SPX closed at a fresh nine-month high on Friday and the tech-heavy Nasdaq .IXIC scaled a new one-year peak, underpinned by gains in megacap technology stocks that have outperformed the broader market this year.
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Apple Inc AAPL.O edged up 0.6% ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. Futures: Dow up 0.12%, S&P up 0.01%, Nasdaq down 0.27% June 5 (Reuters) - Wall Street futures were subdued on Monday after a solid rally last week, as investors weighed the possibility of a pause in interest rate hikes by the Federal Reserve at its upcoming policy meeting. Traders are pricing in a 78.2% chance that the Fed will hold interest rates at the conclusion of its June 13-14 policy meeting, according to CME Group's Fedwatch tool, though they expect another hike in July.
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Apple Inc AAPL.O edged up 0.6% ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. Futures: Dow up 0.12%, S&P up 0.01%, Nasdaq down 0.27% June 5 (Reuters) - Wall Street futures were subdued on Monday after a solid rally last week, as investors weighed the possibility of a pause in interest rate hikes by the Federal Reserve at its upcoming policy meeting. U.S. stocks rallied on Friday after a labor market report showing moderating wage growth in May indicated the U.S. central bank may skip a rate hike next week, while investors welcomed a Washington deal that avoided a catastrophic debt default.
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Apple Inc AAPL.O edged up 0.6% ahead of its annual software developer conference, where it is widely expected to announce a new mixed-reality headset. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures: Dow up 0.12%, S&P up 0.01%, Nasdaq down 0.27% June 5 (Reuters) - Wall Street futures were subdued on Monday after a solid rally last week, as investors weighed the possibility of a pause in interest rate hikes by the Federal Reserve at its upcoming policy meeting.
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15526.0
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2023-06-05 00:00:00 UTC
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Warren Buffett's Secret Portfolio Just Issued a Big-Time Warning to Wall Street
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https://www.nasdaq.com/articles/warren-buffetts-secret-portfolio-just-issued-a-big-time-warning-to-wall-street
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When it comes to investing, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is in a class of his own. Though there is no shortage of Wall Street analysts, pundits, and money managers that make their rounds on the major television networks, it's the Oracle of Omaha that's doubled up the average annualized total return of the broad-based S&P 500 (SNPINDEX: ^GSPC) over a 58-year stretch (19.8% vs. 9.9%).
Warren Buffett's ability to run circles around Wall Street is what helped grow the fanfare associated with Berkshire Hathaway's annual meetings from a couple dozen people in 1973 to more than 30,000 on an annual basis. Investors and Berkshire Hathaway shareholders eagerly await his nuggets of wisdom on the U.S. economy and investing to guide their own strategies.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But while Warren Buffett is an unwavering long-term optimist when it comes to America and the stock market, his actions and his words don't always align in the short term.
Warren Buffett's secret portfolio offers an ominous warning to Wall Street
The vast majority of investors tracking Buffett's investment activity pay close attention to Berkshire Hathaway's Form 13Fs, which are required quarterly filings with the Securities and Exchange Commission for money managers with at least $100 million in assets under management. However, you might be surprised to learn that Berkshire's 13Fs fail to tell the complete story.
In 1998, Buffett's company acquired reinsurance giant General Re in a deal valued at $22 billion. Though the reinsurance operations were the crown jewel of this acquisition, General Re also owned a specialty investment company known as New England Asset Management (NEAM). When Berkshire acquired Gen Re, NEAM came with it.
New England Asset Management is a large enough investment company that it's required to file a quarterly 13F. Although the Oracle of Omaha isn't overseeing the investment activity in NEAM's portfolio, these holdings are, ultimately, part of Berkshire Hathaway. Thus, New England Asset Management is, effectively, Warren Buffett's secret portfolio.
As of the end of 2022, Buffett's hidden portfolio contained approximately $5.4 billion in invested assets. But as of March 31, 2023, NEAM held just $671.6 million worth of invested assets. In other words, Warren Buffett's secret portfolio dumped 88% of its invested assets during the first quarter, which is a very clear warning to Wall Street.
Collectively, Apple (NASDAQ: AAPL), Chevron (NYSE: CVX), Bank of America (NYSE: BAC), and HP (NYSE: HPQ) accounted for 86% of New England Asset Management's investment portfolio on Dec. 31, 2022. During the first quarter, NEAM respectively sold 99% of its Apple stake, 98% of its Chevron and Bank of America positions, and completely exited its nearly 16.5-million-share HP stake. Collectively, Apple, Chevron, and BofA now comprise just 2.7% of NEAM's invested assets.
Buffett's 29 billion reasons to be cautious
Some of you might be thinking this substantial reduction of invested assets by Buffett's secret portfolio is much ado about nothing since Warren Buffett isn't actively overseeing it. Though you may be correct, the Oracle of Omaha himself is also sending mixed signals.
In addition to Berkshire Hathaway's 13F filings, investors can get a clearer feel for what the Oracle of Omaha and his investing lieutenants (Ted Weschler and Todd Combs) have been up to by examining the company's equity cash flows in Berkshire's quarterly operating results.
For example, during the fourth quarter, Buffett and his team purchased $1.68 billion in equities and completed $16.32 billion in equity sales. That works out $14.64 billion in net-equity sales between the start of October and end of December.
The story was similar during the March-ended quarter. We saw the Oracle of Omaha and his lieutenants do a bit more purchasing ($2.87 billion), but they, ultimately, sold $13.28 billion in equity securities. As a whole, this equates to $10.41 billion in net-equity sales during the first three months of 2023. And I'm still not done.
Roughly one month ago, when Berkshire Hathaway held its annual shareholder meeting, the Warren Buffett divulged that his company had "sold net some stock [in April], which produced maybe $4 billion." Collectively, Berkshire Hathaway has sold a net of $29 billion worth of stock in a seven-month period. That's not particularly encouraging.
S&P 500 Shiller CAPE Ratio data by YCharts.
If I had to pinpoint the single biggest factor behind this selling, I'd suggest it's stock valuations.
Warren Buffett and his team are uncompromising when it comes to buying great companies at a fair price -- emphasis on the word "fair." But according to the Shiller price-to-earnings (P/E) ratio (also known as the cyclically adjusted price-to-earnings ratio, or CAPE ratio) for the S&P 500, stocks aren't cheap. The Shiller P/E ratio closed out May at 29.3, which is well above its average of 17, when back-tested to 1870.
More importantly, bad things have historically happened when the S&P Shiller P/E surpasses 30. In the five previous instances where this occurred, the Dow Jones Industrial Average or S&P 500 eventually went on to lose at least 20% of their value. For context, the Shiller P/E topped 30 for a sixth time in February 2023.
Image source: Getty Images.
Don't bet against America or stocks, but be mindful of history
The selling in both Warren Buffett's secret portfolio and the nearly $338 billion investment portfolio the Oracle of Omaha and his lieutenants oversee look to be clear indicators that most stock valuations aren't appealing. While that's a pretty apparent warning to Wall Street, it's important to be mindful of history.
Over the past 73 years, the S&P 500 has undergone 39 double-digit corrections. Excluding the current bear market, all 38 previous declines in the S&P 500 were eventually fully recouped by a bull market rally. Though corrections are perfectly natural, if not commonplace, so is the idea of investors being rewarded for their patience.
Even though he'll never come out and say it, Warren Buffett isn't big on market timing. He's a much bigger fan of time in the market than trying to time when to invest in the market. Considering that the S&P 500 has averaged a 9.9% annualized total return, including dividends, since the mid-1960s, it's hard to argue with this logic. Despite bear markets, crashes, and panics, S&P 500 index investors have been doubling their money, on average, every seven years and change for nearly six decades, with reinvestment.
Furthermore, a quick look at U.S. gross domestic product shows a very well-defined trend that moves up and to the right. Even though recessions are a normal part of the economic cycle, the Oracle of Omaha is well-aware that periods of expansion last considerably longer than downturns. By acquiring and investing in predominantly cyclical businesses, Buffett and his team have set Berkshire Hathaway up to thrive during these long bull markets.
Although short-lived tough periods are inevitable for Wall Street, being optimistic is a winning strategy for long-term minded investors.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and HP. The Motley Fool recommends Chevron. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Collectively, Apple (NASDAQ: AAPL), Chevron (NYSE: CVX), Bank of America (NYSE: BAC), and HP (NYSE: HPQ) accounted for 86% of New England Asset Management's investment portfolio on Dec. 31, 2022. Though there is no shortage of Wall Street analysts, pundits, and money managers that make their rounds on the major television networks, it's the Oracle of Omaha that's doubled up the average annualized total return of the broad-based S&P 500 (SNPINDEX: ^GSPC) over a 58-year stretch (19.8% vs. 9.9%). Roughly one month ago, when Berkshire Hathaway held its annual shareholder meeting, the Warren Buffett divulged that his company had "sold net some stock [in April], which produced maybe $4 billion."
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Collectively, Apple (NASDAQ: AAPL), Chevron (NYSE: CVX), Bank of America (NYSE: BAC), and HP (NYSE: HPQ) accounted for 86% of New England Asset Management's investment portfolio on Dec. 31, 2022. When it comes to investing, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is in a class of his own. Warren Buffett's secret portfolio offers an ominous warning to Wall Street The vast majority of investors tracking Buffett's investment activity pay close attention to Berkshire Hathaway's Form 13Fs, which are required quarterly filings with the Securities and Exchange Commission for money managers with at least $100 million in assets under management.
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Collectively, Apple (NASDAQ: AAPL), Chevron (NYSE: CVX), Bank of America (NYSE: BAC), and HP (NYSE: HPQ) accounted for 86% of New England Asset Management's investment portfolio on Dec. 31, 2022. Warren Buffett's secret portfolio offers an ominous warning to Wall Street The vast majority of investors tracking Buffett's investment activity pay close attention to Berkshire Hathaway's Form 13Fs, which are required quarterly filings with the Securities and Exchange Commission for money managers with at least $100 million in assets under management. Buffett's 29 billion reasons to be cautious Some of you might be thinking this substantial reduction of invested assets by Buffett's secret portfolio is much ado about nothing since Warren Buffett isn't actively overseeing it.
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Collectively, Apple (NASDAQ: AAPL), Chevron (NYSE: CVX), Bank of America (NYSE: BAC), and HP (NYSE: HPQ) accounted for 86% of New England Asset Management's investment portfolio on Dec. 31, 2022. Berkshire Hathaway CEO Warren Buffett. In other words, Warren Buffett's secret portfolio dumped 88% of its invested assets during the first quarter, which is a very clear warning to Wall Street.
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15527.0
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2023-06-05 00:00:00 UTC
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GRAPHIC-Take Five: Almost half-time
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AAPL
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https://www.nasdaq.com/articles/graphic-take-five%3A-almost-half-time-0
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Repeats Friday story to include OPEC+ decision
June 2 (Reuters) - The hefty weight of tech megacaps, a suspense-packed OPEC meeting at the weekend and more pain for consumers and businesses Down Under - these are just some of the topics preoccupying markets as they approach the halfway point of 2023.
Some investors are growing concerned about how gains in the S&P 500 have become increasingly concentrated in a handful of megacap stocks.
The combined weight of five stocks - Apple, Microsoft, Google-parent Alphabet, Amazon and Nvidia - now accounts for 25% of the S&P 500’s market value, a trend recently supercharged by the AI buzz. Data from Deutsche Bank shows the equal-weighted S&P 500 index, a barometer of the average stock, trailing the S&P 500 by its biggest margin since 1999.
A rally driven by a handful of stocks raises questions about the health of the broader market and risks igniting volatility if investors ditch those megacap holdings.
Emerging market central banks were quick to tighten policy in early 2021 when price pressures accelerated, front-running major developed central banks, including the Fed. Now they appear to be once again first out of the starting blocks as rate cuts move higher up the agenda.
Hungary became the first European bank to lower rates in May, following Uruguay, which kicked off the Latin American rate-cut cycle in April while Sri Lanka stunned markets with a 250-basis point rate cut on June 1.
But the picture is mixed: Polish policymakers are seen holding rates at 6.75% on Tuesday even if expectations are rising for a cut later in the year. Markets might have to wait until 2024 for India, where the next decision is due on Thursday. Russia is expected to keep its rate at 7.5% on Friday.
3/A CRUDE INVITATION
The Organization of the Petroleum Exporting Countries and partners agreed on Sunday to extend a set of production cuts into 2024. The event draws in throngs of reporters from all around the world, who jostle for position at the bottom of several flights of stairs at the OPEC secretariat that they race up to get into the pre-meeting press scrum.
Reading the runes was already tricky and Saudi Arabia, the group's biggest exporter, unexpectedly delivered a deep cut to its own output. Saudi Energy Minister Prince Abdulaziz told a news conference the reduction was "a Saudi lollipop". "We wanted to ice the cake. We always want to add suspense," he said.
Adding to the suspense in the run-up to the weekend, the group banned several major news organisations from attending the press conference, including Reuters and Bloomberg.
The price of oil rose as much as 3.4% overnight to a high of $78.73 a barrel. But despite OPEC+'s best efforts, it's still worth roughly half what it was in March 2022, after Russia invaded Ukraine.
4/INTERVENTION WATCH
The yen has fallen over 5% since early March to six-month lows against a resilient dollar JPY=EBS.
It's enough to make Japanese officials uneasy, with top currency diplomat Masato Kanda warning that Japan will closely watch currency moves and won't rule out any options.
Currency intervention is viewed as a distant prospect, but traders will likely pay attention to policymaker comments in coming days after officials from the finance ministry, BOJ and Japan's financial watchdog met on Tuesday. Such meetings can be a prelude to further action.
And it's not just Japan traders on intervention watch. Sweden's crown is at its weakest against the dollar and euro in over a decade, adding to inflationary pressures. A weak currency is a problem, but intervention would be a last resort, says central bank Deputy Governor Per Jansson.
Such resolve could well be put to the test.
5/RBA BRINGS THE PAIN
The Reserve Bank of Australia says the inflation fight is far from won, and the public should brace itself for more pain.
That could be as soon as the next meeting on Tuesday, with markets laying about 30% odds for a hike.
The economy had been showing signs of cooling until this week, when a reading of consumer prices jumped much more than forecast for April, sending stocks to a two-month trough.
Rates are already at an 11-year peak after a surprise hike last month, which RBA governor Philip Lowe justified by saying he wanted to send a clear message to households and businesses that the central bank will do whatever it takes.
Policymakers need to keep an eye on top trading partner China too, where a sputtering post-pandemic recovery risks eroding Australian ore and energy exports.
Megacap stocks corner over a quarter of S&P 500 https://tmsnrt.rs/3OOy8io
Emerging markets interest rates https://tmsnrt.rs/3MViQqQ
All eyes on OPEC+ meeting https://tmsnrt.rs/3N8bW1C
Yen watching https://tmsnrt.rs/42xuTPP
Inflation still a concern for RBA https://tmsnrt.rs/43DufAS
(Compiled by Amanda Cooper; Editing by Edwina Gibbs)
((amanda.cooper@thomsonreuters.com; +442031978531; Twitter: https://twitter.com/a_coops1;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Repeats Friday story to include OPEC+ decision June 2 (Reuters) - The hefty weight of tech megacaps, a suspense-packed OPEC meeting at the weekend and more pain for consumers and businesses Down Under - these are just some of the topics preoccupying markets as they approach the halfway point of 2023. Currency intervention is viewed as a distant prospect, but traders will likely pay attention to policymaker comments in coming days after officials from the finance ministry, BOJ and Japan's financial watchdog met on Tuesday. Rates are already at an 11-year peak after a surprise hike last month, which RBA governor Philip Lowe justified by saying he wanted to send a clear message to households and businesses that the central bank will do whatever it takes.
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Repeats Friday story to include OPEC+ decision June 2 (Reuters) - The hefty weight of tech megacaps, a suspense-packed OPEC meeting at the weekend and more pain for consumers and businesses Down Under - these are just some of the topics preoccupying markets as they approach the halfway point of 2023. Emerging market central banks were quick to tighten policy in early 2021 when price pressures accelerated, front-running major developed central banks, including the Fed. Megacap stocks corner over a quarter of S&P 500 https://tmsnrt.rs/3OOy8io Emerging markets interest rates https://tmsnrt.rs/3MViQqQ All eyes on OPEC+ meeting https://tmsnrt.rs/3N8bW1C Yen watching https://tmsnrt.rs/42xuTPP Inflation still a concern for RBA https://tmsnrt.rs/43DufAS (Compiled by Amanda Cooper; Editing by Edwina Gibbs) ((amanda.cooper@thomsonreuters.com; +442031978531; Twitter: https://twitter.com/a_coops1;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Emerging market central banks were quick to tighten policy in early 2021 when price pressures accelerated, front-running major developed central banks, including the Fed. Hungary became the first European bank to lower rates in May, following Uruguay, which kicked off the Latin American rate-cut cycle in April while Sri Lanka stunned markets with a 250-basis point rate cut on June 1. Megacap stocks corner over a quarter of S&P 500 https://tmsnrt.rs/3OOy8io Emerging markets interest rates https://tmsnrt.rs/3MViQqQ All eyes on OPEC+ meeting https://tmsnrt.rs/3N8bW1C Yen watching https://tmsnrt.rs/42xuTPP Inflation still a concern for RBA https://tmsnrt.rs/43DufAS (Compiled by Amanda Cooper; Editing by Edwina Gibbs) ((amanda.cooper@thomsonreuters.com; +442031978531; Twitter: https://twitter.com/a_coops1;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Russia is expected to keep its rate at 7.5% on Friday. Adding to the suspense in the run-up to the weekend, the group banned several major news organisations from attending the press conference, including Reuters and Bloomberg. Rates are already at an 11-year peak after a surprise hike last month, which RBA governor Philip Lowe justified by saying he wanted to send a clear message to households and businesses that the central bank will do whatever it takes.
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15528.0
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2023-06-05 00:00:00 UTC
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Apple shares hit all-time high ahead of developer conference
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AAPL
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https://www.nasdaq.com/articles/apple-shares-hit-all-time-high-ahead-of-developer-conference
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June 5 (Reuters) - Apple Inc's AAPL.O shares on Monday hit a record high for the first time in 17 months, as the stock got a boost ahead of its annual software developer conference where it is expected to launch a mixed-reality headset.
The world's most valuable listed company was last up 1.2% at $183.25 in early trading. The headset would be Apple's first big move into a new product category since the introduction of Apple Watch nine years ago.
Apple is among a handful of megacap tech-focused firms that have underpinned main stock indexes this year, as enthusiasm over advances in AI helps fuel a rally. Apple shares have jumped nearly 40% in 2023, compared with an 11.5% rise in the benchmark S&P 500 .SPX.
(Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 5 (Reuters) - Apple Inc's AAPL.O shares on Monday hit a record high for the first time in 17 months, as the stock got a boost ahead of its annual software developer conference where it is expected to launch a mixed-reality headset. Apple is among a handful of megacap tech-focused firms that have underpinned main stock indexes this year, as enthusiasm over advances in AI helps fuel a rally. (Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva) ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 5 (Reuters) - Apple Inc's AAPL.O shares on Monday hit a record high for the first time in 17 months, as the stock got a boost ahead of its annual software developer conference where it is expected to launch a mixed-reality headset. Apple shares have jumped nearly 40% in 2023, compared with an 11.5% rise in the benchmark S&P 500 .SPX. (Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva) ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 5 (Reuters) - Apple Inc's AAPL.O shares on Monday hit a record high for the first time in 17 months, as the stock got a boost ahead of its annual software developer conference where it is expected to launch a mixed-reality headset. The headset would be Apple's first big move into a new product category since the introduction of Apple Watch nine years ago. Apple is among a handful of megacap tech-focused firms that have underpinned main stock indexes this year, as enthusiasm over advances in AI helps fuel a rally.
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June 5 (Reuters) - Apple Inc's AAPL.O shares on Monday hit a record high for the first time in 17 months, as the stock got a boost ahead of its annual software developer conference where it is expected to launch a mixed-reality headset. The world's most valuable listed company was last up 1.2% at $183.25 in early trading. The headset would be Apple's first big move into a new product category since the introduction of Apple Watch nine years ago.
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15529.0
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2023-06-04 00:00:00 UTC
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Surprise! Warren Buffett Has Bet Over $166 Billion on 3 AI Growth Stocks
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AAPL
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https://www.nasdaq.com/articles/surprise-warren-buffett-has-bet-over-%24166-billion-on-3-ai-growth-stocks
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Over the years, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett hasn't minced words about the difficulty he has wrapping his mind around complicated technology. In fact, for years, the legendary investor avoided technology stocks altogether, saying he prefers "simple businesses," going on to say, "If there's lots of technology, we won't understand it."
Yet for all his protestations, in recent years, Buffett has amassed a veritable fortune in stocks that stand to gain from advances in artificial intelligence (AI).
Image source: The Motley Fool.
An Apple a day...
It shouldn't come as a surprise that Berkshire's biggest bet on AI comes courtesy of Apple (NASDAQ: AAPL). When combined with the shares held by Berkshire's wholly owned subsidiary New England Asset Management, Buffett's stake in Apple amounts to more than 915 million shares, worth an eye-popping $164 billion.
Apple is no stranger to AI technology, installing Siri on its iPhone in 2011, the first such integration of a voice-command digital assistant onto a smartphone.
And that was just the beginning. The iPhone is now rife with AI-fueled features, underpinned by the Apple Neural Engine. This on-device AI processor supports facial ID to unlock the device, natural language processing to help Siri better understand the user, as well as supporting Apple's innovative computational photography features.
The AI also supports several health and safety features, including electrocardiogram functionality, as well as fall and crash detection.
Thus far, however, Apple has been largely mum on the subject of generative AI, the technology behind ChatGPT. During the company's recentearnings call CEO Tim Cook said, "The potential is certainly very interesting." He added that while Apple doesn't comment on product road maps, "it's very important to be deliberate and thoughtful in how you approach these things."
Numerous reports suggest the company is looking to hire experts in generative AI. Given Apple's penchant for secrecy, there's probably more going on behind the scenes. This likely isn't the last you'll hear about generative AI from the company.
An e-commerce and cloud pioneer
While Buffett himself didn't instigate the purchase, Berkshire Hathaway has a sizable stake in Amazon (NASDAQ: AMZN), with more than 10 million shares currently valued at more than $1.2 billion.
Buffett has praised founder Jeff Bezos, saying he has admired Bezos "for a long, long time," but "didn't think he'd succeed on the scale that he has."
Amazon has long used AI to make personalized product recommendations to users, predict demand for its inventory, aid its massive fulfillment and logistics operation, and speed up deliveries. The company also offers AI and machine learning via Amazon Web Services, its cloud computing operation.
The company was the first to debut a range of products infused with an AI-powered virtual assistant, helping make Alexa a household name. CEO Andy Jassy recently revealed that Amazon is "investing heavily" in the large language models that underpin generative AI.
A special little Snowflake
Data warehouse and analytics specialist Snowflake (NYSE: SNOW) rounds out the top three AI holdings for Berkshire Hathaway. Buffett lieutenant Todd Combs initiated the purchase: more than 6 million shares, currently worth more than $1 billion. Combs, who is also CEO of Geico, which is owned by Berkshire Hathaway, had used Snowflake's data warehouse with the company's insurance operations.
Snowflake says its platform was "built from the ground up to support machine learning and AI-driven data science applications." The company says it helps businesses "apply AI to make better decisions, improve productivity, and reach more customers." The platform also helps companies gather data from disparate sources, allowing for more-useful analysis.
Should investors add these AI stocks to their buy list?
Buffett has been quite clear about his opinion of Apple. In fact, at Berkshire's 2023 shareholder meeting last month, the legendary investor said of Apple, "It just happens to be a better business than any we own."
Given the continuing demand for the iPhone, its impressive services growth, and its superior cash generation, Apple is as close to a no-brainer as one can get in investing. Plus, I have previously said that if I could own just one Buffett stock, Apple would be it.
It's also hard to bet against Amazon. The company dominates the e-commerce industry, controlling roughly 38% of the market in the U.S., more than the next 14 rivals combined. It's also the undisputed leader in the cloud computing industry, with a market share that's nearly as large as Microsoft Azure and Alphabet's Google Cloud combined. And it has also become the world's third-largest digital advertiser, behind just Google and Meta Platforms. I think now is the time to buy Amazon before the inevitable stock price recovery.
That leaves Snowflake. I'm a fan of the company and owner of the stock, but Snowflake is a much riskier and more volatile proposition than either Apple or Amazon. The company's data storage and analytics services are still in high demand, but growth is slowing. Its recent fall from grace made the stock's frothy valuation much more palatable.
For those willing to take a little additional risk for the potential of greater gains, Snowflake might still be worth a look.
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 May 30, 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. Danny Vena has positions in Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Snowflake. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, and Snowflake. 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 shouldn't come as a surprise that Berkshire's biggest bet on AI comes courtesy of Apple (NASDAQ: AAPL). Yet for all his protestations, in recent years, Buffett has amassed a veritable fortune in stocks that stand to gain from advances in artificial intelligence (AI). An e-commerce and cloud pioneer While Buffett himself didn't instigate the purchase, Berkshire Hathaway has a sizable stake in Amazon (NASDAQ: AMZN), with more than 10 million shares currently valued at more than $1.2 billion.
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It shouldn't come as a surprise that Berkshire's biggest bet on AI comes courtesy of Apple (NASDAQ: AAPL). Over the years, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett hasn't minced words about the difficulty he has wrapping his mind around complicated technology. It's also the undisputed leader in the cloud computing industry, with a market share that's nearly as large as Microsoft Azure and Alphabet's Google Cloud combined.
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It shouldn't come as a surprise that Berkshire's biggest bet on AI comes courtesy of Apple (NASDAQ: AAPL). I'm a fan of the company and owner of the stock, but Snowflake is a much riskier and more volatile proposition than either Apple or Amazon. See the 10 stocks *Stock Advisor returns as of May 30, 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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It shouldn't come as a surprise that Berkshire's biggest bet on AI comes courtesy of Apple (NASDAQ: AAPL). It's also the undisputed leader in the cloud computing industry, with a market share that's nearly as large as Microsoft Azure and Alphabet's Google Cloud combined. * 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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15530.0
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2023-06-04 00:00:00 UTC
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Wall St Week Ahead-Surging US megacap stocks leave some wondering when to cash out
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https://www.nasdaq.com/articles/wall-st-week-ahead-surging-us-megacap-stocks-leave-some-wondering-when-to-cash-out-0
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By Lewis Krauskopf
NEW YORK, June 2 (Reuters) - As the U.S. stock market continues its climb, investors holding shares of the massive tech and growth companies leading the charge are debating whether to cash out or stay on for the ride.
A record $8.5 billion flowed into tech stocks in the latest week, data from BofA Global Research showed, as investors piled into a rally that has seen the tech-heavy Nasdaq 100 .NDX gain 33% in 2023. The benchmark S&P 500 .SPX has risen 11.5% this year and stands at a 10-month high.
Yet others see reasons for caution. Among them is the narrowness of the market’s rally: the five largest stocks in the S&P 500 have a combined weighting of 24.7% in the index, a record high dating back to 1972, Ned Davis Research said in a recent report. The heavy weightings could mean more significant fallout for broader markets should those names falter.
"We had this big run and the essential question is, do you believe it’s going to continue or do you believe things are going to return to the mean?" said Peter Tuz, president of Chase Investment Counsel.
Excitement over advances in artificial intelligence is a key factor fueling gains in megacap stocks. Big movers include shares of Nvidia NVDA.O, which are up about 170% this year, while Apple AAPL.O and Microsoft MSFT.O, the top two U.S. companies by market value, have both climbed nearly 40%.
Jay Hatfield, CEO of hedge fund InfraCap, believes excitement over AI will keep boosting megacap stocks. He is overweight megacaps, including Nvidia, Microsoft and Google-parent Alphabet GOOGL.O.
“We 100% believe in the AI boom,” Hatfield said. “I would be shocked if by the end of the year these stocks are not significantly higher."
Data on Friday showed U.S. job growth accelerating in May, even as a jump in the unemployment rate suggested labor market conditions were easing, boosting investors’ appetite for stocks amid hopes that the Federal Reserve will be able to bring down inflation without badly hurting growth. The S&P 500 rose 1.45%.
Strong momentum can also continue to propel stocks higher.
Michael Purves, CEO of Tallbacken Capital Advisors, wrote earlier this week that technical analysis showed the Nasdaq 100 is overbought, a condition that can make an asset more vulnerable to sharp declines. However, the index managed to rally another 10% over three months when it reached the same condition two years ago, according to Purves.
The recent surge in Nvidia showed how a stock can keep climbing even after posting hefty gains. Shares were already up 109% heading into its May 24 earnings report, but rose another 30% in the past week after the chipmaker's surprisingly upbeat sales forecast.
Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management, said shares of Nvidia, which now trade at 44 times forward earnings estimates, according to Refinitiv Datastream, have become "a little rich."
Others are growing wary, citing factors such as rising valuations and signs that the rest of the market is languishing while a small cluster of stocks soars.
The performance of just seven stocks, Apple, Microsoft, Alphabet, Amazon AMZN.O, Nvdia, Meta Platforms META.O and Tesla TSLA.O, accounted for all of the S&P 500’s 2023 total return through May, according to S&P Dow Jones Indices.
At the same time, only 20.3% of S&P 500 stocks have outperformed the index on a rolling three-month basis, a record low dating back five decades, according to Ned Davis. Levels below 30% have preceded weaker performance for the broader market, with the S&P 500 rising 4.4% over the next year versus an average of 8.2% for all one year periods, the firm’s research showed.
David Kotok, chief investment officer at Cumberland Advisors, in recent days pared back holdings of the iShares semiconductor ETF SOXX.O following the latest spike in shares of Nvidia.
Kotok views narrowing breadth as an ominous sign for the broader stock market, saying that equities also look less favorable in certain asset valuation metrics.
In one commonly used valuation metric, the S&P 500 is trading at 18.5 times forward earnings estimates compared to its historic average of 15.6 times, according to Refinitiv Datastream.
"You can have (market) concentration and it can go on for a while," he said. But, he said, “for me, the narrowing is a warning.”
Megacap stocks soaring https://tmsnrt.rs/3oRzTAG
Megacap stocks share of S&P 500 https://tmsnrt.rs/43Fefyt
Megacaps stocks soaring https://tmsnrt.rs/45GbO0v
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili, Nick Zieminski and Diane Craft)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big movers include shares of Nvidia NVDA.O, which are up about 170% this year, while Apple AAPL.O and Microsoft MSFT.O, the top two U.S. companies by market value, have both climbed nearly 40%. By Lewis Krauskopf NEW YORK, June 2 (Reuters) - As the U.S. stock market continues its climb, investors holding shares of the massive tech and growth companies leading the charge are debating whether to cash out or stay on for the ride. Michael Purves, CEO of Tallbacken Capital Advisors, wrote earlier this week that technical analysis showed the Nasdaq 100 is overbought, a condition that can make an asset more vulnerable to sharp declines.
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Big movers include shares of Nvidia NVDA.O, which are up about 170% this year, while Apple AAPL.O and Microsoft MSFT.O, the top two U.S. companies by market value, have both climbed nearly 40%. By Lewis Krauskopf NEW YORK, June 2 (Reuters) - As the U.S. stock market continues its climb, investors holding shares of the massive tech and growth companies leading the charge are debating whether to cash out or stay on for the ride. Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management, said shares of Nvidia, which now trade at 44 times forward earnings estimates, according to Refinitiv Datastream, have become "a little rich."
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Big movers include shares of Nvidia NVDA.O, which are up about 170% this year, while Apple AAPL.O and Microsoft MSFT.O, the top two U.S. companies by market value, have both climbed nearly 40%. By Lewis Krauskopf NEW YORK, June 2 (Reuters) - As the U.S. stock market continues its climb, investors holding shares of the massive tech and growth companies leading the charge are debating whether to cash out or stay on for the ride. Among them is the narrowness of the market’s rally: the five largest stocks in the S&P 500 have a combined weighting of 24.7% in the index, a record high dating back to 1972, Ned Davis Research said in a recent report.
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Big movers include shares of Nvidia NVDA.O, which are up about 170% this year, while Apple AAPL.O and Microsoft MSFT.O, the top two U.S. companies by market value, have both climbed nearly 40%. Among them is the narrowness of the market’s rally: the five largest stocks in the S&P 500 have a combined weighting of 24.7% in the index, a record high dating back to 1972, Ned Davis Research said in a recent report. Jay Hatfield, CEO of hedge fund InfraCap, believes excitement over AI will keep boosting megacap stocks.
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15531.0
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2023-06-04 00:00:00 UTC
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Guru Fundamental Report for AAPL - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-47
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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15532.0
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2023-06-04 00:00:00 UTC
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Is Buying Nvidia Stock a Sneaky Crypto Play?
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AAPL
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https://www.nasdaq.com/articles/is-buying-nvidia-stock-a-sneaky-crypto-play
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nan
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nan
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Investors are buzzing about Nvidia (NASDAQ: NVDA) after it reached a $1 trillion market capitalization at the end of May. Now trading at just under $400, Nvidia joins a rarefied elite of just four other U.S.-based companies -- Apple, Alphabet, Microsoft, and Amazon -- with trillion-dollar market valuations. Although Nvidia is obviously a strong play on the future growth of the tech industry, could it also be a sneaky crypto play?
That might not be as insane as it sounds. Nvidia already provides the specialized graphics processing units (GPUs) required for cryptocurrency mining rigs. And Nvidia's recent announcement of a new AI supercomputing platform has already led to a flurry of AI-themed cryptos surging higher over the past week. Here's a closer look at why Nvidia might be a way to get exposure to the crypto industry, without taking on excessive risk.
The old crypto investment thesis for Nvidia
Until the start of this year, the standard investment thesis for Nvidia as part of a crypto portfolio was based on cryptocurrency mining. To mine proof-of-work cryptos such as Bitcoin, miners need very powerful computing systems called mining rigs. And Nvidia has provided some of the most powerful GPUs used in these mining rigs. In any review of the best GPUs for mining, Nvidia typically ranks at the top of the list.
Image source: Getty Images.
As a result of this link to cryptocurrency mining, some analysts and fund managers already consider Nvidia to be an invaluable part of any broad-based stock portfolio designed to get exposure to the crypto industry. For example, take the Schwab Crypto Thematic ETF. Currently, Nvidia is its sixth-largest holding, behind PayPal and ahead of Block, representing 4.1% of the fund's holdings.
However, crypto giant Ethereum transitioned from a proof-of-work blockchain to a proof-of-stake blockchain back in September, so the investment narrative around Nvidia and crypto mining has been fading. That's because Ethereum mining rigs are now obsolete. You can no longer use Nvidia GPU mining rigs to mine Ethereum, so they need to be repurposed for other cryptos. Given that Ethereum is the world's second-largest cryptocurrency by market cap, that's actually a big deal. It definitely takes some of the allure away from the crypto mining idea.
The new crypto investment thesis for Nvidia
That's why Nvidia's recent announcements related to AI are so exciting for crypto investors. It means that there's a new reason to buy Nvidia, and that's the rise of new AI-powered cryptos. With the popular success of ChatGPT and other generative AI projects, it's becoming more and more popular to put AI projects on the blockchain, and that's leading to a dramatic surge in AI cryptos. For example, as soon as Nvidia reported blowout sales estimates related to AI, SingularityNET, an AI crytpo, jumped almost 20%. Smaller AI cryptos were up 5% across the board.
Bigger gains related to AI and crypto could be on the way. At a big computer industry trade show in Taiwan, Nvidia announced the launch of a new AI supercomputer platform (DGX GH200) that is specifically being billed as a way for large tech companies to build ChatGPT competitors. Moreover, Nvidia said at the trade show that it was going to focus on ways to make video games more lifelike with the help of AI. That could spur growth in the blockchain gaming and metaverse sectors of the crypto industry.
How much Nvidia is too much Nvidia?
As a result, Nvidia could be a relatively safe way for investors to gain access to the infamously volatile crypto market. Instead of trying to pick winners among a growing number of AI-themed cryptos (almost all of them with market caps of less than $50 million), you could simply diversify your exposure via Nvidia. And, instead of trying to find the best crypto mining stocks or trying to pick the best proof-of-work cryptos (which require mining), you could simply invest in Nvidia.
Obviously, you don't want to overdo things, no matter how excited you might be about Nvidia, AI, or crypto. As noted above, the Schwab Crypto Thematic ETF currently has less than 5% of its portfolio dedicated to Nvidia. That might be a good benchmark figure when thinking about how to diversify your own portfolio.
With all of the good news coming out of Nvidia these days, I'm bullish both on the company and the long-term fortunes of the AI industry. The extra bonus for investors is that Nvidia also gives you sneaky access to crypto without having to dip your toes into the crypto market.
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.
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*Stock Advisor returns as of May 30, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Dominic Basulto has positions in Amazon.com, Bitcoin, and Ethereum. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bitcoin, Block, Ethereum, Microsoft, Nvidia, 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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And Nvidia's recent announcement of a new AI supercomputing platform has already led to a flurry of AI-themed cryptos surging higher over the past week. As a result of this link to cryptocurrency mining, some analysts and fund managers already consider Nvidia to be an invaluable part of any broad-based stock portfolio designed to get exposure to the crypto industry. At a big computer industry trade show in Taiwan, Nvidia announced the launch of a new AI supercomputer platform (DGX GH200) that is specifically being billed as a way for large tech companies to build ChatGPT competitors.
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The new crypto investment thesis for Nvidia That's why Nvidia's recent announcements related to AI are so exciting for crypto investors. And, instead of trying to find the best crypto mining stocks or trying to pick the best proof-of-work cryptos (which require mining), you could simply invest in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bitcoin, Block, Ethereum, Microsoft, Nvidia, and PayPal.
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The old crypto investment thesis for Nvidia Until the start of this year, the standard investment thesis for Nvidia as part of a crypto portfolio was based on cryptocurrency mining. The new crypto investment thesis for Nvidia That's why Nvidia's recent announcements related to AI are so exciting for crypto investors. And, instead of trying to find the best crypto mining stocks or trying to pick the best proof-of-work cryptos (which require mining), you could simply invest in Nvidia.
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The new crypto investment thesis for Nvidia That's why Nvidia's recent announcements related to AI are so exciting for crypto investors. And, instead of trying to find the best crypto mining stocks or trying to pick the best proof-of-work cryptos (which require mining), you could simply invest in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bitcoin, Block, Ethereum, Microsoft, Nvidia, and PayPal.
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15533.0
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2023-06-04 00:00:00 UTC
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Is Apple a Buy?
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AAPL
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https://www.nasdaq.com/articles/is-apple-a-buy
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nan
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nan
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With a value of $165 billion and a portfolio allocation of 48% (as of March 31), Apple (NASDAQ: AAPL) is Berkshire Hathaway's largest equity holding by far. The Oracle of Omaha has said that Apple is "different than the other businesses we own." He definitely means that in a good way, which isn't surprising, given the business possesses many of the traits Buffett looks for.
By following one of the best stock market minds ever, investors could meaningfully upgrade their portfolios. Here are three reasons why investors should seriously consider buying Apple stock today, even with shares up 39% this year.
Burgeoning services segment
While the iPhone represented 54% of the company's fiscal 2023 second-quarter revenue, and it can easily be considered the single most successful product in history, Apple has been growing its services line in recent years. This segment posted revenue of $13.3 billion three years ago in Q2 2020. In the most recent fiscal quarter, its sales totaled $20.9 billion, growing faster than Apple's products segment.
This benefits Apple from a financial perspective. Services carry a superb gross margin of 71%, compared to products, which carry a gross margin of 37%. As more revenue comes from services, the company's bottom line is poised to expand.
But besides the quantitative advantage, Apple's services segment helps the business in another important way -- it drives greater customer loyalty. Readers have probably heard of the Apple ecosystem, which consists of its hardware and software offerings that work so well together. There are currently over 2 billion active Apple devices in the world. Owners of these products have less of a reason to move to competing platforms. That's because Apple's services, including Music, Pay, and TV+, keep users locked in.
Proven pricing power
Buffett is known for saying that the true mark of a wonderful company is its ability to consistently raise prices, with minimal impact on demand. "If you have to have a prayer session before raising the price by 10%, then you've got a terrible business," he once posited.
Apple has no issues with pricing power, and it's probably one of the main reasons that Berkshire Hathaway owns such a large position. The company's flagship product, the iPhone, has generally gone up in price over the years since it first launched in 2007. And what's amazing is that consumers don't hesitate to keep paying up for the newest version.
Even services have undergone price hikes. But by creating beautifully designed hardware products that are differentiated by its own easy-to-use software, Apple has earned its pricing power.
An outstanding financial profile
During what has been a time of heightened economic uncertainty, with inflation still at elevated levels, interest rates rising, and the possibility of a recession on everyone's mind, it's probably worthwhile for investors to focus on owning financially sound companies. Apple fits the bill.
The company's gross margin expanded from 38.5% in fiscal 2017 to 43.3% in fiscal 2022, with the operating margin rising from 26.8% to 30.3% during the same time. That's a wonderful trait to see from a business because it demonstrates that Apple is getting more profitable as it gets bigger, benefiting not just from pricing power, but also from economies of scale as it better leverages its fixed costs and optimizes its expenses. Consumer hardware is known to be a very difficult business financially. Apple has clearly bucked this trend to become a thriving outlier.
The company produces incredible amounts of free cash flow, to the tune of a whopping $111 billion in fiscal 2022. Management isn't shy about returning capital to shareholders. Apple repurchased $39 billion worth of stock during the last six months, and pays a dividend that currently yields 0.5%.
The arguments for why investors should own the stock are extremely strong. Apple could remain a mainstay in your portfolio for years to come.
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 May 30, 2023
Neil Patel has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With a value of $165 billion and a portfolio allocation of 48% (as of March 31), Apple (NASDAQ: AAPL) is Berkshire Hathaway's largest equity holding by far. But by creating beautifully designed hardware products that are differentiated by its own easy-to-use software, Apple has earned its pricing power. That's a wonderful trait to see from a business because it demonstrates that Apple is getting more profitable as it gets bigger, benefiting not just from pricing power, but also from economies of scale as it better leverages its fixed costs and optimizes its expenses.
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With a value of $165 billion and a portfolio allocation of 48% (as of March 31), Apple (NASDAQ: AAPL) is Berkshire Hathaway's largest equity holding by far. Services carry a superb gross margin of 71%, compared to products, which carry a gross margin of 37%. The company's gross margin expanded from 38.5% in fiscal 2017 to 43.3% in fiscal 2022, with the operating margin rising from 26.8% to 30.3% during the same time.
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With a value of $165 billion and a portfolio allocation of 48% (as of March 31), Apple (NASDAQ: AAPL) is Berkshire Hathaway's largest equity holding by far. Here are three reasons why investors should seriously consider buying Apple stock today, even with shares up 39% this year. Burgeoning services segment While the iPhone represented 54% of the company's fiscal 2023 second-quarter revenue, and it can easily be considered the single most successful product in history, Apple has been growing its services line in recent years.
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With a value of $165 billion and a portfolio allocation of 48% (as of March 31), Apple (NASDAQ: AAPL) is Berkshire Hathaway's largest equity holding by far. Burgeoning services segment While the iPhone represented 54% of the company's fiscal 2023 second-quarter revenue, and it can easily be considered the single most successful product in history, Apple has been growing its services line in recent years. Consumer hardware is known to be a very difficult business financially.
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15534.0
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2023-06-03 00:00:00 UTC
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Want Passive Income in a Bear Market? 2 Stocks Warren Buffett Bought.
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AAPL
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https://www.nasdaq.com/articles/want-passive-income-in-a-bear-market-2-stocks-warren-buffett-bought.
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nan
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nan
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A look across the trades made by Warren Buffett's Berkshire Hathaway in the first quarter reveals an addition to its stake in Apple (NASDAQ: AAPL) and a new position in small-cap oil and gas company Vitesse Energy (NYSE: VTS). Both are interesting stocks for investors looking for long-term passive income.
Berkshire Hathaway's bullish move on Apple
Now, I know what you are thinking, and you have a point. Apple's 0.6% dividend yield isn't the first thing an income-seeking investor will consider. But the stock is a genuine candidate here for three reasons:
Apple has more than doubled its dividend per share over the last decade, and, quite often, long-term investors' highest-yielding stocks are not those bought with a high yield to start with.
Apple's earnings and free cash flow (FCF) could easily support a higher payout, and as companies mature, they tend to focus more on dividends.
The company has a substantive opportunity to improve its FCF from the growth of higher-margin services.
The graph below shows those first two points. It's not hard to see that Apple's dividend, although rising at a compound annual rate of 8.6% over the last decade, is still very well-covered by earnings and FCF. As such, there's plenty of potential to increase cash dividends paid to investors.
Data by YCharts.
The gross margin for Apple's services segment (accounting for around 22% of sales in the recently reported quarter) is almost double that of its product segment's gross margin. Moreover, its services revenue (built on the strength of an installed base of more than 2 billion active devices) has plenty of growth potential.
It also tends to be revenue that's recurring. For example, AppleCare, digital subscription services, payment, and cloud services offer long-term growth, which should improve Apple's margin profile, cash flow, and ability to increase its dividend.
Berkshire Hathaway's latest investment: A high-yield stock
The 51,026 shares that Berkshire Hathaway acquired in Vitesse Energy in the first quarter are now worth around $1.1 million. It's hardly an acquisition likely to move the needle on Berkshire Hathaway's performance. Moreover, the company's $609 million market cap means it's not likely to be a stock heavily bought by institutions. It's not easy to pick up a sizable amount in such stocks.
That said, now is a great opportunity for retail investors to follow Buffett into an oil and gas stock. Vitesse is different from most of the sector in that it's a "non-operated working and mineral interest owner of oil and gas assets primarily in the Bakken oil field in North Dakota," according to the company.
In other words, instead of owning and operating oil and gas assets, Vitesse's management buys minority interests in myriad oil and gas assets and partners with well-established operators -- including Chord Energy, Hess, and, to a lesser extent, EOG, ConocoPhillips, ExxonMobil, and Marathon Oil.
As such, Vitesse avoids many of the costs associated with being an owner/operator of assets, including drilling obligations and upfront leasing and infrastructure costs, while retaining the financial flexibility to allocate capital toward opportunities that generate the highest return on investments. It's an approach that leverages the expertise of its management, including industry veteran CEO Bob Gerrity.
The potential upside to the stock comes from a combination of higher oil prices/production by its partners and, equally important, ongoing success in allocating capital to productive investments. Management tries to limit the downside by maintaining a conservative debt-to-earnings ratio (something that helps in a downturn because the company can be opportunistic with acquisitions) and hedging oil production.
While hedging the volatility in oil price movements is always an inexact science, the fact that management does it emphasizes that a lot of the value in the stock, comes from management's expertise in buying assets rather than over-reliance on a rising price of oil. That's what investors are relying on to let the company, at the least, maintain its dividend payout, currently yielding more than 9%.
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 May 22, 2023
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, EOG Resources, and Vitesse Energy. 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 look across the trades made by Warren Buffett's Berkshire Hathaway in the first quarter reveals an addition to its stake in Apple (NASDAQ: AAPL) and a new position in small-cap oil and gas company Vitesse Energy (NYSE: VTS). Apple's earnings and free cash flow (FCF) could easily support a higher payout, and as companies mature, they tend to focus more on dividends. The potential upside to the stock comes from a combination of higher oil prices/production by its partners and, equally important, ongoing success in allocating capital to productive investments.
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A look across the trades made by Warren Buffett's Berkshire Hathaway in the first quarter reveals an addition to its stake in Apple (NASDAQ: AAPL) and a new position in small-cap oil and gas company Vitesse Energy (NYSE: VTS). For example, AppleCare, digital subscription services, payment, and cloud services offer long-term growth, which should improve Apple's margin profile, cash flow, and ability to increase its dividend. In other words, instead of owning and operating oil and gas assets, Vitesse's management buys minority interests in myriad oil and gas assets and partners with well-established operators -- including Chord Energy, Hess, and, to a lesser extent, EOG, ConocoPhillips, ExxonMobil, and Marathon Oil.
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A look across the trades made by Warren Buffett's Berkshire Hathaway in the first quarter reveals an addition to its stake in Apple (NASDAQ: AAPL) and a new position in small-cap oil and gas company Vitesse Energy (NYSE: VTS). But the stock is a genuine candidate here for three reasons: Apple has more than doubled its dividend per share over the last decade, and, quite often, long-term investors' highest-yielding stocks are not those bought with a high yield to start with. In other words, instead of owning and operating oil and gas assets, Vitesse's management buys minority interests in myriad oil and gas assets and partners with well-established operators -- including Chord Energy, Hess, and, to a lesser extent, EOG, ConocoPhillips, ExxonMobil, and Marathon Oil.
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A look across the trades made by Warren Buffett's Berkshire Hathaway in the first quarter reveals an addition to its stake in Apple (NASDAQ: AAPL) and a new position in small-cap oil and gas company Vitesse Energy (NYSE: VTS). But the stock is a genuine candidate here for three reasons: Apple has more than doubled its dividend per share over the last decade, and, quite often, long-term investors' highest-yielding stocks are not those bought with a high yield to start with. While hedging the volatility in oil price movements is always an inexact science, the fact that management does it emphasizes that a lot of the value in the stock, comes from management's expertise in buying assets rather than over-reliance on a rising price of oil.
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15535.0
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2023-06-03 00:00:00 UTC
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Rule Breaker Investor Habit No. 6: Aim for 60% Accuracy
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AAPL
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https://www.nasdaq.com/articles/rule-breaker-investor-habit-no.-6%3A-aim-for-60-accuracy
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nan
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nan
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In this podcast, Motley Fool co-founder helps the world get smarter, happier, and richer.
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.
See the 10 stocks
Stock Advisor returns as of May 15, 2023
This video was recorded on May 24, 2023.
David Gardner: Every once in a blue moon or a new moon, or an old moon or a borrowed moon, I queue up a hodgepodge of points that I want to share. They're not really related to each other, they're a hodgepodge, but I force them to fit into this mold. Something old, something new, something borrowed, something blue. You probably know the expression, don't you? It's what brides traditionally are supposed to wear on their wedding day for good luck, something old, something new, something borrowed, something blue. While I won't be providing this on this podcast, you're also supposed to have a silver six-pence in your shoe. Now if you want to locate a dime or a quarter, slip it in your shoe for this week's podcast, I think you might have even better luck. Anyway as summer here in the Northern Hemisphere begins to crank itself up, can you tell I'm at the beach this coming weekend it's time to crank back up this episodic series, Old, New, Borrowed and Blue. We're going to talk about Rule Breaker investor habit number six and the second-order effects of your businesses products, and services. We're going to talk about your second brain and an oh-so blue faker breaker stock. Something old, something new, something borrowed, something blue. Only on this week's Rule Breaker Investing.
Welcome back to Rule Breaker Investing. Thank you. Each of you, whether what you wrote me was featured on last week's show or it wasn't, I really appreciated the birthday gifts that I received earlier this month in the form of you telling me what you've learned from me. It's always inspiring for me to hear that and be reminded of, I think some of the most important things that have come through this podcast, whether it's just here in 2023 or now in our eighth year over our eight years, it really means a lot to me to hear from you what you've learned. That's just such a gift and I tried to share it back last week. Some of my favorite ones that I heard, it's a pleasure to do what you have learned from David Gardner each year we did again last week. If you missed last week's show, I think you'll really enjoy it, especially if you are newer to Rule Breaker Investing, if you're a newer investor, because that opportunity to share back the key things that listeners have learned is a wonderful way to learn if you're new. What you've learned from David Gardner also gave rise to a few that I'll save for next week.
Next week is of course, the May 2023 mailbag. It is your Rule Breaker Investing mailbag, our email address, is rbi@fool.com. Some of the great notes I got earlier this month, I'm going to be featuring there because they're better for mailbag, but there's room in the mailbag. If you'd like to submit your best question for me, your best thought, a poem, a stock pick, anything that comes to mind that you feel like that breaks the rules in some way, shape, or form, I'd love to hear from you. The purpose of the Motley Fool is to make the world smarter, happier, and richer and that's exactly what this podcast tries to do week-in and week-out, but especially enjoy the final week of every month where I get to hear from you and feature back your thoughts. If you have a great one, something you think might bring a smile or cause a light bulb to pop over top of many, a Rule Breaker head nationwide and worldwide, please do share at rbi@fool.com, I'll speak to it next week. Well, this is volume seven of something old, something new, something borrowed, something blue. I hasten to add that each time I do this, it's of course a brand new podcast although with this one, something old is usually something we've talked about before, is something I feel is important to bring back. In a sense, this is always fresh, always new, but this particular episodic series, since we have old and borrowed things, I might be refeaturing something that I think you should hear a second time, and that's the way we're going to kick it off right now with something old. For something old this time, I wanted to go back to the six habits of the Rule Breaker investor.
This is a list that I first came up with several years ago, one week on this podcast and it's something that I wrote about at fool.com. It's something that I've continued to use going forward. When I thought about what are six habits of Rule Breaker investors, what are six things you and I should do, should make part of our mindset in some cases should make sure we don't do. What are habits, good habits we can get into as investors. In particular, I came up with that lists several years ago because I realized prior to that, what I had mainly done with Rule Breaker Investing is to tell you the traits of stocks that we look for as Rule Breaker investors. Most of the first 20 years of Rule Breaker Investing was mainly about the companies and the pattern recognition that we develop as investors. Saying this one, not that one, give me a real Rule Breaker and not a faker breaker, that's a phrase I'll be using a little bit later this week, but give me the stuff I need to know to find the right stocks. But what I realize subsequently somewhere in the third decade or so of writing about this is, you know, it's one thing to tell people, the stocks that they should own, that they should buy and hold but if they're not going to buy them, or if they're not going to hold them, or if they're going to start doing silly things that I would myself never do, we're not doing a good enough job for you at The Motley Fool, if we're not also speaking to your mindset and the habits that you should get into as an investor. For something old, I'm looking back at one of those six habits of the Rule Breaker investor. Because I tend to love to randomize and six is a great number for rolling a traditional six-sided die, I did that and I rolled six this particular week.
Let's talk about the sixth habit of the Rule Breaker investor. That is to aim for 60% accuracy. That's what I want to speak back to again this week. Now the first thing that most people would ask if we're talking about investing is what the heck is accuracy and what would be 60% that we're shooting for? What is accuracy? Accuracy is a term that I coined simply to describe whether you have accurately picked a winning stock. The way that we measure that is over whatever your time frame is, I would suggest a minimum of three years, but you could just say your long-term holding period, we would say in my parlance anyway, that is, you are accurate, you made a good pick if that stock beats the market. If that stock loses to the market, you were inaccurate with your effort. Of course, if it's a market performer, I would still say that doesn't meet the accuracy rating where I'm looking for something that's beating the market. Yes, if after seven years you've held a stock that's up 173% and the market's up 170%, I would still say you're accurate, you are definitely beating the market. It's fairly straight math here. We simply look at the return of your stock and you can include dividends versus the S&P 500s return and you could also include dividends for it if you like. You are accurate when you beat the market with each stock pick, you are inaccurate when you don't.
Habit number six for the Rule Breaker investor is to aim for 60% accuracy. Now, over the course of my life of investing this way, I doubt that I personally have hit a 60% accuracy. I guess the second point after having, with my first point, define what the heck we're talking about when we say accuracy. The second thing I want to say is that we're going to aim high. We're aiming high. I've learned that from a lot of great leaders and mentors over the course of time. If you don't aim high, you're unlikely to get very good results. Even though we may not actually hit the six out of 10 picking stocks to beat the market accuracy level, that's what we're aiming for because aiming high makes it much more likely, will outperform our own lower expectations if we didn't aim high. Aim for 60% accuracy. I didn't say insist on 60% accuracy or stop investing. If you don't have 60% accuracy, I simply say aim for 60% accuracy. Which leaves my final point about this, something old, this sixth habit of the Rule Breaker Investor, and that is that you should proceed forward with confidence. In my mind, when I sit there and ask, will I buy the stock? Should I buy this stock? It's really a mindset thing. I want to be able to be comfortable and confident, not feel like I'm rolling the dice or being a crazy man, but confident enough that I really do think that this stock will beat the market, at least, let's say 6 times out of 10. If you embrace this, if you adopt this mindset, if you settle in to this habit as an investor, and I would especially suggests you should as a Rule Breaker Investor then what it means is you're only going to pull the trigger. You're only going to send in that buy order and end up with that stock in your portfolio. If beforehand, you're sitting there going, I think this is going to beat the market. Now I've often likened , picking public market stocks, stocks traded on the New York stock exchange, the Nasdaq, et cetera. I've often likened it to venture capital investing in a lot of ways, rule-breaker investors have a VC mentality. I think anybody who's worked within the world of venture capital will know that very infrequently do many venture capital funds themselves have 60% accuracy.
It is not uncommon at all in long-standing big venture capital funds to have a real minority of the positions taken in those venture capital funds actually win or beat the market. The good news is, and this also happens in Rule Breaker Investing, as I've demonstrated over almost 30 years now, the good news is your winners really, if you hold them, really can and do win for you. In my experience, they wipe out all your losers. The great news here is if you're investing like a rule-breaker and you really are holding onto these winners over the course of time. That by the way, is the first habit of the Rule Breaker Investor. If you don't know these six, just Google them. You can go back and listen to me, talk them through for that first podcast on Rule Breaker Investing, the six habits of the Rule Breaker Investor, but the first habit of the Rule Breaker Investor is rule Number 1, let your winners run high. I lead off with that as rule Number 1 because it is the single most important way to make a lot of money on the stock market. It's not by being right all the time or jumping in and jumping on timing the market. It's holding onto the things if you find Apple early, if you find Tesla early, if you find Nvidia early, if you find Intuitive Surgical early, if you find Chipotle early, it's all about holding onto those great stocks over time. That's really how venture capitalists, win, they usually hold for 10 years or so. That's how rule-breaker investors, win.
You should know you really can win this way without a particularly high accuracy, but I think it's great for us as more speculative investors to tend to go into situations where we're confident. Now with something blue at the end of this week show, I'll speak to the other side of this and what fails and why it fails, but that's for something blew a little later. Let's wrap it up here with something old Rule Breaker Investor habit Number 6 aim for 60% accuracy. Now for something new. Every year I go to the conscious capitalism summit in Austin, Texas. It's in October. There I have accommodation of something old and something new which I love every year. Something old would be the old friends that I get to see from one year to the next. CEOs, authors, people who've understood the power of capitalism done well, how much the world benefits from it, how much the world needs it, and how the real leaders practice it. I get something old to remeet fantastic CEOs and leaders who really are winning for all of their stakeholders even though many businesses worldwide don't think that much about winning for much other than themselves. That's something old, old friends, but then again, new friends.
If you're a working professional and you go to conferences from time to time, maybe there's that key conference that you go to every year for your industry, you'll know that there's a lot of something old from one year to the next studies, but then there's always, if it's really good, something new, there's a new thinker, new speaker, there's a new trend and new technology. Make sure your heads not buried in the sand. You are picking your head up looking around you as an individual and entrepreneur or industry, you're looking at reality and you're saying, there's something new out there, let's talk about it. Something old in something new, true. Many of the annual conferences that you and I may go to from one year to the next. Well, I had a great something new moment in 2022 last October, and I just wanted to share that as something new this week. Something new for me was meeting Victor Cho. Now Victor Cho I have not met before, but Victor for seven years in 2014-2021, was the CEO of a company many of us have heard of, and that would be Evite. If you've ever had an invitation to a book club or party or maybe a sports banquet of some kind maybe, they used Evite. You might love Evite. Some people probably hate Evite or have mixed feelings about Evite, but for the most part, you should know, especially in recent years, under Victor's leadership, Evite was doing things really well. Generally protecting your privacy, trying to make it easy, not trying to oversee spam you, Evite has been really owned by others over the course of its lifetime.
Owned by InterActiveCorp for 10 years or so then owned by Liberty Media more recently, and I think it's held down by in private equity. This has never been a public market company, but it's the stock that had it gone public, I certainly would have been looking at it and thinking about it. I don't know if I would have recommended it or not, and I'm not here to promote Evite as an awesome site or stock, especially not a stock because you can't buy it, but I do want to say Victor gave a pretty great talk at the conscious capitalism summit last year. Now he's talking about stakeholders and I'm going to get into his key point in a second, but before we go there and let me just make sure that, you know, if you don't know about conscious capitalism, which I sit on the board of nationally, you should know that one of the key traits of conscious capitalism, the companies that promoted that live it from one day to the next is a desire to win for each of its stakeholders. Conscious capitalistic companies name, their stakeholders.
They say things like, well, who are our stakeholders? You've probably done this for organizations you work for or are affiliated with. Who are our stakeholders? Well, certainly your customer, seems like an important stakeholder otherwise, why do you exist? Your employees are critical stakeholders. They're really the energy that enables you to live out your purpose in the world to produce your products and services. Your employees are important stakeholders, even though many businesses have not treated them as such over the course of history, even more recently. Many companies don't do this very well. Some others stakeholders you might name. Well, how about the environment for some companies, how the environment is treated, even though it often doesn't have a voice for itself, is an important stakeholder. We're all connected through planet Earth. Partners and suppliers matter a lot.
Certainly, shareholders, since this is an investing podcast and it's hard, you and I are hoping to be invested in, rewarded for being invested in companies we are an important stakeholder too. The best business is think about winning for all their stakeholders, not just taking one of those groups and saying, we're just here for them. In recent years, when I've talked about this, I've mentioned some next-level thinking which I'm about to give you, especially if you are a leader of an organization. If you own your own business, you're running something. Maybe you're a hired gun for somebody else, for-profit and not-for-profit. One of the better ways of thinking about winning for your stakeholders. Let's take a quick example. Let's think about your employees and let's think about their health. That's something we've paid some attention to at my company, The Motley Fool. I've talked about that some on this podcast over the years, but imagine if every company worldwide, every organization for-profit and not-for-profit, made their employees health a key stakeholder. That means you have metrics around it, you're scoring it, you're trying to drive that higher, you're trying to have a healthy workforce.
Some companies do this amazingly well, far better than a small company like mine might, but others, even some very big ones. Sometimes we can think about hold governments that don't seem to treat their workers very well. You can see how this is still dearly needed. That to me is almost a table stakes for being a good organization here in 2023, but next level from employee health, I think is mental health. Imagine if it's not just about your employees, physical health, what traditionally we call health, but imagine if you start scoring and trying to improve your employees mental health. I did see another great talk at the conscious capitalism summit last year given by Dan Simons of Founding Farmers, which is a Washington DC area based wonderful, large restaurant company, but Dan gave a talk saying, mental health is just health. Why are we calling it mental? Mental health is health and he's really managed his hundreds, nearly 1,000 employees toward that over the course of time and done so well by them. Another next-level thought when we talk about your employees before I go to what Victor Cho taught me. Another next-level thought for you is just what a few actually named a new stakeholder for your organization? Especially in this remote hybrid world that many of us are living in, what if you decided that a key stakeholder that you're going to measure success for your organization is not just your employee? Yes, but what about a new stakeholder, the family of your employee, that that family is happy or well cared for or healthy? It may not make any sense for many of us to make that commitment, but at a next-level orientation, if you want to go above and beyond and be a superstar organization potentially, I might suggest you think about the family of your employee and how you can help and make it thrive.
So those are all ideas I've gotten from conscious capitalism in years past, but here's what Victor Cho shared at last October's conscious capitalism, he started saying one thing that is very important, especially think about social media or some of the regulation that's being suggested around Big Tech. Why Victor asked somewhat rhetorically, why is that happening? And what he went on to say, and he thinks about this as a leader himself. You can go to his website victorcho.com and read more from him and see more from him on this topic, but what he started saying is, you know the best companies and the smartest companies should be thinking about the second-order effects of what their products and services do to people down the line and out there into the world. Many businesses of course, just want to sell their widget, their product, or service and get a sale, and if it's profitable even better, get a bottom-line caching and a lot of businesses are happy just to have that, but if your product or service might have some secondary effects that others might judge harmful or at least questionable, Victor suggested to all the leaders in the room in Austin last fall.
Maybe you should start acknowledging the second-order effects of your products and services and if you're brave enough to do so, why not start managing them? Why not start showing that you have a conscience, that you are socially responsible and you are thinking deeply if you're, let's say a social media company? You're thinking deeply. You have your own research on what this might do to teenage girls, for example, and you are the first to come forward and say, there could be problems here. Surgeon General is not needed. We're going to give you some warnings in and around our product or service. Now, the example that Victor gave from American history, and this is one I know well because I grew up with friends who helped manage this organization was the motion picture association back in the 1930s, when movies first started to have significant social effects and become much more popular, moving from silent to sound, eventually moving from black and white to color.
The movie industry itself recognizes that not everybody should see every movie being made, and in fact, if you are a filmmaker and you really want to make your movie without it being censored. Parts of it taken out or just not shown together, the greatest thing that industry could do for the creative freedom of its artists and leaders is to create its own voluntary rating system to self-regulate, which is exactly what Jack Felony did in 1968 for the motion picture association of America. I grew up, I'm sure many of you did too seeing things like, that's a rated G movie, that's a PG 13. All of that is a voluntary self-regulated system created by the motion picture association and you can think about the benefits of giving guidance to parents and others so that you know ahead of time whether it might be objectionable or not, and how important that is in streaming today and these days, of course, beyond just a letter rating, you're often seeing phrases and explanation as to why even something like smoking these days gets called out as a warning that you should know about ahead of time, wherever you dear listener might think of that, but the key here is that the motion picture association recognized that it could self-regulate rather than have angry critics or the government come after it and start suggesting censorship.
That was a great example, the Victor Cho game, because it's I think something all of us can relate to, but now imagine if in industries that had potentially objectionable or unhealthy, fair, whether it's food, social media, the list goes on. Imagine if the companies who are the leaders and then I'm not saying this doesn't happen. It does happen some, but I want to double underscore how powerful it is when leaders make this happen. Imagine if the leaders in each of these industries came forward and said, this is potentially problematic in some circumstances. We're going to get ahead of that. We're going to let you know and we're doing our best to invest in a way that will protect and enable all humans to flourish despite the sometimes questionable second-order effects of our products and services. That for me, in October of 2022 was something new and I want to thank Victor Cho for his visionary thinking and sharing. It's my delight to share that with you. I know I'm speaking to people in all different walks of life.
Some of us are leading big organizations and some of us have retired, and this is just an interesting thought, but not something that's necessarily actionable. One of the things I love about our work at The Motley Fool is through our podcasts, articles, a lot of our media, we put things out there. We're never quite sure who's listening or what we hope good thing might happen next, but it is a delight for me to just continue to share my best thinking often coming from others in hopes that you'll put it into play in your own lives, and then maybe I get an amazing mailbag note 12 or 14 months down the line about how something that you heard here this week has made the world better. Something new. Think about, get ahead of, manage, and own the secondary effects of your organization. Now, for something borrowed, now whether or not I managed to land Tiago Forte authors in this August, where each year in August I bring authors of books that I've really appreciate onto this podcast, whether or not Tiago will make it to this podcast in August of this year. Here we are in May, and I want to be calling out my favorite read of 2022. Now, if you are a regular listener, you've definitely heard me mention this once or twice, but you may not have heard 10 minutes or so from me as to why I think Building a second brain is such a valuable book for all of my fellow humans.
Again, my favorite book that I read last year, Building A Second Brain by Tiago Forte talks about your two brains. The first one that we are all born with and that we use is really good at some things, for example, dreaming things up, imagining, creating. Those are the best uses of our first brain. Listening, reacting, empathy so much of the decision-making we make from one day to the next driven by that first brain that we tried to make smarter, happier, and richer that we rely on so much from day to day but the second brain starts to compensate for where our first brain is not so reliable. If you're like me and I hope you're not, you don't have a great memory and you start realizing, my first brain, the one in my head is really not great at remembering the right thing at the right time. How many amazing books or passages and books have I read that I don't now remember that I can't actively recall? Tiago Forte says, "The beauty of the world that we live in today is you can create a digital framework outside of your first brain, let's call it your second brain. You can really organize your digital life in a way there'll be so helpful for you going forward, whether you're competing against your fellow humans and a for-profit industry, or you're trying to win jeopardy, or you're trying to compete against artificial intelligence. Some of the AIs that start making their way.
Alien intelligence is, as Kevin Kelly mentioned a few weeks ago on this earth, you're going to benefit a lot from a more effective in fortes words second brain. Now, he really focuses a lot on the notes that we take. You might be a note-taker dear listener. I am. I own lots of different little Post-it pads in different colors. I even make the colors count. I have significance attached to different colors of different Post-it notes, and I have a lot of Post-it notes rolling around my den. I haven't always done as good a job processing them as I did when I first wrote them, but then I started to realize there's a reason that my life is full of unprocessed Post-it notes. It's because I'm not effectively enough taking notes in the first place so the notes we take Forte says, can be done better. Two thoughts he has I share with you here the first is every note you take, whether it's marginalia in a book or a post-it note, or you're keeping minutes for organization or taking notes on a sermon at church, each of those notes Forte suggests you should reconstitute in your mind as a message that you're sending to your future self. He basically says point number 2, you should be organizing for action with the notes that you take.
If you're just taking notes for notes sake, I mean, the only real justification I can see there is for some of us, the act of writing down makes us listen better and remember better even if you never process those notes or go back to them. But most of us take notes with the expectation we're going to use them at some point in future. But Forte, the author says, your future self, who you are working for right now by taking a note, your future self is a very busy person. It's a more complex and busy world in the future and that future version of yourself is like, I don't have time, what do you try? You're getting in my way. What is this note that you're trying to make me read or care about seven years later and so in respect of that future self of yours, you should be taking notes in a new way. You probably should be taking fewer notes if you're me anyway, you should be thinking more purposefully about why you're keeping this note, why you intend to and if you listen to the author, you really organizing action projects that you will initiate. No one's going to give you five stars for being a great note-taker.
That's probably not going to be on your gravestone at the end. No one's really going for the note-taker awards unless you're part of some specialized industry. Most of us are just doing it to be as practical and useful to our future selves as possible and Forte does a great job, not just reminding us of that in his book, but really helping us think about a system that we can use. He talks about it as projects, areas, resources, and archives. I'm not going to summarize his book here. I hope I've said enough with something borrowed here to interest you to look into it further if you haven't already heard me talk about this we'll come across building a second brain. That approach to organizing your notes in a digital way so that you're using the same system in each of the instances where you might be keeping notes. For example, a lot of us have some notes on our hard drive, let's say in folders. Forte says you should use the exact same organization of those folders as you might have in other areas. You might have an analog brain book. Some of us call it that like a commonplace book.
In a book you go back to where you're keeping notes, or you keep your schedule, or you keep your favorite quotes, whatever that is, you should be trying to use the same framework of the same structure. Maybe you also use Evernote. I do. In Evernote, you want to use the exact same framework and structures so that you know how to refine things later on of any of the notes that you're taking. Well, I'm going to start getting bored if I try to summarize a book that I haven't read for a few months, but I can tell you it is a fantastic read and it's my pleasure to borrow some of his great ideas from his book, Building a Second Brain. I was inspired to go on to start looking into apps. Maybe you're already using ones like this Instapaper or Matter, Reader. There are a number like this where these days you can, if you're reading on the web or you read a lot on your phone, instead of just reading that article on that site wherever you are, which often in my world anyway these days has really flashy annoying ads constantly distracting you from actually reading the article you're trying to read.
You can just drop that article, and that URL into an app like Instapaper or Matter and it will clean up all the ads and importantly it will let you highlight, just like you have a highlighter in your hand or your E highlighting in an Amazon Kindle app. It will let you highlight the articles that you're reading or the emails that you're reading in your digital life. So the opportunity to begin highlighting and tagging and hooking into your second brain a lot more than just what you're reading is part of what you'll discover as well so we're all leading two lives these days and I don't think it's going to change for the rest of our lifetimes we're leading an analog life, which has been true from time immemorial, and we're now leading a digital life and the better that you can organize that digital life, that you can make maximum use and productivity of it and hook it into your analog world so that you can produce that exact quote just as you're about to give a speech, you know exactly where to find that, it comes back to you at the right moments, the notes that you took. Now that you are your future self, all of a sudden you're able to draw on them and have the most used or have the perfect story.
That is part of what I've begun to experience with a second brain. It's been a wonderful boost for me over the last year and if this is new what you're hearing from me, I highly suggest you act on something borrowed this week and start building a second brain. In episodes past for Something Old, New, Borrowed, and Blue, blue for me has meant sometimes the sadness that you and I might be feeling, or it might be the colour uniform of a sports team I want to talk about, or it might be the ticker symbol onetime, literally ticker symbol BLUE. It gives me an opportunity to talk about investing and/or business and/or life. But for this month's something blue, I'm going to go with a stock, Blue Apron. Blue Apron, raise your hand if you recognize that company name. I'm looking across the podcast platform world and I see a lot of hands up. Now not every hand is up, but I do see a lot of hands up because I think a lot of us have at some point come across the concept of meal delivery or meal kits.
Blue Apron is a company that fairly quickly and fairly robustly built up a meal kit delivery platform. The company was founded in 2012. It actually went public five years after that in 2017 and certainly caught a lot of attention. I think I probably tried it once or twice, maybe you did too. COVID came along and it probably benefited some. It had that little initial COVID kick when the stock market came flying back and we all thought, well, we might be locked down in our homes for much longer than in reality, we've ended up being locked down in our homes. So Blue Apron has gone through a number in its just 11 years of being a company. It's gone through a lot of different twists and turns. But I'm sorry to say, and I say I'm sorry because I tend to cheer on companies, I want better products and services. I want things to work in the world. As an investor, I want stocks to go up, not down. But I'm sorry to say Blue Apron is an example of a real failure, now that we can see with 2023 eyes what has happened. Let's briefly review some of the highlights and lowlights of Blue Apron.
As I mentioned, the company was founded in 2012. Now it wasn't first to market in a sense. There was a company called HelloFresh that many of us may recognize today. HelloFresh is a bigger, more successful business today than Blue Apron. I'll talk about that in a little bit. But it got started in 2011. Now it wasn't 10 years before Blue Apron, it was only less than a year before. But this German-based company got started a little bit earlier and scaled a little bit harder and faster and today is much more successful. But 2011 and '12 is when this industry really started. Now the next date that I want to talk about is 2017. As I mentioned, that was the year that Blue Apron went public. Wow, just five years after being founded as a company, Blue Apron is a public company. Imagine the pressure that was felt by the management team, by the employees, and the pressure the investors felt. Well, if you are a venture capital investor, you might've been selling out your shares so that the company could go public.
You're pretty happy with yourself today. But if you were buying shares really at any point from 2017 on right through to today, it has been an unmitigated disaster. It's one of those stock chart patterns which is best described as Mount Matterhorn or Mount Everest, where things are really, really high and pretty much just go hyperbolically straight down over the course of time. Blue Apron came public around $160 a share six years ago, and today it is trading at about 50 cents. It has lost 319-320th of its value. The company, once with a market cap over $10 billion, today has a market cap below $50 million. Here's a somewhat surprising fact to me. Where does Blue Apron trade today? Unless I'm seeing things wrong on my Internet browser, I think Blue Apron still trades on the New York Stock Exchange. That I guess shows the changing ways of the New York Stock Exchange and what it takes to be listed or de-listed on big public exchanges these days. But ticker symbol APRN appears to me anyway, still to be on the New York Stock Exchange, with the stock price market cap below $50 million. I think that the primary reason that this ended up not succeeding as a company is that it was an innovative idea that didn't have enough differentiation, didn't have enough distinctiveness relative to what was already out there in the marketplace.
For example, HelloFresh, there were other copycats that existed in the early days of Blue Apron's businesses. But then once bigger companies like Kroger or Whole Foods started seeing what was happening, those companies could also come out with some competitive offerings in the meal kit and meal delivery industry and all of a sudden, Blue Apron had gone from looking like it might be a Rule Breaker to being a tiny underfunded also ran in an industry it had helped create. I think the key takeaway for something blue this time is a reminder about the snap test. The snap test is something I first wrote about in our book Rule Breakers, Rule Makers, our Motley Fool 1998 book. I wrote the Rule Breakers, the first half of the book, and I first started talking about the snap test, and I've talked about it a number of times since on this podcast. Regular listeners will know what I'm about to do. But if you haven't heard this before, if you could snap your fingers and overnight the stock that you're researching, the company that you're thinking about disappeared the next morning, would anyone notice? Would anyone care? Now, obviously, some people would probably care.
The employees of the business, if it disappeared overnight, would care, but this is all a relative thing. How many people would really notice? How many people would really care? For me, as a lifetime lover of the stock market and picker of stocks, I have tended to do better when I listen hard for that snap and I respect what the test is teaching us. In short, you should be buying and even loving the companies that if they disappeared overnight, tons of people would notice and many, many people would care, would be sad. Those typically are the stocks that will do best in our portfolios over long periods of time. Those are the companies, the ones that pass the snap test, that we should be looking to be part owners of. On the other hand, companies, and I would say Blue Apron is a clear example, if you'd snap your fingers at any point in the last 11 years, it remains true, 2012, 2017, 2023. If you snapped your fingers, not a lot of people would notice and not a lot of people would care, especially in an industry that is rife with copycat kinds of solutions. At the Motley Fool, and I'll speak to you as well, dear fellow stock picker, dear fellow armchair investor, we often don't get much credit.
We're not asking for it, but we often don't get much credit for the stocks we don't recommend. But I think some people, when Blue Apron first showed up, were saying, "Hey, Dave, you're going to pick that for Rule Breakers? That looks like a Rule Breaker." Well, another section of the book Rule Breakers, Rule Makers I wrote 25 years ago in 1998 talked about the faker breaker. Those are companies that look like Rule Breakers, but they're not actually Rule Breakers. Often, the moment where you can start telling whether a Rule Breaker is a faker breaker is when, in the marketplace, a very similar solution, a very similar copycat product or service shows up and for the first time, your upstart, that visionary, that team that came up with that product or service in the first place is tested to see whether they can deliver measurable value above and beyond just the cost of that product or service. That copycat that showed up with a similar-looking brand or a similar-looking price is our original hope for Rule Breaker able to rise above, to demonstrate value above and beyond the copycats who show up with the same products and the same prices. In my experience, the great companies of our time, the Rule Breakers, do managed to combat the competition that will inevitably show in industries that are growing. Whereas the Blue Aprons of the world, something blue this week, remind me that often they don't. I think what you and I should be looking for is some combination of hitting enough scale that something can't be sunk. It's big enough that it will be around for a long time. HelloFresh, by the way, is a multi-billion-dollar company now still 12 years after its founding, multi-billion dollars listed on a German Stock Exchange.
But for many of the upstarts, Blue Apron included, they're not still around. I think, again, the key takeaway is were they differentiated? Did they have some clear value, add or special sauce, even sometimes a gimmick, something of that allows them to rise above the competition? Or if people catch on to quickly to what you're trying to do too early, it can make it very hard unless you're doing something special in this world that can make it very hard to succeed. There are some thoughts on ticker symbol APRN, Blue Apron, which is desperately trying to change up its model and right its ship. I do wish them good luck. I like this industry. I think some people got fascinated by meal kits initially and then found the offerings too repetitive or they started thinking, well, now that I've learned the recipe, I can just do this myself.
There may be some endemic problems to this industry overall, but I think it's served a lot of people in a lot of ways. So good luck to Blue Apron. But whether or not it works going forward, I think we can all learn from the past and become better investors by observing, so something blue. Then something old, something new, something borrowed, something blue. Again, to review this week's something old, how about aim for a 60% accuracy as one of your habits as a Rule Breaker investor. Something new, what about managing the second-order effects of your product or service ahead of regulators, even ahead of the media and your critics? What a better world and what a better outcome that will be. Something borrowed, building a second brain. Something blue, Blue Apron. A classic example, I'm sorry to say, of a faker breaker. If I've inspired any thoughts, I'd love to hear back from you. Rbi@fool.com is our email address and I'll feature the best thoughts and questions on next week's show. It will be your May 2023 mailbag. In the meantime, especially for those in the United States of America, I wish you a happy long weekend and Memorial Day. Remember the reason for that weekend. Talk to you next week. Fool on.
David Gardner has positions in Apple, Intuitive Surgical, and Tesla. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, Intuitive Surgical, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The purpose of the Motley Fool is to make the world smarter, happier, and richer and that's exactly what this podcast tries to do week-in and week-out, but especially enjoy the final week of every month where I get to hear from you and feature back your thoughts. Parts of it taken out or just not shown together, the greatest thing that industry could do for the creative freedom of its artists and leaders is to create its own voluntary rating system to self-regulate, which is exactly what Jack Felony did in 1968 for the motion picture association of America. All of that is a voluntary self-regulated system created by the motion picture association and you can think about the benefits of giving guidance to parents and others so that you know ahead of time whether it might be objectionable or not, and how important that is in streaming today and these days, of course, beyond just a letter rating, you're often seeing phrases and explanation as to why even something like smoking these days gets called out as a warning that you should know about ahead of time, wherever you dear listener might think of that, but the key here is that the motion picture association recognized that it could self-regulate rather than have angry critics or the government come after it and start suggesting censorship.
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If you missed last week's show, I think you'll really enjoy it, especially if you are newer to Rule Breaker Investing, if you're a newer investor, because that opportunity to share back the key things that listeners have learned is a wonderful way to learn if you're new. You can go back and listen to me, talk them through for that first podcast on Rule Breaker Investing, the six habits of the Rule Breaker Investor, but the first habit of the Rule Breaker Investor is rule Number 1, let your winners run high. It's holding onto the things if you find Apple early, if you find Tesla early, if you find Nvidia early, if you find Intuitive Surgical early, if you find Chipotle early, it's all about holding onto those great stocks over time.
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You can go back and listen to me, talk them through for that first podcast on Rule Breaker Investing, the six habits of the Rule Breaker Investor, but the first habit of the Rule Breaker Investor is rule Number 1, let your winners run high. I don't know if I would have recommended it or not, and I'm not here to promote Evite as an awesome site or stock, especially not a stock because you can't buy it, but I do want to say Victor gave a pretty great talk at the conscious capitalism summit last year. So the opportunity to begin highlighting and tagging and hooking into your second brain a lot more than just what you're reading is part of what you'll discover as well so we're all leading two lives these days and I don't think it's going to change for the rest of our lifetimes we're leading an analog life, which has been true from time immemorial, and we're now leading a digital life and the better that you can organize that digital life, that you can make maximum use and productivity of it and hook it into your analog world so that you can produce that exact quote just as you're about to give a speech, you know exactly where to find that, it comes back to you at the right moments, the notes that you took.
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Many companies don't do this very well. So Blue Apron has gone through a number in its just 11 years of being a company. Now it wasn't 10 years before Blue Apron, it was only less than a year before.
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15536.0
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2023-06-03 00:00:00 UTC
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Guru Fundamental Report for AAPL - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-46
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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15537.0
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2023-06-03 00:00:00 UTC
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Author Peter Zeihan on China, Apple, an Aging Population, and More
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AAPL
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https://www.nasdaq.com/articles/author-peter-zeihan-on-china-apple-an-aging-population-and-more
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nan
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Peter Zeihan is a geopolitical strategist and the author of The End of the World Is Just the Beginning: Mapping the Collapse of Globalization.
Motley Fool senior analyst Bill Mann caught up with Zeihan to discuss:
Why Apple is diversifying production away from China.
What an aging population means for the U.S. economy.
Why de-dollarization is less likely than many think.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on May 28, 2023.
Peter Zeihan: I would just warn you before you short China, but the other side has to survive for you to profit from the short. It has been the fate of most stock markets throughout history to go to zero. It is only in the globalized order that the luxury of shorting things has existed. We're going to be going back to a little bit older of a system.
Mary Long: I'm Mary Long and that's Peter Zeihan, a geopolitical analyst and best-selling author. Bill Mann caught up with Zeihan a few weeks ago for a conversation that Motley Fool ONE subscribers got access to first. Now we're sharing it with you. Bill and Zeihan discuss the probability that China won't be an economic superpower in a decade, the status of the US dollar as the world's reserve currency, and a demographic problem that the Fed is closely watching.
Bill Mann: I thought what would be a fun conversation is, you know from your work that there are a lot of things that are in the common knowledge. Maybe as Mark Twain wants to put it, the things that gets you in trouble are the things that you believe that ain't so.
Peter Zeihan: Sure.
Bill Mann: What I thought would be a fun conversation given your expertise is if I were to tee you up on certain topics and maybe you can talk about things that are common knowledge that aren't so.
Peter Zeihan: That works for me.
Bill Mann: Fantastic. Let's start with Number 1. The largest or maybe second largest country in the world, depending on the day and how it's measured, which is China. Obviously, China is some form of superpower. What are some of the things that people believe about China or that are widely thought about China that are so?
Peter Zeihan: Technological leader, on track to be the largest economy in the world. Massive manufacturing superpower that doesn't need help from anyone. Military, especially a navy that could take on and defeat the United States, on the verge of having the global currency. All of this is utter horse.
Bill Mann: Fair. Why don't we start with any one of those? Actually, one of the topics that I was going to bring up was de-dollarization or the brick reserve currency, which I also happen to believe is a pile of nonsense, given that it is underpinned by two dying commodities countries plus the most indebted country in the world.
Peter Zeihan: You're being very kind to them.
Bill Mann: That's right. You lead with a very cheerful prognostication, which is that we are within the last 50 years or so.
Peter Zeihan: 10.
Bill Mann: Of the end of China.
Peter Zeihan: Yes. Where should we start? Let's do the historical backdrop because that'll set the stage for everything else.
Bill Mann: Perfect.
Peter Zeihan: In the world before World War II, you had a series of competing empires who had good land and good internal transport and a technological edge. They dominated the world and they fought over everything. Those fights brought us World War II and it all came crashing down. Then the Americans found themselves facing Stalin and like, oh, he's scary. We're going to need some people to stand between us and him. Since everyone who was a potential candidate who would just get out of the world's most horrific war, they needed some incentives, so we paid them. We used our navy, the only navy of size to survive the war, to patrol the global ocean so that anyone could trade with anyone else and access any commodity in any market at any time. In exchange, you had to side with us against the Soviets. That created NATO and the Japanese and the Korean and Taiwanese alliance. Ultimately, by the time we got to 1980, it involved China as well. That political and security deal is globalization. The Americans have been backing away from that now since 1992. The fact that the American saw it as security deal, everyone else saw it as an economic deal, the Americans never invested their economy. Everyone else did. You can see where I'm going here. Without that security overwatch, none of the rest of it works. That's only piece one though.
Piece two is when everyone started trading, they started specializing. When we were all living under an imperial system, most of us were farmers and kids were free labour. You would have as many as you could plus one because that's how you found out you had too many. But when the world started to urbanize and industrialize, we started taking manufacturing and services jobs, and none of those were on the farm; they were in town. When you move into town, kids go from being free labor to a free source of migraines, so you have fewer. Fast-forward 75 years, the world isn't running out of children. That happened 40 and 50 years ago. The world is now running out of working age adults. Countries that joined this system later, that started urbanizing later, could basically pick up the idiots guide to making a city and do it a lot faster because the technology had advanced. There were more countries with experience. One of the last ones to do that was China. The Chinese urbanization experience really didn't get going until 1980. But it happened so fast that in a single generation they've gone from an average of 5-7 kids to in places like Shanghai and Beijing, 0.7. We're looking at complete population collapse across a lot of the world. But in China it's going to be so dramatic, it's also going to trigger civilizational collapse. They no longer have the young people to consume or build, their labor costs have gone up by a factor of 15 since the year 2000. They now are on the verge of being the greatest country in the world without any replacement generations coming up from behind. The idea that they can be the world's largest economy is just, it's silly, even if you believe Chinese statistics. The last time the Chinese issued a bit of an oops, they disclosed that they over counted their population by over 100 million people.
Bill Mann: Kind of a lot. [laughs].
Peter Zeihan: The scale of the disconnect here between reality, Chinese statistics, and popular belief is just shocking.
Bill Mann: When we look at a place like China versus another country in, I guess what you would call secular or demographic decline like Italy, is it because the amount of disparity between the haves and the haves nots is so wide that that compact is breaking down?
Peter Zeihan: Well, the have, have nothing doesn't meet as much when you are in a dictatorship. Social stabilities, political stability matters, but they're really in a one-man government system and they have a cult of personality. It's certainly there grinding under the surface. It's not a plus. But if you had the degree of economic inequality of China in a place like Germany, things would break. I think it's more of an issue that Chinese agriculture was never particularly productive. It was very labor-intensive, was basically think the Jews in Egypt in 4,000 BC or whatever the year was. It's slave labor where people are living in a subsistence existence under the tutelage or control of the state.
Peter Zeihan: You can only go one way out of that because there was so much labor. It was actually pretty productive per hectare. But now that everybody has moved into a city and everyone's been in a city for 20 years, they've forgotten how to farm like that. They can't go back. The type of agriculture that the Chinese need to grow their food in the areas they need to grow it, can't be mechanized very easily. We're looking at a population collapse and a food collapse at the same time, we're likely to see a manufacturing collapse and a political collapse. There's a long list of bullets that are in the magazine that is in the gun that's pointed at China's head right now.
Bill Mann: Why don't we pivot just about 100 miles to the east.
Peter Zeihan: Sure.
Bill Mann: We'll look at Taiwan. Obviously, there's a lot of saber rattling. Do you view that to be a response to domestic pressures within China?
Peter Zeihan: Well, remember, China is a one-man state now, so it's really hard to decide what the political system even means anymore.
Bill Mann: Fair. Which would you describe? I just want to make sure that we set the table right. Would you describe that as being a five-year phenomenon or is that something that you feel is consistent since the time of now?
Peter Zeihan: No, it's been a progressive thing. When Deng Xiaoping took over after the death of Mao. He had a collegiate cooperative group, a really large political elite that ran the country because he never wanted to see it return to the one-man state of Mao and the horrors of the Great Leap Forward and the cultural revolution that killed tens of millions of Chinese and set them back 50 years. He wanted to do something different. He set the stage for the China we know today, which is the industrial power. He gave way to a pair of guys, Jiang Zemin and Hu Jintao, who represented different factions. Each of them ran the country for 10 years and they were chosen by Deng while Deng was still alive. Hu knew he was going to start in this year and finish in this year, and he knew that 15 years before he got the job. That has worked reasonably well for them. But Deng realized he couldn't see forever. He knew that by the time they got to the next guy, he wasn't going to be able to choose that person. He assigned the Jiang faction and the Hu faction to come together and pick jointly someone new and that is Xi Jinping, the current guy. Xi Jinping originally, it was thought that he was going to be in the middle of a tug of war between these two big factions. He spent the first five years of his presidency destroying those two factions and he spent the next five years of his presidency destroying any other poll of independent power within the country, whether it was in business, local government, or the bureaucracy. He basically took anyone in the country with intelligence and the capacity of forming an independent thought, and exiled them, imprisoned them, intimidated them to silence, or just shot them. There is now no one left; it's just Xi. No one wants to bring him information because you might get shot for that.
Bill Mann: Seems bad. [laughs]
Peter Zeihan: You don't know the status of the conversation of the voices in his head. We're seeing increasingly stupid decision making from the very top with no one willing to challenge him. This is how you get that spy balloon, which is the dumbest thing I've seen a government do in 20 years. l think in the last 20 years, there's been a lot of dumb.
Bill Mann: That's right.
Peter Zeihan: This is how you get people disinfecting airport runways because they think that's what the leader wants. We're seeing this in finance and in agriculture, in manufacturing, in subsidies and across the governance space.
Bill Mann: How does Taiwan fit into that entire situation?
Peter Zeihan: Raw bubbly rhetoric. Now when you decide, you can either threaten Taiwan saying we're going to integrate it forcibly if necessary. This does get popular support. People like the idea of one China, because the Chinese are right throughout their history when it hasn't all been in one piece, it's been a fricking disaster. There could be something to it, but I don't think so. When you decide you're going to invade a country, you don't just wake up and pull the trigger. You build your military with that goal in mind. That means for years, sometimes for decades, you have to make certain assumptions about how you think the war is going to unfold. What the Russians have provided for the Chinese is proof that the Chinese chose wrong on everything. Assumption Number 1, it's going to be an easy fight. Not as easy in just invading Ukraine because you can walk to Kiev, you have to swim to Taipei. But still easy. Well, clearly it wasn't all that easy. Number 2 Russian weapons are awesome. Let's steal all their IP, just like we do for everything else and spend $3 trillion manufacturing clones of those weapons for our crews while they're having some serious buyers' remorse or I guess it'd be thieves' remorse.[laughs]
Bill Mann: Just remorse.
Peter Zeihan: Thieves' remorse. Third Russia is too important, we are too important, so if there is a war, everyone will just suck it up and make do, oops. But I think what has really terrified the Chinese government is the boycotts because the sanctions hurt. There's no way around that. But the boycotts hurt a lot more, at least a factor of four more. You had companies that had sunk in excess of $20 billion into Russia that just walked away. The Chinese don't even have a concept for the idea of corporate or citizen agency, much less an understanding of what they would do if they lost access to foreign corporations, technology and markets, its entire development model. Every guess they've made, they've guessed wrong, and they would be suicidal for them to now act because they also don't control the high seas, so they'd also lose all their manufacturers' exports, all the raw commodities imports, and all their energy. Best-case scenario where they capture Taiwan without firing a shot, they still de-industrialize and have a famine in under a year. This is not a winning scenario here, even the winning scenarios are awful.
Bill Mann: Bad news, you won.
Peter Zeihan: Exactly. Normally, I would say they wouldn't even consider it.
Bill Mann: Right.
Peter Zeihan: But it's a one-man show. It's entirely possible that Xi, will pull the trigger or some over-enthusiastic idiot bureaucrat will pull the trigger not realizing the damage he's about to cause and cause the downfall of China as an industrial power. It's still possible, it's just not sane.
Bill Mann: When you get to a system where there is no feedback loop though, the insane becomes possible.
Peter Zeihan: Right. We've seen that in our country.
Bill Mann: Let's go into a meeting into which neither you nor I were invited. About a month ago, Tim Cook from Apple was in China.
Peter Zeihan: Awkward.
Bill Mann: Right. There's obviously a drive among many companies, including Apple, to diversify their manufacturing out of China. Some are full-bore pulling out. But a company like Apple that has so much of its manufacturing in China, China can cause some real mayhem within Apple.
Peter Zeihan: Beyond painful.
Bill Mann: Beyond painful.
Peter Zeihan: If it wasn't for a company with Apple's cash reserves, it would be a system ending event.
Bill Mann: That's right.
Peter Zeihan: A lot of countries, a lot of companies have seen the writing on the wall for a while and whether it was because of COVID disruptions or Trump or now the Biden subsidies, whatever it happened to be, the dissent into narcissistic nationalism, people have been backing away. Labor costs are a big piece of that too, with different speeds from different starting points with different exposures. But the writing on the wall has been absorbed by everyone in the international business community, with the exception of Apple. Now, about a year ago, Apple did start relocate or maybe a year-and-a-half ago now, did start relocating like the AirPods manufacturing to Vietnam. That was the first thing, the first product that they actually decided, maybe we shouldn't put it all in China. They are the last company to come to the conclusion that there might be a problem. Now, in Apple's defense, the very concept of globalization is underwritten by the American Security order. The Americans have never said flat out that they're done. It's just been a bit by bit retreat. But now that it's more obvious and now that the Biden administration is codifying Trump's policies and now that labor costs in China are so high, and now that the Chinese government is actually criminalizing the act of owning data by private corporations.
Peter Zeihan: That's a new one this month. That one was delicious. Apple is realizing that, just maybe we shouldn't have 91 percent of our supply chain steps involved in China in some way. No matter how fast they relocate at this point, they can't get out fast enough because an iPhone is a lot like a car where if you miss one of those pieces, you just have a paperweight.
Bill Mann: That's right. Exactly.
Peter Zeihan: Most vehicles that are sold in the United States are 85 percent manufactured here so getting the last few pieces, there's already a network effect going for you in the United States and Mexico and to a lesser degree, Canada. There's nothing like that with Apple. They're going to have to rebuild the entire ecosystem and that is a minimum of five years.
Bill Mann: Who do you think had the power in that conversation though? Was it Xi or was it Tim Cook?
Peter Zeihan: It's hard to say that Xi has any power because of the lack of information, so he certainly has the authority to shut things down, but he can't necessarily do anything to help Tim Cook because that means going against the demographic and strategic realities of the country, not to mention Xi's own personal aura. Cook says he would like to leave, but remember, we are now dealing with a Chinese leader who is a son of the cultural revolution. If for the low price of a famine and strategic defeat and de-industrialization, he can retain power, he probably thinks that's OK. The leverage that Apple would normally have with a normal country just doesn't exist here. This was probably a conversation around people who are desperate in their own ways, who realize the person across the desk really couldn't do much to help them out.
Bill Mann: Just the capacity for mayhem.
Peter Zeihan: Yeah. Then there's plenty of that.
Bill Mann: I have actually taken a drive from Hanoi to Hạlong Bay and you go past the Foxconn facilities and they are some of the largest buildings I have ever seen in my entire life. You're driving past them for minutes. You can see exactly what is coming in an environment in which China is no longer a partner.
Peter Zeihan: Now there's one slightly less bad aspect to that. Those Foxconn facilities, this is an overgeneralization, but for the most part, they're assembly facilities as opposed to manufacturing facilities. That means of those 91 percent of the supplying chain steps, various parts coming to China are assembled into another part which is then sent out and then incorporated into another part. That goes over and over and over again. Assembly, while a critical part of the manufacturing process is a little bit simpler, I won't say easy, but simpler to replace somewhere else. The problem we're going to have, not just with the iPhones and cellular, but electronics in general, is that the Chinese for the last 20 years have provided fingers and eyes for the assembly process as opposed to going an automation route. Because the numbers have been there, they've been there in volume, and the security environment has allowed them to be co-located with a lot of these manufacturing facilities. If we lose that, there is no singular place anywhere else in the world that has that number of fingers and eyes at scale. India doesn't have the quality control and they're not all on the same infrastructure, Mexicans are too skilled. We're going to have to assemble in a different way than we have in the past.
Bill Mann: I had started with a question, you have spent the last 20 minutes answering it. I'm going to throw it out there anyway, if for nothing else, for a little bit of a chuckle, but so in the thought of investing in anything to do with China.
Peter Zeihan: I would just warn you before you short China, the other side has to survive for you to profit from the short. It has been the fate of most stock markets throughout history to go to zero. It is only in the globalized order that the luxury of shorting things has existed. We're going to be going back to a little bit older of a system.
Bill Mann: I have a beautiful old chart that was put together by the Bank of Japan and it shows interest rates over an 1,100 year period starting everywhere in which fractional banking was practiced. The lowest point in terms of interest rates over that 1,100 year period was in the last decade.
Peter Zeihan: That's demographics as well.
Bill Mann: How so?
Peter Zeihan: As you get older, you get more money and your consumption changes. In your 20s, and your 30s, you are buying homes and houses and raising kids and your income is low, so you have to borrow. Capital is relatively scarce in an environment where there's a lot of 20 and 30 somethings. But once you hit about 45 and you start thinking about retirement and your kids are moving out. You've already bought your house, maybe you upgrade your car, but it's never going to be as big of a hit to the economy as buying your first one. You're probably going to start thinking about downsizing, so you're actually negative on housing, but your income is the highest it will ever be. Societies that have more people in their mid 40s and onto early 60s are very capital rich, which pushes down borrowing costs, including interest rates across the board. Well, during the late '60s to the mid '80s, the baby boomers were in their 20s and 30s. From roughly 1995 until roughly 2020, the baby boomers were in their late 40s to early 60s and now they're retiring. We've gone through, in this globalization period, one of the most capital tight environments we've ever had, followed by one of the most capital-rich environments we've ever known, and now we're on the verge of mass retirement where all the money goes away again.
Bill Mann: Right. Money looking for something to do and now money is no longer looking for something to do.
Peter Zeihan: And what money is available, isn't only available in smaller volumes it has to support a massive and growing retirement environment. We should expect capital cost to skyrocket regardless, and we're only, in this last calendar year and last calendar year, at the very early stages of this. I would be very surprised if the headline prime doesn't hit at least seven. I think nine is a more realistic expectation over the next year and a half.
Bill Mann: You're then calling for a melting down of many more banks in the United States of America.
Peter Zeihan: Maybe. Here's the thing. When capital is cheap, things like tech do really well because they require a lot of young people who are wired together to do things that haven't been done before, to invent new processes, to prototype, to operationalize, and ultimately to implement. We've been in that environment since 1995 and it's been great for tech overall. But now that the 20s and 30s are not available in the same numbers, labor costs are going up. Now that the baby boomers are retiring, the labor costs are going up more, capital availability is going down. Tech was always going to crash. It was always hardwired in. But when the Fed looks at this, they're looking at a demographic crisis, because they know that outside of the United States and Mexico and a very small handful of other countries, there just aren't enough countries out there that have a lot of people in their 20s and 30s who consume. Well, what is monetary policy, if not a set of tools to regulate consumption?
Bill Mann: Either encourage or discourage. That's your choice.
Peter Zeihan: They're looking at the current environment. Is Silicon Valley in trouble? Yeah, that was going to happen anyway. Do we have some banks under pressure? Yes, the most vulnerable ones are linked to Silicon Valley. That's not a surprise. Do we have tools to deal with the rest of the banking environment? Yes. Will they be enough? We're going to find out. But it's not an unknown for them. What the unknown for them is, is if they don't get enough conventional monetary policy tools, interest rates, in their back pocket soon enough, forget this potential recession. We just exited the last period ever of global demographically led growth. If they don't have enough tools for the next recession, one that's an American-centric recession, the best-case scenario for the United States is that we will turn into Japan and never have positive economic growth again. If they have to hurt Silicon Valley and stress the banks in order to get tools, they're going to do it because they're concerned about the monster that's munching on the horizon, not the little problems right in front of us.
Bill Mann: Right. At least in some ways, the banks that are most at risk are the ones who have not been reading the tea leaves all along, and so if you have institutions that can at least theoretically take care of the aftermath, you do it.
Peter Zeihan: They're hoping, counting on maybe even is a better way to phrase it, that the reconstructions we did in the aftermath of the financial crisis in '07, '09 are sufficient to provide bulwarks for the broader system. I'm leaning positively on that, because it's been a year, interest rates have gone up faster than they ever have in history, and only four banks in one sub-sector have crashed. This is a reasonably good start.
Bill Mann: I love the thought of our regulators just crossing their fingers and moving forward. But I think that's, in some ways, when you're talking about an environment where there really is this level of a shift from a high-growth environment driven by super low interest rates to the reality of tighter capital. In some ways, the crossed fingers and make the right play, that's an arrow they keep in their quiver.
Peter Zeihan: Well, and the advantage of the US and Mexico have is conventional monetary pool still work here, because we still have consumption led growth. But it doesn't work in Europe and it doesn't work in Japan and it doesn't work in China.
Mary Long: As always, people on the program may have interests in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy stocks based solely on what you hear. I'm Mary Long, thanks for listening. We're off tomorrow for the holiday, but we'll be right back on Tuesday. See you then.
Bill Mann has no position in any of the stocks mentioned. Mary Long 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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Bill and Zeihan discuss the probability that China won't be an economic superpower in a decade, the status of the US dollar as the world's reserve currency, and a demographic problem that the Fed is closely watching. He had a collegiate cooperative group, a really large political elite that ran the country because he never wanted to see it return to the one-man state of Mao and the horrors of the Great Leap Forward and the cultural revolution that killed tens of millions of Chinese and set them back 50 years. But now that it's more obvious and now that the Biden administration is codifying Trump's policies and now that labor costs in China are so high, and now that the Chinese government is actually criminalizing the act of owning data by private corporations.
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Motley Fool senior analyst Bill Mann caught up with Zeihan to discuss: Why Apple is diversifying production away from China. They no longer have the young people to consume or build, their labor costs have gone up by a factor of 15 since the year 2000. Apple is realizing that, just maybe we shouldn't have 91 percent of our supply chain steps involved in China in some way.
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Bill and Zeihan discuss the probability that China won't be an economic superpower in a decade, the status of the US dollar as the world's reserve currency, and a demographic problem that the Fed is closely watching. Peter Zeihan: It's hard to say that Xi has any power because of the lack of information, so he certainly has the authority to shut things down, but he can't necessarily do anything to help Tim Cook because that means going against the demographic and strategic realities of the country, not to mention Xi's own personal aura. But it doesn't work in Europe and it doesn't work in Japan and it doesn't work in China.
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Hu knew he was going to start in this year and finish in this year, and he knew that 15 years before he got the job. There could be something to it, but I don't think so. Normally, I would say they wouldn't even consider it.
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15538.0
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2023-06-03 00:00:00 UTC
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Two Dow Stocks to Buy in June and Hold for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/two-dow-stocks-to-buy-in-june-and-hold-for-the-next-decade
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nan
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nan
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Unbridled enthusiasm for artificial intelligence stocks has pushed the Nasdaq Composite index 24% higher this year. Grizzled investors who've been through the wringer, though, remember how the same index of mostly growth stocks soared in 2021, too, before collapsing in 2022.
If you're part of the growing consortium of individual investors who have had it with risky growth stocks, you should take a look at the Dow Jones Industrial Average. This index, which is comprised of healthy businesses that can produce positive cash flows in good economic times and bad, is down by about 1% this year.
Image source: Getty Images.
These two Dow stocks don't have the explosive growth potential of some risky artificial intelligence stocks, but they offer something many investors find even more satisfying -- dividend payments that you get to keep regardless of what happens to the stock price.
Here's why these two relatively safe stocks have a great chance to deliver market-beating gains in the coming decade.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ), or J&J, is most famous for consumer health products, but that isn't something this company does anymore. In May, the conglomerate spun off its consumer health segment into a new company called Kenvue. Now, J&J is entirely focused on medical technology and pharmaceuticals.
J&J may have cleaved off one of its operating segments, but it's still a giant with enormous cash flows that allow it to make the most of any new business it brings into the fold. For example, the company recently spent $16.6 billion on Abiomed. This company makes the Impella brand of tiny pumps that keep a patient's blood flowing during heart surgery.
Thanks to the Abiomed acquisition, first-quarter medical technology sales bounded 11% higher year over year at constant currency. This figure would have been just 6.4% without Abiomed's contribution.
Over the past year, J&J generated a whopping $16.2 billion in free cash flow. That should be more than enough to keep acquiring new sources of growth like Abiomed and meet its rising dividend commitment. The company recently raised its payout for the 61st consecutive year, and the shares offer a 3.1% yield right now.
Apple
It's been nearly 16 years since Apple (NASDAQ: AAPL) launched the iPhone. At $51.3 billion during its fiscal second quarter that ended April 1, sales are as strong as they've ever been.
Strong iPhone sales are encouraging, but they aren't the main reason Apple is a great stock to buy and hold over the long run. It's a great stock because an installed base of over 2 billion iPhones at the moment gives Apple an unprecedented opportunity to market services.
Services revenue reached a new quarterly sales record of $20.9 billion during the fiscal Q2, and we can likely look forward to a lot more in the quarters to come. Apple makes app developers and content producers pay dearly for access to its enormous customer base. The App Store earns a 15% to 30% commission on all in-app purchases and subscriptions.
In addition to commissions from third parties, Apple's own services, such as Apple Music and iCloud, are growing by leaps and bounds. The company reported over 975 million paid subscriptions across its platform in its fiscal Q2. That's 150 million more than it had a year earlier and nearly double the number it had three years ago.
Apple is about as shareholder-friendly as a company can get. It returned over $19 billion to investors during Q2 in the form of share buybacks, and its board of directors authorized an additional $90 billion. The stock also offers a 0.5% dividend yield at recent prices, and it's raised the dividend for 11 years in a row.
10 stocks we like better than Johnson & Johnson
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of May 30, 2023
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple It's been nearly 16 years since Apple (NASDAQ: AAPL) launched the iPhone. If you're part of the growing consortium of individual investors who have had it with risky growth stocks, you should take a look at the Dow Jones Industrial Average. This index, which is comprised of healthy businesses that can produce positive cash flows in good economic times and bad, is down by about 1% this year.
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Apple It's been nearly 16 years since Apple (NASDAQ: AAPL) launched the iPhone. Thanks to the Abiomed acquisition, first-quarter medical technology sales bounded 11% higher year over year at constant currency. The stock also offers a 0.5% dividend yield at recent prices, and it's raised the dividend for 11 years in a row.
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Apple It's been nearly 16 years since Apple (NASDAQ: AAPL) launched the iPhone. These two Dow stocks don't have the explosive growth potential of some risky artificial intelligence stocks, but they offer something many investors find even more satisfying -- dividend payments that you get to keep regardless of what happens to the stock price. 10 stocks we like better than Johnson & Johnson When our analyst team has a stock tip, it can pay to listen.
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Apple It's been nearly 16 years since Apple (NASDAQ: AAPL) launched the iPhone. These two Dow stocks don't have the explosive growth potential of some risky artificial intelligence stocks, but they offer something many investors find even more satisfying -- dividend payments that you get to keep regardless of what happens to the stock price. J&J may have cleaved off one of its operating segments, but it's still a giant with enormous cash flows that allow it to make the most of any new business it brings into the fold.
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15539.0
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2023-06-02 00:00:00 UTC
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Capture Market Gains and Optimize Dividends With KVLE
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AAPL
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https://www.nasdaq.com/articles/capture-market-gains-and-optimize-dividends-with-kvle
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nan
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nan
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The dual boost of May’s strong job's report and the debt ceiling bill passage in the Senate sent markets ripping upward Friday. The KFA Value Line Dynamic Core Equity Index ETF (KVLE) is a dividend strategy fund that benefits during periods of market gains while seeking to limit losses during market declines.
The S&P 500 rose 1.4% in midday trading and the Nasdaq Composite reached a level not seen since April 2022, reported CNBC. Meanwhile, the VIX Volatility Index dropped to its lowest since November 2021 at 14.82 on Friday.
May’s job’s report revealed 339,000 new jobs compared to expectations of 190,000. It’s the 29th consecutive month of job growth, but May’s report also came with data that could lend credence to a Fed June interest rate pause.
The average hourly earnings made smaller year-over-year gains than expected, and unemployment came in higher than forecast.
“There was a little bit of a flavor for everyone today,” Charlie Ripley, senior investment strategist at Allianz Investment Management, told CNBC. “It’s kind of providing that mixed picture for the Fed.”
KVLE Benefits on Market Gains, Optimizes Dividends
Advisors looking to increase dividend strategy allocations should consider the tactical KFA Value Line Dynamic Core Equity Index ETF (KVLE).
The fund is a core equity portfolio of securities that are tilted to favor dividend yield. It seeks to increase yield while avoiding investing solely in high-yield sectors and stocks.
See also: "KVLE's Dividend Strategy Produces Better Yields Than S&P 500"
KVLE is benchmarked to the 3D/L Value Line Dynamic Core Equity Index. The fund utilizes optimization technology to emphasize securities with solid dividend yields with the highest rankings in Value Line Safety and Timeliness.
The fund uses a smart beta strategy in seeking more cost-efficient alpha. It also employs a risk management strategy that seeks to limit the effects of major market declines and capture positive returns.
The two largest holdings by weight within KVLE are Apple (AAPL) at 7.88% and Microsoft (MSFT) at 7.55% as of 06/01/2023.
KVLE carries an expense ratio of 0.55%.
For more news, information, and analysis, visit the China Insights Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The two largest holdings by weight within KVLE are Apple (AAPL) at 7.88% and Microsoft (MSFT) at 7.55% as of 06/01/2023. The dual boost of May’s strong job's report and the debt ceiling bill passage in the Senate sent markets ripping upward Friday. It’s the 29th consecutive month of job growth, but May’s report also came with data that could lend credence to a Fed June interest rate pause.
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The two largest holdings by weight within KVLE are Apple (AAPL) at 7.88% and Microsoft (MSFT) at 7.55% as of 06/01/2023. The KFA Value Line Dynamic Core Equity Index ETF (KVLE) is a dividend strategy fund that benefits during periods of market gains while seeking to limit losses during market declines. “It’s kind of providing that mixed picture for the Fed.” KVLE Benefits on Market Gains, Optimizes Dividends Advisors looking to increase dividend strategy allocations should consider the tactical KFA Value Line Dynamic Core Equity Index ETF (KVLE).
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The two largest holdings by weight within KVLE are Apple (AAPL) at 7.88% and Microsoft (MSFT) at 7.55% as of 06/01/2023. The KFA Value Line Dynamic Core Equity Index ETF (KVLE) is a dividend strategy fund that benefits during periods of market gains while seeking to limit losses during market declines. “It’s kind of providing that mixed picture for the Fed.” KVLE Benefits on Market Gains, Optimizes Dividends Advisors looking to increase dividend strategy allocations should consider the tactical KFA Value Line Dynamic Core Equity Index ETF (KVLE).
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The two largest holdings by weight within KVLE are Apple (AAPL) at 7.88% and Microsoft (MSFT) at 7.55% as of 06/01/2023. The KFA Value Line Dynamic Core Equity Index ETF (KVLE) is a dividend strategy fund that benefits during periods of market gains while seeking to limit losses during market declines. May’s job’s report revealed 339,000 new jobs compared to expectations of 190,000.
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15540.0
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2023-06-02 00:00:00 UTC
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Noteworthy ETF Inflows: QQQM, MSFT, AAPL, NVDA
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AAPL
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https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-qqqm-msft-aapl-nvda
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $353.3 million dollar inflow -- that's a 3.3% increase week over week in outstanding units (from 72,900,000 to 75,340,000). Among the largest underlying components of QQQM, in trading today Microsoft Corporation (Symbol: MSFT) is up about 0.2%, Apple Inc (Symbol: AAPL) is off about 0.2%, and NVIDIA Corp (Symbol: NVDA) is lower by about 0.3%. For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average:
Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $146.36 as the 52 week high point — that compares with a last trade of $145.29. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Insider Buying
KNX Videos
RMBS Options Chain
The views and 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 QQQM, in trading today Microsoft Corporation (Symbol: MSFT) is up about 0.2%, Apple Inc (Symbol: AAPL) is off about 0.2%, and NVIDIA Corp (Symbol: NVDA) is lower by about 0.3%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of QQQM, in trading today Microsoft Corporation (Symbol: MSFT) is up about 0.2%, Apple Inc (Symbol: AAPL) is off about 0.2%, and NVIDIA Corp (Symbol: NVDA) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $353.3 million dollar inflow -- that's a 3.3% increase week over week in outstanding units (from 72,900,000 to 75,340,000). For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $146.36 as the 52 week high point — that compares with a last trade of $145.29.
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Among the largest underlying components of QQQM, in trading today Microsoft Corporation (Symbol: MSFT) is up about 0.2%, Apple Inc (Symbol: AAPL) is off about 0.2%, and NVIDIA Corp (Symbol: NVDA) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $353.3 million dollar inflow -- that's a 3.3% increase week over week in outstanding units (from 72,900,000 to 75,340,000). For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $146.36 as the 52 week high point — that compares with a last trade of $145.29.
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Among the largest underlying components of QQQM, in trading today Microsoft Corporation (Symbol: MSFT) is up about 0.2%, Apple Inc (Symbol: AAPL) is off about 0.2%, and NVIDIA Corp (Symbol: NVDA) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $353.3 million dollar inflow -- that's a 3.3% increase week over week in outstanding units (from 72,900,000 to 75,340,000). For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $146.36 as the 52 week high point — that compares with a last trade of $145.29.
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15541.0
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2023-06-02 00:00:00 UTC
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Dow Movers: VZ, NKE
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-vz-nke
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nan
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nan
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In early trading on Friday, shares of Nike topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.5%. Year to date, Nike has lost about 8.6% of its value.
And the worst performing Dow component thus far on the day is Verizon Communications, trading down 2.4%. Verizon Communications is lower by about 11.5% looking at the year to date performance.
Two other components making moves today are Apple, trading down 0.0%, and Caterpillar, trading up 3.4% on the day.
VIDEO: Dow Movers: VZ, NKE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of Nike topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.5%. And the worst performing Dow component thus far on the day is Verizon Communications, trading down 2.4%. Verizon Communications is lower by about 11.5% looking at the year to date performance.
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In early trading on Friday, shares of Nike topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.5%. Year to date, Nike has lost about 8.6% of its value. And the worst performing Dow component thus far on the day is Verizon Communications, trading down 2.4%.
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In early trading on Friday, shares of Nike topped the list of the day's best performing Dow Jones Industrial Average components, trading up 3.5%. And the worst performing Dow component thus far on the day is Verizon Communications, trading down 2.4%. Two other components making moves today are Apple, trading down 0.0%, and Caterpillar, trading up 3.4% on the day.
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And the worst performing Dow component thus far on the day is Verizon Communications, trading down 2.4%. Verizon Communications is lower by about 11.5% looking at the year to date performance. VIDEO: Dow Movers: VZ, NKE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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15542.0
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2023-06-02 00:00:00 UTC
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Majority of EU countries against network fee levy on Big Tech, sources say
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AAPL
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https://www.nasdaq.com/articles/majority-of-eu-countries-against-network-fee-levy-on-big-tech-sources-say
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nan
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nan
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By Foo Yun Chee
BRUSSELS, June 3 (Reuters) - A majority of EU countries have rejected a push by Europe's big telecoms operators to force Big Tech to help fund the rollout of 5G and broadband in the region, people familiar with the matter said.
Telecoms ministers from 18 countries either rejected or criticised the proposed network fee levy on tech firms at a meeting with EU industry chief Thierry Breton in Luxembourg on Thursday, the sources said.
That echoed comments made last month by EU telecoms regulators' group BEREC.
Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.M want Big Tech to shoulder part of the network costs and have found a receptive ear in the European Commission's industry chief Breton, a former chief executive of France Telecom and French IT consulting firm Atos.
Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O have rejected the idea of a levy, saying that they invest in the digital ecosystem.
The ministers cited the lack of an analysis on the effects of a network levy, the absence of an investment gap and the risk of Big Tech passing on the extra cost to consumers in the form of higher prices, the people said.
They also warned about the potential violation of EU net neutrality rules which require all users to be treated equally, barriers to innovation, and a lower quality of products.
The critics included Austria, Belgium, the Czech Republic, Denmark, Finland, Germany, Ireland, Lithuania, Malta and the Netherlands, the people said.
Cyprus, France, Greece, Hungary and Italy backed the idea while Poland, Portugal and Romania either took a neutral stance or had not adopted a position, they said.
Breton is expected to issue a report by the end of June with a summary of feedback provided by Big Tech, telecoms providers and others which will indicate his next steps.
Any legislative proposal needs to be negotiated with EU countries and EU lawmakers before it can become law.
(Reporting by Foo Yun Chee, Editing by Rosalba O'Brien)
((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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Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O have rejected the idea of a levy, saying that they invest in the digital ecosystem. Telecoms ministers from 18 countries either rejected or criticised the proposed network fee levy on tech firms at a meeting with EU industry chief Thierry Breton in Luxembourg on Thursday, the sources said. The ministers cited the lack of an analysis on the effects of a network levy, the absence of an investment gap and the risk of Big Tech passing on the extra cost to consumers in the form of higher prices, the people said.
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Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O have rejected the idea of a levy, saying that they invest in the digital ecosystem. By Foo Yun Chee BRUSSELS, June 3 (Reuters) - A majority of EU countries have rejected a push by Europe's big telecoms operators to force Big Tech to help fund the rollout of 5G and broadband in the region, people familiar with the matter said. Telecoms ministers from 18 countries either rejected or criticised the proposed network fee levy on tech firms at a meeting with EU industry chief Thierry Breton in Luxembourg on Thursday, the sources said.
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Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O have rejected the idea of a levy, saying that they invest in the digital ecosystem. By Foo Yun Chee BRUSSELS, June 3 (Reuters) - A majority of EU countries have rejected a push by Europe's big telecoms operators to force Big Tech to help fund the rollout of 5G and broadband in the region, people familiar with the matter said. Telecoms ministers from 18 countries either rejected or criticised the proposed network fee levy on tech firms at a meeting with EU industry chief Thierry Breton in Luxembourg on Thursday, the sources said.
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Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O have rejected the idea of a levy, saying that they invest in the digital ecosystem. By Foo Yun Chee BRUSSELS, June 3 (Reuters) - A majority of EU countries have rejected a push by Europe's big telecoms operators to force Big Tech to help fund the rollout of 5G and broadband in the region, people familiar with the matter said. Telecoms ministers from 18 countries either rejected or criticised the proposed network fee levy on tech firms at a meeting with EU industry chief Thierry Breton in Luxembourg on Thursday, the sources said.
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15543.0
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2023-06-02 00:00:00 UTC
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Wall St Week Ahead-Surging US megacap stocks leave some wondering when to cash out
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-surging-us-megacap-stocks-leave-some-wondering-when-to-cash-out
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By Lewis Krauskopf
NEW YORK, June 2 (Reuters) - As the U.S. stock market continues its climb, investors holding shares of the massive tech and growth companies leading the charge are debating whether to cash out or stay on for the ride.
A record $8.5 billion flowed into tech stocks in the latest week, data from BofA Global Research showed, as investors piled into a rally that has seen the tech-heavy Nasdaq 100 .NDX gain 33% in 2023. The benchmark S&P 500 .SPX has risen 11.5% this year and stands at a 10-month high.
Yet others see reasons for caution. Among them is the narrowness of the market’s rally: the five largest stocks in the S&P 500 have a combined weighting of 24.7% in the index, a record high dating back to 1972, Ned Davis Research said in a recent report. The heavy weightings could mean more significant fallout for broader markets should those names falter.
"We had this big run and the essential question is, do you believe it’s going to continue or do you believe things are going to return to the mean?" said Peter Tuz, president of Chase Investment Counsel.
Excitement over advances in artificial intelligence is a key factor fueling gains in megacap stocks. Big movers include shares of Nvidia NVDA.O, which are up about 170% this year, while Apple AAPL.O and Microsoft MSFT.O, the top two U.S. companies by market value, have both climbed nearly 40%.
Jay Hatfield, CEO of hedge fund InfraCap, believes excitement over AI will keep boosting megacap stocks. He is overweight megacaps, including Nvidia, Microsoft and Google-parent Alphabet GOOGL.O.
“We 100% believe in the AI boom,” Hatfield said. “I would be shocked if by the end of the year these stocks are not significantly higher."
Data on Friday showed U.S. job growth accelerating in May, even as a jump in the unemployment rate suggested labor market conditions were easing, boosting investors’ appetite for stocks amid hopes that the Federal Reserve will be able to bring down inflation without badly hurting growth. The S&P 500 rose 1.45%.
Strong momentum can also continue to propel stocks higher.
Michael Purves, CEO of Tallbacken Capital Advisors, wrote earlier this week that technical analysis showed the Nasdaq 100 is overbought, a condition that can make an asset more vulnerable to sharp declines. However, the index managed to rally another 10% over three months when it reached the same condition two years ago, according to Purves.
The recent surge in Nvidia showed how a stock can keep climbing even after posting hefty gains. Shares were already up 109% heading into its May 24 earnings report, but rose another 30% in the past week after the chipmaker's surprisingly upbeat sales forecast.
Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management, said shares of Nvidia, which now trade at 44 times forward earnings estimates, according to Refinitiv Datastream, have become "a little rich."
Others are growing wary, citing factors such as rising valuations and signs that the rest of the market is languishing while a small cluster of stocks soars.
The performance of just seven stocks, Apple, Microsoft, Alphabet, Amazon AMZN.O, Nvdia, Meta Platforms META.O and Tesla TSLA.O, accounted for all of the S&P 500’s 2023 total return through May, according to S&P Dow Jones Indices.
At the same time, only 20.3% of S&P 500 stocks have outperformed the index on a rolling three-month basis, a record low dating back five decades, according to Ned Davis. Levels below 30% have preceded weaker performance for the broader market, with the S&P 500 rising 4.4% over the next year versus an average of 8.2% for all one year periods, the firm’s research showed.
David Kotok, chief investment officer at Cumberland Advisors, in recent days pared back holdings of the iShares semiconductor ETF SOXX.O following the latest spike in shares of Nvidia.
Kotok views narrowing breadth as an ominous sign for the broader stock market, saying that equities also look less favorable in certain asset valuation metrics.
In one commonly used valuation metric, the S&P 500 is trading at 18.5 times forward earnings estimates compared to its historic average of 15.6 times, according to Refinitiv Datastream.
"You can have (market) concentration and it can go on for a while," he said. But, he said, “for me, the narrowing is a warning.”
Megacap stocks soaring https://tmsnrt.rs/3oRzTAG
Megacap stocks share of S&P 500 https://tmsnrt.rs/43Fefyt
Megacaps stocks soaring https://tmsnrt.rs/45GbO0v
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili, Nick Zieminski and Diane Craft)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big movers include shares of Nvidia NVDA.O, which are up about 170% this year, while Apple AAPL.O and Microsoft MSFT.O, the top two U.S. companies by market value, have both climbed nearly 40%. By Lewis Krauskopf NEW YORK, June 2 (Reuters) - As the U.S. stock market continues its climb, investors holding shares of the massive tech and growth companies leading the charge are debating whether to cash out or stay on for the ride. Michael Purves, CEO of Tallbacken Capital Advisors, wrote earlier this week that technical analysis showed the Nasdaq 100 is overbought, a condition that can make an asset more vulnerable to sharp declines.
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Big movers include shares of Nvidia NVDA.O, which are up about 170% this year, while Apple AAPL.O and Microsoft MSFT.O, the top two U.S. companies by market value, have both climbed nearly 40%. By Lewis Krauskopf NEW YORK, June 2 (Reuters) - As the U.S. stock market continues its climb, investors holding shares of the massive tech and growth companies leading the charge are debating whether to cash out or stay on for the ride. Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management, said shares of Nvidia, which now trade at 44 times forward earnings estimates, according to Refinitiv Datastream, have become "a little rich."
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Big movers include shares of Nvidia NVDA.O, which are up about 170% this year, while Apple AAPL.O and Microsoft MSFT.O, the top two U.S. companies by market value, have both climbed nearly 40%. By Lewis Krauskopf NEW YORK, June 2 (Reuters) - As the U.S. stock market continues its climb, investors holding shares of the massive tech and growth companies leading the charge are debating whether to cash out or stay on for the ride. Among them is the narrowness of the market’s rally: the five largest stocks in the S&P 500 have a combined weighting of 24.7% in the index, a record high dating back to 1972, Ned Davis Research said in a recent report.
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Big movers include shares of Nvidia NVDA.O, which are up about 170% this year, while Apple AAPL.O and Microsoft MSFT.O, the top two U.S. companies by market value, have both climbed nearly 40%. Among them is the narrowness of the market’s rally: the five largest stocks in the S&P 500 have a combined weighting of 24.7% in the index, a record high dating back to 1972, Ned Davis Research said in a recent report. Jay Hatfield, CEO of hedge fund InfraCap, believes excitement over AI will keep boosting megacap stocks.
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15544.0
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2023-06-02 00:00:00 UTC
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Technology Sector Update for 06/02/2023: GOOG, SIDU, GWRE, AAPL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-06-02-2023%3A-goog-sidu-gwre-aapl
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nan
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nan
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Tech stocks were mixed in late afternoon trading on Friday, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the Philadelphia Semiconductor index falling 0.3%.
In company news, Alphabet's (GOOGL) YouTube on Friday stopped removing content claiming that widespread fraud or glitches took place during the 2020 and other past US presidential elections. Alphabet shares rose 0.9%.
Sidus Space (SIDU) said it has received an additional hardware manufacturing subcontract to back NASA's Artemis Program and Space Launch System Manned Vehicle. Its shares dropped 2.8%, erasing earlier gains.
Guidewire Software (GWRE) shares slumped 14% after the company delivered lower-than-expected revenue in fiscal Q3 and cut its revenue guidance for fiscal 2023.
Apple's (AAPL) new RealityPro virtual and augmented reality headset will be the main focus of the tech giant's Worldwide Developers Conference next week and may become a stock catalyst, Morgan Stanley said in a note to clients. Apple shares were up 0.5%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (AAPL) new RealityPro virtual and augmented reality headset will be the main focus of the tech giant's Worldwide Developers Conference next week and may become a stock catalyst, Morgan Stanley said in a note to clients. Tech stocks were mixed in late afternoon trading on Friday, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the Philadelphia Semiconductor index falling 0.3%. In company news, Alphabet's (GOOGL) YouTube on Friday stopped removing content claiming that widespread fraud or glitches took place during the 2020 and other past US presidential elections.
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Apple's (AAPL) new RealityPro virtual and augmented reality headset will be the main focus of the tech giant's Worldwide Developers Conference next week and may become a stock catalyst, Morgan Stanley said in a note to clients. Tech stocks were mixed in late afternoon trading on Friday, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the Philadelphia Semiconductor index falling 0.3%. Alphabet shares rose 0.9%.
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Apple's (AAPL) new RealityPro virtual and augmented reality headset will be the main focus of the tech giant's Worldwide Developers Conference next week and may become a stock catalyst, Morgan Stanley said in a note to clients. In company news, Alphabet's (GOOGL) YouTube on Friday stopped removing content claiming that widespread fraud or glitches took place during the 2020 and other past US presidential elections. Guidewire Software (GWRE) shares slumped 14% after the company delivered lower-than-expected revenue in fiscal Q3 and cut its revenue guidance for fiscal 2023.
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Apple's (AAPL) new RealityPro virtual and augmented reality headset will be the main focus of the tech giant's Worldwide Developers Conference next week and may become a stock catalyst, Morgan Stanley said in a note to clients. Tech stocks were mixed in late afternoon trading on Friday, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the Philadelphia Semiconductor index falling 0.3%. Alphabet shares rose 0.9%.
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15545.0
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2023-06-02 00:00:00 UTC
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Jefferies Maintains Apple (AAPL) Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/jefferies-maintains-apple-aapl-buy-recommendation
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nan
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Fintel reports that on June 2, 2023, Jefferies maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 2.10% 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 2.10% from its latest reported closing price of 180.09.
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 an increase of 1 owner(s) or 0.02% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.78%. Total shares owned by institutions decreased in the last three months by 2.47% to 9,913,505K shares.
The put/call ratio of AAPL is 0.88, 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 2, 2023, Jefferies maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on June 2, 2023, Jefferies maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on June 2, 2023, Jefferies maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on June 2, 2023, Jefferies maintained coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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15546.0
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2023-06-02 00:00:00 UTC
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Apple (AAPL) Gains But Lags Market: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-gains-but-lags-market%3A-what-you-should-know-6
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $180.95, moving +0.48% from the previous trading session. This change lagged the S&P 500's 1.45% gain on the day. At the same time, the Dow added 2.12%, and the tech-heavy Nasdaq gained 5.41%.
Coming into today, shares of the maker of iPhones, iPads and other products had gained 8.63% in the past month. In that same time, the Computer and Technology sector gained 10.26%, while the S&P 500 gained 1.53%.
Apple will be looking to display strength as it nears its next earnings release. In that report, analysts expect Apple to post earnings of $1.18 per share. This would mark a year-over-year decline of 1.67%. Meanwhile, our latest consensus estimate is calling for revenue of $81.11 billion, down 2.23% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.99 per share and revenue of $384.49 billion, which would represent changes of -1.96% and -2.5%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. Apple is currently a Zacks Rank #3 (Hold).
Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 30.05. For comparison, its industry has an average Forward P/E of 8.83, which means Apple is trading at a premium to the group.
Also, we should mention that AAPL has a PEG ratio of 2.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AAPL's industry had an average PEG ratio of 2.4 as of yesterday's close.
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 gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) closed the most recent trading day at $180.95, moving +0.48% from the previous trading session. Also, we should mention that AAPL has a PEG ratio of 2.4. AAPL's industry had an average PEG ratio of 2.4 as of yesterday's close.
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Apple (AAPL) closed the most recent trading day at $180.95, moving +0.48% from the previous trading session. Also, we should mention that AAPL has a PEG ratio of 2.4. AAPL's industry had an average PEG ratio of 2.4 as of yesterday's close.
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Apple (AAPL) closed the most recent trading day at $180.95, moving +0.48% from the previous trading session. Also, we should mention that AAPL has a PEG ratio of 2.4. AAPL's industry had an average PEG ratio of 2.4 as of yesterday's close.
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Apple (AAPL) closed the most recent trading day at $180.95, moving +0.48% from the previous trading session. Also, we should mention that AAPL has a PEG ratio of 2.4. AAPL's industry had an average PEG ratio of 2.4 as of yesterday's close.
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15547.0
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2023-06-02 00:00:00 UTC
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DELL Q1 Earnings Beat Estimates, Lower PC Sales Hurt Revenues
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AAPL
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https://www.nasdaq.com/articles/dell-q1-earnings-beat-estimates-lower-pc-sales-hurt-revenues
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nan
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nan
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Dell Technologies DELL reported non-GAAP earnings of $1.31 per share in first-quarter fiscal 2024, beating the Zacks Consensus Estimate by 50.57%. The bottom line fell 29% year over year.
Revenues, on a non-GAAP basis, declined 20% year over year to $20.92 billion but beat the consensus mark by 3.82%.
Product revenues fell 27% year over year to $15.03 billion. Services revenues rose 4% year over year to $5.89 billion.
Dell shares were down 3.1% in after-hours trading following the results. Shares have risen 13% year to date compared with the Zacks Computer & Technology sector’s rise of 32.1%.
Dell Technologies Inc. Price, Consensus and EPS Surprise
Dell Technologies Inc. price-consensus-eps-surprise-chart | Dell Technologies Inc. Quote
The company suffered from lower PC shipments in the reported quarter. It witnessed weak PC demand and slowing infrastructure demand, which was partially offset by strong growth in storage.
Dell’s fiscal 2024 view is also not encouraging. The company expects top-line growth to suffer from cautious IT spending, which will likely remain weak due to slowing economic growth, inflation, rising interest rates and currency pressure.
Top-Line Detail
Infrastructure Solutions Group (“ISG”) revenues were down 18% year over year to $7.59 billion. The downside can be attributed to a 24% fall in servers and networking revenues that totaled $3.83 billion. Storage revenues fell 11% year over year to $3.76 billion.
Client Solutions Group (“CSG”) revenues were $11.98 billion, down 23% year over year. Commercial revenues declined 18% year over year to $9.86 billion. Consumer revenues were down 41% to $2.12 billion.
CSG revenues were hurt by lower PC shipments. Per IDC Worldwide Quarterly Personal Computing Device Tracker for the first quarter of 2023, Dell’s market share declined to 16.7% from 17.1% in the year-ago quarter. Per IDC data, Lenovo LNVGY continued to dominate in terms of market share and PC shipment, trailed by HP HPQ and DELL.
Lenovo and Apple AAPL lost market share, while HP gained market share that came to 21.1% from 19.7% in the year-ago quarter. Lenovo’s market share came down to 22.4% from 22.8% in the year-ago quarter. Apple registered its market share at 7.2% compared with the year-ago quarter’s 8.6%.
In terms of PC shipments, Lenovo, HP, Apple and Dell were down 30.3%, 24.2%, 40.5%, and 31%, respectively.
Operating Details
Dell’s fiscal first-quarter non-GAAP gross profit fell 13% year over year to $5.16 billion. The gross margin expanded 200 basis points (bps) year over year to 24.7%.
SG&A expenses declined 8% year over year to $3.26 billion. Research and development expenses were up 1% year over year to $688 million in the reported quarter.
Non-GAAP operating expenses declined 6% year over year to $3.57 billion. Operating expenses, as a percentage of revenues, increased 260 bps on a year-over-year basis to 17.1%.
The non-GAAP operating income was $1.6 billion, down 25% year over year. The operating margin contracted 60 bps year over year to 7.6%.
The ISG segment’s operating income decreased 32% year over year to $740 million. Meanwhile, the CSG segment’s operating income was $892 million, down 20% year over year.
Balance Sheet
As of May 5, 2023, DELL had $9.2 billion in cash and investments. Debt was $28.43 billion as of May 5, 2023.
This Zacks Rank #3 (Hold) company returned $527 million to its shareholders through a combination of share repurchases and dividends.
Guidance
For the second quarter of fiscal 2024, Dell expects revenues between $20.2 billion and $21.2 billion, down 21.6% year over year at the mid-point, with ISG down in the low single digits sequentially. The company expects roughly 200 bps negative impact of unfavourable forex on revenues.
Dell expects earnings in the range of $1 to $1.20 per share, down 34.5% year over year at the midpoint for the fiscal second quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY) : 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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Lenovo and Apple AAPL lost market share, while HP gained market share that came to 21.1% from 19.7% in the year-ago quarter. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Per IDC data, Lenovo LNVGY continued to dominate in terms of market share and PC shipment, trailed by HP HPQ and DELL.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Lenovo and Apple AAPL lost market share, while HP gained market share that came to 21.1% from 19.7% in the year-ago quarter. Dell Technologies DELL reported non-GAAP earnings of $1.31 per share in first-quarter fiscal 2024, beating the Zacks Consensus Estimate by 50.57%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Lenovo and Apple AAPL lost market share, while HP gained market share that came to 21.1% from 19.7% in the year-ago quarter. Guidance For the second quarter of fiscal 2024, Dell expects revenues between $20.2 billion and $21.2 billion, down 21.6% year over year at the mid-point, with ISG down in the low single digits sequentially.
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Lenovo and Apple AAPL lost market share, while HP gained market share that came to 21.1% from 19.7% in the year-ago quarter. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Dell Technologies DELL reported non-GAAP earnings of $1.31 per share in first-quarter fiscal 2024, beating the Zacks Consensus Estimate by 50.57%.
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15548.0
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2023-06-02 00:00:00 UTC
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Morgan Stanley Maintains Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/morgan-stanley-maintains-apple-aapl-overweight-recommendation-0
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nan
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nan
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Fintel reports that on June 2, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 2.10% 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 2.10% from its latest reported closing price of 180.09.
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 an increase of 1 owner(s) or 0.02% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.78%. Total shares owned by institutions decreased in the last three months by 2.47% to 9,913,505K shares.
The put/call ratio of AAPL is 0.88, 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 2, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on June 2, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on June 2, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on June 2, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.79%, an increase of 19.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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15549.0
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2023-06-02 00:00:00 UTC
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COLUMN-Top-heavy and ultra-narrow - Wall St needs to bulk out: McGeever
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AAPL
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https://www.nasdaq.com/articles/column-top-heavy-and-ultra-narrow-wall-st-needs-to-bulk-out%3A-mcgeever
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By Jamie McGeever
ORLANDO, Florida, June 2 (Reuters) - For equity investors, bigger is not always better, especially when the entire market's returns rely so much on so few mega stocks.
That's exactly how the S&P 500 looks today, and it doesn't bode well for returns tomorrow - either for the market cap monsters themselves or the broader index.
Periods of narrow market leadership typically lead to slower growth for the overall index in the year after, while top 10 stocks' returns typically fall off a cliff in the years after they join that exclusive club.
It remains to be seen whether that plays out once the artificial intelligence (AI) frenzy currently dominating markets starts to fade. Perhaps it will be different, and AI drives a productivity boom that boosts earnings across the board.
Right now though, the market has never been more top-heavy and the share of market constituents outperforming the broader index has never been lower.
The NYSE FANG+TM index of mega tech stocks is up 65%, compared with the S&P 500's 10%; just seven tech stocks have driven all of the S&P 500's positive returns this year, according to Barclays; and the combined weight of five tech stocks - Apple, Microsoft, Alphabet, Amazon and Nvidia - is over a quarter of the index.
That's a record share for five stocks.
Few would argue that this is sustainable. But the market may be more vulnerable than even these numbers suggest, research shows.
According to Ed Clissold at Ned Davis Research, the percentage of stocks outperforming the S&P 500 this year is just 24.5%. If that holds to Dec. 31 it will be the lowest in at least 50 years.
And it is shrinking. The percentage of S&P 500 stocks outperforming the index on a rolling three-month basis is just 20.3%, a record low.
Clissold says that the S&P 500's one-year gain after periods of relative strength by a small group of large caps is an average 1.8%. That's significantly below the average of 8.2% over any given 12-month period in the past 50 years.
"The AI scene could keep this narrow rally going, but ultimately, a year out, the message for the market is – either we have a substantial correction, or a broadening out needs to happen," he said.
TOP 10 CLUB
Debate over the narrowness of the market rally has intensified after chipmaker Nvidia was briefly catapulted into the $1 trillion company club alongside Apple, Microsoft, Amazon and Alphabet.
These five stocks account for over a quarter of the S&P 500's $36.78 trillion market cap, and the top 10 account for a third of the total. A place at the top table reflects a successful past, but portends a far less profitable future.
Analysis from asset management firm Dimensional shows that, between 1927 and 2021, the average annualized outperformance of a company before becoming a top 10 market cap stock was 11.3% in the decade before, 20% in the five years before, and 26.3% in the three years before.
Contrast that with the relative performance against the index in the three, five and 10 years after becoming a top 10 stock: up 0.7%, down 0.6%, and down 1.5%, respectively.
They cite Google as an example - its annualized excess returns five years before it became a top 10 stock dropped by about half in the five years after it joined the list.
"By the time they get to be big, they have no tether to valuation," says Meb Faber, co-founder and chief investment officer of Cambria Investment Management. "Nvidia is a good example."
Nvidia's 12-month forward price/earnings ratio was above 60.0 just before its blowout sales forecast on May 24. The stock is getting cheaper thanks to the surge in predicted revenues, but a PE of 45.0 is still well above the industry average of 18.35, according to Refinitiv.
Investors intuitively know that companies can't grow at the same pace indefinitely and as the small print says, past performance is definitely no guarantee of future results.
But to paraphrase former Citigroup chief Chuck Prince's infamous comments in 2007, as long as the music is playing investors will dance to whatever tune is leading the party.
As Cambria's Faber says, paying high multiples for any security over any period of time is a "terrible idea," adding: "It's only a matter of time before this run reverses or collapses."
(The opinions expressed here are those of the author, a columnist for Reuters.)
S&P 500 - record low share of stocks outperforming https://tmsnrt.rs/3C5iKqt
S&P 500 - share of stocks outperforming index, calendar year https://tmsnrt.rs/42j5Z6b
S&P 500 - top 10 stock performance https://tmsnrt.rs/3MQR8ds
Buying the S&P 500's biggest cap stock https://tmsnrt.rs/3X1XTOx
Mega Tech and the S&P 500 https://tmsnrt.rs/43iGmE2
(By Jamie McGeever; Editing by Andrea Ricci)
((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Jamie McGeever ORLANDO, Florida, June 2 (Reuters) - For equity investors, bigger is not always better, especially when the entire market's returns rely so much on so few mega stocks. Debate over the narrowness of the market rally has intensified after chipmaker Nvidia was briefly catapulted into the $1 trillion company club alongside Apple, Microsoft, Amazon and Alphabet. But to paraphrase former Citigroup chief Chuck Prince's infamous comments in 2007, as long as the music is playing investors will dance to whatever tune is leading the party.
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The NYSE FANG+TM index of mega tech stocks is up 65%, compared with the S&P 500's 10%; just seven tech stocks have driven all of the S&P 500's positive returns this year, according to Barclays; and the combined weight of five tech stocks - Apple, Microsoft, Alphabet, Amazon and Nvidia - is over a quarter of the index. Debate over the narrowness of the market rally has intensified after chipmaker Nvidia was briefly catapulted into the $1 trillion company club alongside Apple, Microsoft, Amazon and Alphabet. S&P 500 - record low share of stocks outperforming https://tmsnrt.rs/3C5iKqt S&P 500 - share of stocks outperforming index, calendar year https://tmsnrt.rs/42j5Z6b S&P 500 - top 10 stock performance https://tmsnrt.rs/3MQR8ds Buying the S&P 500's biggest cap stock https://tmsnrt.rs/3X1XTOx Mega Tech and the S&P 500 https://tmsnrt.rs/43iGmE2 (By Jamie McGeever; Editing by Andrea Ricci) ((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Periods of narrow market leadership typically lead to slower growth for the overall index in the year after, while top 10 stocks' returns typically fall off a cliff in the years after they join that exclusive club. The NYSE FANG+TM index of mega tech stocks is up 65%, compared with the S&P 500's 10%; just seven tech stocks have driven all of the S&P 500's positive returns this year, according to Barclays; and the combined weight of five tech stocks - Apple, Microsoft, Alphabet, Amazon and Nvidia - is over a quarter of the index. S&P 500 - record low share of stocks outperforming https://tmsnrt.rs/3C5iKqt S&P 500 - share of stocks outperforming index, calendar year https://tmsnrt.rs/42j5Z6b S&P 500 - top 10 stock performance https://tmsnrt.rs/3MQR8ds Buying the S&P 500's biggest cap stock https://tmsnrt.rs/3X1XTOx Mega Tech and the S&P 500 https://tmsnrt.rs/43iGmE2 (By Jamie McGeever; Editing by Andrea Ricci) ((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's significantly below the average of 8.2% over any given 12-month period in the past 50 years. Analysis from asset management firm Dimensional shows that, between 1927 and 2021, the average annualized outperformance of a company before becoming a top 10 market cap stock was 11.3% in the decade before, 20% in the five years before, and 26.3% in the three years before. S&P 500 - record low share of stocks outperforming https://tmsnrt.rs/3C5iKqt S&P 500 - share of stocks outperforming index, calendar year https://tmsnrt.rs/42j5Z6b S&P 500 - top 10 stock performance https://tmsnrt.rs/3MQR8ds Buying the S&P 500's biggest cap stock https://tmsnrt.rs/3X1XTOx Mega Tech and the S&P 500 https://tmsnrt.rs/43iGmE2 (By Jamie McGeever; Editing by Andrea Ricci) ((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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15550.0
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2023-06-02 00:00:00 UTC
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SPY, FBL: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/spy-fbl%3A-big-etf-inflows
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 9,150,000 units, or a 1.0% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.2%, and Microsoft is higher by about 0.2%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the FBL ETF, which added 20,000 units, for a 40.0% increase in outstanding units.
VIDEO: SPY, FBL: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is off about 0.2%, and Microsoft is higher by about 0.2%. And on a percentage change basis, the ETF with the biggest increase in inflows was the FBL ETF, which added 20,000 units, for a 40.0% increase in outstanding units. VIDEO: SPY, FBL: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 9,150,000 units, or a 1.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the FBL ETF, which added 20,000 units, for a 40.0% increase in outstanding units. VIDEO: SPY, FBL: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 9,150,000 units, or a 1.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the FBL ETF, which added 20,000 units, for a 40.0% increase in outstanding units. VIDEO: SPY, FBL: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 9,150,000 units, or a 1.0% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.2%, and Microsoft is higher by about 0.2%. And on a percentage change basis, the ETF with the biggest increase in inflows was the FBL ETF, which added 20,000 units, for a 40.0% increase in outstanding units.
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15551.0
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2023-06-02 00:00:00 UTC
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Technology Sector Update for 06/02/2023: SIDU, GWRE, AAPL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-06-02-2023%3A-sidu-gwre-aapl
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Tech stocks were mixed on Friday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the Philadelphia Semiconductor index falling 0.2%.
In company news, Sidus Space (SIDU) said it has received an additional hardware manufacturing subcontract to back NASA's Artemis Program and Space Launch System Manned Vehicle. Its shares dropped 2.3%, erasing earlier gains.
Guidewire Software (GWRE) shares slumped 14% after the company delivered lower-than-expected revenue in fiscal Q3 and cut its revenue guidance for fiscal 2023.
Apple's (AAPL) new RealityPro virtual and augmented reality headset will be the main focus of the tech giant's Worldwide Developers Conference next week and may become a stock catalyst, Morgan Stanley said in a note to clients. Apple shares were up 0.2%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (AAPL) new RealityPro virtual and augmented reality headset will be the main focus of the tech giant's Worldwide Developers Conference next week and may become a stock catalyst, Morgan Stanley said in a note to clients. Tech stocks were mixed on Friday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the Philadelphia Semiconductor index falling 0.2%. In company news, Sidus Space (SIDU) said it has received an additional hardware manufacturing subcontract to back NASA's Artemis Program and Space Launch System Manned Vehicle.
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Apple's (AAPL) new RealityPro virtual and augmented reality headset will be the main focus of the tech giant's Worldwide Developers Conference next week and may become a stock catalyst, Morgan Stanley said in a note to clients. Tech stocks were mixed on Friday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the Philadelphia Semiconductor index falling 0.2%. Guidewire Software (GWRE) shares slumped 14% after the company delivered lower-than-expected revenue in fiscal Q3 and cut its revenue guidance for fiscal 2023.
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Apple's (AAPL) new RealityPro virtual and augmented reality headset will be the main focus of the tech giant's Worldwide Developers Conference next week and may become a stock catalyst, Morgan Stanley said in a note to clients. In company news, Sidus Space (SIDU) said it has received an additional hardware manufacturing subcontract to back NASA's Artemis Program and Space Launch System Manned Vehicle. Guidewire Software (GWRE) shares slumped 14% after the company delivered lower-than-expected revenue in fiscal Q3 and cut its revenue guidance for fiscal 2023.
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Apple's (AAPL) new RealityPro virtual and augmented reality headset will be the main focus of the tech giant's Worldwide Developers Conference next week and may become a stock catalyst, Morgan Stanley said in a note to clients. Tech stocks were mixed on Friday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the Philadelphia Semiconductor index falling 0.2%. In company news, Sidus Space (SIDU) said it has received an additional hardware manufacturing subcontract to back NASA's Artemis Program and Space Launch System Manned Vehicle.
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15552.0
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2023-06-02 00:00:00 UTC
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JPMorgan's Jamie Dimon to visit Taiwan after China trip - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/jpmorgans-jamie-dimon-to-visit-taiwan-after-china-trip-bloomberg-news-0
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Adds details from report in paragraph 2, 3 and background in 5, 6
June 2 (Reuters) - JPMorgan Chase & Co JPM.N Chief Executive Officer Jamie Dimon is planning to visit Taiwan after wrapping up his trip to China, Bloomberg News reported on Friday.
Dimon will arrive in Taiwan on Friday and meet with around 500 local employees and customers, Bloomberg said, citing people familiar with the matter.
Dimon is on his first visit to China since the beginning of the COVID-19 pandemic and Bloomberg said the visit to Taiwan is part of a broader visit across Asia.
JPMorgan did not immediately respond to a Reuters request for comment.
Dimon, who has in recent years boosted JPMorgan's China presence, met with China's Shanghai Communist Party secretary Chen Jining who expects the bank will promote investment in the city.
A number of high-profile executives have visited China recentlu time, including Apple Inc's AAPL.O Tim Cook and Starbucks Corp's SBUX.O Laxman Narasimhan.
LVHM LVMH.PA chief Bernard Arnault is set to visit China this month, Reuters has reported.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Dhanya Ann Thoppil and Savio D'Souza)
((Mrinmay.Dey@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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A number of high-profile executives have visited China recentlu time, including Apple Inc's AAPL.O Tim Cook and Starbucks Corp's SBUX.O Laxman Narasimhan. Dimon will arrive in Taiwan on Friday and meet with around 500 local employees and customers, Bloomberg said, citing people familiar with the matter. LVHM LVMH.PA chief Bernard Arnault is set to visit China this month, Reuters has reported.
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A number of high-profile executives have visited China recentlu time, including Apple Inc's AAPL.O Tim Cook and Starbucks Corp's SBUX.O Laxman Narasimhan. Adds details from report in paragraph 2, 3 and background in 5, 6 June 2 (Reuters) - JPMorgan Chase & Co JPM.N Chief Executive Officer Jamie Dimon is planning to visit Taiwan after wrapping up his trip to China, Bloomberg News reported on Friday. LVHM LVMH.PA chief Bernard Arnault is set to visit China this month, Reuters has reported.
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A number of high-profile executives have visited China recentlu time, including Apple Inc's AAPL.O Tim Cook and Starbucks Corp's SBUX.O Laxman Narasimhan. Adds details from report in paragraph 2, 3 and background in 5, 6 June 2 (Reuters) - JPMorgan Chase & Co JPM.N Chief Executive Officer Jamie Dimon is planning to visit Taiwan after wrapping up his trip to China, Bloomberg News reported on Friday. Dimon is on his first visit to China since the beginning of the COVID-19 pandemic and Bloomberg said the visit to Taiwan is part of a broader visit across Asia.
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A number of high-profile executives have visited China recentlu time, including Apple Inc's AAPL.O Tim Cook and Starbucks Corp's SBUX.O Laxman Narasimhan. Adds details from report in paragraph 2, 3 and background in 5, 6 June 2 (Reuters) - JPMorgan Chase & Co JPM.N Chief Executive Officer Jamie Dimon is planning to visit Taiwan after wrapping up his trip to China, Bloomberg News reported on Friday. Dimon will arrive in Taiwan on Friday and meet with around 500 local employees and customers, Bloomberg said, citing people familiar with the matter.
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15553.0
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2023-06-02 00:00:00 UTC
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PREVIEW-In challenge to Meta, Apple expected to unveil mixed-reality headset
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https://www.nasdaq.com/articles/preview-in-challenge-to-meta-apple-expected-to-unveil-mixed-reality-headset
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By Stephen Nellis
SAN FRANCISCO, June 2 (Reuters) - Apple Inc AAPL.O is widely expected to announce a new headset that will blend video of the outside world with the virtual one at its annual software developer conference next week.
Apple CEO Tim Cook and Meta Platforms Inc's META.O CEO, Mark Zuckerberg, are jockeying to define how consumers will put to use a new generation of technology where real and digital worlds converge.
Zuckerberg has laid out a vision of the "metaverse," a parallel digital universe where people will gather together to work and play, and has had products out for years.
Apple marketing chief Greg Joswiak, by contrast, recently called the metaverse "a word I'll never use." And Apple's device so far is just a rumor. Apple's presentations at its Worldwide Developers Conference start at 10 a.m. PDT (1700 GMT) in California on Monday.
Until now, the company best known for iPhones has limited its augmented-reality efforts to technology that works on existing devices, for instance by enabling retailers' apps to show virtual furniture in a customer's living room.
"Meta and Apple are competing with each other. The difference is that Meta is doing it publicly, while Apple is doing it privately," said Anshel Sag, principal analyst at Moor Insights & Strategy.
Analysts say that the Apple device, which Bloomberg has reported could cost near $3,000 and look like a pair of ski goggles, is a place holder of sorts. The Cupertino, California, company's grand vision remains to produce a pair of transparent glasses that overlay digital information on the real world and can be worn all day, every day, those analysts say, but in the face of competition, it decided to launch its own goggles.
Apple declined to comment on its future plans and products.
NO 'KILLER APP' YET
The technology for Apple glasses remains years away, and in the meantime, Apple's rivals such as Sony Group Corp 6758.T and Pico, which is owned by TikTok parent ByteDance, have released mixed-reality headsets that hint at what is possible by blending the real and virtual worlds. Meta Platforms this week announced its Quest 3 headset for $500, after last year's release of the Quest Pro, which sells for $1,000.
Apple has been pushing augmented-reality features for its iPhones and iPads since 2017, but its mainstream uses have remained limited to mostly furniture-shopping apps and a handful of games.
Part of the reason Apple has kept its efforts private, analysts say, is that no one in Silicon Valley is quite sure how people will eventually use mixed- or augmented-reality technology, which industry insiders call "XR" for short. There is no "killer app" for the device yet.
So rather than target a mass-market price point, Apple appears to be readying a premium device that is aimed at showing software developers what is possible so they can come up with compelling apps.
"No one there believes this market is anywhere near ripe in the foreseeable future," said Ben Bajarin, chief executive and principal analyst at Creative Strategies.
The biggest risk for Apple is putting its reputation for polished products on the line while engaging in a costly battle with Meta for dominance over a market that barely exists yet. Last year, Meta had 80% of an overall market for augmented- and virtual-reality headsets that was just 8.8 million units, according to data from research firm IDC. By contrast, IDC estimates that Apple alone sold 226 million iPhones.
While Meta has products on the market, Apple has major advantages in defining the emerging field among software developers, said Jitesh Ubrani, a research manager who tracks the XR market at IDC. Apple has strong relationships with developers who want to access an installed base of 2 billion devices that spans Macs, Apple Watches, iPhones and more.
"They can leverage that ecosystem they've already built to keep users within their walled garden," Ubrani said. "And Apple is in a much better position to give you an experience that works across devices than Meta is."
(Reporting by Stephen Nellis in San Francisco Editing by Peter Henderson and Matthew Lewis)
((Stephen.Nellis@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 Stephen Nellis SAN FRANCISCO, June 2 (Reuters) - Apple Inc AAPL.O is widely expected to announce a new headset that will blend video of the outside world with the virtual one at its annual software developer conference next week. Until now, the company best known for iPhones has limited its augmented-reality efforts to technology that works on existing devices, for instance by enabling retailers' apps to show virtual furniture in a customer's living room. Part of the reason Apple has kept its efforts private, analysts say, is that no one in Silicon Valley is quite sure how people will eventually use mixed- or augmented-reality technology, which industry insiders call "XR" for short.
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By Stephen Nellis SAN FRANCISCO, June 2 (Reuters) - Apple Inc AAPL.O is widely expected to announce a new headset that will blend video of the outside world with the virtual one at its annual software developer conference next week. Until now, the company best known for iPhones has limited its augmented-reality efforts to technology that works on existing devices, for instance by enabling retailers' apps to show virtual furniture in a customer's living room. The technology for Apple glasses remains years away, and in the meantime, Apple's rivals such as Sony Group Corp 6758.T and Pico, which is owned by TikTok parent ByteDance, have released mixed-reality headsets that hint at what is possible by blending the real and virtual worlds.
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By Stephen Nellis SAN FRANCISCO, June 2 (Reuters) - Apple Inc AAPL.O is widely expected to announce a new headset that will blend video of the outside world with the virtual one at its annual software developer conference next week. The technology for Apple glasses remains years away, and in the meantime, Apple's rivals such as Sony Group Corp 6758.T and Pico, which is owned by TikTok parent ByteDance, have released mixed-reality headsets that hint at what is possible by blending the real and virtual worlds. While Meta has products on the market, Apple has major advantages in defining the emerging field among software developers, said Jitesh Ubrani, a research manager who tracks the XR market at IDC.
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By Stephen Nellis SAN FRANCISCO, June 2 (Reuters) - Apple Inc AAPL.O is widely expected to announce a new headset that will blend video of the outside world with the virtual one at its annual software developer conference next week. Until now, the company best known for iPhones has limited its augmented-reality efforts to technology that works on existing devices, for instance by enabling retailers' apps to show virtual furniture in a customer's living room. "No one there believes this market is anywhere near ripe in the foreseeable future," said Ben Bajarin, chief executive and principal analyst at Creative Strategies.
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15554.0
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2023-06-02 00:00:00 UTC
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Warren Buffett's Portfolio Is Concentrated in a Few Stocks -- Should You Follow His Lead?
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-portfolio-is-concentrated-in-a-few-stocks-should-you-follow-his-lead
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nan
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Warren Buffett is well-known for his investing success and timeless wisdom. Buffett's company, Berkshire Hathaway (NYSE: BRK.A), a holding company of many companies, has also experienced much success in the stock market. So much so that investors sometimes choose to mirror Berkshire's portfolio stock-by-stock.
When Berkshire released its holdings as of the end of the first quarter of 2023, one thing that stuck out to me was just how concentrated its portfolio was. With so many investors following Buffett's lead, should you join and concentrate your portfolio? Probably not.
Concentrated portfolios can be a double-edged sword
A concentrated portfolio isn't all bad; its upside is virtually limitless when it works out. Consider the fact Apple represents more than 47% of Berkshire's portfolio.
COMPANY SHARES OWNED PERCENTAGE OF BERKSHIRE'S PORTFOLIO
Apple (NASDAQ: AAPL) 915,560,382 47.1%
Bank of America (NYSE: BAC) 1,032,852,006 8.7%
Coca-Cola (NYSE: KO) 400,000,000 7.3%
American Express (NYSE: AXP) 151,610,700 6.8%
Chevron (NYSE: CVX) 132,407,595 6.2%
Data source: Berkshire Hathaway 13F filing / Data as of March 31, 2023.
Apple has been one of the best-performing stocks on the market in the past decade, and since Berkshire first bought shares in Q1 2016, its stock price is up more than 550%. Berkshire didn't purchase all its current Apple shares at once, but it gives some perspective on how good Apple's success has been for Berkshire.
On the flip side, a concentrated portfolio could easily be the downfall of someone's portfolio. Berkshire's success would look a lot different these past few years if a stock like Snowflake (NYSE: SNOW) -- which has lost over a quarter of its value since Berkshire first invested at the initial public offering -- was 47% of its portfolio.
Aim for diversification if you can
There's a reason diversification is one of the key pillars of investing. By spreading your investments across different companies, sectors, geographies, and assets, you lessen some of the inherent risks of investing. If a couple of companies or sectors underperform, they won't drag down your entire portfolio if the other components are holding up.
You may not see money-doubling short-term gains from a well-diversified stock portfolio, but it's a natural "safety net" you don't have with individual companies. When bear markets, recessions, and other economic setbacks happen, there's no guarantee a particular company will make it through unscathed. It's a much safer bet your diversified portfolio will.
Cover a lot of ground with a handful of investments
There's no set number of stocks you should own for your portfolio to be considered diversified, but the Motley Fool recommends buying 25 or more companies over time. Doing this by investing in individual companies can be a bit tedious because of the time it may take to research different companies and industries.
An easier approach would be using an exchange-traded fund (ETF), which is a fund that contains many stocks within it and trades on a stock exchange like individual companies. Just as you could buy shares of Berkshire on a stock exchange, you can buy shares of an ETF.
A great starting point would be an S&P 500 ETF, which contains about 500 of the largest public U.S. companies by market cap. An S&P 500 ETF contains companies from all major sectors and is as close to a one-stop shop as an investor could need, in my opinion. It's diversified, contains blue chip stocks, and has proven historical results.
If you want to invest outside the U.S. (which I recommend), a good option would be a broad international fund like the Vanguard Total International Stock ETF (NASDAQ: VXUS), which contains companies from developed and emerging markets. Having companies from both markets allows investors to get the best of both worlds: the stability of developed markets and the growth potential of emerging markets.
Your situation is different from someone else's
A large part of investing comes down to your personal risk tolerance, investing style, and goals. There's no doubt Buffett's wisdom is worth listening to, and Berkshire's moves are worth paying attention to, but at the end of the day, they're not you. Your risk tolerance and goals may not align with theirs, and that's perfectly fine.
A highly concentrated portfolio has worked for Berkshire and some other professional investors, but traditional investing wisdom warns against it -- especially if you can't dedicate the same amount of time to research that Buffett and his management team put in before making decisions.
For most investors, a diversified portfolio is a way to lower risk while still giving yourself a chance for promising returns.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple and Vanguard Star Funds-Vanguard Total International Stock ETF. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Snowflake, and Vanguard Star Funds-Vanguard Total International Stock ETF. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) 915,560,382 47.1% Bank of America (NYSE: BAC) 1,032,852,006 8.7% Coca-Cola (NYSE: KO) 400,000,000 7.3% American Express (NYSE: AXP) 151,610,700 6.8% Chevron (NYSE: CVX) 132,407,595 6.2% Data source: Berkshire Hathaway 13F filing / Data as of March 31, 2023. Cover a lot of ground with a handful of investments There's no set number of stocks you should own for your portfolio to be considered diversified, but the Motley Fool recommends buying 25 or more companies over time. A highly concentrated portfolio has worked for Berkshire and some other professional investors, but traditional investing wisdom warns against it -- especially if you can't dedicate the same amount of time to research that Buffett and his management team put in before making decisions.
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Apple (NASDAQ: AAPL) 915,560,382 47.1% Bank of America (NYSE: BAC) 1,032,852,006 8.7% Coca-Cola (NYSE: KO) 400,000,000 7.3% American Express (NYSE: AXP) 151,610,700 6.8% Chevron (NYSE: CVX) 132,407,595 6.2% Data source: Berkshire Hathaway 13F filing / Data as of March 31, 2023. If you want to invest outside the U.S. (which I recommend), a good option would be a broad international fund like the Vanguard Total International Stock ETF (NASDAQ: VXUS), which contains companies from developed and emerging markets. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Snowflake, and Vanguard Star Funds-Vanguard Total International Stock ETF.
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Apple (NASDAQ: AAPL) 915,560,382 47.1% Bank of America (NYSE: BAC) 1,032,852,006 8.7% Coca-Cola (NYSE: KO) 400,000,000 7.3% American Express (NYSE: AXP) 151,610,700 6.8% Chevron (NYSE: CVX) 132,407,595 6.2% Data source: Berkshire Hathaway 13F filing / Data as of March 31, 2023. Buffett's company, Berkshire Hathaway (NYSE: BRK.A), a holding company of many companies, has also experienced much success in the stock market. Berkshire's success would look a lot different these past few years if a stock like Snowflake (NYSE: SNOW) -- which has lost over a quarter of its value since Berkshire first invested at the initial public offering -- was 47% of its portfolio.
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Apple (NASDAQ: AAPL) 915,560,382 47.1% Bank of America (NYSE: BAC) 1,032,852,006 8.7% Coca-Cola (NYSE: KO) 400,000,000 7.3% American Express (NYSE: AXP) 151,610,700 6.8% Chevron (NYSE: CVX) 132,407,595 6.2% Data source: Berkshire Hathaway 13F filing / Data as of March 31, 2023. Buffett's company, Berkshire Hathaway (NYSE: BRK.A), a holding company of many companies, has also experienced much success in the stock market. Cover a lot of ground with a handful of investments There's no set number of stocks you should own for your portfolio to be considered diversified, but the Motley Fool recommends buying 25 or more companies over time.
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2023-06-02 00:00:00 UTC
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Stock Market News for Jun 2, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-jun-2-2023
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nan
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nan
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U.S. stocks ended sharply higher on Thursday, with the S&P 500 and Nasdaq closing at their nine-month highs, as the House passed the crucial debt ceiling bill in a major step to avoid a default. Also, a batch of economic data released on Thursday raised hopes that the Fed may finally put a pause on hiking interest rates. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.5% or 153.30 points to end at 33,061.57 points.
The S&P 500 climbed 1% or 41.19 points to finish at 4,221.02 points, recording its highest close since Aug 19, 2022. Materials, energy, communication services and consumer discretionary stocks were the biggest gainers.
The Materials Select Sector SPDR (XLB) and the Energy Select Sector SPDR (XLE) advanced 1.3% and 1.2%, respectively. The Communication Services Select Sector SPDR (XLC) rose 1.4%, while the Consumer Discretionary Select Sector SPDR (XLY) gained 1.2%. Nine of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 1.3% or 165.70 points to finish at 13,100.98 points, registering its highest close since Aug 16, 2022.
The fear-gauge CBOE Volatility Index (VIX) was down 12.76% to 15.65. Advancers outnumbered decliners on the NYSE by a 3.04-to-1 ratio. On Nasdaq, a 1.99-to-1 ratio favored advancing issues. A total of 11.14 billion shares were traded on Thursday, higher than the last 20-session average of 10.58 billion.
Investors Cheer Vote on Suspending Debt Ceiling
Wall Street witnessed one of its best openings for a month in a long time as stocks rallied after a series of economic data raised hopes that the Fed could finally pause its rate hikes. Investors also were upbeat after the House of Representatives passed the Fiscal Responsibility Act by a vote of 314-117 with bipartisan support on Wednesday night.
This will now put the U.S. government on track to avoid a default by allowing the federal government to raise the legal borrowing capacity before June 5.
It had earlier been feared that the bill would face a snag given that senators from both parties had earlier pushed for amendments which would have forced the bill to be sent back to the House for another vote.
The crucial vote was cheered by investors, which saw a renewed rally in big tech stocks, helping the S&P 500 and Nasdaq record their best close since Aug 19 and Aug 16, respectively. Shares of Apple Inc. (AAPL) gained 1.6%, while Meta Platforms, Inc. (META) jumped 3%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
Investors’ focus will now shift to the Fed’s next policy meeting. A batch of economic data on construction and manufacturing released on Thursday hinted at slowing industrial and factory activity have been slowing in the United States.
This has once again made investors optimistic that the Fed could finally pause hiking its interest rates, which could begin as early as June.
Economic Data
In a batch of economic data released on Thursday, the ISM manufacturing purchasing managers index (PMI) declined to 46.9 in May, down from 47.1 in the prior month. This is the seventh straight month of decline for the manufacturing sector.
Separately, the S&P Global manufacturing PMI came up with a reading of 48.4 in May, declining from 50.2 in April.
However, the Commerce Department said on Thursday that Construction Spending improved in April for the second straight month. Construction spending grew 1.2% in April after increasing 0.3% in March and beating analysts’ expectations of a rise of 0.2%. Year-over-year, construction spending jumped a solid 7.2% in April.
Meanwhile, ADP private payrolls data showed that the U.S. economy unexpectedly added 278,000 jobs in May, surpassing expectations of a rise of 100,000.
Separately, the Labor Department reported that jobless claims totaled 232,000 for the week ending May 27, increasing 2,000 from the previous week’s revised level of 230,000. The four-week moving average was 229,500, a decrease of 2,500 from the previous week’s revised average of 232,000.
Continuing claims came in at 1,795,000, an increase of 6,000 from the previous week’s revised level of 1,789,000. The 4-week moving average was 1,797,500 a decrease of 1,500 from the previous week's revised average of 1,799,000.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
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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Shares of Apple Inc. (AAPL) gained 1.6%, while Meta Platforms, Inc. (META) jumped 3%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks ended sharply higher on Thursday, with the S&P 500 and Nasdaq closing at their nine-month highs, as the House passed the crucial debt ceiling bill in a major step to avoid a default.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) gained 1.6%, while Meta Platforms, Inc. (META) jumped 3%. Also, a batch of economic data released on Thursday raised hopes that the Fed may finally put a pause on hiking interest rates.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) gained 1.6%, while Meta Platforms, Inc. (META) jumped 3%. Investors Cheer Vote on Suspending Debt Ceiling Wall Street witnessed one of its best openings for a month in a long time as stocks rallied after a series of economic data raised hopes that the Fed could finally pause its rate hikes.
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Shares of Apple Inc. (AAPL) gained 1.6%, while Meta Platforms, Inc. (META) jumped 3%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks ended sharply higher on Thursday, with the S&P 500 and Nasdaq closing at their nine-month highs, as the House passed the crucial debt ceiling bill in a major step to avoid a default.
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2023-06-02 00:00:00 UTC
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Opera Stock: The Fast-Rising Star of AI-Driven Web Experiences
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AAPL
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https://www.nasdaq.com/articles/opera-stock%3A-the-fast-rising-star-of-ai-driven-web-experiences
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nan
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nan
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It has become clear that AI mania is the investment theme du jour. The fortunes of semiconductor stocks surged in recent months, fueled by the AI boom and the increasing demand for advanced computing technologies.
Enthusiasm about all things AI has also been boosting non-chip stocks, and some companies are far from household names. Small-cap Opera Ltd. (NASDAQ: OPRA), owned by a Chinese conglomerate headquartered in Norway, is a prime example of a stock racing to the moon on the promise of its AI applications.
Opera develops a web browser with a built-in ad-blocker, free virtual private network, integrated messengers and a crypto wallet, among other features. It is "a complete web experience you can't get from system defaults such as Chrome, Safari and Edge."
Its products include web browsers for Android and iOS systems for use on both mobile and desktop computers; Opera Gaming, which consists of a gaming portal and a video game development engine; personalized Opera News, a content aggregation and recommendation platform; Opera Ads, a targeted online marketing platform and the company's Web3 and e-commerce offerings.
Built-In AI Capabilities
According to the company, "The application of leading AI-powered technologies and advanced data analytics and the recommendation engine built into our browsers and news apps and other products and services give our users a better, faster and more personalized online experience and enable advertisers to target relevant users in a more precise way."
The company may fall outside the Peter Lynch "buy what you know" philosophy for OPRA stock. Opera aims its products at customers in emerging markets rather than developed nations, where Alphabet Inc. (NASDAQ: GOOGL) and Apple Inc. (NASDAQ: AAPL), and to a lesser degree, Microsoft Corp. (NASDAQ: MSFT), have gained traction with pre-installed browsers.
According to web analytics firm Statcounter, Opera was one of the most widely used mobile browsers in emerging markets in 2022.
While investors and the media, quite understandably, have gone bananas over the returns of Nvidia Corp. (NASDAQ: NVDA) and its AI potential, Opera has been an even stronger price performer on a three-month, year-to-date and one-year basis.
Opera, too, has been on a tear due to its AI initiatives.
Launched New AI-Ready Browser
On May 24, the company launched its AI: Aria browser, which integrates generative AI services.
In March, Opera announced its collaboration with ChatGPT to power chatbots and other chat features built into its browsers. It also allows users to generate AI prompts by typing or highlighting words on a Web site.
According to Opera, the newest AI-based service will become increasingly integrated into future browser versions "with the ultimate aim of being natively blended into the browser, helping users perform cross-browser tasks."
Look at the Opera chart to understand this stock's breathtaking rise. The word "parabolic" was used to describe some chart movements back in the dot-com era, and it comes to mind when looking at the Opera chart. In other words, would-be investors need to consider this stock's pros and cons.
On the pro side, there's an ongoing commitment to technological development, and the focus on emerging markets, which tend to be younger and faster-growing than developed markets, can also be a plus.
Double-Digit Revenue Growth
Opera's revenue has been growing at double-digit rates in the past eight quarters, and analysts expect the company's earnings almost to double this year to 49 cents per share. So it's a real business, with real revenue and earnings growth, not some pie-in-the-sky speculative play.
On the other hand, with price gains of 74.12% in the past three months and 162.96% year-to-date, seasoned investors may find themselves humming the old Blood, Sweat and Tears song, "Spinning Wheel" and its famous lyrics, "What goes up must come down."
Anybody who remembers the dot-com frenzy would be wise to view Opera's price action cautiously. The stock is currently trading 43.4% above its 50-day moving average, which is too frothy to consider as a proper entry point.
Analysts Say "Buy," But Use Caution
Opera analyst ratings show a consensus view of "buy," but here's another reason to use caution: While the optimism about the stock appears well-founded, analysts also expect a pullback. The current price target is $11.80, representing a downside of 29.59%.
Opera is a stock worthy of keeping on a watchlist, but as far as buying, it may be worth waiting for a pullback or even a new base that can offer a chance to get shares at a better valuation before the next rally begins.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Opera aims its products at customers in emerging markets rather than developed nations, where Alphabet Inc. (NASDAQ: GOOGL) and Apple Inc. (NASDAQ: AAPL), and to a lesser degree, Microsoft Corp. (NASDAQ: MSFT), have gained traction with pre-installed browsers. Small-cap Opera Ltd. (NASDAQ: OPRA), owned by a Chinese conglomerate headquartered in Norway, is a prime example of a stock racing to the moon on the promise of its AI applications. While investors and the media, quite understandably, have gone bananas over the returns of Nvidia Corp. (NASDAQ: NVDA) and its AI potential, Opera has been an even stronger price performer on a three-month, year-to-date and one-year basis.
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Opera aims its products at customers in emerging markets rather than developed nations, where Alphabet Inc. (NASDAQ: GOOGL) and Apple Inc. (NASDAQ: AAPL), and to a lesser degree, Microsoft Corp. (NASDAQ: MSFT), have gained traction with pre-installed browsers. Its products include web browsers for Android and iOS systems for use on both mobile and desktop computers; Opera Gaming, which consists of a gaming portal and a video game development engine; personalized Opera News, a content aggregation and recommendation platform; Opera Ads, a targeted online marketing platform and the company's Web3 and e-commerce offerings. Built-In AI Capabilities According to the company, "The application of leading AI-powered technologies and advanced data analytics and the recommendation engine built into our browsers and news apps and other products and services give our users a better, faster and more personalized online experience and enable advertisers to target relevant users in a more precise way."
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Opera aims its products at customers in emerging markets rather than developed nations, where Alphabet Inc. (NASDAQ: GOOGL) and Apple Inc. (NASDAQ: AAPL), and to a lesser degree, Microsoft Corp. (NASDAQ: MSFT), have gained traction with pre-installed browsers. Its products include web browsers for Android and iOS systems for use on both mobile and desktop computers; Opera Gaming, which consists of a gaming portal and a video game development engine; personalized Opera News, a content aggregation and recommendation platform; Opera Ads, a targeted online marketing platform and the company's Web3 and e-commerce offerings. Built-In AI Capabilities According to the company, "The application of leading AI-powered technologies and advanced data analytics and the recommendation engine built into our browsers and news apps and other products and services give our users a better, faster and more personalized online experience and enable advertisers to target relevant users in a more precise way."
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Opera aims its products at customers in emerging markets rather than developed nations, where Alphabet Inc. (NASDAQ: GOOGL) and Apple Inc. (NASDAQ: AAPL), and to a lesser degree, Microsoft Corp. (NASDAQ: MSFT), have gained traction with pre-installed browsers. Built-In AI Capabilities According to the company, "The application of leading AI-powered technologies and advanced data analytics and the recommendation engine built into our browsers and news apps and other products and services give our users a better, faster and more personalized online experience and enable advertisers to target relevant users in a more precise way." According to web analytics firm Statcounter, Opera was one of the most widely used mobile browsers in emerging markets in 2022.
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2023-06-02 00:00:00 UTC
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Apple Inc. (AAPL) is Attracting Investor Attention: Here is What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-attracting-investor-attention%3A-here-is-what-you-should-know-5
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nan
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nan
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +8.6%, compared to the Zacks S&P 500 composite's +1.5% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has gained 6.2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Apple is expected to post earnings of $1.18 per share for the current quarter, representing a year-over-year change of -1.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.7%.
For the current fiscal year, the consensus earnings estimate of $5.99 points to a change of -2% from the prior year. Over the last 30 days, this estimate has changed -0.3%.
For the next fiscal year, the consensus earnings estimate of $6.64 indicates a change of +10.8% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $81.11 billion indicates a year-over-year change of -2.2%. For the current and next fiscal years, $384.49 billion and $409.74 billion estimates indicate -2.5% and +6.6% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $94.84 billion in the last reported quarter, representing a year-over-year change of -2.5%. EPS of $1.52 for the same period compares with $1.52 a year ago.
Compared to the Zacks Consensus Estimate of $93.32 billion, the reported revenues represent a surprise of +1.63%. The EPS surprise was +5.56%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the next fiscal year, the consensus earnings estimate of $6.64 indicates a change of +10.8% from what Apple is expected to report a year ago.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up.
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15558.0
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2023-06-02 00:00:00 UTC
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3 Reasons to Buy Apple, and 1 Reason to Sell
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AAPL
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https://www.nasdaq.com/articles/3-reasons-to-buy-apple-and-1-reason-to-sell
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nan
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nan
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Shares of Apple (NASDAQ: AAPL) have produced a remarkable return of 282% over the past five years, easily crushing the S&P 500 by a wide margin. And even in 2023, the stock is up 38%. As of this writing, the business carries a market cap of $2.8 trillion, making it the largest company in the world according to this metric.
Even though Apple is a household name today, some investors may be wondering if the business should be in their portfolios. Let's look at three reasons you might want to buy Apple stock, and one reason to sell.
1. It's endorsed by top investors
A beneficial course of action for retail investors is to look at what some of the top investors own. Managers of large funds have to report their portfolio positions every quarter with the Securities and Exchange Commission in a filing called a 13F. Unsurprisingly, Apple is a top holding among some of the best investors, thanks to its size and outstanding performance.
Warren Buffett, whom many consider to be the best capital allocator ever, is a huge fan of Apple. The conglomerate he runs, Berkshire Hathaway, which has typically shied away from tech companies, started buying the stock in the first quarter of 2016. The exact timing of the purchase isn't known, but since the start of 2016 to May 31 of this year, Apple shares are up an incredible 579%.
As of March 31, 48.3% of Berkshire's portfolio was in Apple. Following in the Oracle of Omaha's footsteps might be a good enough reason to buy the stock, or at least take a closer look at the business.
2. It has a wide moat
Apple's economic moat, or its characteristics that allow the business to maintain its competitive edge over its rivals, comes primarily from its powerful brand. Selling must-have products and services that are easy to use, work well together, and create an ecosystem with other consumers has allowed the company to charge premium prices for what it sells. Its gross margin has averaged a superb 40% over the past five years, indicative of proven pricing power.
And that ecosystem has resulted in switching costs for customers. The iPhone gets all of the attention, as it should. But services like Apple Pay, Apple Music, and Apple TV+, among others, keep users engaged, stuck, and unlikely to switch. Consequently, Apple's competitive advantages are so powerful that it's impossible to see any company disrupting its dominance anytime soon.
3. Its financial prowess
Strong stock returns over extended periods are only possible if the underlying business performs well at a fundamental level, and Apple shines in this regard. That previously mentioned pricing power has resulted in an enterprise that prints cash. In fiscal 2022 (ended Sept. 24), Apple generated free cash flow of $111 billion, something it has no problem doing consistently.
Even after reinvesting in the business, Apple has done a wonderful job of rewarding its shareholders. Over the past five years, the company has reduced its outstanding share count by close to 20%. And management just announced a new buyback authorization of $90 billion. What's more, it just raised its quarterly dividend for the 11th straight year.
As of April 1, the company had $166 billion in cash, equivalents, and marketable securities on its balance sheet. In times of heightened economic uncertainty, its strong financial position gives investors peace of mind.
The reason to sell: Apple is a massive enterprise
Apple has numerous attractive characteristics that every investor dreams about, but the company's sheer size today presents a reason to sell the stock.
Right now, its market cap is $2.8 trillion, as I mentioned earlier. And over the past 12 months, the business reported revenue of $385 billion. Eventually, the law of large numbers presents itself and becomes a headwind. This means Apple's growth prospects are limited.
In the last two fiscal quarters, sales declined year over year. The leadership team expects this to happen again in the current quarter. And over the next five fiscal years, Wall Street consensus analyst estimates call for revenue to rise at a compound annual rate of just 5.4%. For investors focused more on growth, this is a valid reason to sell the stock.
10 stocks we like better than Apple
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Neil Patel has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple (NASDAQ: AAPL) have produced a remarkable return of 282% over the past five years, easily crushing the S&P 500 by a wide margin. Its financial prowess Strong stock returns over extended periods are only possible if the underlying business performs well at a fundamental level, and Apple shines in this regard. And over the next five fiscal years, Wall Street consensus analyst estimates call for revenue to rise at a compound annual rate of just 5.4%.
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Shares of Apple (NASDAQ: AAPL) have produced a remarkable return of 282% over the past five years, easily crushing the S&P 500 by a wide margin. It has a wide moat Apple's economic moat, or its characteristics that allow the business to maintain its competitive edge over its rivals, comes primarily from its powerful brand. The reason to sell: Apple is a massive enterprise Apple has numerous attractive characteristics that every investor dreams about, but the company's sheer size today presents a reason to sell the stock.
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Shares of Apple (NASDAQ: AAPL) have produced a remarkable return of 282% over the past five years, easily crushing the S&P 500 by a wide margin. Let's look at three reasons you might want to buy Apple stock, and one reason to sell. But services like Apple Pay, Apple Music, and Apple TV+, among others, keep users engaged, stuck, and unlikely to switch.
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Shares of Apple (NASDAQ: AAPL) have produced a remarkable return of 282% over the past five years, easily crushing the S&P 500 by a wide margin. In the last two fiscal quarters, sales declined year over year. For investors focused more on growth, this is a valid reason to sell the stock.
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15559.0
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2023-06-02 00:00:00 UTC
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US STOCKS-Futures rise ahead of May jobs data; debt default averted
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-ahead-of-may-jobs-data-debt-default-averted
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nan
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nan
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By Shreyashi Sanyal and Shristi Achar A
June 2 (Reuters) - U.S. stock index futures rose on Friday after the country narrowly averted a debt default, with focus now shifting to payrolls data that will determine whether the Federal Reserve sticks to its interest rate-hiking regime.
The Senate passed a bill late on Thursday to lift the government's $31.4 trillion debt ceiling, avoiding a catastrophic, first-ever default.
Attention now turns to data which will likely show job growth slowed in May, with wages coming off the boil that could allow the Fed to skip an interest rate hike this month for the first time since starting its aggressive policy tightening more than a year ago.
The Labor Department's closely watched employment report, due 0830 ET, is expected to still show a tight labor market. The unemployment rate is forecast climbing to 3.5% from 3.4% in April, while non-farm payrolls is seen increasing by 190,000 jobs last month after rising 253,000 in April.
Fed funds futures trading showed an over 70% probability that the Fed will hold interest rates steady at its June 13-14 policy meeting. FEDWATCH
"With disaster averted for now, attention will turn to other matters which have been overshadowed by the drama in Washington," said Russ Mould, investment director at AJ Bell.
"U.S. jobs numbers may provide some pointers to the next move by the Fed, whose decision making no longer needs to consider the potential financial stability risks associated with default on U.S. debt."
At 7:01 a.m. ET, Dow e-minis 1YMcv1 were up 185 points, or 0.56%, S&P 500 e-minis EScv1 were up 21.25 points, or 0.5%, and Nasdaq 100 e-minis NQcv1 were up 63 points, or 0.44%.
Megacap stocks including Microsoft Corp MSFT.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Meta Platforms META.O rose between 0.3% and 1.3% premarket.
Growth companies rely more on borrowed money so they benefit from lower rates.
Lululemon Athletica Inc LULU.O jumped 14.7% upon raising its annual sales and profit forecasts on Thursday as wealthy Americans bought its pricey activewear despite high inflation.
This helped boost shares of sportswear companies in both the United States and Europe, with Dow Jones Industrial Average .DJI component Nike Inc NKE.N up 3.1%. Germany's Adidas ADSGn.DE and Puma PUMG.DE rose around 4.5% each in European trading.
Broadcom Inc AVGO.O fell 0.6% after reporting quarterly results.
The chipmaker forecast third-quarter revenue above market estimates. However, analysts said the outlook was disappointing, as expectations were stacked up against a blockbuster guidance provided by Nvidia CorpNVDA.O last week. Shares of Nvidia, the world's most valuable chipmaker, rose 1.4%.
Rate outlook flip flops https://tmsnrt.rs/3MJf3f2
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Nivedita Bhattacharjee and Maju Samuel)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap stocks including Microsoft Corp MSFT.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Meta Platforms META.O rose between 0.3% and 1.3% premarket. By Shreyashi Sanyal and Shristi Achar A June 2 (Reuters) - U.S. stock index futures rose on Friday after the country narrowly averted a debt default, with focus now shifting to payrolls data that will determine whether the Federal Reserve sticks to its interest rate-hiking regime. Attention now turns to data which will likely show job growth slowed in May, with wages coming off the boil that could allow the Fed to skip an interest rate hike this month for the first time since starting its aggressive policy tightening more than a year ago.
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Megacap stocks including Microsoft Corp MSFT.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Meta Platforms META.O rose between 0.3% and 1.3% premarket. Attention now turns to data which will likely show job growth slowed in May, with wages coming off the boil that could allow the Fed to skip an interest rate hike this month for the first time since starting its aggressive policy tightening more than a year ago. ET, Dow e-minis 1YMcv1 were up 185 points, or 0.56%, S&P 500 e-minis EScv1 were up 21.25 points, or 0.5%, and Nasdaq 100 e-minis NQcv1 were up 63 points, or 0.44%.
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Megacap stocks including Microsoft Corp MSFT.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Meta Platforms META.O rose between 0.3% and 1.3% premarket. By Shreyashi Sanyal and Shristi Achar A June 2 (Reuters) - U.S. stock index futures rose on Friday after the country narrowly averted a debt default, with focus now shifting to payrolls data that will determine whether the Federal Reserve sticks to its interest rate-hiking regime. Attention now turns to data which will likely show job growth slowed in May, with wages coming off the boil that could allow the Fed to skip an interest rate hike this month for the first time since starting its aggressive policy tightening more than a year ago.
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Megacap stocks including Microsoft Corp MSFT.O, Apple Inc AAPL.O, Tesla Inc TSLA.O and Meta Platforms META.O rose between 0.3% and 1.3% premarket. Attention now turns to data which will likely show job growth slowed in May, with wages coming off the boil that could allow the Fed to skip an interest rate hike this month for the first time since starting its aggressive policy tightening more than a year ago. debt."
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15560.0
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2023-06-02 00:00:00 UTC
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Apple Nears All-Time High: Is the Tech Giant Too Extended?
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AAPL
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https://www.nasdaq.com/articles/apple-nears-all-time-high%3A-is-the-tech-giant-too-extended
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nan
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nan
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Apple stock has been in ultrasonic mode this year. After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the tech giant has benefitted from strength in the large-cap tech space. The bullish theme around artificial intelligence certainly hasn’t hurt either.
After a nearly 40% surge in 2023, are Apple shares now too far extended, or is the rally just getting underway?
Plenty of Skepticism Remains
Let’s take a step back for a moment and think about general market conditions. The American Association of Individual Investors publishes an investment sentiment indicator that shows the percentage spread between bulls and bears. The indicator currently sits at -12.31%, lower than the long-term average of 6.39%. This illustrates that bearishness continues to dominate U.S. investor sentiment.
Image Source: YCharts
Despite the technical progress this year, investor positioning also remains significantly bearish. A recent Bank of America Global Fund Manager Survey from May illustrated that investors were the most underweight equities relative to bonds since the Great Financial Crisis. This survey looks at more than 600 money managers, and it is quite apparent that overall positioning is defensive as high levels of pessimism remain.
Remember, the crowd is usually wrong. The lack of respect for the market’s recovery will likely aid a continuation of the recent rally off the 2022 lows.
The Business of Apple
Apple is engaged in the designing, manufacturing and marketing of mobile communication and media devices, personal computers, and portable digital music players. Headquartered in Cupertino, California, Apple’s well-known products include the iPhone, iPad, Mac, and Apple TV, along with its software applications like iOS and the MAC OS X operating systems.
In addition to the sales generated from the devices mentioned above, Apple’s business contains a Services segment that includes revenues from cloud services, the App Store, Apple Music, AppleCare, Apple Pay, as well as other licensing services that have become a major cash cow. Apple currently has more than 935 million paid subscribers across the Services portfolio.
If that all wasn’t enough, Apple dominates the Wearables market, as consumers continue to adopt products like the AirPods and Apple Watch. Apple has made significant headway in this area, strengthening its presence in the personal health monitoring space. Other services include Apple News+, Apple Card, and Apple Arcade.
An increased focus on autonomous vehicles and augmented reality technologies presents a growth opportunity over the long-term. Apple is expected to ramp up its efforts with new offerings, and has clearly benefitted from the AI theme this year.
The Zacks Rundown
Apple is part of the Zacks Computer and Technology sector, which currently ranks in the top 50% of all Zacks Ranked sectors. Because it is ranked in the top half of all sectors, we expect this group to outperform the market over the next 3 to 6 months, just as it has year-to-date with a 31% return:
Image Source: Zacks Investment Research
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its sector and industry group combination. In fact, the top 50% of Zacks Ranked Sectors outperforms the bottom 50% by a factor of more than 2 to 1.
By focusing on leading stocks within the top 50% of Zacks Ranked Sectors, we can dramatically improve our stock-picking success.
AAPL has exceeded earnings estimates in three of the past four quarters. The company most recently delivered fiscal second-quarter earnings back in May of $1.52/share, beating the $1.44 Zacks Consensus Estimate by 5.56%. Apple has posted a trailing four-quarter average earnings surprise of 2.65%.
Image Source: Zacks Investment Research
AAPL is currently a Zacks Rank #3 (Hold) stock. The tech giant is projected to see a slight decline in earnings and revenues this year relative to 2022.
The Zacks Consensus Estimate for Apple’s full-year earnings sits at $5.99/share, a -1.96% decline from last year. Sales of $384.49 billion would translate to a -2.5% drop. But given Apple’s history of beating estimates, it wouldn’t be too surprising if these figures ended up being a bit light.
What to Do Now
While Apple shares do appear to be a bit extended in the short-term, buying stocks when they make new highs has proven to be profitable throughout history. A stock eclipsing a previous high should be viewed as a sign of strength. Still, investors may consider waiting for a pullback before entering a new position, particularly if they have added other names recently.
But the market is telling us to expect the unexpected. A resilient U.S. consumer along with a bullish artificial intelligence theme has helped push tech stocks like AAPL back near previous highs. Make sure to keep an eye on this tech behemoth as the stock is now less than 1% away from a new all-time high.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A resilient U.S. consumer along with a bullish artificial intelligence theme has helped push tech stocks like AAPL back near previous highs. After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the tech giant has benefitted from strength in the large-cap tech space. AAPL has exceeded earnings estimates in three of the past four quarters.
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After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the tech giant has benefitted from strength in the large-cap tech space. Image Source: Zacks Investment Research AAPL is currently a Zacks Rank #3 (Hold) stock. A resilient U.S. consumer along with a bullish artificial intelligence theme has helped push tech stocks like AAPL back near previous highs.
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After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the tech giant has benefitted from strength in the large-cap tech space. AAPL has exceeded earnings estimates in three of the past four quarters. Image Source: Zacks Investment Research AAPL is currently a Zacks Rank #3 (Hold) stock.
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After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the tech giant has benefitted from strength in the large-cap tech space. AAPL has exceeded earnings estimates in three of the past four quarters. Image Source: Zacks Investment Research AAPL is currently a Zacks Rank #3 (Hold) stock.
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15561.0
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2023-06-02 00:00:00 UTC
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Why Apple Is the Best Stock to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/why-apple-is-the-best-stock-to-buy-right-now
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nan
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nan
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Despite certain U.S. banks going under and a substantial slowdown in economic expansion during the first quarter of 2023, Apple (NASDAQ: AAPL) had a great beginning to the year. Its stock rose by an impressive 39% year to date compared to the S&P 500's 10%.
Investors hold varied opinions on whether the stock is fairly valued or overvalued, given its price-to-earnings (P/E) ratio of 29.8, which surpasses the stock's median P/E ratio of 17 over the past 10 years and the P/E ratio of the S&P 500, which is 24.4. Nevertheless, despite not being available at a discounted price, Apple remains a top stock to purchase. Here's why.
International growth plans
With a market capitalization of $2.7 trillion, Apple is the world's most valuable company. Despite concerns about its sheer size and maturity hindering its ability to generate revenue and profit growth, it's worth noting that iOS remains the dominant operating system in the U.S., and the company has the potential for solid international expansion against Android, which currently holds near 70% of theglobal marketshare. So although it may be pushing up against market saturation limits within U.S. markets, it still has plenty of room for needle-moving growth internationally, especially in emerging markets.
Apple's rapid expansion into international markets is a no-brainer. Here are four reasons why:
Global economic growth has created a favorable environment for Apple. As more people worldwide have disposable income, they are increasingly interested in purchasing Apple products.
The population of middle-class consumers in emerging markets is rising, which means there is a growing market of people who can afford Apple products.
The world is becoming increasingly urbanized, which means that more people live in cities with access to Apple stores and other channels to purchase Apple products.
Many citizens in emerging markets see Apple products as status symbols, meaning consumers are willing to pay a premium.
During its fiscal second quarter 2023earnings call management reported breaking sales records in several countries, including Indonesia, the Philippines, Malaysia, Saudi Arabia, Turkey, United Arab Emirates, Brazil, Mexico, and India. Additionally, with China reopening, investors can anticipate solid growth eventually resuming from that region as its economy rebounds. Chief Executive Officer Tim Cook believes the company gained market share in China during its second quarter.
In short, Apple is well positioned to continue expanding into international markets for the foreseeable future.
Apple has generative AI plans
Since the release of ChatGPT by OpenAI in late 2022, there has been curiosity about Apple's plans for their own advanced artificial intelligence (AI) technology. As a result, an analyst asked Cook about generative AI during the company'searnings callin early May. However, he gave a cautious response to avoid revealing too much information:
As you know, we don't comment on product roadmaps. I do think it's very important to be delivered and thoughtful in how you approach these things. And there's a number of issues that need to be sorted, as is being talked about in a number of different places, but the potential is certainly very interesting.
However, we know Apple is actively working on the technology. Many news outlets have reported multiple job postings for machine learning engineers specializing in generative AI.
It wants to explore the potential of this new technology to create innovative products and services that were previously impossible. For example, possibilities include the development of a ChatGPT-like virtual assistant that can recognize and respond to everyday language, potentially eliminating the need for competing search or AI services on Apple devices. Apple could also become a significant player in the search market, competing with companies like Alphabet's Google, and Microsoft's Bing.
The possibilities for new products and services are endless, including photo editing apps and games that can generate new levels and challenges on the fly. Overall, the potential revenue and profit-generating capabilities of generative AI products could significantly boost Apple's valuation over the long term.
The stock could flatline in the short term
Apple is a highly cyclical company, meaning the economy's overall health drives its sales and profits. As a result, people are predisposed to spend money on discretionary items like new iPhones and iPads when the economy is doing well. Alternatively, when the economy is in a downturn, people are determined to cut back on their spending, which can hurt Apple's sales.
You can see how high inflation, rising interest rates, and slowing growth harmed Apple's revenue and profit growth over the last two years in the chart below.
AAPL Revenue (Quarterly YOY Growth) data by YCharts.
Economists at the Federal Reserve predicted in March that the U.S. economy would have a modest recession in the last half of 2023, meaning that the economy is likely to contract for two consecutive quarters, which is the technical definition of a recession. If this happens, Apple's stock price will likely fall as investors become more risk-averse, and it might be an excellent opportunity to buy it at a lower price.
A recession is not guaranteed
Some economic experts do not believe that a recession will likely happen soon. For example, Mohamed El-Erian, chief economic advisor at Allianz, thinks the U.S. economy is robust enough to steer clear of a recession in 2023 and argues that the number of job openings far exceeds the number of unemployed people, indicating an economy where businesses still hire, and people can find well-paying jobs. Additionally, it suggests that the economy is still growing.
If El-Erian is correct, investors waiting to buy Apple at bargain prices during a recession may never get that opportunity. And if you believe in Apple's long-term potential and can withstand potential short-term losses, you should buy the stock today.
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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{%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. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Despite certain U.S. banks going under and a substantial slowdown in economic expansion during the first quarter of 2023, Apple (NASDAQ: AAPL) had a great beginning to the year. AAPL Revenue (Quarterly YOY Growth) data by YCharts. Despite concerns about its sheer size and maturity hindering its ability to generate revenue and profit growth, it's worth noting that iOS remains the dominant operating system in the U.S., and the company has the potential for solid international expansion against Android, which currently holds near 70% of theglobal marketshare.
|
Despite certain U.S. banks going under and a substantial slowdown in economic expansion during the first quarter of 2023, Apple (NASDAQ: AAPL) had a great beginning to the year. AAPL Revenue (Quarterly YOY Growth) data by YCharts. The population of middle-class consumers in emerging markets is rising, which means there is a growing market of people who can afford Apple products.
|
Despite certain U.S. banks going under and a substantial slowdown in economic expansion during the first quarter of 2023, Apple (NASDAQ: AAPL) had a great beginning to the year. AAPL Revenue (Quarterly YOY Growth) data by YCharts. The population of middle-class consumers in emerging markets is rising, which means there is a growing market of people who can afford Apple products.
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Despite certain U.S. banks going under and a substantial slowdown in economic expansion during the first quarter of 2023, Apple (NASDAQ: AAPL) had a great beginning to the year. AAPL Revenue (Quarterly YOY Growth) data by YCharts. Apple has generative AI plans Since the release of ChatGPT by OpenAI in late 2022, there has been curiosity about Apple's plans for their own advanced artificial intelligence (AI) technology.
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15562.0
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2023-06-02 00:00:00 UTC
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Should Invesco S&P 500 Top 50 ETF (XLG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-sp-500-top-50-etf-xlg-be-on-your-investing-radar-8
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco S&P 500 Top 50 ETF (XLG) is a passively managed exchange traded fund launched on 05/04/2005.
The fund is sponsored by Invesco. It has amassed assets over $2.34 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.12%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 39.50% of the portfolio. Healthcare and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 50.76% of total assets under management.
Performance and Risk
XLG seeks to match the performance of the S&P 500 Top 50 ETF Index before fees and expenses. The S&P 500 Top 50 Index is composed of 50 of the largest companies in the S&P 500 Index.
The ETF has added roughly 21.63% so far this year and it's up approximately 9.36% in the last one year (as of 06/02/2023). In the past 52-week period, it has traded between $266.55 and $334.70.
The ETF has a beta of 1 and standard deviation of 20.26% for the trailing three-year period, making it a medium risk choice in the space. With about 53 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Top 50 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, XLG is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $313.42 billion in assets, SPDR S&P 500 ETF has $397.56 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Core S&P 500 ETF (IVV): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco S&P 500 Top 50 ETF (XLG) is a passively managed exchange traded fund launched on 05/04/2005.
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Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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 13.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco S&P 500 Top 50 ETF (XLG) is a passively managed exchange traded fund launched on 05/04/2005.
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Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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 13.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Invesco S&P 500 Top 50 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.33% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco S&P 500 Top 50 ETF (XLG) is a passively managed exchange traded fund launched on 05/04/2005.
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15563.0
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2023-06-02 00:00:00 UTC
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Tech shares see biggest ever weekly inflow on AI boom-BofA
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AAPL
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https://www.nasdaq.com/articles/tech-shares-see-biggest-ever-weekly-inflow-on-ai-boom-bofa
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nan
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nan
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Adds details, quote
LONDON, June 2 (Reuters) - Technology equity funds saw their biggest weekly inflows on record in the week to Wednesday, driven by a surge in investor interest in artificial intelligence, according to BofA Global Research released on Friday.
Tech stocks saw $8.5 billion of inflows in the week to Wednesday, the most on record, BoFa said, citing EPFR data. Stocks in general saw $14.8 billion of inflows the largest weekly inflow since February.
Part of that swell was thanks to a 30% rise in shares of chipmaker Nvidia NVDA.O in just three sessions that pushed its market valuation above $1 trillion at one point.
Seven stocks - Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O, Amazon AMZN.O, Nvidia, Meta META.O and Tesla TSLA.O - account for 8.8 percentage points of the S&P 500's .SPX 10% year-to-date return, according to BofA's calcuations.
The "market (is) bored of waiting for rates to cause recession" and so is 'back to biggest companies = biggest margins = biggest (price to earnings multiples)'," the analysts wrote in a note, saying that they themselves remain bearish due to higher interest rates.
Cash funds, normally in demand when investors are nervous, also saw inflows of $11.3 billion, their six straight week of inflows, while gold funds saw $200 million of outflows, according to BofA.
(Reporting by Alun John; Editing by Amanda Cooper)
((alun.john@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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Seven stocks - Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O, Amazon AMZN.O, Nvidia, Meta META.O and Tesla TSLA.O - account for 8.8 percentage points of the S&P 500's .SPX 10% year-to-date return, according to BofA's calcuations. Tech stocks saw $8.5 billion of inflows in the week to Wednesday, the most on record, BoFa said, citing EPFR data. Part of that swell was thanks to a 30% rise in shares of chipmaker Nvidia NVDA.O in just three sessions that pushed its market valuation above $1 trillion at one point.
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Seven stocks - Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O, Amazon AMZN.O, Nvidia, Meta META.O and Tesla TSLA.O - account for 8.8 percentage points of the S&P 500's .SPX 10% year-to-date return, according to BofA's calcuations. Adds details, quote LONDON, June 2 (Reuters) - Technology equity funds saw their biggest weekly inflows on record in the week to Wednesday, driven by a surge in investor interest in artificial intelligence, according to BofA Global Research released on Friday. Tech stocks saw $8.5 billion of inflows in the week to Wednesday, the most on record, BoFa said, citing EPFR data.
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Seven stocks - Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O, Amazon AMZN.O, Nvidia, Meta META.O and Tesla TSLA.O - account for 8.8 percentage points of the S&P 500's .SPX 10% year-to-date return, according to BofA's calcuations. Adds details, quote LONDON, June 2 (Reuters) - Technology equity funds saw their biggest weekly inflows on record in the week to Wednesday, driven by a surge in investor interest in artificial intelligence, according to BofA Global Research released on Friday. The "market (is) bored of waiting for rates to cause recession" and so is 'back to biggest companies = biggest margins = biggest (price to earnings multiples)'," the analysts wrote in a note, saying that they themselves remain bearish due to higher interest rates.
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Seven stocks - Apple AAPL.O, Microsoft MSFT.O, Google parent Alphabet GOOGL.O, Amazon AMZN.O, Nvidia, Meta META.O and Tesla TSLA.O - account for 8.8 percentage points of the S&P 500's .SPX 10% year-to-date return, according to BofA's calcuations. Adds details, quote LONDON, June 2 (Reuters) - Technology equity funds saw their biggest weekly inflows on record in the week to Wednesday, driven by a surge in investor interest in artificial intelligence, according to BofA Global Research released on Friday. Tech stocks saw $8.5 billion of inflows in the week to Wednesday, the most on record, BoFa said, citing EPFR data.
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15564.0
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2023-06-02 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Tesla, Apple, General Motors, Honda Motor and Ford
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-tesla-apple-general-motors-honda-motor-and-ford
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nan
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nan
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For Immediate Release
Chicago, IL – June 2, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL, General Motors GM, Honda Motor Co. HMC and Ford F.
5 Reasons to Buy Tesla Right Now
Over the years, Tesla has shifted from developing niche products for affluent buyers to making affordable electric vehicles for the masses. Though there have been many naysayers along the way, shares have increased by more than 12,000%. Despite a brutal correction in 2022, the EV maker has delivered positive earnings surprises in nine straight quarters, and shares have begun to recover as a result.
Below are five reasons the momentum can continue into year-end:
A Plethora of Catalysts
Price Cuts Sparking Demand: Over the years, Tesla CEO Elon Musk has often said that the EV maker has a supply problem, not a demand problem. However, in early 2023, Musk boldly cut prices to counter rising interest rates that are driving financing costs higher, compete with rivals, and allow several models to be eligible for the hefty $7,500 tax rebates for electric vehicles. (Allowed on EVs under 55,000 and electric SUVs and trucks under $80,000).
Stock Repurchase Plan: Apple is the best example of using buybacks to its advantage. AAPL has the most aggressive share repurchase plan on Wall Street, and the success of the strategy is undeniable. Stock buybacks increase earnings per share (The total number of shares outstanding decreases), create a favorable imbalance between supply and demand (Publics supply of shares is lower), and imply that the stock is undervalued and that it expects future growth. In Tesla’s recent earnings calls, Elon Musk suggested that the company would do a “meaningful buyback” in the fourth quarter of 2023.
A Hummer Replacement? In the early 2000s, General Motors saw a wave of success with its best-selling Hummer SUV. The eccentric army truck became popular with people from all walks of life who wanted to stand out on the roads. However, during the 2008 financial crisis, the viability of the Hummer came into question. Not only was the economy working against it, but sky-high oil prices also made its gas-guzzling nature unattractive, and the green movement in the United States was beginning and consumers were looking to decrease their carbon emissions.
Later this year, Tesla will launch its “Hummer killer,” the obnoxious-looking Cybertruck. The Cybertruck SUV is unlikely to run into the same issues the Hummer did for two reasons. First, unlike in 2008, 2023’s economy is not on the brink of collapse. If you use the Tesla Model Y SUV sales as a precedent, consumers are not only attracted to EVs, but also willing to pay a premium. Second, because the Cybertruck is fully electric, it will attract environmentally conscious consumers.
Full Self-Driving (FSD) Deployment: Tesla continues to refine and improve its AI-powered self-driving program. Already, FSD is much safer than the average driver on the road. In a recent interview, Musk seemed very bullish on FSD’s potential, saying “Tesla will have a Chat-GPT moment later this year.” Musk should know – he was the brains and investment behind Open AI’s Chat-GPT.
Electrifying “Non-Automotive” Growth: Over the last few years, Tesla’s energy generation and storage revenues have been growing at a CAGR of 47%. Tesla’s “Megapack” deployment is expected to rocket higher by 135% in 2023.
Valuation
Price to Sales at Bargain Basement Levels: Because of Tesla’s dominance in the EV realm, innovation, and high growth, it garners a higher valuation than traditional automakers such as Honda Motor Co. and Ford. That said, from a price-to-sales perspective, TSLA is at its most attractive level since the start of the post-pandemic recovery on Wall Street. The last time Tesla’s P/S ratio was at 8 (like it is now), shares increased sevenfold over the next several months.
Financial Efficiency
Return on Equity: Typically, automakers are known for having razor-thin margins. For Tesla, this isn’t the case. Tesla’s return on equity of 27.29% is higher than the S&P 500’s 25.67% over the trailing twelve months.
The “Magic Elixir”
Growth and Liquidity: Large institutional growth investors consider two major factors when selecting stocks: growth and liquidity. Tesla has grown its top and bottom lines at a healthy double-digit rate for years all while having a market cap north of $500 billion – an extremely rare feat.
Long-Term Area of Interest
A Rare Technical Zone: In monster stocks, the 50-week moving average is a long-term level that investors often defend. Tesla has held the zone since its inception in 2010 and is making a rare visit.
Tesla also jumped above its 200-day moving average for the first time since 2022 – another bullish sign.
Conclusion
A plethora of catalysts, a bargain basement valuation, financial efficiency, growth and liquidity, and strong technical action are key reasons why Tesla’s stock should be higher 6-12 months from now.
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Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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Ford Motor Company (F) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – June 2, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL, General Motors GM, Honda Motor Co. HMC and Ford F. 5 Reasons to Buy Tesla Right Now Over the years, Tesla has shifted from developing niche products for affluent buyers to making affordable electric vehicles for the masses. AAPL has the most aggressive share repurchase plan on Wall Street, and the success of the strategy is undeniable. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL – June 2, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL, General Motors GM, Honda Motor Co. HMC and Ford F. 5 Reasons to Buy Tesla Right Now Over the years, Tesla has shifted from developing niche products for affluent buyers to making affordable electric vehicles for the masses. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. AAPL has the most aggressive share repurchase plan on Wall Street, and the success of the strategy is undeniable.
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For Immediate Release Chicago, IL – June 2, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL, General Motors GM, Honda Motor Co. HMC and Ford F. 5 Reasons to Buy Tesla Right Now Over the years, Tesla has shifted from developing niche products for affluent buyers to making affordable electric vehicles for the masses. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. AAPL has the most aggressive share repurchase plan on Wall Street, and the success of the strategy is undeniable.
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AAPL has the most aggressive share repurchase plan on Wall Street, and the success of the strategy is undeniable. For Immediate Release Chicago, IL – June 2, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL, General Motors GM, Honda Motor Co. HMC and Ford F. 5 Reasons to Buy Tesla Right Now Over the years, Tesla has shifted from developing niche products for affluent buyers to making affordable electric vehicles for the masses. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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15565.0
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2023-06-02 00:00:00 UTC
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GRAPHIC-Take Five: Almost half-time
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AAPL
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https://www.nasdaq.com/articles/graphic-take-five%3A-almost-half-time
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nan
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nan
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June 2 (Reuters) - The hefty weight of tech megacaps, strange reporting rules for an upcoming OPEC meeting and more pain for consumers and businesses Down Under - these are just some of the topics preoccupying markets as they approach the halfway point of 2023.
Some investors are growing concerned about how gains in the S&P 500 have become increasingly concentrated in a handful of megacap stocks.
The combined weight of five stocks - Apple, Microsoft, Google-parent Alphabet, Amazon and Nvidia - now accounts for 25% of the S&P 500’s market value, a trend recently supercharged by the AI buzz. Data from Deutsche Bank shows the equal-weighted S&P 500 index, a barometer of the average stock, trailing the S&P 500 by its biggest margin since 1999.
A rally driven by a handful of stocks raises questions about the health of the broader market and risks igniting volatility if investors ditch those megacap holdings.
Emerging market central banks were quick to tighten policy in early 2021 when price pressures accelerated, front-running major developed central banks, including the Fed. Now they appear to be once again first out of the starting blocks as rate cuts move higher up the agenda.
Hungary became the first European bank to lower rates in May, following Uruguay, which kicked off the Latin American rate-cut cycle in April while Sri Lanka stunned markets with a 250-basis point rate cut on June 1.
But the picture is mixed: Polish policymakers are seen holding rates at 6.75% on Tuesday even if expectations are rising for a cut later in the year. Markets might have to wait until 2024 for India, where the next decision is due on Thursday. Russia is expected to keep its rate at 7.5% on Friday.
3/A CRUDE INVITATION
The Organization of the Petroleum Exporting Countries and partners meet on Sunday to discuss oil production. The event draws in throngs of reporters from all around the world, who jostle for position at the bottom of several flights of stairs at the OPEC secretariat that they race up to get into the pre-meeting press scrum.
Reading the runes is trickier than usual. Not only is OPEC+ giving mixed signals as to what to expect in terms of output, but the group has also banned several major news organisations from attending the press conference, including Reuters and Bloomberg.
No-invitation journalists can still quiz oil ministers as they pass through the lobbies of Vienna's glitzy hotels, but will not be admitted to the formal press conference.
The price of oil, meanwhile, is now roughly half what it was in March 2022, after Russia invaded Ukraine, around $72 a barrel.
4/INTERVENTION WATCH
The yen has fallen over 5% since early March to six-month lows against a resilient dollar JPY=EBS.
It's enough to make Japanese officials uneasy, with top currency diplomat Masato Kanda warning Japan will closely watch currency moves and won't rule out any options.
Currency intervention is viewed as a distant prospect, but traders will likely pay attention to policymaker comments in coming days after officials from the finance ministry, BOJ and Japan's financial watchdog met on Tuesday. Such meetings can be a prelude to further action.
And it's not just Japan traders on intervention watch. Sweden's crown is at its weakest against the dollar and euro in over a decade, adding to inflationary pressures. A weak currency is a problem, but intervention would be a last resort, says central bank Deputy Governor Per Jansson.
Such resolve could well be put to the test.
5/RBA BRINGS THE PAIN
The Reserve Bank of Australia says the inflation fight is far from won, and the public should brace itself for more pain.
That could be as soon as the next meeting on Tuesday, with markets laying about 30% odds for a hike.
The economy had been showing signs of cooling until this week, when a reading of consumer prices jumped much more than forecast for April, sending stocks to a two-month trough.
Rates are already at an 11-year peak after a surprise hike last month, which RBA governor Philip Lowe justified by saying he wanted to send a clear message to households and businesses that the central bank will do whatever it takes.
Policymakers need to keep an eye on top trading partner China too, where a sputtering post-pandemic recovery risks eroding Australian ore and energy exports.
Megacap stocks corner over a quarter of S&P 500 https://tmsnrt.rs/3OOy8io
Emerging markets interest rates https://tmsnrt.rs/3MViQqQ
All eyes on OPEC+ meeting https://tmsnrt.rs/3N8bW1C
Yen watching https://tmsnrt.rs/42xuTPP
Inflation still a concern for RBA https://tmsnrt.rs/43DufAS
(Compiled by Amanda Cooper; Editing by Edwina Gibbs)
((amanda.cooper@thomsonreuters.com; +442031978531; Twitter: https://twitter.com/a_coops1;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 2 (Reuters) - The hefty weight of tech megacaps, strange reporting rules for an upcoming OPEC meeting and more pain for consumers and businesses Down Under - these are just some of the topics preoccupying markets as they approach the halfway point of 2023. Currency intervention is viewed as a distant prospect, but traders will likely pay attention to policymaker comments in coming days after officials from the finance ministry, BOJ and Japan's financial watchdog met on Tuesday. Rates are already at an 11-year peak after a surprise hike last month, which RBA governor Philip Lowe justified by saying he wanted to send a clear message to households and businesses that the central bank will do whatever it takes.
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June 2 (Reuters) - The hefty weight of tech megacaps, strange reporting rules for an upcoming OPEC meeting and more pain for consumers and businesses Down Under - these are just some of the topics preoccupying markets as they approach the halfway point of 2023. Emerging market central banks were quick to tighten policy in early 2021 when price pressures accelerated, front-running major developed central banks, including the Fed. Megacap stocks corner over a quarter of S&P 500 https://tmsnrt.rs/3OOy8io Emerging markets interest rates https://tmsnrt.rs/3MViQqQ All eyes on OPEC+ meeting https://tmsnrt.rs/3N8bW1C Yen watching https://tmsnrt.rs/42xuTPP Inflation still a concern for RBA https://tmsnrt.rs/43DufAS (Compiled by Amanda Cooper; Editing by Edwina Gibbs) ((amanda.cooper@thomsonreuters.com; +442031978531; Twitter: https://twitter.com/a_coops1;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Emerging market central banks were quick to tighten policy in early 2021 when price pressures accelerated, front-running major developed central banks, including the Fed. Hungary became the first European bank to lower rates in May, following Uruguay, which kicked off the Latin American rate-cut cycle in April while Sri Lanka stunned markets with a 250-basis point rate cut on June 1. Megacap stocks corner over a quarter of S&P 500 https://tmsnrt.rs/3OOy8io Emerging markets interest rates https://tmsnrt.rs/3MViQqQ All eyes on OPEC+ meeting https://tmsnrt.rs/3N8bW1C Yen watching https://tmsnrt.rs/42xuTPP Inflation still a concern for RBA https://tmsnrt.rs/43DufAS (Compiled by Amanda Cooper; Editing by Edwina Gibbs) ((amanda.cooper@thomsonreuters.com; +442031978531; Twitter: https://twitter.com/a_coops1;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Hungary became the first European bank to lower rates in May, following Uruguay, which kicked off the Latin American rate-cut cycle in April while Sri Lanka stunned markets with a 250-basis point rate cut on June 1. But the picture is mixed: Polish policymakers are seen holding rates at 6.75% on Tuesday even if expectations are rising for a cut later in the year. The price of oil, meanwhile, is now roughly half what it was in March 2022, after Russia invaded Ukraine, around $72 a barrel.
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15566.0
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2023-06-01 00:00:00 UTC
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GRAPHIC-Nvidia runaway winner in market cap addition in May
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AAPL
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https://www.nasdaq.com/articles/graphic-nvidia-runaway-winner-in-market-cap-addition-in-may
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nan
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nan
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June 1 (Reuters) - Nvidia Corp's NVDA.OQ market capitalisation jumped the most in May among the top 20 global companies by market value, adding $248 billion, with a majority of the gains coming in the last four sessions, according to Refinitiv data.
The chipmaker briefly joined the $1 trillion valuation club, as investors bet on its potential to become a major beneficiary of a boom in artificial intelligence following a revenue forecast that was more than 50% above the Wall Street estimate
The company's shares are up 159% so far this year.
Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, a key manufacturer of Nvidia's chips, also saw a big jump in its market cap last month.
Saudi Arabian Oil 2222.SE and Exxon Mobil Corp XOM.N were the biggest losers in terms of market cap, hit by a decline in oil prices last month.
Apple AAPL.OQ and Microsoft MSFT.OQ led the list with the highest market capitalisation in the world.
Top 20 companies in the world by market cap https://tmsnrt.rs/45JVJXt
Change in market cap in May https://tmsnrt.rs/3qgKBRH
(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Sriraj Kalluvila)
((patturaja.muruga@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.OQ and Microsoft MSFT.OQ led the list with the highest market capitalisation in the world. The chipmaker briefly joined the $1 trillion valuation club, as investors bet on its potential to become a major beneficiary of a boom in artificial intelligence following a revenue forecast that was more than 50% above the Wall Street estimate The company's shares are up 159% so far this year. Top 20 companies in the world by market cap https://tmsnrt.rs/45JVJXt Change in market cap in May https://tmsnrt.rs/3qgKBRH (Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Sriraj Kalluvila) ((patturaja.muruga@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.OQ and Microsoft MSFT.OQ led the list with the highest market capitalisation in the world. June 1 (Reuters) - Nvidia Corp's NVDA.OQ market capitalisation jumped the most in May among the top 20 global companies by market value, adding $248 billion, with a majority of the gains coming in the last four sessions, according to Refinitiv data. Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, a key manufacturer of Nvidia's chips, also saw a big jump in its market cap last month.
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Apple AAPL.OQ and Microsoft MSFT.OQ led the list with the highest market capitalisation in the world. June 1 (Reuters) - Nvidia Corp's NVDA.OQ market capitalisation jumped the most in May among the top 20 global companies by market value, adding $248 billion, with a majority of the gains coming in the last four sessions, according to Refinitiv data. Saudi Arabian Oil 2222.SE and Exxon Mobil Corp XOM.N were the biggest losers in terms of market cap, hit by a decline in oil prices last month.
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Apple AAPL.OQ and Microsoft MSFT.OQ led the list with the highest market capitalisation in the world. June 1 (Reuters) - Nvidia Corp's NVDA.OQ market capitalisation jumped the most in May among the top 20 global companies by market value, adding $248 billion, with a majority of the gains coming in the last four sessions, according to Refinitiv data. The chipmaker briefly joined the $1 trillion valuation club, as investors bet on its potential to become a major beneficiary of a boom in artificial intelligence following a revenue forecast that was more than 50% above the Wall Street estimate The company's shares are up 159% so far this year.
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15567.0
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2023-06-01 00:00:00 UTC
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Meta's Zuckerberg unveils Quest 3 mixed reality headset
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AAPL
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https://www.nasdaq.com/articles/metas-zuckerberg-unveils-quest-3-mixed-reality-headset
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nan
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nan
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NEW YORK, June 1 (Reuters) - Meta Platforms META.O CEO Mark Zuckerberg revealed the company's next generation mixed reality headset, the Quest 3, in an Instagram post on Thursday as part of its annual gaming conference.
The announcement came less than a week before tech rival Apple AAPL.O was expected to unveil its first mixed reality device, which combines augmented and virtual reality elements.
Meta currently dominates the market for AR/VR devices, with a nearly 80% share of the 8.8 million headsets sold in 2022, according to an estimate by market research firm IDC.
(Reporting by Katie Paul; Editing by Lisa Shumaker)
((Katie.Paul@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The announcement came less than a week before tech rival Apple AAPL.O was expected to unveil its first mixed reality device, which combines augmented and virtual reality elements. NEW YORK, June 1 (Reuters) - Meta Platforms META.O CEO Mark Zuckerberg revealed the company's next generation mixed reality headset, the Quest 3, in an Instagram post on Thursday as part of its annual gaming conference. (Reporting by Katie Paul; Editing by Lisa Shumaker) ((Katie.Paul@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The announcement came less than a week before tech rival Apple AAPL.O was expected to unveil its first mixed reality device, which combines augmented and virtual reality elements. NEW YORK, June 1 (Reuters) - Meta Platforms META.O CEO Mark Zuckerberg revealed the company's next generation mixed reality headset, the Quest 3, in an Instagram post on Thursday as part of its annual gaming conference. (Reporting by Katie Paul; Editing by Lisa Shumaker) ((Katie.Paul@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The announcement came less than a week before tech rival Apple AAPL.O was expected to unveil its first mixed reality device, which combines augmented and virtual reality elements. NEW YORK, June 1 (Reuters) - Meta Platforms META.O CEO Mark Zuckerberg revealed the company's next generation mixed reality headset, the Quest 3, in an Instagram post on Thursday as part of its annual gaming conference. (Reporting by Katie Paul; Editing by Lisa Shumaker) ((Katie.Paul@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The announcement came less than a week before tech rival Apple AAPL.O was expected to unveil its first mixed reality device, which combines augmented and virtual reality elements. NEW YORK, June 1 (Reuters) - Meta Platforms META.O CEO Mark Zuckerberg revealed the company's next generation mixed reality headset, the Quest 3, in an Instagram post on Thursday as part of its annual gaming conference. Meta currently dominates the market for AR/VR devices, with a nearly 80% share of the 8.8 million headsets sold in 2022, according to an estimate by market research firm IDC.
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2023-06-01 00:00:00 UTC
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Meta's Zuckerberg unveils Quest 3 mixed reality headset
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AAPL
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https://www.nasdaq.com/articles/metas-zuckerberg-unveils-quest-3-mixed-reality-headset-0
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nan
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By Katie Paul
NEW YORK, June 1 (Reuters) - Meta Platforms META.O CEO Mark Zuckerberg revealed the company's next generation mixed reality headset, the Quest 3, in an Instagram post on Thursday as part of its annual gaming conference.
Priced starting at $499, the device will be 40% thinner than the company's previous device and feature color mixed reality, which combines augmented and virtual reality elements, Zuckerberg said in his post.
The Quest 3 also will have a new Qualcomm chipset with twice the graphics performance, Zuckerberg said, and promised more details at the company's virtual reality conference in September.
Zuckerberg's announcement came less than a week before tech rival Apple AAPL.O was expected to unveil its first mixed reality device.
Meta currently dominates the market for AR/VR devices, with a nearly 80% share of the 8.8 million headsets sold in 2022, according to an estimate by market research firm IDC.
(Reporting by Katie Paul; Editing by Lisa Shumaker)
((Katie.Paul@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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Zuckerberg's announcement came less than a week before tech rival Apple AAPL.O was expected to unveil its first mixed reality device. By Katie Paul NEW YORK, June 1 (Reuters) - Meta Platforms META.O CEO Mark Zuckerberg revealed the company's next generation mixed reality headset, the Quest 3, in an Instagram post on Thursday as part of its annual gaming conference. The Quest 3 also will have a new Qualcomm chipset with twice the graphics performance, Zuckerberg said, and promised more details at the company's virtual reality conference in September.
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Zuckerberg's announcement came less than a week before tech rival Apple AAPL.O was expected to unveil its first mixed reality device. By Katie Paul NEW YORK, June 1 (Reuters) - Meta Platforms META.O CEO Mark Zuckerberg revealed the company's next generation mixed reality headset, the Quest 3, in an Instagram post on Thursday as part of its annual gaming conference. The Quest 3 also will have a new Qualcomm chipset with twice the graphics performance, Zuckerberg said, and promised more details at the company's virtual reality conference in September.
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Zuckerberg's announcement came less than a week before tech rival Apple AAPL.O was expected to unveil its first mixed reality device. By Katie Paul NEW YORK, June 1 (Reuters) - Meta Platforms META.O CEO Mark Zuckerberg revealed the company's next generation mixed reality headset, the Quest 3, in an Instagram post on Thursday as part of its annual gaming conference. Priced starting at $499, the device will be 40% thinner than the company's previous device and feature color mixed reality, which combines augmented and virtual reality elements, Zuckerberg said in his post.
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Zuckerberg's announcement came less than a week before tech rival Apple AAPL.O was expected to unveil its first mixed reality device. By Katie Paul NEW YORK, June 1 (Reuters) - Meta Platforms META.O CEO Mark Zuckerberg revealed the company's next generation mixed reality headset, the Quest 3, in an Instagram post on Thursday as part of its annual gaming conference. Priced starting at $499, the device will be 40% thinner than the company's previous device and feature color mixed reality, which combines augmented and virtual reality elements, Zuckerberg said in his post.
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2023-06-01 00:00:00 UTC
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3 Warren Buffett Stocks to Buy (and Never Sell)
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AAPL
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-to-buy-and-never-sell
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Many investors are looking for predictable and safe retirement stocks to buy. They want something sturdy, dependable and that (preferably) pays some sort of dividend. More than that, they want a business that they know and understand, and one that they are confident will have longevity.
Those are the best stocks to own for a peaceful retirement.
Of course, this completely varies by the investor, especially these days. Some investors simply want to collect a reliable dividend while the stock enjoys a somewhat steady march higher. Others are comfortable with a bit more risk, and are willing to forego a larger dividend payment in lieu of better stock performance.
The man behind Berkshire Hathaway (NYSE:BRK-B) has made a career out of picking excellent businesses. Some of these Warren Buffett stocks have produced enormous gains over the years and have become staples in many portfolios.
Let’s look at a few of the best retirement stocks for stability, regardless of whether investors are going for growth or income.
AAPL Apple $179.85
V Visa $224.79
KO Coca-Cola $59.97
JNJ Johnson & Johnson $154.75
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
By far, Warren Buffett’s largest single-stock holding in Berkshire’s public portfolio is Apple (NASDAQ:AAPL). Given that the company commands a $2.8 trillion market capitalization and is the largest company in the world, it’s no wonder that Buffett has made Apple his largest stock holding.
It makes up almost 50% of the firm’s portfolio of public stocks, although it’s worth noting that Berkshire holds many private companies in its holdings. At Berkshire’s recent annual meeting, Buffett said, “Apple is different than the other businesses we own. It just happens to be a better business.”
Apple outperformed the Nasdaq on a peak-to-trough pullback basis, and while investors are clearly plowing into the name despite lackluster growth in 2023, it’s hard to criticize its 36.5% year-to-date rally. Further, shares are down just 3% from their all-time high.
Visa (V) or Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
I wanted to go with Visa (NYSE:V) as the number two pick, because I believe it offers a lot of long-term growth. And, as long as there is commerce, Visa will capitalize. That said, we’re looking for safe retirement stocks and for many investors, that means yield. Visa’s yield of only 0.8% isn’t going to get many retirees out of bed.
Coca-Cola (NYSE:KO) is the third or fourth largest holding in Buffett’s portfolio of public stocks, as it goes back and forth with American Express (NYSE:AXP), reiterating Buffett’s love for credit card companies.
Coca-Cola pays a dividend yield of roughly 3.1% and recently raised its dividend for the 61st consecutive year. By comparison, Visa yields less than 1% but has raised its payout in 14 consecutive years, with an average five-year growth rate of about 17%. Both companies are impressive on their own merits.
For Coca-Cola’s part, analysts expect mid-single-digit revenue growth this year and mid- to high-single-digit earnings growth in 2023 and 2024. Those figures slide to double-digit growth for Visa.
So the “safer” pick with the higher yield and more consistent income is Coca-Cola. The more volatile, but higher growth name that’s plenty consistent is Visa.
Johnson & Johnson (JNJ)
Source: Alexander Tolstykh / Shutterstock.com
I don’t know when things will turn around for Johnson & Johnson (NYSE:JNJ), and fully admit that the stock price could go lower from here. That said, investors who are looking for safe retirement stocks have one here with J&J.
The firm has been in business for more than 135 years and it has built quite a consistent base in that time. When it comes to income, consistency is also in the company’s job description.
That’s as Johnson & Johnson recently raised its dividend for the 61st consecutive year. It currently yields 3.1% and trades at less than 15-times this year’s earnings estimates. Further, analysts expect mid-single-digit earnings and revenue growth.
Lastly, the company recently spun off Kenvue (NYSE:KVUE) in an effort to create value for shareholders. J&J still holds a large stake in the firm (and will look to pare it down), but for now, Kenvue is still trading above its initial offering price.
On the date of publication, Bret Kenwell held a long position in JNJ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 3 Warren Buffett Stocks to Buy (and Never Sell) 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 $179.85 V Visa $224.79 KO Coca-Cola $59.97 JNJ Johnson & Johnson $154.75 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com By far, Warren Buffett’s largest single-stock holding in Berkshire’s public portfolio is Apple (NASDAQ:AAPL). Some investors simply want to collect a reliable dividend while the stock enjoys a somewhat steady march higher. It just happens to be a better business.” Apple outperformed the Nasdaq on a peak-to-trough pullback basis, and while investors are clearly plowing into the name despite lackluster growth in 2023, it’s hard to criticize its 36.5% year-to-date rally.
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AAPL Apple $179.85 V Visa $224.79 KO Coca-Cola $59.97 JNJ Johnson & Johnson $154.75 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com By far, Warren Buffett’s largest single-stock holding in Berkshire’s public portfolio is Apple (NASDAQ:AAPL). Coca-Cola pays a dividend yield of roughly 3.1% and recently raised its dividend for the 61st consecutive year. Further, analysts expect mid-single-digit earnings and revenue growth.
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AAPL Apple $179.85 V Visa $224.79 KO Coca-Cola $59.97 JNJ Johnson & Johnson $154.75 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com By far, Warren Buffett’s largest single-stock holding in Berkshire’s public portfolio is Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Many investors are looking for predictable and safe retirement stocks to buy. Coca-Cola (NYSE:KO) is the third or fourth largest holding in Buffett’s portfolio of public stocks, as it goes back and forth with American Express (NYSE:AXP), reiterating Buffett’s love for credit card companies.
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AAPL Apple $179.85 V Visa $224.79 KO Coca-Cola $59.97 JNJ Johnson & Johnson $154.75 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com By far, Warren Buffett’s largest single-stock holding in Berkshire’s public portfolio is Apple (NASDAQ:AAPL). Coca-Cola pays a dividend yield of roughly 3.1% and recently raised its dividend for the 61st consecutive year. It currently yields 3.1% and trades at less than 15-times this year’s earnings estimates.
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2023-06-01 00:00:00 UTC
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After Hours Most Active for Jun 1, 2023 : BOH, AAPL, RC, SLM, VZ, AMZN, T, MSFT, S, ACWI, GOOGL, PSTG
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jun-1-2023-%3A-boh-aapl-rc-slm-vz-amzn-t-msft-s-acwi-googl-pstg
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The NASDAQ 100 After Hours Indicator is up 16.7 to 14,458.21. The total After hours volume is currently 83,574,527 shares traded.
The following are the most active stocks for the after hours session:
Bank of Hawaii Corporation (BOH) is unchanged at $40.00, with 4,977,634 shares traded. BOH's current last sale is 78.43% of the target price of $51.
Apple Inc. (AAPL) is +0.23 at $180.32, with 4,039,771 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.18. , following a 52-week high recorded in today's regular session.
Ready Capital Corporation (RC) is +0.2711 at $10.20, with 3,968,988 shares traded. RC's current last sale is 78.47% of the target price of $13.
SLM Corporation (SLM) is unchanged at $15.39, with 3,571,026 shares traded. As reported by Zacks, the current mean recommendation for SLM is in the "buy range".
Verizon Communications Inc. (VZ) is +0.0015 at $35.72, with 3,514,943 shares traded. VZ's current last sale is 84.05% of the target price of $42.5.
Amazon.com, Inc. (AMZN) is +0.28 at $123.05, with 2,884,236 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
AT&T Inc. (T) is +0.03 at $15.84, with 2,321,675 shares traded. T's current last sale is 72% of the target price of $22.
Microsoft Corporation (MSFT) is +0.41 at $332.99, with 2,217,566 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
SentinelOne, Inc. (S) is -6.34 at $14.38, with 1,986,882 shares traded. As reported by Zacks, the current mean recommendation for S is in the "buy range".
iShares MSCI ACWI ETF (ACWI) is unchanged at $92.71, with 1,910,949 shares traded. This represents a 22.45% increase from its 52 Week Low.
Alphabet Inc. (GOOGL) is +0.05 at $123.77, with 1,908,706 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Pure Storage, Inc. (PSTG) is +0.06 at $34.34, with 1,351,332 shares traded., following a 52-week high recorded in today's regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.23 at $180.32, with 4,039,771 shares traded. Bank of Hawaii Corporation (BOH) is unchanged at $40.00, with 4,977,634 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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Apple Inc. (AAPL) is +0.23 at $180.32, with 4,039,771 shares traded. , following a 52-week high recorded in today's regular session. SLM Corporation (SLM) is unchanged at $15.39, with 3,571,026 shares traded.
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Apple Inc. (AAPL) is +0.23 at $180.32, with 4,039,771 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. SLM Corporation (SLM) is unchanged at $15.39, with 3,571,026 shares traded.
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Apple Inc. (AAPL) is +0.23 at $180.32, with 4,039,771 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. Amazon.com, Inc. (AMZN) is +0.28 at $123.05, with 2,884,236 shares traded.
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15571.0
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2023-06-01 00:00:00 UTC
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Notable Thursday Option Activity: DEN, ETRN, AAPL
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AAPL
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-den-etrn-aapl
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Denbury Inc (Symbol: DEN), where a total of 10,013 contracts have traded so far, representing approximately 1.0 million underlying shares. That amounts to about 166.3% of DEN's average daily trading volume over the past month of 602,135 shares. Especially high volume was seen for the $90 strike call option expiring June 16, 2023, with 5,001 contracts trading so far today, representing approximately 500,100 underlying shares of DEN. Below is a chart showing DEN's trailing twelve month trading history, with the $90 strike highlighted in orange:
Equitrans Midstream Corp (Symbol: ETRN) options are showing a volume of 126,843 contracts thus far today. That number of contracts represents approximately 12.7 million underlying shares, working out to a sizeable 145.7% of ETRN's average daily trading volume over the past month, of 8.7 million shares. Especially high volume was seen for the $10 strike call option expiring October 20, 2023, with 40,356 contracts trading so far today, representing approximately 4.0 million underlying shares of ETRN. Below is a chart showing ETRN's trailing twelve month trading history, with the $10 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) saw options trading volume of 820,531 contracts, representing approximately 82.1 million underlying shares or approximately 139.7% of AAPL's average daily trading volume over the past month, of 58.7 million shares. Particularly high volume was seen for the $180 strike call option expiring June 02, 2023, with 94,624 contracts trading so far today, representing approximately 9.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange:
For the various different available expirations for DEN options, ETRN options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
PGR MACD
ALTI Historical Stock Prices
Funds Holding YESR
The views and 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 $180 strike call option expiring June 02, 2023, with 94,624 contracts trading so far today, representing approximately 9.5 million underlying shares of AAPL. Below is a chart showing ETRN's trailing twelve month trading history, with the $10 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 820,531 contracts, representing approximately 82.1 million underlying shares or approximately 139.7% of AAPL's average daily trading volume over the past month, of 58.7 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange: For the various different available expirations for DEN options, ETRN options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing ETRN's trailing twelve month trading history, with the $10 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 820,531 contracts, representing approximately 82.1 million underlying shares or approximately 139.7% of AAPL's average daily trading volume over the past month, of 58.7 million shares. Particularly high volume was seen for the $180 strike call option expiring June 02, 2023, with 94,624 contracts trading so far today, representing approximately 9.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange: For the various different available expirations for DEN options, ETRN options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing ETRN's trailing twelve month trading history, with the $10 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 820,531 contracts, representing approximately 82.1 million underlying shares or approximately 139.7% of AAPL's average daily trading volume over the past month, of 58.7 million shares. Particularly high volume was seen for the $180 strike call option expiring June 02, 2023, with 94,624 contracts trading so far today, representing approximately 9.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange: For the various different available expirations for DEN options, ETRN options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing ETRN's trailing twelve month trading history, with the $10 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 820,531 contracts, representing approximately 82.1 million underlying shares or approximately 139.7% of AAPL's average daily trading volume over the past month, of 58.7 million shares. Particularly high volume was seen for the $180 strike call option expiring June 02, 2023, with 94,624 contracts trading so far today, representing approximately 9.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange: For the various different available expirations for DEN options, ETRN options, or AAPL options, visit StockOptionsChannel.com.
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15572.0
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2023-06-01 00:00:00 UTC
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Technology Sector Update for 06/01/2023: WLDS, AAPL, AMZN, IRBT, GOOG, CRM
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-06-01-2023%3A-wlds-aapl-amzn-irbt-goog-crm
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nan
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Tech stocks rose Thursday with the Technology Select Sector SPDR Fund (XLK) gaining 1% and the Philadelphia Semiconductor index up 1.6%.
Wearable Devices (WLDS) said it kicked off commercial manufacturing of its Mudra band for Apple's (AAPL) watch. Wearable Devices shares rose 35%.
Amazon's (AMZN) $1.65 billion planned acquisition of iRobot (IRBT) is facing a preliminary EU merger review, with a July 6 deadline, according to the European Commission's website. Amazon shares rose 1.8%, while iRobot was up 9.3%.
Alphabet's (GOOG) Google invested in startup Runway, which lets users generate video from text descriptions through artificial intelligence, as part of a funding round of $100 million, The Information reported. Alphabet shares were up 0.8%.
Salesforce (CRM) reported an increase in Q1 profit and sales from the prior year's quarter that beat expectations. The software company issued guidance that suggested stagnant growth for the year, and the shares dropped 4.6%
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wearable Devices (WLDS) said it kicked off commercial manufacturing of its Mudra band for Apple's (AAPL) watch. Tech stocks rose Thursday with the Technology Select Sector SPDR Fund (XLK) gaining 1% and the Philadelphia Semiconductor index up 1.6%. Amazon's (AMZN) $1.65 billion planned acquisition of iRobot (IRBT) is facing a preliminary EU merger review, with a July 6 deadline, according to the European Commission's website.
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Wearable Devices (WLDS) said it kicked off commercial manufacturing of its Mudra band for Apple's (AAPL) watch. Wearable Devices shares rose 35%. Amazon shares rose 1.8%, while iRobot was up 9.3%.
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Wearable Devices (WLDS) said it kicked off commercial manufacturing of its Mudra band for Apple's (AAPL) watch. Wearable Devices shares rose 35%. Alphabet's (GOOG) Google invested in startup Runway, which lets users generate video from text descriptions through artificial intelligence, as part of a funding round of $100 million, The Information reported.
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Wearable Devices (WLDS) said it kicked off commercial manufacturing of its Mudra band for Apple's (AAPL) watch. Wearable Devices shares rose 35%. Amazon shares rose 1.8%, while iRobot was up 9.3%.
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2023-06-01 00:00:00 UTC
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5 Reasons to Buy Tesla Now
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AAPL
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https://www.nasdaq.com/articles/5-reasons-to-buy-tesla-now
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nan
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nan
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Over the years, Tesla (TSLA) has shifted from developing niche products for affluent buyers to making affordable electric vehicles for the masses. Though there have been many naysayers along the way, shares have increased by more than 12,000%. Despite a brutal correction in 2022, the EV maker has delivered positive earnings surprises in nine straight quarters, and shares have begun to recover as a result.
Image Source: Zacks Investment Research
Below are five reasons the momentum can continue into year-end:
A Plethora of Catalysts
Price Cuts Sparking Demand: Over the years, Tesla CEO Elon Musk has often said that the EV maker has a supply problem, not a demand problem. However, in early 2023, Musk boldly cut prices to counter rising interest rates that are driving financing costs higher, compete with rivals, and allow several models to be eligible for the hefty $7,500 tax rebates for electric vehicles. (Allowed on EVs under 55,000 and electric SUVs and trucks under $80,000).
Stock Repurchase Plan: Apple (AAPL) is the best example of using buybacks to its advantage. AAPL has the most aggressive share repurchase plan on Wall Street, and the success of the strategy is undeniable. Stock buybacks increase earnings per share (The total number of shares outstanding decreases), create a favorable imbalance between supply and demand (Publics supply of shares is lower), and imply that the stock is undervalued and that it expects future growth. In Tesla’s recent earnings calls, Elon Musk suggested that the company would do a “meaningful buyback” in the fourth quarter of 2023.
A Hummer Replacement? In the early 2000s, General Motors (GM) saw a wave of success with its best-selling Hummer SUV. The eccentric army truck became popular with people from all walks of life who wanted to stand out on the roads. However, during the 2008 financial crisis, the viability of the Hummer came into question. Not only was the economy working against it, but sky-high oil prices also made its gas-guzzling nature unattractive, and the green movement in the United States was beginning and consumers were looking to decrease their carbon emissions. Later this year, Tesla will launch its “Hummer killer,” the obnoxious-looking Cybertruck. The Cybertruck SUV is unlikely to run into the same issues the Hummer did for two reasons. First, unlike in 2008, 2023’s economy is not on the brink of collapse. If you use the Tesla Model Y SUV sales as a precedent, consumers are not only attracted to EVs, but also willing to pay a premium. Second, because the Cybertruck is fully electric, it will attract environmentally conscious consumers.
Full Self-Driving (FSD) Deployment: Tesla continues to refine and improve its AI-powered self-driving program. Already, FSD is much safer than the average driver on the road. In a recent interview, Musk seemed very bullish on FSD’s potential, saying “Tesla will have a Chat-GPT moment later this year.” Musk should know – he was the brains and investment behind Open AI’s Chat-GPT.
Electrifying “Non-Automotive” Growth: Over the last few years, Tesla’s energy generation and storage revenues have been growing at a CAGR of 47%. Tesla’s “Megapack” deployment is expected to rocket higher by 135% in 2023.
Valuation
Price to Sales at Bargain Basement Levels: Because of Tesla’s dominance in the EV realm, innovation, and high growth, it garners a higher valuation than traditional automakers such as Honda Motor Company (HMC) and Ford (F). That said, from a price-to-sales perspective, TSLA is at its most attractive level since the start of the post-pandemic recovery on Wall Street. The last time Tesla’s P/S ratio was at 8 (like it is now), shares increased sevenfold over the next several months.
Image Source: Zacks Investment Research
Financial Efficiency
Return on Equity: Typically, automakers are known for having razor-thin margins. For Tesla, this isn’t the case. Tesla’s return on equity of 27.29% is higher than the S&P 500’s 25.67% over the trailing twelve months.
Image Source: Zacks Investment Research
The “Magic Elixir”
Growth and Liquidity: Large institutional growth investors consider two major factors when selecting stocks: growth and liquidity. Tesla has grown its top and bottom lines at a healthy double-digit rate for years all while having a market cap north of $500 billion – an extremely rare feat.
Image Source: Zacks Investment Research
Long-Term Area of Interest
A Rare Technical Zone: In monster stocks, the 50-week moving average is a long-term level that investors often defend. Tesla has held the zone since its inception in 2010 and is making a rare visit.
Image Source: Zacks Investment Research
Tesla also jumped above its 200-day moving average for the first time since 2022 – another bullish sign.
Image Source: Zacks Investment Research
Conclusion
A plethora of catalysts, a bargain basement valuation, financial efficiency, growth and liquidity, and strong technical action are key reasons why Tesla’s stock should be higher 6-12 months from now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stock Repurchase Plan: Apple (AAPL) is the best example of using buybacks to its advantage. AAPL has the most aggressive share repurchase plan on Wall Street, and the success of the strategy is undeniable. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Stock Repurchase Plan: Apple (AAPL) is the best example of using buybacks to its advantage. AAPL has the most aggressive share repurchase plan on Wall Street, and the success of the strategy is undeniable.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Stock Repurchase Plan: Apple (AAPL) is the best example of using buybacks to its advantage. AAPL has the most aggressive share repurchase plan on Wall Street, and the success of the strategy is undeniable.
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Stock Repurchase Plan: Apple (AAPL) is the best example of using buybacks to its advantage. AAPL has the most aggressive share repurchase plan on Wall Street, and the success of the strategy is undeniable. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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15574.0
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2023-06-01 00:00:00 UTC
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7 Long-Term Stocks to Buy and Hold Until 2033
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AAPL
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https://www.nasdaq.com/articles/7-long-term-stocks-to-buy-and-hold-until-2033
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Let’s take a quick look at stocks for investment until 2033. All are high-quality firms, meaning they’re stable and have the potential to continue growing. Granted, it might be hard to imagine some of these companies getting bigger. But that’s exactly what some detractors surely said a decade ago. The truth is that many of the best stocks of today will be the best stocks in a decade. Strong companies have many ways to maintain their dominance, including these seven.
Stocks for Investment Until 2033: Apple (AAPL)
Source: Vova Shevchuk / Shutterstock.com
Apple (NASDAQ:AAPL) is a no-brainer. Over the last decade alone, it’s become so omnipresent in our way of life that it’s hard to suggest it won’t continue to dominate. Better, its fan base is fervent, which won’t change any time soon. Those simple factors alone suggest that Apple is one of the most obvious long-term stock choices to invest in today. Further, Apple has grown so fast that it’s become very attractive to those determined not to miss out on gains this time around.
Back in 2013, AAPL shares traded at $15. Today they’re worth $175. No one knows precisely where they’ll be in 10 years but this forecast expects prices near $500. Investors should also consider that as Apple continues to mature that it will continue to raise its dividends as well.
Stocks for Investment Until 2033: Microsoft (MSFT)
Source: PX Media / Shutterstock
Big Tech firms, like Microsoft, (NASDAQ:MSFT) have every chance of being just as strong as they are now in 10 years. Thanks in large part to the AI boom.
Microsoft has arguably set itself apart with a massive foray into AI ahead of others. The OpenAI investment gives it a first-mover advantage that will continue to matter. Google (NASDAQ:GOOG, GOOGL) has responded more slowly even as it makes inroads.
The other obvious question here is if AI is the future, why not invest in Nvidia (NASDAQ:NVDA)? Granted, there’s a strong case favoring Nvidia after its Q1 results for sure. It continues to make all the sense in the world, honestly. The only issue is that the chip sector’s cyclicality is very unpredictable making NVDA especially volatile. Therefore, holding for a decade may not be the best strategy.
Stocks for Investment Until 2033: Block (SQ)
Source: Epic Cure / Shutterstock
Fintech stocks including Block (NYSE:SQ) hold massive potential. Over the next decade or so, consumers will continue to demand more modern methods of banking and financial services. Block’s current size, position, and growth mean that it is the best overall fintech stock to hold over that period.
Let’s pull back and consider the landscape here. Boston Consulting Group expects compound annual growth of 17% for U.S. fintech through 2030. Fintech revenues should grow from $245 billion to $1.5 trillion based on data released in early May. The sector is going to make a lot of investors rich in the coming years.
Block is the clear U.S. pick here. Truly risk-forward investors should consider Asian firms where 32% annual growth is expected through 2030. Square continues to be a massive part of Block’s performance. But Cash App has become an even bigger profit-generating machine for the company. Block continues to be positioned to capture that growth in the U.S. market.
Walmart (WMT)
Source: shutterstock.com/CC7
I once read that Walmart (NYSE:WMT) fairly represents the U.S. economy. The idea was simple — Walmart offers a wide cross-section of the goods and services Americans buy. So, I’m sure there’s some truth to that notion.
However, from a growth perspective, Walmart outpaces the U.S. For example, U.S. GDP grew by 1.6% in the first quarter. GDP is a summation of the value of all the goods and services produced so it’s roughly analogous to revenue. And Walmart’s revenues increased by 7.6% in the first quarter so it continues to be a growth machine.
What many might not recognize when discussing Walmart is that the company is fast becoming an eCommerce force. eCommerce grew by 27% domestically and by 25% internationally. Walmart is not content to dominate brick-and-mortar retail. It is going to continue to chip away at Amazon (NASDAQ: AMZN) and other eCommerce-first firms well into the future.
JPMorgan Chase (JPM)
Source: Freedom365day / Shutterstock.com
JPMorgan Chase (NYSE:JPM) has already shown investors the strategy it uses when it shrewdly took advantage of the recent banking collapse. While acting as a bulwark against total collapse, the company simultaneously played big brother and calculating advisor. It pledged funds to prevent a collapse of regional banks, sure. But it also swooped in and took what it wanted from First Republic: Wealthy coastal clientele.
JPMorgan Chase intends to get bigger – it’s already the largest bank in the U.S. – and become higher quality. It is getting bigger and making deeper inroads with the coastal elite. Unsurprisingly that has ruffled feathers and furthered divisions with political lines. In fact, GOP states have sent a letter to the company for religious bias in lending practices.
How does this all relate to JPMorgan Chase’s long-term prospects? It means the bank has become more entrenched with coastal wealth and the political associations therewith. That’s where the money is for the most part with tech in the west and finance in the east. It means the bank should only get stronger.
Applied Materials (AMAT)
Source: AdityaB. Photography/ShutterStock.com
Applied Materials (NASDAQ:AMAT) provides goods in the form of manufacturing equipment and services as software to the chip sector. It’s basically a high-quality stock that runs adjacent to the semiconductor industry and has growth prospects aplenty. The semiconductor industry should reach $1 trillion in revenues by 2030. That assumes 6% to 10% annual growth over the intervening years.
AMAT has been a tremendous growth stock over the last decade, providing 25.75% returns annually. Any investment placed 10 years ago and left untouched would have multiplied in value nearly 10 times. Some of that growth was due to 20% industry-wide growth in 2021 during the chip boom. Such spikes are unpredictable. But even absent that spike AMAT shares grew rapidly in the run-up.
One of my favorite ways to predict if a company will produce gains over time is by comparing returns on invested capital to the weighted average cost of capital (WACC). The greater the discrepancy, the better. Applied Materials’ ROIC is 33.92% and its ROIC is 9.68%.
Verizon (VZ)
Source: Wright Studio/Shutterstock.com
The Verizon (NYSE:VZ) stock has not done well over the last decade. It provided 1.73% returns annually during the last decade. That means $1,000 would have grown to a “massive” $1,137 if left untouched. However, Verizon’s past, hopefully, won’t be its future.
The reason so many investors are keen on Verizon is 5G. The 5G market is expected to grow by roughly 60% annually between 2023 and 2030. Forget the recent past and embrace the potential of the future in other words. That’s what is required of investors in VZ stock over the coming years.
Verizon, though, is doing its part to sweeten that deal. It offers a dividend yielding 7.43% currently that hasn’t been reduced since 2000. That means investors get an actual return that is much higher in reality as long as Verizon continues to pay shareholders to hold onto their stock. Further, VZ stock has roughly 20% upside right now based on its target price.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 Long-Term Stocks to Buy and Hold Until 2033 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks for Investment Until 2033: Apple (AAPL) Source: Vova Shevchuk / Shutterstock.com Apple (NASDAQ:AAPL) is a no-brainer. Back in 2013, AAPL shares traded at $15. Photography/ShutterStock.com Applied Materials (NASDAQ:AMAT) provides goods in the form of manufacturing equipment and services as software to the chip sector.
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Stocks for Investment Until 2033: Apple (AAPL) Source: Vova Shevchuk / Shutterstock.com Apple (NASDAQ:AAPL) is a no-brainer. Back in 2013, AAPL shares traded at $15. Stocks for Investment Until 2033: Microsoft (MSFT) Source: PX Media / Shutterstock Big Tech firms, like Microsoft, (NASDAQ:MSFT) have every chance of being just as strong as they are now in 10 years.
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Stocks for Investment Until 2033: Apple (AAPL) Source: Vova Shevchuk / Shutterstock.com Apple (NASDAQ:AAPL) is a no-brainer. Back in 2013, AAPL shares traded at $15. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Let’s take a quick look at stocks for investment until 2033.
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Stocks for Investment Until 2033: Apple (AAPL) Source: Vova Shevchuk / Shutterstock.com Apple (NASDAQ:AAPL) is a no-brainer. Back in 2013, AAPL shares traded at $15. The truth is that many of the best stocks of today will be the best stocks in a decade.
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15575.0
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2023-06-01 00:00:00 UTC
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Apple denies surveillance claims made by Russia's FSB
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AAPL
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https://www.nasdaq.com/articles/apple-denies-surveillance-claims-made-by-russias-fsb
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nan
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nan
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June 1 (Reuters) - Apple Inc AAPL.O is denying claims made by Russia's Federal Security Service (FSB) that it cooperated with American spies to surveil Russian iPhone users.
In a statement, the company said it has "never worked with any government to insert a backdoor into any apple product and never will."
(Reporting by Raphael Satter Editing by Chris Reese)
((Raphael.Satter@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 1 (Reuters) - Apple Inc AAPL.O is denying claims made by Russia's Federal Security Service (FSB) that it cooperated with American spies to surveil Russian iPhone users. In a statement, the company said it has "never worked with any government to insert a backdoor into any apple product and never will." (Reporting by Raphael Satter Editing by Chris Reese) ((Raphael.Satter@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 1 (Reuters) - Apple Inc AAPL.O is denying claims made by Russia's Federal Security Service (FSB) that it cooperated with American spies to surveil Russian iPhone users. In a statement, the company said it has "never worked with any government to insert a backdoor into any apple product and never will." (Reporting by Raphael Satter Editing by Chris Reese) ((Raphael.Satter@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 1 (Reuters) - Apple Inc AAPL.O is denying claims made by Russia's Federal Security Service (FSB) that it cooperated with American spies to surveil Russian iPhone users. In a statement, the company said it has "never worked with any government to insert a backdoor into any apple product and never will." (Reporting by Raphael Satter Editing by Chris Reese) ((Raphael.Satter@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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June 1 (Reuters) - Apple Inc AAPL.O is denying claims made by Russia's Federal Security Service (FSB) that it cooperated with American spies to surveil Russian iPhone users. In a statement, the company said it has "never worked with any government to insert a backdoor into any apple product and never will." (Reporting by Raphael Satter Editing by Chris Reese) ((Raphael.Satter@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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15576.0
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2023-06-01 00:00:00 UTC
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Why Meta Platforms Stock Was Up Today
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AAPL
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https://www.nasdaq.com/articles/why-meta-platforms-stock-was-up-today-1
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nan
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nan
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What happened
Shares of Meta Platforms (NASDAQ: META) were moving higher today as investors responded favorably to the Facebook parent's launch of its new Quest 3 mixed reality (MR) headset, which comes just days ahead of Apple's (NASDAQ: AAPL) expected reveal of its own MR headset.
As a result, Meta stock was up 3.4% as of 2:08 p.m. ET on Thursday on the news.
So what
In an Instagram post, CEO Mark Zuckerberg announced the highly anticipated device. Priced at $499, the new headset is 40% thinner than the Quest 2 and is said to be more comfortable and offer better display resolution.
The new device will be available this fall, and the company said more details would come at its Connect conference on Sept. 27. Meta also plans to lower the prices of its Quest 2 device.
The announcement seemed to remind investors that VR headsets could finally be ready for prime time, especially as Apple is expected to launch its own device at its Worldwide Developers Conference later this month.
Apple hasn't yet publicly commented on its headset, but a report by Bloomberg said it could carry a price tag around $3,000, clearly targeting a different market from Meta.
Now what
The VR headset market is still small with 8.8 million sold last year, according to IDC, and Meta is the clear leader with nearly 80% of that market. Apple's headset launch will be the first major test of Meta's leadership, but Meta has a clear first-mover advantage here.
Meta stock has soared this year, but shares are starting to look pricey, especially as growth has stalled due to a lull in the advertising market. But if the Quest 3 -- which blends aspects of the physical world with the virtual world -- catches on, the stock could easily have another leg up as investors seem to have been ignoring that emerging business.
10 stocks we like better than Meta Platforms
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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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. Jeremy Bowman has positions in Meta Platforms. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Meta Platforms (NASDAQ: META) were moving higher today as investors responded favorably to the Facebook parent's launch of its new Quest 3 mixed reality (MR) headset, which comes just days ahead of Apple's (NASDAQ: AAPL) expected reveal of its own MR headset. The announcement seemed to remind investors that VR headsets could finally be ready for prime time, especially as Apple is expected to launch its own device at its Worldwide Developers Conference later this month. Apple hasn't yet publicly commented on its headset, but a report by Bloomberg said it could carry a price tag around $3,000, clearly targeting a different market from Meta.
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What happened Shares of Meta Platforms (NASDAQ: META) were moving higher today as investors responded favorably to the Facebook parent's launch of its new Quest 3 mixed reality (MR) headset, which comes just days ahead of Apple's (NASDAQ: AAPL) expected reveal of its own MR headset. See the 10 stocks *Stock Advisor returns as of May 30, 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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What happened Shares of Meta Platforms (NASDAQ: META) were moving higher today as investors responded favorably to the Facebook parent's launch of its new Quest 3 mixed reality (MR) headset, which comes just days ahead of Apple's (NASDAQ: AAPL) expected reveal of its own MR headset. Apple's headset launch will be the first major test of Meta's leadership, but Meta has a clear first-mover advantage here. See the 10 stocks *Stock Advisor returns as of May 30, 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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What happened Shares of Meta Platforms (NASDAQ: META) were moving higher today as investors responded favorably to the Facebook parent's launch of its new Quest 3 mixed reality (MR) headset, which comes just days ahead of Apple's (NASDAQ: AAPL) expected reveal of its own MR headset. The announcement seemed to remind investors that VR headsets could finally be ready for prime time, especially as Apple is expected to launch its own device at its Worldwide Developers Conference later this month. * 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!
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15577.0
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2023-06-01 00:00:00 UTC
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Russia's FSB says U.S. NSA penetrated thousands of Apple phones in spy plot
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AAPL
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https://www.nasdaq.com/articles/russias-fsb-says-u.s.-nsa-penetrated-thousands-of-apple-phones-in-spy-plot
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nan
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nan
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Recasts headline and lead, adds quote and details
MOSCOW, June 1 (Reuters) - Russia's Federal Security Service (FSB) said on Thursday that it had uncovered a U.S. National Security Agency (NSA) plot using previously unknown malware to penetrate specially made backdoor vulnerabilities in Apple phones.
The FSB, the main successor to the Soviet-era KGB, said that several thousand Apple phones had been infected, including those of domestic Russian subscribers.
The Russian spy agency also said telephones belonging to foreign diplomats based in Russia and the former Soviet Union, including those from NATO members, Israel, Syria and China, had been targetted.
"The FSB has uncovered an intelligence action of the American special services using Apple mobile devices," the FSB said in a statement.
Neither Apple nor the NSA immediately responded to emailed requests for comment outside usual U.S. business hours.
The FSB said the plot showed the close relationship between Apple and the National Security Agency, the U.S. agency responsible for U.S. cryptographic and communications intelligence and security.
"The company provides American intelligence agencies with a wide range of opportunities to monitor any persons of interest to the White House and their partners in anti-Russian activities, and their own citizens," the FSB said.
Unusually, the FSB said the plot was uncovered with the help of the Federal Guards Service, the agency which protects Russia's leaders.
(Writing by Guy Faulconbridge Editing by Gareth Jones)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The FSB, the main successor to the Soviet-era KGB, said that several thousand Apple phones had been infected, including those of domestic Russian subscribers. The Russian spy agency also said telephones belonging to foreign diplomats based in Russia and the former Soviet Union, including those from NATO members, Israel, Syria and China, had been targetted. "The company provides American intelligence agencies with a wide range of opportunities to monitor any persons of interest to the White House and their partners in anti-Russian activities, and their own citizens," the FSB said.
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Recasts headline and lead, adds quote and details MOSCOW, June 1 (Reuters) - Russia's Federal Security Service (FSB) said on Thursday that it had uncovered a U.S. National Security Agency (NSA) plot using previously unknown malware to penetrate specially made backdoor vulnerabilities in Apple phones. "The FSB has uncovered an intelligence action of the American special services using Apple mobile devices," the FSB said in a statement. The FSB said the plot showed the close relationship between Apple and the National Security Agency, the U.S. agency responsible for U.S. cryptographic and communications intelligence and security.
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Recasts headline and lead, adds quote and details MOSCOW, June 1 (Reuters) - Russia's Federal Security Service (FSB) said on Thursday that it had uncovered a U.S. National Security Agency (NSA) plot using previously unknown malware to penetrate specially made backdoor vulnerabilities in Apple phones. "The FSB has uncovered an intelligence action of the American special services using Apple mobile devices," the FSB said in a statement. The FSB said the plot showed the close relationship between Apple and the National Security Agency, the U.S. agency responsible for U.S. cryptographic and communications intelligence and security.
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Recasts headline and lead, adds quote and details MOSCOW, June 1 (Reuters) - Russia's Federal Security Service (FSB) said on Thursday that it had uncovered a U.S. National Security Agency (NSA) plot using previously unknown malware to penetrate specially made backdoor vulnerabilities in Apple phones. The FSB, the main successor to the Soviet-era KGB, said that several thousand Apple phones had been infected, including those of domestic Russian subscribers. The Russian spy agency also said telephones belonging to foreign diplomats based in Russia and the former Soviet Union, including those from NATO members, Israel, Syria and China, had been targetted.
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15578.0
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2023-06-01 00:00:00 UTC
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1 Dow Jones Stock to Buy, and 1 to Avoid
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AAPL
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https://www.nasdaq.com/articles/1-dow-jones-stock-to-buy-and-1-to-avoid
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nan
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nan
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Within the Dow Jones Industrial Average (DJINDICES: ^DJI), Intel (NASDAQ: INTC) has some of the best long-term potential. While times are tough for the chip giant right now, its push to become a contract manufacturer of chips for other semiconductor companies could eventually give it a massive new source of revenue.
Apple (NASDAQ: AAPL) is undoubtedly a stronger company today, but it's tougher to get behind the long-term story. Here's why Intel is a buy while Apple is a stock to avoid.
Buy Intel
Demand for highly complex and powerful semiconductor chips will likely grow as the artificial intelligence (AI) market booms, and manufacturing those chips will be a lucrative business. Traditionally, Intel has kept its manufacturing operations to itself, churning out PC and server CPUs. But under CEO Pat Gelsinger, the company is aiming to leverage its expertise and facilities to become a major player in the foundry business.
Intel's long-term growth story hinges on this strategy. Right now, its core PC and server chip businesses are struggling. Demand has cratered and rival AMD is chipping away at its leading market share. Those businesses will eventually recover, and Intel has an aggressive roadmap for each. But what makes Intel a long-term buy is its potential to go toe-to-toe with foundry leader TSMC.
Building a foundry business will take time, but Intel has been laying the foundation. The company is making big investments in new facilities, it's on track to roll out five new process nodes in a four-year span, and it has struck some important deals. Notably, it has teamed with ARM to ensure that its upcoming 18A process will be well-suited for any company looking to manufacture ARM-based chips. That would include Apple and a wide range of other companies.
Intel has faced manufacturing-related delays with its own chips over the years, so it's not unreasonable for investors to be skeptical about its ability to launch its upcoming process nodes on schedule. But Intel appears to have put all that in the rearview mirror. The company's latest server and PC chips are built on its Intel 7 process, the Intel 4 process is manufacturing-ready right now, and the Intel 3 process is still on schedule to be manufacturing-ready by the end of the year.
There's no real point in looking at Intel's recent results and talking about price-to-earnings ratios. The company is posting losses thanks to the currently abysmal market for PCs, and it will take time for demand to normalize. But in the long run, the foundry business could become a major source of revenue for Intel. The foundry market topped $100 billion in 2021, and demand for advanced chips should continue to rise in the coming years.
If you can look past the current turmoil in the PC market, Intel is a great long-term bet.
Avoid Apple
Apple is an amazing company, but its stock just doesn't look like a good deal.
Apple is valued at nearly $2.8 trillion. Based on the average analyst's estimate for 2023 earnings, the stock trades for close to 30 times earnings. Revenue and earnings are currently in decline: Revenue sank 2.5% year over year in its most recent fiscal quarter, and net income dropped 3.4%.
The iPhone remains the most important piece of Apple's empire in more ways than one: It accounted for more than half of total revenue in the most recent quarter, and many of the company's other products and services are ultimately dependent on the iconic device. An Apple Watch requires an iPhone, for example, and subscribing to a service like Apple Fitness+ doesn't make much sense without it.
This is a double-edged sword. On the one hand, the ecosystem around the iPhone makes defections much less likely. If an iPhone user also has an Apple Watch, they're probably not going to switch to an Android phone anytime soon. On the other hand, Apple probably isn't going to introduce a new product that has any chance of disrupting its iPhone business. The stakes are just too high.
Are smartphones the be-all and end-all of personal computing devices? Probably not. Will it be Apple that leads the next personal computing revolution? Also probably not. The iPhone will be an overwhelmingly dominant product until it's suddenly not. That change may be many years away, but it's coming eventually.
It's tough to see how Apple could grow quickly enough to justify its current valuation, even if one could safely assume that the iPhone business will never be derailed. And the market is completely ignoring any chance of Apple being disrupted down the road. For those reasons, it's not unreasonable to stay away from Apple stock.
10 stocks we like better than Intel
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 Intel 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
Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, 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.
The views and 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 undoubtedly a stronger company today, but it's tougher to get behind the long-term story. The company is making big investments in new facilities, it's on track to roll out five new process nodes in a four-year span, and it has struck some important deals. Intel has faced manufacturing-related delays with its own chips over the years, so it's not unreasonable for investors to be skeptical about its ability to launch its upcoming process nodes on schedule.
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Apple (NASDAQ: AAPL) is undoubtedly a stronger company today, but it's tougher to get behind the long-term story. But in the long run, the foundry business could become a major source of revenue for Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Taiwan Semiconductor Manufacturing.
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Apple (NASDAQ: AAPL) is undoubtedly a stronger company today, but it's tougher to get behind the long-term story. Buy Intel Demand for highly complex and powerful semiconductor chips will likely grow as the artificial intelligence (AI) market booms, and manufacturing those chips will be a lucrative business. The company's latest server and PC chips are built on its Intel 7 process, the Intel 4 process is manufacturing-ready right now, and the Intel 3 process is still on schedule to be manufacturing-ready by the end of the year.
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Apple (NASDAQ: AAPL) is undoubtedly a stronger company today, but it's tougher to get behind the long-term story. Buy Intel Demand for highly complex and powerful semiconductor chips will likely grow as the artificial intelligence (AI) market booms, and manufacturing those chips will be a lucrative business. But what makes Intel a long-term buy is its potential to go toe-to-toe with foundry leader TSMC.
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15579.0
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2023-06-01 00:00:00 UTC
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Apple, Microsoft Boost the S&P 500 Amid Tech Comeback
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AAPL
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https://www.nasdaq.com/articles/apple-microsoft-boost-the-sp-500-amid-tech-comeback
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nan
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nan
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With the Nasdaq 100 Index up almost 30% for the year, big tech continues to climb. Apple and Microsoft are two names that are helping big tech's 2023 rally and the S&P 500 Index overall.
The S&P 500 is up over 8% for the year and the index has that duo to thank for its recent gains. With positive earnings and brighter forecasts after last year's bearish run, Apple and Microsoft are now a bigger piece of the S&P 500 pie.
"So far this year, Apple (AAPL) and Microsoft (MSFT) have collectively added over $1 trillion in market value, accounting for nearly half of the S&P 500’s gains," a Yahoo Finance article said.
"The combined weight of these two tech giants in the benchmark reached an all-time high of 14% last month," the article added. "This surge comes on the heels of robust earnings reports, particularly from Microsoft, which ignited a remarkable rally in technology stocks."
Per another Yahoo Finance article, those missing out on the big tech rally are mutual funds. The article noted that the "average fund is 15 percentage points underweight Apple Inc., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Nvidia Corp., Tesla Inc. and Meta Platforms Inc." This is per Goldman Sachs' analysis. “The underweight positions of core and growth funds in the largest tech stocks have been a significant headwind to returns amid this year’s narrow market rally.”
Analyst Response
This is perplexing some analysts, especially given big tech's performance this year. Big tech is successfully sloughing off 2022. Inflation, rate hikes, mass layoffs, and gloomy profit forecasts put downward pressure on the sector.
“For benchmarked investors, being underweight those stocks in a rally is extremely painful because obviously they’re massive in the index,” Raphael Thuin, head of capital markets at Tikehau Capital, said. He continued in a London interview. “A lot of reluctant investors who don’t love this market but needed to get exposed went into tech: it’s a bit of an easy trade.”
3 Opportunities to Capitalize on the Tech Sector Rally
Traders who think the bullish run should continue for the rest of the year can give the Direxion Daily AAPL Bull 1.5X (AAPU) and the Direxion Daily MSFT Bull 1.5X Shares (MSFU) a look. These single stock ETFs give traders added leverage of 50% more exposure to maximize gains.
Additionally, traders can also get more broad exposure to big tech's rally with the Direxion Daily Technology Bull 3X ETF (TECL). With its triple leverage, TECL is certainly not for the weak of heart. The fund seeks daily investment results equal to 300% of the daily performance of the Technology Select Sector Index.
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"So far this year, Apple (AAPL) and Microsoft (MSFT) have collectively added over $1 trillion in market value, accounting for nearly half of the S&P 500’s gains," a Yahoo Finance article said. “A lot of reluctant investors who don’t love this market but needed to get exposed went into tech: it’s a bit of an easy trade.” 3 Opportunities to Capitalize on the Tech Sector Rally Traders who think the bullish run should continue for the rest of the year can give the Direxion Daily AAPL Bull 1.5X (AAPU) and the Direxion Daily MSFT Bull 1.5X Shares (MSFU) a look. The article noted that the "average fund is 15 percentage points underweight Apple Inc., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Nvidia Corp., Tesla Inc. and Meta Platforms Inc." This is per Goldman Sachs' analysis.
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“A lot of reluctant investors who don’t love this market but needed to get exposed went into tech: it’s a bit of an easy trade.” 3 Opportunities to Capitalize on the Tech Sector Rally Traders who think the bullish run should continue for the rest of the year can give the Direxion Daily AAPL Bull 1.5X (AAPU) and the Direxion Daily MSFT Bull 1.5X Shares (MSFU) a look. "So far this year, Apple (AAPL) and Microsoft (MSFT) have collectively added over $1 trillion in market value, accounting for nearly half of the S&P 500’s gains," a Yahoo Finance article said. These single stock ETFs give traders added leverage of 50% more exposure to maximize gains.
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“A lot of reluctant investors who don’t love this market but needed to get exposed went into tech: it’s a bit of an easy trade.” 3 Opportunities to Capitalize on the Tech Sector Rally Traders who think the bullish run should continue for the rest of the year can give the Direxion Daily AAPL Bull 1.5X (AAPU) and the Direxion Daily MSFT Bull 1.5X Shares (MSFU) a look. "So far this year, Apple (AAPL) and Microsoft (MSFT) have collectively added over $1 trillion in market value, accounting for nearly half of the S&P 500’s gains," a Yahoo Finance article said. “The underweight positions of core and growth funds in the largest tech stocks have been a significant headwind to returns amid this year’s narrow market rally.” Analyst Response This is perplexing some analysts, especially given big tech's performance this year.
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“A lot of reluctant investors who don’t love this market but needed to get exposed went into tech: it’s a bit of an easy trade.” 3 Opportunities to Capitalize on the Tech Sector Rally Traders who think the bullish run should continue for the rest of the year can give the Direxion Daily AAPL Bull 1.5X (AAPU) and the Direxion Daily MSFT Bull 1.5X Shares (MSFU) a look. "So far this year, Apple (AAPL) and Microsoft (MSFT) have collectively added over $1 trillion in market value, accounting for nearly half of the S&P 500’s gains," a Yahoo Finance article said. With the Nasdaq 100 Index up almost 30% for the year, big tech continues to climb.
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15580.0
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2023-06-01 00:00:00 UTC
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Internet data growth has not pushed up telcos' network costs, Dutch government says
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AAPL
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https://www.nasdaq.com/articles/internet-data-growth-has-not-pushed-up-telcos-network-costs-dutch-government-says
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nan
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nan
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By Foo Yun Chee
BRUSSELS, June 1 (Reuters) - The Dutch government has stepped up its criticism of a push by EU telecoms operators to get Big Tech to help pay for the rollout of 5G and broadband, saying claims that unchecked data growth has pushed up network costs are not backed by facts.
Instead of a one-size-fits-all approach such as a network fee levied on video streaming companies, it would be better to have a toolbox with different instruments targeting specific issues in different EU countries, it said.
The comments were set out in a position paper shared with the European Commission and EU countries ahead of a meeting of EU telecoms ministers in Luxembourg on Friday.
"In reality, contrary to all these persistent claims, the strong growth of Internet data in the past did not confront large telecom operators with higher network costs," the paper seen by Reuters said.
"This is because network equipment becomes ever more powerful at the same price. By omitting this crucial insight, a problem is suggested that does not exist."
The issue pits Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.M against Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O.
"In reality the total network costs have remained constant despite the consistently high growth over the last decades, whilst the profit margins of European telecom operators have improved significantly over the last decade," the paper said.
"Protecting large telecom operators should not be a goal in itself, as the interests of European consumers and businesses should be leading," the Dutch said, citing the 188 billion euros in the combined revenue of large EU telecoms providers in 2021 versus Netflix's 9 billion euros in annual revenue.
They said direct payments are unjustified as end-users already pay for their access line including network traffic costs while such intervention would affect the functioning of the internet.
The Dutch also slammed calls to antitrust regulators to loosen merger rules to allow the creation of very large pan-European telecommunications champions.
"The synergies for such cross-border mergers to telecom operators are generally considered relatively limited, whilst there don’t seem to be convincing benefits to wider society."
(Reporting by Foo Yun Chee; Editing by Chizu Nomiyama)
((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.M against Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O. "In reality, contrary to all these persistent claims, the strong growth of Internet data in the past did not confront large telecom operators with higher network costs," the paper seen by Reuters said. They said direct payments are unjustified as end-users already pay for their access line including network traffic costs while such intervention would affect the functioning of the internet.
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The issue pits Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.M against Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O. By Foo Yun Chee BRUSSELS, June 1 (Reuters) - The Dutch government has stepped up its criticism of a push by EU telecoms operators to get Big Tech to help pay for the rollout of 5G and broadband, saying claims that unchecked data growth has pushed up network costs are not backed by facts. "In reality, contrary to all these persistent claims, the strong growth of Internet data in the past did not confront large telecom operators with higher network costs," the paper seen by Reuters said.
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The issue pits Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.M against Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O. By Foo Yun Chee BRUSSELS, June 1 (Reuters) - The Dutch government has stepped up its criticism of a push by EU telecoms operators to get Big Tech to help pay for the rollout of 5G and broadband, saying claims that unchecked data growth has pushed up network costs are not backed by facts. "In reality, contrary to all these persistent claims, the strong growth of Internet data in the past did not confront large telecom operators with higher network costs," the paper seen by Reuters said.
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The issue pits Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.M against Alphabet Inc's GOOGL.O Google, Apple Inc AAPL.O, Meta Platforms Inc META.O, Netflix Inc NFLX.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O. By Foo Yun Chee BRUSSELS, June 1 (Reuters) - The Dutch government has stepped up its criticism of a push by EU telecoms operators to get Big Tech to help pay for the rollout of 5G and broadband, saying claims that unchecked data growth has pushed up network costs are not backed by facts. Instead of a one-size-fits-all approach such as a network fee levied on video streaming companies, it would be better to have a toolbox with different instruments targeting specific issues in different EU countries, it said.
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15581.0
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2023-06-01 00:00:00 UTC
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Broadcom (AVGO) Q2 Earnings Today – Here’s What to Expect
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AAPL
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https://www.nasdaq.com/articles/broadcom-avgo-q2-earnings-today-heres-what-to-expect
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nan
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nan
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Semiconductor company Broadcom (NASDAQ:AVGO) is scheduled to report its results for the second quarter of Fiscal 2023 after the stock market closes on June 1. Heading into the Q2 results, several analysts have expressed optimism about the company’s long-term growth potential, fueled by solid demand for artificial intelligence (AI) chips.
Optimism Ahead of Q2 Results
Broadcom shares have rallied nearly 44% year-to-date, thanks to the upbeat outlook issued by chip giants Nvidia (NVDA) and Marvell (MRVL), backed by AI-driven demand. Additionally, investors reacted positively to the recently announced multi-year, multi-billion dollar agreement between Broadcom and Apple (AAPL). Under this deal, Broadcom will develop 5G radio frequency components and cutting-edge wireless connectivity components for Apple.
On Tuesday, JPMorgan analyst Harlan Sur, who has not yet rated Broadcom, stated that he expects the company to benefit significantly from the recent order acceleration from Alphabet (GOOGL) (GOOG) for Broadcom’s TPU AI processors (chips for training generative AI models). Further, Sur believes that Meta (META) could be on track to become Broadcom's next $1 billion AI chip customer over the next two years.
Meanwhile, KeyBanc analyst John Vinh boosted his price target for AVGO stock to $820 from $720 on Tuesday and maintained a Buy rating, citing the favorable impact of the Apple contract renewal and generative AI demand.
Also, Rosenblatt Securities analyst Hans Mosesmann reiterated a Buy rating on AVGO yesterday, with a price target of $775, saying, “Broadcom remains a top semiconductor company that has additional growth vectors from a custom ASIC [application-specific integrated circuits] visibility in the AI domain.”
Mosesmann expects the company’s Q2 FY23 revenue to be in line with both his estimate of $8.70 billion as well as Wall Street's consensus estimate. He expects the company’s adjusted EPS to surpass the consensus estimate. The analyst projects sales and adjusted EPS below $8.77 billion and $10.22, respectively, for Q3 FY23 due to "challenges in accelerated lead times and ongoing rescheduling demands in non-strategic areas."
Overall, Wall Street expects Broadcom’s Q2 FY23 revenue to rise over 7% to $8.70 billion and adjusted EPS to increase nearly 12% to $10.12.
Is Broadcom a Good Stock to Buy?
Wall Street’s Strong Buy consensus rating on Broadcom is based on 15 Buys and three Holds. Following the impressive year-to-date rally, the average price target of $751 suggests a possible downside of 6.5%.
Technical Indicators Ahead of Results
Ahead of the Q1 earnings release, technical indicators reveal that Broadcom is a Buy. According to TipRanks’s easy-to-understand technical tool, AVGO’s 50-Day EMA (exponential moving average) is 643.40, while its price is $803.34, making it a Buy. Further, AVGO’s shorter duration EMA (20-day) also signals an uptrend.
Conclusion
Ahead of the upcoming results, Wall Street is optimistic about Broadcom’s prospects, backed by demand from tech giants for its custom chips and the favorable demand scenario in the generative AI space.
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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Additionally, investors reacted positively to the recently announced multi-year, multi-billion dollar agreement between Broadcom and Apple (AAPL). Heading into the Q2 results, several analysts have expressed optimism about the company’s long-term growth potential, fueled by solid demand for artificial intelligence (AI) chips. Optimism Ahead of Q2 Results Broadcom shares have rallied nearly 44% year-to-date, thanks to the upbeat outlook issued by chip giants Nvidia (NVDA) and Marvell (MRVL), backed by AI-driven demand.
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Additionally, investors reacted positively to the recently announced multi-year, multi-billion dollar agreement between Broadcom and Apple (AAPL). Meanwhile, KeyBanc analyst John Vinh boosted his price target for AVGO stock to $820 from $720 on Tuesday and maintained a Buy rating, citing the favorable impact of the Apple contract renewal and generative AI demand. Also, Rosenblatt Securities analyst Hans Mosesmann reiterated a Buy rating on AVGO yesterday, with a price target of $775, saying, “Broadcom remains a top semiconductor company that has additional growth vectors from a custom ASIC [application-specific integrated circuits] visibility in the AI domain.” Mosesmann expects the company’s Q2 FY23 revenue to be in line with both his estimate of $8.70 billion as well as Wall Street's consensus estimate.
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Additionally, investors reacted positively to the recently announced multi-year, multi-billion dollar agreement between Broadcom and Apple (AAPL). On Tuesday, JPMorgan analyst Harlan Sur, who has not yet rated Broadcom, stated that he expects the company to benefit significantly from the recent order acceleration from Alphabet (GOOGL) (GOOG) for Broadcom’s TPU AI processors (chips for training generative AI models). Also, Rosenblatt Securities analyst Hans Mosesmann reiterated a Buy rating on AVGO yesterday, with a price target of $775, saying, “Broadcom remains a top semiconductor company that has additional growth vectors from a custom ASIC [application-specific integrated circuits] visibility in the AI domain.” Mosesmann expects the company’s Q2 FY23 revenue to be in line with both his estimate of $8.70 billion as well as Wall Street's consensus estimate.
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Additionally, investors reacted positively to the recently announced multi-year, multi-billion dollar agreement between Broadcom and Apple (AAPL). Meanwhile, KeyBanc analyst John Vinh boosted his price target for AVGO stock to $820 from $720 on Tuesday and maintained a Buy rating, citing the favorable impact of the Apple contract renewal and generative AI demand. According to TipRanks’s easy-to-understand technical tool, AVGO’s 50-Day EMA (exponential moving average) is 643.40, while its price is $803.34, making it a Buy.
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15582.0
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2023-06-01 00:00:00 UTC
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Russia's FSB says discovered U.S. intelligence operation using Apple phones
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AAPL
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https://www.nasdaq.com/articles/russias-fsb-says-discovered-u.s.-intelligence-operation-using-apple-phones
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nan
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nan
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MOSCOW, June 1 (Reuters) - Russia's Federal Security Service (FSB) said on Thursday that it had discovered a U.S. intelligence operation using Apple phones.
In a statement, the FSB said that several thousand Apple phones had been "infected" as part of the operation.
Apple did not immediately respond to an emailed request for comment.
(Reporting by Reuters; editing by Guy Faulconbridge)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MOSCOW, June 1 (Reuters) - Russia's Federal Security Service (FSB) said on Thursday that it had discovered a U.S. intelligence operation using Apple phones. In a statement, the FSB said that several thousand Apple phones had been "infected" as part of the operation. Apple did not immediately respond to an emailed request for comment.
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MOSCOW, June 1 (Reuters) - Russia's Federal Security Service (FSB) said on Thursday that it had discovered a U.S. intelligence operation using Apple phones. In a statement, the FSB said that several thousand Apple phones had been "infected" as part of the operation. (Reporting by Reuters; editing by Guy Faulconbridge) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MOSCOW, June 1 (Reuters) - Russia's Federal Security Service (FSB) said on Thursday that it had discovered a U.S. intelligence operation using Apple phones. In a statement, the FSB said that several thousand Apple phones had been "infected" as part of the operation. (Reporting by Reuters; editing by Guy Faulconbridge) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MOSCOW, June 1 (Reuters) - Russia's Federal Security Service (FSB) said on Thursday that it had discovered a U.S. intelligence operation using Apple phones. In a statement, the FSB said that several thousand Apple phones had been "infected" as part of the operation. Apple did not immediately respond to an emailed request for comment.
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15583.0
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2023-06-01 00:00:00 UTC
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Time to Buy These "Trillion Dollar" Stocks for More Upside
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AAPL
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https://www.nasdaq.com/articles/time-to-buy-these-trillion-dollar-stocks-for-more-upside
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nan
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nan
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Achieving a trillion-dollar market cap is a rare milestone with Nvidia (NVDA) momentarily reaching the upper-echelon task this week. Used as an indicator of a company’s current value, market capitalization is calculated by multiplying the current share price by the number of shares outstanding.
Driven by strong demand for its artificial intelligence (AI) chips, Nvidia joined the likes of Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA) as other publicly traded companies to have hit a trillion-dollar market cap on the U.S. stock exchanges.
Notably, Apple was the first company to reach the milestone back in 2018. Naturally, investors expect that stocks with such value will continue to edge out large returns with Nvidia leading the way so far this year. Along with Nvidia, Meta Platforms currently stands out among this rare list with both stocks sporting a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Market Cap
Nvidia hit a trillion-dollar market cap on Tuesday after reaching 52-week highs of $419.38 per share. Currently trading at $378 a share, Nvidia has a market cap of $990.74 billion at the moment. As for Meta, the company hit a trillion-dollar market cap in June 2021 and is currently valued at $672.77 billion with shares trading at $264.
As of now, four companies retain their trillion-dollar status with Apple, Alphabet, Amazon, and Microsoft all maintaining their 12-digit valuation. With that being said, rising earnings estimate revisions make Nvidia and Meta very intriguing at the moment as this is often a main catalyst in the upward price movement of a stock.
Earnings Estimate Revisions
Nvidia’s current fiscal 2024 earnings are now projected to climb 48% at $4.96 per share compared to EPS of $3.34 in FY23. Fiscal 2025 earnings are expected to rise another 31% at $6.50 per share.
Notably, earnings estimate revisions have gone up in the last week with Nvidia beating its Q1 top and bottom line expectations last Wednesday by 10% and 18% respectively. In correlation, fiscal 2024 earnings estimates have risen 9% over the last seven days with FY25 EPS estimates up 5%.
Image Source: Zacks Investment Research
Turing to Meta, earnings estimates have continued to trend higher over the last two months with the company exceeding its Q1 top and bottom line expectations in late April. As shown in the chart below, Meta’s FY23 EPS estimates are closer to where they were a year ago before inflationary concerns begin to largely disrupt the earnings outlook for most companies.
This has contributed to and sustained this year’s rally. To that point, Meta’s FY23 EPS estimates have now soared 15% over the last 60 days with FY24 earnings estimates up 14%. Meta’s earnings are now expected to rise 22% this year and climb another 23% in FY24 at $14.80 per share.
Image Source: Zacks Investment Research
P/E Valuation
With large market caps and such extensive rallies this year, monitoring the valuation of Nvidia and Meta stock will be important.
In this regard, Meta stock is more attractive relative to its past. Trading at 21.8X forward earnings, META stock is close to the S&P 500’s 19.6X and nicely beneath its industry average of 39.6X. Furthermore, META still trades 79% below its decade high of 105.1X and at a 26% discount to the median of 29.4X.
Image Source: Zacks Investment Research
Nvidia’s P/E valuation is not as compelling at 84X forward earnings but optimism surrounding the company’s AI capabilities may warrant a premium. Nvidia does trade 29% below its decade-long high of 118.6X but above the median of 38.6X.
Nvidia stock also trades above its industry and the bencmark's average of 19.6X but the company is the clear-cut leader in its space after becoming the first chipmaker to hit a trillion-dollar market cap.
Bottom Line
Nvidia and Meta’s P/E valuations are not as far stretched as one might think considering their impressive rallies this year. Plus, the rising earnings estimate revisions offer further support and it would be no surprise if this propels shares of NVDA and META higher.
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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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Driven by strong demand for its artificial intelligence (AI) chips, Nvidia joined the likes of Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA) as other publicly traded companies to have hit a trillion-dollar market cap on the U.S. stock exchanges. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Turing to Meta, earnings estimates have continued to trend higher over the last two months with the company exceeding its Q1 top and bottom line expectations in late April.
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Driven by strong demand for its artificial intelligence (AI) chips, Nvidia joined the likes of Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA) as other publicly traded companies to have hit a trillion-dollar market cap on the U.S. stock exchanges. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Market Cap Nvidia hit a trillion-dollar market cap on Tuesday after reaching 52-week highs of $419.38 per share.
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Driven by strong demand for its artificial intelligence (AI) chips, Nvidia joined the likes of Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA) as other publicly traded companies to have hit a trillion-dollar market cap on the U.S. stock exchanges. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research P/E Valuation With large market caps and such extensive rallies this year, monitoring the valuation of Nvidia and Meta stock will be important.
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Driven by strong demand for its artificial intelligence (AI) chips, Nvidia joined the likes of Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA) as other publicly traded companies to have hit a trillion-dollar market cap on the U.S. stock exchanges. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Market Cap Nvidia hit a trillion-dollar market cap on Tuesday after reaching 52-week highs of $419.38 per share.
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15584.0
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2023-06-01 00:00:00 UTC
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Should iShares Core S&P 500 ETF (IVV) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-core-sp-500-etf-ivv-be-on-your-investing-radar-6
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nan
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nan
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Launched on 05/15/2000, the iShares Core S&P 500 ETF (IVV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $310.55 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.56%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 27.24% of total assets under management.
Performance and Risk
IVV seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has gained about 9.60% so far this year and is up about 2.68% in the last one year (as of 06/01/2023). In the past 52-week period, it has traded between $357.98 and $432.04.
The ETF has a beta of 1 and standard deviation of 18.71% for the trailing three-year period, making it a medium risk choice in the space. With about 507 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IVV is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF (SPY) track the same index. While Vanguard S&P 500 ETF has $294.70 billion in assets, SPDR S&P 500 ETF has $392.96 billion. VOO has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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iShares Core S&P 500 ETF (IVV): 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
Vanguard S&P 500 ETF (VOO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Launched on 05/15/2000, the iShares Core S&P 500 ETF (IVV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). It has amassed assets over $310.55 billion, making it 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 Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Core S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Launched on 05/15/2000, the iShares Core S&P 500 ETF (IVV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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15585.0
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2023-06-01 00:00:00 UTC
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Should iShares Russell Top 200 Growth ETF (IWY) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-growth-etf-iwy-be-on-your-investing-radar-8
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nan
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $6.59 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies 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.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.74%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 47.70% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 55.49% of total assets under management.
Performance and Risk
IWY seeks to match the performance of the Russell Top 200 Growth Index before fees and expenses. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market. It is a subset of the Russell Top 200 Index issuers with relatively higher price-to-book ratios and higher forecasted growth, which measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF return is roughly 23.83% so far this year and it's up approximately 10.12% in the last one year (as of 06/01/2023). In the past 52-week period, it has traded between $117.55 and $149.82.
The ETF has a beta of 1.07 and standard deviation of 23.46% for the trailing three-year period, making it a medium risk choice in the space. With about 118 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 Growth 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, IWY is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $86.79 billion in assets, Invesco QQQ has $185.95 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $6.59 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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15586.0
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2023-06-01 00:00:00 UTC
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Foxconn to make iPhones in India's Karnataka by next April -state govt
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AAPL
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https://www.nasdaq.com/articles/foxconn-to-make-iphones-in-indias-karnataka-by-next-april-state-govt
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nan
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Adds details, background
BENGALURU, June 1 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW will start manufacturing iPhones in the southern Indian state of Karnataka by April 2024, the state government said on Thursday.
The land for the factory would be handed over to Foxconn by July 1, the government said, adding that the project, valued at 130 billion rupees ($1.59 billion), is expected to create around 50,000 jobs.
Foxconn, the world's largest contract electronics manufacturer, has set a target of manufacturing 20 million iPhones a year at the plant in Devanahalli, on the outskirts of state capital and tech hub Bengaluru.
Apple has been shifting production away from China after the country's strict COVID-related restrictions disrupted the production of new iPhones and other devices in the country. The tech giant is also looking to avoid a hit to its business due to tensions between Beijing and Washington.
A spokesperson for Foxconn did not immediately respond to a request for comment from Reuters.
($1 = 81.7800 Indian rupees)
(Reporting by Munsif Vengattil Writing by Shilpa Jamkhandikar; Editing by David Goodman and Kim Coghill)
((shilpa.jamkhandikar@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, background BENGALURU, June 1 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW will start manufacturing iPhones in the southern Indian state of Karnataka by April 2024, the state government said on Thursday. The tech giant is also looking to avoid a hit to its business due to tensions between Beijing and Washington. ($1 = 81.7800 Indian rupees) (Reporting by Munsif Vengattil Writing by Shilpa Jamkhandikar; Editing by David Goodman and Kim Coghill) ((shilpa.jamkhandikar@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, background BENGALURU, June 1 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW will start manufacturing iPhones in the southern Indian state of Karnataka by April 2024, the state government said on Thursday. The land for the factory would be handed over to Foxconn by July 1, the government said, adding that the project, valued at 130 billion rupees ($1.59 billion), is expected to create around 50,000 jobs. ($1 = 81.7800 Indian rupees) (Reporting by Munsif Vengattil Writing by Shilpa Jamkhandikar; Editing by David Goodman and Kim Coghill) ((shilpa.jamkhandikar@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, background BENGALURU, June 1 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW will start manufacturing iPhones in the southern Indian state of Karnataka by April 2024, the state government said on Thursday. Foxconn, the world's largest contract electronics manufacturer, has set a target of manufacturing 20 million iPhones a year at the plant in Devanahalli, on the outskirts of state capital and tech hub Bengaluru. ($1 = 81.7800 Indian rupees) (Reporting by Munsif Vengattil Writing by Shilpa Jamkhandikar; Editing by David Goodman and Kim Coghill) ((shilpa.jamkhandikar@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, background BENGALURU, June 1 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW will start manufacturing iPhones in the southern Indian state of Karnataka by April 2024, the state government said on Thursday. The land for the factory would be handed over to Foxconn by July 1, the government said, adding that the project, valued at 130 billion rupees ($1.59 billion), is expected to create around 50,000 jobs. Foxconn, the world's largest contract electronics manufacturer, has set a target of manufacturing 20 million iPhones a year at the plant in Devanahalli, on the outskirts of state capital and tech hub Bengaluru.
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15587.0
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2023-06-01 00:00:00 UTC
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Is This Nvidia's iPhone Moment?
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AAPL
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https://www.nasdaq.com/articles/is-this-nvidias-iphone-moment
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nan
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nan
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This year will likely go down in history as the year artificial intelligence (AI) came of age. AI exploded onto the scene with the debut of ChatGPT, which seemed to mark a paradigm shift for generative AI, which can generate original content. Not only can these next-gen systems engage in human-like conversations, but they can also leverage large amounts of data to create music and illustrations, summarize content, and even write computer code.
In a February speech at the Haas School of Business, Nvidia (NASDAQ: NVDA) CEO Jensen Huang made a startling pronouncement in which he declared that the introduction of ChatGPT was the "iPhone moment" of AI. At the time, many viewed the remark as hyperbole.
In the ensuing months, however, the adoption of AI has accelerated, and the speed at which businesses have embraced the technology makes Huang's declaration seem prophetic. And Nvidia is well-positioned to reap the rewards of this ongoing shift.
Image source: Getty Images.
Broad adoption of AI
"When was the last time we saw a piece of technology that is so versatile that it can solve problems and surprise people in so many ways so often?" Huang asked.
"So, the fact that you have this tool that can do all these different things is really surprising a lot of people around the world," Huang said. "Now for a lot of people who have been working on this, we have been waiting for this moment. This is the iPhone moment of artificial intelligence," he said, referring to the introduction of Apple's (NASDAQ: AAPL) flagship device. "This is the time when all those ideas within mobile computing and all that, it all came together in a product that everyone just kinda [said], I see it," he noted.
Huang could just as easily have been referring to Nvidia itself. As the primary provider of processors used in AI, Nvidia could be having its own iPhone moment.
The original iPhone moment
The debut of the original iPhone in 2007 was revolutionary in several ways. The device was the first modern smartphone, incorporating not only phone functionality and the musical capabilities of the iPod, but also internet connectivity -- all operated by a convenient touchscreen.
There was another thing that made the iPhone a game changer. Apple controlled both the hardware and the software on the device, allowing them to work together seamlessly. By ensuring the quality of all aspects of the finished product, Apple became the gold standard for smartphones. Since the debut of its iconic device, Apple stock has soared nearly 4,000%.
Nvidia is taking a similar approach to AI. And that strategy has been wildly successful so far.
Paving the way for success
Nvidia has long cornered the market on the chips used for AI. These graphics processing units (GPUs) provided the final piece of the technological puzzle needed to take these algorithms to the next level. GPUs possess the ability to multi-task, called parallel processing. This allows them to perform multiple complex mathematical calculations simultaneously, which helped render lifelike images in video games. Early on, researchers concluded this also makes them the ideal choice for the unique demands of AI.
Over the past few years, Nvidia's focus on cloud computing, hyperscale computing, and AI has been front and center. Rather than focus solely on the hardware, Nvidia increasingly offered packages that included both semiconductors and software, which worked seamlessly together, acting as turnkey solutions for businesses wanting to integrate AI into their operations.
So when the world pivoted to AI, Nvidia was ready.
Explosive forecast
Last week, when Nvidia released the results of its fiscal 2024 first quarter (ended April 30), the stunning demand for AI caught investors off guard. The company reported record-setting performance from its data center segment, attributed to "growing demand for generative AI and large language models," according to CFO Colette Kress.
However, what really moved the needle was Nvidia's forecast. The company said it expects second-quarter revenue of $11 billion, which would represent growth of 64% year over year and 53% sequentially. If the company reaches this audacious goal, it will also represent Nvidia's best quarter ever.
To buy, or not to buy?
In the face of this jaw-dropping guidance, Nvidia has been squarely in rally mode, pushing its market cap (briefly) above $1 trillion for the first time on Tuesday. However, this creates a conundrum for investors.
Nvidia currently trades for a whopping 208 times trailing-12-months earnings and 39 times sales. That's a lot of growth baked into the share price. Many will view this as too steep a price to pay.
Given the potential size of the market, though, the stock may not be as expensive as it appears at first glance. Management consulting firm McKinsey conservatively estimates the market opportunity for AI to be in a range of $3.5 trillion to $5.8 trillion annually, while Ark Investment Management believes it will be worth roughly $14 trillion by 2030.
If either of these estimates are anywhere close to reality, Nvidia's price could be much higher three to five years from now. Between now and then, there's a much greater likelihood for volatility -- so buyer beware.
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Danny Vena has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple 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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This is the iPhone moment of artificial intelligence," he said, referring to the introduction of Apple's (NASDAQ: AAPL) flagship device. In a February speech at the Haas School of Business, Nvidia (NASDAQ: NVDA) CEO Jensen Huang made a startling pronouncement in which he declared that the introduction of ChatGPT was the "iPhone moment" of AI. Rather than focus solely on the hardware, Nvidia increasingly offered packages that included both semiconductors and software, which worked seamlessly together, acting as turnkey solutions for businesses wanting to integrate AI into their operations.
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This is the iPhone moment of artificial intelligence," he said, referring to the introduction of Apple's (NASDAQ: AAPL) flagship device. This year will likely go down in history as the year artificial intelligence (AI) came of age. AI exploded onto the scene with the debut of ChatGPT, which seemed to mark a paradigm shift for generative AI, which can generate original content.
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This is the iPhone moment of artificial intelligence," he said, referring to the introduction of Apple's (NASDAQ: AAPL) flagship device. In a February speech at the Haas School of Business, Nvidia (NASDAQ: NVDA) CEO Jensen Huang made a startling pronouncement in which he declared that the introduction of ChatGPT was the "iPhone moment" of AI. As the primary provider of processors used in AI, Nvidia could be having its own iPhone moment.
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This is the iPhone moment of artificial intelligence," he said, referring to the introduction of Apple's (NASDAQ: AAPL) flagship device. "So, the fact that you have this tool that can do all these different things is really surprising a lot of people around the world," Huang said. That's right -- they think these 10 stocks are even better buys.
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15588.0
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2023-05-31 00:00:00 UTC
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3 Innovative Growth Stocks to Buy for Next-Gen Profits
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AAPL
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https://www.nasdaq.com/articles/3-innovative-growth-stocks-to-buy-for-next-gen-profits
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In a globally synchronized world, there are big opportunities across sectors. This has intensified competition as companies look to grab a share of the pie. It eventually boils down to the survival of the fittest. In the context of corporations, the innovation factor determines the “fittest.” Therefore, this column focuses on innovative growth stocks for future profits.
It goes without saying that the basic screening criteria are to investigate companies with high investment in research and development. I personally like entities where R&D investment translates into a significant upside in cash flows. This provides the company with an additional buffer to accelerate investment in innovation.
In a dynamic world from a technology perspective, I believe that investors should look at these three next-gen profit stocks to buy. Over a period of five years, these stocks are poised to deliver multibagger returns.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Regarding innovation-driven growth, it’s difficult to challenge Apple (NASDAQ:AAPL). Over the year, the company has surprised investors and consumers with products that have set the highest standards.
It’s interesting to note that AAPL stock has been silently trending higher, with returns of 40% for year-to-date 2023. If we understand the markets’ language, exciting products are in the pipeline. According to speculative news, five new Apple products will be launched in 2023. This includes iPhone 15 and mixed reality headsets.
Other products potentially in the pipeline include Apple cars and foldable iPhones. The important point is that Apple generates well over $100 billion in operating cash flows annually. Therefore, there is ample flexibility to invest heavily in innovation. This includes the acquisition of innovative start-ups.
Apple is already inching toward $3 trillion in market valuation. I would not be surprised if Apple is a $5 trillion company by 2025.
Nvidia (NVDA)
Source: sdx15 / Shutterstock.com
It’s been a remarkable year for Nvidia (NASDAQ:NVDA) stock investors. NVDA stock has skyrocketed by 172% for year-to-date.
Of course, I would wait before taking any fresh exposure to the stock. However, Nvidia is among the innovative growth stocks for future profits. Currently, the company is inching towards a $1 trillion market valuation. I would bet on the company commanding a $3 trillion valuation in the next five years.
For Q1 2024, Nvidia reported 114% growth in the automotive segment on a year-on-year basis to $296 million. The contribution of this segment is small compared to the total revenue. However, the segment will be big in the next five years with AI automotive solutions for EVs and traditional OEMs. It’s worth noting that the NVIDIA DRIVE operating system has received safety certification from TUV SUD.
In the Data Center segment, Nvidia believes that enterprise customers moving to a cloud-first approach will benefit the company. Talking about an innovation-driven approach, Nvidia has 7,500 patents or pending applications globally.
Another major point to note is that the company’s solutions cater to industries that include automotive, healthcare, robotics, gaming, and AI factories. According to Nvidia, the market opportunity is $1 trillion.
Merck (MRK)
Source: Atmosphere1 / Shutterstock.com
At the beginning of 2020, Moderna’s (NASDAQ:MRNA) stock was trading below $20. MRNA stock surged to highs of $485 in August 2021. Developing the vaccine against covid-19 was a game changer for the pharmaceutical company. However, it was well before 2020 that Moderna invested in mRNA vaccine research. I believe that investors should hold a pharmaceutical stock with heavy investment in R&D.
One company that looks attractive is Merck (NYSE:MRK). From a valuation perspective, MRK stock looks attractive at a forward price-earnings ratio of 15.9. The stock also offers a dividend yield of 2.63%.
From the research perspective, Merck invested $13.5 billion in R&D in 2022. The company has 30 programs in phase three and 80 in phase two of trials. As new drugs are commercialized, there is visibility for growth and cash flow upside.
In April, Merck closed the acquisition of Prometheus Biosciences (NASDAQ:RXDX) for an equity consideration of $10.8 billion. The acquisition boosts the company’s pipeline in the immunology segment.
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 Innovative Growth Stocks to Buy for Next-Gen Profits appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Regarding innovation-driven growth, it’s difficult to challenge Apple (NASDAQ:AAPL). It’s interesting to note that AAPL stock has been silently trending higher, with returns of 40% for year-to-date 2023. In the Data Center segment, Nvidia believes that enterprise customers moving to a cloud-first approach will benefit the company.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Regarding innovation-driven growth, it’s difficult to challenge Apple (NASDAQ:AAPL). It’s interesting to note that AAPL stock has been silently trending higher, with returns of 40% for year-to-date 2023. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In a globally synchronized world, there are big opportunities across sectors.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Regarding innovation-driven growth, it’s difficult to challenge Apple (NASDAQ:AAPL). It’s interesting to note that AAPL stock has been silently trending higher, with returns of 40% for year-to-date 2023. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In a globally synchronized world, there are big opportunities across sectors.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Regarding innovation-driven growth, it’s difficult to challenge Apple (NASDAQ:AAPL). It’s interesting to note that AAPL stock has been silently trending higher, with returns of 40% for year-to-date 2023. This includes the acquisition of innovative start-ups.
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15589.0
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2023-05-31 00:00:00 UTC
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Walmart beats all nine proposals at shareholder meeting
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AAPL
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https://www.nasdaq.com/articles/walmart-beats-all-nine-proposals-at-shareholder-meeting
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nan
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nan
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By Siddharth Cavale
BENTONVILLE, Ark., May 31 (Reuters) - Walmart WMT.N investors voted against all nine shareholder-led proposals during the retail giant's annual meeting on Wednesday, a preliminary tally by the company showed.
Shareholders were asked to vote on a number of issues including revealing its exposure to China and conducting an independent review of its safety practices related to gun violence. A proposal presented at the meeting also urged Walmart to disclose its funding to conservative political groups.
The shareholder-led proposal on gun violence, proposed by Walmart worker Cynthia Murray, received nearly 24% of the shares that were voted, the highest among all the other shareholder resolutions, a tally of the results showed.
"The results of today's Walmart shareholder meeting prove that investors are also concerned about our safety at work, and my fellow Walmart workers and I will continue to fight for a Workplace Safety & Violence Review," Murray said in a statement to Reuters.
"Every person deserves to be safe at work, and every employer has an obligation to protect employees and customers from harm," she said.
The National Legal and Policy Center, a conservative group, which pushed Walmart to disclose its exposure to China, received just 1.3% of the shares voted. About 90.8% of all outstanding shares were represented at the meeting, Walmart said.
Walmart shareholders also voted in favor of company-led proposals including electing each of its 11 directors for a one-year term and compensation for its chief executive and other top leaders for 2023, the company said.
Proposals needed 51% of shareholder votes to win, which Walmart would adopt if passed. Walmart will provide the official voting results for each item in a filing with the Securities and Exchange Commission.
(Reporting by Siddharth Cavale in Bentonville, Arkansas; Additional reporting by Deborah Sophia in Bengaluru; Editing by Sonali Paul)
((siddharth.cavale@thomsonreuters.com; Cell: +1 646-288-4330))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Siddharth Cavale BENTONVILLE, Ark., May 31 (Reuters) - Walmart WMT.N investors voted against all nine shareholder-led proposals during the retail giant's annual meeting on Wednesday, a preliminary tally by the company showed. Shareholders were asked to vote on a number of issues including revealing its exposure to China and conducting an independent review of its safety practices related to gun violence. Walmart shareholders also voted in favor of company-led proposals including electing each of its 11 directors for a one-year term and compensation for its chief executive and other top leaders for 2023, the company said.
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By Siddharth Cavale BENTONVILLE, Ark., May 31 (Reuters) - Walmart WMT.N investors voted against all nine shareholder-led proposals during the retail giant's annual meeting on Wednesday, a preliminary tally by the company showed. The shareholder-led proposal on gun violence, proposed by Walmart worker Cynthia Murray, received nearly 24% of the shares that were voted, the highest among all the other shareholder resolutions, a tally of the results showed. The National Legal and Policy Center, a conservative group, which pushed Walmart to disclose its exposure to China, received just 1.3% of the shares voted.
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By Siddharth Cavale BENTONVILLE, Ark., May 31 (Reuters) - Walmart WMT.N investors voted against all nine shareholder-led proposals during the retail giant's annual meeting on Wednesday, a preliminary tally by the company showed. The shareholder-led proposal on gun violence, proposed by Walmart worker Cynthia Murray, received nearly 24% of the shares that were voted, the highest among all the other shareholder resolutions, a tally of the results showed. "The results of today's Walmart shareholder meeting prove that investors are also concerned about our safety at work, and my fellow Walmart workers and I will continue to fight for a Workplace Safety & Violence Review," Murray said in a statement to Reuters.
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By Siddharth Cavale BENTONVILLE, Ark., May 31 (Reuters) - Walmart WMT.N investors voted against all nine shareholder-led proposals during the retail giant's annual meeting on Wednesday, a preliminary tally by the company showed. The shareholder-led proposal on gun violence, proposed by Walmart worker Cynthia Murray, received nearly 24% of the shares that were voted, the highest among all the other shareholder resolutions, a tally of the results showed. The National Legal and Policy Center, a conservative group, which pushed Walmart to disclose its exposure to China, received just 1.3% of the shares voted.
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15590.0
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2023-05-31 00:00:00 UTC
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COLUMN-AI craze leaves crypto for dust: McGeever
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AAPL
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https://www.nasdaq.com/articles/column-ai-craze-leaves-crypto-for-dust%3A-mcgeever
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nan
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nan
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By Jamie McGeever
ORLANDO, Florida, May 31 (Reuters) - Bitcoin is undeniably having a great year, but is losing momentum just when it might have been expected to go up a gear.
Its traditionally strong and positive correlation with technology stocks, in particular the "mega tech" and growth stocks that have exploded higher in recent weeks, has completely broken down.
Bitcoin's BTC=BTSP rolling 30-day correlation with the Nasdaq .IXIC last week flipped to its most negative in six months, and its correlation with the NYSE FANG+TM index of mega tech and growth equity .NYFANG plunged to its most negative in nearly four years.
The recent burst of investor optimism that the boom in artificial intelligence (AI), ChatGPT software and advanced microchip technology will be transformational for economies is driving the surge in Big Tech.
Crypto might have been expected to ride on the coat tails, but hasn't. Bitcoin peaked above $31,000 in mid-April for a year-to-date gain of almost 90%, but is now trading back at $27,000, paring its 2023 gains to around 63%.
As billions of dollars have flooded into Big Tech over the last six weeks, bitcoin trading volumes and demand have slumped.
Matt Weller, analyst at StoneX, says there just doesn't seem to be a compelling reason to buy bitcoin right now and the AI boom still has legs.
"ChatGPT is what crypto wants to be – an instant-use, mass-market product with huge adoption rates," he said, adding: "Crypto has lost its luster amid this gold rush. Or should I say, AI rush."
THE MAGNIFICENT SEVEN
Bitcoin, crypto assets more broadly and technology stocks have traditionally moved in tandem on the assumption that they will all be fundamental parts of the disruptive, growth-generating and efficient economies of the future.
Weller reckons the divergence really widened on April 25 when Microsoft MSFT.O was the first of the U.S. tech giants to report forecast-beating quarterly results.
Since April 25, the NYSE FANG+TM index of big tech and growth stocks has surged 24%, nearly three times the broader Nasdaq. Bitcoin, on the other hand, is down around 1% in more erratic trading.
Whatever is buoying mega tech is not floating bitcoin's boat.
The AI boom has gathered momentum despite the rise in bond yields and discount rates. This has highlighted bitcoin's underperformance and strongly suggests that outside the rarified world of Big Tech, investors are much more discerning.
Indeed, just seven U.S. tech stocks have driven all of the positive S&P 500 returns so far this year, according to analysts at Barclays.
Zooming out further, if bitcoin is the dollar hedge that its enthusiasts claim it to be, then it faces stiff headwinds from a "higher for longer" Fed and rising U.S. yields that are pushing the dollar higher again.
MARGINAL DEMAND
Analysts at retail trading research firm Vanda Research point out that while retail investors have only been "marginal" participants in the recent AI and tech boom, they have turned even cooler on crypto assets.
Their flows data show that rotation out of crypto stocks into AI names has pushed crypto inflows to the post-pandemic lows, down to $3.6 million a day from comfortably over $10 million a day a few weeks earlier.
"Should AI stocks' outperformance extend further, we anticipate retail traders will start chasing other names more aggressively ... further reducing the demand for crypto names," Vanda analysts wrote last week.
Vanda's Marco Iachini said he is surprised cryptocurrencies have not followed tech higher. They will catch up at some point, but not before the AI rally broadens out to smaller cap tech and growth stocks first.
How much can bitcoin rally? Standard Chartered analysts reckon it could reach $100,000 by the end of 2024. The so-called "crypto winter" may have passed, but it would require a dramatic turnaround in investor sentiment and crypto usage for that to become reality.
Mega Tech and the S&P 500 https://tmsnrt.rs/43iGmE2
Bitcoin v Mega Tech correlation most negative since August 2019 https://tmsnrt.rs/3oGqwUy
Retail investors' crypto demand slumps - Vanda Research https://tmsnrt.rs/3C5KlYE
Bitcoin, 'Mega Tech', Nasdaq since April 25 https://tmsnrt.rs/43kNKi3
(By Jamie McGeever; Editing by Sam Holmes)
((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Jamie McGeever ORLANDO, Florida, May 31 (Reuters) - Bitcoin is undeniably having a great year, but is losing momentum just when it might have been expected to go up a gear. The recent burst of investor optimism that the boom in artificial intelligence (AI), ChatGPT software and advanced microchip technology will be transformational for economies is driving the surge in Big Tech. Bitcoin, crypto assets more broadly and technology stocks have traditionally moved in tandem on the assumption that they will all be fundamental parts of the disruptive, growth-generating and efficient economies of the future.
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Its traditionally strong and positive correlation with technology stocks, in particular the "mega tech" and growth stocks that have exploded higher in recent weeks, has completely broken down. Analysts at retail trading research firm Vanda Research point out that while retail investors have only been "marginal" participants in the recent AI and tech boom, they have turned even cooler on crypto assets. Mega Tech and the S&P 500 https://tmsnrt.rs/43iGmE2 Bitcoin v Mega Tech correlation most negative since August 2019 https://tmsnrt.rs/3oGqwUy Retail investors' crypto demand slumps - Vanda Research https://tmsnrt.rs/3C5KlYE Bitcoin, 'Mega Tech', Nasdaq since April 25 https://tmsnrt.rs/43kNKi3 (By Jamie McGeever; Editing by Sam Holmes) ((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bitcoin's BTC=BTSP rolling 30-day correlation with the Nasdaq .IXIC last week flipped to its most negative in six months, and its correlation with the NYSE FANG+TM index of mega tech and growth equity .NYFANG plunged to its most negative in nearly four years. Analysts at retail trading research firm Vanda Research point out that while retail investors have only been "marginal" participants in the recent AI and tech boom, they have turned even cooler on crypto assets. Mega Tech and the S&P 500 https://tmsnrt.rs/43iGmE2 Bitcoin v Mega Tech correlation most negative since August 2019 https://tmsnrt.rs/3oGqwUy Retail investors' crypto demand slumps - Vanda Research https://tmsnrt.rs/3C5KlYE Bitcoin, 'Mega Tech', Nasdaq since April 25 https://tmsnrt.rs/43kNKi3 (By Jamie McGeever; Editing by Sam Holmes) ((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its traditionally strong and positive correlation with technology stocks, in particular the "mega tech" and growth stocks that have exploded higher in recent weeks, has completely broken down. Since April 25, the NYSE FANG+TM index of big tech and growth stocks has surged 24%, nearly three times the broader Nasdaq. Zooming out further, if bitcoin is the dollar hedge that its enthusiasts claim it to be, then it faces stiff headwinds from a "higher for longer" Fed and rising U.S. yields that are pushing the dollar higher again.
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15591.0
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2023-05-31 00:00:00 UTC
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After Hours Most Active for May 31, 2023 : GRAB, CSCO, KO, MPW, ELAN, T, NWL, AAPL, CMCSA, INTC, VZ, NIO
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-may-31-2023-%3A-grab-csco-ko-mpw-elan-t-nwl-aapl-cmcsa-intc-vz
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -8.32 to 14,245.77. The total After hours volume is currently 447,642,808 shares traded.
The following are the most active stocks for the after hours session:
Grab Holdings Limited (GRAB) is unchanged at $2.98, with 17,899,451 shares traded. As reported in the last short interest update the days to cover for GRAB is 7.466597; this calculation is based on the average trading volume of the stock.
Cisco Systems, Inc. (CSCO) is unchanged at $49.67, with 17,035,051 shares traded. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $0.95. CSCO's current last sale is 91.14% of the target price of $54.5.
Coca-Cola Company (The) (KO) is +0.06 at $59.72, with 16,500,273 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Medical Properties Trust, Inc. (MPW) is -0.02 at $8.23, with 14,612,015 shares traded. MPW's current last sale is 68.58% of the target price of $12.
Elanco Animal Health Incorporated (ELAN) is +0.01 at $8.16, with 13,801,006 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $0.31. ELAN's current last sale is 62.77% of the target price of $13.
AT&T Inc. (T) is unchanged at $15.73, with 12,536,635 shares traded. T's current last sale is 71.5% of the target price of $22.
Newell Brands Inc. (NWL) is unchanged at $8.31, with 12,115,526 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.47. , following a 52-week high recorded in today's regular session.
Apple Inc. (AAPL) is +0.15 at $177.40, with 11,306,587 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.18. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Comcast Corporation (CMCSA) is +0.09 at $39.44, with 10,973,652 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Intel Corporation (INTC) is -0.0097 at $31.43, with 10,115,661 shares traded. INTC's current last sale is 103.05% of the target price of $30.5.
Verizon Communications Inc. (VZ) is +0.01 at $35.64, with 9,922,406 shares traded. VZ's current last sale is 83.86% of the target price of $42.5.
NIO Inc. (NIO) is unchanged at $7.53, with 9,714,127 shares traded. NIO's current last sale is 57.92% of the target price of $13.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.15 at $177.40, with 11,306,587 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for GRAB is 7.466597; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is +0.15 at $177.40, with 11,306,587 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 447,642,808 shares traded.
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Apple Inc. (AAPL) is +0.15 at $177.40, with 11,306,587 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 447,642,808 shares traded.
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Apple Inc. (AAPL) is +0.15 at $177.40, with 11,306,587 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session:
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15592.0
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2023-05-31 00:00:00 UTC
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Avoiding Speculation Doesn’t Make You a Bear
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AAPL
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https://www.nasdaq.com/articles/avoiding-speculation-doesnt-make-you-a-bear
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nan
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nan
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Strange market right now, huh? All year long, media, asset managers, and banks have touted the risk of a recession and the challenge of rising rates. That hasn’t stopped investors from helping megacap tech names to lift the S&P 500 overall. So what’s the real story? Speculation is driving ongoing interest in crypto, fringy tech, and other areas without real productive assets. That doesn’t mean there aren’t opportunities elsewhere, though, according to Richard Bernstein Advisors (RBA).
Investors and market watchers understand this somewhat and that’s helped incite this “see-sawing” between big investing themes this year. Some weeks, it’s all about investing abroad in markets where central banks already went completed much of their rate hike plans. In other weeks, the sun comes out and tech investing takes the lead. That can leave investors looking for a real idea about where to go.
According to RBA, that speculation also includes a “narrow leadership” in the market, with the survival of the fittest taking the lead. In this case, that means the megacap techs. So what gives? RBA draws a comparison to 1978 in its recent research, when investors also thought there were only two growth opportunities. By comparison, Microsoft (MSFT) and Apple (AAPL) now make up almost 15% of the S&P 500.
1978’s comparable firms, IBM (IBM) and AT&T (T), struggled for the next decade and a half after that year, per RBA. So where to go right now?
RBA’s research points away from a scenario in which the global economy is so difficult that just two firms can rule. Instead, it uses fundamentals-driven, top-down macro investing to assess where profits are accelerating or decelerating. By using indicators and in-house analysis, the shop looks across asset classes for the opportunities appropriate for the profit cycle.
See more: Q&A With RBA’s Director of Research, Lisa Kirschner
Investors interested in the firm’s strategy can find it in their own in-house SMAs as well as in an ETF. The iMGP RBA Responsible Global Allocation ETF (IRBA) charges 69 basis points to actively employ that strategy.
For more news, information, and analysis, visit the Richard Bernstein Advisors Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By comparison, Microsoft (MSFT) and Apple (AAPL) now make up almost 15% of the S&P 500. All year long, media, asset managers, and banks have touted the risk of a recession and the challenge of rising rates. See more: Q&A With RBA’s Director of Research, Lisa Kirschner Investors interested in the firm’s strategy can find it in their own in-house SMAs as well as in an ETF.
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By comparison, Microsoft (MSFT) and Apple (AAPL) now make up almost 15% of the S&P 500. That hasn’t stopped investors from helping megacap tech names to lift the S&P 500 overall. That doesn’t mean there aren’t opportunities elsewhere, though, according to Richard Bernstein Advisors (RBA).
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By comparison, Microsoft (MSFT) and Apple (AAPL) now make up almost 15% of the S&P 500. Investors and market watchers understand this somewhat and that’s helped incite this “see-sawing” between big investing themes this year. RBA draws a comparison to 1978 in its recent research, when investors also thought there were only two growth opportunities.
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By comparison, Microsoft (MSFT) and Apple (AAPL) now make up almost 15% of the S&P 500. That hasn’t stopped investors from helping megacap tech names to lift the S&P 500 overall. In other weeks, the sun comes out and tech investing takes the lead.
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15593.0
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2023-05-31 00:00:00 UTC
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Wedbush Reiterates Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/wedbush-reiterates-apple-aapl-outperform-recommendation-0
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nan
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nan
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Fintel reports that on May 31, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 2.67% Upside
As of May 11, 2023, the average one-year price target for Apple is 182.03. The forecasts range from a low of 119.18 to a high of $219.45. The average price target represents an increase of 2.67% from its latest reported closing price of 177.30.
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 6375 funds or institutions reporting positions in Apple. This is a decrease of 13 owner(s) or 0.20% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.78%, an increase of 19.44%. Total shares owned by institutions decreased in the last three months by 2.50% to 9,910,357K shares.
The put/call ratio of AAPL is 0.90, 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 May 31, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.78%, an increase of 19.44%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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Fintel reports that on May 31, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.78%, an increase of 19.44%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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Fintel reports that on May 31, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.78%, an increase of 19.44%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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Fintel reports that on May 31, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.78%, an increase of 19.44%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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15594.0
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2023-05-31 00:00:00 UTC
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Chase Coleman Let the Tiger Out of the Cage in Q1 With Hot Returns
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AAPL
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https://www.nasdaq.com/articles/chase-coleman-let-the-tiger-out-of-the-cage-in-q1-with-hot-returns
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nan
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nan
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Investors are carefully divining the latest SEC 13F filing from Chase Coleman’s Tiger Global Hedge Fund reporting its latest trades and movements for the March quarter.
Born from the ashes of the dot-com bubble, Tiger Global rose to prominence in the early 2000s under Coleman's unwavering leadership. Armed with an uncanny ability to spot tech disruptors before they hit the mainstream, the hedge fund amassed a breathtaking track record of success.
From Facebook, now Meta Platforms (US:META), to LinkedIn, Spotify (US:SPOT) to JD.com (US:JD), Tiger Global's investments read like a who's who of the digital revolution. Coleman's reputation as a kingmaker was sealed.
Yet, as with any tale of extraordinary success, the shadows of skepticism began to loom. Critics questioned the sustainability of Tiger Global's meteoric rise. Was it a product of sheer brilliance, or were Coleman's tactics a house of cards ready to crumble?
Brushing Off Naysayers
Detractors point to the fund's concentrated holdings and risk-heavy bets, warning of an impending reckoning. But Coleman brushed off the naysayers, his steely resolve unyielding in the face of doubt.
And then, the storm arrived. In the spring of 2020, as the world reeled from the impact of the COVID-19 pandemic, financial markets were plunged into unprecedented turmoil. Panic gripped investors, and even the most seasoned veterans were left floundering in the tempest.
In late 2022 when the U.S. Federal Reserve began hiking interest rates, the core investment thesis and construct of holdings imploded as high valuation growth stocks came re-rating back to reality.
The reported fund value sank from a peak of $53.76 billion in mid-2021 to a low point of $8.16 billion at the end of 2022.
During 2023, tech came back in favor as shown by the 35% growth in portfolio value to $10.99 billion at the end of Q1. The chart below shows the rise and fall of the fund over the last 10 years.
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Born from the ashes of the dot-com bubble, Tiger Global rose to prominence in the early 2000s under Coleman's unwavering leadership. Armed with an uncanny ability to spot tech disruptors before they hit the mainstream, the hedge fund amassed a breathtaking track record of success. In late 2022 when the U.S. Federal Reserve began hiking interest rates, the core investment thesis and construct of holdings imploded as high valuation growth stocks came re-rating back to reality.
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Investors are carefully divining the latest SEC 13F filing from Chase Coleman’s Tiger Global Hedge Fund reporting its latest trades and movements for the March quarter. From Facebook, now Meta Platforms (US:META), to LinkedIn, Spotify (US:SPOT) to JD.com (US:JD), Tiger Global's investments read like a who's who of the digital revolution. Brushing Off Naysayers Detractors point to the fund's concentrated holdings and risk-heavy bets, warning of an impending reckoning.
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Investors are carefully divining the latest SEC 13F filing from Chase Coleman’s Tiger Global Hedge Fund reporting its latest trades and movements for the March quarter. Born from the ashes of the dot-com bubble, Tiger Global rose to prominence in the early 2000s under Coleman's unwavering leadership. The reported fund value sank from a peak of $53.76 billion in mid-2021 to a low point of $8.16 billion at the end of 2022.
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Investors are carefully divining the latest SEC 13F filing from Chase Coleman’s Tiger Global Hedge Fund reporting its latest trades and movements for the March quarter. Brushing Off Naysayers Detractors point to the fund's concentrated holdings and risk-heavy bets, warning of an impending reckoning. During 2023, tech came back in favor as shown by the 35% growth in portfolio value to $10.99 billion at the end of Q1.
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15595.0
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2023-05-31 00:00:00 UTC
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Can Earnings Narrow The Value Gap In Hewlett Packard?
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AAPL
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https://www.nasdaq.com/articles/can-earnings-narrow-the-value-gap-in-hewlett-packard
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nan
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nan
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As the chip and semiconductor industry seems to have found new grounds for revolution, as seen in NVIDIA (NASDAQ: NVDA) sporting its new record one trillion-dollar market cap, other names in the space are looking to ride on this renewed sentiment toward the next frontier in technological advancements. Companies like Taiwan Semiconductor Manufacturing (NYSE: TSM) have rallied by as much as 26% during the past quarter as it stands to be the backbone of the new chip revolution operating in the artificial intelligence space. In the after-market hours of Tuesday evening, a low-flying name in the sector reported its second-quarter 2023 earnings.
Hewlett Packard Enterprise (NYSE: HPE) shares are trading lower by 6.6% as some investors digest the final results in the company's press release. The company reports near-record results as far as revenue goes. However, it is still experiencing some of the setbacks that other operators in the value chain are suffering from. For example, Apple (NASDAQ: AAPL) reported that its computer shipments declined by 40%, as noted within its Mac shipments. However, Hewlett Packard's portfolio has offset these headwinds by posting high double-digit advances in the new opportunities that generative artificial intelligence poses for the business.
Shifting Winds
Despite its largest segment, compute, Hewlett Packard reported 9% revenue growth posing a 3% decline in the twelve months covered. The second-largest segment, Intelligent Edge, posted a 56% advance in total sales to finish the quarter at $1.3 billion. These two segments, and their underlying relationships, can give investors a more straightforward path into what management is keeping in store for the future of the business. Intelligent Edge, essentially the computing power side of things allowing for generative A.I. projects to come alive, has been quietly advancing in total revenue share and keeping a more attractive operating margin. Hewlett Packard's Compute segment carries a 15.2% operating margin, while Intelligent Edge accrues a 26.9% operating margin to its share of profits.
What is more important for investors is the underlying pivots and advances within the two businesses. As Compute's operating margins only increased by 1.1% coupled with a 3% revenue decline, Intelligent Edge posted a 14.3% operating margin expansion over the twelve months, alongside its 56% revenue increase. The marketplace has voted on what the next wave of demand will be made of by assigning companies like NVIDIA a 203.3x price-to-earnings ratio, while Hewlett-Packard carries only a 23.7x multiple. It would be airy to believe that HPE will command a significantly higher multiple to match that of NVIDIA; however, considering that the company has shown its intentions to move into the field and taking the proper steps at that, investors could soon wake up to the realization that the stock is severely underrated.
Setting Expectations
The results seen in the new product mix enabled the company to finish the quarter with a favorable free cash flow position, which management rightly allocated to reward investors. Those who stuck by the company's challenging times to transform, and take on the new phase of its Intelligent Edge business, received the pleasant news of a $261 million capital return via dividends and buybacks during the second quarter of 2023. By shifting to higher-growth products with improved performance, the business has achieved a record gross margin of 36%, which is also expected to continue. Now that the company is presenting nothing but improvements and growth, why would the stock sell off the way it did after the announcement? Management's guidance for the year may hold the answer.
Executives point to a relatively conservative revenue growth rate of 4-6% for the remainder of the 2023 fiscal year, with a significant discrepancy between GAAP and non-GAAP operating profit expectations. Hewlett Packard's financials will show that the income statement contains some rare items, which may drive the confusion expressed by the stock price's swing. "Transformation costs" and "Disaster charges" added to $63 million in the second quarter of 2023 and are driving an even larger wedge in the end-of-year outlooks. Management expects GAAP operating profit growth to be 180-184%, while GAAP operating profit growth is only 6-7%, driven by these non-operating charges. Following the more natural state of earnings, investors could expect to see earnings per share within the $2.06 and $2.14 range.
Hewlett Packard analyst ratings suggest that the stock only has an 8.5% upside potential, excluding the effects of the after-market sell-off. However, these ratings may only reflect the previous quarter's Intelligent Edge results, where the segment only represented 14% of total revenue compared to today's 18%. Considering this growth, coupled with the fast advancement of its operating margins, analysts may soon have to push the top-side price target of $20 as a median consensus.
The views and 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) reported that its computer shipments declined by 40%, as noted within its Mac shipments. As the chip and semiconductor industry seems to have found new grounds for revolution, as seen in NVIDIA (NASDAQ: NVDA) sporting its new record one trillion-dollar market cap, other names in the space are looking to ride on this renewed sentiment toward the next frontier in technological advancements. It would be airy to believe that HPE will command a significantly higher multiple to match that of NVIDIA; however, considering that the company has shown its intentions to move into the field and taking the proper steps at that, investors could soon wake up to the realization that the stock is severely underrated.
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For example, Apple (NASDAQ: AAPL) reported that its computer shipments declined by 40%, as noted within its Mac shipments. Shifting Winds Despite its largest segment, compute, Hewlett Packard reported 9% revenue growth posing a 3% decline in the twelve months covered. Hewlett Packard's Compute segment carries a 15.2% operating margin, while Intelligent Edge accrues a 26.9% operating margin to its share of profits.
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For example, Apple (NASDAQ: AAPL) reported that its computer shipments declined by 40%, as noted within its Mac shipments. Hewlett Packard's Compute segment carries a 15.2% operating margin, while Intelligent Edge accrues a 26.9% operating margin to its share of profits. As Compute's operating margins only increased by 1.1% coupled with a 3% revenue decline, Intelligent Edge posted a 14.3% operating margin expansion over the twelve months, alongside its 56% revenue increase.
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For example, Apple (NASDAQ: AAPL) reported that its computer shipments declined by 40%, as noted within its Mac shipments. The company reports near-record results as far as revenue goes. The second-largest segment, Intelligent Edge, posted a 56% advance in total sales to finish the quarter at $1.3 billion.
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15596.0
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2023-05-31 00:00:00 UTC
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Warren Buffett Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-detailed-fundamental-analysis-aapl
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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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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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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15597.0
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2023-05-31 00:00:00 UTC
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India launches electronics repair pilot project to lure manufacturers
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AAPL
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https://www.nasdaq.com/articles/india-launches-electronics-repair-pilot-project-to-lure-manufacturers
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nan
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nan
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Adds details from release and background throughout
BENGALURU, May 31 (Reuters) - India has launched a pilot project to establish itself as an electronics repair hub with certain favourable policy changes, which has already attracted companies like Lenovo and Flex, the country's IT ministry said on Wednesday.
The ministry did not elaborate on the policy changes, but Reuters has reported that India plans to relax some of its cumbersome import-export rules and environmental laws to help foreign manufacturers to set up repair hubs in the country.
The three-month-long Electronics Repair Services Outsourcing (ERSO) program is India's first formal attempt to capitalise on a $100 billion global industry and follows a push by MAIT, an industry group for IT and electronics manufacturers.
Besides, China's Lenovo 0092.HK and Singapore-based Flex FLEX.O, electronic manufacturers like CTDI, R-Logic, and Aforeserve have volunteered for the program, the ministry said in a statement.
While India is seeing increased interest in electronics manufacturing, with companies such as Apple AAPL.O pivoting from production in China, its repair outsourcing industry has been beleaguered by certain import-export rules.
The Indian government will test changes to lower the time required for necessary approvals for imports and exports to a day from as much as 10 days, Reuters has reported.
Bottlenecks in India also include an e-waste mandate that bans companies from disposing of non-repairable products locally - adding to their logistics costs as they have to be sent back.
The government will now allow recycling of 5% of imported goods domestically on a trial basis, Reuters reported.
In the pilot phase India will also permit re-export of the imported electronics goods to countries different from the original one - currently it is banned under foreign trade rules.
(Reporting by Varun Vyas in Bengaluru and Munsif Vengattil in New Delhi; Editing by Savio D'Souza)
((varunvyas.hebbalalu@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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While India is seeing increased interest in electronics manufacturing, with companies such as Apple AAPL.O pivoting from production in China, its repair outsourcing industry has been beleaguered by certain import-export rules. Adds details from release and background throughout BENGALURU, May 31 (Reuters) - India has launched a pilot project to establish itself as an electronics repair hub with certain favourable policy changes, which has already attracted companies like Lenovo and Flex, the country's IT ministry said on Wednesday. The ministry did not elaborate on the policy changes, but Reuters has reported that India plans to relax some of its cumbersome import-export rules and environmental laws to help foreign manufacturers to set up repair hubs in the country.
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While India is seeing increased interest in electronics manufacturing, with companies such as Apple AAPL.O pivoting from production in China, its repair outsourcing industry has been beleaguered by certain import-export rules. Besides, China's Lenovo 0092.HK and Singapore-based Flex FLEX.O, electronic manufacturers like CTDI, R-Logic, and Aforeserve have volunteered for the program, the ministry said in a statement. In the pilot phase India will also permit re-export of the imported electronics goods to countries different from the original one - currently it is banned under foreign trade rules.
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While India is seeing increased interest in electronics manufacturing, with companies such as Apple AAPL.O pivoting from production in China, its repair outsourcing industry has been beleaguered by certain import-export rules. Adds details from release and background throughout BENGALURU, May 31 (Reuters) - India has launched a pilot project to establish itself as an electronics repair hub with certain favourable policy changes, which has already attracted companies like Lenovo and Flex, the country's IT ministry said on Wednesday. The ministry did not elaborate on the policy changes, but Reuters has reported that India plans to relax some of its cumbersome import-export rules and environmental laws to help foreign manufacturers to set up repair hubs in the country.
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While India is seeing increased interest in electronics manufacturing, with companies such as Apple AAPL.O pivoting from production in China, its repair outsourcing industry has been beleaguered by certain import-export rules. Adds details from release and background throughout BENGALURU, May 31 (Reuters) - India has launched a pilot project to establish itself as an electronics repair hub with certain favourable policy changes, which has already attracted companies like Lenovo and Flex, the country's IT ministry said on Wednesday. The ministry did not elaborate on the policy changes, but Reuters has reported that India plans to relax some of its cumbersome import-export rules and environmental laws to help foreign manufacturers to set up repair hubs in the country.
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15598.0
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2023-05-31 00:00:00 UTC
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Should Vanguard Mega Cap ETF (MGC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-etf-mgc-be-on-your-investing-radar-8
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Mega Cap ETF (MGC), a passively managed exchange traded fund launched on 12/17/2007.
The fund is sponsored by Vanguard. It has amassed assets over $3.94 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.48%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 30.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.93% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 29.82% of total assets under management.
Performance and Risk
MGC seeks to match the performance of the CRSP US Mega Cap Index before fees and expenses. The CRSP U.S. Mega Cap Index includes the largest U.S. companies, with a target of including the top 70% of investable market capitalization. The index includes securities traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF return is roughly 12.66% so far this year and was up about 4.43% in the last one year (as of 05/31/2023). In the past 52-week period, it has traded between $124.31 and $150.20.
The ETF has a beta of 1 and standard deviation of 18.99% for the trailing three-year period, making it a medium risk choice in the space. With about 232 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MGC 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 $312.40 billion in assets, SPDR S&P 500 ETF has $391.24 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Vanguard Mega Cap ETF (MGC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.93% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): 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 $3.94 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.93% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Mega Cap ETF (MGC), a passively managed exchange traded fund launched on 12/17/2007.
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Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.93% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.93% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Mega Cap ETF (MGC), a passively managed exchange traded fund launched on 12/17/2007.
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15599.0
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2023-05-31 00:00:00 UTC
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Is WisdomTree U.S. Total Dividend ETF (DTD) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-total-dividend-etf-dtd-a-strong-etf-right-now-7
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nan
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nan
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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. Total Dividend ETF (DTD) is a smart beta exchange traded fund launched on 06/16/2006.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $1.05 billion, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. DTD is managed by Wisdomtree. DTD, before fees and expenses, seeks to match the performance of the WisdomTree U.S. Dividend Index.
The WisdomTree U.S. Dividend Index is a fundamentally-weighted index that defines the dividend-paying portion of the U.S. equity market.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.28%.
It's 12-month trailing dividend yield comes in at 2.79%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 16.70% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 22.62% of total assets under management.
Performance and Risk
The ETF has lost about -1.51% and is down about -4.19% so far this year and in the past one year (as of 05/31/2023), respectively. DTD has traded between $54.26 and $63.60 during this last 52-week period.
The ETF has a beta of 0.91 and standard deviation of 15.95% for the trailing three-year period, making it a medium risk choice in the space. With about 823 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Total Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $48.49 billion in assets, Vanguard Value ETF has $98.55 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. Total Dividend ETF (DTD) is a smart beta exchange traded fund launched on 06/16/2006.
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Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. Total Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market.
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Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. Total Dividend ETF (DTD) is a smart beta exchange traded fund launched on 06/16/2006.
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